JPRS ID: 10164 SUB-SAHARAN AFRICA REPORT

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APPR~VED F~R RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 FOR OFFICIAL USE ONLY JPRS L/ 10164 4 December 1981 Sub-Saharan Afric~ Re ort p FOUO No. 751 FBIS~ FOREIGN BROADCAST INFORMATION SERVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000400480018-0 NO'~E JPRS publications contain information.primarily f~om Poreign newspapers, periodicals and books, but also from news agency transmissions and broadcasts. ~Materials from'foreign-language sources axe 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 brief, indicate how the originaZ informa.tion was processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfam3liar names zendered phonetically or transliterated are enclosed in parentheses. Words or 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 at.titudes of the U.S. Government. COPYRIGHT LAWS AND REGULATIONS GOVETtNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQLTIRE THAT DISSEMINATION OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE OiVLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-40850R000400480018-0 F'OR OFFICIAL USE ONLY JPRS L/10164 4 December 1981 � SUB-SAHARAN AFRICA REPORT FOUO No. 751 CONTENTS CHAD Briefs Libyan Help in Army Training 1 Possible Foreign Aid Resumption 1 EDF Cotton Finar,_ ing 1 CONGO Major Trends of 1982-1986 Development Plan Noted (MARCHES TROPICAUX ET MEDITERRANEENS, 2 Oct 81) 2 13riefs IDA River Transport Credit 5 CSC's Restoration of Discipline 5 Students Returning to Sahool 5 - GAMBIA Establishment of Agricultural Development Bank Reported (I~7ARCHES TROPICAUX ET MEDITERRAiVEENS, 16 Oct 81) 6 IVORY COAST French Expatriates: Their Importance, Cost Analyzed (JEUNE AFRIQUE, OCt 81) 7 - Valuable but Expensive, by Jean-Claude Hazera Opinions of Ivorian Cadre MADAGASCAR Mitterrand, Ratsiraka Inaugurate New Re].ationship (Simon Malley; AFRIQUE-ASIE, 12 Oct 81) 13 Austrian Loans To Fund Distillery for Alcohol Fuel From Sugar (MARCHES TROPICAUX ET MEDITERRANEENS, 25 Sep 81) 16 - a- [III - NE & A- 120 FOUO] FOR OFF'iCIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400480018-0 FOR OFFICIAL USE ONLY New Fertilizer Plants To Satisfy Domestic Needs (MARCHES TROPICAUX ET N~DITERRAN~ENS, 16 OCt 81) 17 Briefs Soya Enterprise 19 MAURITIUS Closer Business Cooperation With Reunion Discussed (Dorothee Aurban; AFRIQUE-ASIE, 12 Oct 81) 20 NIGER Briefs BEI Power Plant Loan 24 - Educational Statistics 24 EDF Road Financing 24 SENEGAL Briefs ' SAED's Rice, Tomato Production 25 TANZANIA Briefs New Internal Trade Regulations 26 EDF Water Supply Grant 26 ZAMBIA Briefs Increase of Criminal Activity 27 Automobile Plant Closure 27 - b - ' FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 FOR OFFIC[AL USE ONLY CHA,D BRIEFS LIBYAN HELP IN ARMY TRAINING---Quoting an informed source in Yaounde, the AFP recently - announced that Libya had agreed to help txain and finance Chad~s Integrated National Army (ANI) under an agreement reached with the authorities of Ndjamena on 17 August this year in Tripoli. According to the terms of this agreement, Libya is reported to have made a commitment to help train 2,000 men a year over a 5-year period (a to- tal of 10,000 men). Tripoli will also help set up the "governing bodies" of the In- tegrated National Army and all the structures of the future Chadian Army "in all spheres." It should be noted that the same source says that although many Chadian troops are stationed in the towns of Abeche, Biltine, Guereda, Iriba and in neighbor- ing garrisons, that area of the national territory is now under the "almost exclusive and miiitary control of the Libyan Army. Some 10,000 Libyan troops with an "impres- sive" array of equipment are reported to be established there on a permanent basis. Finally, it is thought in Yaounde that the fighting, which has taken place in recent weeks between Chadian and Libyan troops on the one hand and Hissein Habre's Northern Armed Forces on the other, has now stopped. However, the Ndjamena authorities are said to have decided to send "substantial" Chadian reinforcements, mostly troops, to that region because they expect further clashes. [Text[ [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874, 16 Oct 81 p 2635] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 POSSIBLE FOREIGN AID RESUMPTION--It is reported that several financial backers who are likely to resume sending aid to Chad are planning to hold a meeting in Paris at the end of October or beginning of November. In addition to France with its bilater- al aid, these backers are the EEC, the UNDP [UN I2evelopment Program], the ADB [Afri- can Development Bank] and the World Bank. One of the main items in their agenda is said to be the reconstruction of Nd~amena. [Text] [Paris MARCHES TROPICAUX ET MEDI- TERRANEENS in French No 1874,16 Oct 81 p 2635~ [COPYRIGHT: Rene Moreux et Cie Paris 1981) 8796 FDF COTTON FINANCING--A grant of 9.6 million ECUs [European currency unitj .from the Eurapean Development Fund [EDF] is going to a program to support Chad's cotton farm- ing production. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1$74. 16 Oct 81 p 2635] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 CSO: 4719/44 1 ~ FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 FOR OFFtCI~LL USE ONLY CONGO MAJOR TRENDS C~ 1982-1986 DEVELOPMENT PLAN NOTED Paris MARCHES TRfJPICAUX ET MEDITERRANEENS in French No 1873,2 Oct 81 p 2510 [Text] The authorities of the People's Republic of the Congo are preparing the 5-year - developcr~ent plan f or the 1982-1986 period. That plan and a new Investment Code are scheduled to be adopted at the end of the year by the National Assembly. At this stage, on]y the major trends of the plan have been decided. These trends are based on t.he main objective of the recovery and redevelopment of the ,~ational territory, particularly in the f ollowing sectors: transportatio,~, telecamnunications and infor- mation, energy infrastructure and commerce. Regarding transportation, priority must be given to all domestic transportation links to facilitate the development of trade inside the regions and between the regions with a view to expanding the d anestic market. Steps in the sphere of telecommunications and information will be direated to improve the postal service and to have a telephone, radio and television network covering the entire national territory by 1980 [sic] for a rapid circulation of information which will make it possible to implement programs of popularization in the fields of agri- culture, health education and culture. The Anergy inf rastr.ucture must be canpleted to bring electricity into all the district capitals of all the regions to promote local productive activities and to improve the quality of life of the rural population. Since the main wheels of the economy are at present under ~he control of foreign capital--a situation where the shortcomings of the Congolese econ any are canpounded by inflationary pressure and excessive concentration of unproductive commercial acti- vities--one of the objectives of the 1982-1986 plan is to go ahead with the Congoli- za;.ion of commerce. To nationalize the key sectors, it is necessary for the already created state enter- prises to become adequately structured, which is not the case right naa. This is why the program adopted at the end of March 1981 deals with the f.ollc~wing points: --Development of 14 state enterprises presenting relatively sound conditions of organi- ~ation, management, finances and environment and which offer possibilities of expansion. 