Foreign trade newsletter nos. 9 & 10

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EICN, 14/STC/FTN/9 E/CN. 14/STC/FTN/1 0

UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

FOREIGN TRADE NEWSLETTER

Nos. 9 & 10

December 1964

FOREIGN

TRADE NEWSLETTER

Nos. 9 & 10

COWN;NTS

FORE.ORD

DEVELOPMENTS ,CT A GWTCE NEWS DIGEST

TRAD~ AGREBMbNTS

~XTERNA1 ASSISTANC2, CREDITS AND INVESTI~NTS

IMPORT RESTRICTIONS, CUSTOMS TARIFFS AND EXPORT DUTIES

K~NG AND CURRENCY

SNTE

TRADING

ccsxom

^TY NEWS EXCHANGE

RATES

65-397

~/CN.14/sTC/FTN/9

E!CN.14!STC!FTN!10

i i i

B!CN.14!STC!FTN!9 E/CN.14/STC/F~1/10

• . FOReWORD

The Foreign Trade Newsletter is prepared by the Trade section of the Eoonomi,c Commissfbn'f,'I' Africa.

The information published has been sO far almost entirely based on reports in newspapers and periodicals; the secretariat cannot

therefore be responsible for inaccuraoies or deficie~cies. It is hoped that it will be increasingly possible to p~blish information

"'I -: ~

received directly from member countries, in pursuance of the recom- mendation of the Standing Committ&e en Trade at its first session tha t the sec r-et.ar-La.t should- be kept· informed on a regular basis by individual Africa~ Governments of^csignificant developments in trade

and payments. .,

This issue combines material received during theseoend and third""

quarters of 1964. r

The geographical names in the Newsletter do not imply endor3ernent Qr acceptance by the United Nations.

<r:

E!CN.14!STC/FTN!9 E!CN.14!STC!FTN!lO

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Dh-VElOPMEIITS AT A GLANCE Algeria

Obtains .,::'8.6 million loan from British banks. 10 USSR grams credit of 115 million roubles. 10 New :currency urli t introduced. Sf

Beohuanalan'd

Reoeives' 1oan"r $3.6 inilliDn from -IDA. 10

",...

CamerC'1!l1

Concludes trade agreement wi th-Denmark. 1

A Franco-German group to invest ineotton industry. 11

Fed. Republic of ,Germany grants a loan of DM 25 million. 11_

Obtains a loan of $300,0"0 from the W"rld Bank. 11 Central African Republic

Signs aid agreement with USA for ~700,~00. 12 Intrc:due,es changes in diJ.ties and ,taxes. 31

Congo (Brazzaville)

Concluies trade agreements Wlth China and USSR. 1 China grants loan of CFAF 1 million 12

Congo (Leopoldville)

Concludes trade agroements with Czechoslovakia and Tunisia. 2 Settles external and internal debts wi th Belgium. 12

Negotiates revolving credit of BF 500 million from Belgium. 12 Obtains $10 million from ,tiD to finance iuports from USA. 13

Receives ~20.9 million worth of agrioultural commodities from UJA. I}

Dahomoy

Introduces new import taxes. 33 Equatorial Customs Union

Modifies import duties. 34

I ,

dlICIlJ

E!CN.14!STC!FTN!9 E!CN.14!STC!FTN!lO - i i i -

Eth~9])~

Obtains

DM

28 million from West Germany. 14 World Bank grants a $23.5 million loan. 14

IFC to help finance modernisation of cotton company. 15 USSR to construct thermal power plant in Assab. 15

Gabon

World Bank authorises loan of 812 million. 15

AID to grant road maintenance equipment worth

J375,000.

16 Gambia

- - -

Gambia Currenoy Board to be <let up.

56

Ghana

China to grant b8 million loan. 16

Two new factories to st5rt production soon. 16 A. new kolanut marketing scheme int.oduced.

59

Guinea

Cono Ludaa trade agrsements with UM, U..,.;R and Yu,;oslavia. 2 &

3

Tariff changes introduced. 34

Ivory Coast

Signs trade agreement with Upper Volta.

3

Krupp to build a paper plant. 16

AID grants

$700,000.

17

Obtains

$3.8

million worth of agrioultural oommodities from USA. 17 Ken,ya

CDC participates in new pyrethrum company.

IS

Obtains SF 65 million loan from China. 18 IJA grants credit of $2.8 million. 18

CDC provides Ll.l million for tea factories. 19 UK contributes to land resettlement scheme. 19 USSR aid for agricultural and otheJ: projec ts.. 20 Export duties on coffee and sisal imposed. 38

E/CN.14/STC/FTN/9 g/CN.14/STC/FTN!10

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Liberia

Concludes ;7 million loan agreement with USA. 20 Libya.

Two new commercial banks created. 56

Malaga~y Republic

Concludes trade and payments agreement with Italy. 5

France to grant MGF 1,333 million for several economic and social projects. 28 Customs tariff changes announced. 40

Exempts certain goods from import duty. 38 Malawi

Reserve Bank of Malawi established. 57

Concludes trade agreement with Ni6er.

5

West Germany grants DM

5

million. 21 IMP authorises $9.9 million drawing. 21 Various tax changes introduced. 48 Mauritania

Trade agreement signed with Spain.

7

Morocco

Concludes trade agreement with East Germar~. 7 Receives loan of $17.5 million from World Bank. 21 IMF authorises drawing of $13 million. 22

Introduces new tax measures. 48 Niger

Concludes financial agreement. with WesZ Ge1"l!larl,1 _to~

_

^{10. .} Qt Db! :1.2 m.illioJ'l.

n

IDA grants ~525,OOO loan for roa~ construotion. 23

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Nigeria

West Germany grants I,5 ..5,.miL'l-d.on loan. 23

Obtains ;39 million for construction of Niger Damfrcm World Bank, UK and U3A 23

Two new factories to be established. 24 Increases duties on imports. 49

Rwanda

Concludes trade agreement with Switzerland. 8 Senegal

Concludes groundnutagreement with France. 8 Obtains CFAF 532 million from France. 24 Sierra Leone

World Bank approves lOan of $3.0 million. 24 New currency introduced. 57

Somalia

I!@' approves st~nd~by arrangement for ~4.7 million. 25 Southern Rhodesia

Introduces Lmj.o.rt 0ermi ts for Skim milk powder. 49 Res s r-va Bank of Rhode si a estal'lliihed.57

Sudan

Obtsins Inan of Rs.50 million from India. 25 UK grants a loan of I,5 million 25

Ta.nzania

China, West Germa~ and UK extend loans for T~nganyika'sfive-year CDC, IFC and No;,'C help expand sugar milling and refining capaoi ty.

plan. 25 26 UK grants, loans and technical assistance to Tanganyika and ~anzibar. 26 Ali! grantol '$1 million loan. 27

List of import 'restrictions. 50

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Ex}ort duty on coffee and sisal amended. 51 Lic ensi.ng of sugar .impo.r-t a into .G8l:lzi·bar.. 50 Sisal Marketing Board .eet up. 59

Conoludes trade agreement with UAR. 9 New bank established. 58

Tuni§l)a

World Bank apyroves loan of $7 million. 27

Obtains $1.3 million worth of agrioultural commodities from USA; 28 Introduces changes in exp6rt and' import duties. 52

Devalues the dinar by 25 per cent. 58 UAR

Concludes trade agreement with France. ?' Receives international lcan of $85 million. 28

Receives credit of DM 8.7 million from West Germany. 29

J~~ stand-by arrangement of $40 million a~proved. 29 (btaj ns '1 loan of 252 million rouble s from U.sSR. 29 Ne', °oreign transfers tax imposed. 53

"' r,' banking regulations Lnt r-oduce d , 58.

