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APPROVED FOR RELEASE: 2007142/09: CIA-RDP82-40854R040400050041-7 FOR OFFICIAL USE ONLY ~ JPRS L/9991 ~ 18 September 1981 Near East North Africa Re ort p (FOUO 31 /81) Fg~$ FG~REIGN BROADCAST INFORMATION SERVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044400050041-7 NOTE JPRS publications contain information primarily from foreign newspapers, periodicals and books, but also from news agency transmissions and broadcasts. Materials from foreign-language sources are translated; those from English-language sources are transcribed or reprinted, witli the original phrasing and other characteristics retained. Headlines, editorial reports, and material enclosed in brackets [J 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 brie~, indicate how the original infor~nation was processed. Where no processing indicator is given, the infor- - mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclosed in parentheses. Words 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. Ti.mes within items are as given by source. The contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE OiVLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R400404050041-7 FOR OFFICIAL USE ONLY JPRS L/9991 18 September 1981 NEAR EAST/NORTH AFRICA REPORT (FOUO 31/81) CONTENTS INTERNATIONAL AFFAIRS Arab Internaticnal Aid Programs Described tAbderrahman Robana; THE MAGHREB REVIEW, Mar-Aug 80) 1 INTER-ARAB AFFAIRS Mideast Leaders Focus on Personal Security (AL-WATAN AL-'ARABI, 17-23 Jul 81) 14 IRAN Bani-Sadr Analyzes Latest Powez Struggle (Serge Gozlan; JEUNE AFRIQUE,'12 Aug 81) 28 LIBYA Analysis of Recent Agricultural Development, Historical Perspective (Konrad Schliephake; MAGHREB REVIEW, Mar-Aug 80)..................� 34 Briets Soviet Libyan Bases ' 46 SUDAN Brief s Thorium, Uranium Deposits 4~ _ a_ [III - NE & A- 121 FOUO] APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2047/02/09: CIA-RDP82-00850R400404050041-7 FOR OFFICIAL USI: ONLY INTERNATIONAL AFFAIRS ARAB INTERNATIONAL AID PROGRAMS DESCRIBED London THE MAGHREB REVIEW in English Vol S, No 2-4, Mar-Aug 80 pp 57-62 [Article by Abderrahman Robana, School of Business Administration, Al�red University, New York] [Text] Introduction Following the massive oil revenues accruing to the Arab oil producing and exporting countries, mainly since 1974 when oil prices quadrupled, Arab aid in general, , and more specifically inter-Arab financial assistance has played a very significant role in world economic and financial development.s. It is worth noting here that non-oil producing developing countries will have a deficit of about 65 billion _ U.S. dollars in 1980 compared with the 45 billion deficit in 1979. At present total Arab aid amounts to not less than 20 billion U.S. dollars and far exceeds both the 0.?% of GNP . target set by the United Nations' Second Development Decade Program and the 0.85�/0 of GNP of the most generous countries in the Western industrial world.' The massive Arab aid to Arab, African and Asian countries continues to ' grow even although donora such as Saudi Arabia and the Arab states on the Gulf themselves need technical aid and the diversification of their future sources of income, as at present they r~ely solely on revenues from oil, an exhaustible and non-reproduceable resource. in additian to direct assistance to about sixty countries around the worid, ]xrge commitments were made to international and regional aid institutions, such as the World Bank and the IMF. ' While more t}ian half of Arab financial assistance goes to non-Arab countries (see Table 1 below) I shall consider ;~ere only 11ows of Arab financial aid within the Arab world, whether or not it is concessional and the way it is channeled. Table 1 YercentuKe Diytribution of Totul Arab Financial Assistance (1975�1978) 1978 1977 1976 1975 Tu Arab ~ountries 40.496 45.596 50.0~/0 39.696 To Non-Arab countries 59.6% 5~1.5~k 50.0~ 40.4N6 100.096 100.0�k 100.0%n 100.096 Source: ~'ariou~ Arab Fimds Annual Reports 1 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400054041-7 FOR OFFICIAL USF ONLY The Channels of Inter-Arab Financial Assistance Long before the dramatic surge in oil prices and in the revenues received by oil producing countries in 1974, two , A.rab countries established funds to aid other Arab countries. The funds were the Kuu�ait Fund, established in 1961 and the Abu-Dhabi F~nci established in 1971. Since 1974, however, several Arab Funds have come into - existence in a variety of institutions: some are multilateral, others are bilateral while others are special. The overall objective of this variety of funds is to promote the process of economic development of Arab, African and Asian countries - either on a country-by-country basis or on a regional economic integration basis - by encouraging Arab ' joint-venture projects and economic infrastructure. The combined authorized capital of these funds is approximately , lb billion U.S. dollars and more than half has already been committed to 60 countries. Specific objectivea of some well-established multilateral, bilateral Arab funds and - special Arab funds are examined here. Multilateral Arab Institutions for Financial Co-operation The m~jor Arab multilateral financial institutions include, . the Arab Monetary Fund (AMF), the Arab Fund f~r - Economic and Social Development (AFESD), the Islamic Development Bank (IDB), the Arab Investment Company ~ (AIC), the Inter-Arab Investment Guarantee Corporation (IAIGC), and the Arab Fund for Technical Assistance to _ Arab and African Countries (AFTAA.AC). The spec~c objectives, operations and resources of these funds are examined below: 1) OBJECTIVES a) The Arab Monetary Fund (AMF) 2 The AMF was established on February 2, 1977 with an authorised capital of 1.3 billion dollars as of June 1979. The AMF's Articles of Agreement include the following goals: To correct disequilibria in the balance of payments of . member-states. -To promote the stability of exchange rates of Arab currencies, rendering them mutually convertible, and striving for the removal of restrictions on current payments between member-states. -To establish such policies and modes of Arab monetary co-operation as will achieve the quickest pace of economic integration, and speed the process of economic growth in the member-states; To tender advice, whenever called upon to do so, with regards to policies relating to the investment of the financial resources of inember-states in foreign markets, so as to insure the preservation of the real value of these resources ~ and to promote their growth; -To promote the development of Arab financial markets; -To study ways to expand the use of the Arab Dinar a.s a unit of account and pave the way for the creation of a unified Az�ab currency. b) The Arab Fund for Economic and Social nevelopment (AFESD) The purpose of AFESD is to assist in financing economic and social development projects in Arab countries by means _ Z FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440400050041-7 FOR OFFICIAL USE ONLY ~ of loans granted on easy terms, to governments and to public ~ or private institutions, for financing projects that are vital tu ~ the region or for joint projects among Arab countries. It is a regional development bank for the Arab worid. It encourages the investment of public and private capital, promotes the development of Arab regional projects, and provides technical assistance in various fields of economic development.' c) The Arab Bank For Econor:~ic f)evelopme.