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ZAIRE: INCOHERENCE AND DECAY IN AN AUTOCRACY (Sanitized)

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CREST [1]
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General CIA Records [2]
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CIA-RDP80T00942A000800050001-1
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RIPPUB
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S
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18
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December 12, 2016
Document Release Date: 
March 5, 2002
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1
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Publication Date: 
March 1, 1979
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REPORT
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25X1 ,i , Promt iF a Release 2002/05/07 : CIA-RDP80T00942A000800050 Assessnnent i 'eAlter Secret RP 79-10144 March /979 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050QQ -1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A00SQ800050001-1 Na innal Secret Foreign Assessment Center Zaire: Incoherence and Decay in an Autocracy An Intelligence Assessment Research for this report was completed on 9 March 1979. 1 -1 come and should be directed to The authors of this paper are I I Africa Division, Office of Regional and Analysis. Comments and queries are wel- This paper was coordinated with the Office of Eco- nomic Research, the Office of Strategic Research, and the Directorate of Operations. Approved For Release 2002/05/07 : CIA-RDP80T00942A00 6 *R 01-1 25X1 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A00080%0e5e$e(~01-1 25X1 Zaire: Incoherence and Decay in an Autocracy President Mobutu's popularity has slipped badly over the past two years because of numerous and worsening economic and social problems. Food shortages, infla- tion, deteriorating services, and an ineffective govern- ment plague the Zairian population. Organized opposition to Mobutu inside Zaire is nearly nonexistent. The European-based opposition move- ments are divided and weak. The chief danger to the Mobutu government would probably come in the form of spontaneous uprisings in such locales as Kinshasa or Shaba Region and or another invasion by foreign- based dissidents. The President has initiated some reforms but will go only so far; he is unlikely to uproot the corruption and ethnic discrimination that has worked so well for him in the past. The problems facing Zairian society also afflict the military. The Army is both the base of Mobutu's rule and his chief potential threat. Key military leaders apparently are loyal, but the Army is incapable of protecting the country's territo- rial integrity without the assistance of foreign forces. The Army's loyalty when faced with a serious external threat or large-scale internal disorders would be questionable. Mobutu has improved relations with Zaire's most important neighbors, but mistrust probably remains. Zairian dissidents in Angola and Zambia will pose an even greater threat once the Inter-African Force departs in mid-1979. The Zairian economy-the main source of Mobutu's difficulties-will remain in deep trouble for the foreseeable future. Mobutu has made some significant economic reforms, but corruption, inflation, and a huge budgetary deficit remain serious problems. The prospects for stability in Zaire are dim-with or without Mobutu. Without continued external eco- nomic and military support, the President's rule would deteriorate even more rapidly. If his position continues to weaken, Mobutu is likely to lash out at the United States and other Western supporters; he also is likely to curtail reforms. There are no readily identifiable potential successors to Mobutu, and a change in government in Zaire would probably be accompanied by a period of internal disorder. The succeeding regime, however, would probably continue to look to the country's traditional backers as its primary allies. 25X1 25X1 25X1 25X1 iii Secret Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 av Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800V~I Zaire: Incoherence and Decay in an Autocracy One comes across nothing but extreme misery, infamy, and contempt, for there is no observance either of.. . laws or military traditions, but all is besmirched... . And so much the more are these vices detestable in those who sit on the judgment seat, prescribing rules for others and expecting from them admiration... -Machiavelli Despite the manner in which President Mobutu seized power 14 years ago, his main source of strength over the years has been his claim to legitimacy as the country's true founder. Mobutu's authority has been largely based on his historic role in ending most of Zaire's ethnic and regional strife and bringing about a modicum of unity to the country; his tight rein on the government and creation of Zaire's single party; his personal control of the Army; and his general accept- ance throughout most of the country and inter- nationally. Mobutu's position as undisputed leader reached its zenith in the early 1970s but began gradually to slip in 1974-75. This erosion has acceler- ated over the last two years to the point where he is in danger of losing effective control because of numerous economic, political, and social problems that he appears unable to resolve.' While Mobutu is blamed for many of the country's difficulties, he