The Grenada newsletter


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The Grenada newsletter
Physical Description:
v. : ill. ; 36 cm.
A. & C. Hughes
Place of Publication:
St. George's, Grenada, West Indies
Publication Date:
twenty no. a year
completely irregular


Subjects / Keywords:
Periodicals -- Grenada   ( lcsh )
Politics and government -- Periodicals -- Grenada   ( lcsh )
Economic conditions -- Periodicals -- Grenada   ( lcsh )
Social conditions -- Periodicals -- Grenada   ( lcsh )
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Dates or Sequential Designation:
Began in 1973.
General Note:
Description based on surrogate of: Vol. 11, no. 1 (Jan. 22, 1983); title from caption.

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IPage 6 Saturday st August 1987 The Grenada Nevsletter


SPM. Updates OutS ASStters
P.M. Updates Outstanding Matters

i Declarations of the assets of all Ministers of the
tn aNew National Part (NNP) Government are
i a special folder and file kept by Governor
General Sir Paul Scoon.
This was disclosed by Prime Minister Herbert
Blaize at a press conference on July 15th.
The NNP constitution demands that such
declarations be made nd says that a "review" is to
be made of them, but Mr Blaize declined to give
information on this.
"These declarations are in possession of the
SGovernor -eneral", be said, "and the review as to
what they are doing is being held, but I am not
going to say by whom."
Mr Blaize rejected the suggestion that the system in
effect does not protect the public against corruption
in Government and that the system incorporates the
probability of "an appeal from Caesar unto
"All that the public needs to know is that the matter
is definitely being undertaken", he said, "the
Governor General. is not 'Caesar', he is an
impartial Head of State, completely free from
political considerations and manipulations "
At the press conference. in reply to questions, Mr
Blaize up-dated several outstanding matters.
Even though thins are not moving "as fast as some
people would like', he said, Government is moving
towards appointment of a Police Service
SComnission and a Constitutional Review Com-
Government is also working towards the holding of
Local Government elections this year, he said, and
he would be disappointed if this did not come
SThere may have been discussions on the matter, Mr
IUlaize said. but there has been no decision to
convert Government owned Radio Grenada into a
statutory body. He disclosed that Discovery TV is
the subject of an inquiry set up by Cabinet and,
when a Report is submitted, there will be a better
idea of what is to be done.
The Prime Minister said an organisation called
Trinity Broadcasting Network was party to
I discussions with regard to having TV facilities
extended to cover the entire state of Grenada but the
I arrangement did not work out.
"That is why we are proposing that we set up a
limited liability Company seeking equity to provide
the faciliues". he said. 'and this s where we are
grateful for the acceptance, by Cable & Wireless
(West Indies) Ltd, of the idea that their Mount St
Catherine (the island's highest peak) facilities be
used for extending our TV coverage".

With reference to a Government Committee set up
to consider claims made by persons relative to
losses incurred during the events of October 1983,
Mr Blaize said a report has been ,submitted.
That Committee, the Prime Minister said, sought
contributions to satisfy those claims and a decision
must now be taken as'to how a distribution will be
made because the sums collected will not satisfy the
Governments proposal to establish a Merchant
Bank" is still alive, Mr Blaize said, but funding is a
problem and, in the mean time, the Grenada
Development Bank can be used to perform some of
the functions of the Merchant Bank. The Prime
Minister thought that "something like EC$10
million" would be required to launch the Merchant
n Professional
With reference to Governm ents proposal that shares
in Government's National Commercial Bank be
offered to the public. Mr Blaize said professional
advice is being sought as to how this is to be done,
and he hopes the offer will be made before the end
of 1987.
The Government of Grenada gave approval, in
principle, several months ago, to the Voice of
America (VOA), to establish a relay station in
Grenada, the Prime Minister said. VOA is
making arrangements for the necessary land on
which to erect towers, he said, and, he understands
that these arrangements are "well on the way".
Afterthe miltarinterventionin October 1983, both
Trinidad & Tobago and Jamaica instituted visa
controls against Grenadians resident in Grenada.
Trinidad has since removed those controls and Mr
Blaize wsas asked whether he is seeking to have
Jamaica also remove the visa provisions for
The Prime Minister said he has taken this matter up
with Prime Minister Edward Seaga of Jamaica more
than once and the promise has been made that
Jamaica is "dealing with" the matter.
"I had got the impression once that they had agreed
to remove the controls", he said, "but it seems that,
not unlike several other countries, Jamaica has a
bureaucracy which takes its own time, not
withstanding the political direction it has been
Grenada knows the Jamaica Government has agreed
to remove the controls, the Prime Minister said, but
as to exactly when this will be done depends on the
"putting together of pieces in Jamaica", and he
could not answer for that, he said.
"The delay is unfortunate", he said, "It creates great
hardship on Grenadians ......... (and) itis difficult
to understand why the visa restrictions continue to
btnaintained". &M ASI Pae 7

I i I . l

--- -------- ---- ------

SPage 8 Saturday 1st August 1987 The Grenada Nevsletter
From Pa8eA0

Nutnmeg, mace and banana, Mr Blaize said, had
been main contributors tb a significant increase of
nearly 20% in total exports when the January to
June 1987 figures are compared with the same
period last year. In 1986, he said, total exports in
the first six months had been EC$37 million and,
forrtte corresponding period in the current year. this
figure had moved u to. EC$44. 1 million
Banana ex- E J O i
srot he- -,'4 P Li V .

p n & t, .' *JKJ.W
had gone up by 16%
while export figures for
nutmegs and mace had
increased by 79.33%
and 28.4% respectively,


I is -

As far as total imports are |
concerned Mr Blaize said, S- ,
the January to June 1987 figures show an
increase of only 4.9% over the 1986
corresponding period, the actual figures being
EC$101 million in 1986 and EC$10 million in
"The coruibution of Tourism to the economy is
reflected in increased activity generated within a
number of sectors", the Piirne Minister said,
"particularly hotels and restaurants, and transport
January Jue 1987
ncrrase Over Jaaar June 1986
Banana production 9.0 %
Cocoa production 9,0 %
..Nutmeg production 29.0 %
Mace production 49.6 %
Other Agricultural crops production 5.0 %
Nutmeg exports 79.3 %
Mace exports 28.4 %
Banana Exports 16.0 %

and communication."
The former recorded a growth of 2.7% and the latter
a growth of 8.1%, he said.
Quoting the "physical movements" in the Tourist
Trade. Mr Blaize said there had been 96,736 visitor
arrivals during the first half year as compared with
87,422 for the corresponding period in 1986, an
increase of 10.6%. Stay -overvisitors increased by
2.7% from 25,347 to 26,030 and 38 more cruise
miners visited than in 1986, raising the cruise liner
passenger total by 15.5% from 59,775 to
The estimate of money spent by visitors during the
January to June period is EC$33.9 million, he said,
a increase of 4.1% over the corresponding period
last year.
"The building botom which started in 1985 reached
such a high level in 1986 that many believed it had
rearhed- s peak and would start declining in 1987",
Mr Blaize said. 'However, from what can be
observed to date it seems that 1987 could be as
good or even better than 1986'.
Construction activity he said is measured hvb rlh



index of building material sales, and these had
increased by 15.6% over the figure of EC$6.6
million for the first half year of 1986. This
growth, he said, had been achieved although some
investors and homeowners have been importing
directly for their construction.

During the first six months of 1987, building
permits granted by tNh
f LanSd Development Control
Authority increased by
30.5% from 190 to 248 as
armed with the cor-
responding per-
Siod last year
the Prime Min-

t oor ister said- and
ood or Better
are thatthis
sector will
S1986 achieve, by
December 31st, the level of activity experienced in
Approximately 73.4% of the building permits were
granted for residential construction, he said, 23%
for commercial and the remaining 3.6% for other
types of construction.
The Prime Minister said that, last year, the
production of electricity and water grew by 13%
and, for the first half of 1987,,growth had been
10.6%. This year. however, while electricity
production had grown by 19.2%, production of
water had fallen by 13.8% as a result of severe
Retail sales Mr Blaize said, recorded anincrease of
4.09 over the period under review as compared
with the EC$29 5 million recorded during the
corresponding period last year, and the liquidity of
commercial banks rose by 6.9% from the EC$229:5
million figure recorded at31st December last.

