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Mark J Spalding News Articles Pages 2000 and 2001


 

Click here to jump to Mark's quotes. Each click will take you to the next quote in chronological order from most recent to earliest in the year 2000.

The San Diego Union - Tribune San Diego, Calif.; Dec 16, 2001

"Funds languish while border water, air quality needs unmet |
2 agencies set up after NAFTA draw criticism"
By Diane Lindquist

[edited for spelling]
Abstract: "The U.S.-Mexico border is one of the most asymmetrical, economically and culturally. The difficulty of getting both sides of the border to work together is incredibly significant," said San Diego State University professor Paul Ganster.
Since NAFTA, the number of maquiladora manufacturing plants on the Mexican side of the border has doubled, drawing hundreds of thousands of workers from the country's interior and swelling the populations of the urban areas. When the two agencies were formed, the region needed about $8 billion in water, sewage, solid waste systems and other infrastructure. Today those needs have grown to $10 billion.
U.S. and Mexican officials plan to present their recommendations to Bush and [Vicente Fox] next month. But the overhaul won't occur for a year or two, said Marico Sayoc, the EPA's U.S.-Mexico border coordinator.

Full Text: Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY Dec 16, 2001

More than $450 million sits unused in the coffers of the North American Development Bank, eight years after it was created to ease environmental problems along the U.S.-Mexico border rising out of the NAFTA business boom.
Critics say the development bank and its sister agency, the Border Environmental Cooperation Commission, still praised as a unique binational partnership, have moved at a snail's pace to deal with the border region's huge infrastructure needs.
While dozens of projects wind their way through the commission's approval processes, sewage has been left untreated and water shortages remain common.
Eight projects are operating along the 2,000-mile border. And just one has been completed in the California-Baja California region - - a water system in Brawley.
"The lost opportunities, especially for Mexico, are enormous," said Mark Spalding, a University of California San Diego professor and one-time consultant to both institutions.
"It was a promise that hasn't been fulfilled," said Kevin Doyle, the San Diego-based director of the western division of the National Wildlife Federation.
Frustration with the agencies has become so prevalent that in September President Bush and Mexican President Vicente Fox launched an overhaul of the institutions.
But some of the agencies' strongest critics fear the proposed changes will take resources away from the border region, which needs it most.
Defenders note the institutions have overcome daunting obstacles and are working better. Twenty additional projects are being built, and about 20 more have been approved.
"The U.S.-Mexico border is one of the most asymmetrical, economically and culturally. The difficulty of getting both sides of the border to work together is incredibly significant," said San Diego State University professor Paul Ganster.
One of the proposals would increase the range of projects to include street paving, border crossings, home financing, highways and public transportation. A few civic activists want a high-speed rail link built between San Diego and Imperial counties.

Widen the zone

Another suggestion, urged by Fox, would stretch the 62-mile-wide zone on each side of the border to 124 miles. That would add more large cities, including Chihuahua and Monterrey in Mexico, and Phoenix, Tucson, San Antonio and Los Angeles in the United States.
Fox has even suggested that the development bank be authorized to finance projects anywhere in NAFTA territory, which includes all of the United States, Mexico and Canada.
Still another proposal would merge the institutions, most likely folding the commission into the development bank, to speed the approval process.
The two agencies were created as a gambit to win votes in Congress for the 1994 North American Free Trade Agreement.
The Border Environmental Cooperation Commission, based in Ciudad Juarez, Mexico, certifies infrastructure projects for 62-mile-wide swaths on both sides of the border. The North American Development Bank, based in San Antonio, arranges financing for the projects, using its resources to back loans from financial institutions or gain grants from agencies.
Both were slow gearing up, and they've moved slowly ever since.
Each has its own administrators, board, staff and budget, and their locations on separate sides of the border make the onerous project-approval process even more difficult.

Not doing enough?

Fox is perturbed that the development bank has doled out only $15 million, despite the $450 million sitting in its coffers. He believes the agency, which has a lending capacity of $2.7 billion, should be financing more projects, especially those that would help elevate Mexico's economy to the level of its NAFTA partners.
Mexican and U.S. officials traveled throughout the border region this fall, including a mid-October stop in National City, to gather comments on how to improve the institutions.
Revamping the institutions comes at a key moment in the NAFTA experience and the U.S.-Mexico relationship.
Since NAFTA, the number of maquiladora manufacturing plants on the Mexican side of the border has doubled, drawing hundreds of thousands of workers from the country's interior and swelling the populations of the urban areas. When the two agencies were formed, the region needed about $8 billion in water, sewage, solid waste systems and other infrastructure. Today those needs have grown to $10 billion.
But many people familiar with the agencies' inner workings prefer that the institutions keep their current structures and simply improve their performance.
"I don't think an adequate amount of time has been given to them to perform. I'm not seeing the information that justifies the decision for some of the radical changes being contemplated," Spalding said.
"The BECC/NADBank program has resulted in more projects and people in the border region being served than ever before in the history of the U.S.-Mexico relationship."
Although devised to win congressional votes for NAFTA, they really are remarkable institutions, SDSU's Ganster said.
"There's really nothing like them anywhere else around the world," he said.
The commission has certified nearly 50 projects for border communities.
In addition to the water system completed in Brawley, five more projects are under construction and seven others are planned for the California-Baja California zone.
They include wastewater treatment plants in Mexicali, Tecate, Ensenada and Tijuana in Mexico and at Calexico, Westmorland, Heber and San Diego in California, plus water systems in Tecate and Calexico.

Concern about secrecy

Many border representatives are particularly concerned about the proposal to fold the commission into the development bank. The environment commission, they note, has stimulated community involvement in its approval process, while the bank is considered secretive and impenetrable.
Lori Saldana, a San Diego community college professor and Sierra Club official who serves on the commission's advisory council, said the institution works hard to involve the public in certifying projects. "We take months to make sure everyone has a chance to comment," she said. "Over a thousand people in Tijuana attended a recent public hearing on a wastewater project."
One of the Mexicans on the advisory council, Oscar Romo, a Tijuana leader of the National Council for Sustainable Development, said the commission has had a remarkable impact in Mexico, where policy routinely is dictated by government officials.
"We've learned a new culture of public participation," he said.
If anything, Romo added, the development bank needs to open its processes to the public.
U.S. and Mexican officials plan to present their recommendations to Bush and Fox next month. But the overhaul won't occur for a year or two, said Marico Sayoc, the EPA's U.S.-Mexico border coordinator.
"It takes legislative changes and a binational renegotiation of the agreement that created the BECC and NADBank," Sayoc said.
Diane Lindquist: (619) 293-1812; diane.lindquist@uniontrib.com
Credit: STAFF WRITER
Sub Title: [1,2,3 Edition] Start Page: A-1 Personal Names: Fox, Vicente

Reproduced with permission of the copyright owner.

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Los Angeles Times/July 15, 2001

"U.S. - Mexico Bank Fizzling"
By Ken Ellingwood

Born of the controversy over free trade, it was an unusual bilateral creation: a public bank, run jointly by the United States and Mexico, to finance desperately needed antipollution measures along the shared border.

But the North American Development Bank has spent the last six years in obscurity, largely ignored by the governments that spawned it and unable to lend impoverished border towns more than a pittance from its bulging vault. Despite having raised $304 million in six years, the bank has made just seven loans, totaling $11 million.

A debate is mounting over whether the institution, known as NADBank, should be redefined to make better use of the loan funds, which have proved unaffordable for for low-income communities along the border. Suggestions to invest in other areas--from highways to housing--have prompted an outcry among environmentalists, who fear the border's towering ecological woes will go untended. The struggle over the fate of the San Antonio-based bank and a sister agency is critical for a 2,000-mile-long strip where booming industry, rapid population growth and decades of neglect have left an environment in crisis.

Poverty and proximity mean towns on both sides of the border face shortages of drinking water, shared rivers of raw sewage, no room for trash and air swirling with the dust from unpaved roads.

"This is where some of the United States' greatest environmental needs are," said Andrea Abel, a border specialist for the National Wildlife Federation.

Challenges are apparent even in rural spots such as Valle de las Palmas, a farming community in Baja California, where leaders are worried about the health of the nearby Las Palmas River. Residents say septic-tank waste is dumped next to the river that courses through the broad valley of vineyards and olive groves. The river provides the town's drinking water and feeds Tijuana's main reservoir.

Treatment "was necessary 20 years ago, but we couldn't do it. There weren't resources," said rancher Arturo Gomez, who serves as treasurer of the community near Tecate, 18 miles south of the border. He said the need is fast becoming acute as Tijuana shantytowns push east and Tecate sprouts assembly plants just to the north.

The sudden focus on NADBank, set up to deal with problems such as waste treatment and disposal, comes at a key moment.

Mexico's president, Vicente Fox, has made clear his anxiety over the unused millions and Mexico's need for money to finance economic development throughout the country. He has suggested that the bank could help infrastructure projects there that would further cement the economies of Mexico, the U.S. and Canada, linked by the North American Free Trade Agreement since 1994.

Mexican officials say limiting NADBank to environmental work makes it likely that little of the money will be used. Lending solely for water, sewer and trash projects has proved difficult, bank officials say, because those services generate little income that poor communities can use to repay the loans.

Mexican treasury officials propose freeing the money for loans for energy, communications, housing and construction of other unspecified infrastructure projects. The Fox administration's point man for the border, former Baja California Gov. Ernesto Ruffo, told reporters in Mexico City last month that the funds could be blended with help from government agencies and international banks to build highways, railroads, airports and seaports.

Mexico also favors expanding the area eligible for NADBank aid from 60 miles on each side of the border to 180--an idea that has won little support among U.S. officials.

President Bush has signaled his desire to make the bank more useful, convening a group of U.S. agencies to examine NADBank reform. Fox and Bush are expected to take up the matter again at their next meeting, scheduled for September.

The bank and the affiliated Border Environment Cooperation Commission, a bilateral agency based in Ciudad Juarez, Mexico, were set up to ease concerns of NAFTA critics who feared more trade would aggravate border-area pollution.

The bank was assigned to finance treatment of water and sewage and disposal of municipal trash. The nations contribute toward an eventual capital pool of $450 million and have pledged more as backup. The border environment panel counsels communities and holds public meetings on proposed environmental projects.

A Striking Contrast in Views of the Border

The two entities were the first joint U.S.-Mexico border agencies since creation of the International Boundary and Water Commission more than a century ago.

Environmental activists worry that sweeping change now will spell retreat just as the border's long-standing ecological problems are getting some attention, despite NADBank's skimpy lending.

