Number 276, June 12, 1997.

LAND ISSUES

- Jury verdict causes widespread surprise.

At the end of a 17 hour trial one of the leaders of the Movement of Landless Rural Families (MST), Jose Rainha Junior, was sentenced to 26 and a half years' imprisonment. The trial ended on June 11 in Pedro Canario, State of Espirito Santo. The jury decided by 4 votes to 3 that Rainha was amongst the 11 assassins of rancher Jose Machado Neto and by 5 votes to 2 that he also was responsible for the assassination of military policeman Sergio Narciso da Silva on Hune 05, 1989. Rainha claims that on the date of the assassination he was in the interior of the State of Ceara. NEWS FROM BRAZIL 261 of February 06 last carries the background to this question.

Five witnesses had claimed in pre-trial hearings that Rainha was present when both victims were assassinated. The witnesses were convoked by the court to be present at the trial. Onlt two were present at the trial but they were not requested to give evidence or to be cross examined. The evidence that all five had given at the pre-trial hearing was read. The evidence contained in these documents raised many doubts however. The principal witness, Jose Jorge Guimaraes, referring to Rainha described him physically in a manner which raised clear doubts if he was talking about the accused.

On the other hand five witnesses testified during the trial that Rainha had been in the State of Ceara and consequently could not have been responsible for the assassinations. One of the witnesses who testified that Rainha was in Ceara at the time of the assasssination was a deputy of that state - Eudoro Santana. At the time of the assassination Deputy Santana was state secretary of agriculture in Ceara and claimed that on the date of the assassination he had met with Rainha and other members of the MST to discuss a meeting with the landless and the then governor of the state, Tasso Jereissati. Military police colonel Sebastiao Leandro Cavalcante, police chief during the Jereissati government also testified to Rainha's participation in the meeting. Two city councilors from the state capital, Forteleza, Atila Bezerra and Narcilio Andrade testified at the trial that they visited a campment in the interior of Ceara on the day of the crime and met Rainha. Because of distance the arrival of Rainha from Espirito Santo in the campment would have been impossible.

By Brazilian law when a sentence handed down is greater than 20 years, the person sentenced has a right to a re-trial. Jose Rainha's re-trial has been set for September 16 next and in theory should take place in Pedro Canario. It is expected however that defense lawyers will try to have the trial transferred to the state capital, Victoria, because pressure is allegedly being brought on jurors in Pedro Canario to condemn Rainha. Commenting on the trial Mr. Rainha remarked 'I would like to say to Brazilian society that here a judgment of the landless movement and agrarian reform took place.... What we saw was that the ranchers had secured the votes of the jurors who condemned... The only crime which I committed was to struggle to ensure that each one of us have a piece of land, a piece of bread and that our children may not become bandits. If this is a crime I will continue to commit it'. During the trial approximately 3500 landless waited the verdict outside the court-house.

- Two landless killed.

On June 09 the bodies of two landless were found in the river Capibaribe, State of Pernambuco. Both had been missing since June 08 when armed men had entered a landless campment at Nazare da Mata during the earlier hours of the morning. The campment had been set up by approximately 30 landless families about four days previously. 20 year old Inacio Jose da Silva and 56 year old Pedro Augusto da Silva died from bullet wounds; the body of the latter victim also had knife wounds. The bodies were found approximately 30 kms from the site of the campment. According to witnesses both had tried to flee when the armed men invaded the campment but had been captured by the attackers and taken away. 6 other people - 4 adults and two children, were also injured during the attack.

Meanwhile a conflict between 350 landless families (which include 150 children and 20 pregnant women) and the military police is feared at the Santa Rosa ranch in the municipality of Itaberai, State of Goias. A court order has demanded that the families be removed within the next few days. The military police have circled the area. 'We don't have a house, employment or land. We are the 'have-nothings'. We have no motive to leave here, even if there is a risk of losing our lives' commented landless leader Jose Ferreira.

