Breaking years of silence, the government conceded that destruction of the Amazon rainforest reached record levels in 1995, before leveling off in the last two years. In 1995, deforestation nearly doubled to 11,621 square miles, up from 5,958 square miles in 1994, a 95 percent increase. Though rates have dropped in the last two years, they are still higher than in 1994, a period when it was commonly believed that deforestation had slowed significantly in the magnificent rainforests. The government stonewalled on releasing this data for years, claiming that it didn't have the money to analyze satellite photos.

Concurrently, the state of Amazonas halted new logging projects in the region, claiming that logging companies have failed to follow forestry laws and are refusing to pay fines. Most of the affected concessions involve Asian logging companies that invested $100 million in the region in 1996 alone. The role of Asian logging companies in Brazil's Amazon came under fire last year when a federal congressional committee investigated the continuing destruction of the rainforest caused by such companies. The congressional report found that regional government functionaries were offering incentives to Asian companies to set up logging operations. Although no figures have been prepared to document the specific impact of the Asian logging companies, they were fined in excess of $1 million for logging violations last year.