Minister of
Trade and Industry, Hon. Dr. Cheddi Jagan, fresh from his fruitful trip to
London, New York, Cuba and Venezuela, explained the results of his mission
in a radio broadcast last Saturday night [3 September]. The text of the
Majority Party 1eader's speech follows:
(Thunder,
10 September 1960)
Fellow Guianese, Ladies and
Gentlemen:
I am glad to be
back from what I regard as one of my most fruitful trips abroad. I would
like to take this opportunity to let you know about some of the discussions
which I have had and the results of these talks.
First, you would no
doubt like to hear about electricity. Well, at last we have got this problem
licked. Agreement was reached in London, as you have already heard, for the
takeover of the Demerara Electric Company's undertaking.
In addition, we
have also settled the question of purchasing additional plant to take care
of our expanded needs for the next five to six years. We have bought diesel
equipment as an emergency measure. Every effort will be made, we have been
assured, to get these into the country by Christmas. The large steam plants
are expected about two years from now. But, we were told by the
manufacturers that they would try to get them a bit earlier, sometime
between eighteen months to two years.
Package Deal
The whole deal,
that is the takeover of the Demerara Electric Company and additional
equipment including new and improved distribution lines, is likely to cost
about $18 million. Now, you will remember sometime age I referred to package
deal arrangements. Well, this one is certainly a package. The Demerara
Electric Company is being taken over on credit terms to be paid over a
period of five years.
Barclays Development
Corporation will advance a sum of a little over $1 million to make a dawn
payment for the takeover of the Demerara Electric Company. A consortium made
up of Associated Electrical Industries, Taylor Woodrow and International
Combustion Company will provide the additional equipment and do the
construction and civil engineering works. And Barclays Bank DC&O generously
agreed to lend us a sum of $5 million to help pay for part of the whole
deal.
Confidence
We are heartened by the
confidence which this bank which has been so long with us and is in an
excellent position to judge, has shown in this Government.
It is expected that the public
corporation to be formed to run the new undertaking will be able to pay for
the whole project out of profits within ten years; that is, for the takeover
and for the additional plant and equipment which will be required. . . .
Business Lines
You may also wish to know that
it was agreed that the new Corporation to be formed will be run on strictly
sound business lines without any political interference. It was also agreed
while the loan remains unpaid that the International Power Company in
Canada, the owners of the Demerara Electric Company, and the Consortium will
be permitted to nominate directors to the directorate of the Company.
In addition, the Manager will
be appointed to the Corporation with the concurrence of the parent Canadian
Company. The Manager will be entitled to seek advice from time to time from
the Montreal Engineering Company who are the technical consultants in Canada
to the Demerara Electric Company.
I am sure that you are very
glad that we have finally settled this problem which has been plaguing us
for some time. Now that the takeover of the Demerara Electric Company has
been completed we will move on to the development of rural electrification.
In addition, all over the city will enjoy much cheaper power which will be a
real stimulus to industrialisation. . . .
Sugar Quota for Small Farmers
While in London, I took up with
Sir Jock Campbell the question of cane farming. I pointed out to him that in
the West Indies a large part of the total sugar production, in some cases as
high as 40 to 50 percent, came from cane farmers. I asked him to see if it
was possible that as a beginning at least 10 percent of total production,
instead of the present figure of about 2 percent, be allocated to our
farmers. He has promised to look into this matter.
United Nations
From London Mr. D'Andrade and I
travelled together to New York. He proceeded to Washington to iron out
certain details with respect to our application for a loan from the World
Bank and to take the opportunity to have talks also with US Government
officials. I stayed on in New York and had discussions at the United Nations
Headquarters with representatives of United Nations Technical Assistance
Administration. The discussions covered a wide range of subjects.
Hydro-Electricity
A hydro-electric expert is to
come out shortly. He will do a preliminary survey, evaluate what has been
done thus far and make recommendations as to what should be done in the
future. You are also aware that we have now become an associate member of
the United Nations Economic Commission for Latin America or ECLA, as it is
called. They are being requested to put on their time table a visit to
British Guiana of their water resources and pulp and paper teams.
We are also seeking experts to
help us to revise our mining laws and to give us guidance in the framing of
up-to-date petroleum mining legislation.
We are also seeking
assistance for the establishment of a Central Ban k for British Guiana. An
attempt will be made to see whether some one can be sent out to look into
this question.
Personnel
Our discussion also covered the
question of the shortage of adequately trained personnel. Agreement was
reached to help us to fill this gap. It is likely that someone in the
Administration Division of the United Nations Technical Assistance
Administration will be visiting here to have preliminary talks and that we
may shortly thereafter get a team to embark on a course of training in
administration for our civil servants.
I must say that from my talks
at United Nations Headquarters I gathered the definite impression that the
United Nations is willing to go out of its way to give us assistance. In
fact, many of the items I took up would normally have to go in for the next
year's programme but efforts are being made to see if they can be financed
as an emergency measure from the Special Contingency Fund.
As a result of our efforts we
can say that we have done thus far very well with the United Nations. As you
know, we have already got nearly $1 million from the UN Special Fund for
siltation study and a soil survey study.
Cuba Visit
From New York I went to Cuba. I
did not plan going there, but since it was enroute to Venezuela which I had
intended to visit, I decided to stop in. I wanted to find out what was being
done about the timber proposition and whether it was possible to find an
immediate market for our surplus rice. It was good that I went.
You will remember that a few
months ago three representatives came down here to make a timber survey.