R I O M A R I A B U L L E T I N

Volume VII, Number 1 June 1997

URGENT ACTION:

The Murderer of the President of the Union of Rural Workers of Rio Maria Walked Freely in Rio Maria

On May 14 and 15, 1997, Jose' Serafim Sales was seen walking openly through the streets of Rio Maria. Sales, known as Barrerito, was sentenced to 25 years in prison on September 1, 1995, for the killing of Expedito Ribeiro de Souza, the President of the Union of Rural Workers (Sindicato de Trabalhadores Rurais) of Rio Maria, on February 2, 1991. While in Rio Maria, Sales visited people believed to be linked to organized crime. Sales was given authorization to visit his family, who live in the municipality of Rio Maria, by Judge Maria Nazare' Gouveia dos Santos as a reward for his good behavior in prison in Bele'm.

The Rio Maria Committee, the Union of Rural Workers of Rio Maria and the local Pastoral Land Commission (Comissa~o Pastoral da Terra, CPT), immediately issued a protest, stating their extreme concern about the situation, as Sales is a dangerous person. He is known to have been involved in several other crimes in the region, including two homicides in Rio Maria. His presence in the city created a climate of great tension, fear and insecurity, especially for the family of Expedito Ribeiro de Souza, unionists and members of the Rio Maria Committee who had followed the legal process and trial against him since its inception. It is worth highlighting that between 1985 and 1991, five unionists were victims of contract killings, and two more were victims of attempted homicide.

Shortly after the public protest by the Rio Maria Committee, the newly arrived judge of Rio Maria found that there were two additional criminal charges of homicide against Jose' Serafim Sales. One of these files had been forgotten by the county clerk (the escriva~o), and, very suspiciously, had been under the responsibility of the public defender for five years without any action having been taken.

Jose' Serafim Sales is not an example of good behavior. In fact, on August 26, 1996, he planned an unsuccessful escape from the prison in Bele'm, as the local press noted at that time. His visit to Rio Maria on May 14 and 15, accompanied by persons thought to be linked to organized crime, is a clear provocation and intimidation. In addition, Rio Maria's judge has issued two decrees of preventive detention against Sales for two other homicides he committed. For these reasons, it is crucial that the judge in Bele'm, Dra. Maria Nazare', should suspend the decision to permit Sales to serve his sentence under more lax conditions. Instead, Jose' Serafim Sales should be kept behind bars under maximum security conditions.

We urge you to send a letter or fax to judge Maria Nazare' Gouveia dos Santos protesting the lenient treatment of Jose' Serafim Sales, and we thank you once again for your solidarity and for the important help that you are providing in the fight against organized crime in the Rio Maria region.

Examples of the letter, in both Portuguese and English, follow.

Exmo. Sra.

Dra. Maria de Nazare' Gouveia dos Santos

Jui'za da 8a Vara Penal

Prac,a Felipe Patrone

66000-000 - Bele'm - PA

fax: + 55-91-241-2970

Doutora,

Em 1994 e 1995 acompanhamos com muita atenca~o os julgamentos exemplares pelo Tribunal de Ju'ri de Bele'm, presidido pela Sra., dos assassinos do sindicalista Expedito Ribeiro de Souza. Chegou ao nosso conhecimento que a Sra. concedeu uma licenca para o preso Jose' Serafim Sales, conhecido por Barrerito, visitar sua fami'lia que mora no munici'pio de Rio

Maria, por ter bom comportamento na penitencia'ria de Bele'm.

Ficamos muito preocupados porque Jose' Serafim Sales e' conhecido como um elemento perigoso, envolvido em va'rios crimes na regia~o, processado, inclusive, por dois outros crimes de homici'dio na comarca de Rio Maria, com priso~es preventivas decretadas. Sua presenca na cidade criou um clima de grande tensa~o e medo principalmente para a fami'lia de Expedito Ribeiro e Souza, sindicalistas e membros do Comite^ Rio Maria que acompanharam o processo e julgamento do criminoso.

A atitude de um condenado que se mostra ostensivamente na cidade onde cometeu um crime que comoveu profundamente o povo da regia~o, acompanhado por elementos suspeito de ser ligados ao crime organizado, na~o parece um "bom comportamento." Tambe'm a imprensa, na e'poca do julgamento, em 28.08.1995, noticiou que Jose' Serafim Sales tinha articulado uma fuga da penitencia'ria.

