As I See It: How Cayman Became a Leading Financial Centre

By Vassel Johnson

This book covers the period of time during which the Cayman Islands were transformed from an obscure group of three British islands in the Caribbean to the fifth largest financial centre in the world.

The transition was the brainchild of the country’s then Minister of Finance, Sir Vassel Johnson, whose book traces the reason for this change and the process by which it was accomplished.

It begins with his journey as a young child from Jamaica to Cuba where his parents settled in a Caymanian community on the Isle of Pines (now the Isle of Youth) to make a living by farming. Ten years later the family moved to Grand Cayman where, with the help of Caymanian families who had been their neighbours in the Isle of Pines, they settled and made a home.

This was the first time that Vassel and his younger siblings received a formal education and Vassel graduated senior school with distinction within 4 years. On leaving school Vassel went to work with the Cayman Islands Government where he met Rita Hinds, and they were later married and had 7 children.

Rita’s family was among the original settlers of Grand Cayman, hailing mainly from the British Isles, and they were hardworking with strong church and community ties. At that time Cayman’s economy was quite poor and apart from a few government jobs, was largely sustained by the earnings of their men who went to sea and worked with the US Merchant Marine. When most of these jobs became redundant with the advent of containerised cargo, the men returned home where few jobs were to be had.

This was the turning point in the islands’ history, and resulted in Vassel’s efforts to provide jobs by creating a financial industry that would have spinoffs to support families and the country’s essential services.

• Language: English
• Publisher: Troubador Publishing Ltd
• Release date: Feb 28, 2023
• ISBN: 9781803138022

Book preview

Contents

Foreword

Acknowledgements

PART I    MY YOUTHFUL JOURNEYS

1    Jamaica

2    A Cuban Experience

PART II    A CHANGE OF NATIONALITY

3    Cayman – The Early Years

4    World War II

5    The Economy Before and After World War II

6    The Civil Service, 1945-65

PART III    THE BUILDING PROCESS

7    A Crucial Period

8    Mosquito and Sandfly Control

9    Economic Infrastructure

10   Finance and Tourism

11   The Cayman Currency

12   Economic Diversification

13   My Final Years in the Civil Service

14   Air Services

PART IV    A CHANGE IN FOCUS

15   Prelude to Politics

16   The Mutual Legal Assistance Treaty and its Forerunner, the Narco Agreement

17   Conservation: The Turtle Farm and Marine Parks

18   Water and Sewerage Development

19   The National Trust

20   Mission Accomplished

21   Postscript

A Singular Royal Award

Wreck of the Ten Sail

Curriculum Vitae

Governors and Chief Officers of the Cayman Islands

Foreword

Tom Russell, CMG, CBE

An autobiography makes a unique approach to history, and a failsafe interpretation of events. Sir Vassel’s story combines personal memories, accounts written at the time and the deep research of a scholar. Its contribution to the chronicles of the Cayman Islands is invaluable.

What will fascinate the reader is the parallel development of the Cayman Islands and the author. His early days in Jamaica and Cuba, in conditions of hardship and uncertainty, mirror the Cayman Islands after World War I as the ‘Islands that Time Forgot.’ His steady ascent through the Civil Service to the post of Financial Secretary, and his canny management of the country’s economy, are a metaphor for the astonishing economic development of the Cayman Islands and of the prosperity of its hardworking people. That the man epitomizes his country was acknowledged by the accolade of knight-hood granted by the Queen before a throng of the people he had served so well, and to such advantage.

I commend this book to all Caymanians and to all whom the magic of these three islands has touched.

Tom Russell

Surrey, 2000

SIR VASSEL

GODFREY JOHNSON:

An Appreciation

The Cayman Islands Bankers Association

Sir Vassel, now in his 79th year, was the Cayman Islands’ first financial secretary, who steered his country through a maze of legislation and attendant regulations that were required to establish an offshore financial industry. Who would have thought that 25 years later the Cayman Islands would be recognized as a world leader in this industry?

All of us in Cayman today have more than a debt of gratitude to pay for Sir Vassel’s insight, courage and determination, which have carried us forward on a journey of exciting development as a leading world financial centre. His career details and list of achievements are too numerous to list here, but suffice it to say that his award from Her Majesty says it all. In the early days, he was prepared to take on officials in London whose educational background, expertise and formal exposure to the activities of the financial world were far greater than his own, and his quote on this was very simple: ‘The fact that I hadn’t gone to university was a drawback with certain professionals who looked down on me, but it didn’t matter whether they looked down on me or looked up to me, I knew what I wanted to say and they had to fall in line.’

In closing, Sir Vassel would readily accept that ‘behind every successful man, there is a very good woman.’ Lady Johnson – thank you.

Acknowledgements

Most of the stories recorded in this book originated from events and developments during the earlier period of my life, at the time when I was privileged in one way or another to become involved with the development of the Cayman Islands. I wrote on page 1 of my first publication in 1982, The Cayman Islands Economic and Financial Review, the following: ‘If one wishes to achieve a goal and toils diligently and awaits patiently the results he will succeed.’ I hope that statement can also be equally applied to this autobiographical account of Cayman’s rise, written 17 years later, as a leading international financial centre.