2 _ FOR OFFICIA?L USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 FOR OF'FICIAL USE ONLY --Straightening out 36 state enterprises which are facing problems of organization~ management and environment. ~ --Reassessing the situation of 14 state enterprises which are facing problems in the sphere of markets and technology to bring them to redirect their activities or even to eliminate them. Before drawing up a new commerce code and to revise commercial regulations and practices, control over businessmen will be reinforced by means of more specific and c~sistent regulations and with more significant means, all of this to achieve the Congolization of commerce since one of the priorities of the 1982-1986 plan is to place commerce into national hands. For that purpose, the follawing guidelines have been agreed upon: --Eventual nationalization of key sectors, particularly in the big import branch. --The awarding of state markets to enterprises of the national private sector and the awarding of processing activities to these same enterprises. ~ The awarding of business monopolies in sane sectors yet to be determined to enter- prises of the ~iational private sector. �--More Stcict conditions under which foreigners are all aved to engage in commercial activities with the requirement that they deposit a bond which will be paid into a Commerce Guarantee Fund, to which non-national merchants are already contributing. in April 1981, the African Development Bank (BAD) gave a line of credit of 1 billion CFA francs to the National Development Bank of the Congo (BNDC) to encourage the creation of small and medium-size industrial enterprises and cottage industry enter- prises to process local products. Total investment per unit must amount to between 40 and 150 million CFA francs with an initial investment of at least 20 percent of the total investment. The projects must be submitted for appraisal by the minister of plan. The BAD's contribution reinforces the m?ans of action available to public authorities to reorganize local enterprises encouraging them ~o bring an adde~ value to the prcx.'ucts. Hoat~v~?', the Congolese a~.ithorities have xeaffirmed their wish to cooperate with the foreign private sector in the sphere of commerce. One of the measures adopted prior to preparing the 1982-1986 plan was to grant a credit of 300 million CFA francs to the pre-cooperative groups operating in the spheres of agricultural and livestock production and rural cottage industry. The~outlined 1982-1986 plan gives top priority to oil as a source of income. Oil will provide 70 percent of the 1981 budget receipts and in 1980 it accounted f or more _ then 90 percent of the Congolese exports. Oil production is constantly increasing: 2.3 million tons in 1979 and 3 million tons in 1980. Production for 1981 is expected to amount to 4 million tons, rising to 5 millior? tons in 1982 and to 6 million tons in 1983. These expected increases presuppose the exploitation of new deposits. 3 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400480018-0 - FOR OFFICIAL USE ONLY - But oil production is in danger of slowing dawn after 1983 and the C~golese authorities are alrea~3y :naking plans for the post-petrol period by having new thoughts about the problems of more traditional resources, particularly timber. During the 1980-1990 decade it is essential to boost the exploitation and industrialization of the north of the Cong o taking advantage of a current shortage of the main tree sp~cies which can only be found in sufficient quantities in the Cong o and in Central Af rica. Eff orts must be urgently made to improve the channels to get the production out of the area. The purgose is to make timber again as important as it should be for the national econ any and to ensure the after-petrol period. To achieve this objective, the timber , industry must be x.eorganized an3 there must be large investments in basic infra- , structures and to help the operators. In this respect, it seems that the monopoly of the Congolese Timber Office (OCB) in the field of export is an obstacle to the deve].opment of production. Difficult financial arbitrations will have to be made between naw and the end of 1981 and the 5-year development plan for the 1982-1986 period will assume its final shape, be calculated and published before the end of becember 1981. COPYRIGHT: Rene Moreux et Cie Paris 198]. 8796 CSO: 4719/143 4 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000400080018-0 . FOR OFFr,~IAL USE ONLY CONGO BRIEFS IDA RIVER TRANSPORT CREDIT--The International Develcpment Associati�an (IDA), an affil- iate of the World Bank, recently extended to the Congo a$17-million credit (14.6 millions worth of special drawing rights) to help finance a$28-million project for the impravement of the country's ri.ver transport facilities, mainly to help develop its timber industry in the north of the country. These river facilities also serve the south of Cameroon and the Central Afr�ican Republic. Transport equipment sched- uled to be supplied include 16 barges, 2 push tugs and 1 tugboat. Data processing equipment and consultant services will be supplied to the Trans-Congolese Communica- tions Agency which operates a fleet of freighters and passenger boats over a distance of 1,120 kilometers on the navigable sections of the Congo and Oubangui rivers. _ [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS ir~ Frenc~ No 1874~.16 Oct 81 p 2537] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 CSC'S RESTORATION OF DISCIPLINE--The Confed~ral Executive Commission of the Congolese Trade Union Confederation (CSC) has decided to restore "authority and discipline" at all levels. In a communique published in Braxzaville, on 8 October, the CSC states that i~ has pointed out the need to revive sanctions in accordance with the existing regulations, the need to reintroduce a close relationship between wages and "actually perforn:ed and well performed" work, to strictly observe working schedules and to organize the channels through which the directives issued by the political leadership are circulated. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874,16 Oct 81 p 2637] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 STUDENTS RETURNING TO SCHOOL--The 1981-1982 school year has started throughout the Congo. A message from the Congolese minister of national education, Antoine Ndinga Oba, states that almost ha'lf of the Congolese population has attended school and tYiat for the current year the number of schoolchildren and students is expected to be 580,000. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874?16 ~ct 81 p 2637] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 CSO: 4719/146 5 FOR OFFI~[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/42/09: CIA-RDP82-00854R000440080018-0 FOR OFFICIAL USE ONLY GAirIDIA ESTABLISHI~IENT (7F' AGRICULTURAL DEVELOPMENT BANK REPORTED Paris MARCHES TROPICAUX ET MEDITERRA2~ENS in French No 1875., 16 Oct 81 p 2623 (TextJ The Gambian Parliament held a special session last 24 and 25 September. It adopted, among others, a law concerning the establishment of the Agricultural Develop- ment Bank. It appears frcin the reports made on that occasion that the Gambian Government attaches great importance to agricultural development and to food production in particular. _ The year, 1980-1981 saw the planting of 21,000 hectares of rice, making possible tne production of 21,000 tons of paddy, which are in addition to the 12,000 tons of ir-. rigated rice f or the same period. With regard to peanut~, because of unfavora~le climatic crnditions, a drop was noted in production, which may have been the lowest in 30 years: 45,000 tais only were harvested. Cotton production for the year 1980-1981 registered at 608 kilograms per hectare over 1,000 hectares. The government intends to continue expanding and improving production. Cattle marketing is estimated at scme 2.3 million dalasis, of which 1.5 million are fran export. Nigeria has signed an import agreement with Gambia for a 5-year perial, during which 5,000 head of cattle wil~ be exported to Nigeria. As �or fishing, the development project f or the fishing industry is under way, with European Fund financing. Japan has just granted a subsidy for the acquisition of a deep-freezing industry, small boats, outboard motors and accessories, as part of the effort made in this sector. The new bank is thus coming at an opportune time. With a capital of 3 million dalasis, it will operate in Banjul as well as in the provi.nces.. It will be involved in the agri- cultural, fishing and cattle marketing fields. COPYRIGHT: Rene Moreux et Cie Paris 1981. 