P 0 Box 65
THE GRENADA NEWSLETTER
por The Week Ending May 21st 1977
LDO's DEFICIT TRADING POSITION WITH MDC's WORSENING
In a Report prepared by the Council of Management of the Grenada
Chamber of Commerce for presentation at the Chamber's Annual General
Meeting next week, the following statistics are given to indicate the
worsening trading position of the Less Developed Countries (LDC) of
CARICOM in relation to the More Developed Countries (MDC). These
figures refer to sales of East Caribbean dollars and purchases of
regional currencies by the East Caribbean Currency Authority.
Sales Of Of Regional
EC Dollar Currencies
Quarter Ending Dec. '75
Trinidad & Tobago
Quarter Endina Mar. '76
Trinidad & Tobago
Quarter Ending Jun. '76
Trinidad & Tobago
Quarter Ending Sept '76
Trinidad & Tobago
All figures are in East Caribbean dollars.
CARICOM rates of exchange relative to the United States dollar quoted
by the Chamber's Report and effective 7th July 1976 when the Eaat
Caribbean dollar was tied to the U 8 dollar are as follows :-
One U 3 Dollar = Jamaica $ 0.91
Trin-dad & Tobago 2.40
East Caribbean 2.70
THE GRENADA NEWSLETTER Week Ending 21.5.77
PHILIPS: JAMAICA NOT ANTI-CARICOM
His Excellency Mr Rag Philips, Jamaican High Commissioner to Grenada,
arrived in the island on Tuesday (17th) for a three-day routine
In an exclusive interview with NEWSLETTER today (19th), ir Philips
denied that import restrictions imposed*by his country indicate
there is an anti-integration attitude in Jamaica.
"Jamaica is indeed committed to the integration movement", he said,
"our restrictions are born out of necessity. It is no point
having goods for which we cannot pay and we are having a serious
balance-of-payments cum foreign exchange problem."
The High Commissioner said that what Jamaica had been forced to do
was restrict imports to essentials. "Unfortunately", he
continued, most CARICOM products do not necessarily fall into the
oatagory of essential items, and this is why there has been a cut
back on imports from CARICOM". Mr Philips said, however, that
there was a commitment from the Jamaican Government to try to
soften the criteria of essentiality as far as possible in order
to accommodate CARICOM imports to the 1976 level.
In addition to his post of High Commissioner to Grenada, Mr Philips
is also Commissioner to the Associated States, High Commissioner
to Trinidad & Tobago, High Commissioner to Barbados and Ambassador
to Surinam. Lis Excellency is resident in Trinidad and
returned to that island today (19th)
CHAMBER TO HOLD ANiUAL GENERAL MEETING
The Annual General Meeting of the Grenada Chamber of Commerce
has been fixed for Thursday May 26th and an important item on
the agnd a will be consideration of the Report of the Council
Contained in that report are two criticisms of the Grenada
Government and they both refer to representation by the Chamber,
In the first instance, the Report states that a letter has been
written to Prime Minister Gairy reminding him of his agreement
THE GRENADA NEWSLETTER Veek Ending 21.5.77
in 1974 to the Chamberts request for repremsntiti.o. on Statutory
Bodies concerned with the economics of the State.
"The Chamber was not invited to nominate a representative to serve as
a member of the Board of Directors of the "renada Agricultural &
Industrial Development Corporation under provisions of paragraph
1(2)(c) of the schedule to the Grenada Agricultural & Industrial
Development Corporation Act (1976)", the Report says.
The paragraph referred to states that on the Board of Directors of the
Corporation there are to be "seven representatives of the Commercial,
Professional and Trade Union Sectors" in addition to other oatagories
of persons named.
The Report says a representative of the Chamber was nominated to the
Development Corporation (whose functions are now carried out by the
Grenada Agricultural & Industrial development Corporation), but this
representative was never summoned to a meeting.
In the letter written to the Prime Minister, the Chamber. has assumed
that the non-appointment of a Chamber representative "might have beer
an oversight" and an invitation to nominate a representative is
The Chamber's other criticism relates to the fact that the Prime
Minister did not consult the Chamber in connection with selection of
a senator "under the provisions, of paragraph 24(2)(c) of the Grenada
In this paragraph it is stated that three Senators halll be appointed
by the Governor General, acting in accordance with the advice of the
Prime Minister after the Prime Minister has consulted the
organization or interests which the Prime Minister considers the
Senators should be selected to represent."
"In view of the importance of industry, trade and commerce to the
economic welfare of a country", the Report says, "there can be no
doubt that it was the intention that business interests should be
consulted under paragraph 24(2)(c) of the Constitution."
The Report expresses the view that failure to consult the Chamber
THE GRENADA NEWSLEBTER Week E.ding 21.5.77
in connection with selection of a Senator sa not a refleotton on
the Chamber but on Government as it tends to give the impression
that Government is disregarding well established democratic
principles and practices.
CHAMBER: NO SIGNIFICANT IMPROVEMENT IN ECONOMY
There appears to have been no significant improvement in Grenada's
economic situation during the period April 1976 to March 1977.
