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UNCLAS SECTION 01 OF 14 BRASILIA 000339 
 
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: MZWEEDE 
INTERIOR FOR DIR INT AFFAIRS: K WASHBURN 
INTERIOR FOR FWS: TOM RILEY 
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 70 
 
¶1.  The following is number 70 in a series of newsletters, published 
by the Brasilia Regional Environmental Hub, covering environment, 
science and technology, and healh 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. 
 
¶2. Table of Contents 
 
Agriculture 
--First Case of H5N1 Bird Flu in Africa 
--Brazil Will be Top Soybean Exporter by 2007 
--U.S. Wants More GOB Action Against Foot And Mouth Disease 
 
Health 
--US Embassy Lima Discusses Avian Influenza 
--Brazil Losing Ground in the Pharmaceutical Sector 
--Brazil Initiates Avian Flu Education Campaign 
--Amazon Studies Link Malaria to Deforestation 
--British Medical Support for Brazil's Oil Industry 
 
Water Issues 
--South America Celebrate Wetland's Day 
--Argentinean NGO Launches Publication on South American Wetlands 
 
Forests 
--Argentina: Enormous Fire Destroys 250 hectares of Forest 
--Brazilian Congress Approves Forest Concession Law 
--New Tropical Timber Agreement 
 
Wildlife 
--French Citizen Suspected of Illegal Coral Trafficking 
--Brazil: Sights Set on Biodiversity 
--Colombia: Several Ducks Poisoned 
--Alien Invaders in Colombia!!! 
 
Fishing  and  Marine Conservation 
--Antarctic Krill Benefit Environment 
--Ecuadorian Soccer Star Weighs In To Save Sharks 
--Argentina: The Neglected Sea 
--Chile's Blue Whale Population Recovering, Scientists Say 
--Argentina: More Than 500 Patagonian Toothfish Marked For Research 
 
 
Protected Areas 
--Colombia: UN Oversees Manual Eradication of Coca Crops 
 
Science  and  Technology 
--Scientists Criticize Brazil's Space Project 
--Brazil: An Astronaut Opens a Door to Space 
 
Industrialization  and  Polution 
 
BRASILIA 00000339  002 OF 014 
 
 
--Pulp Mills Dispute Will Be "Taken to Mercosur" 
 
Methane to Markets 
--Landfill in Manaus Will Generate Energy and Income 
 
Energy 
--Peru: Camisea Gas Pipeline, Phase II 
--US Eyeing Brazil's Ethanol Market 
-- "Green Fuel" Car Launched in Mexican Market 
--Brazil Achieves Self-Sufficient Oil Production -And Adopts 
Revolutionary Flex-Fuel Technology 
--South American Mega-Pipeline Might be Pipe Dream 
 
General 
--Argentina: Heavy Rain Causes Floods 
--Ecuador: Huaorani Confront Logging and Petroleum Issues 
--Argentina: Pulp Mills Aren't Only Environmental Concern 
--Paraguay's Natural Beauty on USG Internet Image Bank 
 
----------- 
Agriculture 
----------- 
 
¶3. First Case of H5N1 Bird Flu in Africa 
 
FEB. 09, 2006 - A deadly strain of bird flu has been discovered on a 
poultry farm in northern Nigeria, marking the virus's first known 
appearance in Africa.   A "highly pathogenic" form of the H5N1 virus 
has killed 40,000 birds in the rural Nigerian state of Kaduna, 
according to the World Organization for Animal Health, a United 
Nations agency. No humans have been infected, the agency said.  The 
announcement confirmed predictions that the virus, which has turned 
up in the Middle East and Eastern Europe in recent months, 
eventually would land in Africa, the region that experts fear might 
be the most vulnerable to a bird flu pandemic. 
 
Source - MercoPress 
 
¶4. Brazil Will be Top Soybean Exporter by 2007 
 
FEB. 03, 2006 - Brazil is projected to surpass the U.S. and become 
the number one soybean exporter by 2007 according to estimates by 
the [Brazilian] Ministry of Agriculture. The 2006/2007 soybean crop 
exports are expected to be about 23 million tons, versus 22.5 
million tons from the U.S. 
 
