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Permanent Link: http://ufdc.ufl.edu/UF00072147/00145
 Material Information
Title: Tapia
Physical Description: no. : illus. ; 43 cm.
Language: English
Publisher: Tapia House Pub. Co.
Place of Publication: Tunapuna
Creation Date: January 19, 1975
Frequency: completely irregular
 Subjects
Subjects / Keywords: Politics and government -- Periodicals -- Trinidad and Tobago   ( lcsh )
Genre: periodical   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: no. 1- Sept. 28, 1969-
General Note: Includes supplements.
 Record Information
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000329131
oclc - 03123637
notis - ABV8695
System ID: UF00072147:00145

Full Text

SUNDAY JANUARY 19, 1975


IF we are going to talk
the truth, if we are going
to make a clean break. if
we are going to embark
on a new programme,
people are going to ask:
Where do we begin? What
are the first steps? This is
where what Senator
Solomon was saying is
important.
Obviously the first steps
must deal with petroleum.
That is our lifeline, that is
our navel-string, that is the
dynamo of the economy.
Therefore, the seriousness of
the other issues will reveal
itself in the way we begin to
tackle this essential sector.
Oil is going to define our
relationship to Venezuela
next door, to the Arabs, to
the West Indies and to the
United States of America.
This is what Chaguaramas
was in 1960. It was an issue
of fundamental moral signifi-
cance in that we could not
win by reference to our
material resources alone.
David could never beat
Goliath; Trinidad & Tobago
could never win against the
United States of America
in a war; but if you take
them on, it forces everybody
to go beyond simple military
considerations, to see the
issues of nationhood and to
determine where they stand.

TEXACO

That is why itis necessary
to tell Texaco to get to hell
out of here, because when
they and the CIA and all
their people resist us, then
the nation has to stand up
and we will know who are
Trinidadians and who are
not.
- The Government are mor-
tally afraid, they do not
have the will, the energy, the
self-confidence to stand up
and tell the country: "either
we go sink or we go swim; if
you are a Trinidadian, line
up with us and we're going."
That is what the localiza-
tion of petroleum means -
to take Texaco and Federa-
tion Chemicals and to stand
up and say: "we are going
to run these and either we
are going to sink or we are
going to swim,"
That is to say, you pose
the question of nationhood
and ask everybody to state
where they stand in relation
to Trinidad & Tobago, That
is what Senator Solomon
was trying to say when he
was cut by the rules.
Lloyd Best- Budget Debate
Turn to Page 5.


-. -. -- .. ...-
..
-







i
-. ,.

.


Walter Rodney


WHEN Walter Rodney
appeared on TTT's Pano-
rama, and in a full length
photograph and interview
in a National Newspaper,
it was evidence that over
the last six years the
media had swung full
circle in recognizing him
as a persecuted radical
West Indian intellectual
whose expressions are
relevant to our struggle,
and perhaps necessary for
the clarification of its
genesis and destination.

When he was excluded
from Jamaica by the Shearer
Government in '68 for
allegedly inciting the oppressed
and unemployed to make
armed insurrection, the stance
of the media here was that he
was an unruly troublemaker
who went about preaching
violence against the elected
representatives of the people.
No independent attempt
was made to discover the
truth, and to present him as an
honest analyst of Caribbean
society. Only the one-sided
releases from the Government-
oriented Daily Gleaner and


the University Administration
at the time were highlighted.
It therefore became necessary
for an action group of UWI
students, lecturers, and in-
terested members of the
public to join together to put
forward the other side of the
Rodney Affair.

NEWSPAPER

'That was how the news-
paper Moko came to be
launched. At first it had a
multi-dimensional character.
Its editors were Gordon
Rohlehr, James Millette, and
Adrian Espinet. It spoke for
those of the Caribbean people
who yearned for an order
different from the colonial one
which existed, and stillsurvives.
That organ lost its validity
when it was manoeuvred into
serving interests that were
partisan, and inimical to its
original purpose. Rohlehr and
Espinet eventually left.
The Rodney Affair was the
great watershed in the history
of the radical political move-
ment in Trinidad and Tobago.
Here its impact was greatest,
greater than in Canada where
Rodney had committed the


offence for which he was
noticed, that of addressing the
Black Writers' Conference in
terms which must have later
inspired the West Indian stu-
dents of Sir George Williams
University in their stand
against racial discrimination, a
stand which resulted in burning
of the computer there.
In Guyana, the country of
his birth, there were protesta-
tions. In Jamaica there were
skirmishes between police and
students, and also between
police and the underprivileged
of West Kingston. Buthere the
agitation over Rodney was an
important precursor of the
February Revolution. It gave
back to the people the mili-
tant march as a political
weapon.

MARCHED

On the last day a human
blockade of angry students
stopped the train, then in
its last phase, and boarded en
route from St. Augustine to
Port-of-Spain, where they were
joined by workers and the un-
employed in the city. We
marched in our thousands
against the one-way flow of
traffic in Frederick Street, and
round the Savannah to White-
hall which we invaded, actually
holding a political meeting in
the balcony. It was like storming
the Bastille. The demonstra-
tion stretched from Memorial
park to the Botanical gardens,
perhaps the most colossal
since April 22, '62 when
Williams and the PNM led the
nation in disappointing pro-
test over the American pre-
sence in Chaguaramas, a
presence that is still very much
there, a presence which at any
rate has been replaced, not dis-
placed by our own Regiment.
This is what Shah was to argue
with great force before Dan-
juma's Mutiny Court Martial.
The Prime Minister did not
return to Whitehall that day;
rather he sent his Permanent
Secretary to receive the dele-
gation, but the event must
have caused the Government
and the people to reflect on
the use of power, the results
of which were to be felt
during the February Revolu-
tion of'70.
The Rodney Affair forced
the students and workers and
ordinary citizens to come
together in struggle. It opened
up fundamental rifts between


students and their teachers at
the University, at Mausica and
elsewhere (WIGUT was com-
pletely discredited); between
the Government and the rest
of the society.
Even among the campus
leadership the impact of that
event started waves which are
yet unsettled. Some felt that
the Jamaican Government did
not have the right to exclude
a West Indian from its soil.
This reaction might have been
strengthened by the fact that
the Government here had
banned Stokely Carmichael
sometime earlier.
Others felt that a Govern-
ment should have that right
but that it ought to be exer-
cised in accordance with due
process. This meant that
Rodney should have been
charged for the alleged offence,
and tried by the Courts of the
land. Politicians ought not to
be given so wide a discretion
to make arbitrary decisions.
Simple as this difference
appears it marked the
departure between those who
opted for whipping up indigna-
tion, for the charismatic
approach in politics, and those
who opted for organic, struc-
tured development, and who
emphasised the law and the
Constitution in the mobilisa-
tion process. One contribution
which Rodney has made in his
two lectures so far is to show
that these distinctions are not
necessarily antagonistic. By
and large the goals may be
the same.
Next week Tapia will
.discuss Dr. Rodney's Series of
lectures in depth.


INSIDE:

A look at
the Tourist
Industry
Pgs. 11 & 12


REVIEW:

Race vs
Politics in Guyana
Pgs. 2 & 9


C
.,..-I ---------- --- --^-----------


YE S.,E.T TL. E-D


25 Cents


Vol. 5 No. 3












Michael Harris


THE Caribbean environment
demands of its scholars some
measure of originality. In one
sense it is a demand that is not
difficult to achieve. Our tradition
of scholarship and research is
not a long one and there re-
mains for us a vast hinterland
of social, cultural and psychol-
ogical reality still unexplored.
Pioneers therefore have no lack
of virgin territory. But even in those
areas in which work has already been
done there continues to be need for
further effort. Originality is also to
be found in the systematic, pain-
staking unravelling of the complex
weave of our societies even where the
type of stitch is supposedly "common
knowledge".
All this, true for the Caribbean
region in general, applies with even
greater force in those territories -
Guyana, 'Trinidad and Surinam -
where history has imposed a richly
heterogeneous ethnic and cultural
landscape.

SIGNIFICANT

Dr. Greene, a Guyanese lecturer
at the University of the West Indies,
need make no apologies to anyone
for traversing, in his recently published
book, "Race vs. Politics in Guyana"
what might appear to be an already
well-documented path.
Moreover since it is constructed
largely-on the foundations of a wide
range of new and important survey
data in an area hitherto characterized
by what Dr. Greene calls "methodol-
ogical sterility"; the book threatens
to make a significant contribution to
the stream of research.
Dr. Greene is also to be highly
complimented for the inclusion of a
special appendix devoted to a discus-
sion of the problems encountered by
his team of researchers in their data
gathering and the methodological
improvisations developed to overcome
these.
His recommendation that social
scientists engaged in field work should
provide reports on their method of
procedure and problems encountered
is a valuable one for clearly one of
the tools most urgently needed by
our research scientists is a range of
techniques for data gathering that
takes account of the special problems
to be encountered in soliciting reliable
information in societies where, because
such practices are new and mistrust
is endemic, truth is of times quite
relative.

CLARITY

There is, however another sense
which the Caribbean environment
demands originality of its scholars.
We must insist that our social scien-
tists accept as one of their primary
obligations the necessity for clarity.
Clarity, first of all in their language
and clarity in their Conceptualiza-
tions.
We cannot allow our scholars
the luxury of building any unneces-
sary terminological barriers around
their work, shutting it off from the
population at large. If they do so,
then whatever they do may be charged
with sterility.
For given the general ignorance,
confusion, prejudice and myth in
which our populations exist, given the
short history of our scholarly tradition
and above all given the dearth of
intermediary institutions which can
be entrusted with the task of transla-
tion and dissemination, the duty of
the scholars becomes clear.


Race vs Politics
in
Guyana
J.E. Greene
I.S.E.R.
J $3.50


They must perceive that for
them originality also lies in the search
for a means of communication which
both does justice to the weight of
their work at the same time as it
reaches a far wider audience than
that of the technically trained.
This is not a plea for any
"literature for the masses". That if
it is possible at all, would serve only
to perpetuate ignorance. Rather it is a
plea for the realisation that in the
absence of the intermediary institu-
tions, the process of dissemination
must be undertaken by the politicians,
the clergymen, the schoolteachers,
the office-managers, the journalists,
the doctors etc.
Where there is a language
barrier between the scholars and
these key people, new information
cannot be added to the stream and
dissemination becomes a merry-go-
round of myth.
Clarity and originality are also
demanded in our conceptual
approaches. Precisely because our
environment is still so under-explored
we cannot religously cling to any
preconceptions lest these are allowed
to limit the depth and quality of our
analysis.

