e Paz).

Number 217, February 22, 1996.

LAND ISSUES

- "Surrender or Struggle".

Surrender or struggle is the title of an article written by

Jose Rainha Jr in the "Folha de Sao Paulo" on February 18. Our

readers of the last few weeks will remember that Rainha is a

member of the Movement of Landless Rural Workers (MST) who has

gone into hiding since his imprisonment was decreed a few weeks

ago. His wife Diolinda and three other members of the MST are in

prison in Sao Paulo. We reported on negotiations between the

chief of police, judge and public prosecutor with the MST lawyer

which clearly substantiates the claim by the MST that the

prisoners are indeed being used as hostages.

In the article, Rainha recalls that nowhere in history the

impoverished and those living on the margin of society have

managed to gain anything without a struggle and strong

organization. This is his point of departure as far as the MST is

concerned - without a struggle and good organization an agrarian

reform will not come about. He refers to a statement by President

Cardoso which said that he would not negotiate with sectors of

society who were making demands under pressure. According to

Rainha the President is doing nothing more that repeating the

speeches of the authoritarian governments during the military

regime.

If demands under pressure are not acceptable to President

Cardoso, why then does his government do nothing to resolve the

serious problems in the areas of public health, education and the

creation of employment. People seriously affected by such

problems are not occupying public buildings in an attempt to gain

their rights as is the case of the MST recalls Rainha. He goes on

to claim that it is clear that the Cardoso government is

administering the country in a manner which favors a small

minority of the population and is throwing the remainder deeper

and deeper into misery.

He goes on to state that even the official agrarian reform

plans of the government offer little and for this reason the

landless occupy so many areas. The landless are active because

the government is inefficient in attending to social demands. For

this reason the imprisonment of a number of MST leaders will not

finish with the occupations by the landless.

"At this moment when Brazil is governed by a president who

claims to have suffered political persecution and exile, I am

condemned to isolation and silence. Is this the life that neo-

liberal governments reserve for those who dare to propose

solutions for social problems? We were excluded from the right to

land, from the right to work. Now they want to exclude us from

the right to struggle for more social justice and dignity for our

people..... At this moment I am faced with a dilemma: surrender

or struggle. Surrender to save my wife. Surrender to see my son

again, even though it may be from behind bars. Surrender so that

Diolinda may regain freedom and her son. Surrender to continue

struggling for an ideal in which I believe. Struggle for

agrarian reform, for social justice, equality and a more

dignified life for our people. Surrender or continue in the

struggle to defeat the powerful who are concentrating in their

own hands more and more riches, lands and power. This struggle is

also a life commitment which I am not going to give up" writes

Rainha.

CHURCHES

- Lenten campaign launched.

The National Conference of Brazilian Bishops (CNBB) launched

the lenten campaign on Wednesday February 21. The theme this year

is "Justice and Peace Will Embrace" and it focuses on fraternity

and politics. The theme will be studied in churches, communities,

schools, youth groups, it will be provide a focus for reflection

in liturgical celebrations and will be used in other settings

during lent. Material for such groups has already been prepared

together with music on the theme, posters and a publicity

campaign for radios and TV. In recent years the CNBB has

concentrated on social themes - the excluded from society,

violence, land problems, ecology, health and education being but

a few of the topics chosen on an annual basis. Many believe that

the lenten campaign at national level which dates back to the

early 1960s in Brazil has in very large part been responsible for

large-scale conscientization and education of the population

especially on social issues.

The campaign booklet prepared for clergy and Church workers

outlines in its introduction the reason for this year's theme -

"The formation of a new political conscience at a personal level

is becoming more and more urgent so that people can exercise well

their citizenship. All citizens should know their rights and

duties so as to live well with human dignity in all its

dimensions".

It then goes on to outline the specific objective of this

year's lenten campaign:

- To broaden the concept of politics beyond the electoral

process.

- To offer elements for a new political way of acting which will

have its starting point in the poor and the excluded.

- To encourage people to act politically in a way which will

promote the common good.

- To make clear the link between politics and what happens each

day in such areas as family, community and social relationships.

- To encourage political militancy and the exercise of public

office in a manner which will change in a permanent way the

manner in which power is exercised.

Other reasons given for the selection of this years theme is that

it is a continuation of the theme in 1995 which dealt with social

exclusion as well as the fact that later this year municipal

elections will take place. The lenten campaign is then seen as an

opportunity to prepare well for the elections.

