BRAZIL: LET'S ESTABLISH A TROPICAL FOREST CONSERVATION ACT

UNCLAS BRASILIA 000060 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: SENV KGHG EAID EFIN BR SUBJECT: BRAZIL: LET'S ESTABLISH A TROPICAL FOREST CONSERVATION ACT PROGRAM SOONEST PLEASE PASS TO AMB. SHANNON, OES - A/S JONES, AND WHA/BSC - DRUCKER (U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED AND NOT FOR INTERNET DISTRIBUTION. ¶1. (SBU) SUMMARY. Vice Minister of the Environment Izabella Teixeira says that the Government of Brazil (GOB) wants to establish a program under the Tropical Forest Conservation Act (TFCA) quickly, both to help conserve Brazil's tropical forests and as a symbol of the growing U.S.-Brazil bilateral relationship in the environmental area. She sees substantial support across the GOB for a TFCA program, and the political goodwill on both sides should help to resolve the outstanding issues in the text of the TFCA agreement. These views are shared by the Ministry of External Relations. END SUMMARY. ¶2. (SBU) On January 20, the Vice Minister of the Environment Izabella Teixeira stressed to the Charge d'Affaires, a.i. Lisa Kubiske that the Government of Brazil (GOB) wants to establish a program under the Tropical Forest Conservation Act (TFCA) as soon as possible. She and Environment Ministry International Advisor Fernando Lyrio reported that the GOB had just held an interministerial meeting involving the Environment Ministry, Finance Ministry, and the Ministry of External Relations (MRE) to consider the comments provided by the U.S. Government (USG) to the GOB's November 30 TFCA counterproposal. Teixeira and Lyrio both remarked how positive all the ministries were, which represents a turnaround for the MRE from its previously skeptical attitude. This new attitude was evident in a meeting on January 12 by the Science Counselor with the MRE's new Chief of the Environment Division, Paulino Carvalho. He said that the MRE wanted to see a quick and successful conclusion to the negotiations of the TFCA agreement and establishment of a program in Brazil. ¶3. (SBU) Teixeira emphasized the importance of establishing this TFCA program because it would support the GOB's efforts to conserve the tropical forests in the coastal region called the "Mata Atlantica". She added that a successful TFCA arrangement would have significant symbolic value for the expanding U.S.-Brazil environmental relationship. The MRE share that perspective, based on the conversation with Carvalho. ¶4. (SBU) Teixeira and Lyrio, as well as Carvalho, indicated that there is substantial political goodwill on both sides, which should help greatly in resolving the outstanding issues. Lyrio had attended the recent interministerial meeting on the TFCA and said that the GOB found the USG's comments acceptable. He emphasized that the outstanding questions involve technical and legal ones. Lyrio specifically mentioned the need to resolve the issue of providing "quittances" as proposed by the GOB in its November 30 counterproposal. The GOB is proposing that USAID issue a document called a "quittance" as a written acknowledgement (receipt) discharging the GOB after each installment is paid. ¶5. (SBU) The Environment Ministry will send a senior official, Cecilia Wey de Brito, who is the head of the Secretariat for Biodiversity and Forests, to the videoconference negotiating session scheduled for January 26. Carvalho from the MRE is expected to participate, as well as officials from the Finance Ministry and legal advisors from all three ministries. KUBISKE