-A A +A

JPRS ID: 8917 SUB-SAHARAN AFRICA REPORT

Document Type: 
CREST
Collection: 
JPRS
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP82-00850R000200050019-4
Release Decision: 
RIF
Original Classification: 
U
Document Page Count: 
50
Document Creation Date: 
November 1, 2016
Sequence Number: 
19
Case Number: 
Content Type: 
REPORTS
File: 
AttachmentSize
PDF icon CIA-RDP82-00850R000200050019-4.pdf2.44 MB
Body: 
APPROVE~ FOR RELEASE= 2007/02/08= CIA-R~P82-OOSSOR0002000500'19-4 ~ i980 Nu. i, 1 OF l APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY JPRS L18917 12 February 1980 ~ub-Scoharan A _f.riea Re o~t ~ FOUO No. 66~ FB~$ FOREIGN BROADCAST INFORMATION SERVICc FOR O~FICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 NOTE JPRS publication;, contain information primarily from foreign new~papers, periodicals and books, but also from news agency transmissions and broadcasts. Niaterials from foreign-language ~ sources are translated; those from English-language sources _ are transcribed or reprinted, with the original phrasing and ~ other characteristics retained. Headlines, editorial reports, and material enclosed in brackets are supplied by JPRS. Processing indicators such as [Text] or [Excerpt] in the first line of each item, or following the last line of a b::ief, indicate how the original information was processed. Where no processing indicator is given, the infor- ` mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words ~r names preceded by a ques- tion mark and enclosed in parentheses were not clear in the - original but have been supplied as appropriate in context. . - - Other unattributed parenthetical notes within the body of an item originate with the source. Times within items are as given by source. ' The contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. _ For further information on report conrent ~ cali (703) 351-3165. COPYRIGHT LAWS AND REGL'LATIONS GOVERNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE OD1T.Y. APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 ~ - r~ FOR OFFICIAL USE ONLY ' JPRS L/8917 , 12 February 1980 - - SUB-SAIIARAN AFRICA REPORT FOUO No. 666 CONTENTS PAGE INTER-AFRICAN AFFAIRS Briefs Ugandan Refugees in Zaire 1 ANGOLA Speculation on Carreira's Departure, New Policies (Francois Soudan; JEUNE AFRIQUE, 23 Jan 80) 2 ~ Briefs Alleged U.S. Pro-Unita Activity 4 Census Plans q Radio Cadres Training 4 CAMEROON New Port Facilities of Douala-Bonaberi Described - (MARCHES TROPICAUX ET MEDITERRANEES, 7 Dec 79).......... 5 Pay Scale kaised From 6 to 15 Percent (MARCHES TROPICAUX ET MEDITERRANEENS, 7 Dec 79)......... 9 Briefs ManiocPlant at Douala 10 ELF-AQUITAINE Oil Agreement 10 Dam Inaugurated at Mokol~ 10 ETHIOPIA . UK Paper Carries First-Hand Report of Soviet Setbacks j.n - Eritrea (Paul Kelemen, Michael McColgan; THE GUARDIAN, 24 Jan 80) 12 - a - [III - NE & A- 120 FOUO] FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 I ~F CONTENTS (Continued) Page GABON. ~ Briefs Third Five-Year Plan 15 - GHANA Briefs Agricultural Equipment Maintenance 16 Boats Purchased 16 Timber Exports Up 16 DPRK Delegation 16 _ GUINEA Briefs Private Diamond Prospecting 17 State-Church Relations 17 Probable Five-Year Plan 17 GtiINEA-BISSAU Briefs Dutch ,~ood Assistance lg i~1ADA~A S CAR - Overtures to Foreign Investors Made, Projects Considered (.~cques Latremolier; MARCHES TROPICAUX ET MEDITERRANEENS, 14 Dec: 79) .........................................o.... 19 ' MALI _ FRG Reiterates Willingness To Provide Assistance (MARCHES TROPICAUX ET PiEDITERRANEENS, 21 Dec 79)........ 30 _ ' Briefs Five-Year Plan 31 ~ Tourism Development Assistance 31 - SEYCH~LLES � Dispute.With France Mushrooms (San Fie; AFRIQUE-ASIE, 7 Jan 80) 32 -b- , J APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 CONTENTS (Continued) Page TOGO Briefs Thi~d Five-Year Plan 35 ~ Japanese Donation 35 UGA;~IDA Briefs Cooperation With Denmark 36 _ Aid From Netherlands 36 - ZAIuE France Looks to Zaire's Future (Christian d'Epenoux; L'EyPRESS, 29 Dec 79) 37 , Financiai Stabilization Measures (MARCHES TROPICAUX ET MEDITERRANEENS, 28 Dec 79)........ 41 ~ Accoun*_ing for ~linisters' Funds (MARCHES TP,OPICAUX ET MEDITERRAN~ENS, "L8 Dec 7~~........ 42 _ Briefs Chinese Agricultural Coooeration 44 ~ Soviet Merchant Marine Cooperation 44 t -c- APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFrICIAL USE ONLY - INTER-AFRICAN AFFAIRS BRIEFS UGANDAN REFUGEES IN ZAIRE--The Zairian Government has decided to take a cen- sus of Ugandan refugees in Zaire and to move them from border areas to the - interior of rhe country. This decision was made in November by the Za.irian Executive Council. The country's authorities are going to select an area where the refugees can engage in agricultural aci~ivities. Abaut 15,000 Ugandan refugees, according to the Office of the United Nations High Commissioner for Refugees (UNHCR)--4~,000 according to Zairian authorities--who fled from their country at the time of former President Idi Amin's over~hrow, are in the eastern part of Zaire (Upper Zaire and Kivu) along the Ugandan border. [Text] [Paris MARCHES TROPICAUX ET MEDI- TERRANEENS in French 14 Dec 79 p 3471] 8143 _ CSO: 4400 - ~ 1 R FOR OFFICII,;. USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 - ~ " ANGOLA SPECULATION ON CARREIRA'S DEPARTURE, NEW POLICIES Paris JEUNE AFRIQUE in French No 994, 23 Jan 80 p 37 [Article by Francois Soudan: "Neto's Second Death"] [Text] Did Iko Carreira, at the age of 46, discover the advantagea of permanent education? This is the impression fostered by the communique - published in Luanda on Monday 30 December announcing the reaignation of the Angolan minister of defense to "undertake studies abr~ad." - To be sure, Col Henri.que Teles "Iko" Carreira has only relinquiahed the _ positi~n he occupied for nearly 10 years in the MPLA-Labor Party p~litical bureau; he is keeping his position at the Ministry of Defenae. However, in addition to the fact that in a"Leninist"-type system, the real power is concentrated in the party's political bureau, the appoint~~ent, two months ago, of 6 deputy defense ministers has already reduced considerably hia field of action. ~ Resignation or Dismissal? ' Therefore, it is diff icult not to interpret this resignation as a diamissal. At first glance, such a measure is quite surprisi_ng: a mulato born in Luanda in 1933 Iko Carreira, together with Lucio Lara, is one of the - "historical" leaders of the MPLA. He was always very close to former President Agostinho Neto, who had appointed him minister of defense as early as 1375. Could this old friendship be nc~w the cause of h~ts present disgrace? This is quite plausible, given the fact that the past 3 months have witne~ase,~ the dismantling of a large part of Ne.to's political heritage. The new policy instituted by the founder of the MPLA at the beginning of 1978 and which he attempted to apply until his death on 10 September 1978 ~ with a modicum of success, was based on three principles: peaceful co- existence in regional policies; a dea~re to put some distance between Angola and its Soviet and Cuban "godfathers"; an attempt a.t national reconciliation in the field of domestic policy. For the preaent, the first of these principles ha� not b~en questioned by President Jose Eduardo dos 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY Santos and his advisera--as ehown by Angolan moderatiun in regard to Namibia and Zimbabwe--but the other two have fallen victim to a harder line, the "refreezing" which followed Neto's de~th. The new president's trip to Moscow at the beginning of December, during _ which many agreements of military cooperation were either signed or strengthened, illustrates this sudden realinement of Luanda. While Jose . Eduardo dos Santos was meeting with Leonid Brezhnev, spectacular ~oint Cuban-Angolan military nianeuvers were taking place 30 kma from Luanda. Obviously, these exercises conatitute the grelude of a new armed offensive in the southern part of the country against Jonas Savimbi's UNITA, and are the death knell of the conciliatory velleities of "Neto's line." Likewise, the increasing departures of numeroua Cuban advisera have been stopped, as was the arrival of an important contingent of Portuguese cooperants. A significant sign: former Prime Minister Lopo do Nascimento and former Planning Minister Carlos "Rocha" Dilolwa, both dismissed by Neto in - December 1978 for evidencing excessive "cubanophilia," have reappeared as unofficial advisers in the presidential entour~ge. Freezing and "Zairenses" Finally, this new "freezing" wind is characterized by the obviously harder - attitude toward the "regressados," those refugees who returned from Zaire and who are called "Zairenses" in Angola. Piled up in the pooreat suburbe - of Luanda, Sao Paulo and the Bairro Popular, many of th~m are the target of vexing measurea and incessant police controls which have been on the increase for the past three months. It seems, then, that as a compromise heir, lacking authority and personality, President Jose Eduardo dos Santos corroborates most of the predictions: he - is reigning, but is~not governing. Increasingly, it is the army, with ita Cuban and East German advisors, which controls the centers of decision and is "colonizing" the party. No doubt Carreira has been, for the moment, the most t~restigious victim of the process that one must necessarily call a turning point for Angola. COPYRIGIiT: Jeune Afrique GRUPJIA 1~80 CSO: 4400 3 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY ANGOLA BRIEFS ALLEGED U.S. PRO-UNITA ACTIVITY--Tt?.e U.S. pro-UNITA lobby has experi- enced intense activity following Jonas Savimbi's visit to the United States last November. This pressure group numbers among its members many anticommunist organizations such as "Freedom House" (Zbigniew Brzezinski is one of its members), the "Social Democrats, USA" organi- zation, some blacks among the congressional "Black Caucus," anti-Castro Cuban associations and the le3dership of the AFL-CIO, whose new chair- man, Lane Kirkland, met with Savimbi. Others supporting UNITA: f~rmer CIA llirector and Secretary of Enezgy James Schlesinger, many senators and congressmen and Henry Kissinger himself, with whom Savimbi had t�.