1986 1987
jTotal tourist arrivals 87,422 96,736
!Stay-over visitors 25.347 26,030
Cruise ship visitors 59.775 69,015
[Cruise ship arrivals 122 160
estimated Tourist
SExpenditure (hilion$) EC$32.6 EC$33.9

Of this increase of hC$S5.8% million in total
deposits, he said, savings of residents contributed
EC$7.5 million. Total s vings increased by 6.7%
to reach EC$111.4 million, sig nificantly accounting
for 53 % of the increase, with residents holding 83%
of total deposits.
The Prime Minister said loans by Commercial
banks had increased by EC$21 million or 12 % from
the figure of E'$$1755 million at December 31st
SeeP Psia 1 1

Cn i

The Grenada Newsletter Saturday 1st August 1987 Page 9



I &t ,sition political parties in
Iot e Organsation Of East
fCanrbbean States (OECS) have
called upon OECS Covernmert-s
Snot to persue with undue haste"
[the objective of OECS political

The call arises from a meeting of
Opposition political parties held
in St Lucia on July 11th and 12th
1July, and, at a press conference
on July 15th, members of the
Grenada Opposition elaborated
the point ol view.
"Undue haste is clearly
illustrated by the fact that by
December of this year Lhere is
some proposed referendum in all
OECS terntones on the matter of
closer OECS political union", Mr
George Brizan said. "and we feel
we should earn from history and
avoid the pitfalls."
The proposal for OECS "closer
union" was adopted at a meet-
ing of OECS Heads in the Brit-
ish Virgin Islands on 28th and
29th May last, and it was decided
then that "the lirst step to be
taken was a process of com-
prehensive consultation on the
subject with the peoples of the
countries concerned........

At a press conference held by
Prime Minister Herbert BlaJzea
few hours after the Opposition
press conference on July !5th
Mr Blaize denied that a
referendum has been fixed for
later this year.

S"There is no foundation for the
charge of undue haste ". the
SPrime Minister said, 'becausewe
have not taken any decision to
have the referendum at any
The OECS Prime Ministers have
not set a date, he said, thee is no
intention to "pressure people"
i and, if the Opposition members
have said there is to be a
referendum before the end of
S19A7, "in that case, they have
their own time table".

At the Opposition press con-
ference were the three parlia-
mentarians who were present at
j-the S Luca meeting Mr George


Brizan, Dr Francis Alexis and M'
Phmnslev St Louis,and they were
in agreement that the first ep
towards political unity is to build
an economic foundation.
"At the end of the ci.4 Dr
Alexis said, the degree to which
people in air (of the OECS)
are prepared to endorse plans for
unity, will be f'-meor[ by the
extent to w-.ich. in their minds.
unity is going to advance their
standard of lii-vmi .

Mr Brizan said the pirit of the
Opposition Confereae was cap-
tured in three highlights. The
first is that there was total
agreement that the matter of
OECS unity would not be app-
roached with haste, he said. Tine
second highlight is the Confer-
ence finding tfat, if there is to be
"genuine closer political union",
an atmosphere of understandingg
must be established in all OEC '
"A climate must be established ,
he said. "in which OCpCosition
Parties can function, ratfier than
Lhaing Governments behave
spitef'lJy, vindictively and in a
petty fashion towards the
C position and. in particularly,
towards the PIarli:iJiinay Op.-
As an example of this, ihe said,
the radio and TV should not be
monopolised by Government but
should be open. even for some
limited time, to -he Oppo.i-
tion. ,

The third h ._Li) .. ,..'r Brizai
said, was that political parties
represented at the St Lucia Con-
ference had constituted therm-
selves into a loose ",rlading
Committee of O. i .o'i PaI1mies
of the East Canbtbba States"
(SCOPE). There has also been
formed a 7-member Co-
ordinating Committee comprised
of the Leader of the Opiosition
in each of the OEt terri-

Where there is no Leader of the
Opposition in a territory, he said.
then arere-resenta1.tiv- of the "most
recognized" political par".vin that
tertor' "v.! hep a m ~n ';erI of the S

Coo:dinating Committee.

Mr Brizan said the St Lucia
Leader of the Opposition. Mr
Julian Hunte, had said at the
Conference that it will take six
years to build the necessary
economic base on which political
union should be based, and Mr
Bnzan thought that time span

Supporting this point of view, Dr
Alexis said it would be wrong to
proceed now with haste,
particularly as three OECS Prime
Mimsters are indicating very
clearly that the time is not

'In the case of Prime Minister
Vere Bird of Antigua", he said,
"he has come straight out and
said he will have no part in it (the
political unity proposal), and he
identifies the initiative with an
attemptt to return to colonial-
ism;n .
Dr Alexis said that, if the time
was right, it would be
in.:.-,ceiv.ible that an OECS
Prime Minister would use such
strong language. The answer is
not to leave Pnme Minister Bird
behind "almost rejecting him as
an ionoram us. he said, but rather
that those who are convinced of
what :bhe are doing should sit
down and talk with Mr Bird.

The Prime Minister of St
Kits'Nevis Dr Kennedy Simm-
onds, has repeatedly asked for
'urtier and better particulars"
with reference to the unity
proposal, Dr Alexis said, which
indicates to Dr Alexis that, Dr
imminnonds also "is not entirely
convinced about what is happen-
Dr Alexir said Prime Minister
Herbert Blaize of Grenada is the
third Prime Minister who has
indicated this is not the right
time to proceedd with haste to-
wards O",-'i political unity.
N Ir Blaize's indication bad come,
le said, at a meeting of the
Grenada branch of the
Crnmmon. -aJih Parliamentary

^ms^ paB10



Page 10 Saturday 1st August 1987 The Grenada Nevsletter


S&e long drawn out wage negotiations involving for 1985 will be 2%, and it has been agreed that
Government employees have come to an end there will be no increases for the salary scales above
and a new wage Agreement was signed on July EC$12,500 in respect of 1985.
The Agreement covers 1985 and 1986, and in the
"As a result of misunderstanding of some agreed latter year. all Government employees benefit from
details there was a last minute delay which an across-the-board 5% increase.
necessitated reference to the Prime Minister", a
spokesman for the Unions told NEWSLETTER on Three trade unions, the Public Workers Union, the
July 31st, "but it was cleared up and settled Technical and Allied Workers Union and the
amicably" Icrese Grenada Union of Teachers, represent Government
workers, and a joint team has been negotiating with
According to the spokesman, the Agreement Government for the last 19 months.
provides that, in respect of the year 1985, workers eri
drawing not more than EC$3,5b4 per annum will Before the Agreement signed on July 30th, the last
be paid an increase of 15%. increase received by Government workers was in
1984 when the Interim Government (appointed by
Workers drawing more than EC$3.504 per annum the Governor General after the military intervention
and less then EC$7,324 per annum will receive an of 1983) gave a 12.5% interim increase
increase of 5% for 1985. In the salary range i Pa 11
EC$7,324 to EC$12.500 per annum, the increase .
s mFrom PaI _9
Association (CPA) when Dr Alexis had heard Mr one island to work in another without work permits
Blaize speak on the OECS political unity plan. and to contest elections, and it appeared that they are
preparing to widen that cooperation to include eco-
"I am far from convinced", Dr Alexis told the press nomic cooperation.
conference, "thatPrime Minister Blaizeis anywhere
near convincing on this matter, and he, too, seems "Unity in a sub-region should tend to promote unity
to be searching for something out there" in the whole region ", he said, ".....and I do not see
Leeward Islands unity ......going against unity in
Challenged with this statement at his press the OECS"
conference the Prime Minister said he could not
"line up", himself with Prime Minister Bird of When this question was put to Mr Blaize at his
Antigua. press conference, he said he did not know what the

"Antigua has made it clear that they are not in thij
discussion at this time", he said, "so, it is not fair to
group Grenada, Antigua and St Kitts".
Mr Blaize said that, at recent local CPA m meeting. -
resolution had been passed which sought
"information on various background ideas", and on
behalf of CPA, he had sought this information
from the OECS Secretariat.
He recognized that the information sought hy the
CPA is necessary, Mr Blaize said. He has no
personal position on this but, with his record, he
could not understand why anyone should think that
he is not in full favour of regional unity.
Pressed for a comment on the position of Prime
Minister Simmonds of St Kitts, Mr Blaize said he
"does not talk for other people".
At the Opposition press conference. Dr Alexis
responded to a request for a comment on the report
that Antigua. Montserrat and St Kitts/Nevis are
holding discussions relative to closer union of those
three islands.
Dr Alexis said the Leewoard Trands have had "some
ttv close relationships'. permitting nationals of