I will now record my thanks to those special persons who so kindly contributed to the work of this book, entitled As I See It – How Cayman Became a Leading Financial Centre. I am indeed indebted and very thankful to all of them, knowing that without their valuable input my task would have been very difficult. When I was encouraged by a foreign press reporter to write the story of how Cayman became a leading financial centre, I took for granted that he knew it was a story through which I lived, for he said, ‘There is no one else to write it.’

Following the challenge to write this story, John Redman of the Caymanian Compass newspaper very kindly offered to assist me with the work. I spoke on tapes that were passed to John; he typed and edited each one at the same time. However, his time with me eventually proved very limited and so I decided to rearrange the basic work myself, for which I had to use a computer.

At the time, in mid-1994, I worked at Montpelier Properties (Cayman) Ltd as Managing Director (1983-97). I discussed the plan with my assistant, Jurgen Gerhardt, who is quite knowledgeable with computers and who also appeared very interested in my private project. I therefore requested his assistance in purchasing a computer and printer. Jurgen’s help in this respect and in taking me through a course of training on the computer was invaluable. His wife Bridgette, who also worked at Montpelier as secretary, was of much assistance to me as well for she was using a computer at her desk. I must therefore extend grateful thanks to both Jurgen and Bridgette, for without their initial help with the computer it would have been difficult for me to start the work.

I also had valuable assistance on the computer both in the office and at home from my daughter-in-law, Sheila, Bud’s wife, who is a trained computer technologist. My time in the office on the computer was of course limited to after-office hours and therefore explains the length of time spent on the project. After my retirement from Montpelier in June 1997, I was able to make better progress.

Two important subjects I discovered in the early days of my position as Financial Secretary were lack of basic economic infrastructure on which to build and cushion what appeared as oncoming development, and secondly, an urgent need to reorganize the Civil Service. Technical assistance was therefore requested from the British government to investigate those two areas of need. London sent the request to British Development Division in the Caribbean in Barbados to the Head of the Division, William L. Bell, CMG (Bill). In mid-April 1969, Bill came to Cayman with a strong team of experts from his office. The story regarding how he dealt with both subjects is found in Chapter 9, ‘Economic Infrastructure,’ written also with his input. I will long remember the assistance that came from Bill and his team: my grateful thanks to them.

In 1965, after the collapse of the seamen’s trade, an industry that provided the larger part of the country’s economy, it became quite clear that a new source of income must be found. I thought that because the Territory had no form of direct taxes, such as income tax, banking and trust associated with tourism would be an ideal alternative. The financial industry moved on quite well; however, in 1970, London discouraged its use by referring to it as ‘tax haven business,’ which name did not go across very well among other countries with their direct tax systems. The call to replace our new financial industry undoubtedly upset me. However, in May 1971, I attended the British Treasury to deal with an exchange control application and took the opportunity while there to discuss Cayman’s offshore operation. The Chairman of the meeting, Geoffrey Littler (now Sir Geoffrey Littler, KCB), was Treasury Assistant Secretary in charge of the Exchange Control Division. After the exchange control application was approved I went on to explain the proposal to abolish Cayman’s offshore industry and the ill effects such a move could have on the Territory. Sir Geoffrey kindly gave the authority for the Cayman Islands to continue developing its offshore business. I was certainly delighted with that ruling for it allowed the Cayman Islands to become eventually a world-class financial centre. Thank you very kindly, Sir Geoffrey, for that important decision.

Thanks also to the late The Honourable Ernest W.P. Vesey, MP, of Bermuda, who in 1985 assisted me tremendously in preparation for negotiation of the US Treaty.

An individual to whom I must also give special thanks is the person who so very kindly agreed to write the Foreword to my book, Thomas Russell, CMG, CBE (Tom). Tom served as Governor of these islands for a period of seven years from 1974 and is considered the longest-serving Chief Executive among Governors and, previously, Administrators and Commissioners. Apart from coming to Cayman as Governor, Tom was also a past Financial Secretary and was therefore in a position to assist me in my official duties: my grateful thanks to you, Tom.

In dealing with the subjects of banks and trust companies under Chapter 10, ‘Finance and Tourism,’ I had the valuable help of a good friend, Ronald E. Tompkins, TEP, ACIB (Trustee Diploma), while he was Managing Director of the local branch of the Bank of Nova Scotia Trust. In fact Ron and I have also been bridge partners at the Cayman Bridge Club for many years and held the Club’s Cup for three years in succession, 1997-99. I wish to thank Ron for his valuable assistance to me with regard to my book.

Others to whom I must acknowledge indebtedness for assisting me are my wife Rita and our children. Thanks must also go to Ms Carol Winker for preliminary manuscript assistance and Mr Ramon D. Alberga, QC, and his son Michael, who is also an attorney, for graciously serving as my legal readers of the manuscript and contract with the publishers. I want also to mention that I had the benefit of a book-writer’s opinion on the manuscript from a long-term friend and writer, Ian Paget-Brown of the United States.

Through the lapse of time and memory it has not always been possible to determine who took the various photographs which appear in this book. Some are from local media, Cayman Free Press and Northwester. To the anonymous other photographers, I can only express a general but heartfelt thanks.