~o lon; mAetings. [Text] [Paris JEWE AFRIQi7E in French No 993, 16 Jan 80 p 49] CENSUS FLANS--Angola will hold a general c~r~su~ of the population. The last census had taken place in 1970. Long-term plans ror development ~equire "information on population statistics, geographic density, people's professions and educational levels," a cormnunique said. The 1970 census showed a population of 5,6l~6,166, with the population of the capital amounting to L~8o,67_3. However, the Political Bureau of the MPLA-Labor Party bPlieves that these numbers were lower than the actual ones, since "the liberated regions were inaccessible" to census agents, or because o~ th~~ large numbers of refugees in neighboring coun tries. The national directarate of statistics will draw the plans for this census, and the Palitical Bureau is asking for the people's cooperation. ~Text] LParis _ MARCHES TROPICAUX ET M~;DITERRANEENS in 'r~e:~ch 11 Jan 80 p 99~ RADTO CADRES TRAINING--A scHool for radio cadres has opened in Luanda, where professional techniques will be taught. There will be approximately 60 st;adents. LText] LParis MARCHES TROPICAUX E1^ MEDIT~RRANEENS in French 11Jan80p99~ CSO: 41~00 4 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200050019-4 ~ ~ FOR OFrICIAL USE ONLY ~ CAMEROON NEW PORT FACILITIES OF DOUALA-BONABERI DESCRIBED Paris MARCHES TROPICAUX ET rIEDITERR~.NEENS in French 7 Dec 79 pp 3401-3402 [Text] The first phase of the transformations upstream and downstream of the old port of Douala which was begun in December 1976 is now being com- pleted, and tiie acceptance of the new port by the authorities should take - place in the early months of 1980. Therefore, completion of the work will coincide with the UNC congress in Bafoussam, a congress which is to select a candidate for the presidential elections. ':he prese:~t leaders will not fail to take credit for the ma~or projects of the port of Douala. It is true that the changes are considerable. Just as when Douala acquired a new airport in 1977, it could be said that in the present circumstances the city and country have acquired a new dimension and have overcome a serious bottleneck. In fact, the port's saturation capacity of 2.5 million tons has been increased threefold to 7.5 million tons. This increase is ex- plained by expansion of the wharves and surface areas. The old rectilinear port of Douala was about 2 km long, with 10 wharf posts, plus two others at Bonaberi, on the right bank; it also included one oil post, a small fishing port which was quite hemmed in, and a naval repair area. The new port is over 5 lan long, between "Doctor`s Creek" [Crique du Docteur] and Wouri Brid~e, whose eastern part (left bank) has been shored - up. The old port for miscellaneous merchandise, with its narrow storage area, remains below Centenary Church. In a southwestern direction, downstream expansion consists of: --a platform for container ships which has not yet been built; --a roll-on/roll-off container ship terminal 500 meters long, with 260 hectares of surface, where rows ot hundreds of blue, orange, red, green and white containers bring to mind a large, somewhat dead American city. This terminal can accommodate three ships simultaneously; however, the lading-unlading equipment is not yet in place; 5 FOR OFFICIr'~L USE ONi.Y APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200050019-4 FOR OFFICIAL USE ONLY --the timber port, which includes a 20-hectare land park, 150 meterG of ~ wharves for the lading of barges for nonfloating timber and ramps for discharge of floating timber into the water; a sheltered basin; and an anchorage.which permits the simultaneous handling of 4 to 5 logging _ _ [grumiers] ships. At present, the basin is only 5 meters deep instead of the 9.5 meters scheduled. Therefore, the b asin cannot now be used; ~ --finally, the national navy has been relocated southwest of this basin. = Still in the downstream area but on the side of Novotel Hill and the Coco- tiers Hotel, the f ollowing installations ure now in place: agencies ef the maritime professions (SOCOPAO [expansion unknown], etc.) long-term storage warehouses and a marshalling area [faisceau de triage] which has its counterpart upstream. Warehouses for Chad and the Central African Empire are also to be built in this regior,. This port area still has vast expanses of land suitable for development, and we can look toward k the 1995-2000 tim~f rame without fear. _ Upstream, beyond the old miscellaneous merchandise port and the ALUCAM [Cameruom Aluminum] terminal, which is still in place, we find the fishing port. It is much more spacious than its p redecessor, with refrigerator - warehouses and an iceplant under construction, as well as a fresh fish _ ~iarket. To the east, *his port is bordered by long-term storage ware- _ hn~i~es. f loser co Wouri Bridge is the 5,500 square meter repair area witr~ i.ts coverecl workshops, its CGTO floating docks (a new floating dack is - under construction); on tne other side of the future naval repair basin, - the hase for oil exploration and expl.oitation is already operational. This complex will employ about 600 persons. 'I'hese projects are what the ONPC (Nationai Oifice of Cameroonian P~rts) calls "the functional components" of the port. In order for this instru- ment to be in operational condition, there is alse need for "accompanying - components," namely: --dredging of. the access channel to the port (and of the basins); thanks to the presence of tc,ro dredges, the second oE which was purcl~ased with Canadian funds, th e floor of the channel, initially 4.8 meters deep, will be l.owered to the hydrographic level of 7.5 meters (and 9.5 meters over the bar). 'I'his depth is eventually tc be 10 meters. Thus, at high tide, ships could h~ve drafts of 12 meters; --rai1 service, i.e., 25 kms of rail lines surraunded upstream and down- stream by marshalling networks which will prevent needless comings and ~,OlIl~'S ~ --road service coordinated with the peripheral boulevard project. It is _ true that users of the system still do not too clearly see this in the new l.ayouts, although signs identify the various areas of the port; --improvement of traffic flow within the port and development of new warehousing areas. 6 - FOR OFFICIl~:. L'SE ONi.)' APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240050019-4 FOR OFrICIAL USE ONLY All of these projects are being handled as follows: The Dutch company, Bos and Kalis for the dredging, and the French coinpany, Dredging and Ptiblic Works, for the functional components, at a cost of about 30 bil- lion CFA [African Financial CommunityJ francs, financed by the ACDI - (Canadian Agency for International Development), 7.5 billion; IBRD [International Bank for Reconstruction and Development) (World Bank), 6.25 billion; ADB (African DevElopment Bank), 2.8 billion; BaDEA (Arab Bank for African Economic Development), 2.5 billion; KfW (Reconstruction ~ Credit Bank [FRG]), 2 billion; EDF [European Development Fund], 1.1 bil- _ lion; CCCE [Central Fund for Economic Cooperation--France~ and FAC [Aid and Cooperation Fund--FranceJ, .75 billion each; finally, of courae, the Cameroonian state and the ONPC itself. Officials of the ONPC like to emphasize that the financing was gran ted b ecause creditors had confidence in the prof itability of these investments. Several Questions In the face of this new tool which increases access to Cameroon, we migtit � ask several questions. Will the new port not be more suscep*_ible than the old one to thefts and smuggling, for, despite the building of fences, it was necessary to pro- vide numerous openings? Will the responsible authorities be able to maintain this additi,on to the country's patrimony, starting with the dredging of the channel and the � basins? There is also the matter of maintaining the railway and the waterways, as we11 as relative cleanliness: already there are unused materials on the ~cene and, in places, the nPw cement underpasses (caniveaux] have been smashed in and crushed by vehicles. For the ONPC, these questions are linked to the question of management. The office, in fact, is concerned about the management of personne2, their motivation, the precise definition of duties and responsibi.lities and - training. The second part of this question: the implementation of a - complete system of port information and statistics. _ Although Cameroon is counting a great deal on the new port of Douala, which, by all reports, will give new impetus to the economy, it is alsa concerried about the development of two other deepwater sites, namely: Limboh Point, " at the site of the SOIdARA [National Refining Company) (a refinery now being built), beyond Victoria; this port will be used to receive tankers - and ore vessels, but, in fact, the hinterland is very difficult to develop. - The other deepwater site is the port of Rocher du Loup, a small island between Kribi and Campo: This ore port (there are plans to exploit an iron mine not far from there} and timber port reportedly will be equa7. to San-Pedro in the Ivory Coast and could contribute to the economic development of the southern-central and eastern parts of Cameroon. 7 FOR OFFICIi~L L'SE Ovi_Y APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 I~OR OFrIC1AL USh: ONLY _ . ~ N _ 4 r ~ ~ _ ~ I ~ ~ o i i! ; , cn a ~ E~ ~ .sG I O tn 1-~ O L+ ~1 Ng W al d �ri ` fr *j . ~ ' : o~~l .l p, rn cd R! O ~ N ~ o t ~ ~ i.~ r-~ 1+ a) 1-+ �r~ O cd ` ~ S. \ ~ \ i 1 L i tA W t-+ R. L.~ 4..~ C) I ~ ~ 1 LJ H O G'+ N R1 , i~\ ~ a~~',~~ a' a o E v ao ~o ~ u~i ~ ~ ~ > a~ ; 9 ~ ~ a I cd N G R1 u S-~ \ ~ ~I J ~ / 6 ; i , ~ Q ~ .o ~ o > ro a~ ~ , 1 ~ ~ ~~ao�~~+o~n~~ - a ~ UHW~Nw ~f3,G~w ~ ' I = I ~ ~ ~ ~ _ , , i' ~S'' � M ~ v1 ~O f~ 00 I /5: ~ E I N N N N N N - ' ~ / W � ~i ! z '1 ~ ~ ~ y i " �rl ~ ~ ~ ~ b0 ~ r-i V, \ b0 N c,y s'~ + I r-I L (b ~rl 4J ~ I 1 U1 ~1 6 fd �ri $ ~ I O r. 3-i Ctl QJ ~ i OD r. I ~ w~ p f-+ 1.