JPRS ID: 9805 USSR REPORT PHYSICS AND MATHEMATICS

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CIA-RDP82-00850R000400060044-3
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APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFF[CIAL USE ONLY JPRS L/10067 22 October 19g 1 Sub-Sceharan Afriea Re ort p FOUO No. 744 FB~S FOREIGN BROADCAST iNFORMATION SERVICE FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/42/09: CIA-RDP82-00850R000400064444-3 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 tran,slated; *.hose from English-language sources - are transcribed or reprinted, with the original phrasing and othE: characteristics retained. Headlines, editorial r.eports, and material enclosed in brackets are supplied by JPRS, PrACessing indicators such as [Text] or [Excerpt] in the fi.rst line of each item, or followi.ng the last line of a brief, indicate how the original information was : processed. Where no processing indicator is given, the infor- mation was summarized or extracted. Unfamiliar names rendered phonetically or transliterated are enclose3 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 aii item originate with the source. Times within items are as given by source. The contents of this publication in no way represent the poli- cies, views or attitudes of the U.S. Government. _ COPYRIGHT LAWS AND REGULATIONS GOVERNING OWNERSHIP OF MATERIALS REPRODUCED HEREIN REQUIRE THAT DISSEMINATION � OF THIS PUBLICATION BE RESTRICTED FOR OFFICIAL USE ONLY. APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY JPRS L/10067 22 October 1981 SUB-SAHARAN AFRICA REPORT FOUO No. 744 CONTENTS I?VTER-AFRICAN AFFAIRS Brief s USSR-Africa Trade 1 ANGOLA Precarious Financial Situation of Cement Plant _ (MARCHES TROPICAUX ET MEDITERRANEENS, 4 Sep 81) 2 Briefs French Trade Mission 3 - Portuguese Electrical Equipment 3 BURUNDI Economic Report to U.N. Conference on LDC's: 'Better Connections With Outside World' (MARCHES TROPICAUX ET MEDITER'ANEENS, 21 Aug $1) 4 CENTRAL AFRICAN REPUBLIC Possible U.S. Involvement in Anti-Dacko Coup (JEJNF. AFRIQUE, 16 Sep 81) 9 Reasons for Anti-Dacko Coup Noted (Francois Soudan; JEUNE AFRIQUE, 16 Sep 81) 11 Regime's Attitude Toward IMF Program Uncertain (JEUNE AFRIQUE, 16 Sep 81) 15 COMORO ISLANDS Economic Problems of Archipelago Surveyed (MARCHES TROPICAUX ET MEUITERRANEENS, 2$ Aug 81) 17 _ _ a _ [III - NE & A - 120 FOUO] FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 - FOR UFr'Z(:lAL u5~; U~t.x GAMBIA Cixcumstances Leading to Proposal of Senegambian Federation Examined (Francois Soudan; JEUNE AFRIQUE, 2 Sap 81) 23 Pros and Cons of Senegambian Union Discussed (Sylviane Kamara; JEUNE AFRIQUE, 23 Sep 81) 2? IVORY. COL~ST Industrial Statistics Show Deciine in Most Sectors (MARCHES TROPICAUX ET MEDITERRANEENS, 11 Sep 81) 29 MALAWI Transportation, Tourism, Energy Fnci of Economic Plan (MARCHES TROPICAUX ET MEDITERRANEENS, 28 Aug 81) 34 MOZAMBIQUE Brief s Radio Set Owner~hip 39 _ Electric Equipment Purch~ses , 39 - A:lrline Sale of Planes . 39 Bulgarian Banking Cooperafcion 39 USSR FACIM Pavillion 40 Increased French FAC IM Presence 40 NIGER.IA Petroleum Production, Revenue Declines (MARCHES TROPICAUX ET.MEDITERRANEENS, 11 Sep 81) 41 Oil Price To Be Aligned With Saudi Arabia's ~ (MARCH~S TROPICAUX ET MEllITERRANEENS, 28 Aug 81) 42 Brief s _ Insecurity in Lagos 43 tJew NNPC Head � . 43 - Oil Deposits Discovered 43 RWANDA Economic Report to U.N. Conference on LDC's: Coming Qut of 'Splendid Isolation' ~ (MARCHES TROPICAUX ET MEDITERRANEENS, 21 Aug 81) �44 SENEGAL - Briefs Community Developmen t Budget 50 Diversification of Agricultural Prodection 50 -b- FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 FOR OFFICIAL USE ONLY EEC Aid 51 UK Aid 51 _ Senegalese Refugees in Zambia 51 Iraqi Rural Development Credit 51 Argentine Aid 52 French Aid ~Z TANZANIA Briefs Tanzania-Rwanda Textile Plant 53 Canadian Aid 53 Cooperatior. Accord With Angola S3 Expansion of Cement Production 54 - Tanzania-India Joint Pro~ects 54 Indian Aid Requested 54 ZAIRE Brief s Chinese, Zairian Cultural Agreement . 55 National Aid to Business 55 ZAMBIA State Farm Program Delayed Despite Foreign Interest (MARCHES TROPICAUX ET MEDITERRANEENS, 28 Aug 81) 56 Briefs Industry Study 58 - c - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY INTER-AFRICAN AFFAIRS _ BRIEFS - USSR-AFRICA TRADE--In 1980 trade betsaeen the USSF and African countries totaled 2 billion rubles ($2.6 million), a 40-percent rise over 5 years. In the first 6 months of the current year the largest increases occurred in trade with Hoz~m- = bique (up 161 percent), Tanzania (up 109 percent), Guinea (up 54 percent) and Algeria (up 50 percent). The USSR has economic dealings with 47 of Africa's 51 countries - ar~d in the coming S years it intends "to foster mutually advantageous trade with African countries and other fledgling nations." [Text] [Paris MARCHES TROPICAUX _ ET MEDITERRANEENS in French No 1872, 25 Sep 81 p 2423] CSO: 4719/92 , 1 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 ANGOLA PRECARIOUS FINANCIAL SIT'JATION OF CEMENT PLANT - Paris MARCHES TROPICAUX ET MEDITERRANEENS in French 4 Sep 81 p 2291 [Text] The regort of the Empresa de Cimentos d~ Angola (CIMANGQLA) for the 1980 _ fisc~.~l year contributes some useful information on the activities of that firm. CIMANGOLA, a joint publicly and privately owned Gompany, followed on the heels of Secil do Ultramar, SARL, to c~nclude a process begun in 1978 with the nationalization of that company and ended last year with the signing of the contract with Che - associated Danish firtas. The fiscal year reviewed was also marked by two contracts signed to overhaul the cement plant and to build an access platform near the factory. Wor.k should begin be- fore the end of the year and will make it possible for cement to be produced at installed capacity level and to be quickly shipped out to the provinces or other countries. CIMANGOLA sales during the 19�~0 fiscal year totalled 243,000 tons or 32 percent of the installed capacity, if the sales volume is regarded as the same as the production - volume. This, however, was not the case, since there were stocks left over from the , previous fiscal year which were sold. With this correction, production is estimated at about 31 percent of installed capacity. The production plan was realized to the tune of 72 percent, and the sales plan to 76 percent. The sales plan showed different resulta, howQVer, depending on whether it concerned sales on the domestic Angolan market (95 percent exe~cution) or sales abroad (48 percent execution). I Contrary to what its directors anticipated in 1979, CIMANGOLA continues to experience a precarious financial situation. The company must cope with high financial costs, particularly in the form of interest owed to banks for short-term f3nancing. It has attempted to negotiate a contract with banks to obtain long-term financing and return the company permanently to a sound position. A contract of this ~ort would give greater operating flexibility and reduce the amount of interest owed. However, it was unable to conclude the contract, an~d as of last 31 December, the day on which the past fiscal year closed, CIMANGOLA eti11 owed banks interest amounting to 38.8 million kwanzas. With the reorganization of the cement plant, production should increase. But in the best of circumstances, the favorable impact of thia recovery will not be felt before 1987_. It is only then at the earliest that the company can think about settlin~ its debts whi.ch now total more than 75 million kwanzas. COPYRIGHT: Rene Mareux Et Cie Paris 1981. 9805 CSO: 4719/399 2 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY ANGOLA BRIEFS FRENCH TRADE MISSYON--The French Foreign Trade Center (CFCE) is orgainzing a multi- sectoral trade mission to Angola November 18-26, 1381. It will focus on equipment ~ and supplies for agriculture, livestock raising and agro-industry, and will be accompanied by Mr Calude Lecluse, head of the African Section of the CFCE. This mis- sion, organized in con~unction with the Angolan embassy in Paris and in close coaperation with the economic expansion poat in Luanda, will give the participants an opportunity to meet officials from the Angolan agenc~.es and departments involved in agriculture, livestock raising and the food indusCries. [Excerpt] [Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1810,11 Sep 81 p 2348] [COPYRIGHT: Rene Moreux et Cie Paris 1981] 9805 PORTIJGUESE ELECTRICAL EQUIPMENT--At the end of Auguat Angola signed two contracts with a Portuguese company. The first is a$10 million contract to furnish and install equipment to modernize the high voltage power line linking Cambambe dam to Luanda. The second, in the amount of $5 million, involves construction of a thermal power plant in the centier of the country. [Text] [Paria MARCHES TROPICAUX ET MEDITERRANEENS in French No 1870,11 Sep 81 p 2348] [COPYRIGHT: Rene Moreux et Cie Paris 1981]- 9805 C~O: 4719/35 3 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFF[CIAL USE ONLY BURUNDI ' ECONOMIC REPURT TO U.N. CONFERENCE ON LDC's: 'BETTER CONNECTIONS WITH OUTSiDE WORLD' Paris MARCHFS TROPICAUX ET MEDITERRANEENS fn Frencii No. 1867, 21 Aug 81 pp 2147-2149 [Burundian Report to the U.N. Conference on Least Developed Countries: "Have - Cor~nections with the Outside World."] _ [Text] Except for a few details and nuancea, we find exactly the same charm, attraction and weaknesses in Burundi as in Rwanda. The two countries are ~uxtaposed. One seems to be tl:e carbon copy of the other: the same lush green hills, the same rlispersed dwellings which intrigue geographers and socialogists so much, the same soil good for many different crops, the same paradisiac climate, the same Congo-Nil mountainous spine and, to cap it all, the same ethnic groups: a Hutu majority, Tutsi minority. In Burundi, however, this is the main difference--the "giant" Tutsi are in power. Of course as far as the land is concerned, Rwanda is compared to Sicily and Burundi - to Belgium; the countryside of one country brings to mind Switzerland, and the other Savoy, but these are hardly distinctions that separate them. During the Belgian administration, moreover, this region was only a single territory, Ruanda-Urundi, with Bu~umbura as the main city. Now there are two sovereign states and, curiously, _ this was when serious dissension began to appear between the Hutu and Tutsi commu- nities. We also find in Burundi the problems we discussed for Rwanda: distance from the ~ sea, strong population pressure, soil depletion, or in short a situation which gives ~ this country all the characteristics of an underdeveloped economy. The figures change and so do the names of the cities, bt.t we are etill in a rugged country. - A Landlocked Country with Population Problems It is a long road to Dar-es-Salaam, Burundi's supply port. First there is a 180 km stretch on Tanganyika Lake from Bujumbura, the capital, to Kigoma in Tanzania. Then 1,200 km by rail fro~ Kigoma to the port of shipment, Dar-es-Salaam. This is the most frequently used itinerary (85 percent of foreign trade). Another possi- bility is to pass through Uganda to reach Mombasa in Kenya, in other words the Rwandan rou~te. You can also reach the Mozambique ports via Zambia and Mjulungu _ (a lake port), or Lobito on the Atlantic through Zaire. But it is out of the question for the time being to use this itinerary because of the disturbances which have been afflicting Angola for years. 