Slayton: It's about Making our Alliance 'Stong, Deep and Lasting'

US Consul General Gregory Slayton talks about the future of US/Bermuda relations after the Republican-appointed diplomat was given rare permission to stay put by incoming Democrat President Barack Obama.

Give him a chance that is US Consul General Gregory Slayton's message for those who fear new President Barack Obama has Bermuda in his sights.

While most Bermudians seemed to revel in Mr. Obama's win, many forget that the new president singled out Bermuda in one election advert which alleged opponent John McCain had promised to protect US firms hiding profits in Bermuda.

And Mr. Obama has pledged to close down tax havens and he co-sponsored the Stop Tax Havens Abuse Act legislation which named Bermuda.

But despite the concern among business leaders here, Mr. Slayton believes in the long-run Mr. Obama is going to be a friend of Bermuda's, although the diplomat is realistic about the political dangers.

"The US faces historically large deficits and US congressional leaders are going to be looking for as they like to put it revenue enhancements."

"As I have been saying since I got here hope for the best but prepare for the worst."

There are laws that have already been introduced that would definitely impact Bermuda said Mr. Slayton who sees his job as making sure any discussion on Capital Hill about Bermuda is fact-based.

Mr. Slayton won't say what contact he has had with Obama's team, either before or after the election, but he said all sides of the political spectrum, save for perhaps a few extremists, had been impressed by the masterful way the Obama team had handled the transition.

Probed on the Washington threat he said: "People around the world have to give the new administration the benefit of the doubt.

"They are shouldering a tremendous load two on-going wars, a recession that threatens to turn into potentially much worse. Let's see where they go.

"In the 2004 election Senator John Kerry used Bermuda as a whipping boy it was virtually every other day you heard him talking about closing the Bermuda tax havens etc.

"I am very pleased we didn't hear from either side a lot of anti-Bermuda rhetoric. There was one advertisement that went up, but there was very little. There was more about the Caymans and other places.

"I think that's proof positive of the work we have done here in terms of giving the US policy makers, congressional leaders and diplomatic leaders a better understanding of what Bermuda truly is."

After serving three and a half years Mr. Slayton, appointed by George W. Bush, is staying on to continue his work, despite the election of a Democrat to the White House.

In a TV interview on Tuesday Premier Ewart Brown hinted that Mr. Slayton might be here for around six months before a change was made.

Pressed on whether his tenure was likely to be short term or long term Mr. Slayton gives the stock diplomat's response. He said: "I serve at the pleasure of the President. He can make any decision he wants to make."

So his focus remains on continuing to foster beneficial relations between Bermuda and the US.

Asked about the significance of his term extension he said: "I think it's fair to say that if they didn't like what was going on in Bermuda I would not be here any more. In terms of what conclusions to draw, I don't know.

"There may well be other ambassadors asked to stay on. But I have been told that whatever the total number it is a very, very small number. Of course it's a great honour and we are deeply grateful to the new Secretary of State."

Some cynics have suggested that if a Democrat-dominated Washington is about to batter Bermuda it's better to let the Republican-appointed diplomatic incumbent take the heat locally.

"I don't see it that way at all. In Bermuda there are a lot of people who spend a great deal of time and effort concocting these Machievallian theories I just think let's get on with the job.

"It's straight forward, it's about building bridges and making our alliance as strong, deep and lasting as I possibly can."

Some believe Mr. Slayton's crowning achievement has been setting up annual diplomatic trips with the Premier and key politicians to Washington.

But he points out there are plenty of other efforts besides, with the Premier and his Deputy in the US capital this week as part of the diplomatic to and fro.

Mr. Slayton said Bermuda's standing with both American parties was far higher now than he first came.

The mutual assistance treaty signed last week was a big deal said Mr. Slayton and there were a lot of other important agreements being worked on that should be signed in the next two months.

Last year Mr. Slayton raised the alarm about Bermuda being in a recession and being at a turning point in its history.

He had pointed out that the States, which provides more than 75 percent of Bermuda's import, capitol and tourists, was ailing so the knock-on effect to Bermuda would be significant.

Mr. Slayton said it was an opportunity for Bermuda to work with its US partners and businesses to come out of the recession better able to compete.

"Recessions are a fact in the capitalist system. They are part of the economic cycle.

"One of the ways you can call the top of the economic cycle is when you have people saying 'Oh this time it is different, there isn't going to be a recession'."

He said every recession gave countries, companies and individuals a chance to step back and re-think, retool and reassess their competitive strategy. The bottom line is to offer value.

"All these international exempt companies wouldn't be here if they didn't think they were getting value for their investments here.

"Whether you are an individual, a company or a country you have to offer value. And the leaders here the Premier and the Deputy Premier understand this very well."

He said Bermuda had done a great job of attracting the world's insurance leaders.

"That is an area that the Government is rightly focusing on let's be frank that it is the goose that is laying the golden egg here with GDP capita being the highest in the world."

But he said the work permit term limit issue was a concern. "Absolutely. It is something I hear all the time from my fellow Americans who run companies here and something I do believe the Government is taking very seriously."

But said he didn't know whether the Government was likely to shift it.

"All CEOs have to think about their shareholders, employees and clients. Wherever they are based, they have to think about is this jurisdiction serving the needs of our clients, employees and shareholders as well as others might?

"Is there another jurisdiction that might serve our needs better? The needs are not just financial – obviously they are regulatory and reputational. If you are running a fortune 500 company you want a jurisdiction that has a pristine reputation.

"I think that is one of the reasons Bermuda has had an advantage."

Known for his high-energy style some might think Mr. Slayton, who was once a computer magnate in silicon valley, might be getting itchy feet after a lengthy stint in Bermuda.

He responds: "The Good Book says to whom much is given much is expected. "And right now this is what I have been given this challenge and this opportunity."

Courtesy of Royal Gazette reporter Matthew Taylor