Congo News briefs 11/8/97 Via NY Transfer News Collective * All the News that Doesn't Fit source: congo-news@thor.cmp.ilstu.edu Tue, 11 Nov 1997 02:00:10 -0600 Natural Resources Fuel Chaos in African Nations The Salt Lake Tribune Sat, Nov 08 1997 KINSHASA, Congo -- The clamoring for democratic change that ended one-party rule in the Republic of Congo five years ago couldn't douse the desire for wealth and power, which has put the country's former dictator back in control. Like conflicts across the region -- in Angola, Liberia, Sierra Leone, and the former Zaire -- the Republic of Congo's four-month civil war was fueled in large part by a quest to control the natural resources that could be the continent's salvation but are often a source of its agony. Diamonds, gold, cobalt, copper, zinc, bauxite and oil drench the soil and sea of central and west Africa, meaning there's always something to fight over and always a way to finance the fight. Liberian warlord Charles Taylor financed his war, and his successful presidential campaign, with proceeds from wartime dealings in diamonds, timber, and rubber. Sierra Leone's diamonds and bauxite reserves have fueled conflicts there for years; Cameroon and Nigeria clash repeatedly in a long-running dispute over the oil-rich Bakassi peninsula; Angola is battling rebels seeking autonomy for its oil-rich Cabinda region; and Nigeria's oil wealth has been at the root of much of that country's civil strife. Gen. Denis Sassou-Nguesso, who presided over a one-party military dictatorship in the Republic of Congo from 1979-91, saw petroleum production and resulting income grow steadily during his reign. Economic mismanagement and a worldwide drop in oil prices in the mid-1980s, however, combined to create a financial disaster in the country. Public anger over the economy and demands for democracy that were sweeping Africa in the wake of the Soviet bloc's demise drove Sassou-Nguesso from power in 1991. It was his successor, the popularly elected president Pascal Lissouba, who oversaw an oil boom brought about in large part by the discovery of new off-shore fields by foreign companies -- notably France's Elf-Aquitaine, which is responsible for about 80 percent of Congolese oil production. Lissouba also benefited from the fallout of Iraq's invasion of Kuwait in August 1990, which drove up international oil prices and prompted exploration outside the volatile Middle East. In subsequent years, the Republic of Congo's production soared from an estimated 55 million barrels in 1992 to about 70 million in 1996. That was expected to reach about 84 million barrels in 1997, according to government figures released before the fighting broke out. While Sassou-Nguesso claimed he was fighting to prevent Lissouba from violating the constitution and unilaterally extending his hold on power, Lissouba says his real aim was to get his hands on oil money. He was helped, Lissouba claimed, by Elf-Aquitaine and by the French government itself, which were known to have been angered by Lissouba's dealings with America's Occidental Petroleum Corp. As the country's former colonial ruler, its No. 1 trade partner, and its main aid-giver, France saw the move as a threat to its influence and business interests in the region. Lissouba himself has said French President Jacques Chirac refused his appeals for help when he flew to Paris to see him. ``Why, why did France turn its back on me?'' Lissouba lamented to the Catholic daily La Croix shortly after the June 5 fighting engulfed his capital. ``Do they reproach me for having opened the Congo to American companies?'' he said, referring to Elf and France. Elf, he alleged, gave Sassou-Nguesso $150 million to finance his war effort to ensure his victory and guarantee France's monopoly on future oil contracts. France and Elf denied involvement in the dispute, but their lackluster responses to Sassou-Nguesso's bloody power-grab and the elected president's quick fall make clear they were in no mood to rally to Lissouba's defense either in words or action. ``Let us stick to the factual situation: It's Sassou-Nguesso who is the master of Brazzaville and . . . we can consider that today the man with whom one must discuss putting in place a new democratic process is Denis Sassou-Nguesso,'' said Charles Josselin, France's junior minister in charge of relations with former French colonies and Africa. His comments came even before Sassou-Nguesso himself had gone on French radio to declare victory. Elf was back to drilling normally last weekend off Pointe Noire after barely a break in operations. (Copyright 1997) via IntellX Copyright 1997, The Salt Lake Tribune. FOCUS-ACP summit talks begin in Gabon capital 12:29 p.m. Nov 06, 1997 Eastern By Nicholas Shaxson LIBREVILLE, Nov 6 (Reuters) - African, Caribbean and Pacific (ACP) nations opened their first summit on Thursday with the future of their preferential trade pact with the European