(Final Text)

STATEMENT OF THE EMBASSY OF GUYANA IN RESPONSE TO ARTICLE PUBLISHED IN THE
"WASHINGTON POST" ON SEPTEMBER 23, 1996

FACTS AS THEY PERTAIN TO AUDIO TEXT OR "X-RATED PHONE LINES" SERVICES IN
GUYANA, AND THE GOVERNMENT'S STAND ON THE MATTER

1.	The Guyana Telephone and Telegraph Company Limited (GT&T), 80
percent of which is owned by a US entity, commenced offering audio text
services or X-rated phone lines sometime in 1992. The Government believes
that a great proportion of GT&T's audio text service is of an offensive
nature.

2.	The Government is concerned that GT&T is departing from the stated
objective of its license to operate the business of providing telephone
facilities to the people of Guyana, and is fact making its business mainly
one that provides audio text services to customers outside Guyana. (As the
article admits, persons living in Guyana have no access to the audio text
services of GT&T). According to a release issued on May 7, 1996  by the US
company, Atlantic Tele-Network, Inc. (ATN), the principal shareholder of
GT&T, during the three- month period ending on March 31, 1996, a total of
63.9 percent of the international call minutes through the GT&T system was
taken up by audio text services. The figure for the corresponding period
in 1995 was 51.6 percent. While audio text revenues of GT&T are rapidly
rising, the company's investment in providing telephone service seems to
be declining. It is understood that for this year only 3000 lines have
been added so far.

3.	The Government is concerned that the company's pre-occupation with
audio text service is not matched by a commitment to fulfilling its
contractual obligations regarding expansion of, and provision of basic
telephone service to Guyanese. In fact, these obligations are neglected
and this has necessitated the filing of a complaint by the Government
against GT&T before the Guyana Public Utilities Commission, regarding the
company's continuing failure to implement an Expansion and Service
Improvement Plan that was contractually required to be fulfilled some 19
months ago. The Government, from time to time, has directly made known to
the company its displeasure at the company's increasing focus and reliance
upon audio text services. Government nominated members of GT&T's board
have also repeatedly voiced these concerns of the Government.

4.	As early as February 1993, following the change in political
administration after the October 1992 elections,  the new Government wrote
to GT&T regarding discontinuance of offensive audio text services. Again
in 1994, the Government by letter requested that offensive audio text
services be terminated. This written request was followed by a meeting
between the President of Guyana, Dr. Cheddi Jagan and  senior members of
the Cabinet of Ministers and representatives of the company at which the
Government's request was repeated. The Government on this latter occasion
stressed its displeasure over the offensive nature of the service offered
and stated that the international image of the country is being tarnished
and, further, that offering such offensive services contravenes the law.
The religious bodies and the general public are also pressing for
termination of offensive audio text services.

5.	On the article's relevation that the GT&T garners a revenue of
US$100 million annually from its X-rated phone lines, this amount has
never been yet declared by the company to the Guyana tax authorities. 

6.	In response to the Government's request for the termination of the
service, representatives of the company claim that since audio text
services generate substantial revenues, withdrawal of the service would
necessitate great increase in rates charged for telephone services, e.g.,
approximately 1000 percent in domestic rates and approximately 92.9
percent in international rates, in order to earn their contractually
assured 15 percent return on investment.

7.	On this argument by GT&T, the Government is of the view that it
will be the Public Utilities Commission of Guyana that will make the
determination as to the necessity of any rate adjustments, consequent upon
the  termination of GT&T's  self-imposed reliance upon audio text
services. The Public Utilities Commission, by application of its statute,
will also determine the method by which any necessary increases may be
collected.

8.	It should also be noted that the Public Utilities Commission is
actively considering measures for reducing the extent to which facilities
are provided for audio text services. One public hearing on this matter
has already taken place; another occurred on September 24, 1996.

September 26, 1996