~t in Africa . (BAi)EA) The purpose of BADEA ia to caoperate in the economic ~ development of African countries, encourage the flow oi Arab capital to Africa and provide the necessary technical assistance. It works closely with the Special Arab Assistance ~ Fund for Africa (SAAFA) which responds to emergency ' situations in Africa as well as to difficulties caused by the increases in oil prices since 1973. BADEA provided loans to national and regional development finance institutions and to finance foreign exchange components of major agricultural _ or industrial projects. ~ - It alsb provides technical and financial aid in identifying economic development projects and acquiring tec}inulogical know-how.' d) The Islamic Development Bank (IDB) The purpose of IDB is to mobilise resources to finance economic and social development of inember countries and Muslim communities in accordance with the principles of the Shari'a. It invests in economic and sceial infrastructure projects, makes soft loans to private and public sectors, establishes and operates special funds for apecific purposes, assists in the promotion of foreign trade and provides technical assistance.' ~ Thirty four Arab and Muslim countries are members of the IDB which has capital of 2 billion Islamic Dinars (billion SDRs*). Only 45 per cent of its tota] loans went to Arab _ countries as of December 31, 1978, mostly to finance infrastructure and public utilities. As of September 1978 the IDB's subscribed capital stood at 7b7.5 million SDRs. e) The Arab Investment Company (AIC) The AIC started its operations in 1975 with an initial capital of $255 million. The main objective of the AIC is to promote investment of Arab capital in the economic development of member-states.' To this end, the AIC encourages and promotes the financing of projects in agriculture, industry, commErce and ~ services.' Its charter empowers it to: - a) Establish new pr~jects or participate in equity capital in - such projects and also purchase, totally or partially, projects already in operation; b) Undertake all business operations as may be required to achieve its objectives; c) Place fi~nds in, and borrow directly from financial markets; d) Issue bonds and accept time deposits, as may be needed f,o achieve its purposes; ~ 3 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPR~VED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 FOR OFFICIAL USE ONLY i e) Undertake any project concerned with minerals, oil or other naturalresources; ~ Construct and purchase rea? estate; ' g) Provide technical assistance and undertake any necessary i ' study to achieve its objectives. f7 The Inter-Arab investment Guarantee Corporation (IAIGCI ~ - The main ot~jective of the IAIGC is to encourage the flow of capital, public or private, between Arab countries by , providing insurance coverage for Arab investors in the form of reasonable compensation for losses resulting from non-commercial risks - such as nationalization, seizure, expropriation or the introduction of new restrictive regulations and measures affecting the repatriation of - capital or transfer af profits by Arab in~eato.r~ The IAIGC was established through the initiatives of both the Council of Arab Economic LJnity (CAEU) and the Economic Council of the League of Arab States in 1970. In my view, the IAlGC is a prerequisite for the future success of Arab joint ventures and their multiplication. g) The Arab Fund for Technical Assiatance to Arab and African Countries (AF'TAAAC) The Arab Fund of the AFTAAAC co-ordinates and finances technical assistance programs arranged by the League of Arab States and the specialized Arab agencies, prepares surveys of development projects in Arab and African countries, provides consultancy services and experts and organizes their exchange between Arab and African countries. It is also called upon to co-ordinate scientific and - technological development, as well as the development of the means and modes of production between those countries.' - 2) Operations of the Most Important Multilateral Fin~ncial Assistance Institutions Most of the Arab multilateral financial institutions use their resources to finance economic and social development projects by means of long-term, low-interest loans. Their object is to improve living standards and promote a more balanced growth ~of agriculture, industry, housing, employment and education. In addition to the financing of inember countries' specific projects, the funds provide and finance technical assistance for regional development feasibility studies. For illustrative . purposes,, three of the most important Arab multilateral financial institutions, the AMF, AFESD and BADEA, will be examined here. ~ The Arab Monetary Fund (AMF) The operations of the AMF consist of loans to finance overall balance of payments deficits. In deciding on the terms and conditions of its loans, the Bank is reqcired to consider the following factors: " 1)The financial position of the AMF and the programs it dravl?8 upon for its loans and financial activity. * Special Drawing Rights. 4 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400054041-7 FOR OFFICIAL US~: ONLY 2) The extent af the need for the loan in the light of the overall deficit in the balance of payments of the particular member country and in the light of its reserves and economic and financial ~onditions. 3) The ability of the member to repay the loan at the maturity date in accordance with the lending policies of the AMF, as well as its ability to borrow from similar financial institutions and the amounts of the loans it has to repay to these institutions or to the AMF. 4) The volume of the AMF loan to the member country in relation to its paid-up subscriptions. . 5) The degree of growth in the economic exchanges of the member country with other Arab countries; and 6) The degree to which the member country has used up its unconditional rights in regional lending institutions of a similar nature. - Furthermore, loans are to be made for a period of not more . than seven years and may not exceed twice the amount of the member's paid-up subacription. The AMF can also provide loans in support of a program = designed to cope with a fundamental balance of payments deficit which is structural in nature. Loans are provided at concessionary and uniform rates of interest and charges. It is worth noting that, due to its very recent establishment, the AMF has not established its rates structure and ha.g yet to make its first loan.' The Arab Fund for Economic and Social Development ~ (AFESD) The fund started its operations in 1973 with a view to giving priority in the allocation of ite resources to ~ Mauritar~ia, Somalia, Sudan, People's Dzmocratic Republic of Yemen and Yemen Arab Republic, all of whom were identified by the fund as the least developed nations in the . Arab World. These countries were recipients of 40 per cent of AFESD commitments in 1974, but as of 1977 their~ahare only amounted to 26 per cent. The Fund's total loans in 1977 were `L21,900 Kuwaiti Dinars (KD) as opposed to 139,500,060 (KD) in 1976. These represent 70 per cent and 64 per cent respectively of the Fund's total liabilities and equities - in other words, of total assets.10 ~ The sectorial lean distribution by AFESD amounted to 75.9 per cent in infrastructure, 15.4 per cent in manufacturing industry and industry financing and 8.7 per cent in agriculture and agricultural financing. Over the years ' the sectoral aid distribution of the m~jor Arab funds is as shown in Table II below: Table II � Sectorul Distribution of Aid Given by Three Major Arab Fundg Snudi Arabia* Kuwait** Abu-Dhabi"'* 'I~ansport & Communication 35.196 32.0�~fo 16.44b Electricity, wateretc. 22.5 28.0 22.8 Mining & Petroleum - - - Education & Health 16.5 - - Industry & Other 18.9 20.0 22.8 Agriculture 7.0 20.0 6.0 ] 00.09F ] 00.0'Yo 100.03'0 * For thc period 1975-1978 For the period 1962-1978 For the period 1976-1978 Source: Varioas Arab Funds' Annual Reports . 5 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440400050041-7 FOR OFFICIAL USI? ONLY The cumulative loans commitmenta to Arab countries from 1973 to the end of 19TT reached 295.3 MF:D, while the ~ cumulative disbursements for the same period were 56.5 MKD which represents only about 17 per cent of cumulative commitments. At present the Fund is considering~financing 31 projects, including Arab joint ventures. ~ Out of the cumulative AFESD total commitments, 23 per cent were allocated to Egypt, mainly to finance manufacturing and irrigation projects. 