GUYANA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00826A003200120001-7
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 12, 2016
• Document Release Date: November 26, 2001
• Sequence Number: 1
• Publication Date: July 1, 1966
• Content Type: CH

HcL cwt ii/ I1+ ,tdhc; roved For Release 2002/01/03 : CIA-RDP79T00826AO03200120001-7
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 Approved For Relea418 )Ra : WaR- Jgig 03200120001-7
July 1966
OCI No. 1794/66
Copy N2 412
Current Intelligence Country Handbook
GUYANA
This revision supersedes the handbook (British Guiana) dated July 1965,
copies of which should be destroyed.
DIRECTORATE OF INTELLIGENCE
SECRET/NO FOREIGN DISSEM
GROUP 1
Excluded from oufomalic
downgrading and
declacsigcarion
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Current Intelligence Country Handbooks are desig ied to give the
reader ready access to the salient facts about a country and its main
current problems. They are not intended to provide comprehensive
basic intelligence on a country or to speak with the authority of
coordinated national intelligence. The information presented is the
best available to the Office of Current Intelligence as of the date at
the top of the page.
This material contains information affecting the i rational defense
of the United States within the meaning of the Fipionage Laws,
Title 18, USC, Secs. 793 and 794, the transmission ar revelation of
which in any manner to an unauthorized person is pr;}hibited by law.
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July 1966 SECRET/NO FOREIGN DISSEM
Guyana received its independence from Great Britain on 26 May
1966 under a coalition government consisting of Prime Minister Forbes
Burnham's People's National Congress (PNC) and Finance Minister
Peter D'Aguiar's United Force (UF). Burnham is a nominal socialist
and D'Aguiar is a conservative but the two men have been able to
give the country a reasonably stable government, despite numerous
personal and policy differences which have often endangered their
partnership. Their coalition is held together mainly by the fear that
pro-Communist opposition leader Cheddi Jagan would come to power
should the present government break apart.
Politics have long developed along racial lines with outbursts of
serious violence resulting from the deep and bitter split between the
East Indians who comprise approximately half of the population
and the Negroes or mixed Negroes who comprise about 44%. The
Negroes support the PNC, and the East Indians are almost fanatically
loyal to Jagan and his People's Progressive Party (PPP). The UF,
although it cuts across racial lines to appeal to conservative business-
men as well as to most voting Amerindians, has not been strong
enough to become a real alternative to the racially based parties.
Elections are to be held in late 1968 or early 1969, and there is a good
possibility that Jagan's East Indians, because of their higher rate of
population growth, will have the votes to put Jagan back in office.
In order to prevent this, Burnham is considering importing large
numbers of Negroes from the overpopulated islands of the Caribbean
to offset the East Indians' voting strength or joining Guyana with
other Caribbean nations in a federation or a unitary state in which
Negroes would be in the majority. He is also weighing the possi-
bility of postponing the elections or even imprisoning Jagan, hoping
thereby to weaken the PPP and split the East Indian vote.
Jagan apparently has abandoned any plans of employing large-
scale violence against the government. He is aware of Burnham's
determination to prevent his return to power and fears that Burnham
will imprison him at the first sign of trouble. There is a good possi-
bility that, if requested, British troops would come to Burnham's
rescue should the Guyanese security forces appear incapable of deal-
ing with any disturbances.
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SECRET/NO FOREIGN DISSEM July 1966
2. Economic
Poor economic conditions offer demagogic politicians like Jagan
the opportunity to appeal to the masses. Unemployment is estimated
at 21 percent. Nevertheless there may be some improvement in the
offing. New mineral deposits have been discovered and the govern-
ment is meeting with some success in attracting private investment.
This plus foreign aid, principally from the United States and Great
Britain, might speed the economy's present slow progress.