The border has seen an unprecedented boom in construction of water treatment plants and sewers under NAFTA. Thirty-two projects have been built or begun, from Tijuana to Donna, Texas, thanks mainly to $265 million in U.S. government border-cleanup grants. Those grants come from the Environmental Protection Agency but are managed by the bank, apart from the loans.

"It doesn't make a whole lot of sense to develop bridges and highways when people are drinking water that's making them sick," said New Mexico environmentalist Lynda Taylor, who is a U.S. representative to the border environment commission.

The wave of recent construction has introduced treatment plants for the first time in fast-growing places such as Ciudad Juarez, across the Rio Grande from El Paso. "We've begun to make a dent in the needs of the border," Taylor said. "Our work is far from done."

The debate underlines a striking contrast in the way each country views the border zone. By U.S. standards, the mostly rural area is gravely troubled, with some of the lowest incomes and poorest health and environmental conditions in the nation. From the Mexican heartland, however, the frontier represents economic dynamism and prosperity--a far cry from the abject poverty of villages in Mexico's interior and far south.

Though the border's environment is of concern to Mexican officials, it is hardly the only region in which they face daunting air pollution and untreated water and sewage, said Gordon Plishker, who directs an environmental institute at Sam Houston State University in Huntsville, Texas.

"They're not having the same degree of concern about the border that we're having," said Plishker, who also serves on an environment committee of the Border Trade Alliance, a group based in Phoenix.

But everyone seems to agree that NADBank's loan program is mostly a failure.

Its managing director, Raul Rodriguez, supports loosening the operating rules to permit lending for non-environmental projects, saying the focus on treatment and trash has been a "straitjacket."

"It's a very simple trade-off. If we remain as we are, our belief is that a bank is not justified. You can't lend to the sectors and the projects contained in the current mandate," Rodriguez said. "There are so many needs that you can't be sitting on the money."

Rodriguez insisted, though, that the border would remain a high priority for the bank.

Bank officials say grants and other low-cost funding sources are a surer way to tackle the shortages of water, sewers and solid-waste disposal--needs that are expected to require investments of $1.9 billion during the next five years alone.

Communities on the U.S. side have found cheaper alternatives to NADBank loans in state revolving funds or by floating bonds. Mexican towns, unable to afford NADBank loans and barred by Mexican law from issuing debt the way U.S. municipalities do, tend to rely on their federal and state governments and the EPA grants. Leaders in Valle de las Palmas, for example, are considering applying for EPA funding to cover some of the cost of building systems to treat water and sewage.

Activists argue that NADBank, rather than seeking new areas for lending, should find a way to lower its rates. Bank loans now must be offered at commercial rates and generally are about 5% to 7%. The two governments agreed last year to an experimental program in which the bank will lend $50 million at reduced rates. But that program has not yet been put in place.

Rodriguez said, however, that rates are not the sole problem. Sewers and water systems are simply "not bankable" because they produce unreliable returns in communities that are only learning how to set rates and collect payments, he said. That lesson has been learned by global development banks, which he said allot a tiny slice of their portfolios to such projects.

Rodriguez said lending to more financially promising projects, such as those involving private companies, would enable NADBank to generate income that could in turn provide grants to needy communities.

Controversy also is swirling around the fate of the border environment commission, whose relationship with the bank has often been contentious since its formation under NAFTA.

Some activists worry that bank reform will gut the commission, which helps communities sketch proposed facilities, organizes public meetings and certifies projects for financing. It has approved 49 projects in both countries; 95 others are being prepared for certification.

The commission has been broadly praised for emphasizing community needs and giving voice to grass-roots groups that have flowered along the border. But critics view its review process as slow and cumbersome, especially daunting to private developers. They favor shifting development duties to the bank, leaving the commission in charge of working with the public.

Once, a Grand Vision for the Continent

For their part, U.S. officials are divided on what needs fixing. Treasury Department officials cite the paucity of loans as a sign NADBank and the border environment commission have failed. Officials at the EPA, meanwhile, say such an assessment obscures what the bank and commission have done to shepherd projects benefiting 7 million residents, even if most of the money came from U.S. grants and other financing.

Fernando Macias, the commission's general manager, said the agency has streamlined project planning in the last two years and should retain that job. "There would have to be an overwhelming reason to justify moving project development from one institution to the other," Macias said.

The high-level interest in the bank cheers early backers who hoped it would do more. Promoters had envisioned a development fund that would help finance projects from Canada to southern Mexico. Fox has pushed such an idea, arguing that the economic boost in his country would make for a sturdier trading partner and dampen the flow of migrants seeking jobs in the U.S.

But a much broader role probably would require a big increase in the governments' funding for the bank--a matter certain to prompt additional debate.

"The bank's assets are not enough to deal with the border's problems, much less the economic-integration needs of North America," said Mark Spalding, an environmental law specialist at UC San Diego who advises advocacy groups in both countries. "You end up shorting everybody concerned."

The governments have taken modest steps toward giving the bank more leeway. Last year the board of directors, made up from a trio of federal agencies from each country, approved lending for air pollution projects, energy and water recycling.

Mexico now is suggesting using bank funds to cope with mountains of used tires that pile up on the border and to improve ports of entry. A new bill, sponsored by Sen. Pete Domenici (R-N.M.), would steer $75 million in transportation funds through the bank to upgrade border crossings, which often are scenes of long lines of exhaust-belching trucks and cars.

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NEWS ANALYSIS
Building on Border Ties:
Observers expect Mexico's president to strengthen relations with U.S.

Robert Collier, Chronicle Staff Writer

The smiles all around at yesterday's inauguration of Mexican President Vicente Fox weren't just Mexican ones. For Americans -- and Californians in particular -- there's plenty of hope that cross-border relations will be better than ever.

Many U.S. politicians and analysts expect Fox to downplay the prickly nationalism that has long been Mexico's hallmark in its dealings with the United States and has hindered cooperation on many issues, such as immigration and pollution cleanup.

But on immigration and drug policy, Fox may want to take the friendship further and faster than U.S. politicians are willing to go.

The contradictions and opportunities expected to emerge in the near future derive from Fox's ideology, an unusual hybrid of right and left that is unlike anything U.S. policymakers have ever dealt with.

Under the Institutional Revolutionary Party, which ruled for 71 years until it was defeated by Fox in the July elections, Mexican policy toward the United States had a split personality. Mexico gladly welcomed trade and investment, while rejecting foreign pressure on environmental cleanup, labor issues and human rights.

Fox, who hails from the conservative National Action Party (PAN) yet departs from many of its policies, has said he will break down barriers and seek "cooperation at all levels, a real partnership among neighbors."

Fox's Cabinet has strong Bay Area roots -- Foreign Minister Jorge Castaneda and National Security Council chief Adolfo Aguilar Zinser are former professors at the University of California at Berkeley.

"I think we're going to see profound and far-reaching transformation in U.S. -Mexican relations," said Harley Shaiken, chair of UC's Center for Latin American Studies, where Castaneda and Aguilar Zinser have taught and where Fox and several of his aides have attended conferences.

"It's going to be a road with a lot of possibilities but fraught with very clear dangers. We won't see Mexican -- or U.S. -- nationalism disappear, for that matter -- but likely a redirection in a more productive way," Shaiken said.

In an August visit to Washington, and in subsequent speeches and interviews,

Fox made these proposals:

-- Drugs. The United States should end its policy of certifying countries as passing or failing in the war against narcotics and should do more to stem demand for illegal drugs by the U.S. public rather than merely pressing Mexico to stop supply.

-- Immigration. The United States should treat Mexicans better regardless of legal status.

-- Border. The United States should issue more temporary work visas to Mexicans and eventually should open the border altogether in what Fox calls a European-style common market arrangement.

-- Foreign policy. Although Fox is relatively pro-American, Castaneda is markedly left of center. A frequent columnist in U.S. media, he has sharply criticized many aspects of U.S. policy. Experts say Fox sees Castaneda as his alter ego, who can help build bridges with U.S. and European progressives and Latin American leftists.

When Fox went to Washington in August, he got a chilly reaction from presidential candidates Al Gore and George W. Bush, both of whom politely made clear that several of his key proposals would go nowhere.

"I am proposing a 'NAFTA Plus,' " Fox said Sunday. "I'm proposing that 20, 30 years down the road we form a North American common market in which we become partners, the United States, Canada and Mexico.

"I am going to persuade Bush or Gore, whoever it is. And I am going to persuade the American people."

That's a tall order indeed, because Fox's concept would gradually eliminate U.S. controls on Mexican immigration.

His visit seems to have produced some results, though. It built support in Congress for legislation to end the drug certification program -- a major irritant in the Mexico-U.S. relationship.

Even Sen. Dianne Feinstein, D-Calif., who long has taken a tough stand against Mexico on drug issues, now favors a temporary lifting of the certification requirement.

Other Fox ideas on drugs are sure to rankle U.S. officials. Castaneda and Public Security Minister Alejandro Gertz are vocal proponents of full legalization of drug consumption -- a proposal that is political poison for Americans.

But on the environment and human rights, Fox is likely to please. Several of his Cabinet picks have impeccable pro-cooperation credentials, including Environment Minister Victor Lichtinger, former director of the NAFTA environment commission; human rights ambassador Mariclaire Acosta; and border policy coordinator Ernesto Ruffo.

"I think we'll see a more cooperative attitude from Mexico," said Mark Spalding, a law professor at UC San Diego and an adviser to environmental groups that have butted heads with Mexico over border cleanup and wildlife protection.

Spalding said he expects results in two areas. First, the United States might accede to Fox's request for large-scale development grants for poor areas of central and southern Mexico -- perhaps channeled through the North American Development Bank, NAFTA's environmental aid fund.

Second, Spalding said, "If Fox simply does what he says and reduces corruption, he will be the best president for the environment in Mexico's history."

Companies often bribe government inspectors to ignore industrial pollution, especially in the border maquiladora zone.

California politicians also hope for big results under Fox.

Gov. Gray Davis has spent the past two years repairing California-Mexico relations, which were badly frayed under predecessor Pete Wilson, who took a hard line against undocumented Mexican immigrants.

California's exports to Mexico rose 32 percent in the first nine months of 2000 compared with the same period last year, largely on sales of electronics, telecommunications and high-tech consumer goods.

Progress has been slower, however, on expanding cooperation to other issues,

such as education of migrant workers.

Lt. Gov. Cruz Bustamante, who is in Mexico for the inauguration and to set up a joint scholarship program for graduate studies, said Californians should look at Texas' long -- but successful -- effort to woo Mexico.

"I understand people's impatience. It's been two years," Bustamante said. "People ask what's been done.

"But look at Texas. George Bush went down there all the time, and he didn't come back with results each time. Gov. Davis is doing the same thing. That's what you do with a relationship. It takes a while."

