P 0 Box 65
THE EENA WSD4ITj'B! \NBW
For The Week Ending Oetober 2nd 1976
TtLE GRENADIAI COMPANY aNEW CHAPTER IN BUSINESS HISTORY'
Grenada is not in a position to go into the world market as a borrower.
This opinion was expressed in a recent exclusive interview with
NEWSLETTER by Mr Robert Hunt, Managing Director of The Grenadian
Company, the organisation which has been granted an exclusive 99-year
Government franchise to run a Grenada based international lottery.
"When we came to Grenada originally", said Mr Hunt, "we didn't have a
lottery in mind. We came as Development and Investment Bankers, and
a simple analysis showed us the island needs foreign capital and
investment." Mr Hunt said possibilities of underwriting certain
development projects were looked into, but Grenada "does not have the
commercial collateral that lenders feel comfortable with."
According to Mr Hunt, the preoccupation of his group was to "bring in
foreign capital fairly quickly without having to put Grenada on a bond
issue which, perhaps, wouldn't stand the public market." "We
proposed a number of development financing ventures", he asid, "und
after a few visits here, the most obvious one was that used by most
countries today for example, Canada to underwrite the Olympics a
Concerning organisation of the lottery, Mr Hunt said the globe has been
divided into 50 sales territories, not necessarily separated by
national boundaries. For instance, South America is comprised of 8
territories and Central America is divided into 4. At the present.
time, only 28 of the 50 territories have been organized and these
include Europe and the Middle East. Sales will probably start in
Africa early next year, but there are no plans to sell in India,
Australia, Canada or the United States.
Based on the performance of the sales, managers (the Company calls. them
"investment-advisors"), there =ay be reorganisation of the territories.
"We have not yet any experience as to where the markets really are",
confessed Mr Hunt, "we're just basing on projections." He felt,
however, that the Far East was likely to be "a very hot area."
"From all the market analysis we have done", he said, the Oriental
people love things like this." (continued)
THE GRENADA NEWSLETTER Welek Ending 9.10.76
Disclosing inside Company information, the Managing lireotor said
initial printing of 100,000 lottery tickets was being done by Messes
Thomas De La Rue & Co of London, the engravers and printers who
produce currency notes for the East Caribbean Currency Authority.
De La Rue & Co have a plant in Cali, Columbia, Mr Hunt said, and
he was having a meeting with them shortly to finalise arrangements
for printing to be done in Cali.
Ticket sales commence November let and the first drawing of the
lottery will be on January 25th 1977. The Grenadian Company
has retained Messrs D L Blair & Co, lottery consultants of New
York, and on the advice of these consultants., the monthly prizes will
be diversified. "Each month will be different", said Mr Hunt.
"In some months there will be lots of little prizes in addition
to the big prize and one out of every four players will win
something. A million United States dollars will be the top
prize, but it wont be every month to begin with.
Tickets in the Grenadian Lottery will cost U8#500 each and will
entitle the holder to take part in 12 consecutive monthly draws,
but to encourage sales now, there's a special promotion feature.
Posing the question, "why would a person buy a ticket on November
let if he could get the same thing by buying on January let ?",
Mr Hunt said, "For the first three months, we're giving an initial
sales incentive. The first people who buy in November and up
to a certain date in December, will get 14 draws for their 500
dollars. Then, if you buy in January, you'll get 13 draws.
In February, and from there on, it will be the normal 12.
Mr Hunt said gross receipts from the lottery were estimated at
between 20 and 25 million United States dollars in the first yeas.
Out of this, he said, the first charge will be 20C sales commission
to the men in the field. He estimated that administration costs
will be about 5. and that some 45% will be paid out in prizes. The
remaining 3(%, or between 6 and 7j million US dollars, will be the
gross profit of the Company.
According to the terms of the licence under which the Company
operates, 30% of the Gross Profit goes to the Government of
THE GRENADA NEWSLETTER Week Ra ihg 2.10.76
Grenada, and the remaining 7M6 estimated at bome 4i to 5 million US
dollars in the first year is considered the net profit. This goea
into what the Company calls the "Remainder Account".
