FOREIGN ECONOMIC POLICY RECOMMENDATIONS FOR AFRICA SOUTH OF THE SAHARA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00391R000200020005-2
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 12, 2016
• Document Release Date: April 5, 2000
• Sequence Number: 5
• Content Type: REPORT

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NSC
Foreign E;:onomic Policy Recommendations
Declassification/Release for
Africa South of the Sahara
Instructions on File
1. t:. riculture
sistence to cash-crop farming, and diversification of crops, are of
immediate importance for the economic development of the area. The
prevailing system of land tenure, which does not recognize individual
ownership, also discourages agricultural development in many of these
countries.
their foreign exchange. Increased production, involving a shift from sub-?
are vulnerable because they depend basically upon one crop for most of
ordinarily has no cash crop. The economies of some of these countries
scale subsistence farming is the general rule and the individual farmer
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Most Mricans depend upon agriculture for a livelihood. :.mall-
Therefore, the United States should:
a. As a matter of priority, expand its technical assistance
program for agriculture in these countries with the primary
purpose of increasing productivity and encouraging diversifca-
tion of crops.
b. Avoid withholding technical assistance because the
crops involved are in surplus in the United States.
c. As appropriate, encourage and stand ready to advise
and assist in the modernization of land tenure systems.
2. Education
The most urgent need by far in Sub-Sahara Africa today is for
increasing the facilities and raising the standards in education. More
and better schools and teachers are everywhere required, and at each
of the levels -- elementary, secondary and higher learning.
Therefore, the United States should:
a. Expand its teacher training and vocational training
programs in the area.
b. Assist in the establishment of new teacher training
institutions in the area.
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c. Assist the educational institutions in the area with
teachers, books, visual aid media and funds.,
d. Promote and assist surveys of the educational .
requirements of the area.
e. Encourage private American institutions and'fourida-
tions to interest 'themselves in the fields of health, education
and public administration, in Lfrica South of the Sahara.
f. Support, the establishment of a Central African
University in one of the independent countries of this part
of Africa, possibly Ghana, on the order of the American
University in Beirut. While funds for this project should
be provided to the extent necessary by the Mutual Security
Program, U. S. foundations and educational institutions
should also be asked to support the project,
g. Encourage increased private support for missionary
schools in the area.
3. i-Iealth
The prevalence of disease and malnutrition throughout the popula-
tion of the Sub-Sahara countries reduces the effectiveness of the labor
supply and thus retards economic development. This problem offers a
great challenge to us, and provides many opportunities fbr impact
projects.
Therefore, the United States should:
a. Expand its technical. assistance program in the area
to combat disease and malnutrition, stressing impact projects
such as the elimination of the tae-tse fly.
b. Provide economic assistance for medical facilities.
c. Encourage greater private support for missionary
clinics.
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4. Trade
Most of the foreign trade of the Sub-Sahara countries is presently
confined to the Free ;/orld, principally 1Vestern Europe. It is to the
interest of the United States that this trade continue to be thus oriented.
However, since the exports of many of these countries are limited to a
few commodities, and since these are often subject to wide fluctuations.
in price, export earnings are at times severely restricted. Further-
more, there is relatively little intra-.african trade.
Therefore, the United States should:
a. Encourage the maximum flow of trade between these
countries and the Free :/orld.
b. Help these countries to develop additional sources of
foreign exchange earnings, such as tourism and new export
products.
c. Send trade missions to these countries and participate
In trade fairs held by them.
d. Encourage these countries, as they reach their
independence, to become members of Ge .TT.
e. Be prepared to discuss commodity problems with
these countries but without involvement in international com-
modity agreements unless cleared at the interagency policy
level.
f. Refrain from adopting U. S. trade policy which would
limit U. S. imports from these countries.
g. Encourage, through the Development Loan Fund and
other means the establishment in these countries of light
manufacturing and processing industries by small and medium
size firms for home use and for export.
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5. Private Foreign Investment
The economic development of Sub-Sahara Africa cannot be achieved
by government-to-government assistance alone. Private enterprise is
necessary to strengthen these economies, both with its capital, and with
its managerial and technical skills. But sufficient private capital is not.
available in these countries and must be attracted from the outside.
Therefore, the United States should:
a. Encourage these countries to create favorable climates
for private investment.
b. Encourage private American and Free :orld investors to
increase their commitments in these countries, especially small
and medium-sized enterprises.
c. Make full use of available guaranties, tax incentives,
and other means to stimulate the flow of American investment
capital to these countries.
d. Offer assistance to these countries in making surveys of
private investment opportunities.
6.. Economic Assistance
Substantial economic assistance from the outside is needed to help
meet the development needs of the African countries south of the Sahara.
