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FOUNDED 17TH AUGUST 1973
For The Week ding28th.May 1983
llth Year of Publication- --- - 286th Issue
Volume 11 Number ?7
PRG BUYS HOLIDAY INN
Minister of Tourism Lyden Ramdhanny disclosed to NEWSLETTER on
May 9th that the Peoples Revolutionary Government (PRG) had
bought the burnt out premises of Holiday Inn on Grenada's Grand
Anse beach, and the hotel will be rebuilt and reopened on
August 1st under the name "Grenada Beach Hotel".
The Holiday Inn has not operated since October 28ta 1981 when a
fire of unknown origin destroyed the kitchen, hcuse ping de-
partment, maain dining room,.coffee shop, lobby and reception*.
area, administration office, residents lounge an4 some of the
boutiques doing business in the hotel. Apart from water
damage, the bedrooms were untouched but there was extensive
loss to roofs over the bedrooms.
Since then, there have been conflicting reports as to whether
or not the Holiday Inn proprietors would rebuild the hotel and
the matter seemed almost finalised last November when Minister
of Finance Bernard Coard announced that the PRG expected
shortly to sign an agreement with the proprietors for the re-
opening of the hotel.
"They have sent us down a package of draft contracts for us to
examine", he said, "and, therefore, we are at a fairly advan-
These negotiations were not finalised and Mr Randhanny said an
agreement to sell was signed by the Holiday Inn proprietors in
late March or early April. The Minister declined to dis-
close the purchase price but an informed source in the Tourist
Produced & Printed by Aister & Cynthiaj Huhes
P 0 Box 65, St.Georn-,- Grenada, wesinIles
THE GRENADA NEWSLETTER
H. ,,, ,,u 17
Industry said the figure could run to several million dollars.
Opened in 1970, this hotel is Grenada's largest with 204 rooms.
Minister -Ramdhanny said it will provide employment for about 125 per-
sons and the former Holiday Inn Assistant Inhkeeper, Grenada born
Mr Andre Cherman, now resident in Canada, is to return to manage the
In the long term, Mr Ramdhanny said, the PRG is holding discussions
with British Caledonia Hotel Management Services (an associate of
British Caledonia Airways), Holiday Inns of Canada and other hotel
management firms, for the handling of the new "Grenada Beach Hotel".
This hotel is the fifth owned by the PRG. The others are "Seascape
Inn" (9 rooms), "Horse Shoe Bay Hotel (12 rooms), "Hibiscus Inn" (10
rooms) and "Apple Inn" (8 rooms).
1984 IS "YEAR OF THE INTERNATIONAL AIRPORT"
Prime Minister Maurice Bishop had declared 1984 to be "The Year of
the International Airport".
According to the State owned and managed Radio Free Grenada (RFG), the
declaration' was made on May 13th as Mr Bishop launched the National
Planning Committee for the 5th Festival of the Revolution which takes
place on 13th March 1984.
Presenting his budget proposals earlier this year, Deputy Prime Minister
and Minister of Finance Bernard Coard indicated that the airport may be
opened on the anniversary of the March 13th 1979 revolution and, if this
goal is achieved, the project will have been completed in just over four
Grenadians first knew of the International Airport Project in November
1979 when the Prime Minister disclosed that, for eight months, the
Peoples Revolutionary Government (PRG) had held discussions with
several countries and organizations on the question of aid for con-
struction of an airport.
"The best offer we have at this time that can help us to make a start
this year has come, once again", he said, "from the one country that
has rendered the most assistance to our revolution over the past
eight months, the revolutionary Government of Cuba."
The official launching of the project took place on March 9th 1980
(the first rock blasting was on March 30th 1980) and,about a month
before that, the Project Manager, Mr Ron Smith, told a meeting of the
Chamber of Industry & Commerce that an estimate of the cost of the
undertaking was "of the order of US$60 million" and that, when com-
pleted, the runway would be classified as "A", which means that it
Week Ending 28.5.83
Week Ending 28.5.83 THE GRENADA NEWSLETTER Page 3
will be over 8,400 feet long.
Towards the end of 1980, work on the airport was reported to be pro-
gressing satisfactorily and the PRG then had hopes that over half of
the runway would be completed by the end of 1981 and the airport
would then be opened to smaller planes.
"At this point in time", the Prime Minister said, "we are about 3
months ahead of schedule on the project and our present hope is that
around this time next year (1981), we will be able to open the air-
port one year ahead of schedule."
This hope did not materialise and the target is now March 13th 1984.;
An informed source said however, that though the airport may be
opened and become operational on that date, it will be several
months after that before the project may be considered completed.
Most recent estimate of the cost of the project is US$71 million.