This "Remainder Account" is handled in a special way. It is
divided into what Mr Hunt called "units%, and there are a million of
these. Dividing the net profit by one million gives the value of
each unit, which, after the first year's operation, should be about
us$5. Mr Hunt gave rough indications as to how these units will
Approximately 275,000 units will be allocated to cover promotional
and other costs. A further 120,000 will be utilised as sales
incentives. Debentures are to be sold (at US$23 each to .the
'investment-advisors'), and 100,000 units will be hcld aside to pay
interest on these debentures. The returns from the remaining
500,000 units go to a charitable fund.called "The Children's Relief",
which will be administered from Grenada by an international Advisory
"What the Company has to do", said Mr Hunt, "is to iaet its debenture
obligations, repay its loans, pay its sales-force, pay its executives
any incentives or profit participation, and that being paid, the
entirety of the available net profit goes to the Children's Relief
The financing and structure of the venture is intricate. The
Grenadian Company is owned by a non-profit organisation registered
in the State of Plorida as "The Grenadian Trust", which, according
to Mr Hunt, aay use it& funds only for specified charitable purposes.
The Grenadian ComDany itself, capitalized at US$10 million (100,000
shares of US$100 each) has only two share holders. These are
Mr Robert Hunt, the Managing Director, with 999 of the 1,000 shares
which have been issued, and his wife Ann Marie Hunt, with the
remaining one share. The Hunts do not own these shares in their
own right but in trust for the Florida based Grenadian Trust.
Concerning the initial financing of the Grenadian Company, Mr Hunt
said there were five people who put up an initial US$*3 million. He
THE GRENADA NEWSLETTER Week Ending 2.10.76
identified himself as one of the five and Mr Keith Barriah as
having put up "a large share" of this sum, but he declined to
identify the other three. "I have to clear it first with them",
he said, "they are very passive people."
With reference to Mr Keith Barrish and his former business operations,
Mr Hunt said he had never worked with GRAMCO, Mr Barrish's Bahamas-
based real estate investment company which collapsed in 1970, and
in connection with which at suit wab filed against Mr Barrish and others
alleging they illegally bled off US$40 million through a Holding
Company in Panama.
"I never worked for GRAMCO in my life", said Mr Hunt, "however, I
did work at one time for the United States Real Estate Consultant
which was an independent company which worked for GRAMCO. But,
I never worked for GRAMCO, I never was a GRAMCO salesman, officer,
director, share-holder ..... I never had anything to do with GRAMCO
except that, basically, my original relation with GRAMCO was that
they were my client."
Giving details of his own background, Mr Hunt disclosed that, for
many years, he had taught philosophy and theology as an associate
Professor at the Catholic University of America in Washington, D C.
"I resigned from the University in 1969", he said, "and I have
tried to carry into the business world some of the business
philosophy, or perhaps, pragmatic idealism."
Some of this "pragmatic idealism" is part of the philosophy of
The Grenadian Company. "To use the best available and known
business skills to produce profit on the one hand", Managing
Director Hunt said, "and on the other hand, to use that profit
for charitable and humanitarian goals, I feel is a new chapter
in business history."
UNITY TALKS BREAK DOWN.
In a release issued at a press conference today (2nd) the Grenada
National Party (GNP) announced it would not comply with the
demand of the New Jewel Movement (NJm) that GNP break its
relationship with the United People's Party (UPP) as a necessary
THE GBREADA NEWSLETTER Week ending 2.10.76
condition for a GNP/NJM alliance in anticipationaof Grenada's General
Elections which, constitutionally, must be held by May 1977.
Setting out the history of the "unity-talks", the release summarized
the reason for the breakdown of negotiations as "UPP have allegedly
accused NJM of being Communist Agents without proof. NJU have
iaocused UPP of being CIA Agents without proof".
The release continues, "GNP therefore says let all of us NJM, UPP,
GNP pool our resources and pull together for Grenada. If at many
time along the way it could be shown that any one group has become a
stooge for foreign domination, then the whole Country would join in
Present at the Press Conference was Mr Winston Whyte, Political
Leader of UPP and, in reply to a question fron NEWSLETTER, Mr Whyte
said he was aware that a member of his Party's Executive, Mr Curtis
Stewart, is the Regional Coordinator for programmes of the American
Institute For Free Labour Development (AIFLD). Mr Whyte said he
was aware that AIPLD had been identified as a "front" for the Americar
Central Intelligence Agency (CIA), and he thought Mr Stewart's
association with AIFLD was "a matter for concern".
In an exclusive interview with NEWSLETTER, Mr Herbert Blaize, -
Political Leader of GNP, said he hoped the present breakdown of
negotiations did not mean the end of any chance for an alliance of
GNP, NJM and UPP. Mr Blaize said, however, that his Party had
publicly announced an arrangement with UPP which it "could not
honourably break without entering into public immorality."
"I have asked NJM to reconsider the position", he said, "take it as
being even that both sides have made accusations that have not been
proved and let us all three GNP, NJM and UPP proceed to finalize
arrangements for a working association."