1.. 4 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFtCIAL USE ONLY One need only remember the almost complete halt in supplies between October 1978 and .July 1979 to get an idea of how precarious Burundi's relations with the out- side world are. At that time, a veritable air-lift had to be set up from May 26 to 17 July to avoid critical supply problems. One hundred forty-four flights were m~de between Bu~umbura and Dar-es-Salaam and 5,000 tons of goods were shipped. The - operation cost $6 million, and the net loss for ~he economy was $45 million. We understand that the officials have prepared pro~ects in this area. We will examine them further on. Another concern, and not one of the least, is the population growth in a restricted area. With one mill~on more people in the next 10 years, and 95 percent of the _ population scattered in rural areas, intensively working land which is becoming depleted, what will the situation be by 1990? The geographic and social character- istics (hilly countryside and small land-holdings), deforestation, the result of energy needs, overgrazing and farming habits are all such that the soil is becoming _ depleted and the yield is declining. One would have to change nearly the entire structure to put modern techniques into practice which could asaure an adequate food eupply. There is still land to be exploited, mainly in the Ruzizi plain, the area bordering Tanganyika Lake and in the Mosso region to the east, but investment capital and resources are needed. Aside from international aid, how can they obtain them, if not by foreign trade? Coffee, the Only Real Wealth Exports are virtually confined to coffee, and efforts made to diversify the so-called cash crops have not had convincing results. It is true that there has been progress made with cotton and tea, but not enough. Let's look at the figures: in 1981, 19,000 tons of coffee, 6,000 tons of cottonseed, 2,000 tons of tea and a little quinquina. These four products account for 92 percent of the total value of exports. Coffee alone accounts for 75 percent. In 1978, exports went up to 6,243 million B~rundian francsl, with coffee accounting for 5,139 million, and imports amounted to 8,842 million, or a 2,599 million deficit. The next year this rose to 3,978 million. The balance of payments followed the trend and was in disequilibrium. This trend can only worsen. I~ ~s impossible to see how it could be otherwise in a country that has to import capital goods at any price merely to be able to improve exports in coming years. Slow Progress In 1970 and 1976, the annual growth of GDP averaged 2.7 percent, or just a little above the population growth (2.2 percent). Beginning in 1977, the rate of increase went up to 4.4 percent on average. This is explained by the increase in investment _ which, in constant values, went from 15.5 billion Burundian francs between 1974 and 1976 to 29.4 billion during the next 3 yeara. The growth in recent years has been particularly great in the industrial and service sectors, 12 percent a year, while the increase has averaged only 1.9 percer.t for food crops, or a rate l~wer than the rate of increase in the population, a disturbing fact. Investment for the 1978-81 ~ 1 90 Burundian francs = 1 U.S. dollar. 5 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400400060044-3 _ FOR OFFICIAL USE O?'~1LY ~ period can be broken down as follows: 54.5 percent for the tertiary sector, 26.7 percent for the secondary sector an~ 18.8 perce~t for the primary sector. It is important to note that only one-fifth of t'hese investments was financed out of dome~tic savings, with the rest coming from f~reign aid. It can be estimated at 12 percent uf GDP between 1974 and 1980. As for the outstandir.g foreign public debt, it w~ent ~rom 629.6 million Burundian francs in 1974 to 9,054 million in 1979. Deb~t servicing went from 88.4 million to 377.4 million during that same period. Howewer, the debt service as a percentage of exp~rts has remained relatively stabl~--3 percent in 1974 as compared with 3.7 percent in 1979. This rate is expected te increase to 16 percent by 1985. Fragile Economic Situation Thus the economic and social development of burundi is hamper~.d by a rertain _ number of factors representing real, bottl~enecks: low farming capacity, with food- stuffs for the most part n~t ente~ing the ~onetary circuit; a.n industrial nucleus concentrated mainly in Bu,jumbura; ov~rly weak infrastructuree; for an expanding population; limited mineral resources; and, finally, an evid~^.t lack of trained personnel. All of these facts place Burundi among the poorest countries. However, the banks of Tanganyika Lake are ~ust as restful as those of Lake Geneva, the mountains are not far away, the attraction is immediare. Livingstone, moreover, fou�ad that it has a much better climate than Scotland. The era of ratings has changed many things. - 1981-90 Ter.-Year Program You don't have to be a genius to imagine the unrelenting efforts that will have to be made before the Burundi economy can come close to becoming a modern structure. Invest, produce and export, this is economic orthodoxy. Burundi's leaders are - perfectly well aware of this. First of all, here are the forecasts they made on the growth of capital, i.e. of total resources (GDP glus imports): at market prices, total resources should increase f rom 89 billion Burundian francs in 1980 to 109 billion in 1985, or at an annual rate of 4 percent. The GDP alone, valued at 74,252 million in 1980, will r~se to 107,603 million by 1990, or at an annual rate of 4.3 percent. The various components of the GDP will inerease as follows: agriculture 2.1 percent, industry 11 percent and exports also 11 percent. It is immediately obvious that the problem of the food stortage cannot yet be solved and that imports of grains and especially of fats will be needed for a long time to come. How then do the different objectives outlined fo+r all the pro~ects link together, sector by sector? Rural Sector Food crops will therefore increase by only 2.1 percent a year. The planners decided to be modest, since agricultural structures are still too rigid to hope for any noteble improvement in yields. Efforts will be cnncentrated in the Ruzizi valley (rice) and in the Mosso valley (sugar cane and oil-palm). 6 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-04850R000400060044-3 FOR OFFICIAL USE ONLY Export crops should register a considerat,le increase in production: coffee will advance from 19,000 tons to 34,000 tons (1985), cotton f;:om 6,000 to 7,500 tons and tea from 2,000 to 3,600 tons. The rural sector has a total of 74 pro~ects, including the following: _ - Integrated rural development (food crops and cash crops) at M�Panda, Kirimino and N'Gozi; , - Livestock improvement project in Mugamba/r;orth; - Reforestation (Congo/Nil ridge and the south of the country); - High-altitude cultivation of food crops in the tea-growing regions; - Vegetable and fruit growing pro~ects (around Bu~umbura). Industrial Sector ~ More than 30 pro~ects involve agro-industry, including a pro3ect to expand the Bujumbura brewery (banana beer), conatruction of a sugar refinery, a coffee and tea factory, a textil~ factory, etc. The pro~ects for a cement and a fertilizer factory are linked to the extraction of carbonite phosphate in Matongo, near Kayanza. In the mining sector, great h~pes have been placed in mining nicke~, with reserves at 300 million tons. As for energy needs, they will increase and regional pro3ects have been prepared, in cooperation with Zaire and Rwanda, within the compztent committees of the CEPGL (Economic Community of the Countries of the Great Lakes. Transportation Infrastructure - Three corridors, if onP can use that term, provide Burundi with communications with - the outside world: road, air and lake corridors. Roads. It is imperative to ensure links with neighboring countries, and from"there the hitch to the port, in all seasons. The most important projects are th~ following: - - Route to Rwanda: repair of the Bugarama/Kayanza asphalt stretch that goes to Butare in Rwanda; . - Continued construction of the Bu~umbura/Bukavu (Zaire) road; ~ - Con~truction of the shipping route to Tanzania, eastern section, i.e. toward Isaka a:ld Mwanza (rail to Dar-es-Salaam); this roaci will aiso ~oin the one Rwanda intends to build to Rusumo; ' - Construction of the stretch of road along Lake Tanganyika ending in Kigoma. For = the time being it i.~ more a trail than a road that links that city to Nyanza. These projects together represent 304 km of tarred roads. Lake. It is absolutely essential to modernize the small fleet that connects Bujumbura with Kigoma, an indispensable artery for Burundi. A container ship with a deadweight of 400 tons and a capacity of 14 20-foot containers is to be delivered very shortly. They are planning to o.rder two ferry-boats. Air transport. The runway at Bu~umbura airport will be enlarged to 400 meters for the B-747's. Work is in progress. In addition, the secondary runway will be tarred~ 7 FOR aFFIC1AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400404060044-3 FOR OFFICIAL USE ONLY Finally, modern facili*_ies are planned to make Bu~umbura airport an international class airport. Moreover, six provincial airport will be developed. It is evident Chat air travel has not been overlooked. This method of transportation will un- doubtedly become much more than a secondary means in the years ta come. We still have not referred to the large railway project. You could say that in order to keep up with a number of African countries, and particularly its immediate neighbor, Rwanda, a railroad has been planned by the Burundian authorities. It is related to the future plans to mine nickel in the Musongati region. A first line will link the mine to. the Tanzanian network, and a second line will service the capital. This project fits perfectly into Burundi's development plans. Tt:e annual production of ore for expo~t, 35,000 tons, and foreign trade estimated at 170,000 tons will ensure the profitability of these lines, claim the planners. This picture would not be complete without mentioning tourism, which is the sub~ect of 16 projects involving hotel facilities, and the social sector with health and training. One doctor for 34,000 inhabitants, one nurse for 16,000 and one hospital bed for 300 do no*_ provide sufficient health coverage, so 3 percent of the invest- ments will go to this sector. Finally, it has been observed in Burundi, as in France, for that matter, or in California, that training given to "persons who have been promoted" could not be immediately used for management personnel, to encourage those who do not have the knowledge but who want to learn and understand. The training, in other words, is not fitted to the jobs. During this 10-year period, officials will try to solve this problem, which in many cases amounta to about the same thing as squaring the circle. Foreign Aid To carry out this program, Burundi.needs aid estimated at $4.4 billion, That is a given. The maney-lenders will study it. It is true in any case Chat Burundi, like Rwandi, will find its true development within a regional community, whether it he the Great Lakes or the Kagera River. A time will come when pointless rivalries will have to give way to the needs o= a world doomed to evolve. It is a shame, but an economy does not thrive on sentiment but on cold and harsh realism. ' COPYRIGHT: Rene Moreux et Cie Paris 1981. _ 