Volume 7 Number 17
For The Week Ending May 26th 1979
7th Year of Publication - - 215th Issue
GOVERNMENT'S OVERDRAFT REDUCED DRAMATICALLY
The amount owing by the Government of Grenada to the Commercial
Banks Jo the form of overdrafts has been reduced dramatically and,
on April 23rd, stood at only BC$40 thousand.
This information was given by Minister'of Finance Bernard Coard
when he addressed the Annual General Meeting of the Grenada Chamber
of Commerce on Thursday (24th). Mr Coard said that, at the end
of January, the Gairy Government had exceeded by BC$20 thousand the
EC$2 million overdraft provided by the Commercial Banks and, by the.
end of February, this had been reduced, only slightly, to EC$1.8
"The revolution took place on March 13th", he said, "by the end'of
March the overdraft had been reduced to EC$1.1 million and, by the
end of April, it had been further reduced to EC$600 thousand."
The Minister thought this was a "remarkable achievement" because,
he said, the reduction at the end of April had been achieved after
"the massive drain, including the BC$1.7 million monthly pay-roll,
which the Treasury experiences at the end of each month."
Giving more up-to-date figures, Mr Coard said that', on March 23rd
Government's overdraft at the Commercial Banks had been EC$583.1
thousand. "On April 23rd", he said, "the figures had improved
and the overdraft 4ad gone down to EC$484 thousand, and yesterday,
Produced & Printed by Alister & Cynthia Hughes
P 0 Box 63, St.Georg Grenada, Westindies
,. W" .
Pae 2 'THE GRENADA NWSSLB'TR WT ll s....u r
May 23rd, at the end of the day's business, the overdraft was only
EB$40C 1 thousand. In other words, we are almost in the 'black'."
The Minister said Government insisted that it wanted to be judged by
results and not by rumour, gossip, propaganda or 'malicious old talk'.
""We are only asking you to judge us by results", Mr Coard said, "and
these results, by any standards, must be impressive in that, in such
a short space of tine, the situation, in terms of budgetary control,
has been turned around."
The Minister said his Government has two main objectives relative to
budgetary control, and the first is to cut recurrent expenditure as
far as possible, channeling the saved money into capital development
projects such as roads, electricity, telephones, water, sewerage,
housing and agro-industries.
"It is true", he said, "that we can get money outside for these
capital development projects but, you know the saying,J'God helps
those who help themselves' and, if we try to raise capital development
sums from our own resources to start off our work, people abroad will
take us more seriously and will be willing to assist us."
The second objective, the Minister said, was "increasing worker
productivity in the public sector." Mr Coard said that, all over
the island, roads are being repaired but this has involved very little
more expenditure because road-workers have been working twice as hard
since the revolution.
"And", he continued, "there is also the fine spectacle of large
numbers of Civil Servants, voluntarily and out of a sense of zest and
commitment, working until sometimes six, seven and eight in the
evenings and even on week-ends. This is unheard of anywhere else
in the Caribbean and this is a good sign too, because the
transformation and development of the country will require long hours
Mr Coard said Governments plan is to maintain the existing "capital
stocks" of the country in roads, housing, water and such, and also to
undertake the development of new capital stocks such as construction
*f new roads, development of new water systems, develop nt of agro-
Week Ending 26.4.79_ THE GRENADA NR WSLETTER Page 3
industries, fisheries and forestry.
"Just as vital, if not more vital", the Minister said, "the
Government is deeply concerned with human resource development,
because we see the development of human resources as, when a-l is
said and done, the key to the development of the economy of Grenada.'
Furthering the development of human resources, he said, the
Government has already spent EC$300 thousand in repayments to the
University of the West Indies (UWI) and, at the end of May, will pay
another BC$100 thousand towards the debt owed to UWI. The Minister
said that, as a result of these payments, UWI has advised that i.ey
will start taking a limited number of Grenadian students this year.
