Volume 7 Number 20
For The Week Ending June 16th 1979
7th Year Of Publication - - 218th Issue
EX-MINISTER OF FINANCE JOINS COMMERCIAL FIRM
Mr George Hosten, Minister of Finance in the Government of deposed
Prime Minister Eric Gairy, is now a Director of the Grenada firm
of Messrs Maria Scott & Co Ltd.
Sources close to the Company told NEWSLETTER today (16th) that
Mr Hosten's appointment has effect from June 1st and the plan is
that, on retirement of the present Managing Director, Mr D M B
Cromwell, he will assume management of the firm.
Mr Hosten was a Civil Servant and Principal Secretary to then Chief
Minister and Minister/Eric Gairy in 1961 when the Field Commission
of Inquiry looked into the control of public expenditure in
Grenada. At that time, Grenada was a colony and the Field
Report was presented to the British Parliament in May 1962.
That Report found that, as Minister of Finance, Mr Gairy was
"apparently bent on error" and had made it clear to the then
Administrator, Mr James Monteith Lloyd, that he would "neither
welcome nor consider any advice which would have the effect of
delaying expenditure until it had been properly examined and
The Commissioners found that Mr Gairy took no steps to obtain
proper advice but, instead, "relied for such financial advice as
Produced & Printed by Alister & Cynthia Hughee
P O Bo 65, St.Georges, Grenada, Westindies
Page 2 THE GRENADA NEWSLETTER Week Ending 16.6.79
|he thought he might need, on a Principal Secretary, Mr George Hosten,
twho, on his own evidence, had no understanding of the laws and
!regulations governing expenditure and who, by his demeanour under
!examination, convened a regrettable impression that such matters
were of no account."
As a result of the Inquiry, Grenada's Constitution was suspended and,
shortly after the Commission reported, Mr Hosten left Grenada and took
|sp residence in Canada. He returned from that country in 1967 to
join Mr Gairy's Grenada United Labour Party and contest successfully
the St.Georges North-East seat in the General Elections of that year.
He was successful also in the same Constituency in the General
Elections of 1972 and 1976, his tenure of office as a member of the
House of Representatives coming to an end on March 13th last when,
following the revolution, he was taken into preventive detention by
the People's Revolutionary Government. Shortly after his arrest,
he fell ill and was confined to the General Hospital, his order of
Release becoming effective on April 24th when he was released from
NEWSLETTER is reliably informed that Mr Hosten will represent Maria
Scott & Co Ltd in the Grenada Chamber of Commerce.
CEMENT PROJECT. GOES AHEAD
The revolution of March 13th has had no effect on the plan to erect
a cement factory in Grenada and plans are going ahead for the ground
Breaking ceremony to take place in October. Production is
iex.ected to start some 14 months later.
jThis was disclosed to NEWSLETTER today (16th) by Mr B N Davis,
Managing Director of Grenada Cement Co Ltd who said he had held
discussions with the People's Revolutionary Government (PRG) on his
project. "I spoke with the Minister of Finance, Mr Bernard
.oard, two weeks after the revolution", he said, "and the project
THE G#RNADA NEWSLTt
IGrenada Cement CQo ttd was incorporated on September 15th 1978 with
an authorised capital of BC$20 million. There are 200,000 shares
of EC$100 each but, according to documents filed at the Registry,
only two shares have been issued. These are to Mr Davis who is
Managing Director "until he dies or resigns", and to his wife,
Mr Davis described as "satisfactory" discussions he held in Grenada
this week with officials of the Caribbean Development Bank (CDB)
relative to a loan to finance the project. He declined to
disclose the size of the loan required but said the matter is "in
the pipeline" and is expected to go before the CDB Board of Directors
An Austrian firm of engineers, Messrs Voest Albino, has been given
the contract to erect the EC$6.6 million plant which will be located
on a three-acre lot in the Grand Anse area near the entrance to and
on the opposite side of the road from the True Blue Development.
The factory will supply, not only Grenada's needs, but an export
programme is being arranged and some 30 persons will be employed.
