167197

JPRS-SSA-87-030

6 APRIL 1987

Sub-Soharan Africa Report

19980611 151

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JPRS-SSA-87-030

6 APRIL 1987

SUB-SAHARAN AFRICA REPORT

CONTENTS

GHANA

PLO Envoy on Zionism Apartheid Link

(GHANAIAN TIMES, 21 Feb 87) 1

Hydroelectric Power Project Receives IDA Assistance

(PEOPLE'S DAILY GRAPHIC, 21 Feb 87) 2

Exchange Rate Pegged Uniformly To Auction System

(C. S. Buabeng; PEOPLE'S DAILY GRAPHIC, 21 Feb 87) 3

Unit Established To Investigate Local Goods Prices

(PEOPLE'S DAILY GRAPHIC, 24 Feb 87) 5

Briefs

Abu Bridge Commissioned 6

IVORY COAST

Rescheduling of Swiss Debt Shows 'Confidence' in Economy

(Diaby Aboubakar; FRATERNITE MATIN, 30 Jan 87) 7

Al-Qadhdhafi's Actions in Chad Scored

(F. L. Doubass; FRATERNITE MATIN, 28 Jan 87) 8

Hungarian Deputy Foreign Minister Visits

(Lebry Leon Francis; FRATERNITE MATIN, 23 Jan 87) 10

Trade With Hungary Studied

(Lebry Leon Francis; FRATERNITE MATIN, 26 Jan 87). 12

- a -
Briefs

Friendship Pact With Egypt 14

Trade With Uruguay 14

LIBERIA

EEC Port Management Accord Signed

(NEW LIBERIAN, 17 Feb 87) • • 15

Agricultural Minister on Commitment to Warda

(Joseph Teh; NEW LIBERIAN, 17 Feb 87) 16

President Doe Appoints New Ministers, Envoys

(NEW LIBERIAN, 20 Feb 87) .' 17

President Doe Addresses Troops on Armed Forces Day

(Philip N. Wesseh; DAILY OBSERVER, 12 Feb 87) 18

Indian Association Elects New Officers

(DAILY OBSERVER, 13 Feb 87) • 20

ECOM Prepares for First Chieftaincy Election

(DAILY STAR, 13 Feb 87) 21

1986 Iron Ore Exports Detailed

(DAILY STAR, 10 Feb 87) 22

Briefs

Lebanese Cultural Union Scholarships 23

MADAGASCAR

French Aid To Help Rehabilitate Industry

(MADAGASCAR MATIN, 11 Feb 87) 24

Effects of Import Tax Debated

(Franck Raharison; MADAGASCAR MATIN, 3, 4 Feb 87) 26

Benefits Described 26

Small Importers Criticize Tax 27

Commentary on President's Speech

(Arsene Ralaimihoatra; MADAGASCAR MATIN, 15 Jan 87)..... 29

Government Grant Provides Hope for Educated Unemployed

(Adelson Razafy; MADAGASCAR MATIN, 17 Jan 87) 31

Farmers Union Wants Compliance With Rules

(MADAGASCAR MATIN, 4 Feb 87) 34

- b -
Measures To Control Inflation Termed Ineffective

(Adelson Razafy; MADAGASCAR MATIN, 17 Jan 87) 36

Briefs

DPRK Reception 38

EDF Financing for Agriculture 38

Dock Workers End Strike 38

MAURITIUS

Briefs

1986 Tourist Statistics! 40

NIGER

EDF Irrigation Project in Niger

(LE SAHEL, 10 Feb 87) 41

Italian Aid for Wells in Niger

(Sido Yacouba; LE SAHEL, 9 Feb 87) 43

Niamey Solution to Inflation Urged

(Adamou Garba; LE SAHEL, 17 Feb 87) 44

Briefs

French Water Project Cooperation 45

Russian Aid Noted 45

NIGERIA

GDR Loan, Equipment for Rural Development

(Leke Salau; SUNDAY TRIUMPH, 15 Feb 87) 46

Babangida on Side Effects of Austerity Measures

(NEW NIGERIAN, 16 Feb 87).. 47

Ministry Officials Take Oath of Secrecy To Stop Leaks

(Omafume Amurun; NEW NIGERIAN, 3 Feb 87) 48

Muslims Said To Demand More Members in Lagos Cabinet

(Jonathan Emereole; DAILY STAR, 5 Feb 87) 49

Ministries, Departments Ordered To Set Up Training Program

(Chris Obinagwan; DAILY TIMES, 9 Feb 87) 50

Controversy Over Contingent Revenue Allocation

(Roseline Umesi; BUSINESS TIMES, 16 Feb 87) 51

Babangida Presents Donations to OATUU

(NEW NIGERIAN, 9 Feb 87) 52

- c
Planning Minister on 5th National Development Plan

(Kalu Idika Kalu Interview; BUSINESS TIMES, 9 Feb 87)... 53

Indian High Commissioner on Community Investments

(THE TRIUMPH, 11 Feb 87) 60

Central Bank Governor on Foreign Exchange Inflow

(DAILY STAR, 10 Feb 87) 61

Industries Seek Government Protection Against Competition

(BUSINESS TIMES, 2, 9 Feb 87) ......... 62

Textile Industry Seeks Tariff Protection, by Dapo Ajibola 62

Petroleum Corporation Seeks Protection, by Ndu Ughamadu 63

NLC Chairman Demands Wage Increases

(NEW NIGERIAN, 13 Feb 87) 64

Productivity Board Rules Out Salary Increases

(NEW NIGERIAN, 19 Feb 87) 65

State Governments Ordered To Employ Youths

(Various sources, various dates) 66

Special Public Works Program Established 66

Applicants Queue Up in Bendel State 67

Applicants Register in Cross River State 67

Training Center Initially in Lagos Only 68

Ban on Student Unionism Reviewed

(DAILY TIMES, 16, 17 Feb 87) 69

Lagos State Government Reconsiders Ban, by Kate Okoronkwo 69

Union Activities Resume at Nsukka 70

Senior Staff Labor Association Wins Approval

(Tony Masha; SUNDAY TIMES, 8 Feb 87) 71

NNPC Strikes Oil in Chad Basin

(Abdullahi Idris; NEW NIGERIAN, 16 Feb 87) 72

Water Hyacinth Viewed as Potential Economic Asset

(DAILY TIMES, 6 Feb 87) 73

Railways Corporation Faces Financial Crisis

(Funmi Jolaosho; DAILY TIMES, 13 Feb 87) 74

Survey Reveals Essential Commodity Price Increases

(Peter Umenze; WEEKLY STAR, 15 Feb 87) 75
ZAIRE

Fight for Tribal Supremacy Grips Plateau State

(Shehu Dauda; SUNDAY TRIUMPH, 15 Feb 87) . 76

Defense Equipment Manufacturing

(Various sources, various dates) 78

Army To Encourage Companies 78

Air Force Begins Spare Part Production 78

Industries Spokesman on Ammunition Exports, by

Bako Mohammed 79

Minister Calls for Local Manufacturing, by Andrew Isibor 80

Briefs

Labor Factions Declared Illegal 81

Shipping Terminal Guidelines 81

Air Force Plane Crashes 81

Senior Advocate Appointments 81

Article Explores Mobutu's Relationship With Opposition

(FRANKFURTER ALLGEMEINE ZEITUNG, 22 Jan 87) 82

SOUTH AFRICA

AFRIKANER/GOVERNMENT

Violence, Terrorism Seen Backfiring on Leftist Parties

(DIE BURGER, 31 Jan 87) 85

Colored MP's Increased Support for Government Noted

(Editorial; DIE BURGER, 15 Jan 87). . 88

Broederbond, NG Church Termed Afrikaner Freedom 'Pallbearers'

(DIE AFRIKANER, 4 Feb 87). 89

Indaba Seen as Valuable Start to Government by Consensus

(Editorial; DIE BURGER, 4 Feb 87) 91

RAPPORT Editor Resigns Over Political Pressure

(SAPA, 7, 8 Mar 87; Johannesburg Television Service,

8 Mar 87) 93

Cites Constant Clashes With NP Politicians 93

RAPPORT Director Expresses Regret 94

P. W. De Klerk Comments 95

Ex-RAPPORT Editor Explains NP Pressure , 97

- e -
PFP Seen Still Suffering From Slabbert Departure

(Dawie; DIE BURGER, 4 Feb 87) '. 99

HNP Fails To Respond to CP Unity Offer

(SAPA, 11 Mar 87; Johannesburg Domestic Service,

12 Mar 87). 102

Statement Issued by CP Leader 102

Election Pact With HNP Dismissed 102

BLACKS

UDF Leader Acquitted, Others Sentenced for Murder

(SAPA, 6 Mar 87) . 104

Ciskei Deports Transkeian Lecturer, Officials

(SAPA, 9 Mar 87).... 106

KwaZulu's Dhlomo on Business Role in Reform

(SAPA, 7 Mar 87) 107

Briefs

TBVC States Receive 17.5 Million Rands 108

PAC Meets UK Government Officials 108

No Homes Built by Government in Soweto 108

Black Unemployment Figures Revised 108

Plans To Upgrade Alexandra Township 109

ANC's Nzo Seeks Support 109

Lebowa To Administer Own Townships 109

SOCIOPOLITICAL/OTHER

Commentary Says USSR Tightening Hold on Angola

(Johannesburg Domestic Service, 9 Mar 87) , 110

Commentary Notes Ruanda1s Willingness for Talks

(Johannesburg Domestic Service, 10 Mar 87).. 112

South Africa Foundation President Criticizes Western Sanctions

(SAPA, 11 Mar 87) • • 114

Cape Town Seeks Approval for School Desegregation

(SAPA, 6 Mar 87).. 117

90 Percent Favor 'Gray Area' in Cape City

(SAPA, 8 Mar 87) 118

Black Sash Report Critical of Reform Measures

(SAPA, 13 Mar 87).. 119

- f
DPSC Calls for 'National Detainees Day'

(CITY PRESS, 8 Mar 87) .. 121

Newspapers Not To Be Prosecuted for DPSC Ads

(SAPA, 7 Mar 87) 123

SUNDAY STAR Identifies Man Behind ANC Ad

(Kitt Katzin, Sheryl Raine; THE SUNDAY STAR, 8 Mar 87).. 125

PFP's Suzman Launches Party's Campaign

(SAPA, 7 Mar 87) 127

Poll Sees No Election Hope for Dissenters

(Gary van Staden; THE SUNDAY STAR, 8 Mar 87) 128

NUM Urges Official Inquiry Into Mine Safety

(SAPA, 9 Mar 87)... 132

Briefs

Eglin Welcomes Independent Manifesto 133

Wage Hike Agreement, Strike Ends 133

ECONOMIC

Foundation Official Urges Action on U.S. Sanctions

(SAPA, 11 Mar 87) 134

Mining Industry Crisis in Third World Affecting Country

(THE STAR, 31 Dec 86) .... 135

Need To Improve Production Spurs Mining Research

(Cherilyn Ireton; BUSINESS DAY, 12 Jan 87) 137

Motor Industry Difficulties Examined

(Auret Van Heerden; WEEKLY MAIL, 23-29 Jan 87) 140

Half of White Adults Concerned Over Disinvestment

(SAPA, 13 Mar 87) ... 142

Briefs

Finance Minister Sees Growth Phase 143

INDUSTRIAL/S&T

Japanese S&T Firm Expands Operations in South Africa

(BUSINESS DAY, 5 Feb 87). 144

SA's CSIR Strategy Emphasizes Country's Pragmatic Needs

(SOUTH AFRICAN JOURNAL OF SCIENCE, Nov-Dec 86;

BUSINESS DAY, 29 Oct 86) 145

Scientific and Industrial Research Council 145

CSIR To Play More Active Research Role, by David Furlonger 149

/12223
GHANA

PLO ENVOY ON ZIONISM APARTHEID LINK

Accra GHANAIAN TIMES in English 21 Feb 87 pp 1, 3

[Text] Mr Shaban Adnan,

Charge d'Affaires of

the PLO Embassy in

Ghana, has called on

Africans to join

Palestinian in their

fight against Zionism

and apartheid — the

twin evils of imperialism and exploitation.

Speaking at the tiiird in a

series of lecfures organized

by the Ghana Journalists Assoon the Palestinian situation

Mr Adnan explained that, the

Jewish sefrtlers in Palestine

had instituted Zionism like

apartheid in racist Souh Africa, to exploit the Palestinians

who were the rightful owners

of the land,

He said as a result of the

common goals of Zionism and

apartheid. Zionist Israel and

apartheid South Africa were

collafboratina in several fields

to ensure their survival.

One such collaboration, he

gaid. was the diversion of

American arms to Pretoria for

use against the Africans on

their own God-given land.

Mr Adnan disclosed a joint

plan by Israel and South Africa to manufacture fighter aircrafts and develop nuclear

weapons and the supply of

South African uranium to

Israel In exchange for nuclear

technology.

According to Mr Adnan. the

survival of Israel depended to

a large degree on South Africa

and if therefore, behoyed

both the dismantling of apartheid in South Africa.—GNA

/13046

CSO: 3400/241
GHANA

HYDROELECTRIC POWER PROJECT RECEIVES IDA ASSISTANCE

Accra PEOPLE'S DAILY GRAPHIC in English 21 Feb 87 p 5

[Text] THE International

Development Association (IDA) is

to loan Ghana 6.3

million dollars in

support of a hydroelectricity project

in the northern

part of Ghana this

year.

The credit is for 50 years

with a 10-year grace period. It carries no interest

but has annual charges of

0.5 per cent on undisbursed

balances and 0.75 per cent

on disbursed balances, a

statement issued from the

World Bank office in Accra

and released by the Ministry of Foreign Affairs

yesterday.

The project will cover

the urban centres of the

Brong Ahafo, Northern

and Upper Regions.

It said the total project

is estimated at 147.9 mil-'

lion dollars with additional

financing from the African

Development Bank, 38.3

million dollars, the Commonwealth Development

Corporation and the European Investment Bank

both of which will provide

36.7 million dollars.

Other finances are expected from the Canadian

International Development Agency 7.5 million

dollars, the Japanese Exim

Bank, five million dollars

and the Volta River Authority, 54.1 million dollars.

The project, when completed is expected to increase productivity in the

country's forestry and

agriculture-related industries, the statement

added.—GNA

/13046

CSO: 3400/241
GHANA

EXCHANGE RATE PEGGED UNIFORMLY TO AUCTION SYSTEM

Accra PEOPLE'S DAILY GRAPHIC in English 21 Feb 87 pp 1, 5

[Article by C.S. Buabeng]

[Text] ALL transactions

within the economy will, t

now be dictated by the , weekly auction of the

dollar.

This follows the abolition of Window One under

which crude oil. processed

petroleum products, foreign inputs for GHAII'

and essential drugs were

imported at the fixed rate -

of #90 to a dollar.

i I)r Kwesi Botchwey, Secretary for Finance and

Economic Planning announcing this in Accra yesterday in his state of the

economy and 1987 Budget

at a press conference said

the move is to remove the

burden ofsubsidising those

products by cocoa farmers

who live in a state of deprivation.

The Bank of Ghana, he

said, will now authorise

licensed dealers other than

.banks to set up "bureau de

Triange" to buy and sell

foreign exchange officially.

Effort is also being made

to encourage nontraditional export through

incentives. Consequently,

the export levels of retention lias been increased

from 20 to.15 per cent.

The PNDC has decided

to bloc the lost massive

amount of foreign exchange every year through illegal mining and export of

gold. As a result, private

gold dealers will be licensed just as diamond winners.

Again the government is

studying proposals to authorise the licensing of official buyers of gold.

l)r Botchwey submitted

that the time has come for

the government to eliminate wasteful and nonproductive expenditures in

the budget and to free

more resources for important social services.

Consequently whilo those services are being provided, a programme for generating revenues to sustain the cost must be pursued.

He cited the situation

under the free text-book

system which a pupil is

levied C'4.50 a year while

there arc no books and basic stationery so the public

schools become the object

of ridicule as an example

for the need for Ghanaians

to face the realities of the

prevailing situation and

help salvage the economy.

Total expenditure for

the current fiscal year, he

said, is estimated at

009.4(17 million.

Estimated revenue ahd

grants arc C 109.711 million. A modest surplus of

0304 million is expected.

According to Dr Botchwey, 018,200 million has

also been earmarked for '

development.

In a chat with the "Graphic" after the state of the

economy press conference,

Dr Botchwey said the estimated revenue is "a pessimistic figure."

He explained that three

factors produced the

shortfall in the estimated

revenue last year namely,

high COCOBOD's operational expenses, less import and removal of import

duties.

He announced that the

rate of inflation is targetted at 15 per cent while the

Gross Domestic Product is

expected to grow at not

less than 5 per cent.

He emphasised that the

key dimension to the

country's development efforts should be the continued harnessing of com;

munity initiatives to contribute to the government's limited resources.

Such initiative and contributions would be needeel

to ensure the provision of

electricity, water supply,

road construction and

houses at reasonable cost

. for working people.

Three hundred buses are

to be imported to improve

the public transportation

system. In addition, 130

passenger coaches and four

locomotives will be

brought into the country.

The rehabilitation of the

Eastern and Central Railway lines will «also begin

this year.

On the provision of electricity to the Northern

Sector of the country

under the National Transmission grid which begins

this year, $150 million will

be spent when completed

in 1990.

Eight agencies ADB,

IDA, EDB, CDC, Saudi

Fund for Development,

CIDA, Japanese Exim

Bank and the VRA will

fund the project. Again,
VRA will contribute local

components equivalent to

$45 million.

When the project is

completed, Brong Ahafo,

Northern, Upper East and . West Regions will be connected to the existing grid.

Furthermore, $16 million is

expected to be spent on

rehabilitating existing diesel generators.

Extension of Volta Region rural electrification

fromDenu-Keta will begin.

Dr Botchwey announced that the government is

working outa system where donors will channel

some resources through

the district authorities

where priorities could be

properly set.

On the educational reform, the Secretary said

the government will make

financial provision by providing the roofing and pillars of classrooms while

the communities fill in the

walls. Support will also be

provided for essential renovation of existing

structures.

On housing, the Secretary said, support will be

given to SSNIT, SIC and

REDCO to complete the

projects in phases.

He submitted that the

country cannot perpetuate

the dependence on foreign

loans and grants in her development effort and surpluses must be generated

by the people to secure the

national sovereignty and

independence.

/13046

CSO: 3400/242
GHANA

UNIT ESTABLISHED TO INVESTIGATE LOCAL GOODS PRICES

Accra PEOPLE'S DAILY GRAPHIC in English 24 Feb 87 p 1

[Text] THE government

hasset up a unit to

look into the cost

structure of some

of the locally manufactured goods

with a view to lowering prices, Mr

Ato Ahwoi, Secretary in charge of

the National Revenue Secretariat, announced at

the Weekend.

Mr Ahwoi who held

.discussions with chief

executives and members

of CDIts at workplaces

in the Tema township

said "there is something

basically wrong with the'

cost ofsome commodities

produced in the

country".

He cited the Food Specialities which produces a

tin of milk at trie cost of

042 and sells it at £50,

while milk brought into

the country With the

Special Unnumbered Licence (SUL), sells at <Z35

after paying all duties.

Mr Ahwoi said the prices of a colour television,

set and deep freezer manufactured by Ghana

Sanyo are higher than

imported ones.

. He said research results of the unit would

help the government to

eliminate some of the

inefficiencies at the factories.

Mr Ahwoi said while

the government has no

sympathy for consumers

who prefer imported

butter and long grain rice

to locally produced ones,

there is the need to ensure that local goods are

reasonably priced—

GNA.

/13046

CSO: 3400/241
GHANA

BRIEFS

ABU BRIDGE COMMISSIONED—A new 33-metre single span steel-bridge over the

River Abu at Dwaaho-Ashanti in the Ahafo-Ano District has been commissioned

by the Ashanti Regional Secretary, Colonel (rtd.) E.M. Osei-Owusu. The

bridge was part of a programme under an agreement signed in 1982 between the

Ministry of Roads and Highways and the Federal Republic of Germany. The

agreement was on constructing bridges on feeder roads in farming areas. Col

Osei-Owusu, who was on a two-day tour of the District, appealed to farmers to

exercise restraint in their demand for compensation when their land is taken

over for development projects. Mr Danny Nana Osei Mainoo, Procurement

Manager of Allgemaine Bau (ABU), the contractors, said the bridge was completed at the cost of 0700,000 and a foreign exchange component of 1.5

million Deustche marks. Nana Owusu Afriyie, Dwaahohene, said the wooden

bridge over the River Abu collapsed in 1977 and that efforts to get timber

contractors operating in the area to repair it proved futile.—GNA [Text]

[Accra PEOPLE'S DAILY GRAPHIC in English 23 Feb 87 p 3] /13046

CSO: 3400/242
IVORY COAST

RESCHEDULING OF SWISS DEBT SHOWS 'CONFIDENCE' IN ECONOMY

Abidjan FRATERNITE MATIN in French 30 Jan 87 p 6

[Article by Diaby Aboubakar]

[Text] Minister Seri Gnoleba and Claudio Caratsch, Swiss ambassador to the

Ivory Coast, met in the minister's office yesterday to initial an agreement

concerning the rescheduling of the debt totaling 16.8 billion CFA francs.

After the two officials expressed their satisfaction with the good relations

existing between their countries, Gnoleba emphasized the positive aspect of

the rescheduling over several years which international creditors have

granted our country.

This proves once again the confidence they have in the future of our economy.

The first of its type granted to a debtor country, the rescheduling agreement

just signed for the Ivory Coast, within whose framework if the agreement just

signed with Switzerland, covers a 3-year period for the Club of Paris and

4 years for the Club of Rome.

It is a mechanism that enables us to make medium-term growth projections.

The rigorous measures courageously taken by the Ivorian Government in a

period of economic crisis, in an effort to restore the economic balance,

have borne their fruit. The Ivorian economy has emerged from the tunnel and

is gradually working its way toward expansion.

However, one must recognize that there is still a long and difficult way to go

to achieve an effective recovery, if one believes in the excessive drop in the

value of the dollar — which hurts us more than it helps us — and given the

drop in the price of our raw materials that continued last year. These are

all phenomena that reduce our country's financial capacity and make renewed

growth indispensable, for its counterpart is an increase in national wealth.

In other words, the rescheduling of the debt for several years is a good

thing, but our economy needs not only real relief, but also adequate resources

to stimulate the long-awaited growth.

Having won the battle for stability, trying to maintain the economic status quo

would be harmful to our economic system which, on the'basis of the stability

acquired at the cost of a thousand efforts, now needs a real growth boom.

11,464

CSO: 3419/97

.-.*?: •' < - -

m

<
IVORY COAST

AL-QADHDHAFI'S ACTIONS IN CHAD SCORED

Abidjan FRATERNITE MATIN in French 28 Jan 87 p 31

[Article by F.L. Doubass: "Physician, Heal Thyself!"]

[Text] In speaking recently about the Iraqi-Iranian conflict to the press,

the leader of the Libyan Revolution, Col Mu'ammar al-Qadhdhafi proposed the

establishment of an Islamic Force of Interposition between the Iraqi and

Iranian armies. What a fine, praiseworthy move on behalf of peace!

Al-Qadhdhafi finds that this (Iraqi-Iranian) war is nonsense: Iraq is not a

territory that Iran has to liberate and since, he says, the Arabs do not have

the might to annex the Persian nation, everything must be done to establish

peace between the two neighboring countries.

This pertinent analysis by the Jamahiriya of the situation in the Arab-Persian

Gulf naturally leads me to pose a number of questions concerning another conflict, which has also resulted and unfortunately continues to result in victims: the Chadian-Libyan conflict.

Is Chad a territory that Libya must liberate? From what occupier?

Can Tripoli annex Ndjamena, despite the OAU Charter, which speaks of the intangibility of borders inherited from colonial days, noninterference by a

nation belonging to the OAU in the affairs of another sovereign country?

If the Iraqi-Iranian conflict, by virtue of the fact that it has been taken

to the cities and innocent victims are losing their lives, can be described as

a "dirty war," then what label can one use in speaking of the Chadian-Libyan

war, in which Libyan bombers daily drop tons of bombs on the Chadian areas of

Kalait, Arada and Zouar?

Perhaps the word "barbaric" would better fit the situation.

Since al-Qadhdhafi sees himself as a man of peace, does he not think that in

order to bring peace to a conflict in which he is involved, he would be sufficient for him to withdraw his troops from Chadian territory so that peace,

true peace, may be restored there for a long time to come?
Does he not think that the real Chadian conflict, meaning the fight for power

which pits two or more Chadian leaders against one another, can be easily

settled through the good offices of the OAU?

I would propose that the Libyan leader meditate upon this wise thought:

"Physician, heal thyself!"

11,464

CSO: 3419/97
;) IVORY COAST

HUNGARIAN DEPUTY FOREIGN MINISTER VISITS

Abidjan FRATERNITE MATIN in French 23 Jan 87 p 5

[Article by Lebry Leon Francis]

[Text] The diplomatic ballet which our country has witnessed since the beginning of the year continued yesterday to strengthen our international relations with the arrival of Hungarian Deputy Minister of Foreign Affairs Nagy

Gabor. ^

Upon his arrival, the Ivory Coast's guest stated that his visit was an expression of Hungary's special attention and admiration for our country. "We

consider the Ivory Coast as a model of development in Africa, given its

economic results in particular, and we know that this country has always tried

to preach better understanding between the countries of the world."

The Ivorian policy of openness has therefore just enjoyed another opportunity

to improve Ivorian-Hungarian cooperation and explore new possibilities of

developing it.

The Hungarian deputy minister was received by the Ivorian minister of defense,

standing in for his Foreign Affairs colleague. There ensued a discussion with

our guests of the Ivory Coast's foreign policy and, without a doubt, the

problems of the continent. It should be noted that in his department, Gabor

is an expert on Africa.

Yesterday afternoon was devoted by the Hungarian delegation to a working

meeting at the Ministry of Foreign Affairs, at which session Ambassador Attoumgbre reviewed the guiding principles of the Ivory Coast's foreign policy.

However, within the framework of this give and take, one must, note that our

relations with the socialist countries have been normalized rather late. Hungary is one of the countries with which we have little trade.

Whatever the case, we essentially export cacao and lumber to that brother

nation worth some 3,368,000,000. Imports include canned vegetables, machinery,

electrical appliances, electric meters, and so-on'.". However, commercial relations show a surplus in the Ivory Coast's favor. <

10
The Hungarian deputy minister also expressed his hope for a strengthening of

relations in such fields as culture and education. Hungary is willing to

provide a number of scholarships for Ivorian students. Other fields remain

to be explored, naturally, but they must be the target of careful analysis.

Whatever the case, the Hungarian deputy minister's visit to the Ivorian minister of commerce this afternoon will cover sectors in which such trade has

so far taken place and current possibilities of expanding it.

11,464

CSO: 3419/97

11
IVORY COAST

TRADE WITH HUNGARY STUDIED

Abidjan FRATERNITE MATIN in French 26 Jan 87 p 6

[Article by Lebry Leon Francis: "Reviving Our Trade"]

[Excerpts] Arriving here on Thursday, the Hungarian deputy minister of foreign affairs concluded his working visit to our country with a meeting with

Minister of Commerce Nicolas Kouandi Angba.

During their meeting, the two officials reviewed the nature of our trade

relations and expressed their desire to revive those relations by diversifying

them.

The Hungarian deputy minister of foreign affairs spent Friday morning in a

working meeting at the Ministry of Commerce. On that occasion, a review of

our commercial trade was completed. Both sides expressed the hope that

relations will expand to other fields not yet exploited.

It should be noted that although the Ivory Coast and Hungary are linked by a

commercial agreement dating from 1969, the partnership has remained on a very

low level. Trade should be more continuous and revived, as firmly emphasized

by Minister Nicolas Kouandi Angba. For that purpose, markets in both countries

should be explored.

Beyond what we derive from economic cooperation with Hungary and essentially

involving canned vegetables, machinery, electrical appliances, and so on, the

Ivory Coast would be willing to study ways of receiving Hungarian logistical

support with respect to buses, for example. Hungary is among the world's

five leading producers of those vehicles and would like to penetrate the Ivorian market.

Along those same lines, the Hungarian delegation brought up the possibility of

setting up an electronics plant on Ivorian soil.

On the whole, Hungary, which understands that its trade with the Ivory Coast

has been obviously uneven, wishes to diversify and expand such trade. It is

that above all political determination that the deputy minister wished to

transmit to our authorities.

12
After concentrating its efforts on Europe, Hungary has recently turned to

Africa, which is why, before arriving in Abidjan, Nagy Gabor had first visited

the Congo, Zaire and Cameroon. But the Hungarian official pointed out that

his country pays special attention to the Ivory Coast, whose overall development has had a definite impact on that Eastern nation. "This economic success

in particular was made possible by your system of peace and political stability

and we hope you will enjoy real progress in all fields," he emphasized.

The economy was the focal point of the Ivorian-Hungarian talks during the

visit. Like other African countries, the Ivory Coast also receives 1 percent

of Hungary's national revenue, devoted to assistance and aid to developing

countries.

Hungarian authorities, aware of what the contributions of other nations can

contribute to the strengthening of this economy, have decided to speed up and

develop wide-ranging cooperation from which the Ivory Coast has so far benefited in spite of everything, inasmuch as its trade relations with Hungary

show a surplus.

Following a highly-charged and busy working visit, our Hungarian friends left

Abidjan on Saturday.

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13
IVORY COAST

BRIEFS

FRIENDSHIP PACT WITH EGYPT—Signed in Abidjan on 15 January 1985 between the

Republic of the Ivory Coast and the Arab Republic of Egypt, the Treaty of

Friendship and Cooperation went into effect on 21 January. Actually, acting

on behalf of their respective countries, Gervais Attoungbre, director of

political affairs in the Ministry of Foreign Affairs, representing the Ivorian Government, and Ahmadien Bahey El Dine Khalil, representing the Egyptian

Government, proceeded to exchange the instruments of ratification of the

treaty. The ceremony took place on Tuesday, 20 January 1987, at the Ministry

of Foreign Affairs. As its name indicates, the treaty is the expression of

the common will of the two governments to revive, consolidate and develop

bonds of friendship, brotherhood and solidarity existing between the two

countries. For them, it is a matter of combining their efforts in order to

protect their mutual interests. The treaty creates an Ivorian-Egyptian

joint commission responsible for implementing cooperation in the agricultural,

commercial, cultural, scientific, technical and transport fields, as well as

between the different institutions and between women's and youth movements in

both countries. [Text] [Abidjan FRATERNITE MATIN in French 5 Feb 87 p 6]

11,464

TRADE WITH URUGUAY—"We have reviewed our trade possibilities, which are quite

great. We are complementary countries in some fields because, given the difference in our climates (tropical and temperate), there is a natural current of

products that can be traded." These were the words of Enrique Iglesias,

Uruguayan minister of foreign affairs, spoken as he left the working meeting

held on Saturday with Minister of Commerce Nicolas Kouandi Angba. A Latin

American country, Uruguay maintains commercial relations with our country on

a very low level, with the total value of such trade reaching under 400 million

francs. Rough timber is the only product which the Ivory Coast exported to

Uruguay in 1985 and 1986. The main product imported from Uruguay is meat and

offal. The trade balance between the Ivory Coast and Uruguay shows a continu-

^^o6?

0111 f

°

r the former> except in 1983, when our country enjoyed a surplus

of 33 bxllion francs. For Iglesias, what is most important, is the possibility

of exploring our markets and increasing exports on both sides (livestock, fish

rough timber and industrial products for Uruguay; cacao, coffee, agrofood pro-'

ducts, oils rubber and textiles for the Ivory Coast), through better knowledge

of both markets. [By Adama Diabate] [Excerpt] [Abidjan FRATERNITE MATIN in

French 3 Feb 87 p 8] 11,464

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14
LIBERIA

EEC PORT MANAGEMENT ACCORD SIGNED

Monrovia NEW LIBERIAN in English 17 Feb 87 p 6

[Text] An agreement for the

improvement of management at the Free Port

of Monrovia has been

signed here between

the Government of Liberia and the European

Economic Community

(EEC).

Under the $1-9 million dollars agreement

a team of six experts,,

to be provided by a

European Port Authority, will be assigned

to the Monrovia '. ort

for a period ox three

years, to set the

"framework for longterm Cooperation and

efficient port operation."