STYLE

In both these areas Dr. Greene's
book is seriously marred. He has an
unfortunate penchant for tedious
technical jargon which, apart from all
the considerations already noted,
does nothing for his style.
For example on Page 6, Dr.
Greene speaks of the rise in Guyana
of a "middle-creole, class composed
of African, "coloured", Indian and
other special middle minorities". And
one cannot help wondering what cri-
terion is used to define a "middle-
creole class" or what creatures are
found in a "special middle minority".
Or again on Page 8he writes, "In
fact, it is our contention that social
engineering on the part of the broker
institutions in competition for political
power mutes the fundamental social
contradictions in the society and
retards the consolidation of groups
based on class rather than race."
So that there can be no confu-
sion as to what he means he con-
tinues, "In other words the social
relations shaped by the economic
system create the real quality of the
Guyanese personality, yet this
personality continues to be mani-
pulated by the dominant power of
vested interests that seek to gain
from the continuation of racial pre-
judice within the societies."
It would be tedious to try to
multiply the examples of this ponder-
ous style. What the above quotation
turns our attention to and what we
must deal with-is the quite obvious
conceptual bias implicit in the state-
ment. Dr. Greene apparently has
some secret source of information on
the "real Guyanese personality" and
that. which is demonstrated by the
actions of the people to exist is not
real,
Nowhere is this bias more pro-
nounced than in Dr. Greene's conten-
tion that between 1953 and 1968
party identification and political
mobilisation had shifted from those
based on class antagonism to those
based on racial disaffection."


Race vs. Politics


in Guyana


Now throughout the study Dr.
Greene makes it quite clear that he
finds class antagonisms more prefer-
able than racial disaffection. But
when this preference leads him to
make an assertion based on totally
superficial evidence then we must
take umbrage..
Speaking of the 1953 elections
he writes, "The PPP had the unani-
mous support of the trade union
movement" and "articulated the
demands of the workingclass". He
goes on to assert that this national
coalition of working class interests
broke down, if only temporarily, "the
notion that Guyana is a plural society
comprising cultural sections polarised
in terms of cultural institutions."

COMPLEX

Even if we accept this notion of
working class in spite of its admitted
"inadequacy" it is too much to accept
the glib assertion that the P PP "won
the large proportion of the working
class irrespective of race; 80% of the
Africans, 92% of the Indians. (Page 38).
We must pose the question as to
whether the PPP in 1953 was not only
superficially a unity of the working
class. Might it not have been a unity
of' Africans and Indians brought
together by the coalition of Jagan and
Burnham who both mouthed socialist
slogans.
To what extent the mass of the
people were committed to these
socialist slogans rather than to Burn-
ham or Jagan must be demonstrated
before we can glibly talk about
"working class unity".
This is not to assert that con-
siderations of class played no part in
1953. It is to warn against the use of
simplistic, even if attractive notions to
describe complex realities.
David Decaires and Miles Fitz-


Patrick writing in the New World
Quarterly (Guyana Independence
Issue) gave this description of the
PPP in 1953: "A rigid and passionately
orthodox Marxism dominated the
leadership while the base was provided
by an immature but highly expectant
coalition of peoples whose ethnic and
cultural origins made for profound
divisions."
They further state: "In spite of
this broad consensus, the different
groups whether cultural or economic
saw the role of the party in differ-
ent ways. These differences did not
assume great importance at first, bit
once the canopy of the movement
had split down the middle, they
swiftly appeared as the first and
essential challenge to unity."
Finally: "The emergence and
growth of the early PPP . had
destroyed the influence of the old
middle class cultural organizations
. . but this did not mean that
their purposes had been either served
or forgotten. It simply meant that the
old middle class struggles, expressed
in terms of the scramble by different
ethnic and cultural groups for jobs
and influence within the colonial
structure, were now to take place
within tIle new mass movement."
The broad consensus achieved
by the P P P in 1953 is certainly of
great significance and we need to be
extremely clinical in our analysis of
how it came about and why it broke
down in order to better inform other
attempts at mass multi-ethnic mobilisa-
tion.
Given the analytical limitations
imposed by this rigidity of conceptual
formulations-one cannot decide if
Dr. Greene is being naive or facetious
when he writes in reference to the
coalition between Burnham and
D'Aguiar in 1964.

Continued on Page 9.


JOIN






TAPIA

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oul,40AT J AIN UA r Y IV, /







SUNDAY JANUARY 19, 1975


Puerto Ricans



protest electricity


rates


PUERTO RICANS whose
electricity bills have soared
from $12 (U.S.) per
month to as much as
$94.35 (U.S.) in some
cises, have organised an
island-wide boycott of the
Water Resources Adminis-
tration (AFF) the Com-
monwealth Government
department which con-
trols the electricity service
(which is controlled by
US -bond holders, via the
First National City Bank.)
The boycott started seven
months ago when residents


began independently to wit-
hold payment. Then in res-
ponse to the AFF's cuttijig
off of supplies to the boy-
cotters, the people, many of
them involved in the indepen-
dence movement, organised
themselves into a Co-ordina-
ting Committee to Boycott
Light Payments. The campaign
spread to more than forty
communities throughout the
island.
The Rio Piedras housing
co-operative took the AFF to
court with an injunction to
reconnect service after their
supplies had been cut off.
The boycott made front page


news when the US district
court rules that the AFF
could not discontinue service
without prior public hearings.
If a letter requesting a
hearing is field within ten
days of refusal to pay a bill,
the AFF may not cut off
electrical services until it com-
plies with the request made
in the letter. If the AFF
proceeds to cut off services,
charges can be brought against
it by the-consumer.
The Association of Inde-
pendentist Lawyers and the
Legal Institute of Puerto Rico
have agreed to organise groups
of legal advisers, and sample


letter requesting hearings are
being distributed by the inde-
pendence movement through-
out the.island; the boycott is
expected to escalate rapidly.
Many union leaders have
announced their support for
the boycott, including
Radames Acosta of the
National Workers' Union
(UNT), Jose Parsons of the
Journalists Union (UPAGRA),
and Pedro Grant, co-ordinator
of the United Labour Move-
ment (MOU), who announced
that MOU would "combat the
unjustified increase, while
multi-national and multi-
millionaire enterprises operat-
ing in Puerto Rico are permit-
ted to pay rates much lower
than the public consumer."
His remarks reflect the
aims of the campaign in
general, which are to expose
the real causes of the AFF
crisis.
The Puerto Rican consumer
pays 2.77 cents/kilowatt hour
(KWH) of energy while US-
owned petrochemical com-
panies like Union Carbide and
Pittsburg Plate Glass (PPG),
whose facilities will consume
more electricity than the
amount consumed by 14 Latin
American countries in the
next year, pay 0.43 cents/
KWH.
Recent hearings before the
committees in the Puerto
Rican House of Representa-
tives, studying the mining
contract proposed by Kenne-
cott Copper and American
Climax, have revealed that
the contract would allow the
US companies to buy elec-


tricity from the AFF at 0.7
cents/KWH $1,740,000 less
per year than it would cost
the agency to produce the
power. The AFF lost more
than L3 million in 1973
through such a policy.
The 1972 Economic Report
to the Governor shows that
the electricity rates for com-
mercial enterprises and homes
increased by 16% during the
1971-72 fiscal year, while
industry's average rates
decreased by 8%, due to the
fact that industries which
receive special rates increased
their consumption from 193
million KWHs in 1971 to 837
million KWHsin 1972.Accord-
ing to AFF policy higher
consumption brings lower
rates.

DEMAND

The boycotters demand a
progressive payment scale,
elimating the present policy
which forces the consumer to
pay 2.77 cents/KWH and the-
public lighting facilities, sup-
ported by public taxes, to pay
5.69 cents/kwh while US
armed forces pay 1.86 cents/
KWH? and US corporations
pay low rates.

They demand debt which
the AFF has accumulated
with US banks, amounting to
a yearly interest of
$13,043,500 alone,
Leaders of the boycott
present these facts as the
cause for the AFF crises and
voice their refusal to allow
the colonial government to
use Puerto Rican workers to
subsidise US corporations.
Peoples News Service


We go to any


length to do


our job!

We installed suspended ceilings on two of AMO.CO'S
offshore production platforms over twenty miles out atsea some
time ago. It was a.tew experience for us, but it was all part'of
our job The Industrial and Building Products Division of
L. J. Williams Limited.
Apart from installing suspended ceilings, we also construct
shop fronts and partitions for business places install NACO
Louvre Windows and custom. built Roller Shutters and apply the
ultra modern 'Flecto finish' to walls and floors
Also, we supply Kwikset locks Gibbons Ironmongery.
world -famous Ejvo-Stik 528 adhesive and Resin W woodwork '-
adhesive, Ibiboard, laminated plastic sheeting.and Ibi Ace .
decorative plywood..and more' -
If we have a service you cold use, give us.a pall at62 -32866.Z
We'll go to any length help you.. -"

.-. .i---


Tuesday 21st


January


San Fernando Town


Hall 7.30pm


Speaker

Lloyd Best
OPEN DISCUSSION PERIOD


TAPIA


MEETING


WHO OIL BONANZA ?


I AfiA AULc .5







SUINIJAY JANUAKY y1, Y1/3


THE REGION


Greg Chamberlain

THE French government
has arrested most of the
main opposition leaders
in the South American
department of Cayenne
and is preparing to put
them on trial for "sub-
version" in an effort to
stamp out growing unrest
in its largest overseas
possession.
Eight opposition figures,
including teachers,journalists,
a lawyer and a doctor, were
flown 4,000 miles across the
Atlantic to-Paris last week
and flung in the Sante prison
in the French tradition of
transporting opponents in
the colonies to the metro-
polis for "security reasons".
The government says the
eight were planning attacks
in the Guyanese capital,
Cayenne, for Christmas Eve
and claims to have seized
arms, ammunition and docu.
mentary proof.


Cayenne is reported to be
in a virtual state of siege,
with riot police brought in
from France and troops of
the Foreign Legion patrolling
the streets and searching
houses. Gatherings of more
than five people have heen
banned.
Both the Paris government
and the local quasi-military
authorities appear to have
over-reacted to the situation
and thereby aggravated the
unrest.
An investigative mission
sent to the department by
the French Socialist Party


returned to Paris this week
and the party leader, Francois
Mitterrand, who has recently
visited Cayenne himself,
intends to use their report as
another stick with which to
beat President Giscard
d'Estaing's government.

