NATIONAL INTELLIGENCE SURVEY 50E; GUINEA; THE ECONOMY

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• Collection: NIS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP01-00707R000200110062-5
• Release Decision: RIF
• Original Classification: U
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• Sequence Number: 62
• Content Type: REPORTS

W /u /l
Guinea
May 1973
NATIONAL INTELLIGENCE SURVEY
FOR OFFICIAL USE ONLY
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d
Lr76 '9� r
J
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4
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i
a
Guinea
CONTENTS
This General Survey supersedes the one dated
July 1969, copies of which should be destroyed.
A. Economic appraisal
B. Structure of the economy
1. Agriculture, forestry, and fisheries
a Land
b. Agriculture
c. Forestry
d. Fisheries
2. Fuels and power
3. Metals and minerals
a. Bauxite
b. Iron ore
c. Diamonds
1
Vj
2
2
3
6
7
7
8
8
9
10
FoR OMCUL USE ONLY
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Page
4. Manufacturing and construction l0
5. Domestic trade 1 i
C. Economic policy and development l l
1. Policy 11
a. Government finance 11
b. Money and banking 12
2. Development 13
Page
3. Manpower 13
D. International P vmmnic n lath m 14
1. Foreign trade 14
2. Balance of payments is
3. Foreign aid 17
Glossary 17
FIGURES
Page
Fig. 1 Economic activity map) 2
Fig. 2 Land use chart) 3
Fig. 3 Estimated agricultural production
(table) 4
Fig. 4 Drying coffee beans (photo) 4
Fig. 5 Production of electric t nergy table) 8
Fig. 6 Alumina plant photo) 8
ii
Page
Fig. 7
Ordinary budget (table)
12
Fig. 8
Registered wage earners table)
14
Fig. 9
Foreign trale chart)
15
Fig. 10
Composition of exports table)
15
Fig. 11
Composition of imports chart)
15
Fig. 12
Balance of payments (table)
16
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The Economy'
A. Economic appraisal (V /OV)
Guinea� eeloal in size to the United Kingdonn but
with a population oily 7ri as large �is rich in natural
nNIAM11% and has good lote:ttia) for M-011 ntic growth
1 Figure 1. Its loasie stn -ngths are large mineral n-A-m m
:and good agricultural land that is witable for it varieh
of erops. One -fifth of the world's known reserver of
luin%de are ls ate d in the tonnntry as well ;a. (urge
deposits of iron ore. With a ttnxdest rate of
thwelopment. the trnmtn ersuld Ix�trsnx� self- sufficient
Ill its principal food crops ;and cywld provide
sulr. tantial exports of cash cr p%, such as bananas.
troffer. tudrn oil. ;utd peanuts. Other resesurc�es include
ample forest%. all alunedanee of fish in coastal waters,
and rivers ssith considerable potential for the
production of h%dr o�i�c�tric potter. In addition, the
eonntry has it substantial livestock population.
coll%6ting printaril% of tattle. with le-%.e�r numlmrs of
sheep and goat: however, the qualit of the herds is
generall% low and is not expected to improve
significantly as long as cattle are kept mereh as if
svmloi of wealth.
After indepx�ndence in 195h. G ainea's French -sale
economic %%stem was replaced b% it new one guided 1 0%
Prmitde�nt Sekoes Toure' s radical- seo�iali.t philoseoph%.
Except for mining and agric�ultore, practically all
important etenornic activit is owned or controlled by
the government. Despite the governments increasing
intent in and assumption of control of the economic
sector, ecrmennic development rvnains lx-low political
deve lopment in priority.
The Guinean Government ha.+ placed considerable
emphasis on planning to foster economic frowth.
nevertheless. the 19M) -&l and IWA -7 development
plans were little more than lists of the publie
inveMmenh to lot- made in the various sectors of the
economy The plans did not contain quantitative
NUTF The� entire content uI this +croon is UNCI ASSIFIED
bast is [fir FOR OFFICIA1. CSE ONLY.
Koals fist growtln of the� I'vollunty nor details of the
iuterrelationsl Its atmng the sectors. The plans
etnphasizeed +nxdernizathill and expansion of the
erseuttrv's tr:atslortation and communication facili-
ties: mining and tnamtfw-turing were allocated
sttutller -.unts for investment. mad agricultural
development seas given the lowest priority. A large
Iutrt of total plan expx�ndittires uas to he financed by
fowign loans, mainly from East F.urop a at!(] the
Peoples Republic Cbina.
Economic progress has been slow, and per capita
intrnne has stagnated M about US$80 for more than a
decade. Unl% investment in mining, manufacturing
anti handicrafts have matched or surpassed lilun
targets� whereas other public itnvestinents, particularly
in agriculture and transportation, fell far short of
planned le -vets. Moreover, most of the public
illyeslment has not led to significant increases in
itith.strial output because of the emphasis placed on
infrastnichcre projects, because of the undentilization
of industrial capacity its tilt- result of shortages of racy
materials and spare parts, and because of the small
size of the domestic market.
Most Gnineans have benefited little from their
socialist economy. Few have more than one or two
changes of clothing, most of which is homemade. The
diet is inadequate: rural housing is primitive.
overcrowded. and unsanitary, and urban housing is a
mixture of apartment houses and Western -style villas
for the elite and rural -type It its and shacks for the
floor. Government health, education, and welfare
services are limited, and most Guieeans rely on
traditional family. tribal, and community assistance.
Government mismanagement of the distribution of
consumer goods and the purchase of agricultural
produce has led to shortages and it high cost of living.
Paradoxically, foreign exploitation of the country's
mineral wealth offers the hest hope for stimulating
economic growth in socialist Guinea. President Toure
has been enough of it pragmatist to encourage private
foreign investment in the exploitation of bauxite, iron
ore, and diamonds. Already the bauxite industry is the
main source of foreign exchange. In fact, within the
next tlec.de the existing bauxite operation of the
FRICUTA (formerly F RIA) mining company and the
rnamrnoth new Hoke project alone are expected to
gross each \ear at least twice the $50 million earned by
total exports in 1971. These additional revenues will
ease pressures on the balance of payments that have
persisted since independence and will enable Guinea
to import the equipment and materials that are vital
for domestic development.
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6nu1
Boke._
T
r ronkoure
Fri .klamou
.Kindia V O
I n es dote
Conakry
lb
V Bananas Bau;de
Coffee Alumina processing
plant
Oil Palms
0 Pineapples Iron ore
Peanuts Diamonds
A Thermal powerplant
12 Hydroelectric powerplant
5016994-73
FIGURE 1. Economic activity
8. Structure of the economy
1. Agriculture, forestry, and fisheries
a. Land
v.
J Dahota Kouroussa
Guinea consists of four geographic regions varying
greatly in topography, climate, soils, and vegetation.
Basse Guinee, also referred to as Maritime, Coastal, or
Lower Guinea, is generally flat and wooded and is the
most densely populated region. Thy coast is indented
by wide estuaries with low, muddy banks backed by
dense mangrove forests, large areas of which have
been cleared for rice cultivation. Most of the banana
plantations and all of the pineapple plantations are
located in this region. Movenne- Guinee (Middle
Guinea) consists of plateaus traversed by many
streams and rivers that have created gorges and
waterfalls. In the west, the terrain rises sharply from
the coastal plain in a series of steep ascents which
culminate in the massif of Fouta Djallon; in the east it
falls .gradually toward the rolling plains of the upper
Niger River valley. Moyenne Guinee is primarily a
pastoral region, supporting traditional cattle herding
PA
Foransh
.Kankan
i
r
o
s
Nlerekore�
and the growing of subsistence crops, such as fonio
(finger millet). Peanuts and some coffee are also
grown, and there are a few orange and jasmine
plantations. Haute Guinee (Upper Guinea), directly
east of Movenne Guinee, is mainly a region of roll;ng
savanna plains. Trees grow along the streams and in
scattered clumps throughout the countryside. Rice is
cultivated along the rivers, while sorghum, fonio, and
sweet potatoes arc grown on the drier land. The
southeast portion of the country, Guinee Forestiere
(Forest Region), is covered primarily with dense
tropical forest and produces most of the country's
coffee.
Of Guineas 9:5,000 square mile area only about
10% �the coastal plain, the valleys of the big rivers,
and scattered small tracts of bottom land �is amble
(Figure 2), more than half of which lies fallow because
of the practice of shifting cultivation. Another 20% of
the total area could be brought under cultivation by
constructing terraces, embankments, and permanent
borders of vegetation to protect the soil against
erosion. The remaining land cannot be cultivated
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TOTAL LAND AKA
95,000 squore'Mies
Arab;e
1 0%
Pot
Savanna A
and
Woodlands
66%
FIGURE 2. Land use
Forest
Reserves
because it is subject to severe erosion or because the
soil has already been destroyed.
The size of individual farms is limited to the area
that a family can cultivate with the simple traditional
implements available. No breakdown of farms by size
groups is available, but according to estimates based
on the size of farm families, total rural population,
and total cultivable land, there are about 600,(M
farms averaging approximately 10 acres each.
Holdings in excess of 25 acres, including land in long-
term fallow, are rare..
Ownership of land is communal, with rights to
individual plots accruing because of use rather than
legal title. While land tenure systems vary among
tribes, a family settling a tract of land or clearing it
generally is presumed to have obtained for itself and
its descendant% the right to use it. When it lineage
ceases to use a holding, the land reverts to the local
community and may be assigned to another lineage.
The leader of the lineage group traditionally divides
the land among the heads of the constituent families,
and within the same household various family
members may have use rights to different pieces of
land.