This opinion is expressed in the Report of the Council of Management
of the Grenada Chamber of Commerce to be presented at the Chamber's
Annual General Meeting next Thursday (26th)
"The increased prices of our major crops, the overall increase in
the volume of our exports and increased receipts from tourism have
resulted in slightly increased economic activity", the Report says,
'but the cost of our imports have been rising steadily and the
situation has been aggravated by the operation of the Stamp Duty
(Amendment) Act 1975 which became effective on December 29th 1975."
This Act, which was part of the 1976 Budget proposals, imposes a
5% tax on the C.I.F. value of all imported goods.
The Report says that, on four occasions during the last five years,
the Chamber tried unsuccessfully to get Government to involve the
private sector in developmental planning. In spite of this,
the Report says it still behoves the Chamber to give thought
to the developmental needs of the State, and a committee has
bern appointed to recommend broad outlines for development.
NJMI MEMBERS IN CUBA.
Two prominent members of the New Jewel Movement (NJM) left Grenada this
weak for an eight-day familiarisation tour of Cuba. thesee members. are
Messrs Maurice Bishop and Unison Whiteman and theit visit to Cuba is on
the invite ion of the Cuban Institute For Priendship With People.
In an exclusive interview with Mr Whiteman before he left Grenada on
Wednesday (18th), NEWSLETTER asked whether this tour of Cuba indicated
that NJM is now a part of the world Communist Organisation.
THE GRENADA NESBLIATER Week Ending 21.5.77
"People get very emotional about the word 'communismn'', aid
Mr Whiteman, "but we are not concerned about such labels. As far
as we are concerned, NJM is a socialist movement."
Mr Whiteman said Grenada has chronic economic problems including the
cost-of-living, unemployment and poor housing and, in recent years,
Cuba has made rapid strides to tackle such problems. "we are very
happy for the opportunity to familiarise ourselves with developments
of socialism in Cuba", he said.
Messrs Bishop and Whiteman are Joint Coordinating Secretaiee of NJM
'and both won seats in the House of Representatives at the General
Elections last December. Mr Bishop is the Leader of the Oppos.tio&
in the House.
NUTMEG PRODUCTION DOWN
In a review of Grenada's economy, a Report of the Council of
Management of the Grenada Chamber of Commerce says that, for the year
ending 30th June 1976, nutmeg production was down by 23.14% as
compared with the previous year.
The Report quotes the following statistics of deliveries of nutmegs
and mace by growers to the Grenada Cooperative Nutmeg Association.
Nutmegs 6,970,282 Ibs Green
823,944 Ibs Dry
70,949 lbs Shelled Grinders.
Mace 311,562 lbe No.1
130,364 Ibs No.2
126,861 lbs pickings.
Based on established conversion rates, the Report says the above
figures are estimated to yield 4,103,968 Iba of shelled nutmeg and
534,660 lbs of cured mace, a decrease of 1,235,752 Ibs or 23.14% in
nutmegs and 234,513 Ibs or 30.48W in mace as compared with the
"The drop inProusctiDo was expected", says the Report, "and was
attributed by farmers to the fact that, trees having borne heavily
during the previous year, underwent a rest period during the year
THE GRE9ALA NEWSLETTER Week Ending 21.5.77
Covering sales made by the Grenada Coorttive Hutnmeg Alsa ition,
the Report says these amounted to EGC14,770,613.00 made up as
Nutmegs 6,528,719 1be yielding EC02,338,947.00
No. I Mace 483,400 lbT do. 1,728,748.00
No. 2 Mace & Pickings 280,350 Ibs do. 702,918.00
Dealing with the Cocoa Industry, the Report says that production
increased to 6,017,376 lbs in the year ending 30th September 1976
as compared with 5,316,12 lba in the previous year. Exports
in the 1974/75 period were(522,000 )bs valued at EC7 9434.
and, in the 1975/76 period, 5,858,800 Ibs valued at C8,46,550.00
The average yield of cocoa per acre is 500 lbs per annum and the
Report says the Grenada Cocoa industries Board is encouraging
farmers to double this and to increase the area under cultivation
from 12,000 to 21,000 acres.
Referring to Bananas, the Report quotes statistics showing and
increase from 30,103,157 Ibs Valued at EC#6,638,490.00 in 1975 to
34,999,879 lbs valued at EC$7,703,796.00 in 1976. "Banana
production might decrease slightly as newly planted areas in cocoa
and nutmegs approach full production", says the Report, "because
bananas planted in those areas would be weeded out."
In the field of Tourism, the Report gives the following statistics :
1923 1974 1295 1926
Visitors by Air 30,620 13,751 19,451 22,856
Visitors by See 2,870 972 1,608 1,695
Visitors by Cruise Ships 132,297 57,644 85,460 106,882
Estimated earnings in 1976 were EC$33 million as compared with
EC$23.25 million in 1973, but the Report points out that the 1976
figures of arrivals are below the 1973 figure and the increase
in estimated earnings is due to inflation.
