Better late than never, but I just now read Haney's book. He never said it was an "island" nation. He specifically said "small tropical nation." He was referring to El Salvador, the smallest nation in Central America. We know Haney is referring to a period just prior to October 1983 invasion of Grenada. In October of 1979 the JRG (Revolutionary Government Junta of El Salvador), which was composed of Christian Democratic party leaders and military sympathizers, overthrew Salvadorian dictator-style president Carlos Romero when the socioeconomic **** hit the fan within the country, thus kicking off El Salvador’s 12-year civil war and a whole lot of human rights crimes, including burning of farms, murdering of civilians, etc. — the same old struggling, disenfranchised, poverty-stricken Central American tune, more or less. No surprise there. However, the new junta was far more agreeable to US corporate demands
The JRG, led by José Duarte, ruled the country from 1979-1982 until they eventually installed a new president, Álvaro Magaña (1982-1984). Free Trade Zones and no foreign taxation was expanded and you had a happy US. There were actually three separate governmental phases during the civil war, so it would likely account for why Haney expected the briefing he was about to receive on the Grenada invasion was going to be a reengagement of the planned El Salvador invasion.
As for the “major US company” looking to avoid taxation mentioned by Haney, it is impossible to be 100% sure, but it’s not difficult to infer. He was most likely referring to Procter & Gamble and General Foods (now Kraft Foods). Here’s why: El Salvador's primary export is coffee. At the time (and presumably today as well), coffee constituted 70% of their total exports. To be blunt, beyond the marginal amounts of sugar and cotton exported, commercially speaking, no one had any reason to give a rusty **** what happened in El Salvador beyond the coffee trade. The US is the largest importer of coffee — then and now. The largest coffee brands of the day were Folgers, owned by Procter & Gamble, and Maxwell House, owned by General Foods. Together, these two companies bought one of every three coffee beans that came from El Salvador in the early 1980s.
I've also included an article in the sources from 1983 in which a Nicaraguan rebel leader claims the US plans to invade El Salvador.