INTERROGATION

At a press conference on
the mission's return,Leopold
Heder, Cayenne's representa-
tive in the French Senate and
as mayor of Cayenne, the
department's most prominent
political figure, accused the


\KIRPALANI'S
NATIONWIDE AGENTS AND STOCKISTS


of siege
eg


CAYENNE in state


French authorities of creat-
ing a "reign of fear" in
Cayenne and warned that the
deportation of the opposition
leaders had created a "very
explosive situation".
People were being inter-
rogated in Cayenne, their
homes were being ransacked,
phones were being cut and
the press censored in the
effort to root out the opposi.
tion, he said.
The authorities had pro-
duced "laughable and com-
pletely false" evidence to
back their claims that an
armed attack had been plan.
ned by those arrested, he
said.
The senator suggested
that one reason for the
current repression might be
so as to be able to present
"guarantees" of order and
stability in the economically-
backward department to
foreign multi-national cor.
portions which the French
overseas territories minister,
Oliver Stirn, said recently
were interested in Cayenne.
The trouble in Cayenne
has arisen from a political
awakening over the past six
months stimulated by a
further deterioration of the
already serious economic
plight of the department,
With prices 60 per cent
higher than in metropolitan
France, massive unemploy-
ment and the prospect of a
further loss of jobs through a
new cutback at the space
rocket launching centre at
Kourou by the middle of
this year, the 52,000 inhabi-
tants of Cayenne have begun
to organise themselves against
what they see as centuries of
neglect by France.
New political groups and
publications have sprung up
this year along these lines,
and have provided the back.
bone for the unrest, which
began in September with
violent clashes between
troops and demonstrators
during a visit by M. Stim.
M. Stim has charged that
the unrest has been "deliber-
ately managed". Sen.
Heder has likened the present
tension in Guyane to the
situation in pre-independence
Algeria.
French governments have
never paid much serious
attention to Cayenne, long
famous for little else but its
prison colonies including
Devil's Island, and the
economy, as in the other
French possessions in the
Caribbean and elsewhere, is
organised on the basis of
pure mercantilism,
Although rich in forests
and minerals, Cayenne, just
north of the Amazon and
less than half the size of the
republic of Guyana at 35,000
square miles, earns only 10
per cent of its annual budget
from exports and needs some
134 million dollars TT/EC a
year from Paris to keep it
going.
This money has pro.
duced virtually no results.
There are only 310 miles of


roads, the 10-year-old Kourou
base has been nothing more
than an island of foreign
whites contributing little
locally, and a handful of rich
white merchants solid
backers of the Gaullist UDR
party control the import
trade, bringing into the local
market at inflated prices
mostly.goods and food, like
rice, which could be pro-
duced in Guyana.
Over the past 150 years,
land under cultivation has
fallen by 500 per cent.
Cayenne has for decades
been the victim of endless
schemes for development by
idealistic officials, crooked
adventurers and foreigners.
All except Kourou came to
nothing and now it too, des-
cribed by Sen. Heder as "no
more than a film set", is
going the same way.
Corruption and incom-
petence on a big scale, mainly
by the old French colonials
who have taken refuge in
one of France's last overseas
possessions, is also a big pro-
blem.
Most important administra-
tive posts are held by local
or metropolitan whites, and
this, combined with the
presence since 1973 of 1,000
Foreign Legion troops,
against whom there have
already been violent demon-
strations, has produced racial
tensions.
The authorities however
accuse the Guyanese of
"racism" in protesting against
this situation.
in spite of this current
pressure, there seems little
hope of change. The French
government's line, forcefully
expressed by President
Giscard d'Estaing a few weeks
ago in Guadeloupe over the
shouts of demonsWdtors, is
that everyone in the overseas
departments is 101 percent
happy to be French,

INDEPENDENCE

Plans to give Guadeloupe,
Martinique and Guyana some
form of mild autonomy by
making them into a separate
administrative region of
France have now been drop.
ped. Autonomy for Guyane,
which Sen. Heder favours, or
independence, cannot be
argued against on grounds of
non-viability, asin the case of
the islands. Apart from its
huge natural resources,
Cayenne has an exceptionally
high literacy rate.
Meanwhile, the opposition
leaders await trial in Paris.
They face jail terms of up to
10 years. The eight, who
include Guy Lamaze, the
34.year-old teacher and
leader of the currently most
active opposition group, the
pro-independence Movement
Guyanais pour le Decolonial-
isation (Moguyde), have
obtained political prisoner
status and rights after staging
a hunger strike over Christ.
mas. Along with them in the
Sante are three Tahitians
awaiting a similar trial.
All will be tried by the
special State Security Court
which was originally set up
more than a decade ago to
deal with the OAS in Algeria
and which in recent years has
arraigned before it "sub-
versive" militants from
Guadeloupe and Martinique
also.


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PAGE 4 TAF'AIA







SUNDAY JANUARY 19, 1975 TAPIA PAGE 5










Denis Solomon's
address
to
the
Senate
during
the
1975
Budget
debate
















D THE BUDGET


MR. PRESIDENT, the Hon. Minister of
Finance in presenting his budget for the year
1975 has dubbed that year the Year of Oil and
Food a non euphonious title, like so many
of Government's slogans; but an apt one
nevertheless.
The budget that has emerged from the
Chambers pot is perhaps not so much oily as
slipp,.y; but it does contain much food for
thought by those who are entertained by
puzzles and by conundrums. For when one
considers the 1975 so-called budget against
the background of the projects that have
been announced and the declarations that
have been made in the past year concerning
the glittering industrial and agricultural future
that lies ahead of us, one is immediately
tempted to ask: Where is the budget? For
what we have before us is a reiteration. d
in no more precise form, of the alluring
perspectives for the future with which we
have been tempted so frequently already.
What we do not have is an account of revenue
and expenditure associated with these projects in
other words a budget. We cannot make 1975 the
year of oil and food by merely calling it so. We must
plan it politically, economically and, what is of
relevance to this debate, financially. That is, we must
budget for it intelligently, imaginatively and
realistically. Such financial planning is not contained
in the present budget nor even reflected in it.
Before we go to the question which I wish
principally to deal with in relation to this budget,
that of oil, and the projects associated with it, let
me just take an example from areas where budgeting
should be much more straightforward. How can we
make sense of the project in the four income generat-
ing areas of investment listed at page 32 of the budget
speech roads, water, electricity and telephones if
we know no more about them than is given in the
budget speech? We are told on page 32 of the speech,
and I quote:
"We have looked into the cost of developing the two
principal new water systems to meet the country's
future water needs, i.e. the Caroni-Arena system
and the Oropouche system. The present day cost of
those is $280mn. We have also derived a rough
estimate .of the cost of generating the electricity
needs of the industrial complexes. The figure is
.$1,000mn. The cost of the first phase of the tele-
phone development programme being currently
executed is $100mn\ over three years; and hon.
Memb";s will recall that the present expansion will
not fully satisfy even the existing backlog of demands
for telephones, let alone make provision for the
future. An expansion of this order of magnitude will
be required every five to ten years; this will mean at
least $300mn. over the next two decades. These are
only the infrastructure requirements which are
needed for income generating investments. They add
up to almost $2,200mn."
In the Draft Estimates for the Development
Programme, at.page 37, we see that the developments
of the water system are estimated to cost a total of
$14,256,000 for the year 1975. The Caroni Arena
project which is referred to specifically by the Hon.
Minister of Finance in his budget speech is part of
the Head "Major Water Scheme" which is estimated


to cost $10 million.
We are given therefore a figure for estimated
expenditure on the improvement of those services for
the next 12 months. We are also told in the Financial
Statement of the Draft Estimates of Revenue that
the Development Programme will be financed to the
tune of $536.7 million from a surplus in the capital
account and $85.5 million from capital receipts,
which is to say, bonds and Treasury bills, loans from
International Lending Agencies and the profits from
the National Lottery. What we are not told by the
Minister is what we are getting out of it all in 1975 or
later how many miles of road; how many kilowatts
of electrical capacity; how many telephones.
The Hon. Minister of Finance ought to realize
that people want an answer to these questions and
want to know that their government have some clear
idea of the answers, just as much as they want to
know how much money they will have in their
pockets as a result of tax concessions that the
Minister of Finance has so generously given. Yet it
will be seen from the budget speech that the Hon.
Minister of Finance is convinced that this is the only
thing that matters to the citizens of Trinidad and
Tobago the amount of extra cash that they will
have in their pockets.
In fact, and I quote:
"The reduction of personal taxes for all taxpayers in
the country".
is specifically stated to be one of the objectives of
the budget. Now the reduction of taxes is one of the
methods which the hon. Minister of Finance may use
to achieve certain ends. It is emphatically not an end
in itself, and to state it as much as such is either naive
or cynical in the extreme.

LACK OF POLICY

This kind of oil is the real oil in the budget. But
it is not petroleum oil, it is snake oil. However, my
contribution to this debate is henceforth going to be
confined to the question of petroleum and the
government's petroleum policy, or lack of policy, as
it is reflected, or not reflected, in this budget. The
Year of Oil and Food means, if it means anything,
that the revenues to be derived from our oil policies
are going to be the basis of industrial and agricultural
development derived from these revenues, based on
the processing of petroleum products and utilizing
the energy derived from hydrocarbons. The simple
question that must be asked is -- how much faith can
we place in all this? This is the budgetary question
par excellence.
Let us look again at page 32 of the Minister of
Finance's speech under the heading "Perspectives".
He says: the energy based programme of industrialisation
proceeds as planned, the cost is likely to be in the
region of $6,000 million at 1974 prices of which the
country will be expected to subscribe at least one
third in order to have a meaningful stake. I have not
mentioned the needs for social investments in housing,
health and education..."
and so on.
If you look at the Capital Accounts in the
draft estimates of revenue, you will see the following
items Development Programme, 174.2 million
dollars.


Expenditure on public participation in indus-
trial enterprises, $20 million. If we look at the pro-
portion of the development programme to be
devoted to projects based on petroleum we see only
the following vague and tenuous ones on page 4 and
on page 20 of the development programme of the
draft estimates. On page 4,.Natural Gas and allied
Research financed from the Petroleum Development
Fund in 1975. Sub-head 2 Item ia St. Patrick
Development Programme in the 1975 Estimates:.a
token provision of one dollar.

And I only dare to call these projects "Pro-
jects associated with Petroleum" because of state-
ments made at various times by the Prime Minister,
of which I have compiled the following partial list.
And if you permit me to read this, Mr. President, I
will quote a few of them. An aluminium smelter,
industrial estates (a) at Pt. Lisas, (b) at Pt. Fortin.
The provision of a team of experts from Iran, to
advise on the control and measurement of petroleum
imports, increased government participation in dhe
petroleum industries in oil, purchase of Shell.
In this context the latest thing we hear about
Texaco is that we are awaiting information from
Texaco on its assets and that Texaco is to establish
a Petrochemical complex at Pointe-a-Pierre the
government to have majority participation; and that
also this majority participation is to be without pre-
judice to the agreement in principal to government's
participation in existing Texaco operations.
Now this question of participation in existing
Texacooperations seems to be, on the basis of the
statements of the Prime Minister, a very on -again-
off again kind of proposal. I will not worry you with
the actual quotations, but the principal ones are
three.
First of all the statement about the Texaco
Petrochemical complex and the intention of the
Government possibly to participate in other Texaco
operations.
Secondly, a rather farouche statement to the
effect that the country was completely wrong in
assuming that any negotiations on the basis of any
figure for participation in Texaco's other operations
had been engaged in; and third another statement (by
the way, in the context of another fireside chat)
to the effect that such discussions were continuing
or at the very least the Government had not entirely
abandoned its intentions in this regard.