+ 3-+ O N I~' ~ I cd ~ o u o~'o a a' cd l:._ a~ x N ~ ro�,~ N .c ; ~ a a~ ~n o o a ~ ~~I i z ~ ro ~ ro ~o o cn w ~ w ~ - ~ ~ a~ v~ ~..e a~,.~ ~n ro a~ a~ m ~ 1'~ ~ ~ oo .--i s~ a~ v�~ on 1 ro cti w n0 v cr~ b0 G N+-~ cC ~ ~ m % I O O tA U N a~.cS1 ro.~ O(A ~ it 't~ {i '1\ ! �rl f3. 1J .L' �rl ,a 1~ 1r 1-~ ~rl .G G. ! a ~ a g ` a s~ ~ ~ l.~ U�r+ S-+ (A ~ G f-i ~ 1-i 1J U�ri i ; i~inst the development of smuggling into Sierra-Leone and - Liberia, and ro make the reorganization of prospecting possible. [Text] P;~ris h1ARCHES TROPICAUX ET MEDITERRANEENS in French 21 llec 79 p 3619] 5157 STATE-CHURCH RELATIONS--President Seku Toure of.ficially confirmed the normalizing of. relations bet.ween the Guinean state and the Church of Guinea by receiving Mgr Robert Sarah, archbishop of Conakry, and the big = delegation which had attended his consecration and enthroning. [Text] Paris MARCFI~S TROPICAUX ET MEDITERRANEENS in French 21 Dec 79 p 3619] 5157 PROBABLE FIVE-YEAR PLAN--The People's Republic of Guinea should have a second five-year plan for the period 1978-1983, but no information is available on the subject. A recent evaluation by the International Monetary Fund stresses the improvement of the general economic and financial situation of the coun- t.ry ~luring the past 5 years. Initiated by the exploitation of two bauxite fields, the improvement was reinforced by the implementation of a policy aimed at regulating domestic demand; therefore, the balance of goods and services has registered a surplus since 1976, but the balance of payments remains precazious because of debt servicing and the decrease of foreign - loans. A 1979-1980 program is aimed at consolidating the pxogress accom- plished so far and at stimulating domestic supply, especially through the encouragement of domestic savings and the adoption of ineasures to attract foreign investment. [Excerpt] [Paris INDUSTRIES ET TRAVAUX D'OUTRE-MER - in French Jan 80 p 23] - CSO: 4400 17 APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFrICIAL USE ONLY GUINEA-BISSAU BRIEFS DUTCH FOOD ASSISTANCE--The Netherlands have granted Guinert-Bissau aid in food worth 10.5 million f.lorins, since this year the country lost a hiQh percentage of its crop as the result of irregular rainfall, along with additional aid worth i0 million florins to enable the country to deal with balance of payments difficulties. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 21 Dec 79 p 3618] `157 CSO: 4400 18 FOR OFFICI~~L USE UNLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200050019-4 0 FOR OFFICIAT. USE ONLY MADAGA3CAR - CVERTURFS TO FOREIGN INVFSTORS MADE, PROJECTS CONSIDERED Faris MARCF~S TRppICAUX ET MEDITERRANEIIVS in Frer~^h 14 Dec ?9 PP 3'~1-3~+44 ~Article by Jacques La.tre~noliere: "Madagascar: Is It liaking Overtures?"~ [Text] ~ance retains in Madagascax the position of principal trade partzer that it held at ~he time of the fall of the Tsiranana regiae. Folloxing the theatrical "settlenent of accounta" orchestrated by Didier . Ratsiraka xhen he xas foreign minister under General Ramanantaoa~ hoxever~ it became obvious that this position xas a fragile one and could quickly be _ compro~ised unless nex autual interests ~a~~~ialize~ +o strsr.g*..hen t.be :~nuou;~ oc~;ul that had been maintained betxeen the tKO countries b~ the 1973 cooper~~.tion agreements. Soa~e ot,portunities for xenexed F~ench pa,rticipation in Madagascar's econosy arose in Gctober 1975 in connection xith a plarining aission, together xith the prospect of an honorable settleaent af the natters in dispute. These opportunities xere spelled out during President Ratsiraka's official visit ~ in September 1978 and durir.g the meetings (held in Noveaber 1978 and March 1979) of the joint commiseion khich had been areated by the 1973 ~~ementa but did not hold its first m~eting until 4 years la,ter. Contacts have also been maintained by various technical and banking ~isai~ns and by vis~ts to - Antananariva by mea~bers of the French Farliaaaent~ in paxticular the visit of Couve de Murville. These relati~ns have nor+ entered a nek pha,se xith the organization in Paris during this month of December (on the initiative of Henri Raharijaona~ aaibassador of the Democratic Republic of Madagascar) of a nuaber of FSranco- . Malagasy meetings, One of these meetings ?ras held on 17 Deceaber at the head.quarters of the CNPF (National Council of French F~ployers} and could be described a.s an infor~oative dialog betxeen ~}ench bankers~ i.nd,ustrial- ists and aerchants involved in (or attracted to) the Malaga.sy market, on - the one hand, and Program Director Rakotoarivelo of the Malagasy Ministry - of Planning. Although this ~eeting xas of an infor~al cYiaracter and ~ould obviously be incapa.ble of producing any immedia,te results, it serves to illustrate the cu~ent preoccupations of the tsa.].agasy authorities. In pg.rticular, the ?resence a.mong the F*ench participants of several directors 19 FOR OFFICIAL USE ONL.Y APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200050019-4 FOR OFFICIAL USE ONLY of the CEPIA (~ench Center for Industrial Promotion in Africa) will in particular bear xitness to the interest (manifeated on various o ccasions both in Pasis and in Antananarivo) that is increasingly being fo cused on the possibility of obtaining the support of the ~ench PHI (Small and Mediwa-Sized Industries) for the creation of an interaediate-goods industry in Madagascar. An EScplosion ef Pro jects The overtures to foreign capita,l are quite obvious. They are not--to be sure--directed toKard France alone, but the fact renains that a special effort has been made to interest our co~.~ntry in Madagasca,r, xhere F`rance should benefit at the outset f`rom factors deemed to be favorable: a stable ~ currency, a foreign debt that to date has been of reasonable proportions, but also a steady increase in F~ench sales (f5roa 505 million French francs in 1976 to 589 million in 1977 and 614 nillion in 1978), xith an increa~e for the first 8 months of 1979 of 43 percent over the figure for the corres- - ponding period of the previous year, thereby reinforcing in equal propor- tion the already substa.ntia.lly favorable ba.lance in F~ance's trade xith Ma.daga,s cax. Coap~nsation of the F~ench enterprises na.tiona.lized since Iy72 ha.s baxely begun. Difficulties have also arisen xith respect to the transfer of dividends, although at least one procedure has been developed from xh~ch partial results have been obta,ined. So~e of the delays are probably the result of the vigilance being exercised by the Central Bank over the bal- a.nce of pa,yments situa.tion until the final balance sheet is prepared at yeax's end. After the surprising xeakness of the Malaga.sy econony during the period 1973- 197~1, xe are nox xitnessing a.n explosion of pro jects for xhich financing has in large part b~en requested of various interna.tional credit institu- - tions, Western and Arab banks, and major I~ronean industrial firms. One of the more important of these, the Andekaleka Dam project--xhich is designed - to meet the requirements of the interconnected poxer systen~ of the capital, the ~xplo~.tation of the Andriamena chroaites, the construction of a paper pulp mill, and (if indicated.) the exploitation of the Moramanga ferro- nickel deposit--has mobilized ~an the basis of a dossier prepared by the EDF [Euro ean ~evelopment 'rtiznd since 19~) Particigation by the World _ Bank-IDA ~Interr.a~io*.~al Development Asso ciation]; Canada; BAAEA ~expansion - unknown]; vaxious Saudi Arabian, Kuxaiti and Abou Dhabian funds; the Central h~~nd for Economic Cooperation; and a group of Scandinavian banks. Construction work on the dam project (xhich is nox under xay) xa.s entrusted - - to the SKedish firm Skanska, xhile the contract for the turbines and alter- na.tors costing a total of 980 million I~Sa.lagasy f`ra.ncs) xas axarded to _ Jeumont-Schneider. The prime contractor_ is JIRAMA [expansion unknoxn], a Malagasy company for the production and distribution of electric poxer, and the total cost of the project xill be approximately 30 billion Malagasy francs [FMG]. The first stage of the project is scheduled for cospletion in 1982 . 20 FOR 0}~FICIAL USE O1~LY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240050019-4 FOR OFFICIAL USE ONLY Malagasy T~a.de Balance (in millions of Ma.lagasy fYancs) ~ ~ ~ ~ - Imports 78,045 64,600 85,216 99,632 Exports 63,040 65~365 82~926 87,214 _ ~ Balance 15,005 765 2,290 12,418 F~anco-Malagasy ~ade (in millions of Malagasy t`rancs) _ 1979 _ ~ ~ ~ ~8 8 aos E~cports to Madagascar 53~�5 5~5�6 589�4 614.6 53? Ia~ports fron Madagascar 380.2 4~,2.1 627.1 422.9 232 Ba.lance 15~�3 63�5 3?