See original article . Top


EcoAmericas, December 2000

"Vicente Fox Plays First Environmental Policy Card
"

By Talli Nauman

MEXICO CITY -- When Vicente Fox won Mexico's presidency on July 2, effectively ending seven decades of single-party rule, many wondered how he would tackle an even tougher challenge-this country's vast and various environmental afflictions.

Shortly before being sworn in this month, he gave us a hint: Victor Lichtinger.

Named environment secretary, Lichtinger, the former executive director of the North American Commission for Environmental Cooperation (CEC), assumed office with Fox and the rest of his administration on Dec. 1.

Like most members of the new cabinet, Lichtinger, 43, is not well known in political circles. Reaction to his appointment has ranged from optimistic to wary wait-and-see.

Many praise Lichtinger for his four years as the first executive director of the CEC, the tri-national agency created in conjunction with the North American Free Trade Agreement (Nafta). Though he was forced to resign following an information-handling dispute with a U.S. official at the agency, he earned high marks for advocating cross-border conservation, public participation and transparent decision-making.

"I know he brings a deep commitment to the environmental agenda, and this will be good for both Mexico and all of North America," says Janine Ferretti, his successor.

Others reserve judgment. University of California-San Diego environmental law lecturer Mark Spalding is unsure Lichtinger will stand up to business when necessary. He notes that Fox, a former Coca Cola executive, leads a conservative political party-the National Action Party (Pan)-that is closely allied with business.

And Lichtinger himself has in the past had close ties to the private sector as a corporate environmental consultant, he adds. Says Spalding: "I suggest we keep a careful eye on his actions."

In a short speech on taking office, Lichtinger pledged to press for greater public access to environmental information, a cause supported by his predecessor, Julia Carabias. He also is likely to retain a broad-based advisory panel Carabias created for the secretariat (and that Lichtinger served on)-the Sustainable Development Consulting Council.

"Victor Lichtinger hasn't defined his environmental policy yet, but the signs are that we're going to re-institute the [things] done well and correct those that aren't," says Rafael RodrĖguez, Natural Resources coordinator for the UN Environmental Programme's Regional Office for Latin America and the Caribbean.

Yet some change already is underway. Fox's transition team decided that the secretariat, previously known as the Environment, Natural Resources and Fishing Secretariat (Semarnap), would no longer oversee fisheries.

Fisheries now fall to the Agriculture Secretary Javier Usabiaga, dubbed the Garlic King for his international success as a garlic grower. Green advocates aren't pleased; they question Usabiaga's environmental credentials.

Also controversial is a proposal to shift forestry oversight to the agriculture secretariat. Signaling his agency will remain involved in forest-protection, however, Lichtinger has announced a 100-day crusade to stop deforestation and to create a National Forest Commission led by his secretariat.

Fox has pledged his cabinet will work as a team, and he has placed the environment secretariat-now called the Environment and Natural Resources Secretariat (Semarnat)-in the powerful economic wing of the cabinet. But some here still wonder whether the agency will become a key player.

"One thing is Victor Lichtinger's vision and the other is whether the trade, agriculture and economy secretariats accept his criteria in making decisions," says Enriqueta Medellin, an environmentalist who serves on the Sustainable Development Consulting Council. "This is precisely the challenge."

In other institutional changes, Lichtinger is expected to emphasize water basin initiatives, an idea backed by experts in ecosystem management. He also is poised to continue previous efforts to decentralize the secretariat by giving state offices more power.

Both policies would face hurdles. Since watersheds do not conform to state and local borders, basin initiatives might become mired in jurisdictional disputes. And many states currently lack the resources to take over federal environmental responsibilities.

In the area of inspections and enforcement, the perennially under-funded Federal Environmental Prosecutor's office (Profepa) is expected to receive more resources and may be separated from the secretariat to give it independence. Another agency, the National Water Commission, will be restructured and charged with attracting outside investment and revising rates.

The secretariat also is eyeing outside investment in hazardous-waste confinement. A similar effort by the previous administration unraveled when local authorities withheld permits amid public opposition. But Ra™l Arriaga, assistant secretary of Semarnat's new environmental protection management division, has called for rule changes to give private investors more assurances.

All eyes on Lichtinger

Lawrence Sperling, the Environmental Protection Agency attachČ at the U.S. Embassy here, is intrigued. "Lichtinger brings a number of interesting and promising ideas for future directions in Mexico's environmental policy," Sperling says, "a proactive spirit, experience in international environmental affairs, an encouraging emphasis on transparency, public participation and empowerment of state and local government, and an important focus on the inextricable linkage of environment, economy and social welfare."

And while Mexico's business community certainly isn't clamoring for regulation, some in industry say they'd welcome improved conservation and pollution control on grounds it would benefit the economy in the long run.

Jose Campos Garcia, head of energy and environmental control for Nissan's Mexican subsidiary, cautions against spooking investors but says environmental authorities must be stricter than under the previous administration. "What I don't want to happen is for excesses to continue without control," Campos says. "The abuses occur because they have been allowed."

For his part, the University of California-San Diego's Spalding says he has doubts because Lichtinger lined up with business in one of Mexico's highest-profile environmental disputes in recent years. As an advisor to Mitsubishi, Lichtinger championed that company's ultimately unsuccessful bid to build a huge salt works in the Vizcaino Biosphere Reserve in partnership with the Mexican government.

But Spalding has cause for optimism. He notes that many Mexican environmental abuses stem from corruption, a problem Fox vows to tackle. Says Spalding: "Combating corruption may therefore be the most promising environmental effort of the new administration."

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Reuters/July 6, 2000

"Mexican Green Party Under Scrutiny After Fox Win
"
By Adolfo Garza

MONTERREY, Mexico -- Mexican environmentalists find themselves in an ironic dilemma: vehemently opposing the participation of an ecological party in the Latin American nation's next government.

When Vicente Fox ended the 71-year reign of the Institutional Revolutionary Party (PRI) in Sunday's historic election, he did it on a center-right National Action Party (PAN) and Green Party (PVEM) ticket.

The problem is, some environmentalists think there is little about the PVEM that is "green," apart from its name, and claim party President Jorge Gonzalez Torres runs the party like a personal fiefdom.

The Green Party "is a private business without a genuine and real interest in environmental issues," said Martha Delgado, president of the Union of Environmental Groups.

"Their environmental proposals are frankly ridiculous, for the most part," she said.

Delgado is among several environmentalists critical of Gonzalez Torres who have launched a campaign to oppose his possible appointment as environment minister under Fox, who will take power on Dec. 1.

"Many of us are terrified at the possibility that Gonzalez Torres or any of his relatives or friends could fill that post," Delgado said.

"VOTE GREEN"

"It's a very, very interesting dilemma," said Mark Spalding, a professor of environmental policy at the University of California in San Diego, familiar with the controversy.

Spalding said he met Gonzalez Torres last year while testifying before an environmental committee of Mexico's Congress, which he said got key support from the Greens.

"That said, I think it's pretty telling when the Green Party does not have the support of the environmental community of the country in which it operates," he said.

The Green party grew out of a grass-roots organization called the National Ecologist alliance.

Like many other opposition groups, it succeeded in becoming a party because of support from the PRI, which during its long rule sought to fragment the opposition, analysts say.

Through its politically canny alliance with the PAN during the election campaign, the Green Party will significantly increase its presence in Congress in the coming session.

Gonzalez Torres told Reuters that under the deal with the PAN his party will have five seats in the 128-seat senate, up from one last term, and 16 deputies in the 500-member lower house, up from eight previously. The increase is even greater considering that the Green's one senator, and two of its deputies, abandoned the party soon after the 1997 elections.

The Greens' critics say the party has in the past let down voters who believed in its toucan emblem and slogan of "don't vote for a politician, vote for an ecologist."

Like other parties, it receives federal funding based on its percentage of the vote and critics say Gonzalez Torres has used the party to install his son, family friends and schoolmates in Congress.

Gonzalez Torres said in a phone interview that the criticism of the Greens was unsubstantiated, and insisted their efforts were not based on considerations of political gains.

"We formed this alliance for the environment, so that it would be included in the platform of our new president," he said. "And for democracy, so that democratic change could take place in Mexico."

The future environment minister will have to tackle huge problems, such as Mexico City's horrendous pollution, the destruction of the country's forests and biological reserves, and the exploitation of protected species.

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Latin Trade/June2000

"Environmentalists Win Fight in Mexico Over Salt Mine That Would Endanger Gray Whale
"
By Allison Wright in San Ignacio

Chalk one up for the environmentalists.

Last March, a 5-year-old multinational environmental campaign helped to stop the construction of what would have been the worlds largest salt plant. Destined for the shores of the San Ignacio Lagoon in the pristine desert of southern Baja California, the project was to be located within the borders of the largest nature preserve in Latin America, the Vizcaino Biosphere Preserve. Home to numerous endangered and threatened species, the preserve is a Unesco world heritage site, a designation given only to spots with outstanding universal value.

This shows that globalization has its positive side, says Homero Aridjis, a Mexican poet who started the campaign against the proposed plant in 1995. It is a triumph of life over commerce.

Now that the battle has been won, theres work to be done. More appropriate development schemes must be hatched to ensure the long-term peaceful coexistence of the preserve and local inhabitants. Additional measures will be necessary to ensure that tourists don't chase away the areas most prized residents the gray whale and to prevent poachers from threatening the other endangered species in the park.

The salt plant was a project of Exportadora de Sal [Essa], a joint venture between the Mexican government [51 percent] and Japan's Mitsubishi [49 percent]. Essa already runs a giant 50-year-old salt facility on another whale-inhabited lagoon some 200 kilometers up the coast from San Ignacio. The new project would have entailed the construction of an enormous system of salt evaporation ponds and dikes covering some 116 square miles, as well as a mile-long loading pier.

Devil fish. Environmentalists had the charisma of one of natures perennial poster children on their side: the Pacific gray whale, which counts the San Ignacio Lagoon among its few remaining breeding and birthing grounds. In Baja, the baby friendly whales will even glide up to boats to be petted, seemingly as curious about human visitors as visitors are about them. Thats quite a switch from their 19th-century reputation as devil fish, an infamy stemming from fierce attacks on whaling ships in defense of their young.

Even though environmentalists quietly conceded the whale would probably be the creature least affected by the development, they spun a global Save the Whale campaign around stopping the project. The campaign enlisted the support of Hollywood actors, Nobel laureates and thousands of school children, turning an obscure piece of the dusty Mexican desert into a cause celebre.

In the end, the campaign, waged via consumer and investor boycotts, the Internet, newspaper ads, billboards and a letter-writing effort that sent more than 700,000 pieces of protest mail to Mexican President Ernesto Zedillo and Mitsubishi, forced the partners to abandon their plans. In early March, Zedillo announced the projects cancellation, taking environmentalists by surprise.