Uganda

Ccnc Lude s trad.e agreement with U.:iSR. 9, UK extends ..6 'nj Ilion loan.

I,is-+: of jmport r-e st.r-ioti ona ,

29

53

.~£Vol;,a

Reoe rve s a brant of CFAF

497

million from France. 30 Zambi""

Changes in import duty trAatment for ~arious countries.

.55

New currency and banking legislation contemplated. 57

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NEWS DIGii:ST TRADE AGR~I1ENTS

Camero~n - Denmark

The text of a trade agreement between the Federal Republle of Cameroun and Denmark, signed on 8 October 1962, has now been published. 'I'he delay is due to the fact that the Government of Cameroun has only now oonfirmed that the agreement is considered as beill6 valid from that date. Nc value has been set for the goods involved and the agreement will be automatically 'renew~d

annually unless a three-month notice of termination is given by either party.

Danish eXJiorts will include electrical machinery and ~CJ.uipment, meat and dairy products and cereals. Danish imports from Cameroun will consist ,of bananas, coffee, cocoa, palm oil, coconuts, tobacco and timber.

(Board of Trade Journal, London, 21/3/64) COngO (B:r;azza)-China

Congo (Brazza) and the Pecple's Republic of China have signed a trade and .payment s agre,ement.The latter completes a credit agreement already signed under which China 'has granted a long-term loan of CFAF 100 million to the Congo.

Under the trade agreement China is to export machines, metals and textiles, and will import Congolese lead, zino, diamonds, groundnuts, coffee, ooooa and sugar.

'(West Al"rioa, London, 23/8/64) COngO (Brazza) - USSR

,The ri r st trade a/?;:r-e>ement between Congo (Brae aa ) and the Soviet Union was signed on 28 May 1964.

The Soviet Union will solI to the Congo maohine tools, power and eleotro- technioal eCJ.uipment, traotors and farm maohinery, oars and truoks, planes and helioopters, rnlled metal goods, oement and other oommodities.

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In return the Congo will export ores and non-ferrous metal concentrates, timber, cocoa beans, tropical fruits and other items of its traditional

eX}lorts.

(He'llfri ca , London, July_{, "} 1964) Congo (Leo) - Czechoslovakia

Under th& terms of the trade agreement signed between the" two countries, Cse choal ovakj a will, purchase Congolese eopper, 'other non-ferrous metals and agricu'l tural products :inreturn formachi ne ry , ohemical products, glass'<are and various other consumer, products.

(Africa South of the Sahara, P-ris," 23/4/64)

A cOlumercial agreement was in:j.t-ialled between .Congo (Leo) and 'lJ<nisia,

. : " , ' " , - . ' !

to enter into force immedi~tely•

.)

The agreement stipulates that Tunisia will export fertilizers, food, coaches, lorries and bicycles, while the Congo will .~,:«;p~rt",co"balt, CO:P'P.~:!:l

cocoa, coffee, cotton and palm oil.

(Ai'riea South of, tpe Sahara, P.ris, 4/6/64.

New Africa, ~ondon, July 1964) Guinea - UAR

An economic and trade, agreement was concluded ,between Guinea and the

Under the terms of the trade agreement the UAR "will export' 'industrial products in return ~Qr GUin~an coffee, bauxite and iron ore.

Payments are to be made in US dollars.

(Le Moniteu:n Af,ricain, Dakar-, ,28/3/64)

,[

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Guinea - USSR

, The, Rep1ilJl:i.c,pf Guinea and the Soviet Union recently signed a protocol on trade exchanges ccveri06 the year 1964.

Guinea - Yugoslavia

Aprotocol on trade exchanges,between the Re~ublic of Guinea and Yugoslavia was signed on 24 February 1964.

Guinea will export fruits and raw materials, and it was also agreed that efforts would be made to increase Yugoslav imports of iron ore and industrial diamonds. The total value of Guinean exports to Yugoslavia in 1964 is expected to amount to $2.5 million.

(Board of Trade Journal, London,

15/5/64)

.^,~

.

Yugoslav exports are not restricted and will be largely composed of finished metal gocds, complete indust~ial equdpmerrt , dyes, enamel<;'"a>ld hardware.

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Ivory: lGoa-st ,.:, ,Upper Volta

, ACCtrade':.agreementwas concluded between the Ivory Coast and Upper

" Volita: '(ili' l6 ApTil 1964, containing the following provisions:

1) UF",CTING THE llliPUBLIC OF TID; UPPER VOLTA;

' : _~~, ~'. L~! ", ..1.: '. . . . . ' "

A)A50 per cent margin of protection is granted to products of Customs Union origin harvested or manufactured in the Ivory Coast, thns leading to the collection by the Upper Volta Customs Servioe of all dues and taxes relative to the category in Question after granting a 50 per cent rebate on all fiscal oharges levied on similar F~ench products. Motor vehicles

E/CN.14/ STC/FTK/S E/CN,14/ ST

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enjoy the same oonditi~ns within the limits of a ~uota determined as follows for the year

1964: 80 R.4, 25

R.B,

25 R.

20B6

(1,400 kg), 20 R. 2.167 (zt

^tons),

er a total of 150 vehicles.

B) The following exemptions are provided for:

Cigarettes:PFotection to r.l!lmainAt its present rate-

67

:per oent.

Beer in oontainers: present level of protection to be retained.

Mat~hes:p:rotection

^{margin of}

⁶²

,:oer cent on the

baai.s

fOf the mMt favourable duty, assessed at present at

92

per oent ad'ldrem.

c) The ("","':i" of protection remains at 30 per cent for prl'lduots that might oompete "i thBimilar Upper V"lta pr-eduots ,

Plastio footwear Metal beds

Produots of plastic materials.

&ttled beer

Heady-made olothing, except hosiery..

.Bicycles Paintings Confeotionery Perfumery products

2) .AFFECTING THEREPu;BLIC OF THE ,IVORY COAST

A) Guarantee that Upper Volta prl'lduots will be subjeot ' . thQ tariff

applioabl~ :j;o. sim;i.1ar )vory Coast products as well as the oh8.1'ges applicable if these products were harvested or manuf'actuz-e d in the Ivo~y O"ao'.,

B)

The Ivory Ccast, will purchase in

1964

a minimum of

350

tons of Allen

"! .

Standard II staple cotton from the U~per Volta at prices fixed aooording

tc

the scale of the Inter-State Cotton Support Fund.

C) The Ivory Coast will place 'the foll'o'wing quantities and ~~alities of Upper Volta hides and skins annually:

a) Bovine hides:

-,

Vegetable tanned, 12 tons;

Calf, chrome and, vegetable chrome tanned, 12,000 m2

b) Goat - and sheep-skin:

(, ' .

Vegetable tanned, 2,SOg m2

Chrome tanned: 3,500 m

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3) It is understood that the ~ates applied are rounded off to the next higher ~umbe~ when the deoimal resulting from the ~alculations is more than Q.:5 .and. :t<" 'the' next lower number when this decimal fractiou is eq).lal to or Leas vthari O.S

4)

AFFZCTING'~OTH

^STATES:

At the request of either part'y,. a mixed commission shall meet, to study the budgetary and economic effects of the present agreement and

~ . c _ • , .

to seek all desirable adjustments t~ereto.

