Alister Hughes let Mm' 1976
P 0 Box 65 17
St.Georges 1 I
NADA THA 4RNADA NMVSLiETTER. .A
For The Week .Ending. May lat. 1976,
BAMKS RnDUCE INTEREST RATES.
There has been a drastic reduction in interest rates given by Banks
in Grenada, and, while no reasons have been given, observers see these
reductions as being directly related to the passage by the Government
of the Banking (Special Deposits) Act 1976.
According to the provisions of this Act, "every bank shall maintain a
deposit with the Accountant General of an amount equivalent to 55 of
the amount of its total deposit liabilities", and "deposit
liabilities" are defined by the Act as being "liabilities in respect
of all savings and includes fixed deposits and current accounts."
This Act, which was passed on March 24th, is reported to have caused
concern in banking circles, and Managers of Banks expressed
disappointment that Government had not discussed implications of the
Act with them before taking action. This concern and disappointment
was reflected in a change in interest rtes two days after the Act
was passed, that is, on March 26th.
Fixed deposits which, up to that time, had enjoyed rates of 7J%, 8%
and 9 respectively for 3-month, 6-month and -month deposit periods,
were, on that date, reduced to 62%, 7% and &%. Three days later,
on March 29th, these rates fell again to 5>, 6* and 7b, and, on the
following day, March 31st, there were further declines when the 6-
month and 12-month deposit periods had their interest rates reduce
to 51% and 6%. At that time, the 3-month deposit period remained
unchanged at 5%.
On Monday of this week (26th), there were further reductions.
Interest on the deposit period of 3-monthe was dropped to 35V, the
6-month period fell to 4% and the 12-month period to 3%. Observers
see the unusual reduction of the 12-month period to a figure lower
than the 6-month period as an attempt by the Banks to discourage
long term deposits.
The interest on ordinary savings hba been unaffected and remain at
Aliater Hughes 5
THE GRENADA NEWSLETTER Week Ending 1. i. 76
LIAT WORKERS "WAIT FOR PAY"
The dispute between members of the Technical & Allied Workers Union
(TAWU) and Leeward Islands Air Transport Ltd (LTD) took a new turn
this week when, after having received pay-packets fronm which unexplained
deductions had been made, employees. sat idly at their desk "awaiting
This dispute dates back to January when, according to a spokesman
for TAWU, discussions should have begun on a new Agreement to replace
the old Agreement which expired in October 1975. Union sources state
that "pressure had to be exerted on LIAT before they would come to the
bargaining table", and negotiations did not begin until March 1976.
Early in April, these negotiations broke down and, on 12th and 13th
April, employees staged a protest sick-out, following which, NEWSLETTER
7.earned from a reliable source, LIAT Headquarters in Antigua was
expected to submit new proposals to TAWU. It was not expected,
however, that discussions on these proposals would begin before
The present difficulties began on April 23rd when weekly-paid
employees received pay-packets with unexplained deductions. It
was noted that these deductions were equivalent to two days pay, and
TAWU sources presumed these deductions related to the two-day sickout
on April 12th and 13th. When the Company was approached by TAWU
officials, the deducted money was refubded to employees.
This matter came to the fore again on April 29th when monthly-paid
workers received pay-packets with unexplained deductions. TAWU
sources state that management gave no explanation and that, on
Friday 30th, "workers sat at their desks and waited to receive
money which was due to them."
"It is a pity that LIAT has taken this, attitude towards its employees",
said one TAWU official. "It is important to maintain our single
scheduled air-link with the outside world and we wish to cooperate,
but the Company should not think they can ride rough-shod over
THE GRENADA NEWSLETTER Week Endn,- 1.5.1/6
The same TAWU official disclosed that tho Union has been given
assurances that the matter is now having attention by LI.AT's
head-office in Antigua. "Today (1st) is a holiday in Grenada," he
said, "and we understand that Monday (3rd) is a holiday in Antigua.
In a spirit of cooperation, TAWU has advised LIAT employees to sta't
again to perform their duties on Monday while we wa t for word from.
LIAT in Antigua."
LIAT officials in Grenada could not be contacted for comment.
GOVERNMENT EMPLOYEES RECEIVE INTERIM INCREASES.
According to the agreement reached by Government with the Team
appointed by the Civil Service Association, the Technical & Allied
Workers Union and the Grenada Union of Teachers to negotiate a
salaries revision for all Government employees, these employees
received increases yesterday (30th) which reliable sources state cost
the Treasury over EC$200,000.00.
These increases are interim and will remain in effect until the Report
of a Salaries Commission is implemented. Sources close to the
Negotit ing Team state that part of the agreement with Government is
that the Salaries Commission muat be set up immediately and its
Report implemented not later than January 1977. As far as could be
ascertained, however, no steps have yet been taken to appoint the
These sources also disclosed that Government has agreed to pay its
employees back-pay based on the interim increase. This back-pay
will be effective from January 1st 1975, and payment is to be made
at the end of June 1976.
