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