"As a Government, we have stated, from the very beginning, our
commitment to honouring debts even though we are extremely angry
about some of the debts uselessly, wastefully and corruptly entered
into by the former Government', Mr Coard said, "but we think it is
important, nevertheless, to honour these commitments and we have
demonstrated that in practice, not only with UWI, but with other
agencies, organizations and individuals. However, we call on
everyone to recognize that we cannot repay 30 years of Gairyism
Speaking on the subject of foreign investment, the Minister said
that, since the revolution, the Government has been inundated, and
continued to be inundated, with proposals by foreign investors to
invest in Grenada, particularly in the tourism sector and in the
oil exploration field. There had also been proposals for
investment in light 'industries and agro-industries. *
Mr Coard said Government welcomes foreign investment provided it
serves the needs of Grenadians, but this welcome is not "uncritical"
and there are at least five requirements which will be demanded when
foreign investment applications are being considered. "we do not
expect them to fulfil all these requirements", he said, "but we do
expect them to fulfil some of them."
First, he said, the investment must be foreign. He pointed out
that there are foreigners who coma to invest and expect to. riie
Page 4 HHE GRENADA NliEWSLWTR We$k Endincg26.5.79
capital from local banks, thereby competing with Grenadians for capital.
'Gyernment does not regard this as "foreign investment", he said.
Secondly, the investment must bring in technology not already available
'in Grenada, and which is relevant to the island's needs and is adaptable
!to its circumstances.
Another requirement is that the investment create employment. "Let us
face it", Mr Coard said, "half our people are out of work and this is
one of the most fundamental, economic realities of the present situation,
and, perhaps, the twin problems immediately facing the Government and
people of Grenada are this massive unemployment level and the
Government's budgetary situation."
The fourth area which will be looked at is whether the foreign investment
will have a serious impact on reducing the cost-of-living. Historically,
he said, some foreign investment has led to an increase in the cost-of-
living. Items produced locally ended up costing more, not as a
!temporary infant industry, but on a permanent basis, it cost the
,consumer more than if the items were imported.
Finally, there is the question as to whether certain types of foreign
investment may open up new market opportunities abroad which would not
be available otherwise. This includes specialised markets, he said,
land new markets which are difficult to penetrate.
the Minister said, however, that there are certain types of foreign
investment which are not acceptable in Grenada. "You also have 4
number of clearly maffia types and maffia elements, vultures and fly-
by-ight operators", he said, "who are also interested in gambling
of all sorts, casinos of all sorts, prostitute joints of all sorts,
and these elements, too, have been making their approaches, both from
the files and since the revolution. Of course, we have dispatched
hem because we do not have any intention of setting up any gambling
o-r casino or any types of facility df that sort in Grenada."
Dealing with the role of the private sector in development, Mr Coard
-?id Government's overall strategy is that of a mixed economy. This
1a-ns, he said, that Government wifl be engaged in revenue earning
2ntures both on its own and in joint venture with foreign and local
Week 3Bding 26,5.79 THE GRSPbHA NEW SLLEXTRF Page 5
capital. At the same time, Government will encourage and give
assistance to the private'sector 'within reason".
"The private sector is of critical importance in Government's
development strategy", the Minister said, "but Government is not
there to spoon-feed, change nappies and molly-coddle the private
sector". There have been foreign and local businessmen who take
the approach that the role of Government is to remove all of the risk
factor, he said, but, as he understood it, the justification for the
private sector was its risk taking.
Concluding his address, Mr Coard said that, in developing the
economy, everyone had to become waste-conscious and must aim to
increase employment to the maximum level possible. At the same
time, there must be an aim at maximum productivity, the enhancement
of human resources and achievement of an improvement in the quality
of life of the workers, consumers and the people generally.
CUBANS FLY OUT
The Cuban Technical Economic Assistance Team which paidta nine-day
visit to Grenaga was an integrated team of experts competent to deal
with water, roads, housing, fisheries and health.
This was told to NEWSLETTER by the Cuban Charge d'Affairs, Senor
Julian Torres Rizo, on Friday (25th), the day the eight-man team
flew out of the island. Senor Torres emphasised the cooperation
the team received from Government and from officials, and said he
is confident the outcome of the visit will be successful.
The Charge d'Affairs said possibilities had been explored for
improving the water supply to St.Georges and for research to be made
into the island's water problems. The road programme was discuss3e
with plans being made to improve the quality of future road building.:
and the possibility of building a new airport was looked into.
