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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Greenpeace PNG Forest Update for April 1997: Sandline and the Rainforests

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Forest Networking a Project of Ecological Enterprises

     http://forests.org/

 

4/25/97

OVERVIEW, SOURCE & COMMENTARY by EE

This is a good one folks!  Following is another excellent, very

current, report on the rainforest situation in Papua New Guinea put

out by Brian Brunton of Greenpeace based in Papua New Guinea.  Lots of

bombshell information including illustration of how Sandline mercenary

corruption is systematic of a deeper malaise, identifying that the

logging code has not been implemented, noting that PNG has signed the

World Heritage Convention, an analysis of 1996 export data and

pricing, and the effects of impending elections on forest giveaways. 

The update then goes on to highlight recent developments in logging

and rainforest conservation on a province by province basis.

g.b.

 

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RELAYED TEXT STARTS HERE:

 

 

From: bbrunton@pactok.peg.apc.org (bbrunton)

Date: 25 Apr 97 21:39:21 +1000

Subject: PAPUA NEW GUINEA FOREST UPDATE APRIL 1997, GREENPEACE

To: gbarry@forests.org

 

FOREST UPDATE

PAPUA NEW GUINEA 1997

BRIAN BRUNTON

GREENPEACE PACIFIC

 

25th April 1997

 

INTRODUCTION

 

Sandline and the rainforests

 

The "mutiny" by elements of the PNG Defence Force in March 1997 is

likely to an have an important impact on Papua New Guinea's

rainforests. The shockwaves are still reverberating and growing in

intensity. Although the mutiny was aimed at the use of mercenaries in

the Bougainville conflict, the deal that led to the events was part of

the web of patronage, cronyism and manipulation at large in the

economy and includes forest policy . That web received a blow from an

unexpected source. Unfortunately, the immediate impact of the events

has not yet slowed down the loggers and their mates.

 

The government, led by PPP and PANGU, is still pushing ahead with its

expanded logging program as if there was no tomorrow. Even after the

mutiny Andrew Baing is still pressuring the system. New logging

projects are being implemented in accordance with the National Forest

Plan [in reality the National Logging Plan] ( The NFP with colour maps

can be purchased from the PNG Forest/Logging Authority ( PNGNFA) for

K100 ). It was put together by upgrading the forest resources mapping

system (PNGRIS) after AUSAID injected money into the rapid resource

assessment program. At the time we said that this was a "loggers map",

and now know we were right [ much of Australian Aid into forestry has

in fact gone into making logging more efficient, although to be fair

they have also funded the DEC strengthening project, but that is slow

in getting any traction, and as you will see PNGRIS is able to

identify areas that should not be logged].

 

The Sandline deal is part of a series of suspect deals that haunt the

present and passed governments : Disciplined Forces Housing Project (

a Wingti deal ); the Porporena Freeway (Nameliu and Chan ); Port

Moresby Water Supply ( Chan ), Cairns Office (Chan & Haiveta ),

Waigani Office Development ( Chan/PPP ), the Malanggan House, Brisbane

deal involving Yii Ann Hii of Monarch Investments a logging company

linked with Rimbunan Hijau ( Chan). For all the details see The

Independent  11 April 1997.

 

There is constant speculation in the country about corruption and it

is in this speculation that the politics of the Sandline affair has to

be placed

 

In the Sandline contract the GOPNG purchased military hardware, on the

ground intervention, technical training and support from Sandline

International, a UK company, for US$36 million. US$18 million has been

paid already. The deal was put together in early 1996, (which is an

indication that the government did not intend to settle Bougainville

peacefully) and signed on the 31st January 1997. The deal slowly

leaked out in Papua New Guinea via the australian media in Febuary

1997, and caused a revolt in the Defence Force and rioting in Port

Moresby. Effectively Chan was forced to hand over the reins of

government to John Giheno. Giheno is a hawk on Bougainville, but seems

to be liking being Prime Minister.

