P 0 Box 65
St.Georgesa J O f
AA 1 ( -----
THE GREHMA NEWSLETTER
Por The Week LnUdin 9th April 1977
1977 BUDGET PRESENTED
In a 75-minute address to the House of Representatl.ves, Mr George
Hosten, Minister of Finance in the Grenada Governmentj today (6th)
presented a 58 million (EC) dollar Budget for the year 1977.
The precise figure for this Budget is LEC58,136,950.00 which
represents an increase of EC$7,774,740.00 over the 1976 estimated
figure of EC#50,362,210.00 The 1975 Budget was 44.5 million EC
dollars but figures of actual revenue and expenditure for 1975 and
1976 are not yet available.
The 1977 Budget is being financed by EC036,423,750.00 from local
revenue, EC01,570,000 is listed as coming from "Special ReimbursementsB'
and the sum of EC$20,143,200.00 is due in External Aid in the form of
grants and loans.
Estimated local revenue for 1977 is some 101 million (EC) dollars up
from last year's figure, this increase coming, in large measure, from
Customs Duties and General Taxes. Customs Duties are estimated to
be about 31 million dollars up while General Taxes will realize over
5N million dollars more than last year.
Increases in General Taxes are based largely on 2 million (EC) dollars
due to be paid by The Grenadian Company, operators of an international
lottery, and from a new tax of 2j which will be levied on all foreign
exchange transactions. This new tax is expected to realise 1l (EC)
On the expenditure side, reconstruction of the Pearls Airport Terminal
Building and apron will absorb EC$1,935,000.00, a new airport (which
probably will be built at the south end of the island) will cost
ECO$1,010,000.00, the sum of EC$3,100,000.00 goes to water improvement.
LC05,965,900.00 goes to road works and a medium income housing scheme
has been allocated 1 million (EC) dollars.
Specific details of the entire budget have not yet been made available
to the public and, when these details are to hand, NEWSLETTER hopes to
present a fuller breakdown of the figures.
THE GRENADA NEWSLETTER Week Ending 9.4.77
HOSThN GIVLS BACKGROUND TJ BUDGET
Presenting Grenada's 1977 Budget to the House of Representatives
today (6th), Mr George Hosten, Minister of Finance, outlined Bsme
factors affecting the island's economy and indicated effects these
factors had had.
"The year under review (1976) witnessed limited economic recovery,
in most if not all of the developed countries, from the worst
recession the free world has experienced in four decades", he said.
Mr Hosten said that world trade increased by approximately 10 in
the first half of 1976 but, despite this, there was an indication
that consumer prices, especially in developing countries, continued
to rise sharply, particularly in the latter half of the year.
There was evidence, the Minister said, that unemployment remained
at a "fairly high level" in both industrialized and developing
countries, while inflation appeared to rise at a decreasing rate.
"Although there was no increase in oil prices by the OPEC countries
in 1976", Mr Hosten continued, "increases were announced at a
meeting in December 1976, these increases being of the order of
10%9 with effect from January 1977, to be followed by a further
5/ in July 1977".
Ar Hosten thought the international economic environment was
influenced in 1976 by the floating exchange rates and particularly
by the downward movement of Sterling which had a significant
perfect on the East Caribbean dollar which had been tied to Sterling.
"However", said Mr Hosten, "amidst these financial and monitary
crises, the meeting of the Interim Committee of the International
monetary Fund took decisions in Jamaica which were aimed at
reorganisation of the world's financial system on the basis of
floating currencies and the abolition of gold as the central
accounting unit of the system. Member countries agreed to
sweeping changes in the Articles of Agreement of the International
Monetary Fund and it is hoped that when the 'Second Amendment',
as these changes have come to be known, has been ratified by
Member Countries, the international monetary system will be
placed on a sounder footing".
THE GREADA NEWSLETTER Week Ending 9.4.77
The Minister of Finance aead thn-it 197 s +.w th, bsDeicne n:P the
implementation of the decision to dispose of one-third of the gold
holdings of the International Monetary Fund as a means of assisting
the world's less developed countries, and it is expected that Grenada
will benefit from this by approximately ECD million.
Referring to Grenada's economy in 1976, Mr Hosten said the evidence iE
that the economy is on the "up-turn". "The improvement in world
trade has a favourable effect on the domestic front", he said, "and,
in the latter half of the year, there was some evidence of increased
economic activity." The Minister said that, in the Government
sector, both revenue and expenditure estimates for 1976 were
substantially exceeded and, Mr Hosten thought, the excess revenue of
over two million dollars is clear indication of increased activity.
Grenada's total exports during 1976 were valued at EC#31.1 million
which, Mr Hosten said, is some 26% over the 1975 figure. This, he
said, was due to increased production for all commodities and some
price improvements, particularly for cocoa.