The campaign booklet recalls that many in Brazil say that

they want nothing more to do with politics. This in large part is

due to what has happened in recent history: politicians elected

who are not interested in the people and especially political

scandals. The text goes on to recall that all we do or left

undone is a political act and that on politics depends the

quality of life of citizens. It holds that there is a political

culture present in Brazil. This political culture is

characterized by the lack of knowledge of the civic duty to

participate in politics; by the lack of adequate knowledge

concerning the real objective of political questions and the fact

that the majority of the population does not understand even the

most rudimentary aspects of the political process.

The central section of the booklet is dedicated to a

theological study of the theme. It uses extensively biblical

ideas relating to politics and goes on to recall the Church's

teaching on this topic over the centuries. The final section of

the booklet deals with concrete proposals for action on the part

of the Church. These range from formation geared to a greater

political participation to better information services as to what

is happening politically, to suggestions as to how engaged and

committed christians might involve themselves more completely in

the political process.

INDIGENOUS ISSUES

- European Parliament criticizes Brazilian government.

The European Parliament at its meeting in Strasburg on

February 15 approved a resolution which accuses the Brazilian

government of making an about-turn in its indigenous policies

thus threatening the rights of the indian peoples in Brazil. The

resolution refers to Decree 1775 which was published in early

January and changes the rules regarding the demarcation of

indigenous area. With the publication of the Decree invaders such

as ranchers, lumber merchants and mining groups will be able to

invade and stake a claim more easily to indian lands.

According to a report in the "Jornal do Brasil" on February

17, the majority of the European parliamentarians considered the

Decree as unconstitutional and arbitrary. They want the

cancellation of funds from Europe which would be used in the

financing of the demarcation of indigenous areas. In a vote of

164 to 17, the European Parliament decided that the indigenous

question will now become part of any political, commercial or

economic transactions with Brazil.

The reaction of the Brazilian Minister for Justice, Nelson

Jobim, was to attack the decision of the European Parliament. "It

would be better if they occupied themselves with the problem of

Bosnia which they cannot resolve" he commented. Despite the

criticisms the minister plans to visit Europe in March to explain

why the Brazilian signed in law Decree 1775.

CAPOIB letter to World Bank

==================================================================

Mr James Wolfensohn President World Bank

Brasilia/DF, February 15, 1996

Dear Mr President,

CAPOIB, The Council of Unity of Brazilian Indigenous Peoples and

Organisations, an organisation which brings together more than one

hundred indigenous organisations in Brazil, is aware that the

World Bank is currently considering the implications of Decree

1775/96 for the implementation of its projects related to the

demarcation and regularisation of indigenous lands. For this

reason we are writing to you to offer data to be considered during

this evaluation.

Since January of this year, indigenous peoples and organisations

in Brazil have been expressing, in the strongest possible terms,

their rejection of the measure imposed by the Brazilian government

through Decree 1775/96. This policy and this regulation violate

our historical and constitutional rights, and threaten the

security of our existence now and that of our future generations.

In view of this, we wrote to officials of the World Bank, to the

G7 countries, and to the European Union, requesting the temporary

suspension of funds allocated to projects involving the

demarcation and regularisation of indigenous land in Brazil until

the Brazilian government revokes Decree 1775/96, and establishes

an indigenous policy compatible with the rights of the indigenous

peoples.

Our intention in making this request is to ensure that our right

to life is respected and made effective. We can no longer endure

the continuing pressure and violence which threaten and

exterminate our people, and we wish to warn public opinion, in

Brazil and abroad, that Brazil 's current policy towards

indigenous peoples, implemented by Decree 1775/96, is the road to

the genocide of Brazil's indigenous peoples.

It was for the same reason that we met, on February 6 last in

Brasilia, with the Bank's representatives. On this occasion we

expressed yet again our rejection of the Brazilian government's

measure and drew attention to the insurmountable obstacles Decree

1775/96 places in the way of the regularisation of indigenous

lands in Brazil, obstacles which make it impossible for the

contracts signed between Brazil, the World Bank, and donor

countries for the demarcation of our lands to be kept.

At this meeting, we presented a lengthy document in which we

stated that there is in operation in Brazil a deliberate policy of

reduction of the area of indigenous territories, embodied now in

Decree 1775/96 and even more obvious in Ministerial Order 14/96,

of January 9, which operationalises the Decree.

At the February 6 meeting, we also stressed our concern about the

Bank's moral commitment, in encouraging the establishment of such

a policy, through its support for demarcations which, based now on

Decree 1775/96 and Ministerial Order 14/96, will serve the purpose

of reducing indigenous territories.

We wish now to offer further evidence which we think should be

taken into consideration in the assessments of the World Bank and

donor countries. This is set out below.

REDUCTION OF INDIGENOUS TERRITORIES

The mechanism which makes possible the reduction of indigenous

territories is contained in Ministerial Order 14/96, issued by the

Minister of Justice, Mr Nelson Jobim, and dated January 9, 1996.