I continue to quote a few more a petro-
chemical joint venture with Texaco; proposals for
a liquid ammonia plant for fertilizer production
discussion regarding a steel mill using imported ire
ore and large quantities of natural gases; I under.
stand that the contract for ite supply of natural gas
from AMOCO expired at tie end of 1972.
Majority shareholding in a liquefield natural
gas plant, and government's option to take a peicent-
age in any field to be agreed on: joint venture w\\th
what I call an Eastern Mediterranean or Persian Gulf
coun try for the purpose of establishing a new refinery,
discussions on joint ventures \with Japanese trading
corporations for oil refinery expansion, utili/ation

Continued on Page 6







SUNDAY JAINUARK


PAGEC 6 'APIA


From Page 5

of natural gas, petro-chemicals, aluminum, steel,
shipping and so on; Tesoro Corporation of the
United States to establish in Pt. Foiin a refinery of
300,000 barrels a day capacity, 'and the petro-
chemical complex involving 13 plants and a commit-
ment to an aggressive policy of exploration in drilling
on land and on sea, and so on and so forth; up tc
the return of the Prime Minister from his latest
peregrination, as a result of which we have added
to the list the new names of Tenneco and Kaiser; and
proposals for a wide gamut of projects involving
agricultural development and all kinds of other
things.
Coming back to the Budget Speech we see at
page 33, and I quote:
"Some of the expenditure may be financed by loans"
and so on.
"These expenditures are so enormous that, even with
an appropriate phasing of the projects and with
considerable support from the international, financial
community, it will be quite impossible to expect that
this tremendous amount of money can be mobilised
in the period of time between design and construc-
tion. The financing must be planned long in advance
of any serious implementation. To do otherwise would
be to incur the risk of having the projects continu-
ally deferred because of a lack of funds, or lose them
to other countries, with all the consequences that
this holds for the provision of jobs:"
Elsewhere it is said that the prospects for these
projects are considerably increased as a result of the
report which the Prime Minister submitted on his
return from his world tour. This is the sum total of
the account that we are given in this year of Oil and
Food of the way in which oil is to be used. We turn at
last in desperation to the Petroleum Development
Fund, and what do we see? First, that it is outside the
development programme. Maybe we are getting
somewhere at last; but alas, what do we read on page
36 of the budget speech?
"This is particularly true for example, of expenditure
on petroleum development where the major invest-
ments on the acquisition of Shell's assets, the laying
of the gas pipeline, Government's participation in the
joint ventures and additional capital required for
investment in producing petroleum based assets
located in the South West Peninsula will be made
from the Petroleum Development Fund. The same is
true of the Fisheries Development Fund, the Food
Development Fund, and the expenditure on the new
gaol in respect of whicni a reserve was created in
1974."
So what is the $20 million then in the develop-
ment programme for expenditure an oil based indus-
tries, for participation in oil based industries? And,
more important, why twenty, why not twenty-five,
or 40 or 2,000? What is the rationale of this piece of
accountancy?
At page 88 of his speech the Minister goes on to
say:
"Second, the Petroleum Development Fund. Last
year, I proposed a target of $350mn. This is barely
adequate to acquire and develop the assets of the
former Shell Trinidad Ltd. build the pipeline to
transport natural gas for local use and for a mean-
ingful Government equity participation in some of
the enterprises which have been announced. The Fund
must be enlarged. The opportunities which have been
opened up by the Prime Minister's visit emphasise
this."

This is what I mean, Mr. President, when I say
that the real oil expenditure which we are being
invited to consider here is not contained in the
Budget, other than in that sentence. It is contained
in the vague projects that the Prime Minister has
announced over the years and, particularly, on his
return from his latest pilgrimage. "I shall ask Parlia-
ment to appropriate to the Fund for 1974 the full $79
million already received by way of receipts and cash
because and so on. I now propose that the fund
should have a target of $1500mn. and that in 1975
$230mn. should be allocated to it- lamcontinuing
to quote the Budget Speech.
So we learn then to our dismay that the
Government is so vague about the details of its oil
based projects that it set a target for this fund of
$350mn. in 1974 and sees fit in 1975 to increase this
target to $1,500mn. with an allocation for 1975
of $230mn. The Government had, still has, no con-
ception whatever of the scale of financing required
in the industries which at the same time they were
vaguely touting as candidates for diversification in
the petroleum using sector. Nor do they have any
idea where the world petroleum industry is going.
What kind of budget is it, Mr. President, that attaches
so much importance to petroleum based industries
and development projects that it can set a target of
$350,000,000 for this and yet have so little idea of
the nature of these projects (in a year dubbed the
year of oil, mind you) that an increase to
$1,500,000,000 is then made with no greater justifi-
cation than, and I quote:
"The opportunities which have been opened up by
the Prime Minister's visit ...
Furthermore, Mr. President, the one expen-


diture which we all know about, namely the $93.6
million for the purchase of the assets of Shell
Trinidad Limited, has not been reflected in the
Petroleum Development Fund for 1974, although we
are told in the budget speech that it will be reflected
there in 1975. What happened then to the $150
million appropriated to the Petroleum Development
Fund in 1974? I assume, as we all assume, that it
remained there, but we are not told so. In fact,
there are no accounts internal to the Petroleum
Development Fund at all; they are just global figures,
Mr. President. There is no indication of how much
each project will cost in 1975 or in any subsequent
year. Could it be that the Minister of Finance in the
year of oil and food does not know?
If projects exist at all, global figures are not
enough; some kind of meaningful aggregate of esti-
mated sources of revenue and heads of expenditure
at least is necessary. We are told that some of the
money maybe financed by loans. How much, loans
from where? At what" rates of interest? How are
these loans to be financed? What is the estimate of
profitability on the various projects and the conse-
quent estimated rates of re-payment of these loans?
And on the expenditure side,Mr. President, what are
we going to get for our money year by year, and
particularly in 1975, the Year of Oil and Food?


NEBULOUS PROJECTS


If these kinds of estimates are not available
then the projects are so nebulous as to be to all
intents and purposes non-existent, and 1975 will not
be the year of Oil, not of oil-based industrial projects
at all events. And this kind of accountancy, or lack
of accountancy, Mr. President, is all of a piece with
the tendencies that we have seen in past years of the
Government of Trinidad and Tobago acquiring con-
trol of a large number of operations within the
country as well as outside: Orange Grove and Caroni,
for example; and acquiring through the IDC control
or ownership of a large number of industrial and
commercial enterprises with the result that I sup-
pose something like about 2,000 people are indirectly
employed by the Government; and financing them
by means of increasing appropriation of global funds.
Funds like the Petroleum Industry Development
Fund, like the other one quoted here; the Agricul-
tural Development Fund.
Now, Mr. President, the place for the accounts
of these funds to be rendered in Parliament, and it is
true that in theory the accounts of all these enter-
prises are at one time or another supposed to be laid
on tie table in Parliament. But, nevertheless, it is,ani
unhealthy trend that this kind of accountancy has
proliferated in the way it has done. There are
tremendous opportunities in this apart from the
insulation of the operations from public scrutiny in
terms of their efficiency. There are tremendous
opportunities, not to put too fine a point on it, Mr.
President, tremendous opportunities for "bobol."
Make no mistake, however, Mr. President, that
I am so foolish as to believe that if such projects are
in tie will, or perhaps I should say in the pipeline,
they could fully be accounted for in an annual
budget; certainly not. But if oil is proclaimed, as it


has been, as the basis of development to begin in
1975, in the 1975 budget we should have some
figures for 1975 with a more general projection of
later stages. And if they are not accounted for in the
budget at this stage they must, at all events, be
accounted for to Parliament at some stage.
Simulcasts are not enough; the people must be
told and Parliament must approve the cost and
benefits of development programmes; if not a throne
speech, which we did not have this year, then a five-
year plan, which '-' also did not have this year. If
not a five-year pii, than a white paper, which we
have been repeatedtly promised on the subject of oil
but which, like the throne speech and the five-year
plan, we do not have.
In those circumstances, Mr. President,-how can
we make any kind of a detailed examination of the
revenue and expenditure proposed in terms of their
possible benefits to the nation? Not only does this
budget give us nothing to go on as far as the Govern-
ment's plans for our future and the financing of those
plans are concerned, but nothing else does either.
We are here to examine a budget, not the con-
tents of the Prime Minister's broadcast to the nation
or his report of his pilgrimage; but those, sadly, are
all we have, and in terms of budgetary details
they are less than nothing.
From the revenue point of view,Mr. President,
we have nothing before us relating to the financing
of projects designed to place our destiny in our own
hands or even giving us a framework within which we
might chart a course for the future. All the Govern-
ment is doing in this budget, Mr. President, is just
raising what revenue it can in the form of income to
the Government and to the country.
Instead of accounts we have announcements
and instead of examination of accounts we have
consultations designed to make it look as if we
approve these projects. This is an insult to Parliament
and to the population of Trinidad and Tobago.


WASTE OF TIME


There are two of these so-called consultations
scheduled to waste the time of public servants and
the public. One is, I think, on January 13. Tiis is
die statement to Parliament by the Prine Minister on
his return from abroad.
"The discussion on the best use of our petroleum
resources ... should be convened \\itlin the week of
January 13, 1975 at the Clhaguaranmas Convention
Centre with Dr. Kenneth Julicn. Deputy C(harman
of the ID)C. Chairman landd that a basic paper lie
prepared by tec Ministry ol P'cltroleumc anId Mines...."
In other words, everything that should have been in
the budget.
lT en there is another one somewhere on some
thing else on Januaryy 6. I will not delay you about
tlat, Mr. President. I am just trying (o point out to
you the way in which the Governmcent of Trinidad
and Tobago seeks to give ite uipretssion of having
public approval foi things whtvch aie not only not
presented in lte kind of detail which ihe county
oughit to expect buti which canlnot I e presented in
that kind of detail because they aie exceedingly
nebulous and exceedingly InpiecCl'e.
Mr. President:. Senato Sololmonio torinve me








TAPiA PAGE 7


lent: The hon. Mcm-
g time will expire in

nade and question
iat the hon. Mem-
g time be extended
:s (Mr. I. Laughlin).
lent: According to
Irder No. 40, one
ly is permitted and
non has been utilis-
nsion. It will expire
time.
est: Mr. President,
to suggest to you
the Standing Order

lent: I am afraid
)n is not in order.
:st: I really wish to
In the Constitution
iple days ago, the
:r spoke for 8/2

lent: The Prime
not speak in the
Senate is governed
ing Orders of the


Senate. There is ne provision for
the suggestion which you are
making at this point.
Senator Best; May I make a
point, Sir. We are dealing with this
country's business, and this coun-
try's business is serious business as
far as I am concerned, and as far as
we in Tapia are concerned, and
those Standing orders are totally
out of joint with the needs of
this time; and I think we have to
have the flexibility to deal with
them and use our imagination
and our good sense to allow the
business of the people to proceed.
I do not think we can simply
recline before these rules, and I
am putting to you as a reason-
able man that Senator Solomon
is making a presentation which is
of some interest to this country,
and that there is no reason in the
world, no good reason in the
world, why you should simply
impose Standing Orders. I want
us to put it to the House. We
cannot carry on with those


for interrupting. You will continue your contribution
when the Senate resumes this afternoon.
Senator Solomon: at the end of the first part of my
eight and a half hours, I was making reference to the
fact that instead of accounts, what we have are
announcements of nebulous projects, and instead of
examination of accounts, we have national con-
sultations designed to make it look as if the citizens
of Trinidad and Tobago approve these' nebulous
projects.
In this connexion, I would like to point out
that this lack of plan the Government of Trinidad and
Tobago is afflicted with, this vagueness of concep-
tion and execution, is all part of the urge to invite
multi-national corporations to come here and do the
Government's work for them.
The invitation to multi-national corporations
to engage in joint ventures and so on is not part of
the plan, it is the means whereby the Government of
Trinidad and Tobago hopes to get a plan for itself,
in other words, what they hope to do is to have ,,ese
multi-national corporations do the work of ilannii.g
for them. They consider that they do not possess
the civil service, in fact they do not know how to
use the civil service, they do not know how to train
a civil service, they do not know how to inspire a
civil service, just as they do not know how to inspire
the citizens of this country.