S)

The present _agreemG~t will come .intc effect on the date of its signature.

(Lel'Ionfieur African, 'Dakar,

9/5/64).

Ma1asa:ay'Republic Italy

A trade and payments agreement was sigl'3d on 1 July 1964 between Ital,y and the Malagasy Re~ublic. The agreement is for a duration of two 'years and will: be renewed automatically unless terminated by either party within three montb..s of. the, .d1!-.teQf- expuy _. ..0

It~lian exports will inclUde'hortiou1tural products, wines, foodstuffs, clive oil, 'cement, marble, buildi~' mate~ials, ohemical and pharmaoeuti.al·

products,·t'ires and inner tubes, textiles and c. ,leather goods, motor vehicles

·art<i'

traotors, railway equipmen't, machifier;)' and plant (eleotrioal

and other); refrigerators, sewing machine", office equipment, engineering..

products and ~etrcleum products.

Exports from the Malagasy Republic will o~nsist of tropioal pr~ducts

foodstuffs, hides; minerals and tinber.·

(Board of Trade Journal, London, 28/8/647' Mali - Niger

A trade and payments agreemant was signed "n 16 January 1964 between Mali and Niger, for a duration of two years, renewable autolliatically. A

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mixed commission up to supervise 'the implementation of this agreement. The provisions of the agreement are as follows;

Trade

Trade between the two oontraoting parties shall be subject to the issuanoe of export' authorizatiqns or import licenoes in _cnnf~rmity with

,^,';

the foreign trade and exchange regulations in force in each of the two

count~ies; those doouments will inter alia be the sUbject cf a bank domiciliation with an authorized intermediary.

Furthermore, export authorizations for produots or merchandise consumed in tto terri tory of one of tlle'

other than French francs or other Franc by an exchange co~mi~ment indicating the

parties and paid for in currency

~one currencies shall be accompanied

'f ".

type and amoutlt of the foreign exchange that must be re-assigned by the importing country. 'rhese axpcrt

authorizations may'be issued only on previous presentation of the corresponding import licence.

Financial settlements_...

_---

All financial settlements between the two countries arb to be made through accour~s opened with the Bangue de la Republigue du Mali and the Bangue centrale dGB Ef~~i:Afrigue de l'Ouest. The same will apply to,the, settlement of postal 'financial operations, whioh will be resumed-

betwee~ the' two oou~tries on conditions fixed by the national exchange

regul~tions, ,~he Offioe des pastes et telecommunications du Niger having an account :with th5 Banqu'e de dev-eloppinent de la Republique du Niger at Niamey.

Frontier traffio

The implementing instrument regarding frontier traffic siGned at the Bame time as the trade and payments agreement provides that the value of oustomary frontter'traffic in products of normal lcoal oonsumption must not, exceed, per person and year, a value _~f CFAF 5,000 for food products and CFAF 20,000 for ani~als.

; "

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Nationals of Niger engaged in suoh traffio may obtain from the Mali Customs offioes CFA franos in exohange for their holdings of Malian franos.

Conversely, Malian nationals oarrying out similar transaotions may oonvert into Malian franos the exohange value of the produots or animals sold in Niger.

Transit

The second implementing instrument oonoerns reoiprooal transit faoilities and' regulates transit from Dahomey to Mali, Algeria to Niger, Ghana to Mali, and Nigeria to Mali. It provides inter ~ that merchants making use of transit facilities may not take more than eight days to cross the tflrri tory.

(Le Monit~ur Afrio~n, DakGr, 18/4/64)

Mau~itania

-

- Spain

On 14 FebrUary 1964, a tr~de agreement was oonoluded between the

Rep~olic of Mauritania and Spain. The agreement, whioh is for an indefinite

pe~iod. oomes into effect from the date of ratifioation.

AmOngst export produots from Mauritania are oattle on the hoof, meat and hides, fresh fish and orustaoeans, tinned fish, fish meal and roes,

,

gum arabia, iron are and oopper ore.

Spain will export tinned meat and vegetables, beverages, tires and other rubber products, wool, cotton, artifioial and synthetio fabrios,

footwea~,_. domestic ware, meohanical and electrioal apparatus, machinery,_{\! " , - " .} chemical and pharaceutical goods, paper and paperboard.,

No quotas are stated in this agreement.

(Board of Trade Journal, London, 17/4/64) Morocco ~East Germa~y

. .e .~

•

On 31 July 1964, Morocco and East Germany signed a tr~~e and payments

~

.

^,-

agreement for a three-year period effective from 8 August 1964, fixing a"

total trade turnover of $5.3 million for 1964-65, .$6.3 million for 1965-66, and $7.8 million for 1966,...67.

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Payments fClr transactions related to this agreement are to be settled through a clearing account which will nClt involve any foreign exchange adjustment.

Morocco will import mainly manufactured g ood s (fertilizers" radio.s,

television sets, textiles, etc.) and will export mineral products (princ~pally

phosphates), citrus fruits and dried fruits.

Trade between Morocco and East Germany totalled ~2.2 million in 1963.

(rnterna tional Financial.News Survey, Washington, 18!9!64) Rwanda - SwitzerlanQ

A trade and protection of investment aGreement between Rwanda and

..,,-.

Switzerland was recently concluded. This agreement is valid in

ihe'

^first

instance until 31 Deoember 1964, but will be automatically renewed annually subject to three months' notice of termination.

The main provision"f the agreement is that e^f r-ecLpr-oc.aI most-favl'lured- nation treatm~nt, which app1ie s to both trade, andinv:estmll:",t,.

(Board of Trade Journali'lJOridon, 17/4/64) Senegal'- France

,

..

France is to take a guaranteed quota of Senegal's groundnut produotion during the 1964/65 season at a price above'that prevailing on the world market.

An agreement was signed on 6 August 1964, under whioh Franoe will absorb'483,000 tons of Senegalese groundnuts, of which,,200,000 tons,is, to be exported in the form' of shelled groundnuts at a price of F 90.5C($18.50) per 100 kilagrams, and the equivalent of 283,OOe tons of shelled groundnuts in the f'lrm" :>,f groundnut oil at a price of F 105 per 100 kilograms.

The agreement, which is for the coming season only, safeguards Senegal against an abrupt fall in revenue resulting fro~ her obligation, und~r the new Convention of Association with the EEC, te align her groun<1lurl prioes with those ~btaining on the world market by 1 November 1964.

(West Afrioa, Londr-n,

15/&/64;

^Marobas

Tro.picaux E.aris, 15/fli'4;

Lv ~ ~,l]c,br 15/8/64. )

E!CN.14!STC!FTN!9 E!CN.14!STC!FTN!IO PaGe 9

Togo UAR

A trade agreement was signed on 17 March 1964 between the Republic of Togo and ffihe UAR, to be renewable annually.

Und,erthe,. t.erms of the agreement Tcgc will export groundnu'ts, coo oa , ,c<:!ffee, Lr-on ore and certain varieties of wood. The UAR will supply Toge

with textile and cther industrial products.

,PaYment is to be effec ted in convertible sterling and current world prices will apply.

(Marches Tropicaux, Paris, 28/3/64) UAR - France

A trade agreement has been ooncluded between the United Arab Republic and 'France" which is e xpec tedt tc double the tr.de exchanges between the tWQ countries through the liberalisation of oertain qu~tas on both sides.

The agreement will permit the UAR to expcrt t~ Franoe textile producte, vegetables and fruits and for France t~ export to the UAR machinery and equipment and semi-finished and primary produots necessary for the 'third five-year plan.

