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Greetings! My apologies for not sending you an update on the Futaleufu situation before this. Your past donation helped the residents of Futaleufu come closer to keeping their river dam-free, and enabled the effort here in the US to work with them. Thank you.

In late 1995 and early 96 a number of things occurred that could affect the future of the Rio Futaleufu. In October Chile deregulated their electricity industry, and a consortium of three US utility groups threatened future hydro projects in Chile with a proposal to build enough natural gas lines from Argentina to cover most all of the country's electricity needs. This led to a drastic decrease in Endesa's stock value and put a hold on future hydroelectric plans for all Chilean power companies. This, as well as a lack of financing, has put the Rio Futaleufu on the back burner for the electricity companies, giving anti-dam interests time to plan and fund raise.

The Governor of Region X (that which Futaleufu is part of) announced publicly that he is against the proposed damming of the Futaleufu, adding much needed political support to the locals' efforts. He would like, instead, to promote tourism in the area. In an effort to teach the Futaleufu locals how to benefit from future tourism, some rafters and fly fishermen recently held a class for those residents of Futaleufu who were interested in learning the basics of rafting and fishing. The class turn out was 18, and was reportedly quite successful. The locals would like to promote float trips and fishing trips on the Rio Espolon, a class II tributary of the Futaleufu, along with horse riding trip, hikes, and other potential tourist pursuits in the area. They will need help attaining the gear necessary to run such trips, as well as financial help with marketing.

In March of this year Sergio Nunio, Chile's "Jacques Costeau", produced and aired a program featuring the Futaleufu on national prime time TV (the show had the highest viewer rating for Chile that evening). This was a big step toward raising Chilean awareness of the Futaleufu area and was a statement that Chileans are concerned about what happens to their natural resources - even in parts of the country they may never visit. Around this same time there was also an insert in a Sunday edition of the major Santiago newspaper which was devoted to the Futaleufu. Furthermore, a group has recently been formed in Santiago to work on the protection of the Futaleufu and to form a proposal for a political process in Chile which would be similar to our Wild and Scenic Rivers System.

In June there was an Ecotourism Conference in Santiago (the first of its kind in Chile). This was a huge landmark in Chilean environmentalism, and showed that the government is taking an active interest (heretofore unheard of) in the future of Chile's natural resources. It was important that all environmental concerns in Chile had representation there, and CODDERFU did manage to be present. FutaFund is seeking funding to recuperate CODDERFU's booth costs and marketing and travel expenses.

A local medic, Armando Gacitua, has taken on the role of leading the anti-damming effort in Futaleufu. He doesn't have a vehicle, and travels by horseback when he needs to communicate with Santiago or the US. He is well educated and motivated and has laid out solid steps of action toward saving the Rio Futaleufu. For example, he wants to implement training programs to educate his neighbors on Greenhouse Farming so they can raise crops in the winter which would sell to tourists in the summer. He is trying also to bring programs on economic development methods to the area. A local radio program that covers topics on environmental education, the importance of preserving and protecting natural resources, and the advantages of eco-tourism was created and airs weekly.

Things are looking a bit brighter for the Futaleufu and, with the recent developments slowing down the electric developments, now is the time to be pro-active in the effort to save this river. It is fortunate that instead of funding legal fees to battle the hydro project, donations can be used for educational and promotional purposes. If the Futaleufu becomes a well-managed, revenue building tourism resource, the Chilean government (and public) will be much more concerned about it.

Armando has very limited sources of income, and FutaFund is seeking donors to contribute to his sponsorship. The Chilean efforts' existence is reliant on US funding, and every little bit makes a huge difference. Your donation will give Armando the means to work towards keeping the Futaleufu river in its present free-flowing state, and your support gives the Futaleufu residents both inspiration and confidence.

Thanks again, and enjoy the rest of your summer!

Sincerely,

Tamara Robbins
Director

Rivers of Chile: Your Comments Needed Now. To those who have been alarmed by the environmental damage being done to the rivers of Chile (most notably the Bio Bio and the Futaleaufu), an opportunity now exists to make your voice heard. Chile is being considered for entry to NAFTA. Between now and April 28, the US Trade Representative is accepting comments on issues affecting trade with Chile.

Chile has been notorious for its lack of adequate review and environmental controls over various kinds of development. This can affect the fairness of trade between Chile and the US. The huge hydroelectric projects now being built on the Bio Bio and planned for the Futaleaufu, for example, will produce cheap energy allowing Chile to cut prices on industrial and agricultural goods exported to the US. The environmental cost, however, is high, especially in terms of lost of freshwater biodiversity, the loss of valuable tourism attractions, and the ruthless displacement of indigenous populations.

If you would like to comment on this issue, send your comments (20 copies required) to:

Carolyn Frank, Ex. Sec., Trade Policy Staff, Office of the US Trade Representative, 600 Seventh St, NW, Wash, DC 20506