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			 A clearing dotted with dozens of stumps now marks where lush 
			tropical forest once stood outside his farmhouse. To one side, more 
			than 300 logs were stacked, waiting to be removed. 
 "I was told that whether I accepted or not, they were going to do it 
			anyway ... So I accepted," said Diallo.
 
 China's hunger for rosewood has seen demand for African timber 
			explode. The hardwood is used to make antique-style furniture, which 
			is exported to North America and Europe and is popular in China with 
			its growing middle class.
 
 Forest products from Africa make up about 4 percent of China's total 
			imports. A report released on May 8 by the Africa Progress Panel, 
			chaired by former U.N. Secretary-General Kofi Annan, said Africa is 
			losing about $17 billion every year because of illegal logging 
			activities.
 
 In Guinea-Bissau, a coup-prone West African nation, Chinese demand 
			has fuelled illegal logging with the alleged complicity of senior 
			military and politicians, according to present and former Guinean 
			forestry officials, and a senior U.N. official.
 
 The sources declined to publicly name the senior Guinean figures 
			they said were involved in the logging trade.
 
 
             
			They said private operators, government and military officials would 
			typically obtain export licenses and form partnerships with Chinese 
			middlemen. Attempts to track down Chinese companies the sources said 
			were involved were not successful in China or Guinea Bissau.
 
 A senior Guinean forestry official said his department could not 
			prevent illegal logging because of the involvement of senior 
			government officials and high-ranking military officers.
 
 "The legislation says only sawn and processed timber can be exported 
			but laws are violated because thousands of logs are exported to 
			China in containers," Seiti Gassama, deputy director of forestry, 
			told Reuters.
 
 Exporting logs without processing them in Guinea-Bissau means 
			exporters do not have to invest in expensive machinery.
 
 Spokesmen for the army and government declined to comment for this 
			article.
 
 TRANSIT POINT
 
 The former Portuguese colony was already crucial as a transit point 
			for South American cocaine into Europe before a military coup two 
			years ago plunged it further into chaos. A weak transitional 
			government, tasked with guiding Bissau to presidential elections, 
			allowed logging to flourish.
 
 Timber exports to China from Guinea-Bissau jumped from 80 cubic 
			meters in 2008 to more than 15,000 cubic meters last year, according 
			to data compiled from Chinese customs figures by Global Timber, a 
			U.K. advocacy group.
 
 Hua Chunying, a spokeswoman for China's Ministry of Foreign Affairs, 
			declined to comment on Guinea-Bissau, but said China opposed illegal 
			logging.
 
 "We resolutely oppose illegally cutting down timber and related 
			exports to China, and we support a regulation strategy for forestry 
			resources that is mutually beneficial and contributes to sustainable 
			development," Hua said in Beijing.
 
            
			 
			Jose Ramos-Horta, the U.N. special representative in Guinea- Bissau, 
			said the illegal logging boom was a consequence of a decline in 
			cocaine trafficking after a U.S. sting operation last year that 
			unsuccessfully targeted army chief Antonio Indjai. 
			Indjai escaped arrest by the U.S. Drug Enforcement Administration 
			because he did not accompany other Guineans suspected of drug 
			offences on board a yacht off the coast where the sting took place, 
			sources familiar with the operation said. Indjai is accused by the 
			DEA of conspiracy to smuggle drugs and supporting FARC, a Colombian 
			rebel group. His spokesman last year denied any crime had been 
			committed.
 "The drug trade has reduced considerably and those who were behind 
			it needed a new source of income," Ramos-Horta, a Nobel Peace Prize 
			winner, told Reuters. A presidential election on May 18 meant some 
			politicians were in need of funds, he said.
 
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			Ramos-Horta said he had inquired into the logging business and 
			visited localities where forests had been decimated.
 "The last six months, just from this empty lot next to the U.N. 
			Mission office in Bissau, hundreds of containers of logs were there 
			and have all been shipped out," he said.
 
 Part of the problem is that, in one of Africa's poorest and most 
			turbulent countries, there is no administration capable of enforcing 
			laws. In the last 20 years, Guinea-Bissau has witnessed a civil war, 
			two coups, an attempted coup and the assassination of a president by 
			the army.
 
 In the run-up to the presidential vote last Sunday, both main 
			parties traded accusations of illegal logging and denied involvement 
			in the trade.
 
 SHIPPING CONTAINERS
 
 In the village of Sintchan Companhe, in the coastal province of 
			Quinara south of the capital, a Reuters reporter watched men pack 
			unprocessed logs into shipping containers on two trucks under the 
			eye of a Chinese supervisor.
 
			The Chinese man, whom the other workers identified as their boss, 
			declined to comment on where the logs were being taken.
 Gassama said 61 new logging licenses have been issued this year. In 
			2012-2013, 15 licenses were granted, according to a document from 
			the Directorate General of Forests and Fauna seen by Reuters.
 
 Forestry department documents seen by Reuters, one dated December 
			2013 and others undated, showed Chinese companies had partnered with 
			local firms who claimed to be processing the wood locally in order 
			to obtain export licenses. The Chinese companies were not named.
 
 Mamadou Aliu Camara, governor of Quinara province, said Chinese 
			operators, their local partners and middlemen were using various 
			means to circumvent the ban on exporting raw timber.
 
			
			 
			"One company is using a license owned by a plywood company, FOLBI, 
			that has not been operational for eight years, to export logs that 
			are not even passing through the plant," he said, without naming the 
			company. "They take logs directly from the forest and ship them to 
			China." 
			The government documents seen by Reuters listed FOLBI and SOCOTRAM 
			as two of five local companies subcontracting logging concessions to 
			Chinese firms. Both firms, which ceased timber processing operations 
			several years ago, declined to comment.
 At its height, FOLBI employed 600 people. But the machinery that 
			once produced plywood was in ruins, covered in cobwebs and dust.
 
 Quennce Tchantchalan, 42, was formerly employed by FOLBI as a 
			machinist. He and a group of friends now hang around the yard to 
			guard what is left of the machines. FOLBI's owner told him he was in 
			business with Chinese middlemen, Tchantchalan told Reuters.
 
 "The owner has a contract with the Chinese. They sometimes use the 
			yard to stock wood before shipping them to China," Tchantchalan 
			said.
 
 (Additional reporting by David Lewis in Dakar Megha Rajagopalan in 
			Beijing; Editing by Daniel Flynn and Giles Elgood)
 
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