52 per cent of the loan commitments went to four Arab countries; E~t, Morocco, Sudan and Syria. These countries account for 55 per cent of the population of the Arab Wo~ld. In addition to its loan activities, AFESD is working hard on the training of skills whir.h can be used to prepare, analyze and implement investment feasibility studies. AFESD's total technical assistance up to 1977 reached 3.4 million KD and covers 14 regional and sectoral projects. In its search for a coherent long-term strategy for economic developmEnt assistance, AFESD, with the joint participation of the Organization of Arab Petroleum , Exporting Countries (OAPEC), engaged the University of _ Wisconsin to prepare a comprehensive study on the economics of the natural resources of the Arab World, with specific reference to pricing, conservation, technological transfers and the impact of generalized preferential treatment.10 AFESD created x speciaD unit to identify investment opportUnities, prepare them in the form of projects, and promote them for investment purposes in the Arab ' coiintries. In 1978 this unit prepared 31 investment projects, including joint-Arab multi-n~~tional ventures in - communications and telecommunications and agricultural - projects in the Sudan, with the co-operation of the Arab Organization for Agricultural Inveatment and Development. The Fund's special unit is responsible for: a. the preparation of a liat of investment opportunities and the main features of related projecta; b. providing assistance in the for~nulation of agreement~ and related documents and in the acquisition of the technical know-how and qualified staff required to implement new projects; c. encouraging capital flows in search of investment . opportunities towartls member countries with liquid assets. d. helping national institutions in charge of development finance. More than any other Arab multilateral financial institution, AFESD, in caoperation with international and Arab national institutions, the Arab League and the Council a of Arab Economic Unity (CAEU), is actively and continuously seeking to foster closer economic co-operation ~ and integration among Arab countries. The Fund is actively engaged in facilitating the flow of financial resources within the region. Its efforts tend to increase the capacity of Arab member countries to absorb increased investment funds productively. The Arab Bank for Economic Development in Africa (BAnEA) BADEA's 1979 Annual Report indicates that since 1975 the Bank's operations totalled 203 million U.S. dollars. Aut 6 FOR OFFICIAL USE ONL~' APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440400050041-7 M~ok oF~�ec. ~ni. USF: ONI.v of the cumulative loans of $203 m~llion that BADEA made ' from 1975 to 1979, the Bank's sectoral financing distribution ~ appears as follows: Sector Per cent of Total Loans - Infrastructure & Power 59.73�Yo - - Agriculture 19.8496 =Industry - - - 20.43R6 Total ~ BADEA is primarily a development bank and therefore its lending activities are project-oriented, rather than financing balance of payments deficits. Particular attention is given to African projects which are well integrated into defined ' development plans and programs which foster employment and exports consistent with African sncial as well as economic development." It is worth noting that, following BADEA's request to expand the scope of its loan activities, the Board of Governors decided, during its third annual meeting in Khartoum on December 3, 1977, to merge the 350 million ~ dollars capital of the Special Arab Fund for Africa (SAFA) with the 392.5 million U.S. dollars total of BADEA, thus ~ . expanding BADEA's tatal capital as of 1977 to 742.25 million U.S. dollars.i' Most of BADEA's projects co-financed with the World Bank, the African Development Bank, the African Development Fund and other joint-Arab financing sources. Thirteen out of a total of 23 African projects have been co-financed by BADEA. In 1977, Arab co-financing of thirteen African countries ~ amounted to 338.34 million dollars and represented 30.7 per . cent of tota! project costs. Cumulative joint-Arab financing and co-financing of African development projects reached a total of about 3.3 billi~n U.S. dollars from 1973 to April 1978 and represented 23 per cent of the total costs of Arab � co-financed projects in Africa. BADEA's assistance to African countries is in the form of loans with a high concessional element consisting of a 10-year grace period, a 25-year loan maturity and interest rates ranging from 4 to 6 per cent. The ma~jority of BADEA's loans were made on concessionary terms having a grant element equivalent to 47 per cent." In planning its aid, BADEA aims to apread its loans over . the broadest geographical range possible, while paying ~ special attention to the poorest and least developed ~ _ countries. The Bank's average loan per country for the period 197r1977 amounted to $9.13 million." With regard to . project generation and planning, the Bank prepared an inventory of 910 projects in various African economic sectors including 346 national projects,' 13 regional ones and 51 dealing with technical co-operation. 7 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400054441-7 ~ FOR OFFICIAL USE ONLY The pipeline of these 910 projects that BADEA prepared gives these weightings :o the following sectors: - Infrastructure ~'6~O -Agilculture ~g'6% . - - Public Utilities 22.7�l0 - Industry 14.1~'0 Total 1 BADEA's officials prepared a medium-term strategy for its lending operations during the 1975-1980 period. According to this plan, BADEA would, by 1980, make cumulative investments of about 1.2 billion dollars or an average of 200 million dollars a year.16 it should be noted, however, that, while projected. loans for 1975, 1976 and 1977 were respectively 35.5 million, 120 million and 25(i million dollars, the actual loans and grants for those respective years were only 81.6 million, 62 million and ~ 66.29 million dollars. 3) Resources for Arab Multilateral Financial Assistance Practically all members of thP League of Arab States participated in the capital subscriptions of the major Arab Funds, particularly in the Arab Monetary Fund (AMF); the Arab Fund for Economic and Social Development (AFESD); and the Arab Bank for Eeonomic Development in Africa . (BADEA). The tota] authorized capital of Arab multilateral financial institutions is about 10 billion U.S. dollars and the global capital resources of all Arab funda (multilateral, , bilateral and special) are approximately 20.0 billion dollars. The AMF:'I~venty Arab states are members of the AMF. This Fund has an authorized capital of 250 million Arab Dinars (AD). `The AMF capital stock comprises 5.Ofi0 shar~es � each having the value of AD 50.000. Algeria and Saudi Arabia are the largest sharehalders with subscriptions of ~'iD 38 million each. . Other major subscribers are: Kuwait, Iraq and Egypt with AD 25 million each. The Board of Governors may increase the AMF capital by a specia] majority decision. In addition, the AMF has to establish a Qeneral Reserve Fund. The AFF.SD: Twenty one Arab countries are members of this Fund. The agreement eatablishing AFESD fixed ita authorized capital at 800 million Kuwaiti Dinars (KD), or 2.736 billion dollars. The Fund's subscribed capital in 1977 was 370.4 billion KD or about 1.7 billion dollars. The Fund's Basic Agreement document suthorized it to obtain ~ supplementary financial resources by issuing bonds or , securing loans from public and private Arab institutions and international organisations. When it started operating in 1974, AFESD planned to undertake operations to an average annual value of 60 million KD. The BADEA: The agreement establishing BAAEA fixed the Bank's capital at 231 million dollars. This amount has been fully subscribed. In addition, following the Arab-African Summit Meeting in Cairo in March 1977 and the Arab Funds Chairmen of the Board meeting in Kuwait in 8 ~ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400404050041-7 FOR OFFICIAL USE ONLY April 1977, a decision was made to consolidate BADEA's accounts with the Specia] Arab Aid Fund for Africa (SAAFA). The merger resulted in BADEA's expansion of the financial resources available for assistance to ?42.25 million dollars. In addition to strengthening BADEA's capitalisation through the merger with SAAFA, the Bank received commitments in 1977 from four .Arab countries (Saudi Arabia, Kuwait, the United Arab Emirates and Qatar) ~ totalling 1.45 billion dollars. B) Arab Bilateral Financial lnstitutions: Ubjectives and ~ Operations , Arab bilateral aid flows are as significant as multilateral ~ Arab aid. 