Por todas essas razo~es e para evitar outra trage'dia para a fami'lia de Expedito Ribeiro de Souza e sindicalistas de Rio Maria, que ja' sofreram tanto, confiamos que a Sra. suspendara' o regime favora'vel da aplicaca~o da pena cujo beneficia Jose' Serafim Sales, o mantera' em regime fechado e na~o lhe concedera' outra licenc,a.

Atenciosamente,

Dra. Nazare',

In 1994 and 1995 we followed closely the exemplary trial, which you presided over, of the murderers of unionist Expedito Ribeiro de Souza. It has come to our attention that as a reward for good behavior you have given a temporary leave from prison to Jose' Serafim Sales, known as Barrerito, so that he could visit his family in the municipality of Rio Maria.

We are very concerned about this action, because Jose' Serafim Sales is known to be a dangerous person who has been involved in various crimes in the region, and even has two other charges of homicide filed against him by the judge of Rio Maria.

His presence in the city created a climate of great tension and fear, especially for the family of Expedito Ribeiro de Souza, local unionists, and members of the Rio Maria Committee, who were instrumental in urging Sales's prosecution.

The attitude of a criminal who walks openly and defiantly through the city where he committed a crime which shocked the people of the region, while accompanied by persons thought to be linked to organized crime, does not appear to be an example of "good behavior." In addition, the press has noted that on August 28, 1995, Jose' Serafim Sales attempted to escape from prison.

For all of these reasons, and in order to avoid another tragedy for the family of Expedito Ribeiro de Souza and unionists in Rio Maria, who have already suffered so much, we trust that you will suspend the lenient treatment currently being applied to Jose' Serafim Sales, and will keep him under conditions of permanent incarceration without granting him permission to visit the city of Rio Maria again until he has served his sentence.

Sincerely,

Please send copies to:

Ambassador Paulo Tarso Flecha de Lima Brazilian Embassy

3006 Massachusetts Ave., N.W.

Washington, DC 20008

Britta Fischer

(Secretary of the Committee)

Rio Maria Committee

238 Charles Street

Cambridge, MA 02141-2004

100 LETTERS!

We would like to give a special thanks to the 100 people who sent letters to be delivered to President Cardoso. On Friday, May 23, Madeleine Cousineau went to the Ministry of Justice in Brasi'lia to deliver 80 of the letters to Dr. Jose' Gregori, National Secretary for Human Rights (20 of the letters had previously been delivered by Dr. Paulo Se'rgio Pinheiro, whom Madeleine and Juscelito da Silva, president of the Rio Maria Committee, met in Providence, RI, last month).

After Brasi'lia, Madeleine went on to Rio Maria, to meet with the central Rio Maria Committee. News of that meeting will be in a subsequent bulletin.

FATHER RICARDO IN RIO

Father Ricardo Rezende is presently studying at the Federal University of Rio de Janeiro, in order to be able to do more systematic research on the problem of slave labor. After completing a Master's program he plans to return to pastoral work in the south of the state of Para'.

Meanwhile, in Rio Maria, most of the pastoral work is being carried on by Sister Zoeli and Sister Terezinha, with assistance from Father Henri Des Roziers, who is also the main organizer of the legal work of the Rio Maria Committee.

LOCAL ELECTIONS

Last month the Rio Maria Committee of the United States held a general meeting and election of officers. Joscelito da Silva was elected president of the U.S. committee, Ben Penglase vice- president, Britta Fischer secretary, and Monica Pinhaez treasurer. Madeleine Cousineau continues as U.S. coordinator and editor of the Rio Maria Bulletin, with Ben Penglase serving as assistant editor.

The Rio Maria Bulletin disseminates information received directly from Rio Maria, as well as from Amnesty International and from the computer networks of the Association for Progressive Communication.

Comments and inquiries may be sent to:

Rio Maria Committee

238 Charles Street

Cambridge, MA 02141-2004

Phone: 617-491-5793

Fax: 617-492-9922

E-mail: riomariausa@igc.apc.org

Steering Committee: Ana Christina Braga Martes, Gelma Coelho, Madeleine Cousineau,

WOMEN'S ISSUES

- Precarious pre-natal care.

A survey carried out by the Pastoral Office for Children (Pastoral da Crianca) of the Archdiocese of Sao Paulo shows that the region of Sapopemba (population 300 thousand) in the eastern section of the city of Sao Paulo has a totally inadequate infrastructure to attend pregnant women and offer pre-natal care. The survey entitled Eu Quero Viver (I Want to Live) recorded the experiences of 500 women between 14 and 40 years who sought such services in the region.