Zedillo maintained the Mexican government had decided to cancel its plans not because the plant would harm the environment or to appease environmentalists, but because it would alter the landscape in unacceptably drastic ways. The environmental-impact statement proves the salt plant would not have hurt in any way whales or any other species in the preserve, he said. Nevertheless, the preserve is a unique place in the world both for the species that inhabit it and for its natural beauty, which we should preserve. He lashed out at environmentalists, accusing them of using the project to gain fame and even to reap economic and political benefits.

James Brumm, a U.S.-based director of Mitsubishi, also claimed the environmental-impact statement would have allowed the plan to go forward. But he said his company had decided against the project in favor of preserving the unique natural landscape. This would very much alter the landscape, and ultimately the decision was made that it is better to leave this as an untouched area for eco-tourism and just for preserving the whole area, he said. Nevertheless, Brumm told reporters that the company relented, at least in part, due to public pressure.

Life without salt? While environmentalists say some 70% of the local population was against the plant, fearful it would ruin their fisheries business, the task remains to replace the 200-plus jobs, paved roads, water and electricity service to Punto Abreojos, the town that would have been the center of development.

To replace the economic boost that the salt plant would have created, Zedillo promised that special projects would be started to provide compensation for the communities that would have received jobs and other benefits from the plant.

But that's a tall order. Essa had planned to invest some US$ 180 million in the construction of the plant and local infrastructure upgrades. Indeed, in the 13,000-resident town adjacent to the present salt plant, the company has provided a number of improvements. It has helped to pave streets, plant trees and develop better schools, hospitals, potable water systems and sanitation services.

That's not all. The 1,000 plant workers and their families also enjoy the benefits of two gyms, tennis courts, a scholarship program for the children, a subsidized food store and an emergency evacuation service for medical care unavailable in the town. About half of the plants well-compensated workers get an additional perk: They live in company-owned houses that form an idyllic suburb that resembles a piece of San Diego or Houston.

Finding other means of more compatible development may not be easy. Baja

California Sur Governor Leonel Cota Montano has said that salt development was the areas only hope. The little town of Punto Abreojos is across the lagoon from where the tourists board boats to see the whales, and even eco-tourism is limited in its appeal.

In the Ojo de Liebre lagoon up the coast, which attracts fewer tourists [but more whales], whale-watching captain Carlos Barajas Aguilera says his company used to see 8,000 visitors a year. But six years ago, three other whale-watching companies started up. Now he says that his outfit draws some 2,500 visitors a year.

More tourists might drive away the whales altogether. Paul Dayton, professor of marine ecology at Scripps Institute of Oceanography, says the whales may prefer the Ojo de Liebre lagoon precisely because there are fewer tourists.

But aside from the fisheries and eco-tourism businesses, there are few other options. The landscape is too dry for agriculture or ranching. Indeed, the area just endured a six-year drought. Without job creation, the areas two illicit sources of employmentpoaching and drug smugglingmay swell.

Poaching is already a serious problem facing some of the preserves endangered animals, particularly the pronghorn antelope and black sea turtles. The antelope are poached constantly, and the turtles are just hanging on by a thread, Dayton says. Without raising regional incomes, he adds, poaching may get worse.

Mark Spalding, a lawyer and adviser to the International Fund for Animal Welfare, says one hope is to provide more and faster land and sea vessels and funding for ranger positions for poacher prevention and apprehension programs. These efforts would be carried out in conjunction with the already-in-progress local anti-poaching education campaigns.

Environmentalist groups say they are committed to helping the locals build a better life, but through compatible and sustainable development. We don't want to just declare victory and abandon the area, Spalding says. That's a nice thought. But the area will probably also require another concerted international effort to pull it from the grip of poverty and ensure the survival of the park.

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Los Angeles Times/May 18, 2000

"
Panel to Probe Mexican Lead Recycling Plant"
By Ken Ellingwood, Times Staff Writer

SAN DIEGO--In a move hailed by environmental activists, a special panel set up by the United States, Mexico and Canada said Wednesday that it will investigate alleged enforcement lapses at an abandoned lead recycling plant in Tijuana that has become a symbol of ecological neglect on the U.S.-Mexico border.

The North American Commission for Environmental Cooperation, established by a side agreement to the North American Free Trade Agreement to monitor the environmental toll of commerce, agreed to compile a report on whether Mexico failed to enforce its own laws by not forcing property owners to clean up the closed lead smelter.

Activists say that pollution from the piles of lead waste is carried by rain and may be poisoning a neighborhood of more than 1,000 families below.

The case, filed by groups in Tijuana and San Diego, is the commission's first that focuses on pollution at the U.S.-Mexico border and it has been closely watched by activists who complain that the panel is slow and lacks power. But environmentalists said the decision to investigate the plant, called Metales y Derivados, was a hopeful sign.

"It's a huge victory," said Cesar Luna, an attorney with San Diego's Environmental Health Coalition, one of the two groups that filed a complaint in 1998. "It's the first time that Mexico, Canada and the United States have recognized that what we have at hand is a huge toxic problem."

But Luna acknowledged that cleanup may yet be far off.

The commission cannot force a country to enforce its laws or sanction those that fail to do so. The commission receives complaints from citizens and nongovernmental groups in any of the three countries and can conduct a review and then publicize its findings.

The commission has authorized such an investigation--known as a factual record--in only two of the 26 other cases submitted since 1995. Just one, involving potential damage to a reef and marine wildlife from construction of a pier on the island of Cozumel off Mexico's Caribbean coast, underwent full commission review and resulted in a public report. But the construction was largely complete before the panel could compile its report.

In the Tijuana case, the commission said it hoped "to understand Mexico's enforcement efforts to prevent an imminent risk to the environment and dangerous repercussions to public health, and to prevent and control soil contamination."

The smelter, which for 12 years recycled car batteries into lead ingots, is a crumbling shell surrounded by piles of lead-tainted powder. It was left by owners after the Mexican government ordered it closed in 1994 because operators failed to properly dispose of hazardous waste.

Frustrated Mexican authorities have cited and issued an arrest warrant for owner Jose Kahn, who lives in San Diego. Kahn once pleaded guilty in Los Angeles to charges of illegally transporting hazardous material. He was fined $50,000 and agreed to take steps to clean up the four-acre site.

Kahn, a Chilean who runs the San Diego parent company with his son, Reinaldo, could not be reached for comment. Reinaldo Kahn has said he and his father are seeking a bank loan to pay for a cleanup.

Mark Spalding, who took part in drafting the NAFTA environmental provisions, said commission scrutiny may embarrass Mexico into cleaning up the site.

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Were the whales really in danger?

The fisherman's 22-foot boat bobs softly up and down. "Ballena, ballena" - whale, whale - "ballenita, ballenita," he sing-songs, willing a baby whale to come his way. One does, because this is a storybook kind of place. First a baby, then its huge barnacle-covered mother, nuzzling the boat's bottom, gently butting the boat's side. Again and again the whales dive under and return, poking their heads out as hands stroke their slippery-smooth, slightly rubbery skin.

Gray whales are everywhere in Laguna San Ignacio, Mexico, so improbably plentiful it's hard not to laugh and gasp out loud. In the lagoon's shallow waters, whales give birth and nurse. In the warm waves, they swim with their young and mate.

"This place is a masterpiece of nature, like the Sistine Chapel, a cathedral of nature," says Mexican poet Homero Aridjis.

Each winter the eastern Pacific stock of gray whales returns to this spot, traveling thousands of miles down the West Coast from Alaska. To get here, they dodge tankers and big-city harbors.

There was a time when they were almost killed off by whalers, who found in the lagoons of Baja California abundant prey. Now there are more than 26,000 of the huge creatures, hunted by camera-wielding tourists.

It's easy to get emotional about touching a 40-foot whale. In fact, many people here don't just pet the whales, they kiss them. It was just such affection that turned the recent campaign to protect this lagoon into a massive international affair.

It all started in 1994 when the gray whale was taken off the endangered species list. That same year the world's largest producer of solar salt, Mexico's Exportadora de Sal, planned to set up shop along these very shores. Owned jointly by the Mexican government and Japan's Mitsubishi Corp., ESSA had big plans. The company, which already had a massive operation 100 miles up the coast, wanted to expand to meet projected Asian demand. The proposed $100 million plant would stretch more than 62,000 acres north and west of the lagoon.

The plan was to construct salt ponds that would be refilled constantly by pumped-in lagoon water. Near the mouth of the lagoon, cargo ships would pick up salt at a pier jutting a mile into the sea.

Environmentalists were shocked. After all, Mexico had designated the lagoon a refuge two times over in the 1970s - once for migratory birds and wildlife, later for the whales. And in 1988 when Mexico established El Vizcaino Biosphere Reserve - a 2.5 million-hectare expanse set aside to preserve precious desert ecosystems - the lagoon became part of that, too.

But the environmental campaign sparked by the salt company's plans wasn't about the desert surrounding the lagoon, home to endangered pronghorn antelope and rare plants. It wasn't about fish, either.

It was all about the whales.

From the start there were questions about whether such a focus was fair. A full-page ad in The New York Times in May 1995 featured a picture of a whale and these words: "Gray whales rock their newborns to sleep in this warm Mexican lagoon. Their only enemy? Mitsubishi, a giant Japanese conglomerate with plans to suck it dry."

Sponsored by Grupo de los Cien, a prominent Mexican environmental organization led by Aridjis, the ad was the first salvo in a long and hyperbolic battle. Soon similar pleas hit the Internet, mailboxes and even TV. America's leading environmental groups joined the fight.

"Gray whales don't travel 5,000 miles for a Mitsubishi factory tour," said one of the 21 direct-mail pleas sent out by the Natural Resources Defense Council between 1996 and 1999. "Time is running out for Laguna San Ignacio and the gray whales. . . . Please take a few minutes right now to save them," said another.

Many of the more than 27 million individual pieces of mail the NRDC sent included form postcards addressed to Mitsubishi.

The volume worked. So, apparently, did a boycott of Mitsubishi products launched last fall, as well as the public attention commanded by celebrities such as actor Pierce Brosnan, NRDC senior lawyer Robert F. Kennedy Jr., and 34 renowned scientists, including nine Nobel prizewinners, who signed their names to a protest ad.

Last month, after being inundated with letters (including thousands from children), Mexican President Ernesto Zedillo and Mitsubishi executives suddenly scrapped the plan.

But bitterness over the campaign's tactics tinged the announcement - and a debate over whether the ends justified the means is likely to last for some time.

Environmentalists were aware that focusing on the whales was a surefire publicity-getter.