9805 CSO: 4719/353 8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 HOR OF'FICIAL USE ONLY CENTRAL AFRICAN REPUBLIC POSSIBLE U.S. INVOLVEMENT IN ANTI-DACKO COUP Paris JEUNE AFRIQUE in French No 1080,16 Sep 81 p 22 [Article by M.K.N.: "Barracuda Made in U.S.A.?"] [TextJ For awhile there had ceased to be talk in the corridors about the fine hand of Uncle Sam in African coups. An~' then, suddenly, following General Kolingba's putsch, our esteemed colleagues at E QUOTIDIEN DE PARIS and (to a lesser degree) LE FIGARO and LE NOUVEL OBSERVATEUR were advancing the theory (which, with the former publication, has the status of a near-certainty) of American involvement. Indeed, if it is clear that Washington did not take any direct part in the army's - seizure of power, it may seem premature to discount any possibility of direct knowledge, as seems to be suggested by a number of signs and confidential information learned in Par.is and Bangui. Contacts , --Two American military advisers arrived in Bangui from Kinshasa (where the United States maintains one of its biggest African embassies), several days before the coup. ~ A third was on the scene the very day of the putsch. This information has been con- firmed by French military sources both in Bangui and Paris. --One of the civilians who worked hardest in the background for Kolingba's seizure of power, Bernard-Christian Ayandho (former prime minister under Dacko, dropped in July 1980), has been to Washington several times this year. According to someone very close to the former president, Ayandho was supposed to have made "an increasing number of contacts" there, particularly through the Central African representative to the United Nation, Kibanda (with whom he shares family ties). Contratulations --The secretary general of Dacko's party, the UDC (Central African Democratic Union), Jean-Claude Ka2agui, was in Washington in late August, at the invitation of the State Department. Officially on a mission to "sensitize" the U.S. administration to tY?e necessity of economic assistance to the Central African Republic, he supposedly undermined Dacko by claiming that the latter was not sufficiently "firm" with the opposition. 9 FOR OFF[CIAL USE ONY.Y APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY --Finally, American Ambassador Arthur H. Woodruff ~uas the first envoy accredited to Bangui to pay his re:spects, Tuesday 1 September, to General Kolingba, and one of the confidants of the new president, Military Attendant 3rd Class Alphonse Kongolo (who - has been named minister of planning) recently returned from the United States (where he has maintained numerous ties) after 4 years of military training. These elements do not prove American involvement, either taken separately or all - together. Al1 the same, they do amount to a collection of troubling pieces of circumstantial evidence. Some in the Central African capital are convinced of the reality of the American connection, and point out that the timers on the bombs which _ did not explode that were discovered 14 July both in Douar and Bangui after the attack against the Cinema Club, were of American manufacture. And it was ~ust in the wake of 14 July that Dacko began to totter. However, all things considered, another theory is perhaps more credible: the explosives and their timers might simply come from the 20 tons of C-4 plastique supplied to Libya in 1977 by former CIA agent Edwin P. Wilson, now an advisor to Qadhdhafi. Doubt Reality or fiction? Covert operation by the Americans or a baseless concoction intended to embarrass the new French authorities? One thing is certain: Washington is not indifferent to the fate of a Central African Republic wedged between a"Libyanized" Chad and the soft underbelly of Zaire. Especially since in the wake of 10 May the White House has some doubts about Paris's firmness. COPYRIGHT: Jeune Afrique GRUPJIA 1981. 9516 CSO: 4719/426 10 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040400060044-3 FOR OFFICIAL USE ONLY CENTRAL AFRICAN REPUBLIC REASONS FOR ANTI-DACKO COUP NOTED Paris JEUNE AFRIQUE in French No 1080 1~6 Sep 81 pp 18-22 [Article by Francois Soudan: "Who is Behind the Coup?"] [Text] Comic-opera putsch, or military coup? Who were the real players in General Andre Kolingba's overthrow of David Dacko? Our special correspondent investigates. Noti~ing has happened in Bangui, or aL� least very little. The potholded streets bordered with mangrove trees, the gr~een hills which rise and fall on the Zairian side of the Ubangi River, the white villas and the iron-roofed hovels in this city built up in the midst of dense jungle, have seen nothing, heard nothing. In the sections of Nord de Fouh, Boy Rabe and Miskirie, fiefdoms which have perennially opposed--sometimes violently--the r.egimes of Jean Bedel Bokassa, and later David Dacko, the "coffee mamas" and the "makala mamas`" (women who sell fritters) are carrying on with business as usual at their smoking cooking pots. Only the three unpretentious towers which grace this otherwise uniformly flat capital city--the Hotel Safari, the Sodiam, and the Soviet Embassy (closed since 1979 and "placed under the protection of the Romanian Embassy," as one reads on the iron grillwork) seem to contradict the oversahelming impression of lethargy. Nevertheless, there really was a coup in Bangui on the night of 31 August-1 September. A"Benin-style�' putsch, without noise and furor, with only a few armored vehicles - in the streets, a little like the one in Kerekou in October 1972 in Cotonou. It is true that Andre Kolingba, 45, decked out in his five-star battle regalia which further accentuates his cherubic demeanor, needed only to cross about 10 meters to inform David Dacko that the time for his retirement had come. The distance which separates the general staff headquarters from the presidential residence at Camp du Roux, on a hill overlooking Bangui. The pretorian guard, the famous "Green Berets," composed of Central Africans especially trained for this ~ob and of French paratroop commandos (most of them blacks or mulattos), under orders from Col Mention, did not lift a finger. "When the army demands that the president resign, that is a coup," said David Dacko on the evening of 4 August at a very brief press conference. Doubtless. But after all, Bangui is a small city where appearances can be deceptive and there are always rumors: because of the fact that Dacko was free and smiling on that Friday, people believe that the putsch was only a piece of theater, and that Dacko was himself a willing accomplice. A comic-opera coup, in short. A coup staged for effect. 11 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R040400060044-3 FOR OFFICIAL USE ONLY Not so simple, however. General Kolingba's taking of power has someth~ng of the nature of a triple revenge. Revenge by the army, first of all, against a chief of state who ever since September 1979 has treated it like a poor relative: no training and ridiculously low appropriations. "We were the orderlies of the French, we served the Barracudas as their boys," one officer confided to us. Though relatively limited~ the prestige of this 1,~00-man army (which waF 7 generals and~ about 10 colonels) with the populace increased the more it was discredited by the political class. Dacko was unaware of this, and by means of the traditional little game of transfers, dismissals, and promotions, as well as by his creation of the pretorian guard that was depriving the soldiers of their monopoly of force, he tried up to the last to appease the hurt feelings of General Andre Kolingba and his friends, who moreover did not try to disguise their "concern" about the politicians' sterile games and the danger of destabilization" of the country. It was not until 14 July and the bloody attack against a Bangui movie-house, responsibility for which was claimed by Iddi Lala's pro-Libyan group, that Kolingba reportedly decided to play his own cards. Even befor~e then, however, reports which the secretary general of the UDC [Central African Democratic Union] (Dacko's party), Jean-Claude Kazagui, and prime minister Simon Bozanga (the "hard-liners" of the president's entourage) sent regularly to Renaissance Palace, emphasized the necessity of neutralizing Kolingba. The general knew this, just as he suspected that if Dacko had tried several times (without success) in 1981 to bring him along on his official trips to Libreville, Kinshasa and Nairobi (for the OAU [Organization of African Unity] summit), it was because he was up to something. Convinced of the need to "disconnect," a frequent sufferer from heart ailments, Dacko believed he would be abandoned by Paris and in effect decided to orchestrate his own succession: his friend, Monsignor N'Dayen, the Archbishop of Bangui, during one of Kolingba's absences, was to take power with the support of another N'Dayen, his brother, the commander in chief of the police. Cacko then would have been "overthrown," with his consent, by his own faithful supporters. But in the aftermath of 14 July, David Dacko, who decreed a state of siege in the face of the increasingly ~threatening opposition, was to call on the army. Three months previously, he could have asked ~ for the intervention of the French troops, but since the election of Francois Mitte~rand on 10 May things had changed, and the Barracudas were strictly confined to their barracks. - Invested, therefore, with the authority to preserve order, Kolingba decided to see what he could get for his support. He went to Dacko at the end of July, tendere~l his resignation, and demanded the replacement of the head of the police. "Big David" rejected Kolingba's first "suggestion" (see J.A. No 1079), but yielded on the second: Lt Col Christopher Grelombe, a confidant of the general, took the place of N'Dayen has head of the police. From that point, the game was ready to be played out: on 31 August Kolingba, who had cor~trol over both of the state's armed bodies, needed only to collect his forces. But this general who has been called ambitious, an alumnus of the military schools of Brazzaville (where he was a schoolfellow with former Congolese president Marien N'Gouabi) and Frejus, ambassador to Canada and West Germany under Bokassa, and who was the reputation of being a strong man, did not act alone. 