FOREIGN ECONOMIC POLICY RECOMMENDATIONS FOR AFRICA SOUTH OF THE SAHARA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00391R000200020009-8
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 12, 2016
• Document Release Date: April 5, 2000
• Sequence Number: 9
• Content Type: REPORT

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SECRET CFEP 568/1
Foreign Economic Policy Recommendations
for
Africa South of the Sahara
1. Apiculture
b. Avoid withholding technical assistance because the
crops :involved are in surplus in the United States.
c. Avoid concessional disposal of U. S. agricultural
surpluses in a manner that will disrupt markets for African
agriculture.
d. Offer to assist in the modernization of the land tenure
system.
search and crop yields.
prevailing system o ?
ownership, also discourages agricultural development in many of these
countries.,
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 diversifi-
cation of crops.Special attention should be given to soil re-
sistence to cash-crop farming, and diversu1cation o crop
immediate importance for the economic development of the area. The
f land tenure which does not recognize individual
ordinarily has no cats c jr.
are vulnerable because they depend basically upon one crop for most of
their foreign exchange.. Increased production, involving a shift from sub-
S? s are of
s
Most r#can p
scale subsistence farming is the general rule and the individual farmer
h ro The economies. of many. of these countries
de end upon agriculture for a livelihood. Small-
Af
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2. Education
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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.
c. 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.
d. ' Urge increased private support for missionary
schools in the area.
3.. Health
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 for 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 tse-tse fly.
b. Provide economic assistance for equipping modern
clinics.
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c. Urge greater private support for missionary clinics.
d. Increase the U. S. contribution to the world Health
Organization so that it may expand its activities in this area.
Most of the foreign trade of the Sub-Sahara countries is presently
confined to the Free World, principally Western 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 World.
b. Help these countries to develop additional sources of
foreign.eiechange earnings, such as tourism and new export products.
c. Participate in trade fairs held by these countries.
d. Encourage these countries, as they reach their
independence, to become members of GATT.
e. Be prepared to discuss commodity problems with these
countries but without involvement in international commodity
agreements.
f. Refrain from adopting U.S. trade policies which would
limit U.S. imports from these countries.
g. Encourage, through the Development Loan Fund, the
establishment in these countries of light manufacturing industries
by small and medium size firms for local and antra-African trade.
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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, including the enactment of fair investment
laws.
b. Encourage private American and Free tiiorld investors to
increase their commitments in these countries, especially small
and medium-sized enterprises.
. C. Stimulate the flow of American capital investment to
these countries through guaranties and tax incentives.
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
rnetropoles 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 will not be
adequate for the development of the Sub-Sahara countries at a satisfactory
rate. Furthermore, 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, particularly after these colonies achieve
independence.
In these circumstances it would be to our interest for the countries 0
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 metrapoles. and as many other Free World countries as possible.
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 countries, and the proposals for eco-
nomic 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 terri-
tores, the Federation of Rhodesia and Nyasaland, the Union of South Africa.
Ghana and Liberia. The CCTA now limits its activities to providing tech-
nical 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 organiza-
tion is that it does not include Russia.
Therefore, the United States should:
a. Promptly propose to the CCTA that it invite the United
States and other Free World nations to become associate mem-
bers, and that it 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 now 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. stressing "impact" projects.
c. Urge other Free World countries to increase economic
and technical assistance to the countries of this area.
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7. Transportation and Communications
Lack of adequate transportation and communication facilities is
handicapping the development of the interior of Sub-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 secondary roads in these countries.'
.
b. Provide technical assistance for the development of
communications systems, particularly on a regional basis.
8. Minerals
Basic geological surveys to determine the nature and extent of the
mineral resources. their location, and other characteristics have not
been made for large parts of Africa. Because of the technical require-
ments and costs involved, this job in most instances cannot be done by
private enterprise. Neither can the countries themselves in their
present circumstances undertake such surveys.
Therefore the United States should advise these countries that
if they so desire, we will consider making surveys within the limits of
current appropriations.
The United States should avoid creating expectations of U. S. sup-
port for power development projects for which there is no foreseeable
need in the near future, and should consider assistance only for projects
which are economically sound and for which private capital is not available.
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Tourism can provide the Sub-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.
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 the African 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. Urge the metropoles at every opportunity to provide
equal employment and managerial and technical training oppor-
tunities for the African.
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. The United States must not remain complacent, however, for
we can be sure that the Bloc will soon turn its attention to these countries.
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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