Leeward Islands move entailed but he presumed it is
geared to "integration n certain areas of
activity". Resolve
"The Antigua position was made clear to us at the
Caribbean Commumnty (CARICOM) meeting in St
Lucia two weeks ago ", the Prime Minister said,
"but that did not affect the resolve of the OECS
leaders to continue with putting together a
programme to apply to the people for their
At the Opposition Conference in St Lucia, in
addition to the 3-man delegation from Grenada,
there was a delegation from St Kitts/Nevis which
included the Leader of the Opposition Mr Charles
M.lls and Mr Lee Moore, Political Leader of the St
Kitts National Labour Party, one from Montserrat
led by Mr Bertrand Osborne, and the Antigua
delegation included Mr Tim Hector and Mr Jerome
Bleau of the Antigua & Caribbean Labour
The Dominica and St Vincent delegations were led,
respectively, by Leaders of the Opposition, Mr
Michael Douglas and Mr Vincent Beach, and the
delegation from the host country, St Lucia, was led
by _r Juhan Hunte, Leader of the Opposition.
' _... . l-__=.-_ _.


The Grenada Nevsletter Saturday 1st Augut 1987 Page 11

ER From Pae 10 Following the General Elections of
December 1984, negotiations began with the
New National Party (NNP) Government of
WHAT PUBLIC WORKERS Prime Minister Herbert Blaize butthese soon
became bogged down.
SlThe Government negotiating team rejected
Anua any idea of wage increases for 1985, stating
I Sa 1. i 19 198 that claims for increases for that year were
S"15 untenable". Under pressure from the
Not E eing EC$ 3,504 15 < 5 Unions, however, that stand was altered and
Government said they would agree to wage
S..increases in 1985 but those increases must
Not E ding EC$ 7,324 5 %i 5 % not cost Government more than EC$3
NotE a diE g EC$12500 2 % 5 The Unions then submitted a counter
-- --- proposal that the 1985 increases amount to
E eeding ECS 12,500 i 5 4.5 million. The back-pay, the
S Seee I M Page 12

H From Pae 8

"There was a net increase of
EC$14.3 million in the Public
Debt over the position at 31st
December 1986", he said,
"Domestic Debt accounting for
EC$12 million of this sum .

The Prime Minister gave the
figure of EC$219,383, f19 as the
Public Debt at 30th June 1987,
44.3% or EC$97,959,889 being
Domestic Debt and 55.7% or
EC$121,4423,213 being Exter-
nal Debt.
The Prime Minister pointed out
that the magnitude of the
Domestic debt is understated by
the figures given because
Government's overdraft facility
is not reflected in those figures
and this facility reached EC$7.3
million at June 30th.
The increase in External debt is
explained by the disbursement,
during the period, of certain
loans amounting to some EC$6.4
million. Mr Blaize said.
Additionally, Government has
assumed responsibility for the
AgriculturalDevelopment (Model
Farm) loan, of which EC$1.7
has been disbursed.
He said also that External Debt

obligations have been affected
sigificandyby revaluation of the
Special Drawing Rights, as well
as by movements of other
currencies, especially the pound
sterling. RIyme. t
Debt repayments over the first
half of 1987 absorbed app-
roximately 25% of revenue, Mr
Blaize said, and 8.2% of Foreign
Exchange earnings.

The Prime Minister listed the

Banks Liquidity (Million $)
Total Bank
savings deposits (Million $
SBank Loans (Million $)
At 31 st December 1986
** At 30th June 1987

major spending sectors in the
Public Investment Programme
(PIP) as Agriculture, Infra-
structure, Health, Education and
Industry. These sectors had
absorbed ECS9.15 million and
another EC$o.96 million had
been spent on other sectors in the


SGrowth of Gross
Domestic Product
Total new employment
I Building permits issued
&Water production
Electricity production
i Water reduction
Total Exports (million $)


1 Up 6.7%
1901 1687
190 248
p 13 % Up 10.6 %
Up 19.2 %
Down 13.8 %
EC$37 EC$ 41.1

Apart from Phase 3 of the
Eastern Main Road, (the
connection between Grenville
and Sauteurs). no new major
projects were started under the
PIP between January and June,
Mr Blaize said but, in the second
half of the year several major
projects will commence.
These include Phase 2 of the
Western Main Road, the Institute
for Further Education, the

EC29.5 EC$245.3**

EC$104.4 EC$111.4
EC$ 175.5 EC596.5

Hillsborough (Carriaco) Secon-
dary School, the Technical &
Vocational Project, the Central
Refrigeration ProjectforArtisinal
Fisheries and St Georges Sewer
"Government is satisfied with the
general thrust of its economic
and fiscal policies, which were
recently endorsed by World
Bank experts", the Prime
Minister said,, "However, they
expressed the view that the
Government needed to exercise
expenditure restraint and close
the unfinanced fiscal gap in the
public finances".


) J


- ,r^^/,-,


Page 12 Saturday 1st August 1987 The Grenada Nevsletter

I-- i^c^ v\. fvvsWi if i^sn^.fj ccs^i-.. -i.'-

SGrenadas ecumenical venture in skill training for
underprivileged youth the New Life Organisation
(NEWLO), continues to be assisted by the West
German Foundation, Misereor ("I have com-
passion"), but the organisation appears to be
leading for difficult economic times,
This was disclosed by Roman Catholic Bishop of
Orcnada Svdne Charles, in an interview with
NEWSLETTER following the third NEWLO
graduation ceremony held on July 30th.

"Misereor continues to fund us". he said. "but they
have made it clear we must make greater efforts to
be self-supporting, and that will present a problem
jto us",
I NEWLO is the brain-child of Bishop Charles who,
shortly after the October 1983 military intervention
in Grenada held discussions with and sought
advice from the Roman Catho;ic authorities in
ITrinidad concerning SERVOL, the skill -trauung
organisation for underprivileged youth set up in that
island after the "Black Power disturbances of

NEWLO was launched in Grenada on 30th July
S1984. and the 37 graduates who received certificates
on July 30th, together with two previous
graduauon.r of 25 students each, bring to 87 the
tntal of young men and women who have been
t trained.

SBishop Charles' concern about the future is echoed
iby Sister Rhina Loe. the Resident Director of
NEWLO Disappointed
"I am very disappointed with the support the private
Sector have given us this vear she said in an
interview wif NEWSLEVFTER "In the past, they
have provided us with prizes to award to
1 outstanding students at graduation time, but. forthis
Graduation, several tirms have told us that
'budgetary restrictions' prevent them from helping
i us"

There has been some assistance from the Private
Sector, she said, but this has fallen off
considerably and there has also been reduced
cooperation from building contractors who have
been willng to provide "hands-on" experience for
NEWLO students.

According to the Director's Report the original
intake of440 students in July 1984 grew to 75 in
July 1985, to 105 in July 1986 and now stands at
136 in July 1987.

Some 25 of these are resident at the NEWLO
headquarters near Gouyave on the west coast, about
12 miles from St Georges. Students, both boys
and girls. receive training in a range of skills
including electricalinstallation, plumbing, masonry,
woodwork, painting sewing, straw craft, kitchen
and cafeteria skills, carpentry, muffler repair and
gas appliance repair.
Assistance in the administrative and teaching fields
is being given by members of the United States
Peace Corps, the Clergy, foreigners resident in
Grenada and Operation Crossroads Africa
Incorporated, and some funding has been received
from the Methodist Overseas Circuit.