9434 CSO: 4719/131 ~ 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 FOR OFFICIAL USE ONLY IVORY GOAST FRENCH EXPATRIATES: THEIR IMPORTANCE, COST ANALYZED J Valuable but Expensive Paris JEUNE AFRIQUE in French No 1083, 7 Oc[ 81 pp 34-38 - [Article by Jean-Claude Hazera: "Can We Get Along Withc,ut the 'Toubabs'?"J [TextJ What have the French contributed to Ivory Coast7 Usual answer: "It works!" . The contrast with Angola or Mozambique of today, for example, shows that the - former colonizers do an effective job of assuring the continuity of a whole sezies of systems: public services, administration, trade, banks, etc. Add to this the economic liberalism displayed by the government and this government's stability and you have the explanation why foreign capital is more ready to invest in ivory Coast than elsewhere. It can also be said that the former calonizing country developed cadre, though this point merits criticaZ evaluation. One Frenc'hman said to us; "I wonder whether, by exercising the leadership toe long, we are not preventing the Ivorian cadr? from making the mistakes which provide the experience." But if their presence has contributed t~ creating the conditions for a strong economic growth, the French have not been the prima~y factor, no more than they are responsible for the current economic slow-down. Yresident Houphouet-Boigny's main economic principle, which makes his country fundamentally different, is the maintenance and development of agriculture. He addresses his speeches primarily to the peasants. Ivory Coast's growth is primarily in the agricultural sector, which contributes the bulk of .exports. The French still play an important role in this sector: economic advisers to establish the stabilization fund and scientific experts in the agricul- tural research institutes. The impact of this research can be very great. But it is not Frenchmen who manage the plantations, except in very special casES (lumber, rubber...). The sweating farmers in ivory Coast are in reality other foreigners, ~~oltans or rlalians, supervised by Ivorian planters. Resentment In the administration certain Frenchmen are, although discreetly, more than advisers. Several are directors of ministries or departments. However, the Ivory Coast has never objected to peopl~ from other African states s~rving as ministers. Anyway, it is Houphouet-Boigny who runs the country. 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400480018-0 FOR OFFICIAL USE; ONLY To answer the question: "Do the French run the Ivory Coast?", one must concen- trate on the relations between the president and the former colonizer. Under de Gaulle these relations reflected great mutual esteem; under Giscard lack of under- standing led to resentment. Ur.der Mitterrand, relations seem again to be ravored - by the personal friendship between the two head~~ of state. Tf Ivory Coast wise to depend on such a high proportion of workers imported from France? To find out, we need to study how much of the wealth goes to the French. Their status is not exactly that of an African worker in France living in a maid's room or a home. When one sees the villas of Cocody, the cars, the servant boys, the chauffeurs, one cannot help wondering--w~atever one thinks about the legitimacy of this way of life--how much of a burden it is on the country's economy. At any rate, some Frenchmen say very clearly: "Otherwise we would not come." A curious thing: the Ivorian authorities do not seem very interested in this overall economic evaluation. The Central Bank reportedly did an estimate of out- going funds attributable to the French, leading to the conclusion that their presence is expensive; but not all regard the analysis as convincing. In 1975, the expatriates, representing 5 percent of the work forces received 40 percent of gross industrial salary, while the Ivorians representing 47 percent, had to settle for 37 percent and the non-Ivorians, the other 47 percent, for 23 percent. This i.ilustrates the following statement from the draft plan for 1976-1980: "One of the major handicaps in industrialization is indeed the extra cost to factories through using expatriate staff." Moreover, managers readily admit it. It is one of the causes of the high price of Ivorian'products. Without claiming to calculate to the nearest penny the portion of the national wealth received by the French, it is nevertheless possible to give a rough estimate: at minimum one-tenth, with 20,000 workers receiving an average monthly income of - 708,000 Fr CFA (Fr fr 14,160), perquisites included (houses, etc.) 7.taelve months would amount to 10 percent of a GNP of about 1.7 billion Fr CFA, not counting the profits from 3.nvested French capital. "Ivarization" C~ne can conclude that such a drain is not serious insofar as the wealthy stimulate trade, be they French or Ivorian. Moreover, the income of the Ivorian upper middle class i.s no lower than that of the French. It would nevertheless be interesting to know the cost in foreign exchange. That is, to know how much of their salary they send to France and how much they spend in ivory Coast to pay for import~d products (cars, household furnishing, wine, cheese, etc.)] The range of French products offered by a supermarket in downtown Abid~an inevitahly makes one wonder: how much of th~ precious foreign exchange earned by the sale of coffee and cocoa leaves again in this way? Lacking an analysis, we can only recall that the chronic prob- lem of Ivorian foreign trade remained a regular deficit in the balance of payments despite a positive balance of trade. Nevertheless, it should be noted that the - trade surplus is not duQ to France, with which the imbalance has always been to the detriment of Ivory Coast. A deficit of 33.3 billion Fr CFA in 1977; and more - than 85 billion in 1980. Could Ivorians do without the French then? Could "ivorization" be speeded up? There are a multitude of arrangements, regulations, and proposals. How are they 8 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 FOR OFFICIAL USE ONLY ~ applied? From absolute zero in 1960, the Ivorian share of industrial capital reached 45 percent in 1980. In principle, nc+ foreigner can work without a work contract in proper form and without the approval of the Ivory Coast Labor Office (ICLO). In practice, there is no control or enforcement to ensure that these provisions are taken seriously. Unemployment Althougrc the major corporations prudently adhere to these regulations, most of the artisans and other small entrepreneurs who came to seek their fortune during the coffee boom paid little attention to them. Reportedly, Bretaon was even seen to disembark with his huge tractor-trailer intending to go to wo~k immediately with- out asking anyone, though the transport sector is in theory closed to foreigners. He was apparently granted an exception. - Only the "ivorization plans" for ehe more important enterprises seem worthwhile. The formula is flexible: the Ministry of Labor simply requests the enterprise to itself plan the "ivorization" of a position and checks again on the effective date. The proportian of European expatriates in industry is thus declining slowly (today it must be about 4 percent). The pressure would not become stronger with- out a political decision at the highest level. And we are not yet at that point. _ However, recently a new element has been adding some immediacy to the problem. It seems that for the f irst time some Ivorian cadre are unemployed. They have even formed an association. The reasons for this unusual phenomenon are easy to grasp. The ecoriomic stagnation is reducing hiring. Some Frenchmen have left the r_ountry because of cutbacks in personnel or redirection of activities to other countries: Cameroon, Gabon, Nigeria. This is true particularly in public works. A number of "small whites" who had been attracted by the housing boom (masons, carpenters, plumbers, etc.) have left. Others have got into diff iculti~s and found themselves in prison for minor swindles. At the same time, an increasing number of Ivorians are leaving the university, diploma in hand. Also, the dis- solution in June 1980, because of inefficiency, of 29 out of the 36 existing - r.ational corporations has put many Ivorian cadre out on the sidewalk, especially _ since these corporations often had swollen management staffs. Both the employers, particularly the French directors of enterprises, and the authorities take a similar attitude to this whiff of unemployment. No one seems ~ to dramatize or be afraid of a growth in the phenomenon. No one seems to think that tYie reaction, as concerns the French, would go beyond a mild xenophobia. The - Lebanese risk greater problems, it is sometimes thought. The development of a degree of insecurity, blamed on the Voltans or Malians, als~ directs attention to other foreigners. Frustrations However, neither side seems to want to allow the cadre unemployment problem to - deteriorate. In a politically very stable country like Ivory Coast, where there is no voice of an organized political opposition, the students are no doubt the primary source of potential trouble. Thus it is unthinkable to allow the develop- ment among them of too many specific frustrations, which would be all the more 9 _ FOR OFFICIAL iJSE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPR~VED F~R RELEASE: 2047/02/09: CIA-RDP82-40854R000400080418-0 ~ FOR OFFiC1AL USE ONLY . violent because the young graduates feel obligated to fulfill all the hopes that their families have placed in them. In an effort to r.educe this unemployment, the labor minister met with industrial - leaders at the end of March 1 981 to present the problem and ask them to try to hire the 600 cadre then unemp