VZCZCXRO8652
RR RUEHGR
DE RUEHWN #0574/01 2661819
ZNR UUUUU ZZH
R 221819Z SEP 08
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC 6753
INFO RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS SECTION 01 OF 03 BRIDGETOWN 000574 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL INRB XL
SUBJECT: AMBASSADOR'S FIRST CALL ON NEW GRENADA GOVT 
 
------- 
SUMMARY 
------- 
 
¶1. (U) The Ambassador and Grenada Charge met August 15 with newly 
elected Grenadian Prime Minister Tillman Thomas, Minister for 
Foreign Affairs Peter David, and Opposition Leader Keith Mitchell in 
separate meetings.  Thomas' National Democratic Congress (NDC) beat 
out Mitchell's New National Party (NNP) by a narrow margin in the 
July 8 election to take 11 seats in the lower house of Parliament. 
A reserved Thomas expressed optimism over the future of a newly 
proposed economic and political integration plan being pushed by 
Trinidad PM Manning and St. Vincent PM Gonsalves, but admitted the 
plan lacks detail.  Mitchell, meanwhile, seemed to take impish 
delight in his new freedom to start making political life difficult 
for the new government.  End Summary. 
 
------------------------------------- 
NATIONAL DEMOCRATIC CONGRESS IN POWER 
------------------------------------- 
 
¶2. (SBU) The Ambassador congratulated Prime Minister Tillman Thomas 
and Minister for Foreign Affairs (MFA) Peter David for winning 
re-election and for winning a majority after spending many years in 
opposition.   Both men described governing as a new challenge.  Both 
thanked the United States for its ongoing assistance and especially 
for the hurricane recovery assistance provided after Hurricane Ivan 
devastated the country in 2004.  The Ambassador informed the 
Grenadians that the U.S. Government provided an additional US$50,000 
to the Organization of American States (OAS) for the Grenada 
election observer mission (EOM).  This enabled the OAS to expand the 
number of observers.  Five volunteer observers from Embassy 
Bridgetown also participated.  The National Democratic Congress 
(NDC) was pleased that nearly 30 observers had been able to 
participate and thereby minimize fears of potential fraud. 
 
-------------------- 
REGIONAL INTEGRATION 
-------------------- 
 
¶3. (SBU) David and Thomas spoke enthusiastically about their August 
13-14 trip to Trinidad.  Thomas, David, and Minister for Finance 
Nazim Burke had traveled to Port of Spain together August 13-14 on a 
jet provided by Trinidad's PM Manning.  The purpose of the trip was 
twofold: to meet officially with Prime Minister Manning and to 
discuss moving forward on regional integration with other Eastern 
Caribbean government representatives and CARICOM officials. 
According to Thomas, St. Vincent Prime Minister Gonsalves and PM 
Manning, long-time supporters of regional integration, were worried 
about the lack of progress on CARICOM's planned economic 
integration.  CARICOM experts have been similarly pessimistic. 
Jamaica's current government is not committed to the process, 
according to Thomas, while a number of countries appear reluctant to 
give up sovereignty so soon after achieving independence.  They 
agreed with the Ambassador that the diversity among the Caribbean 
countries over levels of development adds to the challenge. 
 
¶4. (SBU) While CARICOM integration may be stalled, David said 
Organization of Eastern Caribbean States' (OECS) integration is well 
on its way.  With OECS economic union on track for 2009, Thomas said 
the assembled leaders discussed expanding the agenda to include 
Trinidad in a broader economic integration plan to be completed by 
2011, and "some form of political integration" by 2013.  Trinidad 
wants to play a role in an integrated OECS, Thomas noted.  David 
remarked that "many" want Trinidad involved, as long as no other 
agreements are violated.  Thomas noted that Trinidad and Grenada had 
explored integration as early as 1962, though nothing came of it. 
There is a long history of movement between the two countries with 
many Grenadians resident in Trinidad and vice versa.  Trinidadians 
have invested heavily in Grenada over the last twenty to thirty 
years. 
 
¶5. (U) Also discussed in Trinidad was how to resolve the maritime 
boundary disputes Grenada has with Trinidad and Venezuela.  Thomas 
told the Ambassador that his government is eager to drill for oil 
and gas, but no company will consider operating off Grenada's 
islands until the boundary disputes are resolved.  A bi-national 
commission is being set up to resolve the dispute with Trinidad. 
(NOTE: Thomas' NDC government is a latecomer to the pursuit of 
offshore drilling.  Prior to their election, the NDC had  been 
harshly critical of the previous government's attempts to promote 
the search for gas and oil (which admittedly included at least one 
known charlatan in the mix with genuine investors like PetroCanada. 
 
 
---------------------- 
TOURISM AND INVESTMENT 
---------------------- 
 
¶6. (U) Thomas and David mentioned that lack of airlift continues to 
hamper plans for expansion of Grenada's tourism industry and efforts 
to attract foreign investment.  Grenada is interested in promoting 
regional competition for LIAT, which drove out its only competitor 
 
BRIDGETOWN 00000574  002 OF 003 
 
 
on intra-island routes, Caribbean Star, in 2007.  The GOG wants 
Caribbean Airlines to fly to Grenada, but political support for LIAT 
among other OECS countries (with St. Vincent PM Gonsalves the 
loudest voice) is making that option difficult.  The previous 
government negotiated an agreement with American Airlines for new 
airlift that will begin in November 2008.  It is not clear yet 
whether the daily American Eagle flights to San Juan will continue 
if the American Airlines jets start flying.  If American Eagle drops 
out, or reduces its flights, there would be a net loss in the number 
of flights from Grenada to the United States. 
 