Managing Director Davis said he had been able to assure the PRGthat
the plant will do no damage to the ecology of the area in which it
will be located. "The Minister of Finance showed some concern
over the possibility of damage to the ecology of the area,, he said,
"but we had our people give a scientific report which cleared up
The raw material ("clinker and gypsum), Mr Davis said, goes into
the plant at one end and, from that point, the entire process is
enclosed and no particle of dust is allowed to escape. At the
other end of the plant is the storage silofrom which the bagging
process, also completely enclosed, takes place. For bagging,
cement is drawn by vaccum from the silo through tubes to the bags
which are sewn automatically when they have been filled with a
certain weight of cement.
The Managing Director said the Company is now a private one in
whichh there is local participation only. Plans are, however,
iGovernment permitting, to make it into a public Company eventually
in which Grenadians will have an opportunity to buy shares.
"People are more attracted to a going concern", Mr Davis said, "and
when we get the project going, my plans are to make it into a public
company and to offer shares."
SUGAR CROP DOWN
Grenada's 1979 sugar crop is over 13% down from the 1978 crop, and
the ratio of tons of cane ground to tons of sugar produced is only
In 1978, 583 tons of sugar were made from 11,283 tons of cane,
resulting in a ratio of 19.353 tons of cane to one ton of sugar.
!Production in 1979 dropped to 524 tons of sugar from 9,799 tons of
-ane, a ratio of 18.7 to 1. NEWSLETTER is advised that, in other
s'lgar producing Caribbean countries, ratios above 10 to 1 are
'Well informed sources advise that a considerable portion of the
1979 crop was not reaped for the reason of a shortage of trucking
facilities. These sources say that an offer by the Grenada Sugar
IFactory to purchase four trucks to transport farmers' canes was
turned down by Government on the advice of the Cane Farmers
,association. The Factory is said to have been prepared to
.nivest some EC$60 thousand in the trucks, provided Governments,
Would waive import duty and consumption tax.
hbe Sugar Factory grinds canes of farmers who belong to the Grenada
Cane Farmers Association and, since 1977, a special arrangement has
ien in effect. The Factory buys the farmers' canes at EC$40 per
on and, at the end of the crop, 60% of the net profits goes to the
farmers in the form of a "bonus" after 10% has been taken out for the
!In 1977, under this arrangement, the bonus was EC$8.63 per ton, but a
-spute arose in 1978 because the bonus figure fell to BC$3.77.
'4ter Government intervention, tle..Company's'Auditors, Messrs Peat,
Week Ending; 16-.6899
THE GReNADA NEWSLETTER
Week Bjaing 16,6.79 THE GRBNADA NEWSLETTER Page 5
Marwick, Mitchell & Company,are reported to have recommended an ex
grktia payment of EC$62,509.00 to the cane farmers, which payment
brought the bonus figure up to EC$9.31 per ton. The Company's
Directors are said to have accepted this recommendation in order to
avoid "political repercussions".
The bonus for the 1979 crop will not be known until September after
the Company's books have been audited. Pannell Fitzpatrick & Co
are now Auditors to the Company.
Sugar Tons Cane
Produced To I Ton
1972 9,323 595 15.609
1977 9,080 513 17.700
1978 11,283 583 19.353
1979 9,799 524 18.700
JONES MADEIRA VISITS
Mr Jones Madeira, Communications Consultant to the Caribbean
Communi y (CARICOM), visited Grenada this week as part of a regional
tour in preparation for Caricom Day which is to be celebrated on
Mr Madeira told NEWSLETTER that, before coming to Grenada, he had
been to Barbados, Jamaica, Belize, Antigua and St.Lucia, and he 4
would be proceeding to Trinidad before returning to Guyana.
"For the Caricom Day celebrations we usually focus a lot of
attention on the Secretary-General who reviews the integration
movement over the last year", Mr I4adeira said, "and, this year, the
review will be done by Dr Kurleigh King from a studio in, Georgetown
linked by radio with three or fotr radio stations in the region."
Page 6 THE GRENADA NEWSLETTER Week Ending 6.6.79
The plan is, Mr Madeira said, that, at each of these radio stations
will be a leading Westindian journalist who will question Dr King and,
in effect, there will be an hour long regional press conference.