loyed. However, both sides pointed out that the majority among them had train ing which was saleable with difficulty in the Ivorian labor market: there were, f or example, many degrees in literature and modern - languages. Yet "ivorization" of teaching in these sub~ects has virtually been - discontinued. It is in mathematics and sciences that personnel are lacking and it is these subjects that the majority (74 percent) of French instructors are teach- ing. Among the unemployed are also some holders of degrees in, frankly, "exotic" disciplines, for example crimino~ogy. One official said: "If only we could have _ made him a police commissioner!" - Inefficiency The industrialists concluded that in the final analysis only 150 among them would be suitable for specific ,job s in trade and industry, and depending on an inventory, at that. It was necessary t o exclude those "graduates" with false diplomas (a common traffic which Ivory C o ast authorities are trying to eliminate), and those who have declared themselves unemployed because they want to change ~obs, while already employed. How is the situation likely t o develop in the longer term? It is hard to believe that Ivory Coast will soon suffer from an excess of graduates, as has been the case for several years in wea lthy countries. UNESCO's latest statistics annual reports that in 1977 there were still only 133 students per 100,000 Ivory Coast inhabitants, compared to 282 in Gabon, 366 in Morocco, 368 in Algeria, 454 in Tunisia, and 1,368 in Egypt. But the education must also respond to the needs, and the ~obs offered must be acceptable to the young graduates. One can point to at least two problems in this regard. First, Ivorians seem to be little attracted to teaching, particularly scientif ic subjects, although it is a field in which there are Fren chmen to replace. Secondly, the generation which is coming of age to seek empl.oyment will be less favored than its �predecessors by the shortage of cadre. Gone is the time when one could be a direcror general or ambassador at 30. An off icia 1 close to the president told us: "Our ambassadors are 40. We are not going to retire them in order to appoint young people." And in the private sector7 Are the French really ready to yield their positions? For a clearer view, we asked French managers and staff what they thought of their Ivorian colleagues. The fir s t conclusion: they all agree in saying that the French are expensive and must be replaced as far as possibl~ with Ivorians. Second conclusion: they have reservations, implicit or explicit, about the eff iciency of Ivorian cadre: production ha s dropped in a certain factory where an ivorian fore- man has replaced an expatria t e; in the banking sector--the sector most affected by - " ivorization"--it has been necessary to readmit a large proportion of expatriates; in another company a young Ivorian engineer has rapidly alienated all the personnel of the factory...By digging a little, one learns that the reservations of the French are quite precise and easy to describe. 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPR~VED F~R RELEASE: 2007/02/09: CIA-RDP82-00850R004400080018-0 FOR OFFICIAL USE ONLY - First criticism, which echoes a warning often found in the speeches of Felix Houphouet-Boigny: the reactions of the employee. Some new cadre have the impres- sion that once they have their diploma in hand everything is done. They have only to enjoy their sinecure. Fear Second criticism, which seems fundamental: difficulty of supervision. According to the French, the Ivorian cadre reportedly are always afraid that the s~~bordinate may be a brother, cousin, or friend of someone powerful who could harm them and their family. We can thus better understand what is often the role of the French cadre: a buffer between ivorians. Several Frenchmen have told us, in effect: - they know I am neutral, that I act in relation to the interests of my management or my enterprise, and that I have no ulterior motive, ethnic or political. However, young Ivorian cadre do seem to handle better the problem of supervision if they have been trained in the Ivory Coast, rather than spending several years in France. We have been told that there is nothing worse than the work relations of a young cadre assuming responsibility after having been completely cut off from Ivorian society. A final criticism--pertiaps the most serious consequence of a presence as large and prolonged as the French--the Ivorian cadre are expensive. "They want to be paid like the expatriates they are replacing and even to benefit from all that the French have in addition to their salary: expatriation bonuses, housing, travel to France, car..." The new empl~yees, particularly, are considered expensive. "They want immediately the lifestyle that their family expects of a cadre," the French explain. In an economy which has great difficulty in being competitive in other than agri- cultural products, such a high requirement by the cadre is a serious handicap. Generally, it is to be feared that in tihe end the most negative effect of the French presence may be to leave in the spirit of the Ivorian elite an excessive tendency to imitate everything French. It is quite understandable that Ivorians of ineans find air-conditioners very attractive. It is not only whites who feel the heat. But the day when ivorian cadre will consider, like their French ~ colleagues, that there is no happiness on earth without a camembert or a good bot- tle c~f Bordeaux, there will be little left of the exchange earnings from coffee and cucoa. COPYRIGHT: Jeune Afrique ~RUPJIA ~_981 ~ Opinions of Ivorian Cadre � Paris JEUNE AFRIQUE in French No 1083, 7 Oct 81 p 37 [Text] With some 3,900 technical advisers (precise figure 3,976 in 1980, or one- third of all French advisers throughout the world), Ivory Coast is the "largest consumer" of French technicians in Africa. Far behind it come Senegal (1,300) then - Cameroon, Gabon and Madagascar with 700 each. Among the technical advisers sta- tioned in ivory Coast, teachers are in large majority (80 percent), and technical training specialists predominate. 11 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 FOR OFFICIAL USE ONLY What do Ivorian cadre think about this? A po"11 by Marcomer-Gallup International for JEUNE AFRIQUE ECONOMIE, published in the first issue (October) of that monthly reveals that Ivorians believe the (strong) presence of "cooperants" to be still _ necessary in the technical and scientific field: 55 percent of those polled (of a sample of 112 cadre in Abidjan and Bouake) gave this opinion. But the technical field goes far beyond teaching: it includes the entire scientific and technologi- cal sector. That is, in addition to teachers, the foreign operational technicians-- both researchers and engineers i.n industry or the latest technology--are still "wanted" in ivory Coast. On the other hand, the presence of "cooperants" is henceforth regarded as "undesir- able" in the administration: 32 percent of Ivorian cadre favor their departure, - and only 10 percent want them to remain. This attitude shows at least a serene frame of mind toward the shortages of Ivory Coast: foreign technicians are still wanted, but henceforth Ivorians can administer themselves. COPYRIGHT: Jeune Afrique GRUPJIA 1981. 9920 CSO: 4719/125 12 FOR QFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 FOR OFF[CIAL USE ~NLY MADAGASCAR - MITTERRAND,RATSIRAKA INAUGURATE NEW RELATIONSHIP - Paris AFRIQUE-ASIE in French No 250, 12 Oct 81 pp 13-14 [Article by Simon Malley: "Ratsiraka in Paris: What Really Happened"] [Text] It was a Didier Ratsiraka with face beaming and eyes shining with that hope, that optimism in the future of his country that never leaves him who said - "au revoir" to President Francois Mitterrand on 30 September at the conclusion of their official talks at the Elysee. What passed between the two heads of state during their long conversation? Did they succeed in establishing what they both - desired, a dialogue of a permanent nature, friendly, frank, sincere and productive, ir: full awareness that the whole relationship between France and the African _ states on the Indian Ocean depends on such a dialogue, particularly in view of Madagascar's strategic position in the area? Bef~re receiving President Ratsiraka, Francois Mitterrand had studied the Malagasy - file at length. He had already met his guesty who had visited him during one of his recent trips t~ Paris (in the Giscard era). The Scattered Islands He was aware of his guest's considerable public prestige among the nonaligned countries, especially the progressive and revolutionary regimes of Africa, the Arab world, Asia and Latin America, since he had taken care to question and l~sten to all th~se who knew him well in order to gain a clear impression of the man, his deeper motivation~, and the problems which preoccupy the political, economic, and sacial scene of the island. FrancoisMitterrand was fully up to date on the numerous attempts at destabilization, sabotage, and plots concocted by various ~ power groups, including elements of the French Rightwing in collusion with Malagasy _ reactionary political elements. In President Miterrand's view, the campaign orchestrated by part of the French press against the Malagasy regime was both remotely controlled by a strong anti-Malagasy lobby rooted in Reunion and in some sectors of French management and inspired, if not financed, by all who felt that the Ratsiraka regime threatened their neocolonial interests. In su~ary, if the ob~ective of ti~e several press articles--in which distortion of facts competed with calumny, and which were published on the same day as the Mitterrand-Ratsiraka meeting--was to harm French-Malagasy relations, then one can affirm without fear of contradiction that the purpose was not achieved. Quite the contrary. This mini-campaign amused the two heads of state, who know the source and,the originators. 