12 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL l1SE C~NLY His victory was also revenge for several civilians who worked behind the scene for his accesaion to power, linquestionably, the moat active among them was former prime minister Bernard-Christian Ayandho, head of the first Dacko government, "dismissed" in July 1980 (at the same time as ex-vice president Henri Maidou) following the violent protest demonstrations in the schools in June. Ayandho had never forgiven Dacko for having thus sacrificed him, and since then he had made himself the advocate-- both with the Gabonese, with whom he maintained excellent relations, and with the Americans (see story below)--of a"Kolingba solution" to counter the risk of a "Chadization" of Central Africa. It was he, after all, who on the morrow of the Barracuda operation, brought Kolingba back from Bonn to Bangui, and then insisted that he be named army chief of staff. And his former military attache, Ma~or Evariste Konzale, was one of the principal instigators of the putsch of 31 August.... - Another active individual in recent months: Jean-Marie Songomali, a high official in - the Agency for Cultural and Technical Cooperation (ACCT), a member of the Bokassa family (he married a niece of the deposed emperor) and at one time a confident of the opposition figure, Francois Pehoua. A brilliant and affable person, Songomali held several grudges against the Dacko team: after having accused him of being implicated in a mercury-trafficking affair (see J.A. No 1078), wl:ic:: he vehemently denied, maintaing that it was a"baseless concoction," aimed at discrediting him, David Dacko in effect tried unsuccessfully to replace him on the ACCT by his chief of staff, David Zokoe. The final influential personage, Michel Gallin-Douathe, a remarkably vivacious sexagenarian, an alumnus of the French Overseas College who was a civilian administra- tor in the French ministry of the interior (he holds dual citizenship), and one of the ministers Dacko had sacked, was easily persuaded to come out of his Parisian retirement to help the new authorities. So it was revenge for the army, for Ayandho, and for several others, but--this too must be said--it was also revenge for the Yakomas, for the more than 20 years during which power went increasingly into the hands of the M'Bakas, the ethnic group to which Boganda, Bokassa, and Dacko belonged. All the key inen in the new leadership are in fact Yakomas: Kolingba and a substantial number of his ministers, as well as Ayandho, Songomali, Callin-Douathe, all came from the same group. Is one monoethnism to be replaced by another? Bound together by links which are often familial, the military team that surrounds _ President Koulingba is not, however, free of contradictions. The various political currents which divide the country traverse the new leadersh3p too. There is grumbling for example, about the fact that Major Allam, the secretary of state for the interior, is a friend of Ange Patasse, that Lt Col Grelombe (secretary general of the goverrnnent) and General Yangongo (the brother of Abel Goumba's right-hand man and minister of labor) are rather "socialistic," that Ma~or-Domo Kogola (planning) was at one time the bodyguard of Peho~ia, and that Kolingba himself trusts no one but himself. 'I'here is also the problem of inequalities in administrative authority within a government which one can predict will at least be "muscular" regardless of its effectiveness in other domains. While some ministers, such as the one for foreign affairs, Jean-Louis Gervil Yambala (an honorably discharged lieutenant colonel), or even Alphonse Kongolo, seem likely to be able to assume their responsibilities, others--it would be cruel to cite them by name--will have much to learn. 13 FOR OF'FICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040400064044-3 NOR OFFICIAL USE ONLY All the same, the first statements by the new reg3me agree on one point: firmness, particularly with respect to opposition groups, all of whose activities have been banned. No one in Bangui is ignorant of the fact that what in the final analysis moved Kolingba to action was the monster demonstration organized Sunday 31 August at M'poko airport to welcome Ange Patasse on his return from Brazzaville. The soldiers could simply not accept this virtual second government which had been established for several months in Central Africa. No doubt they received encourageme:it from several neighboring countries for the , realization of their abmitions and what they believed to be the carrying out of their "mission," and particularly from Gabon and Zaire, whose presidents, after having pressed Dacko to end his experiment with an infectious and "anarchic" multi-party~ system ("anarchic" was the term employed by one of the two heads of etate), subsequently described themselves in private as "disappointed" by the indecisiveness of a man who "approves motions but never executes them." And then, there is k'rance...an omini- present and encumbering partner, whose interference was unceasing since the accession to power of David Dacko, "Giscard's man," and whose vacillation following 10 Ma~y certainly contributed to destabilizing somewhat more a president whose position was already quite weak. The French in Bangui, however, are happy: "The circus is over!" said one to me. "The gobodes" (unemployed youths) "will no longer come to distribute their tracts on the terrace of the Rock Hotel, now they are going to have to get to work!" There is also smiling in the residential quarter of the "200 villas," where the French officers say they are "relatively sure" that they are going to stay. There is a smile, too, on the face of the blonde barmaid at a restaurant on David Dacko Avenue who sports on her tee-shirt, in enormous letters, the words "I love the Barracudas." "A soTdier in power in Bangui: that brings back memories around here, huh?" COPYRIGHT: Jeune Afrique GRUPJIA 1981. 9516 CSO: 4719/426 14 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 FOR OFFICIAL USE ONLY CENTRAL AFRICAN REPUBLIC REGIME'S ATTITUDE TOWAP.D IMF PROGRAM UNCERTAIN Paris JEUNE AFRIQUE in French No 1080 16 Sep 81 p 21 [Article by S.G. "An Economy Adrift"] [Text] Obtained only after a hard fight last June in Paris, will the moratorium on Central African debt (Fr CFA 57 billion) be kept or will it be thrown into question by the new regime? - In Paris, those concerned say that it is too soon to attempt a diagnosis. But they - are not expecting any change, especially since the accord concluded with the support - of the International Monetary Fund [IMF] is relatively favorable to Bangui: it includes a consolidation of arrears, a rescheduling of the debt over 9 years and a grace period of 4 years. Loans But the implementation of that program should begin at the latest in mid-October, after the signing of a confirmation agreement with each of the creditors. And particularly with France (Fr CFA 14 billion), Yugoslavia (4.1 billion), Switzerland (2.4 billion), and the United States (1.1 billion). Not to mention South Africa: 8.2 billion, including 7.8 billion in private loans and 0.4 billion in governmental loans, all obtained by Bokassa for the construction of 500 villas and the Hotel Intercontinental. The results of these bilateral negotiations depend now on the new minister of economic and financial affairs, military admiaistrator 'I'himothee Marloua, who, c,ne ignores the remote possibility that payments will be stoppped--can only ratify the Paris agreement. Should he do otherwise, he might alienate the investors, who - expect to see financial reform, as doea the IMF, with which a program of economic recover.y was concluded in March 1981. Austerity This 2-year program involves Fr CFA 40 billion in investments with top priority given to agriculture and indispensable economic infrastructure. It also calls for wage stabilization, gradual reduction in the rolls of public sector employees, and tax increases. Its objective is to put an end to the economic and financial deterioration whicti has continued since the fall of Bokasea: a decline in the real per capita 15 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY income, an aggravation of budgetary deficits: Fr CFA 10 billion in 1980, compared to 6 in 1977; a fall in export earnings (23.6 billion compared to 28.6) and growing import costs (42.6 compared to 25.5); which has resulted in a trade deficit of 19 billion, compared to the 3 billion surplus in 1977; deterioration in the balance of payments deficit: 13 billion in 1977, 43.4 billion in 1980; 49 billion forecast for 1981. COPYRIGHT: Jeune Afrique GRUPJIA 1981 9516 CSO: 4719/426 ~ ' 16 FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-40850R040400064044-3 FOR OFFICIAL USE ONLY COMORO ISLANDS ECONOMIC PROBLEMS OF ARCHIPELAGO SURVEYED Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1868, 28 Aug 81 pp 2203-2205 [Text] A photograph of East Africa taken from a satellite shows an image of Madagascar resembling a ship, the prow of which casts aside a cluster of amall islanda, some in the midst of the Indian Oce~n, others at the northern mouth of the Mozambique canal. The latter include the volcanic Comoro Islands archipelago, including Mayotte (375 sq km, 46,000 inhabitants), Moheli (290 sq km, 15,SOO inhabitants), Anjouan (425 sq km, 118,000 inhabi.tants, and Grande Comore (1,147 sq km, 163,000 inhabitants). Like that of Karthala, a volcano which is ati11 active, the history of thia archi- pelago has been and continues to be rather agitated. Without a doubt~this is because of a population with very diverse origina, made up of Malays, Sakalava Malagasy, Persians, Indians and Arabs, or perhaps also because of the foreigners who stop there, for as long as their sh~p is in port or for a lifetime--Portuguese, Germans, Englishmen, Frenchmen and even Chinese. To this very day, since the epoch of the _ "battling sultans" in the 16th century, quarrels and local intrigues have never ceased, prospering moreover in the midst of the fragrant scents of vanilla and ilang-ilang, thanks to which this land became known as the "perfume islands." To look no further than our own era, these last few years have been very agitated. In 1975, the unilateral declaration of independence, in reaponse to "rude conduct" on the part of France, was a surprise, but Mayotte, the separatist which did not want to remain in the bosom of ita "three siaters," acted alone and returned to the French fold--a move which annoyed the former aponsor and reduced the new state. A month later, in a dramatic coup, the president was overthrown, the regime hardened "in the Cambodian fashion" and France packed its bags and left, slamming the door, except on Mayotte,* where the legionnaires established themselves to build...what else but roads. But on 13 May 1978, in a feat masterminded by Gilbert Bourgeaud, alias Bob Denard, previously seen in action in Katanga and Biafra, the former president was put back in power. , And then, as if to bear out its reputation as the "shifting islands," the Comoros annexed the Glorieuse Islands, little islets lost in the Indian Ocean~which it *On 6 December 1979, the French National Assembly assigned Mayotte the status of a "special territorial collective" for the next 5 years. In 1985, the population of Mayotte will again be consulted. 