The mechanism for reducing the area of indigenous territories is

based on a 'reinterpretation', which contradicts the

constitutional basis of the concept of 'lands traditionally

occupied'. Ministerial Order 14/96 undermines this concept by

eliminating the basis for distinuishing indigenous lands from

others, namely traditional occupation, as defined by uses, customs

and traditions.

What the Constitution says. The text of the Constitution tells us

that lands traditionally occupied by Indians are defined by four

inseparable and interdependent conditions, which define indigenous

possession. Lands traditionally occupied by Indians are those (1)

permanently inhabited; (2) used for productive activities; (3)

essential to the preservation of the environmental resources

necessary to their well-being; and (4) necessary for their

physical and cultural reproduction. These four conditions are

interpreted by a set of three fundamental criteria: according to

their uses, customs and traditions.

What Ministerial Order 14/96 says. Miniusterial Order 14/96

associates uses, customs and traditions exclusively with the

'areas necessary for their physical and cultural reproduction'.

On the basis of this 'reinterpretation' of the constitutional

provisions on indigenous possession of land, Ministerial Order

14/96 makes it possible for indigenous lands, including those

already demarcated, to be reduced.

COMPENSATION FOR LAND

Decree 1775 and Ministerial Order 14/96 create a 'compensation

industry' for those who consider themselves to have suffered from

the demarcation of indigenous lands.

Compensation for improvements carried out in good faith was

already provided for in the Federal Constitution. Nonetheless,

Decree 1775/96 and Ministerial Order 14/96 stipulate payment of

compensation for lands to those who claim to have suffered from

demarcations, which is absolutely illegal and unconstitutional.

The payment of compensation for lands is also based on a

'reinterpretation' of the constitutional provisions, which

considers that indigenous lands can only be considered as such

when there is a corresponding entry in a land registry, and

therefore that titles issued to invaders up to the time of such an

entry are valid.

We enclose with this letter a document produced by CAPOIB, the

Comissao Pro-Indio de Sao Paulo and CIMI, the Indigenist

Missionary Council, dealing specifically with the 'indigenous land

compensation industry'. This is intended as a resource for the

World Bank and the donor countries in their assessment of

demarcation projects.

We do not want our lands to be reduced and resources from the

public purse and donors to be used to compensate land-grabbers and

all sorts of invaders who have stolen our land and have no right

to compensation under any Brazilian law.

We cannot accept any more arguments from the Brazilian government

which go against our people and the Constitution of our country,

and in favour of all those who have stolen our lands or acquired

them by fraud.

Mr President, we thank you for your attention, and are confident

that our submission will be considered and receive a response.

Yours sincerely

Antonio Pessoa Gomes

Juvino Sales

Jose Severino da Silva

for the Executive Committee of CAPOIB

copies to:

* Denis Mahar - World Bank representative in Brazil

* Ambassadors of the G7 countries and the European Union

* Board of the World Bank

* Legal Department for Latin America and the Caribbean

APPENDIX 1

==================================================================

THE INDIGENOUS LAND COMPENSATION INDUSTRY

Decree 1775/96 (which defines the administrative procedure for the

demarcation of indigenous lands and Ministerial Order 14/96 (which

establishes rules for the preparation of the identification and

demarcation report for indigenous lands) create a 'compensation

industry' for those who consider themselves to have suffered from

the demarcation of indigenous lands.

In establishing the right of challenge in the administrative

procedure, the decree stpiulates that deeds of ownership may be

used as evidence in applying for compensation. The application

for compensation and the relevant pieces of evidence, according to

the decree, become part of the administrative procedure for the

demarcation of indigenous lands, since this guarantees the right

of challenge and full defence.

It is the responsibility of FUNAI to accept the application,

include it in the file, give an opinion and foward all the

documents to the Minister of Justice for the Minister to decide on

the fate of the demarcation and the application for compensation.

Maliciously, Decree 1775/96 mentions compensation, but does not

describe the type of compensation (Article, 9, para 8).

Compensation for improvements carried out in good faith on

indigenous land is already provided for in the Brazilian

Constitution.

Even though it does not describe the type of compensation, Decree

1775/96 provides for compensation for the lands of those who

believe themselves to have suffered damage, such compensation to

be based on deeds of ownership, since it starts from the principle

that such deeds are legitimate, legal and valid until the

indigenous land to which they relate is registered in a land

registry.

The possibility of this sort of compensation is not clearly stated

in the decree, but is evident in Ministerial Order 14/96, which

states that indigenous lands can be considered as such only when

there is an entry in a land register, and thus that deeds relating

to them before the date of such an entry are valid.