Fundamental economic problems include the country's overdepend-
ence on bauxite and the relatively unfavorable world prices for
Guyana's rice and sugar exports, the lack of adequate transporta-
tion and power, chronic labor relations problems, and the exodus for
political reasons of a substantial number of the country's trained
technicians and skilled laborers in recent years. The rice industry is
a particularly difficult problem because crop quality is low and pro-
duction methods are costly. Furthermore, the government must find
new lucrative markets in order to maintain the artificially high price
the government's rice marketing board has been paying the predomi-
nantly East Indian rice farmers. Burnham has continued to pay the
high price for political reasons even though the ind-,istry no longer
has the benefit of the special sales to Cuba at above the world market
prices which Jagan was able to arrange.
The government obtains more than 50 percent of its current revenue
from customs and excise taxes. About 34 percent comes from income
and sales taxes. The tax system is generally well administered.
Total exports amount to about 54 percent of GDP, whereas total im-
ports equal about 50 percent. The United Kingdom is Guyana's
most important trading partner, followed by Canada and the United
States.
Trade between Guyana and other Latin American countries is min-
imal. Whereas in 1964 trade with Communist countries amounted to
about $7 million, by 1965 it had dropped to only $2.2 million. Some
of the goods from Communist countries were imported by the Guyana
Import Export Corporation (GIMPEX), which is a private corpora-
tion affiliated with the PPP.
3. International Relations
Although Burnham, like many a leader of newly ind=pendent states,
has said his country will be neutral in world affairs, the Government
of Guyana is pro-Western and anti-Communist. Because of its British
heritage, it is more interested in the British Caribbean than in Latin
2 - Guyana
SECRET/NO FOREIGN DISSEM
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July 1966 SECRET/NO FOREIGN DISSEM
American affairs. Burnham aspires to become leader of the Caribbean
unity movement and together with Barbados and Antigua, Guyana
has already formed the Caribbean Free Trade Area (CARIFTA). Ile
hopes this organization will become the nucleus of a political federa-
tion embracing the entire non-Latin Caribbean. The UN Security
Council has recommended that the General Assembly vote to accept
Guyana for UN membership.
Guyana has inherited border disputes with Surinam and with
Venezuela. The former involves little territory but concerns owner-
ship of off-shore oil deposits which may exist at the mouth of the
Courentyne River. The disputes over Venezuela's claim to more
than half of Guyana's territory was becoming quite heated in Feb-
ruary 1966 when the two parties agreed to refer the case to a joint
commission for settlement within four years. Both disputes are likely
to be settled peacefully.
4. Subversion
There is no Communist Party per se in the country, but Jagan's
PPP is Communist-oriented and maintains close ties with the USSR,
Cuba, the Communist Party of Great Britain, and other foreign Com-
munist groups and individuals. Since losing power in the December
1964 election, the PPP has developed a moderate-extremist split which
has weakened the party and kept it from developing a firm policy
vis-a-vis the Burnham government. About 50 PPP members have
been trained in sabotage in Cuba and although there is no organized
insurgent activity at this time some elements of the PPP have been
carrying out sporadic acts of sabotage and violence. At present, pub-
lic order is maintained by a police force of about 1,800 (to be raised
to 2,200 in five years) with a 400-man reserve. They are supported
by a battalion of British troops which is scheduled to leave on 31
October 1966. By then the Guyana Defense Force (GDF), which
will consist of a battalion of about 650 men with a reserve of around
700, is expected to be fully trained. Both the police and the GDF,
which are now predominantly Negro, are eventually to be racially
balanced and under indigenous officers. The Guyanese forces will
probably be able to cope with sporadic violence. However, it is un-
likely that they could control a situation of near anarchy like that
which existed in the racial disturbances of 1963 and 1964.
SECRET/NO FOREIGN DISSEM Guyana - 3
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SECRET/NO FOREIGN DISSEM July 1966
Chronology of Key Events
1950 (January) Cheddi Jagan and Forbes Burnham organize
People's Progressive Party (PPP).