NEWLO maintains contact with its graduates, and
Sister Rhina's Report, presented at the Graduation
ceremony, says there are encouraging signs of self-
supportiveness among the graduates. As
compared with the 1985 male graduates, the Report
says. there is a marked increase in the numbers of
S186 male graduates who are permanently

"However, we must admit that this is less true of
our female graduates in general", the Report says.
'Of the seven who graduated in 1985, three have
been employed from time to time, one made some
attempt at being self-supportive and the others

See Pa ne a1

8 __ From Pago II

Unions said, could be
paid in two install-
i ments, one at the end of
,19.6 and the other in
mid-1987, but this pro-
osal was rejected by
That was the position of
stalemate early this year
When Mr Blaize, in a
broadcast over Radio
!renada, bhuned the
iUnions tor delaying a
i solution to the problem
Sof having a new wage
SAgrreement signed.
Incensed, the Unions

requested radio time to
reply, but this was

"We were given a
gent- 'no' the Union
spokesman said, "and it
was then we decided to
seek the assistance of
local organizations who
repr-sent people'
Organm ssions
These organizations in-
clude the Grenada Tour-
ist Board, The Grenada
Chamber of Commerce,
the Council of Chur-
ches Grenada, and the
Employers Federation,

he said. They all gave
the Unions a good
hearing and there was a
positive response from
the Employers Feder-
"The Federation asked
for and had an audience
with Prime Minister
Blaize", he said. "They
did not tell us what was
discussed with Mr
Blaize but, after, they
advised us to attempt to
reopen the negotiat-
The ons" ans ed
The negotiations moved

ahead from that point.
the Union spokesman
said, culminating in the
signing of the
1985'1986 Agreement
on July 30th. Back-
pay is to be paid in
September, he disclos-
ed, and the-e is an
undertaking to begin
negotiations for a
19 7/1989 wage Agree-
ment as soon as the
back-pay as been paid


The Grenada Nevsletter Saturday 1st August 1987 Page 13



,me Minister errbert Blaize said at a press conference on July 15th that Grenada is in need of
"tremendous help".
"No matter what happens", he said. "day after day we have to spend more money than we earn, even to
maintain our Civil Service pay roll"
SMr Blaize said the longer Governmentpotpones the question of retrenchment in the Civil Service, the more
difficult it will be to get out of the financial difficulty.
In his 1987 Budget Address, Mr Blaize announced Government's intention to retrench approximately 1800
public workers, and this has been resisted by the three unions which represent Government employees, the
Public Workers Union, the Technical & Allied Workers Union and the Grenada Teachers Union
In what appeared to be a reference to those unions, "It is not a qualification of young people that they
Mr Blaize said there are 'some people" who wantto perform automatically", he said, "There are young
make it difficult for Government to get out of the people who do not perform. and there are older
financial difficulties. people who do perform so the question of age does
not matter because, if there is no performance, the
Feri time you have a list of retrenchment", he person will have to go".
said, they make a lot of big noise about this, that
and the other, but the fact is that we are spending Government is not being hard-hearted about
money more than we can earn, and common sense retrenchment, he said, because, not only are the
says we must try to control that", retrenchees getting their pensions, but Government
Discrimit is making sure they have employment oppor-
The Prme Minister rejected the charge that the tunties
retrenchment programme is discriminator- in that
Some voune workers. known to have been closely "You will bear the Private Sector say they cannot
Associated with the Peoples Revolutionary Gov- absorb the retrenchees", Mr Blaize said, "but we are
ie nm ent. have been sent home, while some retirees not relying on the Private Sector as is. We are
trom the Civil Service who were reemployed, were expanding the Private Sector and we are sure that,
originally retrenched and then taken back on. by the end of this year, please God, you will see an
amount of new opportunities for employment which
The case of a particular Permanent Secretary, a will surprise a lot of people".
reemploved retiree who was given a retrenchment Coamnept
letter but recalled, was cited to The Prime Min- The Prime Minister was asked to comment on the
sister. act that, in spite of an undertaking given at this
Year's May Day celebrations by Minister of
"He was one of those to be retrenched", the Prime Education. Mr 'George McGuire that teachers
Minister explained, but he was kept on because the would not be retrenched, some teachers have been
person who is supposed to replace him is on long sent home.
vacation and he was needed to do some train-
ing" "We are not doing to retrench teachers as such", Mr
i Blaize said, tbut teachers who do not perform pro-
What the Government is concerned about Mr perly will have to go just like anybody else"
Blaze said, is to reduce the pay roll by about 15 %
and, in the effort to do this, some young people will Mr Blaize s attention was drawn to identical
be retrenched, statements Minister of Health, Mr Danny Will ams

KI =Frrom Pag 12
remained at home'.
On the brighter side, one 1985 female graduate who
developed skills in carpentry is doing well and of
the 1987 female graduates, two are already
employed, others are making efforts at being self-
supportive, and two are being sent to Trinidad for
further training at SERVOL. one in the area of Dav
Care and Preschool management and the other in
sewing tailoring.
The feature address at the graduation ceremony w as
delivered by Mrs Ann Ponce, wife of Reverend
Phillip Ponce, the Methodio Minister in
f' ^ ^ i

and Minister of Works, Dr Keith Mitchell, have
made publicly with reference to the retrenchment
The statement is that, of the 1,800 Public Workers
to be retrenched. the figure of about 1.000 is
represented by the difference between the number of
Civil Servants budeeted for and the actual number
employed. The Ministers said that, taking this into
account, only about 800 persons, actually
employed were due for retrenchment.
"The figures of the numbers of persons to go is I
what is causing the confusion", Mr Blaize said.
Eisehteen hundred was used as a median line when
we knew that we had to get our pay roll down from
60% to 45% of our income, and that meant that we i
had to find EC$12.5 million, so, if it is 1800 or

.S-ee Z LZ PaIe 14


- ~--~-


Page 14 Saturday 1st August 1987 The Grenada Nevsletter



"One OJ Thw Messes We tDont Want To Awe Much More To Do Wth"

attempts by the defunct Grenada Airways to
A involve the Grenada Government in debts
Ie tlVy the Airline will fail.
This opinion was expressed at a press conference
on July 15th by Prime Minister Herbert Blaize, and
he said Grenada's liability in this matter cannot be

"We are not owners of the airline, as they say we
are", he said. "because Grenada Airways is a
I registered Company and Lhe Grenada Government
Shas no equity whatever in that Company. It is a
pity that it is called Grenada Airways, but the
renada Government has no share in it".
Grenada Airways was established on 10th June
1985 under a 10 year Agreement between the
Grenada Government and Lhe Urated States based
firm of Groupe Internationale du Transport et
Industrie Petrolier (GITIP), of which Company Mr
L'Emir Fayez Chahab was President.
The inaugural flight took place on 18th December
1985 and, in an interview the day before, Minister
for Communications Dr Keith Mitchell, outlined to
NEWSLETTER the basis of the Agreement.
"The Company will finance the leasing of two 707
arcrait and he purchase of all required equipment",
he said, "but the airline is the property of the
Grenada Government. Initially, profits will be
applied to liquidating the Company's investment,
but there is provision for a review of profit
SDr Mtchell said GITIPhad approach thdthe (renada
SGovernment in December 1984 with a US$20
nmUiflion proposal for establishing the airline and
Construction of a 450 bed luxury hotel.
Government's share in the investment was
provision of a 29 acre lot near to Point Salines
international Airport for construction of the hotel,
he said, and what had appealed to Government was
not the idea of possible profits but the advantages
the airline and hotel project would bring to the
Tourist Industry and in the field of employ-

HELP From Page 13
800 people that makeup the EC$ 12,5 million, that's

Whatever the number of people, the Prime Min-
ister said, the target is EC$12.5 million, and the
more of the higher salaried people that are
retrenched the less the number of people who will
be sent home.
"It's one of these hard decision' that have to be
made", he said, otherwise the country will iust
FI _---_

-- I- -

In November of last year, Grenada Airways found I
itself in financial difficulties and was unable to
maintain scheduled flights, but, in an interview on
December 31st, Dr Mitchell expressed hope that the
difficulties would be resolved
"We expect that, before the end of January", he
said, "this situation will be cleared up".
The Miiister said GITIP President, Mr Chahab,
had been dismissed and "interim arrangements" had
been made with the other GITIP Directors who,
pending formation of a new Company, had agreed
to take over an overdraft of EC$1.6 million
guaranteed by the Grenada Government at the
Government owned National Commercial Bank
Dr Mitchell said the Directors had agreed also to
take over the cost of honoring Grenada Airways
tickets sold on scheduled flights which remained
pending after the airline was grounded.

"In terms of money", he said. "this episode has not
cost the Government anything to date as the new
Company will take over all known liabilities of
GITIP .........
The new Company did not materialize and, at a
press conference on March 11th last, Prime Minister
Blaize said Governments guarantee of the GITIP
overdraft at NCB had been withdrawn. and
Government does not accept liability for this
"The airline has a Board of Management", he said,
'and the Board is looking to see how they can
manage the situation ........