The team also discussed the public health situation and there is the i
possibility that Cuban doctors, dentists and medical specialists will
come to work in the island. continued1
Page Te GRENADA.N Kek F Week ending_ 26.5.79
"Concerning fisheries", Senor Torres said, "we looked into the
possibility of teaching Grenadian fishermen the new.techniques, and
we think some Cuban experts could come here to work side by side with
Grenadians and also that a Cuban fishing boat could be stationed in
!Grenada for training purposes".
iThis Cuban team, which was led by Senor Octavio M Castilla Ferry,
jDirector of the Cuban State. Committee for Economic Collaboration,
arrived in Grenada on May 17th.
PREVENTIVE DETENTION TRIBUNAL
The Preventive Detention Tribunal has now completed its hearings of
iall cases submitted to it by political prisoners.
NEWSLETTER for the week ending 19th May gave details of hearings then
scheduled and, subsequently, the following hearings have been dealt with.
Car ton. Alexis
The connections of these detainees are not known.
To date (26th) the number of persons in preventive detention remains
at 74 and the names of these persons are :-
,Abraham, Albert -DeSousa, Norman LaCrette, Ian
S*Abraham, Fits-Albert *DeSousa, Raymond .Lewis, Osbert
iAlexander, Sonny co!.-* Donovan, George
.Alexis, Carlton 'Madrid, Johinn
*Alexis, Hubert Fletcher, H B *Masanto, Winston
nAllridge, Aldon '.Forsythe, Albert 'Mason, Godwin
Andrew, Bernard 41 7'T, -Francis, Adonis .McBain, EB n-
Andrews, Kenneth 3ri1.)' .Frank, JoW'1. -MSWeen, T'--
F" raiser Rf". Mitchell, Thomas
'Baptiste, K Frederick, jugustine
*Benjamin, C S6 *S'' Felix, Everast Neckles, C
B Benjamin, Godwin 'Noel, Norton
*Bishop, Moslyn *Gilbert, Edmond
*Bishop, Willie sPassee, Dudley
q Brian, P Hallal, JLsrT ,' .-7 .Patrick, bDnnelly
*Harry, John *Patrick, Steadman
yCampbell, M)l(eiL .Hood, Alston *Paul, C
*Charles, Claudius 'Phillip Noble
Cherman, Anthony26-7;7? .James, Cletus DPope, Dltonl
Church, Ashby' v! : James, Osbert *Preudhomme, Htibert
S Clarke, Albert 'John, P
*Clarke, PRannei~r *Jones, Francis
i" Coomansingh, D *Jonas, Terrance .- ;
*Joseph, Abraham Steadman
Week Ending 26.5,79 THE GB9h 8 NMEwSLITR Page 7
.Raeburn, Oliver .Telesford, OstR
'Redhead, Clifford *Thomas, Chrysler
Rennie, Neville .
Richardson, Cosmos *Ventour, Aird
,Rullow, George -Whyte, Ctrr''re
The Preventive Detention Tribunal is provided for by People's Law
Number 8, and Dr Adolph Bierzynski was appointed Chairman.. The
other two appointees are Mr Bryce Woodroffe and Mrs Alice McIntyre.
The Tribunal is to make recommendations to the Minister for Security
who has the final word as to whether any detainee will be released.
The Tribunal commenced hearings on April 26th and NEwsLETTER
understands that its recommendations have been forwarded to Prime
Minister Maurice Bishop who is Minister for Security. To date
(26th), none of the detainees whose cases were heard by the Tribunal
have been released.
TORCHLIGHT's CAM A STILL NOT RETURNED
Nick Joseph, Acting Editor of the Grenada 'Torchlight' newspaper,
told NEWSLETTER today (26th) that the newspaper's camera has not yet
been returned by the Police.
A reporter for the newspaper, Richard McDonald, had his camera
confiscated on May 18th when he went to Fontenoy, some two miles
north of St.Georges, to investigate an alleged dispute between the
Principal of a private school, Major Fred Cowing, and the builders
of a community centre.