 

Not for the first time we are beginning to see the links between

politicians and logging companies.

 

On the 22 July 1995 the Independent on its front page published a

story by Dominic Kakas which linked PPP Forest Minister Andrew Posai

with Nuigini Lumber, a subsidiary of Rimbunan Hijau. The link was that

Posai was staying in a K335,000 house owned by a company called Trinco

Number 10 which had the same telephone number as Nuigini Lumber, and

whose electricity bill was paid by Nuigini Lumber. Trinco had an

interlocking directorship with Travel Planners, which also involves

Henry Peni a leader of landowners aligned with the logging companies.

Peni and Peter Harold, Posai's brother, were at the forefront of

pressure to relax government control over logging, along with some of

the major logging companies. The deal to buy the house was in part

done by Peter Harold. Posai had been a minister in the Wingti

Government during 1992 and 1993. When Wingti lost office in 1994 Posai

was made Minister for Forests in September 1994. We now know that he

secretly rolled back the policy to end export logging by the year

2000. This fact can only be discerned by combining an objective

examination of what happened thereafter ( export logging permit

granted to extend well after the year 2000), and a close reading of

page 9 of the Annual Report 1994  of the PNGFA.

 

 

Logging Code Implemented : April Fool!

 

Although it was meant to have been implemented as of the 1st of April

1997, the loggers exerted pressure on the politicians and the forest

bureaucrats and the implementation of the Logging Code has been

deferred. So, those of you who thought that the logging code was going

to come in and ensure "clean" logging. Think again. The rumour is that

it has been stood over to the end of the elections.

 

But an informed guess would be if PPP and Pangu  ( the pro -logging

parties ) get back into office, we will see a push to do away with the

rule that says no logging on slopes over 30 degrees.

 

 

And now some good news : PNG and the World Heritage Convention

 

PNG became the 148th state party to the World Heritage Convention

effective as of the 18 Febuary 1997. Thank you to Patrick Anderson of

Greenpeace International who checked with the World Heritage

Information Centre in Paris as no one knew in PNG that it had

happened. It is a very important step in the protection of the

rainforests in PNG. The WHC creates international obligations

but does not in itself create legal obligations in PNG domestic law.

Conservation in PNG is a matter of statute law, and the bottomline is

that which can be implemented by the minister can be undone by the

minister. World Heritage just makes it more difficult politically for

the politicians to renege on a WHC commitment,

 

 

1996 exports & prices

 

According to the Timber Digest December 1997 ( available from the

PNGFA ) PNG exported 2.6 million m3 of logs in 1996 ( cf 2.4 million

m3 in 1995, but the 1994 figure had peaked at  3.1 million m3 ) for a

value of US$352 million in 1996 ( cf US$324 million in 1995). The

average log price in 1996 was US$134 ( cf US$135 in 1995 ).

 

When we consider that the government promised landholders K23 m3 as a

royalty in 1996, but delivered only K10m3 as from 1st July 1996 we can

appreciate how badly landholders are being ripped off under this

system. The NFA Timber Digest no longer gives us details of royalty

payments, species exported, or quantities exported on a project by

project basis, so poor is their publication of statistics.

 

So lets do our own back of the envelope calculations.

 

2.4 million m3 [the total log exports in 1996] at K23per m3 [ what was

promised in the 1996 budget speach ] = K55.2 million.

 

But we know landholders were only paid K10 m3 as from 1 July 1996 [ in

fact many were not paid the increase, and just how much they lost is

hidden from us because of the incompetence of the PNGFA statistics],

so we calculate say 1.2 million m3 ( pro-rata) at K10 per m3 = K12

million as what landholders may have got in the second half of the

year.