LACK OF PURPOSE


This lack of purpose is the result of two factors
which are perhaps relevant. Firstly, the utter con-
tempt of the present Government for the population
of this country, for its intelligence and for its
capacity. In this context, I only have to make
reference to the statement made by the hon. Leader
of die Government Business in the Senate in the
course of the last sitting in this House in which he
sneeringly referred to Tapia's proposals as being
idealistic, as being directed towards a population, "a
kind of man", I believe was the phrase he used,
which does not exist in this country, whereas in his
view his Government had to make plans in the con-
text of the existence of a different kind of man,
presumably an inferior one to that which Tapia
conceives to exist here.
Now, I do not know what Government in the
entire world would proceed on any other assumption
than that their citizens constitute the best citizens
it is possible to find anywhere. I do not see how it is
possible for a government to operate on any other
assumption but that; and if they had any suspicion
otherwise, then you would think at least they would
have the decency to keep it to themselves instead of
proclaiming it as a belief in the lack of capacity, the
lack of intelligence, what the Leader of Government
Business today referred to as the mores of the
population of this country. This contempt is com-
plemented by a disproportionate awe and respect for
everything European or North American, especially
in matters of industry and technology.
In this context, I would like to draw your
attention to the inconsistency of which the Prime
Minister himself did not seem to be conscious in the


colonial rules here at all; we have
to open them up. This country
is in the middle of a revolutionary
situation, and we have to talk
about the issues.
Senator Prevatt: On a point
of order, Sir, you have already
said that we are governed by the
Standing Orders and I wish you to
rule that the time cannot be
extended no matter what any-
body says and that we must be
governed by the Standing Orders.
Senator Solomon: Yes, Mr.
President, I am placed in a dif-
ficulty here of doing, in relation
to my own ideas, precisely what
you find it impossible to do, or
we feel that the Senate finds it
impossible to do, in relation to
its own method of conducting
business; namely to cut down, to
alter in the middle, to condense
without notice, the points that
I have prepared in answer to the
Government's proposal, in a way
most effective for public con-
sumption. However, I will try to


do it.
I think also, if it is not out of
order to say so, that it is not
very courageous for the Leader of
Government business in the
Senate to insist on taking refuge
behind a rigid interpretation of
the Standing Orders, when in
fact he has at his back a built-
in majority constitutionally gua-
ranteed, and the only danger to
him from this side of the House
is the danger of the ideas that may
be spread abroad as a result of
the debate.


Mr. President: Your speaking
time has expired, Senator Solo-
mon.


statement which he made to Parliament on his return
from China. I do not have it at my hand but he made
reference to the fact that he was highly impressed
with the self-reliance which the Chinese people had
developed because of the withdrawal of Russian
support.
It may well be just a racial prejudice on my
\ part but I would always have thought that the
Chinese people were far more self-reliant than the
Russians in the history of both these countries;
nevertheless, I may be equally wrong. However, the
point is that the Prime Minister sees no inconsistency
whatsoever in making this admiring statement about
the self-reliance the- Chinese people had developed
because of the withdrawal of Russian economic
support and then to come back here and regale us
with a tremendous list of metropolitan, international,
multinational corporations which he is inviting here
to do our work for us.
'The second, not unrelated, factor is the as-
tounding incompetence of the Government to see the
society and its structure as a whole; particularly to
see the economy as a whole and to see the effect of
each of its component parts upon the whole and to
lay down a policy framework for the evolution of
that economy, a framework that would serve as a sort
of guideline to indicate the acceptability of certain
courses of action and the inapplicability of other
courses of action at any given moment.
When there is no plan, one thing is always as
good as another, and that is why Government has
been guilty of such zig-zagging in its political and
economic planning and execution. That is why so
much is adumbrated but so little is executed; that is
why every budget contains everything and nothing at
the same time, while they are always going to do
everything tomorrow. That is why the Government
has always resembled a person who can never whistle
more than the first line of any tune.
For eighteen years there have been crash pro-
grammes, stop gap measures, interim loans and
familiarisation tours, preliminary surveys, pilot
projects, and exploratory talks. Always a bridesmaid
and never a bride.


WATCHDOG

We notice how often the Prime Minister says
that he is "watching developments" in this or that
area of international politics or economics. The
Government, in my opinion, watch so many develop-
ments that we should call them a "watchman Govern-
ment" or even a "watch dog" government. Just to
give you a perhaps frivolousexample: this is the only
country that I know of where a senior official (Sir
Alan Reece) turned the first sod in the Scotland Bay
hotel project three times.
That is why, this. government have been
incapable, in the field of petroleum, of taking tie
country's destiny into their hands, The acquisition
of participation, whether it is 51% like Tesoro, or
100% like Shell, represents just a method of getting
more money under the cover of nationalization (not
localisation, because localization as Tapia conceives
it and as Tapia has explained it so often would in
fact represent a political objective of involvement


Senator Solomon, your time is up...


a. J participation of the population that is completely
foreign to this government).
Now under the guise of nationalization, the
acquisition of part or whole shares, in petroleum
companies is merely another disguised way of in-
creasing revenue. And in this context I think it is
worth repeating what I pointed out in an earlier
debate in this Chamber on the question of Tesoro.
Even when it seems that we have control in fact
when you look under the surface control has been
sold down the drain.
In the deal between the Government of
Trinidad and Tobago and Tesoro, Tesoro put up a
capital of something like $50,000 (U.S.) in exchange
for 49 per cent of the company which is valued at
$22 million (U.S.)
"The frinidad and'Tobago Government had 50.1 per
cent of control,but the fact is they then around
.and gave Tesoro a management contract. This manage-
ment contract is a device. This is a device when gives
a:group contractual rights to manage, so that a
board of directors is really quite emasculated. Tesoro's
contract gave it control over finance, technology and
marketing that is, everything.
This was not enough. The Board of Directors
was to be composed of nine members, five appointed
by Government and four by Tesoro. You would think
with five to four, you would have control. But this
was not the case. First of all, Tesoro had to agree on
the Chairman. In spite of the minority of members
on the Board of Directors, the Chairman could
not be appointed without the agreement of Tesoro."
And there were other conditions, having to do
with the majority required in the voting on the Board
of Directors for certain types of decision. Now these
acquisitions are in no way designed to put control of
our oil and gas resources into our own hands in such
a way as to enable us to use them as an instrument
of economic transformation.
To see the revenue implications of this Govern-
ment's pusillanimity it is necessary to go back at least
to 1971.
In 1971, the oil producing countries of North
Africa and of the so-called Middle East, that is to say
the Eastern Meditteran and the Persian Gulf, took
their destinies into their own hands first of all at the
Conference of Tripoli and then the conference of
Teheran, first of all by breaking the grip of the
multi-national corporations, the capacity of the
multinationals to play one government off against
the other, by imposing posted prices, for tax pur-
poses, not by the Companies but by the governments
- themselves; by increasing royalties and tax rates; and
eventually by taking larger and larger participation
in the companies until by January 1st, 1975, all the
producing of those companies will be wholly owned
by the governments concerned.
The taxes levied, just to give an example,
amounted to $2.04 U.S. a barrel on the average in
1970 and $9.82 U.S. a barrel on the average in
November of this year. As a result, just to take an
example, the per capital national income of the Gulf
state of Abu Dhabi rose from US $3,000 in 1962 to
$40,000 U.S. in 1975. Our neighbour Venezuela,
with whom I understand we are not talking at the
moment, is at present drafting a law for complete
expropriation of the assets of all oil operations there
in 1975.
Now the reaction of Trinidad and Tobago in
this turmoil was, as usual, both late and slow. Negotia-
tions with the oil companies began in 1971; they
were announced in the 1972 budget; but it was not
until 1974, however, that the government was able
to obtain higher revenue from the oil industry. They
did this by, first, establishing posted prices of their
own, secondly by increasing royalties and profit
taxes and thirdly by imposing for the first time a
refinery throughput tax. These measures resulted in a
vastly increased revenue for 1974, and a few million
dollars retroactive increase for 1972 and 1973, The
tax rose from .69 US per barrel of crude in 1970 to
a little over 6.00 U.S. at the present time.
In order to evaluate the revenue performance
of the Government in the area of oil since 1971,
therefore, we must consider.
1. The losses incurred due to delayed imposition of
revised prices, royalties and taxes.
2. The adequacy of the level of taxes that were in
fact imposed.
3. The efficiency of the revaluation and collection.
4. The discrepancy between income estimated and
income actually received.
Now the losses due to the imposition of these
revised royalties and taxes aic impossible to calculate
precisely because of the lack of data that afflicted
the Government, and still afflicts them; and it is the
Government data that we have to work on. But the
difference between revenue that would have been
taken for 1971, 1972, and 1073 if the agreement had
covered that penrod fully and what was actually
taken obviously must amount to several hundreds of
millions of dollars.
If you care to do the millu,what you do is take


19, 1975






SUNDAY JANUARY 19, 1975


From Page 7


the total production of crude for mose 3 years and
multiply it by the royalty and tax fake per barrel for
1974. Then find the amount of crude refined in those
3 years and multiply it by the 1974 throughput tax
of .15c per barrel; you then find the declared profits
of the companies for 1971 1973 and tax them at
the 1974 rate of 47 p.c. Add all these figures, then
substract the taxes actually paid, plus the amount of
the retroactive settlement, and you will get the
amount of income that was lost to this country
during that period.
Now, for 1975, incidentally, Government's
estimate of revenue for these sources is $811 million;
our estimates based on the same production figures is
well over $950 million. But the amounts collected in
1974 are also low because of the lack of evaluation
machinery. And for the same reason we do not know
how much too low they are. There are enormous
problems of control at the refinery end which the
Government have been completely unsuccessful in
overcoming.
This is what I meant when I said that govern-
ment have not taken the necessary steps to recruit,
train, to inspire the kind of technocrats, the kind of
technical civil servants and experts who will enable
to them to make the most of whatever form of
planningthey care to impose in the area of petroleum.