Major Cowing objects to the erection of the community centre (which
is being built some 15 feet from his boundary) on the grounds that
it will interfere with the operation of his school. The
community centre is a Government project and, when reporter McDonald
attempted to take photographs, he was attacked by the workers on the
site who seized his camera and forced him to take refuge in the
Page 8 THE GsRBWMA&f ILSEBR Week Ending_26.5.79
Two armed members of the People's Revolutionary Militia (PRM) arrived
on*the scene followed by a Policeman who took McDonald away, at the
same time assuring the PRM that, if any pictures had been taken, they
would not be published. McDonald was not detained but his camera
was held and, it is understood, the negative was developed for
Close to the private school and the proposed site of the community
centre is a gasoline tank farm which is a restricted area. There
has been no Government statement on this matter but the confiscation
of the camera and film is probably because photographs are not
allowed in that area. *
Acting Editor of the "Torchlight", Nick Joseph, told NEWSLETTER
today (26th) that he has been advised by the Sergeant in charge of
the Central Police Station that a formal application should be made
to the Commissioner of Police for release of the camera.
COOPERATIVE BANK PRESENTS ACCOUNTS
The Grenada Cooperative Bank Ltd, familiarly called "The Penny Bank"
twill present its 1978 accounts to its shareholders at the Annual
General Meeting of the Company fixed for Tuesday June 12,th.
These accounts show a net profit of EC$43 thousand for the year
endingg 30th September 1978, which figure, plus a balance of EC$47
thousand brought forward from the year before, makes a total of
EC$90 available for distribution. The Directors recommend
that, with this figure as a basis, 10% divjdedd be paid on
preference shares and 14% dividend on ordinary shares.
The Grenada Cooperative Bank Ltd was established in 1932 and opened
lits doors to business the following year. The Bank now has an
Luthorised capital of EC%1.5 million, of which BC$30,000 is in 5%
to 10% preference shares and the balance in $1, $5 and $100 ordinary
shares. These ordinary shares are valued respectively,
aC$120,000, BC$500,000 and EC$850,000.
'. f the preference shares and the $1 ordinary shares have been
Week Ending 2(.5.78 THE GRENADA NEWSLETTER Page 9
issued and fully paid up. None of the $5 ordinary shares have been
issued but 2,386 of the $100 ordinary shares have been sold, 42 -
within the last trading year.
A probable reflection of Government policy can be seen in the pattern
of 9doits made with the bank over the last four years. As a
result of the Banking (Special Deposits) Act passed in 1975, the
foreign Banks reduced their ILoans & 'be;sits
rates of interest on 1973 To 1978
deposits and this appears to Million
BCS___ -_.---- -----
have resulted in a flow of
deposits from the foreign
Banks to the local 4 -
Cooperative Bank which is "A" -- -
not affected by the Act. I"
Until 1975, both deposits 2 L -
and loans maintained a
fairly even figure but, from
1976, there has been a 0 '973 1974 1975 1976 1977 1978
continuing sharp increase in "A" Loans
deposits and, from 1977,
loans have taken an upward trend.
During 1977, the Bank embarked on a programme of expansion and, on
November 7th of that year, opened its first branch. This was in
Grenville on the island's east coast and, on March 12th 1979,
another expansion step was recorded with the opening of a branch at
Sauteurs on the northern tip of Grenada.
This expansion programme has probably robbed the Company of recording
for the first time an annual profit of over EC$ 100 thousand.
Except for a slight drop in 1974 (the year of civil unrest in
Grenada), net profits have shown a steady climb from the EC$59.7
thousand figure of 1973 and, after the record net profit figure of
EC$96.8 thousand in 1977 a jump of over 10% above the previous
year, it could have been expected that the figure for 1978 would
have exceeded the EC$100 thousand mark.
Page 10 THE GRENADA NEWSLETTER Week Ending 26.5.79
However, heavy expenditure in land and buildings, and general and
administrative expenses related to the Company's expansion programme
(including extensive renovation
Sof the Head Office in St.Georges)
Thousand reduced the net profit earned to
C- a figure somewhat below the 1973
S, This is reflected in the accounts,
60 h. i- .::;,,. : .
S' but a spokesman for the Bank told
40 .' NEWSLETTER that actual and
,3 i potential operations of the two
I ,l] branches are considered to be
0 '' more than adequate to make the
1973 1974 1975 1976 1977 1978
investment of cash profits
worthwhile, and this is expected to be reflected in the results of
the current year.
