UNCLAS KINGSTON 000638

SIPDIS, SENSITIVE

STATE FOR WHA/CAR (JOSLYN MACK-WILSON)

TREASURY FOR INTERNATIONAL AFFAIRS (ERIN NEPHEW)

E.O. 12958: N/A
TAGS: PREL PGOV ECON EFIN ETRD EAID IMF IBRD IDB TRSY
IRS, AID, G-20, JM, XL
SUBJECT: JAMAICA: FINANCE MINISTER INTERESTED IN BILATERAL
ASSITANCE, GRATEFUL FOR TREASURY TAX COMPLIANCE TEAMS

REF: (A) KINGSTON 634 (251851Z AUG 09)(NOTAL)
(B) KINGSTON 614 (181901Z AUG 09)
(C) KINGSTON 405 (221146Z MAY 09)(NOTAL)
(D) KINGSTON 601 (131322Z AUG 09)(NOTAL)

1.(SBU) Charge, accompanied by EmbOff, paid an introductory courtesy
call on Minister of Finance and the Public Service Audley Shaw on
the morning of August 26; the Ministry's Special Advisor Dr. Wayne
Henry also participated. Shaw began by underscoring the loss of USD
1.3 billion in foreign exchange earnings suffered by Jamaica over
the last year, with sharp declines in remittances and bauxite and
marginal declines in tourism. 1,500-2,000 jobs had been lost in the
bauxite sector, and three major plants closed (reftels A-C).

2.(SBU) Shaw noted that the U.S. and Canada consistently had
encouraged highly-indebted middle income countries to approach the
World Bank, IMF, and IDB to seek assistance in weathering the
current economic storm. However, he asserted, Jamaica also would
benefit from direct bilateral assistance. The Minister then
recalled the island state's economic crisis of the 1980s, when
President Reagan had assisted by making large purchases of aluminum,
extending concessionary bilateral loans, and undertaking the
Caribbean Basin Initiative (CBI). Charge responded by noting that,
as President Obama had made clear in Trinidad in April, the
Caribbean was a region of great importance to the U.S. From the
U.S. perspective, assistance through the international financial
institutions generally was preferable to bilateral assistance,
particularly as the U.S. also currently was experiencing some
economic difficulties.

3.(SBU) Shaw noted that Dr. Wesley Hughes, who soon would become
Financial Secretary (reftel D), had attended the Pittsburg Summit
Outreach Meeting in Miami on August 25; he looked forward to
receiving Hughes's report. (Note: Shaw previously had mentioned
that Canada's Prime Minister Harper had approached the White House
regarding the possible attendance of Jamaican Prime Minister Bruce
Golding at the G-20 Summit. End Note.)

4.(SBU) Shaw then expressed appreciation for USAID's various
programs in Jamaica, to include their funding of the U.S. Treasury's
tax compliance team visits; improving the country's "dismal" tax
system was a high priority. In response to Charge's query, Shaw
described this program as "relatively successful," but added that,
because the current recession inevitably had reduced revenues, it
was difficult to measure. Charge noted that programs of this kind
were a practical way in which the Embassy could assist Jamaica, and
asked Shaw to explore other areas in which we might offer similar
assistance. The Minister said he would consider other possible
areas.
PARNELL