265. Memorandum of Conversation0

SUBJECT

  • Problems Facing Guinea and Guinean Suggestions with regard to United States Aid

PARTICIPANTS

  • [Here follows the same list of participants as Document 264.]

President Toure said that Guinea is a small underpopulated country, but along with other African nations has many big problems. The countries of Africa now find themselves at a crossroads, with various routes open. Guinea’s choice will depend on how rapidly it can move to meet its human needs. First efforts after independence were to consolidate the bases of the new State. The evolution of the nations of Africa has not followed the same pattern as in Europe. In the older countries, economic organization preceded the State. In Africa, the State must create the nation. During the colonial period the countries of Africa were divided in such a way that traditional ethnic groups were separated from one another. The Guinean Government has sought to create a viable State, and for this political action is indispensable in order that all ethnic groups may share the same goals. Certain people have criticized the Guineans or have harbored certain misconceptions about them. This has occasioned difficulties for the Guineans, but thanks to the efforts of men [Page 412] of goodwill, President Toure believed that Guinea’s position is now more clearly understood. Today, the bases of the State have been created. Although Guinea, like other African countries, has pressing economic problems, the Guinean people have faith in themselves and are prepared to make every sacrifice in the development of their country.

President Toure asserted his Government must now deal with human needs: the people must have adequate food and adequate housing, the sick must be cared for and the illiterate taught—these are the main preoccupations of his Government. To meet these needs, Guinea must have the cooperation of other countries, and Guinea attaches great importance to the cooperation of the United States. President Toure hoped that this cooperation would develop further: that is his desire and the desire of the Guinean people. Guinea has many latent possibilities. It is a country of great economic diversity, since most of the natural resources found elsewhere in Africa also exist in Guinea. With respect to industrialization, Guinea possesses enough; necessary raw materials, and its power resources only need to be developed.

President Toure said he wished to suggest that the United States aid take various forms. The assistance thus far received has been extremely useful, particularly in 1961 when Guinea was suffering from a severe draught and the United States generously made food available. He hoped that American aid can be broadened and diversified, thus permitting the further development of his country.

After mentioning the reasons why Guinea had initially turned to the East for assistance and summarizing the difficulties which had arisen in dealing with the Bloc (covered in separate memorandum),1 President Toure expressed his concern about the execution of the three-year development plan. He was, he said, fearful that it would be unsuccessful despite its modest nature and the full support being given to it by the Guinean people. For example, the plan gives priority to infrastructure projects such as aviation, a printing plant, schools and health facilities. This is all well, but President Toure is worried whether there will be enough food for his people. Agricultural production has declined, and this was also true in the industrial sector. To illustrate the point, he said, that although Guinea produces large quantities of coconuts and palm kernels, serious shortages of soap and edible oils exist. This situation also has a political aspect, for the Guinean people wish the plan to succeed. President Toure therefore would like to see more vegetable oils proc-essed in Guinea in order that his country can meet some, if not all, of its needs for these products. Also, he would like more soap to be produced locally from domestic raw materials, thereby eliminating the depend-ence [Page 413] upon imported soap. He added that these two sectors had been neglected by the Socialist countries in their aid program for Guinea. He did not consider it necessary to give all the reasons why these projects would be of great value to Guinea, but felt strongly, that if carried out, they would show the Guinean people that something is being done for their country.

With respect to current and future United States aid, President Toure said he wished to suggest three forms it might take:

1.
Assistance in bringing Guinea’s foreign trade into balance. AID has helped this year, and continued assistance would be very useful;
2.
Assistance to small firms and enterprises which do not require large capital but do need equipment. This type of aid, he suggested, could be carried out through joint cooperation—the United States providing equipment and Guinea the manpower and local costs. Americans could even manage the enterprises until the investment has been amortized. President Toure believed that this kind of assistance would have considerable impact, not only in Guinea but also in other parts of Africa for the latter would see for themselves that Guinea does not permit “certain nations” to introduce systems it does not wish. Guinea has been able to resist this type of pressure from the Bloc because of the stability of its institutions, but there are other countries which do not possess the same capacity to resist;
3.
Large scale economic development projects. In 1960 the United States Government had sent a message to Guinea expressing its interest in the Konkoure dam project. President Toure believed that the completion of the Konkoure dam would lead to the establishment of many small enterprises. Guinea has great potential power resources, but at present many villages lack electricity, and power is very expensive. Guinea therefore attaches major importance to the project. During his visit to the USSR the Soviet Government had told President Toure that it favored the project, and a communique to that effect had been issued. However, his experiences with FRIA had shown him what complications and technical difficulties might develop if the Russians were to take charge of the project, and he therefore had decided not to carry out the agreement with the Soviets. If the United States were willing to help build the dam, its assistance might come from the United States Government direct or from private American firms or from national or international banks.