Mr Hosten's address included the following table which shows production .
and earnings of Grenada's major export crops over the past three years.
Weight (Ibs) Value (6EC
Nutmegs and Mace 1974 2.7 million 7.7 million
1975 4.9 do. 11.3 do.
1976 6.9 do. 15.3 do.
Cocoa 1974 5.1 do. 5.2 do.
1975 5.1 do. 7.1 do.
1976 5.9 do. 8.6 do.
Bananas 1974 27.7 do. 3.4 do.
1975 29.7 do. 6.6 do.
1976 33.9 do. 7.7 do.
In the field of Tourism, the Minister said that, during 1976, there
had been 24% more long-stay visitors than in 1975 with "a rather
higher increase in earnings", and the cruise ship trade has also
shown "an encouraging increase of about 21%."
Turning to Commercial Banking, Mr Hosten said during 1976 total
deposits increased from 67 to 77 million (EC) dollars and, within
this total, savings accounts increased from EC$29 million to
THE GRENADA NEWSLETTER Week Ebding 9.4.77
The Minister of Finance fekt, however, that lending by banks was
not satisfactory. In 1975, Commercial Banks loaned 52 million
(LC) dollars but in 1976 this figure fell to 49 million (EC)
dollars and Mr Hosten, said he is holding discussions with the
banks "to see how this capital can be chanelled into productive
sectors of the economy."
"But", continued Mr Hosten, "this is a two-way operation and there
have to be projects presented for the banks to finance, and,
whether these projects are forthcoming is largely a matter of
confidence in the future". The Minister said he ventured to
hope that his 1977 Budget would go a long way in building up
OAS CONFERENCE PREPARATIONS "IN TOP GEAR"
Preparation for the 7th Regular Session of the General Assembly
of the Organisation of American States (OAS) to take place in
Grenada commencing June 14th are now "in top gear". This was
disclosed by Prime Minister Gairy to the House of Representatives
today (6th), and Mr Gairy said a technician from the USA had
arrived in Grenada last week-end to advise and assist in
constructing a geodetic dome which will accommodate approximately
650 persons and will be the main plenary meeting room for the
"Site preparations for this dome commenced January 14th this
year when I performed the ground-breaking ceremony on the grounds
of the 12-acre estate on which the Holiday Inn stands", said
Mr Gairy, "and completion of the building is expected by
According to Mr Gairy, the main conference centre for the OAS
meeting will be in the 60-room East Wing Annex of the Holiday
Inn and, along with the newly constructed geodetic dome, will
accommodate the Information Centre, the Press & Communications
Centre, Medical & Health services, two Committee Rooms and a
Documents Production Centre, all in the main Reception Area b.v
THE GRENADA NEWSLETTER Week Ending 9.4.77
the offices of the OAS Georetnarl rt an cupporting conference aerviqce
"The OAS 7th Annual General ^esembly will be attended by Member States
from the Caribbean, Latin America and the United'States of America",
Mr Gairy said, "and is expected to draw a little over 1,000
Representatives, Delegates, Observers and OAS Secretarial personal.
In addition, hundreds of visitors are expected to be in Grenada at
The Prime Minister said that transportation to Grenada will be eased
by the "blocking-off" of the seats on scheduled LIAT flights on 10th,
11th and 12th June and, in addition, there will be extra charter
flights with 80-seater Trinidad & Tobago Air Services planes from
Barbados and Trinidad."
Mr Gairy disclosed that a three-man OAS team recently concluded a 10
day visit to Grenada during which they held discussions with various
Working Committees on hotel accommodation, communications,
transportation, security and general conference services.
GAIRY Tj ASSURE SCIENTISTS OF LEADERSHIP
"I wish to state with all humility that, although the smallest and
economically poorest of the Member Nations of the United Nations,
Grenada continues to play a leading role in matters of great
importance and significance in fostering international understanding
and world peace."
This was said by Prime Minister Gairy while addressing the House of
Representatives meeting which opened today (6th). Mr Gairy went
on to say that Grenada, with a deep sense of pride and without fear
of challenge, could claim to be the first nation to evoke interest in
the phenomenon of the "Bermuda Triangle".
The Prime Minister said he told the 30th Session of the General
Assembly of the United Nations that it had dawned upon him very
forcefully that the time has come when the UN must give thought
seriously to and establish an agency devoted to ps:ohic research
Mr Gairy said he was happy to note that Russia has announced
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THE GRENADA NEWSLETTER Week Ending 9.4.77
to engage in scientific investigation of the ''Triangle".