A Planning Ministry

release issued last

Friday said; the

amount wpuld cover management fees, international travels and

counterpart training

in a European Port.

According to the release, Planning, and

Economic Affairs • Mi-'

nister Paul Jeffy signed for the Liberian

Government.

/13046

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15
LIBERIA

AGRICULTURAL MINISTER ON COMMITMENT TO WARDA

Monrovia NEW LIBERIAN in English 17 Feb 87 pp 1, 6

[Article by Joseph Teh]

[Text]

Liberia's Agriculture

Minister Scott Toweh

has assured the West

African Rice Development Association,WARDA

of Liberia's commitment to meeting the

requirements for the

continual operation of

WARDA in Monrovia.

He said during a

meeting yesterday with

the chairman of the

governing council of

WARDA, the Senegalese

Rural Development

Minister, Mr. Famara

Ibrahim Sagna», that

President ©be . has

approved recommenda-•

tions submitted to him

by the Agriculture Mi-

.nistry to that effect.

Mr. Sagna who leavesthe country today for

home, held series of

talks with senior administration officials

•yesterday on what Li-\

beria, as a host country for WARDA, was

doing to maintain its

headquarters in the

country.

/13046

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Mr. Sagna told Agriculture Minister Toweh

of other member states'

desire to host the regional organization if

Liberia is not in a

position to maintain

the headquarters in

Monrovia.

The maintenance of

WARDA headquarters in

Liberia requires providing building tc

house the secretariat

and other administrative staff, printing'

of special vehicle

licensee plates for

WARDA, and. providing

Immigration protection

for their foreign

staff.

The progress of

these conditions have

been steady. According

to Agriculture Minister Toweh, negotiations

are currently going on

with the.Liberian Bank

for Development and

Investment for an office space to be used

as WARDA's headquar-'

ters.

16

He said if WARDA

could submit their

floor plan, they,

could move into their

new offices within

the next two to three

weeks.

As regards the

iprinting of • car:

•license "plates, Minister Toweh disclosed

that the General Services Agency is prepared at any time to

print WARDA's plates,

provided WARDA sumits

the number of vehicles

they want to have supplied with such

plates.

The relocation of

WARDA headquarters

which was previously

located in the ,E.J.

Roye Building on Ashmun Street, was ., the.,,

result of a fire that

gutted the offices in

April last year. They

are temporarily being

hosted at Fendall,

outside Monrovia.
PRESIDENT DOE APPOINTS NEW MINISTERS, ENVOYS

LIBERIA

Monrovia NEW LIBERIAN in English 20 Feb 87 p 1

[Text] with the consent of

the Senate, the President, Dr. Samuel Kanyon Doe, has been

pleased to make the

following appointments

in government.

An Executive Mansion

release issued here

yesterday said those

appointed are: Jonathan A. Mason, Deputy

Minister for Operations, Ministry of

Lands, Mines and Energy" Mr. D. Alexander

Buitendyke, Deputy

Minister for Administration, Ministry of

Lands, Mines and Energy; Mr. Matthew G.

Zarzar, Assistant Minister for Expenditure

arid Dabt Management,

Ministry of Finance

and Dr. Elwood Greaves, Assistant Minister for Foreign Service Institute, Ministry bf Foreign Affairs.

Others are: Mr.

Harry Tarr-Freeman,

Consul, Liberian Embassy in La Cote d'

Ivoire; Mr. Edward

Greenfield, County

• rtrc6"rney, Maryland

County and Mr. Dann

V. Borh, Agricultural

Counsellor, Liberian

Embassy, Rome Italy.

In separate letters,

Dr. Doe urged, the appointees to help create an atmosphere that

will improve conditions

in our society.He also

challenged them to

undertake \their res-f

pective assignment

with "absolute commitment, honesty and dedication."

/13046

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17
LIBERIA

PRESIDENT DOE ADDRESSES TROOPS ON ARMED FORCES DAY

Monrovia DAILY OBSERVER in English 12 Feb 87 pp'l, 6

[Article by Philip N. Wessen]

[Text] President Samuel

Kanyon Doe has urged

members of the Armed

Forces of Liberia

(AFL) to "abolish

everything that bears

semblance of hatred,'

disloyalty, harassment, (

dishonesty and indiscipline but continue

to remain resolutely

courageous as the nation's first line of

defense.

This was contained

in a message read on

his behalf by Defense

Minister Gray D.

Allison yesterday at a

program marking the

30th anniversary of

Armed Forces Day at

the Barclay Training

Center (BTC) in

Monrovia. Dr. Doe,

who is Commander-IhChief of the AFL, also

attended the program.

He was dressed in his

full five-star General

uniform.

The Liberian Leader

reminded members of

the AFL that in this

changing world, they

should be alert,

courageous and remain

steadfast in the performance of their duties.

"You must never,

allow your rank and

file to be infiltrated by

' those who would want

to use you for selfish

gains, thereby taking

us several steps

backward in our

development efforts,"

he declared.

Dr. Doe pointed out

that members of the

AFL have a great

responsibility to ensure

that the sovereignty ot

the country is well protected from any and all

forms of threats of aggression. He warned

them against those

things that would cause

them to become sluggish and adversely affect the efficient execution of their duties.

"While observing

this 30th anniversary of

Armed Forces Day, it

is appropriate to reemphasize that the role

of the military must be

18
directed at the

maintenance of defense

and security of the

state", he said. He also

urged them to continue

giving their best talents

and service in defense

of the state and its peo- ;

pie.

President Doe indicated that the

military should continue to exemplify a

high degree of

discipline and honesty

while -performing their

duties with brilliance

and fortitude, and

thereby, reflect credit

to itself, the people and

the country.

He expressed the

hope that the Armed

Forces of Liberia in the

Second Republic would

cultivate those virtues

that would portray a

more positive image

for the military.

Dr. Doe used the occasion to pay tribute to

those fallen courageous

and gallant men and

women of the AFL

who paid the supreme

price in the service of

their country by giving

their lives for its

defense.

Defense Minister

Also in his mess age,

Defense Minister Gray

I). Allison informed

members of the AFL

that the survival of the

nation lies in the hands

of men and women in

arms, and therefore,

they should strive to

ensure that continuity

of peace, tranquility

and stability prevail in

the country.

"As we enter a

brand new year, let us

start afresh in striving

together to open new

pages for our country.

Let our best wishes be

the concern and the

future well-being of the

government and people

of this Great

Republic....", said he.

He added: "As a

grateful people under

God's command, let

us, at all times give

thanks and praises to

the Omnipotent God

for his continued

guidance and blessings

and become committed

to work together with

all men of good will in

structuring a better

place for all of us to

live together in peace,

with justice, happiness,

and with human dignity".

The occasion was

highlighted by an

elaborate parade

throughout the major

streets of Monrovia,

and the laying of

wreath on the tomb of

the 18th President of

Liberia, the late

William V.S. Tubman

by the Liberian Leader

on the historic grounds

of the Centennial

Pavilion On Ashmun

Street.

/13046

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19
LIBERIA

INDIAN ASSOCIATION ELECTS NEW OFFICERS

Monrovia DAILY OBSERVER in English 13 Feb 87 pp 1, 10

[Text] Mr. Hasso R. Aswan!

of T. Choithram group,

has Been elected president

of the Indian Association

<>f Liberia (1 AL). He had

served as former first vice

president of the IAL.

The newly-elected president won his popularity after

successfully chairing the

committee set up for the

renovation of North Beach

Recreation Club, and as

chairman of the newlyconstructed Indian Community School at Mamba

Point in Monrovia.

In brief remarks following

iiis election, the IAL presicent, Aswani,. praised the

former president, Gurcharn

S. Gill, and his colleagues for

a job well done during their

tenure of office.

Mr. Aswani called on all

Indian nationals residing in

Liberia to join the association and to put forward suggestions which will help to

boost the image of IAL and

further strengthen the

bilateral relations between

Indians and Liberians.

Others elected to lead the

IAL were: first vice president, Gul H. Mirchandani of

Hirasons; second vice president, Raju M. Manik of

Monibco; secretary-general,

Shyam Sunder of New Indian

Assurance; treasurer, K.V.

Thomas of Associated

Business Management; social

secretary, Ahmed Siraj Khan

of Ezzeddine and Kraus.

An eight-man managing

committee was also elected.

They are: Tulsi T.

Kewelramani of Peekays;

Kumar L. Chugani of Rivoli

Cinema, Bharat L. Amarnaney of Allied Trading,

Lakhi K. Balani of Kay-El

Traders, Kirpal J. Chotwani

of New York Fashions,

Ashok Bharwani of Ekta,

Arjan Rajwani of Watamal

Group and Assan Rupani of

Harrys.

/13046

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20
LIBERIA

ECOM PREPARES FOR FIRST CHIEFTAINCY ELECTION

Monrovia DAILY STAR in English 13 Feb 87 pp 1, 7

[Text] A total of 1,078 seats have been declared vacant by the Elections

Commission (ECOM) on Ashmun Street to be contested for by aspirants, and

encumbant paramount, clan and general town chiefs throughout Liberia at the

first chieftaincy elections slated for March 28, 1987.

ECOM Chairman, Mr. Isaac M. Randolph who disclosed this to DAILY STAR newspaper yesterday in Monrovia, said the chieftaincy elections would be the

first of its kind in Liberia since the nation gained independence in 1847.

He noted that the time has come for all Liberians to participate and enjoy

the "free and fair" democratic process.

/13046

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21
LIBERIA

1986 IRON ORE EXPORTS DETAILED

Monrovia DAILY STAR in English 10 Feb 87 pp 1, 7

[Text] Over 13 million

metric tons of

iron ore was exported from Liberia in 1986 by

the Bong Mining

and the LAMCO J.V.

Operating Companies .

The figure shows

a reduction of

over two million

metric tons of

iron ore: exported

from the country

in 1985, the Ministry of Lands,

Mines and Energy

has said.

According to the

1986 annual report

of the ministry,

quoted by the Liberian News Agency

(LINA), more than

15 million metric

tons of iron ore

was shipped from

Liberia in 1985.

During the

period unJer review, the LAMCO J.

V. Operating Company shipped nearly seven million

tons of ..iron ore

to the United States, West Germany,

France, Italy,

Pakistan, Belgium,

Japan, Spain and

Turkey.

The Ministry

also reported that

the Bong Mining

Company exported

over six million

tons of iron ore

to West Germany

and Italy in 1986.

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22
LIBERIA

BRIEFS

LEBANESE CULTURAL UNION SCHOLARSHIPS—Sixty students of various academic institutions in the country on Wednesday left the offices of the World Lebanese

Cultural Union of Liberia on Benson Street, with their hearts filled with joy

and happiness after formally receiving their scholarship awards....In a brief

statement, the president of the union, Mr. Abbas Fawaz, referred to the gesture

as one geared towards strengthening the bonds of friendship between Lebanon and

Liberia. Also commenting was the secretary of the unionj Mr. Jamil Rajez, who

appealed to the students to consider education as the most important and

valuable object in life, noting that it is possible to lose everything in life

except education. [Excerpts] [Monrovia DAILY OBSERVER in English 13 Feb 87 p 3]

CSO: 3400/245

23
MADAGASCAR

FRENCH AID TO HELP REHABILITATE INDUSTRY

Antananarivo MADAGASCAR MATIN in French 11 Feb 87 pp 1, 6

[Article by J.H.R.]

[Text] A total of 2 million French francs (nearly 244 million FMG [Malagasy

francs] is the amount of the package which the Aid and Cooperation Fund (FAC)

granted to the Democratic Republic of Madagascar on Monday in order to help

the latter in its proposed rehabilitation of SECREN [Naval Construction and

Repair Company] (Antsiranana).

In other words, the promise of aid made by French Minister of Cooperation

Aurillac 4 months ago when he visited the facilities of that internationalscale socialist enterprise has been carried out with the granting of a substantial credit that will enable SECREN to continue its expansion efforts

on a better footing. Those efforts began following years of crisis, during

which the company was (nearly) paralyzed.

SECREN and OMNIS [National Military Office for Strategic Industries] executives officially received the aid, coming at a crucial moment and demonstrating

the French Government's determination to respond to requests of the Malagasy

Government in rehabilitating its industrial units, at a ceremony held 2 days

ago at the OMNIS headquarters in Mangasoavina. It was attended by its general

director, Capt Claude Ratsimandresy, the general director of SECREN,

Comdr Ackram Mohajy, Mr Corbel, head of the French Cooperation Mission, and

Bernard Sexe, FAC adviser.

Rehabilitation

Within the framework of SECREN's rehabilitation, [portion of text deleted?]

lean years stimulated the energy of executives of the industrial unit, whose

economic role in the northern region of the island and the entire country

cannot be minimized. Despite all kinds of limitations, it has a more than

respectable balance sheet last year, with a turnover at the end of the 1986

fiscal year of 2.9 billion FMG.

This balance sheet resulted in a revival of activity and renewed optimism for

the future. This is all the more true because SECREN officials do not intend

to rest on their laurels and will work to confirm the upward trend and to

keep promises.

24
As it has been reported over and over in the media, SECREN recently celebrated

its 12th birthday, but the "12" figure is deceptive for those not acquainted

with its history. Actually, SECREN has behind it some 50 years of experience

that have bestowed international fame upon it. Formerly known as DCAN [Naval

Construction and Weapons Directorate], it took the name SECREN in February 1975,

1975, when it was decided to make it a socialist enterprise.

At the present time, SECREN employs about a thousand fairly skilled persons

in its different departments. In addition to ship repair work, SECREN also pr

provides other services made possible by its varied equipment, particularly

machine maintenance and repair, the manufacture of spare parts, any wood or

metal work and the handling of plastics.

With such varied activities, SECREN is becoming a major production unit, thus

responding to the trust the nation has always placed in it. It can now rely

on French cooperation, outstanding in its loyalty and sincerity.

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25
MADAGASCAR

EFFECTS OF IMPORT TAX DEBATED

Benefits Described

Antananarivo MADAGASCAR MATIN in French 3 Feb 87 pp 1, 6

[Article by Franck Raharison]

[Text] Following the veritable onslaught of local importers on the SILI

(Liberalized Import System), ah undeniable lift long awaited by many businessmen-, it_is belieyed-thattenders for the month of February will enjoy the same

success as those for January, whose total value was nearly double the foreign

exchange available, with 7 million SDR (Special Drawing Rights).

In the months ahead, this quite legitimate craze of businessmen will have the

merit of changing the country's economic picture somewhat. Import licenses

thus issued will engender a still unknown effect in a precise domain, that of

the consumption of goods and products that are imported or manufactured locally. Theoretically, on the basis of tenders made in January, it is antici;-

pated that consumer goods worth over 2 billion FMG [Malagasy francs] will find

themselves on the local market in the weeks ahead. In other words, the various shortages so frequent in recent years will gradually disappear. At the

same time, the different production units enjoying monthly support of some

4.5 million SDR (slightly higher in American dollars) in spare parts and

consumable expenditures will see their fate gradually improve. In sum, the

fixed duty of 10 percent on each tender has scarcely discouraged businessmen;

far from it, when one realizes that the total amount of tenders last month

amounted to some 11 billion FMG.

The goal is now to see that Malagasy foreign trade is not is one direction

only! Exports also deserve better treatment. In volume, they represented

only 307,000 tons in 1985 (790,000 tons in 1970). In this connection, the

institution of an export bonus that required the unblocking of a budget of

15 million FMG by the government should encourage all businessmen to double

their efforts. Nor must administrative procedures be what they once were.

Let us note the frankness on the part of the Professional Group of Approved

Customs Commissioners of Madagascar (CPAD), which said at the Foreign Trade

Week in Tamatave last December: "Let us admit that the more complex the

procedures are, the better for approved customs commissioners. Actually,"

26
it continued, "businessmen completely worn out by formalities connected with

the operation no longer have the strength to get their own goods out of customs." These import and export complexities discourage entrepreneurs and

dangerously weaken the /national economy.

Regarding foreign trade, too much red tape often encourages some businessmen

to "liquidate" all their products on the domestic market instead of exporting,

meaning "losses for the country. According to official documents, governments

that have made their system more flexible have achieved savings of up to 70 perpercent on the cost of the paperwork (in the broadest sense of the word). For

example, in 1974, the United States, which has fortunately simplified the

different forms to be filled out for import-export operations, wasted $8 billion on paperwork. Let us hope that Madagascar will choose the right path

in order to make the circulation of import and export goods more fluid. A

great effort remains to be made.

Small Importers Criticize Tax

Antananarivo MADAGASCAR MATIN in French 4 Feb 87 pp 1, 6

[Article by Franck Raharison]

[Text] Without question, the RIL (Liberalized Import System) continues to

make waves in various associations or organizations of businessmen. In this

connection, we have seen that the establishment of the fixed rate of 10 percent is not unanimously supported by the economic operators involved. One

voice was finally raised yesterday to indicate to the press the reasons why

few national importers spoke out at the time the RIL was launched in January.

That voice belongs to the president of the Malagasy Merchants Union (SMpiMa),

Alfred Raboanarijaona, who is also head of the Commerce Section of the Chamber

of Commerce and Industry of Antananarivo and general director of SOMADITO.

He is one of the Malagasy businessmen most active in Japan.

According to him, Malagasy businessmen, at least those who own PMI-PME [Small

and Medium-Size Industries and Enterprises], are happy with the new import

system, but fear that the measure will help those with enormous financial

means, to be more precise, those with the possibility of paying cash for

10 percent of the total amount of the tender.

According to Raboanarijaona, it was decided, in the course of a meeting of

businessmen held toward the end of December 1986 at the Chamber of Commerce

and Industry of Antananarivo, to send a letter to the proper authorities

asking for elimination or a reduction of the fixed duty. In addition, the

majority of the national participants in this assembly of businessmen agreed

not to subscribe to the RIL before obtaining a response to the demand sent to

the ministries in question. However, some Malagasy importers broke away from

that action and movement, a movement that is in no way reprehensible and whose

only purpose is to defend the legitimate interests of the "small" local

importers, Raboanarijaona told us in substance. "The most surprising thing,"

he continued, "is that it was those who had demonstrated a certain enthusiasm

27
for the elimination of the 10 percent who were the first to participate in

the January 1987 tender."

Given this lack of cohesion, the every-man-for-himself attitude, Raboanarijaona

said, national businessmen in question have decided, for the month of February,

to import through the RIL, while waiting for their motion sent to the authorities concerning the 10-percent fixed rate to receive a favorable response.

Consequently, the some 150 professional Malagasy importers counted will be

present in the next RIL tenders.

In addition, the president of the SMpiMa is worried about the government's

failure to pay sums deposited by importers in the past 2 or 3 years under the

SGS (1.4 percent of the tender value), while the importers have not enjoyed

the slightest import quota during that period. Another concern of Raboanarijaona is that the profession of importer in Madagascar might gradually slip

away from nationals because of the charges, taxes and duties they now have to

pay.

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28
MADAGASCAR

COMMENTARY ON PRESIDENT'S SPEECH

Antananarivo MADAGASCAR MATIN in French 15 Jan 87 pp 1, 6

[Article by Arsene Ralaimihoatra: "How About Everyone Finally Playing the

Game?"]

[Text] The chief of state's (great) annual message to the nation was, as it

always is, an event. The presidential speech delivered Monday morning, as

part of the ceremony for the presentation of greetings, has since been diversely commented upon. It was an address long awaited, if ever there was one,

dictated by the current circumstances, not the brightest, one has to admit.

At any rate, it was an ideal opportunity to size up the situation.

It was a shrewdly moderate address in which the president, faithful to himself,

tried once again to wager on the future: food self-sufficiency by 1990, the

"socialist paradise" being a more distant objective. But in order for the

latter to be achieved, the entire country has to be in on it!

That was the main lesson to be derived from the presidential message. But —

and this is what one fervently hoped to hear Monday from the mouth of President

Didier Ratsiraka — the rules of play are not as well obeyed as one might

imagine.

Regarding the need to maintain our relations with the IMF, the World Bank and

other organizations or countries that are financial backers, the demonstration

presented by the chief of state could not have been clearer or more concise.

On the other hand, one also had the right to expect the president to shout

"Foul!" with regard to all the destroyers, the awkward customers, who are

not necessarily political adversaries but rather, persons without a conscience

and with no respect for the law who take advantage of the situation to get

rich illegally, create shortages and use the "risoriso" or black market. Sometimes, fallacious arguments take them very far. Therefore, once more, as the

president said Monday, the current sugar shortage is the work of saboteurs.

Good people will one day finally tire of being taken in once too often!

Regarding loans, we must not disappoint the trust of international backers,

making deliberate use of their credits and establishing a real development

policy, with all that entails in the way of good, sound management of national

affairs.

29
The set of ten new measures announced by the chief of state, while it did

give rise to some enthusiasm, nevertheless leads one — 72 hours later — to

fear a sudden price spiral. Already, it is feared that the 10-percent wage

hike, the announcement of an imminent increase in the price Of fuel, will

ipso facto create galloping inflation. However timely and realistic they may

be, these new measures, in the absence of careful vigilance, would open the

doors to all kinds of abuses. At the same time, a resulting domino effect in

the cost of living would penalize the pockets of low-income families.

This presidential speech requires a collective awareness. Its main merit will

be to have been rational and concise. At times, the chief of state was guilty

of omissions, but he can be forgiven. To speak of a liberalization of the

economy because upper-level personnel in national enterprises were a bit too

anxious to receive an extra month's bonus is not enough. There is also the

incompetence of some of their officials and aides, the fishiness of some and

the laxity of others.

The time of long evasiveness is past, to say nothing of pious wishes with no

future. To use a famous expression that has certainly seen its day, but is

no less pertinent: "Acta non verbal"

11,464

CSO: 3419/102

30
MADAGASCAR

GOVERNMENT GRANT PROVIDES HOPE FOR EDUCATED UNEMPLOYED

Antananarivo MADAGASCAR MATIN in French 17 Jan 87 pp 1, 6

[Article by Adelson Razafy]

[Text] The large number of students enrolled in our universities has quite

naturally resulted in an increase in the number of those with university

degrees. While they once enjoyed easy access to jobs, the current situation

no longer affords them such security. In fact, the limitations imposed by

balancing the government's budget and the nature of contracts we have made

with international finance organizations have considerably reduced possibilities of hiring by the government, the main provider of jobs. Victim of the

economic recession, the private sector now finds itself in the same boat,

meaning that the atrophied, anemic labor market metes out jobs as if from an

eyedropper.

Caught in the impasse, our university graduates have been forced into the

ranks of the unemployed, a painful situation if there ever was one, for these

intellectuals, in whom we had placed so much hope, are reduced to live off

their families. Their already difficult condition is worsened by despair,

caused by an economically stagnant situation that hints of nothing better

on the job market. We do not always realize what is happening because our

peaceful daily existence conceals many problems: the swelling of the ranks of

unemployed, especially those with degrees, the precariousness of their living

conditions and the despair into which they are plunged, all creating an eminently explosive situation. We recently witnessed the formation of an association of unemployed university graduates whose members expressed their anger

from the very opening meeting.

Creation

In this context, marked by vague tension, the recent statement by President

Didier Ratsiraka concerning a project to grant financial assistance to unemployed university graduates in the creation of cooperatives, PME or PMI

[small and medium-size enterprises and industries], was welcomed by those

concerned with relief, hope and enthusiasm.

31
For intellectuals without jobs, in fact, the proposal gives a glimpse of new

prospects and promises a less gloomy future. If the measure is applied, it

will respond to their expectations perfectly. Actually, unemployed graduates

who, in their job search have been rejected everywhere, have come to dream of

an independent job in which they could give the measure of their worth. They

have ideas, the technical knowledge and good will needed to succeed. Unfortunately, they lack the funds to start their project, that sinew essential

to the success of any enterprise. Evoking the promise of a government subsidy

for them, the president rubbed salve on the hearts of many of our unemployed

intellectuals.

It is a praiseworthy idea, this complementariness of technical knowledge of

individuals and government funds, for the effect can only be beneficial to

the nation's economy and social situation. The government, in fact, cannot

be responsible for all domains involved in economic development. By giving

unemployed graduates the possibility of occupying sectors useful to promotion

of the economy, it creates a fabric of enterprises and cooperatives that will

generate goods and therefore, prosperity. Graduates of the polytechnical

universities will go together in small units manufacturing soap, oil or

sugar. Students graduating from the technical high schools will be responsible for operating foundries, cabinet making or construction. Those in

agriculture will set up ranches or rice plantations.

Obviously, these activities, beyond the fact that they bring in resources and

therefore, jobs for our unemployed, will also constitute a very consistent

contribution to our national economy. Rather than plunging into the creation

of isolated units, without any real connection with the economic environment,

our students, who have all the competence to do so, will found interdependent

vertical chains that are economically more viable and more judicious. For

example, those in agriculture will develop a peanut-growing area, while those

from the polytechnical schools will operate small oil extracting or refining

units. Those who graduated in management will operate cooperatives or edible

oil marketing and distribution centers.

When the government takes up the task of distributing subsidies (or credits?),

those who handle the directly productive sectors will certainly be privileged

for obvious reasons. Will liberal arts graduates and those going into the

liberal professions (the most numerous among the unemployed) be excluded from

governmental favors? For the time being, nothing would indicate this, although

their activities manifestly have no priority elements in the national effort

of economic promotion. Actually, to give the nation this salutary momentum

toward recovery, it is important for the effort to absorb unemployment and

toward economic rehabilitation be extended to all sectors of public life.

Subsidies would enable liberal arts and scientific graduates to open educational establishments that would be useful to the current effort to improve

the system of education. Medical students would have the possibility of

setting up private clinics needed to promote public health, while those graduating in economics and management could open accounting, auditing and

consulting firms. The credits released would certainly not cover all these

32
apparently disparate activities, whose effects would nevertheless contribute

to the nation's well-being and prosperity. Whatever the case, it is fitting,

in the distribution of allocations, not to create bitterness and jealousies.

Development of all sectors of national life can only bring general prosperity,

which will itself generate jobs.

11,464

CSO: 3419/102

33
MADAGASCAR

FARMERS UNION WANTS COMPLIANCE WITH RULES

Antananarivo MADAGASCAR MATIN in French 4 Feb 87 pp 1, 6

[Article by R.J.A.]

[Text] Following its recent meeting in Sambava, the Federation of Farmers

Trade Unions, the CTMC and the FMM [Malagasy Workers Federation]/SAPEVA of

Sambava, recalled the words spoken by President Didier Ratsiraka at an interview he granted to LE FIGARO in September 1982: "Henceforth, I want neither

a monopoly nor uncontrolled liberalism. We need the temper of the private

sector and the power of a national company."

At the same time, the Federation supports the statement made by the president

of the FIV-MPA-MA and published in the monthly information bulletin of that

group of private businessmen in May 1986, according to which "if we want to

be protected and see the application of orders and laws in our favor, then

in exchange, we shall have to exercise responsibility by scrupulous respect

for the truth and existing legislation, avoiding the 'risoriso' or black

market, while using sound management in our respective enterprises. In this

way, we shall be able to win the trust of the Fanjakana and that of international financial backers."

Therefore, in order to avoid "uncontrolled liberalism," producers belonging

to the Federation of Farmers Trade Unions of Sambava believe that we must

strengthen and apply the provisions of Order 65-046 of 10 February 1965,

particularly those of Articles 6, 8, 9, 12 and 13, which require that "any

person requesting approval as a collector must meet the following conditions

so as to be able to keep records, accounting documents and control of the

movement of purchases and sales of products and properly keep all administrative or accounting documents that might be demanded: know how to read, write

and speak Malagasy or French or, if not, be able to be represented by an

employee who is not a minor and who meets these conditions."

Article 8 stipulates (in application of the new Article 24 of Order 60-129)

that a collector is forbidden from buying a standing crop or any equivalent

practice or from marketing a stored product before the opening date set for

the season (...). As for Article 9, it states that "any purchase from the

producer must be made using a bare scales and paid for in cash. On this

34
occasion, the collector must Issue a receipt showing his name, address and

statistical identification number taken from a paginated booklet, keeping the

stub (.. .)•"

In short, it is more than explicit in this statement by the Federation of

Farmers Trade Unions that the essential thing consists of obeying and applying

existing laws, in the general interest, in other words, in order that there

be "neither a monopoly nor uncontrolled liberalism." It should be noted that

the Federation has over 10,000 families of producers scattered over the

fivondronana [unions of village associations] of Antalaha, Sambava, Andapa,

Vohemar and Maroantsetra.

11,464

CSO: 3419/101

35
MADAGASCAR

MEASURES TO CONTROL INFLATION TERMED INEFFECTIVE

Antananarivo MADAGASCAR MATIN in French 17 Jan 87 pp 1, 3

[Article by Adelson Razafy]

[Text] Commanding, the market price lists are conspicuously posted over all

the shops, stalls and markets in Tananarive, a living reproach addressed to

all the merchants who would dare to raise their prices too much. Just before

the New Year festivities, in fact, the fivondronana [union of village associations] of Antananarivo-Renivohitra published an order establishing the costs

of goods and merchandise for sale at the municipal markets, as much to prevent

the price spiral occurring during such periods as to regulate outside trade,

far too anarchistic, once and for all. In order to give maximum publicity to

this list of common prices, the fivondronana had wisely decided to post them

at the very sites where they risked being violated, which has brought us

these spanking new signs, a real innovation at the market places.

The intention is good and the measure is a step toward protecting the consumer.

However, its application is most difficult and consequently, the message of

these fine signs planted in the middle of the markets may well remain a dead

letter. There is indeed a Market Control Department, as well as a Joint Economic Intervention Squad (BMIE), whose effective sorties sow terror among

black market sugar, flour or oil merchants, whose prices are obviously

unlawfully high. However, their intervention is not always crowned with

success, as one can see in the case of poultry vendors or green grocers, who

generally do not post their prices and who can therefore charge exaggerated

sums, while having the possibility of going back to the official prices as

soon as they get wind of a member of the Control Department. Just before

Christmas, at the time of peak crowds in Analakely, farmers offered turkeys

for 12,000 francs, while not far away, the price list gave the top quote as

10,000 francs. Publication of the official list should have been matched by

the requirement to post prices, in order to be more effective.

Kapoaka

In addition, certain units of measure mentioned on the price list are sufficiently evasive to allow any practice detrimental to the customer. For example,

the "bunch" (from 550 to.' 850 francs for aspergus, for example) or the "pile"

(from 200 to 300 francs for cucumbers) does not correspond to any precise

36
quantity. This vagueness enables dishonest vendors to violate official prices

in an oblique manner. Where units are stated and determined precisely, as in

the case of the kilogram or the "kapoaka" (contents of a condensed milk can),

strict control must be exercised because in using Roman scales whose graduated

arm has been filed down or the kapoaka with the fake bottom or whose diameter

has been deliberately reduced, dishonest merchants create a sly means of

getting around official prices.

Given the thousand and one tricks used by many of our vendors to illegally

inflate profits, officials will have their jobs cut out for them in ensuring

respect for price lists. At any rate, at the market as elsewhere in the field

of commerce, prices are determined more by the law of supply and demand than

by well-intentioned bureaucrats. Despite the price list, no policeman could

force a merchant to sell at a loss a product whose Cost price, due to the

scarcity, has risen above the ceiling price. Inversely, during a period of

abundance for a given product, the list could not oppose the market mechanism

which irresistibly takes the cost below the minimum.

Carefully studied and meticulously drafted, the official price list can only

give an indication of what is considered reasonable and must be obeyed. However, in order to eliminate the many abuses that prevail at our markets, we

must create the necessary conditions encouraging our peasants to produce more

and in abundance. The laws of the market would then dictate the most suitable

prices, better than any official price list could do.