 

If before the 1st of July 1997 landholders on average received K5.5 m3 

then the landholders would have received 2.4 million x K5.5m3 = K13.2

million a year in any case under the old grossly under paid system;

for the half year that comes in at an extra K6.6 million. [The latest

PNGFA Annual Report 1994 they are running 2 years behind even though

the Act requires them to present a Report every year to Parliament]

shows net royalties for 1993 at K11.3, and for 1994 K12.5 million, so

K13.2 million looks about right ]

 

Under the old royalty system in operation for the first half of the

year the loggers would have had to cough up in any case about K6.6

million. In the second half of the year they would have had to pay

K12million ( pro rata at K10 m3 ) less the K6.6million they would pay

in any case under the old system, making an additional sum for the

second half of the year of  = K5.4 million.

 

Here we have to remember that the loggers are paid in US dollars, but

they only have to pay the landholders in rapidly devaluing kina, so

there was a further saving thanks to the policy of floating the kina (

World Bank IMF, Chan, Haiveta to blame for this one ) ( could some one

do the calculation on this for us ?.)

 

And by how much could the landholders be down ?

 

K55.2 million ( what they were promised ) less what they got under the

old system, K13.2 million = K42 million less the extra K5.4 million

they were actually paid as a result of the increases after July 1996 =

K36.6 million

 

So what is the bottom line for the loggers : they had to cough up

another K5.4 million, but the landholders are down K36.6 million. That

K36.6 million represents the value of the  project development levy

which was gazetted last year, but it has never been paid. It is an

amount due and owing in one form or another. But money not paid is

money saved. It is a big gift to the loggers. [ the World Bank is

insisting on a project by project review to implement the project

development levy, but I have not heard of any implementation yet; the

first quarter of the year has gone; no royalty statistics are

available, another K9 or K10 million kina may have been added to what

is owed to the landholders

 

Would K36.6 million have bankrupted the industry ?

 

In 1996 total log exports were valued at US$ 352, this was a US$28

million increase  over 1995 exports.  US$ 28 million in kina terms at

.72 cents to the kina = K38 million. What do you reckon ?

 

The big gift to the loggers comes care of the policies of the World

Bank, Chan, Haiveta, Baing PPP and Pangu.

 

 

new companies legislation

 

In the last sitting of Parliament a new Companies Act was passed. I

have not seen it, but the newspaper reports say that it is modeled on

New Zealand legislation and there has been a tightening up on the

fiduciary responsibilities of directors. If this flows onto Landowning

companies [LOCs], that will have a major impact on the loggers and

their mates. The new Act has not yet been brought into effect.

 

 

Pressure on the Forestry Board to deliver before the elections

 

A sickening situation has arisen with the Forestry Board. In January/

Febuary this year the Forest Board was pressured by Andrew Baing the

Minister for Forests to allocate the following timber concession : in

ENB, Mukus Tolo : Gasmata Holdings; in WNB, Rottock Bay : Nuigini

International Corporation (of Malaysia); Asengseng : WTK ( more later

as this is in the middle of a high biodiversity priority area in the

Whiteman Ranges of West New Britain); Amanab Blocks 3&4 to be

readvertised; Josephestal in Madang Province : ASB Timbers PNG

of Malaysia, Hekiko in the Gulf Province : with the Yeungs group of

Hong Kong, and Semabo in the Western Province to Dienbese which is

said to be a joint venture company with PNG, Malaysian and Australian

interests.

 

The Board has followed the law on these, but there are major problems

with giving out more logging concessions on the logged-out New Britain

Island. The decisions are beyond sense and reason : Hekiko is in Karst

country, Semabo is very small and 60% either swamp or subject to

indundation.

 

 

MSG and a common market in logs

 

At the end of last year there were rumours that PNG had agreed to lift

the log export tax on logs export to mills within the area covered by

the Melanesian Spearhead Group. The source of this rumour was a senior

officer within the Foreign Affairs Department. apparently the idea was

that Rimbunan Hijau wanted to build a plywood factory in Vanuatu and

wanted to send PNG logs to it. I got broad comfirmation that there had

been a proposal to this effect from another source. Diplomatic sources

told me that the common market proposals were not going to go as far

as log exports. Any major export of logs under this scheme would have

an effect on PNGs revenue.

