US embassy cable - 04PARAMARIBO39

UNCLAS  PARAMARIBO 000039 
 
SIPDIS 
 
 
DEPT FOR WHA/PD - APRUITT, IIP/G/WHA - CBARONE, IIP/T/ES - 
GCHRISTISON, WHA/CAR - MSEIBEL 
 
E.O. 12958: DECL: N/A 
TAGS: KPAO, EAGR, PREL, NS 
SUBJECT: IIP U.S. RICE POLICY SPEAKER DR. GAIL CRAMER WINS 
SURINAMERS OVER, DISPELS POPULAR MISCONCEPTIONS ABOUT US 
RICE POLICY 
 
Ref: PARAMARIBO 517 
 
------- 
SUMMARY 
------- 
 
1.  Dr. Gail Cramer, the Head of the Department of 
Agricultural Economics and Agribusiness at Louisiana State 
University, educated Surinamers about U.S. Rice Policy 
during an October 12-16 visit to Suriname.  He met with a 
variety of government officials, politicians, rice farmers 
and exporters both in Nickerie, Suriname's rice district, 
and in the capital Paramaribo; toured Suriname's most 
successful rice company; attended an Amcham-hosted 
breakfast; taped an impromptu television program; and 
delivered two well-received public lectures.  Throughout his 
visit, Dr. Cramer emphasized the US's commitment to free 
trade and its desire to end agricultural subsidies through 
World Trade Organization negotiations; the domestic 
considerations that drive US agricultural policy; and facts 
about the US's PL480 program, particularly with regard to 
Jamaica.  While he acknowledged the long list of problems 
plaguing Suriname's rice sector, Dr. Cramer called on 
Surinamers to take steps that would allow Suriname to become 
more competitive on the global rice market, steps such as 
the reduction of production costs, investment in 
infrastructure and research, the tapping of new markets, and 
increased production of rice products.  By presenting 
complex US rice policy in a straightforward manner, Dr. 
Cramer advanced key USG themes, specifically that of free 
trade and mutual understanding, and effectively disarmed 
critics of US rice policy.  End Summary. 
 
--------------------------------------------- ------------- 
CRAMER WOWS AUDIENCE IN NICKERIE, SURINAME'S RICE DISTRICT 
--------------------------------------------- ------------- 
 
2.  IIP US Agricultural Policy speaker Dr. Gail Cramer, the 
Head of the Department of Agricultural Economics and 
Agribusiness at Louisiana State University, visited Suriname 
October 12-16 to educate Surinamers about US rice policy. 
During an October 14 visit to Nickerie, Suriname's rice 
district, Dr. Cramer met with farmers and government 
officials to discuss their concerns regarding the rice 
sector -- rice is Suriname's most important agricultural 
product.  Hardheo Ramadhin, the District Commissioner for 
Nickerie, and Kadi Kartosoewito, Director of Adron, a rice 
research center, spoke at length with Cramer about the lack 
of investment in the rice sector, the lack of funding for 
research to develop new varieties of grains, and the unfair 
competition Suriname faces from larger rice growing 
countries, such as the United States.  Both men voiced the 
common misperception that the United States is dumping 
subsidized American rice on the Caricom market through the 
PL480 program in Jamaica.  (See Reftel for further 
discussion of Suriname's troubled rice sector). 
 
3.  Dr. Cramer addressed these concerns during a lecture 
held at Adron, which was attended by influential rice 
farmers and exporters.  Cramer rejected the claim that the 
United States' rice policy was hurting Suriname, one of 
Caricom's two rice exporting countries.  He explained that 
the United States is subsidizing rice, but is not providing 
rice export subsidies or subsidies to cover production 
costs.  According to Cramer, U.S. farmers can grow rice 
cheaper than all but two countries, even without US 
government assistance.  Countering allegations that the U.S. 
is pursuing a double standard by subsidizing its domestic 
rice industry on the one hand and by promoting free trade on 
the other, Cramer said that the U.S. government was prepared 
to terminate all rice subsidies in 2002.  However, due to 
large surpluses and a decrease in world rice prices, the USG 
was forced to change course.  The USG remains committed to 
cutting subsidies only via World Trade Organization talks, 
Cramer said, as domestic political realities make it 
impossible for the US to terminate subsidies unilaterally. 
As for the PL480 program, Cramer explained that the U.S. had 
stopped providing rice to Jamaica for at least two years and 
that all current sales to Jamaica are commercial in nature. 
Dr. Cramer urged Surinamers to increase their 
competitiveness by reducing production costs, investing in 
research and infrastructure, tapping into new markets, and 
expanding production of rice products. 
 
4. Two issues raised by Cramer -- the degree to which US 
domestic politics influences US rice policy and the PL 480 
program with Jamaica -- sparked lively discussions.  Rice 
stakeholders were surprised about the active role Congress 
has played since 1929 in passing specific legislation to 
 
support US rice farmers and about the billions of dollars in 
subsidies rice farmers receive annually.  Attendees were 
surprised to learn that the United States is no longer 
supplying Jamaica with cheap American rice and expressed 
appreciation to Dr. Cramer for dispelling that popular 
misconception.  In reaction to Dr. Cramer's presentation, 
Leakhat Mahawathkan, a National Assembly member who is also 
a rice farmer, told attendees that local politicians should 
learn from the US example and educate themselves even more 
about the rice sector and that the Government of Suriname 
should subsidize rice farmers.  Mahawatkhan and the other 
attendees were so impressed with Dr. Cramer's presentation 
that they arranged for him to deliver an impromptu 
presentation on a local television program.  The program was 
later dubbed in Dutch and Hindi to attract a wider audience. 
 