LABORATORY

The tax rates for different products depend on
profitability; a petroleum testing laboratory was set
up 2 years ago, Ibelieve,to determine the profitability
of different types of crude. This it is has not really
succeeded in doing.
Mr. President: Senator Solomon's speaking time
will expire in two minutes.
Motion made and Question proposed: That.the
Hon. Member's speaking time be extended by 30
minutes (Senator W.O. DeSuza).
Senator Solomon: Thank you, Mr. President.
So that the effectiveness of the petroleum testing
laboratory has not been all that it might have been
In fact I think I see in the Development Programme
Estimates there is a figure of something like I am
not sure, I will not bother to look it up $280,000
for improvement to that laboratory.
So that in fact there has been a loss which is
not clearly determinable but certainly a loss in the
tax revenues that could have been collected over
1974. The throughput tax which the hon. the
Minister of Finance is raising in the present budget
from 15c 'to 16c should in our opinion be approxi-
mately twice that,
The royalty payments which are at present
determined by the contracts signed with individual
companies are also affected adversely by the price
controls in the United States market which depress
the price of products sold there.
Now if these royalty payments were deter-
mined by legislation in this Parliament rather than
by the individual contracts, they could be freed
from this adverse influence and result presumably in
further tens of millions in revenue. Not only do we
estimate that the tax take on the basis of tax levels
proposed by the Minister of Finance was higher than
he thought it would be but we believe that tie rates
themselves could have been higher.

the present tax take per barrel as I mentioned
is just over (U.S.) $6 I believe, on posted prices
around $13.70 or reference prices as we call it in
this part of theworld of just over $13.70 for Trintoc,
almost $13.90 for Tesoro; $14.50 or thereabouts
for Texaco and about $15 for Amoco, We figure
that these posted prices could have been about 40c
or 50c higher for Trintoc, for Tesoro and for Amoco,
although no higher and possibly a little Jower for
Texaco, since the competitive position of Texaco as
an importer-of crude is affected by the rise .in price
of Arabian and African crude which it imports for
refining.


ROYALTIES


Taxes, we figure, could have been something
like 65 per cent instead of the 47 per cent now in
force and the 50 per cent to which the Minister of
Finance proposes to raise them in 1975. Royalties
also could have been closer to 16 per cent than to
the level of, I think it is on the average about 12
per cent, which they are now for 1974, So that
applied to 1974 all these tax levels which we think
the industry could have stood would have produced
revenue of about U.S. $2 more per barrel, that is to
say (T&T) $280 million more than what was
collected.
Applied to 1975 these rates we calculate would


produce revenue of about $1,200 million instead of
the figure of $811 estimated by the Government and
the figure even of $950 million or thereabouts which
we estimate as being collectable under the present
dispensation in 1975.
So you see'that in calculating the effect of these
deficiencies in the Govermnent's revenue in reference
to the oil industry I have first of all considered the
question on the basis of their political assumptions,
that is to say, the assumption of haphazard and
unmotivated acquisition of shares that essentially
leaves control in the hands of die industry.
We must now consider what other political
options the Government might have pursued if it had
confidence to seek effective control over the extrac-
tion and marketing of its natural resources and the
maximization of opportunities for development
arising from them.
For in the case of complete nationalization of
our resources the question of tax levels and reference
prices would be academic, since we would be con-
cerned only with one price, the price at which we
would sell our oil to get the maximum revenue for
ourselves. The problem of finding out die facts of
the oil companies' profitability would disappear. But
there would be other problems, especially the
necessity to understand the complexities of the econ-
omics of oil on the world scale and particularly the
economics of marketing and supply.


EXPERTISE


But these are problems that we have to under-
stand and master anyway if we are to do anything
with our oil and gas other than just getting revenue
for them. Even to carry out the programme which
the Government claims to have, this kind of expertise
is necessary; but it is the expertise which they do
not possess.
The Leader of the Senate himself in his
presentation of the budget referred to the difficulty
of finding out these data. Now the only way to handle
the difficulty in my view and particularly for a
government of a sovereign country is not to proclaim
the difficulty and expect sympathy, but to overcome
it, to find out the answers to the questions and equip


themselves with the expertise and with the personnel
necessary, and to tackle the problems with confidence
and to win the support of the population in the
effort.
In order to understand what these problems
are we must first look at our political history and the
logistics of the oil trade in the world. Our political
history enabled the companies to establish themselves
here on their own terms. Our geographical position
dictated that they should establish themselves for
refining as much as for crude production.
In fact in the case of Texaco, refining and
marketing were much more important and crude
production is considered to be more or less a part of
the cost, although that does not stop them from
making a profit on that as well.
Now Government knew this when Texaco
bought out Trinidad Leaseholds and were permitted
to do so. And this was the reason why the Govern-
ment prided themselves on having imposed the
condition that exploration for oil should continue,
because they were concerned about jobs.
In other words, it was not a question of getting
control of our resources; it was the question of
getting you, Mr. Texaco, to agree that you will
continue to provide jobs for us if we let. you have
control of our resources. But seeking does not mean
finding. Onlyin the Bibleis thatso;seek andyou shall
find.
So it is not surprising that in fact Amoco is the
one who has been finding oil because Amoco has in
fact got no refining interest here at all; and Texaco
has not been terribly successful in the finding of new
wells.
Now the logistics of the oil business in the
world are quite simple. It is cheaper to ship crude oil
over long distances and produce refined products
close to the markets where in fact they are sold and
to site the processing plants for downstream opera-
tions close to the market also: You may ask why
Texaco does not refine in the United States the
Trinidad crude and the rabian and African crude
which it refines here.
The answer is quite simple, and it is that in
spite of the efforts of Mr. Weekes and company the
costs of refining here are much lower than the cost
of refining in the Unit:. States. They also use Vene-
zuelan crude but they do not refine in Venezuela
because they do not think that the Venezuelan
Government eats as nice as the Trinidad Government.
Now what is necessary for us?
First of all a secure source of crude and secure
markets for that crude. Now where refining is
involved or expansion of a refinery, which the Prime
Ministry glibly announced that he was going to
undertake when he first proposed to buy into Shell
operations, you have to be sure of getting a secure
market for at least five years in order to amortize
extension of refinery costs, because these costs are
extremely high. The average cost of installing
refinery capacity to produce one thousand barrels
per day more than what you have is calculated to be
(U.S.) $2,000 million.
The United States needs export of ourproducts
and the United States market is likely to be open at
least until 1990 to any outside producer, whereas it
was closed to certain producers before. The hallmark
of a successful operation in any field of activity in
the ability to turn disadvantage to good account.
We have suffered from having the refinery
right here. In fact, for a long time we have derived
no profit from the refining operation until the
throughout tax was imposed in 1974. But now, we
have the refinery and we are standing close to the
market.
Continued on PAGE 1(


PAGE 8 TAPIA








cUINIAY JAINUAIKI ly, i'/9


From Page 2

"It is difficult to understand
the basis for this coalition which
lasted until 1968. The U F was
recognized as representing the
white commercial and upper class
wedded to free enterprise and opposed
to Independence for Guyana. Hence
its association with the P N C sup-
ported predominantly by Afro-Guy-
anese of the working and middle
classes and espousing socialism as a


V. OU
Rac S


political goal reflects some degree
of ideological incongruity."
In general the book suffers from
a similar paucity or superficiality of
analysis. It may be that Dr. Greene
considered that sufficient analysis was
to be found in other works and there-


fore concentrated on such analysis as
was directly related to the second part
of his main hypothesis.
He is concerned with demon-
strating that since the introduction of
proportional representation particularly,
Party organisation has played an in-


creasingly important role in winning
political allegiance across racial bar-
riers.
It is an attractive and important
hypothesis which however, in spite of
the weight of evidence brought to
bear is not established. Nonetheless it
is an area that invites more research
activity. Indeed the fact that the book
leaves us several areas that need
deeper probes by other scholars is
both a testament to its strengths and
its weaknesses.


S.O.S FOR SOBERSI


Baldwin Mootoo

I HAVE a good friend who has
always warned: never bet on
cricket. Once again he has been
proven correct. The elation that
followed the West Indian victory
in the first two test matches
against India has given place to
introspection and dismay.
After two overwhelming vic-
tories West Indian supporters were
thinking of a 5-0 victory. Several of
us were marvelling at the strength of
the West Indian batting in fact
both the team and the critics got an
inflated idea of our strength.
I had said then that it seemed
like a fairy tale. Well it was we have
now come back to reality. Jeff Stoll-
meye earnedd after the second test
that the series was not yet ended.


It is now square at two all. The
final test goes over six days unless
the weather intervenes there will be a
result. India has shown tremendous
grit and determination in the way she
has picked herself up.
Five crippling defeats in a row
- her batsmen demolished, her cap-
taincy in confusion, and her bowlers
hammered. Even her fielding had
deteriorated.

CONTRIBUTIONS

West Indies after the second
test, cocky and over-confident, gave
her a small opening-she took it and
has not looked back since. The slide
(or the ascendancy if you are seeing
it from India's point of view) started
in the West Indies' first innings of the
third test.


Alvin
Kallicharan










Relaxing somewhat, West Indies
suddenly found themselves with the
first half of their batting in the
pavilion for meagre contributions.
Interestingly enough it was not
the formidable spin attack -that had
done the damage but the unknown
medium pacer Madan Lal. The giant
relaxes and his fall is started by the
simplest of events. Madan Lal having
opened the crack, the spinners were
able to grab the opportuility and re-
assert their grip.
They have not let up since -
they have regained their confidence
and their psychological hold on the
West Indies will make this Indian
team very difficult to beat in the
final test.
The inexperience of the West
Indian batting is now quite apparent.
After the performances in the first
two tests one can understand the
selectors going into the third with
one batsman short, but the lessons of
that test should have been learnt.
There was no reason to take
the field in the fourth with only five
specialist batsmen Murray, Boyce
and Julien were not standing up to
the Indian spinners and the series
stood 2 I in our favour.
In addition, India were cer
tainly calculating and getting the
measure of our batting so many of
our batsmen are "eye" players so
she proceeded to prepare slow turning
wickets making driving off the front
foot difficult.
Too much was being asked of
Kallicharan the hole in the middle




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was beginning to show. In the last
four innings this powerful West Indian
batting side found great difficulty
getting near two hundred runs.
When one looks at our record
in recent years, but for the 1968 -
69 tour of Australia and the famous
declaration match against England
here in 1968 our defeats have always
been due to batting failures rather
than the inability of our bowlers to
get the opposition out.
For a team that has always been
traditionally strong in batting this
remains a mystery to me and cracking
up under pressure is only part of the
answer: we did not start the 1st
innings of the last two test matches
under pressure.
So we go into the final test
with the initiative wrested from us.
But we must win it. The temptation
to send an S.O.S. for Sobers must be
very great. India will once more pre-
pare a slow turning wicket.
We have no choice but to
strengthen the batting at the expense
of the bowling. Our problem has not
been that of getting India out. We are
now faced with a complete reversal of
the events of the first two matches -
that of getting good scores.
There is a tremendous psychol-
ogical effect in playing Sobers. He
would, too, strengthen the batting
and effectively replace Boyce or
Julien as a medium-pacer.
Derek Murray has not been
getting runs. We cannot afford the
luxury of playing him as a specialist
wicket-keeper and in any case he is
probably no better than David Murray
in this department.
In addition the reports indicate
that the latter has been playing the
Indian spinners very well indeed. I
will plug for sending for Sobers
- remember we are also going to
Pakistan so there are three test
matches still to play.
A good line up for the fifth
test is Fredericks, Greenidge, Kallicha-
ran, Sobers, Lloyd, David Murray,
Julien, Holder, Roberts, Gibbs. We
have not weakened tdie bowling and
the batting is certainly strengthened.


