VZCZCXRO9630
RR RUEHMA RUEHPA
DE RUEHRY #0178/01 1301016
ZNR UUUUU ZZH
R 091016Z MAY 08
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 2499
INFO RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 02 CONAKRY 000178 
 
DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA 
COMMERCE FOR SALIHA LOUCIF 
 
SIPDIS 
SENSITIVE 
 
E.O. 12598: N/A 
TAGS: GV EAGR ECON ETRD ELAB
SUBJECT:  PLANT VISIT - TIMBER EXPLOITATION IN GUINEA'S FOREST 
REGION 
 
 
¶1. (U) On April 20, Ambassador Carter visited Foret Forte facilities 
in the heart of Guinea's forest region, about an hour outside the 
provincial capital of N'Zerekore.  The Taiwanese-owned company has 
been harshly criticized for its alleged environmentally harmful 
logging practices as well as its lack of involvement in the local 
communities.  However, the picture presented by the factory's 
Managing Director, Mr. Jean-Marie Pettit, suggests that the company 
is actually logging in a sustainable and conservation-minded way. 
In addition, the company highlighted a number of its ongoing 
community development projects.  However, the site visit suggests 
that smuggling and unauthorized logging are widespread problems in 
the region.  END SUMMARY. 
 
---------- 
BACKGROUND 
---------- 
 
¶2.  (U) Founded in 2002, Foret Forte is owned and operated by Cheng 
Jiin-Suey (Kim), a Taiwanese national living in Guinea for more than 
20 years.  Mr. Kim, who also owns a steel company, claims to be a 
close friend of President Conte's.  Foret Forte operations are 
located in the heart of Guinea's forest region where the company 
owns exclusive concessionary rights to 800,000 hectares of forest. 
It is the only company with a forest management concession in the 
country. 
 
¶3.  (U) According to Mr. Pettit, timber smuggling in the forest 
region has been a problem for years.  Prior to Foret Forte's 
installation in 2002, companies based in Cote d'Ivoire and Liberia 
were reportedly smuggling timber out of Guinea.  In some cases, the 
Guinean Government issued short-term permits for limited logging. 
Between 1995 and 2001, Mr. Pettit told the Ambassador that some 
French and Italian companies were actively smuggling timber into 
neighboring countries.  In 2005, President Conte issued two decrees 
canceling all forest exploitation contracts, except that of Foret 
Forte's. 
 
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OPERATIONS 
---------- 
 
¶4.  (SBU) Foret Forte operates a sawmill and plywood factory six 
days a week, eleven months a year.  The company employs just over 
1,500 Guineans, including 300 women.  According to Mr. Pettit, the 
company pays out about $114,000 in monthly salaries (an average of 
$76 per employee).  He estimated the company's total investment at 
about $30 million.  Mr. Pettit pointed out that the fact that Foret 
Forte is processing wood products in country sets the company apart 
from smugglers, who are focused on exporting raw timber. 
 
---------- 
EXPORT BAN 
---------- 
 
¶5.  (U) Most of Foret Forte's exports, which include raw timber as 
well as processed plywood and other goods, are destined for Europe. 
The company owner, Mr. Kim, told the Embassy in previous 
conversations that Foret Forte continued to export its products even 
when the Guinean Government instituted an export ban as part of the 
negotiated tripartite agreement that ended the violent, nationwide 
labor strike in 2007.  Mr. Kim said that Foret Forte was granted an 
exemption to the export ban, but that the local population was not 
aware of the exemption, which fueled rumors that the company was 
smuggling timber illegally. 
 
¶6.  (SBU) However, Foret Forte seems to have fallen victim to the 
government's latest export ban, which was implemented a few weeks 
ago in an effort to mitigate the spiraling costs of goods.  Mr. 
Pettit told the Ambassador that the company is respecting the ban 
and gave a tour of Foret Forte's increasing stockpile of goods 
awaiting export. 
 