Beginning in 1960, under the first development
plan, an effort was made to change the traditional
pattern of land tenure to a system of collectives. A
Center for Agricultural Modernization was set up in
each administrative region to provide equipment,
training, and extension services, but this support
proved inadequate primarily because of poor
planning and lack of skillet) Irersonnel �site) forced
collectivization was given up alter at few years. A more
limited effort to pno tole voluntary collectivization
was made in 1968, but agriculture production still
originates almost entirely from family plots. Some
isolated cases of collective production activities
operate under politically appointed officials.
h. Agriculture
Agriculture engages some two- thirds of the
population and contributes snore than one -hall cf
domestic production. The wide range of natural
conditions in the country allows for considerable
diversification (Vgttre :3). 'r'he� major cash vrops are
bananas, coffee, palm kernels, pineapples, peanuts,
and citrus fruits, and the principal food crops art %ce,
cassava, corn, fonio, sweet potatoes, and sorghum. Iu
recent years the government has encouraged the
cultivation of cotton, tea, and tobacco to meet the
requirements of some newly established processing;
plants, but output is considerably short of the capacity
of these plants. Development of agriculture has been
hampered by soil exhaustion, plant diseases, the lack
of fertilizers and spare parts, and transportation and
marketing difficulties. Morc er, agriculture has been
given it low priority in de%-eloprnent plans. and long-
term bank credit for rural development has been
lackivg.
(I) Cush crops
(a) COFFEE�COWL is grown primarily in Guinec
Forestiere. Most is of the Robusta variety, although
small quantities of higher quality Arabica are
cultivated in the cooler foothills of the Fouta Djallon.
Before independence, Europeans owned some of the
coffee plantations, the largest of which covrred
hundreds of acres. Presently, however, all coffee is
produced by some I(X),(XX) Guinean planters on small
plots, most of which are tended solely by family
members without hired labor.
Coffee production fluctuates widely as the result of
changing weather conditions and infestations of plant
disease. Annual output ranged between 10,000 and
15,000 metric tons during the 1960's but is estimated
to have risen from 13,0(X) tons in 1969/70 to 23,000
tons in 1970/71. A further increase to 40,000 tons is
expected in 1972/73. Official production figures are
inaccurate because a large part �sortie estimates run
as high as 50 �of the coffee crop is smuggled to
neighboring countries where prices are higher. The
1970/71 increase in reported output was caused in
part by the rise in domestic producer prices for coffee
and by efforts in some neighboring countries to curb
n
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FIGURE 3. Estimated agricultural production
i thousend metric tons)
I!Nill lit 11111:1 fill 1966 iii 111417 ti% 11"i% fill 1 711 1!1711 7 1
Flmd rnt1�:�
Itlre.......
323
273
27.1
Sill
:175
11111
1211
I. 'a+sava........
133
afill
IINI
1.141
175
51x1
52:,
'f/rIi..........
3111
32%
27
:11x1
125
3511
11111
1''411111)..
13
115
fill
711
711
ill
711
SWt�11 poltlloen.
.i.i
fill
75
%5
%5
!111
!15
S4irghuin
7
7
11
I't�anut.........
15
17
Ill
25
25
20
I1tlntlttllt........
75
1x1
fill
511
75
i:r
fill
('41111.4�
I I
I I
13
111
13
13
1'nlin kernel+....
2
2%
21
25
2%
30
:32
Pineapples......
II
12
13
15
25
25
:111
Citrus fruits....
:1
5
o4
7
qu
ho
F111 Datit 1141t availabb�.
"atom� of the mops an inlportlult booth a� food and a, Bash rrop but tiro e:oegortZe41 aeror4hnt to
their utajur eeonontie onpoortatt�e.
.n111LLlinL. 'I'hc lain ha r.e�l %vamitI last� Iro4io
\ovvinl �r to March. tht� peak sca.on fcing Fcbroar%-
March. Simple processing oln�ralimis..ttcb u% drfoing
the t�offec bean., are gcrtcralk done on the farts
1 Figtirc 11.
(:offee lief). arY� fur be uis (:11 iiIII'. lit olerltial. In
1950 -5 -1. a%craged :WS kilfoeram 122 lnlunfl�t
per hcctarc (2. 1 acre.). ttIlcrea� in 1616; i41ld� %%t�rc
to
Y
v %timalcd at IINI Ito 21x) kilograms per llcclare. 'I'lu-
IIf�t�linf� w:t. ca11.ed Ii .1 Ilnll~11� inic�lation, sthich in
cnp ivar 166:1 lit m-cte.�ilatcd the dc�lnu�tion tot .otrn�
15 million Irev%. l)I appro\inlatrk 1111 million trt�f�.
standing in 1961 1. abort half "t-re largelo. lmpridoc-
Ike beca11.c fit alzv. rlcglcul. or diwa.41.
shove 16x11 the Vml-rnnlenl ha� 1well cond11cling .1
program to replace Ilic local Ilob11.ta coffcc tree. %%ith
IL�fo.c Iof Hobn�la Ineac. sthich arc hitch lidding gild
diwa.41 re- ,ki:lot Imot IIt ret fourtIt of ;Ili Ilea 's
coffee Irce� are nose, of the Rolnl.ta Neat- %ariet\. the
program� prodoclion goal. ha%v not boon achieecd.
ho%%v%rr. becaow of inadviltiate to mical soperf,i�ion
during the distrilolltion :Intl planhi g of seedlini;s.
Propel\ tcndrd. the Hob11�ta Incas lark)\ can cicld
11x1 l0 1.(w kilovam% per hectare per \car. :fin%
c\pamion of o11Ipol. himc%er. is depcndeW upon the
organi /ation of a %%idt %pread v\tcn�iorl effort to
impno%v the Ivchoologi 11.41(1 b\ ,;roller.. but the
eyn�r1 technical �11p4-rvi.ion rc4111ir41d for such a
program i� lacking.
(61 are groiin on plantations in
the coastal Iti% land and Mons; the Conakr\- Kankan
rail (ins .t% far inland as Mam ou. ()i1 "ell- managed
farts held. of 11p to 11 metric tons pvr hectare are
oltaillyd. but .mall producer coinimmli Let \i(-Ids (if
4$111% 111 to 15 tun� lx-r liectare. Prod11ctimi costs arc
high beca11.41 fertili /cr.. in.ccticides. and farm
machiner\ snit. 1w imiloorted. Batlanas are harvested
throngho11t the \ear.
tiincc independence the banana indn�trx ha.
stagnated Iteva11.c of the ewdlt. of most FrencL
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FIGURE 4. Coffee beans being dried in a
Guinee Forestiere village

plaittalion owners, lilt tct�irmnce of 14�:tf spet
(Sigatolia dist�asel 111:11 page .I nearh half lilt- area
under euhivalion. low prodoc�t�r prices. ivaclequate
care of hanatta platils. Iranspxrtatiort difRcalties. and
the has of the French market. In If oO; I, prtclnctioo
declined No', to Mom toms. The govenunent is tr%ing
10 rote -awe the anal eullivuled and to smontrol Inmana
diw�ases, hilt impmnement is likel% to Ix� slow :unl
expxet sAv. A slx�c�ia) ginvromenl agency appan�1111c
has made wnx� prentnrs in volobaling diseaw� and
improving the giialih of the fruit. The Kovernment
feels that once plant disease is vowr fled, banami-
growing will again Ix- c�nmu� attractive, eslx�cialh since
it entails less stork and nearly half the time r�gnired to
grow other crop�.
The U.S.S.It.. Fast Cermam. aml other :onunulist
c tintrie, are praeticall% the onl% markeh for Guinea's
hanamm For political maims. Commumist countries
Iiav prices alpine %%orld market Ievels through hilateral
Agreements. Iloumer. Guirte:t's t-xp ort marketing
agency n�lxrt(-cll% has 1xvii suffering vow-iderable
Imm. -S Ix�c�ause of slxilage of balialias in sIliptnt-nt.
Prospects for expanding exports outside the
Communist areas ore not Favorable bec ause wine. o
producers cannot cnnpx�1e in prict� and qu :lit on
world markets.
(c) rtx �Cult i%atioll of pineapples is
lirnited to liasst�- Cuinc�. mainl% :,round Fort�c�ariah
and Kindia. Proodoc�tioo nst� from alxut I I.1NN1 tons in
19&)/'61 to -100M) tons in 19:11 i 1. and further
increase�% are iikeh The value of pineapple exixrts has
Ixen increasing rapidly in r %ears, I:arth Ie�cau
more of the c�nop is Iwinx exlxrted :as juice and cartncl
fruit. Even the most efficient growem however. hart�
production cchts� alNut half of which consist of
imixrted inputs estimated to IN- altnit 25 higher
than the world market price. and c�emtimeed expansion
of production is lxssille 401111 Ix�tausc� of the high
prices paid b% Fast Flimix�an countritn.
(d) om- u-xitim. c itoi -,The oil palm is the most
imlxrtant of the oil Ilearinx plants in Guinea. This
tree grows in main ixtrts of the co there are
dense naturl groves in 13assc�- Cuinee and Cuinee
Forestien�. Although improved varieties are available.
few have been plamed.:uid yields continue to IN. low.
The palm fruit is gathered as needed throughout the
year.
Oil usually is extracted by hand- Imimiding the fruit.
flouring hailing water over it, and then skimming off
the oil, which is used for cooking. for making %cap� as
a kerosene milmitute. as a cosmetic. us a nu dirine, uncl
as a preservative for meat and fish.
A114-t the� palrtt oil has beers estraetud from the fruit,
the remaining nutlike portion is cracked to e6lain th
kerm -I that contaiiis :abut,; r'i oil. I'nduc�tion of
p:altn kerovi.. has shoeen lilile� treat-� lhroughot;l the�
peril den :ale. bia an iiiervase in pndoction is expecled
following the importatimi of crushing eviniptne�nt.