This figure is set out in an agreement signed by the PRG with the
Government of Iraq under which that Government agreed to lend the
PRG US$5 million to be used in the international airport project.
According to the details given in that agreement, Cuba is the
biggest contributor to the cost of the project, giving US$33.6
million in equipment, materials and man power.
BISHOP ATTENDS OBCS SUMMIT
Prime Minister Maurice Bishop flew out of Grenada on May 27th to
attend a summit meeting of the Organisation of East Caribbean States
(OECS) opening in Dominica on the same day.
On the agenda were discussions relative to trade, energy and the
sharing of certain facilities by OECS member Governments. The State
owned and manager Radio Free Grenada (RFG) said Mr Bishop would also
take up again the matter of restructuring of the University of the
West Indies (UWI).
The Peoples Revolutionary Government (PRG) has publicly stated its
opposition to restructuring which adopts the proposal that Trinidad
& Tobago, Jamaica and Barbados directly finance the.UWI campuses
those countries host, and RFG said Mr Bishop would present to the
meeting a paper putting forward the views of the PRG on restructur-
ing of UWI.
RFG said Mr Bishop would also tell the OECS meeting Grenada's view
that, in addition to being recognized as heroes, Westindian
cricketers should be rewarded materially. The reference to
"heroes" appears to be to those Westindian cricketers who, earlier
this year, refused attractive monetary offers to play in South
S- continued -
THE GRBNADA NEWSLETTER
Nineteen Westindian cricketers did accept those offers and were de-
clared persons non grata by the PRG: they have been banned from enter-
The Prime Minister was also to follow up on progress made towards im-
plementation of certain proposals he put forward at the OECS summit in
St Lucia last November. These include bulk buying, organising
cheaper regional transportation and the purchase of common text books
for Caribbean students.
SHART MADE AG AND DPI
Jamaican born Mr Richard Hart,65, Attorney at Law, Marxist and dis-
tinguished Westindian writer, has been appointed Grenada's Attorney
General (AG) and Director of Public Prosecutions (DPP) with effect
from May 25th.
Mr Hart came to Grenada last August as Legal Consultant to the Peoples
Revolutionary Government (PRG), at which time the post of AG was in
the portfolio of Mr Kendrick Radix, Minister of Justice. Mr Hart's
appointment relieves Mr Radix of this responsibility and he also holds
the post of DPP which was relinquished by his fellow Jamaican,
Mr Langston Sibbles, two months ago.
Mr Radix has been Grenada's AG since the revolution of 13th March
1979 but, initially, he was stationed in Washington, D.C., U.S.A.
Mr Lloyd Noel,:then a member of Prime Minister Maurice Bishop's New
Jewel Movement, acted AG but resigned from the post and from the
PRG in June 1980 because of "differences of opinion" with Mr Bishop.
Mr Noel is now a political prisoner, held in jail without charges,
having been arrested in July 1981 because of .his connection with the
publication of the independent "The Grenadian Voice" newspaper.
Mr Hart was a foundation member of Mr Norman Manley's Peoples
National Party in Jamaica from its establishment in 1938 until 1952.
"I was one of those of the 'left' whom Norman ousted", Mr Hart told
NEWSLETTER, "and we formed the 'people's Freedom Movement', but it
never really got off the ground, mainly because there was a further
split among us."
In 1963, Mr Hart moved to Guyana to edit the "Mirror" newspaper,
a publication which supports the left-wing views of Dr Cheddi Jagan,
but quit that country in 1965 to take up residence in Britain.
Week Ending 28._5 83 THE, G:E*RW' EWS LETTER Page 5
"At that stage, I had s4arificed'.my pradcice in Jamaica", he said,
"and my plan was to work for five years in the United Kingdom and
then return to Jamaica, but it did not work out that way."
Mr Hart was employed in the United Kingdom as Head of the Legal
Department of the Waverley District Council in Surrey, a post he
held until he accepted employment with the PRG as Legal Consultant,
taking the position of Mr Miles Fitzpatrick who had returned to his
Grenada's new Attorney General is the author of several publications,
among them being "Slaves Who Abolished Slavery", "The Cuban Way",
and "Aspects Of Early Caribbean Struggles".
PRG TO GIVE US$28,000 FOR CRICKETERS
Responding to a suggestion from the Westindies Cricket Board of
Control (WICBC), the Peoples Revolutionary Government (PRG) has
pledged to support a proposal under which Caribbean Community
(CARICOM) Government will share the cost of offering three year con-
tracts to outstanding Westindian cricketers.
According to the State owned and managed Radio Free Grenada (RFG),
the PRG received the proposal on May 27th from WICBC President Alan
Ray, and has agreed to provide US$12,000 in the first year and
US$8,000 in each of the following two years.
