st lucia wikileaks cables

SUBJECT: ST. LUCIA BY-ELECTION WON BY SUSPECTED DRUG TRAFFICKER

"56822","3/16/2006 13:38","06BRIDGETOWN469","EmbassyBridgetown","CONFIDENTIAL","","VZCZCXYZ0042PP RUEHWEB

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SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 03/14/2016TAGS: PGOV, PHUM, PINR, PREL, SNAR, KCRM, ST, XL SUBJECT: ST. LUCIA BY-ELECTION WON BY SUSPECTED DRUG TRAFFICKER

REF: 05 BRIDGETOWN 589

Classified By: DCM Mary Ellen T. Gilroy for reasons 1.4 (b) and (d).

1. (C) Summary: The by-election held March 13 to fill a vacant seat in the St. Lucia Parliament was won by anindividual suspected of drug trafficking. Richard Frederick,who ran for the seat as an independent, is currently underinvestigation by U.S. and St. Lucia law enforcementauthorities for involvement in a trafficking operation thatuses St. Lucia as a transshipment point for Colombiancocaine. How much is publicly known in St. Lucia about theseallegations against Frederick is unclear at this time. Theelection result could boost the prospects of the oppositionUnited Workers Party (UWP) in upcoming national elections by

demonstrating that a candidate can defeat thebetter-organized and funded ruling St. Lucia Labor Party.Some observers have taken the fact, however, that the UWPfailed to run a candidate in the by-election as an indicationof disarray within the party. It remains to be seen whetherRichard Frederick will formally join the opposition inParliament or if the allegations against him will complicatematters in the next election. End summary.

----------------------------------New MP a Suspected Drug Trafficker----------------------------------

2. (C) The winner of St. Lucia\'s March 13 by-election,independent candidate Richard Frederick, is a suspected drugtrafficker who is currently under investigation by U.S. andSt. Lucia law enforcement authorities. DEA Bridgetownreports that Frederick is believed to be involved in a trafficking operation that uses St. Lucia as a transshipmentpoint for Colombian cocaine heading for the U.S. and otherdestinations. According to a DEA source, the St. Luciapolice were surprised by Frederick\'s election victory andbelieve he managed to mobilize associates that rank among the more undesirable elements of St. Lucian society to help himwin the race. A St. Lucia newspaper editor told Poloff thatthe impoverished constituency won by Frederick is full of\"bad boys\" who turned out to support their candidate.

----------------------------------How Much is Known about Frederick?----------------------------------

3. (C) During the course of Frederick\'s brief electioncampaign, neither the press nor his opponents raisedquestions about alleged involvement in drug trafficking,indicating that little may be known about this issue outsideof law enforcement circles. Only one media outlet, theCayman Island based Caribbean Net News, included any mentionof Frederick\'s suspected illegal acitivies in its reporting.The St. Lucian press, however, failed to raise the issue atall. Neither did Frederick\'s main opponent in the election,former Attorney General Victor La Corbiniere, who asked onlywhy Frederick did not address law and order issues such asdrugs, illegal weapons, and money laundering during thecampaign. One source told Poloff that nothing more thanrumors are known about Frederick\'s supposed illegalactivities, which no one dares publish or speak aboutpublicly for fear of a libel suit.

-----------------------------An Election Full of Surprises-----------------------------

4. (U) The March 13 by-election held to fill an empty seat inthe St. Lucia Parliament was full of surprises, not the leastof which was the victory of an independent candidate. Theby-election was precipitated by the January resignation fromParliament of Sarah Flood-Beaubrun, who represented a smallthird party, the Organization for National Empowerment (ONE).The MP claimed to have resigned to protest unfair treatment

of her party, but observers believe she hoped to force PrimeMinister Kenny Anthony to call an early national election.The PM declined to take the bait and instead called aby-election to fill the empty seat that represents thecentral district of Castries, the St. Lucian capital.Anthony\'s ruling St. Lucia Labor Party (SLP) proceeded tochoose as its candidate Attorney General Victor LaCorbiniere, who resigned from his position in Government tocampaign for the vacant seat.

5. (U) Note: Elections are not constitutionally due in St.Lucia until early 2007. However, as a condition of hosting

the Cricket World Cup in March 2007, St. Lucia, like otherCaribbean nations, agreed to a moratorium on elections duringthe six months both before and after the sporting event.This means that St. Lucia is likely to hold nationalelections by September 2006. End note.

---------------------------------------Opposition Declines to Contest Election---------------------------------------

6. (U) The opposition United Workers Party initially intendedto run as its candidate in the by-election former PrimeMinister Vaughn Lewis, who dropped out of the race andannounced he would exit electoral politics after he wascriticized by party members as being a poor candidate. TheUWP ultimately chose not to contest the by-election andinstead criticized PM Anthony for subjecting St. Lucia to a costly race for a single parliamentary seat rather than callnational elections. Observers speculated that the opposition, failing to find a suitable candidate for the by-election, opted to sit out the race rather than lose aseat that had traditionally been a UWP stronghold. Such anoutcome would have made the party look particularly weak just

as former PM John Compton, who came out of retirement in 2005to take over the troubled organization, was preparing theopposition for the next elections (reftel).

---------------------------Independent Enters the Race ---------------------------

7. (U) With just two weeks to go before the March 13by-election, Richard Frederick announced that he would run as an independent candidate. The media reported that UWPmembers had pressed party leader John Compton to dubFrederick its official candidate, but Compton declined to do so. After Frederick\'s independent candidacy became official,there was speculation that he was in reality a stalking horsefor the UWP, which could take credit if Frederick won therace but would not look like a loser if he lost to the rulingparty\'s candidate.

------------------------------------Short Campaign and Low Voter Turnout------------------------------------

8. (U) Although the campaign leading up to the by-electionwas brief, the race dominated the St. Lucia media. Thisattention failed, however, to invigorate the public and theMarch 13 poll saw a turnout of only 34 percent of registeredvoters. According to initial results, independent RichardFrederick won with 1,516 votes (47.7 percent) to 1,267 (39.6percent) for SLP candidate Victor La Corbiniere. Third partycandidate Sarah Flood-Beaubrun, who, in a strange twist,opted to run for the seat she had just resigned from, took415 votes (13 percent). As a result of the election, thelineup of the 17-seat St. Lucia Parliament has remainedunchanged with the SLP holding 14 seats to only 1 for theopposition UWP and 2 independent MPs.

------------------------------------Good or Bad News for the Opposition?------------------------------------

9. (U) The victory of an independent candidate may be a mixedblessing for the opposition. While the UWP did not formallywin the race, victorious independent candidate RichardFrederick is a UWP member, a fact that was highlighted duringthe brief election campaign. Some observers have taken hiswinning over SLP candidate Victor La Corbiniere as arepudiation of the ruling party. This may buoy the

opposition as it prepares for elections later this year. The fact, however, that the UWP failed to field a candidate in a constituency that was traditionally a stronghold of the partyhas been seen by some as an indication of continuedorganizational problems that the party will not be able tocorrect before national elections are held. Such a resultwould consign the UWP to three straight election defeats.

------------------What Happens Next?------------------

10. (C) Comment: How the election to Parliament of asuspected drug trafficker will play out in St. Lucia remainsto be seen, as it is unclear at this time how widely knownare the allegations against Richard Frederick. If opposition

leader John Compton knew about the charges of criminalactivity, this may explain why he refused to anoint Frederickas the UWP\'s candidate in the by-election. The fact that the press failed to raise serious questions about Fredericksuggests, however, that either the allegations against himare not well known or that St. Lucians may prefer to simplylook the other way. From a law enforcement perspective,Richard Frederick\'s elevation to Parliamentarian could makethe investigation into his suspected activities moredifficult to pursue. Post will continue to report on thevarious aspects of this situation as they develop.

11. (C) An additional element of the St. Lucia by-election is the impact the result may have on the signing of an Article98 Agreement. Former Attorney General Victor La Corbinierewas the USG\'s main point of contact on this issue within the Government of St. Lucia. PM Anthony could re-appoint him as AG, but considering the various delays already encountered in negotiating an Article 98 Agreement it is likely that theelection shakeup will be a further impediment to concludingan agreement. End comment.KRAMER

"84363","11/3/2006 21:37","06BRIDGETOWN1946","EmbassyBridgetown","CONFIDENTIAL","06BRIDGETOWN469","VZCZCXYZ0001PP RUEHWEB

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STATE FOR WHA/CARSOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 09/22/2016TAGS: PGOV, PINR, ST, XLSUBJECT: ST. LUCIA: RULING PARTY HAS A LEG UP ON A CLOSEELECTION

REF: A. BRIDGETOWN 469

B. BRIDGETOWN 239

Classified By: DCM Mary Ellen T. Gilroy for reasons 1.4(b) and (d).

1. (C) SUMMARY: St. Lucia faces a close race in the upcomingnational elections, which have not yet been called but areexpecteD sometime in December. The opposition party is resting its hopes on the current desire for change apparentamong the populace, while the ruling party is basing its campaign on recent accomplishments and more experiencedcandidates. The results will largely depend on whether thepeople feel only a party turnover can bring the change theydesire. The ruling party seems to have recently regainedmomentum and will likely win a third-term in office. ENDSUMMARY.

-----------------------AN ATMOSPHERE OF CHANGE-----------------------

2. (SBU) Prime Minister of St. Lucia Kenny Anthony will sooncall elections, likely for early December, as he is constitutionally mandated to do by the end of the year. Onceappearing to be a sure win for the ruling party, theelections now appear to be much closer, leaving somepolitical observers unwilling to predict a victor. RichardFrederick\'s victory in the March 2006 by-election for theCastries Central seat gave renewed hope to the oppositionparty and, according to political observers, shook PMAnthony\'s confidence (ref A). The opposition party, theUnited Workers Party (UWP), is interpreting this by-electionas evidence of the people\'s desire for change. Guy Mayers,an opposition candidate, stated that the failure of theruling party to win the March by-election against a last-minute independent candidate illustrates the rulingparty\'s vulnerability. Many compare this atmosphere of change to the elections of 1997, the last time there was amajor power shift.

3. (C) According to Sir John Compton, leader of the UWP andPrime Minister in 1964-79 and 1982-96, the ruling party haslost all credibility by breaking too many promises over thelast nine years. Furthermore, opposition leaders claimpossible corruption in the government, citing suddenincreases in the standard of living of many MPs followingtheir victory in 1997.

-----------THE PLAYERS-----------

4. (C) Although PM Anthony is still the clear leader of theruling St. Lucian Labour Pary (SLP), his popularity has wanedrecently. Because of this trend, he cannot count on his popularity alone and has brought in reinforcements. Dr. Julian Hunte, a former MP, returned from serving as Ambassador to the United Nations to run as an SLP candidate,and Dr. Vaughn Lewis, former Prime Minister and UWP leader,has crossed the aisle to run with the SLP. Also, sevenincumbents are running again, including Ministers PhilipPierre, Felix Finisterre, and Damian Greaves, all verypopular and seen as effective ministers.

5. (C) The jury is still out, however, on the addition ofLewis to the SLP slate. Some believe Lewis provides furthercredibility to SLP because of his doctorate, his leadershipof the Organization of Eastern Caribbean States (OECS) for

fourteen years, and his short stint as Prime Minister in 1996. Other observers disagree, explaining that St. Luciansshy away from voting for losers. Because of Lewis\'s loses in 1997 and 2001, many see Lewis as a loser and believe he willhurt the ruling party\'s chances in the upcoming elections.

6. (C) Having served as Prime Minister for almost 30 years,Compton is a legend in St. Lucian politics. The rest of theUWP candidates, though, are young and inexperienced.Stephenson King is seen as one of the more respected leadersof the party, but lost in 1997 and 2001, tarnishing hisimage. Guy Mayers, another up and coming leader, is a businessman and previous president of the Chamber ofCommerce, but is a first-time candidate and new to the publicsector. In short, the SLP is seen as having a \"much deeperbench\" than the opposition, with both its first and secondtier of leadership showing greater education and experiencethan even the first tier of the UWP. However, Compton stated

that, even with their inexperience, his party will prevailbecause the SLP candidates suffer from a loss of credibilitydue to the corruption and broken promises of the last nineyears.

7. (C) After his victory in the March by-election, many UWPsupporters see Frederick as the new blood of the UWP. Aswith Lewis, though, Frederick is receiving mixed reviews.Two party leaders confirmed that considerable friction existsbehind the scenes between Compton and Frederick. Also,newspaper editor and independent observer Victor Marquisclaims that Frederick has a dark cloud over him because ofhis alleged criminal activities that will hurt his credibility in the election. (NOTE: Marquis confirmed toPolOff Frederick\'s suspected drug and crime involvementreported in reftel A. Marquis explained that his lastlive-in girlfriend of two years was previously Frederick\'sgirlfriend. She confided in Marquis everything she knewabout Frederick\'s questionable activities. Marquis said that he has an alarm on his house and fears what will happen tohim if Frederick learns what he knows. According to Marquis,what is widely known of Frederick\'s criminal behavior is not half of what there is to know. END NOTE.)

8. (C) Another journalist, Timothy Poleon, countered Marquis\'argument by suggesting that Frederick\'s alleged crimeconnections will actually help him in the election.According to Poleon, people are asking why the Prime Ministerdoes not arrest Frederick if the allegations against him are

true? Poleon stated that lack of government action againstFrederick is convincing the populace that the allegations are simply spin and have no basis.

------------------------AN ELECTION WON BY SEATS------------------------

9. (C) When analyzing individual seats, a ruling partyvictory looks likely. Most observers, including independentand opposition figures, pinpoint five seats the SLP is likelyto win: Vieux Fort South (PM Anthony\'s district), Vieux FortNorth, Laborie, Dennery South, and Castries East. Inaddition to these five seats, popular incumbents are runningin another four districts, giving the SLP a good chance towin at least nine of 17 seats. The only seat currently goingto the UWP with confidence is Compton\'s district, MicoudNorth.

------------------SIGNS TO WATCH FOR ------------------

11. (SBU) In campaigning, SLP leaders have sought to paradethe current government\'s successes during its nine-yeartenure, particularly those in infrastructure development.Their goal is to remind voters of the increased electricityproduction and distribution throughout the island, thenewly-built prison, the creation of universal health care and universal secondary education, and the expansion of telecommunications, roads, and water supply. SLP leaderswill also point out that the opposition has yet to providesolutions to areas where they claim change is needed: crimeand the economy. Much of the election will rest on theability of the SLP to shore up its credibility, while the UWPattempts to rip it down. This battle will play a significantrole in the elections.

12. (C) Another important factor is campaign financing.Because of the relatively small size of Saint Lucia\'seconomy, campaign contributions go a long way, particularlywhen politicians pass the funds directly to members of theelectorate (ref B). For example, party t-shirts wrappedaround money are common at campaign rallies, as are politicians buying groceries or sponsoring house repairs. In private conversations with PolOff, various oppositionfigures, including Compton, emphasized that they are unsurehow they will counter the ruling party\'s ability to obtain

and use campaign funds.

13. (SBU) The most flashy sign of support is attendance atcampaign rallies. These rallies essentially play out likeparties -- the more fun the party and more popular theentertainers, the larger the crowd. Larger crowds mean morepeople wearing t-shirts in the sponsoring party\'s color, as well as more goodies, such as flags and banners, handed outand popping up in shop windows and automobiles. If

successful, this can lead to a band wagon mentality wherepeople begin supporting the \"more popular\" party. Early in the campaign, rallies put on by either party were equallywell attended. However, according to observers, SLP red isstarting to appear in more windows and on more cars than UWPyellow, as attendance at SLP rallies continues to increase.

14. (C) Finally, Marquis projected that Compton will bow outof the race if he thinks his party will lose the elections.According to Marquis, Compton will not let himself be a standing opposition MP because the persecution he would facefrom the ruling party would damage his reputation and legacy.Although Compton did not directly confirm this, he

emphasized his desire for a strong hold on power by statinghe would not be happy with anything less than 12 seats.According to Compton, SLP supporters would be in the streetsrallying against him if he wins a narrow majority.

-------COMMENT-------

15. (C) Although there are many who are ready for change inSt. Lucia, particularly with the worsening crime and economicsituations, the momentum is not yet strong enough to forcethe SLP out of office. The UWP cannot match the breadth ofexperience found in the SLP camp. The strongest UWP figureis its leader Compton; he is the glue holding the partytogether. Currently, there are no other obvious candidatesto lead the UWP which is why the party asked Compton to comeout of retirement. However, Compton is a polarizing figure.As Prime Minister, Compton often awarded party supporterswith appointments and scholarships, while ostracizing SLPsupporters. Because of this, Compton is despised by his opponents as much as he is revered by his supporters.

16. (C) One of the most interesting characters to come out of this election is Frederick, who is quickly positioning

himself as a future UWP leader. Frederick is popular,charismatic, wealthy, has had a successful career as a policeofficer and lawyer, and, most importantly, is viewed as politically powerful because of his surprising victory in the March by-election. His possible criminal ties, however, makehis rise to power worrisome. It is unlikely that Frederickwill lose his seat against SLP\'s Lewis, and another victoryin his district in such a short time will solidy his power in the UWP, regardless of the general outcome of the elections.

17. (C) How this election will affect U.S. interests in international relations, crime, and the economy in St. Luciawill be reported in septel.OURISMAN


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DEPARTMENT FOR WHA/CARSOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 09/29/2016TAGS: PGOV, PREL, ECON, EPET, EINV, ENRG, SOCI, KCRM, VE,CH, TW, CU, XLSUBJECT: U.S. INTERESTS IN ST. LUCIAN ELECTIONS: FOREIGNRELATIONS, CRIME, AND THE ECONOMY


B. BRIDGETOWN 1743C. BRIDGETOWN 700

Classified By: DCM Mary Ellen T. Gilroy for reasons 1.4(b) and (d)

1. (C) SUMMARY: The most pertinent issues for the UnitedStates in the upcoming St. Lucian elections are foreignrelations, crime, and the economy. The ruling St. LucianLabor Party (SLP) is expected to hold on to power, andtherefore, significant change in St. Lucia\'s policies isunlikely. However, if the opposition United Workers Party(UWP) were to pull off a victory, the status quo, especiallyin international relations, could shift because of theopposition party\'s support for the United States anddiscomfort with strong ties to Venezuela and Cuba. The

opposition party may also return diplomatic recognition fromChina to Taiwan. Although the opposition party currentlyspeaks of changes in economic policy, including a return tothe banana industry, it is unlikely that an oppositionvictory would result in dramatic changes in the government\'sapproach to managing the economy or law enforcement. ENDSUMMARY.

2. (C) St. Lucia is preparing for what will likely be a closeelection (ref A). The outcome of the election could impactthe government\'s policy direction in three key areas of interest to the United States: foreign relations, crime, andthe economy. Two of these three, crime and the economy, arealso major campaign issues for both parties. However, thetwo parties more commonly attack each other\'s lack of plansrather than presenting their own ideas on these matters. In private discussions, however, party members spoke morecandidly concerning their plans if their respective partywins the elections.

-----------------FOREIGN RELATIONS-----------------

3. (C) The starkest difference between the two parties fallsin the realm of foreign relations. The ruling St. LucianLabour Party (SLP) shows no signs of making any dramaticchanges to its current policies. For example, St. Luciacontinues to progress toward an agreement with Venezuela onPetrocaribe (ref B). PM Kenny Anthony continues to deepenhis friendship with Cuba, stating at the recent Non-AlignedMovement summit that Cuba is a \"majestic example\" ofinternational cooperation. He also saluted the \"humanitarianimpulse\" of President Fidel Castro. There may be some subtlecourse corrections after an elections victory. Variousstanding ministers stated that Senator Petrus Compton willnot continue as Minister for External Affairs, InternationalTrade, and Civil Aviation. Although no officials wouldcomment in detail about a possible, post-election cabinetreshuffle, Dr. Julian Hunte, former Ambassador to the UnitedNations, and Dr. Vaughn Lewis, former Prime Minister and former director of the Organization of Eastern CaribbeanStates (OECS), are both likely candidates to replace FM Compton.

4. (C) On the other hand, pro-U.S. and anti-Venezuela/Cubaattitudes are widespread among current United Workers Party(UWP) leadership. Various UWP figures clearly expressed

their dissatisfaction with Petrocaribe, stating that a UWPgovernment would move away from the agreement (ref B). TheUWP is nervous that deepening relations with Venezuela andCuba will harm St. Lucian relations with the United States, a relationship they believe will yield more long-term benefits.Leonard \'Spider\' Montoute, a UWP candidate, stated that

choosing the United States over Venezuela and Cuba is worthrocking the boat with St. Lucia\'s CARICOM neighbors.

5. (C) On September 5, PM Anthony publicly called on formerPrime Minister and senior UWP leader Sir John Compton to admit whether the UWP has promised that the party willreestablish relations with Taiwan if it wins the election.Compton responded by saying the party will disclose itspolicies after it is elected. Clarifying his views in a private discussion, Compton told PolOff that a UWP governmentshould not be the type of government that easily shifts

recognition of countries. Instead, the government shouldonly shift national recognition under circumstances of graveinterference within internal affairs. Conversations withvarious party leaders suggest that many UWP members believeChina interference is reaching that \"grave\" level. MichaelFlood, a UWP Senator, stated that a UWP government would mostcertainly shift recognition from China to Taiwan, thatCompton has stated this in party meetings, and that this isalready in the party\'s Manifesto. (Note: Flood is a UWPstalwart and currently serves as an administrative manager of the party. However, it was clear in meetings with Floodthat, although he knows and is willing to share muchbehind-the-scenes information, he sometimes speaks withouthaving all his facts straight. End note.)

6. (C) When asked about possible ministers in a UWP government, multiple UWP leaders pointed to Keith St. Amy as the probable Minister for External Affairs, InternationalTrade, and Civil Aviation. St. Amy is a retired careerdiplomat and former Ambassador. Even in the event of a UWPvictory, it is unlikely that St. Amy will win in hisdistrict, Laborie, because of its tradition as a SLPstronghold (ref A). However, if the UWP wins the elections,St. Amy could be appointed as Minister of External Affairs if first appointed as a Senator by his party.

-----CRIME-----

7. (C) The government is currently under attack for anincomplete response to the increase in violent crime (ref C). In both 2004 and 2005, Saint Lucia had 37 homicides on

record. This year, St. Lucia has already recorded 28homicides. Rather than presenting solutions to combat crime,government officials glossed over the issue with the argumentthat the opposition party would not be able to handle it anybetter. Although the government has increased policeresources, including numbers of officers, police stations,vehicles, and forensic equipment, ruling party officials wereunable to provide other potential solutions to fightingcrime. Two officials, Minister for Commerce and TourismPhilip Pierre and Press Secretary Earl Bousquet, providedexcuses, stating that police are unable to stop certain typesof offenses, such as crimes of passion. These officialsstated that if a man learns of his wife\'s infidelity andkills her for it, there is no way the police can know of andstop such a crime before it occurs. Similarly, theseofficials explained that, because of St. Lucia\'s smallgeographic size and population, everyone is directly linkedtogether, resulting in the police being unwilling to arrestdrug dealers or other criminals from their neighborhoodsbecause of mutual personal or family connections.