:xli+rts of palm kernels are not t�.pecte(l to rise
Ix�cause of the anticipated iner;tse in local processing
of palm kertn�Is into oil for domestic consumption.
"eannts are the ooh other significant source of oil.
The- main area of cultisation is around Koundara,
nett dw Se�ttegalew border. Prodcic�tion declined Im
20'i to 20,M) tons in lf);O i I. In the past, much of
the crop %%as exported. bill in recent %ears ey orts have
evaseel Ix-cause the peanuts now are c�omumed locall%
or are processed for domestic oil consumption.
Guinea has t110 nil expressing plants� located in
Dalmla and on Ile Kassa off the coast al Conakrs �for
tilt- production of palm kernel oil and peanut oil for
(ontt-stic cmnmption. "I'he Dabola plant, established
In 1970, has operated at orI, 10'; to IS of its
capacity of 110m) tuns of peanut oil and :3.M0 tons of
palm livroel oil because of it shortage of r;i%% materials.
:t lack of spare parts. :aid poor management. The
Kassa plant. MIlich is touch smaller. has not been
olx�rating for several %ears.
i t- Ortitat (root~ Efforts to expand production of
other cash crops him- not been sere successful; it fess
egetahles are gro"it for sale its fresh produce and for
prexessiug. The government has encouraged the
c�tmslniction of processing plants for these and other
agricultural products. hilt with little thought gi% to
expalmon of the plants' raw material soppy. Small
�quantilies of good quality tobacco are c�nitivaled in
Ilaute- Guinee and Cuinee Forestiere. Tea and cot`.on
art� also cttlti%ated on it small scale.
12 o rm cropps
,al 1110 �Kiev is the most important fond crap
prudnc +�d it; Guinea, accounting for more cultivated
an�a than am otht-r commodils. Despite the stend
increase in rice pro i let ion� to 120,(NN) tons in
19 70 I� donte�stic output is still .cell helot% demand.
and large (Immlities are itnixrled. maim% from tau-
Uti ted Slates and China.
Both upland (dry) rice and swamp (ssrl o rice are
grown. Yields of upland rice are about 6 quintals per
hectan� (approximately 523 Imunds per acre). about
half the %ields for swamp rice. Upland rice is grom-ii
withoui fjexeling and may be interplanted with other
crops such is ,�urn. Between 30 and all inches of rain
are reeluired to prtduc� it goeel crop. As the� production
a
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of upland rice has been extended and fallow periods
shortened, soils have deteriorated. Swamp rice, which
must stand in water, is grown along the co:�,1 and in
the flood plains of the Niger River and its tributaries.
The expansion of ricegrowing into n�% areas is
severely limited by climate and techt The
productivity of the land now under rice cultivation
could be greatly increased by improved techniques
and by shifting from upland to swamp rice. Despite
government encouragement, however, the shift has
been in the opposite direction, from swamp rice to
upland rice.
During the growing season, diseases and pests are
not serious threats, although rice stem borers arc
believed to he present. The deterioration of rice during
storage, however, is it serious problem, especially in the
more humid areas.
(b) oTnr:nt CHAINS �Corn, whose cultivation is
limited to rather small regions because of climatic
conditions, is grown more intensively than other crops.
It is most widely grown near iNacenta and Siguiri,
where it occupies between 205i and .1551 of the land
under cultivation. Frequently, corn is planted in the
enclosed areas around houses, yhere the soil is
improved by manure and compost. The most serious
threats to corn ore mildew, leaf blight, smut. and rust.
Fonio, an annual grass about 1' feet high, is
second only to rice :1-n area planted, but low yields
(about :3 quintals per hectare) result in a lower total
output than corn. Although fonio is grown in it
number of places in west Africa, only in Guinea is it an
important part of the diet. It is grown in most regions
of the country, except the extreme southeast. The
ability of this hardy plant to grow on poor thin soils
has made it particularly important on the Fouta
Djallon plateau. Fonio is plant(-(] instead of upland
rice at elevations above 2,500 feet.
Sorghum and millet are minor crops that are often
interplanted with rice or corn, since they are more
drought resistant than either of those crops.
(c) urnn�:nt coon (noes �Other food crops consist
primarily of roots, tubers, and vegetables. Cassava,
although low in nutritional value, is a staple of the
Guinean diet and is the most important of the root and
tuber crops. It is grown throughout the country but
principally near Kankan and Gueckedou. It is often
planted in fields that cannot support a more
demanding crop. Production has increased steadily in
recent years, with estimated yields of between 50 and
60 quintals per hectare. Sweet potatoes and cocoyams
are the other principal roots and tubers. Sweet
potatoes are grown in most regions of the country but
6
principally near Boke, Gueckedou, and Dalaba.
Coco%anns are an important crop in Beyla and also are
cultivated around Siguiri, Nzerckore, and Telinule.
Various vegetable crops are grown for family
consumption, the more common being spinach,
eggplant, onions, and tomatoes; some mangoes and
papayas are grown in the north. The primary source of
fat in Haute Guinee and Moyenne- Cuince is a
product called shell butter, extracted from the oil
hearing nuts of the rhea tree.
(3) Livestock �The contrihution of livestock to the
agricultural econonny is small, even though livestock
numhers are large. Cattle owners regard their animals
more as it status symbol than as it source of food, farm
work, or income. I ?stimates of the livestock population
range between 2 million and 3 million head, one -half
to three- fourths consisting of cattle and most of the
remainder of sheep and goats. Several thousand hogs,
donkeys, and poultry are also raised. Roughly 1 10,0110
head of cattle are slaughtered each year, and perlaps
another 10,000 are exported (on the hoof) to
neighboring countries. The quality of meat is
generally poor. In most other African countries the
grade of meat sold in Conakry would either be
considered unmarketable or %would be used only as
sausage filling. Domestic meat consumption ;s less
than 9 pounds per capita annually.
Livestock raising remains largely traditional and is
concentrated in the Fouta Djallon, which has an
abundance of pastureland and springs. Most of the
rest of the country is infested by the tsetse fly and
therefore is unsuitable for livestock. The animals are
generally undernourished and susceptible to disease.
'['hey are almost entirely dependent on grazing
because no forage crops or hay are produced, and
very little grain is used for feed.
The Nd(una breed of cattle predominates, and
though well adapted to local conditions, it is small and
not very productive. An adult male animal in good
condition caul reach it weight of up to 725 pounds, but
the average carcass weight is about 185 pounds. In
parts of neighboring Ivory Coast, where cattle are
better cared for, average weights of Ndama cattle are
25% to 301 higher.
e. Forestry
Extensive portions of Guinea consist of patchworks
of savanna woodlands, open grassland, cultivated
plots, and occasional small areas of tropical rainforest,
part of which is closed high forest. Slightly more than
I million hectares in Guinee Forestiere are designated
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as forest reserves. Several hundred species, all
broadleaf, occur in Guinea's forests and woodlands;
only a few species are cut for purposes other than
roundweod for fauns and fuelwood. 'I'll(- character
and distribution of forests are largely determined by
rainfall. length of the dry season, soils, and fire. In
general, forests are differentiated into closed high
forest and savanna woodland of various densities.
Mainly because of the increasing number of fires that
have occurred as the result of the expansion of the
country's population and of slash- and -burn cultiva-
tion practices, closed high forest is limited to small
areas in Guinee Foresticre and in the Fouta Djallon,
some of which are not easily accessible.
The cl. ed high f )rest of Guinee Forestiere is
t, pically three tiered. The main canopy consists of
trees 20 to 30 meters tall, the upper tier of scattered
giants up to 60 meters, and the irregular lower tier of
underbrush and trees up to 10 meters in height.
Remnants of high forest not damaged by fire are
scattered throughout the Fouta Djallon.
Other areas where trees are dominant are the
savanna woodlands. On the Niger plain, woodlands
become more open and scattered, and be dominant
species run as high as 6 to 12 meters. Basse- Guinee
contains rather dense woodlands of various species
used primarily as firewood, but the presence of
numerous villages has ied to heavy overcutting. Areas
around villages are often occupied by oil palms.
The exploitation of Guinea's forests is limited. A
sawmill and attached veneer plywood plant estab-
lished in 1964 at Nzerekore with assistance from the
U.S.S.R. has an annual processing capacity of 50,N)U
cubic meters of timber, 22,500 cubic meters of sawn
timber, 6,000 cubic meters of plywood, and 2,4(X)
cubic meters of veneer. In 1971 utilization of the
sawmill averaged less than 35ii of capacity.
d. Fisheries
Guinea's offshore waters are well stocked with fish,
but the fishing industry is undeveloped. Most of the
several thousand fishermen use primitive techniques
and work from small ports along the coast. Their craft
are primarily 30 -foot sailboats, although some are
motorized. The fishermen stay within 15 miles of the
coast, remaining at sea overnight and smoking part of
their catch on board for sale inland. The catch,
estimated at from 1,500 to 3,000 tons annually,
consists chiefly of sardines, mackerel, and shad.
Modern commercial fishing ships, most of them
operated under commercial agreements with Poland
and the U.S.S.R., account for about 800 tons of the
annual salt water catch. In the 1966 Agreement on
Cooperation in Marine Fisheries, the U.S.S.R. agreed
to supple Guinea with 10 iishiug vessels and to keep
technical experts aboard them for :3 years. "They also
agreed to accept 60 Guinean students and apprentice
fishermen to train in Soviet fishery schools. Itah and
Japan have also fished in Guinean waters, dividing the
catch with the Guinean Gov^rnme�nt, and in 1967,
West Germany agreed to help build and operate small
fishing craft. In 1972, the government and the Dutch
airline, KLVt, agreed to form it new company,
A RIMAR, to further exploit fish resources off the
coast. AFRIMAR is to lease all of the necessary vessels
and equipment from it Liberian firm. Further
development of commercial fishing is handicapped by
the lack of cold- storage, canning, and other processing
facilities. Fresh waters are fished primarily by women
using traps and lines. The size of their catch is
unknown because most of it is consumed locally. The
most common fresh water fish are carp, catfish,
butterfish, and moonfish.