 

 

ORO PROVINCE

 

Collingwood Bay

 

The landholders in Collingwood bay are holding firm and there has been

no indication of moves to introduce logging. A number of exhibitions

of tapa clothe are being run this year in the USA. There has been one

visit to the Maisin by Japanese conservationists to buy tapa in March

1997.  We are now in a position to examine the Maisin lands for a

possible claim to world heritage status.

 

MOROBE PROVINCE

 

Morobe South Coast FMA

 

This project started in 1996. The permits are held by PNGFP South

Coasts Pty Ltd, which is a subsidiary of the Prime Group.

 

The fact that the Prime Group now holds the timber permits here, with

Turama in the Gulf Province, and with Watut West (see below) is a

reflection of a dramatic shift in policy away from the national

ownership of timber permits which was the policy before 1995. The

policy reversal was achieved by Keith Dolman ( former General Manager,

now in Ghana ) and Jean Kekedo ( former Managing Director ) of the

Forestry Authority. The idea behind the policy shift away from

national control, was to give the foreign investors security of

tenure. Briefly, it was reasoned that the experience with Local Forest

Areas under the old Forestry Act, in which the landowning companies

controlled the resource, and under the Timber Rights Purchases, had

been poor  (there was truth in that, in fact under both arrangements

the foreign loggers controlled everything through one-sided Logging

and Marketing Agreements). Nevertheless, we have now come the full

circle; we are back to pre 1972.

 

There are concerns that the Prime Group is controlled by elements of

the Tiong family ( see comments on Turama ). It is only recently that

we have learnt that the South Coast project successfully geared up in

1996. Previously we have thought no new project had been brought on

line since 1992. That is no longer the case. It now looks like round

log exports began in December 1996. In December 1996 ( also the total

annual figures ) this project exported 1896 m3 with an average price

of US$182. That is a price well above the average annual price for the

whole country in 1996 (which was US$ 134, or k186m3 nb the kina price

is inflated by the deflated state of the local currency), but probably

reflects them extracting a high value species.

 

Watut West

 

This is an extension of the Prime groups interests based around the

plywood mill at Bululo. In some respects the way in which this project

is managed is unique. But of course there is a down side. The

uniqueness comes from the appointment of the landowner company Watut

Wes Risos Pty Ltd ( WWR) as the logging contractor to PNG Forest

Products ( Prime Group ), which is the permit holder. The contract,

signed on the 20th January 1997,  is to supply 34,000 m3 per annum

until 2007 ( 10 years ) The contract price per cubic metre is not

known. But it is claimed to bring the company in K2 million a year. If

these two figures mean anything then ( K2,000.000 divided by 34,000m3

= K58.82 ) then the contract price would appear to be K 58.82. This is

not a very high price given the impact of inflation over the years and

the devaluation of the kina [ in the 1994 Annual Report the NFA gives

logging costs as K50 m3 ]. But, nevertheless it is a start. The rise

of wholely-owned and operated PNG logging contractors is progressive

in the sense that PNG companies are accessible and potentially more

able to be controlled.

 

The other thing that WWR has achieved is to get control of all

development levies. These include the reafforestation levy, the

agricultural levy, and the project development levy.These could be

substantial. There are two problems here. First, WWR will have to

ensure that the levies are used for the purposes they are intended,

and not as a general slush fund. This will mean that WWR will need to

have a high degree of internal self discipline, not normally found in

other landowning companies (LOC) ( see remarks on new companies

legislation above ). Secondly it is arguable that the project

development levy (PDL) does not belong to WWR, but to the individual

landholders who actually own the trees that are logged. This is so

because the PDL is a reflection of the price paid to the landholders

for the alienation of their timber rights under the Forest Management

Agreement (FMA) . Unless the PDL is fairly distributed fairly there

could be distatisfaction. Again LOCs are not know for their fairness

in distributions. Finally PNGFP pays a K10 m3 royalty to landholders.