'I'his might be explained by the fact that, for ' prestige purposes or for closer control, the setting up of . Assistance Funds on a national basis is more effective than on a multilateral basis. There are four major ~irab bilateral financial institutions specializing in development assistance to both Arab countries and African and Asian developing countries. The major objectives and operations of the four funds (the Ruwait Fund for Arab Economic Development; the Abu-Dhabi Fund for Arab Economic Development; the Saudi Development Bank and the Iraqi Fund for External Development) will be examined below. - The Kuwait Fund for Arab Economic Development (KFAED) . ~ The KFAED is the oldest and most experienced development assistance fund in the Arab World. It started . ~ its operations in 1961 as the main agency of the Government of Kuwait for the proviaion of loans and technical assistance to Arab countries and has recently extended its development - assistance to non-Arab African and Asian countries. The KFAED's capital was increased manyfold, from an initial capital of KD 50 million in 1961 to KD 1,000 million, or 3.42 billion dollars, in 1977. The Fund's paid-up capital in 1977 was KD 456.3, or 1.55 billion dollars; while its total - assets were KD 561.7 million - close to 2 billion dollars. The Fund's lending in the year 197G-1977 reached KD ' 114.635 million (about 390 million dollars) to 22 countries. The KFAED's total cumulative loans since its creation in 1961 reached KD 434,995,000 - about 1.5 billion dollars - _ up to June 1977. The latest sectoral distribution of the Fund's luans was as follows: tndustry ~8~0 ~ Transport 28% A~;riculture 24�l0 , Loans to Afric~~n cuuntries in 1977 reached a total of KD 26,130,000 or about 89 million dollars. It is worth noting that BADEA'S loans to African countries in 1977 were only 66.3 mil]ion dollars. In addition t~ th~ KFAED's lending activities, the Fund's technica] aid in 1977 reached KD 1.2 million or about 4 million 9 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000440050041-7 FOR OFFICIAL USE ONLY dollars, and its cumulative total technical aid since 1961 has reached 44 countries and amounted to KD 5.3 billion or about 18 billion dollars. Due to its relatively long experience with development aid programs and projects, the KFAED is playing an important ' role by ,co-ordinating its activities with the m~jor regional ' and international financial institutions and technical aid organizations. The Fund, in close co-operation with the Arab Fund for Economic and Social Development (AFESD) has embarked on a project to standardize loan procedures, loan insurances and' the establishment o~ lines of credit.1� . Abu-Dhabi Fund for Arab Economic Development ' (ADlFAED) This Fund was established in July I971 to help Arab, . African and Asian developing countries by means of loans, equity participation and technical assistance grants. The ~ . ADFAED capital is 72,000 million Dirhams (Dh) or about 500 million dollars. The Fund's total loan commitments at the end of 1976 ~ reached Dh 1635.8 million - about 410 million dollars - ~ distributed among 42 countries. The largest share of loan . commitments (79%) was received by 12 Arab countries with 341oans amounting to Dh 1,294.6 million or about 323 million dollars." Abu-Dhabi Fund's sectoral distribution of loan commitmenb by projects in 1977 is as follows: _ Project Number % of total Total Amount of in million Dh. Loans Agriculture 3 2U 70.5 F.lectricity 4 26 160.1 Roads & Railroads 1 7 40.0 Industry 3 20 132.0 Port & Suez Canal Development 3 20 125.9 Telecommunications 1 ? � 47.0 Total 16 100 b75.5 The Fund does not provide program loans and restricts ~ itself to project ]oans and technical assistance without any preference between national and multi-national projects. Furthermore, the Fund does not acquire more than 15 per cent of the equity participation in any single project. Direct loans may not exceed 50 per cent of the total cost of any project. The 3sudi Fund for Develapment (SFD) The SFD was crart~red in September 1974 in Saudi - Arabia. It is empuwered to participate in lending operations - to de~eloping coun~.riea in the M~ddle East, Africa and Asia. 9 lts capital was fixed to 10 billion Saudi Ryals (SR), about 2.84 billion dollars." . In 1977 the ~Fund participated in 33 Arab projects, w�hich represented 61 per cent er :ia 4.otal lending commitments of SR 6.8 bill'son. 10 - FOR OFFICIAL L;SE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000440050041-7 FOR OFFICIAL USE ONLY The sectoral and geographic loan distnbution of the SFD ~ for the period of July 9, 1975 - June 27, 1976 were as folloa-s: GeoRraphic � Distribution by Sectior Percentage Distribution Percentage � , ~ Infrastructure 7196 Africa 45% Agricuiture 1896 Asia 5296 ' . Health & Education 11% Other ~ 3% . Total 10096 10096 . ~ C) Special Arab Financial Assistance Institutions ' It is sufficient here to briefly survey the main objectives of ~ these joint financial ventures to reflect their importance as a � - source of assistance for the economic and social develogment of Arab countries. Attempts to collect data on individual or aggregate loans � . so far made by these inatitutions has not been possible due to the lack of information available. ' Information on Arab joint financial ventures, which have ' been active in facilitating inter-Arab investments and trade on a commercial banking basis, covers the following six important institutiona. ~ ~ Union des Banques Arabo-Frangaises: This bank has its headquarters in Neuilly in France. It was established on February 26,1970 with a capital of 110 million French franca. Its objective is to contribute to the financing of foreign trade transactions and of deveZopment projects in the Arab countries. The ma~jority holders of the . Bank's assets are lb Arab cot~ntries who own 60 per cent of ~ the total shares, followed by Credit Lyonnais with about 32 per cent. Libyan Arab Foreign Company ~ This Bank is located in Tripoli in Libya. It was established in 1972 with a capital of 68 million dollars. Its objective is to finance development projects and to promote Libyan investments abroad. The Fund sponsored a Conference in June 1976, attended by six Chairmen of Arab Funds which discussed methods of co-ordinating financial and technical assistance channelled through Arab Funds. , . The Iraq Fund for External Development (IFED) This Fund was established on June 6, 1974 with art initial . � ~ capital of 160 million dollars. It has a borrowing capacity of twice its total capital. The Fund's objective is to achieve economic integration and development of the Arab countries as well as economic and sceial development of other developing countriea. The IFED's operations comprise:1� . a) The provision of inedium and long-term concessional loans to development projects in other Arab and developing countries, with priority given to projects vital to the development of the countries concerned; 11 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-44850R000400050041-7 ~ FOR OFFICIAL [JSE ONLY ~ b) participation in development projects, especially those of an investment nature, pnority being given to projects which help bring about Arab economic integration. c) The encouragement of the investment of public and ' private capital, directly or indirectly, in development . projects. d) The provision of technical asaistance to developing countries in all fields where problems of economic development arise. e) The financing of pre-feasibility and feasibility studies. ~ So far, the Ii~aq Fund has not been as active as the previous . two Funds. ~ The International Arab Bank for External Trade and ' ~ Development ~ This Bank has its headquarters in Cairo. It was established in 1973 with a capital of 75 million dollars: The � ; objective of the Bank is to extend assistance to developing countries outside the Arab World. The main shareholders of ~ the Bank are Libya, Kuwait and Egypt. ~ . The Kuwait Investment Company This investment company has its main offices in Kuwait. It . , was established in 1961 with a capital of 2b million dollars. Its � objective is to invest funds directly in industrial enterprises i in Arab countries - specifically in Egypt, Sudan and Syria. ~ The total shareholding of thia investment company was . , equally di~ided between the Kuwait Government and 'i private Kuwait concerns. The Arab Investment Company This investment company is headquartered in Riyadh in . Saudi Arabia. It was established in July 1974 with a capital of 206 million dollara. Its objective is to invest Arab funds in agriculture, industry, trade and land and sea transport. The Arab countries - Saudi Arabia, Kuwait, Qatar, , gahrain, Iraq, the United Arab Emirates, Egypt, Syria, ~ ~ Sudan and Jordon - are participants in this company. . Among its major achievements are the cafinancing of a 600 million dollar livestock project in Syria, a 180 million dollar sugar project in the Sudan, and a 338 million dollar mining project in Jordan. The Atab Petroleum Investment Corporation . ' Thi;, corporation is located in El-Dammam, Saudi Arabia. It was established in 1974 with an authorised capital of about one billion dollars. Its main objective is to evaluate, undertake, finance