2. Fuels and power
Firewood and charcoal are the only fuels produced
domestically; no mineral fuels have been discovered.
Since 1961 approximately one -third of Guinea's
petroleum product imports have been supplied by the
U.S.S.R. under long -term credits. The remaining two
thirds have been supplied by five Western companies
(Texaco, Mobil, British Petroleum, Shell, and Total
a subsidiary of French Petroleum Company). The
FRIGUTA alumina plant consumes about two- thirds
of total petroleum product imports in the form of fuel
oil supplied by "Texaco under exclusive contract.
Petroleum products sohp !6vd by non- Comn�tnist
sources are principally kerosene, diesel fuel for the
bauxite operations, and all lubricants. The Directorate
of Mines and Geology is responsible for the supple,
storage, and distribution of petroleum products to
government organizations. Within that directorate,
imports and sales of petroleum products are handled
by the National Petroleum Office (ONAII).
President Toure ordered the nationalization of
foreign oil operations in Guinea in January 1972. A
month later, however, he modified his "all inclusive"
nationalization by exempting the 'Texaco -owned
central storage tacility �the bulk of "Iestern oil
investment �and airport refueling equipment. The
distribution network, such as gas stations, remains
effectively nationalized since its takeover by ONAII in
June 1971.
With the completion of a number of public projects,
total installed electric power capacity has increased
substantially in recent years. Electric energy is
N
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FIGURE 5. Production of electric energy
(Thousand kilowatt hours)
1 460
FRIGUTA (formerly FRIA).. 77,:372
Public system 24,143
Total I01 51.5
produced by the public syslem and b% the FRICUTA
milling ContpanN. The publi:_� system consists of the
network of the National Flectric Contpan% (SNE a;
well as of the smaller electric po%%er facilities
adntirtistered by regional communities and state
enterprises. PAectric en rg generated by the public
system rose front 24.1 million kilowatt -hours (k%%.-hr.l
in 1960 to 310.:3 million W.-hr. in 1971. Over the
same period, pruductioti of electric energy b
FRIGUTA increased by about 50"1 to I:i9., million
W.-hr. (Figure 5). Private consumption of electricity is
limited mostly to Conakr%. %%Mich constnnes about
755( of the nonindustrial electricil�, although it has
out% of the country's population.
"I'he power network in Conakry and hindia is over
20 years old, and the government plans to modernize
it xyith technical and financial assistance from a Swiss
first. The main power projects for the longer rum
include the linking up of the entire network and the
construction on the Konkoure river of a large dani and
hy,iroelectric power plant that would be associated
With an industrial complex for the production of
aluminum. "I'he latter wound onstitute a major step
toward the exploitation of the country's large
hydroelectric power potential, estimated at more than
60 billion kilowatts. and would permit a substantial
reduction in the cost of 1w.wer.
:3. Metals and minerals
Guinea's rich mineral resources consist primarily of
high- ytudity bauxite and iron ore deposits. Although
the contribution of the mining sector to Bros domestic
production and to government revenue has been
small, mineral exports were the most important source
of convertible foreign exchange and represented over
three fourths of the country's total exports its 1-17
'I'll(- importance of t1w mining sector is expected to
increase markedly in the mid- 1970's as additional
bauxite deposits are exploited.
a. Bauxite
Guinea has about 20ri of the world's known bauxite
deposits but ranks only about seventh in production.
H
1965
1464
1970
1471
129,247
130, N94
1 :111, 410
1311, 677
72,923
101,:305
249,828
:310,322
202.170
232,144
US, 238
-349,444
Its largest and richest deposits have yet to be tapped.
In N67, the American -owi ed Ilarye% Aluminum
Cotnpan% bevan nining it small deposit on Ile
'fanutra, near Conakry, to supple its alumina plant in
the Virgin Islands. The deposit, \%hick origittall\
contained abort i million toils. \%as depleted in 1972.
Its annual production exceeded 1 million tons during
the last 2 \ears of operation.
(:uiuea s major bauxite producer is the 1`1110 'IA
iniaing contpatn. forineny called IA RIA after it town
situated near the mine. The I111CUTA deposit. \\hich
contains at least 250 million tons of good tlualit% ore,
is mined by open pit tuethods: the aluntinuln oxide
content of current production is about Wi. All
bauxite produced by FRIGUTA is processed into
alumina near the thine before being shipped abroad
for processing into altiminutnt. The plant has a
capacitV of 700.000 tons of ah mina annually. and as
of 1971, annual production was running about
660,000 tons (Figure fit.
FIGURE 6. FRIGUTA alumina plant. Annual production of
alumina in 1971 was about 660,000 tons. The layout
of the plant was designed for an eventual expansion of
production to 2 million tons, and bauxite deposits could
easily justify such a rate for many years.
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In Februan 1973. FRIA became FRIGUTA, it
mixed company in which the governnu�nl has 4954
ownership. The remaining W(' is held by it
consortium of private companies which have invested
it total of $160 million. The consortium has o" ned and
operated the mining facilities, the alumina plant. a
railroad, and port facilities at Conakry. Even though
Olin- IMathiesen (U.S.) is the largest private partner,
Pec�hiney -Ugine of France has had a predominant role
in FRIGUTA's management and administration.
I'echinev was largely responsible for discovering the
deposits and developing the present connplex, and
PeChine�y S es and tec�hnitlues are used. Olin's
presence is exerted mainly in Paris, Mhere general
policy is reviewed. Other members of the consortium
are the British Almnintim Company, Alusuisse of
Switzerland. and Vereinigh Alumiu m- Werke, A.G.
of West Germany. Gover anent partnership will mean
an increase in Guinean participation in nnanagement.
Cuinea's most ambitious investment project
currently under way is the Boke bauxite project
located about 100 miles northwest of Conakry.
scheduled to become operational in 197:3 or 1971.
lieserves in the Boke region are estimated at more than
1.7 5 billion tons of high -grade ore. The project's
planned annual c�apacih will be S million to 10
million tons, which will be capable of expansion. As of
1971, revised investment and expansion estimates for
the total project antotinted to $2 -15 million. Boke will
not have facilities for converting bauxite to alumina.
Mining operations at Sangaredyi in the Boke region
will be run by the Guinea Bauxite Connpamy (ClIG).
owned jointly by the Guinean Government (19 and
by Ilalc�o dining Company 1 51 an international
consortium. CBG is responsible for developing the
mining installations and Sangitwd\i township.
including crushing, drying. and loading, etluiptnent.
and will provide locomotives and ore cars. with ILilc�o
providing the financing. The Giinea n Government.
through its ,viniatitotiommis agency, Boke I)evelop-
ment Office (OFAB), will finance and operate the
railroad. the port, and other related infrastnicture�
facilities. To finance these infrastmettirecosts. in I96S
the government obtained it loan of 86.1.5 million from
the World Bank to meet foreign exchange re�eli ire�
ments and a loan of $21 million from the ,'.S. Agency
for International 1)(welopment (AID) to cover local
cimenc% costs. Since then, the government has
obtained an additional $9 million loan from the
World Bank for an expansion of the original planned
capacity.
In November 1969, the U.S.S.H. agreed to
participate in the exploitation of a deposit of 70
million tons of logy -grade bauxite near Kindia \%bic�h
had been rejected b\ Western counpanies us
economically infeasible. Original plans call for mining
operations to begin in 1973, with production goals set
for 2.�i million tons annually. 'three- fourths the
output will beshipped to (I,�� U.S.S.H. to wpa\ the 592
million Soviet loan for the project and (o meet
Guineas obligations the U.S.S.B. under bilateral
trade agreements.
Guinea possesses other baii0e deposits farther
inland that are being investigated. In 1970, A Ills lasxe
of Switzerland and the 0 ineaun Goyerntnent formed a
Joint subsidiary. Somiga, to exploit the bauxite deposit
near Tongue, but Tongue's isolated location amt that
fact that the deposit is smaller and of inferior elualih
to those al Boke could preclude any serious attempts at
exploitation for more than it decade. Additional
deposits near Dabola. along the Conakn-Kankan
r.ilroad, are being studied be the Yugoslav
Gmcmi a�nt corporation. Envrgnirujvkt.
h. f run ore
Guinea's kno\\n deposits of iron ore are located jmt
east of Conakry_ amt in the areas of southeastern
Guinea near the \i ill ba amt Sonlounrtnclou
(Sinatidou) mountains. The deposits near Conakn
were mined until 196 In the Conukn Mimlig
Company ((:\1(:t, a cott.orlium of European
companies. Al present. no in:n ore is being mined in
Guinea because of markeling problems caused b\ the
shift iu world trade to sources of richer ores and
because of the shortage of foreign exchange to
purchase spare parts and eeluipnx�nt.
The \itnba :utd Soulomtnandill (Simandott
deposits offer lfte best potential for it successful iron
ore mining indusln. Re.enes are eslimated at more
than I billion tons of high -grade ore similar to that
being exploited on the Liberians side of the \imba
mountains by the international consortium. the
Liberian American- Swedish \1inera1s Compaus\
I LAMCO.