Source - Public Affairs US Embassy Brasilia.  Original source: Folha 
de Sao Paulo 
 
¶5. U.S. Wants More GOB Action Against Foot And Mouth Disease 
 
JAN. 26, 2006 - Federal capital newspaper Correio reports that U.S. 
officials and business leaders are in Brazil to examine the actions 
taken against recent outbreaks of foot and mouth disease in 
Brazilian cattle. According to the report, the U.S. delegation 
 
BRASILIA 00000339  003 OF 014 
 
 
offered assistance for Brazil to meet its obligations under the 
Hemispheric Plan to Eradicate Foot and Mouth Disease by 2010. 
 
Source - Public Affairs US Embassy Brasilia. 
 
------ 
Health 
------ 
 
¶6. US Embassy Lima Discusses Avian Influenza 
 
FEB. 13, 2006 - The [US] Ambassador [to Peru] held a well-attended 
Town Hall meeting on January 25 to discuss Avian/Pandemic Influenza 
and general emergency preparedness.  The Regional Medical Officer, 
Security Office Disaster planner and the Community Liaison officer 
briefed virtually the entire mission Amcits and FSNs at work that 
day.  Experts from the Mission's Avian Influenza Working Group were 
on hand to answer questions.  Although the presentations were in 
English, the Peace Corps regional physician and USAID health experts 
answered some of the questions in Spanish; separate town hall 
meetings wholly in Spanish have been scheduled. 
 
Source - US Embassy Lima 
 
¶7. Brazil Losing Ground in the Pharmaceutical Sector 
 
FEB. 02, 2006 - A widely-circulated Brazilian daily (O Estado de Sao 
Paulo) reports that Brazil has been unable to overcome an only 
secondary role in producing pharmaceutical products because, 
according to that multinational industrial sector, the nation does 
not have a patent protection policy, nor is it an attractive 
environment for investment.  On the other hand, another daily (O 
Valor) says that Brazil may be chosen by Roche pharmaceutical 
laboratory to produce Tamiflu, currently the most effective medicine 
against the H5N1 virus, responsible for avian influenza. 
 
Source - Public Affairs US Embassy Brasilia. 
 
¶8. Brazil Initiates Avian Flu Education Campaign 
 
FEB. 02, 2006 - Brazilian health officials began distributing 
pamphlets in international flights leaving from Rio de Janeiro's 
international airport with information on preventing exposure to the 
avian flu, such as avoiding contact with birds and consumption of 
undercooked poultry and eggs. 
 
Source - Public Affairs US Embassy Brasilia.  Original source: 
Estadao. 
 
¶9. Amazon Studies Link Malaria to Deforestation 
 
JAN. 30, 2006 - Two studies in the Amazon rainforest have shown a 
link between deforestation and an increased risk of malaria. The 
findings have implications for health management and environmental 
policy in the region.  According to research published 30 January, 
 
BRASILIA 00000339  004 OF 014 
 
 
the clearing of trees in Brazil's Amazon region to create new 
settlements increases the short-term risk of malaria by creating 
areas of standing water in which mosquitoes can lay their eggs. The 
study comes less than a month after one in neighboring Peru showed 
that malaria epidemics in the Amazon were linked to deforestation. 
The findings appeared in January's issue of the American Journal of 
Tropical Medicine and Hygiene. 
 
Source - SciDev 
 
¶10. British Medical Support for Brazil's Oil Industry 
 
JAN. 31, 2006 - British Trade Minister Ian Pearson launched the 
Berkeley Training Center in Macae, 182 kilometers away from Rio do 
Janeiro which will be the first Medical training center aimed at the 
oil and gas industry in Latin America.  The center is a joint 
project involving the City of Macae, Berkeley Training Center and a 
consortium of UK companies led by Lancashire Ambulance service.  The 
training unit will be located at Macae's brand new state of the art 
city hospital with its emergency and telemedicine center, meeting 
the needs of the local population and the 35,000 people working in 
the offshore industry.   Macae, in Rio de Janeiro state is known as 
Brazil's oil capital because of its proximity to the offshore fields 
that account for 80 percent of the country's oil production and 45 
percent of its natural gas. 
 