"As hotel occupancy has been below 50. of capacity", the Report
says, "it is felt that earnings can be doubled without further
private sector investment. However, there is need for
substantial improvement in infrastructure, especially wpter
supplies and roads. There is also the important question of
air services which need to be substantially improved."
THE GRENADA NEWSLETTER Week Ending 21.5.77
The Chamber has not been able to get statistics relative to Grenads's
balance of payments position, but the reportt states there has been'an
increase in the island's visible trade deficit in 1976 as compared
The following statistics are given :-
Total Domestic Exports EO#25,888,102.00 EG432,913,768.00
Total Re-exports 1.027.336.00 1.207.2g O
Total Imports 52.818.000.00 66.215.392.00
Oficit E0C25,902,562.00 EC#32,094,382.00
f"Our visible trade deficit has been offset by our invisible trade
(particularly tourism), foreign aid and private remittances from
abroad", says the Report, "but the Cauncil of Management considers
that the increase in our visible trade deficit underlines the need
for rapid economic growth."
HEARINGS ELECTION PETITIONS UNLIKELY BEFORE SEPTEMBER
Unless the High Court can find time during the Assizes next month, it
is unlikely that the three petitions arising out of the General
Elections last December will be heard before September.
'heae petitions were filed on January 10th by three candidates of the
People's Alliance, Messrs Kenrick Radix and Wilberforce Nyack, and
Dr Rupert Japal. These candidates allege, among other things,
that their opponents (by whom they were beaten in the Elections),
were guilty of bribery and that Election Officials were guilty of
The winning candidates against whom these allegations are made are
Messrs Oilver Raeburn and Albert Forsythe, and Mrs Cynthis Gairy, all
members of Mr Gairy'e Grenada United Labour party, and, on January
30th, through their legal representatives, they requested
additional information relative to the allegations.
Some of this additional information was filed on Monday (16th) and
it is understood that the remainder will be filed by the end of this
month. Informed legal opinion today (20th) was that, when this
has been done, there may be further requests and filing of
THE GREADA NEWSLETTER Week Ending 21.5.77
information. However, even if there are no more pleadings to
be filed, the hearing of these petitions in Court faces the
difficulty that the Assizes start in June and there may be no
time before the Court goes on vacation.
Court vacation starts on August let and lasts until September 15th,
and the election petitions may not be heard until after the latter
CLANCY/PE~ LT.-O/PELLTO WAS FBI SUSPECT (?)
According to a recent report in the "New York Times", "Prank
Clancy" who was found dead in his swimming pool in Grenada on
May 5th was Richard Pelleto, suspected by the the Federal Bureau
of Investigation (FBI) of being the man who provided guns for the
slaying of "Crazy" Joey Gallo in a Maffia gun feud early in 1972.
According to the "Times", Pelleto and his Chinese-American wife,
Mona, owned the King Wah restaurant in the Little Italy section
of New York City not far from Umberto's Clam House on Mulberry
Street where Joey Gallo was killed.
Following the murder, Pellato is believed to have fled to New
Jersey where he stayed with an old friend, Eugene Zeek, a racehorse
trainer who had handled horses for Pelleto. In 1973, after
embezzling over US$1 million, Zeek fled to Grenada taking Pelleto
and two other companions and, since then, using the name "John
Clancy", has been operating a nightclub and charter yacht service.
On October 1.3th 1974, Pelleto married Evelyn Veronica Hosford,
one of Prime Minister Gairy's personal secretaries, but it is
reported that the marriage was not a success and she left
Pelleto some two months ago. Pelleto who passed as "John
Clancy's" brother, married Hoaford under the name of "Frank
In Grenada's official register of deaths, Pelleto's death is
recorded as that of "Prank Clancy" under the number 1639.
Death is recorded as having taken place on May 5th 1977 at
L'ance aux Epines, his age is given as 47 and the cause of
THE GREADA NkNESLTTIF Week Ending 21.5.77
death is given as "Acute Coronary Thrombosis. Isohaqemi Heart
Disease." The death was certified by Dr Dennis J Radix, the
person who performed the post-mortum.
GRENADA ESTABLISHES DIPLOMATIC RELATIONS WITH THAILAND
In a press release dated May 17th, the Grenada Information Services
announced that Grenada and Thailand have established diplomatic
relations at the Ambassadorial level.
According to the release, a joint communique to this effect was
signed in New York on April 16th by Ambassador Pranois Redhead on
behalf of the Grenada Government, and Abassador Pracha Guna?-Kase or
behalf of the Government of Thailand.
Non-resident Ambassadors are to be appointed in due course.
CRUISE LINER CALS
During the week ending May 14th, no cruise liners called at Grenada.
However, NENSLE'PTER has been advised that the official figures given
for the week ending May 7th omitted the "Sun Viking"which arrived on
Sunday 7th with 507 passengers.
On May 17th, the S S "Geestorest" sailed with 23,135 boxes of
bananas weighing 700,759 Ibs and valued dt EC091,098.00. There
were 722 boxes of rejected fruit.
20th May 1977