A quotation I am fond of repeating is one written by the English philosopher, essayist and statesman, Sir Francis Bacon. This is what Sir Francis wrote: ‘Out of monuments, names, words, proverbs, tradition, private records and evidences, fragments of stories, passages of books and the like, we do save and recover somewhat from the deluge of time.’ Maybe I can apply these words partly to this publication on the Cayman Islands.

Sir Vassel Johnson

Cayman, May 2000

PART I

MY YOUTHFUL JOURNEYS

1

Jamaica

Jamaica has a long and colourful history and in this first chapter I take pleasure in mentioning a few salient points for two reasons: first, because Jamaica is the land of my birth and second, because of Cayman’s early political and economic connections with the larger island nation.

My own personal history began on 18th January 1922. I was born in Jamaica at a place known as Bath in Golden Grove, St Thomas. Before my birth, my mother suffered a leg problem for many weeks. Friends and neighbours advised her to go and make use of the mineral spring at Bath: she was then living at Vere in Clarendon, Jamaica. She took their advice and moved to Golden Grove, where she also prepared to be confined. According to my mother in later years, the leg did improve tremendously after bathing in the mineral spring (I forgot to inquire from her at the time if she also dipped me in the spring water for my legs have been in excellent condition ever since I was born). My mother also told me that when I grew older, probably at age six months, she had me christened at the Kingston Parish Church (Anglican) in Jamaica. When we came to Cayman in 1934 the Anglican denomination had not yet established here, so the family attended Elmslie Presbyterian Church in George Town. All the family and their children are still connected with the Presbyterian Church that has over the years united with the Congregational and Disciples of Christ denominations and is now known as The United Church in Jamaica and the Cayman Islands.

As we begin the 21st century, I still have some cherished recollections of events at the home where I lived in Jamaica; this was between the years 1925 and 1926. I was then three and a half years of age. I lived at the time with my mother and father in the humble surroundings of my mother’s parents’ home at Portland Cottage in Clarendon. I recall having a younger brother named Ivan: I understood when I grew older that he was born in 1924. My mother’s eldest sister, Adella Megoo, and her four children also lived there. We children would have a wonderful time playing together. The house was an ordinary one-storey structure made of wood and roofed with zinc. It was divided into bedrooms, kitchen, dining room and a utility and storage area. The grounds surrounding the house had a few fruit trees like mango and pear and a little distance behind the house my grandfather cultivated a little garden, growing cassava, pumpkin and sweet potato. There was a grassed space in front of the house for the children to play.

An incident I have not forgotten happened one day when we children were playing the game hide-and-seek in the house. I ran into a hot iron sitting on an ironing board and cried out because the palm of one of my hands touched it. Cousin Mattie, Adella’s daughter, who was ironing clothes but at the time standing with her back to the iron, rushed to the kitchen, fetched a bottle of molasses and smeared the burned area with the syrup. Molasses in those days was also used as a first aid home remedy for fresh burns. I walked around looking at the burn and feeling sorry for myself while licking the syrup dripping from my hand; its sweetness was a bit comforting to me. Other events were minor as is usual with small children. One day my mother carried me in the yard on the left-hand side of the house and showed me an area where, as a big boy, her brother Tommy would occasionally have a problem with something they called a spirit. It would move Tommy in a circling motion and eventually throw him to the ground. She went on to say that my grandparents reported the incidents to the police and other friends around but no one could help that situation. Eventually they had to stop Tommy going to that particular side of the house.

I must now take some time to mention my parents and grandparents. My father, Charles McKintha Johnson, was born at Four Paths in Clarendon, Jamaica on 28th March 1897 and died in Grand Cayman on 9th April 1947 at the young age of 50. The name given to Charles by his parents was Behari Johan Singh (an Indian name) but when he first attended school in Jamaica his teacher changed his name to Charles McKintha Johnson on the grounds that the Indian name was difficult to pronounce. The schoolchildren complained similarly about the name. The changed name went unchallenged for neither my father nor his parents objected. His parents were Harrigon Behari and Maria Singh, both of whom were born in the Punjab area of Northern India. Harrigon, who was a merchant in India, came to Jamaica with his wife and they both became involved in business in May Pen. They purchased a large property in that town which stretched across the Rio Mino, a river running through the district. There they built their home and shops. They specialized in the grocery business, which included a large bakery. They had three sons – my father, Ramsingh and another I knew only as ‘Papa.’ They also had one daughter who unfortunately died at four years of age and in very tragic circumstances. My grandfather was working on his wagon at a weekend as usual and took off a wheel, leaning it against a tree so as to have it properly greased. The little girl came around unknown to her father and started jumping on the wheel. It fell on her across the chest. She was rushed to the hospital, but there was nothing the doctor could do except confirm her death. Harrigon and Maria lived in Jamaica for the rest of their lives. They both died before I had the opportunity of returning to Jamaica: I did return, but afterwards in 1944, as a Cayman Home Guard soldier attached to the Military Hospital, Up Park Camp, Kingston, on a first aid course.

