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### Viewing cable 07BRASILIA1774, SOUTH AMERICA ESTH NEWS, NUMBER 99

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BRASILIA1774 | 2007-09-17 19:20 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO9682
    RR RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
    DE RUEHBR #1774/01 2601920
    ZNR UUUUU ZZH
    R 171920Z SEP 07
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 9973
    INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
    RUEHDS/AMEMBASSY ADDIS ABABA 0133
    RUEHAM/AMEMBASSY AMMAN 0136
    RUEHBK/AMEMBASSY BANGKOK 0297
    RUEHUP/AMEMBASSY BUDAPEST 0123
    RUEHCP/AMEMBASSY COPENHAGEN 0157
    RUEHOR/AMEMBASSY GABORONE 0129
    RUEHKT/AMEMBASSY KATHMANDU 0133
    RUEHLC/AMEMBASSY LIBREVILLE 0135
    RUEHSJ/AMEMBASSY SAN JOSE 0643
    RUEHSV/AMEMBASSY SUVA 0115
    RUEHNE/AMEMBASSY NEW DELHI 0317
    RUEHBU/AMEMBASSY BUENOS AIRES 4998
    RUEHSG/AMEMBASSY SANTIAGO 6417
    RUEHLP/AMEMBASSY LA PAZ 5623
    RUEHPE/AMEMBASSY LIMA 3568
    RUEHQT/AMEMBASSY QUITO 2282
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    RUEHSO/AMCONSUL SAO PAULO 0799
    RUEHRI/AMCONSUL RIO DE JANEIRO 5105
    RUEATRS/DEPT OF TREASURY WASHDC
    RHEBAAA/DOE WASHDC
    RUEHC/DOI WASHDC
    RUEAWJA/DOJ WASHDC
    RUEAEPA/HQ EPA WASHDC
    RUEANAT/NASA HQ WASHDC
    RUCPDC/NOAA WASHDC
    RUMIAAA/USCINCSO MIAMI FL
    RUEHRC/USDA WASHDC
    RUCPDOC/USDOC WASHDC

` `

    UNCLAS SECTION 01 OF 12 BRASILIA 001774

    SIPDIS

    SIPDIS

    DEPT PASS USAID TO LAC/RSD, LAC/SAM, G/ENV, PPC/ENV
    TREASURY FOR USED IBRD AND IDB AND INTL/MDB
    USDA FOR FOREST SERVICE: LIZ MAHEW
    INTERIOR FOR DIR INT AFFAIRS: K WASHBURN
    INTERIOR FOR FWS: TOM RILEY
    INTERIOR FOR NPS: JONATHAN PUTNAM
    INTERIOR PASS USGS FOR INTERNATIONAL: J WEAVER
    JUSTICE FOR ENVIRONMENT AND NATURAL RESOURCES: JWEBB
    EPA FOR INTERNATIONAL: CAM HILL-MACON
    USDA FOR ARS/INTERNATIONAL RESEARCH: G FLANLEY
    NSF FOR INTERNATIONAL: HAROLD STOLBERG

    E.O. 12958: N/A
    TAGS: SENV EAGR EAID TBIO ECON SOCI XR BR
    SUBJECT: SOUTH AMERICA ESTH NEWS, NUMBER 99

    BRASILIA 00001774  001.2 OF 012

    ¶1.  The following is the ninety-nine in a series of newsletters,
    published by the Brasilia Regional Environmental Hub, covering
    environment, science and technology, and health news in South
    America.  The information below was gathered from news sources from
    across the region, and the views expressed do not necessarily
    reflect those of the Hub office or our constituent posts.
    Addressees who would like to receive a user-friendly email version
    of this newsletter should contact Larissa Stoner at
    stonerla@state.gov.  The e-mail version also contains a calendar of
    upcoming ESTH events in the region.  NOTE: THE NEWSLETTER IS NOW
    ALSO AVAILABLE ON THE BRASILIA INTRANET PAGE, BY CLICKING ON THE
    'HUB' LINK.