Source - MercoPress 
 
------------ 
Water Issues 
------------ 
 
¶11. South America Celebrate Wetland's Day 
 
FEB. 02, 2006 -February 2nd, World Wetlands Day, is a day (or in 
some cases, a week) when governments at all levels, nongovernmental 
organizations, wetland site managers, and citizens carry out 
celebrations to raise the public's awareness about the values of 
wetlands in general and about the Convention on Wetlands in 
particular.  In Chile, the Coorporacisn de Ambientes Acuticos de 
Chile (CAACH) launched two publications: a manual for the rational 
use of wetlands "Los Humedales No Pueden Esperar" ("The Wetlands 
Cannot Wait"); and a practical guide for schools "Manos al Humedal" 
("Joining Hands with Wetlands").  For those interested, The Wetlands 
Forum is an unmoderated mailing list maintained as a service to the 
public by the Ramsar Convention Secretariat in Gland, Switzerland. 
To join, contact the list manager (ramsar@ramsar.org). 
 
Source - Wetlands Forum 
 
¶12. Argentinean NGO Launches Publication on South American Wetlands 
 
JAN. 31, 2006 - NGO Fundacion Proteger has launched a publication 
(in Spanish) "South American Wetlands- Moving towards Sustainable 
Management."  The publication includes research in ten South 
 
BRASILIA 00000339  005 OF 014 
 
 
American countries and aims to help increase knowledge on South 
American wetlands, and the communities and resources included in 
these precious ecosystems. 
 
Source - IUCN 
 
------- 
Forests 
------- 
 
¶13. Argentina: Enormous Fire Destroys 250 hectares of Forest 
 
FEB. 13, 2006 - Flames consumed 250 hectares of forest and 
vegetation in El Boson, 150 kilometers south of Brioche. It is 
believed that the fire, considered the largest of the season, was 
man-made. Authorities, however, are uncertain as to whether it was 
intentional. It spread to Costa del Thermo while one-hundred twenty 
firefighters worked to reduce the fire. Two planes released water on 
the more crucial areas, while one plane continuously surveyed the 
fire's position. Using machetes, bulldozers, and spades, the workers 
cleared vegetation to prevent further proliferation. The high 
temperatures (300 Celsius), low humidity (15 percent), and strong 
winds from the northwest made it difficult to control the fire. The 
flammability of pine trees, prominent throughout the region, 
exacerbated the problem. A large amount of pine trees were destroyed 
causing a huge economic and ecological losses as well as a depletion 
of the landscape.  The fire destroyed 10 hectares of cypress trees, 
as well as, beech trees, black pine, and other vegetation including 
rosemary and broom sage. 
 
Source - Clarin 
 
¶14. Brazilian Congress Approves Forest Concession Law 
 
FEB. 02, 2006 - Brazilian Congress has approved a law for Public 
Forest Management, which must now be sanctioned by president Luiz 
Inacio Lula da Silva.  Against the will of the current government, 
the Chamber of Deputies was able to add three amendments to the law: 
1) Concessions of land larger than 2,500 hectares must be approved 
by Congress [according to the press report Lula will veto this]; 2) 
Opens the Brazilian Forest Service, which would originally be 
controlled by the Ministry of the Environment, to other seven 
Ministries, including the Min. of Agriculture [to the discontent of 
environmentalists]; and 3) any concession in transborder areas must 
be approved by the National Defense Council.  According to the press 
report, the Ministry of Environment hopes to commence concession 
along the BR-163 highway, in Para State, by the end of this year. 
 
Source - Folha de Sao Paulo. Please refer to BRASILIA 000265 for 
more details. 
 
¶15. New Tropical Timber Agreement 
 
JAN. 27, 2006 - The text of a successor treaty to the 1994 
International Tropical Timber Agreement (ITTA) was adopted in Geneva 
 
BRASILIA 00000339  006 OF 014 
 
 
on 27 January following two weeks of intense negotiations. After 
knife-edge consultations and more than two years of discussions, the 
objectives of the new agreement emphasize the importance of 
sustainable forest management and predictable funding for the 
international timber trade.  The new text calls for strengthening 
the capacity of member States "to improve forest law 
enforcement...and address illegal logging and related trade in 
tropical timber." It also encourages member States "to support and 
develop tropical timber reforestation, as well as rehabilitation and 
restoration of degraded forest land, with due regard for the 
interests of local communities dependent on forest resources."  The 
Agreement also notes that "poverty alleviation" should be an 
objective of tropical timber harvesting and trade. 
 