At his press conference on July 15th, however, Mr
Blaze said he understands the Company has no
funds, The money is still owing to NCB, he said,
but he refused to reply to a question as to whether
he is hopeful of getting payment.
"I am not making any comment about Grenada
Airways at this stage", he said.
With reference to the guarantee of the GITIP
overdraf at NCB the Prime Minister said the
Grenada Government will be "ultimately
responsible". C dd
Mr Bsaize could notremember thathe had stated that
the guarantee had been withdrawn, but he conceded
that if there is a guarantee, we will have tomeetthe
1 his is one of those messes that we don't want to
have much more to do with", he said.


The Grenada Nevsletter Saturday Ist August 1987 Page 15

J~ l rAndre Cherman. President of the Grenada Hotel Association (GHA), said in an interview with
S SLFTTER on August 1st that Grenada's Tourist Industry is suffering because no Government
Minister has been assigned specifically to Tourism.
"What we have nowis a Minister responsible for Legal Affairs, Agriculture, Tourism, Lands, and Foreign
Affairs he said "That cannot work. Successful tourism destinations have had a Minister of Tourism and
Civil A'viation or perhaps Tourism and Industry, but, never in my life have I ever seen a successful tourism
destination where the Minister responsible for Tourism has five or six portfolios".
Mr Cherman was speaking at the informal opening of "Coyaba", a 30 double-bedroom hotel which he
owns together with his brothers Richard and Tony and with his mother Joy.
Located on 2.5 acres of land in the hotel area on Grand Anse beach about four miles from St Georgest
Coyaba" is a EC$3 million investment and. with the official opening scheduled for October next, will have
facilities for water sports, tens and volley ball.

There is also a swimming pool, a children's play
area, exercise area and a, golf putting green.
"The hotel has been designed and constructed
largely with local materials to create a tropical
atmosphere", Mr Cherman said, "and we wanted a
name in keeping with this. In our research we
found the Amerindian name of 'Coyaba' which
means 'heaven", and wehave selected that namefor
the hotel because it fits nicely into what we are
tying to create here for our guests"
Coyaba's 30 rooms are part of the 800 plus hotel
rooms now available in Grenada and the GHA
President said that figure will exceed 900 by the end
of this year.
& Moest Growth
The island's Tourist Industry is enjoying "modest
growth". he said and he pinpointed reasons why
greater progress is not being made. Principally,
Government's budget allocation for promotion and
marketing is inadequate, he said, and the island has
not yet been able to achieve the "magic number' of
1,100 hotel rooms.
"The big airlines, American, Eastern, Air Canada
and others tell us that, when we have 1,100 hotel
rooms they will begin to operate scheduled services
into Grenada even if it is only once a week", Mr
Cherman said, 'and that will provide a significant
boost to the industry".

The "magic number" cannot be achieved before
another two or three years, Mr Cherman said but.
nevertheless, he is optimistic about the future of
Grenada s tourism and predicted a 5% to 10%
growth in the industry over the coming Winter
That prediction, he said, is based on the fact that
British tour operators who dropped Grenada from
their programmes during the 1979-1983
revolutionary period, are now signing contracts
with hoteliers on the island. These operators, he
said, include Kuoni, Speedbird and Rankin Kuhn,
and, from Canada, both W'ardair and Ultravac also
have contracts with Grenadian hoteliers for the
1987.'88 Winter Season,
The scheduled airlines now serving Grenada are
British Airways (BA), BWIA and LIAT Airwavys
Mr Cherman said, and he considered it a "good

signal" that tour operators are already reporting
difficulty in securing seats into Grenada on BA and
BWLA. This. he thought, would probably result
in an increased number of flight opportuties to the
island for the coming WinLer Season.

If they are not entirely sold out, the GHA President
said, "Grenada's hotels will be nearly full
throughout that Season, particularly as there is a
growing visitor flow from Trinidad.
., Segment
"Economically, things are not very good in
Trinidad", he'said, "but there is still a segment of
that market which travels and there is now theinter-
island steamer, the 'Gelting', which provides
additional low-cost transport into the island".
Mr Cherman said hotels in Grenada are geared to
cater to the "up-market", visitors from the middle
and upper income brackets, and not to "mass
tourism'. There have been no complaints by
visitors about hotel prices, he said, and there is no
attempt in Grenada to compete with hotel rates in
places like Cuba where hotel operations are
Government subsidized.
"We have discussed this matter with many
Governments before", he said, "and the policy
continues to be that we will stay up-market. When
the situation is analysed, it is clear that if we had
more bodies with less dollars, Grenada will have
earned nothing and there would be a tremendous
train on the infrastructure"
The GHA President said that, in the Eastern
Caribbean. Grenada should not be compared with
Barbados which is a developed tourism destination
with some 5,000 hotel rooms over a broad range of

Grenada should be compared, rather, with places
like St Vincent and St Kitts/Nevis, he said, and he
expressed the opinion that Grenada's hotel rates
compare favourably with those tourist destin-
"Our concentration on the up-market is certainly the
right policy for Grenada'. Mr Cherman said,
"because we will grow in a fashion which will not
destroy the country and the tourist Industry will
have a steady growth as the infrastructure develops
to take care of our needs'.
^ - l I

SPage 16 Saturday Ist August 1987 The Grenada Newsletter

West Germany Funds New
ProIi ct
Mr George McGuire, Minister of Social Serices,
i told the Government Information Service (GIS; on
uI vly 29th tatnew development projects inthe town
!of St.George, funded by the West German
fGovernment, are to begin shortly.
I These projects include construct on of public toilets,
ia sub-Post Office, and drainage.
According to GIS, among projects in St Georges
i already completed with West German assistance are
a drainage improvement project and a subsurface
i drainage projeje
Qibbs Now Ambassador
To Belgium,
Mr Oswald Gibbs Grenada s High Commissioner
to London, has been appointed Ambassador to
in Brussels. Mr Gibbs presented his credentials to
King Baudouin of Belgium on June 15th.
Diplomatic relauons with Belgium were established
in 1976 and Grenada is served by the Belgian
! Kingston, Jamaica.

IMGuire At CQommonweath
Education Confeerene
i Minister of Education. Mr George McGuire, att-
lended the 10th Conference of Commonwealth
SEducation Ministers held in Nairobi, Keuva from
i20th to 24th July.

Principal item on the agenda was "Vocational
i rientation of Education". and a Conference
Decision expressed the need to promote more
Relevant education in order to curb skill and
Manpower shortages.
'The Conference also expressed the need. in
education, for exposure to scientific and techno-
i lioical trends.
Delcgal'ons from 37 countries attended the
Conference and there were observers from 13
Commonwealth and international organizations.

/ -/ /f

Aier ifghes


More Books From Brother's
Brother Foundation.
The Government Information Service (GIS) ann-
ounced on July 15th that the Ministry of Education
has received a shipment of 10,000 volumes from
the Brother's Brother Foundation.
This is the third shipment of books received by the
Ministry from the Foundation and it brings to
50,000 the total number received at a value of
PEC$1.25 million.
The Brother's Brother Foundation. based in
Pittsburg, Pennsylvania, was founded 25 years ago
by a group of doctors.
Throughout the Third World. the Foundation
provides aid in the form of books, medical and
agricultural supplies and in organising inoculation

Junior Achievement

G~lraiduate.r~ere (et


Forty-four graduates of the inaugural Junior
Achievement class received their diplomas on July
Sponsored and managed by the Grenada Chamber
o Industry & Commerce. the class attracted
students from eight secondary schools and ran for
seventeen weeks.
Students were given an opportunity to run an actual
business from formation to liquidation and were
exposed to such concepts as stock options, financial
reports, shareholder reports, marketing and product
accordingg to Mr George DeBourg, President of the
Chamber, the objective of the programme is to
expose young people to the inner workings of the
free market system.
Speaking at the diploma ceremony, Minister of
Education, Mr George McGuire, stressed the
importance of conserving scarce resources,
especially money.
The programme is scheduled to resume in
September with the second class and. already,
there are 280 applicants.

