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PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

Forest Update December 1996

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Forest Networking a Project of Ecological Enterprises

http://forests.org/

12/8/96

OVERVIEW & SOURCE by EE

Following is Brian Brunton's (of Greenpeace Pacific) December Papua

New Guinea Forest Update. It picks up where last months left off,

exposing systematically the irregularities and wide open timber

intrigue plaguing Papua New Guinea. It is heartening to see an on the

ground forest campaigner taking the time to enlighten international

supporters, as frequently such campaign work is difficult with crisis

after crisis seeming more pressing. Take the time to contact Brian

(his email is at the end) and thank him for his postings to econet's

rainfor.general conference.

Glen Barry

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/** rainfor.genera: 165.0 **/

** Topic: FOREST UPDATE DEC '96 PNG **

** Written 5:25 PM Dec 7, 1996 by bbrunton@pactok.peg.apc.org in

cdp:rainfor.genera **

FOREST UPDATE

PAPUA NEW GUINEA DECEMBER 1996

BRIAN BRUNTON,

GREENPEACE PACIFIC

7TH OF DECEMBER 1996

This is a continuation and update of the report I posted last month.

The first thing I have to do is apologise for the things I left out.

In particular I forgot to report on the work of Greenpeace,

Conservation Melanesia, and the Maisin people in Collingwood Bay and

their successes in conserving rainforests.

Oro Province

Collingwood Bay

The Maisin People of Collingwood Bay determined that they did not want

export logging. The National Forest Authority, (NFA), had scheduled a

large area of their lands to be included in a Forest Management

Agreement (FMA) [the contract which transfers the property in the

timber rights from customary owners to the NFA, and hence to the

loggers]. The Maisin were also under pressure from a Filippino comapny

which wanted to intraduce a 100,000 hectare "cocoanut sap" project,

which involved clear felling. This project was rejected by the Maisin,

and earlier this year the NFA wrote to ICRAF, the lawyers for the

Maisin, saying that they would honour the boundaries of the Maisin

land and not include it in any FMA. Conservation Melanesia are working

on the ground with the Maisin. Greenpeace Pacific have arranged a tapa

cloth ( beaten bark with paintings on it ) trade into the USA, as a

way of utilising the forests, in a non destructive way, and creating

an income.

Sandaun Province

Aitape Oil Palm Scheme

We have learnt that the operator of this clear-fell oil palm scheme,

Damansara, has been taken over by another Malaysian company, Kulim (M)

Bhd aka Kulim Berhad a subsidiary of the Johor Corporation. Kulim Bhd

has taken over New Britain Palm Oil Limited in West New Britain.

Damansara is now backed by a large company which appears to be serious

about planting oil palm. We visited the NFA in late November and were

told that a nursery had been established near Aitape with 30,000

seedlings.

Damansara now appears to be trying to control a number of land

disputes that have broken out over the operation. The first is in Pia

Block A1, in which anti logger clans are disputing with pro logger

clans the validity of the Incorportated land groups (ILGs), and the

validity of the lease-lease-back agreement with the State. This issue

is further complicated because there is also a move to ask the NFA to

arrange an FMA over some of the land. Some of the landholders believe

they would get a better deal with conventional logging ( which is

meant to be done on a sustainable basis), rather than a clear-fell

logging operation.

There is also an other dispute involving people on the coast. Some

clans who oppose logging want to bring trespas actions against

Damansara in respect of the wharf and access roads. They are opposed

by the pro-loggers, and the District Officers are fearful that this

could develop into a fight. There is a further claim by the off-shore

islanders who have demanded compensation because the lights from the

ships loading logs at night scare away the fish. Damansara offereed

K3000 p.a.. But this has been rejected as it has to be split between

10 clans, and would not compensate for the loss of protein. The

islanders want K3000 per ship.

Vanimo

Landholders for the Vanimo Timber resource ( WTK) want to eject WTK

for failure to meet infrastructure requirements and alleged

environmental damage. A project review is meant to commence soon. WTK

has close connections with the NFA and politicians; a protracted

struggle is most likely.

Agro-forestry proposals

Sandaun Provincial plans designate very large areas of the province

for clear- felling ( agro-forestry ). Already a Canadian Company with

close connections with political figures in the Sandaun and East Sepik

Provinces has been operating in the Lumi and Nuku areas creating

alliances with key figures. Watch this space.

East Sepik Province

Hunstein Ranges

The NFA appears to be ready to sign FMAs in the April salumei TRP

area. Although the NFA has never admitted it in writing, their actions

show that they accept that the Timber Rights Purchase agreement (

600,000 hectacres ) was invalid. The implication from this is that it

was the combined work of the NGOs and landholders which forced them to

adopt that position. We have not got a copy of the FMA map, but we

have had a sneak preview. The Hunstein ranges are excluded from the

area to be logged and are marked for conservation. We are not sure of

the precise deals of this, and will confirm when we get the map. This

in itself is a major step for the landholders and the ngos. But, very

large areas of land designated by landholders for conservation have

been included in areas to be logged. WWF South Pacific has concluded a

conservation plan with the land holders known as the Sepik Hills

Conservation Area. A lot of work has gone into this. WWF are close to

obtaining a major grant to implement these conservation and

development proposals. We are concerned that these plans are under

threat.

Hawain LFA

The Hawain Local Forest Area (LFA), just outside Wewak stopped a

couple of years back, due to environmental damage and mismanagement.

