U.S. Group's Trip To Burma Gas Proj

[moe@xxxxxxxxxxxxx]

Subject: U.S. Group's Trip To Burma Gas Project Backed By   Unocal Cash

U.S. Group's Trip To Burma Gas Project Backed By
                                       Unocal Cash

                                       AP-Dow Jones News Service

                                       WASHINGTON (AP)--A tax-exempt group
that pays for congressional trips to Asia
                                       is underwritten by U.S. companies
with high-stakes interests in the region, according
                                       to interviews and documents.

                                       In its most recent trip, the Asia
Pacific Exchange Foundation sent four House
                                       Republicans to Burma in December as
guests of the country's military rulers. On the
                                       agenda: a tour of the remote
mountains where U.S. oil company Unocal Corp. and its
                                       French partner Total SA are building
a $1.2 billion natural gas pipeline.

                                       The project, Burma's largest foreign
investment deal, could be in jeopardy because of
                                       possible U.S. sanctions against the
southeast Asian country. Rep. Dennis Hastert,
                                       who went with an aide to visit the
site, said it was helpful to see it firsthand.

                                       The delegation, which made other
stops in Hong Kong, China and Singapore, also
                                       included House Majority Whip Tom
DeLay of Texas, New York Rep. Bill Paxon and
                                       Ohio Rep. Deborah Pryce.

                                       The president of the tax-exempt
foundation, Richard G. Quick, declines to say where
                                       its money comes from. But Unocal
acknowledged it is among the foundation's
                                       sponsors.

                                       By donating to Quick's foundation,
Unocal could claim a tax deduction for
                                       underwriting a congressional
fact-finding trip to its pipeline, in effect using a
                                       taxpayer subsidy to lobby against
U.S. government policy.

                                       Congressional aides who went on other
trips the foundation sponsored last year said
                                       they included meetings with Chinese
automakers and a tour of an aircraft plant that is
                                       a joint venture between China and
Boeing. Ford Motor Co. and Boeing both are
                                       sponsors of the foundation.

                                       In an interview, Quick denied that
his group, which has the tax status of a charity, is
                                       a lobbying arm for its corporate donors.

                                       Itineraries for trips are set to meet
the interests of the lawmakers and their aides, he
                                       said. 'If that coincides with the
interests of one of the contributors, so be it,' he said.

                                       Frances Hill, a University of Miami
law professor who specializes in tax-exempt
                                       groups, said it appeared that the
foundation was used to 'put some distance' between
                                       lawmakers and the corporate sponsors
of a lobbying trip.

                                       'What this reveals is that there are
a lot of ways to lobby,' she said.

                                       The Clinton administration is
considering whether to cut off investments in Burma,
                                       where generals canceled the
democratically elected government in 1990 and put its
                                       leader, Nobel Peace Prize winner Aung
San Suu Kyi, under house arrest. A law that
                                       Congress passed last year allows
sanctions if repression worsens.

                                       Unocal spokesman Barry Lane declined
to say how much the company has paid to
                                       Quick's foundation. The donations
make business sense because 'part of their charter
                                       is to improve relations, and we're
very heavily involved in Asia,' Lane said.

                                       Unocal has put much of its energy
into expanding business ties in Burma, and would
                                       be the most affected by any ban on
U.S. investment. The pipeline would move
                                       natural gas from offshore wells
across a mountain range to Thailand.

                                       In addition, the company announced
three weeks ago it had signed a deal with
                                       Burma's rulers to greatly expand its
offshore gas development, paying them several
                                       million dollars as a signing bonus.

                                       The Burma trip was front-page news in
the state-controlled newspaper. A photo
                                       showed the delegation meeting with
top generals.

                                       The State Department was given no
advance notice of the trip, which came at a
                                       tense time of student unrest. The
department had issued a travel warning on Dec. 9
                                       because of the potential for street
violence.

                                       The group made no effort to meet with
opposition leaders, Quick said, because the
                                       lawmakers expressed no interest.
Another lawmaker, Rep. John Porter, was denied a
                                       visa when he sought a visit at about
the same time to explore human rights issues.

                                       Once there, the group did invite a
U.S. Embassy official to go along on its pipeline
                                       and drug interdiction forays, Quick said.