This of course in terms of the real value of the trees is too small an

amount. For Kauri and Klinki Pine they pay K15 m3. That is a joke. The

low prices paid to landholders represents a subsidy that landholders

are forced to provide to loggers and downstream producers. Landholders

should be able to sell their trees coup by coup at arm's length

prices. What we have here is a state sanctioned monoply price that

does not represent the market.

 

SANDAUN PROVINCE

 

Aitape Oil Palm Scheme

 

Damansara Forest products (PNG) Pty Ltd exported 23,000m3 in logs in

1996 for a total value of US$2.7 million ( K3,75 million ). The

average price of US$120, ( national average US$134 ) which is low

probably reflects that they are clear- felling for oil palm and having

to export a lot of low value species, when other loggers do"selective

logging and take out the high value species. There is still a lot of

landowner problems associated with the PIA Timber Authority, which

came up for renewal in Febuary 1997. I have not heard whether it has

been renewed.

 

The other news is that we have received word that serious moves are

being made to implement the Lou Oil Palm scheme which is said to be in

the catchment area of Sissano Lagoon. Sissano Lagoon needs to be

conserved and is a possible candidate for the WHC.

 

Amanab, Nuku, Lumi

 

In the January 1997 Forest Up date we had the proposals put forward by

Sankung Trading for a large scale "agro-forestry " project in the East

Sepik and Sandaun provinces, covering the Lumi, Nuku and adjacent but

undefined areas of the ESP. That proposal seems to have slipped from

the limelight as it was exposed and ridiculed in the media.

 

Now we have a much more serious proposal stemming from the advertising

of the Amanab FMAs Blocks 3 & 4. In reality that advert drew one

tender from a Malaysian company Eastern Era. The decision of the

Forestry Board, following a recommendation to consolidate the Amanab

Blocks by the Provincial Forest Management Committee (PFMC),  was to

send the matter back to re-tendering, but said the board, to include

Amanab Blocks 1,2,3,4, South West Wapei and "Nuku", [which probably

means the Arko-Samei and the Maimai-Wanwan forest resources].

Amanab, SW Wapei and Nuku are three separate and distinct areas. What

this looks like is that we are building up to a huge area of the

Sandaun province going up for tendering. So, we have the previously

rejected Timber Supply Area scheme back in another form.

 

The landholders at South Wapei were mislead into signing the FMAs;

they had no lawyers advising them and were overborne by officials.

 

Vanimo TRP

 

All landholders want TRP reviewed. But there are two groups of

landholders. One seeking to control the timber resource themselves;

the other is allied with a South Korean company, it wants to kick out

WTK, and put in the South Koreans. There is very little chance of that

happening because the PNGFA would not tolerate that type of

manipulation of existing contractual rights.

 

EAST SEPIK PROVINCE

 

Hunstein Ranges

 

Landholders signed FMAs for th  April Salumei area. However the April

River land holders refused to sign. The Forest Authority has

quarantined an area of 68,000 ht ( about half ) of the Hunstein Ranges

as a conservation area. There are reports that the landholders at

Gahom were threaten by Forest Authority officials that if they did not

sign the FMA the mobile squad would be called in. It is unclear at

present as to why landholders in areas that had previously resisted

the loggers, signed up with the Forest Authority. The most likely

explanation is the failure of ngos to keep in touch with landholders,

and the failure of big international ngos to deliver on promises (

whether express or implied ). In this type of conflict, it is the

ability to have reliable campaigners on the ground that is crucial for

saving the forests. Apart from the Pacific Heritage Foundation which

has put in three sawmills, there has been no real development in the

FMA areas.

 

The conservation area of 68.000 is too small. The 1992 Unitech project

feasibilty report said that the conservation area need to be 100,000

ht. It also said that there needed to be a conservation corridor to

the central ranges. Providing the PNGFA doesnot  rail-road the April

River people into the FMA ( the Board recently approved a device for

incorporating late-commers in FMAs that have already been signed up ),

there is a corridor, it merely needs to called a conservation area.

