Unocal strikes deal with Myanmar villagers over alleged use of slave labor

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http://story.news.yahoo.com/news?tmpl=story&ncid=1504&e=6&u=/afp/20041213/bs_afp/usmyanmarunocal_041213084424

LOS ANGELES (AFP) - US oil giant Unocal Corp. has agreed in principle to settle a lawsuit brought by Myanmar villagers who claim it condoned the use of slave labour during the building of a gas pipeline, Unocal said.


The group accused the California-based company of turning a blind eye to human rights abuses, including murder, rape and forced labour, during the building of the Yadana natural gas pipeline in the 1990s.


"We have reached a settlement in principle to settle the federal lawsuit," Unocal spokesman Barry Lane told AFP. "At the moment, negotiations are ongoing and we have no more specific information."


It was unknown how much the out-of-court settlement would cost the energy giant, which earlier became the first US company to stand trial in the United States for alleged rights abuses over the pipeline.

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1. In principle? A question for a lawyer

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>But Los Angeles Superior Court Judge Victoria Chaney ruled that the firm could not be held responsible for the conduct of its wholly-owned subsidiaries, which were directly involved in the Yadana project.

She said Unocal followed proper corporate governance in setting up its units involved in the pipeline, but stressed the narrow scope of her decision, saying she was unwilling to force major changes in corporate law.<