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TAIWANESE COMPANY AGREES TO CLEAN UP TOXIC WASTE DUMP

By Chris Fontaine, Associated Press

PHNOM PENH, Cambodia, 25 February 1999 --Taiwanese petrochemical giant Formosa Plastics Corp. agreed Thursday to clean up a nearly 3,000-ton toxic waste dump in Cambodia within 60 days, a Cambodian government negotiator said. A multi-million-dollar compensation package demanded by Cambodia for environmental damages was not included in the disposal agreement, but government negotiator Om Yentieng said the deal did not rule out future negotiations for compensation.

"Too much attention has been paid to compensation,'' Om Yentieng said. ''We need to send the waste back, and the compensation issue has delayed its export. Everything else can be delayed pending future negotiations, but shipping the waste out cannot be delayed.''

The waste described as ''brine sludge contaminated with mercury'' was discovered by environment officials in December in a crude dump about 10 kilometers (6 miles) outside the southwestern port of Sihanoukville. A dock worker died soon after cleaning the hold of ship that transported the waste from Taiwan, sparking hysteria and rioting. Four more people were killed in traffic accidents as panicked residents fled the town.

A sixth death a man who rummaged through the dump and slept on the sacks the waste came in has also been linked to the waste.

Despite initial denials from Formosa that the waste is toxic, multiple independent tests determined that it contains dangerous levels of the poisonous metal mercury.

Formosa agreed in the deal to pay for medical treatment for victims, but only after joint diagnosis by physicians hired by the company and the government determines poisoning.

The deal was criticized by a lawyers' group representing villagers living near the dump site who may have been poisoned by the mercury or other toxins in the waste.

"This is an old labor compensation trick ... that is a way to try to reduce liability,'' said Michele Brandt of Legal Aid of Cambodia. ''An independent, neutral physician should provide a neutral diagnosis.''

Legal Aid also blasted Formosa's continued refusal during negotiations to discuss compensation for environmental damages.

''Formosa Plastics Corp. should be responsible for providing compensation for all non-medical and medical damages as a result of the export of toxic waste into Cambodia,'' the group said in a statement.

Formosa President Lee Chih-tsun has previously brushed off questions on compensation, saying that the company had a contract with an agent to dispose of the waste and had acted legally.

If Formosa does not remove the waste from Cambodia and clean up the site by the 60-day deadline, it faces cash penalties of dlrs 1,000 a day for the first 15 days, Om Yentieng said.

The penalty increases by dlrs 1,000 every 15 days, reaching a maximum of dlrs 5,000 a day.

The cleanup will be supervised by a third party to ensure it is done to international standards. Om Yentieng said Cambodian workers may be used by Formosa in the cleanup, but the firm will be required to provide them with medical insurance.

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