Identifier
Created
Classification
Origin
05KINGSTON2682
2005-12-09 19:08:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kingston
Cable title:  

KINGSTON POL/ECON ROUNDUP: NOVEMBER 26 - DECEMBER

Tags:  PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM 
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UNCLAS SECTION 01 OF 02 KINGSTON 002682 

SIPDIS

SENSITIVE

STATE FOR WHA/CAR (BENT) AND WHA/PDA
STATE ALSO FOR INL/LP (BOZZOLO),EB/TPP, AND EB/IFD
STATE ALSO DOE CA/OCS/ACS/WHA (RUTH BRANSON)
STATE PASS OPIC FOR TABERNAKI
CUSTOMS MIAMI FOR LOWEN AND MAHABIR
SANTO DOMINGO FOR FCS, FAS, AND LEGATT
STATE PASS USTR FOR A. GASH-DURKIN
DOJ FOR OPDAT/R LIPMAN
TREASURY FOR LAMONICA

E.O. 12958: N/A
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: NOVEMBER 26 - DECEMBER
9, 2005

Ref: A. KINGSTON 02680

UNCLAS SECTION 01 OF 02 KINGSTON 002682

SIPDIS

SENSITIVE

STATE FOR WHA/CAR (BENT) AND WHA/PDA
STATE ALSO FOR INL/LP (BOZZOLO),EB/TPP, AND EB/IFD
STATE ALSO DOE CA/OCS/ACS/WHA (RUTH BRANSON)
STATE PASS OPIC FOR TABERNAKI
CUSTOMS MIAMI FOR LOWEN AND MAHABIR
SANTO DOMINGO FOR FCS, FAS, AND LEGATT
STATE PASS USTR FOR A. GASH-DURKIN
DOJ FOR OPDAT/R LIPMAN
TREASURY FOR LAMONICA

E.O. 12958: N/A
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: NOVEMBER 26 - DECEMBER
9, 2005

Ref: A. KINGSTON 02680


1. This week's topics:

-- JLP Holds Annual Conference
-- Poverty Cut in Half
-- GOJ Increases Social Benefits
-- Brazilians to Invest in Sugar Industry
-- Chinese Government to Finance Mega Projects
-- Tourist Arrivals to Surge
-- Police Officers on Trial
-- Crime Statistics

--------------
JLP Holds Annual Conference
--------------


2. The opposition Jamaica Labour Party (JLP) held its
annual conference in Kingston December 3-4, with leader
Bruce Golding urging delegates to be election-ready by March

2006. Golding said 377,000 voters remain unverified and is
concerned about the new voters' list due by the end of
December, asserting it could be reduced by 250,000 from its
current 1.4 million names. Former JLP Prime Minister Edward
Seaga was reportedly absent from the conference. Also
absent from a portion of the conference, was controversial
Member of Parliament Olivia "Babsy" Grange.

--------------
Poverty Cut in Half
--------------


3. Data released by the Planning Institute of Jamaica and
the Statistical Institute of Jamaica show that poverty has
declined by 50 percent over the last 13 years. The rate of
poverty moved from a high of 35.2 percent in 1992 to 16.9
percent in 2004. This dramatic reduction in poverty has
been attributed to GOJ expenditures of JMD 42 billion (USD
656 million) on social programs during the period. The
mushrooming of the informal sector, the activities of the
National Poverty Eradication Program and other GOJ polices

also contributed to the contraction. While not discussed in
the report, the robust growth in remittances from Jamaicans
oversees was likely a factor in the reduction of poverty.


--------------
GOJ Increases Social Benefits
--------------


4. Jamaican pensioners are expected to realize a
significant increase in benefits effective July 1, 2005
(note: the pension increase was announced on December 5,
2005 but will be granted retroactively). The annual cost of
living adjustment will range from a high of JMD 14,400 (USD
219) per annum for pensioners at the lowest end to JMD 6,000
(USD 94) per annum for those receiving over JMD 75,000 (USD
1,172) a month. The increase, expected to benefit 17,000
pensioners at a cost of JMD 250 million (USD 3.9 million),
will be extended to the spouse and dependents of deceased
officers. The GOJ is also set to increase the National
Minimum Wage in January 2006. The National Minimum Wage of
JMD 2,400 (USD 38) will be raised between ten and 25
percent.

--------------
Brazilians to Invest in Sugar Industry
--------------


5. The medium-sized Brazilian company Aracatu, with
interest in sugar, ethanol and alcohol, is currently
negotiating with GOJ officials and sugar industry
representatives to acquire a 70 percent interest in the
industry through the purchase of the state-owned Sugar
Company of Jamaica. Aracatua's strategic objectives are
centered on diversifying the product mix to include raw
sugar, ethanol and alcohol. Jamaica's sugar industry, which
benefits consistently from substantial government financing,
will collapse under the 39 percent cut in the EU reference
price without increased efficiency and a reduction in
production costs from the current USD 0.25 per pound to USD
0.05 per pound.

--------------
Chinese Government to Finance Mega Projects
--------------


6. The GOJ is set to receive funding to the tune of USD 42
million from the Chinese government to build a convention
center in Montego Bay (REF A). The Complant Group, which is
currently building a World Cup 2007 cricket stadium, is
slated to build the 75,00 square-foot convention center.
The GOJ turned to the Chinese, who are already providing USD
30 million for the cricket stadium, after it failed to
secure funding from the Mexican bank, BANCOMEX. By building
the convention center, Jamaica hopes to become a major
player in the meetings and conventions sector of the tourism
market.

--------------
Tourist Arrivals to Surge
--------------


7. Jamaican hoteliers are anticipating a surge in tourist
arrivals to the island following the hurricane damage to
Cancun, Mexico. So buoyed are hoteliers about the prospects
that hotel mogul Gordon "Butch" Stewart of the Sandals Group
has predicted the best ever winter season for Jamaica.
Recent figures from the Jamaica Tourist Board show that
arrivals increased by 24 percent in November. Figures show
a record number of tourists from the southern U.S, likely
due to the entry of Spirit Airlines into Jamaica.

--------------
Police Officers on Trial
--------------


8. The high profile trial of Senior Superintendent of
Police Reneto Adams and five other members of the disbanded
Crime Management Unit is about to come to a close. The
officers are charged with the extra-judicial killing of four
civilians in Crawle, a deep rural Clarendon community on May
7, 2003. Lawyers will begin to make closing submissions
today and Chief Justice Lensley Wolfe has requested that
this trial be completed by December 16. The police allege
that they went to Crawle in search for Bashington "Chen
Chen" Douglas, who was wanted for a number of crimes.
According to the police, individuals from a house in Crawle
fired on them and when the fire was returned four people -
Angella Richards, Lewina Thompson, Kirk Gordon and Matthew
Jones - were found dead in the house.

--------------
Crime Statistics
--------------


9. Based on statistics provided by the Jamaica
Constabulary Force (JCF),the country experienced 1,522
murders between January 1 and December 4, 2005. The
previous record for murders reported in Jamaica was 1,469 in

2004. Post's Law Enforcement Development Advisor stated
that the JCF attributes most of the homicides to gang
battles over turf and fighting over scarce resources.