The survey showed that 96.3% of women from the region gave birth in other regions or in neighboring cities. 63.8% did not succeed in receiving pre-natal care and examinations in the region. Constant complaints of the pregnant women include the lack of doctors, long waiting lines and routine examinations which are not requested by the doctors. 25% of the women when labor pains had already started needed to seek out more than one hospital because either the first hospital visited had no vacancy or no doctor was in attendance at that time. 48% of the women interviewed claimed that when they went to the nearest hospital which is in the Sao Mateus neighborhood after the on-set of labor pains they were not attended. Vacancies in 38 different hospitals were sought by women already experiencing birth pains.

Two examples exemplify the suffering of the expectant mothers and the total abandonment of the state of pre-natal care in this region. Michael is a strong and healthy four month's old baby. But his parents, steel worker Leocadio Alves do Almeida and Marlene Freire de Alckmin are still struggling to pay back to relatives the US $1.2 thousand which they borrowed at the time of his birth. 'If it weren't for this money both of us would have died' commented his mother, Marlene. She outlined the suffering and confusion which were part of her life during the days prior to Michael's birth.

When the birth pains started Marlene made a total of eight visits to three local hospitals. 'There were no vacancies and so every time I had to come home. We have no car and my husband was absent from work. It caused a lot of suffering' remembers Marlene. She was then taken to a private hospital because her life and that of the unborn child were at risk. Her husband borrowed money from several members of the family to pay the hospital expenses. Marlene remembers that the experience was extremely humiliating 'It must be the worst thing in the world for you to have pain and nobody to attend you' she commented.

The story of 20 year old Rosana Bispo de Brito who gave birth to Eliezer on February 21 was basically similar - 'My dream was that at birth my son would be attended by a team of doctors all dressed in white as the television programs show and that I would receive flowers. Wouldn't that be just beautiful? But my experience was very sad and painful. During three days I was in pain and I could not get a vacancy in a hospital. The baby was born when I was alone waiting to be attended in a hospital in Santo Andre. He simply was born after a lot of suffering. Only then did the doctors appear.

'It was a very solitary experience. I began to feel pains on February 18. I went to the Sao Mateus hospital but there was no vacancy. The attendants there said that I should wait as long as possible. During the early hours of February 21 the pain increased a lot. My husband left the house at 2.00 AM and went on foot to the Sao Mateus hospital - a journey which took him 40 minutes. I remained alone at home very much afraid and suffering a lot of pain.

'When he arrived at the hospital there was no vacancy. He was so desperate that he went to the police station to ask for help but the police said that all their cars were out on patrol. He tried to get a taxi but since the neighborhood has a violent reputation no taxi driver attended him. I waited until 5.00 when my uncle came to take me to hospital.

'We went directly to Santo Andre. I imagined that we would be attended immediately but we remained in the corridors until 11.00 AM. At mid-day I was put into a bed. The doctor said that the child would not be born for quite a while but after a few minutes the baby was born alone. It was a terrible experience; I felt very much alone and it was nothing like what one dreams about for the birth of one's child. It will be some time before I have another child when I hope that conditions are better. I want to be treated with more dignity'.

The co-ordinator of the survey was Doctor Anna Volochko. She can be contacted at the Instituto de Saude, Rua Santo Antonio 590, 2 Andar, 01314-000 Sao Paulo, Brazil. Phone / fax +55 11 606 7328.

SOCIAL ISSUES

- National housing protest in Brasilia.

Almost 5 thousand protesters from most of the Brazilian states were present in the federal capital, Brasilia, on June 10 and 11 to protest the housing policy of the government. The protest was also joined by organizations protesting other social policies of the government such as health, education and employment.

From the government view-point the order of the day seems to have been not to receive the protesters. They tried in vain to meet with various ministers and with President Fernando Henrique Cardoso. Approximately 1300 unarmed military police accompanied the protest while the army guarded ministerial buildings and the police shock squadron was on call to combat any serious disturbances. The protest was carried out in a peaceful manner.