    ¶2. Table of Contents

    Agriculture
    --(3)Embrapa and BASF create first Brazilian genetically modified
    soybean variety
    --(4)Peru City Bans GM to Protect Native Potatoes

    Forests
    --(5)Brazil Launches Inquiry into Illegal Logging Claims
    --(6)Chile's: Senate Passes Native Forest Law
    --(7)Chile's Forestry Sector Set to Expand Internationally
    --(8)Peru-Brazil: Tribes Flee 'Red Gold' Rush
    --(9)Timber Stolen From Indigenous Land in Brazil Receives
    Certification from Smartwood-FSC Peru
    --(10)Brazil: Steel and Eucalyptus Heat Up Eastern Amazon

    Fishing & Marine Conservation
    --(11)Chile: Highly Contagious Fish Virus Detected In Chiloe

    Protected Areas
    --(12)In the Amazon: Conservation or Colonialism?

    Science & Technology
    --(13)Venezuela: Shell Allocates USD2.6 Million for Science

    Waste Management & Pollution
    --(14)Guyana: World Wildlife Fund Sounds Mercury Warning
    --(15)Chile's Conama Wants New Study on River Polluted By Celco
    --(16)Paraguay: Hospitals - Generating Health or Pollution?

    BRASILIA 00001774  002.2 OF 012

    Energy
    --(17)Brazil Works on Biofuel Environmental Certification
    --(18)Guyana Can Be Bio-Fuel Pioneer, says IDB President
    --(19)Ethanol Sugarcane Threatens Brazil's Wooded Savanna
    --(20)Brazilian Amazon Produces Sugar Cane For Ethanol

    General
    --(21)Guyana Signs Millennium Challenge Corporation Grant to Support
    Fiscal Reforms
    --(22)Peru: Extractive Industries Transparency Initiative Receives
    Donation from World Bank

    -----------
    Agriculture
    -----------

    ¶3. Embrapa and Basf Create First Brazilian Genetically Modified
    Soybean Variety

    AUG. 08, 2007 - The Brazilian federal agricultural research agency
    Embrapa and German multinational BASF announced the development of
    the first Brazilian genetically modified plant: a soybean variety
    resistant to herbicides.  Story says that the product is the result
    of ten years of research and that it will compete with a genetically
    modified variety produced by Monsanto.

    Source - Public Affairs US Embassy Brasilia based on report in O
    Estado de Sao Paulo

    ¶4. Peru City Bans GM to Protect Native Potatoes

    JULY 24, 2007 - The regional government of Cusco, Peru has banned
    genetically modified (GM) products in the region to protect the
    diversity of thousands of native potato varieties and other Andean
    food crops.  The order was announced July 20 at a press conference.
    It forbids GM research and the sale, cultivation, use and transport
    of GM products in the Cusco region.  Abel Caballero, head of the
    regional government's natural resources and environment department,
    said the government made the decision after considering the risk of
    genetic and environmental contamination from GM products, as well as
    the threat to people's health and their ancient culture.  The

    BRASILIA 00001774  003.2 OF 012

    government announced they will promote conservation programs for
    native biological crops and programs to recover ancient knowledge
    and practices related to biodiversity.  Developing and using
    genetically modified organisms is currently not allowed in Peru, as
    the country has not yet adopted laws governing their safe use.

    Source - SciDev

    -------
    Forests
    -------

    ¶5. Brazil Launches Inquiry into Illegal Logging Claims

    AUG. 23, 2007 - Brazil's government has launched an investigation
    following accusations that it was selling off large tracts of the
    Amazon under cover of sustainable development programs.  The
    allegations, first reported in The Independent this week, centered
    on a program to settle homeless people in the Amazon which has been
    hijacked by commercial logging interests.  Greenpeace, which led an
    eight-month investigation into the settlements, said the policy was
    leading to uncontrolled logging and deforestation.  Felipe Fritz
    Braga, the federal prosecutor in Santarem in the west of the state
    of Para, where the new settlements have been created, has begun
    civil proceedings demanding the closure of all 99 settlements
    created in the region between 2005 and 2007.  All were created
    without the environmental license required by law.  Greenpeace says
    that the new settlement program is opening the forest up to "gross
    exploitation". The Environment minister, Marina Silva, has said that
    the distribution of land to poor families is important, but that the
    claims will be investigated in full.