(1e Monde, Paris, '14/7/64) Uganda - USSR

The Uganda government has concluded a trade agreement with the Soviet Union.

Under the agreement Uganda will sell ccffee, cotton, tea, hides and skins, groundnuts, tobacco and mineral ores. In return Ueanda will buy agr:loult.ura l products" ,vehioles, watoh"s, radios and c er-tad n other c oneumer goods.

,(Afric,? South of the Sahara, Paris, 14/5/64)

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EXTERNAL ASSISTANCE, CREDITS AND INVESTMBNTS Algeria - UK

A consortium of British banks has accorded to Algeria a loan of

;'18.6 million vhi.ch will'be used to finance tbeoonstruction of ';he third

-

p.i^pel.i.ne from the, Saharan ()ilfields to Arzew on the Mediterranean c oa at ,

• The .greement was 'signed 'between the National Company for Transport and Marketing )f Hydrooarbons of Algeria (Sonatraoh) and Kleinworth, Jlensop.Ltd.

The credl t is repayable in 11 years, at an interest rate of 5.5 per oent f?~ ~he firs~ seven years and at 6.5 per oent for the rest of the period.

The c ons^tr-uotd on of the pipeline will oost ;'25 million, and the credit

:1 -

given by the British banks represents

75

per cent of tp.e total oost •. ,

" ' j

• (LeMonde, Paris, 2/9/64; , ' AfriQue Servioe Paris, 30/9/64) Algeria - USSR

,0

The USSR ha.sagxeed too grant a Qredi t of 11:5 million roubles to Algeria to cjver the cost of a combin~d metallurgioal and chemioal w~rks.

The metallurgical capacity will be about 350,OOC tons of rolled metal a year. The Soviet government has also undertaken to organize and hand

over to the Algerian government, without payment, a petroleum and gas institute and"!J."'technical oollege' at-tached to'·,i.'t', which together will be able to train 2,000 students a year.

, (1e Monde,' Paris, '8/5/64; Il1ternational Ft~a~gt~t News Survey, Washington, 29/5/64) Bechauanaland IDA'

The International Development Assooiation, an affiliate of the World Bank, has extended a credit' eQuivalent to $3.6 million for highway develop- ment to Eeohuanaland,

E/CN .14/STY/FTN/9

~/CN.14/ST~/Fli1/1G Fage 11

Tho credit ",ill :'.8pist the constructi on or r-ac onstr-uo tdcn.iof three ruads, totalling 355 mil08 in len6th, th~ impro,.~ment of the main 418-mile norih'-n(>~':~), ~,'~ '~) ['^,1 b~t!ter l'Ld.d "maintenance,

The, IDA credi t ).8 f'or ^E, tent of 5Uyears. Repayment of the principal

:". "', 1_

1-rill _b8g~i? in .1_S7~~ art or a ten-y:.ear 9race period"

(~0 .Financial Times, 1nndon, 5/8/64)

.~'!::iH:!:':-:::. Fi''l'2.".~Fed. Re:eu~lic ^{( i f ,}G",rmar~y.:

A . ""'lco-German group has concluded an agreement wi th the Federal Repub.i.Lc of', C"'::"-",(01)/1 :::'or. ·the cr-e ati on of' a o'ott.ori in:lustry in that country,

'f'h: Fe,d8ral HepubJ,.i~"of ?am8rounwill, c~ntribute part of .t.he capital.

T,';e, j!?an P:('OViD,38 fOT inY,e~t'lle'1tsamou.nting to CFAFI. 5, million. distributed bot uo c.a t~N..o ractor.i.es ; u)J:~ for apd nni.ng and weaving in, northern. Cameroun

. '.- "co~.i._

and T·h3 o bhe.r for r:,:.j.nting l.n DouaLa.,

(Africa South of the Sahara, Paris, 28/9/64;

AfriQue Service, Paris, 30/9/64)

Tre F,oD.eu.' ne-;ou:O:i" of Ger-mariy has agreed to grant the Federal Re pub L: c. ^{r j f} ::er.:.o·,UU'. 'a 20 year 'are'dlt of DM '25 million at 3 per cent

i'nterec.tto ^f .iuanne 'This is part of a credit

Line b£ ^lJl\!AO n;U:li,-r- cjJ<;ned last ye~r, The funds will be used to purchase equf~:;inertt from _G,~.:nll:.Ey~

(Intern&tional Financial News SUrvey, Washingt~n,22/S/64\

Cameroun. - I)3RD

---"-.-,

--~-'~"-'--' '---:'.

'['wo loam, have been granted. to the Federal Repu1:lli9 of Came!'9)-!!lPY the Worlel Bank , One 1oa.n:Jf

szoo,

000, Hill be used fpr the. development

0t

Cocoa cultivation, and thEe second Loan, in the amount of.

sioo.ooo,

fe'r tho. CGnstrllcti.c.l~ ^n-t' ; n Nor thez n Cameroun>, ,,-. •

'0"

(Le Moni teur Africain, . Dakar, 19/9/64)

:^,)

,'E!CN,14!;3TC/FTN!9 E!CN,14!sTQ!Fn'/lO Page 12

Centr.al',African Republic USA

On 28 May 1964;'tHe'iUriited Stai:e's signed a new aid agreement with the Central African Republic,ambuilt'ing to ',~700,OOO. The agreement' covers

~ a ;number pf pI'oj"cts SUG,h as trairting 'of operators of heavy road-work

equipment, control of catt}e disease, t1e necessary equipment fnr establishing a pilot agricultural co-operative,

v

0:1"',.,' :-;.. :~ ...<-_:: ." "and maintenance of airports.

This agre ement brings Uni ted States aid to the Central African Republic to a total of about $1.6 mill:e"n since 196'3.

(Le_{, ,} M~niteur_, Africain, ~akar, 8/6/64)

'. ^,.

Congo (Brazza) - China

'" Anag,reemaj<t has, be;:Hl; conoIuded b,e,tween Conge' ,(Brazza)' and the People ^Is

,lfe,l)ubl~" qf ,C:hi;n.a,"lhereby the;L(ftter ,will ex te nd ^.« loan ^A!- eFg 11:111icn, w;i"th,ou.ti'!;terEH>:tancl: r",payable ,in ten years. The credit, is for promotion of

emaI L c o n aume r- indutries in the Congo'.

(La Moniteur Africai~, Dakar, 17/10/64)

',.'

DiEcussions are proceerlin_b for the c;rantintS' to Congo (Leo) of a revolvl~g ~ommerciai credit

of

BF' 500'rnillion by Belgian banks. It is expected that th'e dedit will be for 'six' months,' renewable up to two and a

'half'y"a.;'s'.

"Products 'for wh'i'ch the credit miGht be used would consist 'of'c'cmsumel'g'odd~ (exceptfDr c'er tad n luxury goods), certain raw materials

and spare parts. The use of the credit would be subject to clearance' wi th 'tl:l.,,-~lat,i,~na.l E1j.nle :uf£elgiulll'.,,',c"

(International Financial News Survey, Washingt9n, 1/5/64)

~_, (Leo) - Belgium

- . .'

"A n,ew', agre,ement has-.been negotia'ted between Belgium and Congo (Leo)

>()J1' thes\,tt;Lement',of' Congo' s:int,ernal and external debt, on the amount of

indemnification debt to Belgians injured as a result of dis"rders,and on general Belgian financial assistanc~ t~ the Congo.

The Congo government will assume responsibility f"r the debt in eong~

francs, totalling CF 20 billion.