ZEEK/CLANCY CASE ADJOURNED
i.lr Ernest John, Hagistrate in the Grenville Court, yesterday (30th)
postponed the cases which were due to be heard then against American
citizens Eugene zeek, Karl Korte and Nancy Miueller for forgery,
charges arising out of the alleged use of false names by these
defendants on Immigration Cards signed by them at Pearls Airport
on June 23rd 1974.
TEE GRENADA NEWSLETTER Week Ending 1.5.76
Zeek, alias John Clancy, is wanted in the United States on q charge of
fraud, and Karl Korte is wanted for questioning by the FBI in connection
with the charge. It has been alleged that the Grenada Government
is protecting Zeek, but at a press conference over 'the Easter week-
end, Prime Minister Gairy charged that these allegations arose out of
"emotionalism and impetuosity" by Grenadian press representatives.
Mr Gairy disclosed that there were "ongoing discussions with top
levels of the U S Government" with reference to the Zeek matter, but
said particulars are secret.
Reliable sources have disclosed that the charges of forgery against
Zeek, Kprte and Mueller have been brought by Attorney General, Desmond
Christian, against the wishes of Cabinet, and, at his press conference,
the Prime Minister said the charges have yet to be proved. As to
whether Zeek, Korte and Mueller will be deported, he said Government
would take no action until the "situation presents itself with the
necessary level of clarity."
featerday's postponements were the second for these cases. On March
25th, Magistrate John granted postponements to April 30th because
the Prosecuting Police Seargeant's file was "incomplete" and the
defendants' lawyer, Mr Eamon DePreitas, oould not get to Court
because he "had a flat tyre". Yesterday's postponements were
made because, today being a holiday (May $st), yesterday was Market
Day in Grenville, and, located next to the Market, the Court was being
disturbed by noise. The cases have now been set down for hearing
on Wednesday May 19th.
GUT HULDS CONVENTION.
Mr Joseph Burns Bonadie, Secretary/Treasurer of the Caribbean Congress
of Labour, delivered the feature address at the 15th Annual Convention
of the Grenada Union of Teachers (GUT) which took place on April 22nd.
The function, which was opened by Governor General, Sir Leo deGale,
had the Minister of Education, Mr J N Morris, as its Chairman, and
tlao present wire the Roman Cathollio Bishop of St.Georges, Monsignor
Sydney Charles and the parliamentary Representatives for St.Andrews
,'hac ,tha Conference was held) Meadames Nadia Benjamin and Waple Nedd.
THE GREHADA NEWSLETTER Week Ending 1 .5.76
In his address, Mr Bonadie referred to,what he called, the"Garibbean
Social Strata", and he expressed the opinion that, because of the
colonial heritage of the Westiadian, the poor in the region adapt
themselves to poverty and this attitude is handed down in the family.
Mr Bonadie said the extremes of wealth and poverty in any country
breed an explosive society and he felt that politicians contribute
to the situation. Between the extremes of wealth and poverty,
however, he felt the Trade Union could be classified as a mediator,
and he outlined several ways in which he thought education could be
utilised to develop an effective trade union.
CLAT REPRESENTATIVES VIiIT.
The Central Latinoamericana De Trabajadores CLAT (Latin American
Centre for Workers), has undertaken a special mission to the English-
speaking Caribbean. This was disclosed at a Press Conference in
St.Georges last week-end when two representatives of CLAT, with
personal from their local affiliates, the Progressive Labour &
General Workers Union, spoke with the Press.
One of the OLAT representatives, and spokesman for the mission, Sr.
Louis Henry Molina, Assistant General Secretary of CLAT, said the
mission had four objectives. The first was to demonstrate
solidarity with affiliates in the English-speaking Caribbean, and the
second was to make arrangements for CLAT to provide assistance in
organising a programme of social education.
Thirdly, said Sr. Malina, CLAT wished to exchange information on
labour matters with its affiliates. The fourth objective,
according to Sr.Molina, is the most important. This is to provide
an opportunity for CLAT representatives to make personal contact with
their affiliates and learn, at first hand, the problems of workers
in the English-apeaking Caribbean. "It is more important", said
Sr. Molina, "to talk to somebody for 10 minutes than to read a whole
boot on the subject."
Sr.aolina said that, together with the other representative of CLAT,
Sr. Adolfo Bonilla, he would visit St.Vincent, St.Lucia, Dominica
and St.Kitts. Before coming to Grenada, the CLAT representatives
THE GRENAXA NEWSLETTER Week Ending 1.5,76
held discussions with affiliates iii uywns &ad :r ae a bo.
Speaking of the organisation he represents, Sr. Molina said CLAT
had been founded in 1954 and was affiliated to the World
Confederation of Labour which was established in 1920. The
CLAT headquarters are located in Caracas, Venezuela, and according
to Sr. Molina, CLAT is che only labour organisation devoted
exclusively to Latin America and the Caribbean.