�3 191�7 305 The cemeirt, textile, lunber and paper industriea xill be the principal axes of industrial develop~ent in the coaing yeaxs. The production goal for ~ - cement is 1.55 million tons, and the Aa.in plant (1 Rillion ton capacity) xill be located at Tulear. The West German firm Loesche has been axasded ~he contract for. construction of the Antsirabe plant (150,000 tons), to be financed by a loan of $10 million f~oa an American banking group headed by Cha.se Manhattan. The Mboanio cement plant near Majunga Will be expanded to a capacity of 400, 000 tons fron its p~resent 180, 000 tons; FScenc.ti, 5pan- ish and Russian firres are bidding for the pro ject. Based on a hypothetical groduction of 65,000 tons of rax cot~on in 1985~ the construction within the next fex years of txo nex spinning and xeaving mills--one at Tulear and the other at Antar:anarivo--is also currently under consideration. These nex mills xould be in addition to the Cotona nill at Antsirabe and the SOTEMA [expansion unknoxn~ nill at I~lajunga. The Mangoro River forest area betxeen lioraaang~. and Lake Alaotra~; and the Natsiatra forest area north of Fianarantsoa, axe to supply the raW naterial for txo paper pulp mills having a total capacity of 250,000 tons. Financed by the Japanese Overseas Economic Cooperation F~nd, the Naaoroha hydroelectric complex--the construction of xhich has oeen carried out jointly since 1978 by Nissho Ixai ( apan) and the National Interest Coagany for Public Korks-- will supply electric poxer to the second of these txo nills and xill also supply power for the manufacture of caustic soda and for other industries. Alongside these large-sca.le grojects~ and in the context already cited - above~ many smaller-sca,le prrojectsl in the most diverse sectors have been planned by Ma.la.gasy government entities--sectors ranging froa the agricul- tural and food industries (soluble coffee, julcs and fruit vinegax) to lia~ 1. See MARCI~SS TROPICAUX, 2 Nov 19?9, p 2969� 21 - FOR OFFiCLAL USE OlV'I.Y APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007102/08: CIA-RDP82-00850R000200050019-4 FOR OFFICIAL USE ONLY and plate glasa manufacture and factories for the sanufacture of bolta~ screxs and faucets. The tovrist industry is being developed~ xith the construction of hotel cottagea at Ihosy and Tulear and activity by NOYOTEL - [expansion unknorrn] at Antananarivo and No~si Be and. in the principal � cities. The development of port facilities and aaritiae transport~ tore- over~ has resulted in the vlacing of subR�antial orders for tugboats, coa.stxise barges and contain~rs xith French~ Spanish and Japanese ahip- builders. - AI1 of these projects are anenable to various procedures~ they ~ay be carried out as joint ventures or as "trilogue" [seaning unknoxn] or "key in hand" opera.tions. Agriculture also provides a possible Pield of activ- ity for our re~earch institutions and ultima,tely for our public xorka construction companies. Four ventures in particular hava attracted attea~-~ tion because of the scale of the operations envisagad: a. Rice. The goal (not yet attained) is self-sufficiency. _ b. Cotton. A loan of $6.5 nillion has been granted by FTDA (International _ ~nd for Agricultural Developsent) to deve].op 10,000 additional hectaree - (,on xhich 3,200 fa.isilies xill be settled) wit~hin tha Mangoky River peri- _ meter. c. Sugarcane. Plans call for expansion of the suga,r units on Nossi Be-- finaticed jointly by Cha,se I~~anhattan ($4 aillion) and the National Agricul- tural Credit Ba.nk--and for creation of a complete unit of 2,400 hectares at : Analaivo in cooperation xith People's China,, xhich has supplied the sugar - refinery. d. Soybeans. The French firms SEE~SS [Econoai~ and Social Developaent Studies Compa.ny], GERSAR [expansion unknoxn], Bas Rhone-Ianguedoc~ GNTA [expa,nsion unknoxn] and TECHNIP [expansion unknoxn] have re~sntly.loeen - donsult~d.--to~ethmr With several Spanish firms--xith a viex to fornulating a large-scale plan for groxing soybeans on 200,000 heci~ares in the Tsiroanomandidy region. An 0 ccasion for Long-Term Proje~tions Anyone xho is surprised at the nuaber of dossiers xhich have accordingly appeared on the investment market should be aa.de axare tha~ they correspond ~ to the "second wind" of !lalagasy socialisi. Folloxing the period (necea- - sar ily long and characterized by uncertainty) d~aing xhich the ~tate consolidated its currency, nationalized and completely reorganized its banking structure, and ultimately assused its econo~ic responsibilitiea (~r at the very lea.Rt placed the greater past thereof in the hands of its oWn nationals), a 20-year grojection (itself compoaed of inedium- and short- _ term plans and prograss) provides, in ef`fect, a 1978-198~+ Phase fox the creation of nex structures and facilities for production. 22 - F~R OFFICIAI. USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY - l~inieter of Planning ar,d F'inance Rakotovao Rauakaboana (xho is charged xith foraulating the viexs of President Ra.tsiraka) has repeatedly told foreign journaliste that the ob~ective (as approved by the People's Natio- nal Assembly) is to double the per capita gross domestic product [GDP] in 20 yeaxs to 100~000 FM;. Aeauming a 100 percent increaae in popula,tion~ the overall GDP xould tr~en total 1.8 trillion Malagasy f~ancs (at current value) as opposed to 380 b'.llion in 1979� During the same period the share pro- duced by the cooperatives, decentralized collectives and soc;ialist enter- _ prises would increase from the current 10 percent to 75 percent, given the fact that enterprises in ~hich the state is the aajority shareholder are - deemed to be socialist enterprises. This xould leave private ca.pital an _ apgroximate 35 [aic] percent share of the overall GDP. At the end of the aforesaid period three distinct sectors xould accordingly exist: an entirely nationalized sector; a state-controlled sector; and a free-enterprise sector operating in accordance xith the fiscal and aocial - laxs and the need for balance in foreign accounts. The effort in respect to industrial construction and agricultural production is all the more justifiable in that the gross do~aestic product (expres~ed in constant francs) xas characterized by An inopportune stagnation (if not actually a regression) from 1975 to 1977- :.s for the projects theaselves~ a substantial part of them date from the 196o's--in some cases, even f~o~a t,he colonial period--anci have si~ply been u~-~.dated. There is no rea.son to ue surprised, for no new factor such as petrolewe or uraniua has subse- quently al.tered. the essential data Kith respect to domestic production. Some projects, hoxever, that in their day xc~re rejected or poatponed be- _ - ca.use of an inadequate coefficient of profitability IDa,y nox attract renexed interest because of changed circunstances. This is apparently the case as - regards the iron deposit at Soalala, ne3r Kajur~~, xhose ore reserves of 35 percent mineral content are estimated to total 800 aillion tons, the ex- ploitation of xhich (according to studies by Italian firms) could benefit from EDF [European Development ~nd] financing. For slmilar reasons~ a nex episode may perhaps now be xritten in the disappointing history of the Sakoa coal basin as a consequence of the study carried out by the Fblish iir~a KOPEX [expansion unknown]. Moreover, the fact that foreign ca.pital is solicited for this effort does not rule out the possibility of local financing, inasauch as the long-tera plan provides for doubling the percentage of GN P that is devoted to invest- a~ent. This is the objective of the creation of the National Investaent - Fund, xhose sta.tutes xere published la.st 17 October. The resources of the fund xill consist c~f the ~aobilizable reserves of ~NAPS [National 5ocial 4lelfaxe F'und)~ of the insurance companies, of the retiree~ent funds of the = government employees, and of the Savings Bank, xithout excluding loans~ _ budget allocations, or contributions from the stabilization funds. Genera~ly speaking, the fina,ncial procedures for development are necessasily not very differer.t in Madagascas f`roa xhat they are in other countries khere _ 23 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY because of the lack of iaportant $ineral resources capital fox~ation is alKays encumber8d by a burd.en of indebtednese. Rakotovao R~ak.aboan~ doee not clain to poeseee any ~iraculoue "recipe" in thie dosRini he believes - that the really original feature of the Mslagasy experienoe ia the fa~t that it is at the service of a aocialiet ideology. It is difficult at the greaent tine to measure precieely the progresa nade in respect to this effort. It appears that only txo state enterprises-- SECRIIV Naval Construction and Repair Coapany] (the foraer Diego Suarez arsenal and KRACIiA (Andriasena C~roaites)--are governed by the charter for socialist enterprises. The nuaber of limited-liability and joint-stock ~o~epanies created from 1976 to 1978 exceeds by far the nuaber of state eriterprises and mixed coapa,nies (of xhich none at all appears to have been - created in 197a), but the total capita,l subscribed, by the latter group is eight tiaes that of the former. We nay point out that the total capital _ investment ma.de in all companies during 1978 xas only 25 percant of the corresponding total for 1977 and 60 percent of that for 1976--a fact xhich does not reflect a very firm regponse by ~la.l.agasy and foreign inrestors to the government's appeal. _ A trend toKard liberalization is perceptible in the nanageaent of the aixed conpanies, in that the capita,l-stock participation contracts for these _ entesprises aay (subject to euisting laxs and regulationa) be negotiated on a case-by-case basis. Horeover~ the partnership capital agreeaents conclu- - - ded betNeen the state and private paxties sust in certain cases be accoa- - panied by assista.nce and sanagetent contracts in the na.me of the p~artner himself or of a third-party entity either domestic or foreign. The desire for decentralization is manifest in the opportunity that hae been extended to the national banks to guarantee loans contracted in foreign exchange by - the socialist enterprises, and to the Central Bank to counterguarantee ~hese loans. ~'hese changes--sost of Which occurred in early 1979. probably in response to a suggestion fron~ lenders of foreign exchange--iudicate that the Malagasy authorities are anxious to adapt to the probleas of their Western partners. Aid from the Socialist Countries. Arab Aid - This attitude is also explained by the fact that the political~ ailitary and cultural relations (nox quite close) of the Desocratic Republic of Mada.gascar xith the socialist countries have not (or have only to a slight extent) been followed by concrete investaent in either the industrial or agricultural sectors. Antana.narivo is linked to Moec~?r by regular AEROFLOT service, and young Malagasy are training to pilot the supersonic fighter- bombers that have been ordered froa the USSR and axe sched.uled to replace in 1980 the squadron of MIG 17's (already obsolete) that xere supplied by ~ North Korea. In ~Iadagascar (as in Black Africa), hoWever~ the Western concept of cooperation is not much gracticed by the Soviets and their allies, xho prefer barter agreeaents or the opening of long-tera credit - for the purchase of producer goods and consumer goods. 