The European Parliament,

A. having regard to the increase of oil exploitation over the last twenty years in the Ecuadorian rainforest by Conoco, Arco, Unocal, Occidental, City, British Gas, Parker Constructore, but mainly by Texaco,

B. aware that wise use of natural resources is both necessary and desirable to contribute to the development of Ecuador,

C. concerned, however, that continued exploration and extraction along existing exploitation methods by oil companies is not contributing to sustainable development and can do serious damage to the region,

D. whereas deforestation and contamination of the hydrological system with oil as a result of petrol exploitation is becoming a threat to the very survival of indigenous cultures of the region of the North Oriente (the land of the Siona, Secoya, Cofan, Quiscuah and Huaorani) and will soon also affect the South, (the province of the Pastaza where the Quischua, Shiwiar and Achuar nations live) if the oil companies receive consent from the Ecuadorian government to commence exploitation and if the World Bank goes ahead with a 100 million dollar loan to develop oil infrastructure,

E. recalling the Sarayacu Agreement of 7 May 1990 between the government of Ecuador and Indigenous Federations which settles legalisation of indigenous territory and compensation of damage suffered by Indian communities,

F. recalling also the statement of the Organization of the Huaorani People (ONHAE) whose territories are already suffering from the effects of oil exploitation and therefore have denounced the contamination caused by oil companies which destroys the ecological balance,

G. concerned at the constant clashes in the Indian territories around Sarayacu and the difficulties which have arisen with regard to finding a negotiated settlement to the conflict,

H. concerned about the reported effects of the conflict around Sarayacu, which include increased incidence of disease, difficulty in finding food and forced migration,

I. having regard to its position that no financial aid be granted for development projects which may damage the situation of the indigenous populations or the environment,

1. Requests the Ecuadorian authorities and the Indigenous Federations to resume negotiations, implement the Sarayacu agreements and resolve the conflicts by peaceful means;

2. Requests the Ecuadorian government to recognise the inherited rights of their indigenous peoples to land they have lived on for centuries and to impose a moratorium on oil prospecting and exploitation until this has been achieved;

3. Requests the World Bank also to consult the local population in their planning procedures and conduct a study in the Pastaza region on the effect of oil exploitation on the local people and the environment before any financial support is granted to develop the necessary infrastructure;

4. Requests its Interparliamentary Delegation for Relations with South America to study further the situation in the Pastaza region during its next visit to South America;

5. Instructs the Commission to investigate whether, also in view of 1992, special projects could be sponsored for indigenous peoples in Latin America and in particular in Ecuador;

6. Instructs its President to forward this resolution to the Commission, the government of Ecuador, CONFENAIE, the pan-Amazonian umbrella organisation that has become the primary mechanism for the defence of indigenous rights, the OPIP, organisation of Indigenous Peoples of the Pastaza and the World Bank.