The Guinean Goyerntnent hits been seeking foreign
assistance for it mmmber of years in e\ploiling the iron
ore in the Mania amt Souloummmelou mounlains. In
negotiations livid in Februan 197:3 kith n�present-
atives of LAMCO. private firms from japan. Bclgitnn.
atnl Spain, and the ambassadors from Algeria. IAx�ria.
Nigeria. Yugoslavia. and Zaire. it was agn�eel that the
participants would establish a compam to exploit
Monts Nimba's ore; apparent1% the% also intend tit
form it similar company to develop Ihose at
Soulostmandou. The Guinean Government %%ill ,%%n
9
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:phi of each cotnpsut. If studies of these deposits
continue to show promise, ruining operation, could
begin by 1975 or 1976.
c. Uiutnuneb
Guinea has both industrial diamonds and gent
stones; prodhiction is mostly confined to the industrial
variety. Nlir ing is carried out largely in the forest area
near Kerouanc and near the IAwrian and Sierra Leone
borders by it government -owned diamond mining
enterprise and by numerous individnal miners.
Official exploitation was halted in 16677, but with the
technical assistance of it Belgian company and Soviet
experts, prodnc�tion was resumed in 1969. Production
was estimated at 3.8(X) carats in MR 4.50) in 1970,
and! .5.020 in 1971. Conakry has approached two U.S.
firms to assist i increasing diamond production.
4. Manufacturing and construction
Although the manufacturing sector ha expanded
since independence. its contribution to domestic
production. government revenue. and exports is still
small. At the end of 1971 there were -12 industrial
plants employing 9,M) people, or about 71 of the
registered wage earners. Many of tilt- inanufac�hiring
enterprises are located in Conakry because of the
availability of power and water facilities. Most of I.e
factories either are state owned or are joint ventnres
with private interests in which the� government is it
major shareholder. Output is geart A to the domestic
warket; ooh' a few plants are atilt- to export part of
their production. The majority of the manufac�';uring
enterprises process agric�nitural or forestry products.
Among the products mannfac�tured are cigarettes.
matches, soft drinks, beer. lumber and plywood,
textiles. footwear. canned vegetables. and canned
meat.
Most state owtwd manufacturing enterprises
operate at well below capacity, primarily because of
shortages of raw materials, of semifinished products,
and of spa re parts, and also because of poor
management. In certain case,, the limitation of the
domestic market is a restraining factor. Tilt-
underntilization of capacity has resulted in high unit
costs and has placed the firms in serious financial
difficulties, causing many of them to rely heavily on
bank credit to finance their operations. In 1970,
several enterprises, including the brick and tilt- plant,
the refrigeration plant, the furniture factory, the fruit
juice plant some divisions of tilt- plastics factory, and
the brewery, operated at less than 10% of planned
10
capacity. A striking exception is the cigarette factory,
which has been operating well above its pl :uuied
capacity.
The government in recent years has taken measures
to alleviate the technical and financial difficulties
facing some manufachiring enterprises. Priority oas
been given in the allocation of foreign exchauye
resources, to imports of raw materials and spare parts
for the factories. Soniv enterprises have been
reorganized, their management changed, and
technical and administrative deficiencies corrected.
On the other hand, the government has not solved the
problems of a truck assembly plant that ceased
production in 1966. Another enterprise that still faces
serions difficulties is the furniture factory at Conakry,
which has been unable to obtain timber from Guinee
Porestiere at it reasonable cost.
The government continues to give it high priority to
industrialization, and it num!er of new roar ufachir-
ing enterprise are expected to begin production in the
near future. Among public industrial projects that are
nearing completion are a wood panel factory, with it
projected atmual capacity of 15,M) cubic meters,
which is heing established with the assistance of it
Belgian firm; a soft drink complex with an annual
capacity of 15 million bottle,, being established with
assistance of the same Belgian firm; it brick and tile
factor%, withn annual capacity of more than 6 million
pieces, being set up with assistance from China; a
ceramic products plant, being established with
assistance from North Korea; and an oil extraction
plant, being established with assistance from an
Italian firm.
The construction and construction materials
industry is small. Much of the construction has been
done by foreign firms using foreign technicians,
foreign equipment and supplies, and foreign capital.
The domestically owned industry includes it company
that imports construction materials; brick and tile
factory; it tile factory; and a granite mining company.
These firms are wholly owned by the government or
by individnals in partnership with the government.
Output of the brick and tilt factory is expected to
exp and considerably upon completion of an extension
of the existing railroad to large new clay deposits.
However, all cement and steel, as well as much of the
lumber and tile used in construction, must he
imported.
The number of registered wage earners employed in
construction and public works nearly tripled from
1968 through 1971, increasing from 4,200 to 120)0.
This sharp increase primarily reflects the demand for
construction workers at Guineas new bauxite projects.
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5. Domestic trade
Guinea's modern commercial life was dominated by
the French until 1058, when the country became
independent and established a s%stern of state trading
monopolies to conduct its foreign trade. State stores
were estahlished throughout the country to distribute
imported goods, largely from Communist countries,
hurt these proved unsatisfactory because of poor
management and the generally poor quality of the
imported goods. Distribution of consumer goods was
returned to private merchants at the end of 1963, but
under strict government control. In March 19th;, a
presidential decree established a series of regional
committees to control the distribution of all
domestically produced and imported consumer goods.
Party officials hold the major offices on the
committees, with government officials holding
secondary posts. In a further move to tighten control
of the economy, in November 1968 all foreigners
engaged in trade and not otherwise engaged in a
productive undertaking were banned from conducting
business in Guinea or were given I year to opt for
Guinean citizenship. The result of these drastic
measures against the traditional and experienced
traders was a spectacular decline in the efficiency of
distribution of consumer goods and significant
shortages in many areas.
A large part of the domestic trade is in rural
markets, where pet[) traders rffer locally grown
foodstuffs and handicraft items for sale or harter.
Itinerant peddlers trade throughout the countryside,
often crossing national borders to exchange Guinan
farm produce for t(-- tiles and other small, manufac�
Lured consumer ite Modern commercial practices
introduced by the French during the colonial period
supplemented but. never fully supplant(-(] these
traditional trading practices.
Domestic production of consumer goods is generally
inadequate to meet total' national demand, and,
despite periodic loans from abroad, Guinea has not
been able to import sufficient qliantities to avoid
shortages.
C. Economic policy and development
1. Policy
a. Government finance
Following independence, Guinea embarked on
comprehensive reorganization of economic and social
activities, bringing virtually all important sectors of
the e�eononn other than mining and agriculture under
direct government control. 'I'll(- public sector thereby
came to occupy a predominant position in the
eountry' econonue activities. The public sector as
defined in Guinea includes the central government, 29
administrative regio its, 209 administrative districts
(arrondissements), various public agencies, and about
70 state enterprises.
Public sector financial transactions are recorded in
either the ordinary budget or the public investment
budget. The ordinary budget covers current
transactions and some minor investment transactions.
I'll(- Ministry of Finance and Banking prcpart�s and
executes the budget, with assistance from the Minister
of Plans, and the National Asseutbly approves the
finwic�ial act that governs annual ordinary budget
operations. Budgets of tit(- autonomous public
agencies are included [)(-calls(- of their continued
dependence on central government contributions, but
the administrative regions and districts hay(-
independent budgets that are approved by presiden-
tial decree. The public illyestnn�nt budget is derived
from Guinea's economic development plan (sec below,
under Development Planning).
In the first half of the 1960's, the ordinary budget
was generally in surplus, since revenue expanded
steadily and expenditures were strictly controlled. In
FY66, however, the surplus disappeared, mainly
[)(-cause of sharply increased expenditures for wages
and salaries following an upward adjustment in wag(-
scales and increased recruitment (Figure 7). Deficits in
tit(- subsequent :3 gars resulte,l primarily front a
marked decline in import duties that was not balanced
by cutbacks in spending. Domestic production had
eliminated the� need to import certain high- tariff items
such as cigarettes. matc'he's, and textiles. To finance
deficits, the government often resorted to using
Central Bank credit. especially in FY68.
During F1 i0 the govern ent introduced it set of
stabilization measures that improved the financial
situation. The principal measure was in import
surcharge of at least IMKi of the existing customs duty
rats; this was equivalent, on the average. to 42.3`i of
the value of imports in FY69. Additional ne�w excise
duties were levied on locally manufactured products,
such as cigarettes, textiles, beer, sheet metal, plastic
goods, and soft drinks. Import duties and import
surcharges on alcoholic beverages, flour, and inorganic
chemical products were also increased. These
measures, together with the favorable impact of an
expansion in economic activity and imports as well as
an effective drive to collect tax arrears, led to it 4594
incrcas(- in ordinary budget revenue and it balanced
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FIGURE 7. Ordinary budget
(Millions of U.S. dollars)
ordinary budget in F1'70. No figures on actual
performance in FY71 are ayailuhle: preliminary
information suggests that anothe balanced ordinary
budget ryas achieved.
Recent information on the budgetary performance
of mlininistrative regions -,i districts is not available.
b. Money and banking
In March 1960, Guinea withdrew from the French
oriented Central Bunk of West African Stales and
c'reuted its own currency (Guinea franc) and banking
system. A legal (;change rate of 247 Guinea francs
:F) to the U.S. dollar was IlWintain(cl until January
1972, when the rat( was changed to GF227 per dollar.
In October 1972, the Guinea franc was rep) wed by it
new currency unit, the syli, valued at the eyuiyalen't of
O Guinea francs, or 22.7 sylis per dollar. The currency
bus no gold hacking and is nonconyertible.
The present banking system consists of the Central
Bank of the Republic of Guinea (11C11C), three
gove rnment -owned specialized hanks, and it I('ast two
nonbanking financial institutions.
