VZCZCXYZ0001
PP RUEHWEB

DE RUEHKG #0184/01 0701759
ZNR UUUUU ZZH
P 111759Z MAR 09
FM AMEMBASSY KINGSTON
TO SECSTATE WASHDC PRIORITY 7377

UNCLAS KINGSTON 000184 
 
SIPDIS 
 
SENSITIVE 
 
WHA/CAR FOR CODEL ENGEL 
 
E.O. 12958: N/A 
TAGS: OVIP PREL PGOV ETRD ECON ENRG ASEC JM XL
SUBJECT: JAMAICA: CODEL ENGEL DISCUSSES ECONOMY, ENERGY, AND 
-        LAW ENFORCEMENT COOPERATION WITH GOJ OFFICIALS 
 
Summary 
------- 
 
¶1. (U)  From February 20-22, a CODEL led by WHA sub-committee 
Chair Eliot Engel was in Kingston, Jamaica, meeting with 
government officials and civil society representatives to 
discuss energy, environmental, and law enforcement cooperation 
issues.  In addition to Chair Engel, the CODEL included 
Representatives Virginia Foxx, Jean Schmidt, Mark Souder, 
Ruben Hinojosa, and John Salazar.  Congressional staff members 
Jason Steinbaum, Julie Schoenthaler, Eric Jacobstein, Janice 
McKinney, and Congressional Research Service staff Mark 
Sullivan accompanied the CODEL.  Julie Bulgrin from the H 
Bureau, military escorts Colonel Joey Booher, Colonel Thomas 
Lawhead, and Dr. Ceasar Junker were also a part of the 
delegation. 
 
¶2. (SBU) At a February 21 meeting with the Jamaican Prime 
Minister, Foreign Minister, and Energy Minister, the 
Government of Jamaica (GOJ) discussed the effects of the 
global economic crisis, the need for increased security 
cooperation, a hope for closer trade and investment ties, and 
concerns over a possible drop in the ethanol tariff that would 
render Jamaican ethanol less competitive in that sector. 
Members of the CODEL acknowledged the need for enhanced 
security cooperation that would benefit both nations.  The 
CODEL later toured an ethanol production facility and visited 
a Coast Guard base to discuss law enforcement cooperation. 
They also visited three USAID projects that focus on 
livelihoods and environmental sustainability.  In addition, 
the CODEL hosted a reception on February 20 attended by NGO 
representatives, business operators, government officials, and 
opposition parliamentarians. 
 
End Summary. 
 
Prime Minister and Cabinet Officials 
Discuss Jamaica?s Economic Concerns 
------------------------------------ 
 
¶3. (SBU) A CODEL of six Congress members led by Western 
Hemisphere Affairs (WHA) sub-committee Chair Eliot Engel 
visited Kingston from February 20-22.  At a February 21 
breakfast hosted by Prime Minister Bruce Golding at his 
official residence, Vale Royal, Chairman Engel was accompanied 
by the full delegation, along with Charge James Heg.  In 
addition to Golding, the Government of Jamaica (GOJ) attendees 
included Foreign Minister Kenneth Baugh, Energy Minister Clive 
Mullins, Junior Minister of the Ministry of Foreign Affairs 
and Foreign Trade (MFAFT) Ronald Robinson, Cabinet Secretary 
Ambassador Douglas Saunders, MFAFT Permanent Secretary 
Ambassador Gail Mathurin, Permanent Secretary of the Office of 
the Prime Minister (OPM) Pat Sinclair MacCullough, OPM Chief 
Technical Director Oneka Miller, and MFAFT Undersecretary for 
bilateral and regional affairs Ambassador Paul Robothom. 
 
¶4. (SBU) GOJ officials raised a number of issues, opening with 
the economy.  Golding stated that the global financial crisis 
had made it difficult for Jamaica to gain access to capital 
markets.  The GOJ obtained USD 1 billion through multilateral 
banks, which prevented a widespread economic collapse. 
However, severe economic strains remain.  Jamaica has seen a 
ten percent drop in total remittances, 65 percent of which 
originate in the U.S.  The national deficit and the large debt 
burden are impairing Jamaica?s progress, Golding said.  The 
GOJ will have to cut expenditures, perhaps including public 
sector jobs, and there are no resources to mount a stimulus 
package. 
 
¶5. (SBU) In the international economic system, there needs to 
be some accommodation for developing countries, which provide 
markets for other economies, Golding stated.  He added that 
Jamaica has reduced poverty from 27 percent to 13 percent, but 
many of the gains may roll back with the current economic 
difficulties.  Countries like Jamaica must wean themselves off 
aid, but foreign investment is important.  To that end, the 
GOJ would be interested in pursuing a free trade agreement 
with the U.S. through CARICOM, particularly if special and 
differential treatment for CARICOM member states might be 
possible.  Jamaica also needs to access its untapped economic 
potential, per Golding.  Currently, 3.4 million tourists visit 
Jamaica annually, but it could support up to 10 million 
tourists per year.  Eco-tourism and heritage tourism might 
prove lucrative.  Jamaica also is negotiating with Spain to 
market medical tourism.  The Spanish are primarily investors. 
While the number of Spanish tourists has increased from 2000 
visitors to 17,000 annually, the bulk of visitors to Jamaica 
still come from the U.S. 
 
