ZAIRE: CHALLENGES AHEAD FOR MOBUTU

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CIA-RDP88T00768R000100030001-2
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S
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April 11, 2011
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1
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January 1, 1986
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REPORT
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Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Iq Next 1 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Directorate of Secret Intelligence Zaire: Challenges Ahead for Mobutu Secret ALA 86-10003 January 1986 Copy 362 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Directorate of Secret Intelligence Zaire: Challenges Ahead for Mobutu This paper was prepared by I Office of African and Latin American Analysis. It was coordinated with the Directorate of Operations Comments and queries are welcome and may be directed to the Chief, Africa Division, ALA 25X1 Secret ALA 86-10003 January 1986 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Zaire: Challenges Ahead for Mobutu Secret Key Judgments President Mobutu-a staunch ally of Washington-has achieved a stron- Information available ger political position over the past three years. His energetic rule has been as of I January 1986 highlighted by unprecedented perseverance in a tough austerity program, was used in the report. substantial improvement in ties to his key Western backers, and greater involvement in regional affairs. We expect Mobutu's politically skillful leadership and pervasive patronage system to ensure the stability of his regime over the next two years or more, but daunting economic problems and increasing political disgruntlement are likely to slowly erode his authority over the longer term.F- Although Zaire's adherence to a stringent IMF-supported reform program has halted the country's economic decline, according to recent economic data, a growing debt service burden and low world prices for its major ex- ports leave poor prospects for growth. We estimate that real GDP growth for 1985 was about 2 percent, well below the IMF target of 4 percent, and barring a major turnaround in commodity prices we believe Zaire will experience slow economic growth through the end of the decade and a continuation of the 10-year decline in per capita GNP. A shortage of foreign exchange has again fueled inflation and contributed to a slowing of business activity. Because of budgetary constraints in donor nations and the reluctance of private investors and commercial banks to put new money in Zaire, we doubt that Kinshasa can attract sufficient external funds to spur growth. F_~ Reporting from the US Embassy) (suggests that 25X1 Mobutu-like the Zairian public-is becoming increasingly unhappy with the slow results of the economic reform program. Moreover, his disappoint- ment is likely to increase if his efforts to gain IMF support for more expansionary policies and increased Western support are not successful, as we believe will happen. He also is likely to become increasingly frustrated with the greater involvement of IMF and World Bank officials in Zaire's policy decisions and what he perceives as IMF insensitivity to the political consequences of its program. While Mobutu may threaten to abandon the program, we believe he will stick with it for at least another year. As the painful aspects of austerity continue past 1986, however, we believe Mobutu will be increasingly tempted to backslide or even abandon the program, particularly if he perceives his political position to be weakening. Secret ALA 86-10003 January 1986 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret While Mobutu's political flanks are secure, we believe public discontent over declining living standards and over the absence of political competi- tion may very well set the stage for increasing signs of protest, such as la- bor slowdowns or strikes, student agitation, and other antigovernment demonstrations. Simmering ethnic tensions among the ruling elite also probably will challenge Mobutu's political skills. We are fairly confident that Mobutu's long practice in the use of co-optation, compromise, and coercion will remain effective. If he missteps, however-for example, by employing excessive repression-such a miscalculation could fuel opposi- tion and undermine confidence in his rule among the domestic elite, foreign backers, and the military leadership. Small-scale rebel activity continues in the east, and, although dissident groups pose no threat to the regime now, Libyan support may make them more of a challenge. Libya has stepped up efforts to subvert Mobutu, and, in our judgment, is moving to gain influence in neighboring countries in or- der to launch operations against Zaire. In our view, the possibility of Libyan-sponsored terrorism, particularly an attempt on Mobutu's life, has grown. Moreover, we believe Mobutu's current plans to improve military and security capabilities will have to be scaled back severely because of economic and other constraints. In the foreign policy arena we expect that Mobutu's efforts to enhance his stature with other black nations will yield only mixed results. We believe he will gain some influence by providing military training to other moderate regimes in the region designed to counter Libyan activity, but most of his bids for regional stature-such as his proposal to establish an organization solely for black African states-will be rejected because his close ties to the West and Israel will continue to isolate Zaire from the Af- rican mainstream. In dealing with the conflict in Angola, we believe Mobutu will continue his dual-track policy of providing covert logistic support to UNITA while maintaining a dialogue with Luanda. Because of his growing concern with the increased Soviet and Cuban presence in Angola, we believe he would welcome Western assistance to UNITA and be willing again to provide airfields, personnel, and intelligence support, despite the risks of Angolan retaliation. We foresee no major changes in Zaire's close relations with the West, but frictions with Washington are likely to arise over the level of US help and Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 possibly over trade and commodity issues. Mobutu probably will publicly criticize the West on Third World debt issues and look for limited aid from non-Western sources, but he would probably stop short of jeopardizing the European and US ties he has nurtured so carefully. Mobutu's death would greatly increase the potential for serious unrest, and a troubled transition period would open new opportunities for Soviet and Libyan inroads. We believe all of the identifiable contenders for power would continue a pro-US policy. It is possible, but we believe unlikely, that elements to which US officials have no access-such as lower ranking military officers who harbor anti-US views-could gain authority in a period of intense political infighting among elites. Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Key Judgments Keeping in Compliance Political and Security Challenges 9 Libyan-Backed Dissidence 10 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Figure 1 Zaire's Neighbors Metal refining I Oilfield II& Oil refinery Copper-cobalt-zinc mineral zone Diamond deposit Major coffee-growing region Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Zaire: Challenges Ahead for Mobutu The past few years have been ones of accomplishment for President Mobutu. Through strong leadership he has been able to implement a rigorous IMF-supported austerity program, further consolidate his political power, somewhat improve military capabilities, and reenergize crucial Western support for his regime. Looking ahead, however, a variety of key issues will become more difficult for him to address: formidable economic problems stemming from a growing debt service burden and low world prices for major exports, simmering public frustration with both declining liv- ing standards and the autocratic political system, and increasing Libyan subversion because of Mobutu's close ties to the United States and Israel. to seize power from civilian hands. This paper focuses on the principal challenges Mo- butu faces over the next two or three years. Although we expect Mobutu to continue in power during this period, Zaire's political stability remains fragile. Be- cause of the relative importance of Zaire in US dealings with black Africa, this report explores the forces working to weaken Mobutu's political position. It also analyzes some of the implications if Mobutu passed away unexpectedly or the military felt forced As Mobutu enters his 21st year in power, we believe he is increasingly concerned with his place in history, and thus more sensitive to long-term issues such as economic development and Zaire's regional and inter- national image. Regardless of the exact reasons, Mobutu-following a spell of lackluster leadership- has emerged over the past three years as active, strong, and self-confident.' During this period he has shown the ability to work with the IMF, improved the capabilities of key military units in the capital, contin- ued to keep his opposition divided despite broad discontent with economic and political conditions, and smoothed relations with foreign backers. of funds into the pockets of the ruling elite. On the economic front, Mobutu has publicly pro- claimed development as the first priority of his re- gime. Since 1983, US Embassy reporting shows he has actively encouraged economic reform and demon- strated unusual perseverance in implementing tough austerity measures designed to set the stage for future economic expansion-a marked departure from the past in which four IMF programs failed between 1976 and 1981. Zaire successfully completed a 15-month standby arrangement that began in December 1983, and in the first half of 1985 reached agreement on a one-year IMF follow-on program and another debt rescheduling with the Paris Club. According to the US Embassy, a market-based exchange rate-which has reduced use of the parallel foreign exchange market-and lower budget deficits were instrumental in substantially lowering the inflation rate. Moreover, external debt obligations have been met on time, price liberalization has led to slightly improved agricultural production, and reforms have helped reduce diversions Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Over the past few years, Mobutu has also been consolidating his political base. According to diplo- matic reporting, Mobutu has continued to master Zaire's politics, relying on manipulation, co-optation, and coercion to stymie the opposition and to defuse discontent among labor and students: ? He initiated an amnesty program several years ago that has led a number of prominent political exiles-including notables such as former Prime Minister Nguza-to reconcile with the regime, ac- cording to the US Embassy. ? The US Embassy also reports that Mobutu has kept a tight rein on labor activism through his control of the country's only labor union and has closed several university campuses at the first signs of student unrest. In addition, he has devoted substantial time, energy, and financial resources to the pervasive and highly personalized patronage system that we believe serves as the font of his power. Mobutu's recent track record also shows some gains in improving Zaire's security infrastructure. His con- cerns about Libyan hostility and subversion, the poor performance of units in eastern Zaire, and widespread discontent among enlisted men and junior officers with living conditions probably prompted the recent attention to his military and security services. Mobutu has made wholesale leadership changes, announced an increase from 70,000 to 100,000 men in the armed forces, and created several new security units. Also created an armed forces Inspector General Staff to reduce fraud and improve the living standards of enlisted personnel, and, with French assistance, plans to form a second parachute brigade. Based mostly on Embassy reporting, we believe Mobutu's concern with the threat of Libyan-sponsored terrorism and distrust of the existing National Gendarmerie- an ineffective, quasi-military police force-led him to create the Civil Guard, a national police force whose responsibilities will include border patrol, counterter- rorism, and counterespionage. Mobutu's efforts have not been limited to the domes- tic arena. In our judgment, Mobutu has been highly effective in regaining crucial Western support that had eroded in the early 1980s because of his intransi- gence on economic reform and repression of political opponents. According to diplomatic reporting, his visits over the past two years to the capitals of all his key foreign backers-Belgium, France, Israel, United States, and West Germany-have been highly suc- cessful, often setting the stage for new economic and military aid programs. He has, however, been less successful with his sometimes grandiose schemes to establish his nonaligned credentials and to gain a leadership role in the region. For example, his bid to form a new organization solely for black African states is going nowhere.F_~ Despite Mobutu's successes to date, Zaire faces a growing array of problems. Economics is at the heart of Mobutu's long-term difficulties, and, from a do- mestic standpoint, a failure to tackle the country's economic needs will only further complicate the nu- merous political and security challenges facing Mo- butu further down the road. Meeting IMF-sponsored program targets are Mobutu's most immediate con- cern. Over the longer haul, Mobutu faces additional problems-a growing debt burden, stagnant export revenues, insufficient foreign exchange for essential imports, limited foreign aid and investment, and political constraints. F_~ Keeping in Compliance In our view, Mobutu's most immediate economic challenge is keeping the budget in line with IMF performance criteria through March 1986 in order to complete successfully the one-year follow-on program. According to the US Embassy, Mobutu believes this will improve Kinshasa's negotiating position with the IMF and Western donors, and perhaps induce them to 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Figure 3 Zaire: Economic Indicatorsa of Exports Percent Non-OPEC