Cuba's imports of timber at the moment amount to about $23 million per year.
You will recall that I mentioned sometime ago that we will be prepared to
consider sympathetically, firstly the granting of a lease to the Cubans on
the same terms and conditions as we grant leases to others, or secondly, to
form a joint company with the Cubans.
The Cuban Government, however,
does not want to take advantage of either of these two proposals. They said
quite frankly to me that these proposals smacked of imperialism. They did
not want in any way to exploit our manpower or material resources. They were
prepared to help as far am they could. They offered to make available over
the next two years a loan to the equivalent of about $8.5 million. This loan
will be repayable over ten years after the project gets underway. The rate
of interest will be 2 percent and payment will be made in timber products.
Technical assistance will be provided if we require it, to help us to work
out the details of such a project.
They have also agreed to
finance the external costs of the first stage hydro electric project at
Tiger Bill which is estimated
to cost about $30 million.
These two projects are going to
be the beginning of the realisation of some of our dreams. As regards the
future development of British Guiana I have two dreams ¾ one based on timber
and the other on bauxite as raw materials. I have in mind two giant
industrial complexes.
Giant Complexes
The first would be based on
wood which covers so much of our territory and which at the moment is lying
idle and in many instances has to be got rid of by burning. Such an
industrial complex based on wood can produce not only sawn lumber but also
pulp, paper, cellulose, charcoal
and many other chemicals which,
as by-products, can be utilised as raw materials for other industries. I
have seen such an industrial complex in Germany. It is only left for us now
to get technical experts to work out in great detail such a project.
The other industrial complex
which I have in mind is the one which will permit of, after the installation
of hydro-electricity, the smelting of our bauxite into aluminium and the
setting up of a whole series of ancillary industries which will utilise pig
aluminium as a raw material. By ancillary industries I mean pre-fabricated
buildings, roofs, pots and pans, motor car blocks and bodies and the whole
range of other articles which are fabricated from aluminium.
The Cuban deal points the way
for payment to be made not in hard cash but by the sale of our own products.
The Cubans have also promised
to give us technical assistance in other fields. I am thinking particularly
of light cigarette tobacco which it is felt can be produced here. With such
technical and financial help, we are now on the threshold of real industrial
development of our country.
Surplus Rice
By the way, the Cubans have
also agreed to purchase any surplus rice which we may have. They have been
purchasing rice from the US at a price higher than we now get from the West
ladies. They are prepared to open their markets for our rice and to give us
the advantage of a reasonable price.
You may wish to know that
during my stay in Cuba I had the pleasure of meeting Dr. Nicholson, the
Acting Director of Medical Services, who was attending a medical conference
in Havana
Venezuelan Mission
In Venezuela I had discussions
with Government official on several questions about economic cooperation
generally between our two countries, about a visit of a combined economic,
technical and commercial mission to British Guiana, about the three fishing
boats recently seized, and about the sale of paddy.
The visit of the mission is
likely to take place soon and it is hoped it will come off at about the same
time as History and Culture Week.
I raised the issue in the
Ministry of External Relations about the fishing boats seized in Venezuelan
waters. Unfortunately, it was not possible for me to see the Minister of
Interior because
of the political crisis which
developed during the last day of my visit there. However, I am told that
there is every hope that the boats will be released.
I have also had discussions to
see if it will be possible to permit of certain courtesies to be extended by
both Governments. In such a case fishing boats which find themselves in
difficulties will not be held up so long as they are not engaged in any
contraband activities.
About the possible sale of
paddy to Venezuela, the Venezuelan authorities are anxious to have trade
relationship developed with British Guiana. But, at the present time, they
are not in need of paddy. They informed me that they will be in a position
by February to say precisely what are their needs with respect t the
importing paddy from outside sources.
Rice Contract
In Trinidad, I had discussions
with Dr. Carl La Corbiniere, Minister of Trade and Industry, on matters
relating to industrial development and incentive legislation for the area. I
took up the question also of an early meeting for the Rice Conference which
is to decide two questions, firstly, the prices to be paid next year, and
secondly, the extension of the contract. As you are no doubt aware, the
contract comes to an end in December 1962 but provision is made for a review
every year to see if it should be extended.
I have returned home feeling a
definite sense of satisfaction ¾ satisfaction that people, even in difficult
positions as the Cubans, are willing to help. I feel a sense of exhilaration
that we are now beginning to get all the loose ends together from which we
can move ahead
Thrilled
In Cuba I felt thrilled and
excited at the generous offer. But what do I find on my return? The same
criticisms and misrepresentations amounting to direct lying, not easing up
in any way, but actually becoming more intense. . . .
Before I arrived in London,
very influential journals such as the Financial Times and the
Observer carried statements, which were forwarded by local
correspondents, that we were taking over the Demerara Bauxite Company. The
gloom with which the local press greeted the announcement of the success of
the electricity talks leads one to suppose that the local press would have
preferred the talks to fail.
I am aware that the press is
violently opposed to the Majority Party which I have the honour of leading.
Considering the interest which the press represent, I do not see anything
wrong with this. But what I consider wrong is the harm which the press is
doing the country as a whole. By all means attack us but do not frustrate
the national aspiration of the Guianese people.
So long as we are in the
Government I ask that an objective rather than an emotional evaluation be
made of all the things which we are pursuing and which we contemplate to do
in the future.
Let us rid ourselves of
emotional thinking. Let us look at the economic realities which today face
not only our country but underdeveloped territories all over the world. Let
us unitedly face these realities objectively and rationally. . . .