------------------- 
RESPONSIBLE LOGGING 
------------------- 
 
¶7.  (U) The company officially has two overarching objectives: 
 - Environment:  Ensure sustainable management of existing forest 
resources while promoting reforestation practices. 
 - Economy:  Generate long-term economic benefits for the company, 
the country, the region, and the local communities through 
value-added timber processing. 
 
¶8.  (SBU) Mr. Pettit explained that Foret Forte employs a rotation 
program wherein the exploitable timber is divided into land parcels. 
 Once a parcel is logged, the company waits 25 years before 
 
CONAKRY 00000178  002 OF 002 
 
 
harvesting that same parcel again.  Each parcel is selectively 
logged with the company taking only the largest trees and leaving 
the rest in order to preserve the forest.  When the Ambassador asked 
about accusations against the company for environmentally 
destructive logging practices, Mr. Pettit told the Ambassador that 
the company is committed to environmental conservation, but that 
after finishing with a specific parcel, local villagers and/or 
smugglers come in behind them and cut down most of what is left.  He 
said that Foret Forte is then accused for the clear cutting.  Mr. 
Pettit mentioned that of the 3,000 containers of timber reported 
exported by the Guinean Customs Office in 2006, only 300 containers 
actually belonged to Foret Forte.  He attributed the difference to 
smuggling activities. 
 
¶9.  (U) Foret Forte is also trying to implement a reforestation 
program.  Mr. Pettit said that the company plans to plant 250,000 
new trees in areas that have already been exploited.  However, he 
told the Ambassador that the company has a difficult time employing 
villagers to plant the trees with local communities demanding 
payment from Foret Forte to plant seedlings. Mr. Petit was clearly 
frustrated by the lack of support offered by local authorities and 
the firm now limits distribution of seedlings to various 
environmental NGOs in the region.  Mr. Petit confided with the 
Ambassador that unless something is done to restrict the clear 
cutting by local villages and illegal timber firms, he feared for 
the continued commercial viability of Foret Forte. As he told the 
Ambassador, "you can't have a lumber company when all the trees have 
been cut down." 
 
¶10.  (U) Mr. Pettit noted that the company is authorized to exploit 
classified forests, but that for the time being, they are leaving 
the core forest alone and focusing on the secondary forests.  He 
said they are in the process of inventorying various parcels and 
planning appropriate, environmentally sound plans for exploiting 
those parcels. 
 
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GIVING BACK 
----------- 
 
¶11.  (U) Responding to questions about corporate responsibility and 
interaction with the local communities, Mr. Pettit said that Foret 
Forte is actively involved in a number of different community 
development projects including construction of bridges, schools, 
health centers, and roads.  He also emphasized that the company 
routinely pays its taxes.  When the Ambassador asked about negative 
community perceptions of the company, Mr. Pettit said that Foret 
Forte is actually very involved at the local level, but is not 
recognized for its contributions, and instead, often unfairly 
criticized by the media. 
 
------------------------ 
PRESIDENTIAL CONNECTION? 
------------------------ 
 
¶12.  (SBU) In reference to widespread rumors that President Conte is 
a company shareholder, Mr. Pettit denied any connections with the 
president.  He said that some newspapers are subject to outside 
influence and encouraged to publish false information about the 
company.  He said that Mr. Kim was the sole proprietor of the 
company. 
 
------- 
COMMENT 
------- 
 
¶13.  (SBU) Conversations with various contacts in the forest region 
after the Ambassador's April 20 visit indicated a generally negative 
perception of Foret Forte.  There were allegations of smuggling 
activities, environmentally harmful logging practices, and lack of 
interest in local communities.  However, the site visit suggested at 
a minimum that Foret Forte is actually implementing an 
environmentally responsible logging plan.  The company is employing 
1500 people in a country where the unemployment rate is well above 
20% by most estimates.  Foret Forte may not be a corporate paragon, 
but it does not appear to be the devil that others are labeling it. 
The visit also suggests that timber smuggling and unauthorized 
harvesting are serious problems. In a separate conversation with DCM 
and ECONOFF, Mr. Kim expressed an interest in meeting with 
environmental NGOs to share information on sustainable forestry 
initiatives.  END COMMENT. 
 
CARTER