P 0 Box 65
*THE GRENADA SEWSLETTFA
Por The Week Ending July 23rd 3l77
OPECC LOAN FOR GRE2ADA
Grenada is to receive a loan of U8#350,000.00 from the B inal Fund
established by the Organisation of petroleum Exporting Countries
(OPEC) for extending financial assistance to developing countries.
This was disclosed at a meeting of the House of Representatives or
Wednesday (20th, when the OPE 'Funht dt was : enented-'a-d' 'tLa &d
through all its stages. This Act authorizes the Mi-nister of
Finance to raise this "loan "in accordance with thre'rms"a'nd'
conditions of and for the purposes set forth in the Agreement" which
was entered into on May 16th 1977 with OPEC and signed on behalf of
the Government of Grenada by Mr Oswald M Gibbs, High Commissioner to
According to this Agreement, no interest is chargable on the loan but
there is a Service -harge of one-half of 1i per annum to be paid "on
the principal mount of the Loan withdrawn and not yet repaid.", This
Service Charge is to be paid in dollars semi-annually on January 15th
and July 15th.
In executing the Loan, it is to be transferred in two equal portions
"to an account to be opened in, the ae of the Pund by the porrower
for this purpose in its Central Bani or. similar institution performing
the functions of a central bank'., In this connection, Grenada doen
not have a Central Bank, but it is understood that there have been
discussions with a view to transforming the East COribbeen Currency
Authority into a Central Bank serving the members of that Authority.
Concerning application of the Loan funds, the Agreement states that
they shall be used to "meet reasonable expenditures to be made by the
Borrower in respect of the following economic purposes only :-
(a) The importation of capital goods, spare parts and imputs requirLe
for agricultural or civilian industrial production.
(b) The importation of foodstuff and other essential consumer goods.
Following the transfer and expenditure of the first portion of the
Loan, the Government of Grenada is to "furnish to the Fund Management
a statement -from its Oentral Bank 5r 6rimilar inrtitutionh6 'tte effect
THE GRENADA NEWSLETTER Week Ending t3,7.77
that the amount of that portion of the loan has been uwed
exclusively for the above mentioned purposes ...." and, "1pon
acceptance of such evidence...", the second portion of the Loan
will be made available "subject to the same conditions applied
to the first portion."
One Section of the Agreement, Section 2.12, appears to give the
Government of Grenada the authority to use these loan funds on
projects and programmes not approved by the Lenders. This
Section says "... if within 12 months of the date of the transfer
of the first portion of the Loan .... no agreement shall have
been reached between the Borrower and the Fund Management on
the development projects) or programme(s) to be financed
... the Borrower shall immediately thereafter be entitled to
withdraw the total amount ...."
In these circumstances, however, the terms of repayment are
affected. The normal terms Wae that repayment be made in 40
equal semi-annual installments commencing on January 15th 1982.
In the circumstances mentioned above, repayment would be in 30
semi-annual installments commenting on the same date.
The OPEC Special Fund was established by an Agreement signed
in Paris on January 28th 1976.. Signatories are Algeria, Gabon,
Indonesia, Iran, Kuwait, Lybia, Nigeria, Qatar, Saudi Arabia,
United Arab Emirates and Venezuela.
HOUSE OF REPRESENTATIVES METS
At its second business meeting since General Elections on
December 7th 1976, the Grenada House of Representatives passed
a Resolution under the authoritytof the Custcmensotdiuano.-19606:
whiCh Resolution has the effect of repealing the rates of duty
on all items and replacing them with a new Customs Tariff.
The meeting of the House took place on July 20th, but the new
Tariff has been made effective from July 18th, and this Tariff
is revolutionary in that preferential duties on Commonwealth
goods have been eliminated, there being now only one rate for
,.9ch item of Imported goods, and it has been drawn up in
THE GRENADA NEWSLETTER Wtek Ending 23.7.77
agreement with the Governments of Antigua, Dominion, Montserrat,
St.Kitte-Nevia, St.Lucia and St.Vincent to provide a Common External
tariff for these countries which constitute the East Caribbean Common
However, allowances have been made for individual ECCM countries to
have the right, for a limited period, to apply non-tariff duties on a
limited number of items. In this connection, Mr George Hoaten,
Minister of Finance, told NEWSLETTER that Grenada will continue to
permit duty-free entry of flour, rice, saltfish, milk and drugs which
was a provision of his 1977 Budget. Mr Hosten s4id also that
Grenada will continue to charge the same rates on import duties on
gasoline. The Minister thought these exemptions from the new
Tariff rates would have a beneficial effect on Grenada's cost of
COmmercial circles have declined comment on the new Tariff until a
study has been made of it, but initial reaction has been that some
items of building material will become more costly while there will be
a reduction in the price of some foodstuff. It is also expected
that, as a whole, the motor vehicle market will be made more expensive
as vehicles from Commonwealth sources (estimated to be about 30% of
the market) will face a steep rise in import duties.
"AS IF THEY WERE NOT MARRIED"
The meeting of the House of Representatives last Wednesday (20th)
passed the Income Tax (Amendment) Act 1977 which provides among other
things, for the separate assessment of the incomes of husbands and
wives, "as if they were not married".