"Running around with a big banner that says, `Save the Plankton' just wasn't going to get us anywhere," says Mark J. Spalding, an adjunct professor in international environmental policy and law at the University of California, San Diego. Spalding was hired by the NRDC and the International Fund for Animal Welfare to fight the saltworks.

They also concede that nobody really knows whether the salt plant would have harmed the whales. But they argue - as the scientists said in their ad - that it was "an unacceptable risk."

The sudden demise of the project cut short a review process that was expected to take many more months. ESSA had spent more than $1 million to fund an environmental impact assessment researched by an impressive list of academics. Once completed, the study was to be vetted by an international panel of scientists chosen by Mexican environmental officials.

On the day the project was canceled, ESSA released the conclusion of the assessment team's 3,000-page report. The consensus: Neither whales nor other wildlife would be hurt by the salt operation.

Environmentalists scoffed, calling the report company propaganda.

"I think even good academics, when they're working as contractors, have a tendency to try to please the people who are paying them," says Mark J. Spalding, an adjunct professor in international environmental policy and law at the University of California, San Diego. Spalding, an expert hired by the environmentalists.

Steven Swartz, a marine mammal biologist with the U.S. National Marine Fisheries Service, takes issue with such statements. Swartz, who was on the government panel and had studied the lagoon's whales in the 1970s, says he's glad the project will not be built. But, he says, the ESSA study involved top-notch scientists.

"They were personally attacked, and I think that was very unfair, very unjustified, because I know them," Swartz says.

Clint Winant, an oceanographer for two decades at the Scripps Institution of Oceanography in San Diego, bristles at being questioned about his conclusions - that ESSA-created brine and the company's pumping plans would result in negligible change.

"I think a lot of the environmental movement is more about advocacy than truth-seeking," he says. "It's like they have a client who is condemned to death and they're going to do anything to get him off."

Jorge Urban, a biologist at the Universidad Autonoma de Baja California Sur and a leading expert on the gray whale, was similarly blunt, saying ecotourism boats worry him more than saltworks.

"There was no problem for the whales. From the beginning, there was so much exaggeration," Urban says.

Scientific studies are one thing. Simple eyeballing is another. Visiting the saltworks in the town of Guerrero Negro is an eye-opener because one thing Guerrero Negro has plenty of is whales.

The plant was built next to Laguna Ojo de Liebre, another whale breeding ground that is larger than Laguna San Ignacio and attracts more whales.

On a recent morning, Julio Alvarez, 23, was speaking to tourists from the front of a tour bus as it drove by salt evaporation ponds.

"A lot of people say that this company is bad for the whales, but that's not true - because every year we have more and more whales here," the young guide says as he smiles at the rows of tourists layered in polar fleece and sunscreen.

In this town that ESSA built, home to about 1,000 employees, the only thing people brag about more than the whales is the salt factory - its tidy company-built homes, its discount company store.

"We have a new hospital - really big and nice," Alvarez says as the bus passes a snow-white salt mountain. "Now everyone wants to get sick."

ESSA is a salt powerhouse. The company, 51 percent of which is owned by the Mexican government, produces more than seven million metric tons of salt a year, including half of all the salt that Japan imports. Most of ESSA's salt is used for chemical processes. Some is table salt. Chances are ESSA salt winds up on snowy Philadelphia streets, since a portion of it heads north for winter deicing.

The salt is made in a series of large ponds filled with water pumped out of the lagoon. The water gradually evaporates in the wind and sun, leaving salt.

By the time the 18-month process ends, enormous fields of blinding white crystals await harvesters. The salt is scraped off the ground, loaded onto trucks, then washed and shipped.

The company has had environmental troubles. A few years back nearly 300 batteries were found dumped in the lagoon. In 1997 ESSA was blamed for the death of 94 sea turtles - a charge the company hotly disputes.

Under the intense pressure of the whale campaign, ESSA revised its San Ignacio proposal, offering electric instead of diesel pumps to avoid oil spill risks. The company also promised to use a conveyer belt instead of trucks to move salt from the ponds near the lagoon to the pier.

Still, on its Web site, savebajawhales.com, the Massachusetts-based International Fund for Animal Welfare described the proposed saltworks as "a predator of a most fearsome kind," one that would create "an industrial wasteland."

The reality seems less dramatic.

ESSA's Laguna San Ignacio project would have created 200 jobs. For the 2,000 or so people who live around the lagoon, there was a promise of much more, including better services and roads. Paved roads might have encouraged travelers to discover the local fishing camps instead of being flown in on charter planes and whisked away to fancy ecocamps run by nonlocals.

But environmentalists worried that factory-initiated improvements might also bring what they saw as another dread problem: people.

"Paved roads, running water, electricity basically would have attracted population growth," Spalding says. "A legitimate question to ask was whether we wanted that risk to whales introduced in this place."

This, for many environmentalists, was the bottom line: Once you allow change, there is no way to go back.

Guerrero Negro was desert before ESSA came. Now the factory's generators hum night and day. Shacks offer pizza. Trash blows in the harsh wind. It's a gritty city of 13,000.

In their campaign the NRDC and other groups worked with local communities, particularly the fishing town of Punta Abreojos outside the lagoon, where the pier would have been located. Fishermen there opposed the plant for pragmatic reasons. They were worried about their abalone beds and lobster catches.

Others saw a rare chance for change. They also saw outsiders. It was outsiders, they say, who set the agenda and decided what was right for the lagoon.

Outsiders who don't understand how hard life here can be.

"That," says Francisco Mayoral, the de facto elder statesman of the Laguna San Ignacio fish camps, "is what they are missing most of all."

At 59, Mayoral, known as Pachico, looks prematurely ancient. The lines on his face are deeply carved. His front teeth are gone. His skin is weathered and leathered by years outdoors.

The house near the water's edge where he lives with his wife, 66-year-old Carmen, is similarly worn - tin roof, thin wood walls. Outside, she coaxes flowers to bloom in plastic milk jugs and rusted cooking pots. Inside on the bare wood walls, she pins up sayings and jokes in rough block letters. His visiting son, Pancho, 28, surveys the messages and smiles.

'If envy was ink, how many people would be dark?" he says, translating one.

Even with loving touches, this home is beyond simple. In the evening, a tiny solar-powered bulb casts a dim light in Carmen's kitchen. She was born at the lagoon back in the days when people fetched water from a ranch two hours away by burro, Mayoral says. Water is still brought in. Roads are still dirt.

In the front room, which is partly open to the air, Mayoral sits in darkness. This man, the first to touch a "friendly" whale, says he'd hate to see nature ruined for money. Still, a lot of people need jobs. The lagoon is overfished and, he says, the whale-watching season lasts only three months.

"Most people, they come here in winter," Mayoral tells his son. "They should come in August, see us then, when we have nothing."

Living in a place like Guerrero Negro doesn't appeal to Mayoral, he says. Then again, he lists its benefits. Better health care. Child-care centers.

A few years ago an American nonprofit organization taught Pancho English and trained him as a nature guide. Now he works as a lead kayak guide in Loreto, which is more than 150 miles south of Laguna San Ignacio.

Environmentalists have promised to help the local people. They talk about sustainable fisheries and expanded ecotourism. That's Pancho Mayoral's dream. He hopes to one day run his own ecotour business complete with kayaking and whale-watching. But establishing an ecotourism business takes capital, and local people don't have it, Pancho says. They can't compete with outsiders' luxury tents and charter planes.

His father nods.

"People come here and they say, 'Oh, you can come to me if you need help,' but then I try and I can't reach them, they don't answer," Mayoral says. Then, with his voice turned harder, he adds: "I think sometimes people care only about the whales here. Sometimes you have to help the humans, too."

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Boston Globe/April 2, 2000

"Whales Sink Plans for Mexican Salt Plant"

By Richard Chacon, Globe Staff

MEXICO CITY - In the end, the whales were just too potent a symbol.

For six years, the placid waters of San Ignacio Lagoon, on the Pacific coast of Baja California, have been at the center of one of Mexico's fiercest battles between environmental preservation and economic development.

That battle ended abruptly last month when President Ernesto Zedillo announced that he would drop a government-sponsored proposal to create the world's largest industrial salt plant on the shores of the lagoon. The plant, opponents argued, would have endangered schools of gray whales that use the area as a breeding ground every winter.

It was a decision, some say, that may have changed the shape of environmental politics in Mexico.

The unusually public nature of the debate, which stretched from remote Mexican fishing villages to advocacy groups on Cape Cod, and involved poets, movie stars, a multinational corporation, and the Internet, was a first for Mexico, winners and losers say.

''This was the most sophisticated environmental debate we've ever had in this country,'' said Alberto Szekely, a prominent environmental lawyer and one of the leading opponents of the plant. ''Most environmental problems in Mexico are the result of our precarious legal system. But this time, fortunately, it worked.''

Environmental issues in Mexico have often taken a back seat to such pressing problems as economic stability, combating poverty, or corruption. Only since the passage of the North American Free Trade Agreement six years ago have such issues been given public scrutiny. And perhaps no case has been watched more than the one that pitted the whales against the salt plant.

In announcing his decision, Zedillo, who had visited the site only days earlier, charged that environmental groups had created a false panic about the whales' welfare and said he was more concerned about preserving the pristine desert landscape around the lagoon.

''Mexico has never been a whale killer,'' the president said in a speech that also accused environmentalists of using the controversy simply to seek ''notoriety and money.''

Scientific opinion differed on whether the salt plant would have harmed the whales. Much of the recent debate focused on the merits of a 3,000-page environmental impact study done for the company, Exportadora del Sal, SA, also known as ESSA, a joint venture between the Mexican government and the Mitsubishi Corp.

The study, produced by a consortium of Mexican universities and the Scripps Institute of Oceanography in California, concluded that there would not be significant damage to the whales' mating area. A United Nations study last year arrived at a similar conclusion.

Backers of the project also pointed to a smaller plant, situated to the north in the town of Guerrero Negro, to bolster their case. There, the number of breeding whales has increased since the salt plant opened 40 years ago.

But environmentalists said the new plant would upset the ecosystem in a variety of ways: an excess of brine residue, a byproduct of the salt-making process, would be poured back into the ocean; the plant's evaporation ponds would alter the amount of rainwater runoff into the lagoon; and the noise from large extraction pumps would hurt sea life.

Opponents also said the San Ignacio Lagoon is protected by law; the area is part of a biosphere reserve and was designated a United Nations World Heritage Site in 1993. Critics also said the factory would have set a dangerous precedent for other ecologically fragile areas.

''Every Mexican president over the last 30 years has added more layers to protect this area,'' said Serge Dedina, a University of Arizona geographer who has just completed a book on the controversy. ''Not only would the plant be illegal, but a reversal of policies by the last six presidents.''

