Tell Pacific Rim to Drop the $77 Million Lawsuit Against El Salvador!

Mon Oct 12 11:52:04 EDT 2009

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Action Alert

October 12, 2009

In the department of Cabañas, El Salvador, communities have been protesting
against a proposed gold mining project by Pacific Rim, a Canadian mining
company. Their concern? That cyanide used to extract gold would poison El
Salvador’s largest river, the primary source of drinking water for millions
in the country. Their protests were strong enough to shut down the El Dorado
gold mining site.  In 2007, the Ministry of Environment denied Pacific Rim’s
permit to start drilling for gold.

But Pacific Rim is not listening. Instead, the company is suing the
Salvadoran government for $77 million for “lost profit” (read more about the
Pacific
<http://www.cispes.org/index.php?option=com_content&task=view&id=496&Itemid=
28>  Rim lawsuit). How can they do this?!  The U.S. Central American Free
Trade Agreement (CAFTA) protects the “rights” of corporations over national
laws that safeguard workers and the environment. Chapter 10 of CAFTA gives
private foreign investors the “right” to sue for “profit infringement” and
extort millions of dollars from governments like El Salvador.  

Since the U.S. Congress voted to approve CAFTA in 2005—by a mere two
votes—the cross-border resistance has continued. The Salvadoran people have
successfully mobilized to block the privatization of health care and water
and other policies tied to this “free” trade agreement.

But death squad violence in El Salvador has resurfaced since the passing of
CAFTA, specifically targeting trade unionists, resource rights activists and
members of the left political party, the FMLN (Farabundo Martí Front for
National Liberation). In June 2009, the anti-mining struggle turned deadly
when outspoken community leader Marcelo
<http://www.cispes.org/index.php?option=com_content&task=view&id=610&Itemid=
28>  Rivera was tortured and killed. The right-wing Attorney General has
refused to investigate this as a political assassination, or to investigate
numerous death threats, kidnapping and assassination attempts in Cabañas.

Pacific Rim’s lawsuit could devastate El Salvador’s economy, taking state
funds out of necessary social programs like farming, health care and
education and putting it in the pockets of corporate shareholders in North
America. Call CEO Thomas Shrake and demand that Pacific Rim withdraw its
lawsuit and respect the will of the Salvadoran people by closing the mines!

CALL Pacific Rim Headquarters today -- from the U.S. 1- (888) 775-7097 or
from Canada (604) 689-1976 -- and leave a message with the corporate
secretary (see call script on back of page).  

You can also email Pacific Rim directly <mailto:general at pacrim-mining.com> .

For more information on local actions and the anti-mining struggle, please
visit www.cispes.org <http://www.cispes.org/> :

*         Find out about actions happening this week in U.S. and Canadian
cities near you

*         Check out recent CISPES Updates and Action Alerts 

*         Read the CISPES lawsuit info-sheet “CAFTA’s Golden SWINDLE”

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Use the following script to contact Thomas Shrake, CEO and President of
Pacific Rim:

To call from the U.S. dial 1- (888) 775-7097, or from Canada (604) 689-1976,
then leave a message for the corporate secretary:

1. Hello, I am calling to urge President and CEO Thomas Shrake and the Board
of Pacific Rim, to drop the lawsuit you filed against the government of El
Salvador.  Local and national civic organizations have been actively
opposing the El Dorado mine since 2004.  Salvadoran environmentalists,
economists and social movement leaders have roundly rejected the mine, and
now this outrageous lawsuit, on a number of grounds.

2. Choose 1 or 2 of the following points.

*        Environmental: Salvadoran community activists and environmental
organizations have consistently denounced the devastating environmental
impacts that would result from the El Dorado mine. The mine would
contaminate the river that serves as the primary source of drinking water
for the majority of Salvadorans and use over 10,000 gallons of water a day.
All this in a country where 30% of the rural population lacks access to
potable water. 

*        Trade justice: The Central American Free Trade Agreement (CAFTA),
the basis for Pacific Rim’s lawsuit, was widely opposed throughout the U.S.
and Central America. Citizen advocacy groups in El Salvador charge that
CAFTA is unconstitutional and have brought the case before their Supreme
Court.  As CAFTA’s legitimacy itself is in question, Pacific Rim’s lawsuit
appears even more bogus.

*        Economic: According to economic experts, the mine provides no
long-term economic benefit for El Salvador, only for Pacific Rim. The gold
mining industry contributes only 0.04% to El Salvador’s GDP while foreign
companies like Pacific Rim plan to take away millions in profit. 

*        Human rights: I have heard first-hand accounts of horrible
political violence against community members in Cabañas who have actively
opposed the El Dorado mine. Even if Pacific Rim did not directly instigate
this violence, the murder of Marcelo Rivera, and the attempted
assassinations of Father Luis Quintanilla and Ramiro Rivera are undoubtedly
a result of Pacific Rim’s presence. The fact that people are risking their
lives to fight against El Dorado shows just how unwelcome gold mines are and
how disgraceful this lawsuit is. 

*        Sovereignty: This lawsuit infringes upon the rights of sovereign
governments to protect the interests of their people as they see fit.  Each
country has the right to determine how its land is used, as well as the fate
of its natural resources. Your lawsuit tramples on those rights.  

3. It is shameful that Mr. Shrake is willing to wreak profound economic
damage on an entire nation for the financial gain of his company. These
lawsuits will hit the poorest people in El Salvador the hardest. If Mr.
Shrake has his way, much-needed funding for social programs like health
care, food and housing will go directly into the pockets of your
shareholders.

For these reasons, I again urge you to withdraw the disgraceful lawsuit that
Pacific Rim has filed against El Salvador.

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Â© 2009 CISPES - The Committee in Solidarity with the People of El Salvador
CISPES National Office | ph. 202-521-2510 | 1525 Newton St. NW, Wash. DC
20010| cispes at cispes.org

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