MIDDLE EAST AFRICA SOUTH ASIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A000600200002-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: May 24, 2001
• Sequence Number: 2
• Publication Date: March 25, 1975
• Content Type: NOTES

Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
Secret
No Foreign Dissem
UJLE L1EY1flE
Middle East
Africa
South Asia
Secret
2
No. 0452/75
March 25, 1975
Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
 Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
No Foreign Dissem
Warning Notice
Sensitive Intelligence Sources and Methods Involved
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
Classified by 005827
Exempt from general declassification schedule
of E. 0. 11652, exemption category:
? 5B (1), (2), and (3)
Automatically declassified
on: Date Impossible to Determine
Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
 Approved For Release 2001/07/30 : Cl T'Q0865A000600200002-3
MIDDLE EAST - AFRICA - SOUTH ASIA
This publication is prepared for regional specialists in the Washington com-
munity by the Middle East - Africa Division, Office of Current Intelligence,
with occasional contributions from other offices within the Directorate of
Intelligence. Comments and queries are welcome. They should be directed to
the authors of the individual articles.
Guinea: Economic Situation Worsens . . . . . . . 1
Ethiopia: Monarchy Formally Abolished . . . . . 3
Gambia-USSR: President Jawara Visits
Soviet Union . . . . . . . . . . . . . . . . . 4
Mar 25, 1975
Approved For Release 2001/07/30: CIAAP7'g4865A000600200002-3
 Approved For Release 2001/07/30 : cdA d'3 400865A000600200002-3
Guinea
Economic Situation Worsens
Guinea's chronic economic difficulties have
become more troublesome for President Toure over
the past few weeks. Although the country's economy
has potential for becoming one of the strongest in
black Africa, Toure has paid more attention to
pursuing radical political goals than to economic
development since Guinea gained independence in 1958.
After 17 years, only the mining sector has been suc-
cessfully exploited and that was well under way
before independence. Guinea's mineral wealth includes
more than one-third of the world's reserves of high-
grade bauxite, substantial high grade iron ore
reserves, and significant diamond deposits.
One of Toure's immediate concerns is the country's
shortages of rice--Guinea's chief food crop--fruit,
vegetables and meat. Also, consumer goods are un-
available in many areas and some cities reportedly
lack enough running water and electricity to meet
their needs. Moreover, Guinea's never ending foreign
exchange "crisis" seems to be worse than usual.
To counter these problems, Toure recently an-
nounced several measures designed to increase govern-
ment control of agricultural production and distribu-
tion, augment revenues through additional taxes,
reduce smuggling and black market operations, and
allocate petroleum supplies. These measures have
been highly unpopular. More Guineans reportedly have
fled across the border to neighboring countries,
where several hundred thousand fellow countrymen took
refuge earlier. Toure has taken forceful action
against persons suspected of trying to evade the new
regulations. In three hinterland cities, local
officials have been arrested and there are reports--
so :Ear unconfirmed--that some 30 smugglers have been
shot at border posts. Toure and other government
officials have visited several cities throughout the
country to campaign for popular support of the
economic program.
12,
(Continued)
Mar 25, 1975 1
SECRET
Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
 Approved For Release 2001/07/30: CIA 1e71Rg865A000600200002-3
1J
The government has also turned to the students,
who are organized under the aegis of Guinea's single
party, for help in fighting "economic criminals."
Student demonstrations have been staged and the gov-
ernment is setting up a program under which students
above the secondary level are to leave school for
eight months of service in the interior. Higher
education institutions have now closed and students
are scheduled to begin work on various projects in
rural areas next month; their primary role will
probably be to help identify anti-Toure elements.
Toure is also having problems with his partners
in three major bauxite operations--two financed by
Western companies and one by the USSR--because of
this announcement last January of a new tax on exported
tminerals. He looks to the tax to provide Guinea some
j$25 million in additional revenue this year. The
Western companies are also upset over Toure's attempts
to increase the government's control over their manage-
ment and financial operations. The Western partners
tinvolved in one of the operations recently reached
an accommodation with Conakry, but discussions between
Guinea and the foreign partners of the other Western-
financed project, including two US firms, Alcoa and
Martin-Marietta, have been inconclusive.
The Soviets appear to be taking a hard line in
their negotiations with the Guinean government, which
apparently began earlier this month. The Soviets'
operation at Kindia, which began exporting bauxite
ore last year, is their largest aid project in black
Africa. The Soviets reportedly are insisting that
the two governments---partners in the operation--
should each pay half the tax. The Guineans maintain
that the Soviets, the purchasers of the bauxite,
should pay the entire tax. (SECRET NO FOREIGN DISSEM)
Approved For Release 2001/07/30 : CIA-P''T9'f80865A000600200002-3
 Approved For Release 2001/07/30 : CIAff. ff 00865A000600200002-3
Ethi2 is
Monarchy Formally Abolished
The ruling military council's announcement
on March 21 formally abolishing the 3,000-year
old monarchy was probably triggered by a belief
that Ethiopian exiles loyal to former crown
prince Asfa Wossen were ready to form a govern-
ment-in-exile in London. The council, which
had been moving gradually toward ending the
monarchy since deposing Haile Selassie last September,
probably will next declare Ethiopia a republic.
The council had designated Asfa Wossen as king
after deposing Haile Selassie, but the former crown
prince refused to return from Europe where he has been
undergoing treatment for the effects of a stroke
suffered in early 1973. (CONFIDENTIAL)
Mar 25, 1975 3
SECRET
Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
 Approved For Release 2001/07/30 : CIA-RIU865A000600200002-3
Gambia-USSR
Gambian President Jawara has just concluded a
long-planned but twice-postponed visit to the
Soviet Union. He received high-level treatment,
including meetings with Prime Minister Kosygin,
President Podgorny, First Deputy Chairman of the
USSR Council of Ministers Mazu:rov, and Minister
of Fisheries Ishkov.
A fishing agreement between the Soviet Union
land the Gambian government was signed on March 18
but its terms are not yet known. 25X1C
the Gambian delegation wou a so
ask the Soviets to donate small arms for the Gambian
police field force. The delegation's chance of
succeeding may have improved with the conclusion
of the fishing accord. Moscow's interest may have
been increased by reports that Peking had agreed in
principle to a Gambian request for free weapons.
(SECRET NO FOREIGN DISSEM)
Mar 25, 1975
SECRET
Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
 Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3
Secret
Secret
Approved For Release 2001/07/30 : CIA-RDP79T00865A000600200002-3