Commenting on this development, Prime Minister Maurice Bishop told
RFG that his Government believes cricket is a unifying factor in
CARICOM, and the PRG is pleased to suppohd t'hi WICBC' proposal..
"Grenada is willing to beart,pour share of the cost"; he said. "We
think it is extremely important and,.given the emphasis we place on
Caribbean cricket and sport generally, and the tremendous potential
of sport for acting as a unifying base for our people, we think it
will be money well spent."
Mr Bishop referred to the controversial tour of South Africa in
January by 19 Westindian cricketers and said material rewards
should be given to those Westindian cricketers who refused the South
African offer to play in that country. The Prime Minister said
those cricketers who turned down the South African offer should be
saluted as heroes.
Page 6 Tp- GRENAQA NBWSLTTTER Week .ndinq 28.5.83
OECS DISPLEASED W4JH JAPAN
Government, Economic Mini ters of the Ordanisation of Bast Caribbean
States (OECS) have expressed their concern anddispleasure: over the
reported refusal of Japah to assist in the development of the orgah-
This, was disclosed on May 27th by the State owned and managed Radio
Free Grenada .(RFG), and the station said the expression of concern
and displeasure was made on May 26th at a one day meeting of the
Ministers held in Dominica.
RFG said that, through the Barbados based Caribbean Development Bank,
Japan has been asked by OECS for special funds to finance development
projects, Adcordihg to RPFG OBCS member countries have reported
that Japan continues to ignote the request*
OECS was established on 5th October 1981 following a treaty signed
in St kitts on 18th Jine 1i81 bi the Gooveinents of St Kitts, Antigua,
Montserkat, bomihica, St iitcia, St Viiceht and Grehadda
The Grenada .delegation.to, tho meebihg in Dominica on May 26th was
headed by Foreign:Ministet' nison 'Whitetmarin
PLANNING TRAINING COURSE IN USSR
One of the honefits of Prime Minister Maurice Bislopcs visit to the
Soviet Union last July was disclosed on May 13th with the announce-
ment by the State owned Radio Free Grenada (RFG) that a delegation
was to leave theisland that day for Russia to take part in a train-
ing course in planning.
Headed by the Permament Secretary in the Ministry of Construction,
Mr Michael Prime, the 10-man delegation was drawn from several
Government Ministries and, in Moscow, will receive instruction from
the State Planning Committee of the USSR.
On his return from his state visit to Moscow, Mr Bishop said
Russian assistance is given for "principled and fraternal" reasons
and, sometimes,,the assistance is linked to theobjective of 'ten-
suring the further development of the world socialist movement ...
The training course has been arranged under an agreement covering
technical and economic cooperation between Grenada and the Soviet
Union signed during Mr Bishop's visit to Moscow last year. RPG
did not say how long the course will last.
Week Ending 28.5.83 'THE GRENADA NEWSLETTER Page 7
UNESCO AID MISSION IN MAY
Two experts from the United Nations Educational, Scientific & Cul-
tural Organisation (UNESCO) were due to arrive in Grenada at the end
of May on an aid mission.
This was announced by the State owned Radio Free Grenada on May 13-h,
and the station gave the names of the experts as Dr H Irvine and
Mrs Ursula Albertus.
The visit of Dr Irvine and Mrs Albertus follows a recent meeting in
Jamaica of Caribbean Community (CARICOM) Government Ministers res-
ponsible for science and technology.
Referring to that meeting when he attended a meeting in Grenada in
April of CARICOM Minsiters responsible for UNESCO affairs, Mr Hugh
Cholmondeley, UNESCO representative to the Caribbean, said the
Jamaica meeting had decided that efforts and resources should be
concentrated on agro-industries and scientific and technological
RFG said Dr Irvine will carry out a two-week consultancy relative to
national associations working in the fields of science and energy,
and he will also made recommendations for the structuring of fact-
ions involved in the areas of science and technology.
Mrs Albertus was expected to assist with the establishment of a data
bank on socio-economic development projects, RFG said.
COURSE FOR AGRICULTURAL EXTENSION OFFICERS
The 16th annual in-service course for Windward Islands Agricultural
Extension Officers was opened on May 9th by Minister of Agriculture
Sponsored by the Canadian International De&elopment Agency (CIDA),
the first of these training courses was held in 1966, and this
year's exercise has some 50 participants of which 15 have been drawn
from St Vincent, St Lucia and Dominica.
Mr Louison told the Extension Officers that one of their main tasks
is to improve the skills of farmers, and he urged them to do this
through the introduction of better cultivation methods.
