GRENADA WEEKLY ACTIVITY REPORT FOR OCTOBER 19 - 25, 2008

UNCLAS GRENADA 000138

SIPDIS

E.O. 12958: N/A
TAGS: EFIN EAID ETRD ENRG GJ XL
SUBJECT: GRENADA WEEKLY ACTIVITY REPORT FOR OCTOBER 19 - 25, 2008


1. Embassy Grenada's weekly report (GWAR) provides a little
detail about events of interest that do not merit longer
reporting at this time.


2. Begin GWAR text:

a. Caribbean Financial Action Task Force visits Grenada
According to the Prime Minister's Office, Prime Minister Tillman
Thomas told visiting members of the Caribbean Financial Action
Task Force (CFATF) that his government is determined to restore
Grenada's image in the international financial arena. The Prime
Minister said the GOG is determined to take advantage of the
benefits offered by the offshore sector through legitimate
businesses.

The CFATF team is in Grenada to conduct the country's Mutual
Evaluation Review which will determine Grenada's compliance with
the regime for Anti-Money Laundering and Combating terrorism as
mandated by the FATF.

b. Grenada and India Sign Agreement
The Governments of Grenada (GOG) and India (GOI) signed an
agreement in which the GOI agrees to provide to the GOG a grant
of US$900,000 to be used to set up an information and
communications technology center for excellence and innovations
(CEI) in Grenada. The Minister for Foreign Affairs said that the
CEI will have a state of the art data center, and an IT center
and virtual reality lab. He added that the GOG recognizes ICT
training as one of the key areas in developing skilled labor
force and knowledge based society.

c. Grenada Signs EPA
Grenada and other member states of the Caribbean Forum of
African Caribbean and Pacific (ACP) states (CARIFORUM) and the
European Community (EC) signed the CARIFORUM-European Community
Economic Partnership Agreement in Barbados this month. This new
WTO-compatible trade agreement, which was initialed on December
16 2007, is expected to stimulate the sustainable development of
CARIFORUM economies by helping CARIFORUM export more and thereby
increase business opportunities, employment, and economic
growth. Only Haiti and Guyana did not sign at the meeting.

d. Gasoline prices go up in Grenada
Gasoline prices in Grenada jumped several dollars to just over
US$6.00. The GOG controls the price of gasoline at the pump
using a complex mechanism that must be reviewed and adjusted
every eight weeks. However, the price had not been changed
since May 2008, leading to increased debt to the gasoline
suppliers that must now be paid to prevent them pulling out of
the market. The government found itself in the uncomfortable
position of increasing prices at a time when the cost of oil is
falling and having to explain why to a disgruntled public. The
cost of cooking gas was not increased.

MCISAAC