is grudgingly viewed as the only leader capable of holding Zaire together. Many of the country's problems were festering before Mobutu came to power, but he has exploited them to suit his needs and perpetuate his rule instead of seeking to resolve them. Although the Zairian President can be credited with bringing the country out of the morass that characterized the early postindependence years, he has done little to promote economic development and political and social integration. Mobutu's attempts to mold a personality cult and construct even a fragile national unity have foundered. Corruption and ethnicity have been the most salient features of his This paper complements "Zaire: Healing Shaba's Wounds," (RP 79-10033C, January 1979), an Intelligence Assessment that deals almost exclusively with the threat to Mobutu from Zaire's Shaba Region-the country's most important and most troublesome region. I rule. Now that Zaire has fallen on hard times economically, the years of neglect, rampant corrup- tion, and tribal politics may prove to be the crafty President's undoing.' "Mobutuism"-a term used by the President to describe Zaire's official philosophy- has contributed little to the vast majority of Zaire's 25 million inhabitants. I 25X1 Social Disintegration And Regional Isolation Dissatisfaction with Mobutu is growing throughout Zaire, and he apparently is unable to reverse this trend. The downward spiral in the Zairians' quality of life has exacerbated the smoldering ill will toward the central government. The President's inability to deal effec- tively with the worsening economic problems forms the basis of the popular discontent. Ethnic divisions remain a serious social problem, but because of the severity of the country's economic hardships, class cleavages also are becoming more apparent. I 25X1 Although the country remains generally calm, the current nationwide crisis represents the nadir of Mobutu's 14-year rule. In the capital and in other regions shortages of basic food staples are common. Even when available, they are extremely expensive. Hunger, malnutrition, and disease are widespread. In Bas Zaire, sometimes referred to as the breadbasket of the country, drought has resulted in serious crop losses. Deliveries of foreign food assistance will temporarily alleviate some of the shortages, at least in Kinshasa, but the basic problem will remain. Rampant inflation coupled with the recent devaluations of the Zairian currency add to the hardship. Expatriate residents in 'In some measure, Mobutu is a victim of his own policies. For example, the Zairian Army probably has interpreted the President's discriminatory actions and harsh treatment toward Shaba as giving, the Army freedom to commit depredations against Shaban civilians. Even if Mobutu wanted the Army to change its exploitative behavior, as in the case of returning Shahan refugees, he is hard pressed to alter the behavior of his troops in the field. In addition, the fact that the Zairian troops often are neither paid nor fed-largely as a result of government corruption and inefficiency-means that the Army has little choice but to exploit the local population in order 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 MME ,?hutu meeting last year with ?'-,-neh President Giscard in Paris. ,tire and other longtime observers believe that ~:anditions are at an all-time low and are possibly even 25X1 pe for revolt. Fne central government's presence in Zaire's diverse -ueions, tenuous at best since independence, has deteriorated still further in recent years. Several of /lire's regions are so physically and psychologically __cparated from Kinshasa that they are part of the country in name only. Deteriorating roads, shortages x fuel, and limited contact with the capital contribute m the general isolation and social malaise. Kivu has ,ccn particularly hard hit. Roads between eastern and western Kivu have been impassable for years. In addition, all available food is flown to the capital from k vu and other outlying regions. Instead of looking to Kinshasa and the central government for assistance and relief, the capital regarded as an exploiter, and inhabitants of Kivu ant other rural areas see Kinshasa as largely responsible C sr their problems. The US Consul in Kivu reports that in some rural areas the money economy has disappeared and the population has reverted to a preca!nnial lifestyle. Zaire's local and regior,_il governments are largely ineffective. Mobutu's p-omise in July 1977 to decen- tralize the government nd grant significant powers to regional governors and egional economic commissions has brought little real c range. Many regional officials are corrupt and income tent and often are outsiders who may neither speak he local language nor have an interest in local problenis. Personal and tribal connec- tions prevail over comps fence and professionalism. Indicative of Mobutu's ick of concern with regional Secret 2 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A00080005It1 problems-his home region of Equateur excepted-is the fact that the President's visit to Kivu last October was his first in nearly two years. Several Zairian regions continue to suffer because of Mobutu's dis- criminatory practices. The government's highly touted "Mobutu Plan"-an economic recovery scheme announced in 1977-has thus far had little impact. Despite Mobutu's exhorta- tions against corruption, military indiscipline, and economic exploitation, these problems