Officials of NJM were not available for comment, but it is
understood that the matter is being given consideration and that a
statement will be issued early next week.
THE GRENADA NEWSLETTER Week Ending 2.10.76
DEVELOPMENT BONDS GO ON SALE.
Development bonds calculated to raise EO$10 million were put on
sale by the Government of Grenada on September 23rd. The proceeds
from these bonds (which will pay -T interest and are. redeemable not
later than September 16th 1992), are to be applied to Agriculture
(EC$3 million), Roads, Bridges, Water & Electricity (ECs6 million)
and the Purchase of Lands for Housing Lots (E$1l million).
Also put on sale last month on Tuesday 21st was the 14th issue
of Treasury Bills, which issue is eaxected to raise EC$lO million.
The prospectus inviting applications for purchase of the Development
Bonds indicates that, as at 31st August 1976, Grenada's public debt
stood at EC#24,795,061.00 .
BARBADOS OPPOSITION LEADER DEFINES ROLE.
In an exclusive interview with NEWSLETTER in Bridgetown on Tuesday
(28th), Mr Frederick ("Sleepy") Smith, Leader of the Opposition in
the Barbadds House of Representatives said it was his job to see that
the Barbados Labour Party Government of Prime Minister Tom Adams had
not come to power "by false pretenses".
"The present Government has got into power on a manifesto which
has made some promises", he said, "and they were very clever not
to cost them because it would cost millions and millions of dollars.
My job as Leader of the Opposition will be to see that they honour
their promises to the people."
Mr Smith said that, in keeping with the Westminister system of
government, his role would be to look at every measure that comes
before the House, to assist the Government where he and his colleagues
were satisfied that the measure was in the interest of the people,
to criticize when the Opposition thought the measure was inimical
to the interests of the people and, to introduce measures on
behalf of the Opposition.
Mr Smith had no comment concerning the question of why his Party
had placed him instead of ex-Prime Minister Errol Barrow as
Leader of the Opposition. (207 words.)
THE GREMADA EW&8LETTER Week ending 2.. 0.176
POLICZMEN CONVICTED 03' BEATING PIBONER.,
Five policemen of the Royal Grenada Police PForce have been found
guilty of beating a prisoner at the St.David' a. Police Btation on
July 16th 1972.
Brought as a civil matter in the High Court before Mr Justice R A
Nedd, the case, which commenced on May 7th last, was concluded on
Mr Nedd found the evidence of the defendant policemen "at times
very conflicting". "I believe that the plaintiff (Mr Dowling
Grant) was being severely beaten and, not being able to stand the
beating, sought to escape."
Mr Grant who, as a result of the beating, was hospitalised for two
weeks and had to undergo surgery, was awarded EC$3,000.00 in general
damages for assault and battery.
The policemen, Harold Mitchell, Frank Thompson, Everton Fleming,
Dennis Rush and Gerald Date, were defended by Mr Lyle St.Paal,
Assistant to the Attorney General.
The following comparative figures relative to exports of Grenada's
major export crops were extracted from the Monthly News Bulletin
of the Grenada Chamber of Commerce :-
lbs we lbsW
May 1975 2,658,254 221,125 May 1976 2,974,475 275,497
June 1975 3,378,266 81.2,022 June 1976 3,597,155 815,914
July 1975 2,785,278 n/r July 1976 2,737,918 618,568
May 1975 639,200 908,837 May .1976 1,105,600 1,531, 222
June 1975 380,000 444,801 June 1976 790,000 1,359,571
July 1975 522,400 664,845 July 1976 336,000 566,805
May 1975 336,400 720,807 May 1976 400,880 .780,470
June 1975 229,600 459,186 June 1976 482,660 1,033,439
July 1975 429,760 903,301 July 1976 276,000 547,258
May 1975 5,260 22,651 May 1976 108,910 551,288
June 1975 23,060 97.514 June 1976 85,370 234,252
July 1975 27,930 123,921 July 1976 90,490 276,817
THE GRENADA NEWSLETTER Week Enring 2.10.76
On Tuesday 28th September, the 8 8 "Geestland" sailed with 22,580
boxes of bananas weighing 681,945 lbs and valued at n$c78,423.00.
There we 149 boxes of rejected fruit.
( 25 words)
f CRUISE LINER CALLS. (
During the week ending September 25th, two cruise liners visited
Grenada. These were the "Cunard Adventurer" on 21st with 401
passengers, and the "Amerikanis" on 22nd with 568 passengers.