 

Hawain LFA

 

This case will probably not proceed. The landholders failed to attend

a meeting in Wewak with ICRAF lawyers; the meeting was to arrange the

collection of evidence of environmental damage.

 

EAST NEW BRITAIN

 

Warongoi

 

This case started in the National Court, Kokopo in mid April. The

defendants missed their plane, and there was a problem with the

plaintiff's evidence. The case was adjourned by Mr. Justice Jalina to

mid May.

 

Open Bay

 

As a result of  the militrary "mutiny" and the lead up to Warongoi,

there was a delay in bringing this matter forward.

 

WEST NEW BRITAIN

 

The Whiteman Ranges : Forest Board's environmental vandalism.

 

Asengseng FMA

 

The Whitemen Ranges, an area of high biodiversity priority in West New

Britain are under serious threat as a result of the pressure put on

the Forest board by the Minister of Forests, Andrew Baing. He has let

the board know that he wants WTK to get the timber permit in the

Asengseng FMA. And the board has instructed the West New Britain

Provincial Forest Management Committee to negotiate the tp with WTK.

 

Orginally the WNBPFMC had said there was to be no logging in the

Whiteman Ranges because of their environmental priority. Then the

Forest Board said at the time of approving the FMA ( after submissions

from the NGO representative to the Board, and because of the position

taken by the the WNBPFMC), that this area was to be a small/medium

scale project and groups like the Nature Conservancy were to be

invited to apply, and that it was not to be used for large-scale

export logging.

 

The Asengseng FMA according to the PNGRIS landform and slope variables 

is about 80% unloggable. Its geomorphology consists of polygonal karst

and karst corridors with slopes greater than 30 degrees. To log in

this area would be in breach of the Logging Code.

 

But now we have Baing inviting in one of the biggest Malaysian loggers

in the country. To make matters worst we know that the Dept of

Environment and Conservation had recommended against issuing the

permit, and had John Douglas its senior environmental adviser ready to

brief the Board. But the Board chased him out of the room and refused

to hear him.

 

Torlu River : Upper Nakanai Plateau

 

We hear that there are "requests" for an FMA over the Torlu River

area. This has been described to us as a vast forest of Nothofagus (

Southern Beech ) in karst .

 

We should all protest at the environmental vandalism of the PNG Forest

Authority in the Whiteman Ranges of West New Britain. The New Britain

island is being logged at an unsustainable rate. Export logging in new

areas  has to be stopped.

 

WESTERN PROVINCE

 

Wawoi Guavi

 

ICRAF and WWF completed a patrol into Masula in mid April. Thank you

Bob Bates of Tribal Tours Mount Hagen for his kind assistance and

effort. Landholders from around Mt Bosavi, and from Wawoi Guavi Blocks

2 & 3  including Masula, Haivaro, Wario, Wawoi Falls, Aitabu, Uruda

and Fogamiuyu attended. There is pressure coming from Nuigini Lumber

and RH in the area, and some landholders are said to have received

large amounts of money. The Forest Authority is also pressuring the

Southern Highlands owners to sign up their FMA, so they can join

the Hekiko scam in the Gulf Province. The general position is that

most of landholders all around Mt Bosavi are standing firm. The Forest

Authority has agreed to a conservation area above the 800 metre

contour on Mount Bosavi itself. It has also agreed to three other

smaller areas specified by WWF in the karst country and along the

Hekiko Valley in the Southern Highlands.  WWF is holding the ground

with its community based liaison.

 

But there is a real need to speed up conservation trust funds and get

money into the hands of landholders. We need more people writing in to

the World bank and UNDP/GEF to get them to speed this process up.