    Source - Independent

    ¶6. Chile's: Senate Passes Native Forest Law

    AUG. 19, 2007 - After more than 15 years of delay and revision, a
    law offering limited protection for Chile's native forests was
    finally approved by the Senate Aug. 14.  The vote was unanimous,
    35-0.  Most analysts attribute the 15-year delay to a strong lobby
    by Chile's politically powerful forestry company lobby, led by the
    Matte and Angelini business conglomerates.  Lack of serious

    BRASILIA 00001774  004.2 OF 012

    legislation protecting Chile's native hardwood forests has given
    them carte blanche to develop hundreds of thousands of pine and
    eucalyptus tree plantations, which oftentimes replaced native
    forests.  The new Forestry Law will now be debated in the House of
    Deputies, and is likely to pass with little modification by the end
    of the year.

    Source - WorldPress

    ¶7. Chile's Forestry Sector Set to Expand Internationally

    AUG. 22, 2007 - Chilean forestry companies COPEC, CMPC, and Masisa
    are focusing on international expansion projects after reporting
    remarkably high earnings for the first half of this year due to
    sharp price increases for their products.  But critics say the
    industry should pay greater attention to environmental problems at
    home before spending vast sums of money on international expansion.
    COPEC, of the Angelini group, is currently negotiating the
    acquisition of more forestry property and a saw mill in Brazil from
    Stora Enso, a global forest product company.  Meanwhile, the Matte
    group's CMPC cellulose production company recently completed its
    Santa Fe II plant and is now expanding internationally in Uruguay,
    Argentina, Peru, and Mexico.  Finally, the Masisa forestry company
    is exploring business opportunities in other South American
    countries after quadrupling its productivity and earning US$19.5
    million in the first half of this year.

    Source - Santiago Times (no link)

    ¶8. Peru-Brazil: Tribes Flee 'Red Gold' Rush

    AUG. 03, 2007 - A large group of uncontacted Indians has appeared in
    a remote village in the Amazon rainforest near the Peru-Brazil
    border, a Brazilian government official and expert on uncontacted
    tribes has reported.  The Indians are believed to have fled from
    Peru into Brazil because of illegal loggers sweeping through Peru's
    rainforests in search of rare mahogany, known as 'red gold.'  The
    loggers are destroying the Indians' territories, forcing them to
    seek refuge elsewhere and leading to dangerous contacts with
    outsiders.  'We are on the verge of disaster. Illegal logging in
    protected areas in Peru is pushing the uncontacted tribes into
    Brazil, which could cause conflicts and lead to their appearance in

    BRASILIA 00001774  005.2 OF 012

    places where they have never been seen before,' said Jos Carlos dos
    Reis Meirelles Junior, head of the Indian Protection post near the
    Peru border.  Peru has some of the world's last commercially-viable
    mahogany stands in the world, growing in areas inhabited by some of
    the world's last uncontacted tribes.  Stephen Corry, Survival's
    Director, said 'The Peruvian government must act now to stop the
    logging on the uncontacted tribes' land.  If it doesn't, they could
    be the first people to be made extinct in the 21st century.'

    Source - Scoop

    ¶9. Timber Stolen From Indigenous Land in Brazil Receives
    Certification from Smartwood-FSC Peru

    JULY 30, 2007 - The Ashaninka indigenous people in the Apiwtxa
    community in Acre have published a letter on the invasions along the
    Brazil-Peruvian border, in which they harshly criticize the
    Rainforest Alliance's SmartWood Program, which fails to consider the
    illegal actions of the Forestal Venao timber company over the last
    few years and, in April 2007, granted the company FSC certification
    in Peru.  According to the Ashaninka, before deciding to certify
    Forestal Venao, the SmartWood Program should have consulted the
    surrounding population, to understand what its true practices and
    environmental, social and cultural impacts have been, including in
    Brazil.  The Ashaninka claim that Forestal Venao is also supporting
    the establishment of new indigenous lands on the Peruvian side,
    bringing in families from other regions.  "The leaders of these
    communities have allied themselves to the company, interested in
    logging along the border between Brazil and Peru."