This 'reinterpretation' of the constitutional provisions dealing

with indigenous lands and the rights of third parties to them,

expressed above all in Ministerial Order 14/96, is the mechanism

which enables states of the Brazilian federation, municipalities

and 'other interested parties' to claim compensation for lands

which are supposedly owned by them before the indigenous land is

registered in a land registry.

ACCESS TO COMPENSATION

PREMISE: Deeds of ownership relating to indigenous lands lose

their legal force only when these lands are registered in a land

registry.

This premise is contained in Ministerial Order 14, of January 9,

issued by the Minister of Justice, which says:

'CONSIDERING that the decree of ratification of the

President of the Republic, provided for in Article 5 of Decree

1775 of January 8 1996, has the effect of declaring the

Brazilian Federation's ownership of the demarcated area and,

after its registration in the competent land registry, has the

effect of cancelling any private ownership which may obtain

over the said area (Article 231, 6 of the Federal

Constitution)'.

HOW TO OBTAIN COMPENSATION

LEGAL BASIS: The legal basis for obtaining compensation is

contained in Decree 1775/96 and in Ministerial Order 14/96.

WHAT IS REQUIRED TO OBTAIN COMPENSATION: Decree 1775/96, Article

2, Para 8, allows deeds of ownership to be used as evidence 'for

the purpose of applying for compensation'.

TIME LIMIT FOR APPLICATIONS: The application for compensation,

according to Decree 1775/96, must be submitted by April 9 1996 in

the case of demarcations in progress, that is, lands which have

not yet been registered in land registries.

For compensation in the case of lands which have not yet been

identified as belonging to and occupied by indigenous peoples, the

time limit for the submission of the application is ninety days

after the publication of the report on the identification and

topopgraphical delimitation of these lands, which is carried out

by FUNAI.

HOW TO PRESENT THE APPLICATION: The application for compensation

is sent to FUNAI, it being sufficient to submit an application

with the relevant evidence, that is a deed of ownership (fixed

possession [posse] or legal ownership[propriedade]), with a

description of its nature and origin, as provided for in

Ministerial Order 14/96.

FUNAI, once it has received the application, forwards it to the

Minister of Justice within sixty days, as stipulated in Decree

1775/96, Art 2, Para 9.

WHO DECIDES ON THE APPLICATION: According to Decree 1775/96, the

decision on payment of compensation, based on ownership deeds,

belongs COMPLETELY AND EXCLUSIVELY TO THE MINISTER OF JUSTICE

(Article 2, Para 9). FUNAI forwards the administrative process of

demarcation 'together with opinions on the arguments and evidence

submitted'.

THE BASIS FOR THE MINISTER'S DECISION: The Minister of Justice's

decision on an application for compensation is based on the

documents submitted by FUNAI. However, there are no specified

criteria or priorities for the taking of this decision. IT IS A

PERSONAL DECISION BY THE MINISTER OF JUSTICE, which can only be

revoked by a judicial appeal, decided in favour of the applicant

for compensation.

TIME LIMIT FOR DECISION ON THE APPLICATION: The Minister of

Justice has to decide within thirty days from receipt of the

application forwarded by FUNAI.

APPLICATIONS FOR COMPENSATION ALREADY SUBMITTED

=====================================================

The first application for compensation for land was submitted to

FUNAI on January 25, 1996. The application is by Colonizadora

Terranorte Ltda, Carelli Centro Oeste Imoveis Ltda, Antonio

Mazurek, Joao Ferrari Pigato, Arlindo Oscar Carelli and Jose

Vanio Vefago, and concerns the Enauwene-nawe indigenous territory

in Mato Grosso.

The application for compensation is for R$7.6 million (US$7.4

million) and relates to 33,804 hectares known as Gleba Ique.

The applicants submitted as proofs the deeds of purchase and sale,

a certificate issued by the registry in Caceres on the origin of

the ownership and the FUNAI orders establishing the indigenous

territory. The plaintiffs claim that they are the legitimate

owners of the lands and that they were 'deprived completely of an

asset which they acquired at great expense and their good faith

abused'.

OTHER EXAMPLES

---------------------------- Enawene-nawe. In this indigenous

territory there are about another 150 lots in the same state as

that for which the first compensation application was made,

ranging in area from 500 to 2000 hectares. Compensation in these

cases would total around R$17 million (US$16.6 million). Adding

this to the cost of the first claim gives a total cost for this

indigenous area of R$24.6 million (US$24.1 million).

Mato Grosso do Sul. The landowners and ranchers in Mato Grosso do

Sul who might receive compensation by virtue of ownership deeds

occupy 16 indigenous areas, 10 not registered.