E!CN.14!STC!FTN!~

E!CN.14!STC!FTN/10 Page 13

The Belgian government will continue to assume the responsibility for that part of the Congo's debt guaranteed by Belgium. The BF 12 billion.

($240' millio~) non-guaranteed portion of Congo's external debt is to be, o"nvcerted into a 40:"year loan at 3il- per cent, which is to be managed by....

a jcint Belgian-Congo inotitution; amortization and interest payments will be met o~~ of annual,contributions of BF 300 million from the Congo govern- ment and BF 210 million from the Belgian government.

Belgium has als~ committed herself to a finanoial assistanoe of BF 1 billion. At the request of the Congo government, half of this 8~m

will be made available for purchase of equipment and the remaining half for oonsumer ~oods to be obtained from Belgium. Furthermore, Belgium has offered BF 180 million for finano:ing the develop~ent of cotton produc,t,j.o!1, in the Congo. ' .

Provisi~n is also made f~r the Belgian government t~ utilize the"·

BF 750 million of Congo assets in Belgium to start indemnificati"n payment~

to former Belgian residents in the Congo.

(International Financial News Survey, Washingtl'ln, 24/4/64) C"ngC (Leo) - USA

$10 Ii

The Agency fOr International Development has allocated an additiohal million to the Republic of the Congo f"r the financing nf certaih imports from the United States.

These materials inclede hand tools, motor vehicles, parts an.d

accessories, yarns, thread and man-made textile fibres; c ot t en .fab:x:,ics.", •.

cord, rope, and twine; miscellaneous textile pr-oduct s and chemicals and

chemioa~preparations.

(International Commerce, Washingtnn,

B/6!§41

Congo (Leo ) - USA

,- ^~,

Under the US "Food for Peace" programme', the Republic of the Cong"

is to obtain, $20.9 million worth of agricultural commodi ties, the value to include certain ocean transportatio,n costs.

E/cN. i4/

STC!FTN/9-

~ E/CN.14/STC!FTN!lO Page 14

',,_: ·_c.__~~_ ~_.--__~_." -~~r- .•--,

The agreement provides that 15 per cent oflocalcurrencYJ'ece:i:ved.··ir.

payment will be set aside for United States uses in the _Co~go, 10 _,pe~ cent will bem'ade avai:Lable

fo~ l~~~~

^t'o

financee?~nom~c

,Mve;!,opme'}t

ptc~Jes-c.'t~,

",' ; . , , - ; .. ':'1.",';0',. ~:-;/:..l.~~ 0 1 . . ;•." - . , ; , , _)~,_-,,_·-",l,.,_ J_~'_ ~ ^{' , • • . , " ,} ~-. ^.' ,.~'

and' tho.,.' "remauiing 15 ver cent"iU be loane_dto~. ~<lri~~!'l_¥l~.f?~?l,.e s~.:'X~⁰

,~J ,~",l~-',~:)":':;::U"-1/--' ..~':L_ n·:o.l:_;.'''·:_~ a.J._..J:,;"J- -.;..;·:J?,U.,;..-·'),~^{.. •} ~--~-'~'" ^{- - "}

prn'liteenterprlse , ;'CO:10,U :'"1'0.",

~'F~

^{,k OI:::9cio}

Washing'ton, i8/5/64)

_, .•

Et.~iO~~~T:;'~;~~~'~;d~.~i!· ^.. ~~~~~.~~.~/L;~~~~f;YlhJ;;~ !,~~e~rffeY&E~

^{., ...}

~

8e:p~ila't'e ~~on5mic,rtna,nclal^and t~chnl,cal~f>sistall\,E?;ag,~e8(Pe,llthfd",,:r,;~~

"UJ:~'1 ^;1_0/ tC~0J:j-i:i'':;Lr!l~lC:) L.i·':,iJS.:.\..r(.l.L'L~,L ^{...C) J j r ..v " EL.I.J ..l.J..I..L} '., • . • '., :I ,G

The ma j or agre ement con~!!fPil:) r~8'fJl£~'!o6'11J.ji,jj.'l:§lfI<);)liJ[:A18fiIilil.;lJiloJls.f!J)r6f11 or Ethiopian deV'eio;~ent ^projects. The Ethiopian Development B.ankml1.·

r<lceive DM 10 million, annther DM 13 million "iU be used to ·imporv:e. ,the water supply ~ystem in Addis Ababa, and DM 5 million w~ll gc for the

p~hase o~ road-building machinery.

(Ne" Africa, London,June 1964 jAfricl. SOuth

~f the Sahara, Paris, 21/4/64j International Financial Ne"s Survey, Washington, 22/5/64) Ethiopia - IBRD

The l;orld Bank has g r-ante.d a 'lMn equivalent tc ,~23.5 million to help finance nearly

70,000

kilo~atts of new electrical generating capacity and the expansion cf transmission and.. distribution capacity'in Ethiopia.

The loan was made t~ ,ne ~thiopian ~lectric Light 'and Power Authority.

The cost /'\f the project is estimated at $,34.9 million, and the loan will c/'\ver the foreign exchange requiJ'ements. The remainder will be raised by.

the Authori ty through loans from Loca.L banks and its own reSOUl'<Y<l-s";'-··"'c-',-...

~ 'Ele Loan-d e for 25 yiJa;rs,' bears interest at

'*

per cont, and is guaranteed by ·the Government of Ethiopia. Five commerciai b~nks in the United States and one in West Germany are partidipating fnr

~

^{total of}

$915,000 ("ithout the WOTld J~r~'s guarantEe) "hich represents the first three maturities falling due bet"een March 1969 and March 1970.

(Africa South of the Sahara, Parin, 18/5/64;

International Financial News Survey, WaRhington, 22/5/64)

E/CN.14/ STC!FTN!9· ' E/CN.14!STC!FTN!lO Page 15

Ethiopia - IFC

The International Finanoe Corporation is helping to finance a

•

~aj~r

expansion and m~dernization pr~gramme ~f the Cotton C?mpany of Ethiopia.

The company will be building a new plant with 12,000 spindles and 400 looms. The $5.4 million programme also includes improving the

operations of existing facilities. The International Finance Corporation is subscribing $1 million w~rth of the c~mpany's stock and pFoviding a

$1.5 million loan.

(Ethiopian Herald, Addis Ababa; It/10/64) Ethiopia - USSR

A contract has been signed between the Ethiopian Ministry of Public Works and Communications and the All-Union Import-ixport Corporation'of the Sovi t Union.

Tue Corporation is under contract t~ construct a thermal of 13.5 thousand kilowatts for the purp~se ~f pr~viding steam for the petro.leum refinerJ' under construction in Assab.

paller plant and electricityc

The estimated cost of the pr_ject is Eth. $8.3 millicn, of which sum Eth. $6.6 million shall be c_vered by a credit granted by the soviet

government t~ ~thiopia.

(Ethiopian Herald, Addis Ababa, 6/6/64) Gabon - IBRD

The World Bank has made a loan equivalent to $12 million ,to Gabon for construction and improvement of r~ads, which will open up untapped forest regions to commercial logging operations.

The Bank loan will help t. finanoe tbe construction or improv&ment.

of three roads with a total length ~f 116 miles; services of experts; and the procurement of r~ad maintenance equipment, spare parts and repair shop faoilities for a pil.t maintenance division.

The project is to he completed within 3 years at a total cost of $13.7 million. The Lean is f"r a term "f 20 .Y8ars and bears i~t a t 5~" per cent per annum. .\m.rtization will begin ~ 1968.