¶7. (U) The Ambassador asked about investment in Grenada, noting the 
tremendous contributions made to the local community by St. George's 
University Chancellor Charles Modica over the last 30 years as well 
as recent large investments by investors such as British developer 
Peter DeSavery.  Grenada is beautiful country, offers great 
opportunities for investors, and is perfectly situated for visits to 
the Grenadines, she noted.  David responded that the newly elected 
government wants Grenada's tourism industry to become an engine of 
growth for the country.  Several Barbadian investors are working on 
a Four Seasons hotel in St. George's; Grenadian-descent race car 
driver Louis Hamilton has purchased the Grenada Grand Beach 
Property; there is talk that Hilton is interested; and investors 
from New York and New Jersey are developing a Baccelet Bay property. 
 
 
¶8. (U) Grenada is feeling the pinch of the world-wide economic 
downturn, said David.  Economic downturns are cyclical, the 
Ambassador noted, and by moving ahead now Grenada will position 
itself to take advantage when the economy improves.  The new NDC 
government plans to institute a long-planned streamlining in the 
process required to invest in the country.  The Ambassador commented 
that a USAID program in Antigua helped create  a "one-stop-shop" for 
investors, which has been quite successful.  David pointed out that 
the International Monetary Fund (IMF) complained that there are too 
many concessions to see a regional approach to concessions so that 
poorer countries are not disadvantaged. 
 
-------- 
SECURITY 
-------- 
 
¶9. (SBU) Grenada remains concerned about its lack of an effective 
coast guard in light of the increase regionally in drug flows and 
violence.  The Ambassador reminded her interlocutors that Grenada's 
coast guard remains weak on the personnel side.  She added that the 
previous government identified the same concerns to us.  U.S. 
Southern Command (USSOUTHCOM) held meetings in March and June with 
regional leaders to identify security needs, but we are still 
waiting on the region to provide additional detail on their priority 
needs.  The U.S., she said, looks forward to hearing more specifics 
in the weeks ahead. 
 
----------------- 
OPPOSITION LEADER 
----------------- 
 
¶10. (SBU) The Ambassador congratulated former PM Keith Mitchell on 
winning his seat, noting that he looked very relaxed.  Mitchell 
laughed as he pointed out that he had had thirteen years in 
government - five more than a U.S. president's potential eight 
years.  He said he is in better shape and less stressed out than he 
has been in a long time.  He has been able to reconnect with his 
community as he now has time to walk around and visit with his 
neighbors.  Mitchell said he tells his supporters to remember that 
in a democracy "you are in sometimes and out sometimes".   It may be 
time to pass things on to a younger group of politicians. 
 
¶11. (SBU) The Ambassador commended the progress Grenada made in 
recovering from Hurricanes Ivan (2004) and Emily (2005).  Mitchell 
noted that the country emerged with fewer resources and more 
challenges in a less than ideal international economic climate.  He 
added that Jamaica's Prime Minister Bruce Golding told him it was a 
bad time to be in charge of a government.  The new Grenadian 
government made many promises during the campaign that it may find 
hard to fulfill. 
 
¶12. (SBU) Mitchell admitted the NNP loss was not completely 
unexpected.  Polling going into the election showed 9-10% undecided, 
so he knew the party might lose power.  However, he assured the 
Ambassador that he would continue to work to keep the country calm. 
Mitchell accused the new government of behaving badly, adding that 
Grenada needs a better transition period, closer to the U.S. model. 
 
------- 
COMMENT 
------- 
 
¶13. (SBU) It is evident that the newly elected NDC government wants 
to continue the good working relationship previous 
post-revolutionary governments have had with the United States. 
This includes ministers who, during the 1979-1983 revolutionary 
period, were vocally anti-U.S.  Whether it is because they have 
 
BRIDGETOWN 00000574  003 OF 003 
 
 
mellowed over the years, genuinely changed their political leanings, 
or simply see that antagonizing the U.S. would be counterproductive, 
the NDC government appears to be ready to work with us in all areas 
of concern, including counterterrorism and counternarcotics. 
 
¶14. (SBU) The contrast between former Prime Minister Mitchell and 
current Prime Minister Tillman Thomas could not have been starker. 
Mitchell, gregarious and knowledgeable, expounded on the election 
outcome, U.S. politics, the international economic situation, and 
his passport problems.  Thomas, by contrast, is extremely shy  and 
not comfortable making small talk.  In a region where political 
leaders are known for their communication skills, Thomas is an 
unlikely Prime Minister, who owes his election to his reputation 
forhonesty and hard work. 
 
¶15. (SBU) Minister for Foreign Affairs and Tourism Peter David, by 
contrast, is charming and volatile.   One of his favored modes of 
campaigning is to pop in and "shoot the breeze" in the rum shops of 
his constituency.  David is also one of the several former members 
of the People's Revolutionary Government (PRG) and People's 
Revolutionary Army (PRA) who fled Grenada in 1983 with the collapse 
of the revolution and returned in the late 1990's and early 2000's, 
and  some Grenadians still fear him.  After the 1999 election in 
which the NDC won no seats, a group of original members left the 
party and a group of revolutionary returnees joined the party. 
David did so and won election in 2003.  In his initial meeting with 
the Ambassador, however, David said all the right things about 
wanting to work with the U.S. 
 
OURISMAN