Grenada Cooperative Bank Ltd
1973 To 1978
Capital Issued 384,400 388,600
!General Reserve 475,000* 475,000
1Fixed Assets 109,439 244,635 The sum of EC$S00,000
Net Profit 96,832 45,010 was transferred from
General Reserve in
(Loans 3,484,241 4,320,103 1977 to make provision
iDeposits 4,305,231 5,188,086 for doubtful debts.
DISMISSED CIVIL SERVANT CLAIMS VICTIMISATION
V Civil Servant, Mrs Kathleen Carberry, claims, in a letter published
:n the Grenada "Torchlight" newspaper, that she was dismissed from the
3Srvice on May 2nd for allegedly divulging official secrets.
Week Ending 26.5.79 THE GRENADA NEWSLETTER
Mrs Carberry's letter was published in "Torchlight" of May 6th,
following which she left the island. On ner return recently,
NEWSLETTER sought an interview but this was not given. Her
published letter, therefore, must be referred to for details of the
At the back of the story is a news item published in "Torchlight" on
April 25th. That story said plans were being finalised for the
Government of Cuba to finance the Grenada Government's youth
programme, The programme is to be launched shortly, "Torchlight"
said, and will involve some 15,000 Grenadians ranging from 16 to 25
years old for training in agriculture, teaching aid skills,
community health, feeder road construction and housing.
Mrs Carberry, who worked at the Ministry of Education, says in her
letter that she was briefed on discussions which took place on April
23rd between the Minister of Education and a "Cuban advisor". These.
discussions, she said, covered Youth For Reconstruction programmes,
and, as Social Extension Officer (Youth), she, together with other
members of the staff, was told, on the same day (23rd), about the
plans being made.
"Not being aware that the information received was an 'Official
Secret'", the letter says, "I, quite enthusiastically, and in the
privacy of my home, told my husband about the path my future work
Two days after, the article, under the headline of "Cuba to Finance
Grenada Youth P'Gramme", appeared in the "Torchlight" and
Mrs Carberry was questioned by Mr Norbert Fletcher, the Permanent
Secretary in the Ministry of Education, as to whether she had told
anybody about the information she received at the Ministry.
Mrs Carberry says she admitted having spoken to her husband,
Mr Eslee Carberry, who is a journalist, but denied any knowledge
as to whether he had given the story to "Torchlight"
On April 27th, Mrs Carberry was asked to see the Minister of
Education, Mr George Louison. "I did so", the letter says, "and
he put it to me quite bluntly that he called me about the article in
Page 12 THE GREBADA NEWSLETTER Week Ending 26.5.79
"Torchlight", as he understood from Mr Fletcher that I admitted to
having spoken to my husband who, in turn, spoke to the "Torchlight".
I then denied that this was so."
Mrs Carberry said the Minister accused her of breaching the Official
Secrets Act and said disciplinary action would be taken against her.
On May 2nd she was notified that her services were no longer required.
"It is ironical", says the letter, "that with all the rethoric of
no victimisation, the right people for the right jobs regardless
of political affiliation, that I, a qualified Youth Worker holding
the Diploma in Social Studies from the University of London, a
Certificate in Community & Youth Work from the University of
Birmingham, various other courses, and several years of experience
in Youth & Social work in England, should be sacked so ignominiously
for allegedly leaking 'secrets'."
A spokesman for the Government told NEWSLETTER today (26th) that
Cuba has not agreed to finance Grenada's Youth Programme. The
spokesman said Mrs Carberry was told of plans the Ministry of
Education has for youth development, but these plans are not being
financed by Cuba and nothing of this was said to Mrs Carberry.
The spokesman said also that the Cuban Charge D'Affairs did have
discussions with the Minister of Education on April 23rd, but these
discussions were merely a part of general talks being held with all
Ministries relative to the visit of the Cuban Technical Assistance
Team which was due to arrive in Grenada mid-May.
"Mrs Carberry was dismissed", the spokesman said, "because, not only
was it evident that, through her, matters discussed at high levels
were reaching the press, but those matters were embellished with
supposed facts which were embarrassing to both the Grenada Government
and the Government of Cuba."