In addition to issuing currency, the BCRC is
responsible for managing the� country's foreign
exchange reserves and administering exchange
controls. 'I'll( BCRG may provide short -term credit to
the government for the ordinary budget, but such
credit must not exceed IW, of the previous year's
12
ordinary budget revenue and may not he (xtende(I for
more than 240 days. The Central Bunk is permitted.
ho%%vver, to give unlimited medium- and long; -term
credit to the government for financing investment
tinder d(yelopim it plans. 'I'll(- KCRG serves us fiscal
agent for the government and acts as the official
agency for contracting foreign loans on behalf of the
government and shat( enterprises. The BCR(: also
finances extrahudgetary outlays, such us the pa%ment
of arrears owed to Boyer anent suppliers and, since
1965, pension payments to civilian and military
veterans of the preindependence administration.
The three specialized hanks performing commercial
banking activities in Guinea are the 'National Credit
Bunk for Commerce. Industry, and I lousing (CN the
G ninean Bunk of Foreign Commerce (BC(:I and the
'National Kink for Agricultural Development (B 'NI)A
Although these hanks have their o%%n statutes and
maintain sepamnte accounts. they are closely controlled
by the Central Bunk. which, in turn, is u..J(-r the
supervision of the `1inistry of Finance and Bunking.
The CN is the largest specialized hunk, with total
assets at the end of IKI amounting to more than 60ri
of the $312 million combined assets of the three hunks.
It also holds the hulk of the economy's deposits. The
BCCE,, is the second largest hunk. with sliglnth less
thus 30fi of the combined assets of the specialized
hanks. It was established by the government to
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110062 -5
11
FY67
F1'68
F1'69
F1'70
F1'71�
F1'72*
Revenues:
'faxes on income and profits....
13.8
11.5
1.1.9
12.7
18.0
111.7
21 1
'faxes on international trade....
38.8
141.5
16.6
17.11
31 .0
44.11
5:3.8
Taxes on domestic production
and consumption............
2.2
2.2
2.2
1.:3
4.3
8.1
10.5
Registration fees and stamp
duties
I.8
1.2
0.8
1 .11
2.9
:3.0
ai.1
Other revenues
19.0
23.7
15.5
21.S
22.9
141.0
22.1
Total revenues
65.6
58.2
50.1
5.1.8
79.2
1 14.4
112.7
Expenditures:
Wages and salaries............
311.3
41.7
45. 1
-1-1.7
51.1
52.7
116.2
\laterials and maintenance.....
12.13
1.1.2
16. 1
14.5
21.8
'28.3
3:3.'2
Equipment
4.4
3.13
�1.1)
:3.1
3.0
3.0
2.11
Contributions and subsidies.....
2.13
0.5
0.5
0.5
0.6
1.5
1 7
Public debt service............
9.8
0.0
5.3
7.2
0.0
2.0
2.11
Other
0.0
1.0
0.7
0,0
2.6
6.9
11.7
TotaE expenditures
65. ti
61.0
71.7
69.9
79.2
94.4
112.7
Surplus or deficit
0.0
2.8
21 .5
15.1
/nsig
0.0
0.0
NOTE Because of rounding, components may not
add to the
totals
shown.
*Budget estimates.
ordinary budget in F1'70. No figures on actual
performance in FY71 are ayailuhle: preliminary
information suggests that anothe balanced ordinary
budget ryas achieved.
Recent information on the budgetary performance
of mlininistrative regions -,i districts is not available.
b. Money and banking
In March 1960, Guinea withdrew from the French
oriented Central Bunk of West African Stales and
c'reuted its own currency (Guinea franc) and banking
system. A legal (;change rate of 247 Guinea francs
:F) to the U.S. dollar was IlWintain(cl until January
1972, when the rat( was changed to GF227 per dollar.
In October 1972, the Guinea franc was rep) wed by it
new currency unit, the syli, valued at the eyuiyalen't of
O Guinea francs, or 22.7 sylis per dollar. The currency
bus no gold hacking and is nonconyertible.
The present banking system consists of the Central
Bank of the Republic of Guinea (11C11C), three
gove rnment -owned specialized hanks, and it I('ast two
nonbanking financial institutions.
In addition to issuing currency, the BCRC is
responsible for managing the� country's foreign
exchange reserves and administering exchange
controls. 'I'll( BCRG may provide short -term credit to
the government for the ordinary budget, but such
credit must not exceed IW, of the previous year's
12
ordinary budget revenue and may not he (xtende(I for
more than 240 days. The Central Bunk is permitted.
ho%%vver, to give unlimited medium- and long; -term
credit to the government for financing investment
tinder d(yelopim it plans. 'I'll(- KCRG serves us fiscal
agent for the government and acts as the official
agency for contracting foreign loans on behalf of the
government and shat( enterprises. The BCR(: also
finances extrahudgetary outlays, such us the pa%ment
of arrears owed to Boyer anent suppliers and, since
1965, pension payments to civilian and military
veterans of the preindependence administration.
The three specialized hanks performing commercial
banking activities in Guinea are the 'National Credit
Bunk for Commerce. Industry, and I lousing (CN the
G ninean Bunk of Foreign Commerce (BC(:I and the
'National Kink for Agricultural Development (B 'NI)A
Although these hanks have their o%%n statutes and
maintain sepamnte accounts. they are closely controlled
by the Central Bunk. which, in turn, is u..J(-r the
supervision of the `1inistry of Finance and Bunking.
The CN is the largest specialized hunk, with total
assets at the end of IKI amounting to more than 60ri
of the $312 million combined assets of the three hunks.
It also holds the hulk of the economy's deposits. The
BCCE,, is the second largest hunk. with sliglnth less
thus 30fi of the combined assets of the specialized
hanks. It was established by the government to
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handle, on behalf of the (:entral Batik. all foreign
paNnlents and transfers c,l fumfs. The B \IM as
created for the purpose of providing long -terns credit
to the agric�u{turtl ctor. The financial res(cnrces of
the BVIM have n�nwined small, reflecting the mcagcr
deposits of farners.
lit addition to the throe spec::lized hanks, other
financial institution. in (:him a inelucic the Postal
Checking System ((:(:I') and the Natiouul Sayings
Bank i NE both of which are government owned
and operated. The (:(:P accepts dertraud deposits, the
proc�ee(Is of cvhiclt are Iransfered to tbe'Treasory. The
(:(:I' is used b% the Treasury, private indi�.idelals. and
speci;!ize(I banks for making paNmviasatid transl',�rs,
mainly lit the interior. The F ac�crpts private sec for
saying deposits, of which the larger part is Mooted m r
to the Treasm\ and the remainder is deposited ccith
tit(- (ventral Bank.
The government is c�ontctnplahng tie establishnt�nl
of regional hanks to service the needs of specific
wgions that will be opening up to new economic
activih. The first regional bank is expecwd to open in
the Boke bauxite raining region in 1971). and it similar
bank is expectcd to be established at \ierekore.
Dc velopmenl
Guinean authorities have placed considerable
emphasis on (1eyelopnn�nt pl:rnnint;. In 190 a
\linistrx of I'lanniug was established to elaborate
long -Iern soc�ia) and econonicdeyeloprtu�nt progr;a:us
and to c�oor(linate public� sector actiyilics. "The
ministrx. which is n()%% called the Ministry of Plaos
miller Ihc� need established "Dmnain" of the I'ritne
Minister, prepares the critmenl's iit\estnterrl
prof; rams and controls their execution b% the other
t;oye rtimcnt departments, regional and lot -it I
governments. and state enterprises.
Guineas first attempt at de\chym�nt planning Ica,.
the 'Three fear flan fur public sector iit%est met l
c�oyering the periocl jtl% 1960 through j;ntc 196:3).
I'lanned inye�lownt cxpen(lilun�s totaled $ISII nulfton.
of which 5,' \\as to be de%oled to the mode- mizatiun
and expansion of the country's lransIxrtation a
other infrasIrttc�lure facilities: I io nanufac�t(rring.
inining, power. mid handicrafts: 13'( to rural
development: and the� balanc�c to social and other
services. ;\ltbough naliooal aecvunts series are not
available. indications are that during the plan period
the rate of economic gro%%th was modest compared
with t1w sizable imc4ment made. large part of the
total pubh�� investment expenditure %\its financed by
foreign loaos. ntainl\ from Ea ,t Fiir(ye and the
I'eople's Republic of China, Fu! an important anunutl
was also covered b% (:c�utral Bank credit.
In 196.1 the g wernn ent undertook a mo rc
ambitious deyclopmenl program, the Seycn Year Plan
for the period MG 1 through 1971, 'Total imestnn�nt
expenditure-, were planned at 85.31 million. inc�I(tding
certain investrvu�nts carried over from the 'Three fear
Ilan. .\s in the case of the preyir,us plan. the Seycn
Year flan consisted essentially of it list of public- sector
projects but dial nut establish growth targets for tLe
cc�onuny. The fundancntal objectives were to further
improve and cxpa nd infrastntctnral facilities. to
diversify :)notnic activity, and to raise the Icy el of
:ct;ricu:cura1, nineral. and incicstria1 pm(lnc�tion with it
�,iew to increasing of olucslic� incona� an(I inproying
Gninca's fort�fgn tr-ulc balance. 'These objectives were
to be nct through it futthcr extension of the public
sector. Of total planned expenditures. about -16((' %\as
allocated to transportation aloof other infrastmeture
facilities, 15', to mining and nman(tfac�turing. I?` to
puwcr and water res,,llrc�c cleyelupnu�nt. 9'( ti)
agricnIture and related activities. and the rc�nainder to
",ci :d and other seryic�es. The goyernntcnds intention
as to unc�crtake projects only as financing becatne
aiv;dlablc mid to refrain froth haying rec�omse to
domestic hank credit.
h:xec�ution of the Seven Year Han was not as rapid as
expect-(I. In the first 2 years of the plan periocl,
investment o,tl:a\s were� far below the planned rate.