and implement petroleum and natural gas projects. ' The major contributors to this investment corporation are Saudi Arabia, Kuwait, and the United Arab Emirates, witt, 17 per cent of total participation each. � The cumulative initial authorized capital of the above six major Arab financial institutions, whose loans are subject to market conditions, amounts to about 1.4 6illion dollars of which one 6illion is represented by only one financial institution - the Arab Petroleum Investment Corporation. ~ Condusion . Arab aid 'is becoming vi;,al in a world where many of the traditional donors find it more and more difficult to expand or - even maintain their previous aid targets. The multiplicity of Arab institutions for both multilateral � and bilateral financial co-operation within and outside the 12 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R004400050041-7 FOR OFFICIAI, USf~: ONI.ti' - Arab World aince 1974, attests to the willingness of the Areb Petroleum Producing and Exporting Countries (APPEC) to play an increasingly vital role in total foreign financial assistance. This role is best reflecteu through the IMF's offer of a seat to Saudi Arabia on its governing body in 1977 and the latter's large contributions to both the IMF and the World Bank. Furthermore, Arab aid, unlike moat of the industrialized countries' foreign aid, does not tie in the recipient to buy goods from the donor country for obvious reasons. ~l.s a result Arab aid to developing countries generates some indirect bei~efits to the exports of the industrialized countries. Since most of the financial assist.ance made available by - Arab funds concentrates on infrastructure, transportation and communication, the funds tend to spread the burden and _ risk through encuuraging consortium loans. As a result, the chancea for a developing country to receive a major international loan for a project are enhanced if such a project qualif es for a loan from an Arab Fund. In order for Arab aid to be more efficient, Arab multilateral and bilateral financial assistance should emphasize the need to mobilise qualified and well-trained Ara6 technical personnel. Arab technical assistance may capitalize on the existence of Arab skills in the Arab countries and provide the necessary incentives to attract skilled Arabs living and working outside the Arab World. Footnotee ' OECD Development Co-operation, 1977, 1978 and 1979. ' IMF Survey, March fi, 1978. ' See AFSED Annual Report 1977 (In Arabic) and (Annex 2). Also see A{;reement establishing AFSED; UNCTAD; TD/B/609/Add 1, Vol. V, pp. 64-72. Auguet ?A, 1976. ~ See BADEA Annual Reporte 1976, 1976. Aleo eee Agreement establiahinR BADEA, UNCTAD, TD/B/6(K3/Add 1. Vol. V, August ?A, 1976, pp. 64-72� The creation of BADEA took place et the Sixth Arab Summit Conterence concerning the etrengthening of Arab economic, financial and � technical co-operation with the Ahican countriee and at the nineteenth ordinary seasion of the Economic Council of the Arab League who adopted resolution 686. 6 See Agreement eatabliahing the IDB; UNCfAD, TD/BI609/Add. 1 Vol. V. ~'Ph~ inal membera of the AIC are: Abu-Dhabi, Bahrain, Egypt, Kuwait, ~ Saudi Arabia, Sudan; later Iraq, Jordon, Morocco, che Syrian Arab Repu and'l~nieia accedcd� + See Ag~eement eatabliahing the AIC, UNCTAD, op. cit pp. 8&105. ' See pamphlet prnpared for the CAEU's General Secretariat on "Arab Fund for Technical Asaistance tu African and f~reb Countriea" 19T7, p. 4. ' IMF Survey, March F,, 1998. '�OAPEC, News Bulletin,~Vol. S No. 2, Kuwait, April 1978, pp. 1&23. " BADEA's Annual Report, 19?? p. 9(In Arabic). - " In March 1977, at Lhe A~o-Arab Summit Meeting; Saudi Arabia and the Gulf States decided to pro~~de lOb million dollare to BADEA'e capital. - " BADEA's Annual Report, 1977, p. 9. " ibid, p. 9. ' " BADEA's Annua] Report, 1376, p. 26. " Organisation of Arab petroleum Exporting Countries, News Bulletin, Vol, 4, No. 8; in Arabic, p. 26; Kuwait, March 1978. " OAPEC, Newe Bulletin, Vol. 4, No. 6. Kuwail, May 197R, p. 13. - " OAPEC News Bulletin, Vol. 4, No. 4; Kuwait, April 1978, pp. 23-29. See Law No. ?7 ieeued by the Iraqi Revolutionary Command Council. June 6, 1974; Baghdad; Iraq. - COPYRIGHT: The Maghreb Review 1980 CSO: 4300/101 13 r~~. nr, r.Tnr i Tc~r nwti v APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400404050041-7 FOR OFFICIAL USE ONLY INTER-ARAB AFFAIRS MIDEAST LEADERS FOCUS ON PERSONAL SECURITY Paris AL-WATAN AL-'ARABI in Arabic No 231, 17-23 Jul 81 pp 22-27 [Article: "Secur.ity Measures for al-Asad Terrified Ilyas Sarkis; Who Is Protecting Arab Leaders?"] [Text] Begin is an obedient client af security agen- cies; orders to assassinate Palestinians come out of his private office. A1-Sadat moves constantly between his "resthouses" and prefers the helicopter to street traffic. A1-Qadhdhafi has surrounded himself with SAM missiles as a precaution against an Israeli air operation against him. - Security men examined the gifts brought by guests to the wedding of Khaddam's daughter. "Life is dear," and security haG become a matter of personal concern for all leaders and politicians in a world that has come to believe in vio- lence and is teeming with conspiracies, disturbances, and assassins. The Middle East is one of the most turbulent areas of the world and one of its most dangerous to the lives of rulers and leaders. Personal protection measures there have reached unprecedented proportions with regard to tightness, scrupulousness, costs, precautions, contingencies and the use of electronic weapons and equipment as well. This report contains a review of some of the security measures that are taken by presidents and kings in the Arab area and in the world to provide safety for them- selves, their families and their regime~. There is no area in the world where disturbances and political violence abound--assassinations, demolitions and destructions--as they do in the Middle East area. In this, the Middle East resembles the European Balkans in the first half of the present century. _ In view of this situation security and protecCion measures followed by the regimes in the area have reached a high level of tightness and scrupu- lousness. This applies equally to those measures whose purpose is personal 14 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/42/09: CIA-RDP82-00850R000400050041-7 FOR OFFICIAL USE ONLY protection, that is providing security to rulers and senior officials, and to those that seek to protect the regime as a whole. For that purpose the capabilities of security agencies in thei.r entirety have been marshaled. These include scores of thousands of policemen, strong security guards, undercover detectives and thousands of local and foreign officers and experts. Different kinds of weapons, including jet airplanes, - helicopters, light tanks and armored vehicles, machine guns, revolvers, poi- sons and various chemicals are utilized. With the progress in technology and electronics security agencies that are charged with the protection of rulers find themselves utilizing the most modern, the most advanced and the most precise telecommunications equipment, eavesdropping devices, warning devices, close circuit televi- sions and food testirg laboratories where food that is offered to the rulers can be tested. The clothes they wear and the implements that are given to them as gifts or that they use are also tested. � It may be said that there is hardly a ruler in the world who has not in one way or another become the�prisoner of personal protection measures and his personal bodyguards. Those rulers, nevertheless, are constantly living in fea1- of being attacked at every moment. It has been established that no matter how protective and scrupulous they are, security measures cannot - provide 100 percent persoilal security. To raise the measure of security, leaders and rulers have had to minimize the number of times they go out to meet the public, shake people's hands, attend public celebrations and rallies or announce beforehand the times of their tours, visits and trips. In palaces and presidential offices scrupulous measures are usually taken, especially in the private wing which is used by the president or ruler as a residence or an office. There, not even a president's closest personal aides may violate these measures. This is a geileral sketch of the security problem as far as rulers and ~ regimes are concerned. The dimensions of the problem become clear to the average citizen who hardly perceives more than its superficial aspects in the following examples we present of security measures that are followed in some countries of the area and the world. Severe Measures for Begin's Protection Ii1 Isr.n~, fi~hins;),unlyproducing?.7~/oof a the GDP (or ~.