Source - kindly shared by US Embassy Lima.  Original source 
 
-------- 
Wildlife 
-------- 
 
¶16. French Citizen Suspected of Illegal Coral Trafficking 
 
FEB. 8, 2006 - French citizen and airline pilot, Christof Lirin, is 
under investigation for the illegal trafficking and cultivation of 
coral, an internationally protected species. This is the first time 
that Chilean police have investigated illegal trade of this kind. 
Investigator Maria Isabel Saavedra of the Environmental Crime Squad 
(BIDEMA) suspects Lirin of cultivating and trafficking Small Polip 
Stoni (SPS) coral after they found the species, native to Europe, in 
Lirin's home in the Chilean capital. The coral has a market value of 
around USD6,000 in Chile.  If found guilty, the 42-year-old 
French-Chilean will be in breach of the 1974 Convention on 
International Trade in Endangered Species of Wild Flora and Fauna 
(CITES).  Meanwhile Lirin insists that the marine specimens are for 
decorative purposes only. 
 
Source - Santiago Times.  Original source: El Mercurio, La Tercera 
 
¶17. Brazil: Sights Set on Biodiversity 
 
JAN. 28, 2006 - Brazil's Ministry of Environment is distributing a 
guide to promote participation in the eighth conference of parties 
to the Convention on Biological Diversity, Mar. 20-31 in the 
southern city of Curitiba.  Brazil - which heads the Convention - is 
pushing for an international agreement on access to genetic 
resources and distribution of their benefits, which protects 
mega-diverse countries, ministry advisor Tony Gross explained to 
Tierramrica.  The meeting in Curitiba, which is expected to draw 
5,000 people from 187 countries, will see debate on international 
rules on biopiracy, a program to protect forests and a new 
initiative for oceanic islands, whose biodiversity is threatened by 
the rising sea levels of climate change, said Gross. 
 
Source - Tierramerica 
 
 
BRASILIA 00000339  007 OF 014 
 
 
¶18. Colombia: Several Ducks Poisoned 
 
JAN. 23, 2006 - Hundreds of Canadian ducks were poisoned after, 
according to local environmentalists, consuming rice intentionally 
contaminated with rat poison Monocofrox.  Local authorities have 
promised to investigate the water quality in the region and have 
advised locals to avoid consumption of duck meat.  Three people were 
arrested under criminal charges.  To avoid this from happening 
again, Colombia's Ministry of the Environment, Police authorities 
and local authorities plan on launching a campaign in the near 
future, according to the press report. 
 
Source - Vanguardia Liberal 
 
¶19. Alien Invaders in Colombia!!! 
 
JAN. 03, 2006 - A prized study on invasive species looks at the 
specific example of tilapias (fresh-water fish originally from 
Africa) in the Sinu and Magdalena Rivers, in Colombia.  The species 
was first introduced in the Magdalena River in 1977, when, following 
a drop in fish catches, local authorities decided to repopulate the 
river with tilapias.  According to the press report, the tilapia is 
considered an invasive species in 54 of the 96 countries it is found 
in.  This uneducated and irresponsible move is causing serious 
damages to, for example, the native bocachico (Prochilodus 
reticulatus) fish population, which was already threatened of 
extinction.  Decades ago, fishing stocks were as high as 45,000 tons 
per year - today that number does not reach 3,000 tons. 
 
Source - Vanguardia Liberal 
 
----------------------------- 
Fishing  and  Marine Conservation 
----------------------------- 
 
¶20. Antarctic Krill Benefit Environment 
 
FEB. 08, 2006 - Scientists from the British Antarctic Survey and the 
Scarborough Center of Coastal Studies at the University of Hull, 
discovered that rather than doing so once every 24 hours, Antarctic 
krill drive to deeper reaches of the ocean several times during the 
night. 
In the process they inject more carbon into the deep sea when they 
excrete their waste than had previously been understood.  By 
parachuting down they transport carbon, which sinks ultimately to 
the ocean floor -- an amount equivalent to the annual emissions of 
35 million cars -- and this makes these tiny animals much more 
important than we thought."  The study is published in the journal 
Current Biology. 
 
