US embassy cable - 05KINGSTON2682

UNCLAS SECTION 01 OF 02 KINGSTON 002682 
 
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: NOVEMBER 26 - DECEMBER 
9, 2005 
 
Ref: A. KINGSTON 02680 
 
1.   This week's topics: 
 
--   JLP Holds Annual Conference 
--   Poverty Cut in Half 
--   GOJ Increases Social Benefits 
--   Brazilians to Invest in Sugar Industry 
--   Chinese Government to Finance Mega Projects 
--   Tourist Arrivals to Surge 
--   Police Officers on Trial 
--   Crime Statistics 
 
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JLP Holds Annual Conference 
--------------------------- 
 
2.   The opposition Jamaica Labour Party (JLP) held its 
annual conference in Kingston December 3-4, with leader 
Bruce Golding urging delegates to be election-ready by March 
2006.  Golding said 377,000 voters remain unverified and is 
concerned about the new voters' list due by the end of 
December, asserting it could be reduced by 250,000 from its 
current 1.4 million names.  Former JLP Prime Minister Edward 
Seaga was reportedly absent from the conference.  Also 
absent from a portion of the conference, was controversial 
Member of Parliament Olivia "Babsy" Grange. 
 
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Poverty Cut in Half 
------------------- 
 
3.   Data released by the Planning Institute of Jamaica and 
the Statistical Institute of Jamaica show that poverty has 
declined by 50 percent over the last 13 years.  The rate of 
poverty moved from a high of 35.2 percent in 1992 to 16.9 
percent in 2004.  This dramatic reduction in poverty has 
been attributed to GOJ expenditures of JMD 42 billion (USD 
656 million) on social programs during the period.  The 
mushrooming of the informal sector, the activities of the 
National Poverty Eradication Program and other GOJ polices 
also contributed to the contraction.  While not discussed in 
the report, the robust growth in remittances from Jamaicans 
oversees was likely a factor in the reduction of poverty. 
 
 
----------------------------- 
GOJ Increases Social Benefits 
----------------------------- 
 
4.  Jamaican pensioners are expected to realize a 
significant increase in benefits effective July 1, 2005 
(note: the pension increase was announced on December 5, 
2005 but will be granted retroactively).  The annual cost of 
living adjustment will range from a high of JMD 14,400 (USD 
219) per annum for pensioners at the lowest end to JMD 6,000 
(USD 94) per annum for those receiving over JMD 75,000 (USD 
1,172) a month.  The increase, expected to benefit 17,000 
pensioners at a cost of JMD 250 million (USD 3.9 million), 
will be extended to the spouse and dependents of deceased 
officers.  The GOJ is also set to increase the National 
Minimum Wage in January 2006.  The National Minimum Wage of 
JMD 2,400 (USD 38) will be raised between ten and 25 
percent. 
 
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Brazilians to Invest in Sugar Industry 
-------------------------------------- 
 
5.   The medium-sized Brazilian company Aracatu, with 
interest in sugar, ethanol and alcohol, is currently 
negotiating with GOJ officials and sugar industry 
representatives to acquire a 70 percent interest in the 
industry through the purchase of the state-owned Sugar 
Company of Jamaica.  Aracatua's strategic objectives are 
centered on diversifying the product mix to include raw 
sugar, ethanol and alcohol. Jamaica's sugar industry, which 
benefits consistently from substantial government financing, 
will collapse under the 39 percent cut in the EU reference 
price without increased efficiency and a reduction in 
production costs from the current USD 0.25 per pound to USD 
0.05 per pound. 
 
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Chinese Government to Finance Mega Projects 
------------------------------------------- 
 
6.   The GOJ is set to receive funding to the tune of USD 42 
million from the Chinese government to build a convention 
center in Montego Bay (REF A).  The Complant Group, which is 
currently building a World Cup 2007 cricket stadium, is 
slated to build the 75,00 square-foot convention center. 
The GOJ turned to the Chinese, who are already providing USD 
30 million for the cricket stadium, after it failed to 
secure funding from the Mexican bank, BANCOMEX.  By building 
the convention center, Jamaica hopes to become a major 
player in the meetings and conventions sector of the tourism 
market. 
 
------------------------- 
Tourist Arrivals to Surge 
------------------------- 
 
7.  Jamaican hoteliers are anticipating a surge in tourist 
arrivals to the island following the hurricane damage to 
Cancun, Mexico.  So buoyed are hoteliers about the prospects 
that hotel mogul Gordon "Butch" Stewart of the Sandals Group 
has predicted the best ever winter season for Jamaica. 
Recent figures from the Jamaica Tourist Board show that 
arrivals increased by 24 percent in November.  Figures show 
a record number of tourists from the southern U.S, likely 
due to the entry of Spirit Airlines into Jamaica. 
 
------------------------ 
Police Officers on Trial 
------------------------ 
 
8.   The high profile trial of Senior Superintendent of 
Police Reneto Adams and five other members of the disbanded 
Crime Management Unit is about to come to a close.  The 
officers are charged with the extra-judicial killing of four 
civilians in Crawle, a deep rural Clarendon community on May 
7, 2003.  Lawyers will begin to make closing submissions 
today and Chief Justice Lensley Wolfe has requested that 
this trial be completed by December 16.    The police allege 
that they went to Crawle in search for Bashington "Chen 
Chen" Douglas, who was wanted for a number of crimes. 
According to the police, individuals from a house in Crawle 
fired on them and when the fire was returned four people - 
Angella Richards, Lewina Thompson, Kirk Gordon and Matthew 
Jones - were found dead in the house. 
 
---------------- 
Crime Statistics 
---------------- 
 
9.   Based on statistics provided by the Jamaica 
Constabulary Force (JCF), the country experienced 1,522 
murders between January 1 and December 4, 2005.  The 
previous record for murders reported in Jamaica was 1,469 in 
2004.  Post's Law Enforcement Development Advisor stated 
that the JCF attributes most of the homicides to gang 
battles over turf and fighting over scarce resources.