    Source - Amazonia

    ¶10. Brazil: Steel and Eucalyptus Heat Up Eastern Amazon

    JUL 02, 2007 - Brazil's Environment Ministry entered a minefield
    when it proposed a sustainable forest district to contain
    deforestation in the steel-making center of Carajas, one of the most
    devastated and violent areas in the Amazon.  With a resounding "'No'
    to projects that involve destruction and death," local social and
    environmental movements rejected the idea, which they see as a
    continuation of the deforestation process of the eastern Amazon,
    aggravated by promotion of eucalyptus monoculture to obtain charcoal

    BRASILIA 00001774  006.2 OF 012

    to fuel the steel factories.   Meanwhile, the industry executives
    want to change the legislation that requires preserving up to 80
    percent of the forests of existing properties within the boundaries
    of the "Legal Amazon", encompassing nine Brazilian states.  The
    local companies "will only sustain themselves if there is a
    50-percent reduction" in the forest coverage quota, because there
    are too many agricultural problems and previous deforestation, says
    Ricardo Nascimento, president of the Iron Industrial Syndicate, of
    the northeastern state of Maranhao.  But that move would trigger
    protests from a world increasingly mobilized against climate change,
    one of whose principal causes is precisely the deforestation of the
    vast Amazon region.

    Source - Tierramerica

    -----------------------------
    Fishing & Marine Conservation
    -----------------------------

    ¶11. Chile: Highly Contagious Fish Virus Detected In Chiloe

    AUG. 1, 2007 - Scientists in Chile and Canada have confirmed the
    presence in Chiloe (Region X) of Infectious Salmon Anemia (ISA), a
    highly contagious virus that can be lethal to fish but does not
    affect humans.  The confirmation prompted SalmonChile, the country's
    private salmon producers association, to declare an industry-wide
    health alert.  To avoid the spread of the disease, which was
    detected on two Marine Harvest farms, area producers were asked to
    take preventative measures, which include restricting the movement
    of salmon. Norwegian-owned Marine Harvest in the world's largest
    salmon producer.

    Source - Santiago Times (no link)

    ---------------
    Protected Areas
    ---------------

    ¶12. In the Amazon: Conservation or Colonialism?

    July 26, 2007 - Depending on one's point of view, the World Wildlife
    Fund's financial support of a nature reserve here on the Rio Negro

    BRASILIA 00001774  007.2 OF 012

    is either part of a laudable attempt to conserve the Amazon jungle -
    or the leading edge of a nefarious plot by foreign environmental
    groups to wrest control of the world's largest rain forest from
    Brazil and replace it with international rule.  In 2003, after
    signing an agreement with the WWF and the World Bank, the Brazilian
    government created the Amazon Region Protected Areas program.  Since
    then, more than a score of national parks and reserves covering an
    area larger than New York, New Jersey and Connecticut combined have
    been brought into that network and provided with an infusion of new
    funds.  But this effort has aroused the suspicions of powerful
    business and political groups in Brazil that want to integrate the
    Amazon into the country's economy through dams, mining projects,
    highways, ports, logging and agricultural exports.

    Source - IHT

    --------------------
    Science & Technology
    --------------------

    ¶13. Venezuela: Shell Allocates USD2.6 Million for Science

    AUG. 25, 2007 - Venezuela's Observatory for Science, Technology, and
    Innovation, which is part of the Ministry of Science, will increase
    by 20 percent it's funding for scientist under the Research
    Promotion Program, which includes 5,222 scientists.  This increase
    will be possible thanks to funding from Shell Oil Company.
    Researchers are given the extra funding on a monthly basis once
    their scientific productivity is proven to be laudable of the
    funding.

    Source - SciDev

    ----------------------------
    Waste Management & Pollution
    ----------------------------

    ¶14. Guyana: World Wildlife Fund Sounds Mercury Warning

    AUG. 22, 2007 - According to World Wildlife Fund (WWF) Guyana,
    unless adequate measures are taken to trap mercury after it is used
    in mining operations, mercury will continue to pose health threats

    BRASILIA 00001774  008.2 OF 012

    to those persons living in and around mining camps.  WWF
    representative Rickford Vieira issued this warning during a
    presentation to delegates at the Guyana Geology and Mines Commission
    (GGMC) mining conference.  Vieira pointed out that while efforts
    have been made by GGMC to monitor mining operations, he believes
    that the commission's work is limited somewhat because of
    insufficient personnel.  Because of Guyana's vast interior, mining
    camps are sometimes located very far away from each other and
    according to Vieira there are instances where only one engineer or
    five officers are in charge of monitoring a whole area and so it is
    difficult for them to visit every operation.  He explained that the
    great influx of miners from nearby Brazil, who are now scattered
    throughout the interior, has now made it harder for the commission
    to contain and adequately manage the sector.

