VZCZCXRO8743
RR RUEHGR
DE RUEHSP #0233/01 1471800
ZNR UUUUU ZZH
R 271800Z MAY 09 ZDK
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 9861
INFO RUCNCOM/EC CARICOM COLLECTIVE

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000233 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON EFIN ECIN TD
SUBJECT: CARICOM: HEADS OF GOVERNMENT DISCUSS REGIONAL 
ECONOMIC CRISIS 
 
REF: 2008 PORT OF SPAIN 397 
 
PORT OF SP 00000233  001.53 OF 002 
 
 
SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY 
¶1.  (SBU) Summary:  CARICOM heads of government met May 24 in 
Port of Spain to discuss a regional response to the economic 
crisis.  They encouraged member countries intending to 
approach the IMF to do so sooner rather than later, but also 
stressed the need for a medium-term regional approach to the 
crisis.  A task force was appointed to review member states, 
financing plans and incorporate them into a regional program 
prior to a hoped-for CARICOM heads of government meeting with 
President Obama later in 2009.  PM Manning announced the GOTT 
would consider donating USD 80 million next year to the 
CARICOM Petroleum Fund, perhaps putting this money under the 
control of a restructured Caribbean Development Bank. 
Manning also presented a paper on how to achieve regional 
economic and political integration to the leaders of St. 
Lucia, Grenada, and St. Vincent and the Grenadines, who had 
agreed in August 2008 to advance toward this goal.   End 
Summary. 
 
¶2.  (U) Meeting for six hours May 24 in Port of Spain, 
CARICOM heads discussed both immediate responses and longer 
term regional solutions to the economic crisis buffeting 
their countries.  They agreed on the need for immediate 
action, especially by states already facing serious financial 
difficulties, but also stressed such action should be within 
the context of a longer term regional strategy.  The leaders 
advised that all countries considering going to the 
International Monetary Fund should do so as quickly as 
possible, but President Bharrat Jagdeo of Guyana also 
emphasized that CARICOM leaders should work out a common 
approach before meeting with the IMF and the Inter-American 
Development Bank.  Manning agreed with Jagdeo, adding this 
common approach would be the focus of a CARICOM proposal to 
President Obama at their next meeting, expected later in 2009. 
 
¶3. (U) CARICOM heads also urged the IMF to display more 
flexibility, stating it should apply different standards to 
developing and developed countries.  Along these lines, 
Belize PM Dean Barrow, CARICOM Chairman, announced the 
formation of a task force to help member states develop 
financing proposals to the International Financial 
Institutions.  The team will be led by Dr. DeLisle Worrell, 
Executive Director of the Caribbean Center for Money and 
Finance, and will include Derrick Latibeaudietre, Governor of 
the Bank of Jamaica;  Dr. Shelton Nicholls, Deputy Governor 
of the Central Bank of TT;  and Dr. Garth Nicholls, Senior 
Director of the Research Division of the Eastern Caribbean 
Central Bank. 
 
¶4. (U) The assembled leaders also agreed that the Caribbean 
Development Bank (CDB) should be restructured to become more 
responsive and to serve as a vehicle for channeling all 
development resources to the region.  In line with this, 
Manning announced the GOTT is considering donating USD 80 
million next (fiscal) year to the CARICOM Petroleum Fund.  He 
indicated Trinidad,s willingness to put the petroleum fund 
under the management of a restructured CDB, along with the 
CARICOM Development Fund and the Consolidated Fund, improving 
efficiency and allowing resources to be leveraged through 
matching contributions from the region,s development 
partners. 
 
¶5. (U) As part of the conference, and following up on his 
initiative begun last August (ref), Manning presented his 
colleagues copies of a report by a task force on economic and 
political integration headed by Professor Vaughn Lewis. 
Trinidad and Tobago, along with St. Lucia, Grenada, and St. 
Vincent and the Grenadines, agreed in August of 2008 to move 
toward economic integration by 2011 and political integration 
by 2013.  Manning said the report would be made public May 
30, after it had been presented to the cabinets of all four 
countries.  Manning added that the current economic situation 
provides an impetus for greater political and economic 
integration among countries in the region. 
 
¶6. (U) Although the issue was not on the agenda, both 
President Jagdeo and PM Ralph Gonsalves of St. Vincent and 
the Grenadines raised Barbados, new immigration policy on 
non-nationals, complaining it went against the trend toward 
greater freedom of movement that should be part of increased 
regional integration.  Manning, for his part, stated that 
Trinidad traditionally had been lenient with citizens of 
other CARICOM countries. 
 
¶7. (SBU) COMMENT:  The decisions emanating from the May 24 
meeting seem designed to help the region make a more 
compelling case for IFI and donor support and also to prepare 
for CARICOM,s hoped-for meeting with President Obama later 
this year.  Manning,s plan for economic and political union 
 
PORT OF SP 00000233  002.29 OF 002 
 
 
continues to draw lukewarm reactions from many countries, but 
the smaller OECS nations seem at least willing to continue to 
entertain the idea, perhaps in hopes of receiving benefits 
from richer Trinidad. 
Kusnitz