VZCZCXRO4530
RR RUEHGR
DE RUEHKG #0939/01 1351142
ZNR UUUUU ZZH
R 151142Z MAY 06
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 2801
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHAO/AMCONSUL CURACAO 0165
RHEFDIA/DIA WASHDC
RUEABND/DEA HQS WASHINGTON DC
RUMIAAA/CDR USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 03 KINGSTON 000939 
 
SIPDIS 
 
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 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EFIN ECON EINV PHUM ELAB KHIV JM
SUBJECT: KINGSTON POL/ECON ROUNDUP: May 3 - May 12, 2006 
 
Ref: A. Kingston 925 
 
     ¶B. Kingston 555 
 
KINGSTON 00000939  001.2 OF 003 
 
 
¶1.   This week's topics: 
 
--   Venezuelan Navy Ship Visits Kingston 
--   Prime Minister of Malaysia Visits 
--   Budget Debate Closes 
--   Motorola Deal Moving Forward 
--   Delta to Offer Atlanta-Kingston Route 
--   Cement Investigation Extended 
--   Bananas and Sugar: Help on the Way? 
--   Seafood Shortage 
 
 
------------------------------------ 
Venezuelan Navy Ship Visits Kingston 
------------------------------------ 
 
¶2. (U) On May 8, Emboffs attended an evening reception 
aboard the visiting Venezuelan Navy transport ship "Los 
Llanos", which was docked at Kingston Wharf for several days 
to re-supply a Venezuelan military engineering team in 
Jamaica to construct hurricane relief housing.  The guests 
consisted primarily of members of the diplomatic corps; 
emboffs did not see any GOJ or JDF representatives in 
attendance.  Members of the Venezuelan crew were uniformly 
polite to Emboffs, although they did screen a short film on 
the 1823 Battle of Lake Maracaibo (in which the narration 
contained pointed references to Venezuela's ability to 
defend itself against unnamed "hegemonistic" powers), and 
another brief film highlighting Venezuelan naval prowess. 
 
--------------------------------- 
Prime Minister of Malaysia Visits 
--------------------------------- 
¶3. (U) At the invitation of the Prime Minister of Jamaica 
Portia Simpson Miller, Malaysian Prime Minister Dato' Seri 
Abdullah Ahmad Badawi paid an official visit to Jamaica May 
2-3.  The Malaysian Prime Minister was accompanied by top 
ranking officials within his administration as well as 
members of the Malaysian media.  Jamaican and Malaysia 
signed a joint statement designed to strengthen bilateral 
relations between the two nations and in particular, to 
further the development of an economic partnership through 
the fostering of trade and investments and the promotion of 
technical cooperation. 
-------------------- 
Budget Debate Closes 
-------------------- 
 
¶4. (U) The debate over the FY2006/7 budget closed on May 10 
(Ref A).  In presentations from the ruling People's National 
Party (PNP), Prime Minister and Minister of Finance and 
Planning Omar Davies announced that they would introduce no 
new tax measures, but that capital spending for a variety of 
initiatives would increase.  In a clear sign that a general 
election is imminent, Simpson Miller focused on early 
childhood development, education and housing for the poor. 
Opposition Jamaica Labor Party (JLP) Leader Bruce Golding 
and Spokesman on Finance Audley Shaw slammed the PNP's 
economic record over its 14 years in power, and argued that 
the JLP offers "a real alternative," suggesting the use of 
funds saved under PetroCaribe and multilateral institutions 
such as the World Bank to restructure the country's massive 
debt, in order to spur productive investment and economic 
growth. 
 
---------------------------- 
Motorola Deal Moving Forward 
---------------------------- 
 
¶5. (SBU) Motorola, which signed a USD 10.9 million contract 
with the Ministry of National Security (MNS) to supply MNS 
with radio equipment for use by the Jamaica Constabulary 
Force, has finally received the first down payment of 20 
 
KINGSTON 00000939  002.2 OF 003 
 
 
percent.  Motorola approached the Embassy for information on 
why payment was behind schedule.  Motorola is now moving 
forward with ordering and production, and Post is attempting 
to determine when the balance will be remitted, and whether 
the deal is part of the GOJ's FY 2006/7 set-aside for MNS 
"technological upgrades." 
 
------------------------------------- 
Delta to Offer Atlanta-Kingston Route 
------------------------------------- 
 
¶6. (U) Starting June 1, Delta Airlines will offer a daily 
direct flight from Atlanta Hartsfield-Jackson International 
Airport to Norman Manley International Airport in Kingston. 
Delta already flies into Sangster International Airport in 
Montego Bay from both Cincinnati and Atlanta.  While Air 
Jamaica officials made no public comment - citing that they 
are in a code-share agreement with Delta - the increased 
competition cannot be welcome news to the beleaguered 
carrier that lost USD 120 million last year. 
 
----------------------------- 
Cement Investigation Extended 
----------------------------- 
 
¶7. (U) A team that was appointed to investigate the 
production and distribution of cement that did not meet 
construction and strength standards has been given a two- 
week extension to present their report (Ref B).  The team, 
which was assembled by Minister of Industry, Commerce, 
Science and Technology Phillip Paulwell on March 27, now has 
until May 19 to present their findings to Permanent 
Secretary Jean Dixon.  Post will report septel on any 
 
SIPDIS 
substantive issues. 
 
----------------------------------- 
Bananas and Sugar: Help on the Way? 
----------------------------------- 
 
¶8. (U) There is some assistance coming from the European 
Union that provides respite from the unrelenting beating 
that the Jamaican banana and sugar industries have taken. 
Last week, officials from the European Union (EU) and the 
GOJ signed the Special Framework Assistance (SFA) 2005 for 
the banana industry.  The amount financed under SFA is JMD 
322 million of which the Europeans are proving JMD 310 
million.  Agriculture Minister Roger Clarke said he was 
excited about the rural diversification component of the 
program, which would stimulate economic development by 
promoting alternative agricultural and non-agricultural 
activities. 
 
¶9. (U) On May 10, EU Trade Commissioner Peter Mandelson 
announced that Jamaica would receive increased levels of 
financial support from the EU as it begins to implement it 
Sugar Reform Policy.  That policy will reduce the price 
Jamaica and other African, Caribbean and Pacific (ACP) 
countries receive for sugar by 36 percent over four years. 
Although Mandelson declined to specify how much of an 
increase in funding there would be, he insisted that the EU 
will "be there practically, financially, and politically." 
 
---------------- 
Seafood Shortage 
---------------- 
 
¶10.  (U) In response to the chronic shortage of fish  fillet 
in  the  Jamaican  market, most fast-food  restaurants  have 
dropped  seafood  products from their  menu.   Most  seafood 
producers  export  their  products.   This  has  created   a 
domestic  shortage that is expected to remain until  imports 
increase.  Traditional exporting countries such  as  Guyana, 
Suriname,  Canada and Norway are unable to supply the  fast- 
food restaurant industry's needs. 
 
 
 
KINGSTON 00000939  003.2 OF 003 
 
 
TIGHE