24 FOR OFFICIAL USE ONLY " APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY - An advance of i2 gillion rubles (4 billion Malagasy franc~) xas accordingly granted by the USSR for phased geological r~seaxch under the direction of Russian technicians. Attention has also been directad toxasd sales of equipment, tractors and trucks, together xith spare parts and repair shops; the gift of an IA-40 airplane to the president of the republici and the dispa,tch to the USSR of numerous scholarship recipients and trainees, xhich - has reportedly elicited soae disillu~ioned co~ents on Ratsiraka'e part. Hungary ha,s supplied 100 buses to the ca.pita,l. The technical a,gricultural assistants from North Korea are appreciated, but the ma.terial contributions - of that country in the forg of cultural buildings and small-scale indus- trial installations are on a loW technical level and do ciot appear likely to satisfy the Kalaga,sy clientele. People's China has ma.de more substantial efforts vis-a-vis Madagascars t~ee deliveries of rice; a long-tern, interest-f~ee loan of 2 billion Mala,gasy ~ancs, accompanied by technical anc~ econoaic agreexents; a second loan of 12.5 billion Malaga,sy francs~ easaiarked for six pro3ects including a stretch of highxay l~nking Koraaanga and Taaeata.ve (for the construction of xhich the governnent turned. doxn an offer to ~ake available 3~000 Chinese xorkers); and the construction of a sugar xill at Analaivo, near Korondava. Also notexorthy axe a number of small-scale projects relating to porcelain . prociucts, rural hyaroelectric installations and pharmaceutical products; - the establishment at Antananarivo of a military aission coaaanded by a general; and a gift of axtillery materiel~ nota,bly antiaircraft guns. The D~:;onom3 c resulta of this activity appear to be pritaarily to the advanta.ge of China,, which has become one of ~Iadagascax's principal suppliers (first ~ in terms of total value for the first 6 months of 1979) xhereas the total value of Malagasy exports to China has in recent years been negli~*,ible. Libya, ha,s granted Ha,daga.scar a loan of $3 million at an interest ra~e of 5 percent and a tera? of 12 yeass, ~ith payaents deferred for 2 years, ~~nd at the Central Bank has ma.de a deposit of $2 million for the purposs of wu:levwing the temporary equilibrium of the ba.lance of payments. In a~~di- tion to the participa,tion (previouslp cited) by Arab ba.nks and develop.~ent fu~~us in the finaneing of L;.c Andeicaleka Le.m, loans totaling 2.9 billi~~n Ma.lagasy francs ha,ve been contracted .ror the Fenerive-Saanierana and Maintirano-Tsiroanoma.ndidy highxays. In Iraq~ Minister of Ecoi:~my and Commerce Justin Rarivoson has just negotiated a loan of $j0 million fo~~ the expansion of rice grorring. The government does not appear to have attained the principal ob~ective it _ xas pursuing in its overtures to the Arab countries, namely to obtain--in the na.me of Third uorld solidasity--a discount in the price of petroleua. The conditions posed by Libya for consideration of such a formula seeaed irr.elevant, and even Iraq itself--the principal supplier--preferred the _ traditional proced.ure of granting loans to finance ~uch txa.t:.sactions as opposed to offering a discount that xould have threatened to set an embar- - rassing precedent~ 25 FOP, OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY _ ~eclining Production The feveriah construction, and the overturea to foreign inveatRent, that hava charaeterized 1~Ialagasy activity since 19?7 are accordinglY ezplained by the faithful execution of the plan and by the insufficiency of the financial aid extended by the socialist countries. It xould be incorrect not to regard theae factors as also the cause of the stagnation and decl~ne of agricultural~ sineral and industrial production. bcports of coffee--the principal itea in Madagascar's export trade--ha.ve consistently fluctuated around 56,000 tons per year for the pat3t 10 yeara, ~ attaining a maxiaun of 67,000 tons and a ainimum of 47,000 tons. Paddy rice (the basis of the national diet) is aeasured today in terms of ~ imports; since 197~ there ha.s been a general increase in purchases, amount- ing in 1978 to 135,000 tons valued at 9 billion Malagasy f~ancs--represent- i~ 75 Percent of the deficit in the trade balance--xhereas exports of de luxe rice to E~rope declined ~om 67~000 tons in 197o to 3~500 tons in ~ 1978. _ Principa,l Food Products ~ported (in tons) - ~ ~ ~ ~ ~ Green coffee 65,400 67,400 47,100 50,189 55~170 Sugar 49,600 61,400 18~70o z6,35o 23~240 Clove~ 5,100 22,200 2,600 3?635 14,768 Cape peas 19,800 16,500 5~800 11,877 F~~6o8 Meats 6,300 2,600 700 2,760 3,327 Shrimp 14,300 6,70o z,ooo 3,757 3,io5 Pepper 2,900 4,100 1,700 3,780 2,184 - Vanilla 1,300 800 600 1,713 1,459 FScports of sugar declined t`ron 62,000 tons in 197~ to 23~000 tons in 1978; exports of aeat, from 24,000 t,ons in 197~ to 3~300 tons in 1978i and - exports of Ca.pe peas, t`roa 16,000 tons to 8~600 tona. The total tonnage of vanilla exports held steady, xhich aeant~--unPortun~tely--that aaximus advanta,ge xas not derived froa the opening up of tha A~erican aarket to this product. Exports of pepper declined slightly, t~rom 4,100 tons in i975 ~ to 3~700 tons in 1977 ~d 2,100 tons in 1978� Cac.~w has virtually disap- peared f`rom the statistics. bcports of bananas declined froa 12,500 tona in 197~ to 4,900 tons in 1978� ~cports of shri.ip reaained at the eate _ level. Only one product--cloves--record.ed a significa,nt inareaee in ex- ports (to Indonesia and Malaysia). Cotton groduction supplies almost the entire national spinning and xeaving industry, and a total value of 1-3 billion ~l,alagasy franca xas even expor- - ted to Europe in 1977 (a record year), declining to 1.1 billion in 1978� The curves for production and for total area under cultivation folloxed an - almost parallel progression frns 1971 to 19?7, increasing during thst periocl fro~ 21,600 tons of rax cotton on 10~800 hectaxes to 3?,000 tona on _ 26 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY 20,400 hectares. In 1978 the txo curves began to diverge, xith the produc- tion curve heading downxard. Average yields per hectare, xhich had at- tained their maui~u~ (2,200 kilograas) in 1973~ declined steadily thereafter except for an upxard surge from 1,400 kilograms in 1978 to 1,800 kilograas in 1y79. Malagasy Cotton Production ~ ~ ~ ~ ~ - Area (hectares).... 10~800 16,300 1?~500 20,400 22~200 1?,700 Production (tons ' of rata cotton).. 21,600 30,700 34,700 37,000 33,000 32,200 ~ _ Yield (kilograms per hectare).... 2,000 1,800 1,9~~ 1,800 1,400 1,800. bcports of Hineral Products (in tons) ~ 19~ ~ ;~g Chromite 194,000 211,~26 164,789 119,283 _ Graphite 17.774 17,402 15,726 16,624 Mica 15 81 1,4~98 1,56g The sa.~e trends axe observed in the mining sector. ChroAite production - att,~.ined its peak in 197b, xith 211~000 tons exported, declini again in 1978, to 122,000 tons--a level belox that of 1974 (180,000 tons~. The production of graphite re~ained uncha,nged f`ro~ 197~+ through 1977~ increas- ing slightly in 197$� Mica, re~rained stationary. In the in3ustrial sector, the production irulex has reaained belox xhat it xas in 1974 and 1975 despite an up~rarci moveaent in 1977~ xhereas the groxth rate established for this sector by the 1978-1980 Plan is 8 percent. If Me note that the corresponding rates are 4.3 percent for agriculture and 8.8 percent fbr mining and energy, one can deduce--based on the results indi- ca.ted above--that these goals xill not be attained. Technical Aspect of the Projects. The Price of Development Coming as it did after a period of reflection and restoration of order, this decline xould not be disquieting if the current effort of the Malagasy authorities xere to stimulate an increa.ae in tonnages and at the saae tise improve the ba.lance of trade and account ba,lance. It does, hoxever, poae problenss choice and coordina,tion that have not all been solved. The deficit in paddy rice~ for example, does not result solely fron a sudden upsurge in the population groWth rate. The use, conservation~ hasvesting a.nd di$tribution of pa,d.dy rice are responeible~ at leaat in equal part, for the shortage that ha.s been experienced by the principa,l 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY population centers and that justifies the purchases na.de abroad. In addition to this observation, an effort such as that of the 100,000 hec- tares of rice fielda--however spectacular it aay be--kould seea to require explanation. The Merina, and Betsileo peasants knox perfectly xell horr to adapt the cultivated areas to their poseibilities and their needs. Their vrogress is not to be measured in terss of total area planted but rather in terns of productivity~ and in this connection xe aay note the value of - the 3-year project financed by the Nor~egian Governaent (xith the techni- ca.l cooperation of the FA(J ) for developiilg the nse of fertilisers, i~- - proved seeds, and pesticides--a project Khich revives the tradition of the former OPR (Rural Productivity Operation). The parallel develop,ent and improvement of rice-growing activities in the regions of Lake Alaotra~ Marovoay, Andapa and the xestern coastal plains appear to be the only xay to solve Madagascar's food problem. During a 5-yeax periad the E~ropean Economic Coaaunity had financed a coffee progras designed to increase tonnages by replacing and reneuing the , plant material. This progra.m has unfortunately been neglected since 1972~ the year in xhich the Malagasy state xas to have assumed the expenses of the progra.m. Continuation of this progra~ xas to have increased produc- - tion to 8 5~000 tons per year during the 19a0's and xould in any case have enabled i.i.e nation to derive maximus advantage f~om the 1976 coffee "booa." In actu~.l fact. the "boom" xas translated for Mardagascaz' ~erely into an a.dditional profit of soae 10 billion I~lalagasy fYancs--a profit that Kas, moreover, experienced more at the level of the banks than at the level of the growers. Without aentioning the losses in equipaent that xere sus- tained, or the dispersion of the "populaxization teams" that had been so patiently organized, xe must recall that the