The Extension Officers were addressed also by Dr Tom Henderson,
Head of the Agricultural Extension Faculty at the University of the
West Indies campus at St Augustine, Trinidad.
Dr Henderson said the course was intended mainly to bring Extension
Officers up to date on modern agricultural ideas.
Page 8 THE GRENADA NEWSLETTER Week Ending 2815.83
The course, which ended on May 20th, included tree crop management,
soil conservation and farm management.
In anticipation of the opening of the international airport at Point
Saline on Grenada's southernmost tip, the Peoples Revolutionary
Government has named 1984 "The Year of the International Airport".
"The Year of Political & Academic Education" is the name given to
the current year and 1982, 1981 and 1980 were, respectively, "The
Year of Economic Construdtion", "The Year of Agriculture & Agro-
Industries" and "The Year of Education & Productions"
ECGD OFFICIALS VISIT
A spokesman for the British High Commissioner's Representative
stationed in Grenada, on May 17th announced the expected visit to
the island of two officials of the Export Credits Guarantee Depart-
Ment (ECGD) of the British Government.
The spokesman said Messrs David Overy and Anthony Redmayne would
arrive here on May 18th for a stay until May 25th, during which time
they would look at the macro-economic planning system in Grenada.
The programme for the visit included discussions with Minister- of
Finance & Planning Bernard Coard, Minister of Agriculture George
Louison and Minister of Tourism Lyden Ramdhanny.
Also planned was a visit to the international project now under
construction at Point Saline, in which connection ECGD has given
insurance cover to the British firm of Plessey Airports Ltd which
,won a 6.6 million sterling contract to supply a variety of goods
and equipment for the airport.
ECGD was established soon after the end of World War I as a depart-
ment of the British Government, its purpose being to provide pro-
tection to British exporters, merchants, investors and banks against
overseas credit risks. Main risks include insolvency of the buyer:
governmental action which prevents payment to the exporter, war and
ECGD insurances protect about a third of Britain's export trade.
Week Ending 28.5.83 THE GRENADA NEWSLETTER Page 9
RUSSIA BUYS NUTMEGS
The Russian ship "Boris Zhemchuzhin" was berthed at the St Georges
docks on May 9th loading 500 tons of nutmegs for the Soviet Union.
This is the second shipment of nutmegs bought by the Soviets under a
government-to-government agreement. The first shipment left
Grenada last May when the Russian ship "Alapayevsk" loaded 300 tons.
Informed sources said each shipment is arranged inder a "one-time"
contract and it is too early to say when/if there will be another
The Grenada Cooperative Nutmeg Association (GCNA), the sole exporter
of Grenada's nutmegs, has been experiencing vary unfavourable mar-
ket conditions over the last four years. World market prices
have deteriorated steadily and the shipment made by the "Boris
Zhemchuzhin" reflects the downward price trend in that it has been
negotiated at a price which is lower than the price covering the
shipment last May.
A source close to GCNA told NEWSLETTER that sales continue to be low
and at depressed prices.
FOREIGN EXCHANGE EARNINGS DOWN
Provisional figures published by Government's Central Statistical
Office (CSO) indicate that Grenada's foreign exchange earnings
through domestic exports last year were down by nearly 5% as com-
pared with 1981.
The value of domestic exports in 1982 was EC$47.8 million and this
figure is 4.9' less than the 1981 figure of EC$50.2 million.
A breakdown of these figures shows-that,in 1982, cocoa exports were
down by 30.9% to EC$12.5Smillion from the 1981 figure of EC$18.1
million. Bananas fell by 8.7% to EC$9.1 million from EC$10
million and nutmegs made a very small gain. This latter
commodity rose by just over EC$1,000 (or 0.01%) from the 1981
figure of EC$8,150,453.
Non-traditional exports, however, performed well. These include
flour and garments, and exports in 1982 rose by 28.4% from the 1981
figure of EC$14.0 million to BC$18.0 million.
The retail ptice index stood at 179.4 points in December 1982 from
a base of 100 points established in January 1979, and this re-
presents an increase of 7% over the December 1981 figure of 167.7
points. Presenting his 1982 budget proposals last March,
Page 10 THE GRENADA NEWSLETTER weeK nadlng o. .0o
Minister of Finance Bernard Coard:gave this figure of 7% as the in-
flation rate in 1982 and, on that basis, the "real" figure for import-
ations into the island in 1982 dropped from the 1981 figure.
According to CSO, imports in 1982 were EC$151.2 million, an increase
of 3.1% over the 1981.figure of EC$146.7 million. On the basis of
the 7% inflation rate, had Grenada's imports remained static from
1981 to 1982, imports in the latter year would have totaled EC$156.9
million. However,, they tota.l_ only SC$151.2 million, representing
a "real" fall of nearly EC$6 million.