Although ten areas are candidates for compensation under the

provisions of Decree 1775/96 and Ministerial Order 14/96, it is

likely that the landowners will apply for compensation for all 16

areas, since they are already challenging these in the courts.

The landowners are bringing actions against the Brazilian

Federation on the basis of title deeds, claiming to have suffered

damage from the demarcations. It should be stressed once more

that the decision on the validity of the application lies solely

with the Minister of Justice.

The area of lands occupied by landowners in indigenous areas of

Mato Grosso do Sul is 235, 293 ha, which represents compensation

(on INCRA's scale) of R$ 383,057,004 (US$375,395,863), APPROXIMATELY

73% OF THE VALUE OF THE LOSSES TO THE BRAZILIAN SOCIAL SECURITY SYSTEM

FROM FRAUD. This sum would be increased by the inclusion of

compensation for improvements carried out in good faith, as stipulated

by the Brazilian Constitution.

Para'. The list of 'demarcations liable' to communications with a

view to 'applications for compensation or to demonstrate flaws,

total or partial' in Para' totals an area of 12,137,054 ha,

according to a letter from the Minister of Justice to the Governor

of Para' on January 11, 1996.

If compensation were to be applied for in respect of all the areas

listed by the Minister, the Brazilian Federation would be required

to pay R$1,153,020,130 (US$ 1,129,959,727) (by the INCRA scale) or

almost the total budget for the SIVAM project (US$1.4 billion).

Roraima. The indigenas lands still not registered in this state

have an area of 2,949,473 ha. The cost of compensation on the

INCRA scale would be R$3.4 billion (US$3.3 billion), OR

50% OF THE BUDGET FOR THE MINISTRY OF LABOUR FOR 1996.

Amazonas. The government of the state of Amazonas, which also

received - after complaining that Para'was being given special

treatment - from the Minister of Justice a list of 'liable' areas,

could also receive compensation amounting to R$1,088,488,378

(US$ 1,066,718,610). This represents the 51 indigenous areas

listed by Nelson Jobim, which have a total area of 18,767,041 ha.

WHO FOOTS THE BILL?

---------------------------------- Compensation payments for

improvements carried out in good faith are included in the Federal

budget allocation for FUNAI.

Compensation payments for land, as envisaged in the Decree and the

Ministerial Order, will presumably come from the same source.

APPENDIX 2

=========== Argument of the petitioners in the first application

for compensation (see Appendix 1)

Case No: 08620-0176/96

Date of receipt: 25/01/96

Indigenous area in question: Enawene-nawe

Location: municipalities of Campo Novo dos Parecis and Comodoro/MT

Alleged injured party: Colonizadora Terranorte Ltda, Carelli

Centro-Oeste Imoveis Ltda, Antonio Mazurek, Joao Ferrari Pigato,

Arlindo Oscar Carelli and Jose Vanio Vefago.

Total area: 752,000 ha

Administrative situation: Delimited with physical demarcation

(financed by Prodeagro)

Anthropological report: Artur Nobre Mendes (Specialist Report No

01/91 of 17/06/91)

Petitioners' claim: Compensation, at the value fixed by INCRA

(R$ 226.77 per ha) for the 33,804 ha of Gleba Ique

Petitioners' argument

---------------------------- Acquisition of Gleba Ique by the

first owner in 1981 and subsequent sale of part of the area to

others in 1987. The property is based on deeds of ownership

issued by the Government of the State of Mato Grosso during the

years 1961-66, with no qualification mentioning the closure of the

area in virtue of the presence of forest people. Since

acquisition until the year 1991, the petitioners excercised calm

and peaceful posession of the proverty, paying all taxes due under

ITR, when they were prevented from entering by FUNAI, in virtue of

the Enawene-nawe indigenous area. It should also be remembered

that the specialist report...prepared by the anthropologist Artur

nobre Mendes does not accurately represent the facts. The

above-mentioned report states that the Enawene-nawe Indians were

returning to their lands after 25 years, having been driven out by

the Cinta-largas. If in fact the Enawene-nawe were driven out by

the Cintas-largas, the Cintas-largas should have been occupying

the area of land which includes Gleba Ique when the latter was

purchased. However, the first purchaser and the others

subsequently found nothing, all of which points to the conclusion

that in 1991 FUNAI organised the move of the Enawene-nawe Indians

to the lands in which the Gleba Ique is situated. It thus appears

that this is not a case of immemorial occupation by the

Enawene-nawe Indians, but instead the creation pure and simple of

a new Indian reserve to cater for difference with another group of

Indians. The statement in the report...that there were no

non-Indians present in the area of the Gleba Ique is not true,

since the first purchaser had been there since 1981. Also,

according to the petitioners, FUNAI did not bother to check titles

of ownership existing in the area of the Gleba Ique in order to

check the existence or otherwise of legitimate owners and the

exercise of possession, as a result of which the petitioners were

deprived completely of an asset which they acquired at great

expense, and their good faith abused'.