Union (EU) topping the agenda. Close to 20 heads of state, including Palestinian President Yasser Arafat, gathered in a refurbished conference hall on the edge of the Gabon capital Libreville for the two-day talks focusing mainly on negotiations with the EU scheduled to begin in September 1998. ``I declare the first summit of the African, Caribbean and Asian heads of state and government open,'' said Zimbabwe's President Robert Mugabe, who chaired the opening session. Mugabe opened the meeting in his capacity as chairman of the Organisation of African Unity and then turned over the chair to Gabon's Prime Minister Paulin Obame Nguema. Security was stepped in Libreville, with para-military armoured cars stationed at strategic points and road intersections. But around the Democracy City meeting centre itself and villas built for the heads of state just outside town, the atmosphere was fairly relaxed, witnesses said. Gabonese state radio said on Wednesday night that 19 heads of state had arrived, but most of those at the opening session African. They included the continent's newest head of state, Denis Sassou Nguesso, who won a four-month civil war in his country last month ousting president Pascal Lissouba. A prominent absentee was South African President Nelson Mandela, who was represented by his deputy, Thabo Mbeki. Also absent was President Laurent Kabila of the Democratic Republic of the Congo. Kabila sent his international cooperation minister Thomas Kanza instead. Arafat was among dignitaries outside Africa at the opening ceremony, although his self-rule Palestinian Authority is not formally part of the group. With the trade pact coming under pressure from the World Trade Organisation (WTO), the global free trade watchdog, the former colonies of EU members are looking for understanding of the negative impact of too rapid change on their economies. ``We want to see the continuation of an agreement between us but it has to be on a different basis,'' Lord Henry Plumb, copresident of the EU-ACP joint assembly, told Reuters on the eve of the summit. ``If we exclude any preferences it has got to be a gradual process of finding alternatives but it is not easy to say we will give you money in lieu,'' he said, adding that aid on its own had created more problems than it solved. Nathan Shamuyarira, Zimbabwe's industry and commerce minister and chairman of a pre-summit ministerial council, had a similar message. ``Our overall strategy is to set up a time frame to restructure our economies,'' he said this week. The 71 ACP countries, he added, were hoping to be able to extend trade privileges beyond 2000, when the current Lome IV Convention governing their links with the EU expires. Plumb said targeted debt write-offs were part of the answer and that good governance would be a key to aid to developing nations but he stressed that some replacement had to be found. ``I shall not forget the former prime minister of Dominica who said 'If you don't want my bananas you can have cannabis'. There is a real message there,'' he said. In September, the WTO ruled that elements the EU banana import regime giving preferential access to bananas from certain ACP countries contravened its rules and had to be changed. The ruling hit Caribbean countries, under pressure from cut-price Latin American producers backed by dominant U.S. marketing companies, particularly hard. The EU accepted the ruling but ACP countries have asked it to seek greater understanding of specific handicaps that put them at a current disadvantage in a free trade world. ``Bananas will be the test case for other commodities,'' Lord Plumb said. ``We haven't finished with the banana yet.'' Copyright 1997 Reuters Limited. Zambian export earnings rise with Congo reforms 07:18 a.m. Nov 06, 1997 Eastern LUSAKA, Nov 6 (Reuters) - Zambia's earnings from non-traditional exports will rise by $60 million this year, largely because of reforms in the former Zaire -- a strategic market for Zambian products -- the Manufacturers Association of Zambia said on Thursday. It said earnings from non-traditional exports would increase to around $300 million in 1997 from $240 million last year. ``Largely, the increase will be a result of the changes in the Democratic Republic of Congo, where there is great demand for Zambian products,'' association chairman Mark O'Donnell told Reuters. O'Donnell said Zambian businessmen had shied away from the Congo when former president Mobuto Sese Seko was in power, but found it an increasingly attractive market as the new government reorganised the economy. Several Zambian companies had clinched lucrative export deals with the Congo since the Laurent Kabila government took power. ``Previously, no one could do business with Zaire because it was completely corrupt, but now corruption appears to have dropped drastically,'' O'Donnell said. O'Donnell said Zambia's earnings from non-traditional exports had risen