LDC Zambia Non-OPEC Zimbabwe LDC Nigeria Nigeria Zimbabwe Kenya Zambia Zaire Non-OPEC LDC Kenya Zambia Zaire Nigeria Principal Export as a Share Inflation, 1984 of Total Exports, 1984 Percent Percent Nigeria Zambia Zaire Kenya Zimbabwe 1 22 Nigeria Zambia Zaire Zimbabwe Kenya Note: Data for non-OPEC LDCs are average figures. _a Estimates quoted for non-OPEC LDCs, Nigeria, Zambia, and Zimbabwe unless otherwise stated. b Annual average. Percent Non-OPEC LDC Nigeria Zaire Zambia Kenya Zimbabwe Non-OPEC LDCs (Million US $) (9.0) Africa-9 (22.2) Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret The austerity measures implemented in 1983 had a magnified impact on outlying regions such as Shaba, according to US Embassy reporting. Although copper and cobalt mined in Shaba generate the bulk of Zaire's foreign exchange, Kinshasa's dominance of the country's economic sector has prevented most of the wealth from returning to the province. Import liberalization has led to an influx of inexpensive basic consumer goods from Europe and South Africa that has replaced the higher priced locally manufac- tured products, further depressing private-sector ac- tivity. Moreover, unlike the inhabitants of Kinshasa, Shaban urban workers and rural farmers have not recovered from the massive devaluation in late 1983 that significantly reduced their purchasing power. According to the US Embassy, small businesses in Shaba's capital, Lubumbashi, have steadily gone bankrupt and larger businesses such as local produc- ers of beer, soap, and textiles are vroducing at less than 50 percent capacity. Unlike the economy of Kinshasa, Lubumbashi does not have a diversified private sector and, consequent- ly, has scarcely bengfited from the economic reforms of the past three years. GECAMINES, Zaire's huge state mining enterprise, and SNCZ, the country's state railroad system, dominate Shaba's economy, which depends on expenditures by and service to their We believe analysis of yearend 1985 data now under way will show that Zaire met-although just barely- December 1985 performance targets and thereby has positioned itself to begin negotiations for another program in 1986. In the event Kinshasa failed to pass the review, however, negotiations would be delayed and Mobutu's frustration with the IMF would proba- bly increase, leading him to be less flexible in negoti- ating a new IMF program, in our view. According to the US Embassy, Mobutu now believes that Zaire's continued sacrifice in 1985 obliges creditor nations to grant better terms in 1986, and he is likely to present a forceful case for more expansionary policies. He believes he has new leverage because of his good track workers. Although the elimination of many corrupt practices has improved the financial position of GECAMINES, the firm continues to encounter prob- lems in meeting production goals. Although farmers have fared well since the decontrol of prices for their corn, agricultural growth is threatened by several factors, including a severe shortage of credit needed by merchants to finance purchases of corn and competi- tion from smuggled subsidized Zambian corn. Farm- ers also suffer from chronic fuel shortages and a deteriorating road and rail network that impede their ability to get goods to market. The unsettled security situation in eastern Zaire has also damaged the commercial sector in Shaba Prov- ince. According to the US Embassy, there has been a virtual shutdown of economic activity in the Moba and Kalemie areas. In addition, persistent border problems with Zambia throughout 1984 impeded trade. over the past three years and what he views as the West's desire to use Zaire as an example for the rest of Africa. In the event that Mobutu's requests for increased Western support are not met, he probably will threaten to abandon the IMF program and publicly berate creditor nations, but will unenthusias- tically push ahead with economic reform and agree to another IMF program-recognizing the IMF and Western prescriptions as Zaire's best hope for long- term economic growth. As the painful aspects of austerity continue through 1986, however, Mobutu will be increasingly tempted to backslide or even abandon the program. Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret Growing Debt Burden Another major challenge facing Mobutu is servicing the $5 billion debt. For the past few years, financial statistics show that debt servicing is absorbing an increasing share of the country's scarce foreign ex- change. According to the US Embassy, debt repay- ments in 1985 will total close to 25 percent of export earnings and about 55 percent of the government's budget. By contrast, in 1982 the shares were only 16 percent and 10 percent, respectively. given current lender attitudes. a comprehensive multiyear rescheduling is unlikely, by 1990. Given the problems in meeting debt servicing require- ments, Zaire has turned to debt rescheduling. While this has reduced the burden in the short term, it has only delayed the problem and increased the overall size of the financial burden. We see little alternative to continued annual reschedulings of principal and interest payments. Without annual reschedulings, debt service ratios would range from 55 to 60 percent, contrasted with 25 to 30 percent with rescheduling. We calculate that annual reschedulings through the end of the decade at similar terms as in 1985 will add at least $1.5 billion in capitalized interest to total debt London Clubs increase substantially. Domestically, we believe the effect of debt service on the budget has been compounded in recent years by Kinshasa's moves to hold down spending and deficit financing in order to reduce inflation and stay in compliance with IMF performance targets. According to the US Embassy, debt service, salaries, and nondis- cretionary expenditures now represent 80 percent of total government spending, leaving only 20 percent of the budget for public investment and operational expenses'. Moreover, we believe that under current rescheduling practices and prevailing interest rates Zaire will pay an ever-increasing portion of export earnings to debt service in the next few years, as nonreschedulable debt payments to multilateral lend- ers increase slowly and payments under the Paris and Foreign Exchange Constraints If Zaire is to meet its longer run debt obligations and still have currency to fund development programs, a healthy export performance is critical. Unfortunately, world prices for major exports-copper, petroleum, diamonds, and cobalt-remain low, and most com- modity experts see little prospect for a turnaround any time soon. Exports will remain about the same in 1985 at $1.8 billion-significantly below IMF projec- tions of a 12-percent jump-according to preliminary Zairian and' IMF figures. Petroleum exports, largely responsible for the improved export picture in 1984, are likely to be about $100 million lower than expect- ed for 1985 because of persistent production problems and declining world prices. The US Embassy estimat- ed that low prices for diamonds, zinc, and coffee reduced expected export earnings in 1985 by another $35 million. Only copper and cobalt revenues met government goals.' The shortage