Source - MercoPress 
 
¶21. Ecuadorian Soccer Star Weighs In To Save Sharks 
 
JAN. 2006 - Ecuadorians took notice last October when Alex Aguinaga, 
 
BRASILIA 00000339  008 OF 014 
 
 
the country's most widely recognized soccer star and one of its most 
respected citizens-along with the coach and four other top players 
of the country's World Cup-bound national team-launched a petition 
drive aimed at pressing the government to curb the wholesale killing 
of sharks.  Sports figures here rarely lead environmental causes, 
but Aguinaga has become an enthusiastic shark-protection advocate 
since he watched a video showing how the animals are slaughtered by 
the thousands in Ecuador to feed the lucrative shark-fin trade. 
Ecuadorian shark fishing, most of which is believed to occur near 
the Galapagos Islands, should in theory be in sharp decline. An 
Ecuadorian executive decree issued in October 2004 prohibits all 
sale and export of shark fins, which are in strong demand thanks 
largely to the popularity in Asia of shark-fin soup.  But proof that 
a ban on paper does not ensure a prohibition in practice came soon 
after, when Ecuador's Central Bank reported that during October and 
November of 2004-when the ban was supposed to have been in 
force-Ecuador exported 12,500 pounds (5,670 kg) of shark fins. 
During the entirety of 2004, shark-fin exports totaled 156,246 
pounds (70,872 kg), according to the Central Bank. 
 
Source - EcoAmericas (please contact Larissa Stoner for complete 
article) 
 
¶22. Argentina: The Neglected Sea 
 
FEB. 02, 2006 - Although Argentina has 4,000 km of coastline, no 
ocean reserves have been set up to protect the waters in its 
exclusive economic zone.  With this in mind, the Wildlife Foundation 
(FVS), a local environmental organization, launched a nationwide 
radio broadcasting campaign in an attempt to raise awareness about 
the importance of looking after the sea.  Argentina's neighboring 
countries seem to be further ahead: Brazil has two protected ocean 
areas and another in the process of being created. Chile also has a 
marine reserve and a second in the works.  In fact, Chile's 
protected area is cited as an example in one of the publicity spots 
put out by the Foundation as part of its campaign. 
 
Source - Inter Press Service (contact Larissa Stoner for full 
article) 
 
¶23. Chile's Blue Whale Population Recovering, Scientists Say 
 
FEB. 02, 2006 - Chile's blue whale population is recuperating and 
growing rapidly, according to researchers studying the population 
off the coasts of the country's southern islands. While blue whales 
have always occupied waters along Chile's coast, worldwide whaling 
operations severely diminished their numbers during the 1900s, 
leaving Chile with very few of the giant mammals swimming in coastal 
waters.  It was only in 2003 that marine scientists discovered a 
blue whale nursery in Chile's ocean waters, leading to cautious 
optimism among the scientists that the population may be able to 
recuperate.  These whales remain in danger, however. The Canadian 
company Noranda plans to build a massive aluminum smelter in Aysn, 
near the Gulf of Corcovado, a project that has drawn the ire of 
environmentalists.  The proposed project would carve a smelter, six 
 
BRASILIA 00000339  009 OF 014 
 
 
dams, three hydro-electric installations, access roads and power 
lines into the heart of the region.  The smelter would release 1.5 
million tons of solid and gaseous waste each year into waterways and 
forests. All of the smelter's raw materials would have to be brought 
in on ships, dramatically increasing the traffic through the 
pristine coastal habitat of the blue whales. Environmentalists are 
currently promoting and proposing the establishment of a Marine and 
Coastal Protected Area in the region. 
 
