BIOBIO UPDATE, # 9, Volume 2, English Version

June, 1998

(If interested in obtaining this update in Spanish, please contact Aleta Brown at <aleta@irn.org>.

Summary:
-ENDESA CONTINUES MAJOR CONSTRUCTION OF RALCO DAM
-STUDENTS DEMONSTRATE IN SUPPORT OF PEHUENCHE
-INTERNATIONAL REPORTS DENOUNCE HUMAN RIGHTS VIOLATIONS IN UPPER BIOBIO
-WORLD BANK PRESIDENT ADMITS ERRORS In The BIOBIO And PROMISES JUSTICE
-PEHUENCHE MEETS WITH HILLARY
-PEHUENCHE PLAN MOVES FORWARD FOR AREA DEVELOPMENT

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ENDESA CONTINUES MAJOR CONSTRUCTION IN RALCO
Upper Biobio, Santiago, June 20th.
- Without the necessary authorizations on behalf of the public services and the Pehuenche, Endesa has begun major construction of the projected central Ralco and announced recently through the press (June 17th)- that the project will continue ahead and that by the year 2001 the problem of the land exchanges with the 98 Pehuenche families to be resettled would be resolved in order to implement the second, and bigger, central hydroelectric on the Upper Biobio. The company also announced that early next year major works for the power station would begin.

On the other hand, on Thursday June 18th, 3 parliamentarians concurred with the lawsuit at the Sixth Civil Court in Santiago, in order to be made part of the Action to Nullify the Environmental Impact Assessment presented in June of 1997 on the part of three Pehuenche women against the CONAMA and ENDESA. These Parliamentarians were: Alejandro Navarro (Socialist Party), Guido Guirrardi (Party for the Democracy) and Mario Acuña (Christian Democratic Party). The following day the deputies, lawyers and environmentalists spoke to the press and reiterated that ENDESA already had begun with the definitive works of the power station, in spite of not having resolved the legal actions brought, and that nine Pehuenche families have refused to negotiate with ENDESA, which renders the project non-viable.

During the press conference a recording of ENDESA's declarations to the radio was played. This showed how the company tried to impede the visit of a delegation of parliamentarians, journalists and lawyers to the Upper Biobio. In fact this delegation succeded and last May gathered at the site. The delegation checked that major works had begun in Pehuenches' lands without the free consent of the affected neither the authorization of the CONADI. The company points out that they have a contract to rent the land for 5 years and the authorization of CONAMA. However, Juan Quipaiñan, the Pehuenche owner of the land where ENDESA seeks to build the wall of the Ralco dam, expressed in writing, some time ago, that he was sorry for the agreements with ENDESA. It has been known from "off the record" sources and from a report sent to the Chamber of Deputies that many of the Pehuenche who agreed to land exchanges did it ignoring their right to remain in their land or, in the better of cases, without truly understanding the terms of the negotiations.

It is important to point out that most of the mature population of the Upper Biobio doesn't know neither how to read nor how to write and that their main language is the Mapudungun and not Spanish. On the other hand, the permission from CONAMA doesn't mean that the company doesn't have to obtain other permits, such like those from CONADI and the definitive licences for the power station. This process is not over yet. To stop ENDESA's illegal works, some days ago a petition for a precautionary injunction measure was filed at the mentioned Court in order to stop the present works. The Court's ruling should come out in the near future.

STUDENTS DEMONSTRATE IN SUPPORT OF PEHUENCHE
Concepción, May 30th.
- Students of Concepción, Santiago, Los Angeles and Chillan met at the University of Concepción with the purpose of planning activities in support of the Pehuenche communities threatened by the construction of Ralco. The students resolved to mobilize actively during the following months, not only in the cities but also in Upper Biobio. Students also carried out a spontaneous demonstration during the extraordinary meeting of the Socialist Party that took place that same day in the southern campus. During the demonstration, explanations to leaders and deputies were requested. As a result of this some of the latter committed to visit the area. For the weekend of the 27 to June 29 students have planned a group visit to the Upper Biobio, with the purpose of fencing lands and providing housing in order to maintain a permanent presence in the area.

INTERNATIONAL REPORTS DENOUNCE HUMAN RIGHTS VIOLATIONS IN UPPER BIOBIO
Paris (France), Arlington, (USA).
- Two important international reports on the situation of the Pehuenche communities of the Upper Biobio and the position of the Chilean government and World Bank were issued last April. "The Mapuche-Pehuenche and the Hydroelectric Project of Ralco: an Indigenous People at Stake" was produced after an investigation was carried out by the International Federation of Human Rights (FIDH) between July 3rd-11th 1997 by Thomas Berger, former judge of British Columbia's Supreme Court and Claude Katz, FIDH Secretary General. The 31 page report, written in French and translated into Spanish, comments on the current indigenous legislation, the Chilean government role and the negotiation process that ENDESA is carrying out with the Pehuenche families that would be affected for the not yet authorized Ralco dam project.