13 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 F'OR OFF[CIAL USE ONLY In fact, it had an opposite effect to that desired: "If the Right was trying to torpedo our meeting, this means that we are on the right road...," they said. The discussions indeed began with favorable prospects. One of President Mitterrand's close advisers confided to us: "It was almost as if a kind of osmosis occurred the moment the two leaders shook hands." - Three main problems confronted the two presidents, who at the outset by mutual agreement had decided to turn a page in the relations which had prevailed between Madagascar and France since Didier Ratsirnl;a's assumption of power in 1975: "Rela- tions constantly clouded by mis~udged intentions, unfounded accusations, and unjustified criticisms directed by some rightwing and extreme rightwing French elements against the government of the Democratic Republic of Madagascar, committed to its socialist course." It was a question, f irst of all, within the framework of the well-elaborated geo- political vision of both parties, to agree on an overall strategy for the medium and long term. How, for example could the policy of socialist France fit into _ the context of the rivalries and covetousness of which the Indian Ocean is today both the stake and the target? In Didier Ratsiraka's view, no one can remain equivocal on this issue. Madagascar can be regarded as one of the countries most faithful to nonalignment, both in the area and the African continent as a whole. Not only has it never agreed to grant bases to any foreign power, and refused to allow naval ships of the superpowers to dock in its ports, but it persists in stressing forcefully that its priority program--to transform the Indian Ocean into _ a"zone of peace," demilitarized, denuclearized--is a full exprsssion of its - inflexible will to preserve, develop, and strengthen the independence and sovereignty of its own country as well as contributing to that of the other coastal states. Has it not resumed its pilgrim task to convi.nce these states of the neces- sity of an international conference to ensure Indian Ocean security? Has not this will impelled it to raise, once again, the issue of the scattered islands (Europa, Bassa de India, Juan de Nova, Glorieuses and Tromelin), which are still under French jurisdiction despite the numerous UN and OAU resolutions calling for their return to Madagascar, of which they are an integral part? Said Ratsiraka: "Since we are still poor, what do we have but our dignity and our sovereignty to protect and defend?" Impressed by these views expressed by his _ guest with such conviction, Francois Mitterrand did not hesitate, answering in effect: "The return of these islands to Madagascar is part of the program of the Socialist Party and government. All our commitments will be honored... We are ready to promptly open negotiations on this sub,ject..." "Al.l-Around" Cooperation The issue of French-Malagasy cooperation, which had already been discussed at length by President Ratsiraka, Minister of External Relations Claude Cheysson, and the minister delegate for cooperation and development, Jean-Pierre Cot, did not present any insurmountable obstacle. Given Fraacois Mitterrand`s conviction that for _ socialist France cooperation must benefit both partners, that it is not a matter of viewing cooperation as "aid" or a"gift" but something that inevitably involves a return, the French Government plans to develop by all possible means its policy - of cooperation with Madagascar to help it overcome its economic and financial problems. The goal is to end the pressures and blackmail by some international _ 14 , FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400480018-0 FOR OFFICIAL USE ONLY bodies which view "cooperation" only in terms of profitability for the indus- trialized, developed power.s. For example, if Madagascar experiences this year an unexpected fall in coffee prices* which warms the hearts of international speculators--, how could France's cooperation policy inaugurated by Jean-Pi~rre Cot contribute to easing the effects? Here also, an agreement in principle was soon reached by the two heads of state: Paris and A.~tananarivo will begin _ negotiations as soon as possible to reach a new "all-around" cooperation agreement which would revise radically all the agreements signed with the Giscard government. One significant and revealing aspect of the atmosphere at the 30 September meeting: At no time did President Mitterrand try to raise the issue ~f Madagascar's alleged dependence on one or another camp. He said: "Whatever your difficulties, I know that you have succeeded in keeping your country as far as possible from the rivalries which continue to surface in this vital area of the world..." And Libya? - There was, finally, the key problem of the political situation on the African continent, of which the Malagasy president gave an overall review. Not wishing to serve as the apologist for this or that country, or this or that political - regime, he was concerned that the president not be misled by anyone regarding his own analysis of the events affecting the continent. And, even if Libya remains a - "cause for concern" to Paris, Ratsiraka affirmed his belief--shared, basically, by President Mitterrand himself, as he clearly indicated in his Riyadh press confer- ence--that the disinformation campaigr. directed at Madagascar also affects other countries, some of which have been trying to distort the policy or exaggerate the a1leFed aims or ambitions. Having previously talked at length to President Qadhdhafi, Ratsiraka said he was convinced that the Libyan leader is willing to withdraw his troops from Chadian territory whenever President Goukouni, recognized by the OAU as sole interim president of Chad, requests their withdrawal. Also, did not the victory of the French Left on 10 May, hailed by Qadhdhafi, give Francois Mitterrand the opportunity to try to establish a direct dialogue with Tripoli? And might not President Ratsiraka be the intermediary for this? Since he is respected by both sides, the Elysee is seriously studying the role he might play in this respect. The Elysee is aware that he is perhaps the only one among the progressive African leaders who could assume this important responsibility. " But that is not all. A multitude of other regional and international problems were reviewed and sometimes debated with the passionate conviction of "men of the Left" by Miterrand and Ratsiraka, who plan other meetings. The Malagasy head of state has issued an o�ficial invitation to his counterpart to visit Madagascar. Confidences were exchanged, and secret decisions made. Not all have been made known. At any rate, we can say that for the Malagasy people there will be new and pleasant surprises. - *The price per pound of coffee, which rose to $1.15 in 1980, has today fallen to about 65 cents. COPYRIGHT: 1981 Afrique-Asie 9920 CSO: 4719/120 15 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400480018-0 - FOR OFFICIAL USE ONL.Y - MADAGASCAR AUSTRIAN LOANS TO FUND DISTILLERY FOR ALCOHOL FUEL FROM SUGAR Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1872, 25 Seg 81 p 2457 _ [Text) At the beginning of September an agreement was signed in Antanar~arivo between officials of SIRAMA (Malagasy National Sugar Corporation) and a delegation of the Austrian