Finnish daily financial newspaper TALOUSSANOMAT

4 February 1998

The original article written by Ms Mari Manninen

(on the cover:)

The president of the Worldwatch Institute criticizes Finnish forest companies:
UPM-KYMMENE MUST BE CAREFUL WITH COOPERATING WITH APRIL

UPM-Kymmene should carefully reconsider its cooperation with the Indonesian wood processing company APRIL. This is the opinion of Lester R. Brown, president of the highly respected Worldwatch Institute. According to Brown Indonesian forest companies are guilty of immoral cuttings and partly to blame for the forest fires in Indonesia. He fears that the Indonesian rainforests have already been lost.

Finns being slow at forest certification makes Brown also doubtful. He suspects that the Finnish industry will lose both market and money because of this.

(inside:)

According to the president of the institute forest industry on the whole may lose market
THE WORLDWATCH INSTITUTE RECOMMENDS UPM-KYMMENE TO WITHDRAW FROM ITS ALLIANCE WITH APRIL

The Worldwatch Institute, which is famous for its State of the World reports, criticizes UPM-Kymmene's cooperation with APRIL.
- Cutting of forest by companies in Indonesia has been very irresponsible. I would carefully consider before tying myself to companies which are much responsible for the events in Indonesia, warns Lester R. Brown, the president of the institute. Brown reminds that the environmental image is a more and more important part of  companies' marketing and profitability.

The State of the World 1998 report was published yesterday in Finnish. It emphasizes that countries like Indonesia which are susceptible to corruption are "vulnerable targets for resident and foreign companies who are looking for cheap wood". The report also says that president Suharto regularly directs money from the reforestation fund to other fields such as building aeroplanes and even paper mills.

The forest fires were caused by loggings

UPM-Kymmene and APRIL have made a production and marketing union for fine papers. They are also planning to exchange shares in the spring of next year. Several international and Finnish environmental organizations accuse APRIL of destroying rainforests and violating human rights. Forest cuttings have also been considered the cause of the forest fires in Indonesia. Brown agrees with the opinion.     
- Fires of this kind do not occur in healthy rainforests.

Similar fires are probable during the following dry season. Cuttings have reached such a level that it may be impossible to save the rainforests. The World Bank has estimated that in Indonesia the cuttings exceed the sustainable yield by 50 percent. On the other hand, the State of the World report says that the state only collects one fifth of its potential forest income in Indonesia due to underpricing.
- Just like small farmers can sell a few trees when they are short of money governments often resort to their forest resources in order to solve financial problems, the report states.

Sweden gets the points for the image

Brown also expresses his disapproval about the fact that Finland has given its neighbouring country Sweden a head start in certifying forests. Sweden was recently the first country to receive a national Forest Stewardship Council (FSC) standard. If I was working for forest industry I would rather be leading the development than following behind. The Finnish forest industry may loose both market and income if it keeps on staying behind, Brown estimates.

FSC, which is praised in the State of the World report, guarantees the consumer that trees from standardized forests have been ecologically grown and transported and that the industrial products have been processed in an environmentally appropriate way. There are already companies and municipalities in Central Europe, Finland's main export area, which are under contract to by only forest produts with an FSC marking.

Central Union of Agricultural Producers and Forest Owners (MTK) has criticized the standard because applying it to the mainly privately owned Finnish forests is difficult. It is MTK's opposition that has prevented the FSC standard from making a breaktrough in Finland.

"The medal and what Ahtisaari has said are in contradiction"

President of the Worldwatch Institute Lester R. Brown visited [Finland's] president Martti Ahtisaari a couple of years ago to discuss environmental issues. That is why Brown is surprised that Ahtisaari gave a medal to the Indonesian forest minister.     
- Ahtisaari even showed me the State of the World reports in his bookself. Giving the medal does not agree with our discussion and the concern Ahtisaari expressed for the environment. I am too confused to comment this.

(under the picture:)

According to the Worldwatch institute the enormous forest fires in Indonesia were caused by senseless cuttings which UPM-Kymmene's partner APRIL has also taken part in.