-t~~. it che ~>il ~ectur ~~'hich only employs 2�!0 of the labour force is ~,mitted). That ;.hare of the (non-oil) GDP is supposed ta remain constant, according to t'ne De~~elupment P�.an ;Tabie l i. ~ ~-._.,o-.-- T.~BLE 1- COtiTRIBUTIO~ ~1F .+GIiICL'L';'C'RE TOWARDS GROSS DOMESTIC PRODUCT 19 ~ l9 i 1" 197-1' 19 i 5*'" 1976** 19;~0"� Year . ~5 GDP total (e~cL oil) ~3'.Il l~~Ml. l 1195.1 li-li.-4 '?U:3~. i 3:i$5.�L in million LD ~ Share of agriculture _ � ' in p1c i. ~ 5.�_ 4.8 ~A ' A~~eraRe annual grow~th rate of aRr'icultur~l _ l~,g�* praiuction ` realized constant 197? pncr~ pianne~l constant 197~ pnces Source: Economic and Sucial Tran~formation Y!an 19~6-19`s0 The impor[ance of the agricultural labour force �~ill grow the total". Table 2 show�s the developments from 196~ to to 1.5f3.00~~ per'sons in 1980, ~~~hen it will have a 1 ;hare ~~f 1976. T.~3LE - PERSO~S E~SPI.OY'ED :~LL SECTORS aVD THE PRIVS~RY SECTOR ~~,y 19 i 3 1976 = 1'ear ~ ~05,'_'SS d.~r'i ~1.192 '1.5~"c 691,.~.00 :i2.5~'c F.mulm'e~l persons' � Empiu~�e~i per~ons ~ 1�3,4i1 lU.0Q/o 1-Sb.110 13.�~a~�* in P^mar: ~ec~ur 1da.453 0.9 " In 19Fi1 emplu}�ed prr~nr., n~'er 8 4�ears of a~e ~a~erP counted: in I~i73 and 19~6. per.:on.~ ~>~�er lry _�~a;~ ,~Ke. 1 u',i ~ ~harr "f foreii,^iers ~ource: Fr~leral German ~taustical ~en�ices - ~~urvey at the end of 1976 even gave a figure of 169,958 peasant I~oldings, 7~% of which were in Tripolitania. P,11 e~�idence shows that, durir.g the last 20 years, the number of farmers has remained stable. Birks and Sinclair have explained �'hy a large number of Libyans remain in the - traditional ~ector. The cash income they need to sustain their impro~�irK li~�ing standards is largely derived from non-wage sources ~uch as social security benefits for children and for their education and remittances from relatives working in the m~xlern sector, a typical sit:~ation in oil-rich countries. How�e~'er, this prevents a rapid modernisation and shift towards hiRher producticity. ~s explained in the following ' 37 F04~ OFF[C[AL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPR~VED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 FOR OFFIC~IAL US~: t1NLY ~ paragraphs, linkages between khe traditional and the modern sector are fe~� and the dualism inherited from ~ colonial times persut~. Three types of ag!-irultural prou~ucers can be distinguished at present: . 1) Traditional peasants, ��ho are capital-extensive and were formerl~� labour-intensive. Their structure of production and _ Cand ow~nership ~how�s all grades of transition betw~een _ indi~�idual and collective systems, and from sedentary to - semi-numadic 1'?Onc of all peasants) and fully nomadic ways of - iife. In the 19t;Os, the system of land ownership was regarded ' as th~ ~::arn constraint on de~eiopment. Only irrigated land ~ co~~lu be claimed as indi~�idual property ~melkl. All other la.nd was ~�ollectively oa-ned, the indi~ldual only having a right cf u5ufruct. Today, most of the produc~rs remain on a subsistence le~~el, producing few or no crops. i~lost attempts to m~ernize the sector frem ;:-ithin have failed so far. Ther~ has been a social and geographical shift of labour ta the modern secondary and especially tertiary sectors _ which, in [urn, hardly influence agriculture positively. The rising deman~ i~ met rather with imported goods of higher qualit,y and often lower prices". The future of the traditional sector thus seems uncerta~r.. No impiils~s cGme from within, pension type incomes distributed by the state tend to , stabilize it and the new� fa.rms proposed to the peasants are ~ ~ ~ften r.ot attraeti~~ e en~ugh to induce their mobility. 'l ) The modern private and caoperative sector As succ2ssors to Italian settlers Libyan entrepreneurs ma.nzged moderi, capital-intensive and cash-crop oriented farms in those regions favoured by natural conditions. The tYend towards absentee landlordship, with skilled managers running farms with pr~edo~ninantly foreign (Tuizisian, . Egyptian) manpow�er, has been slowed down by a law promulgated in ~Iay 1978. Accorciing to the Green ~3ook :.logan, "partners not wage workers" and "the house to whom i~ houses", Lib31an tenants and workers are free to take over ; ~uch farms, but this law does not apply to foreign workers. - On the other hand, the co-operative sector (1979:210 agricuitura! co-o~eratives) has shown quick development, as . all p~asants who 5ers~lit fr~m the redistribution of land and ~ farms have to ~e membe:s". No figures are available which distingui~h bctween the two sectors, but it is estimated that s~ about half' cef the agricultural surface (but normally the - poor~r sciIs) belongs to the traditianal sactor. ~ 3) Tha siate itself runs some of the farms formerly belonging ' to Izalian companies, as ~~�el! as the new projects in the Kufra ard Sarir regions (see below). This amounts to about lOnc of the a~-icultural surface. Common to beth pdrts of the ~ m~odern sector is the shortage of manpower, as hardly any shift fr~orn the tr~aui;ional sector is taking place. ~1lready by 19 r~, 13.'3~ ~f the 133,100 persons th~n employed in agriculture w~ere non-Libyans, and the figure is expected to rise further. To implement the L)evelc~rnent Plan _ (19 i 6-1980), 15 i,145 ~killed/semi-skilled and 76,615 � unslulled additional workers are needed, of w�hom only 3-1,350 and ~,300 respectivQly can be supplied by [he Libyan p~pulation. Of the i40,110 foreigners thus needed more than one fifth ~~~li be absorbed by the modern agricultural ' ;ector'�. 38 � FdR nFr [CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R000400050041-7 FOR OFFIClAI. USE ONLV Production and Self-Sufficiency Natural conditions and backward production methods in , the traditional sector combine t~ produce low yields which, ; for the main crops in 1972, wheae and barley, attained only 3.8 and 7.1 quintals per hectare respectively. The lack of skilled labour in the new farms, administrati~ e problems connected with the modernisation of agriculture, and natural hazards such as increasing soil salinity have since contributed to a stagnation of yields. However, with . irrigation and the extension of the area cultivated, a substantial growth of production has occured since 1970, as shown in Table 3: TABLE 3- DEVELOP;41EVT OF AGRICtiLTURAL PRODL'CTION Year 19Fi0 196~ 1970 1973 197~ 19i7 1980 (Ylanl , ~rea cultivated ~lg 1u~6 in'OOOhectares 97~* :1rea irrigated in ~?bf3 '000 hectares i'?0 125 130 1~ Prxluction ('000 tons) of: Wheat :34 S7 21 67 10 i ?05 ~336 Barley, 117 9fi a3 2p5 �lp0 '235 ?~o Vegetables 71 I1-1 li0 293 620 70i 825 - Fntits 140 99 130 135 ?5S Olives 33 101 ?1 1~9 1'?.0 128 ~Ieat op ~5 ?5 46 ~9 9~? Poultry ~million 0.6 1.3 1.3 1.4 4.S '-'S heads) � figure not comparable. Source: Federal German 5tatistical Services. Libyan ~ources. Howe~�er, the more recent figures need some interpretation. On the one hand, they show a high variability ~vhich is partly due to structural changes, but also to the influences of an erratic climate. On the other hand, different figures have now been put forward by other sources's suggesting that production in 1978 only attained the following levels (with provisional figures for 1979 in brackets): ~Vheat: 98,000 tons (1-f5,000); Fntits: 1 i0,000 tons Barley: 90,000 tons (100,000); \~eat: 50,000 tons Vegetables: 560,000 tons In 19r6 food production in Libya was evaluated at 100 million LD, ~vhile food imports totalled 164 million LD. The targets for the Economic and Social Transformation Plan suggested the following degrees of self-sufficiency for 1980. - Barley, ~'egetables, eggs and milk: 100% - Fre~h ftliits: 9'?