(West Africa, _~r~n, 29)&/64)

E/CN.14/ STC/FTN/9 E/CN.14/STC/FTN!lO

?a~e 16

Gabon - USA

The Republic of G_bon is scheduled tJ receive up t. $375,000 worth

~f road'maintenance equipment under a grant made by the US Agency for International Development.

(West Africa, London, 19/9/64) Ghana

Work is 'to start on a bamboo fac~ory at Fodom$, which will produce cups, saucers, flower vases and tumblers, for export to neighbouring African countliJiea. Thieproje,o~istb,e .re sul.t of a survey carried out

~y Japaneoe experts to open up industries in the Volta region.

(Overeeas Review, London, August 1964)

Ghal'a - China -~ ,--.

The Chineee People's Republic is to grant an interest-freB' loan of ..8 milJion t.o }Jhana under an .ec.onomi,c .,.nd ,techf'i-calaseistanc,e agreement.

The loan is r"wayable ove;;r, a ten-year peri,od,.,etj3,Tting in '1974',_{" 0 ' •} c (The Fl'rianci:a"l. '.rimee; L.nd1m.16/7/64; ,

Ethiopian Herald, Addis Ababa, 17/7/64)

.-, .:' e' .' r '. ,... .

,--, ^~','

Ghal'.a - Fed, Republic of Germany

•

It hae been announced that a .. G 3i million glass fao'tbrYi scheduled' tl'l start pr-oduc ^ti.on by the middle .of'. 1965. at Aboso, is expected to supply the country's total requirements of bettles, sheet glass and glass table- ware. The factory is being built by a West German company, which is providin,g all the machinery, 'buildings, office equipment' and tipper trucks fbr trans-

po~ting raw materials. ^•

(Overseas Review, London, August 1964) Ivory C"ast

. r .

•

An investment agreement hae ~ee~ signed bet¥een t4e"Ivory Coast and the West German firm, Krupp. The l?tter hae co~mitted itsilf to build a

$25 million paper plant, and will provide nearly $11 million worth of ee rvi.ce s and material. The Ivory Coast will build' offices and homes for the factory etaff coeting $4 million, and a business company will be

•

. - '

...

E/CN.14/STC/FTN/9 E/CN.14/ STC/FTN/l0 Page 17

formed wi th an investment c api tal of JI0 million.

(Afrioa Report, Lond ori, June 1964;

Afrioa South "f the Jahara, Paris, 7/5/64) Ivory Coast - USA

The Ivory Coast ~nd the United States have oonoluded several

agreements to help the development of the Ivnry CoaEt eoonomy. The first oonoerns an intensive study of the soil and forest res"uroes of t"e

Southern rei!,'ion in o c-Llabor-at i o.n onth the Iv rr-y Coast government.

The Agency for International ilevelopment will oontribute ~700,000

towards this study; whioh is expected to take two years. The neoessary equipment dnd experts will be ~rov~ded by the United Stdtes.

Vnder the o thez- agreements,. ti-.e US is pr-ovi.di ng $500,000 for the development of sugar cane produotion and Jl16,000 for rural improvement and supply of heavy equipment. There is also an agreement for teohnical assistance ,

(Afrique Nouvelle, Dakar, 4/6/64) Ivory Coast ~ USA

Under the terms of an agreement signed on 10 Maroh 1964, the United States i.! to make av a.i Lab Le to the Ivory Coast 5,000 tons of animal fat

for soap manufacture and 20,000 tons of rice, worth $3.8 million.

These oommoditie3 will be sold by private Amerioan exporters to

private Ivorlan impor~erso The ~L~erican exporters will be paid by the

American government. The Ivorian importers will pax for these goods in 8Ft -francs to a special account opened in one of the Ivorian banks.

~he United State. will loan 50 per cent of the funds to the Ivory Coast government for development projeots to be r-epai d in 40 years at 0.75 per oent interest. The remaining half will be used to enoourage private Amerioan enterprise in the Ivory Coa~t and f~r oultural exchanges.

(1e Molliteur Afrioain, Dakar,

21/3/64)

,,/ CN.14/~1'C/iTN/9

~/CN.14/STb/FTN/IO P'lge 18 '

KenY9-

of Kenyn Ltd. (which A new comj.any , the

h~s been fOl"ffie4 tu t~k~

Pyrethrum Prccessing Company

over, the:t~o factories owned by the Fyrethrum BO'lrd Ltd , ) is to enter into ~ ~rocessing ~greement with thB Pyrethrum Marketing ]o~rd for a term of ten,years.

The Commonze a l th Development Cor-j.or-iti on Ifill pc,rticipate in the net;

~ ^" ' . ' "

comp'lny, through fin9.ncinl support in the 9.mount of ~300,OOO, and a share- holding ofl2 ]Cer cent.

(Overseas Review, London, Auguzt 1964) Kenya - Chin'l

r!:le Ch i.ne se ,PeopleI s Re.pub l a o h as agreed to grant, Kenya an interest- free 10'ln equivalent to SF 65 million during the period _1~64-69. The loan is to be repaid wi thin ten "e'irs, from 1 Janu'Lry 1915, i'1. Kenyan exports,

Slfiss francs or any other convertible currency 'lgreed upon by the t',IO gcvez-ru- ments.

The Loan Hill be given in the form of equipment arid te chruc-i'l as si st moe in accor-dance ;vith Kenya I G r-e qud r-emcnte ,

(.~rique Nouvelle, Jakar, 5-11)6/64 The Fin::inci~l Times, London, 21/5/64)

.

^,"

The ID, credit is for 50 years; Repayment of the principal Ifill begin on 1 June 1974', after'" ten-year grace j.er-a od , Thereafter 1 p~r cent of the principel "lill be repayable annualLy for 10 yeir-s , and 3 per cent 'fill be repay'lble annually for the remaining 30 years. The credit is free ~f interest

E/CN.14/STC!FTN/9 E/CN.14/STC/FTN/IO Page 19

but a service charge of 3/4 per cent per annum on the amount wi thd,:ra,wn ,"end outstq,pding will bevmad e to cover IDA's administrative co s'ts, The Kenya governmen,t will re-lend the proceeds of the credit to KTDA, with repayment to,be made in 16 years; including a 9-year grace period, at an interest rate of ~ per cent.

"

(International Financial News Survey, Washihgton, 21/8/64; Africa South of the Sahara, Paris, 3/9/64) Kenya - UK

The' COmmpnw»alth Devei'opment Corporation has agreed to provide nearly

~l.l million($3 million) toward the cost (estimated at ~2 million) of

cons~ructing14 tea factories in Kenya. The factories are to be used for the ~rocessing of tea grown by small holders under the programs ~f::~e

Kenya Tea Development Authority. The provision of this money by the Corpor- ation is conditional on the satisfactory development of the field ~lanting

program.

The Corporation earlier promised loans to the Authority of ~900,OOO

for te~'development,and it has also agreed to provide ~160,OOOfortwo of the three factories already established.

(The Times, London, 19/8/64) Kenya - UK

A new British-financed land reBettle~~n~. achem~ under which BOrne

2U,OOO Africans 'will move onto land now being farmed by Europ€lanJ;",:was announced. The '~cheme will cOst ~1.5 million,' which will be provided partly by loan and partly by ,gift by the British Government.

~4is latest British grant is additional to the earli~r undertaking to provide about ~19.5 million over five years for resettlement schemes, of whioh ~9.2 million has already been contributed.