development of coffee groxing - is closely dependent--on the eaat coast--on a nornal supply of padc~y rice~ for the peasant Kill devote hi~eself to groxing coffee only to the extent that he is not forced, in order to feed himeelf, to barter a kilogra$ of coffee for a kilogr~ of rice. This acc~rdingly presupposes a nuAber of decisive choicas at the na.tional level xith respect not only to the - production of rice but also to its domestic diatribution. The ca.se with respect to cotton is no less significant. The projects for the creation of txo nex spinning and Weaving units--at Toleara and Ant Mtana_-~arivo--rrere developed on the basl.s of an~ available supply of 65, 000 tons of rak cotton. Since the prcduction of the already-existing instal- lations satisfies local demand, 90 percent of the groduction of the new units is scheduled for export. We ha.ve already note,d the actual decline . of cotton production fron 37,000 tons in 1977 ~ 32,000 tons in 197y, xith yields of 2 tons per hectare bein~; ~aintained only on flooded landa (which supply 68 percent of the total crop) xhereas tk~ey have decreased to 1.7 ton~ with irrigated farming and 700 kilograms xith dry farming. InasBUCh as flooded-land farming is still 80 pexcent in the hands of Etixropean and Indian farmers--xhose numbers xill necessarily decline--the future of this _ venture remains uncertain unless vigorous measures are taken in reapect to agric�ultural training. ~ren more dubious is the profitability of the nex - mills, xhose pri~ne costs--if burdened by the necesaity of importing their ~ ~ 28 FOR O1~FICIAI. USE ~NLY I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 , _ FOR OFFICIAL USE ODTI.Y ra~r materials--K~uld render them no longer competitive on the European aarket and even less so on tha Af`rican markets. These examples serve to illustrate the advisability for the Malagasy authorities to ta.ilor their econonic pro~ections to the technical reali- ties, for otherxise certain pro~ects offered to the investors xould either not bear examination or xould result in partial failur~s. The aubaidies provided by the French cooperation, xhich in 197$ still auounted to 6.8 billion I+Ialagasy francs (not including loans f`rom the Central Bank)~ should favor this analysis, just as the local experience of the F~ench _ technical assistants (Which does not alrrays echo the optiaism aanifested by certa.in foreign firms) also favors it. This technical exactitude xould not only be calculated to attract inves- tors. It Kould also provide indispensable assurances for tkie Deaocratic Republic of Ma.dagascar, in the effort it has undertaken. Such an effort~ _ made in the very midst of a world crisis, could not possibly avoid a msasure of flexibility in the area of f inancial ~oa~nagement. Foreign - credits have already declined--since last spring--fro8 11 billion Malagasy francs to 6 billion~ xhile in 1 year the Central Bank's claims on the Z`reasury have risen froa~ 66 billion to 100 billion. The rieks that this ~ituation entails for the stability of the currency can be incurred only on the basis of dossiers that are incontestable. - GvrYRJ.GHT: Rene Morei:x at Cie Paris 1979 10992 CSG : 4400 - 29 FOR OFFICIAL USE ONLY - APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY MALI FRG REITERATES WILLII~G~IESS TO PROVIDE ASSISTANCE Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 21 Dec 79 p 3618 _ [Text] Rainer Offergeld, FRG minister of economic cooperation, arrived in Bamako on 15 December for a six day visit to Mali. The minister indicated that, with rhe agreement of the Mali government, the government of the FRG had agreed to grant aid totaling DM 89.6 million for the 1979-1980 period, or 21 billion Mali francs. These funds, he specified, will be used to supply foodstuffs and energy to Mali within the framework of the struggle against desertification. - dffergeld said thar he was examining the poss~bility for supplying addi- tional urgency assistance to hfali whose poor harvest is concerning its leaders. He announced that his government had shipped, several days ag~, 3,000 tons of grain to the Mali rcgion of Gao. However, he emphasized that "we are trying to help the developing coun- tries to increase their food production precisely in order to enable the farmers to earn an income and to make countries r.eceiving economic aid _ more independent." That, in his view, is what justifies FRG support of projects such as the - Selingue dams, under construction, and Manantali, which will be imple- ~ mented within the framework of the OMVS (Organization for the Development ~f the River Congo). Thc partir_ipation of the FRG in the building of the Mar~antali dam will amoun[ of DM 40 million. Offergeld fur[her stated that the federal government is equally wiiling to supply the missing � funding for the com~letion of thc Sevare-Gao route. (;OPYRiGHT: Renc M~rcux et Cie Paris 1979 5157 CSO: 4400 30 - FOR OFFICIG:, USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY MALI BRIEFS FIVE-YEAR PLAN--The Republic of Mali is continuing the implementation of its 1974-1978 five-year plan with a slight delay. T'he amount of this plan, ini- tially set at 395.2 billion Malian francs, u~as increased to 486.8 billion in SeptemUer 1975, to 512.2 billion in December 1975, to 916.7 billion in June 1976 and brought down to 717.0 billion in December 19?6 and 507.8 billion in December 1977. This decrease is due to the cancellation of cer- tain projects, notably in the sectors of agriculture and communications, which had been unable to find financing. Programming for the next five-year plan is continuing, notably on the local level. [Excerpt] [Paris INDUSTRIES ET TRAVAUX D'OUTRE-MER in Fr~nch Jan 80 p 23] 1~~1!R;;M i~EVELOPME~T ASSISTANCE--In accordance with the first Lome conven- _ rinn, the European Investment Bank gran~ed on 11 December loan of 2.5 million drawing units (about 1 bii~ion 463 million Mali francs) for thc develc;pment of tourism in riali. The funds will be used for the construc- rion ~~E r:~o horels and the purchasing of transport and communications - facilities nceded for the development of tourist routes. The sum total of rhe investments is estimated at 5 million drawing units (2 billion 935 milli~n ~tali Erancs). The Central Economic Cooperation Fund and the UTH `Tourism and Hotel Industry Union] are also participating in the financing. [Excerprs] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in Prench ~1 Dec 79 p 3618] 5157 CSO: 4400 - 31 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY SEYCHELLES DISPUTE WITH FRANCE MUSHROOMS Paris AFRIQUE-ASIE in French 7 Jan 80 p 20 [Article by San Fie] [Text] It was e:xpected: the measures taken by Albert Rene's revolutionary g~vernment against the plots woven by mercenaries with the support of foreign powers have seriously affected those who were pulling the strings from behind the scenes. - The first reaction from the French government, after one of its cooperation tecfinicians had been directly implicated in the anti-Seycfielles plot: the suspension of thP cooperation program with Victoria and the recall of seven cooperation tech- nicians, despite the sending of a personal letter from the - Seychelles chief of state to President Giscard d'Estaing, as- suring him of the Seychelles' intention to maintain and expand friendly relations. "The measures adopted (by Paris)," said an official communique released in Victoria, "are astonishing because of their mag- nitude, unrelated to the reason alleged: the arrest of one French national, Jacques Chevalereau, implicated in an abortive plot to overthrow the established regime. The attitude of the French cooperation services is at best incomprehensible, and - in any event, is excessive. It is a reason for concern about the quality of the relations which in the past have led to the establisfiment of a bilateral cooperation program that both countries have wanted to maintain on a sound, loyal, frank, and sincere basis, remaining distant from the specter of unwarranted interference and the ties of dependence which are so damaging to the sacred principles of sovereignty and in- - dependence." 32 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200050019-4 FOR OFFICIAL USE ONLY An even more strange and zrteaningful event: Paris decided to recall the very~ seven of its cooperation technicians whose _ relations with the Seychelles authorities were excellent, "cooperation technicians," said the Victoria government, "who personify tfie image we have of cooperation." That is why the Seychelles government then decided to ask the French representative in Victoria to recall six other coopera- _ tion technicians, some of whom had worked to promote their own _ private interests at the expense of the two nations, as well - as the head of the cooperation mission and his deputy, who were requested to leave the Seychelles, as "their presence is a factor in the deterioration of relations between the two nations." But in the entourage of the "eminence grise" of the Elysee, _ Mr Rene Journiac, it was deemed unacceptable that such a tiny country in the Indian Ocean could issue such a challenge to , one oL the imperia].ist powers; that it could charge one of its cooperation technicians, whose complicity has by now been establi.shed by the Seychelles authorities; and that it could - }1c~VE' ~h~ audacity to publicly and officially denaunce the ro)_e ,:~f this French secret service agent in recruiting mer- cenar-ies to destabilize and overthrow the avant-garde regime in victoria. - A to~~ adviser close to the French president commented: "How dare the Seychelles government challenge Giscard's France:" What officials in Paris seem to be unaware of is that the Sel~chelles are not the "empire" of Bokassa, nor the fief of Bongo or of Mobutu. - Of_ co~~rse, Albert Rene's government c~ould not like to throw oil on the flames, and it is trying to negotiate a settle- ment of this dispute. That is why it invited an official French delegation to come to Mahe to examine the documents - found in the possession of the French national and the results