"Beyond the resettlement of 125 families aproximately, the will of the Chilean government to protect the indigenous peoples is what is at stake", the report concludes. The report adds that "taking into account the existing unbalance between the parties, the Chilean Government should guarantee a credible consultation to the affected communities, and verify that the Mapuche-Pehuenche families whose transfer is envisaged in ENDESA's project pronounced themselves freely, acknowledging the consequences of their choice. In fact, the Chilean State is responsible for guaranteeing and provide them their basic needs in the place where they live."

On March 31st 1998, the report "The Pehuenche, the World Bank and ENDESA S.A.: Human Rights Violations in the Hydroelectric Projects of Pangue-Ralco in the Biobio river of Chile" was issued. It was produced by the American Anthropology Association of Committee on Human Rights. The report does an extensive analysis of the situation in the Upper Biobio and the work of the World Bank. It results from a complaint formulated by Dr. Theodore Downing, member of the Association, who alleged violations to his professional rights and the human rights of the Pehuenche as a result of his work for the International Finance Corporation who hired him to carry out an assessment on the Pehuen Foundation. Although this assessment was already planned there were strong pressures from GABB and indigenous institutions that requested quickly assessment on the Foundation which was created originally to compensate the economic and social impact of the Pangue dam in the Upper Biobio.

The report details the noncompliance of the Foundation with its objectives and on ENDESA's and World Bank's intentional hiding of the results of the report. All of which would describe not only the violation of the professional and ethical rights of consultant Downing, but also the fact that the Pehuenche were tricked in their land exchange negotiations with regard to Ralco dam by means of ignoring their rights and dire impacts already caused the Pangue dam. The report which also mentions the hiding of the investigation carried out by Jay Hair on Pangue dam recommends a series of actions, among others, the demantling of Pehuen Foundation, the appropriate consultation to the affected families by Ralco's dam project and even recommendations to all the anthropologists in order to make sure that the results from their investigations were not hidden or inadequately used by private companies or international institutions like the World Bank.

Both reports were made public in Chile on Monday 20th of April. The following day, during the Annual Meeting of Shareholders of ENDESA, Pehuenche representatives and environmentalists submitted copies to the company's board. Copies were also submitted to high government officials. Some parliamentaries plan to request an investigation on the consequences that the hidding of information (on the environmental approval of the project Ralco) has had. The report from the AAA is available through internet at the following websites: IRN, http://www.irn.org, or of the Fundacion Rehue, http:// www.xs4all.nl/~rehue/ A copy of the report in Spanish is also available at: http://www.geocities.com/CapitolHill/8528/index.html The report from the FIDH, in French, can be requested to: FIDH, 17 Pasage de la main dŽor, 75011 Paris. Fax 0143551880.

WORLD BANK PRESIDENT ADMITS ERRORS IN THE BIOBIO AND PROMISES JUSTICE
Santiago, April 19th.
- James Wolfensohn, President of the World Bank admitted that serious mistakes were made by the Bank in the Upper Biobio and promised justice. The declarations were made during a press conference held at the Second Summit of the Americas in Chile; they were widely spread by Chilean media. ENDESA reacted strongly. That same day, April 19th, was the deadline for a Pehuenche family from Los Avellanos, located on the banks of the Pangue reservoir, to move.

The following are questions and answers that a journalist asked Wolfensohn:

Journalist: My name is Cristian Opaso. I work for the magazine "Punto Final" from Chile. My question is for Mr. Wolfensohn. I wonder how all of these events in Chile are affecting the credibility of the World Bank. Today a Pehuenche family is probably evicted in the south of Chile as a result of a dam that you financed. There is also a report that the North American Association of Anthropology recently issued. I have a copy in the case you have not seen it. (Wolfensohn answered "I have it.") you also ordered an investigation, in fact we met in Washington since I work also for a non-profit. The conclusions from that investigation apparently did not produce any changes in Chile. I have learned that International Finance Corporation policies are being reviewed, but, on the other hand some Pehuenche families are going to be evicted today. I wonder what do you think of all this?

Wolfensohn: Well, as I said before regarding the reports, I don't believe we did a good job. In fact I believe that we did a bad job in terms of appropriately consulting during 1990-1991 on the Pangue project. Today we would have done a totally different thing, but we have to live with the results of the Pangue project and therefore my objective, like I said in Washington and I want to repeat today is to assure that we do the best possible job which means complete compensation and an appropriate and equal treatment (in terms of monetary compensation and resettlement which was the content of the agreement with ENDESA regarding Pangue's dam project and the Pehuenche families) of the affected 7 families and the other person alleged and in fact those that are being evicted from their lands. Last Friday I inquired about the situation, I wanted to know about each family, and I have been told that a number of agreements had been made. I can only promise you one thing, because this is a matter in which sometimes I am told something which is not truly happening, I am personally committed to guarantee that the affected families receive a fair deal. If we contributed to the problems, I want to make sure that at least we contribute to the solution. I take it as a moral responsibility and I am trying to solve their situation. Now we have a small problem since being creditors allowed us some influence but the debt was paid. We didn't request it, as you know, but they deposited a check in our account.

