JPRS ID: 9153 NEAR EAST/NORTH AFRICA REPORT

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000200090039-8
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• Document Page Count: 68
• Document Creation Date: November 1, 2016
• Sequence Number: 39
• Content Type: REPORTS

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JPRS L/915~
19 June 1980 '
/ .
N~ar East ~lorth A~rica Re ~rt
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CFOUO 22/80~
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JPR5 L/91.5 3
19 June 1980
NEAR EAST/NORTH AFRICA REPORT
_ (FOUO 22/80)
_ CONTENTS
INTER-ARAB AFFAIRS
Be':rut Trying To Restore Pre-Civil War Financial Activity
(AL-WATAN K~.-'ARt~I, 25 Apr, 1 t~4ay 80) 1
ALGERIA
Figurea on Power for Year 1979 Given
(MARCHES TROPICAU% ET MEDITERRANEENS, 2 May 80) 4
Decisiona of FLN Central Com~mittee Given -
(MARCHES TROPICAUR ET I~DYTEItRANEENS, 9 May 80) 6
EGYPT
Power Struggle Among Sadat's Close Aides Disclosed
(AL-WATAN AL-'ARASI, 4-10 Apr ~0) 8
Nat3onal Co8liticn Gains Ground, Popular Support
(AL~WATAN AL-'ARABI, 4-10 Apr 80) 15
Sectarianiem Stalka Acroas Egypt
(AL-WATAN AL-'ARABI, 11-17 Apr 80) 22
IRAN
Major Iesue After Abortive Reecue Attempt
. (Jean Lartegury; PARIS MATCH, 16 May 80) 36 -
Reportage From 'Martyred' City of Sanandaj
' (Chriatian Hoche; L'EXPRESS, 17 May 80) 40
- a- , I I I I- NE & A- 1.21 FOUO ]
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LEBANON
~ Phalangieta Trip to Damascua Brings Talk of Poeaible
Unilateral Peace
(AL-WATAN AL-'ARABI, 18-24 Apr 80) 45
- New Strategy Developed in A~aal Movement
(AL-WATAN AL-'ARABI, 18-24 Apr 80) 50
Walid Junblat Emerging as a Skilled Leader -
(AL-WATAIJ AL-'ARABI, 1Z-17 Apr 80) 54 ~
TUNISIA
Mre Bourguiba's Protegee GeC Ministerial Poats -
_ (AFRIQ'JE-A3IE, 12 May 80) 62
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_ INTER-ARAB AFFAIRS
BEIRUT TRY~NG TO RESTORE PRE-CIVIL WAR FINANCIAL ACTIVITY
Paris AL-WATAN AL-' ARABI in Arabic 25. Apr, 1 May 80 pp 46-47 ~
[Article: "Bahrain Prospers Financially; Beirut Tries to Regain Its Standing
After Improi~ement of Its Security Conditions"] _
[Text] The volume of money invested in Bahrain reached 27 billion dollars,
, while Beirut, awaiting improvemeat of its security conditiona, is trying to
regain its financial standing in tripartite transactions by offering higher
guarar.Cees.
The volume of deposits at the financial center in Bahrain is estimated at
27 billion dollars. In 1976, foreign banks were allowed to establish
branches in Bahrain by means of epecial permits which prohibited them fram
conducting local commercial banking transactions.
By the end of last year, 51 Arab, ~oint krab-foreign and foreign banks were
operating under these rulea. In addition, there were 27 offices representing
banks, 20 fully licensed commercial banks and 6 investment firma.
Financial observers note that banking activities in Bahrain are pnainly in
cash transactions, short term loans to finance commercial transactions
and bank~gu~ranties required by contractual agreements. -
However, loans to finance development pro~ects re~ain salatively limited,
es.pecially as.many of such loans entered on the books of banks in Bahrain
are loans previously arranged outside the coutry by European banks that -
- have branches in Bahrain.
Arab banking establishments state that the future of the financial market
in Bahrain depends on financial decisione which are sometimes made outaide
the country and mainly in Saudi Arabia.
Bahrain may have been able to seal B~irut's financial ahow, mainly in the
tripartite tranaactions, due to the Lebanese civil war an~i security condi-
tiona in Beirut. But we find two Leban~se banke which are very optimistic
- about the financial future of Beirut, especially after the recent rush of
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~v~a... VJii vi~ui
capital into the banking sector. This is apparent in the establishment of
12 new banks with a capital of 15 to 20 million pounds each, or a total
capital of some 200 million pounds, bearing in mind that the volume of
traneactions of each bank is usually many times larger than ite capital.
~ In adciition to thatx a number of local banka have undergone aignificant
changes of ownership and have been injected ~ith additional Arab and
foreign capital.
The number of operating banking establishments whose credit is accepted by
Che Lebanese Central Bank has reached 85. Accordi.ng to banking sourc~eo,
_ this number is expected to reach 100. In this regard, financial authorities
ase insiating that naw investments should consist of Arab or ~oint Arab-
foreign capital.