corporation VEW (Vereinigte Edelstahlwerke AG) on expansion of SIRAMA operations to production of alcohol fuel. The agreement concerns specifically a pro~ect for a distillery at Ambilobe. The Ambilobe sugarmill, which has a production capacity of 60,000 tons of sugar per year, exported thus far about 24,000 tons in the form of molasses at rather vari- able prices. SIRAMA decided to profit from the by-product, and the yeast unit has been using 2,000 tons of molasses per year. The remaining 22,000 tons will in future be processed by a distillery to produce alcohol fuel. The planned capacity is 600 hectoliters of alcohol at 100 degrees per day, producing 150 days a year, that is, an annual production of 90,000 hectoliters. The quantity of molasses now available will permit production of about 70,000 hectoliter.s per year. An expan- sion of the sugarmill's production capacity (already planned) will make it possible to reach 90,000 hectoliters. The distillery can also operate more than the men- tioned 150 days by treating other agricultural products, manioc for example. The investment necessary to establish the distillery is estimated at 2.2 billion Malagasy francs, of which 1.7 billion in equipment will be covered by a commercial contract between SIRAMA and VEW, and the remaining 500 million will be civil engi- neering work by SIRt1MA. The financing of the equipment is provided by the agreement signed at the beginning of September for two Austrian loans: 400 million Malagasy francs repayable in 25 years, w~ith deferral of 13 years, at 2 percent, and 1.1 mil- _ lion repayable in 11 years, with deferral of 3'~ years, at 6.5 percent. These low interest rates and long repayment periods were obtained thar.ks to the assistance of - the Austrian Government. The pro~ect will go into operati4n at the end of 1983. COPYRIGHT: Rene Moreux at Cie Paris 1981. 9920 CSO: 4719/120 16 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000400080018-0 FOR OFFICIAL USE ONLY ~ MADAGASCAR NEW FERTILIZER PLANTS TO SATISFY DCMESTIC NEEDS Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1875,16 Oct 81 p 2643 [Text] Malagasy agriculture lacks fertilizer. This is pointed out by a study pub- lished by the daily MADAGASCAR-MATIN, which statES that the forecasts f or fertilizer use in the 1981-1�82 agricultural campaign are sane 10,000 tons, whereas 70,000 tons would have to be used in order to make it possible to produce the 200,000 additional tons of white rice which the country is obliged to import. If the peasants are prepared to use fertilizer, it w~oulci be preferable, the newspaper writes, ta import 70,000 tons of fertilizer, rather than 200,000 tons of rice. But the problem is not so simple. The fertilizers used at present are often provided in the f orm of gifts and then delivered to the peasants at reasonable prices, which are nonetheless high for them, all the more since the habit of using fertilizers has not yet become normal practice. It is only since 1963 that mineral fertilizers have begun to be used in the traditional peasant environment, with the operation "rice pro- duction." Subsequently, a rather marked increase was experienced, and in 1971-1972, - fertilizer use in Madagascar reached 14,000 tons of NPK (that is, 1.7 kilograms per inhabitant as against an average of 100 kilograms in Europe, or 5 kilograms per hectare as against a world average of 47.4 kilograms). Consumption then diminished, to pick up again since 1976: from 5,000 tons in 1980, it is expected to go to 10,000 tons in 1981-1982. Thus, a national plan f or fertilizer production was set in operation, involving xn the first stage, two plants: chemical fertilizers at Toamasina and organic-biological fertilizers at Amboasary. Construction of the Ze-Ren fertilizer plant at Toamasina is making good progress, and on 22 September, 80 percent of the civil engineering c~rk was finished, and 75 per- cent of the plant equipment installed. Let us recall that the ammonia unit is being - provided by Austria, the urea unit by Canac3a, and the rest of the equipment by~the Federal Republic of Germany, among o~thers. The plant is being built by the American group N-Ren International, Ltd., associated with the Malagasy State (75 percent for the latter). The first stone of the Toamasina plant was laid at the end of December 1978. With investments of s ane 4 billion Malagasy francs, the Ze-Ren plant in Toamasina (which is also called Famokarana Zezika Toamasina in Madagascar) will have a pro- duction capacity of 90,000 tons of urea per year. It will use, in particular, petroleum products (naphtha and fuel oil) provided by Solima. 17 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 - FOR OFFICIAL USE ONLY J _4~7 The other fertilizer plant, that of Zezika Malagasy (Zema), is on the way to completion - at Amboasary. Like Ze-Ren, it will begin production at the beginning of next year. Constructed with Franco-Malagasy financing (the Central Treasury in particular) of s ane 2 billion Malagasy francs by the Engineering and Management Works Company (STEG, a French company), the plant will process local raw materials based on sisal, algae~ and dol ~nite wastes; it will be able to deliver same 22,000 tons of organic-biological fertilizers per year with one 8-hour shift per day and double that with two shifts. Let us add that Madagascar is also considering using, later on, phosphates from the i small islands off Maintirano, based on sea bird wastes, or manufacturing fertilizer fran cattle bones, which are abundant but which would be difficult to oollect. - COPYRIGHT: Rene Moreux et Cie Paris 1981 - 9434 CSO: 4719/131 18 FOR OFF[C.IAL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 NOR OHFIC1Ai. USE ONLY MADAGASCAR BRIEFS SOYA ENTERPRISE--Soya is soon to be grown on an industrial scale in Antananarivo f.aritany with the establishment of the Mamisoa socialist enterprise for soya development in Moyen-Ouest, Betafo region. Begun last year in Amparihy-Fenomanana fokontany, Mandoto firaisamp~kontany, the soya-growing experiments have been com- pleted and expansion work will begin this year. Mamisoa will not limit itself to soya culture, but also grow other crops such as maize and manioc which are neces- sary to animal diet. This year, 1,070 hectares of soya are to be developed, though Betafo fivondronana by itself is not interested in such a large operation. Indeed, in the next few years Mamisoa will al~o work in the fivondronana of Tsiroanomandidy and Soavinandirana. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1872, 25 Sep 81 p 2457] (COPYRIGHT: Rene Moreux et Cie Paris 1981J 9920 _ CSO: 4719/120 19 FpR OFFICIAI. USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 FOR OFFICIAL USE ONLY _ MAURITIUS CLOSER BUSINESS COOPERATION WITH REUNION DISCUSSED Paris AFRIQUE-ASIE in Frencli No 250, 12 Oct 81 pp XX-XXII /Article by special carres~:~ndent Dorothee Durban: "Uncertain Economic Future Seen"% [TextJ The general development of the situation in the Indian Ocean points to the need for rapprochement among the islands, - but there are numerous inhibiting factors, both political and economic. In April 1981 meetings were held in Mauritius of professionals from Mauritius and Reunion. The meetings were organized by the chambers of commerce and industry and the principal managemer.t groups of the two islands. Also present were the French embassy commercial attache, the representative of the European communities' delega- tion to Mauritius, as well as government representatives only from Mauritius. Attending were 35 prominent persons from socio-economic sectors in Reunion, received by a larger number of Mauritians. The last meeting of this kind was held in 1969, ,just after Mauritian independence. This "establishment of contact," this "exploration," as Charles Isautier, president of the Reunion chamber of commerce and industry, put it, was intended to benefit the sister islands, a cooperation long sought by all the island's political organi- zations and recently encouraged by Claude Cheysson during his tour of the area, while still commissioner for development of the EEC. It was also with his encourage- ment that the meeting, for which the initiative came from the economic representa- tives of the two islands, took shape. During his latest trip in the Indian Ocean area, Claude Cheysson said: "Don't turn your back on the region! Unite against - those who come to invade your fishing zones! Organize, economically and politically, to manage and control these zones! Develop ydur scientific, technical and political relations! History has woven ties between you, and you for.m a com- pact geographic and strategic area. Europe is ready to help you! It has consider- able means which can be made available to you..." There has been trade between the ~.slands for a long time, though without lt reaching a level.of importance, since it is only 3 percent of Rauni~~n's trade balance, and Mauritius is only the 16th trading partner. 