remain. Should the Mobutu Plan finally get off the ground, Kinshasa's traditional neglect of the interior will probably con- tinue. Even with increases in foreign assistance and rising prices for Zairian mineral exports, it is unlikely that Mobutu will expand his priorities to include sig- nificantly increased expenditures for the interior. While the pervasive erosion of economic and social conditions throughout Zaire has led to widespread grumbling, discontent within the country is largely unfocused. Anti-Mobutu dissident activity is unorga- nized and based mainly in Europe. The population remains docile, more demoralized than rebellious. In a few areas of the country-particularly Mobutu's home region of Equateur-the population may even be reasonably content. The fact that most Zairians do not expect much from Kinshasa probably works in Mobutu's favor. I Nevertheless, Kinshasa, with its 2.5 million inhabi- tants, and Shaba, because of its separatist tradition, are potential flash points from which a local disturb- ance could spread and pose a serious threat to Mobutu. Upheavals in Shaba would also be significant because the region's mineral wealth is an important national resource. Mobutu is aware that the level of popular discontent in both areas is high, and he will move quickly to stamp out any unrest that could be contagious. His haste last month to meet with demon- strating university students protesting poor living conditions at the national university in Kinshasa is an indication of the President's concern that public displays of unrest not get out of hand. The disturbances in Kinshasa also spread to the Lubumbashi campus, where the authorities moved quickly to respond to students' grievances. Mobutu's awareness of the public mood is also reflected in his decision last month not to allow the Popular Revolutionary Movement (MPR), Zaire's sole political party, to deduct party dues from worker salaries. In Shaba, the presence of the Inter- 25X1 African Force works in Mobutu's favor, but if the force leaves as scheduled in midyear, his control of this eco- nomically vital area may again be severely tested. Tensions in Kinshasa, Shaba, and Kivu Regions have also been heightened because of renewed cross-border threats from dissidents and from anti-Mobutu insurgents led by European mercenaries. Political Reforms Unlikely Basically, "Mobutuism" is a classic example of politi- cal, social, and economic exploitation. The President's authoritarian philosophy of l'etat c'est moi has re- sulted in his ruling the country through a pervasive system of patronage, graft and corruption, and rewards and punishments. Indeed, much of the President's power and the allegiance given to him are direct results of his personal control of rewards and patronage. In times of prosperity-when resources were plentiful- the system probably worked well enough to satisfy the most important individuals and groups in the country. In times of protracted economic hardship and shrink- ing resources, however, the strains created by this system are such that many Zairians are hard pressed to survive. Mobutu will continue to pay lipservice to stamping out corruption and will periodically purge corrupt individuals, such as the State Commissioner for Agriculture who was fired last December. The President knows, however, that limiting the opportuni- ties for corruption by relatives, cronies, and other influential military and civilian supporters, will lessen their loyalty to him. 25X1 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 cret Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 au wing the personality uit in Lubumbashi. l"he Military: Reflections Of the General Malaise iithough Mobutu's loss of prestige and influence is in .-part related to Zaire's chronic economic difficulties, nother major factor is the inability of his ragtag army - sU protect the country's territorial integrity and main 1:iin effective internal security. The Zairian Army f,AZ) is more a menace to the country's civilian Population than a threat to any outside force. In effect, the Zairian Government is a military regime with a civilian facade. Mobutu came to power as an :army leader, and as the Supreme Commander of the Zairian armed forces he remains the ranking military figure in the country. He occasionally appears in Military dress, and in times of crisis such as the Shaba combat uniform. The \rmy is both the basis of Mobutu's power and ' ae chief threat to his rule. Ethnic and regional . aareness and the resultant tensions are at least prevalent in the Zairian military as they are it society at large. Most members of the FAZ, like their civilian counterparts, tend to think of themselves i' tribal, rather than national terms. The FAZ, likr: /airian society, has failed to achieve social integr7ion. The I-AZ is also bese with problems of recruitment, leadership, and organ zation. Low morale and indisci- pline are endemic, largely because of the failure of the government to provic . basic necessities. Civilians are 25X1 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Secret Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 o icers from Mobutu's home region of Equateur and those from Haut-Zaire. Mobutu seems to be aware of the problem and has promised to break up the clique of officers from Equateur who are attempting to under- mine Babia's position. The President apparently has complete confidence in his principal officer, despite attempts