8. (C) Like the ruling party, the UWP has provided little in terms of plans to counter the increase in serious crimes.Compton proposed subsidizing trade schools that would educatemore young people and lower unemployment, but the rulingparty currently has a similar program in place. Guy Mayers,a UWP candidate, recommended a reversal of the government\'scurrent gun control program. Mayers stated that thegovernment currently pays ECD 2500 (approximately USD 926) to anyone surrending a firearm to the police. However,according to Mayers, firearms are available in Martinique for only ECD 400-500 (USD 148-185). Mayers explained that thishas actually increased the flow of firearms from Martiniqueto St. Lucia. In private discussions, it also seemed clearthat the UWP is still unsure whom it would appoint asMinister for Home Affairs and Internal Security if it were to win the election. This ministerial seat will prove animportant position in 2007 as it will inherit both the crimeproblem and security issues related to Cricket World Cup.

-----------THE ECONOMY-----------

9. (C) In recent years, the government has had success in

shifting the economy from banana-based to tourism-based.According to the Caribbean Development Bank, St. Luciaenjoyed 4 percent economic growth in 2004 and 5 percent in

2005, with the tourism industry growing 5.9 percent in 2004and 6.3 percent in 2005. Also, although unemployment is still high, it dropped from 21 percent in 2004 to 17.5percent in the second quarter of 2005. Both ruling party andopposition leaders credit the SLP for fostering the tourismindustry. As such, the ruling party plans to continue thisapproach with no thought of returning to agriculture. Pierreand Minister for Communications and Works Felix Finisterreboth emphasized that the banana industry is dead and thereare no plans to resurrect it.

10. (C) On the other hand, the opposition party believes thatsubsidies can revive the banana industry to a respectablelevel, although not to its historic peak. Compton statedthat the ruling party\'s current policy is not privatizationbut rather abandonment and that it is important to help thebanana industry return to at least a functioning level. UWPofficials believe that the current tourism economy does nottrickle down as efficiently as agriculture did and, therefore, plan to revive bananas while also diversifyingagriculture and focusing on value-added agricultural productsthat may have a foreign market.

-------COMMENT-------

11. (C) Although a victory in the next election by the rulingSLP is increasingly likely, the election will be close. Avictory by the SLP will mean continuity in its policies, evenwith an impending cabinet reshuffle. However, if theopposition takes the reins of government in the upcomingelections, the biggest change would come in foreignrelations. The UWP has consistently backed a pro-U.S.foreign policy. It is probable that the UWP would move awayfrom Venezuela and Cuba and more toward a U.S.-centeredpolicy. UWP leaders alluded to PolOff, however, that the UWP will expect an increase of U.S. foreign aid in return forsuch diplomatic support. Although not certain, it is alsopossible that the UWP may switch diplomatic recognition fromChina back to Taiwan.

12. (C) In terms of crime and the economy, SLP leaders arecorrect in stating that UWP leaders will be working with the

same constraints the SLP currently faces. Because of this,it is doubtful that either party would be able to provide a quick solution to crime, nor would either party movedrastically away from the tourism industry, regardless of UWP rhetoric.OURISMAN


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DEPT FOR WHA/CAR, INR/ISOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 11/16/2016TAGS: PINR, PREL, TW, SL, XL SUBJECT: TAIWAN INVOLVEMENT IN ST. LUCIAN ELECTIONSSUSPECTED, BUT NO EVIDENCE (C-AL6-01675)


B. STATE 175636


1. (C) SUMMARY: Although many observers believe that Taiwanis supporting the opposition United Workers Party (UWP) inthe December 11 St. Lucian elections, there is littleevidence because of the lack of transparency in campaignfinance. PM Anthony has expressed concern that Taiwan willprovide funds through its Embassy in St. Kitts and Nevis,citing as evidence opposition leader Sir John Compton\'s visitwith Taiwan\'s president in St. Vincent last year. A UWPfigure confirmed that the purpose of Compton\'s meeting withTaiwan\'s president was to negotiate campaign assistance. END SUMMARY.

2. (SBU) A number of observers believe that Taiwan issupporting the opposition United Workers Party in theupcoming St. Lucian elections to be held December 11.However, there is little evidence supporting this suspicionbecause there are no laws for or norms of campaign financedisclosure in the Eastern Caribbean. Also, because of thesmall populations in Eastern Caribbean states, there is little political will to require transparency. Citizens arehesitant to inform their neighbors how much they are donatingand to which parties.

3. (U) On September 28, 2005, UWP leader and former St. LuciaPrime Minister Sir John Compton met with President of TaiwanChen Shui-Bian in St. Vincent and the Grenadines, whichCompton denied until St. Lucia Prime Minister Kenny Anthonyprovided evidence of the trip. The ruling St, Lucia LabourParty (SLP) accused Compton of meeting with President Chen to request support for the upcoming elections. PM Anthony alsoexpressed concern that the Taiwan Embassy in St. Kitts andNevis may attempt to funnel money to the UWP campaign.

4. (C) On a November 13 telcon with PolOff, UWP SenatorMichael Flood admitted that Compton negotiated with Taiwanconcerning campaign contributions during his trip to St. Vincent more than a year ago, but claimed that the UWP hasnot received any funding from Taiwan because the governmenthas blocked all diplomatic sources of funding. Flood did not discuss private or corporate sources of contributions fromTaiwan. (Note: Although such a policy shift seems unlikely,Flood stated adamantly on September 19 that the UWP wouldreverse diplomatic recognition from China back to Taiwan ifvictorious in the upcoming elections (ref A). However, inthe November 13 telcon with PolOff, Flood backed away fromthese statements, suggesting that the UWP will reevaluate its relationship with the two Chinas and do what is in the bestinterest of St. Lucian foreign policy. End Note.)

5. (C) Peter Wickham, political scientist, pollster, and consultant to the SLP, said in a private conversation withPolOff on September 15 that Taiwan is likely contributing to the UWP and may even be contributing to both parties to maximize influence in the government. He emphasized,however, that this is just conjecture because, even as a consultant, he has not seen any details concerning campaigndonations.

6. (C) COMMENT: Although Flood insisted that the UWP has not received \"a single cent\" from Taiwan, PolOff\'s conversations

with the UWP senator tend to veer into requests for USGdonations to the UWP campaign chest. Thus, partisans\'testimony that Taiwan has not been involved is unpersuasive.Because of his role as an outside consultant to the SLP andhis long-term involvement with Caribbean politics, Wickham\'sconjecture that Taiwan is involved with the UWP and possiblycontributing to both parties is much more believable, if still unproven. In any case, the lack of accountability forcampaign funds results in all statements being speculative,particularly because those who could speak authoritativelyrefuse to do so to protect their sources of support.OURISMAN

SUBJECT: ST. LUCIA ELECTIONS DECEMBER 11; COMPETINGPOLLSTERS CONFLICT IN PREDICTING VICTORY

===============

"86232","11/17/2006 21:24","06BRIDGETOWN2027","EmbassyBridgetown","CONFIDENTIAL","06BRIDGETOWN1946","VZCZCXYZ0000OO RUEHWEB

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E.O. 12958: DECL: 11/17/2016TAGS: PGOV, PREL, PINR, ST, XLSUBJECT: ST. LUCIA ELECTIONS DECEMBER 11; COMPETINGPOLLSTERS CONFLICT IN PREDICTING VICTORY

REF: BRIDGETOWN 1946


1. (C) SUMMARY: Prime Minister Anthony announced that St.Lucian elections will be held on December 11. Two key pollshave predicted conflicting outcomes for the elections. Thetrack record of the pollster predicting that the ruling partywill retain its majority in Parliament seems to be the morereliable. END SUMMARY.

2. (U) On November 16, St. Lucia\'s PM Kenny Anthony announcedthat parliamentary elections will be held December 11, 2006.If PM Anthony\'s St. Lucian Labour Party (SLP) wins, it willmean a precedent-making third term for the ruling party.

Previous to its current administration (1997-present), theSLP held power from 1979-82. PM Anthony pushed the date forthis election to the limit: constitutionally, electionsshould be held every five years. The last elections tookplace December 3, 2001.

Dueling Pollsters-----------------

3. (U) Two polls, financed respectively by the two majorpolitical parties, reached contradictory predictions of theoutcome of the upcoming elections. The Caribbean DevelopmentResearch Services, Inc. (CADRES), retained by the ruling St.Lucian Labour Party (SLP), predicted an SLP victory.According to the CADRES poll conducted in October 2006, 34percent of those surveyed preferred the SLP, while 28 percentsupported the opposition United Workers Party (UWP), with a margin of error of 5 percent at the national level. The polling results of an American firm hired by the UWP showedthat the challengers were ahead in 11 of 17 districts, withtwo more leaning toward the UWP.

4. (U) In the CADRES poll, 37 percent of those surveyedrefused to say which party they support and were labeled\"uncertain voters.\" To bolster its prediction of an SLPvictory, CADRES noted that, when comparing this year\'s datato that of a November 2005 survey, voters\' references reflecta 10 percent upswing in favor of the SLP against an 8 percentdrop in UWP popularity. Furthermore, 29 percent of the\"uncertain voters\" placed greater confidence in the SLP to lead St. Lucia, while 18 percent were more confident in theUWP\'s ability. Finally, those surveyed were asked theirpreferred choice for Prime Minister, with 47 percent choosingSLP leader and standing Prime Minister Anthony, while only 29 percent supported veteran UWP leader (and former PrimeMinister, 1964-79 and 1982-96) Sir John Compton. Thisoutcome is a notable change from the 2005 data in which only39 percent preferred PM Anthony to 40 percent for Compton.To date, CADRES claims to have achieved 100 percent accuracyin pre-election polling in the Eastern Caribbean.

5. (C) The UWP hired an American firm to conduct a poll inlate October 2006. Although post has not yet received a copyof the results, a UWP figure reported to PolOff that the methodology of this poll focused more on individual districtsthan the CADRES poll. According to the UWP source, theresults show that the UWP is clearly ahead in 11 districts,the SLP is ahead in four, with two seats too close to call,

but likely to go to the UWP. The UWP-funded poll resultsalso indicated a near dead heat in voter preference for primeminister, with Compton ahead of Anthony by just one or twopoints.

Polling Challenges------------------

6. (C) Political consultant Peter Wickham, head of CADRES,explained to PolOff why district polling tends to beunreliable in Eastern Caribbean islands. According toWickham, it is unwise to place confidence in results based on district seats because of the difficulty in surveying an appropriate sample size. Wickham explained that to haveaccurate district data, a sample size of roughly 1000 voterswould have to be surveyed in each district, which ischallenging in the Eastern Caribbean for two reasons.Because the population of each district is small, too large a sample results in oversampling of the necessary clusters.Second, obtaining accurate results from that many people isneither culturally nor logistically feasible (NFI). Therefore, although elections are won by individual district

results, survey data attempting to predict outcomes bydistrict are unreliable, according to Wickham. He furtherstated that, from his extensive experience as a Caribbeanpollster, district polling is not necessary because nationalpolling trends commonly reflect district results. Couplinghis statistical knowledge with his personal observations ofthe St. Lucia campaign, Wickham predicts that the UWP willgain a couple seats, but that the SLP will retain itsmajority--currently 13 of 17 seats.

Comment-------

7. (C) CADRES\'s statistical methodology uses formulas thefirm developed to account for unique characteristics of Eastern Caribbean populations. Wickham credits his \"100percent success rate\" at calling elections to this speciallytailored methodology. Three weeks away from election day,CADRES\'s prediction of an SLP victory seems sound and isconsistent with post\'s analysis (reftel). Furthermore,general momentum, as seen in the press, at political rallies,and in the form of banners and posters around the capitalCastries, appears to reflect the ruling party\'s strongerposition.OURISMAN

"89174","12/12/2006 16:09","06BRIDGETOWN2180","Embassy Bridgetown","UNCLASSIFIED//FOROFFICIAL USE ONLY","06BRIDGETOWN1946","VZCZCXRO2926OO RUEHGRDE RUEHWN #2180/01 3461609ZNR UUUUU ZZHO 121609Z DEC 06FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC IMMEDIATE 3890INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITYRUEHCV/AMEMBASSY CARACAS 1576RUEHCV/USDAO CARACAS VERUMIAAA/HQ USSOUTHCOM J2 MIAMI FLRUMIAAA/HQ USSOUTHCOM J5 MIAMI FL","UNCLAS SECTION 01 OF 02 BRIDGETOWN 002180

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E.O. 12958: N/ATAGS: PGOV, PREL, PHUM, PINR, ECON, KCRM, ST, XL SUBJECT: OCTOGENARIAN SIR JOHN COMPTON RETURNED TO THE HELM IN ST.LUCIA; UWP WINS 11 OF 17 SEATS IN UPSET


SLP Voted Out of Office-----------------------

1. (U) The opposition United Workers Party (UWP) unexpectedlydominated the December 11 St. Lucia parliamentary elections with an11-6 win. This electoral upset returns 80-year-old Sir John Comptonto the Prime Minister\'s seat for his seventh term in the position(Compton previously served 1964-79, and 1982-96). Sir John had comeout of retirement last year to lead the UWP in electoralpreparations. (Note: Press accounts give various ages for Compton;post records show his DOB as May 1, 1926. End Note.)

2. (SBU) St. Lucians are already asking whether Compton will servethe full five years as Prime Minister. A common rumor is that hewill serve for two years and then hand the reins over. However,Compton has emphasized to the press that his doctors approved hisreturn to public office and that his mind is still very sharp.

3. (U) Two-term Prime Minister and head of the St. Lucian LabourParty (SLP) Kenny Anthony retained his seat in parliament by a thinmargin but lost his bid for a third term. Outgoing PM Anthonyconceded the election the evening of December 11, attributing theSLP\'s loss to the \"mud and innuendo\" thrown at his party. Former UN Ambassador and SLP leader Julian Hunte was defeated in the race torepresent Gros Islet.

4. (U) Perhaps the most watched constituency was Castries Central,where attorney Richard Frederick had won a three-way by-election asan independent candidate in March. Running for re-election on theUWP slate, Frederick trounced Dr. Vaughan Lewis, who served as PrimeMinister for the UWP for one year (1996-97) but crossed the aisle tothe SLP for this election after a falling out with party leaderCompton.

5. (U) Members of the new House of Assembly:

United Workers Party (UWP) Victors/District-------------------------------------------

Sir John Compton Micoud NorthRufus Bousquet ChoiseulEdmund Estephane Dennery SouthRichard Frederick (Incumbent) Castries CentralArsene James (Incumbent) Micoud SouthEzekial Joseph BabonneauGuy Joseph Castries South East Stephenson King Castries NorthKeith Mondesir Anse La Raye/CanariesLeonard \"Spider\" Montoute Gros IsletMarcus Nicholas (Incumbent) Dennery North

St. Lucia Labour Party (SLP) Seats/District-------------------------------------------Kenny Anthony (Incumbent) Vieux Fort SouthAlva Baptiste LaborieHarold Dalsen SoufriereMoses Jn Baptiste Vieux Fort NorthRobert Lewis Castries SouthPhillip Pierre (Incumbent) Castries East

Apparently Smoothly-Run Elections---------------------------------

6. (U) Preliminary reports pointed to an orderly election processand high turnout. Small observer teams from the Organization ofAmerican States (OAS) and the Caribbean Community (CARICOM) were

present for the December 11 St. Lucia polls. In a joint pressconference on December 12 both observer missions commended the St.Lucian authorities on the conduct of the elections and said theywere \"very pleased\" with the courtesies extended to the observers.A few irregularities had occurred, but none so serious as to influence the results. No reports of election-related violence wereaired.

Voting for Change-----------------

7. (SBU) Most observers recognized that one of the major themes ofthis election was the need for change, many likening the atmospheresurrounding the 2006 polls to that of 1997 when the St. Lucian LaborParty (SLP) took power (reftel). Few realized that coming change

BRIDGETOWN 00002180 002 OF 002

would be so clear-cut. Most analysts, observers, and St. Luciancitizens predicted a narrow SLP victory. Consultant Bill Johnson, a pollster for Jamaica\'s ruling People\'s National Party and theGleaner newspaper, had predicted that Anthony\'s party wouldconvincingly capture 14 seats. The Barbados-based CaribbeanDevelopment Research Services (CADRES) of political scientist PeterWickham predicted a ruling party victory, but with a reducedmajority. Prior to the election, one UWP supporter citeddisaffection with the ruling party and the appeal to St. Lucianyouth of political newcomer Richard Frederick as reasons to expectthe vote for change that has now been registered.

8. (U) Post will provide further analysis when our two electionobservers return from St. Lucia.

GILROY


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E.O. 12958: DECL: 12/14/2016TAGS: PGOV, PREL, PHUM, PINR, ECON, EAGR, EPET, SNAR, ST,VE, CU, XLSUBJECT: ST. LUCIAN ELECTIONS: THE WHO, THE HOW, AND THE WHAT\'S NEXT



1. (C) SUMMARY: Sir John Compton was sworn in as PrimeMinister of St. Lucia on December 15 after his United WorkersParty (UWP) defeated the ruling St. Lucia Labor Party (SLP)in December 11 elections. Leonard \"Spider\" Montoute hasbeen selected to become Deputy PM. Reasons for oppositionUWP victory include mismanagement and cost overruns ingovernment projects and an unexpected increase in the numbersof voters turning out to support change in the form of theopposition. PM Compton\'s cabinet, to be officially announcedand sworn in on December 19, will likely feature severalinexperienced, first-time public servants. UWP prioritiesinclude campaign finance reform, revising the new labor code,and revitalizing agriculture. It also seems likely that UWPwill distance itself from PetroCaribe and other Venezuelaninitiatives. END SUMMARY.

THE PLAYERS: A SPIDER AND SOME NEWCOMERS----------------------------------------

2. (SBU) On December 15, veteran politician Sir John Comptonwas sworn in as Prime Minister of St. Lucia following theofficial ballot count and certification of results. Leonard\"Spider\" Montoute was given the role of Deputy PrimeMinister. Montoute is a former athlete, educator, andcommunity servant who has emerged as an astute politician.In his first attempt at running for office in 2001, Montouteonly lost by 273 votes against then Deputy PM Mario Michel.In the December 11 election, he convincingly defeated formerUN Ambassador Julian Hunte by 1,024 votes. During the 2006campaign, Montoute served as deputy UWP leader, becomingCompton\'s right-hand man. He studied both in Germany and the United States, earning a degree in Sports Medicine at NewJersey\'s Kean University.

3. (SBU) The new cabinet is scheduled to be sworn in on December 19, and current projections show only two previouscabinet members and four previous members of parliament.Although changes may occur in the interim, current plans arefor PM Compton to handle the Finance and Physical Planningportfolios, Rufus Bousquet to become either Foreign Ministeror Tourism Minister, and Keith Mondesir to assume the job of Minister of National Security and Home Affairs. An AttorneyGeneral is still to be determined. Post will report the final cabinet appointments after they are made official.

4. (C) Although Central Castries victor Richard Frederick wasnot appointed Deputy PM as many expected, he is currentlyslated to take the position of Minister of Housing, UrbanRenewal, and Local Governance. More on Frederick\'sbackground and intra-party manuevering will be reportedseptel.

THE VICTORY: HOW UWP WON------------------------

5. (U) A narrow ruling party victory with a strongeropposition had been the general prediction by observers,political scientists, and the general public going into theelections. The St. Lucia Labour Party (SLP) was favored inthree reputable polls, two by Jamaica\'s Bill Johnson and one by Barbados-based Peter Wickham (reftel). It was alsoestimated that the SLP spent two times as much on advertisingas the UWP did. After the UWP upset, many commented that

the UWP won because the SLP shot itself in the foot.

6. (C) Montoute summarized for PolOff the reasons for the UWP victory. According to Deputy PM-select, the SLP governmentgot arrogant, mismanaging a number of projects and then notexplaining its actions to satisfaction of the public. As an example, Montoute cited the manager of the NationalConservation Authority (NCA) who used NCA-paid workers tostaff his private restaurants. He also pointed to the manycost overruns in public projects, such as various roadconstruction projects in preparation for Cricket World Cup.In addition to mismanagement and cost overruns, Montouteclaimed that the voters were tired of the deterioratingsecurity situation in St. Lucia and the increasingly unequaldistribution of wealth. Montoute\'s comments parallel thegeneral sentiment of voters with whom PolOff spoke.

7. (U) Another important factor in the opposition victory was the increased number of voters who came out to support theUWP. The SLP not only retained its votes from the 2001election, but actually gained votes: 34,142 votes in 2001and 35,830 votes in 2006. However, the UWP garnered a walloping 15,000 more votes in 2006: from 23,095 votes in2001 to 38,212 in 2006. This same dynamic was reflected inindividual races. For example, popular SLP minister FelixFinisterre received 2,333 votes in 2001 and 2,510 in 2006,but lost his seat because the turnout of opposition votersgave his opponent even more votes. Journalist Rick Waynereflected on television that many voters intended to vote UWP to strengthen the opposition, but so many did so that theopposition triumphed.

8. (U) Other factors working against the SLP campaign includethe laying off of over 100 employees at the Sandals resort in November and the ensuing protest at Sandals\' gates, two murders less than a week before the election, and an increasein traffic congestion due to road construction the week priorto the election. Also, Wickham observed in an interview thatpublishing Johnson\'s poll results two days before theelection actually hurt the SLP by making party supporterscomplacent about what seemed to be an impending victory.

THE PLAN: FIRST UNDERTAKINGS OF THE NEW GOVERNMENT--------------------------------------------- -----

9. (C) Prior to and immediately following the elections, PMCompton made it clear that he will make campaign financereform one of his first priorities. In a private

conversation, Montoute informed PolOff that, on December 14,PM Compton again raised this plan in a party meeting, statingthat he was happy that former PM Kenny Anthony had accusedthe UWP campaign of accepting drug money because he can nowpoint to opposition members and say they have to support thereform legislation because of their dissatisfaction with thecampaign\'s funding.

10. (C) Montoute also confirmed that two items of the formergovernment\'s unfinished business will likely be reversed.First, according to Montoute, Compton has already declaredthat the new Labour Code, which was passed on November 13 but has yet to be promulgated, will \"go back to the drafters\" forrevisions. Second, when asked about Petrocaribe, which St.Lucia has not yet officially signed, Montoute predicted thatSt. Lucia \"will not be part of Chavez\'s game.\" Montoutecharacterized Hugo Chavez as the next Fidel Castro, notingthat St. Lucia \"is not interested in Chavez\'s personal ego,but only interested in its national development.\"

11. (U) Future priorities for the new UWP government alsoinclude decreasing crime by increasing youth trainingprograms and introducing wider agricultural diversification.Revitalizing the agricultural sector is one of the chiefpriorities for the government.

COMMENT: THINGS NOT AS EASY AS THEY SEEM ----------------------------------------

12. (SBU) Although the clear-cut opposition victory surprisedmany St. Lucians as well as outside observers, in manyrespects the new government still faces an uphill battle.For example, the 11-6 win came with only 51.6 per cent of the popular vote. Also, the UWP is bringing in a relativelyinexperienced team to enact and implement its policies. Ofthe 11 parliamentary victors, five have never held publicoffice (Montoute, Estephane, Ezekial Joseph, Guy Joseph, andMondesir), and three (Estephane, E.Joseph, and G.Joseph) werecontesting an election for the first time.