This Act also provides that income tax shall not be chargable on
interest payable by commercial banks to any person, but tax must be
paid by the banks on this interest at the rate of 20h. Banking
circles said today (22nd) that the full implications of this had not
been studied but it seemed likely that it might cause a downward
movement in the rates of interest now paid by the banks.
THE GRENADA NEWSLETTER Week Ending 23.7.77
SaWWU/GSA NEGQaiATIO1S AKE PROZQRES
Representatives of the Seamen & Waterfront Workers Union (Snw)
and the Grenada Shipping Agents (GSA) met on Tuesday (19th) under
the chairmanship of Mr Robert Robinson, Labour Commissioner, and
heed discussions relative to the Union's claim for a cost of
Negotiations in this connection began last December and, using
1971 as the base year, SWWU is asking for allowances varying from
356 to 40% covering different grades of worker. GSA has
argued against this allowance, claiming that a new Agreement
was negotiated in 1975, that wage. increases were paid in 1975,
1976 and 1977, and that "the percentage increases paid in those
years were seen as fully accounting for the decrease in the
purchasing power of the dollar in the respective years." It
was at this point that negotiations became deadlocked and GSA
referred the matter to the Labour' Commissioner.
A source close to the negotiations told NEWSLETTER today (22nd)
that the meeting last Tuesday (19th) made progress to the point
that it was agreed that a cost of living allowance would be
considered and that 1975 would be taken as the base year. The
source aai3 that it had also been agreed that the economic advisors
of the two sides, Mr George Brizan (SWWU) and Mr David Pletcher
(GSA), would meet this week for discussion, and negotiations
are expected to be resumed next Tuesday (26th) in the Labour
THE GRENADIAN COMPANY STATE&lT EXPECTED
Mr George Hosten, Minister of Finance, has promised to look into the
matter of the closing down of the offices of The Grenadian Company
Ltd, and to make a statement.
This Company, which was granted an exclusive 99 year licence to
operate an international lottery based in Grenada, placed tickets
on sale last November let but closed its offices on June 27th
when its employees were paid off and sent on "indefinite leave".
NEWSLETTER contacted Mr Hosten on Monday (18th) and asked for
THE GRENADA NEWSLETTER Week Ending 23.7777
a clarification of the situation relative to this Coipany, but the
Minister said that for some time, because of illness, he has not been
going to his office frequently and was out of touch with the
circumstances surrounding the Company. He undertook to make
inquiries in order to be in a position to make a statement but, to
date (22nd), this has not been done. ,
For some time now, there have been rumours of friction between the
Company and Government, but Government has made no statement and the
Managing Director of the Company, Mr Robert Hunt, is not in the island
WHEREABOUTS "BARBLARA'S" CAPTAIN UMKNOWN
Mr Denny Williams, Counsel for Captain Dan Meredith of the yacht
"Barbara" which was arrested here on June 30th, told NEWSLETTER today
(22nd) that he had not seen his client "for over a week" and did not
know where Captain Meredith is.
Acting for Captain Meredith, Mr Williams had the "Barbara" arrested
pending settlement in Court of a claim against the owner of the boat,
Mr Robert Moffitt, for US$930.00 unpqid wages and US$220.00 for plane
fare to Miami.
On June 13th, Captain Meredith checked out of the hotel where he was
registered and it is not known whether he has left the island.
Mr Williams declined to comment on what developments may result in
Mr George Beebe, Associate Publisher of the "Miami Herald", will
conduct in Grenada a workshop for journalists over the period 25th to
This workshop, which is sponsored by the Grenada Press Association,
will include discussions on design and layout, community relations,
sports coverage, editing and readership surveys. It is expected
that, in addition to Grenadian journalists, participants will be
drawn from St.Vincent, Trinidad and Curacao.
THE GREiaDA NEWSLETTER Week Ending 23.7.77
CHA PRESIDENT TO ADDRESS GHA MEETING
Mr Anders Wyberg, President of the Caribbean Hotel Assooiation.
(CHA), will deliver the feature address at the Annual General
Meeting of the Grenada Hotel Association (GHA) on Wednesday
In an exclusive interview with NEWSLETTER today (22nd), Mr Chalea
DeGale, President of GHA, said Mr Wyberg is a hotelier in the
Bahamas and "a man of wide experience in the hotel management field",
Mr DeGale thought his Association would benefit greatly from the
advice Mr Wyherg would give, and the GHA President thought the
occasion was important from another point of view. "Mr Wyberg
has never been to Grenada before", he said, "and it is essential
that he know, at first hand, the conditions under which we operate
so that, at regional level, he will be able to help us and give
his assistance to promote the Tourist Indiastry here."
On July 19th, the S S "Alsatia" sailed with 20,806 boxes of bananas
weighing 635,696 lbs. Geest Industries Ltd paid 28.267 E00 per
pound, making a total of E03179,692.18. The price paid to growers
by the Grenada Cooperative Banana Society was 14 ECO per pound on
the weight of bananas received at the boxing plants, but this
figure is not yet available. There were 340 boxes of rejected
The weight shipped by the "Geestorest" on July 42th (NLWSLETTER
for week ending 16.7.77 states July 4th in error) was 704,914 lbs
and the amount weighed in at the boxing plants was 729,120 ibs,
making a difference f'a,2Bs6 iba between boxing plant weight
and ahiDved weight. ,
22nd July 1977