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TOTAL/PetroFina "Big Move" (r)



Neil,
with all due respect, I think you contradict your own argument.      Your
second paragraph says:
"there will always be a few rogue companies who will do business in an
unethical way and be tempted to sacrifice principle and take higher risks by
the promise of an exceptionally high return."   You are saying that
companies which do business with dictatorships do so because of the "promise
of an exceptionally high return."   But your first paragraph argues that
companies will make more profit with democratic governments.

While stablity is useful for companies, dictatorships are often quite stable
environments for companies to invest in.    And they don't have to bother
with messy things like environmental laws, labor laws, high taxes and
organized labor pools to deal with.      Take the history of Latin America
(as well as other areas of the world) where the CIA and the US military,
often at the urging of US corporations, repeatedly overthrew democratic
governments and installed dictatorships.    If dictatorships are such
unpleasant environments for companies to do business in, then why would the
United Fruit Company and other corporations push to overthrow democracies.

Similarly, with Total and UNOCAL, having a dictatorship in Burma is very
convenient.    How else would they get such a ready supply of forced labor,
have villages relocated on demand for their pipeline, have virutally no
environmental laws and have such a high rate of profit?
Kevin Rudiger


To: dawn star <dawnstar@xxxxxxxxxxxxx>
Cc: burmanet-l@xxxxxxxxxxx <burmanet-l@xxxxxxxxxxx>
Date: Wednesday, December 02, 1998 8:26 PM
Subject: Re: TOTAL/PetroFina "Big Move"


>How about trying dialogue with the company instead of just insulting it
>from the sidelines? Also try not repeatedly to write stupid statements
>such as 'companies would much rather do business with dictators than with
>democratic governments'. Companies want do do long-term planning since
>the return on capital investment is calculated over many years.
>Dictatorships are inherently unstable and volatile and power can shift to
>different hands by a simple military coup with other officers gaining the
>upper hand. Well-established democracies are clearly more stable. Also
>companies wish to operate within an established legal framework so that
>their investments cannot just be appropriated i.e. they wish those in
>power to be subject to the law and not just able to make it up as they go
>along. Companies desire an independent judicial framework. Dictatorships
>clearly see themselves as above the law. For these reasons, responsible
>companies would much rather do business in countries with established
>democratic governments than with dictatorships.
>
>Of course, there will always be a few rogue companies who will do
>business in an unethical way and be tempted to sacrifice principle
>and take higher risks by the promise of an exceptionally high return.
>
>If you, dawn star, are prejudiced against all companies and the
>capitalist system in general for some political reason, you should say
>so. If you are not, I suggest you stop making irresponsible accusations
>about all companies (in previous postings) and stick to verifiable facts.
>How can anyone trust the facts about Total you claim to be accurate when
>at the same time you unjustifiably insult all companies?
>
>I don't know your political motivations, but I at least respect the fact
>that you criticised trade with the Cuban dictatorship just as much as you
>criticise trade with the Burmese regime. I may not share your views but
>in this respect you are even-handed.
>
>
>dawn star wrote:
>>
>> so where do we go from here as Total expands through Belgium industrial
>> territory to become even a bigger world energy giant? any comments?
>>
>> TOTAL MAKES BIG MOVE
>>
>> The London-based Financial Times business daily newspaper
>> leads its December 1 front page with a top story in headlines
>> "Total set for PetroFina takeover/ French oil group likely to announce
>> move for Belgium rival" :
>>
>> "Total, France's second-biggest oil group,
>> is expected to announce this morning the takeover of PetroFina, the
>> Belgian oil group, as the wave of mergers sweeping through
>> the oil sector set to continue...The emergence of Total as bidder for
>> PetroFina (sic), one of Belgium's biggest industrial companies, came as
>> a surprise
>> after recent speculation on Elf Aquitaine, the other big French oil
>> company.In the past, Thierry Desmarest, Total's chairman,
>> has been lukewarm towards takeovers and mergers, noting
>> that Total has one of the fastest-growing production
>> profiles in the industry. But analysts said a tie-up with
>> PetroFina would strengthen its European downstream presence,
>> as well as enhance its overall international exploration
>> effort, especially in the North Sea...."
>>
>> "Total is expected to announce a share-swap deal for PetroFina
>> stakes held by Baron Albert Frere -- the secretive Belgian financier
>> who controls 30 percent of PetroFina -- and by Belgian energy
>> group Tractebel...It is also likely to leave Mr. Frere as one of the
>> largest
>> single shareholders of Total, a position he already holds in another
>> French company, multi-utility group Suez Lyonnaise des Eaux."
>>
>> extracts reprinted from FT by dawn star
>> EuroBurmaNet
>> Worldwide Total Boycott
>> euroburma.com
>
>
>