This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 KINGSTON 000045 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA/CAR (BENT) AND WHA/PDA 
STATE ALSO FOR INL/LP (BOZZOLO), EB/TPP, AND EB/IFD 
STATE ALSO DOE CA/OCS/ACS/WHA (RUTH BRANSON) 
STATE PASS OPIC FOR TABERNAKI 
CUSTOMS MIAMI FOR LOWEN AND MAHABIR 
SANTO DOMINGO FOR FCS, FAS, AND LEGATT 
STATE PASS USTR FOR A. GASH-DURKIN 
DOJ FOR OPDAT/R LIPMAN 
TREASURY FOR LAMONICA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: DECEMBER 23, 2005 - 
JANUARY 6, 2006 
 
Ref: 
 
¶1.   This week's topics: 
 
-- Chinese "Aid" Pipeline Deepens 
-- Venezuelan "Aid" Also Deepens 
-- Fiscal Deficit Widens 
-- Remittances Remain Buoyant 
-- Income Tax Threshold to Increase 
-- International Arrests 
-- Jamaica - The World's Murder Capital 
 
 
 
 
------------------------------ 
Chinese "Aid" Pipeline Deepens 
------------------------------ 
 
¶2.  (U) The Chinese government continues to extend its 
sphere of influence in Jamaica with the grant of USD 2.5 
million (JMD 160 million) worth of pipes and equipment to 
the National Water Commission (NWC).  This shipment 
represents the first batch of pipes and equipment from China 
under the Jamaican Water Systems Rehabilitation and 
Extension Project.  Another shipment is expected later this 
month and the remaining shipments will be completed by 
August 2006, bringing the total value of the aid package to 
USD 12.5 million (JMD 800 million).  The pipes will be used 
in several NWC developments and should boost capacity to 
meet the GOJ'S objective of providing 85 percent of the 
island with potable water by 2010. 
 
----------------------------- 
Venezuelan "Aid" Also Deepens 
----------------------------- 
 
¶3.  (SBU) The Venezuelan government has agreed to provide 
the GOJ with up to USD 300 million (JMD 19.2 billion) in 
concessionary financing to jump-start the Ocho Rios leg of 
the ambitious Highway 2000 project, as well as to finance 
island-wide road repairs following a series of hurricanes 
and heavy rainfall.  While details have not been made 
public, sources suggest that the idea of the loan was first 
discussed between Patterson and Chavez in August 2005, when 
Chavez came to Jamaica to sign the PetroCaribe Oil Accord. 
Sources also suggest that the deal will be structured to 
ensure that it does not impact the country's debt ratios. 
Consequently, Planning Institute of Jamaica officials (who 
are responsible for external cooperation) told emboff that 
Highway 2000 officials were directly negotiating the 
technical aspects of the loan.  Post will report further as 
details become available. 
 
--------------------- 
Fiscal Deficit Widens 
--------------------- 
 
¶4.  (U) Central Government's fiscal operations generated a 
deficit of USD 39.1 million (JMD 2.5 billion) during 
November, bringing the fiscal deficit for the first eight 
months of the year to USD 391 million (JMD 25 billion). 
This development means that the GOJ will almost certainly 
fail to meet its balanced budget objective by the end of the 
2005/06 fiscal year, which ends March 31.  The deviation in 
the deficit continues to be influenced by lackluster 
revenues, which are running USD 21.1 million (JMD 1.35 
billion) behind projections.  The moribund revenue 
performance has forced the GOJ to continue on its 
expenditure restraint program, resulting in savings of USD 
88 million (JMD 5.6 billion). 
 
-------------------------- 
Remittances Remain Buoyant 
-------------------------- 
 
¶5.  (U) Remittances have soared by almost 20 percent to USD 
1.43 billion for the first nine months of 2005, 
consolidating its position as Jamaica's single largest 
source of foreign exchange.  If remittances continue to grow 
at the same rate it could reach the USD 2 billion mark by 
the end of the fiscal year.  The record growth in 
remittances occurred despite a number of natural disasters 
in U.S. areas which are highly populated by Jamaicans, 
reinforcing the fact that remittance is one of the most 
resilient forms of income.  The gap between remittance and 
tourism earnings is expected to widen since tourism has been 
adversely affected by hurricanes Dennis and Emily. 
 
-------------------------------- 
Income Tax Threshold to Increase 
-------------------------------- 
 
¶6.  (U) Effective January 1, the income tax threshold (the 
income level at which a person must begin to pay income 
taxes) has increased to USD 3,022 (JMD 193,440) from USD 
2,642 (JMD 169,104).  This is the second increase in the 
threshold in FY 2005/2006.  The two increases are expected 
to result in a loss in revenue of approximately USD 21.9 
million (JMD 1.4 billion). 
 
--------------------- 
International Arrests 
--------------------- 
 
¶7.  (U) On January 04, members of the Jamaican Fugitive 
Apprehension Team arrested Tyrone Morrison without incident. 
Morrison is wanted in the Western District of Virginia for 
Conspiracy and Distribution of Cocaine based on a 2003 
indictment.  Morrison is currently being detained pending 
extradition proceedings.  In April 2004, an extradition 
request was initiated with the DOJ Office of International 
Affairs. 
 
¶8.  (U) On December 29, 2005, members of the Jamaican 
Fugitive Apprehension Team and USMS Jamaica Field Office 
arrested Alex Anderson upon his arrival in Jamaica from 
Canada.  Anderson is wanted in Queens County, New York for 
kidnapping, robbery, burglary, and false imprisonment based 
on a 2002 indictment.  Anderson is currently being detained 
pending extradition proceedings. 
 
 
------------------------------------ 
Jamaica - The World's Murder Capital 
------------------------------------ 
 
¶9.  (U) The year 2005 did not bring a respite in the number 
of murders in Jamaica.  There was an increase of thirteen 
percent over 2004.  According to the Jamaica Constabulary 
Force (JCF) Statistical Department, 1,669 murders took place 
in 2005 compared to 1,471 in 2004.  This number may increase 
slightly as the final statistics for 2005 will not be 
released for two more weeks.  In addition, twenty children 
were killed as opposed to 16 in 2004 and seven in 2003. 
 
¶10.  (U) The number of females murdered increased by 43 with 
a total of 184 being killed in 2005.  Over all, the JCF is 
reporting a decrease of four percent for major crimes. 
However, this decrease may be due to underreporting by the 
police force as well as by citizens fearful of possible 
repercussions.  Additionally, under current reporting 
practices, a victim is categorized under the most egregious 
crime committed against him/her; therefore, a person who is 
raped and then murdered would be counted only as an 
additional murder but not an additional rape. 
 
VALDEZ