Evidence submitted by the petitioners

------------------------------------------------ Deeds of purchase

and sale; deeds of purchase and sale, a certificate issued by the

registry in Caceres/MT on the origin of the deeds; orders

establishing the area.

Observations

-----------------

Indigenous occupation charcterised by

------------------------------------------------ Recovery of

traditional territory, from which they were expelled by the

Cinta-larga Indians.

- Newsletter of the Indigenous Missionary Council (CIMI).

Newsletter n. 197

XAVANTE INDIANS DEMAND HEALTH CARE TO THE PRESIDENT OF FUNAI

The president of Funai, Marcio Santilli, disappointed a caravan of

20 Xavante Indians who in the morning of February 12 visited the

agency to request health care in their villages. With their bodies

painted for war, they wanted the Indianist agency to explain why it

has failed to provide an adequate care so far. Outraged with

Santilli's passiveness, however, they pushed the president and other

directors of the agency to the garage of the building, where for over

an hour they held a tense conversation, protesting and denouncing the

lack of assistance to the villages. In the afternoon, they tried to

meet the minister of Justice, Nelson Jobim, but were instead received

by the head of his cabinet, Jose Gregori, to whom the Xavante

requested Santilli's dismissal. The claims of the Indians were seen by

Funai as a ``reaction against the elimination of certain privileges''

which the new administration has been promoting. This position was

immediately rejected by the Council for the Articulation of Indigenous

Peoples and Organizations of Brazil (Capoib), which in a letter to the

press has denounced the corruption of leaders as an old practice of

the Indianist agency.

According to Capoib, the Indians are not demanding unreasonable

benefits, but rather that the State fulfill its duty. It also said

that indigenous leaders are worried with reforms being promoted in

Funai, as they are not being discussed with indigenous communities. In

Capoib's opinion, Funai's reference to benefits is shameful, as for

decades the agency has specialized in coopting Indians to overlook

undue benefits enjoyed by certain directors. ``The State has always

been interested in making sure that the Indians continue to be seen as

dependents and ignorants.'' The actions of the Indians, some of which

have been drastic, are ``a consequence of the genocidal policy that

has been adopted in Brazil,'' they denounce. This is the fourth time

this year that indigenous peoples take hostages to draw attention to

their claims. In a meeting held on the following day, Funai announced

that R$ 10,000 (around US$ 10,000) will be applied in projects to be

implemented in indigenous communities. The Xavante who attended the

meeting, around 40, do not believe in this promise.

VICTORY IN VOTING ON LDB FOR EDUCATION

The approval by the Federal Senate of the bill for the Law on

Directives and Bases (LDB) for Education on February 8 represents a

victory for the indigenous peoples of Brazil. The new text included an

amendment proposed by senator Benedita da Silva (Workers' Party-Rio de

Janeiro) based on a proposal made by Cimi to include an article in it

ensuring indigenous peoples the right ``to a specific, differentiated,

and intercultural school education, according to the linguistic

universe of each people.'' According to the bill, indigenous peoples

will have a school education that respects their costumes, beliefs and

traditions. The participation of indigenous communities, organizations

and similar entities in the definition of this education was also

ensured. The Union will be responsible for offering this indigenous

school education. The bill will now have to be passed by the Chamber

of Deputies before it can become a law.

Brasilia, February 15, 1996

ECOLOGY

- UPDATE: The World Bank and the Rondonia Forum of NGOs and

Social Movements.

The following is an English translation of a letter sent on

February 13th to the President and Executive Directors of the

World Bank, expressing the position of the Rondonia Forum in

relation to the Board's decision of January 25th, regarding the

Request for Inspection of the Rondonia Natural Resources

Management Project (PLANAFLORO). Your comments are welcome.

Luiz Rodrigues de Oliveira

Executive Secretary

Rondonia Forum of NGOs and Social Movements

--------------------------

English Translation

Official Letter no.008/96

Porto Velho-RO, February 13, 1996

Mr. James Wolfensohn, President, The World Bank

Executive Directors, The World Bank

1818 H Street, N.W.

Washington, D.C. USA

c.c: Mr. Ernst Gunther-Broder, Chairman, Inspection Panel

Mr. Asif Faiz, Acting Director, LA1DR

Ms. Constance Bernhard, Division Chief, LA1NR

Ms. Graciela Lituma, Task Manager, LA1NR

Mr. Emerson Teixeira, Secretary of Planning-Government

of Rondonia

Mr. Valdir Castelo Branco, SPE-Ministry of Planning

Dear Sirs,

We would like to present some comments on the January

25th resolution of the Executive Directors of the World Bank,

regarding the Request for Inspection of the Rondonia Natural

Resources Management Project (PLANAFLORO). This correspondence

also has the purpose of responding to a letter dated February

1st, sent by Mr. Asis Faiz (Acting Director, LAIDR) on behalf of

Mr. Wolfensohn.

