St. Lucia

CASTRIES, ST. LUCIA--Government workers in St. Lucia, one of the Lesser Antilles Islands in the Caribbean, went on strike for higher wages yesterday, seven days before the government will gain its independence after 177 years of British rule.

Police used tear gas to break up a demonstration by striking teachers after Premier John Compton declared that pay raises would be disastrous to the nation's economy.

Unemployment rates of 17 to 30 per cent and a massive trade deficit undermine the economy of the 27 by 14 mile island.

Britain has provided the island with aid to shore up the faltering economy which is entirely dependent on the export of bananas and has promised an independence gift of $20 million as well.

Compton said independence is the key to strengthening the nation's economy as the independent government plans to institute a duty-free indistrial zone to encourage foreign investment and decrease dependency on the banana.