Other figures published by CSO show that tourist arrivals were down in
1982 by 1.1% to 24,864 from the 1981 figure of 25,145. This is the
smallest drop recorded since 19799 arrivals for that year and 1980
being, respectively, 32,101 and 29,562.
Private remittances and other private transfers through:the Banks
and Post Office were up in 1982 by 35.5% from the 1981 figure,
Statistics relative to these remittances covering the years 1977 to
1982 are, respectively, in millions of East Caribbean dollars, 12.2
12.8, 33.4, 30.3, 36.8 and 49.9.
Government revenue also showed an increase in 1982, rising by 15%.
Figures for 1978 to 1982, in millions of East Caribbean dollars are,
respectively, 34.9, 44.2, 47.0, 47.8 and 55.1.
The index of retail sales for December 1982, based on a limited survey
and relative to a base of 100 points established in January 1980,
stood at 173.4 points, an increase of 23% over the December 1981
figure of 140.5 points.
RAMDHANNY ON TOURIST PROMOTION TRIP
Minister of Tourism Lyden Ramdhanhy left Grenada on May 28th for an
eight-day visit to the United States which will take him to New York
and Washington.: :
Director of Tourism. Miss, Jane Belfon old NEWSLETTER Mr Ramdhanny
will host a reception in New York for tour operators and travel
agents, and she felt this initiative will enhance the already
improving situation in Grenada's Tourist Industry.
"Over the past five months", she said, "there has been an increase
of over 500% in inquiries from North America, and it appears that
the American public has begun to realise that the negative propa-
ganda we have had to face is no more than just that, ,propaganda'."
Miss Belfon said that, six weeks ago, Mr Ramdhanny made a promotion
trip to cities in Canada and the eastern United States and, coupled
THE GRENADA NEWSLETTER
with advertising done since last December, this has resulted in a
current 5.8% increase in visitor arrivals from North America.
Following his visit to the United States, Mr Ramdhanny will attend
the 7th Annual Caribbean Tourism Conference which takes place in
Montego Bay, Jamaica, from 14th to 17th June.
PARENTS BAN OFFSPRING FROM SCHOOL OF MEDICINE
Dr Geoffrey Bourne, Vice Chancellor of the St Georges University
School of Medicine, confirmed to NEWSLETTER on May llth that, be-
CAuse of what he called "adverse political publicity" in the tLnited
States, some parents of new.students have prevented their offspring
from coming to Grenada to join the new class which opened in .iay.
Dr Bourne said 120 students have come to join this class but he dis-
agreed with unconfirmed independent reports which state that over
60 students have failed to arrive.
"I think that figure is exaggerated", he said, "and, while I do not
have the actual figures before me, I do not believe it is more than
twenty or thirty who have been stopped from coming to Grenada."
The Vice Chancellor said this new intake of students is relative"'to
a programme being operated by the School in conjunction with-the
Catholic University of Barry in Miami, Florida.'' Until now, the
School has taken in students twice a year, in January and August,
he said, but, under this programme, there will be a third intake in
The first semester will be done at the. School in Grenada, the
second and third at Barry and the fourth at Grenada, Dr Bourne said,
and he estimated that the programme will bring an additional 300
students to Grenada annually.
Answering a query as to what the School intends to do to counter
this development which is frightening away students, Dr Bourne said
he hoped to get a letter from the Peoples Revolutionary Government
which will be sent to the parents of the students advising them .
that it is perfectly safe for their children to come to Grenada to
"I feel sure that, when they realise that their fears are ground-
less", the Vice Chancellor said, "they will all be reapplying for
entry to the School."
Week Ending 28.5.83
Page 12 TEB GRENADA NEWSLETTER Week Ending 28.5.83
MOTOR VESSEL OVERDUE
A 65-foot Grenada built and registered motor vessel, the "Humming Bird",
on May 14th was 21 days overdue on a trip from Trinidad and may have
Owner of the vessel, Mr Valantine Alexander, said the "Humming Bird",
which is captained by a person he knows only as "Small Boy", left
Grenada about the middle of April carrying 10 souls, but he was
unable to say how many people were on board when she left on the
100 mile trip from Trinidad to Grenada on April 23rd. Mr Alexander
told NEWSLETTFR he did not know either what cargo she carried.
"I have appealed to the Minister of Housing, Mr Norris Bain, for
assistance in this matter and he has promised to speak to Prime
Minister Maurice Bishop .o that a searc-h can: be made for the boat".
Mr Alexander said, "but I have not heard anything and it seems that
nothing is being done."