of foreign exchange has already weak- ened growth prospects by slowing business activity. We agree with the US Embassy assessment that the poor export performance caused a loss of approxi- mately $55 million in the government's overstretched foreign currency budget in 1985-three-fifths of which would have been available to the liquidity- starved private sector. Domestic firms are having to reduce essential imports as limited foreign exchange is used by the government for debt service and other nondiscretionary expenditures, according to the US Embassy:' Moreover, the IMF balked at a govern- ment request last August to raise commercial credit ceilings, arguing that it would only lead to inflation- already on the rise again after a drop in 1984-while not alleviating either the shortage of funds for public ] A 1-cent-per-pound change in average annual copper prices represents approximately $5 million in Zairian export earnings, while a $1-per-pound change in cobalt prices represents approxi- mately $37 million in revenue. We estimate that copper prices will remain sluggish for at least the next two years, averaging 60 to 65 cents per pound, but cobalt will remain close to its current price of $11.70 per pound. 'Preliminary figures and our estimates point to an increase in imports of about 3 percent in 1985, well below the IMF projected 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Secret Table 2 Zaire: Scheduled Debt Service Payments, 1985-90 Short Term Table 3 Zaire: Debt Service Payments With Rescheduling, 1986-90 a a Using table 2 figures as a base, we assumed that Zaire would continue to obtain annual rescheduling of principal and interest. To take rescheduling into account, we made the following assumptions: all scheduled interest payments are capitalized; all scheduled short- term debt is repaid with a six-year maturity with a four-year grace period; all long-term principal is repaid as scheduled; capitalized interest is repaid with a 10-year maturity with a four-year grace period. These terms are similar to those contained in previous reschedulings, although greatly simplified for ease of anaylsis. Interest Payments Total Scheduled Debt Service Interest Payments Total Debt Service These numbers do not include payments on any new debt incurred after 1984, excluding capitalized interest that totals nearly $1.5 billion by 1990. Should any new borrowing occur, the debt service figures will understate the actual level of debt service for the 1985- 90 period. The results are not to be taken as definitive, but as a guide to the impact of future rescheduling on debt service pay- ments. Further information on the computation of debt service payments can be obtained from the author. On Previously Scheduled Capitalized Interest Long Term Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Secret Table 4 Zaire: Projected Growth of Import Capacity Under Alternative Scenarios a Plus gross borrowing 0.88 0.75 0.73 0.72 0.77 0.87 0.86 Plus other services balance -0.68 -0.82 -0.82 -0.82 -0.82 -0.82 -0.82 Less debt service b 0.65 0.44 0.42 0.41 0.46 0.56 0.55 Less change in foreign exchange reserves 0.16 0 Balance (import capacity) 1.16 1.12 1.16 1.26 1.38 1.50 1.61 Change in import capacity (percent over previous year) -3.4 3.6 8.6 9.5 8.7 7.3 Less change in foreign exchange reserves 0.16 0 Balance (import capacity) 1.16 1.12 1.15 1.21 1.29 1.39 1.48 Change in import capacity (percent over previous year) -3.4 2.7 5.2 6.6 7.8 6.5 a To assess the probable impact of projected exports, debt servicing, and new credit availability on import capacity and economic recovery, we derived a methodology that linked our expectations for export growth, our figures for debt service payments, our estimate of the services balance (excluding interest payments), an assumption that the level of new credit extended to Zaire remains constant at the 1985 level, and an assumption that foreign exchange reserves remain unchanged at this year's level. We then used these estimates of import capacity to assess the potential for economic growth. b Debt service figures include short-term payments. Unlike the baseline scenario that assumes 3-percent growth per year in the OECD countries, the recession scenario assumes an OECD recession. Since Zaire ships over 90 percent of its exports to the OECD, a drop in OECD real income growth, such as occurred in 1982-83, would reduce export gains, leaving Zaire with less foreign exchange to meet debt service payments and boost import growth. To quantify the impact of a recession in developed countries on Zaire's exports, we altered the baseline scenario so that OECD real GNP growth falls to 1.5 percent in 1986 and - I percent in 1987, recovering to 1.5 percent in 1988 and 3 percent per year thereafter. Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret according to the US Embassy. investment or the liquidity squeeze in the private sector. The shortage of foreign exchange is creating excess demand for hard currency and putting down- ward pressure on Zaire's currency, which in relation to the dollar depreciated by about 35 percent in 1985, corruption and economic mismanagement. Other potential sources of hard currency funds are also likely to be limited in the foreseeable future. Although international financial statistics show do- nors have responded to Kinshasa's reform efforts by providing increased bilateral aid over the past three years, we judge the prospects for massive aid increases unlikely, given Western budget constraints.' Even given present aid levels, the net flow of funds is negative. Indeed, according to World Bank statistics, in the past two years Kinshasa paid out approximately $440 million more to medium- and long-term credi- tors than it received in new loan funds. Further, reporting from international financial observers hold little hope that commercial banks or private investors will be willing to put much money into Zaire over the next several years. Despite an improved climate for foreign businesses-profits and dividends are being remitted for the first time since the mid-1970s- foreign investors remain deterred by the country's weak and declining infrastructure and history of Political Constraints Mobutu's style and political imperatives work against good economic decision making, in our view. Al- though IMF and World Bank programs have signifi- cantly improved fiscal management, government officials still siphon off public funds for personal gain. From Mobutu's standpoint, some graft is almost inevitable. Indeed, among the elite it constitutes the mainstay of his patronage system and among the workers it serves as an essential supplement to their meager salaries. At a more personal level, Mobutu's penchant for central- ized control-a style well documented in diplomatic in financing over the next three years to achieve real economic growth. Kinshasa claims to have acquired $860 million of this amount, leaving a financing deficit of $2.8 billion, which they hope reporting-probably will be an obstacle to moving the country toward more market-oriented poli6ies. A good example of Mobutu's preference for centralization, in our view, was the creation in March 1985 of SONATRAD. It is responsible