Asked whether CLAT may not share the accusation levALed in some
quarters at Venezuela, that of meddling in the Caribbean,
Sr. Molina aaid, "That is a problem for the Venezuelan
Government. CLAT certainly is interested in politics, but
we are not interested,in partisan politics. In the interest
of the worker we must be interested in political things, but we
do not support any political party."
With particular reference to Venezuela, Sr Molina said, "That is
one of the few places in Latin America where there is a
democratic process". "And you can quote me on that"', he
said. "In the International Labour Organisation (ILO) in
Geneva, CLAT has already accused 14 countries of being
undemocratic, particularly with reference to labour."
At the press conference with Sra. Molina and Bonilla was
Mr Lloyd Belton, President of The Progressive Labour & General
Workers Union (the CLAT affiliate ib Grenada), and other officers
of that Union. Mr Belton said his Union had been founded
in 1967 and had been affiliated to CLAT aince 1969.
The OLAT representatives left for St.Vincent on Monday 26th.
REVENUE FRuM BANANAS UP.
According to figures released by the Grenada Banana Cooperative
Society, revenue derived from the shipment of bananas increased
by over 100A in 1975 as compared with 1974 revenue. In 1974,
EC$3,329,187.00 were earned and, in 1975, this figure
increased to E0C6,791,235.00.
THE GRBEADA NEWSLETTER Week Rnding 1.9.76
The statistics indicate that, although there was em incrseae In
production in 1975, the higher revenue in this year was due mainly
to higher prices obtained. Total production for 1974 was
19,578,221. lba and, in 1975, there was an increase of
approximately 50%, bringing the production for last year up to
For the first quarter of 1976, EC1,,138,883.00 have been earned
from the export of 5,853,081 ibs of bananas.
DIPLOMAT To TAIK TO CHAMBER.
Mr Michael Dibben, Second-Secretary in the British High Commission
in Trinudad, will hold discussions with the Council of Management
of the Chamber of Commerce next Tuesday (4th)
Mr Dibben, who is in charge of the Grenada Desk of the High
Commission, will outline the working of a computer which is to
be Bet up in Loudda and which will put Westindian businessmen
in close touch with British manufacturer.
During the week ending April 24th, two members of the Libyan
Embassy in Caracas paid an official visit to Grenada. These
diplomats, Messrs Ramadan Ruhaim and Shaban Ibrahim, held
discussions with members of the Grenada Government, but no details
have been released.
TMA MANAGER ADDRESSES CHAMBER
On April 23rd, Mr Wilber Barker, Executive Manager of the Trinidad
Manufacturers' Association (TMA), addressed the Grenada Chamber
of Commerce on the subject of "The Process List".
This "List", now currently engaging the attention of the CARICOM
Council of Ministers, is related to the duty-free treatment of
C.RICOM Manufactured goods, and the proposed "Process List" will
set out manufacturing processes which will be considered as
changing the essential characteristics of an imported non-CARICOM
THE GRENADA NEWSLETTER Week Ending 1.5.76
During hia address, Mr Barker expressed the opyi.n-w. that. the Lane
Developed Countries (LDC) of CARICOM need not continue to be mere
suppliers of raw material to the More Developed Countries (MDC).
He felt, for example, that fruit juices could be exported instead
of fruit, and he urged businessmen to give consideration to
,introducing manufacturing processes to handle the island's raw
Mr Barker disclosed that the demand for groundnuts for the current
year is about nine million pounds, and he felt that Grenada could
make a contribution to supplying this demand.
BA!K MANAGER DEPORTED,
The Manager of the Bank of Nova Scotia, Mr J J Scott-Cowper, left
the island yesterday (30th), but it could not be determined whether
he had been deported or whether pressure had been exerted by
Government on him and/or on his superiors to effect his transfer.
Considerable mystery surrounds the reason for Mr Soott-Cowper's
deportation or transfer. One reason suggested is that, as
Manager of the Bank, he would not allow the sale at the Bank of
tickets for the recent Easter Water Parade. Another reason
suggested is that he had refused to honour cheques Issued on
overdrawn accounts of certain Government officials and politicians.
A usually reliable source said the main reason for Mr Soott'-
Cowper's departure rested in the fact that he was considered
"uncorporative" towards the Government of Grenada.
Over the two day period, 25th/26th April, the 8 S "Geestorest"
loaded 28,965 boxes of bananas weighing 886,066 Ibs and valued
at EC475,315,0oo. Forty-two boxes of fruit were rejected.
S~CRUISE LINER CALLS. 1,
During the week ending April 24th, there were four cruise liner
calls at Grenada. The "Ivan Franco" berthed on the 18th with
624 passengers, and the "Cusard Adventurer" on the 20th with
495 passengers. On the 22nd, there were two calls, the
"Brittanis" with 885 passengers, and the "Debphi" with 271.
SPECIAL NOTICE '. NEWSLETTER has been awarded a travel grant
which will take him out of the region on May 16th and he will not
be back in Grenada until early July. Some preparation is
required for this trip and, in order to accomplish this, regular
productions from this office have to be suspended. For this
reason, this issue of NEWSLETTER is the last until early July.