President Samuel Hinds (ag)

c/o Office of the Prime Minister

Wights’ Lane,

Kingston,

Georgetown

May 22, 2000 

Dear Mr. President, 

Guyana Is First has followed with keen interest the now signed agreement with Beal Guyana Launch Services L.L.C., to establish a satellite launching facility in Region 1. In the face of commitments given, by you and the Prime Minister, to civil society and NGOs to play a role in the formulation of policy, the precipitate signing of the agreement with Beal appears to be a breach of faith by your government with the people of Guyana. The agreement furthermore, does not reflect any worthy consideration of the numerous suggestions that arose from a considerable body of critical but constructive and useful public opinion on this matter. The areas of concern are as follows: 

1.Consultation: We do not believe that this proposed transaction has been sufficiently widely debated and discussed in the society and that the level and extent of consultation required with the occupants and users of the land and resources of the proposed site, the wider Amerindian communities of Region 1 and the Regional Democratic Council have been adequately carried out. We are firmly of the view that for a project of this nature to succeed, there must be extensive consultations with all the social partners, and all the parliamentary parties. This is an essential pre-requisite for a project of this nature. To just lay the signed document in Parliament as a fait accompli would not constitute any proper consultation on the matter.

2.Use of facility: We are stunned by the ominous silence of the use of the site and the particular types of activity that can be conducted there, including types of launches, description of allowable payloads and categories of satellites. There is absolutely no prohibition of military and offensive launches/payloads and this is a dangerous omission that needs immediate rectification. Unrectified, this facility would pose a clear and present danger to the national security of Guyana, inviting, unwittingly, foreign and terrorist attacks on Guyana. We are also extremely concerned that the agreement permits Beal "to obtain and deploy" additional military capabilities and resources and we believe that the only military presence at the site should be that of the Guyana Defence Force in addition to Beal's internal guard/security service. Moreover, the reference to the need to comply with International Traffic in Arms Regulations suggests some type of arms trafficking and this is an unfortunate reference that merely compounds suspicions. There is a further reference to export of arms and ammunition. All of this is unfortunate. It has to be made abundantly clear that this is a civilian, non-military facility dedicated exclusively to peaceful commercial work. 

3.Financial returns: An examination of the proposed launch fees and payments for the Primary, Remote and Buffer areas together with the payment for the eviction and relocation of local residents, coupled with the absolutely bizarre granting of a 99 year tax holiday, leaves us with the inescapable conclusion that the financial returns to Guyana are quite minuscule and that your negotiators saw the returns from this facility only in terms of image and probable tourism spin-off. Besides the fact that the laws of Guyana do not permit for a 99 year tax holiday, it is clear that Guyana should be receiving a better return than the miserly sum now anticipated. We propose instead a 7% fee on the launch fees (off the top) a 10 year tax holiday as prescribed in chapter 81:02 and a 25 year agreement (renewable) with a 25 year land lease arrangement. 

4.Dislocation of and restrictions upon Guyanese: Contrary to pronouncements made by various spokespersons for the government, the facility is a restricted area and off-limits to all persons except those authorised by Beal. In addition the agreement speaks of prohibition of human habitation or occupation within the Buffer Area. We find this unconscionable and destructive to the economic intent of the local population, especially in light of Beal's right to construct security fences as it deems necessary to secure this facility- and facility, according to the agreement is described as "the primary site, the remote site, the additional area, all facility equipment and the infrastructure". In light of the secrecy cited and the precipitate signing in an atmospheresuch as that seen on the news, replete with heavily armed police – we fear that this means the entire 200,000 acres. There is also the absence of cultural heritage assessment study given the fact that the Waini cultural sites is recorded as one of the world's most endangered.

5.Transfer of land and company to others: Much has been said about the land and the protection afforded against transfer or sale. The fact is that there is no restriction on the transfer or sale of shares in Beal Aerospace to third parties and it is axiomatic that he who owns or controls Beal or its subsidiaries in the future, owns and controls the land. The agreement signed lacks clear guidelines on the transfer of ownership/control of this company and we could wake up one morning and find that we are dealing with persons unknown in the same say that Beaverbrook, Prince Group and others have been shuffling around Guyana's logging rights among themselves, overseas, only to advise us of these developments after they had taken place. We have set out our main concerns but they remain quite a few others. It is very important that Beal (and the government too) obey all the laws of Guyana. We need to defend the sovereignty of Guyana and avoid Jonestown II or Bealtown I. We cannot allow a state within a state, no matter how much we crave foreign investment. Should we do so, we would stand condemned for generations to come and history will be unkind to all of us who allowed it by omission or commission. In light of the breach of faith, with our Guyanese brethren, by your government we of a necessity must take the unusual step of informing the public, simultaneously, of our grave concerns expressed to you. We look forward to an urgent and early response. 

Yours sincerely, 

Frank N. Beckles M.D. 

Chairman 

Guyana Is First