JAMAICA: NEW MINISTER OF FOREIGN AFFAIRS AND FOREIGN TRADE

UNCLAS SECTION 01 OF 02 KINGSTON 001490

SIPDIS

SIPDIS, SENSITIVE

STATE FOR WHA/CAR (JOE TILGHMAN)

E.O. 12958: N/A
TAGS: PREL PGOV ECON EFIN EAID SOCI JM XL
SUBJECT: JAMAICA: NEW MINISTER OF FOREIGN AFFAIRS AND FOREIGN TRADE
SEEKS STRONGER TIES WITH U.S. AND THE PRIVATE SECTOR

REF: (A) KINGSTON 1470 (271625Z SEP 07)

(B) STATE 126663 (101747Z SEP 07)

Summary and Conclusion
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1. (SBU) The new Minister of Foreign Affairs and Foreign Trade
confirms that a growth-oriented, reformist government seeking
stronger ties to both the private sector and to the U.S. now has
taken the helm of the Jamaican ship of state.
End Summary and Conclusion.


2. (U) Ambassador, accompanied by DCM and EmbOff, paid a courtesy
call on Jamaica's new Minister of Foreign Affairs and Foreign Trade,
the Honorable Dr. Kenneth Baugh (bio info reftel A),the morning of
September 28. The newly appointed Minister of State within the
Ministry of Foreign Affairs and Foreign Trade (MFAFT),Dr. Ronald
Robinson, and MFAFT Director of Bilateral Relations Courtenay
Rattray also were present.

A pro-business, growth-oriented government
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3. (U) Ambassador began by noting that Prime Minister (PM) Bruce
Golding's initial public addresses had been impressive. The PM's
emphases on promoting investment, business, and growth, and on
cutting red tape, were encouraging, e.g., his proposal that all
government licenses and permits be issued within 90 days or
otherwise automatically approved. Baugh said the new government had
wanted to establish its pro-business credentials straightaway; it
now was moving quickly, and hoped to keep the momentum going.

Historical perspective
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4. (SBU) Baugh then underscored the importance of the traditional
friendship between Jamaica and the U.S. Ties of immigration and
trade had linked the two countries inextricably; indeed, several new
members of parliament currently faced difficulties because of
allegations they had sworn allegiance to the U.S. (prohibited under
the constitution). Baugh then offered a succinct summary of
Jamaica's political-economic evolution of recent decades, indicating
that:

-- In the 1970s, state control of the economy under PM Michael
Manley of the People's National Party (PNP) had crippled the
country.

-- In the 1980s, the Jamaica Labour Party (JLP) government of PM
Edward Seaga had led the country through a painful, but largely
successful, readjustment process.

-- Under PNP governments since 1992, Jamaica had accumulated
enormous debts and deficits.

-- Now, a new JLP government must once again get the economy going.
The private sector would be the key to opening up opportunities, and
Jamaica would be looking to attract greater U.S. investment.


5. (SBU) Baugh confirmed that the new Minister of Finance, Audley
Shaw, would take the lead in efforts to reduce Jamaica's burdensome
debt (130 percent of GDP). To this end, investment, job creation,
and growth stimulation were essential. Bureaucracy and red tape,
crime, the steep cost of energy, and high interest rates were all
serious impediments to economic growth.


6. (SBU) The Ambassador said she had been impressed that the new
government had hit the ground running, without the benefit of any
honeymoon period. Baugh confirmed that recent weeks had indeed been
hectic. He then recalled the close cooperation between the Reagan
administration and the government of PM Edward Seaga in the 1980s,
when he had been involved in the formulation and implementation of
the Caribbean Basin initiative (CBI). In his view, CBI had been
helpful to the Caribbean, but Jamaica had not taken full advantage
of it. Ambassador noted that the former Director of USAID/Jamaica,
Karen Turner, was now serving in Washington and had responsibility
within USAID for coordination of public and private sector funding;
she hoped to meet with Turner October 10-11.


7. (SBU) Baugh observed that the new government had much to
accomplish in education and social services, and would have to deal
with the consequences of two decades of weak economic growth.
Ambassador offered to assist in arranging appointments for PM
Golding with key contacts during his visit to Washington,
tentatively scheduled for early December, and noted the important
role played by the Jamaican Ambassador in Washington as an advocate
for the country.


KINGSTON 00001490 002 OF 002


UNGA
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8. (U) In response to Ambassador's inquiry, Baugh confirmed he would
travel to New York this weekend and would speak at the U.N. General
Assembly on Tuesday afternoon, October 2.

Hurricane Dean's Devastation
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9. (U) Ambassador noted that, because Hurricane Dean had not struck
the island's north coast or Montego Bay, the outside world seemed to
lack an understanding of the havoc wrought by the storm in southern
Jamaica. Fully 50 percent of the valuable coffee crop had been
lost, and much of the rice and yam crops. Baugh agreed, expressed
thanks for the (modest) USG contribution to the recovery effort to
date, and said Jamaica would be extremely grateful for any further
USG assistance which might be forthcoming.

Follow-up to Conference on Caribbean;
HIV/AIDS Chiefs of Mission Conference
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10. (SBU) DCM noted that the Embassy looked forward to working with
MFAFT and others in the GoJ in following up on agenda items from the
Conference on the Caribbean in Washington (reftel B). Ambassador
briefly outlined plans for the HIV/AIDS Chiefs of Mission Conference
to be hosted by the Embassy October 3-5. Baugh (an accomplished
surgeon, per reftel A) observed that in most first world countries,
HIV/AIDS was largely limited to the homosexual population, while in
Africa and the Caribbean the disease impacted the wider heterosexual
mainstream. In his view, several factors had contributed to the
prevalence of the disease in Jamaica, including poverty and weak
family ties. Baugh concluded by pointing out that, while HIV/AIDS
and other serious problems confronted the country, Jamaica
nevertheless had many good things going for it-including its
longstanding friendship with the U.S.

JOHNSON