by the Equateur group to impugn his loyalty. them the authority to do so. Babia reportedly is particularly concerned over the extent of ethnic 25X1X vering among senior Army officers. the most serious friction occurs between 25X1 X 25X1 Mobutu with Zairian and Moroccan troops defending Shaba. Babia and General Singa, the commissioner in charge of Shaba Region and a longtime Mobutu loyalist, undoubtedly would play important roles in the event of a change in government. They would probably be challenged, however, by other senior officers. It is likely that a change in government or even a general breakdown of law and order in Zaire might be accompanied by fighting between various military units, possibly along ethnic lines. At present, the Zairian military appears loyal to Mobutu, and there are no signs that senior members of the Army are sometimes impressed into service; desertions are com- mon. Corruption at the upper levels, often involving diversions of supplies and salaries intended for the troops, has been widespread. Last November, the FAZ put together a "special guard" to protect a shipment of United Nations trucks being sent to Shaba to be used for refugee relief. Despite the "special guard," or perhaps because of it, the trucks were stripped en route. Some senior officers like General Babia, chief of the Zairian General Staff, would probably like to imple- ment reforms, but it is unlikely that they will be able to resolve the most serious issues, even if Mobutu gave plotting against the regime. General Babia, Chief of the General Staff. 25X1 I? 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 1 j his growing awareness of the possibility of civilian unrest because of economic hardships, Mobutu re- cently has taken some further steps to ensure the loyalty of the FAZ-especially the forces in the Kinshasa area. Last December he reinstituted the ,'(: mmissary program to make more and cheaper foodstuffs available to the military and their families. 1'he President's decision to allow the first promotions ,ince 1977 is also related to bolstering morale r: response to reports last month of a threat by Zairian issidents to move against Mobutu, the FAZ remains )rl nationwide alert. The Zairian Government and Wiilitary probably still believe that some kind of dissident activity may occur during the next few weeks. I'lie gendarmerie successfully contained short-lived 3&.udent disorders on the university campus in Kinshasa .ust month, but the FAZ will have to be careful that an =crzealous reaction to a disturbance does not exacer- hate the problem. With the possible exception of those units specifically assigned to maintain order in the event of civil unrest in the Kinshasa area, however, euost of the poorly trained and ill-disciplined Zairian _mlitary units might not be able-or willing-to >tntain a large-scale disturbance in one of Zaire's valor urban areas. Indeed, the loyalty of troops whose ;Might is as bad as that of the civilian population is doubtful. In a case two years ago, the same gendar- rrrerie sided with striking teachers. In the event of armed clashes with organized anti- Mobutu military forces, the loyalty of the FAZ would he even more suspect. If the force was sufficient to pose a challenge to the FAZ or to seize power, many Zairian troops would probably either desert or join forces with the opposition. Consecutive defeats at the hands of the Shaban invaders, purges by the President, and forced retirements have further undermined morale. General Babia is reported to fear that southern tribal members of the military and other disaffected elements in the Army would support a move against the government. I le is also concerned that those troops who were forcibly retired might become sympathetic to the dissident cause. Mobutu has done litt to reduce ethnic strains in the military, and not sure isingly, has exploited them. He has assigned officers n the basis of ethnicity and has excluded or limited th -, numbers of persons from Shaba, Bandundu, art East and West Kasai in certain military units. The no irepresentative nature of the Army is largely respcnsible for the tensions between the military and civili,.ns in Shaba and other areas. Mobutu believes, how ever, that the lack of Baluba- speaking troops in the 3" Ith Airborne Battalion was responsible for this un is good performance during the fighting in Shaba last May. The temporary deploy rnent of Belgian commandos to Kitona, a town some .1)0 kilometers west of Kinshasa, will bolster the morah of expatriates in the-Kinshasa area and may boost tHc confidence of the Zairian forces in the region. Ir the long run, however, the commandos' presence will be interpreted as con- firmation of the shaki less of the Mobutu government and the ineffectivenes of his own forces. Even though the commandos plant withdraw soon, critics of the regime can argue witl some justification that Mobutu is being propped up b? military forces from some 10 countries. These foreir~,n forces are performing a variety of training anr other military assistance functions. Despite the array of foreign military in- volvement in Zaire, th;, FAZ is not likely to evolve into a capable professiona ' force in the foreseeable future, and Mobutu may not vish the Army to develop in this way. Consequently, jr the short term any external threat to the country, stability will require a foreign military presence to n aintain order and give the FAZ some credibility. The President has