The protesters claimed that the housing deficiency in Brazil is approximately 600 thousand units at the moment. The executive coordinator of the Union for Housing Grassroots Movements, Evaniza Rodrigues, criticized the lack of government funds for housing. 'We want the National Congress to vote our project which would create a housing fund as well as a National Housing Council' she commented. The setting up of such a fund would enable grants to be received for housing from such financial institutions as the World Bank and the Inter-American Development Bank.

- State of Alagoas: champion in illiteracy.

The educational system in the State of Alagoas is near a state of total collapse. According to a report in the 'Folha de Sao Paulo' on June 08, school attendance has dropped by 50%. The State owes eight months' salaries to the 12743 public school teachers. The non payment of salaries means the frequent canceling of classes. This in turn leads to the students losing interest in school. A decade ago the State had 350 thousand in public schools. 172 thousand signed on for class in public schools during the current school year. A quite common feature in the state are fund raising events where parents of school-going children are collecting money to pay private teachers; in many cases such classes are held in the empty public schools.

The Brazilian Constitution demands that each state spend 25% of its income on education. In the case of Alagoas this would amount to slightly more than US $14 million per month. During 1995 the State of Alagoas spent only 16.48% on education. In 1991 figures of the Brazilian Institute of Geography and Statistics showed that 45.5% of the population of the state over 15 years was illiterate. Last year the Regional Electoral Tribunal re-registered voters in the state and discovered that 79.9% were only functionally literate i.e. incapable of reading and interpreting a simple text.

INDIGENOUS ISSUES

- Weekly Newsletter of the Indigenous Missionary Council (CIMI).

Newsletter n. 264

MESA MOUNTAIN RANGE: AGGRESSION AGAINST INDIANS AND THE

ENVIRONMENT

The denunciations from the federal public prosecution service, Cimi, the Pro-Indian Commission of Sao Paulo and Asflora, an environmentalist entity, of the serious threat against the Ava-Canoeiro Indians and the environment posed by the reservoir of the Mesa Mountain Range Power Plant in the state of Goias were once again confirmed. The building of the plant was widely publicized by the government, economic and political groups, and the media. Denunciations of irregularities in relation to the environment and the Ava-Canoeiro people were not even considered by the President of the Republic and his advisors, who pressured the National Congress to vote in favor of closing the floodgates of the reservoir on an urgent basis.

The area where the Indians live is being invaded by hordes of miners. They occupied 42 km along the Tocantins River, which divides the indigenous area in two halves and became dry after the floodgates were closed. Illegal mining activities were being carried out in the region even before the closing of the floodgates, but now the number of miners increased to an estimated 10-15 thousand.

According to anthropologist Valter Coutinho, from the National Indian Foundation (Funai), the official Indianist agency, the institution intends to buy an area in the region to add it to the traditional indigenous territory, so as to make up for the loss of 3,100 hectares that are being flooded. In Cimi's opinion, the federal government has been omissive of its responsibilities because it has not demarcated the land in question so far and has not taken any measures to make up for the loss of 10% of the area after the closing of the floodgates, and also because it has been postponing actions to protect the indigenous population from the invasion of miners.

The total area being flooded covers 10% of the 38,000-hectare land of the Ava-Canoeiro. There is strong evidence that some members of the Ava-Canoeiro population are living in caves located in the area that is being flooded. One month ago, farmers said they saw Indians from this group in the area. Only six of these Indians have ever been contacted by Funai.

Since the dam began to be built, in 1981, Furnas, the company in charge of building it, has been accused of serious irregularities. Because it affects an indigenous people, the undertaking had to be authorized by the President of the Republic, but Funai was only informed about it in 1985. After the Federal Constitution of 1988 was promulgated, any utilization of water resources and energy-generating works in indigenous lands must be authorized by the National Congress also. However, such authorization was only referred to Congress after the dam was already built, in 1995, and even then due to pressures from the federal public prosecution service.

The riverine populations of the Tocantins river are also being adversely affected by the reservoir, as diseases such as rabies are being disseminated by bats and endemic diseases such as dengue, malaria and yellow fever have been registered among them. The rotting of the river's water after it stopped flowing is causing pollution and killing fish and all kinds of animals typically found the region. All this is happening because of the lack of preventive measures to deal with the environmental impact of the reservoir.