) ct- H f
_.,i fughesk ~ c

1st August 1987

Printed & Published By The Proprietors
Alister & Cynthia Hughes, Journalists
Of Scott Street, St Georges. Grenada, Westindies
__(P.O. Box 65: Phone [809] 440 2538 Cables, HUSON, Grenada)

-~-~----~------- ----

The Glna




I Volume 15 Saturday Ist August 1987 Number 11





l-gun salute welcomed Venezueian Air Force plane. number 005, a Grummon Gulf Stream jet, as
s it touched down at Point Salines International Airport at 12.47 hours on July 17th. bringing
SVeiezuelan President Jaime Lusinchi on a two-day official visit to Grenada.
President Lusmichi was original scheduled to ;ri'e at noon but there was an unexplained delay which
conxvenientrl fited the arrival into brighL sunshine after threatening rain clouds earlier had posed'a risk to
the finery of the .- eicoming party.

That party woi headed by Goverrnor General Sir
Paul Scoon and Lady Scoon, and included Prime
Minster Herbert Blauze and Mrs Blaize Sir Hudson:
Scipio, Speaker of the House of Representatives,
Mr Lawrence Josenph Presdent of the Senate.
Ministers of Government, GovErnment Members of
the House of Representatives. Mr Phinsley St
Louis. Leader of the Opposition. His Lordship Mr
Lvie StPaul. Acting Puisne Judge Mr John Leary,
Charge d'Affaires of the ,Ln.ted states Embassy and
Si Mr ougias B[rrett, Acting British Represeniative
( ifr. Grenada.

I following the playing of the national anthems of
SCGrenada and Venezuela by the Royal Grenada
Police Band. President Lusinchi inspected a Guard
of Honour of the Royal Grenada Police and the
Special Services Unit, before being introduced to
members of the official welcoming party.
SAccording to the official programme, the President
I should hive left the airport at this stage in a
motorcade proceeding to the Ramada Hotel where
he would stay. There was an innovation, however,
which set both security personnel and press
cameramen ru lining.

As the President s car was driving off the apron' at
the front of the airport terminal building. it was seen
to stop, the President gei:ing out and strolling
across to say "hello" to some 300 delighted school
children waving Vernezuela- fiags,
Te ,'ftiriru programme included a visit to the
o Venezuelan Institute for Culture & Cooperation
p where the President was introduced to the students.
and he and his party were guests at a State
S I Luncheon hosted by Sir Paul and LadyScoon.
S Laier in the afternooPrime Minister Lia ax held
i vate discussions with .Presicern Lustachi.
t following which the two mea signed a Co-operaiuon
Agreement on the control ot Narcotic Drugs.
in the evening. it was the tun ofthe Venezueans to
nemenrain. President Lusinchi hosted a Reception at
the Ramada Hotel in honour of the Governor
SGeneral and Lady Scoon.



' i Venezuelan President
Lusinchi Visits ..................
! -- Rc.rsay Appeals Sentence.....
J I Ramsay Complains of
SHughes' Reporting.............
T .P.M. Revievs The Economy....
i Grenada & Venezuela Team
S To Fight Drugs..............
1I ; Foundation Laid For Nev
SPolitical Party...............
I Sir Paul Holds File of
S Ministers' Assets.............
|i Grenada Has Task Force on
S Drugs.......... .................
SOpposition Parties Urge No
U "Undue Haste" To Unity.......
A Government Signs Agreement
Wj With Employees............
N1 NEWLO Graduates 37 More
d: Students.............. ..... ........
i P.M. Says Grenada Needs
STremendous Assistace.....
A Dlaize: Grenada Does Not Ovn
Grenada Airways................
GHA President Says Tourism
.. Suffer"ing............... ...
SNews Shorts......................


2 i
2 ii
6 iI

N-, was fixed on the official programme for the
followingday July 18th. but; beforehis departure.
the President, accompanied by Minister of Health
Mr Dan.t'- Wiiuiams, was taken on a short
unscheavied tour of a housing project in which
Venezuela is giving Grenada aid.
Seeo Pae 2



Page 2 Saturday 1st August 1987 The Grenada Nevsletter

~3~~~ ~SACM~

fr Ian RamPsy. Jamaican barrister who was
S found guilty on July 7th of Contempt of
Court, and sentenced by Mr Justice Lyle St Paul to
serve three months in jail lodged an Appeal onJuly
13th against his conviction.
The Appeal, filed on Mr Ramsay's behalf by Mr
Carlton W dliams. Jamaican barrister attached to Mr
Ramsays Chambers, charges that Mr St Paul has
breached the Grenada Constitution.
That breach, the Appeal says, occurred when the
Judge proceeded wit the hearing of the Contempt
case after an Appeal had been lodged by Mr
Ramsay's Counsel against a ruling made by Mr St
The Appeal says:-
".....the Learned Trial Judge erred and was in
breach of Natural Justice and the Constitution in
taking upon himself to reject and/or fail to cognise
andor ignore the Defendant.ppellant's (Ramsay's)
Notice of Appeal to a higher court on a
Constitutional point, and to proceed summarily
notwithstanding; and that the Constitution of
Grenada would be pointless if instance Judges can
try cases without allowing Constitutional matters to

-be dealt with whenever they arise".
Mr St Paul's judgement. is challenged also in that he
delivered "a sentence of imprisonment in the
absence of" Mr Ramsay. The Appeal says Mr St
Paul "had no constitutional jurisdiction and/or any
jurisdiction atall" to hear the Contempt case and that
his judgement "amounts to a miscarriage of justice,
a mistrial and a nullity in law and in fact".
The Appeal asks the Appeal Court to declare that
Judge St Paul breached the Constitution, that he had
no jurisdiction to hear the Contempt case, and that
Mr Rm say has been deprived of his Constitutional
rights. Reverse
The Appeal Cou has een asked to reverse Mr St
Paul's judgemet' andd. until this Appeal is decided,
to order a stay of all proceedings, including
execution of the sentence, in the Contempt

In addition to a sentence of 3 months in jail, Judge
St Paul's judgement calls on Mr Ramsay to pay a
fine of EC..5,000 and costs amounting to
.. :

Mj Ian Ramsay, Jamaican barrister who, on
SJluly 7th, was convicted of Contempt of
Court by Mr Justice Lyle StPaul in the Grenada
High Court, has complained of inaccurate reporting
of the hearings of that case.
"1 consider it vital to Westindian constitutional
tradition that you give an accurate account of present
Court proceedings re the Contempt issue in
Grenada", he said in a cable to Alister Hughes.
Joint Editor of NEWSLETTER. "your reports do
not mention that my lawyers gave notice to Mr
Justice St Paul of a Constitutional Appeal in the
Contempt case challenging the jurisdiction and/or
competence of the renada Court...........
Mr Ramsay's complaint is with reference to reports
filed by Hughes inhis capacity as "stringer" for the
Associated Press and the Caribbean News
Mr Ramsay's cable said the Grenada Court is
constitutionally bound to halt the hearing until the
Appeal is decided. He also expressed the opinion
tht if the Court continued with the proceedings, it
would be in defiance of his rights and a breach of
the Grenada Constitution.


In his cabl ., Mr R.ra:ay requested "full exposure"
of this aspect of tie case. Contrary to his complaint,
however, news of his Constitutional Appeal was
given exposure in Hushes' report on the
proceedings of the Contempt trial on July 1st and
2nd -
The report stated that Mr Ramsay's Counsel, Mr
Dudley Thormp:r, Q C hd moved a Constitutional
Motion and had as ed Judge St Paul for a stay of
the Contempt pr.:e-ia,: Mr St Paul had not
accepted the Met:.r a.d the report said that another

See Ln^Pge 7

J~ias27L -.-t Page 1
The President's 21-member official party included
Dr Simon Alberto Cot-alvi. Minister of Foreign
Affairs, Dr Hector Hurtado, Minister of the
Venezuelan Investment Fund, Senator Ruben
Carpio Castillo, President of the Political Foreign
Commis-ion of the Senate, Ambassador Francois
Moanack, Specialr nrb azsado. to the Caribbean and
Ambassador Efrain Silva Mendez, Ambassador of
Venezuela in Grnrr3ia.
I I - B -. ,1 =

Venezuela in Chn',, ada.

I -

-. 1. ..~~1~.,, --II- ~ -- -.._. ___

SThe Grenada Newsletter Saturday 1st August 1987 Page 3



Frfeliminar)- data, compiled by the Ministry of
d Finance, indicates favourable growth of
Grenada's Gross Domestic Product (GDP) during
the January to June 1987 period, but this
performance is not reflected in the island's public
This was disclosed by Prime Minister Herbert
Blaize as. in a national broadcast over Radio
Grenada on July 24th, he reviewed the working of
the island's economy over the first six months of
the year.
"While the overall economy showed growth of
approximately -
Mr Blaize said, Janary
"public finan-
ces registered a All Manufacturing ................
deficit of Beer Manufacturing...............
C$13.9 mill- Rum Manufacturing..............
ion for the Flour Manufacturing.........
period January Soft Drinks Manufacturing......
to June 1987". Hotels & Restaurants............

