VZCZCXRO6921
PP RUEHRG
DE RUEHBR #0492 0721455
ZNR UUUUU ZZH
P 131455Z MAR 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC PRIORITY 4780
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 1688
RUEHSO/AMCONSUL SAO PAULO 6543
RUEHRG/AMCONSUL RECIFE 4458

UNCLAS BRASILIA 000492 
 
SIPDIS 
 
SIPDIS 
 
PLEASE PASS TO OES/ETC SCASWELL 
STATE TO USFS LMAYHEW 
STATE TO USAID LAC/RSD EGAT DHESS 
 
E.O. 12958: N/A 
TAGS: SENV TBIO KSCA BR
SUBJECT: BRAZIL'S FOREST CONCESSIONS BILL SIGNED INTO LAW, 
CONSIDERED A VICTORY FOR ENVIRONMENT MINISTER SILVA 
 
REFS: A) 05 BRASILIA 2426, B) 05 BRASILIA 0265 
 
¶1. Summary: After nearly 3 years of planning and political 
maneuvering, Brazil signed into law its Public Forest Management 
Bill (PL). Brazilian President Lula has publicly praised Environment 
Minister Silva for this achievement.  The law creates a Brazilian 
Forest Service, sets up a National Forest Development Fund and puts 
into effect an infrastructure for sustainable use of public lands 
(including the use of concessions). (reftel A)  The PL was passed by 
the Brazilian Senate in January, via an agreement with opposition 
parties which included the addition of three amendments.  At that 
time, many environmental experts feared that the amendments would 
unduly politicize the bill, harming its effectiveness.  However, 
before signing the bill President Lula vetoed four articles, 
including the Senate's three additions.  These vetoes have incensed 
Congress which has the power to re-evaluate and reincorporate the 
vetoes articles, if it chooses.  Until Congress takes action, the 
bill will be implemented as signed into law by Lula.  End Summary 
 
¶2. The law aims to strengthen forest conservation (especially in the 
Amazon) by decreasing land speculation, putting an end to fraudulent 
property claims (grilagem) and creating a socially inclusive, 
sustainable forest-based economy.  The GoB estimates that 
approximately 13 million hectares in the Amazon will be opened to 
public use over the first 10 years of the plan.  Minister Marina 
Silva and President Lula predict that the lands along the BR-163 
highway, an area synonymous with grilagem and made infamous through 
the murder of Dorothy Stang, will be the first lands affected under 
the law. 
 
¶3. In terms of stemming grilagem, as all public lands will be held 
by the federal government, illegal claims will no longer have value. 
 Furthermore, according to Paulo Adario of Greenpeace (one of the 
new law's most vocal proponents) the government can now halt the 
onslaught of agriculture by renting public lands to entities and 
enterprises that will maintain forest cover.  For Minister of the 
Environment, Marina Silva, under the auspices of the new law "the 
predatory logger will begin to act legally, turning into a forest 
producer.  Lula, addressing concerns that Brazil's forests will be 
auctioned off to the highest bidder, reinforced the idea that the 
government will retain title over the land stating, "in summary I 
can say that this new law guarantees, for today and for the future, 
that these public forests will continue to be forests and will 
continue to be public."  In an effort to bolster enforcement 
efforts, 20% of concession's revenues will sustain the costs of the 
new Brazilian Forest Service, while the remaining 80% will be 
allotted to state authorities, municipal authorities and the 
National Forest Development Fund (FNDF). 
 
¶4. It is, however, Lula's four vetoes which remain the highlight of 
the signing.  The articles he vetoed curbed what many authorities 
considered undue political interference in the law.  The three most 
important vetoes removed the necessity of congressional sanction for 
the head of the Forest Service, an article which required 
congressional approval for all concessions over 2500 hectares and 
ministerial oversight, via a governing council, of the new Forest 
Service.  The law will now be published in the Official Registry, 45 
days after which it can be implemented.  That said, Congress can, 
but is not required to, revisit the issue and has the power to 
reincorporate the amendments via a joint session (Chamber and 
Senate) of Congress.  While this often takes years to accomplish, 
this PL is surrounded by special circumstances. 
 
¶5. A group of angry Senators has called on the President of the 
Senate, Renan Calheiros, to convene a special session of Congress to 
vote anew on the vetoed articles.  They consider that the President 
reneged on a political promise, circumventing the accord in the 
Senate which brought the Bill to a vote. 
 
¶6. Comment:  The new law is almost unanimously regarded as a 
constructive, positive step towards conservation.  Despite Lula's 
political gamble with the vetoes, the law will be implemented...with 
or without the amendments.  Therefore, there are a variety of 
aspects to the new bill which open avenues for increased USG-GoB 
cooperation, not the least of which includes the creation of the 
Brazilian Forest Service and a variety of new public parks.  Post 
will continue to update as timelines for implementation and next 
steps are clarified. 
 
CHICOLA