11,464

CSO: 3419/102

37
MADAGASCAR

BRIEFS

DPRK RECEPTION—Late in the morning on New Year's Day, Djeung Thai Hwa, ambassador of the Democratic People's Republic of Korea, invited members of the

press in the capital to a showing of a film documentary, followed by a

luncheon in Ambohibao featuring typical Korean dishes. Djeung Thai Hwa

took advantage of the opportunity to express his wishes for happiness and

prosperity to Malagasy newsmen. He also hailed past action of the Malagasy

press and the Democratic Republic of Madagascar for the "free and independent

reunification of the two Koreas, action which the DPRK, under the leadership

of Kim Il-song, has greatly appreciated." He referred to the "marvelous"

relations existing between the Malagasy and Korean peoples, who have always

helped one another in their march toward the victory of their common cause,

to wit, the fight for socialism, the reunification of the two Koreas and

the establishment of peace in the world. [Excerpt] [Antananarivo MADAGASCAR

MATIN in French 15 Jan 87 p 6] 11,464

EDF FINANCING FOR AGRICULTURE—Within the framework of implementation of the

Sixth EDF, that European institution has just approved the first project proposed by the Democratic Republic of Madagascar. It will finance the Miniprojects for Action Outside of High Density Sectors, as well as supervisory

costs, or 55 percent of the total scheduled for such miniprojects. Financing

therefore involves a sum of 3.63 billion ECU [European currency unit] (about

3 billion FMG [Malagasy francs]) in nonrepayable subsidies. In addition, a

proposal will be drawn up in the months ahead to finance miniprojects in high

density areas. It will involve a sum of 2.97 billion ECU (about 2.25 billion

FMG). Consequently, the total EDF commitment for the miniprojects comes to

6.6 million ECU (about 5.25 million FMG). It should be noted that action

outside the areas of concentration to receive financing cover the following

fields: rehabilitation of farm access roads or trails; development of production (storage, development of fields, and so on); rural water and electrification projects; and the social infrastructure (SFF, SAFF, health stations).

[Text] [Antananarivo MADAGASCAR MATIN in French 15 Jan 87 pp 1, 6] 11,464

DOCK WORKERS END STRIKE—Dock workers at the Port of Toamasina, on strike

since 29 December, have gone back to work, thus relieving a situation that in

the long run could have hurt the entire island's source of supplies. Negotiations underway for several days between the General Port Administration and

the strikers, which required mediation by Prime Minister Desire Rakotoarijaona and Minister Bedo Joseph (MTMT), have therefore led to solutions that

38
are acceptable to both sides. The dock workers' demands concerned the granting

of a so-called "13th month." In its place, they will receive a special yearend bonus to help them, at least for the time being, meet the increase in the

cost of living. The amount of the bonus varies depending on the individual and

their wage classification. In addition, the General Port Administration has

decided to increase wages starting in July. Once again, it has been shown that

only rational dialogue can unlock the most inextricable situations and solve

the thorniest problems. Concerning this dock workers' strike in Toamasina,

however, a certain concern continues. Actually, the solution of the bonus is

totally provisional and consequently, the same problem may arise again toward

the end of the year. A good 12 months remain during which a final solution

can be found, one that will remove the apprehension of shipowners, who for a

number of years have hesitated to send their fleet to dock in Toamasina in

December and January. To find that solution, the necessary time must be taken.

At any rate, the board of directors of the Autonomous Port of Toamasina, at its

first meeting of the year, in addition to other matters, has so far spoken only

of increasing the port's budget. [By P.M. and J.H.R.] [Antananarivo MADAGASCAR MATIN in French 19 Jan 87 pp 1, 6] 11,464

CSO: 3419/102

39
MAURITIUS

BRIEFS

1986 TOURIST STATISTICS—Paris (AFP/ANTA)—In 1986, Mauritius welcomed

156,000 foreign tourists, beating the record set in 1985 (148,860), Cyril

Vadamootoo, director of the Mauritian Office of Tourism, announced in Paris

on Tuesday. The increase (4.7 percent) should continue in 1987, Vadamootoo

says, due to the organization starting in September of the first International

Festival of the Sea in Port Louis. The event, involving 22 countries and all

sectors and all disciplines relating to the sea, will feature the arrival of

sailboats, repeating the.historic Portmouth-Perth (Great Britain-Australia)

voyage. There will also be sports events and a scientific colloquium.

Another reason for Vadamootoo's optimism is the drop in air fares. The main

French promoter of trips to Mauritius, the MVM, has announced a 12-percent

reduction in rates for next summer compared with the last season. France

became the main source of tourists visiting Mauritius in 1985 (35,630 for

Reunion and 27,410 for the capital), with South Africa (27,410) in second

place. Mauritius has a "good-will ambassadresss" in France in the person of

Princess Stephanie of Monaco. [Text] [Antananarivo MADAGASCAR MATIN in

French 5 Feb 87 p 2] 11,464

CSO: 3419/101

40
NIGER

EDF IRRIGATION PROJECT IN NIGER

Niamey LE SAHEL in French 10 Feb 87 p 2

[Article: "EDF Delegation Visits Niger"]

[Text] A European Economic Community (EEC>~deiega-t±on, which included Smida,

chief of the Sahel section, and •Peretti->;;.Jieachbf the mission for Niger, has

just completed a 1-week visit in:" pur* country. The purpose of the meeting

was to have talks with Algerian authorities (the ministers of Agriculture,

Trusteeshipi Healthj Public Works and Living Conditions, Mines and Energy*

Trade* Industry, Transportation, and Planning).

The talks had to do in particular with Implementation of the VI EDF (European

Development Fund), which includes three broad sectors: irrigation of surrounding areas, small scale irrigation by means of wells and drillings, and

maintenance of roads.

In the case of the latter sector, financing (in the amount of 15 million) is

available and operations will start before the end of the year. The same is

true for small scale irrigation. The recent talks have made it possible to

"wrap up" the financial account (21.5 million); work will begin during the

first half of this year.

Finally, with respect to the first sector, which is the most considerable

financial part of the VI EDF (60 million), there are on-going negotiations to

render viable the already existing perimeters and to consider the establishment of new outlying areas. There is an interministerial committee to conduct

discussions that include other associated sources of financing and to bring

about a solution.

Niger, a Sahelian country, will also benefit from a regional program to fight

against allowing land to become barren. It will be carried out through the

training of teachers and students for the protection of their environment.

The program then foresees the protection of reservoir banks, the promotion of

substitute energy through the use of firewood, improved combustion techniques,

and the introduction of complete exploitation of all methods by using renewable

means of energy.

41
The EDF also intends to launch an assistance project for garden produce in

AIR. It concerns a program that will take about 2 years, which was agreed on

in 1983, and which aims at restoring or sinking 750 wells; the purchase of

depleted animals, and trading and training. Materials are supplied by

Denmark and the EDF agrees to financing in the amount of about 750 million f

for the realization of this project, which affects about 8,000 persons and

which the delegation was desirous of visiting.

8255

CSO: 3419/99

42
NIGER

ITALIAN AID FOR WELLS IN NIGER

Niamey LE SAHEL in French 9 Feb 87 p 2

[Article by Sido Yacouba: "An Italian Delegation Inspects Wells"]

[Text] An Italian delegation, headed by the executive secretary of the

Italian Assistance Fund, left Tahoua yesterday for Zinder after a 24-hour

visit. This visit made it possible for the delegation to visit, together

with the prefect of Tahoua, several projects realized through the Italian

Assistance Fund, in particular some wells in the Konni and Illela districts.

Of the 50 wells initially provided for by the first stage of the Fund, 45

have already been realized. The Italian Assistance Fund project began its

activities in March 1986 and expects to realize a total of 500 drillings in

the department of Tahoua. This operation will affect more than 500 villages.

The second phase of the project will concern the districts of Keita, Tahoua,

and Illela, where it is anticipated that 540 drillings will be made and that

engineers will be trained to maintain equipment.

The delegation also visited the new maternity hospital of Tahoua, which is in

the process of being completed. Financed with more than 120 million by the

Regional Development Fund, this maternity hospital has a 50-bed capacity and

is equipped with a laboratory and three departments (surgery, administrative,

and medical). Its equipment will be assured by the Italian Assistance Fund,

which in addition will provide for sending a doctor.

8255

CSO: 3419/99

43
NIGER

NIAMEY SOLUTION TO INFLATION URGED

Niamey LE SAHEL in French 17 Feb 87 p 1

[Article by Adamou Garba: "The Spirit of Resourcefulness"]

[Text] Niamey, an agglomeration in the process of full expansion, is

experiencing the same problems, due allowances being made, as those of big

capitals, both African and European. The problems of housing and transportation, among others, are those that are encountered daily by its workers.

If one adds to the difficult economic situation standstill salaries and

an ever-increasing high cost of living, one can then understand that the

problem is one of survival for these workers.

And since there are no secrets when it comes to economics, how can one explain

that with an average monthly income of 50,000 f (CFA) one can provide for the

essential needs of a family in Niamey? There is no rational explanation for

the situation. At the very most, we have recourse to other means of analysis

which completely escape economic logic that requires one to spend what one

earns. ~

As a consequence, all reasoning becomes almost impossible when it is known >

that civil servants may not engage in other profitable activities. And even

if doing agricultural work is still permitted, even encouraged, during the

rainy season, it is not very easy for a certain category of workers to

participate in this activity. The reasons are simple. The distance of

cultivated areas and the lack of material and financial means remain definite

handicaps.

Actually, Niamey is in the process of becoming the size of a real cit y, one

that makes it impossible for its inhabitants to live solely from their

income.

Purchasing power depreciates constantly, rendering a livelihood still more

difficult. That is why it is now worth giving completely objective consideration to the matter, in order to find a solution that is suitable for all...

8255

CSO: 3419/99

44
NIGER

BRIEFS

FRENCH WATER PROJECT COOPERATION—The prefect of Agadez, Lieutenant Colonel

Bagnou Beido, met last Friday with a French delegation, headed by the vice

president of the He de France Water Union, Chambon Christian, to discuss

cooperation between Niger and France in the matter of supplying drinking water

for the surrounding districts of the city of Agadez. The representatives of

the He de France Water Union are on a visit to Agadez to ascertain the

technical and financial means needed to implement a water supply project in

the district of Dagmanett (Agadez). "This type of cooperation falls within

the framework of the development of North-South solidarity, beginning with

local undertakings aiming at strengthening human, social, economic, and

cultural ties," said the prefect of Agadez. [Text] [Niamey LE SAHEL in

French 10 Feb 87 p 2] 8255

RUSSIAN AID NOTED—The Embassy of the Soviet Union held a reception Thursday

evening to celebrate its 15 years of diplomatic relations with Niger. As a

result of this cooperation, 200 Nigerian specialists have been trained in

Moscow and in other Soviet cities and many Nigerians are now being educated

in the Soviet Union. Public health, culture, and sports are other fields of

cooperation between our two countries. [Text] [Niamey LE SAHEL in French

19 Feb 87 p 3] 8255

CSO: 3419/99

45
NIGERIA

GDR LOAN, EQUIPMENT FOR RURAL DEVELOPMENT

Kano SUNDAY TRIUMPH in English 15 Feb 87 p 1

[Article by Leke Salau]

[Text] NIGERIA'S

Economic Structural Adjustment Programme

(SAP) is to receive a

boost of, N600 million

(about .200 million U.S.

dollars) from the' German • .'Democrat ic

Republic (GDR).

The loan regarded in

diplomatic circles as the

largest from an East

European nation in recent times, is to lay emphasis on integrated

rural development projects. .

. Investigations at the

Federal Ministry of

Finance in Lagos during

the week revealed that'

N60 million of the loan

would be handled by the

Nigerian Industrial

Development Bank

(NIDB).

The bank will in turn

disburse - the loan to

small-scale industrialists,

particularly those that

arc agro-allied based in

the rural areasAgricultural equipment such as grain production machines,

tomato processing

machines and storage

material manufactured

in the ÖDR will also

form pan of the loan

package.

Ijt is hot stated wheii

the / final draft will be

signed, but sources at the

Ministry of Finance said

not later than the middle

of next month.

Further enquiries at

the: ministry revealed

that federal.government

officials made up of experts from agriculture,

finance and national

planning ministries have

shuttled between Lagos '

and East Berlin twice this

year, to ' conclude the

agreement.

Another high-powered

government delegation

likely to be led by the

Minister of Finance, Dr.

Chu Okongwü, . is to

leave Lagos for the GDR .

by the end of this month

for the final talks and

possible signing of the

loan agreement.

At the GDR Embassy

|n Lagos, a highly-placed;

official who preferred

annonymity confirmed

in a telephone interview

that, the loan.agreement

had reached an advanced,

stage and that.both parties would soon have a

round table conference

in the GDR for the final"

agreement,

. The official was optimistic that the loan, if

properly utilised would

boost rural development

in Nigeria.

Asked if the GDR

would ensure that loan

was properly used, he

said although no GDR

officials would be sent

here purposely because

of the loan, the issue of

adhering to the terms of

the agreement »voulcl be

taKerv care of in the

CSO: 3400/234

46
BABANGIDA ON SIDE EFFECTS OF AUSTERITY MEASURES

Kaduna NEW NIGERIAN in English 16 Feb 87 pp 1, 3

[Text]

NIGERIA

PRESIDENT Ibrahim

Babangida has said that the

austerity measures introduced

by past administrations in an attempt to revamp the economy

had some damaging side-effects

on the speedy recovery of the

economy.

President Babangida stated

this in an address read on ais

behalf by the Inspector-General

of Police, Alhaji Muhämmadu

Gambo.at the launching of a book

titled "The Nigerian Economy:

Anatomy ot a traumatisec

economy with some proposals for

stabilisation," written by the

Mnister of Finance, Dr. Chu

Okongwu,at the weekend in

Lagos.

He said some of the side-effects

were the aggravation of underutilisation of industrial capacity,

unemployment, inflation, decline

in the output of goods and services and increase in the external

debt burden.

President Babangida noted

that a review of the past policies

diowed that therewere a number

of pitfalls or "missing links" such

as stringent bureaucratic and

trade controls while the, other

was the lack of a realistic exchange rate policy with consequent over-valuation of the

Naira.

The President said the regime

of bureaucratic controls and

over-valued Naira had a number

of adverse consequences for the

economy, adding that most

serious of which were misallocation of scarce resources,

trade and foreign exchange

malpractices, corruption and loss

of adequate control by government in macro-economic

management.

He said it was because of these

impediments to speedy improvement in the economy that led to

his administration's adoption of a

radical economic policy reform

devoid of rigid controls, adding

that the reforms provided the

background to the launching of

the structural adjustment programme (SAP) lasting from July

1986 to June 1988.

President Babangida said SAP

was intended to restructure and

diversify production patterns,

minimise dependence on the oil

sector and imports and launch

the economy on the path of sustained growth.

He said the core of SAP was the

second-tier Foreign Exchange

Market (SFEM) whose main objectives were the achievement of

a realistic exchange rate, more

efficient resource alteration,

Emulation of domestic based

production and promotion of

capital inflow.

The President said the impact

of SFEM so far, has been

significantly favourable in terms

of more efficient resource allocation, export boost, enhancement

of the incomes of farmers, the

fostering of more rational conduct and quest for efficiency and,

most important, the improvement in goverment revenue at

the federal and state levels.

President Babangida said consideration would be given to the

suggestions on how the economy

could be revamped, some of

which were the creation of "plan

stabilisation fund," and "pure

reserve fund," as a set of

regulators for public sector investment and enhancing the

resource base of the economy.

He praised Dr. Okongwu for

writing the book and therefore

recommended it to policy

makers, workers, public servants., members of the armed

forces, academics, students,

businessmen other professionals

and the general reader.

The Inspector-General of

Police purchased 1,750 Naira

worth of the book for distribution

to service chiefs.

In his address, the author, Dr.

Chu Okongwu described his book

as "a work of love for one's own

country, a work of concern that

this potentially rich and great

country should find her feet

economically and embark on a

time-optimal stable adjustment

process, so that its proportion of

mankind should contribute its

valid quota to mankind's progress."

The finance minister said the

first quarter of the book was written before the advent of military

take over of government on

December 1983.

/13046

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NIGERIA

MINISTRY OFFICIALS TAKE OATH OF SECRECY TO STOP LEAKS

Kaduna NEW NIGERIAN in English 3 Feb 87 p 16

[Article by Omafume Amurun]

[Text] SENIOR and junior employees of the Ministry

of Transport and Aviation,

last weekend were sworn to

secrecy in a move by the

federal government to stop

leakage of classified

documents.

The Permanent Secretary,

Ministry of Transport arid

Aviation warned in a statement signed by F.O. Ojiah that

serious disciplinary action

would be taken against those

who did not take the oath of

secrecy.

Senior civil servants took

the warning to mean dismissal

from service.

Already copies of the 1962 Official Secrets Act are now on

display in federal ministries

following reports of pilferage of

official documents.

The Official Secrets Act of 1962

stipulated that it was an offence

for an officer to transmit any

classified matter to a person to

whom he is not authorised on

behalf of government to transmit

ft.

An inter-ministerial committee appointed to probe leakage of

classified matter made up of

representatives from cabinet office, Federal Ministry of Works

and Housing, and the State House

recently submitted its report to

(he head of service.

The committee identified mapr security lapses caused by

poor control of visitors' vehicles,

por lighting of office premises,

inadequate parameter fencing,

proliferation of photocopy

machines and lack of control.

Others were transmission- of

secret documents without security boxes, littering of files, failure

to administer oath of secrecv and

poor maintenance of relevant

records.

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48
NIGERIA

MUSLIMS SAID TO DEMAND MORE MEMBERS IN LAGOS CABINET

Enugu DAILY STAR in English 5 Feb 87 p 1

[Article by Jonathan Emereole]

[Text] LAGOS

Navy Cqpitiü

Akhigbe, was stunned on Tuesday when a three-man

delegation of Ae Motion

Council of Ntjtfia (MCN)

stormed ms office and ««lad

htm to reconsider «•

composition of Ml Sl-day-old

cabinet.

The spokesman or the delegation, Alhaji AMul Utffl

Masha, whose son, Dr Rauph

Masha» boWi' the finance

portfolio, deJmed that

Governor Akhigbe's cabinet

was dominated by Christians.

Alhaji Masha also claimed

that the governor'! cabinetwas

first to be so dominated'by

Christians to the last 16 years.

He remarked that the

Moslem community to Lagos

had expressed worry that only

three of Akhigbe's cabinet

members who were sworn to

last November 13, were

moslems.

He appealed to the governor

to re-consider "the compost

tion of your cabinet and

adequately Increase moslem

representation".

Replying, Governor

Akhigbe said that he never

gave thought to one's religions

inclination when choosing

members ofhis cabinet.

The criteria, be" said, were

the individual's field of

specialisation, knowledge of

Lagos problems, experienced

in both public and private

sector, fair local government

- partisan politics interest.

He expressed surprise at the

way people were taking religion

to the extreme.

According to Navy Captain

Akhigbe, neither Jems Christ

nor Mohammed was bom to

Nigeria. He said both preached

one principle ofservice to one

another, adding: "This' is (he

essence ofreligion".

He addressed the moslem

leaders to do everything

possible to ensure tetigloa

tolerance.

Also on Tuesday, the Anglican Bishop of Lagos, the Rt.

Rev Abiodun Adetiioye, paid a

courtesy call on Governor

Akhigbe.

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49
MINISTRIES, DEPARTMENTS ORDERED TO SET UP TRAINING PROGRAM

Lagos DAILY TIMES in English 9 Feb 87 p 24

[Article by Chris Obinagwan]

NIGERIA

[Text] JJk LL ministries and

extra-ministerial

departments have

been directed to set up

training committees to

increase the efficiency

and effectiveness of

workers.

This directive was

contained in a circular

issued. in Lagos by the

Permanent Secretary,

Service Welfare and

Manpower Department,

Alhaji Z.M. Kazaure.

According to the

circular, each committee

when set up, should have,

the secretary for finance

and administration or the

Director of a professional,

department as its

cnairman, while the

departmental Training

officer would serve as the

secretary.

It further directed, that

representatives on the

committee must be

officers on salaries not

below grade level 14.

The committes. _are

expected to develop and

harness the potentials of

officers fully, and prepare

them for higher responsibilities to make maximum

contributions to cu*wn*

and future operations of

their organisations.

The committees will

submit to the service

welfare and manpower

development department,

not later than September

30 of every year a

programme of training,

for the succeeding year.

The memo directed

organisers of such training courses to issue the

officials with both

certificates of merit and

attendance.

All course organisers

were also to issue

individual reports on each

participating civil servant

who should in turn write a

report.

It stressed that the

"Confidential Annual

Performance Evaluation

Reports", (CAPER)

should from now on

reflect the evaluation of

officer's performance

after a course he or she

had attended during the

period covered by the'

report.

The circular cautioned

against redeploying

officers who underwent

.training for the

performance of particular

jobs to other jobs until a

reasonable period of time.

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50
CONTROVERSY OVER CONTINGENT REVENUE ALLOCATION

NIGERIA

Lagos BUSINESS TIMES in English 16 Feb 87 p 1

[Article by Roseline Umesi]

[Text] A TOl

J\ billio

hsedov the

TOTAL of »2.460

billion has been reaGsecTby the Federal Government as contingent

revenue.

According to the breakdown, »1.7 billion was realised in respect of countertrade while »760 million

was realised from draw

down trade policy last year.

1!ie former director of

budget and a permanent«

secretary in the Ministry of

Finance« Chief O.A. Kuye

told the Business Times in

an interview that contingent revenue is not a

regular sources of revenue

but rather an urgent source

of revenue for the government to run its administration when the need arises as

was provided byJjiexonstitution.

The 1987 Budget made a

contingent revenue

estimate of N4.514 billion.

This provision of »4.514

billion has been causing a

lot of controversy on

whether it should be added

to the »17.861 billion of

thel987 Budget which will

in turn bring the total

expenditure to »22.375

billion. Also in this line of

argument itWill bring the

1987 Budget to a deficit of

»4.514.

However, opposing this

line' of argument supported

it with the fact that since

contingent revenue Is a Federal Government's affairs,

which is not liable for

sharing, that it wds not

necessary adding it to the

entire budget, moreover

when the money is not

regular.

Stressing the importance

of contingent revenue, Chief

Kuye said that it is the only

available sources of revenue

to run the Federal

Government in the case of

. emergency.

He illustrated tnis with

the 1986 market crude oil

situation, in which every

small amount was earned as

income -from oil sales.

Therefore he argued that no

government will fold its.

arm without finding alternative sources of revenue to

run the government.

The problem is

compounded by the fact

that the Federal

Government has no power

to utilize the federation

account until the money is

shared according to :fche.

constitution governing

revenue sharing, he pointed

out.

The government.chooses

the most realistic sources of

generating contingent

revenue which will not

disappoint it because of the

urgent need the explanation

continued.

Other * problems pointed

out by Chief Kuye is the

fact that the cost of

collecting federation

revenue is borne by the'

Federal Government alone

while the revenue is shared

among the three-tiers of

government the federal,

states and ' local,

government."

On this basis , he

suggested that the three

arms of government should,

share the costs of collecting

the revenue under the

federation account.

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51
NIGERIA

BABANGIDA PRESENTS DONATIONS TO OATUU

Kaduna NEW NIGERIAN in English 9 Feb 87 p 9

[Text] ORGANISATION of African

Trade Union Unity (OATUU)

has been told to encourage national trade unions to adopt

postures which would create an

atmosphere conducive to increasing the level of productivity of

workers.

Presidenl Ibrahim Babangida

who said this in Lagos at the

presentation ceremony of money

and material gifts worth 1.2

million Naira to the OATUU added that productivity was an important factor in economic

recovery.

The president who was

represented af the occasion by

the Minister of Employment/

Labour and Productivity,1

Brigadier Ike Nwachukwu, also

stated that OATUU should within,

its material and financial)

resources mobilise and embark

on projects which would generate

either self or paid employment in

areas mostly affected by natural

disasters.

The president said the government has noted the OATUU's appeal for financial and material

assistance, to enable it meet its

financial obligation and warned

that the organisation should not

allow itself to be used by any individual country or a group of

countries whether within or outside Africa, so that its independence would not be eroded.

He specifically drew the attention of OATUU executive to article 98 of the charter governing

the OATUU which forbids it and

its affiliates to affiliate to all international trade.union organisations.

The 1.2 million Naira financial

and material assistance to the

OATUU was made up of 250,000,

dollars cheque (1 million Naira

SFEM rate), two Peugeot station

waggon, air-conditioned cars,

two motorcycles, two duplicating

machines, two electric typewriters and two photo-copying

machines.

A one-minute silence was later

observed in honour of the president of the OATUU, Mr. Ali ElNefishy of Libya who died last

month.

Also speaking at the occasion,

,the acting President of the

•OATUU Mr. Adiko Niamkey of

Ivory Coast thanked the Federal

Government for being the first

African country to give the financial and material support to the

organisation.

He said that Africa was going;

through a difficult period which

was why both governments and

workers should cooperate to

achieve unity and peace.

Mr. Niamkey said OATUU normally should collaborate and

cooperate with African countries

but unfortunately he said the

organisation has no means now to

do so.

The Executive Secretary

General of the OATUU, Alhaji

Hassan Sunmonu said while giving a vote of thanks that the

financial and material support,

presented to the organisation

marked the realisation of promise made by President

Babangida to assist the OATUU.

He expressed appreciation for

the people of Nigeria for the

assistance and said the organisation still expect more assistance

from Nigeria.

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52
NIGERIA

PLANNING MINISTER ON 5TH NATIONAL DEVELOPMENT PLAN .

Lagos BUSINESS TIMES in English 9 Feb 87 pp 12-13

[Interview with Dr Kalu Idika Kalu, Minister of National Planning, by

Nduka Nwosu; date and place not specified]

[ Text ] TOBE Honourable

. Minister ofNational

/Planning, Dr. Kalu

Idflk. Kalo, «poke to the

Business Times a

.fortnight ago, on a

number ofissues related

to the economy. He was

taken up on the Fifth

National Development

Plan which he said

would be launched thia

year, Nigeria'« bilateral

agreements with other

countries, on SFEM and

«he 1987 Budget withits

deficit paekage.

Below are his anawen

tothe exclusive interview

with Business times

senior staff writer

NDUKA NWOSU.

FIFTH NATIONAL

DEVELOPMENT

PLANAND SAP

You recentl)

_, »on the Fifth National

Development Plan to the

visiting British Minister of

State (external relations),

Mrs. Lynda Chalker. \t will

be appreciated if you can

expose some of the details

of this plan along with the

15 years perspective plan

being constructed by your

ministry.

. As a rider, is the

Structural Adjustment

Programme — SAP also

part of the plan? If the

rer is in the positive

what isthe projectedlife

spanof SAP andbeyond

that what other,

development strategies;

under the Fifth

Development Plan willj

come up after SAP]

would have matured to

full cycle?

Answer: The most

important thing to

consider in this question

whichhas many parts to

it is that we intend to

ilaunch the fifth plan

sometime this year. It

iwill take into account all

<the macro-ecohomio

policies which we have

been implementing

since the coming to

power of this adminitration. Now. the

Structural Adjustment

Programme — SAP is

not a time barred issue

to something that i6 an

evolution of- policies

directed at, if you like,

requiring the various

sectors and sub-sectors

ofthe economy.

When you talk about

the maturity of the SAP

perhaps you might be

talking about the period

when the economy

would have been fully

put back on track. The

period, when the

productive sectors

are in a position to

commence optimum

growth whether you are

talking about agriculture

something in the range

of 4 per cent, industries

something in the range

of 12 to 15 per cent or

even higher including

the capacities that have

been already installed

including the

opportunities for

developing import

substitution, export

promotion, resource

exploitation and indeed

addressing some of the

heavy industries within

manufacturing and

infact, the services

sectors; of course, you

can take a growth rate

representing about 7 to

& per cent; and for a

rational growth rate —

GNP of about 8 to 10.

At that stage, it doesn't

mean that you will not

have one or «two other

problems, but that is

the way the economy is

expected to be either

you are having problems

of demand in terms of

being able to sustain the

growth of consumer

demand, investment

53
demand, or in terms of

rigidities in the supply

that cancreate inflation.

At that stage, you

assume that your

relative prices are about

right including your

exchange rate, your

interest rates and the,

tariff regime that will!

meet your needs for!

domestic production as

well as sufficient

protection against'

importation and so on

and so forth, while of

course, allowing for

competition for d o m es t i c

manufacturers.

Now, for the fifth plan

we are also looking at

the' need to extend the

1986 and 1987 budget

prescriptions which in

the first instance looked

at past projects that

were started* but have

to be completed to

emphasise the need for

fTiflintJtining installed

assets both within the

public and private

sectors and of course,

continuing the drive on

rural development ofthe

farm sector

development of on-farm

processing, storage, the

development of rural

infrastructures— roads,

communications, power,

and water supply.

And of course, the

exploitation of the cash

crop, sector, which had

been allowed hitherto to

decline, but which is

now being revived,

because' of the

inducement from the

export price being

denominated in naira

and properly adjusted

through the mechanism

of the Second-Tier

Foreign Exchange

Market (SFEM).

The five-year plan,

which we intend to run

this year will represent

as it were the first stage

ofa long-term plan,

which is going to bea 15

to 20-year plan.

Now, what that means

in effect is that by the

time we have prepared

the basis for (he 15-yearplan, we will be in a

position to know the

structural plan of

development of various

major sectors— power

communications,

education, health etc,

and with this broad

sweep over the longterm pattern of growth

that shall soon emerge,

we will be ina better

position to then finalise

or revise the five year

plans, that is the next

one which is the one that

will be launched and Xhe

one that will come after

it and the next one that

will come after that. The

project content will fall

oiitfrom this long range

over-view of the perspective growth path of

the economy. Nowa

hallmark of the perspective plan is long range

planning and ' very

detailed quantitative

work which will be

underpinned by sectoral

aüd sub-sectoral,

studies. It will involve

all levels of governmejtftlocal government^'state

government, and tfte

Federal Government.

It will involve participation by . consultants

from the various sectors

of the economy and participation by some of the

multilateral agencies—

the World Bank, the

EEC, in particular those

two because they have

the expertise for

sectoral werk. The

UNDP for example will

be involved anda lot of

the financing for the

studies is already

provided by them, the

multilateral agencies

and we are just going to

discuss with various

ministries to find out-

the range of topic and

the issues in each

ministry.. We are going

to take into account the

.work that is already

going on in some of the

ministries along the

same lines and then to.

see how we can complement it, how we can

extend it, to take

account of the time

frame for the perspective plan. So that is

.really how that stands.

And in summary, one

.has to say that for these'

two planning purposes

to be realised we have to

have the macro^ecdnomic policies which we

are trying to institute

through the Structural

Adjustment Programme

-SAP.

As it were, once you

have got your macrobase right more or less

right in relation to one

another, it is then

possible to superimpose

the five-year-plan and

the perspective plan on

it, so they are all;

•integrally related.

NATIONAL PLANNING INSTITUTE

AND MACROECONOMIC MODEL

Question: You may

.want to relate these to

the proposed National

Planning Institute, and

the much talked about

macro-economic model

on which the Fifth

National Development

Plan would be based?

Answer: It has already

Jjeen launched. It is to

providea kind of teaching workshop for those

who will be planning at

various levels to give

them the tools for

projects into the plan

and then plan monitoring that which has already

been set up. The macroeconomic models — we

are looking at various

models as various

models address various

issues. We are looking at

an input output model

which really relates the;

various sectors of the:

54
economy to one another.

So we can see where the

gaps are in terms of

filling in the

intermediate activities,

developing the natural

linkages between one

sector and. the other and

within each sector between various subsectors of each sector

such as the chemical

industry v is related tc

agriculture is related to

transportation and communication and so on

and so forth.

We also need a

comprehensive model

for addressing the

question of the trade

sector, import substitution and export promo-

• tion. We need predictive

models that can be used

for projections. So all

these we. are going to be

doing in collaboration

with the National Institute for Economic Research, (NISER) which

is a parastatal of this

ministry, with the

World Bank, and with

the. EEC which has

already had some input

into some of the models

that we have been looking at. So I think it is

absolutely essential in

order to capture the relationship between th€

various sectors and the

projection for the development of various tiers

of government that we

have a model that can

provide a sort of arthmetic compilation of the

various flows that can

quickly give an indication of the implication of

the Various growth

paths . and growth

patterns and linkages

between say the heavy

industries to the light

industries between the.

agro-based industries

and the other industries

which will depend on the

agro-sector for intermediate inputs of raw

materials.

ON BILATERAL

AGREEMENTS

Question: You '.old a

NAN correspondent

after your discussions

with Mrs. Chalker that

the purpose of the

bilateral discussions

was to strengthen Nigeria-British rela^ons,

review and expand areas

of technical assistance

and seek ways of

effecting the recently

reached agreement on

opening credit lines for

Nigeria. Can you please

spell out Tin details,

Nigeria's line of interest

in these discussions and

the extent of progress

made on opening lines of

credit for Nigerian

business and businessmen.