 

Makapa

 

The latest on the Wawoi Guavi Supreme Court case is that there has

been a delay. The deputy Chief Justice, who does the case management

for the Supreme Court, has been sitting on the High Court of the

Solomon Islands. He had issued a direction that other defendants were

to be served with courts papers, before a hearing could take place. An

informed guess would say not much chance of a hearing before the end

of May.

 

Wawoi Guavi Extension

 

We are worried about the push across from Bosavi to the Strickland

River. One report, as yet unconfirmed is that a small group of

landholders have been paid a very large amount of money. by loggers.

 

Here we have another reason for speeding up the conservation trust

fund process and other biodiversity initiatives.

 

SOUTHERN HIGHLANDS PROVINCE

 

Mount Bosavi

 

As we said above, the Forest Authority has agreed to a conservation

area above the 800 metre contour on Mount Bosavi itself. It has also

agreed to three other smaller areas specified by WWF in the karst

country and along the Hekiko Valley in the Southern Highlands. WWF is

holding the ground with its community based liaison. But the Forest

Authority under pressure from PPP,  (and also because of its own pro

export logging agenda), and the loggers, are anxious to complete

the FMA work that was stopped last year. It is in the process of

trying to get ICRAF lawyers to agree to the FMA conditions. ICRAF is

prepared to negotiate a settlement, but the landholder clients have

firm views on the sort of project they want.

 

Mount Bosavi is described as of very high conservation priority by DEC

and the IUCN. It is an outlying Pleistocene volano and vast alluvial

plain. The 800 metre contour conservation area was negotiated by

lawyers and may not reflect the true conservation needs of the wider

area. The problem has been that the negotiations have had to take

place in a situation of political pressure and no DEC imput. National

Park status was suggested for this area in the 1980s, but DEC has been

moribund for nearly a decade and a half.

 

GULF PROVINCE

 

Turama

 

The Ombudsman Commission Report on the allocation of the timber

permits in 1995 is still being processed and has not yet been

released. We have not seen the drafts, but we hear from those that

have that it is very critical.

 

Hekiko

 

The Forest Board, after being talked to by the Minister, has

instructed the Gulf Provincial Forest Management Committee to

negotiate a project agreement with the Yeung Corporation Hong Kong.

The Board has taken steps to fix a set of negotiating conditions.

These conditions are likely to raise economic difficulties for a

project that has a number of major difficulties already. The tenure of

the timber rights is in doubt, as the rights were originally

transferred to Turama Forest Industries. Much of the area is karst,

and very difficult country to access. The Environmental Plan prepared

for Yuengs is defective, and has been critised by competent scientists

( indeed it showed signs of being one of the EPs-off-a-hard-disk.

There were passages that clearly came from East New Britain, and had

not been deleted on the wordprocessor. Although I am not totally

familiar with the botany of the area there is a suggestion that there

may be substantial stands of Nothofagus, Southern Beeches, which were

described to me as relict forests from before the Gondwanan break-up

350 million years ago. One safety check on this is that no timber

permit can be issued until the EP is approved. DEC is beginning to be

a little stronger ( despite what has gone before ) and the absence of

an approved and professional environmental plan these days is likely

to put a stop to a project.

 

Vailala

 

We have no reports that export logging is going on at present in any

of the three blocks. GTZ is running its alternative wokabaut sawmill

project just outside Ihu.

 

MILNE BAY

 

Sagarai Gedisu

 

Last month there was confirmation from the Governor of Milne Bay, Tim

Neville, that Saban the contractor and RH affiliate had been caught

exporting rosewood logs which are a prohibuted export in PNG in log-

form. Mr Neville said that a log ship had been raided off the coast

near Port Moresby by the Police. I approached SGS about this incident.

They were very tight-lipped. They said that checking on rosewood

exports was not in their contract with the Forest Authority. SGS's

lack of transparency and its close relationships with the logging

industry are very unsettling for environmenatlists. Saban was closed

down by Mr. Neville for a short period of time, but has begun to

export again.

 

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