(The Financial Times, London, 13/8/64)

E/CN.14/STC/FTIi/9 E/CN.14/STC/FTN/IO Page 20

Kenya - USSR

The Soviet Union has undertaken to help Kenya in the r-ea.Ldz atLon of several agL'icultu,al projects (textile mill, fish cannery and fruit processing plant) and the installation of a radio station. The Soviet Union has ae~eed to extend a oredit, the amount of whioh will be fixed later, to put this co-operation into effect, as well as to provide the necessary technical assistance. Furthermore, the Soviet Union has ~ffered

to build a 200-bed hospital, and a laboratory and technical c~llege which can accommodate 500 students a year.

(AfriQue Nouve Ll e , Dak~r, ^5-11/6/64;

The Financial Times, Lcndon , 21/5 '64) Liberia - USA

A 37 million loan agreement was concluded between Liberia and the United States, for the purpose of expanding the capacity of Monrovia's water supply"

The Monrovia public utilities authority will build a new pumping statio", river "ater treatment ,plant and a tran8mission main that will increase the capacity of the drinking water supply ,to an average of eight

millio~ gallons a day, The Liberian government is contributing ,800,000 to make up the project's total cost of ;7.8 million.

(USIS News Bulletin, Addis Ababa, 4/9/64)

France has recently granted the Malagasy Republic MGF 1,333 million

(~5.4 million) to be used for financir:g,27 different economic and social development projects. The funds >lill be disbursed through the Fonds d'Aide et de Co-operation (F~C) and >lill be divided among agricultur.l projects

(40 per cent), infrastructure (28 per cent) and various studies and miscel- laneous projects (3Zper cent).

'(MarChes Tropicaux, Paris, 9/5/64; International Financial New s Survey,:/ashington. 7/8/64)

<

E/C~·t4/3TC/FTN/9 E/

cn

.14STC/FTN/10

" Page 21

The Federal Republic of Germany has accorded to Mali a grant of DM

5 million'rOl" the lnst"llation of an irrigation system in the region "f Gourma, and 'for cattle farming.

(Le Moniteur Uricadn , Dakar-, 22/8/64)

I'iali - IMF

The, Lnte nna td ona.I Monetary Fund has authorized a drawing by the Government of Mali equivalent to'9.9 million. The drawing is intended to support the efforts beinE; made by the Malian authorities to overcome their b a'lance of j.aymerrt s defici~.

~. ': c.'.... . '. . ,~

The new measures include cuts in government expenditure and increases in taxation.

(Le Mona teur Africotin, Dakar , 11/7/64;

West Africa, London, 11/7/64) Morocco - IBRD

On 26 August.' 1964 the ,Iorld Bank made, loan equtval errt to

n

7.5

million' to _-~:~oroceo to assist a n .financing the Sidi Sli:nane agri cu'ltur3-1 .:

d.eveLopme nt and irrigation programme coVi')rihg'''some 250,000 a.cr-e s , It is' a pilot,mdt:rtaking to introduce mo de r-n intensive 'igricultur-e into Morocco

with the purpose of' Lnproving the -'Que!li ty and quanti ty of agricul tural

~rod~cts both for the home m'rket Bnd for export, of diversifying

production, mainly through the introduction of sugar beet to meet part of Moroce's sugar re~uiIements, and of improving living st3ndards by raising

I'he project is esti'll'lted to cost 046.6 million. The Bank loan is for 25 years, bears interest at _5~ per cent and has a grace period of eight years.

Bank of Amerioa National Trust and Saving ~ssociation, San Franciscc, is partioip~tingin the lo~n to the extent of 0100,000 without the World Bank's guar~ntee, representing part of the first maturity which falls due on 15 September 1972.

(International Financial News Survey, Washin3ton, 4/9/64)

,L/eN.14/

STc/n,/9 E/GN.14/STC/F~"/l~

Page 22

~f;orocco - IMF

The Interrational Monetary Fund has agreed to a drawing by :he Government of Vor~cco equivalent to ;13,125,000, to be made half in French francs -md half in Ger."n marks. This Kill be the first occasion on which Morocco h.i s used the Fund's r-es ou r-ces , A stC'.nd-by arrangement for ,,25 million in November 1959 exjdr-sd unused a year later.

(rntGrnational Financial News Survey, Washington, 26/6/64

~er - Fed. Republic of, Germany

On 30 June 1964, the Republic of Nige'rand the Federal Republic of Germany concluded a financi"l ce-scper-ation agreement, inveI ving a loan of DM 12 million.

Under the agr~ement, :prt or this loan ldll be used to finance the construction of ~ tannery and a ffiG"t cannery, with the participation of German firms.

Another part of the loan iG accorded to the Development Bank of Nigor to finance small and medium-size enterprises. The rest of i;he "'ota.1. credit is to be used for the construction of a hydraulic project.

(1e Moriiteur ~rioain, Daka.r,

11/7/64;

Afrique Ncuvelle, 10-16/7/64)

.,

E/CN.14/STC/F TN/9 E/CN.14/STC/FTN/IO Page 23

Jliger - IDA

The Int~rnational Development Association has granted a loan of

~ 525,000 to Niger, repayable over 50 years without interest, for a road- building projeot aimed at speeding up groundnut shipments to Nigeria.

(Afrioa South of the Sahara , Par-r s , 18/5/64) Nigeri<l. - Fed. Republic of g~ny

The West German go~ernment has agreed to loan Nigeria ~ 5.5 million to help:fin<l.noe the oonstruotion of a second hridge to link Lagos with the mainland. 'I'he loan is for 20 years and oarries an interest of 3 per oent.

,.'.

The West German government is also providing funds for the building of 10 cottage hospit<l.ls in v<l.rious parts of Northe~n Nigeria. The co~t of this soheme is estimated at ~ 0.8 million.

(AfrioaCSouth of the Sahara, Paris, 17/9/64, West Africa, London, 29/8/64)

Nigeria - IERTI, UK and USA

The Federal Government of Nigeria..has obtained a loan from the, jlorld Bank, the United Kingdom and the United States 'cotallillg,;l; 39 million.to

help finance the construction of ,he Niger Dam. The largest part of the loun, of more than ~ 29 million, is from the World Bank.

The United Kingdom will contribute ~ 5 million to be used for payments of goods and services from Britain. The Unitbd States, through the Agency for International Development, has also lent f,

5

minion, whioh will oover the oosts of half of the American goods and SC,]'V'.ces required for the soheme. The remaining half of this a",,,,unt is expeoted tone met frorri the World Bank loan. The AID loan will be repaid over ² 40~year period

inoluding a ten year grace period.

The dam project, to cost a total of some ^l', 70 n.iLli on , is described in the six-year deve.Lopment, plan as i t"s "e-orner-stolle". The dam is expected to go inte operation in 1967-68.

(West Afrioa, London, 27/6/64;

International CommeTc~, Nashington, 27/4/64)

E/CN.14/STC/FTN/9 E/CN.14!STC!FTN!lO Page

24

Nigeria - Japan

A new oompany, Galvanising Industry Ltd., has been inoorporated in Nigeria to manufaoture galvanized oorrugated iron sheets and allied produots.

The oompany, with a oapital of h 300,000, is formed by two Japanese firms, C. Itoh and Company Ltd. and Yodogawa Steel Works Ltd., and CFAO and Western Nigeria Development Corporation.

The faotory will produoe 20,000 tons of galvanized oorrugated iron sheets annually, thus meeting half of Nigeria's demand for iron sheet roofing. Eventually, other produots will be manufaotured, including window sashes, water pipes, galvanized iron buokets, etc.