13. (C) In terms of foreign policy, the new government\'saversion to pro-Cuba and pro-Venezuela policies typical ofEastern Caribbean governments will prove a welcome change.However, the new St. Lucia government presents a potentialheadache to the United States as well: the ambitious andpopular attorney Richard Frederick, a prominent newcomerthought to have ties to drug traffickers and other criminalelements, reportedly financed many of his UWP colleagues

campaigns. Post will report on the installation of the UWPcabinet and Frederick\'s new role septel.OURISMAN


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E.O. 12958: DECL: 12/19/2016TAGS: PGOV, PREL, PINR, ASEC, ST, XLSUBJECT: NEW ST. LUCIAN CABINET: MOSTLY QUALIFIED, BUT...



1. (C) SUMMARY: Prime Minister Sir John Compton\'s new cabinetwas sworn in on December 19. Although the UWP pickedappropriately prepared candidates for most ministries, itseems the Foreign Minister and Minister for Home Affairs andNational Security are surpringly inexperienced for theirpositions. Arguably, these two ministries will prove mostcrucial in U.S.-St. Lucian relations. Also, Home Affairs,with its authority over the police and security forces, willprove key in preparations for Cricket World Cup and curbingthe rising crime problem. It is likely that these twoministers are placeholders and that PM Compton will prove the prime actor behind these ministries. See paragraphs 4, 5,and 16 for details on these two appointments. END SUMMARY.

2. (U) On December 19, the newly elected United Workers Party(UWP) government swore in its cabinet ministers, completingthe new government\'s formation. The new cabinet includes all 11 UWP members of Parliament, three of the six defeated UWP

candidates, and two new faces. Sketches of the appointeesappear below:

Prime Minister and Minister of Finance: Sir John Compton

3. (C) PM Compton is no stranger to St. Lucian politics,having already served as Prime Minister for almost 30 years(1964-79, 1982-96). In his previous administration, PM Compton was infamous for being an authoritarian manager ofall aspects of government affairs. Former UWP campaignmanager and current editor for the Voice newspaper VictorMarquis stated that Compton\'s power as PM was the closestthing to \"god-like\" he had ever seen. As an example, Marquistold of an incident when his home was to be auctioned becausehe was behind on payments. Marquis mentioned this in a meeting with then-PM Compton, who picked up the phone andsaid, \"Marquis\'s house is to be auctioned tomorrow. Put a stop to it.\" As a result, Marquis still lives in that housetoday. There is no evidence that PM Compton\'s managementstyle--characterized by some as dictatorial andmicromanaging--will be any different in this currentincarnation.

Minister for External Affairs, International FinancialServices, Information, and Broadcasting: Rufus Bousquet

4. (C) Bousquet served in Parliament from 1992-97 and as ajunior minister at the Ministry of Trade during that period.He has business niches in the tourism and financial servicessectors. However, it does not appear that he has anyexperience that would qualify him to be Foreign Minister.Prior to the elections, UWP candidate Stephenson Kingcommented that, if victorious, Compton would likely serve as PM, Finance Minister, and Foreign Minister. It is possiblethat Bousquet is a puppet minister with PM Comptoncontrolling the strings. Senator Guy Mayers, a major playerin the UWP, admitted that he did not know Bousquet\'sbackground and that the decision to appoint him to ExternalAffairs was, \"a matter of finding somewhere he can serve.\"

Minister for Home Affairs and National Security: Dr. KeithMondesir

5. (C) Mondesir was an optometrist in Canada for 22 years,but was charged with violating the Personal HealthInformation Act when he sold contact information for almost16,000 patients to LensCrafters International. (NOTE: Thisinformation is a matter of Canadian public record and

available on the Internet. End Note.) He appears to have no background in national security or police matters. When thenew Minister for Social Transformation \"Spider\" Montouteinformed PolOff of Mondesir\'s appointment to the HomeAffairs, which directs the police and security forces, healso stated that Compton will be watching this ministry veryclosely. Like Bousquet, it seems Mondesir may be a puppetminister under Compton\'s control. This is surprising giventhat the need to curb crime was one of the UWP\'s chiefcampaign messages.

Minister for Housing, Urban Renewal, and Local Government:Richard Frederick

6. (C) Speculation abounded as to where Frederick might windup, particularly given his history as a police officer andlawyer, his ties to drug traffickers, and his March 2006by-election victory revitalizing the UWP. His appointment to this ministry surprised many who were expecting Frederickwould serve as Attorney General or Minister for Home Affairsand National Security. On December 15, four days after theelection, Frederick stated on television that he had askedfor Home Affairs, but was told he deserved something morechallenging. PM Compton, in a December 19 televisionappearance, stated that Frederick\'s ministry will play animportant role in reducing crime because the urban slums arean \"incubator for crime.\" More on Frederick will be reportedin septel.

Minister for Social Transformation, Human Services, FamilyAffairs, Youth, and Sports: Lenard \"Spider\" Montoute

7. (U) As mentioned in reftel, Montoute, 44, is a U.S.-educated athlete now quickly rising in the St. Luciapolitical scene. During the campaign, Montoute was appointeda deputy party leader and his exemplary performance points to his leadership potential in the UWP. He is likely tofunction as Deputy Prime Minister, but to the best of ourunderstanding has not yet been officially named DPM.Montoute is known universally by his nickname Spider; he legally changed his name so it could appear on the 2006ballot as \"Lenard Spider Montoute.\" It is rumored that he lost votes in 2001 when voters could not find \"Spider\" on theballot.

Minister for Health and Labour Relations: Dr. Stephenson King

8. (U) Dr. King has previously served two terms in Parliament

and as Minister for Health in the previous UWP administration.

Minister for Agriculture, Forestry, and Fisheries: EzechielJoseph

9. (U) Joseph is a new to politics, with this election beinghis first contested. However, he is an expert in agriculture, having worked in the Ministry of Agriculture for 20 years and recently as a lecturer at the Sir Arthur LewisCommunity College.

Minister for Education and Culture: Arsene James

10. (U) James ran unsuccessfully for Parliament in 1997, butwon in 2001 as an opposition member of Parliament (MP). Heis a career educator with a degree in law.

Minister for Communications, Works, Transport, and PublicUtilities: Guy Joseph

11. (U) Joseph was a natural for this position, having servedas President of the National Council on Public Transport andCEO and Director of the Public Transport Service Corporation.

Minister for Trade, Industry, and Commerce: Senator Guy Mayers

12. (U) Mayers ran against previous Commerce and TourismMinister Phillip Pierre, but lost. Now he has been appointedSenator in order to serve as Minister of Commerce. He servedtwo terms as president of the St. Lucia Chamber of Commerceand is the managing director of Mayers Printing, which ownsthe Mirror newspaper.

Minister for Economic Affairs and Economic Planning, NationalDevelopment, and Public Service: Senator Ausbert D\'Auvergne

13. (U) D\'Auvergne served as the permanent secretary forPlanning and Development under the previous UWPadministration. Multiple sources have said he did anexcellent job in that position, with one of the currentministers calling him the \"Super PS\" and Compton\'s right-handman at the time. He also was the founding member of the nowdefunct National Democratic Movement (NDM) party.

Minister for Tourism and Civil Aviation: Senator AllenChastanet

14. (SBU) Chastanet has been working as the second vicepresident and chairman of the marketing committee of the St.Lucia Hotel and Tourism Association. He is also owner anddirector of a popular St. Lucian resort, formervice-president of Air Jamaica, and a board member of the ICCCricket World Cup West Indies 2007 Committee. He completedhis undergraduate studies at Quebec\'s Bishop\'s University andearned a master\'s degree in banking at the AmericanUniversity in Washington, D.C. As the new Tourism Minister,Chastanet will assume previous Tourism Minister Pierre\'s role as chairman of the Caribbean Tourism Organization. Chastanethas been a long-time contact of the Embassy.

And Four Junior Ministerships

15. (U) In addition to the 11 ministers, the UWP appointedfour junior ministers to the cabinet. Senator Tessa Mangal,who unsuccessfully competed in the election, is juniorminister to the Ministry of Social Transformation. Mangalworked as a teacher and tour guide, and then left for Englandto study law at the Universities of Wolverhampton andNorthumbria. She has also previously served in the Senate.Senator Gaspard Charlemagne, who also failed to win his seat,has been appointed as junior minister to the Ministry of Education. This is appropriate as he served over 40 years as an educator and retired as Chief Education Officer. MarcusNicholas, the new junior minister to the Ministry ofAgriculture, is beginning his third term as an MP. Apre-election issue of the Star newspaper commented, \"Hisstint as Leader of the Opposition has been dismal.\" Finally,MP Edmund Estephane is junior minister to the Ministry ofCommerce. Estephane was a virtual unknown prior to theelection, never having run for office previously. Prior topolitics, Estephane was a teacher, a national athlete, and a 1990s track star at San Diego State University. He first got involved with politics through D\'Auvergne\'s NDM.

COMMENT

16. (C) Generally, PM Compton and his UWP have chosencandidates with appropriate experience to head each ministry.The two exceptions, however, appear to be the ministries

most important for U.S. interests: External Affairs and HomeAffairs/National Security. Post is particulary concernedthat neophyte Home Affairs Minister Mondesir will haveprimary responsiblity for the security forces, including thepolice, during the March-April 2007 Cricket World Cup. (St.Lucia is scheduled to host multiple games, including the

semi-finals.) It seems that Compton has appointed men withno relevant experience to conduct foreign policy and nationalsecurity so that he can exercise maximum authority over thesematters.OURISMAN

SUBJECT: ST. LUCIA: NEWLY APPOINTED FOREIGN MINISTER MAKES A SURPRISE VISIT

FM Bousquet\'s primary purpose for visiting the Embassywas to discuss his permanent ineligibility for a U.S. visawith Consul General Howard ...


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REF: A. 06 BRIDGETOWN 2248

B. 06 BRIDGETOWN 700


1. (C) SUMMARY: St. Lucia\'s newly appointed ForeignMinister, Rufus Bousquet, visited the U.S. Embassy inBarbados on January 18 to discuss his visa ineligibility withthe Consul General. FM Bousquet also paid a courtesy call onthe DCM, who asked about APIS legislation for Cricket World

Cup and requested assistance in setting appointments for theAmbassador to present credentials. Post continues to be concerned about FM Bousquet\'s suitability for his currentpost, given his lack of international relations backgroundand youthful indiscretions which resulted in his arrest forillegally seeking a U.S. passport and an inquiry into hisprobable misuse of a United Nations grant. END SUMMARY.

2. (U) On January 18, St. Lucian Minister for ExternalAffairs, International Financial Services, Information, andBroadcasting Rufus Bousquet became the first foreigngovernment official to pay a courtesy call on U.S. officialsin Bridgetown\'s new Embassy building. FM Bousquet traveledunannounced to Bridgetown to discuss a personal visa matterwith the Consul General who invited him to pay a courtesycall on DCM Gilroy, as Ambassador Ourisman was presentingcredentials in Grenada.

VISA CONCERNS: MEETING WITH THE CONSUL GENERAL--------------------------------------------- --

3. (C) FM Bousquet\'s primary purpose for visiting the Embassywas to discuss his permanent ineligibility for a U.S. visawith Consul General Howard. The 48-year-old minister toldthe CG of his arrest when, as a college student in the UnitedStates, Bousquet tried to obtain a U.S. passport illegally.At the time, he cooperated with the authorities and, as aresult, was under the impression this incident would no longer plague him. Bousquet seemed to be free of his past as he successfully applied for, obtained, and used a U.S. visa,traveling to and from the United States for a number of years. However, his previous arrest appeared on an Immigration and Naturalization Service (INS) watchlist in1997 when he attempted travel to San Juan, Puerto Rico.Trying not to draw attention to his past, Bousquet chose todeny his previous arrest, upon which the INS officer foundBousquet permanently ineligible for a U.S. visa under INAsection 212(a)(6)(C)(i) for misrepresentation. Since thisincident, Bousquet has successfully applied for six waiversof his ineligibility and currently holds a valid B1/B2 visavalid until 2010.

4. (C) FM Bousquet\'s chief concern was his arrest and visahistory becoming public knowledge in St. Lucia by anindiscreet correspondence by the Embassy. CG Howard assuredthe Foreign Minister that A1 diplomatic visas are not subjectto the misrepresentation ineligibility and that any waiversnecessary for future visas would be handled quickly and

discreetly.

5. (C) The CG also raised the USG\'s concerns about thedeteriorating security environment in St. Lucia, informing FM Bousquet that in July 2006 the Embassy strengthened languageabout crime in the Consular Information Sheet on St. Lucia to warn Americans about increased violent crime against tourists(ref B). FM Bousquet asked for a list of the cases involvingAmerican citizens so that he could ensure that the policewill make those cases a priority.

CRICKET AND CREDENTIALS: MEETING WITH THE DCM--------------------------------------------- -

6. (SBU) The CG then escorted his visitor to an impromptumeeting with DCM Gilroy. In a cordial but short courtesycall, Minister Bousquet and the DCM discussed a number ofpertinent issues, the most important being preparations forthe upcoming Cricket World Cup (CWC). After expressing theUSG\'s understanding that the new St. Lucia government wasstill getting its bearings, the DCM stressed the urgency ofpassing enabling legislation for the Advance PassengerInformation System (APIS) essential to providing securitychecks on visitors entering the Eastern Caribbean\'s \"singledomestic space\" from February 1 through May 15. In response,FM Bousquet explained that he had recently received APISupdates from Barbados Deputy Prime Minister Mottley and thatthe new Attorney General had also received draft APIS

legislation. The DCM emphasized that APIS is a legacyproject that will assist in efficiently processing names ofpassengers well beyond the March-April 2007 CWC events.(Note: The Government of St. Lucia appointed NicholasFrederick as Attorney General on January 16. Frederick waspermanent secretary of the Ministry of Education before hebegan a career in law. The resident British High Commissioner in St. Lucia stated that, as with most of thenew ministers, Frederick will have a steep learning curve.End Note.)

7. (SBU) In addition to discussing preparations for CWC, DCMGilroy expressed the USG\'s congratulations on the victory of the United Workers Party in St. Lucia\'s December 11, 2006,paliamentary elections. She also shared her disappointmentthat St. Lucia\'s Protocol Office has been unable to arrange a meeting with Prime Minister Sir John Compton at which shecould directly convey a congratulatory message. FM Bousquetexplained that PM Compton has been greeting a number of

dignitaries and that all the increased diplomatic attentionhas been overwhelming for the small country. The DCM alsoraised the difficulty Post has had arranging an appointmentfor Ambassador Ourisman to present her credentials to St.Lucia\'s Governor General prior to St. Lucia\'s national day onFebruary 22. The DCM requested the Foreign Minister\'sassistance in setting an appointment for either January 29-30or immediately before the national day on February 20-21, to which FM Bousquet stated he would try to help.

BIO INFORMATION: A BLUNDER WITH UN FUNDS?----------------------------------------

8. (C) Bousquet\'s appointment as Foreign Minister puzzledmost St. Lucia watchers who expressed confusion as toBousquet\'s identity and qualifications for this position.(Note: The same reaction held true for Minister for HomeAffairs and National Security Dr. Keith Mondesir. See ref A. End Note.) A newspaper article summarizing biographies of

each candidate days before the 2006 election stated ofBousquet\'s professional experience: \"Rufus has carved outbusiness niches in the tourism and financial service sectors.He and his wife quietly manage their own business affairs.\"

When asked about these business niches, Victor Marquis,newspaper editor and former campaign manager for the UnitedWorkers Party (UWP), replied that Bousquet has never had aserious profession or business, but rather rode his father\'sand uncle\'s coattails into politics. Bousquet\'s father was apopular parliamentarian representing Choiseul, the districtBousquet now represents. When PM Compton announcedBousquet\'s appointment as Foreign Minister he notedBousquet\'s role in introducing international financialservices to St. Lucia when serving as minister responsiblefor the National Development Corporation in 1995.

9. (C) As routine election mudslinging, the St. Lucia LabourParty (SLP) raised accusations that Bousquet previouslymisused a United Nations grant. In a private conversationwith PolOff, Marquis, who served as UWP campaign manager forthe 1992 elections, explained the details of the allegedabuse of UN funds. According to Marquis, Bousquet returnedfrom living in California in 1989 and immediately decided to run for public office. In order to raise funds for hiscampaign, fellow UWP member Dr. Charles Flemming, who wasserving at the time as St. Lucia\'s Ambassador to the UN andthe chairman of the UN\'s funding committee, approvedBousquet\'s application for a six-month research grant.However, according to Marquis, Bousquet utilized the grant

funds for his own purposes rather than accomplishing any ofthe terms of the grant. Some time later, when the UN openedan inquiry on the use of the funds, Bousquet created and submitted a report on his nonexistent project. His reportapparently exonerated him of any further inquiry. Noofficial accusations or charges were subsequently madeagainst Bousquet.

COMMENT-------

10. (C) FM Bousquet displayed poise and a professionaldemeanor when meeting with the DCM, but also seemed somewhatquiet and introverted. Although the meeting was brief andonly slightly substantive, the Foreign Minister spokeintelligently on the few issues discussed. However,Bousquet\'s apparent lack of qualifications and experience in diplomacy, as well as reports of the misuse of UN funds andmisrepresentaion of his immigration record, continue to cause

concern. Post will obtain additional biographicalinformation on FM Bousquet and report on future interactionswith the new St. Lucia government, such as AmbassadorOurisman\'s upcoming credentials presentation and attendanceat St. Lucia\'s national day celebrations on February 22.OURISMAN

"96326","2/12/2007 21:46","07BRIDGETOWN195","EmbassyBridgetown","CONFIDENTIAL","06BRIDGETOWN2180|07BRIDGETOWN49","VZCZCXYZ0000PP RUEHWEB

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E.O. 12958: DECL: 02/05/2017TAGS: PREL, PGOV, PINR, MARR, SNAR, ASEC, EAID, ST, XLSUBJECT: (C) ST. LUCIA PM COMPTON HOLDS HIS CARDS CLOSE BUTCLAIMS TO REIN IN CONTROVERSIAL MINISTER\'S AMBITIONS

REF: A. BRIDGETOWN 49B. 06 BRIDGETOWN 2180


1. (C) SUMMARY: On February 2, Deputy Chief of MissionGilroy called on Government of St. Lucia (GOSL) PrimeMinister Sir John Compton to congratulate him on his returnto power and to review the bilateral relationship. She alsoraised USG concerns about charismatic cabinet member RichardFrederick\'s close ties to narco-traffickers. Sir Johnpledged his government\'s cooperation on security matters,including measures to address crime against Americancitizens, and assured DCM he had contained MinisterFrederick\'s ambitions to control a security-related portfolioor attain leadership of the ruling party. END SUMMARY.

2. (U) Sir John Compton, who surprised observers by returningto office as Prime Minister for a seventh term in December(ref B), received DCM Gilroy in St. Lucia on February 2. This was the first time PM Compton had met with a USG

official since his return to power. Compton listenedattentively, took careful notes, but spoke very little duringthe 45-minute, one-on-one meeting.

Reviewing Bilateral Business----------------------------

3. (C) The DCM began the meeting by congratulating PM Comptonon his return to government. She also briefly outlined areasof bilateral and regional assistance, particularly USGsupport for Cricket World Cup, and then expressed the hopethat relations between the United States and St. Lucia wouldimprove under his administration. Futhermore, the DCM raisedfour outstanding issues which remained unresolved in spite of repeated efforts by the USG: renewal of the Status of ForcesAgreement (SOFA); a written response to the offer of a StatePartnership Program (SPP) between the National Guards of Florida and the U.S. Virgin Islands and the Regional SecuritySystem (RSS); an Article 98 agreement; and promulgation ofthe 1987 Tax Information Exchange Agreement (TIEA) bypublication in the official gazette. PM Compton acceptedcopies of diplomatic notes on the SOFA and Article 98. Hemade careful handwritten notes on all four issues but askedalmost nothing about them.

4. (C) PM Compton became most animated when the DCM raisedUSG concerns about Minister for Housing, Urban Renewal, andLocal Government Richard Frederick (ref A), a dynamicpolitical newcomer whose deep pockets appear to be lined withnarco-dollars. The DCM explained that the USG had noevidence which it could share or any information leading toan indictment; however, it was important that these concernsbe shared early in the Compton administration to avoidsurprises later. Sir John acknowledged that he had known of the rumors for \"quite some time.\" Frederick had challengedthe government of then-PM Kenny Anthony to bring proof orcharge him, but it had not done so. Compton went on to saythat Frederick sought United Workers Party (UWP) endorsementduring the March 2006 by-election for the Castries Centralseat, but Compton decided to wait to see how Frederick faredas an independent candidate. Running on the UWP slate in the December 2006 parliamentary elections, Frederick handily wonre-election to the capital city seat, emerging as a powerhouse in the PM\'s party. Widely regarded in the regionas a wily political operator, PM Compton has since takensteps to contain Frederick\'s burgeoning ambitions. Notingthat Frederick hoped to gain a cabinet portfolio dealing withinternal security or communication, Compton acknowledged that

he personally blocked Frederick\'s appointment to positions in which he would have access to information about air and seaports, citing Frederick\'s \"strong support in the ghetto.\"Instead, Compton put him in charge of housing where he couldhelp his base. Sir John assured the DCM that he has takensteps to ensure Frederick would never take a leadership rolein the UWP, but he declined to specify what those steps were.

5. (C) PM Compton then shifted to talk about crime ingeneral. He was unaware of the Embassy\'s demarches for information on crimes against American citizens but promisedhis government\'s cooperation. He also welcomed future USGtraining of St. Lucia\'s police and specialized units.

Comment-------

6. (C) Sir John was extremely guarded throughout the meeting.He raised only one issue, the Western Hemisphere Travel

Initiative, but did not press it, saying he understood whythe USG acted to require that all AmCits travel withpassports. It was interesting that he did not inquire aboutU.S. assistance to St. Lucia nor did he say a word aboutreviving the banana industry (one of his campaign promises).The only theme about which PM Compton became animated was his control over Frederick\'s rise to power. It seems that hispurpose was to prove to the USG that he holds the reins onthis mercurial figure.OURISMAN


DE RUEHWN #0286/01 0642311ZNY CCCCC ZZHP 052311Z MAR 07FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC PRIORITY 4337INFO RUCNCOM/EC CARICOM COLLECTIVERUEHCV/AMEMBASSY CARACAS 1644RUMIAAA/HQ USSOUTHCOM J2 MIAMI FLRUMIAAA/HQ USSOUTHCOM J5 MIAMI FLRUEHCV/USDAO CARACAS VE","C O N F I D E N T I A L BRIDGETOWN 000286

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E.O. 12958: DECL: 02/28/2017TAGS: PGOV, PREL, PINR, KCRM, CASC, ENRG, EPET, EFIN, ASEC,SNAR, MARR, VE, ST, XLSUBJECT: AMBASSADOR OURISMAN\'S INTRODUCTORY VISIT TO ST.LUCIA


B. BRIDGETOWN 104C. 06 STATE 204037D. 06 BRIDGETOWN 700

Classified By: Ambassador Mary Ourisman for reasons 1.4(b) and (d).