My father had his primary and secondary schooling in Jamaica and thereafter was employed in his father’s grocery business. He told me how he liked working especially in the bakery section of the shop, for when his school friends came around he would take baking stones or tins filled with buns or bread and throw them through the window for the boys. His father often wondered why the bakery was not more profitable. Daddy was very kind-hearted to others, especially friends. He was also quite a reader and his choice of books was largely technically and educationally oriented. When he found a subject he liked, such as bees and honey, painting and agriculture, he would not only read the subjects but put what he read into practice to gain the actual art of applying himself to the work. He studied his parents’ language, Hindustani, and eventually was able to speak it fluently. I found him a very interesting person because in conversation he was able to hold his own on any subject. The only art he didn’t succeed in was that of teaching, for as my early teacher he made me scared of books and reading.

My mother, Theresa Virginia Johnson, née McDoom, was born on 16th July 1896 at Portland Cottage, Clarendon, in Jamaica and died at her Sussex Cottage home on Elgin Avenue, George Town, Grand Cayman, on 31st May 1995. She had attained the grand age of 98 years, 10 months, 2 weeks and 1 day. Her parents were John Baccas and Susan née Francis McDoom: both were born in Madras, South India. Baccas was particularly interested in travelling west because his trade was commercial business and he was in search of better living conditions. He met Susan when he lived at Portland Cottage in the parish of Clarendon and was doing business not far away at Alley. They got married and went to live in Mitchell Town in the same parish. The union produced ten children: five sons, James, Tommy, Charley, Percy and Albert: and five daughters, Adella, Theresa (my mother), Maud, Mattie and Gwen. The last of both the daughters and sons, Gwen and Albert, died at the same time in August 1998.

Theresa was the kind of mother her children will always remember because of her care and love for all of us. She was also a special friend to the people she came in contact with day by day. For one thing, her cooking attracted many who would visit the home either along with their children or with friends who would come around to see us; they were usually offered a meal. Theresa did possess all the fine qualities of a mother and a friend.

In mid-1926, I travelled on a sailing vessel with my mother Theresa and younger brother, Ivan. My parents were obliged to leave Jamaica owing to the difficult living conditions at the time, brought about by a terrible world economic depression. After investigating other countries in the region, where hopefully life could be more pleasant financially, my father decided that Cuba offered the best possibilities of any. My mother and her two children travelled on a sailing vessel from Jamaica to Grand Cayman in transit and then after a few days in Cayman sailed on another vessel to the Isle of Pines. In later years my mother told us that we had sailed from Jamaica to Grand Cayman on the schooner Fulmar, captained by Gerald Coe, and then from Grand Cayman to the Isle of Pines on the schooner Tuecoy, captained by Charlie Farrington. (In the early 1990s, both Captain Carl Bush of South Sound and my good friend Louise Llewellyn of George Town confirmed the names of both vessels.)

My mother and younger brother became seasick on both legs of the journey from Jamaica to the Isle of Pines. As a result of their illness they had to remain lying in their bunks below deck all the way across on the boat. That was the first time I recall from memory being on a journey by sea. At four years of age I was strong on my feet and felt no illness while travelling. I was therefore able to move about and help my mother and brother by keeping them supplied with biscuits and soda water: this was the only food they could take on a seasick stomach. I will always remember the ‘Uneeda’ biscuits we carried, for they are certainly very delicious eating and good for seasick stomachs as well.

We landed first at George Town in Grand Cayman in transit to secure transport for the onward journey directly to the Isle of Pines. My mother found suitable accommodation for the few days we spent in Grand Cayman. We lodged at a house owned by William Anderson, situated on Elgin Avenue in George Town. The foundation of the building was erected on tall pillars that raised the floor level high off the ground. Because of the danger this posed to small children falling out of the doorway on to the ground and getting badly hurt, my mother gave me the specific task each day of ensuring that my two-year-old brother did not fall from the doorway. I too was scared even to look out of the door owing to its height from the ground. During the time we spent in Grand Cayman my mother became very friendly with the late Mrs Gifford Anderson, our landlord’s wife, and their daughter Louise, who was then 15 years of age and who in later years married and was known as Louise Llewellyn. Mrs Gifford and Louise would frequently visit us in 1926 in George Town. In 1995, Louise then aged 85, took pleasure in telling me of her experiences when she had visited us nearly 70 years before and helped my mother with her two boys, I being one, of course.

I cannot remember leaving Grand Cayman for the Isle of Pines but do recall being on the boat as I had to repeat my job of helping my mother and brother, who were again on the sick list. The journey provided little or no experience for me. The first thing I remember from the trip, apart from attending to my seasick patients, is arriving at the mouth of the river that led on to the capital, Nueva Gerona, usually just called Gerona, where we were destined. The boat’s speed reduced on the river because of the mangrove trees growing on both sides which prevented the full force of wind filling its sails. The short run on the river was somewhat interesting because of the birds of all colours and sizes and a few small land clearings. My patients remained below deck until we reached our destination at about 10 a.m.

As we arrived and the vessel was in the process of docking, my mother, Ivan and I were standing on the deck of the boat holding hands. My mother suddenly cried out, pointing at the crowd on the wharf and said, ‘There is Daddy.’ Yes, my father was on hand to take care of us, first through Immigration and then Customs. That was the first time I recognized my father and what he looked like. He was undoubtedly a very handsome man; I loved him very much.