for purchasing sup- plies for all state enterprises and, according to the US Embassy, may become one of the largest state enter- prises despite objections from the World dank, West- ern donors, and senior Zairian officials. World Bank officials, concerned that SONATRAD will increase inefficiency and provide additional opportunities for large-scale corruption, have delayed the disbursement of two large loans until Kinshasa reduces he role of SONATRAD in purchasing decisions an `adopts improved accounting procedures, according to the US Embassy. Although Mobutu is in firm control, his political skills are likely to be tested over the next several years. The regime's economic problems will, in our view, only compound continuing demands for a more open politi- cal system, ethnic tensions, expectations of better living standards, Libyan-backed rebel activity, and the need to improve military performance. Domestic Political Pressures While Mobutu has proved himself adept at maintain- ing his personal rule through Zaire's sole legal par- ty-the Popular Movement for the Revolution that he formed in 1967-we believe pressures for a more participatory system are growing. The US Embassy reports that, despite government intimidation, the illegal Union for Democratic and Social Progress (UDPS) continues to agitate for recognition as a Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret Mobutu has made clear his intolerance for competi- tion; in 1985 he jailed several UDPS leaders when, during reconciliation talks, they refused to drop their transportation fees, and late salary payments. Work- ers are not the only dissatisfied group. US Embassy reporting has pointed to other areas: insistence on recognition as a second party. Simmering ethnic tensions are another source of pressure. Based on the way Mobutu has manipulated tribal rivalries, we believe ethnic issues have factiona- lized the ruling elite and led to ethnic tensions throughout the party, government, and military. Ac- cording to US Embassy reporting, most key govern- ment and military positions are held by members of Mobutu's Ngbandi tribe from his home region of Equateur, and this almost certainly has fanned deep- seated jealousies among other groupings. Mobutu's placement of mulattoes-who are dependent on Mo- butu because they lack a tribal base-and non- Ngbandi Equateurians into prominent positions has created further problems. The US Embassy has also reported that competition in the inner circle between the mulattoes and black Equateurians is constant and often bitter. Although Mobutu exploits this strife to ensure his political control, these tensions contribute to mismanagement and poor performance throughout the system, and, in our opinion, are likely to make difficult a smooth transition when Mobutu passes from the scene. In dealing with the pressure for greater political participation and the fallout from ethnic divisions, Mobutu will also have to cope with the impact of austerity. We believe keeping the lid on discontent with the harsh austerity program will become increas- ingly difficult for Mobutu. In our view, resentment is particularly strong among public-sector employees, as expectations for higher wages and better health care-raised by Mobutu's speeches over the past year-go unmet. Labor union members are increas- ingly unhappy with declining living standards and with the passivity and corruption of government- controlled union leaders, Moreover, the US Embassy reports that workers in several state enterprises and banks have used work stoppages over the last several months to protest inadequate wages, rising school and ? Rising frustration among members of the ruling party's Central Committee and private business- men, who complain that the government is meeting IMF demands at the expense of wage increases, credit for businesses, and development plans. ? Cutbacks in education have provoked strikes at a number of universities in the last year, leading Mobutu to close several campuses and arrest some students and teachers. We suspect that such sentiment is probably spread throughout all of society. Libyan-Backed Dissidence While Mobutu is balancing internal forces, he also has to take into account an external threat. Even though the Zairian dissident movement is ethnically divided, disorganized, and militarily weak, F_ Libyan support is aimed at improving its 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Secret Table 5 Principal Zairian Dissident Groups Ethnic and Regional Power Base Front for the National Liberation of the Congo (FLNC) None, numerous factions Shaba Province (former Katangan gendarmes) Congolese National Move- ment, Lumumba Faction (MNC/L) Francois Lumumba Shaba Province Coalition of National Unity (CUN) President Lt. Gen. Mbumba (former President of FLNC) Composed of MNC/L and FLNC cadres Congolese Liberation Party (PLC) Antoine Kibingu Marundura (former FLNC Central Committee member) Bovira and Bafulero tribes of eastern Zaire Popular Revolutionary Party (PRP) Laurent Kabila Eastern Zaire 25X1 ing to the US Embassy, is based in the rugged The potential for Libyan-backed terrorism in mountains between Moba and Kalemie and in west- Kinshasa-particularly an attempt on Mobutu's ern Tanzania. life-is of growing concern among security officials, government. Various attacks against government eastern Zaire, and troops and economic targets appear to have been carried out by a 75- to 100-man group from the they are growing rapidly. Popular Revolutionary Party (PRP)-which, accord- eastern Zaire, long a hotbed of opposition to the the rebels are successfully recruiting in Libya is behind the recent increase in rebel activity in Nevertheless, Primary Base Membership a of Operation Angola and 4,000 to 6,000 northwestern Zambia Brussels and Congo 150 Tanzania Eastern Zaire and 50 to 100 Tanzania Eastern Zaire and 200 western Tanzania recently surrendered under Mobutu's amnesty pro- according to the US Embassy Mobutu believes that gram because of a lack of supplies and poor morale. The group's longer run staying power is uncertain, however. According to the US Embassy, the rebels are poorly trained and equipped, and the Zairian military claims that a number of PRP rebels 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 1,000 primarily based in Angola, USSR, Cuba FLNC grew out of the Katangan secession movement led by Moshe Tshombe in Angola (no military support the early 1960s. Katangan gendarmes formed the FLNC in 1975 and with since 1981) Angolan and Soviet support invaded the Shaba region in 1977 and 1978. Since 1978, however, the group has been inactive because of inadequate external support, ethnic divisions, leadership struggles, and UNITA's control of much of Angola's border with Zaire. In the past few years, FLNC cadres have been integrated into Angolan military units to fight UNITA. Libya (small amount of MNC/L was founded by Francis Lumumba, son of Patrice Lumumba in the funds, arms, and training) mid-1960s. Reportedly responsible for the bombs set off in Kinshasa in early 1984. Libya (small amount of Formed in mid-1984 when the Tanzania-based factions of the FLNC and the funds, arms, and training) MNC/L merged. Libyans