1. (C) SUMMARY: Ambassador Ourisman presented her credentials to the government of St. Lucia on February 20.In meetings with the Governor General, Prime Minister,Foreign Minister, and leader of the opposition, the Ambassador discussed crime in St. Lucia, Article 98,Petrocaribe, the Advance Passenger Information System, andthe Tax Information Exchange Agreement. Noticeably missingfrom her meetings with the St. Lucian leaders were requestsfor increased U.S. assistance and complaints concerningdeportees. END SUMMARY

2. (SBU) On February 20, Ambassador Mary Ourisman presentedher credentials to the Governor General of St. Lucia, DamePearlette Louisy. The Ambassador also paid courtesy calls on Prime Minister Sir John Compton, Foreign Minister RufusBousquet, and former prime minister and leader of theopposition, Dr. Kenny Anthony. The Ambassador then attendedIndependence Day celebrations on February 22. PolEconCounsand PolOff accompanied the Ambassador.

--------------------------------------------- -------PM COMPTON: APIS, ARTICLE 98, PETROCARIBE, AND MORE--------------------------------------------- -------

3. (C) Ambassador Ourisman and Prime Minister Sir JohnCompton exchanged views on a number of key issues in U.S.-St.Lucian bilateral relations. PM Compton agreed that theAdvance Passenger Information System (APIS) looks promising,stating that he saw examples of intelligence derived fromAPIS at the February 12-14 CARICOM intercessional meeting in St. Vincent and that they \"seemed quite good.\" PM Comptonacknowledged his discussion with DCM Gilroy on Article 98(ref A) and told the Ambassador that \"he promised to look at it.\" Ambassador Ourisman also asked about the Tax Information Exchange Agreement (TIEA), to which PM Comptonstated that promulgating it should not be a problem (ref C).

4. (C) Ambassador Ourisman asked PM Compton about his viewson Petrocaribe, to which he replied that St. Lucia does notintend to sign the agreement. He explained that hisgovernment has weighed the costs and benefits of theagreement and does not see how St. Lucia would come outahead, but rather believes that Venezuela is trying to lockthe Caribbean islands to its influence, perhaps with the aimof gaining access to ports throughout the region. WhenAmbassador Ourisman asked about alternative energy sources,the Prime Minister stated that his country has looked intoboth geothermal and wind energy, but that neither representviable options for St. Lucia. (Note: Also on February 20,Minister of Commerce Guy Mayers went on record with the pressstating that St. Lucia has no interest in Petrocaribe at thistime. End Note.)

5. (SBU) In discussing regional transportation issues, PMCompton stated that the Minister of Tourism is trying to increase air traffic to and from St. Lucia for Cricket WorldCup. He further commented that he has been discussing withBarbados Prime Minister Owen Arthur the possibility ofestablishing a catamaran- or hydrofoil-type ferry to increase

sea travel in the region. PM Compton observed that regionalgovernments would have to subsidize such a business tokickstart its operations.

6. (U) Days later, at St. Lucia\'s Independence Day celebrations, PM Compton announced that the government wouldbuild a national theatre, budgeting Eastern Caribbean dollarsone million (USD 400,000) in 2007 to start this project. He also announced that St. Lucia would reintroduce subsidizedschool transport to help get children to and from schoolsafely.

7. (U) In remarks directed at assembled schoolchildren aswell as government officials and foreign guests, Sir Johnspoke a great deal about empowering St. Lucia\'s youth.Noting that in St. Lucia young people are not asked to go to war for their country, he encouraged them to contribute toSt. Lucia\'s future by educating themselves and becoming

successful citizens.

-------------------------------------FM BOUSQUET: CRIME AGAINST AMERICANS-------------------------------------

8. (C) Ambassador Ourisman\'s courtesy call with ForeignMinister Rufus Bousquet focused on unresolved crimes againstAmerican citizens in St. Lucia. Referring to the strengthened language in the Consular Information Sheet onSt. Lucia (refs B and D), FM Bousquet mentioned that he hopesSt. Lucia and the United States can work together to see the\"warnings removed.\" The Ambassador agreed, emphasizing that the United States wants resolution through arrest andprosecution of the perpetrators involved. FM Bousquetexplained that the police are investigating these crimes, but then downplayed the documented rise in violent crime in recent years by claiming that most incidents are domesticgang-on-gang violence and that there are only occassionalforays into hotels.

9. (U) Ambassador Ourisman also raised the TIEA and left anon-paper clarifying the issue. FM Bousquet agreed to lookinto the matter.

-------------------------------------GG LOUISY: GENERAL THOUGHTS ON CRIME-------------------------------------

10. (C) Governor General Dame Pearlette Louisy shared withAmbassador Ourisman her insights on rising criminal activityin St. Lucia. According to the Governor General, mostmurders in St. Lucia result from the inability of youngpeople to resolve conflict without resorting the use of weapons, typcially knives. She further commented that thepolice have increased arrests in an effort to battle crime,but that too many cases are dropped on technicalities becauseof procedural errors on the part of undertrained prosecutors.On a positive note, in their speeches commemorating the

presentation of credentials, both the Ambassador and the Governor General reflected on the salutary influence the Peace Corps has played in U.S.-St. Lucian relations.

-----------------------------------------DR. ANTHONY: A CALL FOR U.S. INVOLVEMENT-----------------------------------------

11. (C) Although former prime minister Dr. Kenny Anthonycomplimented various aspects of U.S.-St. Lucian relations in his courtesy call with the Ambassador, he also emphasizedthat United States is \"not taking advantage of its friends\"in the Caribbean and that there needs to be closercooperation on security and narcotics issues. As an example,Dr. Anthony stated that he has been suggesting to donors theneed for a regional conference on counternarcoticscooperation, so that the Caribbean states can discuss newaspects of the issue, review previous efforts, and fashionnew policies. He further explained that the United Statescould be winning the game of resource diplomacy in theCaribbean if it were only willing to play at the level ofother countries active in the region.

-------COMMENT-------

12. (C) Noticeably missing from the Ambassador\'s meetingswith the Prime Minister and Foreign Minister were requestsfor foreign assistance and complaints about deportees, boththemes commonly raised by Caribbean leaders. Instead, PMCompton focused on measures he is willing to take to improvehis country and the region, such as funding a nationaltheatre and potentially subsidizing maritime transportationbetween the islands. Even the theme for Independence Day was \"Rising to the Global Challenges,\" through which politiciansand students presented speeches on how St. Lucia can rise and succeed in an increasingly integrated world economy. Only

the leader of the opposition highlighted the need for U.S.assistance in the region.GILROY


DE RUEHWN #0488/01 1152205ZNY CCCCC ZZHP 252205Z APR 07FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC PRIORITY 4589INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITYRUEHBJ/AMEMBASSY BEIJING PRIORITY 0269RUEHCV/AMEMBASSY CARACAS PRIORITY 1693RUEHIN/AIT TAIPEI PRIORITY 0125RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITYRUMIAAA/HQ USSOUTHCOM J5 MIAMI FL PRIORITYRUEHCV/USDAO CARACAS VE PRIORITY","C O N F I D E N T I A L BRIDGETOWN 000488

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E.O. 12958: DECL: 04/25/2017TAGS: PREL, PGOV, EAID, ETRD, OFDP, CH, TW, ST, XL SUBJECT: ST. LUCIA - TAIWAN BACK IN, CHINA TO BOW OUT

REF: A. 06 BRIDGETOWN 2026

B. 06 BRIDGETOWN 1961

Classified By: CDA Mary Ellen T. Gilroy for reasons 1.4(b) and (d).

1. (C) SUMMARY: The Government of St. Lucia formallyannounced during its April 24 budget debate that it willre-establish full diplomatic relations with Taiwan. In exchange, Taiwan has agreed to develop agriculturaldiversification, ecotourism, information technology, and learning centers throughout St. Lucia. The Chinese Embassyhas confirmed that it will sever relations with St. Lucia inkeeping with the One China Policy. This move by St. Luciamay spur an escalation in the Chinese foreign assistancebattle in the Caribbean. END SUMMARY.

WE RECOGNIZE TAIWAN-------------------

2. (U) St. Lucian Foreign Minister Rufus Bousquet announcedon the evening of April 24, 2007, that the Government of St.Lucia (GOSL) will establish full diplomatic relations withTaiwan. The announcement was made during the budget debatein Parliament.

3. (U) In his speech, FM Bousquet stated, \"I confirm that the overwhelming consensus within Cabinet is for the renewal offull diplomatic relations with Taiwan at the earliestpossible opportunity.\" He added that \"This action is not be construed as a severance with the People\'s Republic of China.However, the level of our relationship in the future will be

based on what they consider appropriate, given the circumstances.\"

IN EXCHANGE FOR...------------------

4. (U) Furthermore, FM Bousquet explained that the GOSL wasguided only by the national interest of St. Lucia in makingthis decision. He claimed that one of the key reasons forrecognizing Taiwan is that Taiwan is an island country likeSt. Lucia and that St. Lucia could benefit from followingTaiwan\'s model of development, as well as sharing in thetransfer of technology. According to Bousquet\'s remarks,Taiwan has promised to support the development of agricultural diversification in St. Lucia, promote linkagesbetween agriculture and ecotourism, provide informationtechnology and learning centers in each community on the island, among other promises. In addition, a press reportclaimed that Taiwan has promised to build secondary schoolsand assist in establishing a university in St. Lucia.

CHINA BOWS OUT--------------

5. (SBU) In an April 25 telcon with PolOff, a representativefrom the Embassy of the People\'s Republic of China statedthat St. Lucian relations with both China and Taiwan are impossible under the One China Policy. As such, therepresentative stated that his Embassy will wait until St.Lucia and Taiwan formally establish diplomatic ties and thenannounce the severing of relations. The PRC spokespersonrefused to give his name, saying he was merely monitoring the phones to share his Embassy\'s simple message on this issue.

UWP SWITCHING BACK TO TAIWAN----------------------------

6. (C) St. Lucia maintained relations with Taiwan until 1997when the St. Lucia Labour Party took power and establishedfull diplomatic ties with the PRC. Speculation was rifeduring the December 2006 election campaign that a UnitedWorkers Party (UWP) victory would result in a return to Taiwan. Sir John Compton\'s 2005 meeting with TaiwanPresident Chen Shui-Bian in St. Vincent (ref A), whichmaintains ties with Taiwan, was duly noted all around. OneUWP representative informed PolOff prior to the election thatCompton had disclosed in private that he would recognizeTaiwan if his party returned to power (ref B). However,until the budget debate, Sir John had answered questions onthe issue carefully, hinting that St. Lucia would stay withChina. Even as PM Compton and FM Bousquet received adelegation headed by the Taiwan Foreign Minister on March 23, Bousquet sent the Chinese Embassy a letter reaffirming hisappreciation for China\'s foreign assistance and accepting an invitation to visit Beijing. However, the April 24 announcement may delay the FM\'s trip to China.

COMMENT-------

7. (C) The longer-term benefits St. Lucia will receive fromthis decision remain uncertain. On the surface, St. Lucia\'sdecision appears to be a case of classic checkbook diplomacy:Taiwan has outbid its PRC competitor in the short term.

However, it is unclear if the promised agricultural andeducational assistance will outweigh the USD 2.5 milliontechnical and economic cooperation agreement signed withChina in September 2006, the promised National CulturalComplex, and ongoing construction on the modern psychiatrichospital, schools, and hospitals not yet completed. Part of the UWP\'s campaign platform was the revitalization of theagricultural sector. The ruling party is likely banking onTaiwan\'s promise to promote agricultural diversification as a way to fulfill this pledge.

8. (C) Another factor may be Compton\'s geopolitical mindsetfrom his days as a Cold War politician. Numerous UWPrepresentatives have emphasized to PolOff that their partyopposes close relations with Venezuela, Cuba, and China, alsorejecting those countries\' involvement in St. Lucian domesticaffairs. Under Sir John\'s leadership, the GOSL refusedPetrocaribe and has now broken diplomatic relations withChina; Cuba may start wondering what else is in store. Inany case, Taiwan has successfully demonstrated that

diplomatic relations remain negotiable. Compton\'s choicewill likely serve to escalate the competition for foreignassistance in the Caribbean.GILROY


DE RUEHWN #0525/01 1241854ZNY CCCCC ZZHO 041854Z MAY 07FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC IMMEDIATE 4634INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITYRUEHBJ/AMEMBASSY BEIJING PRIORITY 0271RUEHIN/AIT TAIPEI PRIORITY 0130RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITYRUMIAAA/HQ USSOUTHCOM J5 MIAMI FL PRIORITYRUEHCV/USDAO CARACAS VE PRIORITY","C O N F I D E N T I A L BRIDGETOWN 000525

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DEPT FOR WHA/CAR-COLLINS AND EAP/CM AND TCSOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 05/04/2017TAGS: PGOV, PREL, PINR, EAID, ETRD, CH, TX, ST, XL SUBJECT: (C) ST. LUCIA: TAIWAN DECISION MAY WEAKEN COMPTON


B. BRIDGETOWN 464C. BRIDGETOWN 104D. BRIDGETOWN 49


1. (C) SUMMARY: Foreign Minister Rufus Bousquet has emergedas the head of a rival faction set on forcing Prime MinisterSir John Compton to retire from politics and leave FMBousquet in charge. If Compton\'s departure is the outcome of current infighting in the five-month-old government,suspected money launderer Richard Fredrick will likely beelevated to the Deputy Prime Minister position. A splitamong cabinet members over the decision to diplomaticallyrecognize Taiwan over China is the current catalyst for thisunexpected development. END SUMMARY.

----------------------------

MOVING BEHIND COMPTON\'S BACK ----------------------------

2. (C) On April 30, St. Lucia\'s Foreign Minister RufusBousquet joined Taiwan\'s Foreign Minister James C.F. Huang in signing a joint communiquQ reestablishing diplomaticrelations between St. Lucia and Taiwan. However, thisceremony took place without Prime Minister Sir John Compton\'spermission. Reliable sources have informed PolOff that theTaiwan decision signifies the first great split in therecently elected United Workers Party (UWP) administration.

3. (C) According to Victor Marquis, editor of the Voice, aformer UWP campaign manager, public relations officer andclose friend to FM Bousquet, PM Compton was negotiating a new financial agreement to stay with China while FM Bousquetnegotiated reestablishing ties with Taiwan. In exchange fordiplomatic relations, Taiwan reportedly promised Bousquet an ECD 300 million (USD 120 million) support package, including\"personal assistance\" to each elected representative.

4. (C) Marquis described PM Compton\'s plan to announce in an April 30 televised address that St. Lucia would stay withChina and that FM Bousquet was fired. It is unclear if Compton made his decision to continue relations with Chinabefore or after Bousquet\'s April 24 announcement that St.Lucia would diplomatically recognize Taiwan.

5. (C) Trumping PM Compton\'s planned address, FM Bousquetcalled a press conference for the morning of April 30 andsigned the communiquQ with Taiwan without PM Compton\'sapproval. Bousquet did, however, gain the documented supportof seven of the UWP members of parliament (MPs) before takingthis action. Bousquet then faced PM Compton in a cabinetmeeting with the backing of his seven colleagues, leavingonly Stephenson King and Lenard Montoute siding with PM Compton. Bousquet allegedly confronted Compton in thismeeting, telling the PM it was time for him to go.

-------------------------THE CALM BEFORE THE STORM-------------------------

6. (C) Compton left for the United States on May 1, hisbirthday, for health reasons. He will return on May 5. Bousquet departed for the United States on May 3 to meet withprivate investors and is expected to return on May 7.Compton tasked Bousquet to attend the Caribbean Community

(CARICOM) Tenth Meeting of the Council for Foreign andCommunity Relations (COFCOR) in Belize, for which he willdepart May 8 or 9 and return May 12. Unless these plansshift, Compton will have time upon his return to counter-maneuver against Bousquet in the latter\'s absencefrom St. Lucia.

7. (C) Marquis revealed that Bousquet has a possible plan to buy off Compton using money from the Taiwan package. Thisplan involves Compton taking an extended leave for healthreasons and then finally retiring, leaving Bousquet as primeminister. If Bousquet is successful, Minister of HousingRichard Fredrick, suspected money launderer and supporter of narcotraffickers, may well be appointed deputy prime minister.

----------------WORD GETTING OUT----------------

8. (C) Philip J. Pierre, deputy political leader of theopposition St. Lucia Labour Party (SLP), made a more cautiousassessment of the political turmoil. Pierre agreed that theTaiwan decision signaled the first split in the currentadministration. He observed that Compton, King, and Montoutewere not at the Taiwan communiquQ signing, but that all theother MPs attended. Pierre also foresaw \"interesting timesahead\" as a result of the instability now surfacing.However, Pierre predicted that the UWP will eventuallyresolve the current row, although the party may split againover future issues.

9. (C) In response to allegations in the press that theTaiwan issue has caused a split in St. Lucia\'s cabinet,Acting Prime Minister Stephenson King is scheduled to make a statement on May 4 to quell these rumors. According to Commerce Minister Guy Mayers, the rumors are completely falseand the cabinet is unified behind the decision to renew tieswith Taiwan. As far as post knows, the PRC mission has notbudged from St. Lucia, nor has had any official communicationwith the St. Lucian Foreign Ministry, since the April 30 press conference. It is possible that the mission is waitingfor a resolution of the tug-of-war within the ruling party.

-------COMMENT-------

10. (C) To date, PM Sir John Compton has been the dominant

politician in St. Lucia\'s short history, having served asPrime Minister for 15 of St. Lucia\'s 28 years of independence. If anyone can survive an internal putsch, itis probably Compton. However, his advanced age and thecontempt in which the majority of cabinet members holdCompton\'s most trusted confidant, Senator Ausbert d\'Auvergne(ref B), are working against him. If Bousquet successfullyusurps power, he will likely be seen as a savvy operator. He remains, however, an inexperienced leader with a questionablepast (ref C). The greater concern, however, would benewcomer Fredrick\'s predicted rise to be deputy primeminister. His ties to money laundering and narcotraffickersare a natural concern for post (ref D). Even if Bousquet\'smaneuvering is unsuccessful, his ability to inspire amajority of the ruling party MPs to stand against PM Comptonillustrates a significant erosion in the power of a manaccustomed to ruling single-handedly.OURISMAN


DE RUEHWN #0589/01 1341344ZNY CCCCC ZZHO 141344Z MAY 07FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC IMMEDIATE 4706INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITYRUEHBJ/AMEMBASSY BEIJING PRIORITY 0273RUEHCV/AMEMBASSY CARACAS PRIORITY 1720RUEHIN/AIT TAIPEI PRIORITY 0132RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITYRUMIAAA/HQ USSOUTHCOM J5 MIAMI FL PRIORITYRUEHCV/USDAO CARACAS VE PRIORITY","C O N F I D E N T I A L BRIDGETOWN 000589

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E.O. 12958: DECL: 05/11/2017TAGS: PGOV, PREL, PINR, EAID, ETRD, CH, TX, ST, XL SUBJECT: ST. LUCIA: GOVERNMENT CRISIS POSSIBLE

REF: BRIDGETOWN 525


1. (C) SUMMARY: Post\'s May 10 meeting with St. Lucia\'sComptroller of Customs and the Acting Commissioner of Policewas a cry for help from PM Compton and his few remainingloyalists. While PM Compton is reportedly recovering in NewYork from a stroke, his chances of hanging on to power may be diminishing. Should PM Compton fall from power, his warringcabinet and party may choose a successor, Richard Fredrick,who has known narcotrafficking ties. St. Lucia\'s Acting PM Stephenson King, a Compton loyalist, is seeking U.S.assistance to build a case against Fredrick in order to prevent his rise to power. END SUMMARY.

2. (C) On May 9, Post received a request for an urgentmeeting with St. Lucia\'s Comptroller of Customs, TerenceLeonard, and the Acting Commissioner of Police, John

Broughton. (Note: Broughton is a former UK police officerbrought to St. Lucia to assist with the country\'s lawenforcement reforms.) The meeting took place on May 10 inEmbassy Bridgetown. Per request from the St. Lucians,Embassy\'s law enforcement agencies, including FBI and DEA,were present at the meeting; PolOff also participated.According to Leonard and Broughton, they requested themeeting with Post based on instructions from Acting PMStephenson King, who presumably received instructions from PM Compton.

NEWS OF PM COMPTON\'S STROKE---------------------------

3. (C) Leonard and Broughton confirmed the rumors of PM Compton\'s hospitalization, stating that Compton is recoveringin New York from a stroke. They doubted that he would beable to return to his government responsibilities, given hisadvanced age. (Note: PM Compton is 83 years old. EndNote.) The stroke reportedly left PM Compton with slurredspeech, a symptom that may persist for some time if notpermanently. However, Leonard and Broughton told Post thatCompton is not ready to give up power just yet. He apparently told Acting PM King that, upon his return from the United States, he would fire the eight ministers who formed a rival cabinet faction and led the St. Lucian government torecognize Taiwan over China without Compton\'s agreement(reftel).

4. (C) The news of Compton,s stroke leaked out in a St. Lucian radio call-in program on May 10. Although Acting PMKing called the radio program to quash the story, regionalmedia picked it up. The following day, May 11, regionalmedia and news outlets reported on PM Compton\'s stroke andhospitalization. Leonard and Broughton shared with Posttheir concerns that the public is already doubtful of theofficial explanation offered by Acting PM King that PMCompton was in the United States for routine medical testsand that the tests extended beyond what had been initiallyexpected. However, they admitted that the public,sattention was temporarily diverted by the St. Lucia JazzFestival taking place during May 4-13.

GOVERNMENT CRISIS AHEAD?------------------------

5. (C) Leonard and Broughton were clearly concerned that PM Compton may lose the premiership in the near future. They

believe that Foreign Minister Rufus Bousquet and HousingMinister Richard Fredrick, the two leaders of theanti-Compton cabinet faction, will try to seize power.Although the cabinet has been putting on a show of unitysince the April 30 recognition of Taiwan that sparked thecurrent crisis, rumors and speculations about the cabinetsplit are circulating widely. The absence of both PM Comptonand Foreign Minister Bousquet from St. Lucia over the pastweek may have helped keep the Compton government fromunraveling. However, Bousquet is due to return from travelabroad in the next few days, and his return may set thepolitical maneuverings back in motion. Post\'s meeting withLeonard and Broughton revealed that Acting PM King isoverwhelmed and scared. A long-time Compton loyalist, Kingis experienced but does not appear to be politically savvy or suffiently powerful to reassert control over the cabinet inPM Compton\'s absence.