17 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR UFFICIAL USE UNLY happened Madagascar coveted. Again a cause of friction with Tananarive, which had brutally expell~d 16,000 citizens of the Comoros from Majunga in 1975. All of this, a~ can be imagined, could hardly benefit an economic situation which, to say the very least, had never been very flourishing. Deteriorating Soil and Rapid Population Increase The Comoros are among those countries which find themselves acutely faced with the problem of survival in terms of food. With.a population increasing at a rate of 3.5 percent per year, and never having been able to eliminate the lag which developed initially in the production of subsistence crops, one can hardly see what path might lead to a happy solution. In any case, the soil is becoming exhausted and the extent of the arable is limited by a small overall area. We encountered this problem pre- viously in the study o� Rwanda and Burundi, but the situation is still more delicate here. The Comoros have no neighbors, and if the sea vesaels which bring in 30,000 tons of rice and other basic foodstuffs evexy year were to cease to call at these islands, the situation would become dramatic. No, to speak the truth, the future days of the perfume islands do not seem very certain to be happy. It is true that the authorities are attempting to "plan" family develcpment, but the results will be long in coming in a population in the grip of tradition, and thus ill-suited for the application of modern concepts. Also, the government is placing its hope for the time being in corn, which seems to provide better yields than rice, and in better yields for other food crops, such as cassava, sweet potato, etc, which grow up to 400 meters above sea level in the shade of the coconut palm. Without any doubt, the prevailing temperate tropical climate and soil of volcanic origin lend themselves well to a number of agricultural crops, but for years the forest has been deteriorating thanks to cutting at regular intervals. The soil has thus deteriorated and the rivers, flowing now on permeable soils, are draining away and their sources are tainted. For this reason rainwater had to be collected in tanks, leading to sub- stantial proliferation of microbes. In the Comoros, 80 percent of the population is affected by malaria, and infant mortality (malnutrition and illness) is 20 percent. One would think the scenario describea a nightmare univerae. This is, however, not quite true, because in tropics, and in the Comoro Islands in particular, the sun and the sea temper and ameliorate the harsh reality. But the Comoro Islands do not remain turned in upon themselves and their difficult problems, but also engage in exchange with the world. What then is the situation with foreign trade? Trade Out Of Balance Food crops, sorghum, cornr rice, sweet potatoes and the few livestock products are consumed on the spot and are involved in practically no commercial transactions. Volumes hardly vary and remain quite stable: rice: 3,350 tons in 1966, and 3,661 tons in 1978 corn: 1,155 tons in 1966, and 1,545 tons in 1978 cassava: 23,000 tons in 1966, and 24,460 tons in 1978 The only advance is seen for coconut (some of the copra is exported): 29,400 tons in 1966, and 48,700 tons in 1978. 18 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY Income crops, on the contrary, are playing an ever more preponderant role in the - economy: Grande Comore is the vanilla island (second largest world producer), Anjouan produces mainly cloves and ilang-ilang* (leading world producer), and Moheli produces copra (a byproduct of the coconut). Here, then, is the contribution . - of each of these products to the total export value in percentages: 1974 1977 1979 Ilang-ilang 36.7 26.7 14.1 Vanilla 22.1 49.2 69.1 Copra 23.2 6.1 5.3 Cloves 11.3 13.4 10.0 Vanilla and ilang-ilang thus account for the lion's share, being trailed at some distance by copra and cloves. The four together, in any case, account for 98.6 per- cent of the exports. Imports are mainly made up of food suppliea and heavily outweigh exports. Rice alone accounts for 20 percent of the import value. In 1975, imports totaled 4.968 billion CFA francs as conpared to exports worth 2.037 CFA francs, leaving a deficit of 2.931 billion, the rate of coverage being only 41 percent. More recently, in 1979, there was a deficit of 2.369 billion, but the rate of coverage was 60 percent. There are no minerals of value justifying exploitation in view, nor any prospects for oil. Thus it is hard to see how the deficit trend can be reversQd. Perhaps at a future date tourism could make a substantial contribution to foreign trade, but we are far from that point now. Finances of an Undeveloped Country The Comoro Islands are not lacking in resources and it ca~nnot be said that the coun~ry is poor. However, its economy is not yet developed enough for its financial situation to show a positive balance. Commercial trade which is out of balance inevitably leads to a deficit in the current payments balance. Only contributions from abroad in the form of loans or gifts can reestablish the balance. There is, however, one striking point when one studies this balance carefully, and that is the freight and insurance category. They accounted in fact for debits to the account totaling 1.298 billion CFA francs in 1978 and 1.820 billion in 1979. In other words, 65 percent of the export income! It is costly to be an island, above all when it is di.stant from the major production and consumer - markets. As to the foreign debt, it came to 21.3 CFA francs in 1980. The debt service came to 461 million CFA francs, or in other words the equivalent of 27 percent of the domestic federal budget income. This represents a burden which it is difficult for public finances to bear. A poor infrastructure, with few roads, no real ports, an airport with limited capacity, infrequent communications among the islands and intermittent service to the African *The flower of the ilang-ilang is used in making perfume. 19 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 r'UK urr'1~1a1. u~r: ULVLY continent and the rest of the world complete the economic picture in the Comoro Islands. Overall, matters do not appear in a very favorable light. A gross national product estimated at 1980 at $70 million, representing $200 per capita, gives some idea of the underdevelopment of the country. The plan of action which has been drafted for the 1980's should be able, if implemented methodically, to correct the situation. A Detailed and Consistent Plan First let us specify the main options selected: to guarantee independence in foodstuffs on a priority basis, to improve ~.nternal and external communications and to resolve health problems rapidly. Let us then examine the main projects which have been developed in terms of these goals. Self-Sufficiency in Food Some 95 percent of the population lives in the rural sector, which contributes 40 percent to the gross national product. Agriculture is far from the main economic activity. The soil of volcanic origin, although porous, is rather rich, but in view of the demographic pressure, the limited arable land poses difficult choices between the use of land for food crops or income crops. The balance will never be easy to strike. The fact remains that a number of proposals have been studied. However, let us first examine the activities in progress: The coconut palm project ($5.2 million, financed by the World Bank) is designed to increase the production of coconuts, and thus that of copra; _ the corn project ($3.1 million, financed by the EDF [European Development Fund]) has led to the planting of 221 hectares of corn on Grande Comore for the 1981-82 sea~on. Zf the expected yields are obtained, corn will be extended to Anjouan and Moheli; and improvement of the growing of vanilla, cloves and bananas ($7.6 million, financed by the African Development Fund), and finally, the poultry breeding projecC ($2.3 million, EDF and UNDP [United Nations Development Program]), which should result in the annual production of 4 million egga and 325 tons of poultry meat. Thia will be com- bined wir.h the development of sheep bree.ding, which ahould lead to the production of 250 tons of ineat annually. Currently, the residenta of the Comoros must be satis- - fied with S kg of ineat per year. This supplemenCary contribution will truly be welcome. According to experts, the potential for reaching an acceptable food production level would require the development of 51,000 hectares of available land. This would suffice to feed the 55,000 families in the Comoro Islands. In addition, these conditions favor the raising of goats and sheep above all, and also favor fishing, although the coastal waters are not especially rich in fish. If the fishing zone were extended to a radius of 50 km from the archipelago, a catch of 20,000 tons could be expected (present figure, 6,000 tone). Let us stress the following, among the 17 projects making up the structure of the rural plan: 20 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY The development and exploitation of the forests: planned reforestation of 300 to 400 hectares per year to pratect the soil and providc wood for carpentry and heating fuel; and the intensification of soil protection and restoration. This project calls for a pilot operation in 3 years covering 150 hectares (Nioumakele Basin, on Anjouan) which will subsequently be extended to other areas. Plans call for the creation of Rural Development Support Centers (CADER) so that the projects can be carried out under the best possible conditions. Planned to play a motivating and advisory role, but also to provide fertilizer and other supplies at cost, these CADER will be set up gradually. Five bodies of this sort are already in operation, and 10 others will be established in the coming months. Internal and External Communications Despite the excellent location of the archipelago on the Mozambique channel, which made it a port of call in the past, the modern world seems to have ignored this _ privileged location. Without a doubt the British took note of it during the last war and established a base there, but once Vichyist Madagascar came under its in- fluence, the Comoros lost their strategic interest. Also, there is no port worthy of the name. Only coastal vessels drawing little water can tie up along the ancient wharves of Moroni, the capital, or Fomboni (on the island of Moheli). Therefore, the few oceangoing vessels which stop in the Comoros drop anchor in the roadstead, and small harbor vessels ply back and forth to the loading docks. The major project in this sector is the development of a deepwater port at Mutsawudu* on the island of Anjouan. This site is preferable to that at Moroni, where the rocky bottom makes dredging impossible. The planned facilities will include a 250-meter quay (with an 8- to 9-meter draft) and a warehouse store. Handling equip- ment for the wharf operations has also been planned (traveling cranes, forklifts, hoists, etc). The total cost will come to about $27 million. _ Si...uitaneously, the ports at Moroni and Fomboni will be improved so that MLtsamudu can truly play the role of a dispersal port for the region. These two operations are expected to cost $22 million. Once the por.t infrastructur~ has been built, external communications will be sub- stantially improved, but communications.amon,g the islands remain infreque~t due to the lack of facilities. Three vessels ply these routes but they are ancient and of limited capacity. Thus the purchase of a 350-ton coastal vessel and a 2,000-ton cargo ship is planned. It is clear that in the case of the Comoro Islands, air service is much more than an auxiliary facility. It has become a sometimes vital necessity. The Moroni-Hahaya airport commissioned in 1975 has not yet been completed. The work must be continued in order to make of it an international class airport (cost, $7 million). As to the Anjouan and Moheli airports, they need extensive updating. *Total traffic in 1977 was as follows: imports, 60,000 tons, including 10,000 tons of oil products; exports, 3,000 to 4,000 tons. 21 _ FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2047102109: CIA-RDP82-00850R400404060044-3 FOR OFFICIAL 1JSE ONLY _ Air Comores operates a Fokker 27 (44 seats~. ~he purchase of an additional aircraft appears obviously ar~er,t. It should be noted, however, khat Air France provides a weekly flight between Paris and Moroni via Dar-es-Salaam. ~ ~ However, there are also interior islands where the roads are often nothing but bate ~ tracks impassable in the rainy season. Plans for this sector call for peripheral roads and some service roads to the interior. ~ One might say honor to whom hanor is due, for the Morani-Hahaya airport road (lE~ km) will be rebuilt on a priority basis. By the end of 1983, if the projects are carried out, there will be 450 km of paved roadway. But the whole of a maintenance service, also incorporated by the planners, ~ will remain to be impleme~ited. The plan includes, of course, sustained campaigns for health improvement (80 per- cent affected by malaria) ..