20 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 FOR OFFICIAL USE ONLY End Mutual Ignorance In 1979 Reunion imported from Mauritius 4,800 tons of inerchandise worth 17.864 bil- = lion francs and exported to it 1,521 tons worth 6.349 billion. The bulk of the imbalance is due to import of clothing, fertilizer, and paper. The organizers of the meetings had set as goals: to exchange ideas, identify areas in which cooperation could be started or developEd between Mauritian and Reunion professionals, study measures to be taken to promote this cooperation, and, finally, to make concre~e proposals for action. On conclusion of the discussions, both sides felt that the result had been positive, though they did not foresee immediate _ results. The final communique said that despite the indisputable historical and cultural ties the similarity of the economies, both basically sugar, considerably reduced the possibilities for cooperatian and trade. The communique added that the very strongly marked vertical relations--with France for Reunion, and Great Britain for Mauritius--and mutual ignorance regarding the capabilities and needs of each island constituted a signif icant hindrance to possibilities for cooperation between the two small island entities, although their future can only be seen as one of cooperation. The participants were also prudent in their conclusions and suggestions worked out in the four committees: tourist cooperation, inter-island communications, supply of services and investment. In each committee th~re was emphasis on the need to 1 get to know the neighbor better, to put an end to "mutual ignorance of the particular capabilities and needs of each island." In regard to tourism, it is certainly Reunion which stood to gain from zhe sugges- tions made, since it has only one-sixth the number of visitors to Mauritius. A matter of prices and attractions. The committee proposed that they launch promotion of a joint package offer for the two destinations, while adjusting prices, that is, to break the Air France monopoly. The committee on inter-island communications called for a unified tariff system for port services, coordination of airline schedules, and improvement of telephone services. - The committee on exchanges concerning supply of services envisaged formation of a joint economic data bank and increased education exchanges: retraining sessions, lectures, joint education activities, etc. But it was in the last committee on investments that the most important decisions for the future and for cooperation betwEeri the two islands were made. This commit- � tee was also the best attended and obviously the sub~ect of more interest. What , goals did this committee formulate? That Reunion entrepreneurs gain maximum bene- fit from the opportunities offered them to Join in the Mauritian free zone. That labor-intensive production be carried out in Mauritius, where conditions are - clearly advantageous--a way of saying that they are more exploited--compared to Reunion. Finally, that industries be created, "on the basis of mixed financial participation," or be developed to supply the market of each island. After reading these resolution, one can foresee what will happen. Reunion capital, but par- _ ticularly French capital via Reunion, will go to invest in the Mauritius free zone, 21 FQR OFFICtAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044400080018-0 FUR OFFICIAL US~ ONL1' , assured of finding inexpensive labor, and lower operating and service costs. More- over, Mauritius offers a deep-water port with 400 meters of piers, which Reunion will not be able to offer until 1984, and an international airport linked by direct flight to all major world centers (London, Sydney, Johannesburg, Paris, Rome, Frankfurt, Bombay, and Taiwan). If this turns out to be the logical uutcome of the proposals made during the ~eet- ings, and there is very reason to think it will, then the Reunion people will once again be both purchasers and consumers, when it is the production capacities of the island which must be developed to ease the unemployment. This reasoning can even apply to those areas where cooperation appears eminently profitable for the two sides: computer science, for example. Sharing of tasks could follow exactly the preference stated by the chairman of the Mauritian chamber of commerce and industry: "Reunion, which is impressive for its fine infrastructure, modern equipment, and quality of human resources, could contribute its advanced technology, while Mauritius would provide its industrial experien~e and its abundant, intelligent and significantly cheaper labor." In this field, Mauritius is still in its infancy, with only one-quarter the computer inventory of Reunion. But what does the committee propose? Aid and training of Mauritian computer experts, but especially establishment of companies for common services in the Mauritian free zone. Again, the immediate interest of the Reunion capitalists gets precedence. What will result from the suggestions put forward at this meeting? The secretary general of the chamber of employers said on his return to Reunion: "The most interesting results can be expected at the level of export of services, in train- ing, studies, computers, telecommunications and meteorology. We must be very modest, and not spend time wondering how we can sell, to countries with limited purchasing power, things we are not Pven yet producing." Beyond this initial conclusion, delegation members expressed the hope that similar talks can be opened between the Seychelles and Madagascar, in order to genuinely launch the process of creating an Indian Ocean "Common Market." But there are - many problems. There are certainly problems of a political nature, since the idea of cooperation witY~ the leaders of the Seychelles or Madagascar has thus far not aroused any enthusiasm on the part of the Mauritian or Reunion authorities. But the general evolution of the situation in the Indian Ocean argues in favor of such rapprochements, and it is known that Reunion economic circles and a significant element of the local bourgeoisie are ready for them. Heavy Guardianship Another important problem is France's tutelage over its Indian Ocean department; thus far a totally ~tatic guardianship in respect to relations with Mauritius. Charles Isautier, chairman of the Reunion Chamber of Commerce and Industry, says frankly: France's assistance is in this area mor~ of a handicap than anything else, like, paradoxically--and the contradiction is interesting--, the maze of - economic and financial regulations which constitute Reunion's status as a French department. However, the problems are little different for Mauritius, which still depends on its former powerful guardian. 22 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 FOR OFFICIAL US~ ONLY Is France prepared, today, to support implementation of the proposals which came _ out of the fteunion-Mauritius prof essional meetings? One would doubt it under the _ former regime, sin.ce the seventh French-Mauritian mixed commission, which met 14-16 April in Port Louis, failed to include Reunion delegates. This was not well received on the island., France has granted a gift of 80 million rupees to Mauritius for infrastructure projects, rural development, and improvement of information and health. Speciffcally, it will participate in financing the Phoenix-Mahebourg high- way, equip the Mauritian meteorological service with a satellite image receiver, and finance three projects for Rodrigues: set up a property register, construct fishe~en's housing, and improve health services. The other projects involve diversif ication of agriculture and food production generally. In the latter f ield, the Mauritian efforts rave been very signif icant. The government has decided to make a general practice o~ establishing feeding enclosures for cattle and deer, with intensive use of maize produced locally between the rows of.sugarcane, and by- products of the sugar industry, pith of bagasse and molasses; to likewise increase the production potential of vegetables, fruit, and flowers; and to develop mechanized fishing and production of camaron, free tortoise and tilapia. These efforts will be accompanied by a series of other measures: increase in energy production by sugarmills, enabling a saving of 95,000 tons of petroleum per year; production