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FY 1974 COMMERCIAL ACTION PROGRAM (CAP) - HAITI

Feb. 15, 1974, 2:20 p.m.

(C) STATE 234462 1. ACTION STAFF FOR HAITI CAP HAS BEEN ESTABLISHED AS FOLLOWS: STATE: ARA/CAR, CHIEF OF HAITIAN POLITICAL/ ECONOMIC AFFAIRS, JOHN W. SIMMS; ARA/ECP, DEPUTY REGIONAL COMMERCIAL COORDINATOR, EDWARD M. COHEN; EB/OCA, LIAISON OFFICER FOR ARA, JOHN SIMMONS. COMMERCE: OIM/BIC, DEPUTY ASSISTANT SECRETARY, WILLIAM S. LYNCH; HAITI COUNTRY SPECIALIST, WALTER HAIDAR. USIA: ILA, HAITI PROGRAM OFFICER, D. BRUCE ALBRIGHT. 2. ACTION STAFF HAS CAREFULLY REVIEWED EMBASSY'S PROPOSED CAP (REF A) AND TRANSMITS FOLLOWING COMMENTS: (A) WHILE EACH OF THE OBJECTIVES AND ACTIONS PROPOSED IN THE CAP ARE WORTHWHILE, THEY ARE NOT YET ADEQUATELY FOCUSSED ON THE HAITIAN MARKETS FOR PARTICULAR U.S. PRODUCTS AND/OR SERVICES THAT SEEM TO HAVE HIGH POTENTIAL FOR INCREMENTAL UNCLASSIFIED UNCLASSIFIED PAGE 02 STATE 031085 SALES (I.E., TARGET INDUSTRIES AND TARGETS OF OPPORTUNITY). AS WAS DETAILED IN REF C, SOME THREE TO FIVE OF THE OBJECTIVES SET FORTH IN A CAP SHOULD EACH CALL FOR IN- CREASING U.S. PENETRATION OF THE HOST COUNTRY'S MARKET FOR A PARTICULAR TARGET INDUSTRY OR TARGET OF OPPORTUNITY, AND EACH OF THE ACTIONS LISTED UNDER EACH SUCH OBJECTIVE SHOULD STATE HOW AND WHEN THE POST WILL MAKE A DEFINITE MOVE TOWARD ATTAINING THE OBJECTIVE. (B) IF, FOR EXAMPLE, THE EMBASSY HAS REASON TO BELIEVE THAT THE HAITIAN MARKET FOR, SAY, SUGAR-MILL MACHINERY AND EQUIPMENT IS A PROMISING TARGET OF OPPORTUNITY, THEN OBJECTIVE ONE IN THE CAP MIGHT BE: "INCREASE SALES OF U.S. SUGAR-MILL MACHINERY AND EQUIPMENT", AND UNDER THIS MIGHT BE LISTED VARIOUS SPECIFIC ACTIONS SUCH AS THE FOLLOWING: "ACTION ONE: BY MARCH 31, MAKE DIRECT PERSONAL APPROACHES TO THE OWNERS OF EACH OF THE SUGAR MILLS IN HAITI, AND TO BUSINESSMEN WHO ARE KNOWN OR BELIEVED TO BE PLANNING TO CONSTRUCT SUGAR MILLS. FOR THIS PURPOSE, AMONG OTHERS, THE COMMERCIAL ATTACHE WILL MAKE A FIELD TRIP TO CAYES AND ANOTHER TO CAP HAITIEN, AS WELL AS A VISIT TO THE HAITIAN- AMERICAN SUGAR CO. MILL NEAR PORT AU PRINCE. COMMERCE AND USIA TO SUPPLY RELEVANT PROMOTIONAL MATERIALS (BROCHURES, VIDEOTAPE PRESENTATIONS, ETC.) IF AVAILABLE, BY FEBRU- ARY 28, FOR USE IN THESE APPROACHES. ACTION TWO: ON THE BASIS OF INFORMATION DEVELOPED DURING THESE VISITS, AND AVAILABLE TRADE DATA, PREPARE AND SUBMIT BY APRIL 15 A DESK STUDY ON THE HAITIAN MARKET FOR SUGAR-MILL EQUIP- MENT AND MACHINERY. ACTION THREE: PROMPTLY SUBMIT A TRADE OPPORTUNITY REPORT ON EACH SPECIFIC OPPORTUNITY DETECTED DURING THE INTERVIEWS WITH MILL OWNERS AND OTHER POTENTIAL CUSTOMERS. ACTION FOUR: UPON RECEIPT OF THE STUDY AND T.O. REPORTS, COMMERCE WILL DISSEMINATE THESE TO SUITABLE U.S. SUPPLIERS, AND WILL CONSIDER POSSIBIL- ITIES (IF ANY) FOR