reportedly forced a merger by threatening to withdraw Libya (small amount of funds and arms) aid to both groups. Although potentially the most capable Zairian dissident groups, it has yet to carry out a military operation. Group suffers from ethnic Formed in early 1984 when Antoine split from the Tanzania-based faction of the FLNC after disagreements with Mbumba. Probably Libya (small Formed in early 1960s and has long been active in antigovernment activity. Only amount of funds and group to operate inside Zaire in recent years. Probably responsible for recent rebel arms) attacks in eastern Zaire. according to the US Embassy. We believe Tripoli's efforts to expand its influence in neighboring states are partly aimed at establishing bases from which to launch operations against pro- Western regimes. Tanzania and Congo, in particular, have turned a blind eye in the past year to Libyan activity aimed at undermining Zaire and other moderate central African regimes. Although we have no evi- dence to indicate that Burundi supports Libyan sub- version, Qadhafi's visit last May, a recent delivery of Libyan military equipment, and promises of economic aid indicate that Tripoli is making a concerted effort to increase its leverage with Bujumbura. In our view, Zaire will only be more concerned with Libyan 25X1 25X1 25X1 25X1 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88TOO768ROO0100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret neighboring Sudan and Uganda. Constraints on the Military A rebel attack during 1984 on Moba, a small town in easter (have clearly demonstrated the incompetence of local mili- tary units and pointed out problems such as the shortage of military transport and poor logistics, communications, and intelligence support to the troops in the field. Units from Kinshasa and Lubum- bashi were needed in November 1984 to retake Moba from a rebel force we believe numbered fewer than 50, and, according to the US Embassy, military officers were forced to commandeer transport and food supplies from civilians to carry out the operation. In addition, civilian casualties are fairly high during combat operations, and government troops have ex- torted funds and supplies from the local population to supplement their meager military salaries. tional C-130s-one of which is Mobutu's private equipment. In addition, two C-130s and several other aircraft remain in Italy because of Zaire's inability to pay for repairs, leaving the military only two opera- has been unable to take u advantage o srae i an French training offers because of its inability to buy As it is, th eliminated ' f Zaire is to stay within IMF guidelines. At a national level, budgetary problems are only further complicating the situation for Mobutu. De- spite the need to upgrade military units outside the capital, we believe Mobutu's publicized plans to en- large the Army, create the Civil Guard, expand counterinsurgency training, and otherwise improve capabilities will have to be scaled back sharply or even military performance. Numerous other problems will also probably affect Moreover, we believe Mobutu will continue to ensure that the elite Presidential Special Brigade and other Kinshasa-based units receive a larger share of the military resources, leaving troops in the outlying regions reliant on corruption and harassment of the civilian population. While Mobutu is grappling with internal economic, political, and security difficulties, he also faces a number of delicate foreign policy challenges. In the international arena he is trying to further solidify Kinshasa's close relations with its key foreign backers, enhance his limited influence in regional affairs, and play a role in bringing about a solution to the conflict in Angola. Relations With Key Foreign Backers We believe Mobutu's top foreign policy priority is maintaining excellent relations with key foreign back- ers. Without Western support not only would Zaire's other foreign policy initiatives be greatly complicated but Mobutu's internal challenges-especially on the economic front-would also be greatly magnified. Among key West European backers: ? Belgium has been Zaire's largest and most reliable source of technical, budgetary, and security assis- tance since independence in 1960. Brussels provided about $90-100 million in economic and military aid-one-third of its foreign aid budget-and 120 military advisers in 1985, according to the US Embassy. ? France worked to improve bilateral ties last year, according to the US Embassy, providing about $40- 25X1 25X1 25X1 25X1 45 million and 109 military advisers, most of whom 25X1 command and support the 31st Airborne Brigade- a key Kinshasa-based unit. 25X1 has agree to begin training a 25X1 second airborne brigade next year and is laying groundwork for a pan-African armored warfare training program near Kinshasa. Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret 25X1 25X1 25X1 1985, Aside from European linkages, Mobutu considers himself a staunch friend of the United States, which has responded to calls for greater support by increas- ing economic aid from $29 million in 1983 to $56 million in 1985, and by backing Zaire in the IMF, World Bank, and Paris Club. In response to Kinsha- sa's fears of Libyan subversion, Washington increased military aid from $4 million in 1983 to $8 million in and is considering helping with the refurbishing of Kamina Air Base in central Shaba region. military equipment over the next 10 years. Mobutu also values his good relations with Israel. According to US Embassy reporting, his state visit to Tel Aviv last May solidified bilateral relations that were renewed in 1982, when Kinshasa became the first black African state to reestablish formal ties since the Middle East war of 1967. Israel provides important security assistance through its training and material support to the elite Presidential Special Brigade and the Shaba-based Kamanyola Division. More recently, Tel Aviv gave Kinshasa an $8 million grant in September for military equipment in return for a promise to buy $10 million worth of Israeli Regional Concerns While US Embassy reporting underscores Mobutu's pretentions to regional influence, we believe his ties to the West and Israel will continue to isolate him from affairs. proposal for an organization of black African states. Similarly, the Frontline States continue to reject his attempts to get more involved in southern African This is not to say Mobutu will not find ways to improve his regional standing. Indeed, the US Embas- sy reports he is attempting to find ways of directly and indirectly supporting moderate states in the region against countries that harbor Libyan-supported dissi- that are subject to Libyan subversion. Kinshasa, for 25X1 example, is pressuring neighboring states to limit Libya's presence and threatening military retaliation 25X1 In our judgment, however, Zaire's lack of resources severely limits Mobutu's ability to assist or influence other moderate regimes in the region, except at the margins. 