~ncl rhe training of cadres and team leaders. If the 10-year effort bPars fruit, then, there can be no doubt that small industry, other than craft operations, will begin to see the light, and that tourism, prac- tically noz.c~xistent now, can develop seriously. _ Are the Sevchelles, ~arther to the north, with their 100,000 visitors every year, not alreacly a considerable encouragement? Assessment uf the Plan , The cost of the complex of projects can be estimated at $450 million. Apart from the assumpti.on of operational expenditures by the lenders for 5 years, and the total or partiaZ repayment of the foreign debt, the government of the Comoro Islands hopes to obtain favorable prices from certain suppliers, in particular the producers of oil. It is probable that the Comoro Islands leaders are too hopeful on this latter - point, because the OPEC countries, as a general rule, will give no special discount to Third-World countries, preferring for various reasone, one of which at least is _ a cost-accountirig consideration; to grant them advantageous loans, or indeed gifts. 'I'his being the case, the Comoro Islands hope that the international ~ottanunity will - examine their plan with interest and that their requests for aid will produce - results. In this connection, it will be recalled that French aid to the Comoros, suspendc.d at one time, was resumed, and the relations between the two countries were normalized despite the delicate problem of Mayotte, which still remains un- resolved. Where the Comoro Islands are concerned, one might believe that, from the strictly developmental point of view, it would have been better for them to remain in the French orbit, contrary, moreover, to what we had to say about Cape Verde in relation to Portugal. It is better in fact to negotiate the labyrinths and the convolutions of the administration in Paris than the complicated and often uncertain mazes of the IMF [International Monetary Fund], the World Bank, or some other international organism. This was the price of independence. This is without a doubt one of the expl.anations for the attitude of the Mayotte leaders. COPYRIGHT: Rene Moreux et Cie Paris 1981 5157 CSO: 4719/381 22 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 - FOR OFFICIAL USE ONLY GAMBIA CIRCUMSTANCES LEADING TO PROPOSAL OF SENEGAI~IAN FEDERATION EX~'IINED Paris JEUNE AFRIQUE in French No 1078, 2 Sep 81 pp 36-39 [Article by Francois Soudan: "The Price of Security"] [Text] Having learned from the tragic events in Ban~ul, presidents Jawara and Diouf haae.decLared themaelves in favor of a Senegambian federation. With much guttural clamor and the ample movements of their blue boubous pushing herds of dirty goats in f ront of them onto the mouldy planks of the ferry, the Mauritanians were the first to return. Small shopkeepers and breeders, seen throughout Ban3u1, they cautiously took refuge on the other side of the Gambia river during the first hours of Kukoy's putsch. For four days, they watched their stalls burning in the distance, before getting back onto the first "ferry" which was leaving from Barra. Today, they are feverishly counting their losses which Dawda Jawara promised to compensate. However, fcr them, it will no longer be qu~!te the same as before: the huge contraband traffic from which they also made thei�r living as sma11-time smugglers or occasional retailers has, in effect, a strong chance of becoming nothing more than a memory. Contraband The Senegalese are there and it is not a hidden fact in Dakar that one of the missions - of the expeditionary force, which is present from Ban~ul to Garowal along the entire _ stretch of Gambian territory, is to clean up this huge "duty free" supermarket which the country of Dawda Jawara has become. One would find everything in Ban~ul: whisky and hemp, cameras and trucks...Weapons as well: poachers who operate in the Senegalese national parks came here to stock up on kalachnikovs, whereas the gamekeepers are only equipped with old Mas 36 rifles. It is estimated that nearly 70 percent of the products imported by Gambia were smuggled out of the country. An extremely lucrative market from which the very rich bourgeoisie of Banjul profited including the family of Dawda Jawara itself. Further- more, contraband and also tourism are two closely related activities; an aggressive, polluting, hugh tourist trade (a dozen or so luxury hotels between Ban~ul, Sere Kunda and Bakau whose total population does not exceed 60,000 inhabitants) that is beginning to spread along the banks of the Gambia river since the transformation of Juffure, the ancestral village of the American writer Alex Haley (author of "Roots"), into a place of pilgramages for Black Awerican tourists. 23 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 FOR OFFICIAL USE ONLY Although the putschists did not attack the Westerners (very strict orders were given in this regard by Kukoy), certain hotels like the Bungalow Beach, frequented primarily by Swedes, were occupied by young rehels. During a matter of serveral hours, they tied about 20 tourists to trees before forcing them to lie down under beds... Hardly surprising, in view of the extent of frustration experienced by an urban population (whoae annual income per inhabitant hardly surpaeses 1,500 French francs or 75,000 CFA francs wh;ch the opposition to Jawara's regime was able to swell during recent years to the point of becoming a permanent threat. A many-sided opposition, rallying the Akou (bourgeois of Banjul) who are hostile to a president who always depended on the rural masses, as well as leftist functionaries barred by the Constitution from all political positions, and 3oined by unemployed workers and the uprooted. Three principal groups: the National Convention Party (NCP), of former vice-president Cherif Diba (excluded from the Progressive~People's Party-- PPP--in 1968 following a tinancial scandal), supported by the Akou; the Gambian Socialist Revolutionary Party (GSRP), rather pro-Soviet and the Movement for Justice in Africa (Mo~a) . Opposition All three, in varying degrees, participated in Kukoy's putsch (who furthermore, is a member of GSRP). But the last of the three is, by far, the most original: basi- cally Pan-African with roots in various English-speaking countriea such as, Nigeria, Sierra Leone and above all, Liberia (where it played a decisive role in the over- throw of William Tolbert), Moja extols "social and African ~ustice" according to the directives of its principal inspirer: Tipoteh Natogba, economic minister of Liberia. In Banjul, the Moja was directed by two extraordinary personages: Koro Sall, an old associate of N'Krumah, professor forever wearing a beret in "Che" fashion,and, particularly, Samuel Sylla. Sylla is the "Black Falcon", an odd mercenary trained at the British military academy of Sandhurst, officer in the Nigerian army during the Biafra war ("effective, fierce, dangerous", as Yakubu Gowon described him one day). Having returned to Banul in 1969, he was gLven a position by Jawara, who feared him, at Radio-Gambia (with a minister's salary). These three opposing forces, which nothing outside of a common hatred of the "Jawara clan" brought~together were, thus, united on Thursday 30 July, behind Kikoy Samba Sanyang and the rebel elements of the Field Force. Today, they no longer exist or almost d~ not. Beheaded. Cherif Diba: arrested; Pingou Georges (leader of GSRP): shot and killed; Koro Sall: shot and killed; Kukoy and Sylla: vanished. Dawda Jawara, therefore apparently has a free hand, as never before, for better or for worse. Undeniably, the worse would be to retain the structures, the systems and the style which pre- vailed until noTv, not leaving him any other choice of surviving other than insta- - bility and permanent repression. Will thie weary taan, who declared the day after the putsch: "if it were only up to me, I would h~~.~e resigned from power", have the will to start very profound reforms? The creation of a prime minister's post, the opening up of political careers to functionaries, reform of the ma~ority party, the PPP, permit hope for a possible commitment in this direction. 24 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFIC[AL USE ONLY Dissolution However, it remains that the freedom en3oyed by Jawara is now little more than one strictly supervised, almost ullusionary. The Senegalese army which gave him back his position, lost at least 30 men in this action and a non-negligible part of its operational budget. A gap, which the million dollars promised by Jawara as compensa- tion for families of victims, will certainly not be able to fill. Moreover, the officers who surrounded Lietenant-Colonel Abdourahmane ("Abel") N'gom, commandant of the Senegalese contingent in Gambia, have understood better than others the state of dissolution into which this country had plunged, half of which had been declared "a disaster area" the day after the putsch. Perhaps, they would be reluctant to intervene a third time if nothing were done to remedy the causes of the "Gambian malady": nepotism, disorganization, corruption. Especially since strict orders, which obliged them to use only very reatrained fire power d~ring "Operation Fode Kaba II", were not well accepted by some. Integration The sight of President Jawara giving his press conferences at the State House in Ban~ul, surrounded by Sene.galese military, permits one to guess how little freedom the Chief of State will have from now on. And the concordant declarations, on 19 August in Dakar, of Jawara and Abdou Dioud in favor of a"Senegambian federation" Combining the security and defense services of the two countries, only confirm what must be called a defacto integration. Like Zanzibar allowing itself be absorbed, 15 years ago by Tanganyika into a"Tanzanian federation", Banjul does not, in effect, have either an army or security service to integrate. From before 1965, independence date of Gambia, the formation of a"Senegambia" was already anticipated in Dakar. It took shape in the following years by the creation of an interministerial commission and the signing of a treaty of association includ- ing agreements of mutual defense. "Operation Fode Kaba II" gave this union physical shape. From a simple historical point of view, the creation of a Senegambian federation may pass, after all, for the correction of multiple colanial aberrations: on each side of the borders (but Senegal and Gambia are not the only ones in this case), they are in effect, the same people, the same culture, the same heroes whose names are: Yaba Diakhou, Lat Dior Diop, Mamadou Lamine or...Fode Kaba. Nationalism - From the aspect of political ethics, the proposal can defend itself as well: the most ferocious adversary of an integration was always, in effect, the most corrupt group of the Ban~ul bourgeoisie, who feared--and rightly so--that a Senegambian federation would make it lose the substantial gains which it drew from contraband. It can finally be said that independence is under way and deservedly so: in 15 years, the political class in power in Banjul did little (or almost nothing) in this regard than transform its