6. (C) Should PM Compton retire or be forced to retire fromoffice and parliament, the remaining ten United Workers Party(UWP) members of parliament would choose a new primeminister. PM Compton\'s departure from government would notnecessarily trigger a dissolution of parliament and automaticelections. Comment: This is probably something thatBousquet and Fredrick are banking on because they might notbe well positioned to win new elections. Leonard andBroughton told us that St. Lucians, who admire PM Compton as the \"Father of St. Lucia\'s Independence,\" would, at the veryleast, object to the shabby treatment PM Compton received at the hands of his party colleagues. Opposition St. LuciaLabour Party (SLP) would undoubtedly seek to capitalize onthat sentiment. End Comment.

7. (C) Even without new elections, Leonard and Broughtonwere worried that public discontent could boil over and leadto protests and civil unrest. In addition to the PM Comptonloyalists, hundreds of St. Lucians have recently lost theirjobs on various construction sites because: 1) immediatelyafter the April 30 Taiwan announcement, China terminatedvarious construction projects on the island; and 2) theMinister of Works, Guy Joseph, cancelled all governmentcapital projects in order to conduct inquiries into costoverruns by the previous government. Post convened an EAC on May 11 to discuss the possibility of civil unrest in St. Lucia and review possible response strategies.

\"NEUTRALIZING\" FREDRICK-----------------------

8. (C) Even though Bousquet led the political coup, Leonardand Broughton told Post that his accession to the premiershipis by no means assured, should PM Compton step down or beforced out. In their view, Fredrick, who has ties tocriminal figures engaged in money laundering and nacrotrafficking, is popular enough and has deep enoughpockets to unseat Bousquet. This scenario apparentlyprompted Leonard and Broughton\'s meeting with Post. ActingPM King -- and likely PM Compton himself -- are looking forways to neutralize Fredrick. Leonard and Broughton requestedany evidence that the United States might have that wouldassist them in building a case against Fredrick. Post lawenforcement officials explained that DHS/ICE was working toexpedite St. Lucia\'s earlier MLAT request for documentsrelated to possible customs violations by Fredrick. Leonardand Broughton also met with the UK High Commission to briefthem on the situation in St. Lucia and follow up on apotential UK lead also related to Fredrick. (Comment: King,Leonard, and Broughton are engaged in a high-stakes game ingoing after Fredrick. Leonard and Broughton told Post thatthey can trust only few people in St. Lucia\'s law enforcementagencies because of Fredrick\'s extensive network of friendsand informants. End Comment.)

COMMENT-------

9. (C) Leonard and Broughton presented a much more worryingpicture of St. Lucia\'s political developments. They andother PM Compton loyalists are clearly holding out littlehope that PM Compton will be able to recover and reassertcontrol over the government. If Fredrick rises to the PrimeMinister\'s or Deputy Prime Minister\'s office, Leonard andBroughton\'s high-stakes game of neutralizing Fredrick wouldlikely become Mission Impossible.

10. (C) However, most political analysts agree that St.Lucians did not vote for the UWP in the December 2006election, but for Sir John Compton. With his retirementprobable and popular protests possible, St. Lucia may face a period of political instability that could result in the voters demanding elections in the near future. Suchelections would likely return the SLP to power. An SLPgovernment would likely continue in the direction it had setin its previous term of closer ties with Venezuela and Cuba,and less emphasis on cooperation with the United States.However, an SLP government would return Fredrick to the

opposition and increase the chances of his arrest.OURISMAN


DE RUEHWN #0644/01 1422021ZNY CCCCC ZZHP 222021Z MAY 07FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC PRIORITY 4762INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITYRUEHBJ/AMEMBASSY BEIJING PRIORITY 0275RUEHCV/AMEMBASSY CARACAS PRIORITY 1734RUEHIN/AIT TAIPEI PRIORITY 0134RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITYRUMIAAA/HQ USSOUTHCOM J5 MIAMI FL PRIORITYRUEHCV/USDAO CARACAS VE PRIORITY","C O N F I D E N T I A L BRIDGETOWN 000644

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E.O. 12958: DECL: 05/21/2017TAGS: PGOV, PREL, PINR, EAID, ETRD, CH, TX, ST, XL SUBJECT: ST. LUCIAN CABINET COUP FAILED, BUT NEW PRIMEMINISTER STILL LIKELY

REF: A. BRIDGETOWN 589B. BRIDGETOWN 525


1. (C) SUMMARY: St. Lucia\'s Prime Minister Sir John Comptonreportedly returned from New York on May 19. His weakenedstate probably means that St. Lucia\'s unsettled politicalsituation will continue. The government has made no officialannouncements since his return, but it is likely that ActingPrime Minister Stephenson King will continue in thatposition. Popular outcry against Foreign Minister RufusBousquet and Housing Minister Richard Fredrick for theiralleged involvement in a cabinet coup against Comptonneutralized their chances to lead the government at thistime. Without Compton, the United Workers Party (UWP)government may be able to limp along, but probably will notsurvive in office the full five years left in its term.Regardless of who succeeds Compton, a reversal of the

China-Taiwan decision is unlikely in the near term. END SUMMARY.

2. (C) According to press reports and one member of hiscabinet, Prime Minister Sir John Compton returned to St. Lucia on May 19, following a three-week hospital stay in NewYork. While in New York for a routine medical check-up,Compton suffered a series of strokes (ref B). Since his return, St. Lucia\'s government has not yet made an officialannouncement concerning his health, possible retirement, or a successor. However, members of the St. Lucian governmentpublicly stated that it was unlikely that Compton wouldreturn to his official duties.

EVEN IN SICKNESS, COMPTON PREVAILS----------------------------------

3. (C) When Compton and FM Bousquet both left for the UnitedStates on May 1, Bousquet appeared well-positioned to pushCompton out of office and politics. Bousquet had justsucceeded in lining up the majority of the cabinet againstCompton and in support of the decision to reestablishdiplomatic relation with Taiwan (ref B). Compton wasoutmaneuvered, but Bousquet overplayed his hand. Compton\'sillness and rumors of the Bousquet-led cabinet coup generatedan upsurge of public sympathy for Compton, the aging \"Fatherof St. Lucia.\" That upsurge was apparently helped along by Minister for Economic Affairs Ausbert d\'Auvergne, aCompton-loyalist who told a UK diplomat that he has beenworking to generate negative press against Bousquet. As aresult, Bousquet is being blamed for Compton\'s strokes andhas become the most hated man in St. Lucia. His chances ofsucceeding Compton are therefore essentially nil. The publichas also found Housing Minister Richard Fredrick guilty byassociation for supporting Bousquet in his grab for power.As such, Fredrick\'s ambitions too have been temporarilyneutralized. Both ministers kept a low profile the weekprior to Compton\'s May 19 return.

FRUSTRATION OF THE PEOPLE-------------------------

4. (U) In addition to the public\'s disapproval of Bousquetand Fredrick, St. Lucians have also been frustrated with thegovernment\'s mishandling of the situation. Acting PrimeMinister Stephenson King issued a number of statements, whichin hindsight, proved to be false. What is now being viewedby St. Lucians as a lack of honesty severely damaged King\'s

public credibility.

A KING OR A SPIDER: WHO WILL LEAD?-----------------------------------

5. (C) With both Bousquet and Fredrick sidelined, the mostlikely candidates to succeed Compton are King and DeputyPolitical Leader and Minister for Social Transformation,Lenard \"Spider\" Montoute. Given King\'s mishandling ofinformation, Montoute seems to be the more popular candidateamong St. Lucians. However, King is the more experiencedpolitical leader, having served as a member of parliament and Minister for Health in the previous UWP government from 1987to 1997. He was also considered the backbone of the UWP during its ten years in opposition (1997-2006). King mayalso be the more likely compromise candidate because he is a

non-controversial politician who rarely offends. Some in the UWP may also consider King\'s indecisiveness and a lack ofleadership skills as a plus because these qualities wouldensure that King would be only a transitional figure, a placeholder while the UWP reorganizes itself. Montoute mayget his chance later. He shows more charisma and enthusiasmthan King, but the December 2006 election was only his secondbid for a parliamentary seat and the first he successfullycontested.

THE FUTURE OF CHINA-TAIWAN--------------------------

6. (C) Although both King and Montoute reportedly supportedCompton in his plan to keep diplomatic relations with China,the government will not revisit the issue regardless of whotakes power. Montoute, who personally sees relations withChina over Taiwan as advantageous, told PolOff that thecabinet made its decision to recognize Taiwan and a reversalat this point would only cause more damage to St. Lucia\'scredibility.

COMMENT-------

7. (C) Compton\'s likely retirement will have a lasting impacton St. Lucian politics. When Compton retired in 1996, theUWP imploded under a lack of leadership and suffered frominternal power struggles until Compton came out of retirementin 2006 and led his party to victory. Now that he may nolonger be able to lead his party, the UWP again appears torn

by internal disagreements and personal rivalries. Compton,who liked to concentrate all power in his hands, is largelyresponsible for this situation. While he built the UWP andled it to victory a number of times, he failed to plan forits future by grooming a successor.

8. (C) Regardless of who succeeds Compton, few expect thenew prime minister to last more than a year or two in lightof the power struggles within the UWP. The opposition St.Lucia Labor Party (SLP) will seek to capitalize on the UWP\'sdisarray. The SLP is organized, disciplined, and savvy atspinning the press. Without a strong leader at the UWP helm,the SLP may succeed at forcing early parliamentary elections.

9. (C) Compton\'s retirement may also impact U.S. relationswith St. Lucia. Compton naturally gravitated to the UnitedStates, and never lost sight of our shared goals in theregion. He viewed with suspicion the encroachment of theregion\'s new \"benefactors,\" Venezuela, Cuba, and China. Forexample, among his first announcements upon returning to office in December 2006, was to reject Venezuela\'sPetroCaribe program. His possible UWP successors may be tooweak not to make certain compromises.

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E.O. 12958: DECL: 05/22/2017TAGS: KCRM, KJUS, KTIA, KCOR, PREL, PGOV, PINR, SNAR, ST, XL SUBJECT: ST. LUCIA: FREDRICK INVESTIGATION AND MLATREQUEST LEAKED

REF: A. BRIDGETOWN 644B. BRIDGETOWN 525C. 06 BRIDGETOWN 469


1. (C) SUMMARY: During a May 17 television talk show, a prominent news personality leaked the details of a standingevidence request made under the U.S.-St. Lucia Mutual LegalAssistance Treaty (MLAT) concerning Richard Fredrick, St.Lucia\'s Housing Minister suspected of ties to drug trafficking and money laundering. Fredrick defended himselfby charging that the investigation is politically motivated.Comptroller of Customs Terence Leonard, who is heading theinvestigation, claimed that the public leak will notcompromise the integrity of the investigation and remainedconfident that he would be able to charge Fredrick withcustoms violations later this year. END SUMMARY.

THE LEAK

--------

2. (SBU) On May 17, popular news personality Rick Wayneleaked the details of a standing evidence request under theMutual Legal Assistance Treaty (MLAT) between the Governmentof St. Lucia (GOSL) and the United States Government. On his talk show, Wayne read an article from www.offshorealert.comthat summarized the evidence request initiated by the GOSL.The request concerns an investigation into Housing Ministerand alleged money launderer Richard Fredrick\'s suspectedfraudulent evasion of customs duties related to the importation of motor vehicles.

FREDRICK RESPONDS-----------------

3. (U) Shortly after Wayne read the article, Fredrick phonedinto the talk show to defend himself. Fredrick explainedthat he has known about this investigation since summer 2006because the staff of the Florida auto dealership involvedalerted him that USG authorities contacted them in conjunction with the investigation. He claimed that formerattorney general Philip LaCorbiniere started the investigation as a personal and political vendetta againstFredrick, who beat LaCorbiniere in the March 2006 by-election. (Note: Although he lost the election,LaCorbiniere continued to serve as a Senator and AttorneyGeneral until December 2006, when his party lost the generalelections. Ref C. End Note.)

LACORBINIERE PLANS TO PUSH BACK-------------------------------

4. (C) In a private conversation, LaCorbiniere informedPolOff that he would release a public statement on May 25countering FredrickQ,s public accusations that the evidencerequest under the MLAT is being pursued for politicalreasons. LaCorbiniere said he would not address the evidencerequest concerning Fredrick specifically, but rather he wouldspeak generally on the apolitical nature of MLAT requests.He further commented that, according to his understanding,informing the target of an investigation of thatinvestigation is illegal in both the United States and St.Lucia. LaCorbiniere added that he may challenge Fredrick to explain his statement that staff at the Florida autodealership notified Fredrick of the investigation.

5. (C) LaCorbiniere was also concerned that the USG may have

intentionally leaked the evidence request by registering thedocuments \"with an open court,\" rather than handling themmore discreetly. He asserted that the USG did this to keepFredrick from becoming prime minister during the currentpolitical instability. (Note: St. Lucia\'s government crisisthat could have resulted in Fredrick becoming prime ministerdid not begin until April 30, while the documents were filedwith a U.S. district court on April 17. Ref B. End Note.)PolOff countered by noting that Fredrick\'s St. Lucianpolitical rivals also could have leaked this information, a fact that LaCorbiniere did not dispute.

CUSTOMS NOT WORRIED-------------------

6. (C) St. Lucian Comptroller of Customs, Terence Leonard,informed PolOff that he has been in continual contact withthe U.S. Immigration and Customs Enforcement (ICE) attachQ

working on the MLAT evidence request since the on-air leak.Leonard was not worried that the leak would compromise theevidence or investigation. Since the May 17 leak, Leonardalso met with current St. Lucian Attorney General, NicholasFrederick, to brief him on the evidence request, and receivedassurance that AG Frederick will take all necesarry actiononce St. Lucia receives the U.S. response to the evidencerequest.

COMMENT-------

7. (C) Sources have informed PolOff that Wayne has receivedfunds from China to shift St. Lucian public opinion in favorof returning diplomatic relations to the Asian power. Thisleak appears to be one step in that strategy. During St.Lucia\'s political crisis, Wayne generated negative pressagainst those who rose against Prime Minister Sir JohnCompton and switched diplomatic recognition to Taiwan.Generally, Wayne has been successful in his strategy and hastemporarily neutralized both Foreign Minister Rufus Bousquetand Fredrick (Ref A). However, this particular leak may havebackfired. Fredrick\'s on-air response was smooth, and he may have succeeded in painting himself as a victim of the\"wickedness of the previous government.\"

8. (C) More importantly, however, is the status of theinvestigation. Leonard is confident that public knowledge of the evidence request will not subject his investigators to

increased pressure or danger, nor will it compromise his ability to charge Fredrick with customs evasion once theevidence has been obtained. Immunity for parliamentaryrepresentatives in St. Lucia is too narrow to impede St. Lucian Customs from pressing charges. As such, Leonardbelieves the evidence obtained by ICE will be sufficient tobring charges against Fredrick later this year. If convicted, Fredrick could face a fine of ECD 10,000 (USD4,000) or three times the amount of customs duties he evaded,and/or five years imprisonment. At the very least, beingarrested and charged would be an embarrassment that couldseriously hamper Fredrick\'s political career; a convictioncould result in forced retirement.

OURISMAN


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E.O. 12958: DECL: 06/07/2017TAGS: PGOV, PREL, PINR, AORC, OVIP, KSUM, KJUS, KTIA, ST, XL SUBJECT: ST. LUCIA CABINET RESHUFFLE, A STEP TOWARD A NEWPRIME MINISTER



1. (C) SUMMARY: On June 6, St. Lucia Prime Minister Sir JohnCompton reshuffled his cabinet, firing Foreign Minister RufusBousquet, demoting Home Affairs Minister Keith Mondesir, andgiving their portfolios to Acting Prime Minister StephensonKing. Given Compton\'s health problems, it is widely believedthat this is the first step toward his retirement that couldoccur around the start of this month\'s Caribbean Conferencein Washington. With King, Minister for Social TransformationLenard Montoute, and Housing Minister Richard Fredrick as

possible successors, it is uncertain who will head the St.Lucian delegation at the Washington Conference; but for themoment, official St. Lucian communication indicates King asleading the delegation. The Comptroller of Customs may stillcharge Fredrick with customs fraud. This could impedeFredrick\'s aspirations to the top job, but the case hinges on evidence requested through the U.S.-St. Lucia Mutual LegalAssistance Treaty that may arrive too late to make adifference in the prime minister race. END SUMMARY.

BOUSQUET OUT, MONDESIR DEMOTED, KING OVERWHELMED--------------------------------------------- ---

2. (U) On June 6, Prime Minister Sir John Compton firedForeign Minister Rufus Bousquet as part of a cabinetreshuffle. This reshuffle may be the first step toward PMCompton\'s retirement due to health reasons. Changes in thecabinet are as follows:

-- Compton continues to serve as prime minister, but retainsno other portfolios.

-- Stephenson King will continue to serve as Acting PrimeMinister and now heads a superministry of Finance (includingInternational Financial Services), External Affairs, HomeAffairs, National Security, Labour, and Information andBroadcasting. He is no longer Minister for Health.

-- FM Bousquet was fired and no longer serves in the cabinet.He continues to sit as a member of parliament.

-- Keith Mondesir was demoted and lost the Home Affairs andNational Security portfolios. He is now Minister forPhysical Planning and National Mobilization.

-- Edmund Estephane is the new Minister for Health.

-- Tessa Mangal now serves as a junior minister under King,with responsibility for Information and Broadcasting.

-- All other appointments remain unchanged, including RichardFredrick as Minister for Housing, Urban Renewal, and LocalGovernment.

FREDRICK MAY LEAD A THREE-WAY RACE----------------------------------

3. (C) Minister for Social Transformation, Lenard \"Spider\"

Montoute, told PolOff on June 6 that PM Compton will likelyretire \"in two weeks.\" Other sources have also reported thispotential timeline. According to Montoute, Compton willprobably choose King as his successor, but King lacks cabinetsupport. Another source confirmed this, stating that no onein the cabinet trusts King because he assisted Compton inplanning the cabinet reshuffle without discussing the planswith other cabinet members.

4. (C) Montoute also admitted that his chances of becomingprime minister have decreased significantly. Montoute, whorecently commanded considerable public support, made two crucial missteps while serving as Acting Prime Minister for a week early in June. First, Montoute publicly stated that the cabinet requested Compton\'s medical records to determine how the government should move forward. This statement made the

cabinet appear disrespectful and overeager to oust Comptonfrom power. The statement also made Montoute look tooambitious. Second, Montoute made a political blunder when he stated that whoever becomes prime minister should seek a fresh mandate from the people. Knowing that an electionwould ensure victory for the opposition St. Lucia LabourParty (SLP), SLP leader and former Prime Minister Dr. KennyAnthony quickly agreed publicly. Montoute recanted hisstatement clarifying that he meant a new prime minister wouldeventually need to seek a new mandate. However, thesemistakes may be sufficient to end the short-term climb ofthis young politician.

5. (C) If neither King nor Montoute gain the support of thecabinet, Fredrick, who is suspected of ties tonarcotraffickers and money launderers, may be the only leaderleft standing. Although recent public animosity againstFredrick\'s role in the cabinet coup temporarily dampened his political ambitions, Montoute said Fredrick is resurfacing in the leadership race. Fredrick has kept a low public profilesince the April 30 coup, and the public animosity against him is slowly ebbing away. More importantly, he is maneuveringwithin the party, according to Montoute. Fredrick isindependently wealthy and spreads his wealth liberally toincrease his support within the cabinet. According toEmbassy sources, Fredrick funded the campaigns of nearly allof the current cabinet members in the December 2006 elections.

COMMENT: WHO WILL MEET PRESIDENT BUSH?---------------------------------------

6. (C) Although Compton seems to be behind the recent cabinetchanges, there is little doubt in the minds of St. Luciansthat Compton\'s retirement is imminent. He made his firsttelevision appearance on June 4 and reportedly looked frail.Rumors of liver cancer have also surfaced. After his trip to see Compton in New York, Montoute told PolOff that, havingseen his mother suffer from cancer, he believed Compton to be suffering from cancer as well.

7. (C) Little from this six-month United Workers Partyadministration has been predictable, and choosing a new primeminister will likely be no different. Although Acting PrimeMinister King is currently scheduled to attend the CaribbeanConference, it is just as possible that St. Lucia may appointa new prime minister days before the Conference.

COMMENT CONTINUED: INHIBITING FREDRICK\'S AMBITION--------------------------------------------- -----

8. (C) Terence Leonard, Comptroller of Customs, still plansto charge Fredrick with customs evasion as soon as hereceives evidence requested under the U.S.-St. Lucia MutualLegal Assistance Treaty (MLAT) (ref A). Although a successful conviction might merely result in a fine, Leonardhopes this would be enough to discredit Fredrick and blockhis rise to power. Given Fredrick\'s suspected ties to knownnarcotraffickers and possible involvement in money laundering, his rise to power is worrisome to many observers(ref B). According to the Office of International Affairs in the Department of Justice, the evidence requested under theMLAT will likely be delivered to St. Lucia by the end of June. However, if Fredrick becomes prime minister before the end of June, the customs evasions case would likely bederailed.GILROY


DE RUEHWN #0810/01 1711852ZNY CCCCC ZZHP 201852Z JUN 07FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC PRIORITY 4973INFO RUCNCOM/EC CARICOM COLLECTIVERUEHCV/AMEMBASSY CARACAS 1762RUEAORD/CUSTOMS CARIBBEAN ATTACHE MIAMI FLRUMIAAA/HQ USSOUTHCOM J2 MIAMI FLRUMIAAA/HQ USSOUTHCOM J5 MIAMI FLRUEAWJA/DEPT OF JUSTICE WASHDCRUEHCV/USDAO CARACAS VE","C O N F I D E N T I A L BRIDGETOWN 000810

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E.O. 12958: DECL: 06/19/2017TAGS: PGOV, KCRM, KJUS, KTIA, ST, XLSUBJECT: ST. LUCIA HOUSING MINISTER FREDRICK HELD FORQUESTIONING



1. (C) SUMMARY: St. Lucia Housing Minister Richard Fredrickwas questioned on June 18 by St. Lucian authorities for hisalleged involvement in customs duty evasion. After sixhours, he was released and asked to return on July 18 forfurther questioning. Contacts stated that the Director ofPublic Prosecutions is anxious that evidence recentlyreceived under the U.S.-St. Lucia Mutual Legal AssistanceTreaty is not strong enough to charge Fredrick. These newdevelopments in the four-year investigation of Fredrickappear to be a politically motivated attempt by Prime

Minister Sir John Compton and his allies to discreditFredrick publicly and prevent him from becoming primeminister after Compton\'s expected retirement. END SUMMARY.

FREDRICK QUESTIONED...----------------------

2. (C) On June 18, St. Lucian customs and police authoritiesdetained Housing Minister Richard Fredrick for questioning in conjunction with an ongoing customs investigation. The St.Lucian Customs and Excise Office is investigating Fredrickand two associates for evading customs duties on luxuryvehicle imports from Florida (ref A). Fredrick was in policecustody for six hours and then ordered to return for morequestioning on July 18. The impetus for his detention andquestioning was the receipt of evidence St. Lucia requestedunder the U.S.-St. Lucia Mutual Legal Assistance Treaty(MLAT).