According to a history written by Clinton V. Black in 1958, the Jamaican story dates back to its earliest inhabitants, the Arawak Indians, and moves on to the island’s discovery by Christopher Columbus, who was born in Genoa, Italy in 1450. In 1492 Columbus informed the Spanish sovereigns, Ferdinand and Isabella, of an expedition he was planning to discover islands and mainland on the way to reaching Asia by sailing westward. Such a voyage carried three motives. One was the need to discover a new route to the Far East to replace the old one through the Middle East. The second was the desire to spread the Christian faith to distant lands. The third reason was his eagerness for geographical knowledge, finding gold and adventure. The cost of the voyage would be mainly at the Crown’s expense. Columbus sailed from Palos de la Frontera in Spain on 3rd August 1492 on his flagship Santa Maria. On 12th October he landed on an island in the Bahamas, which Columbus named San Salvador.

It was during Columbus’ second voyage that he discovered Jamaica on 5th May 1494. He described Jamaica as ‘the fairest island that eyes have beheld; mountainous and the land seems to touch the sky … all full of valleys and fields and plains.’ Jamaica’s main attraction to Spain was for the island to be used as a supply base. In the early days of Spanish occupation, men, horses, arms and food from Jamaica helped the conquest of Cuba and much of the American mainland, but afterwards the island’s importance grew less. Almost nothing was done to develop the country’s natural resources. The chief trade was the supply of fresh provisions to passing ships travelling in both directions between Cartagena, Colombia and Havana, Cuba. The ships that touched in Jamaica brought supplies of clothes, wine, oil and a few luxury items. Vast herds of swine roamed the rich grazing areas of St Ann and the western parishes. A great number of these animals were killed each year just for the fat. There was an annual slaughter of cattle as well, but only for the hides and fat. From the skins of goats that ran wild in the mountains, excellent leather was made.

The country owes much gratitude to the Spaniards who introduced to Jamaica a number of fruit trees and plants in order to increase their food supply. Among those were the banana, plantain and all familiar varieties of citrus except grapefruit. They also grew sugar cane for local use, grinding it by horse-drawn mills. They cultivated cotton, cocoa, tobacco and grapes, from which liquor and brandy were brewed. In spite of those activities settlers were poor and they were harassed by the high cost of living. At that particular point in time much activity took place not only in Jamaica, but also the rest of the Caribbean. Then came the end of the Spanish occupation of Jamaica, when on 10th May 1655 an English fleet appeared in Kingston Harbour sent out by Oliver Cromwell, Lord Protector of England after the execution of King Charles I. The English fleet was under the command of Admiral William Penn: it also carried an army of 2,500 men commanded by General Robert Venables. Cromwell also appointed a council of three commissioners to accompany the expedition, Edward Winslow, Captain Gregory Butler and Daniel Searle, Governor of Barbados. The action by the British government was called the ‘Western Design.’ Its general object was that Britain had decided to take over all the vast territories in the Caribbean held by Spain.

Jamaica’s long history, from the end of the Spanish military rule over the country and the establishment of a civil government during the 1670s, saw much change and development in the Territory. A ‘new Jamaica’ emerged in 1865, known as the turning point of the country’s history. It had wide powers under a Crown Colony system of constitution. The Governor at the time, Sir John Peter Grant, one of the most capable and forceful Jamaica has ever had, promised that he would change conditions so that if the dead returned they would not recognize the island. To start off, the former 22 parishes were reduced to 14 and the government vestries which formerly ran local affairs were replaced by parochial boards in all parishes. An up-to-date police force was established throughout the island, together with district courts. The Anglican Church, as the recognized denomination, was until then financed by government. That was changed and the money given instead to education. The Institute of Jamaica was founded to encourage literature, science and art. A botanical garden (Hope Gardens) was developed along with many other public institutions and services. The administration under Sir John truly justified the name he gave to the country, a ‘New Jamaica.’

The pace of progress under the Crown Colony system of government depended to a great extent on the type of governor appointed to the colony. For instance, Sir Henry Blake, who arrived in 1889, had his term of office extended at the people’s request. He built roads and bridges and arranged the successful 1891 exhibition in Kingston from January to May, held in a large building erected for the purpose, which is now the site of the Wolmer’s School. The exhibition was opened by Britain’s Prince of Wales: he was later to become Edward VII. Sir Henry’s relations with the Legislative Council were good. Those of his successor, Sir Augustus Hemming, were not as popular; however, with all his faults, he achieved much under the Crown Colony system. The political life of the country at the time seemed almost stagnant owing to the policy of government that imposed from the top a system under which no people would ever learn to govern in any areas of administration. Nevertheless, even under those circumstances, lying below the surface were changes at work. One that came to light fairly early was the part the Negro section of the community was beginning to play in public affairs. It was certainly encouraged and it grew until by the 1920s there were more Negro members than white elected to Council. By the 1930s, membership was almost entirely Negro. A similar change was also taking place in the Civil Service, where several Negro officers started careers which were to take them to top posts in their departments.

The country went through many experiences and changes in the years to follow. One was the economic and industrial depression of the 1920s. Another was a labour rebellion in early 1938, part of which was witnessed by my father, who visited Jamaica at the time. On his return home to Cayman, he told us some of the things that happened while he was standing at a corner of East Queen Street in Kingston and watching some of the events. We asked him if he was not afraid of the arms and other dangerous weapons used by the mob. He said, ‘No, the organized armed resistance group were after bigger people than me.’

