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January 26, 1999

SURALCO DROPS ALUMINUM PRODUCTION BY 30 %

The Suriname Aluminum Company (SURALCO) has decided to shut down 22 of the pots at their Paranam Operations. This was published in the latest edition of of the Company's bulletin Bauxico News. One of the reasons for this is said to be the low water level at the van Blommenstein's Lake which is at its lowest since the Hydro-Electric power station was put into operations. This action will also bring about a cut back in workers and the contract workers will be the first to feel the blow of the axe. The Company has decided to keep the CAO workers. Suralco's Director Johnny Palmer has notified the Minister of Natural Resources, Errol Alibux in a letter over these measures. In his letter the Director has pointed out to the Minister that the EBS should be better controlled and that they should stick to the terms of their contract. The EBS is drawing much more energy from the power station at Afobaka than is agreed upon in their contract. Another reason why the Suralco has brought back its production is the LME price of 1227 US dollarper ton which will result in losses for the Company. By cutting down on production the Suralco hopes to cut back on costs which according to Palmer will not harm the Government's income.

SURINAME WILL HAVE TO FOOT THE BILLS FOR CUBAN DOCTORS

The expenses covering the tickets etc for the 52 Cuban doctors that are expected to come sometime in the near future to Suriname to work in the interior will have to be paid by the Ministry to which these doctors will be attached. This was stated in a diplomatic nota that was sent by the Cuban authorities via the non residing Suriname Ambassador for Cuba Humphry Hasrat to Suriname. This now means that all former talks of the doctors being a friendly-gift from President Castro to the Suriname people was straight out of Fantasy land. Cuba also would first like to make sure that Suriname agrees to certain conditions before the doctors depart for our shores. Cuba would also like to know if Suriname really needs the extra medical help. In the mean while members of the Medical Institute and of the Medical Association have protested against this action stating that there is no need for more doctors because there are enough local doctors to fill the posts in both town and district.

ALBINA VERY RISKY FOR TOURISTS

The Suriname Police Corps has sent a team of 30 police men including 3 inspectors to the Suriname-French Guyana border town of Albina where reports have been made of a wild west situation that is at present going on in that area. French Guyanese tourists have been the victims of robberies and other crimes during the past month and all efforts are being made by both the Suriname as well as the French Guyanese authorities to clamp down on crime in that area. The French will now patrol the Marowijne river more often. According to police spokesman Ro Gadjadar 8 persons have already been arrested for drug dealings and other crimes. Both the Suriname and the French Guyanese authorities have made firm agreements to upkeep the safety, living conditions and hospitality and to prevent further illegal practices at Albina so that the border town will once again be attractive and safe from these bandits.

ZEEUW AND GRAANOOST WILL TESTFY IN CASE AGAINST BOUTERSE

Luitenant Colonel Marcel Zeeuw and Iwan Graanoogst have departed for Holland where they will testify in the Dutch case agains against Bouterse. Frank Playfair, who is not at all happy with a statement in the dossier that he was present in Colombia at a meeting with Bouterse, Henk Herrenberg and Pablo Escobar, has stated that should he go to Holland to testify it would not be for Bouterse but for himself because as far as he knew he never visited Colombia and has never travelled anywhere together with Henk Herrenberg and Desi Bouterse. Iwan Graanoogst who left yesterday stated that he did not know what they will ask him but he will give truthful answers to all questions put to him. Marcel Zeeuw who also left yesterday has also stated that he does not know what the evidence against Bouterse is but that he believes in the Dutch Judiciary System. Zeeuw has paid for his own ticket but can be given a refund via a special regulation that was set up for this. Zeeuw plans to stay in Holland for as long as he is needed in this case which begins on March 22

FIRST TREE IN ALCOA'S FOREST PLANTED AT PARANAM STAFF VILLAGE

Suralco's new President-Managing-Director Johnny Palmer has officially opened Alcoa's "One Million Trees Program" by planting the first tree in the staff village at Paranam. The Aluminum Company of America (ALCOA) , Suralco's mother company, plans to plant 1 million trees through out the 28 countries in which the company has its operations within the next decade. Johnny Palmer stated that it is a challange for the 83 year old company but that he has no doubts as to the success of this program. In Suriname the Suralco will plant 20,000 trees. Palmer said he plans to get both children and parents involved in this plan. Palmer explained that this was Alcoa's way of giving back something to nature. Para's District Commisssioner Rolina Karim approved of this project and said that the planting of trees will help increase the air supply of Suriname and of the Worl.

PRESIDENT CENTRAL BANK EXPECTS ECONOMIC GROWTH OF 4-6 PERCENT

Henk Goedschalk, President of the Central Bank has announced that he expects an economic growth of 4-6 percent and an inflation of maximum 20 percent for 1999. This will come as a result of the regulations that the bank took last year and the actions they intend to take this year that will eventually lead ta a stable economic situation. Goedschalk spoke of this during his traditional New Years reception for the toppers of the Financial and Industrial sectors of the country. According to Goedschalk the country registerd an economic growth of 4 percent for the past year while the inflation figure registerd by the ABS was 18,9 percent. In 1997 the growth was 7 percent and the inflation 7,1 percent. The Central Bank sees 1999 as a year in which the bank is put to the challange of developing more effective and efficient ways to keep the X-change rates from fluctuating and to work on the inflation problem. Goedschalk sees the implementation of a financial reconstruction program crucial for the recovery of the economy. The bank plans to recruit experts for outside to help buid up a modern, efficient and competative financial sector.

CURRENCY RATES TAKE A SLIDE ON THE X-CHANGE MARKET

Since the police began their actions against the illegal money vendors, the rates for the US dollar and Dutch guilder has begun to slide. The buying rates at the cambios yesterday were around 750-760 for the US$ and 390-395 for the Dutch guilder. Last week the cambios bought the dollar for 770. The rates at the Central Bank has also dropped from 737 to 730. A few daring street vendors who are still trying to stay in business have bought the dollar for 810 and the Dutch for 415. The record price for the dollar had reached 860-875 on the black market. cambios owners are convinced that it is the Black Market that causes the rates to rise and they do believe that the rates will stay stable if the police keeps the black market under controll.