Contacted by NEWSLETTER, Mr Bain said everything possible was being
done. The Ministry of Foreign Affairs had been in touch with
the Governments of Curacao and Venezuela, he said, and a'search was
"The owner of the boat de3ayod for som time before he reported
the matter to us", Mr Bain said, "and this may prove an adverse
factor in the success of the search."
"Humming Bird", built by Mr Alexander himself, was launched on New
Year's Day 1980, and has been engaged in the trafficking trade
between Grenada and Trinidad.
NEW JUDGE APPOINTED
The Governor General, Sir Paul Scoon, has appointed Mr James
Aloysius Patterson, 50,. to be a Judge of the High Court with
effect from 15th April 1983.
Mr Patterson, who is Guyanese, replaces another Guyanese,
Mr Satrohan Singh, who resigned from his post late last year
before completing his contract with the Peoples Revolutionary
It is reported that Mr Singh is now a Judge of the Supreme Court
of the Organisation of East Caribbean States, formerly the
Supreme Court of the Associated States of the West Indies.
Mr Patterson was -born 'in Georgetown, Guyana on 22nd August 1933
and, following his early education in that country, qualified in
Britain in 1964 as a barrister at the Middle Temple.
THE GRENADi NEWSLETTER
Practicing his profession in London from 1964 to 1969, he then re-
turned to Guyana and entered private practice there in 1970. In
1972, he accepted an appointment as State Counsel in the Chambers of
the Guyana Director of Public Prosecutions (DPP) and, two years
later, held the post of Senior Police Legal Advisor in the office of
Mr Patterson returned to private practice om 1974, leaving this to
accept his appointment in Grenada.
Mr Patterson is a Regional Director of the School of Ministry es-
tablished by evangelist Morris Cerullo and is a member of the Full
Gospel Business Men's Fellowship International.
his appointment to the Grenada Supreme Court was published in the
Grenada Government Gazette of April 22nd 1983,
QBCS COUNTRIES ACHIEVE 'MINIMAL GROWTH'
The East Caribbean Ctrrency Authority (BCCA) reports that, examin-
ing indicators available to the Authority, it has come to the con-
clusion that the economies of the Windward and Leeward islands, the
countries of the Organisation of East Caribbean States (OECS),
achieved 'minimal growth" in 1982.
Worldwide recession led to a fall ii World trade last year, ECCA
says, and this created serious adverse effects. These comments
are on the Authority's Report for ihe last quarter of 1982, which
document says that, because of this recession, there were'sharply
reduced prices for the primary commodities from which the Windwar.ds
and Leewards "derive substantial portions of their income.
"The. prices of commodities, particularly sugar, nutmeg, mace, Cocoa
and arrowroot, which are important to the economies", the Report
says, "fell substantially during the year."
ECCA, the Monetary Authority managing the common currency of
Grenada, St Vincent, St Lucia, Dominica (the Windwards), Antigua,
St Kitts/Nevis and Montserrat (the Leewards), publishes a quarterly
Report which includes an economic survey of the Area it serves.
That Report also includes details of financial developments in the
In addition to the fall in prices of primary commodities produced
in the Area, the Report says, there were other factors which ad-
versely affected the economies of the OBCS countries, Two of these
factors listed are the fall in output of some commodities (notably
bananas) and the doWn-turn in the Tourist Industry in a number of
Week Ending 28.5.83
Page 14 THE GRENADA NEWSLETTER Week Endin g., 2.5 8,
According to BCCA, these developments gav' ride to a deterioration in
the Area's balance of payments position and this is reflected in a loss
of EC$25.6 million in the Authority's net foreign reserves.
Analysing the Banana Industry in the Windward Islands, the.Report says
total exports from the four islands fell in 1982 by 2.7% in volume and
by 6.5% in value as compared with 1981. Actual export figures in
metric tons are 109,970.in 1981 and 106,981 in.1982, relative values
being respectively EC$103.8 million and BC$97.0'million.
The traditional mar-'
ket for Windwards Windward Island Banana Exports
bananas is the Uni- '" 1 -1981
ted Kingdom but, Metric Tons 8o00 Metric Tons BC$000
according to aminica 27,116 34,852 26,493 26,397
according to a re-
port made to BCCA renada 10,095 8,957 11,201 10,573
by the St Vincent' 0t Lucia 43,060 .38,963 42,849 39,501
Banana Associatio, t..Vilcent 26,710 24,291 29,427 27,365
stiff competition total :- 106,981 97,063 109,970 103,836
in that market was
faced in 1982 from bananas originating in other parts of the world as
well as from an abundance of other fruits available on the U.K. mar-
Concerning the Tourist Industry, the ECCA Report says that, while
visitor arrivals to the Area may have remained at approximately the
same level in 1982 as in the previous year, earnings are likely to
have fallen as some hotels appeared to have offered reduced rates,
Quoting statistics, the Report says St Lucia's stay-over visitors
increased by 2.2% and cruise ship passengers to the island went up by
73.6%. St Kitts/Nevis stay-over visitors fell by 2.4% but cruise
ship passengers increased by .2.7%. Final figures for Antigua were
not available to BCCA but early indications suggest to the Authority
that that country had a marginal increase in stay-over visitors and
a substantial decline in cruise ship passengers.