Books








Literature Ecoomic

Lloyd King Economics
Gordon Rohlehr
Victor Questel George Beckford
Denis Solomon Norman Girvan
Cheryl Williams Owen Jefferson
Derek Walcott Clive Thomas
Wayne Brown Maurice Odle
William Demas
Roy Thomas
Havelock Brewster
Alister McIntyre








Politics
James Millette Lloyd Best Vernon Gocking Dennis
Forsythe Fitz Baptiste Vaughan Lewis




Books...Pamphlets...Tapia selections


Phone 662-5126 or visit our office at
82-84 St Vincent Street Tunapuna.


_ --- II m~ ---- -_1~-----------1111_I--~-- __


--


I AU- I/ I' A kiL V







SUNDAY JANUARY 19, 1975


~. -..
- __


From Page 8


The Persian Gulf and African producing states
are doing their utmost to install refinery capacity in
order tomaximize the profits which they can get from
the oil which they now control within their own
boundaries. So we have the refinery capacity and we
are already close to the markets so that, in fact, this
is a tremendous opportunity to turn our disadvantages
to good account. So what is necessary is co-operating
with the producers of crude and negotiationsfor a
secure market at a time when those negotiations are
almost bound to be successful.;
In this context, why then is the Government
operation in relation to Shell so half-hearted? Why
is it that the Government are insisting against the
will of Shell (and in fact, they gave this as a reason
for acquiring the whole of Shell and not part)- why
are they insisting in increasing the capacity of the
Shell refinery at the cost of (U.S.) $2 billion for one
barrels per day of extra capacity when the Texaco
refinery is here already, but ey are not tackling the
Texaco refinery in spite of ie ambiguous series of
statements made by the Pri e Minister to which I
have already made reference,
The Government of Tr lidad and Tobago have
not been able to lay hands on the Texaco opera.
tions. Your guess as to the reason for this is as good
as mine. But the rationale of itis just not there. Why
buy one refinery and spend money to expand its
capacity when the other one is there, especially when
Amoco is producing much more crude?
s Then there is the question of determining the
terms on .which the whole operation was acquired,
The payment was $93.6 million, I believe, which is
$10 million odd above the net book value. We have
been told the story of how Shell demanded or asked
for payments for all kinds of things, like unexploited
crude lying in the ground; that is to say, the ground
which is the property of the people of Trinidad and
Tobago. They wanted to be paid for that. Also, they
wanted the updated book value, and we refused that.
But the question still arises why $93 million
and not $83 million; why the payment was in cash;
why the payment was in convertible currency; and
why the payment was not made in products or
partly in products. The Prime Minister pooh-poohed
in one of this statements the idea of paying for oil,
He said black was never so beautiful', and it is not
the money that matters, it is the oil that matters,
But the Leader of Government business in the
Senate in his presentation of the budget made the
opposite point and said it is the same thing whether
you paid in oil or not, The question is what is the
rationale? Why did they decide to pay in cash, at one
figure, in convertible currency and not partly, at
least, from future earnings, or partly in products?
Now it is possible that in the present context
this may have been the best way, I do not know
whether it was. But I also feel that the Government
do not know. Because one of the things there is an
article written by Norman Girvan,who is the man who
advised the Government of Guyana on the acquisition
of what is now the Guybau Company. He has written
this article about the principles of compensation and
expropriation, And one of the things that he says is
that you do not pay in cash, and you do not pay right
away.
Oir Prime Minister boasts in his report of his
trip to Hong Kong that the Hong Kong industrialists
were tremendously impressed by this fact that we


piid cash on the nail for Shell, and therefore they do
not have any worries at all about co-operation with
Trinidad and Tobago. Who is worried whether they
have co-operation with Trinidad and Tobago? I am
not worried about the idea of their co-operation
with Trinidad and Tobago. I want to know what is
the rationale for paying in cash? I see Mr. Girvan
says in his article:
"Multinational corporations and the governments of
capital-exporting countries tend to emphasize the
'promptness' of payment as basic to fair compensation
arrangements. Theideal .against which all other
arrangement are measured is immediate payments in
the form of convertible currency. Such a standard
strikes at the very heart of the motive for which
expropriation is undertaken by the Third World
government. Because the expropriation motive reflects
the need to nationalize the surplus and foreign
exchange generated by the subsidiary for national
use, immediate payment in cash will be either
financially impossible or, if financially possible,
inconsistent with the purpose of the expropriation.
The payment would deplete not only the cash
resources of the government but also and more
importantly the nation's foreign exchange reserves."
Now, you are taking a company over, in order
to get control of the sources of the nation's reserves
and a source of convertible currency. Now it may
well be that it was more advantageous in the opinion
of the negotiators to spend the money on this hard
asset which was Shell, rather than allow it to
depreciate due to inflation, but in r context where
you have a tremendous need for development pro-
jects which you have acknowledged in your budget
and you are also in the budget making complaints
about the possibility of a fall in oil prices which will
reduce your source of foreign exchange in future,


BAUXITE

Why are you paying then in convertible cur-
rency the full amount, and so promptly? Possibly
there are arguments which would be used to refute
me in this particular case. All I want to know is where
are they? Not only did Dr. Williams pooh-pooh the
idea of selling the oil because he said oil is a valuable
thing, but he does not have any alternative outlet for
the oil which Shell used to sell, It is true that the
Government of Trinidad and Tobago Trintoc is to
continue to supply Shell to the end of 1975 for
their commitments to the Carifta area, the bauxite
industry in Jamaica and Guyana,
But first of all there is a surplus beyond this,
which I understand Trintoc has not been able to sell,
You will remember the statement made by the Prime
Minister in 1970 that he could not sell the 2,000
barrels that Tesoro was producing, and somebody
suggested, I believe it was Tapia, that he try selling
to Texaco because Texaco had the biggest refinery in
the Commonwealth here in Trinidad.
So, not only is this surplus building up in the
tanks down at Pt, Fortin, but what contracts we
have, come to an end in December 1975. As far as
Jamaica is concerned, Jamaica has just signed an
agreement with Iran for Iran to supply all the oil
that she needs for the next seven years.
Secondly, there are no retail outlets, as far as I
know, owned by the National Petroleum Company
or under the control of Trinidad and Tobago in any
way, anywhere in the Caribbean. So, first of all, the
rationale for the acquisition of Shell in these condi-


tions is false.
For instance, the Prime Minister made, a state-
ment to the Jaycees in which he claimed that the
reason for the acquisition of Shell was to acquire
feedstock for downstream operations. Well, it is
quite possible, in my view, to acquire the feedstock
without acquiring the.Company that produces them.
And in fact, without concomitant arrangements for
markets there will be tremendous difficulties in
selling.

SHELL

Now, I do not want anybody to think that 1
am saying they should not have bought Shell. I L.I
saying they should have bought Shell and e~e :c.ng
else as well. But at the same time it was necessary to
have a plan for, first of all, continuing supplies of
crude for the refinery or refineries, and secondly to
make arrangements for markets at the same time,
So it is not only difficult to sell the stocks, but
it is impossible, and embarrassingly impossible, for
Trinidad and Tobago to come to the aid of its
Caribbean brothers in the energy crisis. And this is
the reason why the Government of Trinidad and
Tobago was put to the humiliating recourse of
talking about World Bank bond issues and Caribbean
Development Bank Special Fund, and so on, to help
our Caribbean brothers. What they wanted was, first
of all, a source of Foreign Exchange because their
balance of payments was in terrible double because
of the cost of fuel, and secondly, they wanted fuel,
which we had here which Amoco was mining almost
within sight of the stranded motorists in Barbados.
So we are put to the humiliating necessity to
talk a lot of waffle about the contributions we are
making to the Caribbean Development Bank and.the
Special Fund and also pointing out how generous we
have been in propping up the gangster Government
of Grenada by helping them to pay their civil
servants, which the Prime Minister was very careful
to say, or he implied, did not include the Police, or
the Special Police or the para Special Police or the
extra-military Police or whatever goes on over there,
but only officials in the Ministry of Health and the
Ministry of Education.
So, we should not only have purchase agree-
ments with the West Indies, but we.should be able
to help them in an emergency, It should be the
National Oil Company that helps them. The Prime
Minister has adduced a very confused explanation of
our not helping the rest of the Caribbean in their
emergency problems. He adduced as a reason for
this, the fact that he did not want to create any area
of competition for the National Oil Retailing Com-
pany here,
Now, frankly I do not understand that. I am
not sufficient of an economist or an accountant to
understand how this would have brought about com-
petition, but in fact my view is that the National Oil
Company ought to have been the agency through
which we should have been able to provide fuel for
our Caribbean brothers after lending them the money
.to pay us for it, or making arrangements to take
payment in various experts of their countries. And
this is, of-course, the emergency solution, but in the
long run it was necessary to have a series of agree-
ment for prolonged markets.


PAGE 10 TAPAIA






,UNDAY JANUARY I, /r 4I


Put







Tourist s







on the







negative







list


CF. Ayre

PROBABLY the most
sigr- 'ant statement to
co:m'e out of last week's
Caracas conference on
Caribbean tourism, and
certainly the most drama-
tic, was made by Vene-
zuelan President Carlos
Andres Perez, who in his
keynote speech forth-
rightly set out his
country's claim to the
Caribbean as a Venezue-
lan sphere of influence.
Perez had some tough
words for the Americans and
other non-regional powers -
he told the delegates in the
American-owned Hotel Tama-
naco of the need to "national-
ize tourism" but he was
also very explicit about what
Venezuela's new strength
would mean for the rest of
the Caribbean:
"We will endeavour to
demonstrate the need for
lifting all barriers that have
been- created among our
peoples by the manipulation
of our interests. We will take
the flag, clutching it together
with the other Spanish.
speaking peoples of the
Caribbean, for accepting the
responsibility of making the
Spanish language a permanent
study language among all
English-Dutch and French-
speaking peoples, in order
that, someday, together with
the languages they have as a
legacy of colonial times,
Spanish mav be incorporated
as an official language,
because we cannot allow the
old Biblical curse to serve
anew in the Seventies to
divide our Latin American
peoples,"
What did all this have to
do with tourism? Not much,
but the conference pro.
vided Perez with the rare
opportunity of speaking to
an audience of governmental
and other delegates from all
over the Caribbean and he


couldn't be expected to pass
it up; he did, in keeping with
The theme of the conference,
refer to tourism as "the instru-
ment which integrates our
nations."
The Venezuelans backed
up Perez's words with an
elaborate promotional effort,
treating the delegates to an
exhausting round of recep-
tions, including one at the
Presidential Palace, and a bar-
rage of Venezuelan tourist-
promotion material.
Initial reaction amno;'
West Indinn delegates to t'-.
Venezue ii~wii w\vas
hesitant but not unfavotur-
able. "Many of the states in
the region," said one, "are
simply not in a position to
refuse the kind of financial
help Venezuela is prepared
to provide."