While considerable economic assistance is being made available by the
metropoles both directly and through other organizations, including the
European Economic Community, the United Nations, and the Commission
for Technical Cooperation in Africa South of the Sahara, it is unlikely
that France and the United Kingdom will be able or willing to maintain
a sufficient flow of public and private capital to their territories, par-
ticularly after these colonies achieve independence.
In these circumstances it would be to our interest for the countries
of the free World (including the United States) to provide additional
economic and technical assistance. This could be best accomplished
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through a multilateral organization comprised of the African countries,
the metropoles, and such other Western countries as are able to make
a substantial contribution. This multilateral organization could operate
much like the Colombo Plan organization, serving as a forum for the
discussion of the development programs and needs of the African coun-
tries, and the proposals for economic and technical assistance which the
donor participating countries would be ready to make available on a
bilateral basis. The employment of an existing organization for this
purpose would be more advantageous than establishing a new. one since
it would not be necessary to induce the Sub-Sahara countries to apply
for membership. Such an organization is already available for the area
which is known as the Commission for Technical Cooperation in Africa
South of the Sahara (cCTA). It includes Great Britain, France, Belgium,
and Portugal and their African territories, the Federation of Rhodesia
and Nyasaland, the Union of South Africa, Ghana and Liberia. The CCTA
now limits its activities to providing technical and scientific advice, but
it might expand its terms of reference to include economic development
and provide the mechanism for multilateral discussion of these problems.
Another advantage of using this organization is that it does not include
Russia.
Therefore, the United States should:
a. Promptly explore with the British and other appropriate
CCTA countries means by which the United States and other
Western nations may become associate members and by which
the CCTA may expand its activities to include economic develop-
ment programs within which bilateral and multilateral aid may
be extended to African countries. If the CCTA is not found to be
feasible for this purpose, the U. S. should propose the establish-
ment of a new multilateral organization along the lines indicated
above.
b. Expand U.S. economic and technical assistance programs
for this area, including the dependent territories, primarily on a
bilateral basis. The U. S. should, however, avoid an impression
in the presently dependent areas that the U. S. is prepared to under-
write their eventual independence.
c. Urge other Free World countries to increase economic and
technical assistance to the countries of this area and support the
European Common Market Plan for investment in dependent African
areas if, when operative, it is consistent with U. 3. interests.
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7. Transportation and Communications
Lack of adequate transportation and communication facilities is
handicapping the development of the interior of .;ub-Sahara Africa. A
network of roads in the hinterlands is essential to reduce the dependence
of these countries on subsistence agriculture, increase the labor supply,
expand domestic markets, and otherwise increase the rate of economic
development. While a great deal has been done to provide railroads and
primary roads between the main urban centers, little has been done to
provide secondary roads which are of prime importance at this time.
Likewise, little has been done to develop adequate communications facilities.
Therefore, the United States should:
. a. Provide technical and economic assistance for the
development of roads in these countries.
b. Provide technical assistance for the development of
communications systems, particularly on a regional basis.
8. Minerals
Mineral exploration and development are in their infancy in many
parts of Africa. The minerals-potential of several of several coun-
tries may far exceed what is presently known.
Therefore, the United States should stand, ready to provide both
educational and technical assistance in mineral development.
9. Power
The United States should consider assistance only for power develop-
ment projects which are economically sound and for which private ..
capital is not available and should avoid creating expectations of U. S.
support for projects for which there is no foreseeable need.
10. Tourism
Tourism can provide the :;ub-Sahara countries with a growing
source .of foreign exchange and promote expanded international economic
relationships. Tourism can also improve international understanding.
The African countries are not sufficiently aware of the opportunities in
this field.
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Therefore, the United States should:
a. Stress to the local authorities of these countries the
significance of this asset, and
b. Offer technical assistance to help provide adequate
facilities, remove impediments to travel, and otherwise pro-
mote tourism in the area, particularly on a regional basis.
11. Economic Discrimination
Economic discrimination against Africans retards development of
technical skills so badly needed, keeps literacy and productivity at a low
level, and adversely affects the rate of economic growth of the African
countries.
Therefore, the United States should:
a. Encourage the metropbles at every opportunity to provide
equal employment and managerial and technical training oppor-
tunities for Africans.
b. Persuade American companies in Africa to practice non-
discrimination in their operations, except where prohibited by
law, and to train Africans for managerial positions.
12. Soviet Economic Penetration
Soviet economic penetration is not yet significant in Africa south of
the Sahara. - Thi United States must not remain complacent, however, for
we can be sure that the Bloc will soon turn its attention to these coun-
tries. It is extremely important that we keep this great continent and
its strategic resources on our side.
Therefore, the United States should do everything possible to limit
Soviet economic activities in the area which might tend to bring any of
the Sub-Sahara countries within the sphere of Soviet influence.
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