Tripartite Transactions
The purpose of the Lebanese Central Bank is to improve Beirut's financial
role in internarional tripartite transactions, or transactions servicing
2 outside parties. Leban~a was a pioneer in s.uch operations prior to the
- civil war, to the extent that there were 160 offices in Lebanon representing
American, European, Japanese and other fo~eign banks.
According to banking sources these banks still find Beirut to be a good
= and important centex for their activities in the area, in spite of the fact
that aome of them have established branches in Cyprus, Greece and Bahrain
- during the Lebanese civil war. These.banks will undoubtedly return to
Beirut as security and political stability ia reeatablished.
~ Zebanese officials are very optimistic that Beirut will regain its distin- -
guished role on the financial and banking level~. Due to such optimism,
I~ebanese officials are taking every measure to create the proper environment
for the Lebanese capital to flourish again af..*_er the end ot the civil war.
In addition to economic freedom, which was protected by laws and regulations.
from independence day ur.til now, freedom of foreign exchange, banking~
secrecy, ~oint accounts and insurance of deposits, the Lebanese government
took the following new measures to enhance this freedom and attract Arab -
and foreign capital:
--Establishment of a free banking zone, or what is known as the "off shore" -
system applied in Bahrain since 1976.
--Establishment of a government agency to guarantee the security of invest-
ments against war dangers including civil wars.
--Allowing the licensing of new banks.
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Other Measures and Guaranteea
Some of the other measurea which are being studied by the government are:
1. To modify the income tax law, especially as it relates to profits of
corporations, in order to attract capital which can be inveated in such
corporations. Miniater of Financ~ 'Ali al-Khalil said that the modi�ied
law will 'be put into effect very socn.
_ 2. To exempt inter~st rates earned on deposits from the income tax. The
tax amounts to t~n percent currently, ant3 generates an annual revenue of
~ some eight million pounda. Shaykh Michel al-Khuri, president of the
Lebanese Central Bank, drafted a bill which was submitted to the cabinet
_ for the application of this exemption.
3. To develop the fYnancial market as follows: '
To develop and diversify government bonds, so that they will no longer
be confined to the banking sector, but will become available to the public.
4. To issue reconstruction bonds to finance the pro~ects included in tr~e
plan of the council of development and reconstruction.
5. To allow large known corporations to issue marketable debentures.
All these matters were discussed by representatives of the Central Bank,
the World 3sank and the international monetary fund. The World Bank agreed
to ahare in financing a new intermediary financing institution in Lebanon.
This institution; which is expacted to be established in the near future,
would he a step toward the establishment of more Lebanese as well as Arab
and ~nterngtional intermediary finan~ing institutions.
Doea this mean rhat there is competition between Beirut and Bahrain? ~
Arab financial observers see Beirut's market as complementary to Bahrain's
market. There is a very large volume of Arab financial surpluses and a
variety of Arab investments. Each of the Beirut and Bahrain market gets
, more tkian its share of these resources. They are large enough, however,
= to create an urgent need for additional financial markets in other Arab
countries.
COPYRIGHT: 1980 AL-WATAN AL.--ARA~dI
8988
CSO: 4802
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ALGERIA ~
' FIGURES ON POWER FOR YEAR 1979 GIUEN
,
Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 2 May 80 p 1029
[Unsigned article]
~
[Text] In a recently released announcen~ent, the Algerian Ministry of
Energy end PEtrochemical Industries furnisned some data on power for the ~
year 1979. Salient emong ~his data is the fect that crude oil remains
preponderant in Algerian exportetions and that oil revenues grew by 52.76
percent compared ,+,0 1978. Figures for 1979 amount to 9.3 billion dollars
(36 billion dina~s.)
- Based on the ministry'S announcement, EL MOUDJAHID gives the following
figures or, power in Alge.ria during 1979; totel production of crude oil
end condensate amounted to 56,898,248 metric tons, or a decrease of 0.52
percent compared to 1978. Crude oil production, amoun~ing to 52,504,202
tone, decreased by 3.09 percent~ while condensate production reached
4~394,036 tons for a grnarth of 45 percent compared to last year.
- Algeri.en natural ges production continues its reoid growth with 21.4
billion m3, for an increase of 51.78 percent. This elso true for LNG
(liqu fied natural gas) Whose production leve?~ is undergoing e 78.39
percent increese compared to 1978, and for LPG liiquefied petroleum gas)
whose growth rete is 4.04 percent.
For hydrocarbon derivaties, fuels show a drop of 17.2p percent, fertilizers
~ a drop of 36.50 percent, bitumens an increase of 59.95 percent, and
lubricants, en increase of 1.27 percent.