rec; ntly begun to implement re- forms in the bloated n ilitary bureaucracy. Forced retirements last year r -duced the military by some 8,000. Steps have recently been taken to reduce corruption in the disbs.rsing of military pay. Mobutu and his senior comma. Iders apparently have been able to limit the Army's mi;;treatment of refugees returning to Shaba. In addition? the Belgians have assumed control of some of the ogistic support for certain FAZ units. Much remains t > be done. Some issues, like those related to ethnic discr mination, probably will remain Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A00080005N-1 untouched. Other problems, such as the continued shortages of food supplies, are related to the sorry state of the economy and therefore beyond Mobutu's immediate ability to alter. A Little Liberalism, But ... In an attempt to lessen domestic tensions and respond to Western criticism, Mobutu has taken a few steps to bring about economic and political reforms, but there are clear limits to how far he will go. His brand of reform apparently allows toleration of limited open discussion of issues, but not criticism of his govern- ment. The MPR is the only political party in Zaire, and there is no room for opposition within the Party or government. Over the last year, however, Zaire's Legislative Council has become increasingly vocal in its criticism of the regime. According to the Constitu- tion adopted last year, the Legislative Council has jurisdiction over a broad range of issues, although it remains subordinate to the President. Several mem- bers of the Council have provoked confrontations with the President to test his commitment to change. In early 1978 the Council delayed approval of Mobutu's revised constitution. Some critics have since used the legislative forum to direct veiled attacks against the regime by questioning the President's authority and impugning his integrity on several important matters ranging from ethnic discrimination in the military to misappropriations of budgetary receipts. Last November, the Council held the first public interpellations of members of the Mobutu government. Although the questioning of the Prime Minister and other ministers temporarily boosted the President's image by appearing to show him responsive to the Council, the sessions also demonstrated that many of the country's problems are directly attributable to Mobutu. At a subsequent meeting between Mobutu and 50 members of the Council, the President warned the group that "Zairian democracy" would not allow them to carry their criticism of the regime much further. Late last month, Mobutu sent the Council a letter again reminding the members that the President is above criticism.) Mobutu is well aware of the dangers inherent in political liberalization and may take additional steps to intimidate the most vocal members of the Council. He is aware, however, that his reform efforts are being monitored by the West-particularly the United States-and that harsh measures against his critics on the Council would be noticed. Some members of the Council probably are encouraged by Western pressure on Mobutu to liberalize his regime. Other Zairians who have experienced Mobutu's disfavor probably believe that the President would be significantly more repressive were it not for US pressure. To his credit, Mobutu has released some political prisoners and allowed international relief agencies wide latitude in assisting returning refugees and inspecting prisons. Mobutu probably will continue to pay lipservice to reform, but will stress his concern that it take place "in a Zairian context," and will react harshly to further pressure from his Western supporters. The President no doubt believes he has gone about as far as can be A breakdown of stability in Zaire could have serious repercussions in several neighboring countries. In teams of security, Angola and Zambia are Zaire's most important neighbors. Although relations with these countries have improved significantly over the last several months, Zaire will remain vulnerable for the foreseeable future to attacks by anti-Mobutu dissidents residing in Angola and Zambia. The possi- bility of rebel incursions into Zaire's Shaba Region will increase after the departure of the Inter-African Force later this year. Should this happen, it would create unwanted security problems for both Lusaka and Luanda on their borders with Zaire. Rwanda and Burundi are also concerned with the security situation in eastern Zaire. sympathizers. A new attack on Shaba and a breakdown of law and order there could trigger disorder in Kinshasa. Serious disturbances in the capital or uncontrolled student disturbances in Lubumbashi could also provide an opportunity for Zairian dissidents to initiate Shaba III or provoke disorder in other regions, such as Kivu, where the dissidents might obtain support from local 25X1 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Despite Mobutu's recent concern that mercenaries intended to lead an uprising of dissidents belonging to the Action Movement for the Resurrection ofthe Congo, we continue to believe that the Front for the National Liberation of the Congo (FNLC) based in Angola comprises the most serious potential threat to Mobutu. The continued improvement of Angolan- /airian relations over the next few months should help contain the FNLC threat. Despite the mgeri g mistrust a ween \'lobutu and Neto and the antipathy between the tairian President