1. Obviously, we were disappointed by the decision of the

Board of Directors to not authorize a formal investigation of

PLANAFLORO. As previously emphasized, an independent

investigation of the project by the Inspection Panel represented

the best strategy for addressing the problems identified in the

Request for Inspection, while also taking advantage of an

important learning opportunity for the World Bank and the

Brazilian government. Considering the information presented by

the organizations that signed the Request for Inspection, as well

as the recommendation of the Inspection Panel itself, it is

difficult to comprehend the motives that led the Executive

Directors to not approve an investigation of PLANAFLORO.

2. At the same time, the decision to seek an intermediate

solution involving the Inspection Panel, as opposed to simply

denying the Request for Inspection, demonstrated that the

President's Office and Board of Executive Directors of the World

Bank are seriously concerned with improving the performance of

PLANAFLORO.

3. The implementation of an Action Plan, to be evaluated

after six to nine months with the assistance of the Inspection

Panel, may represent a valuable opportunity to improve the

execution of PLANAFLORO. However, we have the following concerns

regarding this plan:

% As previously communicated (in our letter of January

19,1996), there was not effective participation by members of the

Rondonia Forum of NGOs and Social Movements in the preparation of

the current Action Plan. In the Status of Implementation Report

(SOI), dated December 15 1995, it is stated that the updated

version of the Action Plan was "fully discussed" with members of

the NGO Forum of Rondonia. However, during the Bank's

supervision mission of September/October 1995 (whose Aide Memoire

became the basis of the Action Plan) only one meeting was held

with members of the NGO Forum to discuss a sub-component of

PLANAFLORO (the "Community Initiatives Program-PIC"). The

PLANAFLORO project as a whole, covering the problems identified

in the Request for Inspection, was not discussed with the Forum

on this occasion.

We would like to clarify that the Forum only received the

Aide Memoire from the September/October 1995 supervision mission

in early December, 1995. We only received the matrix of the

Action Plan (in Portuguese) on January 23, 1996, and the Status

of Implementation Report (in English, dated 12/15/95) on January

29, 1996.

% In a preliminary evaluation, we have observed that

several issues addressed in the Request for Inspection are not

adequately contemplated in the current Action Plan. Moreover,

the Status of Implementation report includes some incorrect

information, including subjects that were clarified in our

earlier correspondence (see, for example, the October 10, 1995

letter to the Inspection Panel). In summation, our position is

that the current Action Plan does not have the necessary

objectivity to serve as a basis for resolving the problems

identified in the Request for Inspection.

% It is not clear what strategy will be employed for

monitoring the Action Plan, especially with regard to the

participation of the Forum and the Inspection Panel. In the

absence of continuous and effective monitoring, the possibilities

for success of the Action Plan will be significantly reduced.

4. Considering the need to reach a consensus on the best way

to implement the Board of Director's decision on PLANAFLORO, we

are presenting the following proposals to the World Bank and

Brazilian authorities:

% The Action Plan should reflect a consensus about the

necessary measures to overcome current obstacles to the

implementation of PLANAFLORO. Therefore, the members of the

Rondonia Forum of NGOs and Social Movements should have the

opportunity to participate in the preparation of a revised

version of the plan, together with government officials, the

World Bank and the Inspection Panel.

% A strategy for the continuous monitoring of the Action

Plan should be jointly defined, contemplating the active

participation of the Forum and the Inspection Panel. The Forum

should have unimpeded access to information regarding

implementation of the Plan, with the support of specialized

personnel to assist in monitoring activities. The Inspection

Panel should have complete freedom and logistical support to

carry out monitoring and evaluation activities, in accordance

with its own methodology.

% In a complementary manner, the following measures

should be adopted as soon as possible: a) the implementation of

the mid-term evaluation of PLANAFLORO should be carried out,

including reactivation of the Independent Evaluation Committee

(IEC/COMAI), b) the World Bank's Operations Evaluation Department

(OED) should conduct an evaluation of PLANAFLORO, covering the

problems identified in the Request for Inspection related to the

initial phases of project planning and implementation.