You may also want to

talk on other bilateral

agreements with other

countries in recent times

and the likely benefits

that Nigeria stands to

gain in each case.

Answer: I will give

you a general answer to

that. First what we have

tried to do in iho last

several months is to

touch base, with many

of the countries with

which we signed many

agreements in the past -

but which had just

remained as agreements

on paper. Clearly there

are two parts to our

interest. First there are

areas where we can

obtain" credit on very

long term with grace

periods which can be^

addressed to our infrastructures or small

industries. So it is to our.

advantage to have

agreements with

countries that can

provide this kind of

.financial assistance.

There are others particularly some of the African ,

countries where Nigeria's collaboration is

requested to help them

in resource development, expanding theit

various sectors.

These include Angola,

congo Republic, Nigeria,

Guinea, etc. There art

many of these countries

where there had been

clearly expressed desires

to see more Nigerian

official and private

participation in their

economies.

Going back to the

question of Britain, I

think that I might add

here that the kind of

growth which we envisaged for Nigeria

requires that we take

advantage of all facili

ties for exploring technological advantage,

financial advantage,

training advantage and'

it seems to me that in

the early 60s and 70s,

we tended to slack down

on our traditional relationship with many of

the European countries

— Britain, West Germany, France etc. Now

it is for us to define what

our objectives are with

those countries who

have the expertise and

capital and go straight

for the objectives.

Now that should not

in any way compromise

our foreign policy as you

know we stated them

very clearly. We could

not compromise our

foreign policy objectives

in Southern Africa

because.We want assistance from Britain.

Obviously We should

maintain that position

but we should also know

what specific technological or financial or training assistance that we

can get from these traditional trading partners.

—West, Germany is

one, France is another, the Netherlands

etc. So the issue is

really that we define our

own objectives, clearly

and then we go straight

for these defined objectives and we go into

global arrangements

where politicsinvariably

takes the upper hand,

you end up being in

55
danger of compromising

your position in very

vital areas and we

cannot afford to do that.

STATISTICS AND

TRADE DATA

Question: In yotir

last interview with the

Business Times, you

spoke extensively on

your ministry's plans to

keep a healthy and upto-date statistics of the

national economy. You

may want to tell the

Business Times the

amount of progress

made on our internal

data of statistics -and

the customs bill of entity

on which Nigeria's data

of external trade ?s

determined.

vAnswer: We haVe

specific plans for continuing improvement fln

our data base. The

Office of Statistics ha»a

programme which it his

been following. Indeed

what we discovered in.

further pursuing the.

details of this programme is that we do in fact

generate a lot of statfc

tics. There is sonte

measure of problem in

.actually collating and

using these statistics add

when you do not collate

and use the statistics

adequately there ts

'always that indication

that there are no

statistics than we are

utilising and I am talk

ing about sector statistics like transportation

data, agricultural data,

communication data

etc. Now there is a lot of

these out there. It isju$t

that in many of our discourses, we have not,

really improved the ease

with which we can

utilise these statistics.

But:'.: one area where

there had not also been,

much improvement

is in the area of trade

statistics.

Rather, there has been

an improvement recently but over the previous

year or two, one noted

that there was a lot of

discrepancy between the

data, collected from

customs and the data

that is collected from

other sources because of;

some discrepancy in

relating quantum index

which talks about the

quantity in pounds and

meters and whatever

and the value. And of

course once you mix up

! values and quantity

thenyour price becomes

a problem and unit

values of prices of

exports and imports are

very important statistics in determining

changes in terms of

trade for a country like

Nigeria that depends a

lot on oil exports and

' goods imports.

We need to be able to

tell whether the price

movements are

resulting in your favour

or against you. And

unless you have

adequate unit value

indices then you don't

have a clear estimate ofgains or losses due from

changes in the terms of1

trade which is a very

important adjustment

for GNP, GDP and so on

and .so forth. This is one

area where we feel that

with the new structural

adjustment requirements for financing

imports, the tendency to

overstate or understate

prices, and values and

quantities will be

reduced. So we expect

that over time the price

data will improve but on

the FOS side, clearly we

are going to improve the

computerisation, we are

allocating funds to them

to repair some of their

equipment.

And we are providing

opportunities for them

to train, to attend more

seminars, to improve

their skills so that all of

these could add in

improving the overall*

quality of our data

gathering and analysis,

you caii see how relevant that this could be if

we are looking at a fiveyear^ plan and even more

so for a perspective

plan. We should be able

to have basic indicators

expressed in constant

and current prices so

that the deflators are

right, and you can watch

changes in the real value

of your various

economic aggregates.

THE 1987 BUDGET

AS A DEFICIT

'.BUDGET

Question: Soon aftei

the . 1987 Budget was

announced to the nation

by President Babangida

and its subsequent

details spelt out by the

Minister of Finance, Dr.

Chu S.P. Okongwu, a

number of lapses were

detected here and there.

In particular the aspect

that exposed it to deficit

calculations even after

the former budget director Chief Kuye had discountenanced some of

the errors. In this regard

can you enlighten the

Nigerian public -on

whether the 1987

Budget is basically a

deficit budget?

Answer: The SAP

which was agreed

between the Ministry of

finance and the multilateral agencies, allows

for a measure of deficits.

The essence of the

Structural Adjustment

Programme (SAP) is that

you define the level of

56
deficit that is permissible in the sense that it

allows for that level of

deficit that will not

create inflation, that

level of deficit that you

can absorb because you

are tryjng Jbo take

account of the growth

that you can stimulate

with that measure of

deficit. So the question

of the 1987 Budget is

not a question of deficit

or not.

' The programme itself

allows for it and certain-,

ly within the limit that

was agreed upon. Now

the final estimates

which have been utilised

were based on certain

assumptions about,

changes on oil price,

certain assumptions

about the draw down on

already committed

amounts and also the

generation of non-oil

revenue. It was also

based on the formulae

for distributing revenues among the Federal

Government, state governments and the local

governments. So I think

it was wrong to argue

and debate whether it is

a deficit or not because

the programme allowsfor it. And that was'

taken into account in

making sure that we do

not unduly starve ourselves by adhering to a

budget that is solely

basedona balance inthe

sense of derived

revenues being exactly

equivalent to projected

expenditures.

CBN/SFEM

INTERVENTION

Question: Do- you

think the recent intervention by the CBN to

scale down the rapid and

upward appreciation of

the naira was inthe best

interest of the economy?

And does this type of

intervention not distort

the theory of supply and

demand in a free market

situation on which

;SFEM is based?

And as a follow-up to

the' above question,

what in addition to the

gradual decline in the

quantity of foreign

exchange made available to SFEM, is responsible for the regressive

performanceof the naira

against other currencies

at the SFEM.

Answer: I think the

Central Bank has

authority for the management of the exchange

system under the supervision of the Finance

Ministry. The way the

Second-tier Market is

expected to work is that

biddings should be free

and that the regulations

governing the bidding

should be adhered to by

all those who participate in it. Therefore, one

has to restate the fact

that it is supposed to be

a free mechanism .for

evolving the exchange

rates that will be

applicable for transactions, that are undertaken during that

period, and is supposed

to be a free evolving

exchange rate.

On the question of the

factors, that determine

the exchange rates.

Obviously in a situation

where you do not have

enough supply of

foreign exchange, and

where judging by the

amount of request for.

imports and other uses -

imports of goods and of

services, judging by the

amount that was

demanded as indicated

by say the value of total

applications for import

licence for instance, you

:an surmise that so long

as the demandcontinues

to be higher than the

supply chances are that

the rate will be low that

is the naira value will be

low in relation to the

other currencies.

Again as the SAP

.results- in changing

relative prices, it will

change the relative

benefits and costs of

doing particular business. So, some business may in fact,

not be entering the

market to demand

foreign exchange while

others may enter into

the market.

So the SAP itself

.determines those that

are going to be profitable to bid the market as

opposed to those who

were benefitingfrom the

import licencing

approach. Now as the

supply and demand

change in accordance

with the relative benefits and costs of the

SAP then the impact on

the market will determine whether the rate

should be going up or

down irrespective of the

supply of foreign

exchange.

Lastly, I think the

growth of the economy,

the perception of

increasing opportunities

will also determine

whether for instance

supply will come not

just from public sources

of funds but from other

sources of funds such as

direct transfers from

foreigners or Nigerians

abroad, that 'is

autonomous flows of,

-foreign exchange into

the system to take

advantage of opening

opportunities in

agriculture, trade or

industry and so on and

so forth. These are all

the factor« that will

determine whether the

naira value will go up or

down. But there is

nothing strange about

this up and down movement.

57
What is strange is the

assumption that the'

exchange rate should

not change. And you

know that was the posit-'

ion we took for a long

time which cost us

dearly. Now that we

have realised the need

for our currency to

fluctuate in relation to

business changes; I

think it is very healthy

for the economy, of

course it is disruptive

where those fluctuations

are wide, very wide, but

where they are within

certain bounds, it is a

healthy indication of the

business movement, of

the changes in the

economy, the development of new areas, the

changes in profitability

and changes in new

markets, new products

and so on and so forth.

ON SAP/IMF. IS SAP

BETTER THAN IMF?

WERE YOU RIGHT

THEN?

Question: While look

ing into the Daily Times

file on you since you

were appointed a

minister, one quickly

rode to memories of our

recent past, on options

open to the economy. If

you were to reflect on

the IMF and its loans

package for Nigeria,

would you say you were

right afterall, at that

time, in insisting that

Nigeria must go for the

loan? Or do you think

the current prescription

—the SAP for the ailing

economy is as good as

the IMF package?

Answer: I am surprised that you do see a

distinction between the

IMF and SAP. There

are two things. First is

the absolute necessity

to sort out the policies

that will address the

problems of the

economy. Once you have

sorted out the policies,

then you need the funds

to implement these

policies. Now that

decision has not

changed. All that we

have been talking about

is the need of funds to

run the economy. There

are two aspects to the

issue. The issue should

never have been based

on one. The issue is what

is the appropriate policy

pack age. Once you have

sorted out the

appropriate policy

package, you need the

funds from whatever

sources you decide to

obtain them. So that is

the way this matter

should be looked at. So

in fact, we are not

talking about two different things really.

NAIRA FLUCTUATION/FLOTATION

Question: With the

naira still fluctuating

like a yo yo, do you still

hold that floating the

naira as it is now done

through SFEM can

correct the imbalances

which will eventually

lead to our economic

recovery.

Don't you think that

the currency markets

may set rates that do

not reflect economic

fundamentals take for

instance the per value

of the dollar in the last

quarter of 1986.

Answer: Ideally the

exchange rate should

approach its long term

equilibrium stable rate.

That stable rate is not

really one rate, it is a

range of rates which

should reflect the totality of the productive

potential of the economy

because when your

exchange rate is

corrected that means

whatever you can

produce whether they

are traded or non-traded

goods are in fact,

reflective of the relative

price when you compare

it to the same goods and

services in other

countries. If you do not

have the totality of the

economy working auch

as where you have lare

unutilised capacities

and these unutilised

. capacities can be in the

form of personnel like

heavy unemployment or

large unutilised capacities of plant, then the

chances are that you will

;not approach the long

range equilibrium rate.

So the financial flows

should elicit growth

response for all sectors

of the economy, then,

you can afford to meet

your long term'

equilibrium rate of:

exchange.

As we revamp the

economy, we can only

move towards that long

term equilibrium rate.

So there is no clear

preferred rate at this

point, becaus indeed we

still have large

unutilised capacities

and we still have large

unemployment. That is

one thing this government is trying to tackle

and again this goes back

to your last question. To

get all these systems

working, you need the

funds.

Question: Since the

introduction of SFEM,

trading at the Nigerian

Stock Market has been

somewhat dull, would

yctu say the naira

squeeze is responsible

forthe low trading?

Answer: It would be

partly responsible; it

could also be a reflection

of changing benefit

costs. Before, where

there was so much rent

in the system so much

subsidy, so much over

valuation with the

58
system of import licencing the tariff regime

particularly, resource

allocation issue was

central. Now with the realignment of relative

prices, the business

sector also has to be readjusted and that would

in the meantime create a

sort of a lull in tghe

stock market.

It would also be a

function of the tight

monetary policy which

has been geared to

ensure that we do not

fully compensate for

changes in prices by

approximate changes in

money supply. But as I

said the danger there is

that we may not also be

taking full account of

the innate growth

potentialin the economy

because we are not

releasing sufficient

mobilising credit to

ensure that resources

can be mobilised tgo

create in goods which in

the final analysis will be

the most effective way

of controlling long term

inflation.

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59
NIGERIA

INDIAN HIGH COMMISSIONER ON COMMUNITY INVESTMENTS

Kano THE TRIUMPH in English 11 Feb 87 pp 1-2

[Text] The Indian High Commissioner to Nigeria, Mr. Deb Mukharji has said

that the Indian community in Nigeria has investments worth five billion

dollars in this country.

Speaking in an interview with reporters in Joz recently after visiting the

Plateau State Military Governor, Mr. Mukharji refuted allegations that the

Indian community monopolised the distributive trade in Nigeria.

He however agreed that his countrymen have reasonable investments in

agriculture, hospitals, fishiries and the textile industries.

On trade between his country and Nigeria the High Commissioner disclosed

that between 1979 to 1985 India imported 600 million dollars worth of oil

from Nigeria, while Nigeria bought goods worth 360 million dollars from

India during the same period.

The Indian envoy pointed out that despite the imbalance in the trade

between the two nations India was willing to buy edible oil from Nigeria.

He stated that his country imports one billion dollars worth of oil

from major producers annually

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60
CENTRAL BANK GOVERNOR ON FOREIGN EXCHANGE INFLOW

Enugu DAILY STAR in English 10 Feb 87 p 4

NIGERIA

[Text] THE Governor of the

Central Bank, Alhaji

Abdulkadir Ahmed, has

described as "a fascinating

trend" the foreign exchange

inflow into the country. ••,

He disclosed that during

. the last'three months of. last

year alone a total of 227.6

million US dollars accrued

from non-oil exports, invisible

transaction and

miscellaneous sources.

In his statement to the 18th

bidding session of the SFEM

in 11agos, Alhaji Abdulkadir

stated that the "foreign

exchange from autonomous

sources of funds was a vital

complement to the official

foreign exchange provided

for the market.

He also revealed that 49.8

million dollars accrued in

October, while November and

December supplied 75.2

million and 102.6 million

dollars respectively.

The Central Bank governor

pointed out that the irft'low of

102.6 million in December

roughly averaged 25 million

per weak; an amount, he

termed, "a substantial

addition to what was officially

supplied at _.the SFEM.

oidding sessions".

He said that the largest

amount came from the

miscellaneous sources

increasing from 24.3 million in

October to 49 million in

December. •

• Alhaji Abdulkadir added

that the inflow from invisible

transact:- provided 17.6

and 29 u-.i'iU--': dollars during

the resp'-'tive three months,

while non-oil exports

accounted for 47.1 million

during the .'period under

review.

He hoped that the trend

would riot only continue, but

"increase over time";

stressing that "it is our

ardent desire that funds from

private sources should

outstrip those the Central

iBank supplies."

' The bank governor pointed

out that the US dollar

continued its downward slide

against other major

currencies over the week,

averaging 1.5398 to one

pound sterling as against

1.5283 in the preceding week.

He added that it also stood

at 1.7965 to one Deutsche

Mark, 1.5091 to one Swiss

Franc, 5,9978 to one French

Franc, 2.0254 to one Dutuch

guilder and 151.9« to one

Japanese Yen.

On the first window, the

naira fell to »2.6113 to one

dollar as against H2.5954 the

previous week, he concluded.

The director of foreign

operations, Mr " Joseph

SoQOiku, warned that banks

that did not pay tip-the naira

equivalent of their winnings

to the Central Hank by 12

noon last Friday would lose

their winnings.

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61
NIGERIA

INDUSTRIES SEEK GOVERNMENT PROTECTION AGAINST COMPETITION

Textile Industry Seeks Tariff Protection

Lagos BUSINESS TIMES in English 2 Feb 87 p 16

[Article by Dapo Ajibola]

[Text] THE decision of the Federal Government to

commission sectoral studies

for the agricultural and industrial sectors in order to

determine the effective rate

of protection for each industrial group in the adjustment of the customs tariff

is good news for the

Nigerian Textile Association.

According to Mr. Oludotun Ilo, chairman of the as-'

sociation in an- interview

with the Business Times,

an early adjustment, before

the middle of the year, is

necessary, because the interim review of the customs

and excise tariff now in

existence has put the textile

industry in a precarious situation as it exposed the

local industry to unfair

competition with imported

textile goods.

If the interim review, he

said, was undertaken in

order to protect local industries against undue competition from imports, to

control the problems of

employment and inflation

and to encourage utilisation

of local raw materials by industries then the textile'

industry had' not been

protected.

However, instead of

doing this, the new tariff

had exposed the local

tion. [as published]

It is a thing of wonder to

see the tariff on silk reviewed from 36 per cent to 10

per cent when at the same

time tariff on cotton increased from 10 per cent to

20 per cent. For a hot and

humid climate like

Nigeria's the use of silk is

not suitable whereas it

should be of note that

cotton on the other hand is

the fibre that is best suited

. for the hot humid climate of

Nigera.

Therefore, there is no'

rationale for reducing

tariffs on the high luxury

item since silk is a fibre exclusive for the affluent in

any society, which are not

at all locally produced. And

,not essential for the generality of the population and

which indeed are not ideal

for the climatic condition of

the country.

Apart from silk, the new

tariff also dealt with1

imported yam. Mr. Ilo said

that the tariff on various

_ yarns had been reduced

fron. 30 to 15 per cent.

Ironically, the same Federal

posed a backward integration of the industry and

under this programme yarn

importation' was to have

been banned by October,

1984, but 1986 had been

only a reduction oftariff.

Quite a number of # the

new spinning mills in'the

industry had been approved

and in the last two or three

years granted import

licences for machinery.

Asmost of these mills are'

now about to commence

operation one would have

expected not a reduced

tariff on yam but an in-'

creased tariff at this particular time.

62
Petroleum Corporation Seeks Protection

Lagos BUSINESS TIMES in English 9 Feb 87 p 1

[Article by Ndu Ughamadu]

[Text] qpHE Nigerian Na*

J. tional Petroleum

Corporation (NNPC)/

has sought protectionfrom the Federal

Government against

prices of imported

petrochemical

products. This is to

enable it sell the

locally manufactured

ones which will be in

the market this year.

An authoritative

source from the PortHarcourt based petrochemicals sector of

NNPC told the

Business Times in

Lagos last week that

part of the protection

package was a proposal

on range of prices the

locally produced

products would sell

adding that if

, approved, this would be

below the "landed

costs ofimported ones".

It further said that the

new range of prices which

was not disclosed, was

necessary because with

the introduction of the

Second-Tier Foreign

Exchange Market

(SFEM), more petrochemical products

/13046

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particular^ polypropylene

would be imported into

the country, stressingthat

should prices of their

products be left the same

or higher than imported

ones — industrialists

would prefer to import.

This will keep them out

of business considering

' the huge volume of money

that has been invested in

•the projects more

importantly, where bulk of

the money included loans

from the international

export credit guarantee

scheme and other local

sources.

Our source said that the

cost of executing the first

phase of the petrochemical

project had risen because

cost of infrastructural

facilities like roads' are

added, stressing that in

many parts of the world

these were provided by

the government and never

added in the total cost

package.

It further noted that if

the government wanted

the petrochemicals plants

to operate on purely

commercial basis, it

should be ready to write

off some of the plants

debts.

Though initially, local

production of petrochemical products particularly polypropylene

would fall short of total

domestic demand the

protection was still

necessary in order not to

shut down the plants.

Under the projects,

three phases are

envisaged. The plants

which constitute -the

phase one are located at

Ekpan (Bendel State) and

Kaduna.

The three plants located

at Ekpan which form part

of phase one would

produce polypropylene

used in the manufacture of

bottle crates, car battery

casing, plastic containers,

heavy duty sacks for

agricultural products.

Carbon black is used

primarily for the manufacture of automobile lyres,

rubber hoses, eletrodes,

printing ink and paints.

The products from the HF

Alkylation plant are used

to improve the anti-knock

quality of gasoline.

The Kaduna Plant

would use kerosene and

reformate from the nearby refinery to produce

Linear Alkyl Benzene

(LAB), a base material for

the production of

synthetic detergents.

According to the

Petroleum Resources

Minister, Alhaji Rilwanu

Lukman, "The Ekpan

plant will be ready for

commissioning in the first

quarter of 1987".

63
NIGERIA

NLC CHAIRMAN DEMANDS WAGE INCREASES

Kaduna NEW NIGERIAN in English 13 Feb 87 p 9

[Text] THE President of the Nigeria

Labour Congress^ Alhaji Ali

Chiroma, said in Benin that since

manufacturers were allowed to

increase prices of thier products

with the introduction of Secondtier Foreign Exchange Market

(SFEM), workers in the country

ought to be given salaries and

.wages commensurate with the

rising cost of living.

Alhaji Ali said in an interview,

that "workers' salaries should

not be below cost of living, saying

that' 'the two should be at par."

He said "for now, it is just

hopeless, as prices of commodities had gone up three-folds

thereby making workers salaries

insufficient for their needs.

Commenting on the newlycreated directorate of labour

, which is to employ 1,000 people in

each state of the federation, Alhaji Ali said "itis a good attempt if

it will work".

He, however, said that the programme could not be an alternative to a well-articulated programme of offering jobs to the

unemployed.

He urged the government to

utilise the country's resources in

a way that everybody would

benefit and urged workers to be

united, in the struggle to bring

about an improvement in their!

living condition.

Alhaji Ali arrived Benin on a

three-day working visit to Bendel

State. (NAN)

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64
NIGERIA

PRODUCTIVITY BOARD RULES OUT SALARY INCREASES

Kaduna NEW NIGERIAN in English 19 Feb 87 p 24

[Text] NO revision of salaries and

wages will be permitted in both

the private and public sectors in

1987.

Normal increments will,

however, be allowed while adjustments in incremental rates

remain forbidden.

The Productivity, Prices and

Incomes Board announced these

under its Income Policy

Guidelines for the year, published in Lagos.

The board explained that the

measures were as a result of the

Federal Government's Structural Adjustment Programme intended to find solutions to the continuing problem of economic

recession.

The guidelines provide that

changes in salaries, wages and

fringe benefits should not be

back-dated except in the case of •

promotion or advancement of

staff.

Dividends up to 50 per cent of

the current year's after tax-profit

are permitted to be declared and

distributed, while a withholding

tax of 10 per centis payable on all

dividends.

The guidelines enjoin that

advertisements for the sale of

goods and services in the news

media should carry actual prices

as distinct from a range of prices

of the particular goods or ser-.

vices advertised.

In addition, the prices of goods

and services for sale must be

displayed in a conspicuous place

to guide consumers.

The board directs that deposits

paid by applicant distributors/

agents should attract interest at

the ruling bank rate as from

three months after such deposits

have been made.

It adds that such deposits

should be credited to the account

of the successful applicant, or

refunded, within six months, with

interest, where such application

does not succeed.

Failure to comply with the provisions of the guidelines attracts

penalty under section 5(2) of

Decree No. 30 of 1977.

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65
NIGERIA

STATE GOVERNMENTS ORDERED TO EMPLOY YOUTHS

Special Public Works Program Established

Kaduna NEW NIGERIAN in English 2 Feb 87 p 1

[Text]

FEDERAL Government has

directed all state governments to

employ with immediate effect

about 1,000 unemployed youth

under the special public works

programme (SPWP).

The acting director-general of

the National Directorate of

Employment, Mr. Dayo Ajayi,

said at a press conference in

Lagos yesterday that' the

Minister of Employment, Labour

and Productivity, Brigadier Dee

Nwachukwu, had written a letter

to all the state governors to implement the directive.

Out of this figure, he said, 200

were graduates while 800 were

non-graduates, adding that the

vacancies would be equally

spread among the local government areas in each state.

According to him, the directorate would pay non-graduates

150 Naira each while graduates

would receive 200 Naira monthly.

Mr. Ajayi also explained that

each state would receive 480,000

Naira for the first quarterwhen it

had been established that it had

fulfilled all the requirements of

the directorate.

This amount would be used in

paying the wages of the employed

youth, he added.

Those youth employed under

the programme would be engaged in public works such as

maintenance of roads, buildings,

bridges and dams and other environmental sanitation works, he"

added.

He enjoined Nigerians to support the directorate in order to

achieve success in the national

programme.

Answering a question, Mr.

Ajayi said that there were about

three million unemployed youth

in the country now, but regretted

thatthey have skills that were not

marketable.

He explained that such youth

would be trained under the directorate's national open apprenticeship programme with the

view of" making them selfemployed. , -

Mr. Ajayi also announced that

a survey was being conducted in

Lagos State in order to identify

how many vacancies exist in

some industries.

According to him, the national

open apprenticeship programme

was at the moment confined to

Lagos State alone, pointing out

that "other states and the federal

capital, Abuja would be brought

in later.

Answering another question, h»

said modalities for the disbursement of the 30 million Naira were

being worked out between the directorate and some banks, adding

that, trades available under the

national open apprenticeship

scheme include accountancy,

arts, building trades, civil

engineering works and computer

technology.

Others "are draughtsmanship,

electrical/electronics,

mechanical trades; music and

wood-works.

Trainees are expected to have

any of the following qualifications: primary school certificate

holders, S.75 (class iii), G.4

(class iv), West African School

Certificate holders, holders of ordinary national diploma and

equivalent, higher national

diploma and graduates, he added. -

66
Applicants Queue Up in Bendel State

Kano THE TRIUMPH in English 5 Feb 87 p 12

[Text] MORE than 5,000

unemployed graduates

and non-graduates of

Bendel State origin were

interviewed last week

under a special service

works programme

designed by the Federal

, Government to create

job opportunities in the

state, a source in the

•state office of the,

Federal Ministry of.

Employment, Labour"

and Productivity said in

Benin on Monday.

The source told the

News Agency of Nigeria

(NAN) that about 3,500,

malqswere interviewed in

the programme 'which

would create jobs for only 1,000 people.

He said that out of the

1,000 openings, 200

would be for graduates

•and the remainder fofj

non-graduates. • The source further

said that most of the ap-t

plicants opted for*,

employment in such nonspecialiSed areas as

sanitation work and

social services, but added

that during the interview

about 20 cases, -of

suspefcted certificate

forgery were recorded.

Applicants Register in Cross River State

Lagos DAILY TIMES in English 7 Feb 87 p 8

[Text] ^ ORE tW6,000 job

Jyl seekers turned up on

Thursday in Calabar for

1,000 jobs promised by

the Directorate for Food

and Rural Development in

Cross River State.

The applicants came

from the 17 local govern-

' , ment areas in the state in

answer to the directorate's invitation to all

registered unemployed

persons to attend an interview.

The premises of the

social welfare division of

: the state Ministry of

Information, the venue

for the interview, was

noisy and crowded, as

moat of the applicants,

having no place to sit or

stand, strolled around

while waiting for their

turn;

Despite the large

number, the interview

started smoothly at about

9.00 a.m. with the graduates and MND holders

called in first according to

their ,local government'

areas.

The exercise is likely to

spill over into next week

as the panel of interviewers, split into three

groups to speed their

task. It was yet to start

'calling, jin OND and

secondary school leavers,

who formed the bulk of

the crowd, at about 3.00

p.m. when this reporter

left the venue.

A member of the panel

described the turn-out as

"moderate, bearing in

mind that 48,000

unemployed persons were

registered in the state last

year."

The permanent secretary in Charge of the directorate, Mr. A. W. Etukudo confirmed that the

directorate could absorb

only 1,000 people now.

Commenting on the

interview, a female graduate, Miss Ewa Ekeng,

said "There was not much

in it. They only noted

down your credentials,

informed you that the job is

essentially manual in

nature and asked whether

you will accept itif offered

toyou."

Many graduates said

they would accept the job

despite the low pay of

N200 per month for

graduates and N150 for

others.

Miss Ekeng said she

sees the exercise as "the

. second phase of the

National Youth Service

and thus a sav' - '

'Wl8trr"-';r.. ...

67
Training Center Initially in Lagos Only

Lagos DAILY TIMES in English 5 Feb 87 p 24

[Text] THE vocational «ill

training programme

of the National'Directorate of Employment will

initially be restricted to

Lagos.

The Director-General of

the directorate, Mr..

Oladapo Ajai^said this

while briefing the Press in

Lagos yesterday.

He said the restriction

became necessary to

enable the directorate

monitor the effectiveness

of the scheme.

Mr. Ajai listed

identified major areas of

training as accountancy,

arts, building trades, civil

engineering works,

computer technology, and

draughtsmanship.

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68
NIGERIA

BAN ON STUDENT UNIONISM REVIEWED

Lagos State Government Reconsiders Ban

Lagos DAILY TIMES in English 16 Feb 87 pp 1, 13

[Article by Kate Okoronkwo]

[Text] LAGOS State

Government may

soon lift the ban on students unionism in its

higher institutions.

Government ' sources

said that the issue was

discussed during a closeddoor meeting between

Governor Mike Alflügbe

and the Academic Staff

Union of tha Lagos State*

College of . Education

(LACOED) Otto-Ijanikln,

at the week-end.

The governor was at

Otto-Ijanikin for the institution's seventh convocation.

A ban was placed on

students unionism all over

the federation during the

last nation-wide students

crisis.

According to the

source, the decision to lift

the ban was not unconnected with the need to

bring about harmonious

and peaceful co-existence

between staff. and

students.

The college awarded

1,344 graduates their National Certificate of Education (NCE) at the convocation.

Speaking at the cere-'

mony, Governor Akhigbe

urged the, graduands to

put the best of what they

had learnt in the college

into teaching their students and also assist in

raising the standard of

education in the country:

The state Commissioner for Education, Professor Ajato Gandonu,

said that M5.2 million of

which N3 million was for

capital programmes and

development, was made

available to the college

this financial year.

The provost of the college, Dr. B.B. Oderinde,

called on the state government to look into students' welfare, especially

the provision of infrastructural facilities,

adding that land should

be made available to those

wishing to build hostels

for the students.

69
Union Activities Resume at Nsukka

Lagos DAILY TIMES in English 17 Feb 87 p 3

[Text] THt; governing council

of the University of

Nigeria, Nsukka (UNN)

has approved the reactivation of students

unionism in the

university.

The vice-chancellor.

Professor Chimere Ikoku,

who announced this at the

weekend, said that the

unions on the two

campuses of the institution would operate on the

lines laid down for them

by the Federal Government.

He also said that only

students who opted for

membership of the unions

would belong to them.

Professor Ikoku

observed that if properly

operated, students unions

would form the fourth tier

of administrative

machinery of institutions

of higher learning by

presenting and protecting

the interest of the student

body.

He was speaking at the

matriculation of 4,939

students of institution at

Nsukka at the weekend.

He expressed the hope

that all the students

would join the union and

make it active to play the

role expected of it in the

life of the university.

Professor Ikoku

reminded students of the

1980s that they were the

leaders of the twenty-first

century whose task, he

said, would be to implement our national goal of

self-reliance through

productivity.

He emphasised that

productivity depended on

knowledge, dedication to

duty and response to

economic, physical, social

and political challenges

which they acquired

during their student days.

He advised them to

determine from the start

what was their goal in

coming to the university

and pursue that goal with

dogged determination.

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70
SENIOR STAFF LABOR ASSOCIATION WINS APPROVAL

Lagos SUNDAY TIMES in English 8 Feb 87 p 16

[Article by Tony Masha]

NIGERIA

[Text] . FTER about ten years of

J\ seeking recognition, senior -

'staff association has now been

registered under the Land Perpetual Succession Act.

The quest for legal backing

began in 1978 after the laboui

decree Which established the

NLC came into existence leaving

senior employees without a central umbrella.

During its struggle for recognition, the association operated

under the auspices rif Federation

of Senior Staff Association of

Nigeria (FESSÄN).

However, the association now

registered under the Land Perpetual Act via certificate No,

4525 is known as Senior Staff

Consultative Association of Nigeria (SESCAN).

