Ethanol production link to modern slavery confirmed?

This is an extract from an August 2008 U.S. diplomatic cable 08SAOPAULO432 (coordinated with and cleared by the Embassy in Brasilia) speaking of forced labour and posted on Wikileaks this month:

1.(SBU) Brazil's high profile, high-tech ethanol industry has fallen under an international spotlight for alleged use of forced or slave labor to harvest sugarcane. The press focus on sugarcane has drawn attention away from other sectors which may be at higher risk for forced labor/slave exploitation (cattle ranching, charcoal production, the sex industry). Top NGO labor experts have stated that while isolated problems remain in the sugarcane industry, the situation is improving and these other industries should be of more concern. Singling out or over-emphasizing sugarcane could play into the hands of some in the GOB who allege that U.S. TIP policy is only a cover to attack Brazil's flagship ethanol industry (Ref B). Mission suggests a broad anti-TIP strategy that enlists the large, more advanced sugarcane producers as allies in the fight against forced labor. Our efforts should also emphasize that the USG commitment to TIP is global in scale and rooted in our commitment to human rights. End Summary. Sugar is (Again) King

2.(U) Brazil has been a sugar producer for centuries and the development of ethanol as a promising green fuel has lent new energy to this key industry. The country's contemporary sugar industry is worth $40 billion, or 2.35 percent of GDP. It directly employs 1.1 million people, and its prospects for growth are tremendous (Ref A). Understandably, Brazil's leaders take great pride in their country's world class status as a leader in green fuels production. The Evidence for Forced Labor/Slavery

3.(U) Reports of forced or slave labor in sugarcane harvesting have marred the image of Brazil's ethanol industry. In May, the State Department's Trafficking in Persons (TIP) report characterized forced labor on sugarcane plantations as a growing trend. Days later, Amnesty International echoed the TIP report's assessment. With Brazilian ethanol production for export on the rise, the issue has caught the attention of the international press, particularly in the U.S. and Europe (Ref A).