Subscalucntl\, the rate of plan exec�ntion showed
considerable improvenct1t, although ilh marked
f{nc�lnations. I or tit(- plan period as a hole. public
investment expenditure totaled 8355 million, or abort
67'r of the original target. ()illy in nillint, and
rnannfacc�lnring slid actual investments eweed planned
levels, probabl\ because of the cmillnencerncnt of the
large Boke bauxite project.
The goycrunu nt has begun work on another
development plan, which will coyer a car periocl.
Ilighcr priorih wiII be placed on agriculture. \%ith
emphasis to be placed on ac�hicying self- su. in
food crops, expanding the output of export crops, and
increasing the production of industrial crops for local
processing industries.
:3. Manpower
The labor force parlic�ipation rate is high oycr 80
of the working age population. 'I'll(- goyemment has
no precise definition of "labor forcc.� using the tern
to refer generally to all economically active persons of
l3)
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FIGURE S. Registered wage earners
Total 98,650 3(K),995 109,470 124,249 1:36,1(KI
*Excluding military personnel and police.
working age usual!% 15 to .3) %ears %%ith the
exception of full -tine� shulerts and housewives
erigagec) exc�lusivvI% in domestic duties. The Guinean
labor force c�ousists of t%%o broad categories �a large
uonnuueNAed iahor force engaged in traditional
agricultural and handicraft pursuits in some 1,(NN)
villages. ar it small group entployed in modern
activities in it fey% urban communities. Rural workers
occasionall% are engaged in paid activities. About 71
of the I A million member labor force bas been
employed for wages and salaries on a regular
(registered) basis in mcent %ears (Figure 8).
Guineas labor force is not effec�ti%el% organized.
and most laborers lack economic incentives and skills.
III conceived labor legislation, pour working
conditions, and government control of :uinea's trade
union serve to reduce labor's productivity in lit(
modern sector, while politically inspired governmental
controls and artificially low prices reduce the output of
the tr agricultural economy. Because of
Guinea's low level of industrial deyelopnu�nl. gro%%ing
numbers of worker in both lit( modern and
traditional ec�onontic sectors are faced with the
constant thi of unentployment mid underentploN-
menl.
There appear to be nu goyeninu�ntal reslraiuls
against moving fruin one area, occupation, or
enterprise to auotber. lit fact, the gmernment has
encouraged movement of urban imemplo%ed to rural
areas. l'opulatient movements its it whole, however,
have been impeded b% the lack of adequate
transportation and c�oinmlmic�ations facilities, the
absence of industrial employment opportunities, and
the strong personal lies to the fattnly ;1nd local
conununily.
D. International economic relations
1. Foreign trade
Much of Guinea's evollotn% consists of subsistence
agriculhtrc, ltile llie remainder of the economy is
l:ert;e l% oriented toward foreign trade�.: \II inachinery
Mid equiptnem. most of the r::u materials required bN
manufacturing industries, and about one -third of all
c�onsunu�r goods are inillorted. I�:xlx)rt products, such
cis bauxite.� and agricultural commodities, offer lit(-
printarc me for stimul ating the country's vemiontic�
development. Moreover. taxes cn inlernationcil trade
ac�couut for nearly balf of government revenues.
For inam years Guinea's foreign trade was
characterized by it stagnation of, exports. A general
increase in tttineral e xports \%as largel\ offset by it
decline in agrictilti mil exports resulting fron the
persi%tvilec� of plant diseases. transportation and
marketing difficulties. and the smuggling of it
significant share of export crops to neighboring
countries. Imports were maintained at an artificially
low level through severe restrictions until F1(is.
'Thereafter, imports bare been allowed to increase as
lit(- government has altenipted to satisfy in part the
demand for basic eonstimer goods and to oyerc�onu�
shortages of materials required by the productive
sector. As it result� the trade deficit has grown
signific�cultly, reaching 829.S milliott in F1 7 1 (Figure
9)
Alumina accounted for over iOrf* of' total exports in
FY7I (Figure 10). Bauxite, lit(- only unprocessed
mineral e xporte d except for it few dianunds, is likely
to overtake alumina as an item of export when the
Boke facility becomes fully operational. Pineapples
were the major agricultural export crop in 1.17 I.
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1967
1gli+i
1969
19711
1971
Government*
2M,6(K)
26,095
29,7241
29,544
311,4110
State enterprises and private sector............
75,050
74,9(x
80.750
94,7401
105,6(x1
Agriculture and fishing
29.:4K)
29,:x0;
30,100
.30,500
31,50(1
Mining
3,4011
3,400
3.100
8,500
11,(KKi
M anufacturing
5,6(K)
5,9(0)
7,700
8,6%)
9,0(KI
Construction and public works
4,500
4.200
5,9(0
8,200
12,(K10
Transportation
6,750
6,50(1
6,750
7,750
8,000
Water and electricity
4,5W
4,500
5,100
6,550
7,000
Banking, insurance, and trade
17,64K)
17.800
19,200
20,300
22,2(KI
Hotels and domestic srvices
:3,N10
3,501)
3, 1100
4,2.',0
4,9(K)
Total 98,650 3(K),995 109,470 124,249 1:36,1(KI
*Excluding military personnel and police.
working age usual!% 15 to .3) %ears %%ith the
exception of full -tine� shulerts and housewives
erigagec) exc�lusivvI% in domestic duties. The Guinean
labor force c�ousists of t%%o broad categories �a large
uonnuueNAed iahor force engaged in traditional
agricultural and handicraft pursuits in some 1,(NN)
villages. ar it small group entployed in modern
activities in it fey% urban communities. Rural workers
occasionall% are engaged in paid activities. About 71
of the I A million member labor force bas been
employed for wages and salaries on a regular
(registered) basis in mcent %ears (Figure 8).
Guineas labor force is not effec�ti%el% organized.
and most laborers lack economic incentives and skills.
III conceived labor legislation, pour working
conditions, and government control of :uinea's trade
union serve to reduce labor's productivity in lit(
modern sector, while politically inspired governmental
controls and artificially low prices reduce the output of
the tr agricultural economy. Because of
Guinea's low level of industrial deyelopnu�nl. gro%%ing
numbers of worker in both lit( modern and
traditional ec�onontic sectors are faced with the
constant thi of unentployment mid underentploN-
menl.
There appear to be nu goyeninu�ntal reslraiuls
against moving fruin one area, occupation, or
enterprise to auotber. lit fact, the gmernment has
encouraged movement of urban imemplo%ed to rural
areas. l'opulatient movements its it whole, however,
have been impeded b% the lack of adequate
transportation and c�oinmlmic�ations facilities, the
absence of industrial employment opportunities, and
the strong personal lies to the fattnly ;1nd local
conununily.
D. International economic relations
1. Foreign trade
Much of Guinea's evollotn% consists of subsistence
agriculhtrc, ltile llie remainder of the economy is
l:ert;e l% oriented toward foreign trade�.: \II inachinery
Mid equiptnem. most of the r::u materials required bN
manufacturing industries, and about one -third of all
c�onsunu�r goods are inillorted. I�:xlx)rt products, such
cis bauxite.� and agricultural commodities, offer lit(-
printarc me for stimul ating the country's vemiontic�
development. Moreover. taxes cn inlernationcil trade
ac�couut for nearly balf of government revenues.
For inam years Guinea's foreign trade was
characterized by it stagnation of, exports. A general
increase in tttineral e xports \%as largel\ offset by it
decline in agrictilti mil exports resulting fron the
persi%tvilec� of plant diseases. transportation and
marketing difficulties. and the smuggling of it
significant share of export crops to neighboring
countries. Imports were maintained at an artificially
low level through severe restrictions until F1(is.
'Thereafter, imports bare been allowed to increase as
lit(- government has altenipted to satisfy in part the
demand for basic eonstimer goods and to oyerc�onu�
shortages of materials required by the productive
sector. As it result� the trade deficit has grown
signific�cultly, reaching 829.S milliott in F1 7 1 (Figure
9)
Alumina accounted for over iOrf* of' total exports in
FY7I (Figure 10). Bauxite, lit(- only unprocessed
mineral e xporte d except for it few dianunds, is likely
to overtake alumina as an item of export when the
Boke facility becomes fully operational. Pineapples
were the major agricultural export crop in 1.17 I.
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110062 -5

AM MU e(tI L osom
NJ
so
70
IMPORTS
(c.4
60
s0
EXPOPTS
Plan imports t M e
2� l e
FRIAeimponts IV/,
o
F
acco t bererages,
t
tobacco 6 textiles
e
Chv+ieal nO
e
Transport equipment
e
Fuels
Ike
Construction materials. live
machinery 6 metals Y
FY66 FY67 FY68 FY59 FY70 FY71
e
FYN
37e nn
other
FIGURE 9. Foreign trade
060 imroe) ($80 million)
Now iROAA
Although bananas, coffee. and palm kernels have lost
FIGURE 11. Composition of imports
tnuch of their earlier prominence as exports, they still
offer a good potential for future export gro%%th.