 
¶6. (SBU) Golding underscored the importance of economic 
advancement, saying ?we don?t want to see this region slip 
into political instability.  When people are poor, rationality 
goes through the window.?  Congressman Hinojosa stated that it 
is crucial to invest in education and information technology. 
There should be a shift away from agriculture, with a focus on 
jobs, food, health, housing, and education.   Action now 
prevents the need for reaction in the future, staving off the 
danger of social unrest, Hinojosa said. 
 
Dialogue on the Need for Security Cooperation 
--------------------------------------------- 
 
¶7. (SBU) Prime Minister Golding stated that Jamaica is the 
U.S.?s ?third border,? so cooperation on security measures is 
essential.  Caribbean Heads of Government met with then- 
Secretary Rice at the UN General Assembly in September 2007, 
but there should be a mechanism to regularize meetings. 
Golding believes there needs to be follow-up on security 
cooperation, immigration, and development, and Chairman Engel 
agreed.  Golding also said that Jamaica needs more assistance 
to combat narco-trafficking.  The Merida Initiative, if 
effective, could channel drug traffickers looking for an 
alternate route to the Caribbean, he worried. 
 
¶8. (SBU) Jamaica needs assistance in controlling the influx of 
small arms, Golding noted.  He said an estimated 95 percent of 
illegal weapons are imported from the U.S.  Chairman Engel 
explained that Mexico suffers from a similar problem, which he 
had discussed during the CODEL?s recent visit there.  Engel 
stated that there is no conflict with the U.S. Constitution?s 
second amendment in limiting the illicit international flow of 
weapons, and it remains an area for enhanced bilateral 
cooperation.  Golding said he appreciated joint efforts to 
date on stopping narco-traffickers, extradition, information- 
sharing, and on confiscating and reinvesting the proceeds of 
crime.  Golding noted that the U.S. is willing to have a 
customs presence in Jamaica, but initially the GOJ said they 
could not be armed, which stalled the plans.  Golding is 
holding discussions with his Minister of National Security to 
allow armed U.S. customs agents to serve in Jamaica. 
 
¶9. (SBU) The crime rate in Jamaica is unacceptably high, 
Golding said.  There has been some progress, though, and ganja 
cultivation is down and cocaine trafficking has decreased 
significantly.  In 2007, it dropped to 20 percent of the 
initial rate.  Nevertheless, Jamaica has 300 miles of 
coastline, and would like U.S. assistance in monitoring it 
through satellite technology.  Golding also raised the issue 
of deportees, saying that many may not have ties to Jamaica 
when they return, and may commit crimes here.  In addition, if 
courts in the U.S. opt for deportation in lieu of prison 
sentencing, the criminal is immediately released and does not 
serve time at all, the GOJ has no recourse when the deportee 
arrives.  Golding said he accepts that after due process, 
people may be deported, but the system should be improved. 
Rep. Engel asked if the USG provides all information (?entire 
rap sheet?) on criminal deportees.  Golding did not know the 
answer.  (Comment: Post?s DHS/ICE Attach confirms that 
complete ?rap sheets? on criminal deportees currently are not 
provided to receiving countries because the information is 
maintained in proprietary FBI databases.  End Comment.) 
Golding also emphasized the need to back up crime fighting 
with social programs.  If people feel abandoned by a society, 
they have no commitment to it.  A New York City Police 
Commissioner who visited Jamaica attributed the success in his 
city to a combination of police and social measures, Golding 
said. 
 
¶10. (SBU) Golding explained that Jamaica recently had a 
strategic review of the police with experts from the U.S., UK, 
Canada, and South Africa weighing in, and the GOJ will 
implement 119 out of the 124 recommendations.  The year-to- 
date murder rate is down 17 percent, which is a step in the 
right direction. (Note: however the aggregate homicide rate 
remains an unacceptable 60/100,000).  Golding also explained 
his personal commitment to anti-corruption efforts.  The 
current laws are weak, and corruption cases are prosecuted 
with all others, getting lost in the shuffle of civil cases. 
There is now a bill in parliament to create a special 
prosecutor for corruption cases.  The office would fall under 
the Department of Public Prosecutions (DPP) but would maintain 
a degree of autonomy. 
 
Discussions on Energy Issues 
----------------------------- 
 
¶11. (SBU) Energy Minister Mullings told the CODEL that Jamaica 
has had a wind farm since 2005, and may explore geo-thermal 
 
energy as well.  The November 2008 trilateral agreement with 
the U.S. and Brazil can also provide a tremendous opportunity 
for the U.S. to export vehicles, Mullings believes.  There is 
a regional move toward ethanol, with a 10 percent blend in use 
now.  If the percentage of ethanol in fuel rises, 
manufacturers of flex-fuel vehicles stand to benefit.  Foreign 
Minister Baugh noted the need for continued dialogue, and felt 
that small countries must take advantage of economies of scale 
through strategic partnerships. 
 