Using the Authority's "weighted average index" for the Area, the
Report records a drop last year in the rate of inflation.
According to that index, the inflation rate in 1981 stood at 9-5%
but, in 1982, there was a dramatic drop to 2.9% which, the Report
says, is consistent with the general decline in world wide inflation.
"The lower rate of world inflation in 1982, compared'with 1981", the
Report says, "was brought about by restrictive economic policies,
mainly in the industrial countries, and the decline in energy prices
due to over supply."
- continued -
THE QRENADA NEWSLBTT R
The Report refers to a decline in the foreign abilitiess appearing
on the Authority's balance sheet and says these liabilities arose
largely out of ECCA's indebtedness to the CARICOM Multilateral
Clearing Facility (a mechanism established for settlements within
the Caribbean Community (CARICOM)).
After being in a debtor position with the Facility since it ws es-
tablished, last December the Authority moved into a EC$13.3 million
position of credit with a consequent decline in its foreign liabil-
This development, the Report says, is due mainly to a change in pay-
ment arrangements for oil obtained within the CARICOM region.
In its Report for
the quarter end-
ing 30th Septem-
ber 1982, 8CCA
pointed tb a
in the value of
money in circul-
ation and said
this is an in-
dication of the
of the Area's
In its end-of-
Money In Circulation 1982
Notes Coin Total (Decrease)
'81 125,919 9,020 134,939
9, 741 126,365,
9, 893 120,971
December 1981 to
Report for 1982, the Authority, also referring to the value of
money in circulation, records an increase of only 3 ,8% in 1982 as
compared with 1981. In the latter year, the increase was 8.7%
over 1980 and the small increase in 1982, the Report says, reflects
the Area's lower growth in economic activity in 1982 as compared
In an analysis of the trading of Commercial Banks in the Area, the
Authority says the ratio of advances to deposits remained stable in
1982 with the Banks lending a little more than 80 cents of each
dollar deposited with them. In 1981, the ratio was 82.3% while,
in 1982, it was 84.3%.
According to figures published by BCCA, the Banks in the Windward
islands have, over the years 1979 to 1982, consistently loaned a
higher .percentage of their deposits than have the Banks in the
Leewards. Windwards.banks in 1979 loaned 78 cents of every
dollar deposited with them whi.e Leewards Banks loaned only 70 cents
Week Ending 28.5.83
PT!HE GRENADA NEWSLETTER
In the years 1980, :198 and 1982; the ratio of Windwards to Leewards
in thiS respect was respectively, in rounded figures, 84/76, 85/79
An analysis of money lodged with.th. Commercial Banks indicates
interesting trends in the patterns of savings and monetary invest-
ment by the people of the OECS.
The rate of increase of sums placed in Demand Accounts and in Savings
Accounts has declined over the 1979 to 1982 period while there has
been a considerable growth in the rate of increase of sums placed
in Time Deposits, especially in the Leewards.
Time Deposits are sim.$ of money placed with the Banks for a fixed
period of time and'on which'interest is paid, while Demand Accounts
are current accounts with chequing (and sometimes overdraft)
facilities. No interest is paid on credit balances of Demand
Accounts. Savings Accounts earn interest, usually at a lower
rate than Time Deposits. These Accounts do not usually have
chequing facilities nhdar4 not' permitted overdrafts.
Demand Deposits in the Area rose by 14.9% between 1979 and 1980
and by 10.8% between 1980 and 1981, but the rate of increase fell
to only 2.2% between 1981 and 1982. The .fall was particularly
noticible in. the Leewards whero-, -after increases,,of 27.7% and
21.0% between' 1979/1980 and 1980/1981 respectively, there was a
dramatic change in 1981/1982 when Demand Accounts had a negative
growth of minus 1.7%.
This trend is paralleled with Savings Accounts where the Area re-
corded rates of increase of 8.4% between 1979/1980 and 14.9% between.
1980/1981, but achieved a negative growth of minus 2.6% between
1981/1982. The figure for the Leewards between 1981/1982 was a
negative growth in Savings.Accounts of minus 8.4%.