(Figure 11). The program includes all imports other
Peanuts and iron ore, once important. are no longer
than those for FRIGUTA and those under develop
exported�
ment plans. Adiustme�nts made during am year reflect
The general import program sets priorities each year
the availability of foreign exchange. The sharp
according to the country's basic needs for consumer
increase in the portion of imports accounted for by
goods. spare parts, fertilizers, and transport equiptent
transport equipment and fuels behyeen F)'66 and
FIGURE 10. Composition of exports
(Millions of U.S. dollars)
FY66 FY67
F)'68 FY69 FY70 FY71
Agricultural commodities..... 16.1 16.5
18.4 20.6 19.1 12.1
Bananas 4.2 4.1
3.0 3.9 2.4 0.8
Coffee 5.3 3.0
6.1 5.6 5.6 2.8
Palm kernels 2.8 2.8
2.8 3.8 2.7 2.7
Pineapples 2.7 2.9
3.3 4.0 4.9 5.4
Peanuts 0.4 1.9
0.1 0.1 0.0 0.0
Other 0.8 1.9
3.0 3.1 :3.5 0.4
Minerals 35.7 34.3
34.5 36.2 37.1 38.1
Bauxite 0.8 0.0
0.5 1.5 1.6 1.8
Alumina 32.9 33.2
33.7 34.0 :35.3 :36.3
Iron ore 1.8 0.5
0.0 0.0 0.0 0.0
Diamonds 0.:3 0.4
0.3 0.0 0.1 0.0
Other Insig 0.1
Insig 0.7 0.1 0.0
Other 0.1 0.1
0.0 0.0 0.0 0.0
Total 51.9 50.8
52.9 56.9 56.2 50.2
NOTE Because of rounding, components may not add to the totals shown.
15
0
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1.17 1 reflects the governinent efforts to solve some of
the problems in the productive sector. Basic consuter
goods, such as food, clothing, and textiles. nornall%
command al least it fourth of total import
expenditures. Imports by I'RIGUTA reflect its need for
spare ports and primary products.
A large sh are of Guineas foreign trade is conducted
within the framework of bilateral trade-mid-payments
agreenivnts. In I -A I, IOii of Guinea's imports
originated in bilateral agre�ent�nt countries, which in
turn received about 1 i of 0 inea's exports. 0iiIWit
maintains operative agreenents with 1:3 countries and
inoperative agreenic�nts with eight others. Guinea also
has a clearing arrungenient with it private firm based
in Switzerland. In recent ye ::rs. while trying to reduce
the scope of trade conducted under such agreviiients.
the government has attenpte�d to limit imports from
sonic of these countries. I lowever, Guinea continues to
import more goods than it cyan export tinder bilateral
arrangeinents.
Imports and exports are allocated gcographic�ally at
tle beginning of each fiscal year tinder their respcc�tive
programs. 'I "he source of inports depends mostly on
the availability of foreign exchange or of credit tinder
bilateral payments agreenients. In F)'71 the U.S.S.R.
and Czechoslovakia were Gi inca's inain custoniers
among bilateral agreentent countries, whereas its main
suppliers were the Peoples Republic of China and the
U. S. S. R. Exports to countries of the convertible
currency area were nainly to Nor\yay. the
FIGURE 12. Balance of payments
(Millions of U.S. dollars)
Netherlands, ;aid Spain. \%here;:% imports originated
primarily front France, S\titzerlawl, mid Belgium.
2. Balance of payment,
Guineas f,alurnce of payments has been under great
pressure almost conliuuousl\ since independence.
F ill(. depletion of foreign reserves it the earls
I960's, imports were sharply curtailed. Service
pa%ineuts continued to be substantial. \%bile exports
stagnated, and the current accotutt continued to sho%%
large deficits. Guinea received large amounts of
d:�yeloprtent aid and obtained temporr\ relief from
nouttling debt service pa%nents through resche(luling
ugreene�nts.
During the 1.166 period. except fen 1.1 the
balance of pad nents rv- .65tered sizable (yerall deficits.
which \yen� financed priuoril\ by increasing its
indebtedness tinder bilateral pa\ tu�nts atgreenients
gure� 12). I)espite some re�dtictiot in the deficit on
services account, coupled \%itli it considerable increase
in deyelopuent aid and the prf,\ ision of special
cframng rights (SDIi), the balance of Iuneuls
registered it deficit of S5., million in FY70 and S A
tnilliou in F1'; I. By the veld of 197 I. Gtninea had
utilized practically all of its SDR allocations� and its
holdings of foreign exchattnge arli aimed to oil\ 5:3.2
nnillion. or the eyoiyalelnt of about 2 \treks' imports.
compared \\ilh 87.9 million a year earlier.
FY66 FY67 F1'61 F1'69 1�'1'11 FY
Current account 2S.6 2:3. 1 17.3 26. 7 52 .1 3fi.s
Exports f. o. b.)
Imports e. i. f.)
Trade balance*
Net services
Capital account
52.0 00. it 52 9 19. 1 i0 s Is. I
till 9 53.3 5 1 .5 5fi S S9. i (is .5
S.9 2.1 I.6 7.1 -3s.s -21).?
19.7 21.0 15.7 19.2 -13.11 16.7
27.1 17.7 1 ll.5 311,3 10.1 1 -1 A;
Net private capital
I. I 0.11 I. I 1. S
nr 17.7 27.7
2. s
112.7
1.11
IS.6
Net official capital
0.0 0.0 0.6 In.s
0.1
0.0
Subscriptions to international organizations
:3.2
Allocation of special drawing rights.........
1
17.7
Errors and ontissi: ns
3. 1 5.5 I .5 2.1
Surplus or deficit
1.5 1 1 .2 1 1 .2 5. s
5.
-7. 1
NOTE- Because of rounding, components may not add to
the totals shown.
Not pertinent.
*Both exports and imports are based on customs returns.
adjusted for coverage and timing: hence, they differ from
other trade
figures.
16
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110062 -5

3. Foreign aid
Guinea has received substantial foreign assistarce,
both as loans and grants. The soortr of aid has shifted
from F ranee, the principal donor prior to inclepen-
denee, to the 1'.S.S.11. alnl the United Slates.
Substantial assistance has also been received from East
Etiropea n countries. (China, and several other
countries.
By Decetnher 1971 the Comommisl countries bad
extended over 5300 million in economic credits anti
grants. As the major creditor, the l'.S.S.11. extended it
total of some $200 million for constructimi of it sports
stadium in Conakry, it hotel, it jet runway at Conakry.
and assistance in the constroc�tion and stuffing of the
G anal Abdel Nasser Polytechnic Institute in Conakry.
Soviet industrial projects itic�lutle the maniou food
processing plant and the Nzerekor(� Imidwr mill. The
latest Soviet aid project involves the development of
Kiiidia's bauxite resources. China extended ,hoot $till
million for the coustruc�tion of i t cigarette and match
factory, it vegetable oil processing plant at I)uhola. it
tea plantation and processing plant, it I.irge
auditorium, and it hydroelectric installation :on(1 has
provided budget support and commudih crc�clits. The
remaining Coniniunist aid has come from East Etirope
and has consisted primarily of a monherof small -scale
projects. Yugoslavia has proyide�d financial assistants
for the construction of the brick and furniture factories
and has extended :r loan for the construction of it dart
and hydroelectric- powerplant. While most of the
8ioaaary
Couommist- assisted projects have been completed,
the success of the pngrimis has been hampered b
!,00r planning, Goi Ivan rediape, and inefficient local
ma11ugetnerl.
The l!nitcd States has been it major source of
Western aid to Guinea. 11% 1971, its total :ii(l had
reachcel $IIS trillion, of which .1 million was in
to :ctts and $46 trillion in grants. The ".L. .180 program
has supplied rice, wheat flour, edible oils, and cotton
to Guinea for it number of years and has been of major
import.mee it gvnerating the local currency for it $21
million AID local -costs louts for the Boke project.
Other l'.S. aid consisted of transport e(luipnu�rt, fuels,
chenlic�als, and industrial and miring prodilets. l'.S.
tec�hnicli assistance bus beeu directed toward the
development of agric�ulhnr, e(hwation 1 11 1 vocational
training, transport and communications, ar(I lento
se ry ices.
West Cermaiiy has been another major sourer of
%Yeslero assistance, with grants and loans ollottntilig
to at least $35 million by the end of 1970. boars have
beets used to finance imports of transport e(tuipment
and to meet the costs of cont Inuni ations facilities.
West Cermany also has provided aid to the :trtny for
the t-wistruc�tion of roads and several small in(Instrial
plants. illelli ling it tannery. All West German aid
ended in janrary 1971. when Guinea broke relations
with Bonn. Other countries that have assisted Guinea
include Belgium, Glimm. the Netherlands, Italy, and
the� l'nited Kingdom.
Anon F,v1AT10N Fn FNC'tl
BURG........ Banque C'cnlralc de In Republique de Central Bank of the Republic of Guinea
FOR OFFICIAL USE ONLY
IN
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110062 -5
Guince
BGCE...
Banque Ge.incenne du Commercc Ex-
Guinean Bunk of Foreign Comtnerev
terieur
BN DA........
Banque Nationale de Dereloppement
National Bank of Agricultural Devel-
Agricole
opment
CNE.........
Caisse Nationale d'E.varyne..........
National Savings Bank
CBG..........
Compagnie des Bauxites di Cuincc....
Guinea Bauxite Company
CC'P..........
C'omple Courant Postal
Postal Checking System
CMC.........
Compagnie Aliniere de Conakry.......
Conakry :dining Company
CN...........
Credit National
National Credit Bank
FRIA.........
Fria Compagnic lnternationalt pour In
Fria International Alumina Production
Production de l'Alumine
Company
OFAB........
Office d'Amcnagement do Bnkc........
Boke Development Office
ONAI1........
Ofjicc National d'llydrocarbures......
National Petroleum Office
SNB..........
Societe Nationale d'Electricite.........
National Electric Company
FOR OFFICIAL USE ONLY
IN
APPROVED FOR RELEASE: 2009/06/16: CIA- RDP01- 00707R000200110062 -5