DESTINATIONS

Competing with the Vene-
zuelans in their concern for
the welfare of the region
were the airline executives,
cruise-ship operators, hotel
owners, charter-tour pro-
moters, bankers and market
research consultants involved
in the tourist industry, most
of them coming from the
United States, Britain and
Canada.
Their concern came out
most clearly in a debate on
the possible lifting of rules
against inclusive-tour charters
ITCs by the U.S. Civil Aero-
nautics Board, which would
meant that groups of tourists
would come down to the
Caribbean at cheap rates
from the United States, as
they already do from
Canada,
Ralph Ditano, the repre-
sentative of the American
charter interests, said that
the introduction of ITCs
would bring more tourists,
and that would be a Good
Thing for the region,

Cyrus Collins of American
Airlines said that it would
result in a reduction of sche-
duled airline services, and


that would be a Bad Thing
for the region.
Anders Wiberg of the
Bahamas Hotel Association
was concerned about the
"quality" of tourist (i.e. how
much money he spends) that
ITCs would bring to the
region: "You have Mr. and
Mrs. Smith who have been
coming for ten years and then
they arrive on the same day
as an ITC from Canada and
that's thelast you see of Mr.
and Mrs. Smith."
Dennis Gill, president of
Suntours-Canada, told the
delegates about all the good
things charters had already
done for the region.
Through all of this, the
government representatives
sat silent until finally John
Arrindell of the Antigua
delegation suggested that the
governments of the region,
speaking for their respective
peoples, might also have
something to say about what
was good for them. He wasn't
sure what this would be
though,
The picture of the state
of the tourist industry in
the Caribbean that emerged
from the conference was not
on the whole a bright one,
Hotels in many places are
losing money, some to the
point of bankruptcy, and
there were repeated calls for
increased financial aid from
governments and regional or-
ganizations to deal with this
situation.
There were also several
suggestions that the Carib-
bean was not doing all it
could to sustain its image as
a tourist paradise (or at least
a hotel-operator paradise).
Charles Bell of Hilton
International took his text
from some profit statistics in
which Hilton hotels in the
Caribbean showed up un-
favourably when compared
with Hilton hotels in Canada
and South America.
Fred Ruoff of the same
organization also expressed
some dissatisfaction with the
way the Caribbean is market


ing itself as a tourist destina-
tion. (For Ruoff, there are
no places, only "destina-
tions.")
He says things such as
"the ground experience be-
comes a culmination of the
total product that is placed
before the consumer" or
"sightseeing as an infrastruc-
ture item in Venezuela is
outstandingly strong."

But the most detailed
exposition of the deficiencies
of the Caribbean came from
one John Duncan, III, execu-
tive vice-president (sales) of
Robinsons Inc. of Orlando,
Florida, a company that des-
cribes itself as providing
"marketing services to the
travel/hospitality/leisure in-
dustries".

GEOGRAPHIES

It appears that Robinsons,
in collaboration with Cornell
University, was engaged by
the Organization of American
States to do a survey of
travel agents in the U.S. It
was the preliminary results
of this survey, which will be
ready for publication in two
months or so, that Duncan
presented to the conference.
Armed with graphs and
charts, all cross-tabulated
and colour-coded, to which
he pointed authoritatively
with the inevitable long
stick, and burning with a
belief in the power of modern
statistical methods (to one
Antiguan delegate he was
reminiscent of an encyclo-
pedia salesman), Duncan ex-
plained what American
travel agents thought and
what they thought their
clients thought of various
tourist geographies (what was
a "destination" for Ruoff
was a "geography" for
Duncan),
It turned out that the
geography that fared best
according to the criteria used
in the survey was, believe it
or not, Australasia (Australia


and New Zealand); the Carib-
bean was fourth, behind
Western Europe and Mexico
The Caribbean got passably
high marks for attractiveness
cleanliness and activity, but
fell down in safety and
particularly friendliness.
When the survey asked
what the travel agents thought
their clients wanted in a vaca-
tion, the dominant answers
were along the lines of good
hotel accommodations, reli-
able hotel reservations, low
cost.

Five of the top ten criteria
were related, in Duncan's
words, "to man's fear of the
unknown"; travel agents want
to give their clients vacations
that are orderly, predictable
and safe.
If a travel agent recom-
mends to Mrs. Jones that she
got to Grenada on her vaca-
tion and when she gets there
there is a general strike and
twenty thousand people are
in the streets, then next time
Mrs. Jones may go not only
to another country but also
to another travel agent.
Duncan's presentation was
so well received that Peter
Morgan, the Barbadian Min-
ister of tourism and chairman
of the conference, asked him
to do it all over again the next
day for those delegates who
had missed it the first'time.
Duncan was only too happy
to oblige.
Both Duncan and the
other tourist-industry spokes-
men considered the social
problems that surround tour-
ism in the context of Carib-
bean residents causing pro-
blems for tourists, that
tourists cause problems for
residents never entered their
heads.
While all this was going
on, some of the more
thoughtful delegates those
from church or ecology
groups, a couple of academ-
ics, journalists, some civil

Continued on Back Page.


I1 r It A i JtL, It A






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Study of !Ian,
162, East 78th SIr
NqE1 YORK, 1'Y IC
Ph. Lehigh 5 -
U.S. A. /


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Carib conference runs


into opposition


Tapia Correspondent

A CONFERENCE of
academi- held in Puerto
Rico from the 8th to the
11th of January this year
was the object of severe
criticism and boycott
attempts on the part of
leftist intellectuals.
The conference, with the
theme "Patterns of Change
in the Contemporary Carib-
bean", was held at the Hotel
Borinquen, San Juan. It was
organised by the Caribbean
Studies Association, whose
founder and first President,
Roland I. Perusse, is an
American professor of Politi-
cal Science at the Inter-
American University in
Puerto Rico.


Even before the date of
its commencement, the pro-
independence scholars called
a boycott of the conference,
on the grounds that:
*'Puerto Rico, as a virtual
American colony since
the beginning of the
century, was an in-
appropriate venue for the
conference.
The majority of parti-
cipants were North Ameri-
can scholars, and that
"foreign interpreters of
the Caribbean experience"
were not needed or
wanted by native intellec-
tuals in the struggle for
liberation of the region.
Revolutionary Cuba
was not represented at the
conference.


The event would there-
fore be no more than a
sounding-board for de-
fenders of American im-
perialism in Puerto Rico.
Among the signatories of
documents protesting against
Conference were Nicolas
Guillen, Cuban poet and
President of the Cuban
National Union of Writers
and Artists, Manuel Mal-
donado Denis, Professor of
Political Science of the
University of Puerto Rico,
and Dr. Cheddi Jagan.
Organiser of the protest
movement at the site of the
Conference itself was Archie
Singham, Professor of Politi-
cal Science at Howard Uni-
versity.
in spite of the withdrawal
of several scholars, the con-
ference took place, with
panels on economic,political,
literary, historical, linguistic
and sociological themes.
At the end of the first
day's work, participants
gathering to hear an address
by Senator Ruben Berrios,
President of the Puerto Rican
Independence Party, were
disappointed. by Berrios'
failure to appear.
Writing to Perusse the
next day, Berrios expressed
his concurrence with the
views of the conference's
opponents, and invited all
and sundry to hear him speak
at another location on
January 10th.
Although a "counter-
conference" organised on
January 9th by Singham and
his associates was not a great
success,. Berrios' speech the
following day was heard by a
large crowd of conference


Ruben Berrios President of the Puerto Rican Independence party


From Page 11

servants from ministries of
tourism and Jack Gold, the
unconventional president of
the Caribbean Hotel Associa-
tion were discussing the
relationship between tourism
and the agricultural and
manufacturing industries.
They agreed that the
tourist industry in the Carib.
bean as it had developed was
a reflection of the region's
colonial past, that not enough
of the economic fruits of
tourism had remained within
the region, and that one way
of ensuring that more bene-
fit accrued to the region in
the future was to insist that


more hotels be locally owned
and that more of the agricul-
tural and manufactured goods
used by hotels be local.
There were even some
rather general recommend.
tions worked out on how
this might be done, and these
were presented to the con-
ference in the form of
resolutions.
That the resolutions were
passed without opposition and
without discussion was a
reflection of their innocuous
nature, of the circumstance
that they were brought to
the floor late in the after-
noon of the last day with
everybody impatient to break


up, and of the fact that it
did not matter very much
what the conference resolved
and what it did not resolve.
The most interesting of
these resolutions suggested
"that CTRC (the Caribbean
Tourism Research Centre,
which sponsored the coll-
ference) should proceed to
compile a list of agricultural
and manufactured goods in
common use in hotels the
importing of which may be
restricted in the interest of
regional import substitution."
The proposition that
tourists themselves might be
an appropriate item to head
such a list was not discussed.


participants.
Berrios, whose party has
virtually disintegrated over
the past few years, largely,
many claim, because of his
own intolerance of opposi-
tion within it, spoke on the
shortcomings of the inde-
pendence movement.
These he claimed were
idealism rhetoricism and
ultra-purism, all of which
increased the separation be-
tween the independence
party and the population
which Puerto Rico's colonial
history had caused.
A consequence of these
faults, he said, was ideological
rigidity, intolerance of diver-
sity and lack of democratic
discussion within the move-
ment.
At the outset of the Inde-
pendence Party's internal
disputes two years ago
Berrios himself was quoted
in an article in the party's
newspaper La Hora as saying
"no se trata con las facciones,
se las aplasta"- "you don't
bargain with factions, you
crush them."
The paper went on to


accuse him of cutting its
subvention in revenge for its
editorial support of his
opponents within the party.
Attacks on the Conference
and its organizers continued
throughout the week's pro-
ceedings in the form of
statements and articles in the
press, particularly a number
of articles in Claridad, the
organ of the Socialist Party
of Puerto Rico, which, inter
alia, accused Perusse of
working for the CIA.
Perusse in fact has a his-
tory of association with U.S.
Military intelligence and
with NATO and has been an
adviser to the administration
of Puerto Rico's former (con-
servative) Governor Luis
Ferre.
Perusse himself has made
no denial of the accusations,
but Caribbean scholars parti-
cipating in the Conference
have stated that the Cuban
scholars were invited to parti-
cipate but did not reply;
that the presence of North
American participants need
be no diawback to a con-
ference on the Caribbean;
and that the opponents of
the Conference had never
themselves succeeded in
organising a wide-ranging
conference of Caribbean
scholars, even one as in-
effectual as this one finally
turned out to be.


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