Journalist: But you still maintain a participation in the property from Pangue.

Wolfensohn: I know that we have a share, but we doubt that as a result of that participation, we are in the same conditions that we were when there was a legal agreement regarding the debt and, unfortunately, that is not the case. But we maintain an permanent dialogue with the organization. It is not one of the most outstanding points in the Bank's past experiences, especially because, as you may know, in the last three years I have dedicated much attention to the indigenous peoples, not only visiting but also financing projects, culture and the like. Thus for me, this is something very worrying. But I am working on this and I am doing all there is in my hands in order to guarantee fairness for those families and this will be done.
I read the anthropological report, the report from the Anthropology Association and right away I ordered another investigation. But I could promise you that the IFC (International Financial Corporation) is taken care of the matter and I am making sure that the people of the CFI are made personally responsible for what happens and I make myself personally responsible to you. I will make sure that justice is being done. It is all I can do and I can control that we will not do the same in the future, that I can promise you.

Irma Jara and Guillermo Salamanca's family eviction was finally avoided by accepting a legal petition in the last minute, but there is not certainty that this family and other Pehuenche families will not be evicted in the future from their lands in the riversides by the Pangue reservoir. It is also important to note that around 20 people (Mapuche and non-Mapuche) of several cities accompanied them and demonstrate against the eventual eviction. The situation in Los Avellanos was thoroughly analyzed in the independent reports from the World Bank (Downing's and Hair's) and ENDESA's and World Bank's policy and commitment violations (non compliance) was confirmed. Given the declarations of Wolfensohn we will follow them up so that the World Bank and ENDESA guarantee that the affected families by Pangue dam stay and that, both institutions, undertake measures to specify the Bank's commitments not only regarding Pangue's social and environmental impacts but also relating to Ralco dam project, which construction was conditioned by specifications in World Bank's loan for Pangue.

PEHUENCHE LEADER MEETS HILLARY
Santiago, April 19th.
- Mrs. Nicolasa Quintreman Calpan from the Pehuenche community of Ralco-Lepoy, one of the indigenous women threatened by the Ralco project met briefly Mrs. Hillary Clinton, wife of the American President, on the occasion of their visit to Chile for the Second Summit of the Americas. The meeting took place Sunday April 19th at the USA embassy in Santiago during the farewell to the Peace Corps volunteers who had invited some Chilean non-profits that are being financed by the Fund of the Americas, which was created partly with the debt Chile has with USA and it is managed by both governments. Nicolasa Quintreman attended as a friend of the Consejo Ecologico from Los Angeles, group that has been working actively in the Biobio river and Pehuenche defense campaign.
It is important to note that, according to some sources, due to pressures from the Chilean government, several meetings between Hillary and Chilean environmental groups were cancelled.
During the brief meeting, Mrs. Quintreman explained to Hillary how she was one of the people threatened with being unavoidably displaced from their ancestral lands and proceeded to give her some hand made wool socks from the Pehuenche and a copy of the report from the lawyers of International Federation of Human Rights (FIDH). "That was the highlight of the meeting", said one of the assistants.
On the other hand, on Thursday June 11, a recorded message with an extensive speech by Mrs. Quintreman was handed in the White House. In the message Nicolasa requested Mrs. Clinton's support for the threatened Pehuenche.

PEHUENCHE PLAN FOR DEVELOPMENT AREA GOES ON
Upper Biobio.
- The Pehuenche plan for development goes on by means of meetings in all the communities and support from a team of financed professionals by CONADI. The plan seeks to achieve agreement within the communities on how to carry on with the new Area of Indigenous Development, declared by President Frei after the opening of Pangue Power Station in March of 1997 (!) The Areas of Indigenous Development envisaged in the new Indigenous Law aim to attract State investments in areas highly populated by indigenous peoples resulting in social and ecological cohesion of the territory. So far few resources given to the Area are being managed by government workers, and there is not a general proposal from the communities nor a decision making mechanism regarding investment on those resources and onthe State's policies.

Biobío Update.
Boletín Fax y Electrónico bimensual del Grupo de Acción por el Biobío, GABB.
Edicion a cargo de: Cristian Opaso.
Direccion Postal:
Ernesto Pinto Lagarrigue 112, Recoleta, Santiago de Chile.
Fono: 56 2 737 1420
FAX 56 2 777 6414.
Correo Electrónico: gabb@huelen.reuna.cl
Traducción al Inglés por International Rivers Network.
1847 Berkeley Way,
Berkeley, CA 94703, USA.
Phone:1 510 848 1155.
FAX: 1 510 848 1108.
Email: irn@igc.apc.org. Distribucion electronica internacional:
IRN y Dario Jaña,
correo electronico: h0847csk@rz.hu-berlin.de

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Aleta Brown
Campaign Associate
International Rivers Network
1847 Berkeley Way
Berkeley, CA 94703 USA
Phone: 1.510.848.1155
Fax: 1.510.848.1008
email: aleta@irn.org
http://www.irn.org