25X1 25X1 The 10-year-old conflict in Angola between the MPLA regime and UNITA insurgents has long been Mobutu's principal regional security concern, accord- ing to the US Embassy, and he persists in promoting himself as an "honest broker" in seeking a solution. Despite longstanding distrust between the two capi- tals, Mobutu has maintained a dialogue with Luanda; he met with Angolan President dos Santos last Febru- 25X1 ary in Kinshasa where they concluded several eco- nomic and security agreements. at the same time, however, Mo- butu meets regularly with UNITA leader Savimbi and-as Luanda and Frontline leaders suspect-he to UNITA through Zaire. We suspect Mobutu's longstanding fear of Commu- nism-he openly refers to the "red belt" around Zaire-has intensified in recent months because of growing Soviet and Cuban support to Luanda. Cer- tainly, Mobutu fears a UNITA defeat that would leave Zaire prey to a Soviet-backed regime with a Cuban-based army. Because of his growing concern, we believe Mobutu would welcome Western assis- tance to UNITA and be willing again to provide airfields, personnel, and intelligence support. In our judgment, he sees Western backing for UNITA as substantively and symbolically important in blunting Communist inroads in the area, and also as an opportunity to gain additional economic and military aid for Zaire. Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Secret The Angolan-based Front for the Liberation of Congo (FLNCJ, at one time Zaire's principal opposition group, has been inactive since it invaded Shaba Province in 1978, Although there is no hard figure, we estimate from fragmentary information that there are 4,000 to 6,000 FLNC members spread throughout Angola-at least 1,000 of whom are armed and have fought UNITA unenthusiastically in recent years in return for being allowed to remain in Angola.F___-] 25X1 The FLNC's military capabilities have significantly harsh living conditions in Angola and the return to Zaire of former Prime Minister Nguza-a Shaban who claims substantial support within the FLNC- has led a number of senior FLNC military command- ers and several hundred of their supporters to consid- er returning to Zaire under Mobutu's amnesty pro- gram. directly supporting Zairian dissidents. Mobutu's willingness to support Savimbi more openly, however, will be constrained by his fear of Angolan retaliation and concern that he will become more isolated in the region. According to the US Embassy, Mobutu is worried that Luanda, possibly with Soviet and Cuban backing, may decide to renew support to Zairian dissidents in Angola, which could lead to a rebel threat to western Shaba Province (see inset). In addition, he realizes that closer association with Sa- vimbi would tie him to South Africa in the eyes of many black Africans, and could lead some neighbor- ing states like Congo, Burundi, or Tanzania to begin Although we expect Mobutu's political authority to remain intact over the next two years at least, we see Nevertheless, the FLNC remains a potential threat to Mobutu, particularly if Luanda renews its support in an effort to press Mobutu to end his aid to UNITA. Over 1,000 FLNC members have military experience, and, in our view, the poor economic situation in Shaba provides fertile ground for recruiting young Zairians. In our judgment, Luanda is likely to have difficulties informing a viable military force from the disparate factions spread throughout Angola because of ethnic divisions and the lack of a unifying leader. Moreover, Luanda would have to provide significant material support and relocate the dissidents to camps near the Zairian border before they could begin to conduct cross-border activity. In our view, however, Mobutu would be hard pressed without outside assis- tance to cope with renewed significant cross-border activity from Angola, particularly if rebels in the east remain active. the potential for other possible outcomes. There is always the risk Mobutu could pass from the scene unexpectedly. Alternatively, mounting economic problems and public frustration coupled with serious internal missteps could lead to urban unrest that becomes destabilizing to the regime. If Mobutu over- reacted in suppressing discontent, he would probably speed erosion of his position. In the event the military begins to lose confidence in Mobutu, or Libyan- sponsored dissident attacks affect major urban areas, a military coup or assassination will become increas- ingly likely. Mobutu's Death Mobutu's death would greatly increase the potential for serious unrest. In the unlikely event that medical 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 problems force Mobutu-now in good health, accord- ing to US Embassy reporting-to relinquish power, or, if he is assassinated, we would expect intense political maneuvering. Mobutu's highly personalistic rule has precluded the development of political insti- tutions, the grooming of a successor, or legal proce- dures that would facilitate smooth succession.' More- over, Mobutu's exploitation of rivalries among senior military officers and government leaders has created divisions among the ruling elite that will make the consolidation of power in the post-Mobutu era diffi- cult. A protracted leadership struggle, particularly if combined with urban unrest, rebellion in outlying provinces, or foreign-inspired rebel attacks probably would convince the military to step in. Kinshasa- based commanders, especially Presidential Guard leader Nzimbi, are best placed to lead a coup. In our judgment, however, the military lacks the expertise to govern on its own and would almost certainly bring in civilians to run most ministries and key agencies. wildcat strikes and labor demonstrations probably would act initially as a catalyst to unrest, but we would expect students, small businessmen, and the urban unemployed to participate as well. Longstand- ing ethnic tensions would only add fuel to the fire. If the violence spread from Kinshasa to other urban areas such as Lubumbashi or Kisangani, we believe it would be difficult for the military to control. More- over, if the military were called on to quell public demonstrations, junior officers and enlisted men- also suffering under austerity-could begin coup plot- ting, while senior officers would almost certainly question Mobutu's policies. Should Mobutu respond to military discontent by becoming paranoid about his personal security-as we believe he might be prone to do-he might arrest popular senior officers, thus We believe a relatively smooth succession would occur if civilian and military leaders from Mobutu's Equa- teur region could be united to protect their interests and quickly agreed on a presidential candidate. We do not believe that Mobutu's son Niwya has adequate support among the Equateurian elite to succeed his father. In our view, the new leader probably would be a compromise candidate without the political skills necessary to consolidate control, leading to a period of political uncertainty until a new strongman-proba- bly from within the military-emerges. F_~ setting the stage for a military coup. If social conditions began to spiral downward we would expect Mobutu to abandon the IMF program, in the belief that the short-term political and financial gains would take priority over the longer term eco- nomic consequences, even though this would risk 25X1 scaring off