BUT NOT CHARGED---------------

3. (C) Fredrick has not yet been charged with any crime.According to Embassy sources, the Director of PublicProsecutions, Victoria Charles, is generally cautious in herwork and, in this case, is uncomfortable with the evidencereceived under the MLAT. According to our contacts, Charleswants certified statements from Florida witnesses interviewedin response to the MLAT request. (Note: A Department ofJustice attorney familiar with the case said certifiedstatements are not usually collected if the witness sharesinformation willingly. While the Embassy has not yetreceived any specific requests from St. Lucian authorities,they may seek to obtain certified statements before the July18 questioning to strengthen their case. End Note.)

POLITICAL AND PUBLIC SUPPORT----------------------------

4. (C) A crowd of supporters reportedly gathered outside theGros Islet police station where Fredrick was being questioned. (Note: Fredrick represents Castries Central, an area only a short distance from Gros Islet, with regularpublic transportation connecting the two areas. End Note.)In addition to this gathering, four ruling party members ofparliament, Rufus Bousquet, Guy Joseph, Marcus Nicholas, andEdmund Estaphane, visited Fredrick at the police station.Callers to radio talk shows also voiced their dismay over

what they perceived as a mistreatment of a sitting ministerand member of parliament.

POTENTIAL POLITICAL FALLOUT---------------------------

5. (C) If charged and convicted, Fredrick could face fiveyears imprisonment and/or a fine of ECD 10,000 (USD 4,000),or three times the amount of customs duties he evaded (refA). More important than the criminal sentence, however, isthe negative effect this case may have on Fredrick\'spolitical career. One cabinet member told PolOff that thiscase would limit Fredrick\'s political aspirations. He statedthat, although his offense would seem minor if committed byan average St. Lucian, the same offense would be exaggeratedwhen a sitting politician is involved. A prominent lawyer

also explained to PolOff that, according to St. Lucian law, a sitting official convicted of a crime must resign and cannotrun for office again. He added that, if charged with a crime, an official should resign, but is not legallyobligated to do so.

COMMENT: COMPTON PULLING THE STRINGS-------------------------------------

6. (C) Given Fredrick\'s political stature and legal acumen,obtaining a conviction could be an uphill battle. (Note:Fredrick is a trained lawyer and runs a prominent law firm in Castries. End Note.) However, PM Compton and his allies may have calculated that a conviction may not be necessary totake Fredrick out of the running for the top job. Discrediting him publicly might be sufficient. While PM Compton is a wily political operator, he is playing a muchweaker hand now, with more than half of his own cabinetaligned against him. If not convicted of a crime, Fredrickmay be able to deflect the public embarrassment and use hispersonal popularity, as well as his wealth, which heallegedly gained through money laundering and defendingnarcotraffickers (ref B), to extend his political careerdespite Compton\'s maneuverings.GILROY"


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E.O. 12958: DECL: 05/11/2017TAGS: PGOV, PREL, PINR, EAID, ETRD, CH, TX, ST, XL SUBJECT: ST. LUCIA: GOVERNMENT CRISIS POSSIBLE

REF: BRIDGETOWN 525


1. (C) SUMMARY: Post\'s May 10 meeting with St. Lucia\'sComptroller of Customs and the Acting Commissioner of Policewas a cry for help from PM Compton and his few remainingloyalists. While PM Compton is reportedly recovering in NewYork from a stroke, his chances of hanging on to power may be diminishing. Should PM Compton fall from power, his warringcabinet and party may choose a successor, Richard Fredrick,who has known narcotrafficking ties. St. Lucia\'s Acting PM Stephenson King, a Compton loyalist, is seeking U.S.assistance to build a case against Fredrick in order to prevent his rise to power. END SUMMARY.

2. (C) On May 9, Post received a request for an urgentmeeting with St. Lucia\'s Comptroller of Customs, TerenceLeonard, and the Acting Commissioner of Police, John

Broughton. (Note: Broughton is a former UK police officerbrought to St. Lucia to assist with the country\'s lawenforcement reforms.) The meeting took place on May 10 inEmbassy Bridgetown. Per request from the St. Lucians,Embassy\'s law enforcement agencies, including FBI and DEA,were present at the meeting; PolOff also participated.According to Leonard and Broughton, they requested themeeting with Post based on instructions from Acting PMStephenson King, who presumably received instructions from PM Compton.

NEWS OF PM COMPTON\'S STROKE---------------------------

3. (C) Leonard and Broughton confirmed the rumors of PM Compton\'s hospitalization, stating that Compton is recoveringin New York from a stroke. They doubted that he would beable to return to his government responsibilities, given hisadvanced age. (Note: PM Compton is 83 years old. EndNote.) The stroke reportedly left PM Compton with slurredspeech, a symptom that may persist for some time if notpermanently. However, Leonard and Broughton told Post thatCompton is not ready to give up power just yet. He apparently told Acting PM King that, upon his return from the United States, he would fire the eight ministers who formed a rival cabinet faction and led the St. Lucian government torecognize Taiwan over China without Compton\'s agreement(reftel).

4. (C) The news of Compton,s stroke leaked out in a St. Lucian radio call-in program on May 10. Although Acting PMKing called the radio program to quash the story, regionalmedia picked it up. The following day, May 11, regionalmedia and news outlets reported on PM Compton\'s stroke andhospitalization. Leonard and Broughton shared with Posttheir concerns that the public is already doubtful of theofficial explanation offered by Acting PM King that PMCompton was in the United States for routine medical testsand that the tests extended beyond what had been initiallyexpected. However, they admitted that the public,sattention was temporarily diverted by the St. Lucia JazzFestival taking place during May 4-13.

GOVERNMENT CRISIS AHEAD?------------------------

5. (C) Leonard and Broughton were clearly concerned that PM Compton may lose the premiership in the near future. They

believe that Foreign Minister Rufus Bousquet and HousingMinister Richard Fredrick, the two leaders of the anti-Compton cabinet faction, will try to seize power.Although the cabinet has been putting on a show of unitysince the April 30 recognition of Taiwan that sparked thecurrent crisis, rumors and speculations about the cabinetsplit are circulating widely. The absence of both PM Comptonand Foreign Minister Bousquet from St. Lucia over the pastweek may have helped keep the Compton government fromunraveling. However, Bousquet is due to return from travelabroad in the next few days, and his return may set thepolitical maneuverings back in motion. Post\'s meeting withLeonard and Broughton revealed that Acting PM King isoverwhelmed and scared. A long-time Compton loyalist, Kingis experienced but does not appear to be politically savvy or suffiently powerful to reassert control over the cabinet inPM Compton\'s absence.

6. (C) Should PM Compton retire or be forced to retire fromoffice and parliament, the remaining ten United Workers Party(UWP) members of parliament would choose a new primeminister. PM Compton\'s departure from government would notnecessarily trigger a dissolution of parliament and automaticelections. Comment: This is probably something thatBousquet and Fredrick are banking on because they might notbe well positioned to win new elections. Leonard andBroughton told us that St. Lucians, who admire PM Compton as the \"Father of St. Lucia\'s Independence,\" would, at the veryleast, object to the shabby treatment PM Compton received at the hands of his party colleagues. Opposition St. LuciaLabour Party (SLP) would undoubtedly seek to capitalize onthat sentiment. End Comment.

7. (C) Even without new elections, Leonard and Broughtonwere worried that public discontent could boil over and leadto protests and civil unrest. In addition to the PM Comptonloyalists, hundreds of St. Lucians have recently lost theirjobs on various construction sites because: 1) immediatelyafter the April 30 Taiwan announcement, China terminatedvarious construction projects on the island; and 2) theMinister of Works, Guy Joseph, cancelled all governmentcapital projects in order to conduct inquiries into costoverruns by the previous government. Post convened an EAC on May 11 to discuss the possibility of civil unrest in St. Lucia and review possible response strategies.

\"NEUTRALIZING\" FREDRICK-----------------------

8. (C) Even though Bousquet led the political coup, Leonardand Broughton told Post that his accession to the premiershipis by no means assured, should PM Compton step down or beforced out. In their view, Fredrick, who has ties tocriminal figures engaged in money laundering and nacrotrafficking, is popular enough and has deep enoughpockets to unseat Bousquet. This scenario apparentlyprompted Leonard and Broughton\'s meeting with Post. ActingPM King -- and likely PM Compton himself -- are looking forways to neutralize Fredrick. Leonard and Broughton requestedany evidence that the United States might have that wouldassist them in building a case against Fredrick. Post lawenforcement officials explained that DHS/ICE was working toexpedite St. Lucia\'s earlier MLAT request for documentsrelated to possible customs violations by Fredrick. Leonardand Broughton also met with the UK High Commission to briefthem on the situation in St. Lucia and follow up on apotential UK lead also related to Fredrick. (Comment: King,Leonard, and Broughton are engaged in a high-stakes game ingoing after Fredrick. Leonard and Broughton told Post thatthey can trust only few people in St. Lucia\'s law enforcementagencies because of Fredrick\'s extensive network of friendsand informants. End Comment.)

COMMENT-------

9. (C) Leonard and Broughton presented a much more worryingpicture of St. Lucia\'s political developments. They andother PM Compton loyalists are clearly holding out littlehope that PM Compton will be able to recover and reassertcontrol over the government. If Fredrick rises to the PrimeMinister\'s or Deputy Prime Minister\'s office, Leonard andBroughton\'s high-stakes game of neutralizing Fredrick wouldlikely become Mission Impossible.

10. (C) However, most political analysts agree that St.Lucians did not vote for the UWP in the December 2006election, but for Sir John Compton. With his retirementprobable and popular protests possible, St. Lucia may face a period of political instability that could result in the voters demanding elections in the near future. Suchelections would likely return the SLP to power. An SLPgovernment would likely continue in the direction it had setin its previous term of closer ties with Venezuela and Cuba,and less emphasis on cooperation with the United States.However, an SLP government would return Fredrick to the

opposition and increase the chances of his arrest.OURISMAN

SUBJECT: ST. LUCIAN HOUSING MINISTER RICHARD FREDERICK MAY WALK

POLITICAL DEALINGS AND AN ASSASSINATION THREAT

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SOUTHCOM ALSO FOR POLADDOJ FOR OIA-ANDREW GENTEINDHS/ICE MIAMI FOR MICHAEL LAPORE

E.O. 12958: DECL: 08/10/2017TAGS: PGOV, PREL, KCRM, KJUS, ST, XLSUBJECT: ST. LUCIAN HOUSING MINISTER RICHARD FREDERICK MAY WALK

REF: A. BRIDGETOWN 810B. BRIDGETOWN 749C. BRIDGETOWN 49

Classified By: A/DCM Clyde Howard for reasons 1.4(b) and (d).

1. (C) SUMMARY: St. Lucian Housing Minister, RichardFrederick, returned for police questioning on July 18 as partof an investigation against Frederick\'s alleged customs

violations. Various authorities and observers are concernedthat the Director of Public Prosecutions will not pursue thecase because of incompetence, and various members ofparliament have reportedly threatened to leave the party ifcharges against Frederick are not dropped. In addition, thechief investigator in Frederick\'s case claimed to havereceived a threat on his life. END SUMMARY.

2. (C) On July 18, Richard Frederick, Minister for Housing,Urban Renewal, and Local Government, returned to Gros Isletpolice station as ordered during his June 18 detention.Police and customs authorities are investigating Frederickand two others for alleged customs duties evasion whileimporting luxury vehicles from the United States (ref A).The Comptroller of Customs and lead investigator in the case,Terence Leonard, told PolOff that the Director of PublicProsecutions (DPP), Victoria Charles-Clarke, is hesitant toofficially charge Frederick because she is still unsatisfiedwith the evidence gathered and continues to requireinvestigators to produce additional information. Leonard is also concerned that Charles-Clarke might intentionally beroad blocking the case.

WILL THE DPP PROSECUTE?-----------------------

3. (U) Currently, the DPP\'s ethics and competence are underfire. At the heart of this attack is the case of MarcusNicholas, one of Frederick\'s fellow United Workers Party(UWP) members of parliament. On April 9, Nicholas reportedlyrefused to cooperate with police when stopped for a trafficviolation and ran from the scene before he was detained,resulting in nine charges against him. On July 12, amagistrate cleared Nicholas of all charges because his casefiled \"disappeared.\" Charles-Clarke admitted that she hadthe file, but that she was unaware of the date of the courtcase and therefore unable to provide the prosecutor with thefile.

4. (C) Various contacts have told PolOff that Charles-Clarkehas political ties to the UWP, which led to deliberatemishandling of Nicholas\'s case. Some of these contacts alsostated that the DPP is personal friends with Frederick.However, a prominent lawyer told PolOff that he knowsCharles-Clarke personally and claimed that she is an honestand ethical person who would not offend the integrity of herprofession. A resident diplomat also confirmed this. Manyof these contacts, however, including the prominent lawyer

and diplomat, agreed that the DPP is not the most capable or strongest-willed person.

POLITICAL DEALINGS AND AN ASSASSINATION THREAT--------------------------------------------- -

5. (C) Two factors further complicate this case. BothLeonard and a news editor close to the UWP told PolOff thatthe elected UWP members of parliament, save Prime MinisterSir John Compton, recently held a meeting in which Frederick,Nicholas, and the fired Rufus Bousquet (ref B) threatened to leave the party and stand as independents in parliamentunless certain concessions were made. Such a move wouldcripple the UWP majority and make the three independents thekey decision makers in Parliament. Among the allegedconcessions were reinstating Bousquet as Foreign Minister and dropping all charges against Frederick. Reportedly, the 10members came to a compromise, but PolOff is unaware of anyfollow-up action to date. Another complication, according to Leonard, is that Frederick has recently put a ECD 50,000 (USD20,000) price on Leonard\'s head. Leonard claimed thatFrederick entrusted this information with a friend, who theninformed Leonard of the plan.

COMMENT: THE RISE OR FALL OF FREDERICK---------------------------------------

6. (C) The combination of incompetence and possible loyaltyto Frederick make it doubtful that the DPP will successfullyprosecute a case against Frederick. In addition, Frederick\'spersonal charisma and wealth have generated support among the general public and especially among members of Parliament,whose political campaigns have received Frederick\'s generousfinancial support. There are some who believe that no matterthe case\'s outcome, the resulting damage to Frederick\'sreputation will prevent his upward climb to political power,but Frederick\'s ambitions may not be limited to becomingprime minister. According to Acting Prime MinisterStephenson King, PM Compton will likely retire this fall,possibly in conjunction with the UWP convention in Octoberand the UWP may appoint King as PM at that time. Frederickmay use this opportunity to assume the role of Minister forHome Affairs and Internal Security, a job he has covetedsince the election. Given his suspected ties to narcotraffickers (ref C), this is as much a worrisomescenario as becoming prime minister.OURISMAN


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E.O. 12958: DECL: 09/04/2017TAGS: PGOV, PREL, PINR, ST, XLSUBJECT: ST. LUCIA PM SIR JOHN COMPTON ON LIFE SUPPORT

REF: BRIDGETOWN 589

Classified By: CDA Anthony Fisher for reasons 1.4(b) and (d).

1. (U) SUMMARY: St. Lucia Prime Minister Sir John Compton\'shealth has starkly deteriorated. On September 1, he was flown to Martinique where he is currently on life support.Compton\'s chosen successor, current Acting Prime MinisterStephenson King, appears positioned to officially succeed him as prime minister. End Summary.

COMPTON IN CRITICAL CONDITION-----------------------------

2. (U) Prime Minister Sir John Compton was flown to Martinique September 1 for medical treatment as his healthdeteriorated throughout the week. Compton was hospitalizedAugust 27 for chest pains, but released the next day underthe guise that he was stable. Compton is currently inintensive care and on life support because he is unable tosupport natural breathing. Acting Prime Minister StephensonKing publicly stated that St. Lucians should prepare for the

worst.

THE LAST LAP IN THE LEADERSHIP RACE-----------------------------------

3. (SBU) As St. Lucians sit on edge following the health ofthe father of St. Lucian independence, they are also awaitingthe climax of the race for leadership among ruling partyofficials ongoing since May, when a series of strokes andother medical conditions forced Compton to remove himselffrom an active role in government proceedings. At this time,APM King appears to be the most likely, most palatable, andmost popular candidate to succeed Compton. According to various private conversations between PolOff and governmentofficials and political observers, King\'s confidence andstature as prime minister have increased significantly duringhis three months acting in Compton\'s stead, as has publicconfidence in his ability to do the job. Currently, the public\'s greatest demand and the administration\'s toppriority is returning stability to the government, and Kingis seen as the most likely to bring this desired stabilityand to continue along the course Compton has plotted for St.Lucia. The ruling United Workers Party (UWP) plans tosolidify its leadership structure during its nationalconvention in October.

4. (C) Although the UWP cabinet will most likely appoint Kingto the coveted post, Rufus Bousquet, the former foreignminister fired by Compton, has announced his intention tocontend for the job. Rumors also continue to abound thatHousing Minister Richard Frederick, infamous for alleged tiesto narcotraffickers and currently under investigation forpossible customs duties evasion, is using his abundantresources to vie for power behind the scenes. However, mostpolitical pundits believe that Frederick will presentlysupport King as prime minister for the sake of stability andbide his time for a more opportune moment to assert power.

THE POSSIBLE MONKEY WRENCH--------------------------

5. (C) Terence Leonard, Comptroller of Customs and head ofthe investigation against Frederick, informed PolOff that he believes the government is actively inhibiting his ability to investigate and charge Frederick for customs duties evasion.In May, King sent Leonard to the Embassy to requestassistance in St. Lucia\'s investigation against Frederick(reftel). Leonard now believes that King and Frederick have

reached a political compromise that included stopping theinvestigation. (Note: PolOff has heard of such a compromisefrom multiple sources, but has been unable to confirmdetails. End Note.) Leonard told PolOff that, if hisinvestigation continues to be blocked, he will go public withany evidence he has of government officials hindering hisinvestigation, regardless of the damage such evidence may do to King or the UWP administration.

COMMENT-------

6. (C) Although this may be the end of Compton\'s term asprime minister, he appears to have successfully kept the UWPadministration from imploding during its leadership crisis.From his sickbed, it seems that Compton managed to pull thestrings that will keep King, his hand-picked successor, inpower, at least in the short-term. Prior to the leadershipcrisis, St. Lucia rejected Petrocaribe and showed a willingness, at least in rhetoric, to better its workingrelationship with the United States. A stable UWP governmentcontinuing down Compton\'s paths could result in a governmentreceptive to U.S. positions on foreign policy matters.

7. (C) Since his first interaction with PolOff, Leonard hasardently talked about bringing Frederick to justice. He hasconsistently claimed his reasons are solely for the sake ofjustice and the good of St. Lucia. It seems, however, thatthis investigation has become a personal vendetta forLeonard; he once admitted to contending against Frederickwhen the two were in secondary school together. As such, it appears that Leonard\'s willingness to discredit the currentadministration, including King, for hampering his investigation against Frederick is a sincere threat asLeonard might see such a move as the only way to forcejustice against Frederick.FISHER

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E.O. 12958: N/ATAGS: PGOV, PREL, PINR, ST, XLSUBJECT: ST LUCIA PRIME MINISTER JOHN COMPTON PASSES AWAY

1. Prime Minister of St. Lucia Sir John Compton passed awayon September 7 from a series of strokes and othercomplications. He was 82 years old. Compton led St. Luciato independence from the United Kingdom in 1979, becoming the island state\'s first prime minister. He also served as Premier of St. Lucia from 1967 to 1979 pre-independence, thenas prime minister in 1979, again from 1982 to 1996, and thenfrom December 2006 until his passing. He came out ofretirement in 2005 to lead his United Workers Party (UWP) to victory in the December 2006 elections. Compton\'s funeral is tentatively scheduled for September 22.

2. Acting Prime Minister Stephenson King was appointed primeminister on September 9. King served as acting primeminister since May 2007 when Compton became too ill toactively lead the country. He is expected to announced hiscabinet in the next couple days.

3. Various press reports claim that two UWP members ofparliament were hesitant to back King as prime minister.According to these reports, Rufus Bousquet, who Compton firedfrom his position as foreign minister, attempted to trade his vote for a position back in cabinet. Marcus Nicholas, who

was relieved of his cabinet position when appointed deputyspeaker of parliament, is also alleged to having demanded a cabinet position and the firing of Ausbert d\'Auvergne, anappointed Senator who served as Minister for EconomicAffairs, Economic Planning, National Development, and thePublic Service under Compton. D\'Auvergne is widelyconsidered one of the most brilliant planners in government,but also ethically dubious. He has a reputation for being an autocrat and considered by many as having too much power foran appointed official. As of yet, Post has not heard anyreports as to whether these concessions were met.

4. A by-election for Compton\'s seat must be held within 90days. However, there will be no need for national electionsbecause, according to the Constitution, the Governor Generalappoints as Prime Minister from among the existing seatholders the member of parliament who appears to command thesupport of the majority of parliament.FISHER

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DEPT FOR EEB/IFD/OMA-SNOW AND FIGUEROADEPT FOR WHA/EPSC-MAIER

E.O. 12958: N/ATAGS: EAID, ECON, PREL, XL SUBJECT: FISCAL TRANSPARENCY IN ST. LUCIA

REF: STATE 16737

1. (u) The Government of St. Lucia practices fiscaltransparency by making its national budget publiclyavailable on an annual basis. The government does this byannouncing the budget in an open forum of parliamentannually and doing a budgetary review in parliament at theend of the fiscal year. Also, the budget is open forpublic scrutiny through its budgetary offices, and available on the government website. Thepublicly-available data are generally accurate and meaningful and include all revenues and expenditures. St.Lucia has not volunteered for the IMF to report on thecountry\'s compliance with standards and codes coveringfiscal transparency.

2. (u) The relevant laws governing fiscal transparency inSt. Lucia have been entered into force in the Constitutionat independence, in chapter five of the Constitution, whichgoverns \"Finance of the Constitution with Authorization ofExpenditure from Consolidated Fund by appropriation andAuthorization by Expenditure in advance of appropriation.\"The constitution went into effect February 22, 1979. St

Lucia also promulgated updated laws in 1997 by passing theFinance and Administration Act of 1997 under which there isthe Financial Regulation of 1997 and the Stores andProcurement Regulation of 1997. These laws are adequate andare actively implemented.

3. (u) Although USAID is active in the Eastern Caribbean,it currently does not fund programs supporting fiscaltransparency or good governance. The Caribbean RegionalTechnical Assistance Center (CARTAC) is available to 19 Caribbean countries to assist these countries to achievetheir macroeconomic, fiscal, and monetary policyobjectives. This program operates as a UNDP project withthe IMF serving as the executive agency. It is funded bythe Canadian International Development Agency, the Inter-American Development Bank, Ireland, the IMF, the UKDepartment for International Development, the UNDP, the EU,and the World Bank.


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E.O. 12958: DECL: 05/09/2018TAGS: PGOV, PREL, PINR, EINV, ETRD, KTIA, ST, XL SUBJECT: FURTHER POLITICAL SHAKE-UP IN ST. LUCIA

REF: A. 07 BRIDGETOWN 525B. 07 BRIDGETOWN 49

Classified By: PolOff Tyler T. Allen for reasons 1.4 (b) and (d).