President Toure then mentioned several other projects of importance in the development of his country. He first alluded to the railroads, stating that they are over 65 years old and no longer capable of transporting the country’s products. The highway system must also be improved, and he would like to see 3000-4000 km. of roads surfaced in oil or asphalt. As illustration, he said, that despite the fact that there are miles and miles of natural palm plantations, less than a third of the crop ever reaches the market.

President Toure said he realized that the United States Government always wishes to have plans before it is prepared to discuss individual projects. He therefore asked that American technicians be sent to Guinea [Page 414] to draw up the necessary plans with their Guinean counterparts. Some highway plans have already been prepared, but he would like them also to be studied by United States experts before these projects are started.

President Toure reiterated the importance of setting up small firms to make soap and edible oils and to process and crush palm kernels. In reply to the President’s question, he indicated that the soap produced would be for domestic consumption.

Another problem is education. President Toure expressed gratitude for the AID projects already started, mentioning the vocational school and the school of administration. He said that 1600 Guineans are presently studying abroad, of whom 130 are in the United States. As he had mentioned in his speech at the UN, the lack of trained manpower is acute in most countries of Africa. After alluding to his reluctance to send young Guineans to the Bloc countries for technical training (covered in separate memorandum) President Toure said he strongly favored the establishment of training schools in Africa. This would permit students to remain in their own environment and thus not lose contact with the people of their country; would not expose them to alien political ideologies; and, finally, would represent a financial saving for the African countries. President Toure therefore hoped that the proposal he had made at the UN for the establishment of African universities would have the support of the United States.

With regard to health and sanitation, President Toure said that Guinea is encountering great difficulties in combating various diseases. He had therefore established a health program which will utilize teachers, doctors and technicians provided by the Peace Corps. The matter is presently being discussed in Conakry with representatives of the Peace Corps, and the latter will soon return to the United States with the Guinean proposals. Peace Corps assistance would, he concluded, be of importance to Guinea.

The President said he could well understand the economic problems facing a country like Guinea which sells raw materials at wholesale prices and must import finished goods at retail prices. This, of course, leads to a balance of payments problem. The United States is also having its own balance of payments difficulties. We bear a heavy international financial burden, and while it does not have serious effects on our domestic economy, it does create a serious balance of payments problem. This limits the amount of funds at our disposal for foreign aid. The Soviet Bloc has an easier time. In Latin America, for example, they concentrate on Cuba alone, while we are trying to help all the other countries of the Hemisphere. As regards the French, the bulk of their assistance is directed toward Africa and, furthermore, it does not create a payments problem because all of their aid is tied to the franc.

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The President said he believed the United States should do everything it can to help Guinea, and as evidence of this desire cited our aid during the past 12 months. He stressed, however, that our whole foreign aid program constitutes a very heavy burden. For example, in 1961 we gave $1.6 billion in economic aid. We were happy thus to assist others, but it did put a drain on our dollar reserves. The President continued that these have dropped by about $12 billion during the past four years. We have given over $80 billion in aid in the past 15 years, with most of it going to Europe, and we therefore hope that Europe will now meet its responsibilities in assisting the under-developed countries. Europe also receives a large amount of dollars through United States defense expenditures. For example, we spend about $350 million in France on defense. This means that one third of France’s dollar surplus comes from defense expenditures. The President stressed that this situation can not continue indefinitely, and we feel that the other countries must bear their share.

The President said he had wished to explain our financial position because of his interest in Africa and in Guinea’s success. He thought that the United States had made a mistake when it did not respond to Guinea’s request for aid at the time it became independent. We cannot, however, he concluded, do as much as we would like because of the balance of payments situation he had just outlined.

  1. Source: Kennedy Library, National Security Files, Countries Series, Guinea, 10/12/62-10/31/62. Confidential. Drafted by Trimble and Porson on October 12. The conversation was held at the White House.
  2. The two leaders’ discussion of Guinea’s experience with bloc aid and Franco-Guinean relations on October 10 was recorded in two memoranda of conversation. (Ibid.)