JAMAICA: REQUEST TO RECONSIDER COMMERCIAL SERVICE

UNCLAS SECTION 01 OF 02 KINGSTON 000640

SIPDIS

SIPDIS

COMMERCE FOR A/S HERNANDEZ FROM CHARGE D'AFFAIRES WEHRLI
STATE FOR WHA/CAR, WHA/EEB
SANTO DOMINGO FOR SCO MCGEE

E.O. 12958: N/A
TAGS: AMGT APER ECON EINT EINV ETRD JM XL
SUBJECT: JAMAICA: REQUEST TO RECONSIDER COMMERCIAL SERVICE
CLOSURE IN KINGSTON

REF: A. PORT OF SPAIN 435

B. BRIDGETOWN 499


1. Summary: (SBU) Post would like to add its voice to the
chorus from the English-speaking Caribbean (refs. A,B)
respectfully requesting that the Commercial Service
reconsider its proposal to close its office in Kingston,
Jamaica. Our concerns mirror those from our regional
counterparts:

-- That there are indications that the economy of Jamaica is
poised for improved growth over the near and medium term;

-- That the Prime Minister has commented to the Ambassador
that there is a "growing perception of neglect" of the
Caribbean from the USG; and,

-- That such neglect plays to the recent efforts of Venezuela
and China as they seek to expand their influence in the
Caribbean.

End summary.

Turning a Corner?
--------------


2. (U) Notwithstanding a long period of economic atrophy,
there are signs that the Jamaican economy may be ready to
turn a corner. Some analysts project that GDP growth could
reach six percent this year. They also argue that the anemic
figures registered in recent years reflect the inability of
current statistical models to fully capture the strong
tourism sector. These economists suggest that Jamaica has,
in fact, been growing at a level more likely between three
and four percent.


3. (U) Bilateral trade between Jamaica and the United States
is worth approximately USD 2.1 billion per year. The U.S.
is, by far, the largest export market for Jamaican products,
and likewise, the U.S. is the source of approximately 44
percent of Jamaican imports.

"Continued Neglect"
--------------


4. (SBU) In a meeting with the Ambassador, Prime Minister
Portia Simpson Miller noted that she, along with other
regional leaders, had sensed a growing "perception of
neglect" by the United States towards the region as a whole.
The Director of the Caribbean Regional Negotiating Machinery,
Ambassador Richard Bernal, recognized that shifts of policy
and influence are normal, and that the region needs to better
adapt to a global economy. Nevertheless, he opined that as
part of the "third border" with the United States, it was
"disappointing" to see how the region had "dropped off of
(our) radar." While the upcoming Caribbean 20/20 Conference
in June may allay some of those feelings, the closure of the
Commercial Service office in Kingston will only give
ammunition to those who see the USG as abandoning the region.

While Chavez and China Grow in Stature
--------------


5. (SBU) Since 2005, Venezuelan President Hugo Chavez has
aggressively courted the GoJ, through PetroCaribe and through
financial assistance for development projects. At the same
time, the Chinese have increased their visibility on the
island, recently completing a new, USD 30 million Embassy, a
USD 12 million "Friendship Center," and through the provision
of a USD 30 million soft loan to build a Greenfield stadium
in Trelawny that was used for the Opening Ceremony of the
Cricket World Cup. Removing the on-the-ground commercial
expertise will only give these countries ) and the
Europeans, who are beginning a strong foray into the tourism
sector ) a further advantage over U.S. companies in terms of
competitiveness and effectiveness.

Comment
--------------


6. (SBU) The Foreign Commercial Service Specialist in
Kingston has developed an extensive network of contacts in
the 13 years that he has been employed. Embassy's single
officer solely dedicated to economic affairs would be
hard-pressed to fulfill even a fraction of the services and
value that the Commercial Specialist provides. We
respectfully request that the Foreign Commercial Service

KINGSTON 00000640 002 OF 002


reconsider its proposal to close the Kingston office. End
comment.
Wehrli