Visit Countryaah official website to get information about the capital city of Belize. Guatemala claimed to have acquired the inheritance right to the area from the Spanish crown and did not recognize the border between Guatemala and Belize. In March 1981, Guatemala and the United Kingdom signed a 16-point agreement to guarantee Belize’s independence in the future in return for a few concessions to the Guatemalan government, such as free access to the Atlantic Ocean, the right to joint use of the seabed, oil pipeline construction and a «anti-rebellion agreement ‘. On September 21, Belize was able to declare herself independent.
Tourism accounted for $ 4 million in revenue in 1983, but despite a huge expansion in this area, tourism was unlikely to reach $ 36 million in revenues from sugar production. The dwindling endorsement of the People’s Party and the increasing pressure on the government of George Price – mainly p. support for Cuba and Nicaragua- was exploited by the right-wing opposition party, the Democratic Unity Party, which won the elections in December 1984. The new Prime Minister, Manuel Esquivel, introduced a liberal economic policy, and supported the private import and export sector, which was mainly owned by low-knowledge families for business operations. At the same time, they took a benevolent attitude towards the foreign investors and tried to attract capital from the US, Jamaica and Mexico in order to expand the tourism, energy and agriculture sectors. Belize, as a legacy of the former government, can offer what is probably the third most favorable tax law on foreign investment in the third world.
Sugar cane production brings in half of the country’s foreign currency, but the fall in world market prices has caused problems. The industry survived thanks to guaranteed import quotas from the US and the EU, even though they only cut 60% of production – the rest must be sold at a loss!
In March 1986, Prime Minister Esquivel devised a plan according to which to buy citizenship in Belize. The plan was broadly intended for traders residing in Hong Kong, where sovereignty would be transferred to China. According to the plan, those who bought government bonds were worth $ 25,000 – the real value of the bonds was only half that! – automatically and immediately obtain citizenship in Belize.
In the 1980’s, the country received close to 40,000 refugees from El Salvador, Guatemala, Honduras and Nicaragua. Despite the official benevolence, some leaders began to make the refugees responsible for the growing trade in marijuana and other crime.
With Vinicio Cerezo’s accession as Guatemalan President, relations between the two countries improved significantly. The government of Cerezo renewed diplomatic relations with Britain, which had otherwise been discontinued because Guatemala’s demands on Belize. A permanent commission was formed with representatives from Belize, Guatemala and the United Kingdom in an effort to find a peaceful solution.