Dedina stumbled on the proposed project while doing doctoral research in 1994. He got in touch with Homero Aridjis, a prominent Mexican poet and leader of a group of environmental advocates based in Mexico City. They organized with 58 other Mexican groups to oppose the plant and began confronting government officials.

For help with strategy and funding, they teamed up with two US organizations, the International Fund for Animal Welfare in Yarmouth Port, on Cape Cod, and the Washington, D.C.-based Natural Resources Defense Council.

Together, they organized a two-pronged campaign.

First, they attacked the project from legal and scientific angles, bringing in their own experts and filing scores of legal briefs demanding more public scrutiny of the proposal.

Second, the environmental groups created global publicity campaigns that brought in personalities such as Pierce Brosnan, the current celluloid incarnation of James Bond, and Robert F. Kennedy Jr. for made-for-TV visits to the lagoon. They also sought to embarrass Mitsubishi for its role in the project.

The opponents used an Internet-based mailing system that sent angry letters to dozens of Mitsubishi car dealers in California. They also purchased full-page newspaper advertisements in the United States, Germany (a major Mitsubishi market), and Japan.

And they pressured environment-friendly mutual funds to stop investing in Mitsubishi-related ventures.

By the time Zedillo notified Mitsubishi of his decision to stop the project, officials there were relieved, despite having spent more than $1 million on the environmental impact study.

''I think we were in mutual agreement with the government, even though the environmentalists raised a number of baseless arguments,'' said James Brumm, executive vice president for Mitsubishi International, the conglomerate's New York-based US subsidiary. ''This was an awkward situation for the government as both a regulator and as a partner in the project.''

Mark Spalding, a professor of international environmental law at the University of California at San Diego, compared the success of the cross-border campaign against the salt plant with another battle that US and Mexican environmental groups waged last year against a proposed radioactive waste site near the border in Sierra Blanca, Texas. That project was shelved despite support from Governor George W. Bush, now the likely Republican candidate for president, and the Zedillo administration.

With the victories in Texas and Baja California, Spalding added, environmental groups are building the strength they need to take on other urgent issues in Mexico and along the border - such as mercury contamination, lead poisoning, and the lack of treated water - as both nations continue to live under NAFTA.

''The very same politicians and businessmen who brought us NAFTA have brought the environmental groups together,'' he said. ''They're all going to have to learn to live with us.''

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Saving the whales: Baja salt plant killed
Environmental groups triumph over Mitsubishi

The San Diego Union - Tribune; San Diego, Calif.; Mar 3, 2000; Steve La Rue;

Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY Mar 3, 2000

Mexican President Ernesto Zedillo and Mitsubishi Corp. announced yesterday that plans for a large salt plant in the San Ignacio Lagoon -- a winter breeding area for the California gray whales -- are being abandoned.

The surprise decision was hailed as a major victory by environmental groups that had opposed the project.

"This is one of the most significant environmental decisions of our generation, not just for Mexico, but for the world," said Joel Reynolds, senior attorney for the Natural Resources Defense Council, one of two major U.S. environmental groups that joined with more than 50 Mexican organizations to defeat the proposal.

"This is a world heritage site, a biosphere reserve, a whale sanctuary and a migratory bird refuge. It would have been the worst place on the planet for industrial development," said Reynolds.

The Mexican government and the Japanese conglomerate already jointly operate a company called Exportadora de Sal, S.A. The joint venture, commonly known as ESSA, operates a salt-extraction plant at Ojo de Liebre Lagoon, which is not far from San Ignacio.

Yesterday's announcement means that ESSA will not construct a salt- extraction plant at the pristine lagoon, which forms part of the Vizcaino Biosphere Reserve.

Zedillo said in a Mexico City news conference that he decided to stop the plant because of the importance of the Vizcaino Reserve as a whole.

"There are few places in the world like the Vizcaino Reserve," he said. "Taking into account its national and world importance and its singularity, I've made the decision to instruct representatives of the Mexican government to propose a permanent halt to the project."

In a conference call with reporters, James Brumm, executive vice president of Mitsubishi, said his company and Zedillo made the decision to abandon the plans even though a new environmental study produced by 40 scientists, including several Americans, concludes that the salt-extraction process would not have harmed the whales or other species.

"The study shows there would have been no adverse impact on the whales or on the environment," Brumm said.

But he said the corporate giant began to have second thoughts after "a number of responsible people brought to our attention that the project also had to take into account the integrity of the landscape."

He said: "It is better to leave this as an untouched area for eco- tourism."

Mark Spalding, a lecturer in international environmental policy at UCSD, acted as a consultant for environmental groups that opposed the project. He said the decision to abandon the plan was probably forced by the Mexican federal government. "I think Mitsubishi spent a lot of money on an environmental assessment and crafted it to suit their desire to get the project approved," he said. "They are still saying that their environmental assessment justified the project, so I think they probably intended to go ahead with it."

Environmentalists charged that brine spills from holding basins at ESSA's existing salt plant were responsible for the deaths of protected sea turtles and may have figured in a rise in gray whale beachings recorded along the west coasts of the United States and Mexico in recent years.

The population of gray whales has not decreased in recent years, however. After falling to a population low of about 2,000 at the turn of the century, the whale species began to be protected by the U.S government in 1947. The population has since surged to about 26,000 and the gray whales are no longer considered an endangered species.

Mexico's Vizcaino Biosphere Reserve was declared a world heritage site by UNESCO in 1993.

"We're ecstatic," said Jared Blumenfeld, habitat director of the International Fund for Animal Welfare, which joined the National Resources Defense Council in opposing the project. "We're proud to have protected one of the world's true natural treasures."

Spalding said the environmental coalition that opposed the salt plant might not have won yesterday's victory without the Internet, which allowed it to distribute material in four languages to a worldwide audience. "Five years ago, nonprofit organizations could not have afforded to disseminate the information that we did to counter a strenuous public relations campaign by a multinational corporation," he said. "We have done polling in Mexico and the U.S. and Japan and in the lagoon area and all of the polls were in the 65- to 70-percent range of opposition to the salt works."

Homero Aridjis, a poet, novelist and president of the environmental Group of 100 in Mexico, said, "There is cause to celebrate because it has been . . . the most intensive environmental fight there has ever been in Mexico."

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Houston Chronicle/March 3, 2000

"Development Near Whale Breeding Site Canceled"

By Dudley Atlhaus

MEXICO CITY -- Facing growing public opposition in Mexico and abroad, the Mexican government and its Japanese business partner canceled plans Thursday to build a massive saltworks near pristine breeding waters for the Pacific gray whale.

"We Mexicans are creating a new culture of appreciation, respect and care for the natural resources of our nation," President Ernesto Zedillo said in announcing the cancellation of the project on the shores of Laguna San Ignacio in Baja California. "Each day the consciousness is stronger that the protection and sustainable use of our natural resources are fundamental for the present and future development of Mexico."

Mexican and U.S. environmentalists who waged a five-year struggle to stop the proposed saltworks were jubilant when they learned that the project had been scuttled. They had argued that the plan threatened the gray whale and other plant and animal life for the sake of corporate profit.

"This is a victory of an animal species over the market," said Homero Aridjes, the Mexico City poet and environmentalist who helped spark the opposition to the saltworks.

But officials with Mitsubishi, which with the Mexican government owned the company that would have operated the saltworks, said a 3,000-page environmental impact statement concluded that the project would not harm the whales.

Although the Pacific gray whale was listed as an endangered species until 1994, its population has recovered significantly in recent decades.

Laguna San Ignacio is one of four shallow bays along the Pacific Coast of Baja California that serve as breeding and birthing sites for the whales. Each year they migrate 6,000 miles from their summer waters off Alaska and the Arctic coast of Canada to spend the winter along Mexico's shore.

The jointly owned company, called ESSA, has been producing salt through evaporation of sea water since 1957 on land surrounding the whales' breeding waters near the town of Guerrero Negro, 85 miles north of San Ignacio. Company officials and whale experts have pointed out that the number of gray whales visiting the Guerrero Negro lagoons has increased dramatically in those same years.

Zedillo said Thursday that although the gray whales were not threatened by the proposed saltworks, his government was shelving the project because it would have harmed the area near the lagoon, which is inside Mexico's largest biosphere reserve.

"It is a site, until now, with minimal intervention of mankind," Zedillo said of the biosphere that encompasses the lagoon, "of which few remain in the world."

Mitsubishi director James Brumm said at a press conference here Thursday that the company and Mexican government officials determined that the proposed saltworks would have made "a significant alteration of the landscape."

But Brumm suggested that the strong public opposition to the saltworks in Mexico and other countries played a major role in the decision.

Brumm said Mitsubishi received about 700,000 postcards, letters and e-mail messages in opposition to the plan, mainly from the United States.

"It was a lot of public pressure, and we certainly felt the brunt of that," Brumm said. "We have certainly not convinced the general public that this should go ahead."

Two U.S. environmental groups, the National Resources Defense Council and the International Fund for Animal Welfare, largely bankrolled the 50-group coalition that led the opposition to the saltworks.

Those organizations and others launched a far-flung public relations campaign against the project.

Internet sites and e-mail messages told of the threat to the gray whales. Journalists were taken on tours of Laguna San Ignacio. Hollywood stars and other U.S. celebrities made well publicized trips to the site to speak out against the project. Billboards featuring gray whales sprung up across Mexico City.

"We played the global card as well as any multinational corporation," said Mark Spalding, a San Diego environmental lawyer and university professor who advised the two U.S. environmental groups. "It gives me a little faith in democracy and the voice of millions of people."

"Maybe, just maybe, you can win some of these sometimes," Spalding said.

That feeling was echoed by leading Mexican opponents to the project. The saltworks' cancellation represented the first significant victory for Mexican ecologists who had been trying to lessen the effects of the country's rapid industrial and population growth.

"We put all our hope on the fact that things can be different in this country," said Alberto Szekely, a Mexico City lawyer whose firm represents the environmentalists. "We're extremely relieved." <

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Houston Chronicle/February 27, 2000

"Bid for Salt Factory on Mexican Lagoon Leads to Whale of a Fight"
By Dudley Atlhaus

SAN IGNACIO LAGOON, Mexico -- With a chill wind frothing the water's surface, tourists and locals alike peer from their boats, their eyes sweeping the wide but shallow bay for signs of gray whales.

Wintering geese bounce in the shoreline water. Herons, egrets and other birds swoop in solo or by the twos and threes to feed in the shallows. Desert brush shimmies in the persistent breeze. The setting sun paints the distant mountains across the lagoon a mellow gold that slowly darkens to an angry maroon.