Mr Gairy said that Grenada's leadership and initiative lIa the
United Nations was not limited to the question of the "Bermuda
Triangle", but Grenada has also raised in the UN the question of
Unidentified Flying Objects (UF0s). /"I said then, and I repeat
now", said the Prime Minister, "in the same way that this planet
is the accepted inheritance of all humanity, knowledge is also
to be shared for the benefit of all mankind and, in this light,
one wonders why the existence of UPOs .... continues to remain
a secret to those in whose archives repose useful information
and other data."
The Prime Minister said it is appreciated that some countries
consider this to be in the interest of military expedience, but
he urged that a different view be taken because it is his firm
conviction that the world is ready, willing and ripe enough to
accept these phenomena in relation to man and his existence on
the earth planet and the relation to the earth planet and life
in outer space.
World reaction to his call for the release of information on UFOes
and other related phenomena was immediate, abundant and gratifying,
Mr Gairy said. "The matters I raised aroused considerable
interest among scientists in every part of the world", he continued,
"as a consequence of which I was given the signal honour of being
the only HIad of Government in the world to be invited to attend
and to address an international conference of world scientists
in Mexico later this month when the phenomenon of UPOs and other
phenomena will be discussed."
Prime Minister Gairy said that, at that conference he will not pretend to
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THE GRENADA NEWSLETTER week ending 9.4.77
CONTAINERISED CARGO FOR GRENADA
A spokesman for the Grenada Shipping Agents disclosed to nEWLATTTEL R
today (7th) that, within 4 to 6 weeks, Grenada will be served with a
containerised cargo service by ships loading in north European and
United Kingdom ports.
A grouping of the Royal Netherlands Steamship Line, Harrison Line,
Hapag-Lloyd Line and Compagnie Generale Translantique, to be known as
Caribbean Overseas Lines (CAROL), is to provide this service and
there will be two terminal points, one in San Juan, Puerto Rico, and
the other at Fort-of-Spain, Trinidad.
A fleet of smaller containerised ships operated by the Royal
Netherlands Steamship Line will provide a fortnightly service to the
region from these two points, Grenada and the more southerly islands
receiving their cargo through Port of Spain, while those to the north
will be fed through the San Juan terminal.
It is expected that containerisation will result in faster handling
of cargo, less pilferage and a saving on labour costs.
TUC ELECTS OFFICERS
At its Annual Conference held on Saturday April 2nd, the Grenada
Trade Union Council reelected Mr Osbert Benjamin of the Grenada Civil
Service Association to serve as President for the fourth consecutive
term. Mr Curtis Stewart of the Technical & Allied Workers Union
was reelected Secretary/ treasurerr and there was a departure from the
usual practice of electing two Vice-Presidents of equal status..
Acting on a Resolution passed at last year's Annual Conference,
Mr Wilfred Hayes of the Technical & Allied Workers Union was elected
let Vice-President while Mr persival Louison of the Grenada Union of
Teachers was elected to fill the post of 2nd Vice-President.
There was only one resolution before the Conference and this was
submitted by the Seamen & Waterfront Workers Union. This
Resolution seeks to have the Trade Union Council approach Government
with a view to having the Tnann+. -nnrma +~v -...I --~..--.-- -
THE GRENADA NEWSLETTER Week Ending 9.4.77
On April 5th, the S S "Geeatstar" sailed with 21,990 boxes of
bananas weighing 651,159 Ibs and valued at EC074,883.00.
There were 917 boxes of rejected fruit.
.CRUISE LINER CALLS
During the week ending April 2nd, there were four cruise liner
calls at Grenada. These were as follows :-
March 28th Monarch Star 567 Passengers
29th Cunard Countess 771 do.
30th Amerikanis 615 do.
31st Brittanis 481 do. -,
CORRECTION COOPERATIVE BANK
In a news-story appearing in NhWSLETTER for the week ending 2nd
April ("penny Bank" Expands page 3), it was stated in error that
a part of the Authorised Share Capital of the Grenada Cooperative
Bank was "...300 Preference Shares of EC$300 each ...". This
should have read "...300 Preference Shares of EC#100 each ...".
NEWSLETTER apologises for this typographical error.
'NEWSiETTER' HAS SHORT WEEK
Subscribers will note that NEWSLETTER for this week ending April
9th is being produced earlier than usual, resulting in the fact
that news of the latter part of the week is not covered.
The reason for this is that after the Grenada Post Office closes
mail at 2.30 pm today (Thursday 7th), the next mail closing will
be on Wednesday 13th and, in the interest of saving the great
delay in delivery this will occasion, it was thought preferable
to produce this issue in time for mail closing today (7th)
Significant events occurring late this week will, of course, be
reported in NEWSLETTER for the week ending April 16th.
7th April 1977