The result of the rebellion, which took place mainly in the Kingston area, was that two trade unions grew out of it, the Bustamante’s Industrial Trade Union and the other run by a cousin of Busta, Norman Manley, whose union was known as the People’s National Party. Emerging from that situation, Jamaica moved into a new constitution in 1944, based on a system of partial internal self-government headed by a chief minister. A few years later a slight constitutional reform replaced the partial system into full internal self-government headed by a prime minister. From that juncture, Jamaica opted out of a proposed Federation of the West Indies and moved into independence on 6th August 1962. Before independence, thoughts were given to Jamaica’s national symbols, the national anthem and the flag. It was agreed to retain the 300-year-old coat of arms, but to change the original Latin motto for one of greater relevance in English. Recommended was ‘Out of Many, One People.’ This would serve as a constant reminder of the fact that the Jamaican nation is comprised of people of many races who have long lived and worked together in harmony.

At midnight on 5th August, at the superb newly built National Stadium in Kingston, the Union Jack, the flag of Great Britain, was lowered and the island’s black, gold and green standard raised for the first time in its place. That symbolized the end of British rule and the birth of the Dominion of Jamaica. The next two days were declared holidays. Her Royal Highness Princess Margaret, accompanied by her husband Lord Snowdon, had arrived on the island four days before to officiate as the Queen’s representative. She opened the first session of the first parliament, read a personal message to the people of Jamaica from Her Majesty and presented to the Prime Minister the Independence Constitutional Instruments. Those presentations are all preserved in the Jamaica Archives.

Four months before independence a similar break with the past had been ceremonially played out at the Queen’s birthday parade at Up Park Camp. The men of the Royal Hampshire Regiment, the last of a long line of British troops which had served the country for more than three centuries, marched symbolically through the ranks of the newly formed Jamaica Regiment and the police, and then took their departure from the island.

At Jamaica’s independence on 6th August 1962, which I attended, my own thought as a son of the soil was that the country then had much to offer its people by way of a strong economy developed under its Crown Colony system of government. Now, of course, politics strongly supported the movement to independence. I was afraid that after independence the economic situation could start to decline. This thought of mine emerged from a statement which was made at a rally of one of its political parties after independence. It suggested that Jamaica should have a look at introducing sometime in the future what they termed ‘social democracy,’ which to my thinking could have meant a mild form of communism. Indeed ten years after that grand occasion of independence, and following the general election of 1972, the new administration became plagued with economic and social problems. That situation I should say continues to torment Jamaica as the country moves nearer the beginning of the twenty-first century.

It is a great pity that Jamaica, the island that was once the pride and joy of its people, fell in that manner. The world in fact looked upon Jamaica at that time as an island that had led the way among successful Caribbean territories. It was a country that had so much to offer, such as encouraging and attracting foreign investment and promoting local industry, thereby providing a bright future for its people. However, in time, a change in the ranks of Jamaican politics led the ship of state off course.

As one born in Jamaica, I followed its political trend for a number of years before and after its independence and therefore had a fair idea that disaster was lurking ahead for that island nation in its quest for political advancement. Jamaica is a country that could have developed to become the financial centre of the Caribbean. However, when it failed in that respect, Cayman grasped the opportunity to build its financial industry to the stage of claiming, in due course, not only first place among Caribbean offshore centres but indeed top global position.

Much of the above Jamaican history I learned from teachers and textbooks. Some of it I was privileged to live through and be a part of.

I recall that 19 years after the Jamaican 1972 general election, the Prime Minister of Jamaica, the Honourable Michael Manley, made a public announcement in the Jamaican Daily Gleaner in September 1991 advising that he intended completely to liberalize Jamaica’s foreign exchange system. Because of a very run-down economy, Jamaica suffered for years from currency and foreign exchange problems. In our economic growth, we struggled from 1975 to abolish Cayman’s exchange control system and so the subject of foreign exchange was very dear and important to me as Financial Secretary. Fortunately, five years later in 1980 we succeeded in abolishing the system: that certainly had quite an impact in assisting the successful development of Cayman’s financial industry.

I wrote to Mr Manley on 27th September 1991 and congratulated him on the brilliant move he made in his attempt to relieve Jamaica’s years of suffering from its weakened foreign exchange situation. In the concluding paragraph of the letter I said, ‘Good luck to Jamaica. I am confident you have now put the country on the right course regarding its foreign exchange problems. With the right public cooperation, success is bound to come your way sooner or later.’ Mr Manley replied on 24th October 1991 and thanked me for my letter. He was particularly delighted, he said, by my comments on the Cayman experience.

2

A Cuban Experience

The economic depression experienced in Jamaica by 1926 caused my father to consider moving elsewhere in search of better living conditions. His inquiries pointed to Cuba as an island that offered far better prospects than any other in the region.