1. (C) SUMMARY: Three members of parliament in St. Lucia arethreatening to leave the ruling United Workers Party if theirdemands, which include the dismissal of a competent, but disliked, appointed member of cabinet and the reinstatementof a politically unpopular figure, are not met. If theywalk, it would be enough to topple the current government in St. Lucia. The dismantling of the current, generallypro-U.S. government could slow various political andcommercial initiatives in which the USG has an interest. END SUMMARY.

STUCK IN A CATCH-22-------------------

2. (C) Former Foreign Minister Rufus Bousquet, currentHousing Minister Richard Frederick, and Deputy Speaker of the House Marcus Nicholas are threatening to leave the UWP ifBousquet is not returned to Cabinet. Since June 6, whenthen-Prime Minister Sir John Compton fired Bousquet for

organizing a cabinet coup against him (ref A), Bousquet hasmade a number of unsuccessful attempts to be reinstated.This time, however, he and his cronies have been more vocalagainst current Prime Minister Stephenson King, lendingcredence to rumors that they will declare party independenceif their demands are not met -- a move that would cripple the ruling party. One minister told PolOff privately that itappears King will have to concede to Bousquet given thenumbers involved.

3. (C) Jeannine Compton-Rambally, daughter of Sir JohnCompton and a popular political figure in her own right,further complicated the situation by publicly threatening to leave the ruling party if Bousquet returns to Cabinet.Compton-Rambally also has the backing of thenationally-adored widow, Lady Janice Compton. Ken Monplaisir, a prominent lawyer and close friend to theComptons, confided that the Comptons are still offended overBousquet\'s earlier actions against Sir John and believe hehas damaged the party. Consequently, both Jeannine and LadyJanice would wash their hands of the party if Bousquet isreinstated. Given the role Sir John\'s stature still plays in the UWP, abandonment by his wife and daughter could irrevocably damage the party. Monplaisir projected that sucha move could cause the government to gradually implode andforce a return to the polls within the next two years.

4. (C) Further complicating the situation is the renegadetrio\'s demand to have Minister for Economic Planning Ausbertd\'Auvergne removed from Cabinet. According to variouscontacts, d\'Auvergne is hated for his arrogance andautocratic style. Fellow Cabinet members allegedly resentthe power he wields, power derived from his control over thebudget and economic planning, and the high level of trustboth Compton and King have had in him. They particularlyresent his clout given that he is a nonelected,political-appointee minister. However, d\'Auvergne isrecognized throughout St. Lucia as one of the most capablemembers of government and a vital cog if government hopes to successfully develop economically. As such, a potentialcompromise would be the Prime Minister removing d\'Auvergnefrom Cabinet, but then hiring him back as a consultant.

ANOTHER SOLUTION?-----------------

5. (C) D\'Auvergne told PolOff that the Prime Minister is the real target. According to d\'Auvergne, Bousquet and company

recognize that d\'Auvergne is a great strength to King, andthat by ridding the Cabinet of him, along with reinstatingBousquet, they would be able to weaken King and increasetheir own power within the party. However, d\'Auvergneexplained that King has an alternate strategy that would keepd\'Auvergne in and Bousquet out, but that King needs some time to implement this strategy. On May 14, the day following an alleged meeting in which the party met and discussed variouscompromises, King left St. Lucia on official business, not to return until May 18. Political observers in St. Lucia areawaiting an announcement concerning Bousquet\'s and Frederick\'s demands that week.

COMMENT: THE EFFECT ON U.S. PRIORITIES--------------------------------------

6. (C) Unless King can impose much better party discipline,the UWP will face difficulties for the rest of its administration -- which could be as short as a few months if those threatening to leave the party follow through, or acouple of years as the party slowly implodes. As the last 15 months have illustrated, political instability equals littlepolicy progression in the UWP government. Unfortunately,this has not played well for U.S. priorities in St. Lucia.Post is moving towards signing an Article 98 agreement withSt. Lucia and is pushing a renewal of the Status of ForcesAgreement. Progress has been slow; despite assurances thatthe Cabinet has agreed in principle to the Article 98Agreement, we have been told it now requires a legal scrubfrom the Attorney General (whose technical work is undoubtedly hindered by the need to address party politics).The current UWP administration is pursuing a bold developmentpackage that involves considerable investment from variousU.S. companies, but again this has been slow to get off theground despite best intentions, in part due to energy wastedon party squabbles. Since the development projects are tiedclosely to two UWP ministers with the ability and initiativeto seek out investors, there is little confidence that suchplans would continue under a SLP government.

COMMENT CONTINUED: A NOTE ON FREDERICK--------------------------------------

7. (C) Richard Frederick\'s participation in this ploy againsthis own party leadership is the most recent illustration ofhis waning political clout. The alleged money launderer anddefender of narco-traffickers (ref B) took a surprising blowwhen he came in a distant fourth out of four in the race for

the two UWP deputy political leader spots on March 30. Whilehis charisma and cash were once seen as necessary infusionsfor the UWP, his fourth place finish was a clear statement by the party that it is ready to move away from Frederick\'s role as a UWP poster child. Reasons for this range from fear ofhis ties to drugs and gangs to corruption and cronyism in the running of his current ministry. Recognizing this loss instature, Frederick has likely joined with Bousquet in hopesof leveraging their way back to positions of influence withinthe party.OURISMAN

SUBJECT: ST. LUCIA: GOVERNMENT TEETERS ON THE BRINK OF COLLAPSE, BUT PULLS BACK FOR THE MOMENT

- King sends Janine to US embassy to investigate Tucker and Frederick.

"155973","5/29/2008 18:13","08BRIDGETOWN346","EmbassyBridgetown","SECRET//NOFORN","07BRIDGETOWN589|07BRIDGETOWN741|07BRIDGETOWN810|08BRIDGETOWN319","VZCZCXYZ0006PP RUEHWEB

DE RUEHWN #0346/01 1501813ZNY SSSSS ZZHP 291813Z MAY 08FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC PRIORITY 6505INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITYRUEHBJ/AMEMBASSY BEIJING PRIORITY 0294RUEHCV/AMEMBASSY CARACAS PRIORITY 1909RUEHLO/AMEMBASSY LONDON PRIORITY 0743RUEHIN/AIT TAIPEI PRIORITY 0146RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITYRUMIAAA/HQ USSOUTHCOM J5 MIAMI FL PRIORITYRUEHCV/USDAO CARACAS VE PRIORITYRUEAORD/CUSTOMS CARIBBEAN ATTACHE MIAMI FL PRIORITY","S E C R E T BRIDGETOWN 000346

NOFORNSIPDIS

SOUTHCOM ALSO FOR POLADDHS CUSTOMS MIAMI FOR MLAPORE

E.O. 12958: DECL: 05/29/2028TAGS: PGOV, PREL, PINR, CN, SL, XL SUBJECT: ST. LUCIA: GOVERNMENT TEETERS ON THE BRINK OF COLLAPSE, BUT PULLS BACK FOR THE MOMENT

REF: A. BRIDGETOWN 319B. 07 BRIDGETOWN 810C. 07 BRIDGETOWN 741D. 07 BRIDGETOWN 589

Classified By: PolOff Tyler Allen for reasons 1.4 (b) and (d).

-------SUMMARY-------

1. (C) St. Lucia\'s leadership crisis came to a head in lateMay as two ministers threatened to leave the governing partyand serve as independents and others weighed their options.With the government facing the loss of its majority inparliament, Economic Planning Minister Ausbert d\'Auvergneresigned May 23, and Prime Minister Stephenson King announcedMay 27 that he had agreed to reinstate former ForeignMinister Rufus Bousquet and the banished Marcus Nicholas backin the Cabinet. The machinations of Bousquet, Nicholas, andHousing Minister Richard Frederick, who are widely believedto be corrupt, if not outright criminal, have led to a widening fissure within the ruling United Workers Party (UWP)into \"pro-Compton\" and \"renegade MP\" camps, with the lattermost recently luring deputy party leader Spider Montoute totheir side. Bousquet and Frederick appeared willing to takedown the government, as they would, according to partyinsiders, receive a large payout from China for doing so.The compromise reached with d\'Auvergne\'s resignation appearsto have calmed the waters for the moment, but with fourministers harboring ambitions of being Prime Minister, thepolitical infighting is likely to continue. END SUMMARY.

-----------------------------JEANNINE COMPTON PAYS A VISIT -----------------------------

2. (C) On May 22, embattled Prime Minister Stephenson Kingcontacted the Embassy to speak with the Ambassador, who wastraveling in the region. Speaking with the DCM, he indicatedthat he wanted to send a representative to meet with the DCMand Embassy staff to review two law enforcement issuesrelating to members of his government whose resolution couldhave some bearing on the current governing crisis. Sir JohnCompton\'s daughter, a UWP member of parliament, JeannineCompton-Rambally, traveled to Bridgetown later that day tomeet with the DCM and mission staff. Cutting to the chase,Compton asked what information the U.S. might have onBousquet\'s convictions in the United States and what Postknew concerning ongoing investigations against Frederick.She noted that the Prime Minister was seeking this backgroundto be better able to determine how to handle their threats to leave the party. The request mirrored earlier requests bythe GOSL, and Post provided the same responses it has

previously (ref C an d D), that we can only share lawenforcement information requested through official channels,such as the Mutual Legal Assistance Treaty, and only if suchinformation is used for law enforcement purposes. Post alsoadvised Compton that convictions are public information thatcould be accessed through a private investigator or privateattorney.

3. (S/NF) Concerning Frederick, Post shared its understandingthat additional evidence concerning the customs case againstFrederick (ref B) is with CBP Miami and is awaitingclearances within the GOSL for the Comptroller of Customs to travel and receive the incriminating information. Comptonexplained that Frederick is grabbing for more power inCabinet so that he could squash the investigation againsthim. She then explained that the customs investigation isconnected to a murder investigation in which Scotland Yard is involved.

------------------TYING KING\'S HANDS------------------

4. (C) Following this discussion, the DCM, PolChief and PolOff hosted Compton to dinner and reviewed the various

scenarios unfolding in St. Lucia. Noting that many in thecurrent government stood to lose their positions if thegovernment fell and the opposition returned, as is consideredlikely, the DCM asked whether that would be enough incentiveto bring the rebels back from the brink. Compton explainedthat threatening to return to the polls had been an ineffective tool for King because, she said, China haspromised large sums of money to those -- namely Bousquet,Frederick, and Nicholas -- who were willing to help bringdown the government and thereby allow the pro-China St. LuciaLabour Party to return to office. To strengthen theirposition against King, the renegade MPs then coaxed SocialTransformation Minister Lenard \'Spider\' Montoute to theirside by promising to support him as Prime Minister. AlthoughMontoute was deputy political leader, then-PM Sir JohnCompton appointed King as Acting Prime Minister during hisillness, a move that launched King to the office of PrimeMinister. Those supporting Montoute seemed to have playedoff his disappointment of having been passed over. However,many believe that Montoute is still too inexperienced to bePrime Minister and that he would merely serve as Bousquet\'sand Frederick\'s puppet.

----------------------KING CAVES TO BOUSQUET----------------------

5. (C) The day after the meeting with Compton, PrimeMinister King decided to play the only hand he had to keepthe party together and ask Economic Affairs MinisterD\'Auvergne to resign and agree to return Bousquet andNicholas to Cabinet. The new cabinet positions have not yetbeen determined, but Bousquet has indicated that he willreceive a \"more prominent\" portfolio. Contrary to statementsin the press that she would resign if Bousquet were allowedin Cabinet, Compton told us she had no plans on leaving theparty. However, she added that she is unsure how well theweakened King will be able to keep Bousquet, Nicholas, andFrederick in line.

-------------------------------------COMMENT: BAND-AIDS ON BIGGER PROBLEMS-------------------------------------

6. (C) King appears to have found a compromise for themoment that allows him to remain in office. However, as Compton and another minister have told us, King continues to paint himself further into a corner with each compromise.Compton observed that he should have taken more decisiveaction sooner, but waited too long and is now vulnerable.Although this latest resolution keeps the party afloat, theship of state is likely to spring more leaks as the band aidsfall off. Unfortunately, the compromises have resulted inmore power shifting to potentially corrupt factions in theparty or those who have little stake in the success of thegovernment and would be willing to see it fail if they cangain personally from outside money. Given the many personalagendas in play in the UWP, it seems unlikely that thecurrent administration will be able to serve out its fullterm in office through 2011.

8. (C) Among the more interesting comments Compton sharedwith Post came in response to a question about her ownpotential interest in serving as Prime Minister. She smiled,and, while noting that many people in St. Lucia were callingfor her to step forward, insisted that she was not ready toserve as Prime Minister \"yet.\" Although new to politics,Compton acknowledged to having spent many years listening to political discussions between her father and his politicalallies. Compton\'s incisive assessments of the political

situation and her clear understanding of King\'s options andtheir likely consequences suggest she has the political savvyto emerge as a UWP standard-bearer should the UWP limp alongfor a long enough time for her to build her base of support.OURISMAN

"181053","12/2/2008 20:22","08BRIDGETOWN704","Embassy Bridgetown","UNCLASSIFIED","","VZCZCXYZ0000 RR RUEHWEB DE RUEHWN #0704 3372022 ZNR UUUUU ZZH R 022022Z DEC 08 FM AMEMBASSY BRIDGETOWN TO RUEHC/SECSTATE WASHDC 6919 INFO RUEHDG/AMEMBASSY SANTO DOMINGO 5954 RUCPDOC/DEPT OF COMMERCE WASHDC RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC RUEAIIA/CIA WASHDC ","UNCLAS BRIDGETOWN 000704 SIPDIS E.O. 12958: N/A TAGS: OECS, POL, PGOV, PINR, PHUM, PINS, XL SUBJECT: ST LUCIA CORRUPTION CASE AGAINST FREDERICK HEADS TO COURT ------- SUMMARY ------- 1. (SBU) The long-running saga of the Minister Richard Frederick\'s corruption case appears headed towards a final resolution. Frederick lost his action for dismissal of charges against him relating to evasion of taxes for the importation of a vehicle, and the case is finally headed to trial. If Frederick loses in court, and is convicted of criminal tax evasion, he will be forced to resign. End Summary 2. (C) Five years ago, St. Lucian Housing Minister Richard Frederick imported two cars, worth USD 70,000, from Florida duty-free. The Comptroller of Customs, Terrence Leonard, objected to the duty-free status of the cars and charged Minister Frederick with criminal tax evasion. He had the Minister detained and questioned over one year ago, but did not file criminal charges at that time. Ever since then the two have been engaging in a long-running legal and public relations battle. Leonard maintains that the Minister knowingly evaded paying proper customs duty on the vehicles. The Minister disputes the claim, maintaining that he was entitled to the duty-free importation by virtue of his status as a member of government, and arguing that too long a time

has passed since he imported the cars, so the case against him should be dismissed. The Customs comptroller has complained ever since then that he has been blocked in pursuing charges against Frederick by the Attorney General and others in the government allied with the Minister. Frederick is very popular among the poorer elements of Castries, but is widely seen as corrupt, and some also claim that he is allied with narco-traffickers. 3. (C) In the most recent court battle, Minister Frederick filed two suits against the government. The first suit sought to have the customs case dismissed, charging that it was without merit and had been instigated to embarrass him politically. He also sought damages of USD 448,000 in compensation for loss of use, return of the vehicles and for wrongful arrest in the customs investigation. The court ruled against Frederick in the attempt to have the customs case dismissed and ruled against him in refusing to enter damages against him for wrongful arrest. This ruling now opens the way for the Customs Comptroller to formally charge him with criminal evasion of customs duty. Poloff spoke with Leonard, who was very pleased that he would finally get his day in court. He noted that Frederick has filed an emergency appeal, but is confident Frederick will lose the appeal and the case will proceed to trial, probably early in January. ------- COMMENT ------- 4. (C) The Frederick case has been at the center of St. Lucian politics for a number of years. In addition to the customs case and possible narcotics ties, several American investors claim that he illegally expropriated land holdings. They have appealed the decision to the Prime Minister. Minister Frederick is politically well connected, however, and is closely allied with Rufus Bousquet\'s faction of the ruling party. In person, Frederick can be charming and gregarious, but also comes across as self serving and duplicitous. The Customs Comptroller has a well deserved reputation for being both the most honest government official in St. Lucia and for being as stubborn as a pitbull. Despite the wishes of many that this case would go away, he clearly has persevered in not letting the matter rest. If Frederick is convicted, it will rmove one major source of opposition to Prime Miniter King within the cabinet, allowing the PM to onsolidate his shaky base of power. End comment. HARDT

"200703","4/3/2009 16:42","09BRIDGETOWN210","EmbassyBridgetown","CONFIDENTIAL","","VZCZCXYZ0014RR RUEHWEB

DE RUEHWN #0210/01 0931642ZNY CCCCC ZZHR 031642Z APR 09FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC 7284INFO RUCNCOM/EC CARICOM COLLECTIVERUEHBJ/AMEMBASSY BEIJING 0307RUEHIN/AIT TAIPEI 0151","C O N F I D E N T I A L BRIDGETOWN 000210

SIPDIS

E.O. 12958: DECL: 03/18/2019TAGS: PGOV, KCRM, PREL, INRB, XL, CH, TW, EAID, OFDPSUBJECT: ST LUCIA: GOVERNMENT WEAKNESS AND FOREIGNINTERFERENCE POST CHALLENGES TO GOVERNMENT ACCOUNTABILITY

Classified By: Charge d\'Affaires, a.i. D. Brent Hardt, reasons 1.4 (b,d )

-------SUMMARY-------

1. (C) The government\'s integrity and accountability areunder increasing strain in St. Lucia in the face of continuedtensions within the governing party and windfall foreignfunds being deployed by Taiwan into governmentconstituencies. With the ongoing economic slowdownimpacting the island, the pressure to accept money fromforeign sources or pursue illicit schemes -- includingliaison with drug traffickers -- for personal or politicalgain is on the rise. The main culprits are governmentMinisters that the PM has struggled to control and who areeager to challenge his leadership. Taiwan has ramped up itsfinancial involvement in St. Lucia in order to tilt thepolitical balance toward the government, as the oppositionhas promised to shift recognition back to China -- likely in its own bid for funding. End summary.

-------------------------------------Will the UWP hold a Party Convention?-------------------------------------

2. (C) Ruling party MP Jeannine Compton expressed concernsto poloffs about the upcoming UWP party convention. She saidthe party may postpone the convention, due in April, ratherthan risk a leadership challenge against Prime Minister King.She noted that King is still unable to control the variousfactions of the party, despite a recent ebbing of theinfluence of Housing Minister Richard Frederick as corruptioncharges against him have begun to move forward.

3. (C) Kenneth Monplaisir, a prominent local lawyer and headof the election commission, meanwhile, sees King\'s weaknessnot as a impediment to maintaining power but as an asset, as the lack of established hierarchy allows a more decentralizedpower structure among the various ministers and leads to ministers concentrating on keeping power in -- and profitingfrom -- their own \"fiefdom\" rather than challenging forleadership of the party. Monplaisir lamented, though, thatcorruption and malfeasance in the fiefdoms were getting outof hand and the public was losing patience with the government.

--------------------------------------------- --Official Corruption: Frederick, Mondesir Cases--------------------------------------------- --

4. (C) Customs Comptroller Terence Leonard continues hispursuit of Minister Frederick for false invoicing. Leonardtold poloffs he is ready to move forward but does not havethe assistance of the attorney general, who has refused toparticipate in the case. Leonard claims his office is withoutlegal counsel and does not have the funds to hire an outsidelawyer to pursue the case. He claims to have been activelydiscouraged from pursuing this case further by the PM, theattorney general and the public prosecutor\'s office.According to Kenneth Monplaisir, the case is getting staleand the public is starting to lose interest, despite the widespread perception that Leonard is one of the most honestofficials in St. Lucia and that Frederick is widely considered a \'thug\'.

5. (C) Leonard fears that he could be put on administrativeleave and that a successor would be told to get rid of anyincriminating evidence against Frederick. If Leonard couldbe displaced for even a short amount of time, the caseagainst Frederick would be seriously weakened. The newcomptroller would have the ability to release the evidenceand try to dismiss the allegations against Frederick. In a new turn, Leonard told us that a new deputy comptroller was

installed in his office. Leonard had no input in the hiringof this individual, who he said has a poor track record ingovernment and has been investigated numerous times forcorruption in previous posts.

6. (U) As the Frederick case stagnates, Health Minister KeithMondesir is being investigated for falsely claiming that hisBonne Terre residence is part of the nearby Tuxedo VillaHotel, in order to qualify it for duty free concessions.According to opposition leader Kenny Anthony, this is a serious breach of public integrity, and the opposition hasstarted a procedure to sue PM King over this violation ofcustoms duties by a Cabinet level official. Due to thedelays in getting the case started, Mr. Anthony has beenawarded a sum of $935 USD to cover his legal costs.

----------------Taiwan Influence----------------

7. (C) According to Jeannine Compton, Taiwan is providingeach Government MP with US$1 million that is ostensiblydesigned for development projects, but is actually being usedto fund elections and to personally enrich the MPs. PhilipPierre states that this contribution and its disbursement is not transparent and creates a sharp partisan divide betweenthose constituencies that see the money go into actualcommunity development projects, and those constituencieswhere the money vanishes into an MP\'s pocket or wherecommunities represented by an opposition MP cannot enjoy thebounty. Compton told us (and Pierre later confirmed) thatshe refused to accept the money in the ordinary fashion,forcing the Taiwanese to make the donation to a governmentaccounting board that would provide oversight to its eventualuse. This makes her, so far, a minority of one in St. Luciapolitics.

8. (C) Taiwan\'s Ambassador to St. Lucia Tom Chou has riledup the opposition further by locating a technology centerconsisting of 10 Acer computers in the election headquartersof Home Affairs and National Security Minister Guy Mayers.This office, in Castries East, is where Mayers (currently an unelected senator) is challenging Pierre for his MP seat.According to Pierre, the government has targeted his seat and is using Taiwanese money to build support. Opposition leaderKenny Anthony has called for the Ambassador to be deported,and makes no bones about believing that Taiwan is blatantly

favoring the government and becoming involved in domesticpolitics. Ambassador Chou has stated (disingenuously) thathe was unaware of the political dimension of this project.

-------Comment-------

9. (C) During the current economic downturn, there isconcern that outside money will be able to exert greaterinfluence in the political process. Public salaries are insufficient to run an election, let alone maintain an officestaff. The easy availability of funds from Taiwan and, to a lesser extent, Venezuela has expanded opportunities forgraft. Minister Frederick is potentially a top player inthis game, possibly skimming millions of dollars from a variety of illicit projects. So far, Terence Leonard is oneof the few to publicly challenge widespread officialcorruption.