of the investigation it has been conducting in the last few - c~~eeks. If Paris rejects this offer, it will be because it has a guilty conscience. But tne Seychelles are not isolated. They have strong and heneficial relations witfi ~many progressive and revolutionary states. And the $7 million that France took back will be 33 FOR QFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-00850R040240050019-4 FOR OFFICIAL USE ONLY largely compensated by countries which value the courage, the determination, and tfie options of the popular regime of Albert Rene. Options which, in the situation of the Indian Ocean today, are of vital interest, and are essential for the progressive camp of the non-aligned nations. COPYRI~HT: 1980 Afrique-Asie 7679 _ CSO: 4400 34 - FOR OFFICIAL USE ONLY I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02108: CIA-RDP82-00850R000200050019-4 FOR OFFICIAL USE ONLY TOGO _ BRIEFS THIRD FIVE-YEAR PLAN--The Togolese Republic is implementing its third 1976- 1980 five-year plan. Planning for the fourth 1981-1985 economic and social development five-year plan was officially initiated on 12 March 1979; the accent will be on the development of agricultural production and on the de- riving industrialization. In the agricultural sector, the emphasis--inten- sification and diversification of production--will be mainly on sugar cane, rice, cotton, palm oil, coffee, cocoa. Agroindustrial development will be - emphasized in the north, in the valley of the Oti and in the south, in the valley of the Mono. Development of infrastructures, notably the road net- work and the reorganization of the financial system will also be co~sidered. [Excerpt] [Paris INDUSTRIES ET TRAVAUX D'OUTRE-MER in French Jan 80 p 24] .JAPANESE DONATION--Recently Japan presented Togo with a don,ar.ion ~f 300 million yen (about ?80 million CFA). The donation is ro be used for the purchasing of vehicles to be used by public health services. [Text] Pr~ris MARCHES TROPICAUX ET MEDITERRANEENS in French 21 Dec 79 p 3622] 5157 _ _ CSO: 4400 35 _ FOR OFFICIAL USE ONLY I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY UGANDA BRIEFS COOPERATION WITH DENMARK--Denmark is considering the possibility of resuming the assistance it rendered Uganda, which was interrupted during President Amin's regime. However it will depend on cor,ditions in the latter countr,y-, according to indications contained in the Danish plan for aid to _ developing countries, which covers the forthcoming 5 years and which was for- mulated by the agency known as DANIDA. It should be noted that the original plan was slightly reduced owing to the country's present difficult economic position. 1Vevertheless, it does establish a sum of 2,255 million Danish Y.roner (0.67 percent of the GNP) for lg8o and 3,080 million kroner (0.79 p~rcent of GNP~ for ~g84. Henceforth, Danish aid will increase at a rate of 0.03 percent per annum. For the next 3 years, it will be principally directed to Tanzania (595 million kroner), and Kenya (264.5 million kroner�) a~ well as to Indi2. and to Bangl~,desh. Nonetheless, a limited amount of _ assistar~ce will also be directed to Botswana, Lesotho, Zambia, Zaire, Malawi, Guinea-Bissau, Angola, Mozambique, Egypt, the Sudan, Sri Lanka and Vietnam. ~TextT ~Paris MARCHES THOPICAUX ET NiEDITERRANEENS in French 21 Le c 79 p 3~27 7129 AID FROM NETHERLANDS--During the month of December, the Tdetherlands agreed to grant Uganda 35 million florins (US~ 18.~+ million) in order to enab]e the latter to straigYiten ou~ its economy. LText LParis MARCHES ~ TROPICAUX Er MED~i'ERRANEENS in French 2~3 Dec 79 p 368~ 7129 ~ CSO: ~+~+00 36 ' - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY ZAIRE FRANCE LOOKS TO ZAIRE'S FUTURE 4 Paris L'EXPRESS in French 29 Dec 79 International Edition pp 45-46 [Article by Christian d'Epenoux: "Zaire: A Reasonable Bet"] ~ [Text] A mean little joke is making the rounds in Kinshasa. One day, the waters of the Zaire River inexplicably flood entire areas of the country. Alarmed, President Mobutu summons his Zairian experts, who, powerless to do anything, find themselves in prison. First the Americans and then the Soviets are called in and, one after the other., give up. Desperate, Mobutu decides to appeal to the former Belgian colonizezs, who quickly return, extremel.y embarrassed, with their reply: "Mr Pr.esident, we are positive: The river is not rising; the country is ~inking!" It is said that Mobutu Sese Seko does not think much of the joke, but it does make many Zairian officials laugh. They are in too good of a position not to see that there is some truth behind the exaggerated caricature. _ "It will take Zaire at least 20 years to get going," one high French offi- cial estimates, "if everything goes well...." It is a vast territory (four _ times r_he siae of France), but infrastructures are poor, equipment is worn out, there are not enough trained and professional people and national unity is still in the embryonic stage in a country where belonging to a tribe and a region is of prime importance. These are all congenital weaknesses that are aggravated by other maladies endemic to modern Zaire; negligence and corruption. There is a single goal: for the poor, to survive; for the rich, to get richer. As a result, everyone is engaged in some kind of trafficking. Everyone wangles, schemes, buys or is bought. No transaction is possible without money under the table. Any application for credit, any procedure that follows the "normal" chan- ~ nels, is filed away and disappears like the wadi in the desert. "It is no longer a sickness," one French expert says. "it is an alter~late economic system." 37 GFOR OFFICIAL USE ONLY I APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL US~E ONLY What else can be done when, with a few rare exceptions, the sense of govern- ment is so dramatically lacking at the top of the pyramici? How is one to exist decentily when official wages, from the top of Che scale to the bottom, are among the worst in Africa? "In Braazaville," one French engineer says, "my helper could buy seven beers - with his daily pay. Here, with inflation, he can scarcely afford one." In Kinshasa, a sack of manioc flour, the basic staple of the Zairian diet used to prepare the daily "fu-fu," costs twice the wage of a hotel waiter. An - army general or a high official of equivalent rank naturally earns 10 to 15 - times more, but he receives nearly 600 francs less than the French interoccu- - pational minimum growth wage! And behind him comes the whole tribe: rela- tives, grandparents, cousins whom people with jobs support. There can only be one salvation: hustling. A government adviser candidly admits: "Nor- mally, with my salary, I could get along for 2 days, and yet, I can always manage to make it through the month!" When a gas quota reaches Kisangani, the second-largest city in the country _ (formerly Stanleyville), local officials automatically skim off a certain amount, which immediate goes to the black market. In a bar in town, a foreman from Bearn rubs his hands together: He has just found three barrels at five times the official price. His Peugeot belches pitifully: The fuel - he buys contains a large portion of kerosene! "But I am happy just to get that!" he says. "Right now, the planes belonging to Air Zaire (which he calls "Air Perhaps") don't always have enough to fly." The project he is working on is financed by France. Periodically, and although the example is often set very high up, President Mobutu gets angry. This year, he sent one of his generals to prison for embeazling the equivalent of about 3 million francs. Two months later, the general was free because he "had what it takes," because the country has no upper-level personnel. Furthermore, can there be any certainty that his replacement would have been more reliable? But at the end of the month, six ministers and nine high officials will have to answer before ParTiament for their "fraud and mismanagement." On the part of the regime, it is an act of courage. It is also one more sign of a democracy gradually emerging from limbo. France Supplies Crutches Piobutu is totally aware of the national faults, as all those who have re- cently appro~ched him agree. He has finally learned the repeated lessons of the past: the two alerts in Shaba, the centrifugal temptations of the ~ provinces, the devastating ef.fects of the formidable national inertia. Even if he did not want to, he could not avoid it. Since the Kolweai drama in May 1978, he has been placed by his protectors and financiers Ameri- can, Belgian and French in a merciless iron yoke. The new masters of - 7.aire are the niggling auditors of the International Monetary Fund and the World Bank: no money without a proper receipt. One is thereiore stingy 38 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL I1SE ONLY with government employees and the army, the unstable pillars of the regime which give it lackluster support. It is a vicious circle that never ends. Collusion and inertia are not exclusively Zairian poisons; far from it! What is tragic is that they are undermining a country that is too young and _ fragile, that is pathetically lacking in antibodies. France supplies the crutches of a type of cooperation that is not always adapted to the needs of the patient, but which does have the merit of being there. In one year, adding all forms of aid together subsidies, tech- nical assistance, special loans its aid has increased three times over. - It can mainly be seen in mining research, education, telecommunications, agricultural development and the air and road infrastructures. Paris has decided to make long-term investments: Zaire's potential is immense. Well- managed, it could be one of the powers on the continent. But one must first of all take care of i~�nediate needs. "Last year, Kolweai shook the country," says Col Michel Franceschi, head of the military coopera- tion mission. "But it has already gone back to sleep. We are there to stand guard." There can be no doubt about it: The French soldiers learned their lesson from Shaba. In June 1978, there were 70 of them; now there are 125 in charge of recruiting and training the Zairian Army. Twenty Chinese officers handle the commandos, with varying degrees of luck. The F~gypti~~ns take care of the artill~ry and the French work with the air force, ~.Le arr.