foreign financial support. At the same time, the UDPS, in our view, would take advantage of the unsettled situation to publicly challenge Mobutu to move toward a more democratic political system, while exploiting public frustration to expand its base of support. The situation would only be complicated if Libyan-backed dissidents tried to exploit the situation by launching attacks in eastern Zaire or terrorist attacks in Kinshasa, or if Angola rearmed the FLNC and encouraged the rebels to conduct cross-border Military Coup In our view, continued austerity-particularly limited wage increases and little public investment in health care and schools-in the face of rising inflation could set the stage for open unrest among various domestic interest groups who have quietly accepted the past three years of austerity. This, in turn, could spark the military to seize control. Under such a scenario, ' Zaire's Constitution specifies that the 80-man central committee of Zaire's sole political party is to assume collective leadership exercised through the committee's septuagenarian dean, Deri- koye-a tribal chief from Haut Zaire region who has little political power. The committee must nominate a presidential candidate and schedule popular elections within 30 to 60 days. F1 raids into western Zaire. If the senior officer corps, faced with such a deterio- rating situation, overcame the divisions Mobutu has fostered and seized control, it would confront the same set of problems facing any successor regime. Although another military strongman might quickly emerge, we believe it more likely that a coalition of civilian and military leaders would be formed. In our view, given the ethnic and ideological makeup of key military and civilian leaders at this time, such a coalition probably would be dominated by Equateur- ians and would look to the West for support. Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Still less likely, but possible in our view, would be a power grab by junior officers or enlisted men able to win broad support among their colleagues in key units like the Presidential Special Brigade and the 31st Zaire, is likely to seek US support for a 2- to 3-year moratorium on principal payments and a multiyear rescheduling of interest payments Airborne Brigade. there has long been considerable resentment among lower ranking personnel over low pay, chronic shortages of food and other supplies, Mobutu's tribal- regional favoritism, and the corruption that has en- riched many senior officers. US officials have little access to junior officers or enlisted men, and we therefore are not sure whether radical elements are influential in these quarters. in central Africa. Because his regime is viewed throughout the region as a most consistent and staunch African ally of Wash- ington, we believe Mobutu's fortunes will serve as a gauge of the value of close association with the United States. Diplomatic reporting suggests that Kinshasa's economic reform experiment is being closely scruti- nized by the rest of Africa, and, in our view, if the program results in putting Zaire on a relatively better economic growth path, other countries will be encour- aged to emulate it. We believe Zaire's regional impor- tance also has the potential to grow, at least at the margins, because of Kinshasa's willingness to play an increasingly active role in obstructing Libyan inroads Keeping Mobutu on the hard road to success, howev- er, will be increasingly difficult as the President grows more frustrated with the slow pace of recovery, unmet expectations for higher levels of Western aid and investment, less-than-generous debt reschedulings, He probably views as unfair the fact that the net flow of funds from Washington to Kinshasa will be near zero for 1985 and probably negative in 1986 because Zairian debt repayments are growing faster than new US aid disbursements. Mo- butu, in an effort to reduce the flow of funds out of Other sore points are likely to distract him from hewing to the austerity program. He resents the unwillingness of US private investors and commercial banks to put new money into Zaire. Human rights abuses in Zaire, US policy on Angola, and trade issues also are potential problems. According to the US Embassy, Mobutu vigorously protested US plans to sell cobalt from its strategic stockpile, claiming this over the low levels of military aid, given the-negative effect of budget austerity on the armed forces and what they see as a significant increase in the Libyan threat. In the now unlikely event that the rebels were able to launch attacks that threatened major towns or vital mining enclaves in the Shaba region, we believe Mobutu would request US logistic assistance to help move elite troops and equipment from Kinshasa. Mobutu would also call on France and Belgium for support, and we believe both Paris and Brussels would again send troops as they did in 1977 and 1978 if the regime's stability were threatened by foreign-backed rebels We see only a slight chance that Mobutu's disappoint- ment with the level of US generosity would alter his generally unfriendly relations with the Soviet Union. He remains a staunch anti-Communist and deeply distrustful of Moscow's motives in Africa. Mobutu, however, could come to think a gesture toward the East would gain him leverage with Washington, and make a move-such as reopening the Aeroflot office in Kinshasa or agreeing to a development project- that would provide Moscow opportunities it now lacks in Zaire. If Mobutu died or were ousted, we believe Western interests would be protected if a successor emerged 2`25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 Declassified in Part - Sanitized Copy Approved for Release 2011/12/28: CIA-RDP88T00768R000100030001-2 from the ruling party or military hierarchy. Countries such as Libya, Angola, or the Soviet Union, however, might try to exploit such a vulnerable transition period to either increase subversion or make a bid for influence. A prolonged succession crisis would, of course, raise the possibility for a radical leader to emerge as a new strongman, although even in this case we believe economic necessity would work to Western advantage. A resurgence of intertribal warfare-reminiscent of the first few years after Zaire's independence in 1960-is also possible under almost any regime in the post-Mobutu period. Various groups may look upon Mobutu's departure as an opportunity to settle old scores. Nevertheless, we believe that there is a greater sense of national identity today and that most Zair- ians want no repetition of the anarchy and bloodshed of the early 1960s. In view of these conflicting factors, the ability of a post-Mobutu regime to minimize violence and instability may depend on the extent to which it is seen by the populace as firm and decisive, representative of the main tribal groupings, and genu- inely attempting to address economic problems. In our view, a key factor in a successor regime's ability to consolidate control would be the degree to which Western countries-particularly Belgium, France, and the United States-demonstrated economic, po- litical, and military backing. 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