10. (C) During recent Independence Day festivities, it waseasy to notice the conspicuously large diplomatic presencefrom Taiwan and their constant side meetings with numerousministers and government officials. The Taiwanese Ambassadorwas accorded special access in the Prime Minister\'s box,while all other Ambassador\'s sat in a separate viewingsection at some distance from the PM and Governor General.Since Taiwan\'s only interest in St. Lucia is that ofmaintaining official diplomatic recognition, they do not feelany compunction in bribing Ministers and undermining the ruleof law. In the current economic environment, and withoutstrong leadership at the helm of the ruling party, Taiwanshould have little trouble finding willing takers. It istherefore not surprising that we have begun to hear that theopposition is taking money from China, Taiwan\'s foil in theregion.HARDT

"213135","6/19/2009 19:04","09BRIDGETOWN369","EmbassyBridgetown","UNCLASSIFIED","09STATE49477","VZCZCXRO4489PP RUEHGRDE RUEHWN #0369/01 1701904ZNR UUUUU ZZHP 191904Z JUN 09FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC PRIORITY 7506INFO RUCNCOM/EC CARICOM COLLECTIVE","UNCLAS SECTION 01 OF 02 BRIDGETOWN 000369

SIPDIS

WHA/CAR FOR JACKIE ROSHOLTEEB/IFD/OIA FOR HEATHER GOETHERTEEB/IFD/OIA FOR KIMBERLY BUTLERL/CID FOR PATRICK PEARSALL

E.O. 12958: N/ATAGS: CASC, EINV, KIDE, OPIC, PGOV, XL SUBJECT: EXPROPRIATION - ST. LUCIA

REF: STATE 049477

1. (SBU) St. Lucia has one outstanding expropriation case.

----------------------Claimant Designation--------------------

2. (U) Claimants A through F.

---------------------Date of Expropriation---------------------

3. (U) The initial expropriation occurred in May 2008. Thetitle of the land formally passed to the Government of St.Lucia in January 2009.

------------CASE HISTORY------------

4. (SBU) The expropriation concerns 230 acres of land on the west coast of St. Lucia just south of the town of Anse LaRaye. The land has a small beach, but is primarilymountainous, with some swampland adjacent to the waterfront.

This land was purchased over 50 years ago by a consortium of American investors. Recently, the group made a contributionof 176 acres of land that has historic significance for St.Lucia to the National Trust. Brigand Hill, a small hotel of about five rooms is owned by Claimant A, as the land was split off prior to the current dispute, and is not includedin the expropriation.

5. (SBU) The problems for the consortium started when a group of minority investors, claimants E and F, took legalaction to address perceived wrongdoings. The issues are currently being handled in court, and the pending legalaction prevented the land from being sold or developed. Thegovernment has used this inaction to claim that the land wasbeing left idle. The public remarks concerning the landclaim that it will be used for low income housing, despitethe geography of the territory making it ill suited for sucha development. In addition, the presence of poisonous snakesand the lack of clean water or access to the electrical gridmake development problematic.

6. (SBU) The majority claimants (A,B,C,D) have contacted theSt. Lucia Government and the U.S. Embassy to push their case.A letter from the Ambassador was sent to the Prime Minister

to encourage an expeditious and adequate settlement on 20October 2008. During the St. Lucia National Independence Day celebrations on 22 February 2009, the Charge d\'Affairesraised the issue with the PM, who gave his verbal assurancethat the matter was being reversed, and that the expropriation of the land was in error. A letter confirmingthis conversation was sent to the PM on 27 February 2009, but the Embassy has received no response despite numerous calls.According to the local lawyers involved, the expropriation is continuing, despite the statement from the PM. Contacts haveinformed poloffs that the PM lacks control of his cabinet and is being fed incorrect information by select Ministers. Thepeople involved in this case are Richard Frederick, Ministerof Housing, and Keith Mondesir, Minster of Health and alsothe Parliamentary representative for this district.

7. (SBU) The value of the property is a point of contention.The claimants have an offer for the land in the range of 2.4

million USD. They believe that the land is worthconsiderably more, and that the drop in value is due to theglobal recession. The value of the donated land wasestimated at 12 million USD, which allowed for a considerableU.S. tax deduction, but it is unlikely that the land wouldhave received anywhere near that amount on the open market.

The land is scenic, but the small beachfront makes a touristhotel problematic, and without a tourist appeal, the value is much lower. In case of a settlement, the government is required to pay a fair amount, but the claimants fear thatany amount would be considerably less than open market value,and in any case would require a long wait for any money totrickle in.

8. (SBU) Poloff attended a court case and visited theproperty on 20 May 2009. Poloff is in regular contact withthe majority claimants about their case, and has met the minority shareholders. On the 15th of July, 2009, a finalruling on the shareholder list is scheduled, which would end

BRIDGETOWN 00000369 002 OF 002

the dispute among the shareholders, leaving the expropriationas the only remaining hurdle. A liquidator has beenappointed by the court to pay the debt of the company and is exploring ways to sell the land or get a fair settlement fromthe government.

9. (SBU) All claimants are U.S. citizens.

Claimant A : Michael SeelyClaimant B : Joe PoindexterClaimant C : Barry RomerilClaimant D : Carrol CavanaghClaimant E : David BickfordClaimant F : James CurryHARDT

"230116","10/16/2009 21:21","09BRIDGETOWN660","EmbassyBridgetown","CONFIDENTIAL","","VZCZCXYZ0001PP RUEHWEB

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SIPDIS

SOUTHCOM FOR LTC JOSE ANDUJAR AND MAJ MARTESTATE PLS PASS USAID FOR LAC

E.O. 12958: DECL: 10/17/2019TAGS: EAID, MASS, PGOV, PHUM, PREL, SL, XLSUBJECT: SOUTHCOM ASSESSMENTS ON ST.LUCIA HOSPITALDELIVERED TO PRIME MINISTER

Classified By: POL/ECON Chief Ian Campbell, reasons 1.4 (b,d)

-------Summary-------

1. (C) The three assessments prepared by SOUTHCOM on theeffects of the fire at St. Jude\'s hospital in St. Lucia werecompleted and delivered to Prime Minister King October 2.These assessments, encompassing the entire Medicalinfrastructure of southern St. Lucia, provided a roadmap forrebuilding the recently destroyed hospital and sought to enlist support from SOUTHCOM for sourcing equipment andshort-term medical care. St. Lucia has specificallyrequested a Modular Operating Facility and multipleambulances to convey patients on the 75-minute drive from the south to the hospital in the capital. The strategy forredevelopment has initially been to rely on foreign support,but the government now has the opportunity to take theassessments and use them to solve immediate problems whilecrafting a master plan for future redevelopment. End summary.

--------------------------------------------- ----------------

St. Jude\'s Hospital Destroyed Leaving Gap in Medical Coverage--------------------------------------------- ----------------

2. (U) St. Jude\'s Hospital in St. Lucia was destroyed byfire September 9, with three individuals losing their livesin the tragedy. The fire destroyed the 2nd and top floor of a central structure housing the surgical ward. The firstfloor of the structure, which housed the laboratory,pediatric ward, supplies and laundry, was also severelydamaged by water. In addition, the two wings on either sideof the surgery were exposed to asbestos fibers from theburning roof, but were spared fire or water damage. Someequipment was salvaged from the site, but as none of the hospital\'s equipment was insured against loss, the equipmentlosses were more financially damaging than the loss of thestructure.

3. (U) The hospital, a structure originally built by theU.S. military in the 1940s, serviced the southern portion of St. Lucia, to include the Hewanorra International Airport.The impact on the airport of losing an emergency carefacility could be significant in the case of a seriousaccident as there is limited capacity to move people to hospitals in the capital. If left unresolved, the lack ofadequate medical care nearby could threaten Hewanorra\'sstatus as an international airport, which would in turn havea potentially significant impact on tourism arrivals.

-------------SOUTHCOM Team-------------

4. (U) A team of six experts from SOUTHCOM accompanied bypoloff conducted a four-day assessment of all major sites,including St. Jude\'s hospital, George Odlum stadium as atemporary hospital, regional clinics in Laborie, Dennery,Vieux Fort, and Soufriere; Victoria and Tapion hospitals inCastries, and alternate sites for housing a temporaryfacility. The team consisted of a structural engineer and a director of medical plans from Miami and a team of a medicand three specialists based in Trinidad. During the trip,the team was briefed by a number of prominent St. Lucians,including Prime Minister King, Minister of Health Mondesir,Minister of Home Affairs Mayers and numerous other officialsfrom the MFA, Ministry of Health, and local hospitaladministrations. Every effort was made to accommodate theteam and provide access to sites and appropriate personnel.

5. (U) The assessment team concluded that it would not becost effective to rebuild the structure, and that theasbestos needed to be removed from the site. The stadium now serving as a temporary facility lacks adequate water and electrical capacity, but otherwise is an excellent facilitywith wide hallways, adequate space, parking and easy accessfor the populace in southern St. Lucia. The stadium has twowings, but currently only the west wing is being used as amakeshift hospital. The east wing is thought to be moresuitable as it houses the locker rooms with showers andbetter plumbing. Access to the west wing was granted by Prime Minister King on the morning after the fire, butpermission to move to the east wing has been neitherrequested nor granted.

--------------------------------------------- -Alternative Sites: Good Politics, Bad Medicine--------------------------------------------- -

6. (C) The team also surveyed multiple alternative sites,including Skyway Inn, a Free Trade Zone warehouse, and anempty plot of land. All sites had significant problems, andwere potentially motivated by issues other than the interestsof providing the best medical care. Skyway Inn has almost no guests, is in disrepair and should be shut down due to healthreasons. The owner is behind in payments and the bank wantsto get this liability off their books. The property is unsuitable as a hospital due to narrow hallways, no elevator,small rooms and a significant mold problem. It was suggestedas a potential site more to get it off the balance sheet ofthe bank than as a real temporary site for a hospital. TheFree Zone warehouse had different reasons for being unsuitable but was also selected as it was a gift from theChinese government and is almost totally empty and has beenunused for some time.

7. (C) The alternative site proposals also caused a stiramong St. Lucians, pitting government administrators againsthospital medical staff. The doctors, led by Chierry Poyotte,Medical Director of St. Jude\'s, thought that the search foralternatives to the stadium was a dangerous waste of time,and was being done more to preserve the fiction of thestadium as a real facility than in the best interests of thepublic. The stadium was built by the Chinese in 2003 but had deteriorated so rapidly that by 2008 that it required $7 million EC ($2.6 million USD) to refurbish. The highmaintenance costs also prevent it from being used foranything but a significant event, so it sits empty for all

but a few days a year. The desire to get the patients out of this facility, despite its utility, angered numerous hospitalstaff. It was only due to the multiple assessments pushingthe stadium as the ideal temporary site that the PM grantedthem the right to stay indefinitely.

------------------Foreign Assistance------------------

8. (U) Mondesir has made a request to SOUTHCOM for a modular(not mobile) operating facility and three ambulances. Thecost of the modular unit is $1.5 million with new equipment,and potentially half that cost for refurbished equipment. If a modular O.R. is not available, Mondesir expressed interestin a portable tent facility. According to Susana Huang, asecretary in the Taiwanese Embassy, Taiwan has already madean offer to PM King to build a new hospital, but only if afair amount of financial support comes from the St. Luciagovernment. This seems to be the best offer available, buthas not yet been accepted. The French have offered to removeasbestos from the site. Teams from the UN and PAHO have alsoundertaken on-the-ground assessments of the sites, but thesehave not resulted in any decisions on provision of additionalassistance.

-------Comment-------

9. (U) St. Lucia is ill-prepared to deal with a disaster of this scope. The temporary solution of the stadium isadequate, but, going forward, the country will face difficulties acquiring equipment and managing other expenses.St. Lucia this month is receiving a psychiatric hospital

from the Taiwanese in southern Castries, but no accompanyingequipment. In addition, construction has just started on a new EU-funded hospital on the same site as the psychiatrichospital that should be finished in 30 months, but it, too,will be furnished but not equipped. Add in the costs of thereplacing St. Jude\'s (since the EU hospital is not closeenough to properly service Hewanorra) and St. Lucia will haveto fund the equipping of three hospitals in three years.This would be a strain on resources in the best of times; in the current economic climate, it is unrealistic to think theywill be up to the challenge.

10. (U) With significant assistance from the USG and others,

St. Lucia has managed the short-term aspect of this disaster.In addition to the SOUTHCOM assessment team, Embassy\'s MLO

secured an immediate $10,000 grant in Humanitarian AssistanceProgram funds from SOUTHCOM to cover immediate needs, and the Embassy was also able to redirect some recently-arrivedmedical supplies form a Denton shipment to the St. Jude\'s

site as well.

11. (C) While the international community looks to solve the medical problems, the long-term aspects of recovery areexposing political cracks. With the Health Minister recentlyfound guilty of customs violations and misleading the Cabinetabout it, the government had hoped to be able to take quickand decisive action to renew confidence in Mondesir and theruling party. Instead, the weight and complexity of thistask is generating new rifts between the bureaucrats in thecapital and the hospital administrators in the south.Meanwhile, the politicians have been unable to restrainthemselves from trying to use the misfortune to feather theirown nests through controlling the location of the newbuilding. St. Lucia is also relying too heavily on foreignassistance for many aspects of the recovery, delaying theirown domestic response. End comment.HARDT

"250530","2/24/2010 17:18","10BRIDGETOWN35","EmbassyBridgetown","CONFIDENTIAL","","VZCZCXYZ0006RR RUEHWEB

DE RUEHWN #0035/01 0551718ZNY CCCCC ZZHR 241718Z FEB 10FM AMEMBASSY BRIDGETOWNTO RUEHC/SECSTATE WASHDC 0551INFO EC CARICOM COLLECTIVERHMCSUU/CDR USSOCOM MACDILL AFB FL","C O N F I D E N T I A L BRIDGETOWN 000035

SIPDISSTATE FOR INL - TERRY JOHNSSTATE FOR WHA/CAR - KAREN MCISAACSTATE FOR NEA/MAG - HEATHER KALMBACHAMEMBASSY BRIDGETOWN PASS TO AMEMBASSY GRENADA

E.O. 12958: DECL: 2020/02/24TAGS: PREL, PGOV, ECON, MASS, SNAR, XL SUBJECT: PM King: Rising Crime Threatens St. Lucia\'s ExpandingTourism Sector

CLASSIFIED BY: D. Brent Hardt, Charge; REASON: 1.4(B), (D)

------------

Summary

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1. (C) St. Lucia Prime Minister Stephenson King told the Charge ina February 10 meeting that his government is struggling to stem thetide of violent crime that has begun to adversely affect thecountry\'s vital but vulnerable tourism sector. He is hiring morepolice, weeding out corruption in the ranks, and looking to partnerwith U.S. local and federal law enforcement agencies in his effortto reverse the trends. He was very pleased that St. Lucia will bethe first country in the Eastern Caribbean to receive vessels andcommunication equipment through SOUTHCOM\'s Enduring Friendshipprogram. He welcomes the emerging U.S. focus on at-risk youth andentrepreneurship programs, and would like to see them expandedthrough the Caribbean Basin Security Initiative (CBSI). St.Lucia\'s, Minister of Tourism Chastanet outlined his ambitious plansfor tourism expansion in St. Lucia and challenges he faces in

convincing the government that it needs to do more to support theindustry. He proposed an agreement in services between the U.S.and Caribbean to make the Caribbean part of U.S. airspace for travel purposes, with both sides agreeing to reduce air traveltaxes, which now account for a sizeable portion of air travel costsin both directions. End Summary.

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Struggling to Get a Grip on Crime

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2. (C) In a February 10 meeting at his official residence in St.Lucia, Prime Minister King lamented to the Charge that the currentrise in violent crime on the island that had resulted in 7fatalities already this year -- on target for a murder record if itcontinues. Moreover, crime had begun to affect the vulnerabletourist sector as cruise tourists on bus tours to scenic sights hadbeen attacked and robbed in broad daylight. Gang violence had entrenched itself within the capital, Castries, resulting in a \"proliferation of small arms, muggings, and robberies.\" Drugtrafficking remained a constant concern, as much of the violencerelated to interruptions in shipments and struggle for drug turf.To reverse these alarming trends, King said he had already hired 58new officers, with an additional 65 to be brought on board as soonas the first class graduated. (Comment: This would represent a 15percent increase in the strength of the force. End Comment).Police Commissioner Regis separately told the Charge that his forceis staffed for the demands of St. Lucia\'s 160,000 citizens, but notfor the additional 500,000 visitors the island hosts every year.This point had helped sell the PM on the need to increase the Force\'s strength, he added.

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Corruption, Lack of Leadership in the Ranks

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3. (C) Prime Minister King was open and direct in addressingproblems of corruption within the police ranks, telling the Chargethat the country would welcome U.S. assistance in this area. Hesaid the Force is already expanding its vetting efforts, but muchmore is need. He acknowledged the importance of ensuring that theCoast Guard would be vetted as it takes possession of the new U.S.-provided vessels. The Charge conveyed the U.S. willingness toexplore how we might support his vetting efforts. King alsoacknowledged his government had made a mistake in elevating a British national as commissioner -- part of a UK-funded effort toprofessionalize the force through an influx of senior level Britishofficers. The displacement of the current commissioner, AusbertRegis, who had been on extended leave, may have left a bad taste in

his mouth that could affect his level of performance, the PM indicated.

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New Strategies Needed

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4. (C) According to King, new strategies are needed, includingbetter surveillance and intelligence and a more creative way totarget the at-risk youth who are failed by the educational system.King supports an expansion of vocational education that can bettermeet the needs of those students that are not well served by thecurrent academic system. He enthusiastically welcomed the U.S.focus on programs for at-risk youth and appreciated that theCaribbean Basin Security Initiative would seek to address both thecause and consequences of the region\'s crime. King indicated thathis government had decided to launch two major reviews, one on social reform and a second on education. A Council on SocialReform had been established, that would look at some of the factorspulling young people into the capital, and exploring how to createnew communities through resettlement or to strengthen existingcommunities outside the main city. The Education Council wouldtake a hard look at the country\'s education system, which is notserving a large segment of its population well, according to King.He believed it was time to move past the inherited British academicmodel and ensure the system was flexible enough to accommodatediverse interests and capabilities.

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Libyan Diplomatic Presence

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5. (C) The Charge asked PM King about reports that Libya had decided to establish a diplomatic presence in St. Lucia, and Kingresponded that the government had discovered this almost by chance.He noted that Libya has been in discussion with members of the OECSfor some time (led by St. Vincent Prime Minister Ralph Gonsalves,whose ties to Libya date back decades), and had apparently settledon St. Lucia because it was home to the OECS secretariat.Apparently, however, the Libyan representatives arrived withoutinforming the government of St. Lucia, and only after thegovernment found this out and approached the Libyans about the needto follow protocol, did they begin procedures for establishingtheir presence. King said St. Lucia did not have any strongfeelings about this presence, but said it had been guided by ourrecent approach to relations with Libya. PM King noted that heunderstood Libya had also established a bank in St. Kitts/Nevis andanother entity relating it investment in Antigua as part of itsexpanding presence in the region.

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Ambitious Plans for Tourism

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6. (C) In a separate meeting with the Charge, The energeticMinister of Tourism, Allen Chastanet, outlined his ambitious plansfor St. Lucia\'s tourism sector. He believes St. Lucia is poised tobe one of the top destinations for U.S. tourists in the Caribbean.Already, it has surpassed Barbados for number of long stay U.S.visitors, and he sees the potential for 250,000 long stay U.S. visitors within the next three years. He attributed St. Lucia\'ssuccess in the U.S. market to the expansion in direct U.S. flights,particularly the entry of JetBlue into the market last October and

increased flights by Delta, American, and USAir. The increasedcompetition also resulted in a dramatic reduction in the cost ofE

roundtrip fares from the U.S. to $500, from almost $1100 last year-- which makes St. Lucia a much more affordable destination.Chastanet reiterated his interest in establishing a U.S. Customsand Border Protection pre-clearance facility at the InternationalAirport, as in Aruba, Nassau and Freeport. He wondered whetherthere was a minimum number travelers required to secure such afacility, and noted that their airport had been designed to allowfor the possibility of a secure U.S. area.

7. (C) Chastanet then raised an idea he had been developing toexpand air travel between the U.S. and the Caribbean. The goal, hesaid, would be to reduce airport departure and security taxes bothfrom the U.S. and the Caribbean. He wondered whether the Caribbeancould be designated part of U.S. airspace for purposes of air travel. He noted that this would stand in direct contrast withcurrent British actions, as they are in the final steps ofincreasing dramatically the tax burden for flights to theCaribbean, which will likely result in a reduction in U.K. tourism.Chastanet pointed out that U.S. programs such as the CaribbeanBasin Initiative now had a limited influence on the local economy,due to the region\'s miniscule exports in tangible goods. A reduction in airport taxes would amount to a reduction in a tariffbarrier in the services sector that would have much more effect onthe region\'s economies. In cruise tourism, Chastanet said theWestern Hemisphere Travel Initiative was restricting the potentialmarket of U.S. travelers. Nevertheless, St. Lucia is pushingahead with plans to open a new pier in Soufriere, the town at thefoot of the Pitons, St. Lucia\'s UNESCO World Heritage Site and toptourist draw. (Note: Chastanet is an unelected Senator, and hasselected Soufriere as the constituency he hopes to capture in thenext election.)

8. (C) Charge asked Chastanet and Minister of National Security GuyMayers about the recent attacks on cruise ship visitors in the country\'s interior that resulted in Norwegian Cruise Line\'scancellation of port calls in St. Lucia. Chastanet assured theCharge that the government intended to be proactive in heading offsuch occurrences. He explained that there had been a proliferationof tourist sites in recent years -- remote waterfalls and hiking

sites -- and this is where recent problems had taken place. Thegovernment had already undertaken an effort to assess and registerall these sites with a view to security, and planned to shut downany site that could not guarantee security for visitors. He understood the critical importance of ensuring visitor safety forthe future of the country\'s tourism sector and broader economicviability, and was urging the cabinet to increase police capacityand visibility.

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OECS Open to Closer Collaboration

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9. (C) Charge also met with the Director of the Organisation ofEastern Caribbean States (OECS), Len Ishmael, to explore areas ofpotential U.S. cooperation with the generally effective regionalorganization. Ishmael noted that the organization\'s focus hasshifted considerably in recent years, with an expanded role in regional diplomatic representation for OECS states, bulk purchasingof medicines, environmental protection, and expansion of itsefforts in education and youth entrepreneurship. While the OECShas worked effectively with USAID, she believes there is potentialfor expanded cooperation. On Libya, she noted that the OECS hasencouraged the relationship with Libya as a potential source ofinvestment in the region and is now exploring an OECS mission inTripoli as has been established in Canada and Brussels.

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Comment

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10. (C) Under Prime Minister King, St. Lucia remains our closestally in the region, willing to break with CARICOM on UN votes, andstill keeping a healthy distance from ALBA despite enticements fromHugo Chavez. King is grateful that St. Lucia was identified as thefirst recipient in the region of Enduring Friendship assets tocombat drug trafficking, and also expressed gratitude for our pier

construction projects, which will give the Cost Guard greater rangein protecting St. Lucia\'s extensive shoreline. St. Lucia\'s economyseems to have survived the worst of the economic downturn, and although a number of projects came to a standstill, otherscontinued and some new investments are about to be launched. Thechallenge, as Chastanet explained, was to convince the bureaucracyand other members of the cabinet that tourism really was everybody\'s business, and to orient the government to making this a reality.HARDT

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