Crude oil exports for Sonatrach (National Algerian Hydrocarbon Compeny)
amounted to 33,373,5^8 metric tons for 1979, while the exports of
associgtes amounted to 11,695,229 tor+s for a totel of 45,068,807 tons.
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Growth of condensate and LNG exports remains very steady for 1979.
Condensate exports amounted to 3,944,282 metric tons for an increase ~f
75.52 percent; LNG exports were 19.61 million m3, which is an increase
of 81.54 compered to 1978.
As for LPG exports, they added up to 317,?36 tone (en increese of 2.30
percent); the figure for fuels wea 2~916,594 tons (a 10.93 {~ercent drop).
In additior, 78,062 tone ?f petrochemicaJ products (methanol and
ethylene) were exported during 19?9.
- Crude ail end condensate deliveries on the domestic market registered a
1979 increase of 24.24 percent (5,623,782 metric tons); for natural gas,
the increase was 31.31 percent (4,136 hillion m3).
For 1979, currency from hydrocarbon exports amounted to more then 9.3
billion dollars C3.6 billion clinars) for an increase of 52.7696 compared
to 1978.
The breakdown by products is as follows: crude ~il, 77.73 percent;
condensate, 7.78 percent; refined products, 7.49 percent; L'VG~ 6.13 .
percent; LPG, 0.58 percent; petrochemicals, 0.27 percent.
Finelly, national production of electricity amounted to 6,12~ GWh in 1979
and netional consumption saw an increase rate of 16.8 percent reaching a
figure of 5,584 GWh.
COPYRIGHT: Rene Moreux et Cie Paris 1980
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ALGERIA
DECISIONS OF FLN CENTRAL COMMITTEE GIVEN
Paris MARCHES TROPICAUX ET MEDITERRWIEENS in French 9 May 90 pp 1083-84
[Unettributed article: "Third Seseion of FLN Centrel Committee: Priority
for Agriculture"]
[Text] Three import ant items are an the agenda of the FLN Central
Committee (Algerian Unified Party) which opened its first sesaion for
1980 on 3 Mey at the Paiais des Nations (near Algiers), in a politicel
atmosphere troubled by recent evente in Greeter Kebylia.
This centrel committee whose activities are presided by Mr Chadli
8end~edid, chief of state and gen~ral secretary of the FI.N party, is
exemining several reports on problems in agriculture, tourism, and the
ep~lication of the arabisation policy.
It should be re-stated that th~ FLN Central Committee is the seat where
the country's fund~nental economic and political decisions are reached.
The agricultural issue is the ~entral tapic of debate. The agricultural
deficit hea become one of the major preoccupations of the Algerian
government. Production is increasingly failing to meet the population's
food requirements; consumption is sharply increasing as e function of
rapid demographic gro~,rth (3.2 percent per year) es well es a result of
increased in~omes.
_ The satisfaction of these food needs through national production which
is slightly on the increase has fallen from 73 percent ten years ago
to ebout 40 percent. Foad importations, notably of grain products
represent a heavy burden (an average of 1.2 billian dallars per year)
for the balance of payments, alresdy seriously affected by a foreign
debt estimated at about 16 billion dollars.
~
- The l~imits pleced on major landhol~in~ and the distribution of land which
took place since the launching of the agrarian revolution in 1971 have not
produced the expected results, while former colonial farms, pleced under -
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self-management in the wake of independence, are being hampered by a
corresponding encroaching bureaucracy. According to official figures,
40 percent of the 6000 agricultural cooperatives in service for the past
~ 8 years ere in deficit, ~hile due to rural exodus in particular, nearly
helf Af the srable surfece (7 t o 8 million hectar~s) remains uncultivet;ed.
The complexity of these problerns and their political impact are such that
- no less then three rzports with diffE~rent recommendations on exploitation
me~hnds for collective lands have been submitted to the centrel committee.
These suggestions range from pure and simple transformation of public _
- l~d into state farms, to private man~ement of these lands which would
neverti~eless remain state pro~erty, not to be parcelled or sold. Ar~
intermediate option provides for maintaining present structures while
strengthening technical steffs, together with increased finencial aid
tn smal]. private farmers.
T~e secand issue under discussian concerns tourism. It must be studied
from th~ viewpoint of the effects of a policy of iness popular toux~ism,
and the opening of this sector to in~reased participation on the part of
private hotels and local cort~nunities for the better exp].oitation af
locationa heretofore neglected.
. Another pressing issue since recent events at Tizi-Ouzou is the question
o~ arat~isation, which will prob ably be ~nong the most f iercely debated.
The spread of erabisation is upheld strongly by all Algerian media. ~
However, its implementation will be~ome more gradual and it appears that
more careful consideration will be given to local, cultural and linguistic
- particularities.
The problem of stete enterprise restructuring, which, according to EL
MODUJAHID, was to be broached at thia session, is nnt included on the
agenda. This is a technical problem, whose political implicetions are
clear to the extent where the enticipeted breal