of ethanol from molasses to be used for fuel, of which the initial tests have been promising; establishment of a small business bureau to help create jobs in the rural area; general introduction of a third shift to establish round-the- clock operation in the free zone, and increase Mauritian manufacturing production = by 30 percent, thus creating more jobs; establishment of a zone for export of = services: "offshore banking," a bureau of consultants ta create jobs in the tertiary sector. _ A11 these measures should be underway in 1982 and are likely to prom~te a renewed growth in the Mauritian economy. COPYRIGHT: 1981 Afrique-Asie 9920 CSO: 4719/121 23 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400440080018-0 FOR OFFICIAL USE ONLY N~GER BRIEFS BEI POW~R PLANT LOAN--In the f ramework of the Second Lome Convention, the European In- vestment Bank [BEI] , a banking instituti.on of the Euxopean Corwnunity for long-tern financing, has granted a loan equivalent to 10 million ECUs [European currency unit] (3 billion CFA francs) to buil d the second stage of the Anou-Araren coal-burning thermal power plant. This proj ect involves an additional 16-megawatt unit primarily intended to provide power to the nearby uranium mines. The power plant, where a first unit (also a 16-megawatt unit) recently went into operation, will burn local coal thus cutting back on the use of imported oil ancl offering a greater guarantee to the supply of electrical power for ihe uranium industry and the local population. The loan was granted to the Anou-Araren Coal Company of Niger (SONICHAR) for a period ~ of 16 years and at an interest rate of 8 percent, taking into account the interest ' discount on the resources of the European Development Fund. SONICHAR is a stock company created in 1977 in which the Nigerian State hold 66 percent of the stock in partnership with the Islamic D evelopment Bank and the companies operating the uranium mines. The total estimated cost of the second unit is 25 million CFA francs and this unit is expected to start operating during 1982. The project will be carried out with te~hnical assistance provided by the French Electric Power Company (EDF). The African Development Bank, the Central Fund for Economic Development, the Abu Dhabi F'und and the Government of Nigeria will help finance this expansion project. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874,16 Oct 81 p 2626] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 EDUCATIONAL STATISTICS--Tn Nig~r~ where 90 percent of the adult population is illiter- ate, 260,000 children are attending primary school and 33,000 secondary school as the _ new school year has started, according to figures issued by the Ministry of National Education. The school attend ance rate in Niger is about 20 percent and the figures issued for the new school year show that 11,934 children started 6th grade this year, - an increase of 36.8 percent over the figures for the 1980-1981 school year. This year, 1,486 students will take their examination at the end of secondary school. Ni- ger, where important budget allocations are assigned to education and to the literacy campaign, is facing a serious shortage of teachers and only 57 percent of its teach- ers are Nigerian nationals. [Text] [Paris MARCHES 'rROPICAUX ET MEDITERRANEENS in French No 1874,16 Oct 81 p 2626] [COPYRIGHT; Rene Moreux et Cie Paris 1981] 8796 EDF ROAD FINANCING--The Europe an Development Fund [EDF] will provide 16.22 million - ECUs to help finance work on the Roumdji-Tchadaoua road and on the Zinder-Mirriah road. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874?16 Oct 81 _ p 2626] (COPYP.IGHT: Rene Moreux et Cie Paris 1981] 8796 CSO: 4719/144 24 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407142/09: CIA-RDP82-00854R000440080018-0 _ FOR OFFICIAL USE ONLY SENEGAL . BRIEFS SAED'S RICE, TOMATO PRODUCTION---Serigne Lamine Diop, Senegal~s minister of rural de- velopment, kho visited the peanut growing region in September, traveled to the Fleuve _ region at the beginning of October and visited, in particular, the irrigated areas of the SAED (Company for the Development and Exploitation of the Delta). Thi~ visit coinc~des with a change in the status of the SAED which is no longer a public concern but a national company. Explaining the reasons for the change, the minister of rural development said that, in the future, the president-director general will have elbow room to manage his company. It *.�:ill be easier to finance agricultural programs be- cause they will no longer be sub~ected to a priori control. The government, which has just signed a planning contract with the company, has promised to provide it with sufficient funds. The company, for its part, has committed itself to produce 50,000 tons of rice in 3 years' time. This represents the amount of rice consumed in the country in 2 months, Three years from now, the tomato production is expected to be 60,000 tons, which represents the country's overall consumption. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 187G, 16 Oct 81] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 CSO: 4719/144 25 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 FOR OFFIC[AL USE ONLY TANZANIA BRIEFS NEW INTERNAL TRADE REGULATIONS--Tanzanian Minister of Commerce Ali Mohumo announced in Masasi, on 9 October, that as of this coming November the Regional Trading Compan- ies (RTC) of Tanzania must order their goods directly from Tanzanian industrialists by a system of credit. The RTCs, located in areas far from industrial centers, - must pay for their orders through the National Bank of Commerce (NBC) 45 days after delivery. For the regions where the industries are located, payment will be made 15 days after delivery. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874,16 Oct 81 p 2641] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 EDF WATER SUPPLY GRANT--The European Development Fund [EDF] will provide a grant of 5 million ECUs [European currency unit] for the water supply of Ntwara, a coastal town in southern Tanzania. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874,16 Oct 81 p 2641] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 CSO: 4719/146 ~ 26 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400480018-0 FQR OFFICIAL USE ONLY ZAMBIA BRIEFS INCREASE OF CRIMINAL ACTIVITY---The increase of crimes recently reported in Zambia has made the Lusaka authorities react. Thus, the secretary of state for defense and se- curity, Zulu, has asked the police to increase their patrols on the borders. In addi- tion to this step, the inspector general of the Zambian Police, Fabiano Chela, told the press on 2 October, in Lusaka, that some "influential people" and Zambian "lead- ers" were using "various methods" to encourage crime, including bribery of police officials. Referring to these "leaders", he said: "Not only they do not cooperate in the fight against crime, but they also actually engage in activities which demor- ~ alize those who are actively fighting crime." As part of the fight against crime, ~ particularly in the Copperbelt region, it has been decided that from now on bars will close at 1800 hours in Ndola. [Text] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1874,16 Oct 81 p 2641] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 8796 AUTOMOBILE PLANT CLOSURE--A spokesman for the Zambian state holding company INDESCO (Industrial Development Corporation) announced in Lusaka, on 1 October, that the board of directors had decided to close the engine assembly plant in Livingstone un- ti1 further notice. The reason behind this move is that the company does not have the foreign exchange needed to import spare parts and components to keep the plant working. The plant closed on 19 August this year and 150 workers were laid off at half-pay while waiting for spare parts to be imported. The original plan was to have some work done in the plant while it was closed to diversify its production. That plan was abandoned for lack of foreign exchange. INDESCO has also announced that it had found financial partners to build an ethanol plant near the Nakambala sugar plantation. Construction work was scheduled to start in 1982. Under a contract worth 12 million kwachas signed with Austria last May, that country was supposed to build the plant. But when the Zambian side failed to fulfill its commitments, Aus- tria was forced to denounce the contract. [Text] [Paris MARCHES TROPICAUX ET MEDI- TERRANEENS in French No 1874,16 Oct 81 p 2642] [COPYRIGHT: Rene Moreux et Cie Paris i981] 8796 ~ CSO: 4719/146 END 27 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400080018-0