In October of last year, federal judge Marcelo Dolzany suspended the closing of the floodgates because of irregularities in the project. However, chief justice Leite Soares of the Supreme Regional Federal Court of the 1st Region of Brasilia accepted a request made by the state enterprise (Furnas) for the floodgates to be closed on the same day that the National Congress endorsed the decision to close them, on October 15. In that month, Furnas was sued by the office of the attorney general in the states of Goias and Tocantins, and may be prosecuted by the Brazilian Institute for Environment and have its license to operate, which is valid for one year, annulled by Femago (Environment Foundation of the State of Goias).

Brasilia, 12 June 1997

CHILDREN'S ISSUES

- Art helps to reduce break-outs from young offenders prison by 41%.

A project entitled 'Guri' of the Secretariat of Culture of the State of Sao Paulo has helped to diminish the break-outs from the young offenders prison in Tatuape, Sao Paulo city, by 41%. The project was initiated in July of last year. Between January and April of 1996 21 break-out took place. During the same period of this year 7 break-outs were registered. In all 49 break-outs took place last year.

'Music as well as other activities (theater and professional training) help these boys. They become involved and so lose their internal anger. Music helps their self esteem' commented the director of the foundation responsible for such activities in the youth prison, Vanda Rosa Teixeira. She went on to comment in an article in the 'Folha de Sao Paulo' on June 06 that of every 100 young offenders 80 are really interested in learning to play a musical instrument. 250 youth are involved in the project; of this total 170 are involved in musical activities. Even five youth who have been released from the institution return once a week to play with the orchestra. Already 200 towns in the State of Sao Paulo have shown interest in adopting a similar project.

ECOLOGY

PLEASE SHARE WITH YOUR PARTNERS IN THE REGION

June 9, 1997

To: Concerned Organizations and Activists

From: Atossa Soltani, Amazon Watch

Kari Hamerschlag, Bank Information Center

RE:

As you may know, the IDB, the World Bank and IFC are financing about a third of the total $2 billion for the 3,200 km pipeline from Santa Cruz gas fields in Bolivia to markets in Sao Paulo and Porto Alegre in Brazil. The loan will go to a consortium of private and public companies including ENRON, Shell, Petrobras and others. The project is scheduled for IDB and World Bank and International Finance Corporation (IFC) Board Approval sometime in September or October. The loan was just approved late last week by the IDB loan committee, an internal management committee that must approve all loans before they go to the Board.

The initial EIAs were found to be inadequate because they did not consider secondary impacts associated with the pipeline nor did they provide sufficient detail about the compensation and the mitigation measures being planned. The Banks have commissioned follow up studies to develop more detailed mitigation measures and to carry out a strategic asssessment of the cumulative impacts of the project. As far as we know, there are no plans to consult with groups about the findings of these studies.

Between June 23 and July 3, the IDB and the World Bank are conducting their final Analysis Mission to the region. Following this mission, the staff appraisal report and loan agreement is prepared and presented to the Board of Directors for approval. In other words, now may be the last opportunity for NGOs and impacted communities to voice their concerns.

This information bulletin contains a summary of key issues, and names and contact numbers of people to write letters to. We suggest that groups concerned with the impacts of this project, write letters to IDB and World Bank officials asking for the postponement of the vote on this project until the results of the strategic environmental impact assessment and mitigation and compensation plans have been made available for public comment and the consultation process has been properly carried out.

Please let us know if you would like an email copy of the the latest environmental profile summary (Portuguese version only) or a hard copy version in English (the English version is not on the web). You may order the Portuguese version from the IDB web site (http:\\www.iadb.org/doc97//pro/bBRo218.htm). Please send Bank Information Center copies of any letters you send to the Banks and don't hesitate to contact us if you want to share concerns, ideas and strategy about this project or need more information. Our email is karih@igc.apc.org and fax is 202-466-8189. Atossa Soltani, Amazon Watch can be reached at asoltani@igc.apc.org or fax: 310-456-0388. Thanks.