And then come the whales: Spouts of mist shoot 10 feet from the sea's surface. A portion of an animal's back glances briefly from the water, then disappears again. A tail rises here, a fin over there. The upper half of a whale, 15 feet of flesh, shoots like a vertical pillar of stone from the dark water as the animal scans its surroundings.

This protected place, tucked about halfway down the Pacific Coast of Mexico's Baja California peninsula, is the last untarnished winter refuge of the gray whale, a once-endangered mammal that journeys to these southern waters each year from Alaska to mate and give birth.

For six years now, a company jointly owned by the Mexican government and the Japanese industrial conglomerate Mitsubishi has proposed to build a sprawling salt-producing facility on the shore of the lagoon. The project would be the largest of its kind in the world.

And, for nearly as long, a sometimes unwieldy alliance of local fisherman, Mexico City intellectuals and lawyers as well as several well-funded U.S. environmental groups have beaten back the effort. They fear the project will damage the whales' habitat and bring the demise of a rural way of life.

In the process, the proposed saltworks has been caught up in public wrangling. It's all part of a changing Mexican landscape in which citizens' groups, sometimes with the aid of international counterparts, have elbowed their way into an expanding circle of political players.

"The country has never had this kind of open debate," says Joaquin Ardura, the technical director of the salt company, Exportadora de Sal, known as ESSA. "It's something new. These are all steps toward more open politics."

Now, ESSA officials say, the company will make another try at getting government approval for the San Ignacio Lagoon project soon, perhaps within the next few weeks. The new proposal will include enhanced environmental safeguards for the whales, Ardura says.

While the Mexican authorities have sided with the project's opponents in the past, environmentalists say this time may prove otherwise.

"This year will be decisive," says Homero Aridjes, the Mexico City poet and environmental gadfly who first marshaled Mexican and foreign opponents for protests against the proposed facility. "Sometimes governments approve unpopular projects during a president's last year in office."

President Ernesto Zedillo, who railed against environmentalists and other "anti-globalization" citizens' groups at last month's convention of government and business leaders in Davos, Switzerland, leaves office in December. He will be replaced by the winner of the July 2 presidential election.

In his Davos speech, Zedillo argued that economic development, led by industries like the ESSA saltworks, offer poor countries such as Mexico a chance to become prosperous. He said that only when the countries become more affluent can they afford to worry about things like the environment.

But economic growth brought by the 6-year-old North American Free Trade Agreement, which will drop most duties and other trade barriers between Mexico and the United States and Canada by 2009, has so far largely failed to improve Mexico's threatened environment.

Ardura and other ESSA executives say that the proposed saltworks would bring badly needed jobs to a remote and impoverished corner of Mexico. Citing studies by a host of prominent whale experts that the company has hired, the executives insist that the operation would not harm the whales.

But opponents offer several arguments against the project.

They say that building the saltworks in one of Mexico's most ecologically fragile areas would irreparably harm the gray whales' nursery deep in the lagoon.

They say that industrial development, no matter how carefully planned, would expose one of the most pristine coastlines in North America to population growth and environmental degradation.

They say that allowing development at the lagoon would make a mockery of environmental statements by government officials.

And, they say, if the San Ignacio Lagoon can be developed, any place can.

"This is a most transcendental precedent," says Alberto Szekely, a Mexico City lawyer and career Mexican diplomat who is representing the coalition of environmentalists opposed to the San Ignacio project. "The future of environmental justice will depend on (it)."

The proposed saltworks would occupy 116 square miles of natural salt flats at the head of the San Ignacio Lagoon. The lagoon is part of a whale sanctuary declared by the Mexican government in the 1970s and, as such, is a legally protected area.

The lagoon and a surrounding swath of central Baja are included in the Vizcaino Biosphere Reserve, the largest in Latin America. The biosphere is home to bighorn sheep and a host of other endangered or "threatened" animals and plants.

"That should mean something," says Mark Spalding, a professor of international environmental law in San Diego who is advising the International Fund for Animal Welfare and the National Resources Defense Council, the two U.S. organizations that are largely bankrolling the opposition to the saltworks.

"Does that just go away because someone wants to invest and create a few hundred jobs? The big picture here is environmental policy," Spalding says. "Even if the saltworks by itself had no impact directly, we still have to answer the question of what are the indirect impacts."

Spalding and other environmentalists liken the current effort to stop the saltworks at San Ignacio to the binational opposition against the planned nuclear waste disposal site at Sierra Blanca, in the borderlands of West Texas. The dump proposal was scrapped last year after bitter debate.

Although environmentalists seek to protect dozens of animal and plant species by halting the saltworks, the whale is their most formidable weapon.

"The gray whale is the animal superstar of Mexico," says Serge Dedina, a University of Arizona geographer who published a book this year on San Ignacio. "There is no other animal that has generated as much support."

ESSA has a facility near the village of Guerrero Negro, about 85 miles north of San Ignacio, where it produces salt by pumping sea water into large and very shallow holding tanks in the table-flat desert.

As the sea water evaporates in the desert sun and wind, the increasingly saline residue is pumped into ever shallower ponds until, finally, a thick crust of salt and a solution of brine remains. The salt is collected by large machines akin to road graders, cleaned and loaded on vessels for export.

Although it accounts for only 4 percent of world salt production, the Guerrero Negro facility is the largest saltworks in the world. About 80 percent of the 7 million tons of salt that ESSA produces annually at Guerrero Negro is exported, much of it to Japan. The salt, which is mostly used in industry, generates about $80 million in revenues each year for ESSA.

Because ocean-going freighters cannot dock in the shallow waters at Guerrero Negro, the salt produced there has to first be sent by barge to a nearby island for loading on the vessels.

Once fully operational in 10 to 20 years, the San Ignacio facility would produce about the same amount of salt as Guerrero Negro does now, company officials say.

They say the San Ignacio works would dramatically lower costs because ocean-going ships could load at a nearby pier.

While such salt production is a largely natural process, environmentalists say the noise of the extraction pumps and the brine residue that is returned to the sea have a detrimental impact on the whales and other sea life. They blame brine contamination for the deaths last year of endangered sea turtles near Guerrero Negro.

Company officials point out that nothing grows on the salt flats near the lagoon now and say that the evaporation ponds in Guerrero Negro attract waves of wading birds and other wildlife.

To reduce noise levels, ESSA proposes to use electric pumps at San Ignacio instead of the diesel pumps employed at Guerrero Negro. The salt produced at the new facility would be loaded onto ships from a milelong pier near the village of Punta Abreojos, which is outside the lagoon.

But environmentalist say the saltworks' evaporation ponds could alter the flow of rainwater runoff into the bay. And local fishermen fear that pumping large quantities of water from the lagoon would alter its ecosystem. They also complain that the pier would be built atop prime lobster and abalone fishing beds.

Both the company and the environmentalists have produced conflicting studies on the project's impact, with prominent scientists from the Scripps Institute in San Diego hired by the company concluding that the operation would pose no threat to the whales.

The growing whale population in the lagoons surrounding Guerrero Negro, where salt has been produced since the late 1950s, would seem to bolster that argument.

"I have never seen a whale harmed by the saltworks," says Juan Lopez, who works as a whale-watching guide at Ojo de Liebre Lagoon, which is surrounded by the Guerrero Negro saltworks. "If the salt affects them, then why are they coming here more than any other place?"

Local opponents of the San Ignacio project say that the fate of the whales, although used to rally public support in Mexico and abroad, is not the only issue.

"Maybe the whales won't be so affected by the saltworks," says Manuel Gardea, a university-trained fisheries expert who is a member of a cooperative that fishes the San Ignacio lagoon and runs a tourist camp during whale-watching season. "But (the saltworks) will change the atmosphere here completely."

To remind them of what they fear most, environmentalists and San Ignacio Lagoon residents look to Guerrero Negro.

Raw and ugly, the town looks like mining communities the world over. A single paved street connects ESSA's offices and houses to the main highway, which cuts north through the desert to the U.S. border at Tijuana. Since salt production began here 43 years ago, Guerrero Negro's population has burgeoned from a few hundred souls to more than 13,000 people.

Many of the ESSA employees and their families live in small houses arranged in neat blocks near the headquarters offices. A company store sits across from the main gate of the saltworks.

But the rest of the population lives in thrown-together houses that line the town's dusty and rubble-strewn side streets. Small groceries, cheap hotels, seedy bars and other businesses crowd the main street.

Workers from the saltworks, their clothes worn and their faces lined by the desert sun, share the sidewalks with eco-tourists and U.S. senior citizens who arrive in recreational vehicles.

Like most Baja California communities, Guerrero Negro announces itself miles outside town by the litter that lines the highway. Scattered by the desert winds, plastic bags hang in the cactuses, brush and low trees. Paper, soda cans and plastic bottles pepper the roadsides.

In contrast, Punta Abreojos, where the San Ignacio saltworks would be headquartered, is a sleepy village of humble houses and stores that hasn't changed much since its founding 52 years ago. The town hugs a small cape at the end of a 65-mile-long unpaved road, whose rocks and ruts challenge even the sturdiest vehicles.

Most of Punta Abreojos' 1,000 residents belong to a handful of extended families. People don't lock their doors. The town's fishermen leave all their tackle, including expensive radio gear, in their boats overnight with little concern about thievery.

"There will be more money, but also more crime and more vice," says Marcos Parra, the beefy 44-year-old owner of a small general store across the street from the beach where the village fishing boats are docked. "Everything will change here. That's what progress brings."

To persuade local residents to support the San Ignacio saltworks, ESSA has promised to improve the village's quality of life by spending large sums on local schools, roads and other public works. Company executives claim that more than 200 jobs, many of them going to locals, would be created.

Steady jobs and better schools prove a sore temptation to some who live along the shores of the San Ignacio Lagoon.

"A lot of people here want the project," says Gloria Rousseau, who owns a small general store on one of Punta Abreojo's two main streets. "People are going to benefit. There will be a lot of work. People here don't care so much about the whales, because they don't make money off of them."

But leaders of the Punta Abreojos fishing cooperative complain that the economic advantage of the saltworks for the village will be more than offset by the potential damage to the local fishing areas.

"What good are all of those things if we don't have the products that our families have lived off of for 50 years?" asks Jorge Solorio, 41, the cooperative's president, of ESSA's promises of plenty.

"We see the whole thing as very risky," Solorio says. "We know it is going to affect us."

For now, the fishermen at Punta Abreojos and those all along the shore of the San Ignacio Lagoon see the environmentalists as their best hope for stopping the project. But their alliance with outsiders, especially U.S. groups, makes them increasingly uneasy.

"We aren't foolish. We know that they are using us as a banner," says Manuel Gardea, the fisheries expert.