1953 (Early) A new and advanced constitution introduced, with
universal adult suffrage, a bicameral legislature and a min-
isterial system.
(April 27) PPP wins overwhelming majority in general elec-
tions.
(October 8) UK suspends the constitution, fearing Jagan is
turning the colony into a Communist state.
1955 (February) Burnham breaks with Jagan and forms the PPP
(B).
1957 (August 12) The PPP (J), Jagan's faction of the party, wins
the general elections.
(October) Burnham drops pretense of PPP affiliation and
forms the People's National Congress (PNC).
(November) UK restores constitutional government.
1960 (March 7-31) London constitutional conference; principle of
independence for British Guiana recognized.
1961 (August) New constitution confers full internal self-govern-
ment with United Kingdom retaining defense and foreign
affairs functions.
(August 21) PPP wins general elections; Jagan becomes pre-
mier.
1962 (February 14-19) General strike degenerates into bloody ra-
cial rioting when the opposition tries to use it to bring
down the Jagan government.
(October) London constitutional conference considering ar-
rangements for independence breaks down because of lack
of agreement among Guianese.
1963 (April-July) General strike paralyzes economy; state of emer-
gency declared; Cuba bails out Jagan financially to pre-
vent his fall from power.
(October 22) London constitutional conference results in UK
decision to hold next elections under proportional repre-
sentation in December 1964 after Guianese political parties
ask United Kingdom to settle outstanding political issues.
1964 (February-July) Violent jurisdictional strike among sugar
workers staged by PPP in hopes of preventing 1964 elec-
tions.
(May) Increasing bloodshed and racial violence causes UK
governor to assume emergency powers.
4 - Guyana
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July 1966 SECRET/NO FOREIGN DISSEM
1964 (August) PPP decides to compete in forthcoming elections
although "under protest."
(December 7) PPP gains slim plurality in elections but
Burnham takes over as premier on 14 December because
his party and the smaller United Force form a coalition
whose combined votes make up a majority.
1966 (May 26) British Guiana becomes independent state of Guy-
ana with Burnham as prime minister.
Holidays and Significant Dates
1 Jan New Years Day
Mar-Jun Movable religious observances: Good Friday, Holy
Saturday, Easter Monday, Whit Monday
1 May May Day
14 Jun Queen's Birthday
1 Aug Bank Holiday
10 Oct Clemente's Holiday
7 Nov Peacemakers' Day
25 Dec Christmas
26 Dec Boxing Day
LAND
Total sq. miles: 83,000; 6.5% arable (of which 97% is cultivated);
84% forested; 8% unproductive; 1.5% inland water
PEOPLE
Population: 650,000 (1966 est.); density 7.5 per sq. mile; males
15-49, 144,000; physically fit for military service 75,000 (1966 est.)
Ethnic groups: 50% East Indian; 44% Negro and mixed Negro;
4% native Amerindian; 1% Portuguese, 1% other European,
less than 1% Chinese
Religion: Hindu, Moslem, Protestant, Roman Catholic
Language: English
Literacy: 86 %
Labor force: 174,625 (1966 estimate)
Organized labor: 25% of total force
Unemployment: 21% (1966 estimate)
GOVERNMENT
Type of government: constitutional monarchy and independent
member of the Commonwealth of Nations; parliamentary form
SECRET/NO FOREIGN DISSEM Guyana - 5
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SECRET/NO FOREIGN DISSEM July 1966
Branches of government: Council of Ministers presided over by
prime minister; 53-member National Assembly elected; Supreme
Court
Government leader: Linden Forbes Sampson BurnlLam
Attitude incumbent regime toward US: friendly
Capital: Georgetown
Principal political parties and leaders:
People's National Congress (PNC), Linden Forbes Sampson
Burnham
People's Progressive Party (PPP), Cheddi Jagan