Cuba is situated in the Caribbean, north-west of Jamaica and 135 miles south of the tip of Florida, USA. It has a land area of 44,000 square miles (more than one-half of the total land area of the West Indies and nine times the size of Jamaica). The capital is Havana. The country consists of the main island of Cuba, the Isle of Pines and other small keys along the north and south coasts. The main island extends approximately 780 miles in length, east to west, and is 19 miles in width in the north-west, and 119 miles in the south-east. The population in 1920 was just under 3 million. The Indian inhabitants were the aborigines of Cuba until the Spanish conquest brought them to near extinction. Since then the population became mixed, with three-quarters being white (mostly Spanish) and the remainder being descendants from the 800,000 slaves imported by the Spanish from Africa.

The climate of Cuba is semi-tropical, with two main seasons, dry (November to April) and wet (May to October). Annual rainfall averages 54 inches. The country’s main economy has traditionally depended heavily on the production and export of sugar and tobacco. The fertile soil also supports the raising of cattle and the growing of coffee as well as a wide range of fruits and vegetables on a smaller scale.

Spanish is the official language of Cuba. Christopher Columbus claimed Cuba for Spain in 1492 during his first voyage to the Americas. The country’s independence was eventually won in 1899 but was accompanied by a period of American occupation, during which time a number of schools, roads and bridges were built. During World Wars I and II, Cuba was on the side of the Allies. In 1959, following a prolonged period of exile and guerrilla warfare against the Cuban government, Fidel Castro eventually won victory over dictator Fulgencio Batista and soon converted Cuba into the communist state we see today.

The part of Cuba where my father chose to live and work in 1926 was the Isle of Pines, a small island approximately 1,460 square miles in size, lying about 35 miles to the south of mainland Cuba. His reason for selecting this small island was because of its success in agricultural production (vegetables and fruits) which found a ready market in South Florida. My father went there alone to see if conditions were suitable. He was satisfied with what he saw of the island and therefore invited his wife and family to join him, after securing adequate accommodation.

Our first home on the Isle of Pines was just about 300 yards away from the same side of the dock where the Tuecoy landed us and the same side of the river on which the capital is built. The house, made of lumber with a zinc roof, was a beautiful little two-bedroom building. Another thing I remember about living there was the lovely aroma from the kitchen, especially when my mother made cocoa while preparing either breakfast or supper. Also I remember the yard with beautiful hibiscus plants blossoming in different colours, as well as periwinkles lining both sides of the walkway in front of the house as far as the gate that faced the river about 100 feet away. There was a road between the gate and the river.

The river, used by boats travelling to Gerona and beyond, is an inlet on the west of the island. It accommodated daily services by large flat-bottomed ships running passengers, mail and cargo between Gerona and other Cuban ports. The house we lived in had a veranda facing the river where the family could sit and enjoy the view of passing boats and other activities across the river, where Cuban gun-boats and other craft docked. A few hundred yards away from the river a large sawmill produced lumber from the logs of pine trees grown on the island: the large number of such trees provided the name Isle of Pines. Near our home, to the east, was a large bridge which accommodated traffic to and from the eastern and northern parts of the island. To the east, the road went to Santa Fe, the first capital of the island, ten miles from Gerona. A few miles beyond Santa Fe was the island’s third largest town, Santa Barbara. North of the bridge, the road led to the Presidio, Cuba’s largest prison.

In 1931, while we still lived on the island, the Presidio was re-modelled into a circular building under President Gerardo Machado’s administration, thus increasing its size to accommodate up to 5,000 inmates. In 1953, the present communist dictator Fidel Castro was sent to the Presidio along with 23 of his insurgent companions after their unsuccessful assault on President Batista’s troops in Santiago, Cuba. It is said that the Presidio is the birthplace of Castro’s rebel army’s plans for the conquest of Cuba, which finally happened in 1959 when Batista was defeated. It is also said that Castro liked showing his guests the Presidio and boasting about the tasty plate of spaghetti he once cooked there as an inmate. In fact all the meals produced at the Presidio were really very tasty: surplus from lunch was sent to the city in the afternoons and given to the poor, who made good use of it. While living there I heard it said that a few people who could well afford to provide their own meals would take advantage of the prison’s food.

In the latter part of the 1920s, I knew Gerona as a neat and attractive little city, built on the bank of a river that to my knowledge had no particular name. To the south and beyond the city limits, about a mile away, was a range of mountains that produced good-quality marble. A quarry with a large processing plant and other machinery stood at the foot of the mountain directly in front of Gerona. In later years we lived behind that mountain. I very often walked the road to the city, passing the quarry. I would occasionally stop, either going to or coming from town, to look at the operation, at the same time taking a rest from the heat of the sun.

The rocks at the lower parts of the hill were extracted by means of dynamite and conveyed to the nearby quarry for processing into sheets or slabs of beautiful marble. Near the quarry on the right-hand side of the road to Gerona lived a Russian sculptor, Belinki, who had a workshop built onto his dwelling house and there, from the sheets of marble, he made tombstones and other finished products. Occasionally while passing by I would stop at Belinki’s to greet him and watch him working, sometimes in his workshop and other times at cooking his meals: of course he never offered me anything to eat or drink. One thing I admired about him was that he was always neatly dressed, as well as being a clean worker in whatever he did.