"But we have a common final objective. We all don't want this project. But for us, the final objectives is that the resources be exploited properly."

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USA TODAY/ January 18, 2000

"In Mexico, Conflict Boils Over Salt and Sea Life"
By Valerie Alvord, Special for USA TODAY

PUNTA ABREOJOS, Mexico -- For as long as California gray whales have migrated from Alaska to Mexico, they have come to the placid lagoon near this fishing village, skirted by salt flats, to mate and bear their young. And as far back as recorded history, humans have mined and traded salt.

These two ancient traditions are colliding in this remote region about 500 miles down the Baja California peninsula, at San Ignacio lagoon.

Environmentalists are accusing a company owned jointly by the Mexican government and Mitsubishi Corp. of sacrificing the delicate ecosystem of the lagoon for salt, a commodity needed in huge quantities for industrial uses.

The company, Exportadora de Sal, S.A. (ESSA), wants to pull water from the saltwater lagoon and flood San Ignacio's barren flats, turning them into evaporation ponds where salt would gradually crystallize. Armed with studies showing that the operation won't hurt the 26,000 California gray whales, ESSA contends the 116-mile network of ponds would actually enhance the environment, transforming the sterile desert into fertile wetlands for migrating birds.

''The lagoon has great value for whales, and that value won't change,'' says Joaquin J. Ardura, administrative vice president of ESSA. ESSA's studies, conducted by scientists from such respected research organizations as Scripps Institute of Oceanography in La Jolla, Calif., have netted few converts.

U.S. and Mexican environmental groups are demanding that the Mexican agency responsible for issuing the permit turn down the project.

There's no guarantee that gray whales, once almost extinct, would continue to use the lagoon, says Mark Spalding, who is spearheading opposition for the Natural Resources Defense Council. The proposal, he says, sets a ''bad precedent,'' and would encourage future development in an ecosystem considered so environmentally important that Mexico previously designated it a bird sanctuary, a biosphere reserve and a U.N. World Heritage site.

''For someone to tell me that this is going to be good for the environment is ridiculous,'' says Sara Wan, chairwoman of the California Coastal Commission, which last week joined about a dozen California cities in urging the Mexican government to deny a permit for the plan. ''Birds will land on any puddle on a golf course. That doesn't make it a good replacement for what's natural. Putting this project in San Ignacio lagoon would be like building an industrial plant in Yosemite Valley.''

Migration patterns

The California gray whales, here called Mexican gray whales, migrate about 6,000 miles from the Bering and Chukchi seas off Alaska in late summer and spend the winter on the coast of Baja. During the summer, the whales feed on amphipods on the ocean's floor. Then they stop eating and begin their trek past Seattle, San Francisco, Los Angeles and San Diego, heading to four Mexican lagoons -- Ojo de Liebre, Guerrero Negro, San Ignacio and Magdalena Bay. There they mate, then return to Alaska. The next winter, they come back to the lagoons to bear their young.

Here in San Ignacio, males swim in circles along the mouth of the lagoon, while females move farther back, into the calm estuary interiors, to give birth and train the calves for the arduous journey north.

Conservation groups in Mexico and the United States have launched an anti-Mitsubishi campaign under the dual slogans, ''Save the Baja Whales'' and ''Don't Buy It.'' They are urging a boycott of all Mitsubishi products and services.

Hundreds of thousands of letters, many of them from schoolchildren, have flooded Mitsubishi headquarters in New York and Japan. And 14 mutual funds have agreed not to invest in any arm of Mitsubishi.

Frustrated corporate officials contend the program is hurting companies like Mitsubishi Motors that carry the Mitsubishi name but have no formal ties to Mitsubishi Corp., a 49% owner of ESSA. And they insist their plans will have no impact on whales.

''It's flat-out dishonest,'' Tracy Austin, spokeswoman for Mitsubishi Corp, says of the campaign. ''This project will not hurt whales, and the environmentalists know it.''

Both sides agree the project would generate 200 jobs and jump-start the rural economy near San Ignacio lagoon with paved roads and other infrastructure. But fishermen in Punta Abreojos, the closest village, have weighed in against ESSA, voting unanimously to oppose the saltworks.

''No matter what the company says, I won't believe them,'' asserts Isidro Arce, 36, manager of the 800-member fishing cooperative at Punta Abreojos. He points to the village school and the water desalination plant as proof that the town of about 1,200 is doing fine without ESSA.

Fishing and whale watching are the only industries here. The fishermen know where to find whales, which begin arriving in December and leave in May.

On a recent day, signature whale spouts could be seen every 30 or 40 seconds across the lagoon. The sprays hung in the air, then burst into rainbow prisms as they fell apart in the sun. White-marked fins flipped in the air every two or three minutes, and whales rolled in the water and popped up their gray and white heads.

Jorge Solorio Espinoza, 36, a fisherman, says he doesn't want to co-exist with a salt plant.

''Many people will come here, and the mentality will change,'' he contends. ''There will be more people and more workers, and the people will fish. The company will take sea water and then return the brine to the sea. The water will be contaminated, and the fish will die.''

Statements like these frustrate Juan Bremmer, director general of ESSA, who oversees the company's existing salt-harvesting operation at the Ojo de Liebre lagoon near the town of Guerrero Negro, about 100 miles north of San Ignacio.

Guerrero Negro produces 20,000 tons of salt a day, or 7.5 million tons a year, just what the company hopes to produce at San Ignacio. It brings in $80 million in gross revenue and generates 1,000 jobs -- all at no cost to the environment, Bremmer says. The town has half a dozen schools, a junior college, a hospital, soccer fields, a tennis court and several churches. Ninety percent of the town's approximately 12,000 residents have chlorinated water, and their bathrooms are hooked up to sewers.

'Salt is good for Guerrero Negro,'' Bremmer says. ''And Guerrero Negro is good for the environment,'' he insists, pointing out osprey and peregrine falcons nesting on poles installed by ESSA to keep the birds high above the jaws of hungry coyotes.

Impact studies

Other studies show that despite the noise of diesel engines and the obstruction of barges crisscrossing the Ojo de Liebre lagoon, gray whales have continued to migrate there in record numbers. According to ESSA, statistics show whales are actually choosing Ojo de Liebre -- where salt is produced -- over the pristine San Ignacio lagoon.

Environmentalists dispute the company's interpretation of the statistics.

ESSA has commissioned these studies for an environmental impact assessment that is expected to be released as soon as this month and will form the basis for the company's permit application. Among the findings, the company says, are that taking water from San Ignacio lagoon will not decrease the salinity or the temperature of the water and that leftover brine won't contaminate the sea if it's diluted before it's discharged.

San Ignacio is the perfect spot for a salt-harvesting operation, Bremmer says. ''You can't do anything else with (the land),'' he says.

Conditions for crystallizing salt are rare in nature. Salt flats, sea water and warm perennial winds are needed in close proximity. At San Ignacio, the conditions are more than ideal, they are perfect -- even better than at Guerrero Negro where the wind blows cold off the ocean. At San Ignacio, the wind warms over desert before hitting the lagoon. Warmth speeds evaporation.

There are many in the area who see the economic implications. ''We need sustainable development as a legacy for our children,'' says Maria del Carmen Trujillo, a travel agent who belongs to a citizens group that favors the project.

Brought in to evaluate the program, U.N. investigators called the San Ignacio lagoon an area of ''superlative natural features of exceptional beauty.'' By contrast, they call Guerrero Negro an ''urban development,'' resulting ''from the presence of the saltworks.''

Though acknowledging that evaporation ponds at Guerrero Negro provide important habitat for birds and that whales have continued to thrive, the report also sounds warnings. The proposed saltworks, it says, ''would imply the transformation'' of the unique and beautiful landscape surrounding San Ignacio lagoon.

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Associated Press Newswires/January 10, 2000

"Mexico salt factory opposed by California Coastal Commission"

Environmentalists claim a plan to build a salt factory in a Pacific gray whale breeding and birthing lagoon in Mexico will endanger the animals. The company says it's safe and critics should wait for results of a two-year study before taking a stand.

The California Coastal Commission is expected to adopt a resolution Tuesday asking Mitsubishi Corp. to withdraw plans for the factory at Laguna San Ignacio, about halfway down the west side of Baja California, said Sarah Christie, the agency's legislative coordinator.

The commission joins the international debate over potential danger to the Pacific gray whales , which are currently passing through Southern California waters on their annual migration between Mexico and Alaska.

The Pacific gray was removed from the endangered species list in 1994, and a survey last year estimated the population at more than 26,600, said Joe Cordaro, a wildlife biologist with the National Marine Fisheries Service.

Environmental groups say the $120 million project jeopardizes whales and other wildlife. Mitsubishi, a United Nations scientific body and others say the operation is safe and whales won't be harmed.

Mitsubishi asked the Coastal Commission to postpone Tuesday's vote. Peter Douglas, the commission's executive director, said Monday he would ask the panel for a continuance.

Results of a two-year study by Mexican environmental authorities and an independent scientific team was expected in coming months, Mitsubishi vice president Stephen Wechselblatt said.

"There is a lot of misconception about the proposal. We're not going to make any decision on that until the science is in," Wechselblatt said.

Dozens of government bodies, including the Los Angeles City Council and the San Francisco County Board of Supervisors, passed resolutions in opposition to Mitsubishi's plans.

In a joint venture with the Mexican government, Mitsubishi wants to suck 6,000 gallons of seawater per minute from Laguna San Ignacio and funnel it into a 116-square-mile spread of evaporation ponds.

Freighters would tie up to a new mile-long pier at the lagoon's entrance to load the salt, most of it destined for Japan for industrial processes.

Research biologist John Calambokidis said the gray whale population has increased with the presence of the Laguna Ojo de Liebre salt factory to the north of the proposed Mitsubishi site.

But he noted the proposed Laguna San Ignacio factory is larger.

"It does pose a risk. It's just difficult to assess that risk," Calambokidis said.

"You cannot go there and not understand the need to protect the breeding grounds for the gray whales ," commission chair Sara Wan said, adding the Laguna Ojo de Liebre is an environmental disaster and "clearly doesn't serve the same breeding function as Laguna San Ignacio."

Mark Spalding, a visiting faculty member at the University of California, San Diego, said gray whale populations are decreasing elsewhere in the world and Laguna San Ignacio is a whale sanctuary and a World Heritage site.

"It's development in a national park," he said. "This gray whale stock on our side of the Pacific is the only stock left. I don't think it's worth the risk."

Pacific gray whales can weigh 40 tons and reach 50 feet in length. They travel 11,000 miles on their annual migration, arriving in Southern California waters southbound in December and January, and then again in February and March as they retrace their path north back to Alaska.



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