    Source - StabroekNews

    ¶15. Chile's Conama Wants New Study on River Polluted By Celco

    AUG. 8, 2007 - Chile's National Environmental Commission (Conama)
    announced it will launch a study to gauge the environmental damage
    in that Mataquito River caused by pollution from a nearby CELCO wood
    pulp plant.  Additionally, Conama disclosed it will seek
    international aide for this initiative by invoking of The Convention
    on Wetlands Treaty.  Aside from studying the environmental impact to
    the river, Conama hopes to generate a "Recovery and Compensation
    Plan" which will include possible ways to undue damage to the river
    and restore the area's natural beauty.  The work will be
    concentrated between a point three kilometers upstream from the
    CELCO plant and Mataquito River's opening to the sea.  Controversy
    concerning this river dates from June 5, when residents near the
    Mataquito River began noticing thousands of dead fish. The problem,
    which was immediately attributed to the nearby CELCO plant, also
    affected birds and livestock.

    Source - Santiago Times (no link)

    ¶16. Paraguay: Hospitals - Generating Health or Pollution?

    AUG. 01, 2007 - It has been a year [since] the government's
    declaration of a health emergency when the two obsolete incinerators
    that disposed of the waste generated by the city's public hospitals

    BRASILIA 00001774  009.2 OF 012

    were closed down.  Given the lack of other means of disposing of
    hospital waste, collection was suspended for nearly two months.  The
    accumulation of waste reached levels incompatible with minimal
    hygiene standards, to the point that scheduled surgical operations
    had to be cancelled for fear of the spread of hospital infections.
    Paraguay has one of the highest rates of production of waste per
    hospital bed in the region. The Public Health Ministry reports that
    an average of three kg per patient are generated, far above
    Argentina's 800 grams and Brazil and Chile's 900 grams.  The Public
    Health Ministry launched a program last year to reduce that quantity
    by means of in situ separation of waste.  The department of health
    services is training health personnel to classify garbage by
    disposing of it in three different kinds of bags: black for general
    waste that requires no special treatment; yellow for uncontaminated
    plastics; and red for pathogenic waste.  Under a draft law that is
    in debate in Congress, management of hospital waste "would be the
    exclusive responsibility of the health centre that generates it,
    whether public or private," said Romero.

    Source - IPS

    ------
    Energy
    ------

    ¶17. Brazil Works on Biofuel Environmental Certification

    AUG. 27, 2007 - Federal agricultural research agency Embrapa plans
    to release in September the first mechanism to evaluate the
    environmental impact of biofuel production, which is the first step
    towards the creation of a global environmental quality certification
    for this sector. Biodiesel production from the palm oil plant should
    be the first to receive this "eco-certification," which is being
    developed with French agricultural research institution Cerad.

    Source - Public Affairs US Embassy Brasilia

    ¶18. Guyana Can Be Bio-Fuel Pioneer, says IDB President

    AUG. 07, 2007 - Guyana is to receive a US$850,000 grant from Japan
    through the Inter-American Development Bank (IDB) to screen
    bio-energy proposals.  The President of the IDB, Luis Alberto Moreno

    BRASILIA 00001774  010.2 OF 012

    told the gathering that the grant would help to jump start
    investment for bio fuel production and co-generation using bio-mass.
    According to the press report, a number of companies from Brazil,
    the US and India have indicated through proposals their interest in
    investing in bio-fuel/agro-energy production in Guyana. Moreno
    disclosed, too, that in the coming months, as part of a green energy
    initiative, the IDB would begin to disburse grants and loans to the
    tune of US$300M on sustainable energy programs and climate change
    initiatives.  The funds would be used to finance projects in energy
    efficiency and renewable bio-energy.