Transport &P Cnmmunicatibohv'l

The Prime ale of Building Materials (Millio
Minister fore- detail Sales (Million $)...........
cast an overall
deficit of Some of thisincrease was cha
EC$31.6 mill-
ion for 1987 and said this is due mainly to estimates
of three factors.
The first is a short-fall in Revenue of
EC$12.8 million, the second is a short-fall
of EC$14.2 in expected Budgetary Support
and the third is as EC$5.44 million
increase in Expenditure.
An analysis of the financial data shows clearly that
the fundamental weakness in the public finances
arises from the fact that the productive sectors of the
economy are not contributing their fair share, he
said. and he expressed the opinion that the
contribution to public revenue from agriculture.
manufacturing and tourism must be, at least,
compatible with their economic performance.
"Accordingly, the Ministry of Finance is examining
ways and means of raising the level of contribution
from these sectors", the ime Minister said, "in
order to strengthen the public finances as means of
underpinning the overall economy"

Mr Blaize said that, as a result of a short-fall in the
collection of taxes, Recurrent Revenue over the
January to June period had amounted to ECS45.6
million which is only 39% of the Annual
udge Difficties
Analysing this short-fall, he attributed the deficit to
difficulties under four Heads.
(1 Te Business Levy The amount involved is
approximately EC$3 million he said. This levy
was introduced in the 1987 Budget and the Prime
Minister referred to amendments which had been
made following discussions with the Chamber of


Commerce. The necessary legislation has now
been enacted, he said, and "a somewhat late start in
collection has begun".
(2) MotorVehicle Tax Within recent years, the
Prime Minister said, the base of this tax has been
eroded significantly as a result of a large number of
concessions granted to farmers, religious
organizations and other non-profit groups. The
expected short-fall this year is EC$ 1.3 million, and
Mr Blaize said these concessions will have to be

ro Jiuea shortfall under
19 86 1987 this Head is estim-
.. ........... Up 15 % ated at EC$3.5,
.... ............. Up 9.9% million Mr Blaize
................. Up 11 % said. This tax
.... ............ Up 47.6 % was intended to be
.... ............ Lp 9.5% the "centerpiece"
................. Up 2.7% of Phase 2 of the
.... ............ .Up 8.1 % FiscalReformPro-
$).. EC$ 6.6.i ECS 7.6 gramme, he said,
......EC$29.5. EC$30.7 but it has been
elledinto exports beset with prob-
lems arising from
the original pro-
pert)' valuation list. That list had to be withdrawn
for examination and re-checking and the delay has
resulted in pressure on budget revenues.

(4) Property Transfer Tax The Prime Minister said
this Head had been "significantly overbudgeted" in
the 1987 Budget. Additionally, he said, an
exemption on transactions up to EC$20,000 had
been given and this had reduced the potential yield
of the tax.

See Pag 4

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SPage 4 Saturday 1st August 1987 The Grenada Newsletter


7 e- e Governments of
Grenada and Vene-
zuela are to establish a
Mixed Commission in a
joint initiative "for the
prevention, control and
suppression of the un-
la'ul consumption and
traffic in narcotics and
psychotropic substan-
This is disclosed in the
terms of an Agreement


signed on July 17th by
Prime Ministr Herbert
Blaize and Venezuelan
President Jaime Lus-
inchi during the Pres-
ident's two day official
visit to the island.
Disomry ,
Article 3 of the eleven
article Agreement
makes provision for
"direct communication
regarding the discovery
ofvessels, aircraft or

In the Agricultural sector, Grenada s four major
export crops had shown good production increases
during the period under review, the Prime Minister
said. The Banana and Cocoa Industries had both
increased bv about 9%, he said, while, in the Nut-
meg IndustA, nutmegs and mace had increased by
29% and 49.6% respectively.

January June

Revenue (Milion$).............. EC$ 45.6
Expenditure (Million $............ EC$ 59.5
Support (Million $................. EC 8.1
S'blic Debt (Million $) EC$200.1* EC$219.4
Pubic Sector Invest-
ment Ptgramme
Agriculture (Million ......... EC 214
I nfra- .' .. .. *
structure (Million$)............. EC$ 5.72
Health (Million$).... .... .......EC$ 0.42
Education (Million $) ,. ..... :. .IEC$ 0.42
Industry.......... ..... ......... .. IEC( 0.45
Other ......... ............... EC 6.96
Forecast Overail
Deficit 1987 (Million $............ EC$ 31.6
,st. shortfall in Rev-
enue 1987 (Million$.). ............. EC$ 12.8
ist. short-fall Budgetary I
Support 1987(Mil on $ ........... jE 14.2
'st.Increases in Expen-:
diure, 19R7 (Million$) .......... 5.44
*= 5"4 -

I At 31st December 1986

"However, cocoa's relative good production leveJ
was against a very low level in 1986", he said,
"and, more importantly, a declining trend in export
price On the other and,average export prices f
banana, nutmeg and mace have been trending
See Pane R

other means of trans-
portation suspected of
unlawfully transport-
ing" drugs, and to
further thi objective,
Grenada and Venezuela
are to "adopt measures
deemed necessary, in
accordance with the
internal legislation of
each State".
Personnel in both
countries, charged with
drug control at air and
seaports, are to receive
special training, and
with reference to pro-
ceedings which may
result from implemen-
tation of the Agreement,
the Contracting Parties
will present "letters
rogatory to their res-
pective judicial author-
aties '.

illicit drugs is to be
harmonized, the Agree-
ment says. and there is
to be an exchange of
information in a wide
field, including" data re-
lated to the identifi-
cation of individual
traders (in drugs) or
their associates and
their methods of
The Mixed Commission
shall be coordinated by
the Ministries of For-
eign Affairs of both
States, and the Agree-
ment will come into
force for two years
upon notification by
both States of "com-
pletion of the corres-
ponding formalities".
Following a short. un-
scheduled tour of hous-
ing projects in which
Venezuela is aiding
Grenada, President Lus-
inchi was seen off at
Point Salines Internat-
ional Airport on the
morning of July 18th
by Governor General
Sir Paul Scoon,

A joint press comm-

unique issued on his
departure reiterates "the
interest of both people
and Governments in
strengthening the demo-
cratic institutions and
supporting the countries
of the region in their
efforts to overcome
their economic and
social problems,........

"President Lusinchi un-
derlined the Caribbean
vocation of Venezuela
and reiterated the com-
mitment of his Govern-
ment, in spite of
presently existing diff-
iculties, to continue
promoting efforts for
the benefit of the
countries of the area",
the communique says.
especially those which
endeavour to live in
freedom, preserve their
sovereignty and self-
determination, and
achieve higher levels of
social and economic

Prime Minister Blaize
reiterated his firm sup-
port and recognition of
the peace efforts carried
on by the Contadora
initiative andits support
group, and he ex-
pressedhis deepest con-
viction that it is only
through peaceful negot-
iations and a genuine
democratization of the
Central American coun-
tries that peace can be
achieved in the area.
Gr de
Expressing his gratitude
to Mr Blaize and "the
Government and people
of Grenada for efie
warm welcome granted
to him and his dele-
gation", President Lus-
inchi extended an
invitation to the Prime
Minister of Grenada to
pay a state visit to
Venezuela. "an invi-
tation which was
accepted with pleas-
ure", the communique
I - .