According to the letter from Mr. Faiz dated February 1

1996, the Board of Executive Directors of the World Bank, in

their decision to not authorize an investigation of PLANAFLORO,

opted to take a "forward-looking stance". However, if we aim to

not repeat the same mistakes in the future, we must learn from

the errors of the past. In the absence of an independent

investigation by the Inspection Panel, the measures proposed

above may help in learning these lessons from the past.

Moreover, we agree that it is important to accelerate the

implementation of PLANAFLORO, but also the quality of project

implementation.

We hope to count on the collaboration of the World Bank

and government authorities in order to arrive at a consensus on

the best manner to implement the Action Plan, with the aim of

overcoming obstacles that have hindered the execution of

PLANAFLORO. As such, we would like to arrange for a meeting with

representatives of the Bank and the Coordination of PLANAFLORO at

your earliest convenience.

Awaiting your reply, with cordial greetings,

Sincerely,

Luiz Rodrigues de Oliveira

Executive Secretary

Rondonia Forum of NGOs and Social Movements

Rua Carlos Gomes, no. 1001 - Centro

CEP: 78.900-500 - Porto Velho-RO, Brasil

phone/fax: (55-69) 223-1116

e-mail/: forumro@ax.apc.org

VIOLENCE

- Record number of assassinations during carnival.

Carnival this year was the most violent registered in the

State of Sao Paulo. Between 7.00 AM on Friday February 16 and

7.00 AM on Wednesday February 21, 219 people were assassinated in

the state. Of these assassinations, 163 were registered in the

Greater Sao Paulo area.

A comparison between figures for 1995 and 1996 shows that

assassination statistics were up by 42.2% in the state and by 43%

in the Greater Sao Paulo area. In other states, assassination

numbers also rose during carnival. This year 58 people were

assassinated in the State of Rio de Janeiro as compared to 44

last year. In Sao Paulo the statistics relating to other crimes

also showed an increase during the carnival period. The number of

vehicles stolen for example showed an increase of 102.3% with

compared with 1995.

Different explanations were offered to show why assassinations increased during the carnival period. The State Secretary of Security in Sao Paulo, Jose Alfonso da Silva claims

that the reason for the increase can be found in the increase in

drug and alcohol consumption at this time. According to lawyer

Jairo Fonseca president of the Human Rights Commission of the Bar

Association (OAB) of Sao Paulo, social exclusion encourages

violence and the increase in the number of assassinations cannot

be attributed entirely to the increase in drug consumption.

"There is without doubt an increase in the consumption of drugs

but this is not a determining factor in the increase of

assassinations. The majority of these crimes happen during small

rows. Unhappiness increases in peoples ' lives and this explodes

at a time such as carnival when everyone is encouraged to be

happy and psychologically many are not prepared for this ....

When (the number of assassinations) reaches numbers such as we

are now experiencing it is no longer a police problem but instead

a political problem" commented Fonseca.

According to Maria Ignes Bierrenbach, president of the State

Council for the Defense of Human Rights it is necessary to

decrease the levels of violence in the daily lives of people in

order to reduce the number of assassinations. Guaracy Mingardi of

the Nucleus for the Study of Violence of the State University of

Sao Paulo commented that the state could help to control the

number of assassinations by restricting the use and sale of arms

as well as alcohol. Few restrictions are made when a person

wishes to buy a gun and many bars are open 24 hours. Many of the

assassinations happen in or near such bars.

- Lack of funds bringing judiciary to a stand-still.

In recent months some state governments have failed to pass

on the necessary funding to the judicial system. Governors have

been suspending the passing on of such funds because in many

states funds are practically non existent to cover the day to day

expenses in all areas of administration. In states such as Mato

Grosso, Mato Grosso do Sul, Alagoas and Acre the judicial system

has simply ceased to function because of this. Of all the states

mentioned the situation is most critical in Mato Grosso where

functionaries who work in the courts are threatening strike

action. Here the government held back grants for the last four

months. Within the last few days grants due to be paid during

1995 and amounting to almost US $19 million were finally passed

on. In large part this was due to the intervention of the

president of the Supreme Federal Tribunal.

In Mato Grosso do Sul court house functionaries have been on

strike since December. Here, the local lawyers association (OAB)

has called on the Supreme Federal Tribune to intervene in the

state. Because of this precarious situation, 120 thousand court

cases in the state are at a stand-still. In the State of Alagoas

a similar federal intervention was also requested last year. Here

funds have begun to trickle through. For the last four months

funds for the judiciary system have not been paid in the State of

Acre. Even in wealthier states such as Rio de Janeiro judiciary

funds are beginning to run out. As state funds become scarcer,

the judiciary is one of the first institutions to suffer severe

cut-backs.

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