Dec 29, 78 • 2230 • State-Georgetown • 327031

[Editor’s note: The text for this document was released in 2014 by the now-defunct Wikileaks website at https://wikileaks.org/plusd/cables/1978STATE327031_d.html. This URL may be available through the Wayback Machine.]

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STATE 327031
ORIGIN AID-20
INFO OCT-01 ISO-00 ARA-11 SS-10 SP-02 EB-08 HA-05 L-03 H-01 ABF-01 /062 R
DRAFTED BY LAC/CAR:JPLOCKARD:DH
APPROVED BY DAA/LAC,ECOY
LAC/CAR:EJMELAVEN (DRAFT)
ARA/CAR:RMCCOY
ARA/CAR:AHEWITT
LAC/GC:JKESSLER
PPC:RBIRNBERG
GC
LAC/GC:MBALL (INFOR)
——————042108 292335Z /61

O 292230Z DEC 78
FM SECSTATE WASHDC
TO AMEMBASSY GEORGETOWN IMMEDIATE
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AIDAC, JOINT STATE AID MESSAGE

E.O. 12065: N/A TAGS:
SUBJECT: USE OF AID CONTINGENCY FUND FOR AIRCRAFT CHARGES IN GUYANA
REF: A) GEORGETOWN 4414, B) GEORGETOWN 4064, C) STATE 305327

1. REFTEL (C) INDICATED APPROVAL BY AID FOR UTILIZATION OF CONTINGENCY FUNDS UP TO 55,000 DOLLARS TO FINANCE EMERGENCY TRANSPORTATION (DESCRIBED IN REF B) RESULTING FROM INABILITY OF GOG TO SEND ADEQUATE VITAL SUPPLIES TO

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ISOLATED AREAS OF GUYANA.

2. SINCE THE RENTAL OF AN ENGINE TO RECONDITION THE TWIN OTTER AIRCRAFT (DAMAGED AT PORT KAITUMA) WILL ACCOMPLISH THE SAME MISSION AS THE LEASE OF A PLANE FROM ANOTHER COUNTRY, USAID/GUYANA IS AUTHORIZED TO REIMBURSE GUYANA AIRCRAFT CORPORATION (GAC) FOR THE COSTS OF THE RENTAL OF AN AIRCRAFT ENGINE FOR APPROXIMATELY 65 DAYS (IN THE AMOUNT OF 5,700 DOLLARS PER ESTIMATE REF A PARAGRAPH 3A).

3. WE UNDERSTAND THAT GAC MAY BE PRESSING AN INSURANCE CLAIM FOR THE REIMBURSEMENT OF THE COSTS OF ENGINE RENTAL AND REPAIR. FYI. WE HAVE BEEN UNABLE TO OBTAIN ANY DETAILS ABOUT THIS MATTER FROM MR. FORTUNE OF L WHO REPORTS THAT HIS LAST INQUIRY TOOK PLACE THREE WEEKS AGO IN GEORGETOWN. END FYI.

4. WE WISH TO ENCOURAGE THE EMBASSY TO INQUIRE INTO THE MATTER OF WHETHER GAC’S INSURANCE WILL COVER THE ENGINE RENTAL AND ALSO THE COST OF REPAIRS TO THE DAMAGED ENGINE.

5. IN THE EVENT THAT INSURANCE WILL REIMBURSE THE COST OF THE ENGINE RENTAL USAID/G IS REQUESTED TO PRESS FOR REIMBURSEMENT FROM GAC OF ANY AMOUNT UP TO 5,700 DOLLARS PROVIDED BY AID.

6. IN THE EVENT THAT INSURANCE WILL PAY FOR RENTAL OF TEMPORARY REPLACEMENT ENGINE BUT NOT FOR REPAIR OF DAMAGED ENGINE PLEASE ADVISE.

7. REGRET THAT AID CONTINGENCY FUNDS WHICH HAVE BEEN ALLOTTED TO PROVIDE EMERGENCY HUMANITARIAN NEEDS OF INLAND

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TRANSPORT BETWEEN GEORGETOWN AND ISOLATED INTERIOR COMMUNITIES, CANNOT REPEAT NOT BE USED TO COVER THE COSTS OF THE REPAIR OF THE DAMAGED ENGINE AS REQUESTED IN REFTEL A. HOWEVER, IF THERE ARE OTHER CIRCUMSTANCES GOVERNING THE JUSTIFICATION FOR AID FINANCING OF THE REPAIRS WE WOULD BE WILLING TO REVIEW THAT PART OF GAC’S REQUEST.

NEWSOM [David D. Newsom, Under Secretary of State for Political Affairs]

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