Plans are not yet complete, he said, but it is hoped that the link-
up will include Jamaica, Barbados and Trinidad & Tobago. It is
his hope to include one of the smaller Eastern Caribbean islands in
the plan, but he thought available facilities and personnel may make
While in Grenada, Mr Madeira interviewed Prime Minister Maurice
Bishop and, together with interviews with other Caricom leaders,
this interview will be broadcast as part of the programme for Caricom
BARCLAYS STUDIES BGWU DRAFT AGREEMENT
The Bank & General.Workers Union (BGWU) has submitted a draft
Industrial Agreement to. Barclays Bank for study, and it is expected
that negotiations will begin in about two weeks.
Mr Vincent Noel, BGWU President, told NEWSLETTER today (16th) that
the draft Agreement was handed to Barclays on Wednesday (13th) and
he expected that, in about 10 days time, the Bank will get in touch
with him to make arrangements to discuss the wage proposals and other
matters in the Agreement.
Since October last, BGWU has been trying to get recognition rom
Barclays as the bargaining agent for the Bank's employees, but,
until recently, in spite of sick-outs and picketing, these efforts
have been unsuccessful. The main source of disagreement was that
She Bank was willing to discuss a "Recognition Agreement" with the
Union, which Agreement would limit the areas in which the Union
could represent and negotiate on behalf of employees. On the
other hand, BGWU wanted outright recognition without limits.
I"Two days after the revolution", Mr Noel told NEWSLETTER, '"Barclays
.ent BOWU a letter restating that :hey were willing to discuss a
I1X"cognition Agreement with us, and then, on the following day,
Week BE~ng 16.6.79 THE GRBNADA NEWSLETTER Page 7:
March 16th, before we had had time to reply to their first letter,
they sent us another in which they advised that they gave their
unconditional recognition to the Union."
Mr Noel said there is the matter of the dismissal of Mr Carl Griffith
which still has to be settled. Mr Griffith, said to have been
employed by the Bank for 31 years, was dismissed on November 23rd
last year, reportedly for "incompetence". The Union alleges that
the dismissal was victimisation because of Mr Griffith's trade union
activities, and the matter was taken to Court. Hearings began
last year and are due to be continued on June 19th.
SWWU MID GSA TO MEET
The Grenada Seamen & Wa'terfront Workers Union (SWWU) and Grenada
Shipping Agents (GSA) are to meet on Monday (18th) to discuss an
Industrial Agreement in connection with which SWWU says GSA is
dragging its feet.
On June 9th, SWWU wrote GSA threatening to take "necessary and
expedient" action if the Industrial Agreement was not ready for
signature within 14 days. According to the Union, negotiations
relative to the Agreement were concluded on July 3rd 1978 but, in
spite of "many reminders and prodding" to have it signed, there has
been "no positive attempt" by GSA to have this done.
Sources Close to GSA deny this, however, and say that, as late as
April 27th last, SWWU and GSA had discussions and GSA agreed "to
look at it (the Agreement) again and get back to them."
Mr Eric Pierre, SWWU Secretary, told NEWSLETTER today (16th) that
his Union has received a letter from GSA, and the two Bodies will
meet on Monday (18th) to "sort out the situation".
Junior Ministers Appointed
People's Law Number 35 of May 31st appoints Mr Gellineau James to
THE GRENADA NEWSLETTER
be Secretary for Agriculture in the Ministry of Agriculture,
Tourism & Fisheries. The same law appoints Miss Caludette Pitt
to be Secretary for Social Affairs in the Ministry of Education,
Youth and Social Affairs (Community Development, Cooperatives &
Sport). (47 words)
Caribbean Lawyers Investigating.
Two barristers-at-law from Guyana and one from Barbados are now in
Grenada carrying out special legal investigations on behalf of the
People's Revolutionary Government. They are Messrs Miles Fitzpatrick
and Roy Fairclough of Guyana, and Mr Bobby Clarke of Barbados.