and Zambian President Kaunda, the three countries apparently are committed to improving operation on border security. In addition to the presence of anti-Mobutu dissidents in Angola and Cambia, the Zairian Government believes that rebels remain in Burundi, Rwanda, and Tanzania. D l.espite reasonably good relations with several of his ;icighbors, Mobutu has few real friends in Africa. With the exception of Emperor Bokassa of Central African Empire, and possibly Rwanda's President Ilabyarimana, Mobutu is almost universally disliked and mistrusted, and could expect little in the way of .vmpathy or new assistance from other African leaders if he faced serious internal problems or external lh reats International Aspects Of the Zairian Economy /wire's economy will remain in deep trouble with almost no prospects for meaningful improvement any time soon. Foreign exchange remains tight, as one- third of the country's export receipts are diverted to >ervice a foreign debt that exceeds $3 billion. Other lean emergency aid given after the May 1978 Shaba invasion, substantial financial support from Zaire's wading Western creditors has not been forthcoming 'Iespite President Mobutu's acceptance of a tough ,economic reform program last summer. The major stumbling block to ad Jitional assistance is Zairian reluctance to control wasteful government spending. The mines in Shaba-Zaire's most important eco- nomic asset-have pe -formed remarkably well in view of the rebel invasions A Kolwezi and subsequent exodus of 450 expatri ites last year. Recent production estimates provided b~ the Zairians indicate copper output last year was ~ lmost identical to the 1977 total of 435,000 tons, while cobalt production jumped to 13,200 tons,compared with 10,000 tons the year before. Mining offici, Is have improved the cobalt recovery rate from pr )cessed copper to take advantage of currently favorable market conditions. Cobalt prices have risen from $6.8.' to $20 a pound over the last several months. In ad lition to the production in- creases, Mobutu mus also take satisfaction from the fact that Zairians are playing a major role in operating the Kolwezi mining f.:cilities. The number of expatri- ates who have return( d to Kolwezi has been less than expected, despite recr aitment efforts in Paris, Brussels, and other European c ties. The surprisingly strong recovery of Shaba's mining complex from the disrup- tions of the rebel incu -sions in 1977 and 1978 is unlikely to continue v ithout some additional return of expatriates and a mot e timely flow of spare parts for the mining facilities. Economic Reforms: A Hard Pill To Swalt, )w Mobutu has taken see eral measures to wheedle addi- tional financial aid fr am the United States and other Western creditors. Si ice July, private banks, which finance a substantial share of Zaire's consumer im- ports, have been proh bited from issuing letters of credit unless they haw cash on hand. At the same time, foreign exchange allo rations have been reorganized. Outstanding import b lls are tobepaid off as quickly as possible and industria I raw materials, essential manu- factures, and foodstu fs are to receive the lion's share of the remainder. Exhort revenues-except for cop- per-are to be deposi ed in Zairian banks rather than in overseas accounts i i response to widespread adverse publicity over the disippearance of several million dollars of coffee receiAs. 25X1 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A0008000f3AO1-1 Open copper mine near Kolwezi in Zaire's Shaba Region. Mobutu agreed last fall to the placement of expatriate experts in the Central Bank and promised to abide by their recommendations. The result has been a series of devaluations that has reduced the value of the currency by almost 50 percent since November; such a move would have been anathema to Mobutu in earlier years and perhaps is indicative of his desperation. The Central Bank also announced in December that those firms that have not repatriated all of their foreign exchange receipts would have their Zairian bank accounts frozen until such payments are made. So far, 50 businesses have been affected, including several owned by relatives of Mobutu. Mobutu has also dismissed several government officials on charges of corruption and released some military officers because of alleged involvement in commercial affairs. Officials released because of corruption probably will be al- lowed by Mobutu to ease their way back into other shady dealings. 25X1A ?25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Kinshasa has been unwilling to keep its spending in i,eck, as exemplified by this year's "austerity" bud- _eet, which has a government-projected deficit of $350- 400 million. The deficit will probably be in the neighborhood of $600-700 million. A large portion of this shortfall is slated for salaries and for Mobutu's enable slush fund, which he uses not only to pay off ;-) ,+itical and military supporters but also to advance ;iis personal wealth through real estate and other ieaiings ,.ven if the IMF plan is implemented, other problems le im on the horizon that could jeopardize the govern- .,ic;nt's performance and the subsequent availability of reign assistance. Insufficient manpower will ad- =rsely affect Kinshasa's ability to monitor the flow of ",ire's foreign exchange holdings, including a r_,ckdown on improper pricing of exports that reduces he volume of export receipts subject to taxes and other ,~=;vcrnment