SAN JUAN, Puerto Rico (AP) _ Puerto Rico's government eliminated 2,000 civil service jobs Friday, cutting further into the public payroll as the island suffers its deepest economic slump in decades.

The mass layoffs, along with some 12,000 planned for early next year, are casting workers out into an economy starved for jobs. Bankruptcies have soared, many businesses have closed and there is a growing waiting list for public housing.

About one in six people are now out of work on the U.S. island territory of 4 million people.

Marcelo Massol said his wife cried for hours when they learned that they would lose their jobs as public school custodians in the southern city of Ponce. They now plan to sell sandwiches from home to support two children and a grandson.

"There's nothing else for me to do," the 42-year-old Massol said.

Gov. Luis Fortuno, a Republican elected last year on a pledge to spur the island's economy, ordered the layoffs to narrow a $3.2 billion budget deficit. He says the dismissals of clerks, nurses, social workers and other employees will avert a government shutdown.

The U.S. federal stimulus program has helped the island, with $2 billion so far awarded to projects that repair roads and build public housing. But the territory's main economic engine _ manufacturing _ is hurting from the global recession. Real estate and tourism are also in a slump.

The government is the largest employer in Puerto Rico, where the U.S. and local governments account for nearly 30 percent of the work force _ roughly twice the rate of states of similar populations such as Connecticut, Kentucky and South Carolina.

CAYMAN ISLANDS: Gov't adopts new constitution to give territory first premier, bill of rights

GEORGE TOWN, Cayman Islands (AP) _ The Cayman Islands inaugurated a new constitution on Friday that gives the British Caribbean territory its first premier and introduces a bill of rights.

The modernization of the 50-year-old constitution was backed by voters in a May referendum and approved by U.K. officials in June.

Under the new charter, McKeeva Bush will serve as the first premier of the three-island British dependency of nearly 50,000 inhabitants and will oversee government business in the territory, one of the world's major tax havens.

"This post is not one of absolute power," Bush said in a statement. "In contrast, it equates to being an engineer first, one selected from amongst equals."

The new constitution limits premiers to two consecutive four-year terms and creates the office of deputy premier.

The Cayman Islands' Bill of Rights will go into effect in November 2012. The government said this extended timeframe was needed to allow officials to complete preparations, such as ensuring that local laws comply with the revised constitution.

The London-appointed governor, Stuart Jack, said Friday's commencement of the new constitution was the "highlight of my four years in the Cayman Islands."

"I am confident that the new constitution will serve well these islands and provide a sound basis for the relationship with the United Kingdom," Jack said.

CUBA: Potatoes and peas dropped from ration system amid calls to do away with subsidies

HAVANA (AP) _ Cuba has cut two staple foods from the monthly ration books that most islanders depend on, edging closer to a risky full elimination of the decades-old subsidies.

Potatoes and peas were dropped from the list of rationed foods this week, meaning Cubans can buy as much of the products as they want _ as long as they are willing to pay as much as 20 times more than they used to.

The move comes amid efforts by Raul Castro's government to scale back Cuba's subsidy-rich, cash-poor economy. Nearly free lunches were eliminated from some state-cafeterias in September. In October, the Communist Party's Granma newspaper published a full-page editorial saying the time had come to do away with the ration books altogether.

Authorities say their goal is to encourage more productivity and free the state from a crushing economic burden. Critics _ including some on the streets of Havana _ argue that the moves break with what had been a sacred covenant of the revolution Fidel Castro led in 1959: that socialism would not make people rich, but would provide all Cubans with at least the basics.

Even with the changes, the state pays for or heavily subsidizes nearly everything, from education to health care, housing to transportation. But many Cubans see the ration book _ or "libreta" in Spanish_ as a flawed but fundamental right, and shoppers on Friday bristled at the new changes

"This is crazy. They should be adding products to the ration book, not taking away from it," said Roberto Rodriguez, a 55-year-old delivery man buying rice, sugar and coffee at an official store in Havana's Vedado neighborhood. "If they don't produce enough, people will start to hoard products and things will get even worse."

HAITI: Planning chief clears first legislative hurdle on road to replace fired prime minister

PORT-AU-PRINCE, Haiti (AP) _ Haitian senators have taken a key first step toward replacing the prime minister they ousted a week ago.

In a 22-0 vote Friday, lawmakers affirmed that planning and external cooperation minister Jean-Max Bellerive meets constitutional requirements to be prime minister.

He must now get approval from the lower house, then both houses must approve his plan of governance. If approved, Bellerive would be Haiti's sixth prime minister since 2004.

Senators removed Michele Pierre-Louis as prime minister last week, saying she had moved too slowly in fighting poverty and relied too much on international investment plans.

JAMAICA: IMF says talks will continue with island leaders to finalize terms of $1.2 billion standby loan

KINGSTON, Jamaica (AP) _ The International Monetary Fund is offering assurances talks will continue with Jamaica on a $1.2 billion standby loan.

Friday's statement came a week after Jamaica's government forced out the central bank president, Derick Latibeaudiere, who had been negotiating with the IMF for the loan for the cash-strapped Caribbean island.

Trevor Alleyne, chief of the IMF's Caribbean division of the IMF, says in the statement that the IMF "appreciates the significant challenges faced by Jamaica." He says talks have focused on reducing the government's deficit.

Talks are expected to resume next week in Washington.

A spokesman from Prime Minister Bruce Golding's administration did not immediately return calls Friday evening.

DOMINICAN REPUBLIC: Authorities seize nearly 2,000 pounds of cocaine

SANTO DOMINGO, Dominican Republic (AP) _ The Dominican Republic says it has seized nearly 2,000 pounds (900 kilograms) of cocaine along its south coast.

The president of the National Drug Control agency says the drugs were hidden in a container on a ship bound for Spain. Maj. General Rolando Rosado Mateo says the cocaine had arrived from Venezuela.

Agency spokesman Roberto Lebron said Friday that officials expect to arrest several people.

Rosado says Thursday's seizure in Punta Caucedo follows a two-month investigation.

The Dominican Republic is one of top 20 countries that the U.S. considers as major drug producers or transit points.

JAMAICA: Glen Mills stepping down as Jamaica athletics coach after 22 years in charge

KINGSTON, Jamaica (AP) _ Glen Mills is stepping down as coach of Jamaica's athletics team after a 22-year span that saw his runners win dozens of Olympic and world championship medals.

Mills told The Associated Press on Friday that it was time to resign.

"There are a lot of coaches who are making their mark, and I think it's time for them to get a chance," he said.

Mills will still coach triple Olympic champion Usain Bolt, the 100 and 200 meter world record holder. He will also remain head coach of the Racers Track Club, where Bolt is a member.

Howard Aris, president of the Jamaica Amateur Athletics Association, said he was aware of Mills' plans to resign.

"I asked him to hold on a little longer," Aris said.

Mills took over as head coach in 1987 from Jamaica track legend Herb McKenley, who was one of the first two people from the Caribbean to win an Olympic medal.

Mills ran in high school but did not compete at an international level.

Under Mills, the team won 71 world championship medals and 33 Olympic medals.

The Jamaican association does not expect to appoint a new head coach until shortly before the 2011 South Korea world championships.