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President Dilma Rousseff on Friday vetoed portions of Brazil's new Forest Code, a bill drafted to open big areas of protected forests to large-scale agriculture. The decision by Ms. Rousseff, which removes 12 articles from the bill, alters legislation sought by powerful agricultural groups. The bill had provoked outrage among environmentalists, some business leaders and cultural icons, especially over a provision that effectively granted amnesty to landowners who illegally deforested some areas. Responding to these concerns, Environment Minister Izabella Teixeira said the president's line-item vetoes ruled out amnesty. Still, Ms. Rousseff's action fell short of the expectations of environmental groups, which had wanted her to veto the entire bill. Details about the changes to the bill were sparse on Friday, with Brazil's powerful Agriculture and Livestock Confederation withholding comment. The official text of Ms. Rousseff's alterations, which include dozens of suggested changes to the bill in addition to the vetoed portions, is expected to be published on Monday. [ABSTRACT FROM PUBLISHER]

Reports on environmentalists' criticism of the government of Brazilian President Luiz Inácio Lula da Silva. Steps taken by da Silva to stem the erosion of his support; Environmentalists' opposition to funds in the government's multiyear development plan for certain projects; Criticism of da Silva's decision to approve the planting of genetically modified soybeans.

Says that President George Bush told world leaders at the Earth Summit that he had no apologies for his Administration's environmental record and called for a `prompt start' to carry out the accords that were signed. He also vigorously defended his opposition to a treaty to protect rare and endangered plants and animals . (Excerpts from speech by Bush on `action plan,' page 5; Talks in Rio wrap up principles for preserving the world's forests, by Paul Lewis, page 4.)