~ored troops and the paratroopers. It is a thankless task. The Zairians could natu.rally become excellent sol- diers, but how is one to convince these poorly paid, unmotivated men, who every ciay rub elbows with overfed officers, that they must be willing to die For their coiintry? "We must do the impossible," one airborne officer says. "Moral chats" are therefore organiaed on the subject of "the nation." Here and there, the seed takes. By dint of repetition, the lessons sink in. But even when the spirit is willing, the flesn is weak! Trained in combat, - rhe troops will hold firm, but left to themselves, it is "panic." But in this country that has seen so many upheavals, the threat is sca:.cely ,~one. It could come from a revolt of the poverty-stricken: There are 3 million people crowded together in Kinshasa. It could come from a tribal quarrel in Kasai, or once again, from Shaba. Western rivalries over the mining strongbox of Africa and separatist currents make up a dangerous cocktail. The French clash with the Belgians, who occupy key posts in GECAMINES [General Ouarries and Mines Company], which has a near monopoly over mining. The Americans, who want to increase their influence in Shaba, push Mobutu toward a"liberaliaation" deemed perilous by Paris. Dilapidated Equipment In Lubumbashi, Co:ionel Vromme, a Fleming of the old school, tries to deploy a protective curtain around this sensitive region. With his nine Belgian 39 FOR OFFICIAL USE UNLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY officers, he is training the Zairian 21st Mechaniaed Brigade. But his , equipment is falling apart and he is still awaiting a radio connection with the scattered units standing guard at the Angolan border. � There a--e infiltrations and weapone cache~, but no one can ever meaeure the exact threat. "We are more afraid of a limited raid than a wide-ranging - attack," he eays. But it would have the same effect on these Belgian or French "expatriates," now fewer in number, who have remained behind or returned to "keep things - going." In Lubumbashi, Likasi and KolweLi, everyone agrees: "This time, they won't take us by surpriae." Through them, France is also trying to collect the dividends from its mili- tary interventions and technical assistance. It wants to be present in Shaba, send its technical assistants there and invest more. For the first _ time, "under the Americans' very nose," Paris is getting ready to enjoy majority holdings in the largest copper mine in the world: Tenke Fungurume. rrance is running risks but it is making a reasonable bet on the future, _ hoping al.l the while that Zaire will one day succeed in shaking off its old f demons! COPYRIGHT: 1979 S. A. Groupe Express - _ 1.1,464 CSO: 4400 40 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY ~ ZAIRE FINANCIAL STABILIZATION MEASURES - Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 28 De~ 79 p 3685 CArticle: "Severe Financial Stabilization Measures"7 CText] In an allocution broadcast from Gbadolite on 25 December, President Mobutu Sese Seko announced the withdrawal from circulation of the 5 and 10 zaire bills which are no longer legal tender effective 25 December in the evening. These bills, President Mobutu added, will be replaced by new ~ bills, the technical specifications of which will be determined later on _ by tr.e Bank of Zaire. , A11 Zair?an and foreigners residing in Zaire were given three days to ex- - change them at banks. The country's borders were closed to circulation, a:~~3 fli_ghts over Zaire's territory were forbidden until 31 Decetnber. The exchange is limited to a total of 3,000 zaires per person for individ- uals, to 5,000 zaires (50 percent of which have to be paid into a bank account) for small and medium size businesses, and to 20,000 zaires for ~arge ccmpanies (who also must deposit 50 percent of this amount into a - bank account). - F'inally, accounts payable at sight will be liberated to the extent of 10 ; percent during a first stage; the remainder will be liberated pro,gressively ; as require3 by the country's economic needs. ' According to the Zairian head of state, these measures are intended to neutralize the excess cash flow circulating outside the banks, and thus , to stabilize the Zairian currency which had dropped considerably on foreign i financial markets during the past few months. They follow a series of ~ other measures already taken by the Zairian government and which included ~ a rearganization of public finances (important reduction of the budget deficit for 1980) and the establishment of a"stabilization program" in cooperation with the International Monetary Fund. Finally, President Mobutu indicai:ed that regulations concerning the use of bank checks would be reinforced to encourage the people to use standard means of payment (checks and bank transfers). COPYRIGHT: Rene Moreux et Cie Paris 1979 9294 41 ~ CSO: 4400 , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY ZAIRE AC~OUNTING FOR MINISTERS' FUNL~S Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 28 Dec 79 p 3686 CArticle: "Ministers and High Off~cials Called to Account"7 _ CText7 Zairian ministers and high officials should no longer be the ~iacred cows they have been for too long. Ministers and directors of Zairian public services and state-owned companies have now been called to account by the people's representatives through interpellations which took place during the budgetary session of the parliament. Renewing with a custom which had been somewhat forgotten since November 1978, government officials and officials of state-owned companies will have to explain publicly the management errors discovered in the past few months by the parliamentary inquiry commissions. These commissions were created last July to ensure that the management reerganization and the financial stabilization of the country, two conditions required for the implementation of the stabilization program, would not remain a dead letter. In addition, by allowing the parliament to play its role to the fullest extent provided by the constitution, President Mobutu Sese Seko is answering _ the wishes of friendly cauntrias, the United States in particular, who had promised financial help to Zaire if the economic and political structures were made more democratic. - The key ministries involved in managinq the plan (Planning, Economy, Finances, Industry and Trade) are the first to be affected by this measure, which-- according to AFP--is not surprising when one knows that the main Evils affecting Zaire and which have been denounced on several occasions by the head of state are corruption, negligence, fraud, misappropriation of funds - and excesses of all kinds. _ = The members of the inquiry commissions, for instance, were surprised when several large ministry departments declared that they had had no receipts, or only one to three percent of the amount provided for in the 1979 budget, while their operating expenses were increasing considerably during the same period. 42 FOR OFFT_CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY While the interpellations of tY?e ministers and public service directors are awaited with interest by the people, many Zairian personalities and foreign observers in Kinshasa feel that the political questions raised by these debates might be the prelude to certain changes in the government team. The interpellations are scheduled to start on 27 December, and will be broadcast and televised directly from the national assembly. To start with, _ six ministers and nine public service and state-owned company officials are involved. Among the ministries involved are the ministry of investments which admin- isters 134 state-owned companies, and the ministries of planning, environ- _ ment (no receipts), post office and telecommunications (poor management), mines and economy. Public services such as Air-Zaire airlines and the Zairian bank are taken - to task for thei~ poor management, while several national companies are accused of fraud involving diamonds (MIBA CBakwanga Mining Company7 and the private company British Diamonds), cobalt (SOZACOM CZairian Company for the Marketing of Ores7), gold (Kilo-Moto) and coffee (Zairian Coffee Office-- OZACAF). COPYRZGHT: Rene Moreux et Cie Paris 1979 9294 CS0:4400 ~ 43 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4 APPROVED FOR RELEASE: 2007/02148: CIA-RDP82-44850R000200054419-4 FOR OFFICIAL USE ONLY ZAIRE BRIEFS CHINESE AGRICULTURAL COOPERATION--The People's Republic of China and Zaire have signed a draft agricultural cooperation agreement on 18 December in Kinshasa. According to this draft agreement, the Chinese government has undertaken to send a delegation of agricultural experts to Zaire; their mission will be to promote and develop the cultivation of rice and vege- tables near urban centers. [Text] CParis MARCHES TROPICAUX ET MEDITERRANEENS _ in French 28 Dec 79 p 36867 9294 SOVIET MERCHANT MARINE COOPERATION--The first session of the joint Zairian- Sovietic commission on maritime navigation was held in Kinshasa on 5-8 De- cember. The Sovietic delegation was headed by Mr Nediak from the USSR ministry of the navy; the Zairian party was headed by the secretary of state for transports and communications, Mr Kini Madiata Mbumba. CText7 - CParis MARCHES TROPICAUX ET MEDITERRANEENS in French 28 Dec 79 p 3686~ 9294 CS0:4400 ~ . END 44 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/08: CIA-RDP82-00850R000200050019-4
Agency
About CIA
Organization
Director of the CIA
CIA Museum
News & Stories
Careers
Working at CIA
How We Hire
Student Programs
Browse CIA Jobs
Resources
Freedom of Information Act (FOIA)
Center for the Study of Intelligence (CSI)
The World Factbook
Spy Kids
Connect with CIA
Search CIA.gov Site Policies Privacy No FEAR Act Inspector General USA.gov Site Map