    Source - StabroekNews

    ¶19. Ethanol Sugarcane Threatens Brazil's Wooded Savanna

    JULY 31, 2007 - In the past four decades, more than half of the
    Cerrado ecosystem has been transformed by the encroachment of cattle
    ranchers and soybean farmers.  And now another demand is quickly
    eating into the landscape: sugarcane, the raw material for Brazilian
    ethanol.  "Deforestation in the Cerrado is actually happening at a
    higher rate than it has in the Amazon," said John Buchanan, senior
    director of business practices for Conservation International in
    Arlington. "If the actual deforestation rates continue, all the
    remaining vegetation in the Cerrado could be lost by the year 2030.
    That would be a huge loss of biodiversity."  The Brazilian
    government and big agribusiness companies say that the expansion of
    soybean and sugarcane fields doesn't necessarily mean devastation of
    the Cerrado, which hosts an estimated 160,000 species of animals and
    plants, many threatened with extinction.  They say they plant on
    wastelands and pastures where cattle once grazed, improving the soil
    quality and productivity.  But environmental groups argue that as
    soy and sugarcane displace cattle and less lucrative crops, ranchers
    are moving farther into the unspoiled areas of the Cerrado.

    Source - Washington Post

    ¶20. Brazilian Amazon Produces Sugar Cane For Ethanol

    JULY 31, 2007 - Contrary to some government assertions, there is
    significant production of sugar cane in the Brazilian Amazon for
    ethanol production, and it is growing.  Government figures indicate
    that sugar cane production in the Amazon region states of Amazonas,

    BRASILIA 00001774  011.2 OF 012

    Maranhao, Mato Grosso, Par and Tocantins has increased from 17.6
    million tons to 19.3 million tons in one year.  Those figures don't
    include Acre, which according to the Brazilian agricultural research
    agency Empraba has the same potential for sugar cane production as
    traditional producers like Sao Paulo and Pernambuco: 3% of its area
    is suitable for sugar cane production and the state government has
    an incentive program for ethanol.

    Source - Public Affairs US Embassy Brasilia based on a report in
    Brazilian daily O Globo

    -------
    General
    -------

    ¶21. Guyana Signs Millennium Challenge Corporation Grant to Support
    Fiscal Reforms

    AUG. 23, 2007 - A Millennium Challenge Corporation (MCC) Threshold
    Program agreement has been signed between the United States and
    Guyana. The two-year US$6.7 million program focuses on reducing
    Guyana's fiscal deficit by improving its ability to collect revenue
    and better manage its budget.  Additionally, the program will help
    reduce the number of days and cost to start a business by
    streamlining business registrations.  MCC's Threshold Program is
    designed to assist countries that are on the "threshold" of
    eligibility for Millennium Challenge Account Compacts. Threshold
    Program assistance is used to help countries address the specific
    policy weaknesses indicated by the country's scores on 16 policy
    indicators in three categories-Ruling Justly, Investing in People,
    and Encouraging Economic Freedom.  The assistance package for the
    Government of Guyana is focused on improving the country's
    performance on the Economic Freedom indicator.

    Source - Millennium Challenge Corporation

    ¶22. Peru: Extractive Industries Transparency Initiative Receives
    Donation from World Bank

    AUG. 09, 2007 - Official gazette El Peruano carried a Ministerial
    Resolution of the Ministry of Energy & Mines (MEM) accepting a
    $300,000 donation from multiple donors managed by the World Bank for

    BRASILIA 00001774  012.2 OF 012

    the implementation in Peru of the "Action Plan for the
    Implementation of the EITI."   EITI, the Extractive Industries
    Transparency Initiative, supports improved governance in
    resource-rich countries through the verification and full
    publication of company payments and government revenues from oil,
    gas, and mining.  The Initiative works to build multi-stakeholder
    partnerships in developing countries in order to increase the
    accountability of governments.  Good governance is a precondition
    for converting large revenues from extractive industries into
    economic growth and poverty reduction. When transparency and
    accountability are weak, the extractive industries may instead
    contribute to poverty, corruption, and conflict-the so-called
    "resource curse."  The EITI is an important step in defeating this
    "curse."

    Source - US Embassy Lima

    CHICOLA

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