controls. In addition, Mobutu continues to ah10w interest in barter deals involving copper and xabalt in exchange for imported goods. Such transac- ,,ns are outside the authority of the Central Bank, ich frowns on these arrangements. I ,i_ sharp drop in consumer imports and concomitant ,ar;ge in prices are also likely to increase popular unrest h~at may temper the President's enthusiasm for ie ntinuing the reform program. Neither will he want ,a,itations placed on the availability of public funds :Ir his personal use. The biggest question mark, ?,owever, is the status of the Shaba mines. Output this x ,r is expected to slip to less than 400,000 tons of ,zapper and around 10,000 tons of cobalt. It is only a 1,aul tter of time before equipment begins to break down irie to poor maintenance and lack of spare parts. reduction may also be disrupted by fuel shortages, Which would affect the movement of ore in and out of iic refining centers. In addition, a major program to xpand domestic production of refined copper and .:,,halt is threatened by Zaire's recent decision to ;,incel a World Bank loan, apparently because of the 'flank's insistence on a strict accounting of the funds. Finally, until Presider:: Neto can guarantee the security of the Benguela Railroad, Kinshasa will have to continue to depend ,n the politically unreliable Zambia-Rhodesia-Sc;.Ah Africa rail line and the inefficient Voie Nationale, an internal land water route, for shipping its ninerals abroad. The debilitating progression of economic reversals, internal difficulties, ned repeated military challenges and dissident threats i om without may combine to deal Mobutu a mortal blow. Although he has weath- ered crises in the past. the difficulties of the last three to four years have so eroded his power and prestige that he is unlikely to regain- the authority or respect he once commanded. Mobutu s no longer the master of his house. Without contin ied external economic and military support his rr le would disintegrate even further. The Zairian President is faced with the most serious challenge of his 14-yec r rule. Even if he survives, the country's economic an I political decay is so pervasive and the social fabric s, , damaged that the situation probably cannot be cc r:ipletely reversed-regardless of the amount of foreign yconomic assistance provided to the country or externa pressure on Mobutu for reform. For the short to medi n term, internal conditions in Zaire will continue to deteriorate. If Mobutu does not survive politically, an , ven more rapid deterioration in the internal situation ,-ould probably occur. A sudden or violent change in ledership would probably result in widespread disorder> before a new regime could consolidate power. Va ious individuals and groups would initially be cons erned with sorting out new loyalties and settling ,:)id scores. Any new government would be hard pressed to unify Zaire or halt the social and economic decay. `, peaceful transition of power is 25X1 25X1 25X1 ?iecret 10 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Secret Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Mobutu's supporters-including the United States--- are criticized from two different sides: Zairian dissidents blame the West for propping up a govern- ment that is almost universally regarded as repressive and hopelessly corrupt, and Mobutu himself criticizes the West for not supporting him completely and for encouraging his opposition. If Mobutu's position con- tinues to deteriorate, his behavior in similar instances in the past would lead one to expect him to search for scapegoats inside Zaire and to lash out even more vociferously at his traditional foreign supporters, accusing them of "abandoning" him. Mobutu prob- ably is already suspicious of US intentions regarding Zaire and may believe that Washington supports some of his opposition. The Zairian President could also react harshly against the United States when he learns that the meeting of Zaire's donors that he expected to be held this month was never even scheduled. The President's practice of filling key government positions with individuals from minor ethnic groups means that there are very few individuals in positions of power who could command broad support. If Mobutu left the scene, there are several potential leaders in exile who would probably return. But it is questionable whether any could effectively bring order out of chaos. Likewise, there are no potential leaders in the country who, either individually or in concert with the exiles, pose a viable alternative to Mobutu Despite the lack of an apparent replacement for Mobutu, his long-term prospects for survival are worse now than at any time during his rule. In the short to medium term, Zaire's prospects for stability are dim--- with or without Mobutu. Without him, the Zairian military would probably play an influential role in the establishment of a new government. With the exception of the FNLC, most of the opposition to Mobutu apparently is nonideological. Although a succeeding government might wish to be less closely tied to the West, Zaire's new leaders would probably continue to look to the country's traditional supporters as their primary allies. 25X1 25X1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 '-secret Approved For Release 2002/05/07 : CIA-RDP80T00942A000800050001-1 Approved, For Release, 2002/05/07 CIA-RDP80T00942A000800050001-1

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