Guyana counters Caracas investment interference UN Good Officer invited for visit By Patrick Denny Stabroek News July 29, 2000 The Guyana Government yesterday unveiled a raft of measures to counter Venezuela's attempt to thwart investments in Essequibo and among these are an invitation to the United Nations Good Officer for discussions. It is also to set up a presidential advisory commission on the border--the membership of which would be broad-based and would include persons with the relevant technical competence and knowledge of the issues. President Bharrat Jagdeo said it was expected that the commission would be established within the next fortnight. He told a mid-afternoon press conference yesterday at the Office of the President that as a result of recent statements by officials of the Venezuelan government, he had "issued instructions to the Foreign Ministry to invite the United Nations Good Officer, Sir Oliver Jackman, to visit Guyana as early as possible for discussions on the matter." He said that UN Secretary-General Kofi Annan had not been approached since it was one of Sir Oliver's responsibilities to report to him any developments in the controversy. Also, he disclosed that he had written to Commonwealth Secretary-General, Don McKinnon, and CARICOM Chairman, St Vincent's Prime Minister Sir James Mitchell, "apprising them of recent developments with Venezuela." He said too that he had also spoken with McKinnon yesterday and had been informed that the Commonwealth Ministerial Committee set up to monitor the Guyana-Venezuela border controversy would be convened in New York in September on the fringes of the United Nations Millennium Summit. The moves were part of the diplomatic initiative the government has launched to "ensure there is no further deterioration in the situation on our borders and that the international community is kept fully informed of developments in our relations with our neighbours," Jagdeo said. He added that they were a response to statements by Venezuelan government officials announcing Venezuela's intention, as an act of sovereignty, to conduct exploratory activities for oil supported by a naval presence in an offshore area, considered part of Guyana's territory. Venezuelan President Hugo Chavez - expected to win re-election in polls tomorrow - has been among those making these statements and he has been behind the ratcheting up of Caracas' claim to Essequibo. President Jagdeo said he had no doubt "that the world would interpret this unilateral action as undermining the very process which the United Nations supports for a peaceful resolution of the [border] controversy." Venezuela's pronouncements, the President said, were in addition to "the potentially explosive nature of its pronouncements on the agreement with Beal Launch Services" which it has vowed to stop. He stressed that in the face of previous attempts to scare away investors from Guyana "governments past and present have stood steadfast in defence of Guyana's right to invite investors to invest anywhere within the 83,000 square miles of Guyana and in its Exclusive Economic Zone [EEZ]." The President also reiterated his government's resolve to expend whatever resources were necessary to attract investors and to bring safety to its borders. He said too that "every effort will be made to encourage holders of exploration licences to make full use of the agreements which they have entered into with the Government of Guyana." Emphasising his government's bi-partisan approach to border issues, the President said he had invited the leaders of the parliamentary political parties to a briefing on the border dispute with Suriname, but Leader of the Opposition and of the PNC, Desmond Hoyte, was yet to respond. He explained that the briefing was distinct from that Foreign Minister Clement Rohee had for representatives of the parliamentary parties at the Ministry of Foreign Affairs. In response to questions from the media, the President said that as far as he knew there had been no reaction from Beal to the statements by Venezuela. Nor, he said, was he aware of any statements by the oil companies, including Exxon, which had been granted licences to explore for oil offshore the Essequibo. President Jagdeo said that since 1958, Guyana had been issuing exploratory licences in the area based on custom and practice. However, he said, because the land frontiers with Venezuela were settled, Guyana was willing to negotiate the maritime border with Venezuela as it related to the EEZ in accordance with the UN Convention on the Law of Sea. He said that his government had a number of proposals to put to Venezuela. Questioned about the impact of Venezuela's actions, Jagdeo said that despite its efforts, there had been several investments in the Essequibo but that government had been unable to consummate them. And on investments in general, Jagdeo said that the government had to fight the negative image of Guyana as a place where there was state control, lines for foodstuff and political instability. He observed that this image was reinforced every time there were demonstrations on the streets and statements made advising investors to fade away. The President suggested that every unemployed person should want political stability and should frown on the actions of interest groups which tended to indicate political instability. He dismissed suggestions that there had been no investment in the country, explaining that the Balance of Payments, according to the International Monetary Fund statistics, show a net inflow of US$60 million annually in investments. He argued too that the environment was the best the private sector ever had to operate in, with interest rates down to around 16% to 18% from the 36% they were eight years ago, as well as the incentives regime being the best it had ever been. Follow the goings-on in Guyana in Guyana Today