SESCAN secretary-general'

Sola Iji explains: "Our basic aim

is at least to explore thepossibi-

. lity of influencing government

labour policies to ensure that

they are humane and in the interest of workers who contribute

to the wealth ofthe nation.

"Being managers in our own

rights, we will be able at this

level to consult with employers

and the government to ensure

smooth- industrial relation» at

the national level.

''Individual associations1-will

have to negotiate with employ-,

era and where necessary we will

intervene to forestall anything

that Would mortgage the welfare

of workers."

" SESCAN, Nigeria Employers

Consultative.' Association

(NECA) and the NLC should be

able to meet and formulate

labour policies that would

be beneficial to all parties

after which the government

will be expected ;j& give

such proposals legal teeth"

Mr. Iji said that the present treijd where government initiates policies only

for NEfc or NECA to disagree'' cannot enhance

industrial harmony.

"We therefore believe

that we should be able to'

play our part in any labour

matter and be involved in

ILO, Industrial Court,

Nigeria Labour Advisory

Council and othet government agencies where labour

matters afe discussed."

He said that involvement

of SESCAN in labour

issues would help reduce

areas of conflicts in industrial relations because of

the high calibre of its members.

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71
NIGERIA

NNPC STRIKES OIL IN CHAD BASIN

Kaduna NEW NIGERIAN in English 16 Feb 87 pp 1, 3

[Article by Abdullahi Idris]

[Text] OIL search in the Chad

basin region has started

yielding result, NNPC

Northern Co-ordinator

for Mining and Gas Exploration, M>. G.A.

Adesona, told Governor

Abdul Mumini Aminu at

the weekend.

Mr. Adesona said oil had

been struck in the fifth well

in Gaji Ganna, near Majduguri.

He said the quantity of oil

discovered in the area had not

been determined but added

that the NNPC had flared

hydro-carbon for about four

hours lately.

The co-ordinator said drilling would, in a month's time,

be shifted to a new location

with more oil prospect, adding

that six wells had been identified and that work would

begin soon.

Mr. Adesona said the road

leading to the new location would

soon be constructed to facilitate

easy aGcess.

Responding, Governor Aminu

urged the NNPC to rede.dicate

itself in the task ahead, saying

that there were many untapped

mineral deposits in the area.

He observed that prospecting

for oil usually took years but said

with renewed vigour the NNPC

would soon succeed in its undertaking.

Governor Aminu said already

huge investments had been made

in the area and advised that this

should be justified.

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72
WATER HYACINTH VIEWED AS POTENTIAL ECONOMIC ASSET

NIGERIA

Lagos DAILY TIMES in English 6 Feb 87 p 20

[Text] ___ATER Hyacinth earyy lier regarded as a

menace on Nigerian

waters has now become a

potential economic source.

Already animal feed,

paper pulp, mosquito coil

and edible protein have

been produced from water

hyacinth extracts.

Minister of Science and

Technology, Professor

Emmanuel Emovon who

disclosed this in Lagos

yesterday said the products were however still

at the trial stage.

He explained that other

products being derived

from the weeds includa

liquid fertilizer, ceiling

boards/card boards and

gaskets.

In a message sent to the

two-day bilateral meeting

between Nigeria and the

Republic of Benin on

water hyacinth, the

minister remarked that

there was^no limit to the'

use to which water

hyacinth could be put.

He declared that the

challenge before the two

countries was the capacity to harness their

na'tural resources and

transform the "seeming

menace or waste into products and services."

The minister who. was

represented by his special

adviser, Professor Awele

Maduemezia announced

that Nigeria would soon

sponsor a sub-regional

workshop on the control

and use of the water

hyacinth.

Scientists and entrepreneurs in the country, he

stated have designed and

produced some locally

fabricated prototype

devices used to stem the

surge of the weeds.

These, he listed as the

floating barrier for water

weed containment; the

floating dragnet and

basket for clearing midstream water hyacinth

and the mechanical harvester for clearing matted

weeds.

Professor Emovon said

that the concern on both

sides should not be the

source of the surge but

rather means rif effectively controlling them on

either side ofthe border.

Nigerian government in

the last year spent over

H2V4 million on the mechanical clearance of the

weed; according to the

minister.

Professor Emovon said

that research would be

continued on other

methods for controlling

the water weeds and its

economic use.

In his own address, the

leader of the Beninois

delegate, Professor

Nestor Aho said there*ras .

need to adopt an appropriate technology for the

clearance of the weeds in

order to maintain the

natural equilibrum of the

environment.

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73
NIGERIA

RAILWAYS CORPORATION FACES FINANCIAL CRISIS

Lagos DAILY TIMES in English 13 Feb 87 p 24

[Article by Funmi Jolaosho]

[Text] A-vPERATIONS of the

v-'Nigeria Railways

Corporation may grind to

a halt before July due to

financial crisis.

This is because the

yearly subvention to the

NRC has been reduced by

about 59 per cent

Investigations showed

that only K49.68 million

was approved for the

NRC in this year's

budget, compared with

«84.50 million in4986.

Also the first quarterly

subvention to the

corporation was reduced

from »21. 10 million in

1986 to »7.01 million in

• 1987.

It was gathered that the

reduction in subvention,

would hinder effective

performance of the

corporation in 1987.

The source further

revealed that the drastic

cut in subvention caused

the delayed payment of

January salaries.

As at the time of this

report, senior* workers of

the NRC were yet to

receive their January

/13046

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salaries, while junior

workers received thenJanuary salaries, in the

first week of February.

Contacted, the Chief

Public Relations Officer of

the Nigeria Railways,Mr.

Idrees Abdul-Azeez

confirmed the decline in

government subvention.

He said the management of the Corporation

had already requested theMinistry-of Transport and

Aviation to approve a

supplementary-budget for

the NRC.

Mr. Abdul-Azeez said

the increase was

necessary to enable the

corporation meet its

obligation.

"We need coaches and

rolling stock, our major

headache is to get funds'

to purchase these

equipment," he added.

Last October, the

30,000 employees of the

Nigeria Railways Corporation embarked on a

nation-wide strike to

pressurise the Federal

Government to change

her attitude to the

corporation.

74
NIGERIA

SURVEY REVEALS ESSENTIAL COMMODITY PRICE INCREASES

Enugu WEEKLY STAR in English 15 Feb 87 p 1

[Article by Peter Umenze]

[Text] PRICES of essential

commodities have

continued to soar under the

Second-Tier Foreigrt Exchange

Market (SFEM) and most

traders have continued to flout

the Federal Government's

order on fixing price tags on

goods and commodities for

sale.

In a survey conducted by the

Weekly Star in major markets

and supermarkets,' prices of

essential commodities and food

'stuffs,like rice, beans, yam,'

garri, detergents and soaps

have gone up considerably.

A household food, garri,

which was hitherto sold at

between nine and ten cups at W

a few weeks ago now sells at»

about eight cups/for the same

amount. -.--''"

A cup of rice (Abakaliki)

sells at 45 kobo while Uncle

Bens brand is 55 kobo a cup.

Beans on the other hand has;

not attracted any appreciable

price increase. It is still sold at

between 40k and 45 kobo a cup'

while a tin of vegetable oil is

H15.

Also, the cost of one cup of

•ogbono' sells at more than N8

while ; the-'^corresponding

quantity of 'egusi* cost Nl. The

cost of 'ogbono', "Star"

gathered has made most

families and hotels to remove

"ogbono" soup from:their

menu.

The hike in prices of

essential commodities also

-affected detergents and allied

products.

A medium size. 'Omo' has;

jumped from N1.50 last

December to N2.50 while the

giant size is sold at Nil.

A tablet of Lux soap.

Imperial Leather, Premier or

Life bouy sells at between »1

and N1.50 while many families

now go without milk. Peak

milk isstill not within the reach

of the common man since the

price ranges from Nl .20 to »2.

Consumers and market

women interviewed, described

the months of January and

February as "very bad

months" '. in relation to

generation Of money.

According to them, few people

patronize market goods

because of their inability to

replenish their pockets as a

result of heavy expenditure;

during the yuletide.

The Federal Government's

directive that goods in markets

should carry price tags were

not heeded to apart from some,

. big supermarkets . who werei

traditionally known for fixing

price tags on their goods on'

display.

The consequences of the

current global economic

recession not withstanding,

some people told our

correspondent that the SFEM

introduced into the country's

monetary system as a special

adjustment programme of the

. ailing economy has a "special"

effect on the high cost of

.essential ' commodities and

general goods sold in our

^markets.

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75
NIGERIA

FIGHT FOR TRIBAL SUPREMACY GRIPS PLATEAU STATE

Kano SUNDAY TRIUMPH in English 15 Feb 87 p 12

[Article by Shehu Dauda]

[Text] THE dreaded monster of ethnic wrangling has

once more reared its ugly head in Plateau State,

threatening the. precarious balance, of peace

among the different groupings in the area.

; ,A pointer to this was

given by a traditional tittle holder from Lafja,

Alhaji Musa'Abbas

Musa II (Santurakin,

Lafia) when he breezed

into "our .newsroom , to

complain' about recent

happenings in Plateau

State, '

Alhaji Musa who was

a member of the defunct

-state House of Assembly

described as

"discriminatory" thepresent administrative

set up in the state .which

he said fävqüred the "socalled sons-of-the-soil

against . the

Hausa/Fulani/Kanuri

settlers"."...

To butress his point,

the former member of

parliament Said that out

of the .17 permanent

secretaries appointed

recently due to reorganisation ,in the state

civil serviee, only two of

them are muslims, while

only one is of Kanuri

.stock, leaving out' the

Hausa/Fulam* with no

representattpn.

Demanding :the rationale behind such a

lop-sided appointment

Alhaji Musa asked,

"how can people co-

, operate with a; government / that -comes out

clearly to victimise

them?'v.' •

Tracing the history pf

' appointment of commis-j

sioners' since the former

Benue Plateau State was

treated in 1967 the

former MP pointed out

that from that time to.

1986, Lafia Local

Government has always

been represented in the

state cabinet, due to its

large size and population. . On the issue of

development Alhaji

Musa alleged that instead of the state government to construct roads

in the. local governments

it designated as urban,

centres huge sum of

money is currently being

wasted in building roads

that lead to the private

homes pf three ministers

in Jos metropolis.

He gave out the names

of the affected roads as

the one opposite ITF

Headquarters, another

leading to the National

Library and the one

leading to Maina Hotel,

all within Jos.town.

According to, Alhaji

Musa, as part of a grand

design to favour one section of the state against

the other permanent

- secretaries from Lafia

and Keffi in the State

Civil Service were

removed and tpld to go

and fill up the state's

quota in the federal-civil

service only to be replaced by much junior officers from the "socalled upper Plateau".

76
Furthermore the

former MP revealed that

for the first time in the

historyof civil service in

Nigeria,' a. Staff Nurse

was appointed a Permanent Secretary because

he was"son-of-the-soil".

The former Assembly

member also accused

Governor Lawre'nce

Ohoja's administration

of appointing only people from the upper

Plateau as General

Managers and Chairmen

of the State three media

organisations (Standard

Newspapers, Plateau

Television and the

Plateau Radio) as a

deliberate attempt to

suppress the views of

Hausa/Fulani/Kanuri.

Despite all these problems however Alhaji

Musa was optimistic that'

peace and property

would reign in Plateau

State if the state governor , gave a sense of

belonging to all the communities in the area,

pointing out that the recent sermon delivered by

Governor Onoja at Lafia

during "Peoples

Forum" in which he

quoted extensively from

the Qur'an and the-Bible

was a step in the right

direction.

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77
NIGERIA

DEFENSE EQUIPMENT MANUFACTURING

Army To Encourage Companies

Lagos DAILY TIMES in English 14 Feb 87 p 9

[Text] ^HE Nigerian Army

J_ will continue to encourage companies with

potentials for the manufacture of defence materials and systems.

The director of research

and development, test and

evaluation of Training

and Doctrine Command,

Minna (TRADOC), Lt..

Col. Sheidu Zibiri/'made

the statement at a press

conference in Benin yesterday.

Col. Zibiri said the press

conference is a prelude to

the first Ministry of

Defence (MOD) industrial

seminar on using defence

materials and manufacturing capabilities in Nigeria, coming up in Benin

on Monday.

He told the press that

companies which have

been identified with capabilities for the manufacture of defence items of

soft-ware nature have

enjoyed patronage from

the procurement branches

of the ministry of defence.

Lt. Col. Zibiri said:

"There is need to widen

the scope of local participation in meeting the

needs of the armed forces

and other security services in the area of quartermaster items."

He further stated that

the aim of the seminar

was to investigate local

capabilities for the design,

development and fabrication of quartermaster

items using high local

content.

"It will be backed by a

limited scale of products

exhibition of local capability in design, and fabrication of proto types and

end items," he added.

Lt. Col. Zibiri said that

samples of current military quartermaster items

being used by the Nigerian Armed. Forces will be

on display for the benefit

of indigenous manufacturers.

Air Force Begins Spare Part Production

Kaduna NEW NIGERIAN in English 7 Feb 87 pp 1, 3

[Text] THE Air Officer Commanding

the Nigerian Air Force Logistics

Command, Air Commodore Nura

Imam, said yesterday that the

Nigerian Air Force had started

manufacturing basic aircraft

components in its efforts to

achieve self-reliance.

Air Commodore Imam told the

News Agency of Nigeria (NAN)

that the air force was manufacturing some spares needed for

maintenance of aircraft like

hydraulic units, actuators in addition to trying its hands on the

production of brake units and

plastic unpressurised sections of

aircraft.

Air Commodore Imam said a

national aircraft maintenance

policy with the objective of ensur-.

mg the maintenance of aircraft

had been presented to the

Federal Government for approval.

He said it was the belief of National Board on Aircraft

Maintenance that if its recommendations were..accepted. that

would go along way to improving

78
skills and maintenance profiency.

Air Commodore Imam said.

maintenance depots were being

set up, pointing out that when fully equipped all overhaul of aircraft would be undertaken at

home.

Air Commodore Imam said the

Defence Industries Corporation

in Kaduna was taking steps to

manufacture military requirements like uniforms, shoes,

buttons and military badges.

He said a committee had been

set up to harmonise the requirements of the armed forces

and the police.

Air Commodore Imam said

transfer of airspace technology to

the country was very slow

because a lot of money was involved in carrying out research

and training of the skilled manpower needed, while infrastructure were also lacking.

He said the country could

however start with assembly of

aircraft as was done in some

countries.

Air Commodore Imam, a

member of the Armed Forces

Ruling Council, said over 20 persons arrested," "iflclufflng some

military personnel, found roaming within the perimeters of.the

Murtaha Muhammed Airport for

attempting to steal baggages

from aircraft have been prosecuted, after having been summarily dismissed from the ser-

. wee.

He said an airport police command had been established to ensure security at the airports in

addition to joint patrols being

undertaken by military and

police personnel and fencing of

the airport.

Industries Spokesman on Ammunition Exports

Kano THE TRIUMPH in English 19 Feb 87 pp 1-2

[Article by Bako Mohammed]

[Text] The Defence Industries Corporation, (DIC) Kaduna, has started

exporting bullets and explosives to some African and Asian countries, THE

TRIUMPH has learnt.

A spokesman of the corporation told THE TRIUMPH inside the DIC Pavilion at

the on-going Kaduna International Trade Fair that the new development was

an indication that the much criticised corporation is functioning effectively.

This, he added, is a great achievement in the National Policy of Export

Promotion drive embarked upon by the Federal Government.

He stated that request for DIC products have been received from many countries

and emphasised that the armaments factory would meet such demands conveniently.

The spokesman disclosed that the DIC has a steady internal market for its

products pointing out that its customers are the Nigerian Army, the Navy

and the Nigeria Police Force.

Meanwhile, a new division of the DIC for the assembly of Armoured MilitaryVehicles is under construction in Bauchi State, the source informed THE

TRIUMPH.

The Defence Industries Corporation is Nigeria's basic arms industry

established in the 1960s to cater for the needs of the country's Armed

Forces in minor arms requirements.

79
Minister Calls for Local Manufacturing

Kaduna NEW NIGERIAN in English 17 Feb 87 pp 1, 3

[Article by Andrew Isibor]

[Text] MINISTER of Defence,

Major-General Domkat Bali,'

has calledon local experts and

entrepreneurs to put their

heads and resources together

in setting up viable organisations for the local manufacture of defence needs.

He said the country's

ultimate goal should be to

develop a technological base

for the production of most

defence materials so that our

level of dependence.on

overseas manufacturers'

would be reduced to the barest

minimum if not totally

eliminated within the next

decade.

Major-General Bali made

the call in Benin yesterday in

an address read by a member

of the Armed Forces Ruling

Council (AFRO, Col. David

Mark, at the opening of a fiveday industrial seminarorganised by his ministry for

selected military officers and

civilians.

He stressed the need to involve local manufacturers in

the design and production of

defence items.

Local technology must be

evolved to design, develop and

manufacture selecteditems so

that the confidence gained

over time in the process can

spill over into major production of defence needs, he added.

Major-General Bali said a.

minimum level of selfreliance in the production of

vital defence materials and

systems was a safe-guard fort

the protection of national interests, the pursuit of foreign

policy, the execution of viable

defence options and national

mobilisation.

The minister assured manufacturers of options and national

mobilisation.

He assured manufacturers of

defence materials of patronage

provided the materials met

defence specifications, quality

control and assurance.

In his speech, the Commander

of the Nigerian Army Training

and Doctrine Command,

Brigadier Ola Oni called for a national technological council

under the chairmanship of President Ibrahim Babangida to work

out a defined technological goal

for the country.

He suggested that the council

should be responsible for forging

technological policy, mapping

goals and objectives, determining industrial policy, promoting

and rewarding creativity and inventiveness.

This, Brigadier Oni said, would

place Nigeria on the threshold of

self-sufficiency in basic needs by

the year 200.

He stressed the need for impor-.

tation to give way to local'

fabrication and promised the

seminar would resolve the issue

of over-dependence on others for

our basic needs.

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80
NIGERIA

BRIEFS

LABOR FACTIONS DECLARED ILLEGAL—President Ibrahim Babangida, exercising his

power under the National Economic Emergency Powers, has declared illegal

and unlawful the two factions of the National Union of Petroleum and Natural

Gas Workers and National Union of Hotels and Personnel Service Workers. The

power to do so is conferred on the President by decree 22 of 1985. The two

factions are the National Union of Petroleum and Natural Gas Workers led by

Innocent Ogbu and Richard Uzegbu and Hotels and Personnel Services workers

led by Benson Oduduru and Nathaniel Lukula. [Text] [London AFRICAN CONCORD

in English 29 Jan 87 p 33] /13046

SHIPPING TERMINAL GUIDELINES---The Federal Government has issued new guidelines

that standard ocean-going cargo vessels of above 3,000 deadweight tonnes

should not make further use of the country's three lighter terminals, the

Nigerian Ports Authority (NPA), chairman, Brigadier Mohammed Haladu, said

yesterday in Lagos. He said in an address to a four-day seminar on the

"logistics services to the oil industry" that the guidelines superceded a

government directive of December 10 last year, which did not state the weight

of vessels that could berth at the current lighter terminals and subsequent

ones. Brigadier Haladu explained that under the new guidelines, lighters,

barges and pontoons carrying special cargo for the oil industry and other

operators of cargo services should idemnify NPA against any damage including

"consequential damages to the quay airons or surfaces" in line with, the

"nature of operation engaged in by the company." [Text] [Lagos DAILY TIMES

in English 3 Feb 87 p 240 /13046

AIR FORCE PLANE CRASHES—A Nigerian Air Force Alpha-Jet aircraft crashed on

Wednesday killing the pilot who was the only occupant on board. A statement

signed by Wing Commander, M.A. Adediji of the Nigerian Air Force Headquarters,

said the aircraft crashed in Kainji while on a training mission. According

to the statement which was issued in Lagos yesterday, the accident has ,-

already been reported to the Nigerian Air Force Headquarters and arrangements

have already been made to institute an immediate board of inquiry to investigate the cause of the accident. [Text] [Raduna NEW NIGERIAN in English

13 Feb 87 p 3] /13046

SENIOR ADVOCATE APPOINTMENTS—Five new Senior Advocates of Nigeria (SAN) were

named yesterday. They are: Mr. Anthony Okoye Mogboh, Chief Afe Babalola,

Mr. Babashola Orobiyi-Rhodes, Mr. Thompson Okpoko and Mr. Aliyu Salman. They

would be presented with the award on February 25 in Lagos by the Chief Justice

of the Federation, Mr. Justice Ayo Irikefe, it was announced

[Lagos DAILY TIMES in English 12 Feb 87 p 24] |/13046

CSO: 3400/240 81

last night. [Text]
ZAIRE

ARTICLE EXPLORES MOBUTU'S RELATIONSHIP WITH OPPOSITION

Frankfurt FRANKFURTER ALLGEMEINE ZEITUNG in German 22 Jan p 5

[Text] After lengthy delays, the Zaire authorities have at last permitted

Makanda Mpinga Shambuyi, the seriously ill critic of the regime, to leave for

Europe for urgently needed medical treatment. Zaire opposition circles have

since intimated that he has arrived in Belgium. Makanda, founder member and

secretary for foreign relations of the "Union for Democracy and Social

Progress" (UDPS), an opposition party illegal in authoritarian one-party

Zaire, suffers from a severe case of diabetes and also the consequences of a

fall. He is said at one time to have already been in a coma. His state of

health had deteriorated due to inadequate treatment when he and six other

prominent UDPS politicians were arrested in June last year and, vaguely

accused of subversion, was subjected to administrative banishment for an

indefinite period.

According to his daughter who is a student in Belgium, UDPS chairman KibassaMaliba is also seriously ill. However, in contrast to Makanda, he could be

properly treated in Zaire if no longer deprived of the necessary medication.

Kibassa-Maliba is held in a prison camp in intolerable conditions. The other

leading UDPS activists (with the exception of Makanda who had been transferred

to a hospital in Kinshasa some time ago by reason of his poor state of health)

live in supervised banishment in remote localities of Zaire. Marshal

Mobutu's regime frequently imposes banishment on its opponents—in addition to

more drastic repressive measures and occasional (and sometimes successful)

attempts at "buying back" the allegiance of political dissidents by offices

and other benefits. The Belgian colonial administration had already

practiced the method of banishing for people who made themselves unpopular

with it.

These dissidents are not the only ones deprived of their freedom in Zaire for

having expressed criticism of the regime. A publication by the UDPS

representatives in the Benelux countries, dated December last, lists the

names, dates of arrest and the location of the prison or banishment of

54 members. It is estimated that more than 500 sympathizers of this

opposition movement have been deprived of their freedom. An Amnesty

International Report mentioned more than 100 arrests of UDPS followers in the

82
period from October 1985 to January 1986. With a few exceptions, none of the

arrested were indicted, let alone put on trial. Mistreatment and cruel jail

conditions were reported in many cases.

The UDPS was established in February 1982. Its principles provide for strict

nonviolence and operation in the country itself, not from exile. Its ancestry

goes back to a protest movement that started within the one-party regime.

This found its expression in a voluminous letter written by 13 parliamentary

deputies to chief of State Mobutu Sese Seko in November 1980. It contrasted

Mobutu's promises and stated ideals with the real situation and called for a

public debate of key issues, for respect of the Constitution and reforms

guaranteeing democracy and human rights. This letter was the response to the

failure of attempts to seriously exercise parliamentary control in view of the

financial abuses of the regime.

Multiparty System or "Party Internal Opposition"

The thirteen were arrested and deported but, due to international pressure,

were freed a year later. Immediately after the establishment of the UDPS in

1982 by twelve of the original thirteen and others, negotiations took place

between them and a high ranking delegation from the "Popular Movement for the

Revolution" (MPR), the only party admitted by the 1974 Constitution. The

negotiations broke down, because the UDPS insisted on recognition as a party,

while the regime was willing only to admit an internal party opposition,

incorporated into the MPR. The party founders were rearrested soon after and,

in June 1982, sentenced to 15-years' deportation for attacks on the security

of the state. On the occasion of the award of the rank of marshal to Mobutu

in May 1983, they were freed under the terms of a general amnesty without

having agreed to any concessions whatever. They continued their oppositional

activities, and some of them were therefore banished to remote villages in

November 1983. However, shortly before the 25th anniversary of independence

(in early summer 1985), they were freed once again. Five of the seven

politicians banished in June 1985 were members of the original thirteen.

Some observers judged the new repressive measures against dissidents to be a

sign that Mobutu who had seized power in a coup in 1965, felt challenged by

growing public dissatisfaction. We should not conclude, though, that the rule

of pro-Western Mobutu is in imminent danger. In the past interested opponents

and observers frequently speculated that the authoritarian and corruptionridden regime was about to collapse. They were always wrong. People familiar

with the situation in Zaire repeatedly pointed out that nobody except Mobutu

is able to guarantee the cohesion of this country—it has almost 10 times the

area of the Federal Republic of Germany and only just over half the FRG

population and, in the early days of independence (obtained in 1960) was

threatened by several attempts at secession—and a minimum of internal peace

and stability. The definitely greater public dissatisfaction of recent years

is most likely due to the austerity program—imposed as the result of the

demands by the International Monetary Fund (Zaire's foreign debts amount to

about $5 billion, and debt service swallows almost half the budget). The

austerity program worsened the plight of many sections of the people of this

country that is potentially wealthy due to its natural resources.

83
The UDPS opposition party is said to have the blessing of the Catholic

hierarchy but does not amount to a mass movement. Up to now it did not really

aim to overthrow the regime but to bring about comprehensive reforms. As all

its earlier efforts at a dialogue have come to nought, the opposition party

now says that a future dialogue will be possible only within the framework of

a general national conference of reconciliation in a neutral venue. It also

believes that various prior conditions need to be met: A solemn declaration

by the head of state with the pertinent constitutional consequences, the

guarantee of human rights, the admission of three political parties and the

change of the office of national president so as to become a neutral and

above-party office. A transitional government of all legitimate parties

might emerge from this conference, and this would then have to draft a new

constitution to be confirmed by a referendum. Elections would subsequently

take place, supervised by the United Nations.

11698

CSO: 3420/12

84
SOUTH AFRICA

VIOLENCE, TERRORISM SEEN BACKFIRING ON LEFTIST PARTIES

Cape Town DIE BURGER in Afrikaans 31 Jan 87 p 10

[Column by "Dawie": "The Whites 'Must Bleed' : Violent Politics an Issue in

Election"]

[Text] The announcement of the election date, 6 May, goes hand in hand with

red hot news about a point of dispute that is going to be one of the burning

issues of the election: the ANC and violent politics.

The bloodthirsty remarks of Mr Oliver Tambo on his controversial visit tö

America have hit the leftist apologists for the ANC like a water cannon.

Handicap

When the NEW YORK TIMES, high priest of American East Coast liberalism,

publishes a critical interview with Mr Tambo, and the WALL STREET JOURNAL

simultaneously speaks out against such a terrorist, it becomes somewhat difficult to depict the ANC as an innocent "nationalist liberation movement" that

has "unfortunately" turned to violence.

It was precisely the ANC's links to violence, as well as its communist ties,

that were an insurmountable handicap to Mr Tambo while he was in America.

In a widely noted report, the NEW YORK TIMES said that Mr Tambo had defended

the random killing of South African whites in an interview, because it "gives

hope to the blacks and will make the white people used to bleeding."

These coldblooded remarks were publicized on TV and in a number of newspapers

after the minister of law and order, Mr Adriaan Vlok, gave permission.

Comical

The way some Prog newspapers ignored the news is, however, something really

comical.

Such Prog newspapers, always resolute about the "public's right to know,"

apparently simply did not find it possible to expose their readers to such

hard facts.

85
Some of those newspapers have previously painted a sympathetic picture of the

terrorist movement that simply does not jibe with the necklace murders, the

limpet mine and landmine explosions and the hand-grenade and machine-gun

attacks of the ANC.

Is suggestio falsi now being followed by suppressio veri?

International

This is a matter for which the leftists will be held to account in the

election campaign, because the Prog press, notwithstanding open sympathy for

the radicals, has already plunged into the fray on behalf of Mr Colin Eglin

and his followers.

Neither will the defense that there is "another side" to the ANC that is not

heard do much to help. Is that any justification for suppressing the latest

alarming statements? And why the silence about the sharp citicisms of the

Tambo visit by American senators, for example.

The violent aspects of the ANC have in reality become such an international

bone of contention that it is an open question whether the present prohibition

of ANC statements has not actually become counterproductive.

In responsible circles it is already believed that South Africa is practically

in a state of war with the terrorists. Isn't it better, then, that the public

should continuously be more fully informed about what the terrorists say, as

is now the case in America?

In other words, should the ANC not rather be treated like an enemy in wartime,

so that the country knows precisely what that enemy is up to?

Communists

Greater frankness can scarcely help the leftists who are now so sympathetically

disposed toward the ANC.

The Progs, with their dubious reputation on security, are especially afraid of

an open debate about the terrorist movement.

Their hard leftists want to do away with the restrictions on the ANC, so that

it can operate openly here. This immediately raises the question of whether

that should also apply to the Communist Party. Some leftists want to unban

the SACP, of course, but do all Progs want this done?

It is to be hoped that this question will receive plenty of attention in the

election campaign, because the approaches of the different parties to violent

politics will determine the future of the country.

The far-rightists cannot evade this question either, because in a war of

insurgency the answer is only 20 percent military and 80 percent political.

86
Patriotism

Political reform offers the best hope of defusing this situation—and the

National Party offers itself as a reform-miiided party, which simultaneously

guarantees security.

The far-rightists' flights of fancy about "heartlands" and a multitude of

governments in one country hold out no hope, however, of their being capable

of instituting reforms in which a common patriotism can overcome sharp

divisions.

12906/8918

CSO: 3401/89

87
SOUTH AFRICA

COLORED MP'S INCREASED SUPPORT FOR GOVERNMENT NOTED

Cape Town DIE BURGER in Afrikaans 15 Jan 87 p 12

[Editorial: "Colored MPs at the Border"]

[Text] The first official visit of Colored MPs to the operational areas has

already taken place. The group of 40 returned with new insight.

Not only did they see how the revolutionary onslaught against South Africa

is being confronted. They also saw how their Colored compatriots are

standing firm in the struggle against the country.

One visitor said that the group had clearly come to the realization that the

struggle is not against apartheid, but against communism. Another said frankly

that the Colored people support the army and that the army can depend on the

Colored people.

This bears eloquent witness to the increasing realization on the part of more

and more people that the country and all its people are facing a common enemy

and that all South Africans have a responsibility to help defend the country.

Military service is voluntary for Coloreds, but the tremendous support given

the Cape Corps—there are regularly far more applicants than can be accepted—

shows that Colored people can also make their contributions to national security

and wish to do so. They regularly serve on the frontier, and some of them have

already made the supreme sacrifice.

The group of MPs who have just visited the operational area can help build up

the image of the army and its important work. This is essential, because only

a strong army with a firm grip on the enemy who threatens us all can create the

climate at home in which the government can carry on its reform policy. Only in

such a climate can the broad evolutionary development of democracy for the

benefit of the country and its people occur—a process the enemies of South

Africa seek at any cost to hinder precisely by their violent action.

12906/8918

CSO: 3401/88

88
SOUTH AFRICA

BROEDERBOND, NG CHURCH TERMED AFRIKANER FREEDOM 'PALLBEARERS'

Pretoria DIE AFRIKANER in Afrikaans 4 Feb 87 p 5

[Article: "Broederbond Pallbearers of Afrikaner Freedom"]

[Text} The Afrikaner Broederbond have become the pallbearers of Afrikaner

freedom and the NG [Dutch Reformed] Church the football of people who want to

make it the agent of spiritual change.

This sharp criticism is made by the Afrikaner Volkswag in its most recent

circular to members.