The Grenada Newsletter Saturday 1st August 1987 Page 5





j George Brizan.
pp position Mem-
ber in the Grenada
House of Represen-
Statives and former
Mi nister of Education in
the New National Party
(N-NP.i Cabinet of
Prime Minister Herbert
llaize, said in an
interview with NEWS-
LETTER on Ju 23rd
that the foundation has
been laid for a new
political party in
"I want to emphasise
That that arty has not
yet been launhed', he
?said, "but we have
Drawn up the basic
principles and, last
ISunday (19th), we
Decided that, when the
Party is launched. itwill
ibe called the National
i Democratic Congress

SThe persons sponsoring
this movement towards
a new political party are
Ithe six Opposition
members in the House,
he said. who are, in
addition to him. Mr
SPhmslev St Louis (Lea-
der of fhe Opposition).
Dr Francis Alexis, Mr
Tillman Thomas, Mr
I Keti Lalsingh and Mr
Marcel Peters,
Mr Brizan said he has
been appointed Chair-
man of the group and
he mentioned the names
of other people who are
associated with the
I These include Mr
SMichael Andrews. Pres-
ident of the Grenada
IBar Association. Sen-
Sator Albert Forsythe,
Sonce a prominent mem-
ber of Sir Eric Gaiy's
Grenada Labour Party
and former NNP Sen-
ator Jerome Joseph
who resigned from
SNNP last April together
with Dr Alexis and
Messrs Brizan and
iTfaonia, __ __

Several Committees
have been appointed
Mr Brizan said. among
them one for designing
the policies and prn-,
ciples of the party. The
principles have already
been designed, he said,
and these are set out
under eight Heads, the
first beimg "Acceptance
of the Supreme Be-
The other heads are,
"Pledge to Service",
"Advancing Fairness",
"Morality in Public
Affairs', "Building
Parliam entary Democ-
racy'. "Econonc Rela-
tionships" and "Re-
specting Human

down into

in Public
is broken
10 sub-heads

which include a stated
belief that Miisters of
Government hold their
Ministries in trust for
the nation ....... ", and
a statement of support
for "the putting place
of machinery to deal
with victimisation and
threats of victim-
Free Press
Six sub-heads appear
under "Building Parli
amentary Democracy",
one of which expresses
belief in "strengthening
the pillars of democ-
racy, i.e., an indepen-
dent Judiciary, free and
fair periodic elections,
independent trade
unions, a free press and
public opinion "
A belief is also
expressed that "Govern-
ment must pay due
regard to the views of
the Party", and that "all
members of the ruling
party sitting as elected
members of Parliament,
must be given fair
opportunity to partic-
ipate in the running of
the Government"

'Economic Relation-
ships", with five sub-
heads, expresses belief
"in developing harmon-
ious relationship be-
tween labour and
management and en-
couraging, where feas-
ible, joint venture op-
erations between the
Public Sector, Private
Sector and Organised
Obvious Pig
In an obvious dig at the
present policies of the
NP Government
which plans to retrench
1,800 Public Servants
this year, one sub-head
under "Respecting Hu-
man Dignity" says,
We believe that human
dignity is enhanced by
the creation of job
opportunities byreduc-
ing unemployment and
not by retrenchment"

When the statement of
policies has been
completed, Mr Brizan
said in the interview, it
will be subjected to
consultation and dis-
cusnson "around the

"All these documents"',
he said, "the Party's
Constitution and the
statements of principles
and the statement of
policies, after they have
been refined in acc-
ordance with feed-
back we get from the
people, will be formally
ratified when the Party
holds its first Conven-
tion sometime before
the end of this year".

Mr Brizan said it is
dangerous to affix
labels to apolitical party
and he would only
describe the proposed
NDC as "moderate".
He said party groups
already exist, new ones
are being organized
throughout the country,
and they will all become
NDC groups when the
Party is launched.

Funds for the
movement come from
fund raising events,
contributions are so-
licited from Grenadians
at home and abroad, he
said, and he denied the
suggestion that funds
may be coming from
organizations outside of
the country who are
interested in promoting
a "moderate" party.
"So far", Mr Brizan
said, "there is no
outside organisation
which has offered us
any financial assistance,
and, if ever such an
offer was made, before
we accepted, we would
have to know what the
organisation stands for
and whether there are
any 'strings' attached to
the aid"
There are support
groups of Greadans
in London and New
York, he said, who
give aid to the
movement towards the
launching of NDC and
another group is now in
process of being form-
ed in Washington.

There is no plan that
NDC will sponsor a
tradeunion wing of the
party, Mr Brizan said,
nor will there be any
trade union attachment,
but he felt that, already,
there is considerable
support for the propos-
ed party.
"There is tremendous
good-will towards us
throughout the coun-
try", e said, "and this
is coming from key
sectors of the popula-
tion. including :!ie
working sector and the
agricultural sector".






The Grenada Nevsletter Saturday 1st August 1987 Pap 7

its fight against the illicit drug trade, the Government of Grenada has appointed a Task Force which has
a several successes inthe apprehension of people involved in the trade, and supplies of both marijuana
and cocaine have been seized.
Prime Minister Herbert Blaize disclosed this at a press conference on July 15th and he said the Task Force
involves personnel from the Police Force, the Customs Department and the Immigration Department. He
was, however, not willing to name the members of the Force.
"I would have thought that, principally, Grenada is a transshipment point for these drugs", the Prime Minister
said, "but it seems that some Grenadians are getting involved. That's the pity, and we are trying to see if we
can do something about that".
Mr Blaize declined also to say whether the illicit drug trade would be one of the subjects on the agendafor
discussionbetween him and Venezuelan PresidentJaime Lusinchi during the President's then expected visit
to Grenada on 17th and 18th July.

Prom Page 2
of Mr Ramsay's Counsel, Mr Delano Harrison, had
appealed against that decision.
Against the background of that appeal, Mr Harrison
asked for a stay of the Contempt proceedings and,
when the Judge refused this, Hughes reported that
Mr Harrison told the Court Mr Ramsay intends to
abide by his constitutional rights and he (Harrison)
would not become involved in any circumstances
which might render those rights abortive.
Hughes reported also that, without the Judge's
leave, Mr Harrison walked out of the Court at this
Press reports from Hughes said there were no
arristers in Court representing Mr Ramsay when
Judge Lyle St Paul found him guilty of Contempt
f Court and sentenced him to serve a three month
rson term and that Mr Ramsay is also to pay a
fine of EC$5,000 and costs of EC$2,500.

'MOM EiPrnm RPage 6
Also with reference to Jamaica, the Prime Minister
was asked to give the position with reference to
technical assistance he had stated, in March 1985,
that that country had promised in the fields of
education, agriculture and works.
Jamaica has given assistance in the field of
information, he said. Grenada's Director of Public
Prosecutions has been seconded from Jamaica. and
he hoped to get more assistance in the field of the
Police and other operations.
As to direct assistance from Jamaica in the fields of
education, agriculture and works, Mr Biaze was
unable to give any details.
With reference to Government's promise of an
investigation into the events of October 19th 1983
when numbers of Grenadians are said to have died
at Fort Rupert under the guns of the Peoples
Revolutionary Army, Mr Blaize said this will not
be done until the Mauriuce Bishop Murder Trialis a
closed matter.
"This has notbeen put on the back-burner", he said,
it is waiting for the appropriate time to get it off the
ground '.

He would not disclose what has been listed fbr
discussion with President Lusinchi, but said final
arrangements were pending for cooperation to be
established between the Coast Guards of Venezuela
and Grenada.
"It is Impracticable and unwise to have Venezuelans
chasing people", he said, "and when they pass
Grenada's boundaries, they cant collect them, or
Grenadians chasing illegal people and when they
pass the boundary, they cant get them"
There is a principle called "Hot Pursuit" the Prime
Minister said, details of this are being worked out
and this will give complementaryr operation"
between the Coast Guards of Grenada and
Mr Blaize said President Lusinchi's visit should not
be looked at from the view of "benefits" which
might come to Grenada from the occasion, but
rather th this is an opp ty for the offering of
hospitality to a friend.6
"First of all", he said, "we say 'thanks for the visit'
because it shows that you recognize us, but we also
know that Venezuela has been helping us in
different ways".
Venezuela hashelped and continues to hel Grenada
in the field of housing. Mr Blaize said. The Prime
Minister disclosed that the Artisinal Fisheries
Project is funded principally by Venezuela, and
there have been promises by Venezuela to assist in
other areas.
These include areas relating to Grenada's maritime
and fishing boundaries, and to the fight against the
illicit drug trade. which the Pme Minister
described as very serious in the southern
Caribbean' Co te
"Venezuela is a point of transit for the stuff (drugs)
coming from a neighboring country", he sead,
"and Venezuela is not too far from Grenada and we
are going to get together to cooperate in our means
of trying to defeat the illicit trade".
Mr Blaize said the programme for the visit of
President Lusinchi was not then available but the
President would be given "the normal courtesies
accorded to a head bf State"

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