FEATURING SUGAR-MILL MACHINERY AND EQUIPMENT IN FY 1975 DIRECT-PROMOTIONAL EVENTS IN HAITI." WE STRESS THAT THE ABOVE-QUOTED OBJECTIVE AND ACTIONS ARE MERELY ILLUSTRATIVE, BUT THEY ARE THE KIND WE WOULD LIKE TO SEE IN THE HAITI CAP. UNCLASSIFIED UNCLASSIFIED PAGE 03 STATE 031085 (C) IN CALLING FOR SUCH HIGHLY SPECIFIC OBJECTIVES AND CONCRETE ACTIONS TO BE STIPULATED IN THE POSTS'S CAP, OUR INTENTION IS NOT SO MUCH TO INCREASE THE POST'S COMMERCIAL WORKLOAD AS TO CHANNEL IT INTO MORE REWARDING AVENUES OF PURSUIT. A BASIC PRINCIPLE OF COMMERCIAL PROGRAMMING IS THAT EFFORTS SHOULD BE FOCUSSED ON A FEW PROMISING TARGETS, RATHER THAN BE SPREAD WIDELY BUT THINLY. (D) WE VIEW THE EMBASSY'S PROPOSED CAP, BY AND LARGE, AS BEING USEFUL AS AN INITIAL PROGRAM FOR IMPROVING THE EMBASSY'S "EARLY-WARNING" SYSTEM FOR DETECTING MAJOR OPPORTUNITIES (OBJECTIVE ONE), IDENTIFYING THE SPECIFIC TARGET INDUSTRIES AND/OR TARGETS OF OPPORTUNITY THAT SHOULD BE THE MAIN CENTERS OF THE EMBASSY'S ATTENTION (OBJECTIVE TWO), AND SELECTING THE GENERAL AND SPECIFIC TRADE AND INVESTMENT BARRIERS THAT THE EMBASSY AND USG SHOULD SEEK TO PERSUADE THE GOH TO REDUCE (OBJECTIVES THREE AND FOUR). WE BELIEVE THAT, EVEN AT THIS LATE STAGE IN FY 1974, THE EMBASSY SHOULD TRANSFORM THIS INITIAL PROGRAM INTO A FY 1974 CAP WITH MORE FINELY-FOCUSED OBJECTIVES AND MORE SOLID ACTIONS IN SUPPORT OF EACH OBJECTIVE. TO THIS END, WE PROPOSE THAT THE EMBASSY SUBMIT BY FEBRUARY 28 A REVISED CAP AS DETAILED BELOW. (E) THE FIRST THREE OBJECTIVES OF THE CAP SHOULD EACH CALL FOR INCREASED PENETRATION OF THE HAITIAN MARKET FOR A PARTICULAR TARGET INDUSTRY OR TARGET OF OPPORTUNITY, AS PER THE ILLUSTRATION IN SUB-PARA B ABOVE. FOR EACH SUCH OBJECTIVE THE EMBASSY SHOULD SPECIFY A NUMBER OF CONCRETE ACTIONS TO BE TAKEN, AND SHOULD SPECIFY A TARGET DEADLINE FOR COMPLETION OF EACH ACTION. SUCH ACTIONS MIGHT INCLUDE THE SCHEDULING OF PERSONAL VISITS TO POTENTIAL CUSTOMERS FOR THE RESPECTIVE OBJECTIVE'S TARGET U.S. PRODUCT OR SERVICE; THE SUBMITTAL OF AS MANY AS POSSIBLE TRADE OPPOR- TUNITY REPORTS FOR THE PRODUCT OR SERVICE; THE SUBMITTAL OF A DESK STUDY ON THE HAITIAN MARKET FOR THE PRODUCT OR SERVICE, OR FOR A SUBGROUP OF PRODUCT LINES WITHIN THE PRODUCT CATEGORY; THE SCHEDULING OF DISCUSSIONS WITH APPROPRIATE GOH OFFICIALS TO SEEK TO PERSUADE THEM TO RE- UNCLASSIFIED UNCLASSIFIED PAGE 04 STATE 031085 DUCE ANY GOH BARRIERS TO IMPORTS OF THE PRODUCT OR SER- VICE; THE USE OF AN EMBASSY COMMERCIAL NEWSLETTER OR USIS PRESS RELEASES TO FEATURE ARTICLES ON THE U.S. PRODUCT OR SERVICE; THE MOUNTING OF A SUITABLE PROMOTIONAL DISPLAY ON THE EMBASSY'S PREMISES; AND/OR OTHER ACTIONS DIRECTLY GEARED TO PROMOTING LOCAL SALES OF THE RESPECTIVE U.S. PRODUCT OR SERVICE. (F) THE FOURTH OBJECTIVE OF THE CAP EITHER SHOULD CALL F E E E E E E E E