markedly over the past few years. The government had targeted earnings to rise to $240 million by the year 2000, but that target was met last year and would be exceeded this year. ``We are now looking at earning of $400 million or more by the year 2000,'' he said. However, the growth of non-traditional exports was being restricted by protectionist measures imposed by countries in the south, particularly South Africa. The trade imbalance between South Africa was unacceptable in the order of 15 to 1. ``This imbalance is not because of poor quality or a lack of market for our products, but because of South Africa's stubborn refusal to open up its markets to our goods,'' O'Donnell said. He said Zambia could earn $100 million in exports to South Africa every year compared with the current $20 million if South Africa abolished trade barriers. Copyright 1997 Reuters Limited. FOCUS-ACP leaders seek common stand in EU talks 11:25 p.m. Nov 06, 1997 Eastern By Nicholas Shaxson LIBREVILLE, Nov 6 (Reuters) - African, Caribbean and Pacific (ACP) states ended a full session of their first summit on Thursday with many delegates calling for a common stand in coming preferential trade talks with the European Union (EU). Speeches by some of nearly 20 heads of state and government leaders during the first plenary session broached fears that the EU might try to negotiate separately with the three regions forming the 71-member ACP. ``The ACP countries must act together in the negotiations with Europe and not allow the issue to split the ACP,'' Barbados Prime Minister Owen Arthur told delegates. ``We know that separate agreements for Africa and the Caribbean and the Pacific mean separate negotiations and will deprive each group of the strength which regional solidarity brings,'' Arthur said. ``It is essential we maintain our unity and cohesion as a group,'' said the prime minister of Mauritius, Nominchandra Ramgoolan. Heads of state or government, including Palestinian President Yasser Arafat, gathered in a refurbished conference hall on the edge of the Gabon capital Libreville for the two-day talks focusing on negotiations with the EU scheduled to begin in September 1998. Zimbabwe's President Robert Mugabe earlier opened the meeting in his capacity as chairman of the Organisation of African Unity and then turned over the chair to Gabon's Prime Minister Paulin Obame Nguema. Security was stepped in Libreville, with paramilitary armoured cars stationed at strategic points and road intersections. But around the Democracy City meeting centre itself and villas built for the heads of state just outside town, the atmosphere was fairly relaxed, witnesses said. Most of the heads of state in the hall were African. They included the continent's newest head of state, Denis Sassou Nguesso, who won a four-month civil war in his country last month ousting president Pascal Lissouba. A prominent absentee was South African President Nelson Mandela, who was represented by his deputy, Thabo Mbeki. Also absent was President Laurent Kabila of the Democratic Republic of the Congo, who sent his international cooperation minister Thomas Kanza instead. Arafat was among dignitaries from outside at the opening ceremony, although his self-rule Palestinian Authority is not formally part of the group. With the trade pact coming under pressure from the World Trade Organisation (WTO), the global free trade watchdog, the former colonies of EU members are looking for understanding of the negative impact of too rapid change on their economies. ``We want to see the continuation of an agreement between us but it has to be on a different basis,'' Lord Henry Plumb, co-president of the EU-ACP joint assembly, told Reuters on the eve of the summit. ``If we exclude any preferences it has got to be a gradual process of finding alternatives but it is not easy to say we will give you money in lieu,'' he said, adding that aid on its own had created more problems than it had solved. Nathan Shamuyarira, Zimbabwe's industry and commerce minister and chairman of a pre-summit ministerial council, had a similar message. ``Our overall strategy is to set up a time frame to restructure our economies,'' he said this week. The ACP countries, he added, were hoping to be able to extend trade privileges beyond 2000, when the current Lome IV Convention governing their links with the EU expires. Plumb said targeted debt write-offs were part of the answer and that good governance would be a key to aid to developing nations but he stressed that some replacement had to be found. Copyright 1997 Reuters Limited. ================================================================= NY Transfer News Collective * A Service of Blythe Systems Since 1985 - Information for the Rest of Us 339 Lafayette St., New York, NY 10012 http://www.blythe.org e-mail: nyt@blythe.org ================================================================= nytaf-11.15.97-02:01:20-32361