In the circular the Volkswag singles out a number of issues that now call for

attention:

—the nationwide state of emergency is heightened by emergency measures

surrounding black schools, and restrictions on the news give an impression of

peace and quiet so that there is even talk of the revolution that has been

contained. A false sense of security is thereby created that promotes relaxation;

—the economy has collapsed and prospects coupled to an upward trend in the

price of gold may give a very superficial impression of improvement, while the

white is in the process of being drastically impoverished. This makes us

internationally vulnerable and leads increasingly to unemployment, as well as

to robbery, theft and assault;

—isolation and sanctions make a joke of the "far-reaching reforms" already

instituted in our country; the fact is that nothing short of handing over

power to the black majority will satisfy the outside world;

—the government is unavoidably headed for majority rule, hoping to ensure

guarantees for the white. This results in yet further false hopes;

—the Afrikaner Broederbond and other cultural organizations have become the

pallbearers of Afrikaner freedom. Hope is vested in a multiracial confederacy

in which the Afrikaner becomes a powerless minority without the will to fight

for his survival;

89
—the Dutch Reformed Church has become the football of people and forces that

want to make it the agent of spiritual change;

"The general election has been announced, as it is said, to obtain a verdict

on the role of "ongoing reform." To obtain the cooperation of the blacks,

various proposals have already been made to them: They have been offered

participation in the President's Council, a forum and recently the Constitutional

Council has been proposed. The black leaders have repeatedly rejected this

contemptuously, simply because it does not make provision for handing over

power to the blacks.

"What is white opinion being tested for? To ascertain whether they are willing

to live under a parliament with a majority of black members and a black state

president, with 'power so devolved' that it makes no difference who is state

president. Are we once again to be promised a magic formula that will prescribe guarantees for minorities to a majority government? Or are the voters

going to be misled by the public media that have become part of a great propaganda machine into believing that what is possible nowhere in the world can

work in South Africa?

The Volkswag calls on Afrikaners to be active members of their churches.

Attempts to change the nature, character and composition of the NG Church among

others must be averted by conscious action. Afrikaner power must be consolidated

on the political level. One common goal must be striven for now, and that is to

smash the present constitution and reinstate South African politics on [an

Afrikaner] people's basis. "This conviction must be reflected by letting

Afrikaners know that they are in fact united in their struggle for a land of

their own under a government of their own. This struggle is stronger than our

differences and we must demonstrate that," the Volkswag declares.

12906/8918

CSO: 3401/88

90
SOUTH AFRICA

INDABA SEEN AS VALUABLE START TO GOVERNMENT BY CONSENSUS

Cape Town DIE BURGER in Afrikaans 4 Feb 87 p 10

[Editorial: "The kwaNatal Indaba"]

[Text] The first official reaction of the government to the kwaNatal Indaba*s

constitutional proposals is anything but the hidebound resistance ascribed to

it by certain quarters since the report appeared. On the contrary, the government regards Indaba as an important exercise in the development of consensus.

Minister Chris Heunis made it clear in the No Confidence debate yesterday

that the government admittedly does not believe that sufficient protection

against group domination is contained in the proposals. There are also certain matters, for example the financial implications, that are inadequately

addressed or not taken into account at all. A number of important premises of

the Indaba are, however, accepted.

It was scarcely to be expected that after only 8 months or so of deliberations

the Indaba would succeed in hammering out a democratic constitutional framework satisfactory to all population groups, but the Indaba plan can nonetheless

serve as a basis for further negotiations. The creation of a joint executive

authority for kwaZulu/Natal has much to offer here.

It is instructive that, according to Chief Minister Mangosuthu Buthelezi,

neither the kwaZulu government nor Inkatha has in any sense accepted the

Indaba proposals. Both played leading roles in the Indaba, but they believe

that the proposals must first be studied and their implications subjected to

"broad disucssion."

Besides the white political parties have been expressly asked not to make a

political football of the Indaba proposals for their own advantage. This

request is most likely the result of the attempts from the outset of the

Progressive Federal Party and the New Republic Party to cash in on the Indaba

politically, especially after the National Party in Natal spoke out on the

inadequate protection of minorities.

This position was used ostensibly to show that the government is not serious

about power sharing. But why then are the Zulu government and Inkatha, unlike

the PFP and the NRP, cautious about committing themselves helter-skelter to

this specific plan for power sharing on a regional basis?

91
An obvious reason is that the Zulus as a group want to be sure that their

interests are effectively protected. But there are also other groups

entitled to protection against domination. The government cannot evade its

responsibility to them.

12906/8918

CSO: 3401/88

92
SOUTH AFRICA

RAPPORT EDITOR RESIGNS OVER POLITICAL PRESSURE

Cites Constant Clashes With NP Politicians

MB071525 Johannesburg SAPA in English 1510 GMT 7 Mar 87

[Excerpts] Johannesburg, 7 Mar (SAPA)—The managing editor of the Afrikaans

Sunday newspaper, RAPPORT, Dr Willem de Klerk resigned today because of

constant clashes with National Party politicians and criticism from the

newspaper's board of directors.

Dr De Klerk who is the brother of the minister of national education and

Transvaal leader of the National Party, Mr F. W. de Klerk, said that recently

and furing the past 2 years he had had several confrontations with NP

politicians and it had been made clear to him that his political insights,

accents, arguments, and appeals had aroused opposition in the party.

"This intolerance and rejection of criticism and investigative journalism and

reasonable political reportage inhibits my political freedom, integrity,

honesty, and openness."

Dr De Klerk said he still believed the NP had the opportunity to bring about

real reform but certain of its policies and style would have to be steered in

a new direction. He could understand the emotion behind the independent and

alliance movements but believed there was still too much vagueness about them

for them to be tested.

Dr De Klerk published the following statement today.

"I asked the chairman of RAPPORT to let me resign as managing editor of

RAPPORT as from today. It is my own decision. I have not been asked to do

this.

"This permission that I may bring forward my retirement was already granted by

those concerned about a year ago.

"I am making use of this opportunity for two reasons in particular:

»— xhe vague, generalised and continuous criticism of key members of the

board of directors, that the plateau reached in RAPPORT's circulation and

93
other problems are mainly due to my editorship, has been so offensive that

self-respect has forced me to leave.

"With an imminent increase in circulation and progress of RAPPORT now

expected, I could have handled the criticism.

"— However, there is also a decisive political reason for my resignation.

"With several confrontations in the past 2 years and more recently, I am being

placed under increased pressure from NP politicians.

"It has been made clear to me and I have also been told that many of my

political insights, accents, arguments, and appeals have aroused resistance

among the NP politicians. This also relates to some general political reports

and political background articles in RAPPORT.

"This interference and rejection of criticism and investigative journalism and

reasonable political reportage inhibits my political freedom, integrity,

honesty, and openness."

"It has been an exceptional experience and oportunity to have been editor of

RAPPORT. I thank my directors, management, personnel, and readers for their

sustained support.

"I have not yet made any decisions or entered negotiations over furthering my

career. I hope there will be new opportunities ahead."

RAPPORT Director Expresses Regret

MB071729 Johannesburg SAPA in English 1718 GMT 7 Mar 87

[Excerpt] Johannesburg, 7 Mar (SAPA)—The directors of the Afrikaans Sunday

newspwaper RAPPORT tonight expressed their disappointment at the resignation

of their editor Dr Willem de Klerk.

Dr De Klerk said today he had decided to resign because of interference in the

running of the paper by Nationalist politicians and criticism from the

directors about falling circulation.

"The directors have taken note with disappointment of Dr De Klerk's decision.

We thank him for his important service to RAPPORT," said the chairman of the

board of directors, Dr Willem van Heerden, in a statement.

It is so that there had been a drop in the newspaper's circulation which

naturally required the attention of the directors.

"But it was not the intention to make personal accusations. The directors

felt all staff involved—editorial, circulation, and management—should

address the situation," the statement said.

94
It added that circulation had improved markedly as a result of steps taken by

Dr De Klerk and other staffers.

"It is also so that there have been political problems, especially because it

was felt that, during the election campaign, RAPPORT should concentrate less

on differences in emphasis or even individual policy deviations."

Dr Van Heerden said it was felt the spotlight should have focussed more

sharply on the "extreme importance of this election for the government's

programme of orderly and constitutional reform and through that for a stable

South Africa."

P. W. De Klerk Comments

MB081634 Johannesburg SAPA in English 1628 GMT 8 Mar 87

[Text] Pretoria, 8 Mar (SAPA)—The cabinet minister brother of Dr Willem de

Klerk, the editor of RAPPORT who resigned today because of constant clashes

with National Party politicians and his directors, said the editor's statement

was "already being misused in the propaganda onslaught against the NP and its

leaders."

In a statement in Pretoria, Mr F. W. de Klerk, leader of the NP in the

Transvaal and minister of national education, said the slanted and untruthful

image of a National Party standing back from reform was now being coupled to

his brother's resignation.

"The NP has no comment on Dr De Klerk's references to the directors of

RAPPORT... We were not involved there."

Mr De Klerk said he himself obviously did not want to comment on his brother's

actions.

"He deserves respect as a journalist of format.

"Throughout my political and his journalistic career, we have as brothers

avoided public debate.

"We do not attack each other, defend or promote... As far as politics were

concerned, each was totally independent of the other and we still respect this

independence.

"I chose that this remain so," the minister said.

Dr De Klerk's references to the National Party did however require a response,

"mere xs appreciation for the positive support of the NP by him and RAPPORT.

"The NP understands the need for exploratory and critical journalism.»

95
Mr De Klerk said there was in fact reason for dissatisaction with RAPPORT,

from NP's viewpoint.

"There was from time to time a lack of objectivity and understanding in

reportage, comment and by guest writers of the problems the government is

wrestling with.

"Unnecessarily sharp and even unreasonable criticism was not excluded, and

RAPPORT's style also gave offence on occasion."

It was therefore not strange that there was sometimes sharp reaction and

representations from the NP.

"When a newspaper supports a particular party, it is natural that the party

take steps when it feels that support is one-sided or even counter

productive."

Mr De Klerk said he did not want to digress on the issue of specific pressure

on his brother, "because I was not involved."

It was the NP's standpoint that a friendly but frank relationship should

exist, particularly between that section of the press that supported it.

"Dr De Klerk's press statement is already being misused in the propaganda

onslaught against the NP and its leaders.

"The slanted and untruthful image of an NP that is backing away from reform is

now being coupled to his resignation." /

/

In view of this, Mr De Klerk said he wanted to state categorically the NP was

committed to real, dynamic and orderly reform at all levels of society.

In the constitutional arena, the principle of power-sharing without domination

by any group over another, was accepted by the NP.

Powersharing on a basis which could lead to domination through a majority was

rejected as this would lead to chaos and a loss of freedom and selfdetermination.

"The maintenance of an own community life for the different communities in our

country is a prerequisite for freedom.

"To want to destroy this is not reform but looking for trouble and unrealistic

day dreaming."

Mr De Klerk said a sound victory on 6 May would place the NP in a position

to continue the reform path it had chosen in a balanced way.

This was why a mandate was being asked for from the voters.

96
Ex-RAPPORT Editor Explains NP Pressure

MB081959 Johannesburg Television Service in Afrikaans 1800 GMT 8 Mar 87

[Text] The leader of the NP in the Transvaal, Minister F. W. de Klerk, says

the resignation of the editor of the Sunday newspaper RAPPORT, Dr Willem de

Klerk, was not the result of pressure from the party. Minister De Klerk,

however, admitted that the NP was not happy with the political direction of

the newspaper under his brother's editorship. The management of RAPPORT has

also confirmed that there were political problems. In an interview with Freek

Robinson, Dr De Klerk enlarged on the kind of pressure from the NP which he

experienced:

[Begin video recording] [Robinson] Could you say-what^£ind of pressure, and

from whom?

[De Klerk] The pressure was to the effect that RAPPORT should function much

more strongly, politically, to the advantage of the NP, and that things which

could harm the NP should be underplayed in the newspaper.

[Robinson] But was the impression created that you were working against the

party?

[De Klerk] I don't know if that impression was created. My norm, as editor

of the newspaper, was to follow the news direction of the day, and of the

moment, and of the week. And when the direction of the news direction brought

trends which differed from those of the NP, it is the duty of a newspaper to

bring this to light.

[Robinson] It seems you said in your statement that your integrity as a

journalist editor was put under pressure and doubt.

[De Klerk] Yes, I do believe so. RAPPORT is not an NP organ, or the organ of

any political party. It is a newspaper which wants to promote reform politics

and which is antirevolutionary, and the judgment of an editor about political

objectivity and political fairness is something which has to be left to him

alone.

[Robinson] But that seems to be your interpretation. From the statement by

the directors, it seems they wanted more emphasis on the policy of the party

and less emphasis on deviation and opposing proposals.

[De Klerk] It is certainly the right of the directors to want that. It is

not my fault if the NP is not in the news on a Saturday. I believe the

newspaper was fair to all political parties, that it treated the NP's case

sensitively, but that news cannot be suppressed, or distorted, or underestimated.

[Robinson] Doctor, about the future, it seems from your statement that you

are still a supporter of the NP, but opposition parties and the newspapers

97
want to place you in a different category, as though you now wish to move in a

different direction.

[De Klerk] I believe the NP must try to accommodate the movement to its left.

If it can do so, that would be the best thing which could happen, as it could

be the instrument for change. But if the NP does not succeed in accommodating

the new movement on its left, and making them feel at home, then I believe the

NP will lose much support. And, if it cannot provide a home for these other

trends, then I personally will not feel at home in the NP. [end video

recording]

/9599

CSO: 3400/265

98
SOUTH AFRICA

PFP SEEN STILL SUFFERING FROM SLABBERT DEPARTURE

Cape Town DIE BURGER in Afrikaans 4 Feb 87 p 10

[Column by "Dawie": "Slabbert*s Legacy: Wby Progs Look So Gloomy"]

[Text] The gloomy beginning of the No Confidence debate in the House of

Assembly finally emphasized what a pitiful legacy Dr Van Zyl Slabbert left

the official Opposition when he ingloriously resigned as Prog leader and turned

his back on both the House of Assembly and the parliamentary system.

The mantle of leftwing leadership was taken over from him by the previously

rejected Mr Colin Eglin, of whom let it not be said that he can talk fire into

a political machine that has already been warmed up.

In the No Confidence debate Mr Eglin droned on like a cicada with the same

kind of birdshot attack on the government that has brought about the downfall

of practically all his predecessors as leaders of the Opposition.

Jeremiads

No focus on specific actual or alleged weak points in the government's

operation, but a monotonous piling up of charges and jeremiads that

eventually was simply boring.

Mrs Suzman

Nonetheless, this is what the great white hope of the leftists looks like,

the man who had to succeed Dr Slabbert after that "new Jannie Smuts," the

darling of the Prog press, shocked his soulmates to their toes by simply

walking away and turning to extraparliamentary politicking.

That shock that struck the PFP out of the blue last year is made worse by the

comical motives Dr Slabbert offered for it.

First he balmed the government because it was not carrying out Prog policy.

Even in the Prog press that elicited the wry comment that this was on a par

with expecting Mrs Thatcher to resign as British prime minister because she

is not implementing a socialist policy.

99
Then there was a revealing tape episode when Dr Slabbert laid the blame for his

failure on President P.W. Botha. When President Botha made public the transscription of their taped conversation, it appeared that Dr Slabbert rather

agreed with the state president's views! On top of that, he got at the ANC,

which leftist Progs so badly want to derestrict.

The former Prog leader's motion of no confidence in Parliament also aroused

mistrust among his fellow Progs. Observers subsequently reported that Mrs

Helen Suzman, who had to defend her continued participation in Parliament in

newspaper articles, walked past Dr Slabbert cutting him dead.

Pieces

The destructive verdict Dr Slabbert and the equally leftist Dr Alex Boraine

delivered on the PFP by throwing in the towel was put into even sharper

perspective when the dejected party had to cast about for a new leader.

In the entire left-wing establishment, talent was so sparsely sown that the

Progs had to fall back on a man they themselves had rejected a while before,

Mr Eglin.

This veteran, who described himself as a "retreaded" leader, was called back

to help pick up the Prog pieces.

Among those pieces is a boycott policy, which in the case of the President's

Council has shown itself to be disastrous. Likewise vain attempts to launch

a national convention.

And then there is Dr Slabbert's notorious "balance of power campaign"—in

which growth on the far right was depended on to give the PFP the "balance of

power" in Parliament, so that it could become the political tail that wags

the dog.

Little Calculations

Such little schemes are not yet dead, if notice is taken of what is going on

in the PFP and the obliging Prog press, which is all of a sudden once again

fighting the election on behalf of the Progs as though their lives depended

on it.

This is proclaimed by the Progs' marriage of convenience with the once-hated

New Republic Party, which until recently could scarcely be sufficiently

maligned.

Moreover little calculations are being diligently done as to how many Nat seats

the PFP may pick up if the far-rightists put on a "good" performance in threecornered contests.

100
The Far Right

It is hard to believe that the voters will not see through such political

cynicism.

Similarly they are going to hold the PFP under its uninspiring leadership to

account for its spineless willingness to capitulate. Moreover the division

among the Prog rank and file over the ANC, the communists and security measures

offers no guarantees for the security of the country.

Above all, the Progs are not fighting the election to offer a better alternative to the Nats, but prevent the far-rightists from supplanting them as

official Opposition, no matter at what cost. Who can have any confidence in

such a party?

12906/8918

CSO: 3401/89

101
SOUTH AFRICA

HNP FAILS TO RESPOND TO CP UNITY OFFER

Statement Issued by CP Leader

MB112054 Johannesburg SAPA in English 1905 GMT 11 Mar 87

[Text] Pretoria, 11 Mar (SAPA)—THe Conservative Party today made an offer

to the Herstigte Nasionale Party, though by this evening the HNP had not

responded to the offer, a statement from the CP said tonight.

Thee statement, issued by CP leader, Dr Andries Treurnicht, said "On the

assumption that the HNP binds itself to the CP by the end of this year," the

CP offered 10 "good" parliamentary seats to the HNP.

"The HNP will identify their 10 candidates for these seats according to the

motion of the AWB," the statement said.

Furthermore, the CP would not oppose the HNP in those seats where the HNP

presently had nominated candidates and where the CP had not nominated

candidates, the statement said. In all seats where no right wing candidates

had been nominated so far, the HNP might nominate their candidates.

The CP undertook to "fully support" the HNP in all the above mentioned seats.

The following seats were handed down to the executive committee of the HNP

which held a session this afternoon in Pretoria: Sasolburg, Roodeplaat,

Rustenburg, Pretoria West, Pretoria Central, Vryheid (Natal), Virginia,

Kempton Park, Queenstown, and Kingwilliamstown.

The CP said they had requested the HNP to reply to their offer before 7:30 pm

today, but as no "conclusive" reply was received before that time, the CP

called upon its candidates, workers, and supporters to carry on with the

election campaign against the National Party, the statement said.

Election Pact With HNP Dismissed

MB121133 Johannesburg Domestic Service in English 1100 GMT 12 Mar 87

[Excerpt] The leader of the Conservative Party has finally rejected the

possibility of any election pact with the HNP. Dr Treurnicht told our

102
political staff in Pretoria that the possibility of cooperation between the

two parties was something of the past because of Mr Jaap Marais1rejection of

CP proposals in this regard and his rejection of unity between their parties.

He said he regarded his party's proposals to the HNP as reasonable. He says

the HNP had only about 2 percent of the right-wing support.

/9599

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SOUTH AFRICA

UDF LEADER ACQUITTED, OTHERS SENTENCED FOR MURDER

MB061900 Johannesburg SAPA in English 1840 GMT 6 Mar 87

[Text] Port Elizabeth, 6 Mar (SAPA)—A 17-year-old "comrade" gave clenched

fist salutes and shouted political slogans in the Port Elizabeth supreme court

today after he was sentenced to an effective 14 years in prison for his role

in necklace murder.

The youth, a self-confessed United Democratic Front supporter and "comrade,"

was convicted of murder with extenuating circumstances in a case in which he

was charged together with the regional president of the UDF in the eastern

Cape, Mr Edgar Ngoyi, 62, and three others.

Mr Ngoyi and Mr Lulamile Cyril Mkalipi, 22, were found not guilty of murder

earlier this week, and discharged. Sentenced with the youth were Fumanekile

Siyoni, 21, and Xolile Pete, 20, who were both convicted of assault and

sentenced to an effective 2 years imprisonment each.

The case was a sequel to the necklace murder of Mr Phakamisa Peti Nogwaza in

KwaZakhele on 8 June 1985.

The court heard that the youth had a previous conviction for malicious damage

to property for stoning Mr Nogwaza's home 2 weeks after his murder. He was

sentenced to cuts for that offence.

Passing sentence on the youth Mr Justice R. A. Solomon said to kill a man was

bad enough. The killing of a defenceless man by a group was worse. To douse

him with petrol and set him alight was more horrible.

He said the youth appreciated that he was involved in a deliberate and

calculated crime with full appreciation of the consequences.

The judge said the court noted that after the killing of Mr Nogwaza the youth

continued his vendetta against the Nogwaza family by attacking their home.

This was a clear indication that he showed no remorse for the killing of Mr

Nogwaza.

"I may tell you it is only your age that has saved you from the death

sentence," he told the youth.

104
He said it was unfortunate that the youngest of the accused before court had

to bear the burden of a severe sentence for the crime.

He pointed out that similar offences where violence was involved in the

township had been perpetrated by youths and older people did not suffer the

consequences.

While the judge and his assessors were still sitting in court before

adjourning the day's proceedings formally, the youth suddenly raised his fist

and started shouting political slogans. He was joined by Siyoni and Pete.

A contingent of police briskly moved in and led them down the stairs to the

cells below.

/9599

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105
SOUTH AFRICA

CISKEI DEPORTS TRANSKEIAN LECTURER, OFFICIALS

MB100517 Johannesburg SAPA in English 2056 GMT 9 Mar 87

[Text] East London, 9 Mar (SAPA)— A social science lecturer at Fort Hare,

Mr Basil Somhlahlo, has been deported to the Transkei.

This was confirmed today by Ciskei's deputy director-general of foreign

affairs and information, Mr Headman Somtunzi. Mr Somtunzi could not say when

Mr Somhlahlo had been deported.

Mr Somhlahlo's daughter, Miss Yoliswe Somhlahlo, said her father had been

detained by the Ciskei police in January and had not returned home.

Mr Somhlahlo*s deportation follows that of two senior officials in the Ciskei

Department of Education, Miss N. Ncokazi and Miss L. Songca, who were deported

in January. Both were related to senior Transkei politicians.

Several other Transkeians living in Ciskei have also been deported following

the souring of relations between Ciskei and Transkei.

/9599

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106
SOUTH AFRICA

KWAZULU'S DHLOMO ON BUSINESS ROLE IN REFORM

MB070607 Johannesburg SAPA in English 0121 GMT 7 Mar 87

[Text] Pietermaritzburg, 6 Mar (SAPA)—The business community had a crucial

role to play in ensuring black people are not driven into the "open arms" of

Marxists and socialists, the Kwazulu minister of education and culture,

Dr Oscar Dhlomo, said in Pietermaritzburg tonight. Speaking as a guest at the

annual banquet of the Pietermaritzburg Chamber of Commerce, Dr Dhlomo said he

had never come across a more "nourishing diet" for Marxism and socialism than

exploitative and racial nature of capitalism in South Africa.

"The business community must begin to play a leading and constructive role in

the socio-political life of our nation if they want to remain in business,"

Dr Dhlomo said. He pointed out that many companies in South Africa regard

their workers as "mere cogs in an operation whose sole purpose is to maximise

profits" and ignore the dehumanising migratory labour system, suspend workers*

wages when they are detained without trial and in some cases quote laws from

"apartheid statute books" to justify unfair labour practices. "It is on the

basis of this apparently simple criteria that many black people judge the

efficacy and viability of the free market economic system," he said. "If in

black eyes the free market system is seen to be related to all that is unfair,

greedy and inhumane, then immediately the future of that economic system is

threatened in our country," Dr Dhlomo said.

/9599

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107
SOUTH AFRICA

BRIEFS

TBVC STATES RECEIVE 17.5 MILLION RANDS—Transkei, Bophuthastwana, Venda, and

Ciskei [TBVC] received 17 1/2 million in development aid from South Africa in

the 1986-87 financial year. The minister of education and development aid,

Dr Gerrit Viljoen, said in a written reply to the PFP member for Johannesburg

North, Mr Peter Soal, that Transkei had used the 5.6 million rands it had

received to provide infrastructures for housing schemes and build schools in

smaller towns. Bophuthatswana had received just over 11.8 million rands and

Venda 2.9 million rands for the same purpose. Ciskei had been given 20.5

rands million to finance a number of projects. [Text] [Johannesburg Domestic

Service in English 1100 GMT 6 Mar 87] /9599

PAC MEETS UK GOVERNMENT OFFICIALS—A Pan-Africanist Congress delegation has

met with British Home [as heard] Office officials. A statement in London says

the talks took place this week and the discussions covered a wide range of

issues focusing on South Africa. The Foreign Office says it was not the first

meeting of its kind, but in marked contrast to the British talks with the ANC,

the PAC did not meet any government minister and the meeting got a low

status. The Foreign Office says it was held in terms of its commitment to

keep in touch with all shades of opinion and should not be seen as a move to

give official recognition to the group. [Text] [Umtata Capital Radio in

English 1500 GMT 6 Mar 87] /9599

NO HOMES BUILT BY GOVERNMENT IN SOWETO—House of Assembly, 6 Mar (SAPA)--No

houses were built by the government in Soweto last year, the minister of

constitutional development and planning, Mr Chris Heunis, said today in

written reply to a question from Mrs Helen Suzman (PFP Houghton). A total of

2,008 homes were built during the year by private owners. [Text]

[Johannesburg SAPA in English 1524 GMT 6 Mar 87] /9599

BLACK UNEMPLOYMENT FIGURES REVISED—The Central Statistics Services has

revised its estimate of the number of unemployed black workers upwards from

about 500,000 or 8 percent last October to 1.1 million or 18 percent at

present. The director, Dr Treurnicht du Toit, says the latest figure was

arrived at through the use of a new random survey based on the 1985 census

figures. Dr Du Toit said the survey had taken into account factors such as

the increase in the standard of education and training, urbanization, and

industrial development, which led to changes in the structure of a population

in a particular place. These changes affected the structure of the workers'

108
corps, and the measurement of the structure, and extent of unemployment.

[Text] [Johannesburg Domestic Service in English 0500 GMT 7 Mar 87] /9599

PLANS TO UPGRADE ALEXANDRA TOWNSHIP—The government is to spend 75 million

rand over the next 3 years on socio-economic development in the black township

of Alexandra, near Johannesburg. The announcement was made by the administrator of the township, Mr (P. Saker). Work has already started on a sewerage

system for the township, the first in 82-year existence of the area. As part

of an urban renewal the new flats are being built. Old houses will be

upgraded and new houses are being built. A year ago, Alexandra was one of the

worst unrest troubled areas in the country, where a kangaroo court sentenced

people to death by the necklace method. In a recent opinion poll, 87 percent

of the inhabitants said intimidation in the township had declined and 92

percent welcomed the presence of the security forces. [Text] [Johannesburg

Television Service in English 1800 GMT 7 Mar 87] 79599

ANC'S NZO SEEKS SUPPORT—The secretary general of the African National

Congress, ANC, of South Africa, Comrade Alfred Nzo, has called on the

international community to support the Frontline States and liberation

movements in southern Africa in the face of South Africa's acts of

destabilization and blackmail. Speaking in the Ghananian capital, Accra,

yesterday, Comrade Nzo warned that South Africa is likely to intensify attacks

on neighboring states because of the political crisis within the Afrikaner

front. He said that the racist regime is facing an irrevocable political

crisis following the realization by the white population that there is no

future in apartheid. [Text] [Harare Domestic Service in English 0500 GMT

8 Mar 87] /9599

LEBOWA TO ADMINISTER OWN TOWNSHIPS—Pretoria, 11 Mar (SAPA)--Lebowa will

assume responsibility for establishing, developing, and administrating its

townships from 1 April. The minister of education and development aid (EDA),

Dr Gerrit Viljoen, and Lebowa chief minister, Dr Cedric Phatudi, said in a

joint statement in Pretoria today that these functions would be transferred

from EDA. It was decided during talks in Pretoria this week that finances and

staff be transferred to Lebowa for this purpose. [Text] [Johannesburg SAPA

in English 1419 GMT 11 Mar 87] /9599

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SOUTH AFRICA

COMMENTARY SAYS USSR TIGHTENING HOLD ON ANGOLA

MB090523 Johannesburg Domestic Service in English 0500 GMT 9 Mar 87

[Station commentary]

{Text] There is great enthusiasm in the Western media these days for the

policies of liberalization that have been launched by the new leader of the

Soviet Union, Mr Mikhail Gorbachev. So much so that the Soviet exile,

Anatoliy Scharanskiy, recently remarked scathingly that Mr Gorbachev might

well be using the services of a New York public relations firm—so successful

was he being in bluffing the world. It was perhaps an overstatement. The

Soviet leader, committed communist though he is, does seem to be determined to

eliminate the worst excesses of the country's unbelievably inefficient civil

bureaucracy and economic system.

Nevertheless the praise with which he is being heaped in some quarters as a

liberal reformer by no means reflects the reality of what he is trying to

achieve in the Soviet Union. It also holds the particular danger that it

tends to be assumed that the liberalization policies are being pursued on all

fronts—domestic and external—in Soviet affairs. That assumption is not only

misleading but, for countries around the world that have been confronted in

the past with aggressive Soviet activities, it is a real threat.

Judging by recent developments in Angola there is no question of

liberalization of the Soviet policy of keeping tight control over puppet

states, suppressing all opposition, in order to extend Soviet influence

globally.

The evidence for this comes from no less an authority than Dr Chester Crocker,

American assistant secretary of state, who has probably been more closely

involved with Angola in the last 5 years than any other outsider. In

testimony to Congress last week Dr Crocker admitted that his long drawn-out

initiative to engage Angola's ruling MPLA in a negotiated settlement with

UNITA had come to an abrupt end. After 3 years of progress in promoting peace

talks, Dr Crocker said, Angola's rulers had withdrawn from the process and

were now evidently intent on trying to destroy UNITA militarily. He himself

had no illusions about the implications. Since there would be no outright

military victory, the outcome would be misery and suffering for the helpless

people of Angola.

110
For Dr Crocker, having to admit the failure of a peace initiative on which he

has spent a great deal of time and energy since his appointment must have been

a galling experience. For southern Africa that failure must contain a

sobering message. The MPLA regime's dramatic reversal of its emerging stance

on dealing with popular opposition coincides with the entrenchment of Mikhail

Gorbachev in power in Moscow. The connection between the two is obvious,

given the regime's dependence on Soviet and Cuban support to stay in power.

And if the Soviets under Mr Gorbachev are tightening their hold on puppet

states and moving more ruthlessly against opposition, there can be little

doubt that they are more determined than ever to keep the Cuban troops in

Angola.

The continued presence of these destabilizing forces in southern Africa is a

factor no government can afford to ignore.

/9599

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111
SOUTH AFRICA

COMMENTARY NOTES KAUNDA'S WILLINGNESS FOR TALKS

MB100528 Johannesburg Domestic Service in English 0500 GMT 10 Mar 87

[Station commentary]

[Text] Two proposals for talks with South Africa on the situation in southern

Africa were made last week. Both emanated from Lusaka—one from President

Kaunda of Zambia and the other from Sam Nujoma of SWAPO. It could be there is

no link between the two.

Mr Nujoma's proposal was for talks with South Africa at any time, any place

about the stalemate on independence for South-West Africa. There are good

reasons for the SWAPO leader's call. SWAPO's prospects of victory in the

terrorist war it is waging against the peoples of South-West Africa have never

been bright. Today they are at a particularly low ebb. In the first 2 months

of this year, a fifth of SWAPO's potential fighting force in the operational

area was killed by counterinsurgency forces.

There are also good reasons for President Kaunda*s call for talks with South

Africa, a call that was more tentative than that of Mr Nujoma. The Zambian

economy has been in a parlous state for some time, with the inflation rate,

for example, being nearly treble that in South Africa last year. Having taken

the bitter medicine prescribed by the International Monetary Fund, however,

the economy now shows faint signs of gradual revival. The growth rate is

moving up and diversification of the economy, and more particularly

agricultural expansion, is slowly getting off the ground. At this point in

time, therefore, Zambia needs to talk to her powerful economic neighbor and

trading and transport partner—rather than to contemplate sanctions, which

would bring an abrupt halt to any chances of economic recovery and plunge

Zambia back into economic recession.

President Kaunda is particularly interested in helping to resolve the

South-West Africa dispute. Again, he has good reasons for this. The

instability created by the civil war in Angola has spilled over into Zambia,

where there are nearly 100,000 Angolan refugees. Zambia, accordingly, has a

direct interest in seeing an independence agreement reached on South-West

Africa that is acceptable to all and that can serve as a first step towards

creating greater stability in the southwestern quadrant of Africa.