Sovereign Hills, an RH subsidiary has been trying to get it back on

track. It appears that a logging and marketing agreement (LMA) was

signed with the defunct landowners company Wongwong Pty Ltd. An

advertisement appeared in the newspaper last week put in by the NFA

advising landholders that the LMA was invalid. This would be so

because under the new 1991 Forestry Act all LFAs are converted into

timber permits, and if there is any change then they have to go

through the full procedures of the Act (ILGs, FMAs, advertise and call

tenders for the concession etc. )

East New Britain Province

Open Bay

This concession is still in gridlock. Litigation is on the way

Warongoi

Litigation has been delayed by technical manouvering of the State.

ICRAF is taking steps to force the matter on for trial.

Southern Highlands Province

Mount Bosavi

There is to be a major meeting of all landholders at Fogamaiyu on the

12th of December. It is likely that political pressure will be put on

the land holders by provincial politicians who are aligned with the

loggers to try to get them to sign an FMA. The leadership of the

landholders is somewhat apprehensive about this. WWF US ( Moro ) will

be at the meeting. The landholders have decided that they want to be

equity partners in any development, that they a downstream processing

project that will market into the Highlands, and they want a road

connecting them to the Southern Highlands network. The NFA has

refused to include these demands in a contractual form in the NFA,

which means the landholder would have to rely on the good faith of the

NFA and the politicians. They are not prepared to do this and require

a firm contract. There is a stand-off, and now political pressure is

being applied.

Western Province

Wawoi Guavi

We approached the NFA about their lack of action over the allegations

of environmental and social problems ( prostitution ) in the Wawoi

Guavi TRP. At first they pretended they didnot know what we were

talking about. We referred them to the article in the Independent in

which the landholders made public complaints. We asked them why it was

that the landholders could not get to see senior forest officials. We

were told that the officers were out of town at the time. The truth of

the matter is that the NFA has detailed reports on the situation in

Wawaoi Guavi but just doesnot want to act, or else is giving it a

low priority. This matter does not look like it can be dealt with

adminstratively and will have to go to court next year. Pressure

should be kept up through the letter writing campaign.

Makapa

We were told by NFA officials that CASH does not control this

concession. We were told that the NFA knew about the Malaysian

newspaper articles which said that CASH had acquired the right to

harvest the timber from Innovision, but that this had been formally

denied by Innovision to the NFA. What was not accounted for, was why

if that was true CASH had notified the Kuala Lumpar

Stock Exchange that the CASH board had approved the acquisition in

principle. After the "in principle" decision, what happened.

Whatever, all that may be moot, because we have just been told by a

reliable source, but cannot otherwise confirm, that Innovision (PNG)

Pty Ltd sold its rights in Makapa to RH for K15 million. This would

make sense, as Innovision have done nothing with the concession for

the five years they have held it, and RH was "promised" Makapa by a

former NFA General Manager , and because RH controls the ajoining

Wawoi Guavi TRPs.

Wawoi Guavi Makapa extensions into the Strickland / Fly River

Rainforest.

If you fly from Lake Murray ( itself one of the wonders of the world )

north to Kiunga you fly for twenty minutes over rainforst horizon to

horizon. This must be one of the last great stretches of rainforest

out side Brazil and Zaire in the southern hemisphere. A visit to the

national Planning Office gleaned that there were plans to log from

Bosavi across the Strickland to the Fly River, a huge area. Last month

I reported how we were concerned that RH was incorporating land groups

and organising landholders to the west of Wawoi Guavi. When we put

these allegations to NFA officials they said that this simply cannot

be because it is not in National Forest Plan until the year 2000,

and they are only concerned with what is in the National Forest Plan.

It is unlikely that this technical lapse will stop RH. RH has

sufficient political leverage to have these concessions included in

both the provincial forest plan and the national forest plan. With the

reputed securing of control over Makapa, RH may control most of the

logging in the Western Province.

Gulf Province

Vailala

We were informed by our reliable source that Shisei has sold its

Vailala Block 1 concesssion to RH for K10 million. Although Shesei is

said to be a mainland Chinese company, our source said that it was

also connected with a political figure in Papua New Guinea.

Turama

There are two Turama concessions. Turama 1 was allocated some years

ago and is fully operational. Turama 2 had its timber permit granted

in 1995. We have reports that large amounts of logs are stock-piled

awaiting shipment. It is not confirmed from which of the concessions

that these logs have come, but it is suspected that some may have

come from Turama 2.

Other news in relation to Turama 2 ( which includes latge ares to the

north and east of Kikori ), is that the Ombudsman Commission has

published a preliminary report on the allocation of this permit

without tendering in 1995. A preliminary report is issued to enable

those who are adversely affected to respond to the adverse nature of

the report. We have not seen the report but we have been told it is

very critical of the allocation process.

Milne Bay

Sagarai Gedisu TRP

We were informed last week that logging operations gave been stopped

by the Provincial Government. Governor Neville stopped operations

because the provincial government believed that there were

irregularities in the scheme of arrangement by which the logging

company (Saban an RH affiliate ) paid off debts accumulated by a

previous joint venture between the provincial government, Groomes, and

the landholders. ICRAF had litigated this case in 1994-5, but had been

out manouvred when all the landholders went over to the loggers side (

except one ), Saban agreed not to log on the one remaining landholders

land, and the case became moot. The cessation of this project and

the prospects of it being tied up in lengthy litigation is a victory

for the forests in Sagarai. The bad news is that much of the forests

in the Gedisu part of the concession are said to be near, or are

logged out.

Brian Brunton Greenpeace Forest Specialist, Greenpeace Pacific;

bbrunton@pactok.peg.apc.org

7th of December 1996

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