The faotory will employ about 259 people.

(West Afrioa, London,

6/6/64)

Nigeria - Pakistan

A h 1.8 million jute faotory is to be set up jointly in Nigeria by the Pakistani and Northern Nigerian governments. The Pakistani government deoided to enter into this venture sinoe Nigeria consumes 60 per oent of Pakistani jute exports.

(The Finanoial Times, London,

21/4/64)

Senegal - France

Under the terms of an agreement signed between Senegal and France, the latter is to put CFAF 532 million at the disposal of Senegal, of which CFAF

110

million will be used to finance the construction of a secondar,y school,

115

million for the supply of fertilizers,

190

million for the development of groundnuts and subsistenoe crops and

51

million for a hydro-geologic study.

(Le Monde, Paris, 20/7/64) Sierra I.eone - IBRD

The World Bank has approved a loan equivalent to $3.8 million to the Sierra Leone Electricity Corporatimn for the expansion of electric power

E/CN.14/STC/FTN/?

E/CN.14/STC/FTN/lO Page 25

generating and dsitribution facilities. The loan will assist in financing a 13,200 kw diesel power plant, which will more than double the supply of power.

Four commercial banks, including Barclays Bank DCO, are participating in the loan without the World Bank guarantee, for a total of $240,000.

The loan is for a term of 20 years and bears interest at

5!

^{per cent.}

Amortization begins in May 1967. The loan is guaranteed by the Sierra Leone government.

(The Financial Times, London, 19/8/64) Somalia - IMF

The International Monetary Fund approved on 1 May 1964, a stand-by arrangement with the government of Somalia, authorizing

equivalent of $4.7 million over the next twelve months.

drawings up to the The stand-by -' arrangement will provide financial support for the unified exchange and trade control system which is being applied to transactions throughout Somalia from 30 April 1964.

(International Financial News Survey, Washington, 8/5/64; Ethiopian Herald, Addis Ababa, 2/5/64) Sudan - India

The Republic of the Sudan is to obtain a loan of Rs.50 million from India. The loan is to beinthe form of Indian manufactures, such as

industrial machinery, chemicals, pharmaceuticals and other products to be mutually agreed upon. India is also to provide technical and scientific assistance in establishing new industries in the Sudan, and may purchase more Sudanese cotton.

(International Financial News Survey, Washington, 26/6/64) Sudan - UK

The British government has agreed to make a loan of ~ 5 million to the

~udanese government.

(Africa South of the Sahara, Paris, 3/8/64)

n

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Tanzania

The People's Republic of China has offered the United Republic of 'I'~nzania;an.' interest-fre'e loan of 1,15 ~:i.1lion to hel.d finance the

'I'anganytk> five-year deveicpment plan, in addition to a t5 million long-' .term loan, for Zanzibari ',,::.

'The Tanganyika five-year plan will cost _~246 million and more than half of this will have to be raised abroad. In addition'to the ~15 miilion

and·~7.5 million lent by China and 'the United Kingdom, an '68 million loan is to be provided by the Federal Republic of Germar~, and Canada, Sweden and the United States are also contributing.

Tanzania ,~,CDC. IFC, NOFC

(-' ,(The F:cnancial Times, London, ll/8/ti4,)

The Commonwealth Development Corporation, the International Finance Corporation and tt9 Netherlands Over-sea s rj'nance Company, have jointly agreed to add a maximum of ~1.5 million to their eXisting investment in the Kilombero Sugar Company Ltd.

(KSC),

to, help expand Tanzania's sugar milling arid refining capacity and to provide additional working capital.

The CDC, IFC and NOFC will lend to KSC up to ~690,GOO, ~ 565,000 an~

'6245,000 respectivgly, for which they ~ill roceive 7 per cent sterling secured bonds, maturing between 1967 2nd 1974.

(International Financial News Survey, Washington, 17/4/64)

Tanzania - UK

The British government is to provide the United Republic of Tanzania with a i,7.5 million loan for the first two years off·the Tanganyika five- year development plan.

In addition, the United Kingdom has undertaken to.grant "'408,000 to

,; ~- ,-

the United Republic to cover the Zanzibar government'~:shareof compensatioL and commutation of pensions, in the place of the loan financing that was

originally 'offered on Zanzibar's accession to independence.

,

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Page 27

The IDK government has also renewed its previous offer to grant 5

500,000

toward the Zanzibar budget deficit up to

30

June

1965.

It is also understood that the United Kingdom will continue to provide the United Republic with technical assistance amounting to about L 4 million over the next two years.

Since Tanganyika's independence in December

1961

Britain has made grants of L

5

million and loans of about L

11

million (including compen- sation and pensions for outgoing expatriates) in addition to an independen- ce grant of •

5t

million. Technical assistance has been running at

between L

2

million and.

3

million a 'year and at the end of

1963

there was a grant in aid to Zanzibar of •

225,000. -

(The Financial Times, London,

11/8/64)

Tanzania - USA

The US Agency for International Development has decided to grant the United Republic of Tanzania a loan amounting to nearly $1 million for improving public services, technical education and 'communications.

(Africa South of the Sahara, Paris,

17/8/64)

Tunisia - IBRD

The World Bank has approved a loan equivalent to $7 million to Tunisia to assist in creating a modern port at Tunis.

Three American banks and one GerlDan bank' are participating in the loan to the extent of

$420,000.

The project financed by the loan cOns3ists of the construction of two new fully-equiPPad ber~hs at la Goulette, and the equipping of the five existing berths with transit sheds, warehouses, a passenger terminal and office buildings and other improvements.

The total cost of the project is estimated at $71 million, and the Bank loan will cover the foreign exchange requirements.

(New Africa, London, July

1964)

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Tunisia - USA

Tunisia and the United States have 'concluded an aid agreement within the framework of the American "Food for Peace" programme. Under the agreement Tunisia will import nearly $1.) million worth of agricultural commodities, the value including certain ocean transportaticn costs.

The agreement, 'negotiated under Title I" Public Law 480, will provide the following commodities to help Tunisia meet"the increasing demand for consumption ^I

upland cotton (appro~. 6,890 bales) corn (appro~. ^157,500 bu~hels)

- frozen poultry (appro~ 1)2,000 lbs.) ocean transportation (estimated)

$ 937,000

$ 222,000

.

^:;

$ 41,000

$ 69,000

Payments will be in Tunisian currency, 10 per cent of which'wi-n be -', set aside for United States uses. Seventy,yer cent will be made'available for loans fo finance economic ,development projects and the remai~ing

20 per cent will be available for Loans tq American and Tunisian private enterpri se •

::·c;

(International Financial NeW Survey, Washington, 27/4/64) UAR

An agreement has been concluded with a group,comprised of firms from the Federal Republic of Germany, Italy, France and the Netherlands, in collaboration with the Suez Canal Auth6rity, for the

~eclamation

^{of 312,000}

feddans (feddan : 1.04 acres) of land to be irrigated from the High Dam.

The works involved are the construction of two canals, 'each 60 kilometers long, and 32,000 houses for colonists to'be settled oh the land. The total cost of the project is estimated at ~ E 120 million ($276 million), of which ~ E 40 million is re~uired in foreign' exchange. It· is understocd that the participanting foreign firms '.ill provide a loan of $85 millicn at 3t per cent per annum, repaya'qle over 15 yeaI'S. The Suez Canal

Authority will hold 25 per cent of the share capital.

(International Financial News Survey, Washington, 26/6/64)