112
President Kaunda, as the elder statesman of the black states of southern

Africa, could play a role of great influence in respect of two vital issues

that stand in the way of such an independence agreement—the refusal of SWAPO

to talk directly to the democratic internal parties in South-West Africa, and

the question of the withdrawal of the tens of thousands of Cuban mercenary

troops in Angola. The state president, Mr P. W. Botha, and the Zambian head

of state last met in April 1982.

Dr Kaunda's willingness for a new meeting is an acknowledgement of the fact

that many of the problems of southern Africa can only be resolved through

negotiation with South Africa.

/9599

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113
SOUTH AFRICA

SOUTH AFRICA FOUNDATION PRESIDENT CRITICIZES WESTERN SANCTIONS

MBl10537 Johannesburg SAPA in English 0027 GMT 11 Mar 87

[Embargoed until 1000 GMT 11 March]

[Text] Durban, 11 Mar (SAPA)—It was the height of folly for the West to

weaken South Africa's economy in any way the president of the South Africa

Foundation, Dr Fred du Plessis said today (Wednesday).

Addressing the annual general meeting of the foundation in Durban Dr Du

Plessis said that it should be the foundation's single-minded objective to_

persuade Western leaders that mutual interest dictated that South Africa

should be re-absorbed into the Western system.

"If they have a 10-year vision of southern Africa as they would like to see it

one would pressume that it would in essence be the same as our own—a region

already consisting of some 100 million people that will have developed

economically on the Western pattern to the stage of at least being able to

feed all its people and to have become firmly committed to the free world camp

in the process. This desirable situation can come about only if economic

growth in the region consistently stays ahead of the population increase and

it is hard to see that happening in any of our eight neighbouring states

without the ecomomic engine that only South Africa can provide."

The morality of the sanctions campaign must be questioned and its hypocrisy

exposed.

"Fortunately there are already signs in official circles abroad of second

thoughts about the wisdom of sanctions," he added.

If the objective of sanctions was to nudge the South African government closer

to power-sharing with blacks then sanctions have had the reverse effect, he

said.

"To use an economic weapon as a means of politically persuading the South

African Government was always ill-informed and perverse. The government has

traditionally thought in political and social terms rather than in economic

ones. Sanctions have therefore had predictable conseqeunces. There is a

strong sense, in the face of what is widely judged to be an irrational foreign

114
threat, that large sections of the electorate have rallied around the

government *

"At a stroke sanctions solved its most pressing problem. Rather than

weakening the government, sanctions have strengthened it—to the point that it

has called a general election.

"What has been weakened, however marginally, has been the economy. The

government's reform programme will now proceed at its own pace rather than at

a pace reflecting a compromise with the pressures of its critics. The

government senses its strength and will act confidently in suppressing

violence and protest."

It had been the foundation's recent experience that there were second thoughts

in policy-making circles abroad about the effects of sanctions.

"There can be no doubt that a large number of important people around the

world have the Uneasy feeling that an awful mistake has been made and that

something has been set in motion that might have serious consequences for all

concerned. There is widespread doubt and uncertainty as to what course should

be followed as regards South Africa, and important people are seeking counsel,

analysis, and advice. This offers an unprecedented opportunity to the

foundation, he said.

"It would be wrong for South Africans to assume, as they increasingly are

doing, that escalating sanctions are inevitable or even that sanctions need to

be a permanent feature of relations with the rest of the world. There is a

great deal of disquiet abroad and doors are open to those like the foundation,

who can soberly assess the situation and the consequences of reducing ties

with an area which remains of central concern to Western governments."

To make the most effective use of this opportunity the foundation would need

closer-cooperation at a detailed level with those organisations that supported

it.

Turning to domestic issues Dr Du Plessis said that critical choices had to be

made.

"We cannot be blinkered to the fact that the problems that have so

remorselessly plagued South Africa for the past 2 years—disinvestment and

sanctions, internal unrest and violence, the enforced moratorium on foreign

debt repayments and the drying up of foreign capital, the decline in the value

of our currency, and fears of hyper-inflation, unemployment and lack of

investor confidence, and finding ourselves in a state of emergency with severe

censorship of the media—are all rooted in the political power struggle going

on in our country.

"Clearly there is need for urgent and courageous action and for statesmanship

of the highest order. South Africa's position in all the contexts I have

just enumerated deteriorated still further in 1986. The government's

115
recognition of the need for action came already in 1982, when it split the

national party on the issue and launched its reform programme. But

notwithstanding some real fundamental changes in laws and attitudes, the

programme's scope and implementation seem to have led to even more strife and

disagreement in our deeply divided country and to have destroyed its

credibility abroad.

"In these circumstances it is tempting for many South Africans to turn their

backs on the world at large and to convince themselves that we can go it

alone."

/9599

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116
SOUTH AFRICA

CAPE TOWN SEEKS APPROVAL FOR SCHOOL DESEGREGATION

MB061227 Johannesburg SAPA in English 1059 GMT 6 Mar 87

[Text] Cape Town, 6 Mar (SAPA)—The Cape Town School Board has asked the

Department of Education to allow those peninsula schools wishing to open their

doors to all races to do so. A motion to this effect was passed by the board

this week.

According to the chairman of the school board, city councillor Mr Dick

Friedlander, the motion refers to the fact that some schools in the board's

constituency had tested the opinion of parents and had found them to be in

favour of opening their schools. "We are asking the department to consider

this decision and to implement it," he said.

He said that seven members of the board had voted in favour of the motion, one

had voted against, and two had abstained. Two members were not present.

There are 32 high schools and 70 primary schools in the area controlled by the

board. Of these, 12 high schools and 24 primary schools are either Afrikaans

medium or dual medium. The total number of pupils in the area is 35,483, of

whom 30,010 are English and 5,473 Afrikaans.

Mr Friedlander said parents of pupils in about 12 schools in the areas of

Wynberg, Constantia, and Sea Point had indicated that they were in favour of

"opening" their schools.

/9599

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117
SOUTH AFRICA

90 PERCENT FAVOR 'GRAY AREA* IN CAPE CITY

MB090457 Johannesburg SAPA in English 2204 GMT 8 Mar 87

[Text] Cape Town, 8 Mar (SAPA)—A petition circulated among white residents

in Lansdowne, Cape, was signed by 889 residents which showed 90 percent of

those interviewed were in favour of coloured families living there.

Miss Amelia January, one of the organisers of the petition, said her group

spoke to 989 people, of whom 889 signed the petition to urge the government to

allow Lansdowne to remain a grey area. A hundred people did not support the

petition, which showed 10 percent were against the move.

Last month coloured families received letters from the Department of Local

Government, Housing, and Works, stating that as the area has been "declared an

area for the use of the white population group" and "as you are not a member

of the said population group," the government "is prepared to purchase your

property in order to enable you to acquire a property in an area which has

been proclaimed for use by your population group."

The governments attempt to evict the same families from the homes early in

1984 was dropped after white Lansdowne residents signed a petition in support

of those faced with eviction.

The minister of constitutional development and planning, Mr Chris Heunis, was

not available for comment.

/9599

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118
SOUTH AFRICA

BLACK SASH REPORT CRITICAL OF REFORM MEASURES

MB130635 Johannesburg SAPA in English 0611 GMT 13 Mar 87

[Text] Johannesburg, 20 Mar (SAPA)—For every person who has benefitted from

the government's reform measures "there are many hundreds whose condition is

immeasurably worse than it was a year ago—who are poorer, more frustrated and

very much more angry," according to the Black Sash.

The warning was sounded at the Black Sash conference today in a report based

on 16,181 interviews in the organisation's Johannesburg advice office. The

report views the conduct of unscrupulous employers in addition to the failure

of "reform" as joint causes of this growing anger. The repeal of the pass

laws has not decreased the need for the Sash advice service, the report

states. In fact the number of interviews conducted in 1986 represented an

increase of 13 percent on the 1985 figure.

"There is an entirely new system of law but there is no real freedom of

movement. There are new names to government offices but the same officials

continue to deal with the public. The bureaucratic obstruction which we have

complained about so often in the past continues unabated."

The report, written by former Black Sash president Mrs Sheena Duncan and a

Johannesburg researcher, Ms Joy Harnden, makes a heavy attack on exploitative

employers. "Deplorable employment practices continue. For every company

which has an organised labour force and positive employment practices there

must be 10 others which exploit their workers and cheat them of their legal

rights," the report says. "Advice workers are astounded at the widespread

evasion of legal obligations by employers and the amount of downright illegal

behaviour. At least 46 percent of all problems presented in 1986 arose from

unemployment." Employment complaints included:

— 358 cases of abuse of workers—frequently featuring physical assault.

— Unfair dismissals and retrenchments.

"People come to the office in a group to say they were told to leave without

warning and without reasons being given and without proper pay. Others

complain that they arrived at work to find the firm closed overnight, the

doors locked and no one there to deal with. These 'fly-by-night' companies

119
are most difficult to trace. They leave their workers without UIF

[Unemployment Insurance Fund] cards, without pay, without tax certificates,

without redress," says the report. "Many workers get severance pay without

any statement of a breakdown of the payment. 'We are paid from the till' and

'we are just given cash with nothing' are frequently heard from workers," says

the report.

Pension fund inefficiency,, [sentence as received] Funds are struggling to

keep pace with the demands on them, the report says. "Inefficiency heightens

the retrenched and dismissed workers plight. People are faced with

inordinately long waiting periods. Files are lost or destroyed.

/9599

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120
SOUTH AFRICA

DPSC CALLS FOR 'NATIONAL DETAINEES DAY*

MB091224 Johannesburg CITY PRESS in English 8 Mar 87 p 9

[Advertisement issued by the Detainees Parents Support Committee, DPSC;

passages within slantlines published in boldface]

[Text] /NATIONAL DETAINEES DAY/

/Thursday 12th March 1987/

/9 MONTHS OF THE EMERGENCY/

/We the undersigned call on all concerned people to demand the immediate and

unconditional release of the thousands of South Africans incarcerated in cells

throughout our country./

- Since 12 June 1986 over 25,000 people have been detained.

- Of these approximately 10,000 have been children.

- Approximately 3,500 women have been held.

We don't know the full extent of the number detained because the minister

refuses to reveal these figures:

The detainees have one thing in common: They are all opponents of apartheid

and the nationalist/government. Most of the detaineesPare voteless South

Africans who are operating in democratically elected and popularly mandated

structures. They are members and leaders of civic organisations, trade

unions, youth students and womens organisations.

Unlike the current Nationalist Government the detainees represent the

democratic will of the majority of South Africans.

1. Observing a national fast from sunrise to sunset on 12 March.

2. Lighting candles on the night of 12 March.

121
3. Attending the special meeting called by the Detainees Parents Support

Committee.

4. Observing Sunday 15 March as a Day of Prayer for detainees.

5. Requesting church ministers on that day to dedicate the service to

detainees.

6. Securing ways of putting pressure on the government to release detainees

in weeks to come.

/END THE EMERGENCY!/

/RELEASE ALL DETAINEES!/

/Issued by:

DETAINEES PARENTS SUPPORT COMMITTEE/

/9599

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122
SOUTH AFRICA

NEWSPAPERS NOT TO BE PROSECUTED FOR DPSC ADS

MB071240 Johannesburg SAPA in English 1226 GMT 7 Mar 87

[Text] Johannesburg, 7 Mar (SAPA)—Two Johannesburg newspapers will not be

prosecuted for contravening the emergency regulations for an advertisement and

an article published yesterday calling for a "National Detainees Day," a

police spokesman said in Pretoria today.

The police Directorate of Public Relations said in a statement shortly before

midnight last night that any newspaper publishing advertisements or articles

advocating a "National Detainees Day" would be infringing the emergency

regulations.

The CITY PRESS yesterday carried an advertisement placed by the Detainees

Parents Support Committee (DPSC) about the day.

THE STAR newspaper also published a story about the call by the DPSC.

A police spokesman from the directorate said today they would not be

prosecuted as the SAP statement had been issued after the publication of the

advertisement and article.

In their statement last night, the directorate said: "Legal advice obtained

by the SAP indicated that the advertisement constituted an infringement of

Regulation 3 (1) (H) read with Regulation 8 of the Regulations published by

Proclamation 224 of 11 December 1986, as amended. All editors are hereby

informed that in the case of publication of same or similar advertisements,

the SAP will be obliged to act in terms of Regulations 6" of the emergency

regulations. Regulation 6 empowers any cabinet minister or divisional

commissioner of police to authorise the seizure of any newspapers or

publications which contravene the emergency regulations.

A spokesman for the DPSC said today they had intended placing advertisements

in several major newspapers a day before the "National Detainees Day," but

"obviously we can't do that anymore in the light of the SAP threat.

A statement from the DPSC today said the imprisonment of its political

adversaries and critics was high on this government's list of priorities.

"The very voices that should be heard loud and clear are being stifled, and

123
the press is now being threatened not to support calls for the release of

these prisoners of apartheid," the DPSC statement said. The committee said

such actions are typical of a regime which rules by force rather than by the

support of the population. "The DPSC will continue to press forward with what

it regards as its right and obligation to fight political detention, and

intends taking legal advice concerning the latest action by the police."

Mr Percy Qoboza, editor of CITY PRESS, denied in a statement today that the

DPSC advertisement had been in any way "illegal."

He said, however, his newspaper "was today forced to withdraw an advertisement

placed by the DPSC calling for the release of all who have been detained under

the present state of emergency.

"We have not withdrawn it because it was illegal. It was not.

"We have done so because it was clear copies of the newspaper would have been

seized and destroyed by the police."

Mr Qoboza said police threats of prosecution in terms of Regulation 3 (1) (H)

were "outrageous, to say the least."

He said it merely calls for the release of detainnes—"a legitimate thing to

do and does not break any law."

The police had clearly decided that calling for the release of detainees was a

"subversive" statement, Mr Qoboza said.

"In the coming weeks when the white election heats up, newspapers will be

faced with the dilemma of hearing opposition parties calling for the release

of detainees but dare not repeat that call in print.

"I have personally been outraged by the over-zealousness of the police and

intend raising the matter with the conference of editors.

"We must clearly spell out to the minister of law and order, Mr Adriaan Vlok,

that the implications of this latest move are to make South Africa

unquestionably a police state," Mr Qoboza said.

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SOUTH AFRICA

SUNDAY STAR IDENTIFIES MAN BEHIND ANC AD

MB080824 Johannesburg THE SUNDAY STAR in English 8 Mar 87 pp 1, 2

[Article by Kitt Katzin and Sheryl Raine]

[Excerpts] "Mr Z," the mystery key figure mentioned at the Barclays Bank-ANC

advertisement commission of inquiry, is a well-known and respected business

leader in South Africa and abroad.

He is Mr Yusuf Surtee (35), managing director of the Surtee's clothing

chainstore group, whose identity was shrouded in a web of mystery and intrigue

in evidence given to the commission this week.

Mr Surtee, who has travelled widely, counts among his friends heads of state,

ambassadors, senators, and politicians.

He has had breakfast at the White House in Washington and played tennis with

the hierarchy of the Jimmy Carter administration.

Godfather to Mr Surtee's son, Mohammed, is Mr Andrew Young, former American UN

ambassador.

Another close friend is Mrs Coretta Scott King, widow of the American civil

rights leader Dr Martin Luther King.

Mr Surtee is known to be an avid supporter of Martin Luther King's philosophy

of passive resistance and peaceful co-existence.

Mr Surtee, whose clothing firm is linked to the multimillion-rand Kharbai

motor company, is the "Mr Z" who raised a R100,000 overdraft with Barclay's

National Bank to pay for advertisements for the African National Congress on

its 75th anniversary in January.

The role of "Mr Z" emerged in evidence to the one-man commission of the Judge

President of the cape, Mr Justice C. G. A. Munnik.

At the hearing, Mr Justice Munnik ordered that "Mr Z's" identity, should not

be disclosed.

125
But THE SUNDAY STAR has independently established "Mr Z's" identity and today

publishes his name in the public interest on the grounds that his role in the

loan transaction is well known outside the commission.

He is also expected to appear before the commission next week.

Barclays had recently taken over the account from a competitor.

In contrast to the secretive image created by witnesses in evidence to the

commission, THE SUNDAY STAR has established that Mr Surtee is a wellrespected, influential and popular figure in the business community throughout

the PWV [Pretoria-Witwatersrand-Vereeniging].

Mr Surtee lives in Laudium, Pretoria.

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126
SOUTH AFRICA

PFP'S SUZMAN LAUNCHES PARTY'S CAMPAIGN

MB070958 Johannesburg SAPA in English 0949 GMT 7 Mar 87

[Text] Johannesburg, 7 Mar (SAPA)—South Africans, Black and white, had been

programmed into accepted race discrimination, Mrs Helen Suzman, the

Progressive Federal Party MP for Houghton, said at the launch of the PFP

election campaign in Johannesburg today. Addressing the issue of getting rid

of apartheid, she said years of conforming to apartheid laws would not easily

be broken down. "Indeed, the truth is that apartheid will probably live on in

South Africa even after those laws have been repealed." Mrs Suzman said it

had taken a long time for the business community, the courts and sportsmen in

South Africa to take action against the disastrous effects of apartheid.

Mrs Suzman said the success of the emergency in the government's terms had

been at the cost of thousands of people detained without trial, losing their

jobs, more than 2,000 deaths and uncounted injuries. In fact, she said, the

maintenance for apartheid was inextricably linked "to draconian powers

contained in the security laws."

The apartheid laws enacted over the past 40 years were unacceptable to the

people to whom they applied—"people who have had no say whatsoever in the

passing of those laws."

She said the Rev Allan Henrickse, chairman of the Minister's Council in the

House of Representatives, who dared to challenge the Separate Amenities Act

had resulted in a pathetic and short-lived act of defiance, [sentence as

received] It resulted in "the most disgusting display of bullying and

intimidation by (the state president, Mr) P. W. Botha that I have ever

witnessed in many years of observing that gentleman. Indeed, that revolting

display of his on television makes me wonder if he has not become politically

unhinged. Whatever, he has brought ridicule on him at home and South Africa

abroad."

The task of the PFP was to continue to expose all adverse effects of

apartheid, fight racism, and create a climate essential for negotiation before

the middle ground eroded away, she said.

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127
SOUTH AFRICA

POLL SEES NO ELECTION HOPE FOR DISSENTERS

MB081044 Johannesburg THE SUNDAY STAR in English 8 Mar 87 p 1

["Election '87 Barometer" by Gary van Staden]

[Text] Independent candidates in the 6 May general elections had "little or

no chance" of winning their constituencies and the so-called "New Nat"

Movement was a phantom with little prospect of materialising.

That was the harsh judgment on independent candidates—specifically Dr Denis

Worrall and Mr Wynand Malan—and the "New Nats" Movement by candidates, party

workers, and officials from across the spectrum in the Barometer

constituencies.

When the bulk of the Barometer research into the independents and the "New

Nats" was conducted Dr Esther Lategan, the latest independent candidate to

defect from the National Party, had not yet been named.

It is for this reason that most of the answers and observations on the

independents relate only to Dr Worrall and Mr Malan.

While NP candidates and workers are obviously the least likely to concede that

the independent candidates will make a significant impact or that the "New

Nats" are a serious political force, the Progressive Federal Party and the

Conservative Party are not convinced either.

"I have very little faith in this so-called 'New Nat' Movement and only a

little more in the independents," Professor Abraham Viljoen, PFP candidate in

Waterkloof, said on the subject.

"If a person is not prepared to take a step breaking with NP, a difficult step

but one without which nothing else can happen, then I fail to see what use

they can be after the election," Professor Viljoen said.

Other PFP workers, some of whom have vast political experience but spoke only

on condition they were not named, said they were very concerned about "Nat

MP's who are prepared to be verlig and in certain instances even express

direct support for our policies, as long as it is done in secret."

128
The feedback from workers was that "secret" reformists would not help to win

or make significant gains in the election.

"It is all too easy for a secret reformist to decide after the election that

on second thoughts he will stick to the NP anyway," one worker said.

A CP official said the government was asking for the "biggest blank cheque"

but that the "New Nats" and the independents were asking for the secondlargest.

"They have so-far promised nothing but vague reforms. Where, exactly, do

these people stand?" he asked.

Dr Ferdi Hartzenberg, deputy leader of the CP, said this week that the aura

around the independents has been created entirely by the press and that the

"New Nat" Movement seemed to consist of two or three Nat MP's whom the PFP

would not oppose on 6 May.

These men, he said, were not "New Nats," they were PFP.

If feedback from the Barometer constituencies is summarised and generalised

then the following points emerge:

The "New Nat" Movement—if it exists at all beyond three or four MP's—cannot

be relied on to take a definite direction after the election because it seems

to depend on what direction the electorate itself takes.

Party sources from across the spectrum in the Barometer constituencies say the

publicity surrounding the movement has created the impression that the "New

Nats" intend to follow the electorate rather than lead it and this does not

inspire confidence among voters who are looking for strong leadership.

They said if the electorate showed an overall swing to the Right the New Nats

would remain in the NP but if it showed a dramatic swing to the Left then they

might resign and form a power block of independents in Parliament.

"Voters traditionally do not vote for people who follow the wind," a CP party

official said.

Barometer political organisations concede that there exists a large section of

the electorate, mainly on the Left of the NP and to a lesser extent on the

Right of the PFP, who are seemingly uncommitted to any party at this point.

They add, however, that it would not be accurate to describe this section of

the electorate as emerging "New Nats."

"It is a confused and apathetic electorate which is responsible for this

trend," a PFP canvasser said.

129
NP workers and candidates have no doubt that this portion of the voting

public, whom all concede are mainly NP supporters, will decide to vote for the

NP.

There is some support for this belief from PFP workers. Professor Viljoen

said he had encountered many voters in the Waterkloof constituency who said

they would probably give the NP "one last chance" on 6 May.

"It is here that our greatest chance lies of taking this constituency (and

others like it) from the NP. We have to work on these people very hard in the

coming weeks, and try to convince them that the NP does not deserve another

chance," Professor Viljoen said.

Barometer feedback also points out that there seems to be a measure of

inconsistency in the PFP1s attitude to which "New Nats" they would not oppose.

"They seem to be standing back for 'New Nat' candidates only in those

constituencies they have no chance of winning or where the Right-wing parties

look like making some gains," a senior CP spokesman said.

"In a constituency such as Benoni, where the PFP believes it has a very good

chance, it has put up candidate against sitting Nat MP Johan Lemmer but has

decided to pull out of Geduld, where it won't win, so 'New Nat' candidate Sam

de Beer will have a better chance," the spokesman said.

"Yet both De Beer and Lemmer are very verlig and so the PFP should really have

stood back for both if the policy were consistent."

Mr Lemmer has said he did not regard himself as any different to the Geduld

candidate and that had Dr Worrall remained in the NP he could have gained

valuable caucus support from "people like myself and Sam de Beer."

The independent candidates—doomed to follow the same path as other

independent candidates in white South African elections, according to

Barometer feedback.

"Independents traditionally have not enjoyed wide support in SA elections, and

while there is no doubt that the current crop of independents has significant

support, it will not be enough," Mr Lemmer, NP candidate for Benoni, has said.

This view found general support across party lines in the Barometer

constituencies but there were dissenting voices, especially from PFP workers

and candidates.

The general feeling was that any support the independent candidates gained

would be from traditional PFP voters. .

"The independents will gain only those former NP votes which would have gone

to PFP candidates anyway," Mr Lemmer said.

130
He believed it was a serious mistake for people such as Dr Worrall to leave

the party and hemasked what they hoped to gain on the opposition benches.

Not a single party worker or candidate approached by THE SUNDAY STAR was

willing to put his name to a prediction that Dr Worrall would win in

Helderberg against Minister Chris Heunis.

"That is not the point," one PFP candidate said. "It is highly unlikely that

Dr Worrall will win but he will gain significant support and send a powerful

message to the NP."

\

The party workers, officials and candidates were only slightly more optimistic

about the chances of Mr Malan in Randburg.

"I irate his chances, at best, as about 50/50," an experienced PFP campaign

worker said.

There was also a general feeling that if Mr Malan did win it would be on a PFP

vote only.

"He will get only as many votes as the PFP would have got," an NP source said,

"and if the PFP were going to win Randburg this time when Mr Malan may^win, if

not he won't."

There was a minority feeling in the Barometer constituencies that some PFP

supporters in Randburg would not support Mr Malan because he did not "go far

enough."

This idea, however, did find much support as party workers in the PFP and, to

a lesser extent, the NP, said PFP supporters would probably believe Mr Malan

was better than having a Nat elected.

In summary, the Barometer feedback is that while there is no doubt a

significant breakaway movement within the NP, there is some doubt about its

appeal to grassroots NP supporters.

Even among those who believe the "New Nat" revolt is widely supported and

larger than the NP will concede, the feeling is that this movement will not be

Of much help in this election.

"We may have to wait a few years before it really grips," a PFP worker said.

Other sources believe the movement could generate enough momentum, provided

the electorate as a whole supported a move to the Left, for a new coalition of

PFP MP's and some verligte Nat MP's to have an impact towards the end of this

decade.

No-one is expecting great things from independents on 6 May.

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, 131
SOUTH AFRICA

NUM URGES OFFICIAL INQUIRY INTO MINE SAFETY

MB091606 Johannesburg SAPA in English 1510 GMT 9 Mar 87

[Text] Johannesburg, 9 Mar (SAPA)--The National Union of Mineworkers today

endorsed the attorney-general's decision to prosecute the management of

Gencor's [General Mining Union Corp.] Kinross Gold Mine but said an official

inquiry was needed to raise broader safety issues involved.

"The union accepts that the criminal prosecution is the forum for determining

the guilt or otherwise of the mine's management. However, there are wider

safety issues involved in the Kinross accident that need to be canvassed and

debated in a public forum," said NUM's safety office Mr Hazy Sibanyoni.

He said the government mining engineer should call an inquiry into the cause

of the accident in terms of Section 5 of the Mines and Works Act as soon as

possible.

"The union further hopes that the decision to institute criminal proceedings

will in no way be used to relieve the Mines Inspectorate of its obligation to

hold an inquiry—a forum the union believes will help to unravel all the facts

of the accident."

The union believed a commission of inquiry should be appointed to investigate

questions of health and safety in the mining industry.

Mr Sibanyoni noted proceedings have not yet started in a case involving the

death of 30 people in an accident at Middlebult colliery even though a

decision has been made to prosecute the mine's management.

"Delays in the prosecution and enquiries do not promote the cause of safety in

the industry," he said. He added that NUM was surprised the Kinross case was

not sent to the Supreme Court as it involved the largest accident in the gold

mining industry's history.

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132
SOUTH AFRICA

BRIEFS

EGLIN WELCOMES INDEPENDENT MANIFESTO—PFP leader Colin Egliti has welcomed the

election mainfesto released by the independent candidates. He called the

statement a positive contribution to the political situation in South Africa.

Denis Worrall, Esther Lategan, and Wynand Malan issued the police statement,

which calls for, among other things, the easing of restrictions on black

politics and the media. [Text] [Umtata Capital Radio in English 1400 GMT

9 Mar 87] /9599

WAGE HIKE AGREEMENT, STRIKE ENDS—Cape Town, 9 Mar (SAPA)—Striking workers at

the Nampak plant in Bellville near Cape Town returned to work over the weekend

after management and the Paper, Wood, and Allied Workers Union reached an

agreement on wage increases, SABC radio news reports. A Nampak spokesman said

all shifts were operating normally again. Last week, about 70 workers taking

part in a site-in strike were arrested for allegedly preventing vehicles from

entering or leaving the factory and intimidating non-striking workers. Their

release without charges were arranged by the company. [Text] [Johannesburg

SAPA in English 1445 GMT 9 Mar 87] /9599

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133
SOUTH AFRICA

FOUNDATION OFFICIAL URGES ACTION ON U.S. SANCTIONS

MB110518 Johannesburg SAPA in English 0005 GMT 11 Mar 87

[Embargoed until 1000 GMT 11 March]

[Text] Durban, 11 Mar (SAPA)—South Africa had never faced a more dangerous

threat to its relations with the United States than it will over the next 2

years, Mr John Chettle, Washington director of the South African Foundation

said at the annual general meeting of the foundation in Durban today.

South Africa's opponents had targeted so-called loopholes in the earlier

sanctions legislation, and were trying to stop the export of U.S. technology

to South Africa.

In addition, they wanted to cut off further South African exports to the

United States. They had already introduced legislation to cut off all trade,

and hoped for some extreme action on the part of the South African Government

which would cause revulsion in Congress.

Finally, they hoped that it would be hard to resist such extreme legislation

when it was brought up for a vote just before the presidential election in

1988.

Mr Chettle warned against extreme reactions to this threat. In particular, he

warned against the belief either that nothing could be done to stop such

sanctions, or that sanctions could not hurt South Africa.

The answer was for South African businessmen to look after their interests

just as American businessmen looked after theirs. They should become

organised and lobby to protect their interests.

It had been reported, for example, that the South African lobster industry is

still exporting to the United States, quite legally, by using a legal

provision which determines the nationality of the fish by the registration of

the ship which catches it.

There had never been a system so responsive to influence and pressures as that

of the United States, or one where it was easier to participate in the

legislative process, or even to overturn previous decisions. We should use

the system to beat the system. As the secretary of state had said recently,

no decision in Washington is ever final.

With foresight, resources, and skill, further sanctions could be defeated, and

changes made even in those sanctions previously adopted.

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SOUTH AFRICA

MINING INDUSTRY CRISIS IN THIRD WORLD AFFECTING COUNTRY

Johannesburg THE STAR in English 31 Dec 86 p 8

[Text] The minerals industry in the Third

World is facing a crisis, and this has

implications for South Africa.

This is despite developing countries

having increased their share of world

, mine production in many commodity

, sectors in the past 20 years or so.

," Weak economic conditions in industrialised countries during the past decade have limited .demand for minerals

in general. ;"' ,7" ,

This trend has been accentuated by

; technological developments curbing

the need for minerals, as well as the

growth of service, industries which use

relatively small amounts of minerals.

Chronic over-supply for most minerals

has meant prices have weakened considerably.

Quite apart from low prices, the

minerals industries in developing countries have also become dogged by high

domestic inflation rates which in turn

have boosted the cost of investment

; projects.

The outcome has been low profit

margins at best, and often operating

i losses.

The ability and ,willingness of foreigners to invest in exploration and development of mines has been substantially curtailed. ' ;

New investment projects have been

dropped as the risks of political instability have added to the detractions.

Most large-scale mining projects

which were developed in the 1970s

have not fulfilled the financial expectations of governments, equity investors

and bank lenders.

Several projects such as the Selebi

Phikwe undertaking in Botswana have

incurred large losses, and necessitated

continuous debt restructuring.

'< Companies which have traditionally

ibeen willing to invest their own risk

'capital in certain developing countries

'have turned to carrying out exploration on a service-contract basis, partic-

:ularly in petroleum producer

countries.

; Countries intent on having proven

deposits developed are finding that

i companies ready to sell their services

, or equipment (management, technical

:' assistance) abound, but that, it is exceedingly difficult to get these suppli-

. ers to commit themselves by taking a

substantial equity stake in mining

projects.

The financing of projects by banks,

the practice in the late 70s, has similarly become much more difficult to

arrange. ••

The rising foreign debt burdens of

Third World countries, and the frequency of debt rescheduling has made

both banks as well as public sector institutions most wary of committing

more funds to risky mining ventures,

with ever less assurances of later sales

of the minerals at prices necessary to

repay loans. . ,

Governments in developing countries face difficult policy choices in

handling the repercussions for their

hard pressed minerals industries.

One option is to postpone further

mineral developments, except for minerals needed for domestic consumption, until a more propitious situation

emerges.

This may take years to happen, and

in the meantime many dormant, underused and run-down mining projects

abound in these countries.

135
Rehabilitation efforts are under way,

in some cases with help from foreign

mining companies, but finance is

scarce and the quality of labour and

technical skills in some countries is

questionable.

Another option is to establish even

more extensive state mining sectors

financed by domestic public funds.

Most developing countries have now

established state enterprises that participate in, or even fully own and manage mining projects.

The wisdom of this policy, however,

is dubious. Some of these state investments have proved singularly unsuccessful.