A Notice in the Government Gazette of June 8th says these barristers
are attached to the Ministry of Legal Affairs and Attorney General's
Chambers, and asks that, if approached, the general public give
these investigators assistance and cooperation. (79 words)
Christian Has Two-Year Contract.
Government Gazette of June 8th announces that Mr Desmond Christian
has been appointed Director of Public Prosecutions on contract for
two years with effect from May 1st.
,Mr Christian, who was then the island's Attorney General and
'Director of Public Prosecutions, was deported from Grenada by the
:Gairy Government on August 3rd 1976. (51 words)
Treasury Bills Offered
Offer of the 25th issue of Treasury Bills closed on Jane 12th.
This offer is for the amount of EC$2 million and will be redeemed
on 16th September next. (30 words)
No Carnival In 1979
Because Carnival celebrations (Monday and Tuesday before Ash
Wednesday) clashed with Independence Celebrations (February 7th)
in 1978, Carnival was celebrated last year on the last Monday and
tuesday in May, 29th and 30th.
i:t was expected that Carnival celebrations would be on the last
aday and Tuesday in May, 28th and 29tl but, following the
Wee. -Endln 6.6.79
Week *dinq 16.6.79 THE GRUNADA NEWSLETTER Page 9
revolution of March 13th, there was no announcement in this
connection, and the dates have passed without celebration.
Venezuela Gives Oil
NEWSLETTER is reliably informed that the Government of
Venezuela is to make a gift of a large quantity of oil to
relieve the present shortage at Grenada Electricity Services.
This shortage is as a result of a cut-back on deliveries by
the Esso Company. (46 words)
Mr Kendrick Radix, Grenada's Ambassador to the United Nations,
returned to the island on Thursday (14th) for the first time
since the revolution'of March 13th. Mr Radix was one of
the New Jewel Movement leaders who had their homes searched
by the Police on March 10th, and who went into hiding on that
day. He left the island before the coup.. (60 words),
MARKET FOR EXOTIC FRUIT IN UK
There is a market in the United Kingdom for "exotic" fruit produced
in the Windward Islands and the necessary transport facilities
already exist through the British buyers of Windward Islands bananas
Geest Industries Ltd.
This is the opinion of Dr Morgan-Reese, Head of the Marketing &
Economics Department of the UK based Tropical Products Institute
(TPI), and Dr Morgan-Reese said that, with suitable ecological
conditions to grow this fruit existing in the Windward Islands, and
with the growing demand in the UK, fullest advantage should be taken
of the opportunity to diversify agriculture.
The TPI official, who visited St.Lucia from May30th to June 1st,
expressed the view that the Windward Islands Banana Association
(WINBAN) can play an important role in developing the techniques of
selection, chemical treatment for control of disease, determination
of correct shipping temperatures and proper packing and presentationI
Dr Morgan-Reese held discussions on this matter with Mr D A Perryman,
iWINBAN Managing Director, and Dr B Edmunds, Director of WINBAN
Research, and these two officials agreed that WINBAN could play an
Important role in the development of an export market for exotic fruit.
It was felt, however, that there would have to be the fullest
.cooperation of all concerned, and that there must be adherence to a
WINBAN PRESIDENT AT ACOBAT MEETING
Mr Ivo Sinson, President of the Windward Islands Banana Association
(WINBAN), represented the Association at the meeting of the
Association For Cooperation In Banana Research In The Caribbean
& Latin America (ACORBAT) held in Panama from May 20th to 25th
;Mjor feature of the meeting, which was attended by some 200
!delegates from 15 countries, was a symposia on the banana disease,
eaaf Spot. Leading world scientists were present and discussed
'research information in this field, development of resistant strains
and methods of control.
':his is ACORBAT's fourth meeting singe the Association was founded
'.n St.Lucia nine years ago. Founder members include WINBAN,
IIRFA (Martinique, Guadeloupe and French Guyana), Jamaica Banana
3oard, University of Puerto Rico, University of the West Indies,
and the Governments of Surinam and Trinidad & Tobago.
IACORBAT is registered in Martinique as a non-profit organisation.
I ,. ^ -
Week Ending 6.6.79
THE GRENADA NEWSLETTER