The streets of Gerona were usually clean and had very little dust. In 1926 there were just a few motor vehicles in the city for transportation purposes: wagons and buggies were still the main means of road transport and could also be hired. Many of the large grocery stores were operated, and perhaps owned, by Chinese. The people of the island were friendly and kind, always ready to assist or give a helping hand. As a boy of six I would go by myself into Gerona to shop. Occasionally it was dangerous travelling around, especially at night, if high-security prisoners escaped confinement and remained at large. In such instances the government would declare martial law and impose a curfew after 6 p.m., meaning that search parties would have the legal right to shoot on sight anyone who did not halt for identification when challenged.

After his arrival, my father was eager to get started with his farming project. That was in fact his main aim in going to the Isle of Pines, for he had been told that the markets in South Florida would buy all the Cuban vegetable products available. He planned to grow watermelons and vegetables such as sweet peppers, onions and tomatoes principally for the American market. He leased a plot of land across the river about a mile from the bridge where we lived. He had a fair amount of cash because of selling all his property in Jamaica before leaving. The first thing he did on the leased property was to build a house. It was made of lumber with a thatched roof. The size was slightly larger than the first one he rented by the bridge. He found that living in his own house was economically to his advantage as the lease was less expensive than rent. Secondly, by living on his own farm he was able to choose his working hours by starting and finishing at his convenience. Also, being on the farm would help to protect his crops from people who might stray in to help themselves. We moved to the new house in August 1926 and our first experience on the property was the severe 1926 hurricane the following month which caused much damage to homes and crops throughout the island.

I was four and a half years old, but I still remember quite well all about the hurricane. The skies did look suspicious during the previous few days but nobody paid attention to it, not being accustomed to watching weather reports. The hurricane struck at about 6 p.m. and blew from the south-east directly onto the front of our house. The wind was fierce and the rain heavy. Within a few hours two houses near ours blew down and the families came crawling on their hands and knees to take shelter with us. Daddy was very glad to see them for the reason – apart from being happy to assist the families with shelter – that our front door, which was facing the wind, began showing signs of weakening and the three men from the other homes could assist him if necessary. A short while after our visitors came, four men including my father began having to take turns, two at a time, to hold the door. My father had not had the presence of mind earlier in the evening to provide battens and nails to secure windows and doors should the need arise.

At midnight a dead calm came and everybody, thinking the hurricane was over, gathered in the out-kitchen to make coffee and tea and to fry johnnycakes to relieve hungry stomachs. After the midnight snack, just when everybody thought they were relieved for the rest of the night, down came the hurricane again, this time heavier than before. The centre of the hurricane had in fact passed over the island, causing the one-hour calm. That is the case with all hurricanes: they create from the circling wind an area the centre of perfect calmness. When the wind shifted after midnight it began blowing from the opposite direction. In short order the back door revealed the same weakness as the front door had, and the four men had to resume their turns, this time holding the back door. My father had not realized that the hurricane was not yet over when the calm at midnight came, and so he failed again to provide battens and nails for weak doors and windows. By that time I was dropping with sleep. My mother tucked me into bed at about 2 a.m. When I woke at 7 a.m. the hurricane had passed, leaving the island with a vast amount of damaged buildings, property and farms. That was really weather to always remember. The streets and roadways had to be cleared and repaired so as to get traffic moving again.

Daddy made good progress with his farm. In the meantime my first sister, Mary, was born on the morning of 29th January 1927; she died on 8th November 1996. I remember the morning Mary was born in our home: the nurse in attendance invited Ivan and me into the room to see the baby. I quickly discovered that she had a twin small toe on her right foot.

By late 1927 the crops were ready for reaping. Daddy began investigating market conditions in the United States and also shipping arrangements from the island. He visited the government’s Agricultural Department, the Chamber of Commerce and shipping agents to get an idea what would be necessary to start the shipping process moving. To his amazement he discovered that after he had spent so much time and money building a house and growing acres of vegetables, the markets in Florida had been closed for most foreign agricultural products including those from Cuba and those we had grown. The reason for the closure of the American markets, as explained to my father by Cuban government officials, was the economic depression of the region just starting to affect living standards in the United States. Our vegetables, including the melons, rotted in the field because only small amounts were in demand in the Cuban market. Another problem was that there were too many big farmers producing the same crops: many had therefore to give up farming and turn to other occupations. While Daddy worried, I had a wonderful time on the farm helping Mother to take care of my baby sister. Whenever I felt the need for a drink of water I would run to the melon field, find a good big ripe melon, burst it on the ground and eat its red mellow centre to quench my thirst.

Like other farmers, Daddy began looking around for a job to support his family. He was promised one by an American developer about 10 miles from home. However, going to work that distance on horseback meant him starting out early on Monday morning and not getting back home before weekend. He therefore decided to look for a plot of land nearer the workplace, buy or lease it, and there build a second house. He found a plot to lease about 6 miles from where we lived in town, across the river. It was along the Santa Fe road and a short distance to the north at a place known as Mal Pie; it was actually 7 miles from Gerona. Mal Pie was about 3 miles from my father’s workplace and suited him well. That distance would allow him to ride to work in the mornings and be back home in the evenings. He therefore built his second house there. It was about the same size of the first one he had rented in town by the river and very comfortable. We moved to Mal Pie in early 1928; it was there that Noel, the third son, was born in June