Some state companies have reacted

to falling commodity prices by raising

production, making matters worse by

depressing prices even further, and

forcing state treasuries to finance the

losses of state mining companies.

Alternatively, governments can energetically encourage hew private foreign investment. Here financial measures which reverse the trend towards

higher taxation in the 70s, could be

useful.

Yet in the light of prevailing poor

commodity prices it is questionable

whether financial incentives can attract significant new investments.

South Africa's mining industries in

general are weathering the difficult

marketing conditions for better than

those in developing countries.

Fixed investment in mining has expanded in recent years, in contrast to

the weakness in the manufacturing

sector.

There are, nevertheless, strong

grounds for arguing that official policy.

should be geared towards encouraging

greater investments in the South African mining industry.

For one thing the onset of sanctions,

which are favoured by some developing countries partly because of the difficulties they are facing in selling minerals, are going to render South Africa

even more dependent upon mineral

'. exports.

Mineral products in general, and

especially precious metals, are anonymous, and can largely circumvent

sanctions, unlike manufactured

products.

This alone suggests that any

strengthening of the competitive position of the industry by such as fiscal

incentives merits serious

consideration.

Secondly, the South African mining

industry is already facing increased

competition in world markets from developing countries — especially gold.

Limited developments in the minerals industries in developing countries

are concentrated to some extent on

gold as evidenced by the growth in gold

output in Brazil, Colombia, Philippines

and Papua/New Guinea.

This is supplementing the expansion

in areas like the United States and

Australia.

South Africa's previously dominant

position in the international gold market is being eroded.

Its influence in the gold markets is

diminishing, and this may only serve to

strengthen the sanctions campaign in

the outside world.

So any steps which help to expand

the South African gold mining industry

1

should be viewed as beneficial, especially if new foreign investment is promoted in the process.

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136
SOUTH AFRICA

NEED TO IMPROVE PRODUCTION SPURS MINING RESEARCH

Johannesburg BUSINESS DAY in English 12 Jan 87 p 9

[Article by Cherilyn Ireton]

[ Text ] THE gold-mining industry has spent

almost R200m (1986 terms) over the

last two decades researching ways

to improve stoping activities.

The investigations — led by the Chamber of Mines Research Organisation

(RO) — were spurred by the need to

increase production rates and improve

labour productivity.

An inhibiting factor has been the cyclical drill, blast and scraping technology

used by SA gold mines. As a result much

of the research has been directed toward

continuous methods of mining which will

ultimately speed up the rates of face

advance.

RO chief Horst Wagner says as the

gold mines get deeper, these rates must

increase to ensure a safe environment

and working conditions.

"The method which has shown the

greatest potential for achieving this has

been the non-explosive method of rock

breaking."

Coal mines have already switched to this

method and now

achieve face advance

rates of up to 200

metres a month — 30

times higher than the

rate being achieved

on SA gold mines.

The gold mining industry rate is between

15 metres and 15

metres a month. To mine the required

100-million tons of ore each year, about

280km of stope face must be operated.

Present technology demands that

blasting be done at a certain time of the

day when the mine is evacuated. The

stopes are then cleanedand holes drilled,

charged and blasted in a cycle which

often takes more than 24 hours to complete. In most instances this cyclic activity is achieved only every two or three

days.

"It was for this reason that the goldmining industry decided more than 15

years ago that one of the approaches to

improve labour productivity, maintain

costs and improve safety in deep

mines would be a programme of mechanising the stoping operations," says

Wagner.

The method which appears to have the

greatest long-term benefit is non-explosive mining.

In its search for the ultimate nonexplosive rock-breaking system, the RO

experimented with thermal shock, high

pressure water jets and the use of mechanical tools. A mining method known

as rock cutting was developed only to be

abandonded in the 1970s when labour

productivity became a key issue.

- The industry then switched its attention to another mechanical method of

rock breaking — based on an impact

action.

Impact hammers, similar to those

used for road building, were then designed and tested. "With the fractured

rock found in deep-level mines, impact

hammers can be used successfully, explains Wagner. While the overall results

have been encouraging, there is still concern about the problem posed by the

occurrence of some hard patches in the

face. This issue will receive attention

this year.

Another hurdle has been to develop

equipment that has enough impact energy and that is small enough to lit into the

narrow gold mine stopes. After much

research and testing, the RO has come

up with an impact hammer that can

137
break rock at a rate of about 10 square

metres — or 30 tons — an hour.

Experimental mining systems have

been under field trials for a number of

years at the chamber's research site at

the Doornfontein gold mine. In these experiments about 70 000 square metres —

or 200000 tons — of ore have been

broken without the use of explosives.

This year a new prototype impact

breaking system will be manufactured

and put on trial at Doornfontein.

At the same time work on the impact

hammers — the key element of the system — will continue. The aim will be to

improve the reliability of the hammer.

Wagner maintains that if gold mines

could install one impact hammer every

20 metres of stope, a face advance rate

of about 20 metres a month could be

achieved. This compares with the current industry average of 7 metres a

month. , .

"If we could also then start mining

around the clock, we could up the rate to

about 40 metres or 50 metres a month,"

he says.

To develop an ideal stoping system,

the RO was forced to embark on a wide

range of peripheral research programmes. The two most crucial have

been materials research and the development of a system to power the hammers. , .

Hydraulic power has been earmarked

as being the only power suitable for the

narrow stope faces. Traditionally, oil hydraulic or emulsion hydraulic systems

have been used underground. These systems require underground power packs

and pump stations to supply the mining

systems with high pressure hydraulic

fluid.

Now the RO is perfecting ways of

utilising the pressure of water in the

shaft to drive the machinery. This will

have the twin benefits of providing

power and water for the mine's underground cooling system.

"The major advantage of the hydro

power concept is that you no longer require sophisticated power packs underground. All you need are pumps underground to pump the water back to the

. surface. The actual equipment needed in

stopes is then much simpler."

A trial system that has been operating

at Kloof gold mine for a number of years

has proven thus far to be quite reliable

and safe.

Another research programme by the

RO tackles ways to upgrade the materials used in the manufacture of underground equipment I

The high quartz content of gold-bearing ore demands that steels be resistant

to abrasion, while the environment requires materials that can withstand corrosion.

Conventional steels normally possess

only one of these characteristics.

''Several alloys have been developed

— some of which have been produced in

sufficient quantities to manufacture

equipment for underground testing,"

says Waper.

While much of the basic development

has taken place locally, the RO was

forced to have the larger industrial

quantities produced overseas. It is now

having these alloys produced locally.

The cost of changing fundamental

technology is immense, but studies bv

Wagner have shown that mining can still

be economical if the capital injection is

accompanied by an increase in face advance and labour productivity.

The capital invested in a gold-mining

stope face is between Rl 500 and R3 000

a metre, while on highly mechanised

coal mines the investment can be up to

R100 000. The higher output enables the

coal mines to maintain their economic

viability.

Wagner is confident non-explosive

mining will ultimately become part of

the industry but admits that because the

changes are dramatic, they will take

place over a long period.

Historic evidence backs him up. At the

turn of the century, most drilling was

done using hammer drills. The first reciprocating models iwere .ntroduced in

1908, but it was 1928 before 97% of he

gold mines had changed to this metüi J.

138
Total Labour Productivity

in the Gold-mining Industry

'<&

mIntroduction of light

reciprocating rock drills

Introduction of scrapers

in stopes

^ Introduction of sequential firing,

concentrated stoping

1900 1910 1920 19301940 1960 1960 1970 1980 1990

/13046

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139
SOUTH AFRICA

MOTOR INDUSTRY DIFFICULTIES EXAMINED

Johannesburg WEEKLY MAIL in English 23-29 Jan 87 p 11

[Article by Auret Van Heerden: "Running on Empty"]

[Text] IN 1984, m lasl, *'goqd'' year;the

South African 'motor.'} industry

generated over RlÖ-billiöh. >

Just a year later, car andcbmpbnent

. manufacturers lost R450Trii each —

. and things haven't looked up since.

Founded on foreign investment and

technology,, the industry has run

aground ;. on high' input costs*

especially for imported components,

and falling sales in overtraded

markets.

It has the capacity to produce

. 400 000 cars a.year, but the market

will presently absorb, less than

200 000. This has left 50 percent of

the industry's expensive, technology

idle and, according to the National

'Association of Automobile Manufacturers of SA (NAAMSA), fed to

the retrenchment bf 35 000 motor

workers between 1982 and 1986.

', Component manufaetührs have had

•' to cut 25 00Ö jobs tit turn, and falling

sales have cost about 30 000 jobs in the

* retail sector. -

Feeder. industries such äs paint,

rubber, steel, textiles, plastics and

petro-chemicals have also been hit. •

Car sales for 1986 tumbled to a 10-

year low. They had the.'worst

November since the late 60s, and the

13 101 cars sold represented a 25

percent drop ori the previous year's

figures. The drop in pecember was an

even dizzier 63 percent.

Busses and trucks fared still worse

•— you have to go back 24 years to

find lower numbers;

None of the car manufacturers are

able to make a profit at the moment, |

and they are faced with massive

investment demands in introducing

new model lines. Toolihg-up for the

production of a new small car costs

between R40-R70m, and for a

medium to large car R60-R100m.

Most of this is spent on imports

from Germany and Japan, where

powerful currencies have

dramatically pushed up the production

costs of local manufacturers.

Imported component prices have

rocketed 350 percent, and local ones

150 percent, since 1982, pushing car

prices up some 200 percent. Average

car price rises last year were around

35 percent.

Figures like these have forced three

manufacturers to quit altogether, and

brought about two mergers. .

Industry representatives have ready

explanations, for their poor

performance. They point to declining

real incomes and inflation, and high

petrol and running costs,which have

strained' motorists' budgets.

Companies are short of cash and fleet

sales have suffered.

Expensive HP charges* and the

threat of punitive perks taxes, have

further dented consumer spending.

These problems are real, and affect

most of South Africa's manufacturing

industry — but they are not solely to

blame. The car makers are being

buried in an avalanche of errors for

which they must ultimately bear

responsibility.

They started out assembling kits that

were imported from parent

companies overseas, so it made some

sense to set up in the Eastern Cape,

140
near to ports and with abundant cheap,,

but relatively skilled, labour. These j

plants were far from the big markets

but subsidised rail charges made up

forthat.

Local content regulations, however*

and increasing demand, forced

companies to switch from assembly to

full production. From then on it made

less sense to be in the Eastern Cape. It

was far from the. Witwatersrand,

which was the major source of raw

materials, and the main market. Costs

started to'rise. , .:.

The Japanese lines were only

established later and, along with the

French and Italian makes, chose the

Transvaal instead to avoid the higher

input costs borne by GM, Ford, VW

. and Mercedes in the Eastern Cape. .. . ; But choosing the right or wrong j

location didn't alter their basic

approach .much. AH were out to

produce and sell as many cars as they

could, and the devil take the hindmost.

Well, it did.

The SA market was soon flooded

with too many models by too many

producers. By the 1980s, 12

producers were rushing out over 40

basic models. Today, after a

considerable shakeup, the industry

still has seven producers offering 29 .

basic models.

The big six producers in Europe

provide fewer models to contest a

market that swallows 10-m cars

annually; whereas local buyers sip a

discreet 250 000 in good years. The

white market is saturated, with 450

cars per thousand of the population,

while the black market has barely

been penetrated, with only 40 cars per

thousand.

Production capacity was recklessly

increased as companies fought to

increase market share by producing

yet more units of more models.

Eventually, they reached the point

where they needed total sales of

around 300 000 for the industry to

show a profit.

Companies cut costs to the bone in

their fight to survive. The 220

component manufacturers who are .

totally dependant on the auto industry

were pushed to lower their prices or

face cancelled orders. They in turn

had to cut input costs, especially jobs

, and wages.

Mergers cut jobs further.

SAMCOR, formed when Ford and

Sigma (itself a product of mergers)

joined forces, was able to cut its

labour bill in half, and the Ford plants

at Neave and Struandale in Port

Elizabeth were closed.

More painful adjustments are

inevitable, and the repercussions will

be devastating — especially for

workers. Machines will replace men,

following the trend in Europe where

the labour content per car has been cut

by 50 percent, and total employment

slashed.

The Port Elizabeth-Uitenhage

region, which has been dying for

years, will be badly hurt. It already

bears one of the heaviest

unemployment rates in the country —

about 45 percent for men and 55

percent for women — and over 60

percent of economic activity is tied to

the auto industry. As a politicised and

militant region, the implications of

this slow economic death are obvious

and frightening.

PE bears important lessons for the

industry as a whole, but whether they

will be learnt is uncertain. Producers

have proved to be too shortsighted to

leam from overseas mistakes, and the

blur of competition may obscure local

experience as well.

/13046

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141
SOUTH AFRICA

HALF OF WHITE ADULTS CONCERNED OVER DISINVESTMENT

MB131702 Johannesburg SAPA in English 1612 GMT 13 Mar 87

[Text] Johannesburg, 13 Mar (SAPA)—High income earners, older people and the

English-speaking whites were more worried and concerned about disinvestment

from South Africa, according to a recent study.

The survey conducted by the Market Research Africa found that one in every two

white South African adults were greatly distressed about the shedding of

foreign investment.

"Concern is greatest with those in executive, managerial, professional, and

technical occupations, and with those in the A income group where average

monthly household incomes exceed R3500," it said.

It found that:

-- Fifty-five percent of the high income earners were deeply concerned about

the effects of the campaign.

— Older people were more worried than the young. Only 40 percent of 16-24

year olds were worried, compared to 56 percent those over 50 years.

— Forty-four percent of Afrikaans speakers were worried, less than their

English counterparts of whom 54 percent expressed concern.

The survey, conducted between March and May 1986, was based on a

representative sample of 2,000 urban whites.

Commenting on the findings, Mr Brian Raath, head of the research group said:

"Few people realise the long-term implication of disinvestment.

"A country like South Africa with its huge untapped resources and

opportunities for development, apart from its capital requirements, needs to

keep in touch with new technology and scientific advances," he said.

/9599

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142
SOUTH AFRICA

BRIEFS

FINANCE MINISTER SEES GROWTH PHASE—The minister of finance, Mr Barend du

Plessis, says South Africa is moving from a phase of poor growth to a phase of

positive growth. Addressing a public meeting at Muizenberg last night, Mr Du

Plessis said every possible step has been taken to gear the economy for a

growth rate of between 2.5 and 3 percent this year. Mr Du Plessis said the

economy should be managed on a basis that will ensure South Africa a surplus

on its current account and enable it to settle its foreign debts. Mr Du

Plessis emphasized that the government could not only concentrate on curbing

inflation. It has to make it possible for the economy to grow and create job

opportunities. [Text] [Johannesburg Domestic Service in English 0500 GMT

19 Mar 87] /9599

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143
SOUTH AFRICA

JAPANESE S&T FIRM EXPANDS OPERATIONS IN SOUTH AFRICA

Johannesburg BUSINESS DAY in English 5 Feb 87 p 10

[Text] C.ITOH, the giant Japanese trading

conglomerate ranked among the

world's largest corporations, is expanding its trading links with SA.

The company, which is already well

established in SA as a supplier of heavy

engineering equipment, is entering the

highly competitive SA minicomputer

market.

CIE Systems, the computer wing of

CJtoh Electronics, has appointed the

National Computer Co (NCC) sole distributor of C.Itoh minicomputers and

IBM-compatible terminals in Southern

Africa.

NCC already markets Pertec minicomputers, about 600 of which have been

sold in SA over the past six years. The

C.Itoh and Pertec divisions are to operate independently.

NCC group MD Terry Burns says his

company will offer complete Cltoh solutions.

It will source Cltoh printers and display terminals on an advantageous direct supply basis through SAPEC, the

Reunert Information Systems subsidiary which distributes C.Itoh peripherals

in SA.

Cltoh's mini and superminicomputer

systems have been developed over thet

past six years as mid-range multi-user

systems for the business and public sector markets.

In the past two years the company has

made massive inroads into the Pick operating system arena — an achievement

which NCC expects to be repeated in

Southern Africa.

"The equipment has been designed to

implement the full powers of the 16 MHz

68020 CPU (central processing unit),"

says a spokesman. T

'It runs both the Unix and Pick operating systems and we'll be supporting

both here. Pick is where the majority of

our expertise lies. Third parties will be

supplying the Unix expertise."

Pick-based software is claimed to be

far simpler to work with than most other

software products.

"It's ideal for the business which

doesn't want or need a sophisticated DP

department, yet does need sophisticated

computing power," says the spokesman.

/13046

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144
SOUTH AFRICA

SA»S CSIR STRATEGY EMPHASIZES COUNTRY'S PRAGMATIC NEEDS

Scientific and Industrial Research Council

Johannesburg SOUTH AFRICAN JOURNAL OF SCIENCE in English Nov-Dec 86 pp 604-606

[Text] The Executive of the CSIR has completed

the first phase of a major review of the

CSIR's activities, with a view to formulating its future strategy, and presented

its findings and recommendations to the

CSIR Council on 16 October. The review

was undertaken for various reasons. First,

last year's government white paper on an

Industrial Development Strategy for South

Africa highlighted the need to promote industrial development to achieve economic

growth to meet the demands of a rapidly

growing population. In this, specific

responsibilities were assigned to the CSIR

regarding technology transfer and development. Second, cutbacks in government

funding and the need to earn a greater share

of its budget through contract research to

counteract inflation, mean that the CSIR

will have to expand its technology-related

activities. Third, recent international

political trends have heightened the challenges and increased the demands that will

be made on the CSIR. Fourth, the international marketplace in technology grows

ever more competitive, with the result that

in order to survive and flourish local industry requires a higher level of support

than ever before.

The change in course

This will have various elements. First, the

CSIR will strive to mobilise and manage its

resources to the full. It will enhance its corporate behaviour and character. It will accept not only commitments to research and

development (R&D) work, but also to the

successful implementation of R&D findings

as its business. It will thus adopt a marketorientated approach in all its roles in order

to become a force in developing South

Africa as an industrial economy, as well as

to promote national prosperity and enhance the quality of life for all South

Africans.

It will also set out to market itself as a

professional service in research, development and the implementation of research

findings.

These objectives are encapsulated in its

CORE MISSION STATEMENT: 'The CSIR

undertakes, fosters and manages broadly

based scientific research, development and

technology transfer in support of and to

meet the needs of South African industry,

community interests and quality of life in

a cost-effective and ethical manner.'

In its R&D line function the CSIR will

start by determining what the marketplace

wants and then endeavour to satisfy the

needs of industry within acceptable timescales. Initially, it will undertake R&D and

assist with technology transfer to meet immediate market needs, but will also prepare

itself to be able to service those needs likely to arise in the longer term.

The organization will continue to build

on its traditional duties:

• To undertake directed fundamental

research to develop innovative technologies of high potential market value.

• To provide national scientific and technical information services.

• To provide for the advanced training in

research of scientists and engineers, and

contribute to a more sophisticated

145
scientific and technical core in the

country.

• To operate multi-user national scientific

and technological research facilities on

a contractual basis.

Corporate personnel policy

In order to succeed in its objectives, the

CS1R recognises that it will have to compete aggressively in the marketplace for

those skills it will need in entrepreneurship,

innovation, management and leadership, as

well as scientific and engineering expertise.

Its staff recruitment policy will become one

of greater flexibility and autonomy, which

acknowledges success (and penalises lack

of achievement), promotes on merit on an

equal opportunity basis, encourages inservice training and the acquisition of new

skills, and allows talent to be recruited as

and when it is required, both within and

outside the organization. It will provide a

high level of scientific and technical leadership, and excellence will be rewarded in all

staff categories.

Financial and budgetary policy

The CSIR has traditionally derived income from four main sources: the annual

parliamentary grant, other grants and

levies, and contract income from clients in

the public and private sectors. From

1988/89, however, the present automatic

increase for continuation funds on the

parliamentary grant (typically 4-6% in recent years) will disappear. This decision of

Treasury to apply zero-growth budgeting

in these times of high inflation will force

a new corporate income policy. As a consequence, future budgeting will be used to

promote goal-directed activities and boost

productivity.

In practice this will mean that corporate

objectives will be met by goal setting on

both income and expenditure. In general

the amount currently spent on overheads

will have to be reduced, the expenditure on

less important functions will be sharply

decreased, and equally generally more

initiative will have to be shown in

generating additional income from outside

parties.

Corporate programmes, each with a

high-level manager and small support staff,

will be established. They will become channels for contract income to CSIR institutes,

in return for technology flows directed at

problems of market sectors beyond the

scope of a single institute.

A total costing audit in advance will be

used to determine the resources required

for each stage of a research project, which

will enable a cost-benefit analysis to be

made later. Once a research programme

and its budget have been approved, institute management will take responsibility for achieving the objectives within the

budget set. Cost-benefit analysis will be

used as the primary instrument for assessing and controlling performance.

A new source of discretionary income

may arise from ensuring that the CSIR retains some equity in the intellectual property which it generates in the form of new

products and processes, and so earn future

dividends and royalties arising from their

commercialization by industry.

Policy-making

The CSIR will move away from using the

Executive as the exclusive source of corporate policy and the committee system as

the primary instrument for assessing this

policy. Better provision will be made for

new initiatives and formulations to come

from lower levels of management, by such

means as ad hoc task groups and thinktanks of senior managers as well as technical specialists at whatever level with the

talent for long-term strategic planning.

The future operation of the CSIR will demand the wider exercise of management

skills at all levels. The use of key performance area criteria as a management tool

for improving leadership performance has

been recognised. Specialist management

training programmes will be provided from

next year, in addition to which corporate

responsibility for human resource development, finance, long-term strategic planning

and marketing will be introduced at Executive level.

As an essential ingredient of the management function, greater attention will be

paid to effective communication within the

organization and to a marketing campaign

to customers outside.

Research function

It is the research programme which will

most significantly reflect the change of

146
course. Previously, attention has focused

heavily on the inputs to an institute's

research programme rather than outputs.

Thus, no formal mechanism currently relates research effort to the predetermined

goals for an institute's performance. In

future, achievement in terms of results and

costs will be monitored against corporate

and institute objectives, something that has

worked well hitherto with contract research.

The first step in drawing up a research

programme will be the identification of

market needs and demand. A balance will

be required between the needs of the short

term and the longer term. Specialists within

and outside the CSIR will indicate the time

and financial constraints for each project,

a process known as identifying milestones.

The review of institute and corporate

programmes, in terms of financial, technical and management performance, will

in future be carried out typically every three

years in great depth, possibly with outside

specialists in the reviewing team. This process will be linked to reviewing the tenure

of management appointments.

At institute level, encouragement will be

given to problem solving and planning,

through the agency of the most suitable

people for the purpose. Steps will be taken

to ensure that institutes in future rely on

expertise in other institutes (or even outside the CSIR) rather than attempt to do

everything in-house whenever possible. Individual researchers will be expected to retain any commitment to the marketplace

until its need for the products of R&D have

been satisfied by successful implementation.

Role of basic research

In spite of the heightened attention that

will now be given to making the fruits of

scientific endeavour work in the marketplace, so-called basic research will still have

a place in the CSIR. It has an important

motivating effect on certain unusually

gifted individuals, and is vitally important

in training researchers in research methodology. The support of future basic research

work is seen as being tied to the generation

of new knowledge required by the directed

research programmes. It is thus an investment for the longer term, though likely to

have a different emphasis from past

practice.

Funding of university research

The responsibility for funding research

on merit at universities, technikons and

museums in the natural and applied

sciences, through the Main Research Support Programme, is a statutory mandate of

the CSIR. Additional research is supported

through the 11 National Cooperative Programmes, which are managed by the CSIR

through the Foundation for Research

Development.

The CSIR now declares itself willing to

transfer to another body this responsibility for funding self-initiated postgraduate

research at universities, and intends to convey this decision to the Advisory Council

for Universities and Technikons and the

Committee of University Principals. Council has also indicated its preparedness,

should it be so requested by the universities,

museums and technikons, to continue with

the main programme for research support

in close collaboration with these bodies.

Managing the National Facilities

The CSIR also has the responsibility for

managing a number of large research facilities that originated outside the CSIR but

were later incorporated (they include the

Magnetic Observatory, the South African

Astronomical Observatory, the Radio

Astronomy Observatory, the Satellite

Remote Sensing Centre and the National

Accelerator Centre, among others).

In order to prevent these facilities being

in financial competition with the rest of the

CSIR, it is now recognised that each facility

must in future have its own budget and

negotiate its own funding with the Science

Planning Branch on behalf of the user community.

Focus on technology

As part of its service to industry, the

CSIR intends being both a generator of

new technology through its own R&D programmes, as well as an agent for transferring established technology. In technology

transfer, priority will be given to those

companies with the necessary motivation,

need and maturity to benefit from it.

These ndeds can now be identified by

what is known as 'technology auditing',

147
which involves establishing a company's

present and future technology requirements

in relation to those which are available inhouse and those which must be acquired

from elsewhere.

It is also expected that South African industry can be stimulated by knowledge of

new foreign technology acquired by means

of 'technology scanning' through the

CSIR's extensive overseas contacts and the

Scientific Liaison Offices in Washington,

London, Paris and Bonn.

To promote technology innovation, increased funding will be channelled to the

institutes for specific projects with industry.

Plans are already in hand to reserve an initial R5 million or so for the Technology Innovation Fund, a sum likely to grow substantially in the course of time. A separate

fund to support technology transfer has

been established within the Department of

Trade and Industry and is likely to become

an important new source of non-discretionary income for projects undertaken on

behalf of industry.

Formation of a Technology Company

Consideration is being given to the formation of a Technology Company, whose

activities could include the identification

and marketing of technologies appropriate

for the country, bringing users and producers of technology together, advising on

patenting and licensing, and providing

business skills as well as high-risk venture

capital for the development and exploitation of technology.

The equity in such a company might conceivably be held by the CSIR, the Industrial

Development Corporation and private

enterprise. To be viable, a total shareholding of R50 to R100 million is envisaged. The operation should be based in

or near Johannesburg and run like any

other private company with regard to the

recruitment and rewarding of staff, who

would command skills in the management

of high-risk, technology-based ventures.

Such a company would subsume the

principal functions and assets of the South

African Inventions Development Corporation (SAIDCOR).

The need to change SAIDCOR's traditional role is being forced by a recent

government decision not to invest additional state funds in the corporation. That

traditional role has involved primarily a

patenting and licensing function and the

funding of joint ventures with industry.

More than 250 patent applications are on

file and a similar number of patents have

been granted on South African inventions.

SAIDCOR has invested about R15.5 million in the development and exploitation of

local technology and has earned about R9

million in royalties and levies. This investment is expected to be recouped many times

over in years to come. However, without

the ready funds to promote joint ventures

with industry, and given SAIDCOR's lack

of the desired business skills to build on,

the establishment of the Technology Company seems to be the logical next step.

Historical reasons for a change of course

In its forty-one years' existence, the

CSIR has acquired a solid national and international reputation as a patron and

source of basic and applied scientific research. The performance is all the more

creditworthy given that the national investment in research is relatively meagre by

world standards.

But with growth have come certain problems. Lately the CSIR's mission has

become blurred. In its efforts to maintain

an optimum balance between contract and

basic research it plays several fundamentally different roles (as a manager of

research, of research funding and of national facilities) and these have not been

clearly delineated. This in turn has led to

an absence of clearly defined corporate

goals, strategies and tactics. Not enough attention has been given to the implementation of research findings and seeing that

new technology was successfully transferred to its sponsors. The industrial marketplace has been relatively neglected. The

predominant research culture has been

essentially academic in character, rather

than goal-orientated.

The adoption of personnel recruitment

and promotion practices which closely

reflect those of the Civil Service has not

been ideally conducive to cultivating a lively

and productive research community. A formal research management development

programme is absent. Communication

within the organization and the marketing

of its services in the community at large

have both been relatively ineffective.

148
The next step

The new strategy involves change for

everyone at the CSIR. It is unlikely, however, that the present institutional structure

will change radically for the time being.

The new provisions will require a number

of years to be fully implemented. Some actions will be taken immediately, others require further study before being finalised.

The intention now is that most of the

organizational and procedural issues still

outstanding will have been resolved by the

next meeting of the CSIR Council in March

1987.

CSIR To Play More Active Research Role

Johannesburg BUSINESS DAY in English 29 Oct 86 p 9

[Article by David Furlonger]

P

1

tc

[Text] INDUSTRIAL and scientific re-1

search in SA is about to undergo a I

fundamental change in direction.

The Council for Scientific and Industrial Research (CSIR) is preparing

to join the rat-race and become an

active partner in the country's industrial development. i

One of its main objectives will be to

jlay a major role in the process of

technology transfer — the means by

which new technologies are developed for local needs.

A policy document setting out the

CSIR's new role says: "The CSIR's

mission has become blurred. In its

efforts to maintain an optimum balance between contract and basic research, it plays several fundamentally different roles, and these have not

been clearly delineated.

"This in turn has led to an absence

of clearly defined corporate goals,

strategies and tactics. Not enough attention has been given to the implementation of research findings and

seeing that new technology was successfully transferred to its sponsors.

The predominant research culture

has been academic-inclined in character, rather than goal-orientated."

Cutting overheads

In shedding its "boffin" image, the

CSIR will also become a hard-headed

business. Overheads will be cut and

each stage of research costed in advance. In addition to cash received

for contract research work, it will

seek dividends and royalties from industry for products and processes it

helps develop.

Says CSIR president Chris Garbers:

"If you succeed in making something

pay, we will take something for royalties."

The CSIR's profit-motive is guided

partly by government's decision to

re-assess, from 1988/89, the average

4%-6% increase the council has received in funding, and to impose zerobased budgeting.

Should the CSIR make substantial

profits in its new deal with industry,

will this persuade government to

tighten its purse strings still further?

"I don't know," says Garbers, "but I

believe there will always be a need

for government input for infrastructure and to enable something like the

CSIR to take a long-term look at research needs."

In becoming market-orientated,

the CSIR will move away from the

Sublic-service mentality of jobs-forie-boys.

"It will have to compete aggressively in the marketplace for those

skills it will need in entrepreneurship,

innovation, management and leadership, as well as scientific and engineering expertise," says the policy

document. "Its staff-recruitment

policy will become one of greater

flexibility and autonomy, which acknowledges success and penalises

lack of achievement."

The CSIR's immediate task — assessing technology-transfer needs —

149
will be achieved through privatisation of the SA Invention Development

Corporation (Saidcor). The new company will be controlled jointly by the

CSIR, the Industrial Development

Corporation and private enterprise.

The company will have a total

shareholding of R50m-R100m.

Technology needs will be assessed

through a system of "technology auditing". Experts will examine a company^ technology requirements, see

what is available in-house, what locally, and what must be brought in

from overseas.

"Priority will be given to those

companies with the necessary motivation, need and maturity to benefit

from it," says the document.

Overall technology needs of industries will also be assessed. But this

will not prohibit single companies

from seeking assistance, Garbers

adds.

"I don't want to be proscriptive.

Industry has to ask for a technical

, audit, we're not going to impose it.

Determining needs

"We would like to operate over the

whole spectrum — from maior operations to small industry. Where we

deal with the latter, we would work

closely with the Small Business Development Corporation in determining needs."

He says initial response from industry has been mixed: "We have critics and supporters. On the whole, reaction has been very, supportive.

Some individuals say it should be left

to industry itself."

The purpose of technology transfer

is to overcome the lack of research

and development available in SA. The

small market and limited research

facilities make it both impractical

and uneconomical to operate atlevels

which can be achieved overseas.

In order for SA not to fall behind in

industrial technology, SA must make

use of local and overseas development and adapt it to SA conditions

and needs.

The sanctions threat — in addition

to a growing reluctance by international scientific organisations to

maintain relations with SA — makes

such a process vital to maintain SA's

industrial development.

Garbers admits: "We have already

experienced problems in getting

overseas technology." But he adds:

"There will be no poaching. We will

be very straightforward."

The danger remains, however, that

SA may become less straightforward

if its development is threatened.

Pressed on whether SA will be

forced to pirate technology, Garbers

says: "It isn't something that has happened in the past. If we come to that

bridge, we will have 'to cross it.

"It must be borne in mind we are

doing 0,3% of the world's research

and development effort. There is an

enormous amount of development

overseas. If we are kept away from

that development, it will hurt and

erode our ability to be competitive."

/13046

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