country into a travel folder and a supermarket for traffickers. However, there exists, undeniably, a certain Zambian national feeling due, above all, to a century and a half of British colonization. A feeling which the 25 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/49: CIA-RDP82-00850R440400060044-3 F'()R OFFICIAI. USE ONLY - Senegalese military intervention, understandable as it was, did not conduce to change--far from it. E~erything depends now on the way in which the men of Dakar will concern themselves with Gambia, without for all that occupying it... COPYRIGHT: Jeune Afrique GRUPJIA 1981 - 9853 CSO: 4719/384 ~ 26 FOR OFFICQAL USE QNLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400400060044-3 FOR OFFICIAI. USE ONLY GAMBIA PROS AND CANS OF SE[JEGAMBIAN UNION DISCUSSID Paris JEUNE AFRIQUE in French No 1081 23 Sep 81 pp 33-34 ~rticle by Sylviane Kamara: "It is Urgent to Wait" rTex~ Though it appears natural, the Senegambian con- federation project gives rise to varied reactions. A frog in the throat, a burr under the saddle~ a suppository in the behind of Sene~al: metaphors for Gambia are not lacking and are in no way flatter- ing. Gambia is a small bit of something irritating, whi~h is a nuisance and which can hurt. So it goes without saying that the Senegalese greeted with relief and enthusiasm the announcement by their president on 7 September that confederation of the two countries will take effect 1 January '1982� "I think that in the immediate future Sene$ambia will impose a few sacri- fices on Sene~al," explained Abdou Diouf, ~'but in the medium and long term this union will benefit both Gambia and Senegal." A confederation, then~ there will be, with each state, for the time being, retaining its sovereign- ty. - ~ c ~ in mid-august~ circles closa to the liaicar government :�rere ta:..~:~ of a federation to come into being within 6 months, with President Abdou Diouf as head of the Senegambian state, and Sir Dawda Jawara as vice president. The latter would accept at the outset, in the euphoria of his ~ratitude to the Senegalese, but would later withdraw. In any case, it is not certain trat this formula would win the support of all Senegalese. "Jawara as vice president?" asked a Dakar youth with surprise and earcasm "Senegalese inter- ventions at 6-month intervals have proven his weakness. He should settle for the post of governor of Gambia!" Contraband It is true that the rebellion at the end of July did nothing to restore his standing. Perhaps a federation could more easily be set up with the suces- sor of the present Gambian president. But the last word has not yet been spoken. "Confederations have always evolved towaxds federation," considers - Sene~alese Prime Minister Habib Thiam, ~'and we wish for the closest coopera- tion with Gambia." 27 - FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 FOR OFFICIAL USE ONLY In the economic and political fields it is not denied in Dakar that the problem of contraband will have to be examined on a priority basis. Im- ports by Gambia in fact largely exceed its needs. The state thereby col- lects considerable customs duties, and fraudulently disposes of its sur- pluses across the river. It is consequantly urgent and indispensable for Senegal that the tax structure be;harmonized between the two countries. What of the reactions of other states, particularly Guinea-Bissau? Its shadow was thought to lurk behind the rebels who proposed the establishment of a federation to join Gambia, Bissa.u, and the "liberated" Casamancei That is why the head of state, Joao Bernardo "Nino" Vieira, declared on 9 August, while visiting Sene~al~ that "we are in Dak.ar to lend once again the support of my government and people to the action taken by the Senegal- - ese Government, so that peace and security may reign in our subregion." - At the same t'ime Col Manuel Saturnino, minister of interior, pointed out to Dr. Daouda Sow, Senegalese defense minister~ that the authorities of his country were well aware that a Senegalese reconnaissance aircraft had flown over their border, but had been content to strengthen their military ~ispo- sitions. "We did not reaot," Col. Saturnino said in substance, "but next time, we will fire!" The people of Guinea-Bissau are neverthe~.ess disturbed, for Kukoi Samba Sanyang, leader of the Gambian putschists, has taken refuge in their coun- try. Though his arrest was not made public until 26 August, the Gambian and Senegalese governments knew as early as the 8th that the brains of the coup d'etat was under lock and key. Security If Bissau wavered that lon~, it was because the Council of the Revolution was divided as to his fate. President "Nino'~ favors his extradition. But others maintain that Kukoi Samba Sanyang--who enjoys full freedom of move- ment ~s publishe~--after all represented himself as a Marxist-Leninist. How could he be handed over without abjuring the faith, or antagonizing Angola, Mozambique, and the USSR? For pro-Soviet communists take a very _ dim view of the way events have turned, and this Seriegambian confederation � looks to them like an annexation. They are not alone in their frowning. Britain took offense at the Senegal- - ese intervention of October 1980, and it is probable that it will make great efforts to wreck or delay the confederation, which would cause the loss of a part of its influence over Gambia. But whatever Bissau or London may think, Senegal could hardly permit the development in Gambia of a regime far too different from its own, mo mat- ter what its nature. Would a Maoist government in Dakar accept a pro-Soviet team at Banjul? One can get along with any neighbor, but can one, without risking his own safety, admit just anyone into his house? COPYRIGHT; Jeune Afrique GRUPJIA 1981 6~ 45 Cso : 4719/31 2.8 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 F'OR OFFICIAL USE ONLY IVORY COAST INDUSTRIAL STATISTICS SHOW DECLINE IN MOST SECTORS Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1870, 11 Sep 81 pp 2330-2331 [Text] Even before the fiscal year ends next 30 September and before the companies' accounts are published several months after that date, Ivory Coast industrialists are not hiding either their distress over the results of the 1908-81 business year or their concern over the difficulties to come. It is true that oil production prospects--the magnitude of which nobody in Abdijan knows, except for certain members of the Oil Committeel give reason to hope for a better future. However, as Mr Lambert Konan said last June in the opening address of the general assembly of the Chamber of Industry he presides over, "the path that leads to this future will be fatal for many co~anies that will find they do not - have the resources needed to cope with the decline in economic activity between now and 1981-83, the slowdown in government investment, the sudden and massive increase in interest rates, inflation, problems in collecting their debts and corresponding cash problems." In order to place this s tatement in the context of the Ivory Coast, a balance sheet of the activities of the secondary sector in 1980 and 1981 should be drawn up, on the basis of the statistics available for last year and the few data an the current fiscal year. Then in conclusion, we will review the main plans that Mr Maurice Seri Gnoleba, - minister of industry, has for his country's industry. He is already speaking proudly of the projects as not b eing easy, but ae full of hope. A Balance Sheet That Varies by Sectors . Ivory Coast industry showed a growth rate of 22 percent in 1980, as compared to 18 percent in 1979 and 20 percent in 1978. Although the increase in volume was only 10 percent, against 12 percent in 1979 and 15 percent in 1978, the results for the 1980 fiscal year are very close to the annual average for the decade of the 1970's, i.e., a 23 percent increase in value and a 12 percent increase in volume. Exports, valued at 282 b illion CFA francs in 1980, grew more rapidly (+38 percent) than sales on ths domestic market (+15 percent), and th~y account for 35 percent of the total turnover of industries (795 billion) and 48 percent of total Ivory Coast expurts (590 billion). This committee includes the secretary general of the government, the mining minister, the finance minister, the director of PETROCI and the director-general of the Autonomous Sinking Fund. Oil production in 1981 will amount to about 480,000 tons of crude oil extracted from the Belier deposits. 29 ' FOR OFFIC[AL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02109: CIA-RDP82-00850R400400060044-3 FOR OFFICIAL USE ONLY At tfie same time, the number of persons employed by Ivory Coast industry (71,373) i.ncreased by 6 percent and total wages (94.6 billion CFA francs) by 26 percent. The 1981 economic decline, zxpressed in terms of volume, should range between -15 and _ -20 percent. Ivory Coast industry came closer to some structural objectives it had set in 1980 and - thus is increasingly in the hands of the Ivorians every year. The "ivorization" of capital is progressing and amounts to 64 percent, 53 percent of which, however, is government-owned and only 11 percent in the hands of private investors. Ivorians account for 75 percent of the work force, other Africans 22 percent, and non-Africans 3 percent. The supply of factories with Ivory Coast raw materials is developing and now accounts for 60 percent of total turnover, DecEntralization is being pursued: Abidjan now accounts for only 60 percent of production, as compared with 70 percent 2 years ago. An analysis of the figures for industry and public works by branches is needed to get an idea of e xactly how the secondary sector has developed. (Most of the statistics have been extracted from studies conducted by the Ivory Coast Chamber of Industry.) The structure of Ivory Coast industry has changed very little in the past 3 years: the agro-food sector is stillthe predominant one, refining has gained nearly 2.5 points as a result of the increase in oil prices, and mechanical and electrical industries such as wood processing industries have declined by 1.5 points. Qverall, industry accounts for 71 percent of the secondary sector in 1980, as compared with 65 percent in 1979 and 64 percent in 1978. - A. Construction and Public Works '.~his sector has developed prodigiously in 20 years (with a turnover multiplied by 36) and, what is more, went through an exceptional period in 1976, 1977 and 1978, when growth rates in terms of value ranged around 40 to 60 percent. However, the massive reduction of government investment caused a slowdown in activity which gradually took the form of stagnation in 1979 (+13 percent in value), of a considerable setback in 1980 (-6 percent in value or -20 percent in volume) and is very li~cely to take the form of a sharp drop in 1981 (-40 percent in volume). - 30 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 FOR OFFICIAL USE ONLY Turnover for the Secondary Sector (In billions of CFA francs) 81-80 79-78 80-79 estimate Indus try . . . . . . . . . . . . . . . 549 650 795 755 Construction and Public Works 309 349 327 245 Total . . . . . . . . . . . . . . . 858 999 1122 1000 Change in Turnover (Percentage) 81-80 79-80 80-79 estimate Indus try . . . . . . . . . . . . . . . +18X +22% -5% Construction and public works . . . . . +13% -7y -25% Total . . . . . . . . . . . . . . . +16.3% +12% ~12% Structure of Ivory Coast Induatry (Percentage of turnover) 1978 1979 1980 Agro-food (branches 6 to 10) 37.2y 37.2y 37.3 , Textiles (11) . . . . . . . . . . . . . 