¶12. (SBU) Prime Minister Golding noted that the Caribbean 
Basin Initiative (CBI) limits Jamaican exports to 7 billion 
gallons per year, and there may be a need for an increase on 
that ceiling.  He expressed hope that the favorable trade 
provisions are not in danger of expiring when the CBI sunsets 
in 2010.  In addition, he was concerned that a drop in the 
U.S. tariff would endanger Jamaica?s participation in ethanol 
exports. 
 
¶13. (SBU) The GOJ wants to restructure its sugar industry to 
accommodate feed to ethanol programs, Golding said.  Jamaica 
currently has duty/quota-free access to the U.S. for sugar 
exports, but no price guarantee.  For now, Jamaica imports 
Brazilian feed and uses it to process ethanol.  If Jamaica can 
produce its own feed for further processing, it can expand 
production.  In addition, the GOJ is privatizing its sugar 
industry, which had been 83 percent government-owned.  Golding 
has spoken to the President of Brazil about favorable 
consideration on sugar-based ethanol. 
 
¶14. (SBU) Congressman Salazar explained that while prices 
remain low, it is difficult to move on the ethanol issue.  In 
his own district, unemployment has risen from 4 percent to 
over 10 percent in the last year.  Considering that, the Buy 
America provisions are important, especially for industrially 
declined areas that suffer under free trade arrangements. 
Congressman Hinojosa noted that in his district, cotton, 
sorghum, and cane are key crops.  There is a powerful 
agricultural lobby in the U.S., and all nations consider it 
important to safeguard the agricultural sector. 
 
Fruitful Discussions with NGO, 
Opposition, and 
Government Representatives 
------------------------------ 
 
¶15. (U) The CODEL hosted a reception on February 20 to which 
the Embassy invited NGO representatives, members of the 
business community, opposition politicians, and government 
officials.  Organizations such as the Jamaican Forum for 
Lesbians, All-sexuals, and Gays (J-FLAG), People?s Action for 
Community Transformation (PACT), and Woman, Inc., all sent 
representatives to the event.  Members of the CODEL were able 
to elicit views on a range of issues, including continued 
harassment and attacks on homosexuals, efforts to combat 
trafficking in persons, and problems of domestic violence. 
They also heard a variety of opinions on the current economic 
climate and its effect on entrepreneurs, as well as criticism 
of the ruling Jamaica Labour Party (JLP) from the opposition 
People?s National Party (PNP). 
 
Visit to Jamaica Defence Force-Coast Guard 
------------------------------------------ 
 
¶16. (SBU) The delegation visited HMS Cagway, headquarters for 
the Jamaica Defence Force Coast Guard (JDF?CG).  The JDF-CG 
was very appreciative for security assistance in the form of 
commodities and training from both the Narcotics Affairs 
Section (NAS) and the Military Liaison Office (MLO).  The JDF- 
CG provided a brief overview of its mission and challenges, 
and then the Executive Officer led the delegation on a brief 
tour of the facility.  At the end of the briefing, the 
delegation learned about JDF-CG cooperation with JIATF South 
and saw the JIATF ?chatroom? running on a computer.  During 
the tour, the delegation was shown interceptor boats, 
trailers, and towing vehicles recently provided by MLO under 
?Enduring Friendship.?  The delegation also was shown three 
vessels, past donations from NAS, that are currently in dry- 
dock awaiting refit.  NAS does not have the funding to assist 
the JDF-CG refit these vessels (USD 300,000 per) and the JDF- 
CG is in discussions with NAS on how to properly dispose of 
the vessels and use the funds to support the program.  The 
delegation also saw a variety of other security items provided 
by the USG to the JDF-CG. 
 
Jamaica Broilers Ethanol (JBE) 
------------------------------ 
 
¶17. (SBU) The delegation visited Jamaica Broilers Ethanol 
 
(JBE) on February 21.  Jamaica Broilers was represented by 
Chairman Robert Levy, President and CEO Chris Levy, Head of 
the Ethanol Plant Stephen Levy, and CFO Ian Parsard.  The JBE 
officials expressed concern about any move to reduce the 
tariff on Brazilian ethanol.  When asked at what tariff level 
the sector in Jamaica would be able to survive, Parsard said 
it depended on a number of variables, but any floor below 54 
cents could prove detrimental to current and future projects. 
In a private conversation with congressional staff, one JBE 
team member said that his company could live with a tariff 
level reduced to $.45/gallon, the level in one U.S. 
legislative proposal.  He also told congressional staff that 
it would take at least 5 years for JBE to build in enough 
efficiencies to survive elimination of the tariff.  The JBE 
team reiterated the importance of the CBI benefits and 
explained that this is what influenced their decision to 
double production capacity at the plant.  Chairman Engel 
explained that he was a new convert to renewables, given their 
importance to energy independence.  He said renewables were 
also part of the answer to breaking the dependency on oil. 
This was welcome news to the JBE group. 
 
HEG