BANKS PAY GOVERNMENT BC$27.7 THOUSAND
The Commercial Banks in Grenada have paid Government BC$27,772.16
Sunder the Banking (Special Deposits) Act. Passed in 197f this Act
Week Ending 26.5.79 THE GRENADA NEWSLETTER Pag 13
.demands that the Banks pay to Government all money in accounts which
have been "dormant and unclaimed" for six years. Depositors may
claim within a year, failing which, the money lapses to the
The Commercial Banks in Grenada, Barclays International Ltd (Barclays
The Royal Bank of Canada (Royal), The Canadian Imperial Bank of
Commerce (CIBC) and the Bank of Nova Scotia (Scotiabank) paid together
BC$436,448.54 to Government in 1976 when the Act was first operated.
In 1977, only Royal.and CIBC paid any money and this totalled
The Grenada Cooperative.Bank Ltd has not been made subject to the
provisions of the Act.
Last year, again only Royal and CIBC paid and the total was
EC$40,606.95, while figures for 1979, now published in the Government
Gazette, show that collections have been made from CIBC, Barclays and
Scotiabank. The CIBC amount is EC$1,984.66 from 11 accounts,
Barclays EC$1,732 from 43 accounts and Scotiabank EC$6,774.99 from
In addition, Government has published a list of dormant and
unclaimed accounts at Scotiabank which were due last year. There
are 143 of these accounts and they total EC$17,292.20.
JP returned to Archibald
Mr Fisher J Archibald has been made a Justice of the Peace with
effect from May 16th. This appointment .is announced in the
Government Gazette of May 18th and reverses the announcement in the
Government Gazette of July 18th 1975.
In that year, acting on a sworn statement and as a Justice of the
Peace, Mr Archibald issued a warrant for the arrest of Eric Gairy,
then Prime Minister, two members of the Police Force, Innocent,
Belmar and David Andrews, and a member of the Police Aids or i. ..
IWg ,4_ THE-GRBNADA NBWSLETTERB. : Ending 26457
"Mongoose Gang", Terrance Jones. The arrest was in connection
with the parts these people had played in an incident on Novembe-
18th 1973 when three members of the New Jewel Movement wete beaten.
The Police failed to execute the warrant and Mx Archiba4d's
appointment as a Justice of the Peace was revoke-.
S" (140 wods)
Governor General Sir Paul Scoon returned to the State on May 14th
from a visit to London where he was invested by the Queen on May 4thj
Sir Paul left the island on April 28th and, during his absence,
Mr Alan LaGrenade acted in the post.
Fire-Setting Student Deported
Jerry Thomas',.25, US born and a student of the St.Georges University
School of Medicine, was deported from Grenada on May 19th following
an agreement made to compensate Government for the loss of a cottage
occupied by Thomas and destroyed by fire on May 6th.
It is reported that, at the time of the fire, Thomas was mentally
unbalanced. The fire at this cottage was one of two fires taking
place on the evening of May 6th and referred to by Prime Minister
Maurice Bishop in a national broadcast on May 8th. Mr Bishop
said then that the two fires were significant in view of information
he had that the United States. Central Intelligence Agency has plans
to destabilize the Grenada Government.
( 118 words)
Poor Response To Bishop's Invitation
An invitation issued by Prime Minister Bishop to the Governments. of
the smaller countries of the Eastern Caribbean has ha ,Apoor
The invitation, issued on April 12th, was addressed to the
Governments of St.Kitts/Nevis, MOntserrat, Antigua, DominicSa,
St.Lucia and St.Vincent, and asked the Heads of Government of those
islands to visit Grenada on the week-end of April 20th to 23rd for
Week Ending 26.5.79 THE GRENADA NEWSLETTER Page 15
frank discussions on what was called "apparent differences" between
Grenada and these countries.
NEWSLETTER is reliably informed that only one Government responded.
NEWSLETTER's sOurce declined to name this Government but said the
invitation had been accepted.
A typographic error appears in the penultimate paragraph of a story,
"Trade Unions Get Compulsory Recognition", on page 5 in NEWSLETT".
for the week ending May 19th.
Reference is made in that paragraph to "People's Law Number 18".
This reference should be to "People's Law Number 29".
NEWSLETTER regrets this error.
_ I __ j