12.8y 12.9% 12.5 Timber (13) . . . . . . . . . . . . . . 7.3% 6.8% 6.0 Oil refining (14) . . . . . . . . . . 9.9y 10.5% 12.3 Chemical industry (15) . . . . . . . . . 7.7y 7�8~ 7�1 Mechanical and electrical industries . (18,19,20) . . . . . . . . . . . . . 11.6X 11.0% 9.5 Other . . . . . . . . . . . . . . . . . . . 13.5X ].3.8% 14.7 ' These sudden changes in volume of activity are of course characteristic of the con- struction and public works sector, but that doesn't make them any less dangerous. Employment has been seriously affected: 45 percent of the 57,000 workers have been laid off in 2 years, and the financial situation of most of the companies is more than strained because of payment arrears, bad debts, and the climb in interest rates and inflation. ~ 1979 1980 1981 Turnover (billions of CFA francs) 349 327 245 Number of companies . . . . . . . . . . 329 298 250 Employees . . . . . . . . . . . . . . . 57,000 43,900 32,000 including: Ivorians . . . . . . . . . . . . . . . 33,000 25,000 17,000 other Africans . . . . . . . . . . . . 21,000 16,800 1].,800 non-Africans . . . . . . . . . . . . . 2,450 2,044 1,300 Total wages (billions of CFA francs) . 73.6 68.8 50 31 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00854R000440060044-3 a F'OR OFFICtAL USE ONLY B. Industry 1. Agro-food. At the very heart of Ivory Coast's economy, this sector has a turnover _ of nearly 300 billion CFA francs. It has grown in step with Ivory Coast industry as a whole, at a rate of 22 percent in value between the 1979 and 1980 fiscal years. However, divergent results are noted in the different branches. Branch 6: Processing of grain and flour (CA (turnover] 1980: 113 billion) This branch is increasing its turnover very rapidly (+73 percent in 1979, +63 percent on 1980), thanks to the flour mills (the Grands Moulins of Abidjan is the 14th largest firm in ivory Coast). The rice husking factories, however, have operated below their capacity in 1980-81, because delivery from the OCPA paddy has been in- adequate. Branch 7: Canning industry (CA 1980: 70 billion) This export-oriented branch (85 per- - cent of sales) has shown a decline in its turnover since 1978 (-8 percent in 1979, -7 percent in 1980). Pineapple canning firms are unable to compete against the Asian market and must sell their goods on the world market at a price below production cost. In 1981, the three main companies in this sector, and especially Salci, a subsidiary of SCOA [West African Trading Company], are on the verge of bankruptcy. Branch 8: Beverages and ice (CA 1980: 31 billion) The rate of increase in the value of this branch, which has exceeded +35 percent a year since 1975, suddenly fell to +7 percent in 1980. In 1981, the most recent figures show a decline in the volume of activity of about 14 percent for "this sector. The major companies are Solibra and Bracodi, the llth and 13th largest Ivory Coast firms, respectively. .3ranch 9: Comestible fats (CA 1980: 44 billion) In 1980, this branch recovered ~`slightly in comparison wiCh 1979--a 19 percent increase in value, as against a 4 percent increase. But the difficulties which the cocoa butter companies encountered in obtaining supplies of the basic raw material, i.e., cocoa, seem more than para- doxical in a country ranked among the foremost world producers. In 1981, the cocoa processing plants ha~te fared better without a doubt, while the Palmindustrie production apparatus was disorganized because of that firm's financial problems. The Blohorn group, the largest private firm in the country which is showing good growth for this year as a result of constantly expanding its line of popular consumer products, even had problems obtaining supplies of oil because of the shortage of Palmindustrie. 2. Textile industry, branch 11 (CA 1980: 99 billion CFA francs) The building of a strong and competitive textile industry appears as one of the successes of Ivory Coast's industrial policy. Downstream from the CIDT, the agency in charge of cotton production, six spinning, weaving and printing companies (Gonfreville, Icodi, Uniwax, Sotexi, Cotivo and Utexi) are part of the 37 Ivory Coast firms recording a turnover of more than S billion CFA francs in 1980. The textile industry, which exports 30 percent of its output, grew by 19 percent in 1979 and 18 percent in 1980. However, the financial difficulties of the CIDT, to 32 FOR OFF(CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 MOR OFFICIAL USE ONLY which the Agricultural Stabilization and Price Support Fund (CDDPPA) and the Ivory Coast government have loaned substantial amounts, might lead to the abolishment of the preferential prices for cotton granted to cotton mills. Moreover, illegal imports undermine the market whenever controls are relaxed. The 1981 and 1982 fiscal years may therefore turn out to be less favorable for the textile industry. 3. Timber industry, branch 13 (CA 1980: 48 billion CFA francs) The timber industry, which was flourishing just a short time ago (+25 percent increase in value between 1975 and 1978) slowed down in 1979 (+10 percent). There has also been a persistent drop in the percentage of rough timber processed in local factories (42 percent in 1978, 41 percent in 1979, 37 percent in 1980). Finally, since May 1980, the world timber market has fallen into a deep slump and a number of timber processin~ comvanies which traditionally were also in the rough timber business are going through a very difficult period and,'if not forced tb file for barikruptc~,.are at least in a dormant state. ' : ' " 4. Oil refining, branch 14 (CA 1980: 98 billion CFA francs) Oil refining has tripled its turnover in 5 years. After a slight decline in production in 1978, the turnover of this branch increased in value by 47 percent in 1979 and by 35 percent in 1980, because of the increase in oil prices. An expansion of the production capacity (2 to 4 million tons a year) of the Ivory Coast Refinery (SIR), the Ivory Coast firm with the highest turnover, should maintain this upward trend in 1981, if the general slackening of the economy and the increase in consumer prices of oil products do not cause a sharp reduction in domestic de- mand. Whatever the case may be, the Ivory Coast refining industry is increasingly export-oriented: exports totalled 57 percent of turnover in 1980, as compared with 47 percent in 1979 and 41 percent in 1978. 5. Chemi.cal industry, branch 15 (CA 1980: 62 billion) The turnover of the chemical industry almost doubled in 4 years and its increase in value seems to have levelled off slightly at over 20 percent a year. However, SIVENG, the main company in this _ branch and the country's primary producer of fertilizer (60,000 tons), is no longer able in 1981 to play the role of "financial institution" that the fertilizer subsidy and prefinancing policy of the Ivory Coast government implicitly assigned it. COPYRIGHT: Rene Moreux et Cie Paris 1981. 9805 CSO: 4719/407 33 FOR OFFICIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2407/02/09: CIA-RDP82-00850R000400460044-3 FOR OFFICIAL USE ONLY MALAWI - TRANSPORTATICN, TOURISM, ENERGY FOCI OF EC~aCMIC PLAN Paris MARCHES TROPICAUX ET MEDITERRANEENS in French No 1868, 28 Aug 81 pp 2201-2203 LFialawian Report to the United Nations Conference an the Least Developed Countries (Paris, 1-14 September 1981): "The Revival of Growth"7 - ~ext7 One might almost say that Malawi follows its lake, that it follows the exact shape of it equally as much as it blends with it. A strip of land, barely more than 100 km wide, the country is, in effect, squeezed between the western shore of Lake Malawi, formerly Nyassa, and the Zambian frontier, and becanes even wider, slightly, towards the south in the direction of the valley of the Zambezi. If you add that Livingston discovered this enormous body of water in 1859, that specialists are very interested in the almost unexplainable variation of its water level, and that, lastly, the region is located in the extreme south of the great geologic fault of eastern Africa, you will have said all there is to say about this state, born in 1964, with limited resources. Basically a country which, a priori, calls up no particular commentary, as historians say when they lack anything more interesting to say. Nevertheless, upon taking a closer look, in Africa Malawi is a case which is unique in its genre. Its president (for life), Dr Hastings Banda, has dared establish close relations with the "white bastion" of apartheid. Haviny become, at that time, champions of anticommunism, the Malawian chief of state took the side of South Vietnam and the United State s in the Indochinese war. Soon after he played the part of privileged speaker for Pretoria within the framework of the South African policy of openness with the independent black states. Banda, not hesitating to "ally himself with the Devil," har3 the ambition to "kill apartheid by contact." "Dialogue is the best method to hasten its end," he said... In 1971, he was received in South Africa in spectacular fashion--pushing Tanzania and Zambia, intransigent on the principle of apartheid, even farther from the "renegade." - Afterwards, everything was not clear between Pretoria and Lilcngwe which recalled its immigrant workers, but, even so, relations between the two countries remained rather close. On the other hand, Zambia was obliged to "talk econamy" with South Africa and reestablished a good relationship with its neighbor, an instance which stands alone. Thus, everything seems apparently to have calmdd down again between the "socialist" countries and Malawi; the economy has prevailed aver politics, but what a lot of agitation provoked Malawi's attitude. This must be remembered. 34 FOR OFF[CIAL USE ONLY APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 APPROVED FOR RELEASE: 2007/02/09: CIA-RDP82-00850R000400060044-3 F'OR OFFICIAL USE ONLY - Economic necessities prevailed and this was preferable, especially when it is a matter of ~::ensitive point or global hot spot. Then Malawi, with its six million inhabitants, ' marchiny ~gainst the current of history, had benefitted, in that way, from the favors of a powerf~~l South AErica; permitting it to get off to a good start in the economiC spizere (financing of railroads and the transfer of the capital to Lilongwe notably). - This does not deny that Malawi finds itself anyway, in 1981, in the "LDC club" (least developed countries)...The PMA (pays les moins avances--least developed countries); wt~ich pleases its adversaries who see in that a just sanction against a type of conduct they consider, at the very least, debatable. Perceptible Progress Over a Period of Years ~ Everythiny ~eemed constrained to contxnue along the mo:nentum of ~he years following independ~~nce, that i~ along the path of a constant and substantial progression in the ~~IB--~_~rsc~ it was necessary to borrow, and not always under favorable terms. A few figures will show th~_~ituation even better. F'oreign ~lebt by 31 December 1978 rose to 508 million kwacha (1 kwacha =$1.25; $L.00 = O.E3 kw) ~nd the trade deficit rose to 130.6 ~r~illion kw in 1980; the tendency for the iuti.ice i~ to inccease further. - F.~cec~ w i tt~ ti~ i; i tuat ion , the gc~ve rnment adopted the auster ity measures that one adc~pts in sim~l.jr cc,~_~es: increase gasoline taxes, budget e~ts in operations and F~.~ui~-n~f~nt , limits on imports, and a lowering of credit ceilings. Cyclical measures, thc :-.pc~, c-~~usin