-------------------- 
VISIT TO A RICE FARM 
-------------------- 
 
5.  Following his lecture, Dr. Cramer attended a lunch 
hosted by the Soechit family, one of the most important and 
successful rice producers in the country, and toured the 
family's rice company.  During the tour, Dr. Cramer had the 
opportunity to view the entire rice production process, from 
harvesting, to the drying and grinding of rice paddy, to the 
packaging of the end product.  The Soechit family later told 
the Embassy that they appreciated the opportunity to discuss 
the intricacies of the rice business with an American rice 
expert, one who had research experience in neighboring 
Guyana and who knew firsthand about the type of difficulties 
Surinamese farmers are currently facing. 
 
--------------------------------------------- -------- 
MEETING WITH POLICYMAKERS, RICE EXPERTS IN PARAMARIBO 
--------------------------------------------- -------- 
 
6.  Dr. Cramer reiterated the points made with various 
interlocutors in Nickerie during a breakfast sponsored by 
the American Chamber of Commerce, a meeting with Rick Van 
Raavenswaay of Celos, the rice institute at Anton De Kom 
University, and a meeting with Jaswananth Sathoe, the 
Ministry of Agriculture's Permanent Secretary, in 
Paramaribo.  While Cramer successfully conveyed U.S. rice 
policy to Van Raavenswaay and Amcham members, the meeting 
with Sathoe proved to be exasperating.  Even though the 
Embassy stressed that Dr. Cramer is a university professor 
and not a government official, Sathoe refused to permit 
Cramer to speak, declaring "I do not want to listen to what 
you [Cramer] have to say."  While the meeting with Sathoe 
amounted to a one-way barrage about the evils of US rice 
policy, which allegedly prevents small countries like 
Suriname from benefiting from free trade, it exposed Cramer 
to Surinamese sensitivities on this subject and to the 
tendency by some Surinamers to blame the US for their 
troubles. 
 
--------------------------------------------- ------------- 
DR. CRAMER CAPTIVATES AUDIENCE WITH HIS PARAMARIBO LECTURE 
--------------------------------------------- ------------- 
 
7.  Dr. Cramer delivered a well-received lecture October 15 
on US rice policy to a group of influential policymakers and 
rice stakeholders, including the Ministers of Trade and 
Industry and Agriculture, and political leaders from various 
parties.  Like others before them, the audience was 
surprised by the amount of subsidies US rice farmers receive 
from the USG, the US commitment to ending subsidies via the 
World Trade Organization, and the termination of the US 
PL480 rice program for Jamaica.  Because Dr. Cramer managed 
to disarm critics of US rice policy with his effective 
presentation, members of the audience focused on taking 
advantage of the Minister of Trade and Industry's presence 
to urge the government to invest in infrastructure and 
research, to help Surinamese farmers to compete, and to 
search for new markets.  Many stayed for some time after Dr. 
Cramer's lecture to continue one-on-one discussions with 
him. 
 
--------- 
GPRA DATA 
--------- 
 
8.  Justification and objectives:  Embassy intended to 
promote a better grasp of U.S. Rice Policy and mutual 
understanding with Dr. Cramer's visit.  Suriname is one of 
Caricom's two rice-producing countries.  Many stakeholders 
in the rice sector, which has been in decline for some time 
now, blame the US for adding to Suriname's woes by providing 
 
cheap rice to Jamaica, which reportedly dumps cheap American 
rice on the Caricom market.  Surinamers also regularly 
denounce the US for promoting free trade on one hand and for 
providing subsidies to its farmers on the other.  Embassy 
hoped that Dr. Cramer's visit would dispel myths and provide 
factual information about US rice policy to Surinamese rice 
stakeholders.  Several contacts had requested that the 
Embassy make some presentations on this topic, but due to 
lack of information, the Embassy was unable to fulfill these 
requests.  Thanks to IIP's responsiveness and excellent 
coordination, we were able to find the perfect speaker for 
this narrow topic. 
 
-------------- 
RESULTS/IMPACT 
-------------- 
 
9.  Results/Impact:  Dr. Cramer did not convince many local 
rice merchants to support free trade in agriculture. 
Instead, discussions about the level of US subsidies/support 
to US rice farmers encouraged calls for GOS subsidies as 
well as greater GOS investment in Suriname's rice industry 
(i.e. infrastructure improvements, development of new 
varieties, and business management consulting).  However, 
Dr. Cramer's visit helped educate Surinamers, particularly 
the movers and shakers in the rice sector, about US rice 
policy, the domestic considerations US politicians must take 
into account, the US commitment to free trade, and the PL480 
program.  Many contacts expressed appreciation for this 
Embassy initiative, noting that Dr. Cramer provided them 
with information on US rice policy that they had no access 
to previously and that their opinions had changed in favor 
of the U.S. on this topic. 
 
------- 
COMMENT 
------- 
 
10.  Dr. Cramer succeeded in providing Surinamers with 
information on an issue that they knew little about but 
often criticized: U.S. rice policy.  With his well- 
articulated, engaging style, Dr. Cramer captivated audiences 
in Paramaribo and in Nickerie District with the facts about 
US rice policy, while dispelling popular misconceptions 
about the US's alleged "hypocrisy" regarding free trade and 
its "dumping" of rice on the Caricom market.  To our 
delight, Dr. Cramer's visit prompted a lively discussion by 
Surinamers of the need for politicians to educate themselves 
about the rice sector in order to make more informed 
decisions about the country's rice policy.  The Embassy 
recommends Dr. Cramer as a speaker to other posts.  End 
Comment. 
 
BARNES 
 
 
NNNN