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Viewing cable 09KINGSTON638, JAMAICA: FINANCE MINISTER INTERESTED IN BILATERAL

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Reference ID Created Released Classification Origin
09KINGSTON638 2009-08-26 19:15 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kingston
VZCZCXRO1848
PP RUEHGR
DE RUEHKG #0638 2381915
ZNR UUUUU ZZH
P 261915Z AUG 09
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC PRIORITY 7988
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCNCOM/EC CARICOM COLLECTIVE
RUEHLO/AMEMBASSY LONDON 0611
RUEHOT/AMEMBASSY OTTAWA 2420
RUMIAAA/CDR USSOUTHCOM MIAMI FL
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