WHO TO WRITE TO:

IDB

Ricardo Santiago, Director,Regionale Operaciones I

FAX: (202) 623-1291

COPIES (CC's) to:

Walter Arensberg, Division Chief, Environment Department

FAX: (202) 623- 1780

Antonio Carlos T. Holtz, Project Team Leader

FAX: (202) 623- 1428

WORLD BANK

Gobind T. Nankani, Director of Country Departament I

FAX: (202) 522- 3130

Copies (CC's) to :

Constance Bernard, Director of Natural Resources, Environment and Rural

Povery Operations, Country Departament I

FAX: (202) 522- 3132

Nelson de Franco, Gerente del Proyecto

FAX: (202) 676- 0377

Following is contact information of the companies responsible for the EIA and consultations:

Carlos Mendez

Dames & Moore

Cochabamba, Bolivia

tel: 591- 42- 860- 40

591- 42- 860- 41

FAX: 591- 42- 860- 42

Aluiso Teles Filho

Departamento do Meio Ambiente

Petrobras

Brazil

tel: 55- 21- 566- 54- 52

FAX: 55- 21- 566- 57- 23

PIPELINE IMPACTS AND KEY ISSUES

1. PIPELINE WILL SUBSTANTIALLY INCREASE OIL AND GAS PRODUCTION THROUGHOUT THE REGION INCLUDING IN THE AMAZON BASIN -

* The current EIA does not address the environmental impacts associated with increased gas production in the region. No where in the EIA is a discussion about long-term environmental pollution resulting from gas extraction and processing. The EIA narrowly focuses on the impacts associated with the construction and maintenance of the pipeline.

* The pipeline is being planned with the capacity to deliver 30 million cubic meters per day after seven years. The Santa Cruz Gas fields only have proven reserves of 18 million cubic meters per day. Where will the 12 million cubic meters per day of gas come from? Future imports from Peru and Argentina are anticipated by the project proponents. The current EIA does not address the long term impacts of the pipeline in increasing oil and gas production in the region. Such impacts could be significant especially if the Bolivia-Brazil pipeline is connected to new gas fields in the Peruvian Amazon. Given that Shell and Enron are now the main owners of Bolivia's entire natural gas pipeline system, the connection to Shell's Camisea gas fields in the Peruvian Amazon is a plausible option but one which will result in boosting oil and gas development in the fragile tropical rainforest of the Southern Peruvian Amazon.

* Only the environmental benefits of this gas project are being emphasized. Although gas consumption may be cleaner than other fuels, the environmental impacts associated with gas production are very similar to that from oil production. These impacts should be discussed and addressed especially since they impact the Amazon rainforest.

2. PIPELINE CONSTRUCTION WILL IMPACT THE PANTANAL, THE CHACO, AND ATLANTIC RAINFOREST

ON BOLIVIAN SIDE

The gas pipeline will cross 570 km in Bolivian territory starting with a natural gas Plant of Rio Grande, 40 km from Santa Cruz de la Sierra and runs to Corumba Brazil. During the construction phase, a 30 meter wide (90 feet) path will be opened up. Following construction, the right of way will be 17 meters wide (51 feet) and will be buried in a one meter (3 feet) deep trench. In addition, 508 km of existing roads will be upgraded in the project area (including access roads along the perimeter of Gran Chaco National Park and inside the Santa Cruz La Vieja Park).

On the Bolivian side, the gas pipeline will impact:

1. Gran Chaco Park - The largest tract of subtropical dry forest in the Americas with one of the highest mammalian species diversities on the continent (3.4 million hectare protected area of great biological diversity with presence of indigenous populations). The pipeline will follow the northern boundary of the Park for 75-150 kilometers. Risks include increased colonization of the area due to establishment of access roads, increased hunting pressure within the park.

2. the Izozog swamps - are periodically flooded. This area is occupied by the Zozeno/Guarani indigenous community (some 22 communities)

3. Chiquitos and the Utoquis swamps - are area with palm trees, aquatic vegetation and not very deep soil which is for the most part is intact. These areas have been recommended by some Bolivian environmental groups for protection status.

4. Historical National Park of Santa Cruz la Vieja Park will be impacted by road improvement work and increased traffic in the area.

5. Indigenous Areas: Three indigenous groups identified including the Ayereo, the Chiquitano, and the Izozeno/Guarani. The project proponents are in negotiation with the Izozeno Guarani indigenous groups represented by Capitania del Alto y Bajo Izozog (CABI) over a compensation and mitigation package (for example creation of a fund to manage and protect the Gran Chaco National Park). Over 8000 indigenous people live in over 22 communities. CABI also is responsible for management of the Gran Chaco National Park. The final package is not public until after the Final Analysis Mission to the region (July 1 or 2).