Source - Santiago Times (no link) 
 
¶24. Argentina: More Than 500 Patagonian Toothfish Marked For 
Research 
 
JAN. 30, 2006 - Since 2004, the [Argentine]National Institute for 
Fisheries Research and Development (INIDEP) has been carrying on a 
capture-mark-recapture program for Patagonian toothfish 
(Dissostichus eleginoides), aimed at providing relevant information 
about this resource management in the South-western Atlantic ocean. 
The study is jointly financed by INIDEP, the Federal Fisheries 
Council (CFP), and companies participating in the Fishery Follow-up 
Advisory Commission (CASPMEN).  The program is aimed at studying 
specific characteristics of the Patagonian toothfish reproduction 
cycle, growth patterns, and feeding habits, to help fishery experts 
and authorities in the adequate management of the valuable species. 
 
 
Source - MercoPress 
 
--------------- 
Protected Areas 
--------------- 
¶25. Colombia: UN Oversees Manual Eradication of Coca Crops 
 
JAN. 28, 2006 - The United Nations will send eleven people to 
observe the manual eradication of 4,600 hectares of coca fields in 
La Macarena nature reserve, located in the central Colombian 
department of Meta.   The objective "is to quantify the areas" where 
this illegal drug crop is eradicated, "and report on the development 
of the operation," explained Sandro Calvani, representative in 
Colombia of the UN Office on Drugs and Crime. The government began 
this effort on Jan. 17 -- to last three months -- in reaction to 
environmentalists' complaints about aerial spraying of glyphosate 
herbicide in the nature parks. 
 
Source - Tierramerica 
 
-------------------- 
Science  and  Technology 
-------------------- 
 
¶26. Scientists Criticize Brazil's Space Project 
 
JAN. 31, 2006 - The new director of the National Institute for Space 
Research (INPE), Gilberto Camara, criticized the Brazilian space 
 
BRASILIA 00000339  010 OF 014 
 
 
program, especially the preparations for the flight of astronaut 
Marcos Pontes to the International Space Station aboard a Russian 
spacecraft.  Camara spoke before members of the Brazilian Society 
for Advancement of Science (SBPC), and presented his plans as INPE's 
chief.  He underscored that Brazil needs a [smaller] space program 
that reflects the size of the country's economy and is focused on 
achieving concrete results.  According to the report, the SBPC 
opposes the high cost of sending an astronaut to space.  See more 
below. 
 
Source - Public Affairs US Embassy Brasilia.  Original source: 
Estadao. 
 
¶27. Brazil: An Astronaut Opens a Door to Space 
 
JAN. 28, 2006 - Children at 39 municipal schools in Brazil will 
conduct science experiments in space, thanks to their country's 
first astronaut, Marcos Pontes.  In March, when the first Brazilian 
astronaut, Marcos Cesar Pontes, leaves for outer space, he will be 
opening the doors to the heavens not only for some renowned 
scientists in his country, but also for dozens of children at 39 
municipal schools.  Pontes, a lieutenant colonel in the air force, 
is scheduled to leave Earth on Mar. 30 aboard the Russian spaceship 
Soyuz, blasting off from Kazakhstan and heading for the 
International Space Station. There, over eight days, he will conduct 
various experiments, including two on the effects of microgravity, 
with the long-distance participation of schoolchildren from Jos dos 
Campos, located 100 km from Sao Paulo. This year, Brazil will 
earmark some 200 million dollars for its space program, double the 
budget it had in the 1980s. 
 
Source - Tierramerica 
 
----------------------------- 
Industrialization  and  Pollution 
----------------------------- 
 
¶28. Pulp Mills Dispute Will Be "Taken to Mercosur" 
 
FEB. 01, 2006 - The controversy over two pulp mills being built in 
the Uruguayan side of the river that acts as a natural border with 
Argentina, and environmentalist groups' actions blocking routes and 
bridges leading to Uruguay to protest the project, will be taken to 
Mercosur for consideration.  Uruguayan Foreign Affairs minister 
Reinaldo Gargano confirmed on Wednesday his government's intention 
which had been suggested the previous week by Housing and 
Environment Deputy Minister Jaime Igorra.   "With this decision we 
want to emphasize our commitment with the region and with Mercosur", 
[stated] minister Gargano thus jumping into the controversy as to 
whether the dispute should be taken to regional or international 
tribunals, following Argentina's announcement that it will take 
Uruguay to The Hague, if the pulp mills go ahead.  Uruguay's 
government has given its full support to the foreign-funded plants 
while Argentina and environmentalists oppose the project, citing 
recent problems in Spain and Chile as a reason to halt the 
 
BRASILIA 00000339  011 OF 014 
 
 
construction. 
 