~/c; Whea~: 7~nr: ~Ie~t: 78~/~ - Olive oil: ~~10 39 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 FOR OFFICIAL USE ONLY With a de facto consumption of, for instance, approximately 350,000 tons of wheat in 1980, these goals have obviously not been attained. Concepts and Developments since 1969 This heary dependence on agricultural imports is not a financial problem for a country like Libya whose oil income in 1979 was about $15 billion or about $5,000 per head. But the dependence on imports may become dangerous when the'oil age' is over and still agriculture remains underproductive. At present leveis of oil production, this could be the case in only 35 years. The 'Ten Year Plan for Agricultural Development', 1973 to 1982, has proposed a first outline of the necessary `Green _ Revolution' and has stressed the following problems of Libyan agriculture: -in the modern sector these are the lack of skilled ~ manpower, the large distances between praiucers and markets, the insufficiency of marketing structures; and the heavy competition &~om foreign products; -in the traditional sector the same negative fac~ors exist, together with a lack of investment capital and the loss of more qualified manpower to non-rural activities. Pre-revolutionary Libya was rather helpless in the face of these problems. The already huge oil income was used to 2inance imports and to raise the general standard of living, instead of being invested in the primary and secondary sectors. Certainly, in 1963 a National Planning Council ~cas created and this presented the Five Year De~�elo~ment Plans 1963-1968 (e~-tended to 1969), and 1968-1973 (star[ed _ and cancelled in 1969). But these plans were a collection of rather heterogeneous projects, wzth agriculture having a minor share of 10.4~1o and 13% respectively. It was realized only after the revolution of lst September 1969 that the oil resources �ere subject to depletion and that the survival of Libyan society at the current high standards _ of living had to be secured. This would need a high self-sufficiency~ in agricultural products. ~lso, the inflated services sector and the ever growing mentality of rent receiversi� should be replaced by a production-oriented society. To achieve such a long range goal, the main strategies proposed were: -the introduction of modern praiuction techniques leading to a gradual change from traditional to modern sector approaches. -the ertension and intensification of the cultivated area, i.e. the more intensive use of a~�ailable land through - mechanization, irrigation and fertilization and the cultivation of additional lands, generally~ also to be irrigated. The following actions were therefore taken: -the allocation of sufficient funds for major projects - ~~lthin the Development Plans; -the provision of subsidies and soft loans to peasants for the purchase of machinery, seeds and buildings; -the foundation of co-operatives for production and marketing; -the buying up of local products at subsidized prices; -the promotion of scientific research to improve knowledge of water resources, soil and climatic conditions. Table ~ shows the state's im�estments in agriculture: 40 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 I~I)R ()I~I~I('IA1, I~til~: l)Nl.ti' T:~BLE SHARE OF ~GRICliLTURE Iv THE DEVELOPVIE`T Bt'DGET~ Fiscal Year Funds provided for Share of aqriculture agriculture in in the total budqet million LD 19 i 1' j~ '~no 1912" 6~ 17r'o 1973* 63.9 ?0.99E 19'7-~ iG~1.3 19 i ~ '330.9 _'0.8~'c 19i6 ?71.9 19.d9o 1977 3 ~ 9.7 18. ~''Ic 1978 337.~ 18.9~c 1979*" ~3.i8 18~'0 1980** ~3? 18ry~ *Stanin~; lst ~pril "'Plan da~a Source: Federal Gerrnan Statist. Services: di~�. Libyan. The Economic and Social Transformation Plan 19i6-1980 billion LU for agriculture.'� 3dditional funds are providecl by had originally earmarked 1.?~ billion LD (17.5% of the total) the ordinary budget, a�here the agricultural administration for agriculture (:~grarian reform, integral agricultural spent 21.~ million LD in 1973. 5ince the revnlution. development, dams and w�ater resources, nutrition and agriculture has always been the largest single receiver of marine w'ealth)". This amount has steadily increased since, public investments. The astonishing growth of the sums and in 19 i 8 it attained 9. ZS billion LD in total with 1.66o available is illustrated by the fact ;,hat the sum of i 00.7 - - million LD earmarked for the 'Ten Year Development Plan for Agricultural Development' (1973-1982) was only 42% of the amount provided for the period 1976 to 1980. Howe~�er, only 70~1'o to 80% of the funds a~~ailable during the last plan were actually spent. As in other oil-rich and sparsely populated countries, the capital absorption capacity is lower than the financial capabilities of the State. Survey of Recent Projects Press reports have pointed out that 103 agricultural projects covering 3 million hectares are under way19. On the other hand, the `Committee for Improvement and Conservation of Soils' made a survey of all recent projects, which has been supplemented by informational leaflets on the local level.'0 The goal is to provide each Libyan farmer formerly in the traditional sector with a complete new farm, built according to the most modern technologies. Its size and equipment should provide its owner with an income equivalent to that in the modern secondary and teniary sectors. Additional investments will be covered by subsidies (up to SO~Io of the total) from the Agricultural Bank. In fact, the Development Plan, 19ifr1980, has allocated nearly 10,000 LD to each farmer. The regional survey (Table o) and ~Iap 1 show projects in all parts of the country ~vhere natural potentiality has been detected. The relatively low fi;gures for Tripolitania t3ifl~ra-plain) result trom the fact that a considerable amount of arable land is already cultivated by modern farms there. The rate of achievement, how�ever, is not always adequate, especially ~vhen cereals production is considered. For example, in Fezzan, by the beginning of 19i9 only 30�l0 of the new farms had been distributed to peasants and the Government had met clifficulties in finding suitable Libyan applicants. The Kufra and Sarir Projects 'The most spectacular agricultural projects in ~orthern Africa are certainly those of Wadi Kufra and the Jdlu depression, in the desert South of the country." Since the dessication of the Sahara, terminated around 6,000 BC, the isolated oases eeisting tnere are sunounded by hyper-arid, hostile desert. Kufra recei~�ed, in 23 years, a total of 68 mms 41 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440400050041-7 FOR OFFICIAL USE ONLY of rainfall, and average tem~ierat?ires range om .~8�C in ~.ugust to 13� C in January. The maxima aze around ~0� C, while the lack of water and vegetation makes frosts possible in winter. The soils ~Me sandy �~th a low clay content (3.3~0), � without humus or other nutritive components but, if ti~ater and fertilizers are applied, almost everS~thing can be grow~n. Agricultural Projecls in Libya, Oeveloprtxnl Plan 1976 -1980 ' ~ ~ Tp~ppl6 AL I � IW~AOYM~ ErY~I � Y/MM ~ ~ ~YIVr+ SYrr~ 11~r1~1 ~E}'~li.� . .?p,Y.1~WMw ~ , . ,a,,;, ~ � ~ ~ ~ ~ � � ' 'r~ Jr'::: ~ . +Y rO~Y~ 1 J ~ � w~ ~w~ +~s.. , 4 ~ . . , ~,...w ~ ~ ~ r-~ ~ , ~ ~ ~ ~ ; y '�~".z . ; ~ ~~.d:e�d~. ~ � ,~o,,,,,, ~ ,wra~ ~ ~ \ ~ w~eaiwa, ~usnwa ~ ~ t~ , r ~ ~ i u "�""a^' ' i i �w F�;e�~ � ~ ~ we~ d~i~et~o ; ~ ' v ~ , d 1 ti P 1 ~ ~ . ~ ~ ~ ~V~J.... , ' ~-~~~01~ ~i p~�.~I ~ ~ wsa.r ~ Uw~ql � J L fatrw ~ 1~ � t~ ~ - P/ INO ~ Mo~r vd par rep 1~~W. N SurKK~ d popci S~W W cn~ys � WreProqrthv~ [ en" w.o a o~wKi w,m. v.ura w.~w. %1 .~e.. a arnrs . s.s rol �1OM~M4 \~GfM~Y~NWuM Su~10[~ ~~i CC~MCIO~M ~IWN$MIMT~nI MaDN brW a ~cwa~q n~i.q � ~ v r w~ p SbN aW~rE ~~H. NrqoMO bM ro MtIMMnI So�R� u eono~ a oiwo~ I~e. ~frtll o~a an.~ wp~ nwcn De.qn M Scnirprou q~9 . During oil exploration, at the beginning of the 1960s, major ground water supplies were found in the Nubian sandstone sediments. Their volume is estimated at 2,000 km' in Kufra and 15 lun' in the Jalu-depression, ~ufficient to - irrigate 100, 000 ha for 900 years and 000 ha for -100 years in these respective localities. The ground w�ater le~~el is 35 to 80 m belo~v the surface and the water only contains respecticely 2�lo and 5�Ic of solids. = Due to these positive factors the American Occidental 0i1 Company decided, in 1966, to establish an a~-icultural project. The Kufra Agricultural Company, created by the Libyan Government, took over in 1969 and since then has . developed the scheme and additional areas for large-scale state farms. 1) The Kufra Agricultural Project, the starting point in the region's development, covered, in its first ~tage, 10,000 42 FOR OFF[C[AL USE ONLY ~ APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044400050041-7 FOR OFFICIAL USE ONLV T~BLE S-~GRICULTL'RAL PROJECTS DCRI~iG THE 19~5-1980 DE~'ELOP)IE~T PL3~i Region .~rea aeeording Tocal uea rcady by cultivaced Number of uf w�mch Cereais :~sera�e +ize co the Plan la+b+'1 Ucwber in 1977 new farm~ distnbuced Pmduccion hai ha 1978 ha ~a+bl by ~ober ~~e''~ ~ af ra~~f Barlevi a,~nculture ai ra~nfed bi imgated h� agnculture tons bl imRlcr~1 ha ha a�riculture Gitara-, 390.797 18.923 509,720 '_69,'_'7~1 h'?,_'98 S.:3U1 '3.019 6.