Pol/Econ Round-up January 11-January 28

C O N F I D E N T I A L GEORGETOWN 000003 SENSITIVE NOFORN DEPT FOR WHA/CAR - SEAN WHALEN/WILLARD SMITH AMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA E.O. 12958: DECL: 2020/01/28 TAGS: PREL PGOV ENRG ECON IR GY SUBJECT: Pol/Econ Round-up January 11-January 28 CLASSIFIED BY: Karen L. Williams, Charge d'Affaires, DOS, Exec; REASON: 1.4(B),(D) ¶1. (U) This periodic reporting cable highlights developments in Guyana's politics and economy affecting Department strategic objectives in country and throughout the Caribbean basin. JAGDEO'S FIRST VISIT TO IRAN January 20-21 ¶2. (C) Director General of the Ministry of Foreign Affairs, Ambassador Elizabeth Harper, told PolChief on January 21 that President Bharrat Jagdeo arrived in Tehran, Iran on Wednesday, January 20 for two day meetings with senior Iranian officials including Iranian President Mahmoud Ahmadinejad. Discussions focused on Iranian investment in key Guyanese sectors including agriculture, energy, and mining (septel to follow). The visit concluded with the signing of two Memoranda of Understanding (MOUs) by Foreign Minister Carolyn Rodrigues-Birkett and her Iranian counterpart Manouchehr Mottaki. Foreign Minister Rodrigues-Birkett told Charge on January 28 that media reports claiming Jagdeo was "bashing the U.S." in Iran or that Guyana plans to "go nuclear" are baseless. CANEFIELDS FOR HOUSES SCHEME RAISES CONCERNS ¶3. (C) On January 11, several opposition members of Parliament walked out over Minister of Housing and Water Irfaan Ali's supplementary budget proposal to transfer GYD4 billion (USD20 million) to financially troubled Guyana Sugar Corporation (GUYSUCO) in exchange for land along the East Coast Demerara intended for 17,000 new housing developments. During the opposition's absence, the PPP majority passed this measure. Opposition party members including PNC-R Chairman Robert Corbin called on the Auditor General Deodat Sharma to investigate over alleged concerns that the new allocation would be doled out to politically favored contractors. Opposition contacts told Emboffs that subsidizing a state-owned enterprise politically associated with the PPP's base is aimed at distributing benefits to a mainly Indo-Guyanese constituency. Agriculture Minister Robert Persaud told Econoff on January 20 that the state-owned enterprise hopes to raise GYD40 billion (USD200 million) from such sales. GUYANA COLLECTS USD1.2 MILLION FOR HAITI ¶4. (U) Local media reported that a "relief fund for Haiti" drive spearheaded by Minister of Human Services and Social Security Priya Manikchand has now collected over USD1.2 million. The first shipment of relief materials donated to the National Haitian Disaster Relief Committee was shipped on the evening of January 26. Another shipment of containers is expected to leave for Haiti on Friday, January 29. Local media reported concerns over accountability of relief funds for Haiti. GOLD INDUSTRY CHAFES AT PROPOSED REGULATIONS ¶5. (SBU) Artisanal gold miners reacted strongly to a Jagdeo Administration proposal that would require the Guyana Forestry Commission (GFC) to review all mining permit applications made to the Guyana Geology and Mines Commission (GGMC) and compel artisanal miners to submit permit applications six months in advance of mining operations. This requirement would effectively give the GFC veto power over any new mining in forested areas. Director of the Office of Climate Change Shyam Nokta told Econoff on January 21 that current regulations do not grant sufficient authority to GoG bodies and inserting a six-month lag between prospecting and commercial extracting meshes with Jagdeo's Low Carbon Development Strategy to reduce emissions from deforestation and degradation. He told Econoff that the new regulations would increase enforcement activities against several thousand Brazilian miners estimated to be illegally operating in Guyana. HORNING