Source - MercoPress 
 
------------------ 
Methane to Markets 
------------------ 
 
¶29. Landfill in Manaus Will Generate Energy and Income 
 
JAN. 29, 2006 - Starting September of this year, Manaus will be the 
first city of the state of Amazonas to have methane gas burner in 
its landfill.  The methane fuel generated by landfills can be used 
for heating or generating electricity - in the case of the Manaus 
landfill, 18 megawatts per hour. The project is a partnership 
between Canadian Conestoga Rovers  and Associates (CRA) and Tumpex 
(the landfill administrator).  CRA is investing a total of USD47 
million and hopes to profit USD5million per year, 10 percent of 
which will be reverted to the city of Manaus.  The project hopes to 
contribute to reducing greenhouse gas emissions for ten years. 
 
Source - Ambiente Brasil 
 
------ 
Energy 
------ 
 
¶30. Peru: Camisea Gas Pipeline, Phase II 
 
FEB. 13, 2006 - The [US] Ambassador [to Peru] attended Hunt Oil 
Company's groundbreaking ceremony for construction of its Liquefied 
Natural Gas (LNG) plant, Camisea Phase II on January 12.  Attending 
also were Korean financing firm SK and Spain's Repsol, which has 
contracted to buy the LNG.  Construction will add 5000 direct jobs 
and up to 30,000 more indirect jobs to Peru's economy.  Peru LNG 
(principal investor Hunt Oil) is investing USD3.3 billion, with 
plans to begin exporting LNG in 2009.  Mexico is not yet confirmed 
as the destination for deliquified gas that would be piped to the 
U.S., and LNG contract buyer Repsol has announced that it will 
consider export to Chile.  There are no significant environmental 
problems, and a new pipeline will avoid some of the gas flow 
interruptions experienced by the existing Camisea pipeline.  The 
groundbreaking reignited public debate whether Peru's natural gas 
reserves are sufficient to cover internal needs and export 
commitments; the energy minister meanwhile detailed the timeline for 
drilling in Lot 56, next to the Camisea fields. 
 
Source - US Embassy Lima 
 
¶31. US Eyeing Brazil's Ethanol Market 
 
FEB. 02, 2006 - According to the press report, the US is eyeing 
Brazil's ethanol market.  The report mentions Bush's praise on 
Brazil's flex fuel technology and states that Google executives 
recently visited one of the country's main ethanol plants, Consan, 
 
BRASILIA 00000339  012 OF 014 
 
 
in Sao Paulo State.  No details were provided on closing actual 
deals.  Pacific Ethanol, whose main stakeholder is Bill Gates, has 
also commented that Brazil's ethanol market is in the company's 
"future plans."  To them, Brazil has a low production cost and is 
one of the world's most competitive markets. 
 
Source - O Globo 
 
¶32. "Green Fuel" Car Launched in Mexican Market 
 
JAN. 26, 2006 - A Honda hybrid sedan was launched Friday in the 
Mexican market, which became the first Latin American country to 
offer consumers a car that runs on both gasoline and electricity. 
The Civic Hybrids, which are manufactured in Japan, have a gasoline 
engine that is smaller and more efficient than that found in 
conventional vehicles and an electric engine, which provides 
additional horsepower when necessary. The going price for the Hybrid 
in Mexico is 26,415 US dollars. Honda Mexico's head of product 
planning Ricardo Chan, said he was confident the company would meet 
the sales goal of 450 vehicles this year. 
 
Source - MercoPress 
 
¶33. Brazil Achieves Self-Sufficient Oil Production And Adopts 
Revolutionary Flex-Fuel Technology 
 
JAN. 31, 2006 - Brazil's state-controlled oil company Petrobras 
achieves self-sufficiency just as a new technology that allows car 
engines to run on both gasoline and sugar cane ethanol becomes a 
national success: last December, 73 percent of all cars sold in 
Brazil already had the new "flex-fuel" technology. The press report 
explains that investment in ethanol production began as a heavily 
subsidized government initiative, but that recent successes are the 
result of market-driven economics and technological innovation. 
Accompanying feature highlights the many bureaucratic difficulties 
faced by Brazilian technological innovators. 
 