Time Deposits in the Area, on'the other hand, have increased
steadily. Between 1979/1980, the increase was 16.9% while,
between 1980/1981 and 1981/1982, the increases were, respectively
22.6% and 34.7%. In the Leewards, the increases were 20.7%
between 1IW9/1980 and 24.3% between 1980/1981, with a spectacular
49.8% jump upwards between 1981/1982.
It is interesting to note that, over the period 1979 to 1981,
Savings Accounts carried the heaviest deposits in the Area but, in
1982, were displaced from this position.
Irn 1979, the total of these accounts in the Area was EC$355.0
million, which figure was more than twice the sum in Demand Accounts
and nearly half as much more than the sum in Time Deposits.
Week Ending 28.5.83
WTE GRENADE! --WlMLifflER
In 1980, this ratio remained basically the same and, in 1481, while
there was an improvement in the position of Time Deposits ainda fall-
back in the position of Demand Accounts, Savings remaihet the front
In 1982, there was a reversal of positions. Demand Accounts re-
mained with the smallest sum lodged with the Banks but Time Deposits
took over the leading position from Savings, the former exceeding
the latter by nearly EC$9.0 million dollars.
Deposits With Banks
1979 To 1982
94,322 + 8.25
61,844 +20.98 74,819 1.67
102,112 + 4.62 106,832 4.92
163,956 +10.79 181,651 + 2.21
111,585 +24.30 138,710 +49.78
154,622 +21.43 187,764 +23.57
266,207 +22.63 326,474 +34.71
Leewards 137,321 + 9.17
Windwards 217778 .+ 7.96
Total 355,099 + ,8.43
149,909 +22.96 184,337 8.36
235,118 + 9.75 258,040 + 1.69
385,027 +14.90 442,377 2.60
448.228 + 9.73
323,338 +23.04 397,866 +13.04
49.1852 +12.36 552,636 + 9.75
815,190 +16.60 950,502 +11.13
According fo the ECCA Report, domestic credit .in the last quarter of
1982 increased by BC$21.7.million to BC$890.0 million-. Of this
increase, loans to the Private Sector totalled EC$10.0 million,
credit to business firms standing at BC$422.9 million at the end of
Credit to business firms during the last quarter of 1982 was domin-
ated by loans to ventures involving Tourism and public utilities,
the Report says, but loans to agriculture, the dis1tibutive trades
and to construction and land development ll declitied significantly.
Personal loans increased by EC$3.8.million to BC$249.1 million after
showing a slight decline in the previous quarter, 4eeward island
Banks carrying BC$102.0 million and Windward island Banks EC$147.1
million. continued -
Week Ending .8,5.83
THE GIRNA A NEWSLETTER
Based on. ,. estimated population of the:'Leewards and Windwards (138,000
and 394,000 respectiveQly), thepe loans represent advances of SCV$39;.00
. .._ -- ____ _,--* i- _U n i -- - ** t- ~-.r-- -.-- -
This represents a slight change
Commercial Bank Loans "
from the third quarter of 1982 By Sector
when theo relative figures, were'-' !M
BC$725..00 and BC$367 ;00 per cap- C. With
ita. Dec. Sep.T 4c .
In its 31st December 1982 quar-
terly Report, the Authority
made no predictions for 1983
but, in the previous quarterly
Report, reference was made to
the fact that,the recovery of
the economies of the OECS
countries depends on the re-
covery of the economies of the
Industrialized countries, a
recovery of which, the
Authority said,'there were, as
Agriculture : -5.7
Tour sm 52.4
Ent ert ainment
& Catering 9.2
yet, -no clear signs.
- 0.4 + 2.0
- 461 + 12.7
+ 5.9 + 16.7
+ 0.8 + 1.6
+ 0.6 2.7
+ 2.8 + 2.8
- 2.7 + 9.0
"Most economic forecasts suJ- .
gest modest expansion in 1983", ECCA said, "though these forecasts have
been repeatedly moved further and further into the future. 4In any event
there will be a substantial lag period between an eventual revival of
economic activity in the industrial countries and the transmittal of
the beneficial, effects'to the economies of the Area."
Depos its Loans %. Depsits Loans
277,311 194,128 70.00 448,228 349,197
323,338 247,269 76.47 491,852 414,879
397,866 312,844 78.63 552,636 469,010
449,754 365,564 81.28 606,520 524,433
Total Leewards & Windwards
Percentage Of Deposits Mage In Loans, 1979 19
28th May 1983
Printed &.,Published by the Proprietors: ,
Alis er & Cynthia Hughes Journalists
of Scott Street, St Georges, Grenada Westindies
Week Ending 28.5.83
f.s 18 !