ON THE BRAZILIAN SIDE

The length of the pipeline on the Brazilian side will be 2,315 km starting in Corumba and passing through Campinas (SP), Curitiba (PR), Florianopolis (SC), and Porto Alegre (RS). During the construction phase, a 20 meter (60 feet) wide area will be severely impacted along the route of the pipeline. The study claims that 85% of the area crossed by the pipeline has been previously impacted by human activity, 15% has not and 7% may not readily regenerate after the construction phase. This translates to 345 km strip of pristine areas to be impacted of which 1/2 will be permanently destroyed. Areas with greatest impact include:

1. The pipeline will cross 70 km of the Pantanal in Mato Grosso do Sul, the largest wetlands in the world. The selected route has been changed to coincide with BR-262 thereby reducing its impacts. Although the project's area of influence include the Pantanal Arenoso Biological Reserve and the Pantanal Matogrossense Environmental Protection Area.

2. The pipeline will cross 70-100 km of Mata Atlantica Forest Reserve in the State of Santa Catarina (to be approved by IBAMA).

3. The Aparrados of the Serra, a legally protected area on the border of Santa Catarina and Rio Grande do Sul States (steep slopes, high rainfall with high erosion potential).

4. Various archeological sites especially in the State of Parana.

5. In the State of Sao Paulo, the path will cross the Protected Areas of Ibitinga and Corumbatati (important transit of migratory birds), and a section of the National Forest of Ipanema and remnants of the Atlantic forest in Serra de Paranapiacaba.

Indigenous Areas:

There are four indigenous communities in the project's area of influence in Brazil (not directly in the pipeline's right of way). Three communities are located in the State of Mato Grosso do Sul (Terenas Indigenous Area) with total population of 3,500 people. One community is located in Santa Catarina and belongs to the Guarani Nandeva group (this group has a semi-nomadic lifestyle and depends on fishing, hunting and subsistence farming).

GENERAL NEGATIVE IMPACTS

* opening of access roads through which squatters, goldminers, and loggers will be able to enter and which can cause conflict in protected areas (especially in the Gran Chaco National Park).

* establishment of construction sites and housing for workers (800-1600 workers at a time) (generating sewerage and garbage);

* fragmentation of forest system by the pipeline's right of way, inhibiting the free movement of some species, opening of trails which bring in poachers and hunters of alligators, mammals and rare birds;

* destruction of breeding grounds, interruption of the movement of animals through the gas pipeline's right of way;

* changes in the daily life of residents of small towns due to the influx of workers and the potential for increase contagious diseases brought by workers;

* eventual destruction of archeological sites;

* risk of accidents due to fire and explosion (especially in the region of Campinas, SP);

* increase in traffic volume during the construction phase requiring improvement of the feeder road systems;

* silting of running streams which will be crossed by the pipeline;

* alteration of water course supplying the swap and wetland areas, through blocking drainage, raised ground water level, etc;

* excessive use of quality surface and groundwaters to supply workers and to perform tests on the pipeline;

* acceleration of erosion process in fragile zones, slope instability, mudslides, sinking of soil in calcareous cave areas;

* permanent elimination of 700 hectares of silviculture and forests remnants;

* elimination of 230 hectares of forests and savannas in the Pantanal and 130 hectares of other forests and 160 hectares of grassy-woody savannas;

* alteration to several protected areas and the Atlantic Forest.

Kari Hamerschlag

Bank Information Center

Latin American and Caribbean Program

2025 I Street #400 NW

Washinton DC 20006

Tel: 202-776-0624

fax: 202-466-8189

email:karih@igc.apc.org

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South and Meso American Indian Rights Center (SAIIC)

P.O. Box 28703

Oakland CA, 94604

Phone: (510)834-4263 Fax: (510)834-4264

Email: saiic@igc.apc.org

Office: 1714 Franklin Street, 3rd Floor, Oakland

Home Page: http://www.maxwell.syr.edu/nativeweb/abyayala/orgs/saiic

For more information about SAIIC, send an empty email message to:

saiic-info@igc.apc.org

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