Source - Pulic Affairs US Embassy Brasilia.  Original source: Veja 
magazine. 
 
¶34. South American Mega-Pipeline Might be Pipe Dream 
 
JAN. 27, 2006 - The Pharonic trans-Amazon natural gas conduit whose 
concept was approved amid much fanfare by the leaders of Venezuela, 
Brazil and Argentina this month makes little economic or technical 
sense, could cause great ecological damage and may end up being a 
figment of overly ambitious political imaginations, say analysts. 
The three governments must make a decision in the next few months on 
the viability of the plan, which calls for a pipeline some 8,000 
kilometers (nearly 5,000 miles) long with a capacity to carry 100 
million cubic meters (3.5 billion cubic feet) of natural gas per 
day, mostly from north to south. Venezuela's energy minister said 
construction of the conduit could require an investment of as much 
as USD20 billion. 
 
 
BRASILIA 00000339  013 OF 014 
 
 
Source - MercoPress 
 
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General 
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¶35. Argentina: Heavy Rain Causes Floods 
 
FEB. 13, 2006 - Heavy rains, damaging soy crops, moved from the 
north to the center of the Santa Fe. The western region of Santa Fe 
received 100 millimeters of rain while San Javier received less than 
20 millimeters. The heavy rain in Santa Fe led to the closure of 
streets and neighborhoods while some citizens were evacuated.  The 
city of Cordoba and other cities in the south also suffered from the 
heavy rain and wind. The neighborhoods in the outskirts of the 
Cordoba capital were greatly affected. Flooding from the Rio Cuarto 
caused the closure of Route 36, between Elena and Berrotarian. 
 
Source - Clarin 
 
¶36. Ecuador: Huaorani Confront Logging and Petroleum Issues 
 
FEB. 02, 2006 - With an agenda focusing on illegal logging, their 
relationship with the petroleum industry, and institutional 
corruption, the Huaorani indigenous group held a general assembly in 
the jungle community of Nemonpari.  While laudable in its effort to 
tackle these pressing issues, the new Huaorani leadership holds 
unrealistic expectations regarding its ability to shape government 
policy, influence the private sector, and manage the Huaorani 
population.  USAID programs support the territorial integrity of the 
Huaorani lands and the institutional stability of the Huaorani 
leadership.  However, political weakness -- in both Ecuador's 
indigenous groups and the Ministry of Environment -- undermines 
efforts to protect the fragile, mega-diverse ecosystem in the 
rainforests of the Ecuadorian Amazon. 
 
Source -QUITO 000259 
 
¶37. Argentina: Pulp Mills Aren't Only Environmental Concern 
 
JAN. 30, 2006 - According to the press report, Argentina has several 
"environmental bombs" spread throughout the country - many of even 
more concern than the pulp-mill controversy.  According to NGOs 
Greenpeace and Vida Silvestre (FVSA), agricultural expansion - the 
"soy boom" - is seriously affecting the countries ecosystems.  In 
Northwestern Argentina, for example, indiscriminate deforestation is 
occurring in places that were already suffering other environmental 
damages.  According to the organizations, new [agricultural] 
technology has allowed farmers to plant in otherwise infertile land 
such as Santiago del Estero, Chaco, Salta, and Jujuy.  Greenpeace 
also highlighted more serious cases of industrial pollution in 
Misiones and in Capitan Bermudez. 
 
Source - La Gaceta 
 
 
BRASILIA 00000339  014 OF 014 
 
 
¶38. Paraguay's Natural Beauty on USG Internet Image Bank 
 
JAN. 05, 2006 - Paraguay is the first of the South American 
countries to have images of its natural beauty on the National 
Biological Information Infrastructure Webpage (www.nbii.gov), which 
offers images related to nature and the environment. The library's 
collections include photographs of plant and animal species, scenic 
landscapes, wildlife management, and biological fieldwork. Submitted 
by the NBII and numerous partners, most images are freely available 
for general, educational, and scientific use.  Paraguay NGO Guyra 
Paraguay is responsible for screening the images. 
 
Source - IUCN 
 
CHICOLA