~t36 a:3U--~i P~~~ b:10-11 Gabal al ~28.9~19 1-1,~90 r13.i39 �_~�_.~13 161.'3~-! 3.6~1 1,915 ~7.~93 a: up tu 1.i0 :~hdar b:10- t�? Fezzan ?0,615 39,610 13,173 1,937 1.711 ''~'6 3,618 1'2 F~ufra-Sarir - ~.150 97.1i0" 15,3;323�'* 9.933** 1.1('rt -430 1:3.Ea3*' h: i-h.5 ~1 Sahll a! Hadra(Svrtel ~05.~67 13,w1S ~2::.~148 136,'213 6,195 S,fN'i-1 1,~1~0 i?~ a: 1~ 380 - n: Total 1,3'~5.313 186,-103"* 1,612.-167*' n~6,516"' 241,60?** 16,$91 6,090 i?.17-1 Projects finished prior to the Plan incl~tdinK Kufra and Sarir Projec[~ Source: :~1-zahaf Al-akhdar, Tripoli~. \ovember 19SS hectares East of A1 Jaw~f oasis. 100 deep ~vells (200 to -~00 m), were drilled 1 to 1.3 km apart and provided with pumps raising 110 litres per second. Around the wellhead, self-propelled sprinklers on wheels move around a circle with a radius of 480 to ~80 metres and irrigate 0.'T5 to 0.9 km= each, sprinkling 90 litres per second. At present half the surface is planted w~ith w�heat/barley (4 yearly harvests, ~0-~0 quintals/hectare), and half ~~zth fodder, (Alfalfa-grass, up to 20 cuts/year, producing 230 to 280 quintals). With a fodder production of 160,400 tons/year,?60,000 sheep are to be raised and marketed annually. The first phase has been implemented and now about 4,000 people are employed. It is planned to enlarge the surface to 160,000 hectares which should sustain 1 million sheep and produce 350,000 tons of cereals. Difficulties are being encountered in marketing the sheep, as the centres of demand are far away (Tripoli : 1,800 kms) and roads are insufficient. So sheep are airfreighted. 2)The Sarir Agricultural Project is under way betw�een the oases of Tazirbu and Jalu. 50,000 hectares are to be developed as state farms, and the target is to produce ?00,000 to 250,OOU tons of cereals (sorghum and maize) and 100,000 to 1?0,^~JO tons of fodder. Experiments are being made to cultivate out-of-season vegetables, fruits and flowers to be marketed in Europe. The harsh climatic conditions which influence quality and quantity of manpower, as well as stn~ctural difficulties have so far prevented [he targets being fulfilled. In 1978, when tF,e fu-st phase was planned to be completed in Kufra, both projects _ reported a total production of - wheat: 13,251 tons; sheep: 13,136 head; - barley: 202 tons; wool: 17.7 ~ons; - fodder: i,391 tons 43 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400404050041-7 FOR OFFICIAL USE ONLti' 3) In addition to these state farms based on salaried and increasingly foreign manpower, there are settlement projects geared to the needs of the traditional local population. The Kufra Oasis Land Settlement Project will bring together farmers from the oases of ~ibiy~na, B~zima and T~azirbu. Grouped into a co-operative, 864 farms each with 6.25 hectares of irrigated land are to plant cereals, fodder and a variety of products needed for self subsistence. ~ The Jaiu-Awjlla Land Settlement Project follows a similar concept. 250 farms each with six hectares are proposed for the scattered population of the Jal~1, Awjila and Iharra oases. If another 50 farms in Marada are included, a total of 1,164 farms are planned, of which 480 had been allocated by the end of 1978. 'The investments required are enormous, and with 6,~15 LD allocated (1975 figures) Kufi~a shows the highest per capita investment of all Libyan administrative areas during the 19i6-1980 Plan period (Libyan average: 3,000 LD). ~ However, it is not certain whether a stable agricultural community consi~ting of local, formerly traditional farmers and immigrant farmers can be created in the desert. Already, it is difficult to hire skilled workers, and they may ' receive ��ages up to three times higher than on the coast. With the improvement of the educational facilities young and . active members of the local population tend to migrate towards the coast, where the climate and the sociaeconomic environment are much more agreeable. On the other hand, Libya is obliged to make the best use of its scarce natural resources in order to create a productive agriculture. Therefore the potential of its Saharan oases cannot be - overlooked. REFEBENCES ' accurdinR to The Economic De~�elopment oC Libya, ed. by [nternationxl Banlt for ReconaUvction and Development, Baltimore 1960, p. 127. Figures regarded ~ very optimistic by other scholars. ' CL Heinrich Barth, Reiee in Yordafriksti Vol I 1857, p. 90. ' See M. M. Sherkasi sr~d N. A. Baryun: Industry in Libya during the Period 1911-1940, Economic B:~lletix, Bank oj Libya, 1970 No. 3, pp. 152-164. ' 1~Iost of the hiatorical data come from J.~1: Allan, K.S. 1~IcLachlan and . E.T. Penrose (Ed), Libya ::lgricultun nnd Ecorwmic Dei�elopment, London ' 19'73. ' Discussed by El Danasouri, Gamal el Din, Some Aspects of the Agrieultural Ptroduction in Libya, Libyan Economic arad Buaineaa RetiKew, 1966 No. 1, pp. 1�22. ' See George He9tman, I.ibya - An Analysis of the Oil Economy, Jounra! oj Noderr~ ,~friean Studiea, 1969 No. 't, pp. ?A9-263. ' From A! .Naimu'n n! ihya5ya 1392 H/197? Vt. T~a-blus 1974. ' Most of the following statistics are caken from Jamahiriya .Vfail (Valetta). .Narr.hea tropimur rt mediterrnneena (Parisl and .Niddle Eaat Econo�aic Digeat. ' Reported by .tlarchea tmpicaus, '~.1.197;. 10 Jnmakinya Mail, '.39.7.1979. "!4loyt useful statistics on employment are presented by J.S. Birk3 and ~ C.A. Sinclair, T'he Libynn Jamahiri}�a: Labour 1~fiQration Sustains Dualistic Development, The .tilayhnb ReLneu~, 1~9 Vo. 3, pp. 96-102. 44 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R044400050041-7 FOR OFFICIAL USE ONLY " For the interactions between agriculture and ~ocio-economic modernization, see for instance K. Schliephake, Oil and R ~iorznl Development, Praeger Special Studiea, New York 1977. " For ita hiatory, see K.P. Treydte, Co-operative Societies, Agricultural Development and Social Structuree in Pre-Revolutionary Libya, in KP. 'll~eydte and W. Cle (ed.). Agricultun in the Near East, Bonn 1973, pp. 175140. " See B'vks and Sinclair, op. cit., tables 2, 4& 6. " Fmm Narehea tropicav.r, 1210.19T9, similar Bgures for 1978 in FAO Production Yearbook, 1979. " A term fust used by RobeR 9fabro, La Libye, un etat rentier, Problemea ecouonriq~~ra V0. 114~. 1970, pp 32-2i. " English summary published by the Ministry of Planning and Scientific , Reseamh, Tripoli, J~farch 1976, also in Annuaire de I~AJ'rique du Nord ~sre, Paris 19^r7. pp. 834-S~tS. " The G+wndian, 1.9.1978. "Jrtmnhiriya.tilail, 2.9.i.1979. f0 .4Leahaj .4l-nJchdar, 'Ilipolis (Ma~jlis al istisl"ahwa ~ta'mir al aradi) � :Yovember 1978. " See K. Atkinson, ~I. Bovis and D. Johnson, ldan-\~Iade Oases of Libya, Geogr~phical 3lagazine l97? No. 2, pp. 112-115: technical details from Salem A. Hajjaji, Agricultural Development and Land Settlement in the Kufra, ~ Region of Libya, Land Rejorm. Land Sttilem~nt and Co-uptraHve, Rome (FAO) 19"4 ~Jo. 1/2, pp. 68-238. 1Vtore recent data lrom ~11 zahajal ahdar and journal~. The physical environment is presented by R. E. Becker, Die tertiare and quartare Entwicklung im Bereich der Kufrah-0asen Crologiaelu Rundachau. 1979 No. pp. 584-621. COPYRIGHT: The Maghreb Review 1980 cso: 4seo/3~ 45 ~ FOR OFFICIAL LISE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400054441-7 FOR OFFICIAL USE ONLY LIBYA BRIEFS SOVIET LIBYAN BASES--[President Francois] Mitterrand is keeping a close eye on de- velopments in the Mediterranean. He has even alerted the armed forces operations center responsible for keeping track of military problems should a crisis develop. The French intelligence services are particularly disturbed by the cooperation agree- ments signed by Tripoli and Moscow. The recent aerial incident [between U.S. and Libyan aircraft] will enable the Soviets to obtain military Libya. [Text] [Paris LA LETTRE DE L/EXPANSION in French 24 Aug 81 p 5] [Copyright: 1981, Groupe Expansion S.A.] CSO: 4519/46 46 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7 FOR OFFICIAL USE ONLY SUDAN BRIEFS THORIUM, URANIUM DEPOSITS--Sudanese geological researchers have discovered large deposits of uranium and thorium ore, and some other rare fissionable materials, in the area of the iJubah mountains, in the northern part of the co CoPYRIGHText1980 [Paris AL-WATAN AL- ARABI in Arabic No 232, 24-30 Jul 81 0 15] ~ � AL-WATAN AL-'ARABI] 7005 CSO: 4504/53 E~ 47 - ~OR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400050041-7