United Force (UF); Peter D'Aguiar
Voting strength (1964): 46% PPP, 41% PNC, 12% OF
Suffrage: universal over age 21
Significant exclusions from voting: none
Eligible voters as % of adult population in last national elections:
100,70
Abstention % in last national elections: 41/o
Estimated extent of fraud in last national elections and likely extent
in next national elections: none in last election bnt possible in
next
System of balloting: proportional representation theoretically favors
formation of small parties but none of significance have been
formed
Next national elections: late 1968 or early 1969 but may be post-
poned
Member of: ILO
ECONOMY
GNP: $172.8 million (1965); $252 per capita (1965)
Rate of inflation: 4.4% in 1965
Budget (recurrent): expenditures $48.8 million; revenues $47.9 mil-
lion (1966). This will bring current account into balance
Agriculture: self-sufficient except for wheat, processed meat, dairy
products, and processed coffee
Major industries: small agricultural processing establishments; min-
ing of bauxite; alumina production
Critical shortages: fuel, transportation facilities, tram red technical
personnel
Electric power: 61,000 kw capacity (1964); 170 kw hr produced
(1964), 270 kw-hr per capita (1964)
Exports: (1965) $164.7 million
6 - Guyana
SECRET/NO FOREIGN DISSEM
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July 1966 SECRET/NO FOREIGN DISSEM
Imports: (1965) $179 million; petroleum products, manufactured
goods, processed meat, dairy products
Exports to US: (1965) $29.6 (18%;)
Imports from US: (1965) $42.9 (24%)
US aid: FY 1965 $12.4 million; FY 1966 $9.5 million includes a $2
million AFL-CIO aid housing guarantee
Exchange rate: Guyana $1.00 = US$.583
COMMUNICATIONS
Railroads: 191 miles; 141 miles standard gage, 50 miles narrow
Highways: about 1,040 miles, 85 bituminous, 195 gravel, crushed
stone and bauxite ore, 760 earth and sand (improved and unim-
proved); network sparse, disconnected; no international connec-
tions
Inland waterways: estimated 3,700 miles; Demerara River navigable
to Mackenzie by ocean steamers, others by ferryboats, small craft
only
Airfields: 67 airfields; 46 usable, 3 with permanent surfaced run-
ways, 12 with runways 4,000-7,999 ft., 2 seaplane stations (only
1 open to international traffic)
Telecommunications: adequate, modern
DEFENSE FORCES
Personnel: one battalion UK troops scheduled to be withdrawn 31
October 1966 to be replaced by the Guyana Defense Force of
650 men with a reserve eventually to consist of approximately
700; 1,800-man police force to be raised to 2,200 in five years with
a 400-man reserve
Air facilities: 67 airfields; 46 usable, with only one (Atkinson Field)
of any significance; 2 seaplane stations
Military share of national budget: (1966) $6.3 million (12.8%)
(British detachment expenses reflected in UK budget)
RELATIONS WITH COMMUNIST COUNTRIES
Trade with Communist countries amounted to only $2.2 million in
1965 ($7 million in 1964)
National Intelligence Survey (NIS) Material
The following sections of the NIS are relevant:
NIS Area 95A (Guyana)
GENERAL SURVEY in draft, to be published in fall 1966
Sec 22 Coasts and Landing Beaches (Feb 1965)
See 23 Weather and Climate (Nov 1958)
See 25 Urban Areas (Jul 1965)
SECRET/NO FOREIGN DISSEM Guyana - 7
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SECRET/NO FOREIGN DISSEM July 1966
Sec 30 Introduction-Transportation and
Telecommunications
Sec 32 Highway
(Oct 1959)
Sec 33 Inland Waterway
(Oct 1956)
Sec 35 Ports and Naval Facilities
(Mar 1957)
Sec 57 Subversion
(Jun 1958)
NIS Area 95 (The Guianas)
Gazetteer
(Mar 1954)
Map
The best available general reference map is: Directorate of Colonial
Surveys: British Guiana; 1:2,250,000; 1963 (earlier edition available
as CIA Map No. 21548)
8 - Guyana
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