p For a number of reasons—historical, political, and economic—in the 1950s and 1960s the USSR maintained the closest trade ties with the countries of North Africa.

p Soviet trade with Egypt dates back to the 1920s, though its volume was limited at that time because of opposition from Britain, which held a dominant position in Egypt. In 1954, the USSR and Egypt concluded their first trade agreement, which created a basis for a rapid growth of their trade turnover. The Soviet Union’s first trade agreements with Tunisia and Morocco were signed in 1957, i.e., before those signed with other African countries.

p It is government agencies that are engaged in or control the foreign trade of North African countries. Of no minor importance, also, is the fact that these countries are fairly close to the USSR geographically. It was easy for Soviet foreign trade organisations to establish transport links with them. Moreover, transportation costs were lower than in trade transactions with more distant countries.

p In the 1960s and until 1976, North Africa accounted for 75-80 per cent of the total Soviet-African trade turnover (see Table 9).

p Egypt, Algeria, and Morocco accounted for the biggest share of Soviet trade with North Africa and Africa as a whole. Trade with these countries was based on long-term trade agreements containing concrete programmes for reciprocal commodity deliveries.

p The Soviet Union was Egypt’s biggest trade partner. In the early 1970s, the USSR’s share in the country’s total foreign trade turnover amounted to some 25 per cent. Machinery, equipment and transport facilities made up almost half the Soviet exports to Egypt. Between 1960 and 1975, Soviet machinery and equipment deliveries to the country
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211 Table 9 Dynamics of USSR-North Africa Trade Turnover (mln rubles) Country I960 1970 1976 Algeria 2.1 118.3 190.3 Egypt 172.0 606.4 530.6 Libya 1.3 12.9 16.2 Morocco 8.8 50.1 105.6 Sudan 10.1 77.4 19.0 Tunisia 4.3 5.7 14.8
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exceeded 1.4 billion rubles, most on a long-term credit. Between 30 and 40 per cent of Egypt’s machinery and equipment requirements were met by Soviet supplies.

p In addition to machinery, the Soviet Union provided Egypt with many types of material and fuel vital for the normal functioning of the country’s young national industry and for the construction of new projects. Pit coal, ferrous rolled metals, non-ferrous metals, chemicals, and sawn timber were prominent among Soviet exports to Egypt. In the early 1970s, the Soviet Union supplied 95 per cent of Egyptian coal imports and 50 per cent of the imported sawn timber. The USSR also exported drugs and many articles for cultural and recreational needs and everyday use, such as books, watches, and household appliances.

p The last 20 years have seen major changes in the composition of Soviet imports from Egypt. In the late 1950s and early 1960s, cotton was virtually the only commodity imported from Egypt which supplied as much as 40-45 per cent of Soviet cotton imports some years. Yet a steady expansion of the import commodity range was most characteristic of the development of Soviet imports from Egypt. Alongside many agricultural products, such as rice, vegetables and citrus fruits, the USSR began importing large quantities of Egyptian manufactured goods. In the early 1970s, the Soviet Union accounted for nearly 40 per cent of Egypt’s industrial exports. The share of ready-made articles and semi-processed goods in total Soviet imports from Egypt reached 46.6 per cent. These commodities included: cotton fabric and yarn, clothing, knitwear, 212 furniture, and footwear. In 1970, for instance, the Soviet Union accounted for some 50 per cent of Egyptian cotton yarn exports and 90 per cent of the footwear. Other export commodities included oil and oil products, some brands of ferrous rolled metals, steel forging and equipment.

p Drastic changes have taken place in Egypt’s domestic and foreign policy since 1974. After declaring its " opendoor policy”, the Egyptian Government opened the way to foreign capital and terminated the Soviet-Egyptian Treaty of Friendship and Cooperation. All this has certainly ^had a negative effect on Soviet-Egyptian relations and, as a result, in 1976 Soviet-Egyptian trade turnover dropped.

p The first Soviet-Algerian trade agreement was signed in November 1963, but even in the relatively short period since then, Soviet-Algerian trade has made good progress. Having dealt with the consequences of the destructive civil war and consolidated sovereignty over its natural resources, Algeria began building numerous enterprises. This has greatly increased the country’s demand for machines, equipment and means of transport.

p The Soviet Union is a major exporter of technology to Algeria. Of special importance is oil drilling and geologicalprospecting equipment needed for Algeria’s national oil industry, metallurgical equipment for the Annaba iron and steel works, motor vehicles, aircraft, and sea-going vessels. Also exported to Algeria are rolled ferrous metals, sawn timber, pit coal coke, sunflower oil, articles for cultural and recreational needs and household utensils.

p Wine and crude oil were the leading Soviet imports from Algeria. Soviet wine purchases based on long-term contracts opened up new opportunities for the country’s agriculture and facilitated the sale of Algerian farm produce at a time when it was having difficulty gaining access to the West European market. At the same time, these purchases allowed Soviet distilleries to expand the range of raw materials processed. In recent years the Soviet Union has met the Algerian request that top-quality wine be purchased in addition to ordinary brands.

p The system of balanced accounts practised in SovietAlgerian trade relations is highly appreciated by the Algerian side. On 30 March 1972, for instance, the National Liberation Front’s newspaper Revolution Africaine 213 ineluded a major article on the results of Algeria’s foreign trade development and wrote that its turnover with the socialist countries was on a clearing basis, i.e., commodities are paid for by commodities of equal value, rather than in cash. This system is mutually beneficial because it excludes financial problems between its participants.

p A new long-term trade agreement was signed between the USSR and Algeria in June 1974. It provided for a substantial increase in their turnover towards 1977. Soviet exports grew primarily thanks to increased machinery and plant deliveries. The range of Soviet imports from Algeria also expanded appreciably. The agreement provided for the import of many articles produced by Algeria’s national industry, such as zinc, lacquers, paints, and drugs.

p Soviet trade with Morocco expanded considerably in the 1960s. Oil and plant are the main Soviet exports to the country. Soviet oil deliveries have contributed greatly to the development of Morocco’s national oil-refining industry, established after political independence. Electrical equipment for power stations built with Soviet assistance headed the list of the machinery and plant delivered by the Soviet Union in recent years. Morocco’s main exports to the USSR are oranges, cork and cork articles.

p In March 1974, the Soviet Union and Morocco signed a long-term agreement on reciprocal commodity deliveries for 1974-78. It provided for a wider range of export and import items. Specifically, Soviet imports from Morocco were increased by bigger deliveries of citrus fruits, juices, sardines, wine, cork, as well as lead, zinc oxide, copper concentrates, phosphates, and light industry manufactures, which are items that Morocco had never before exported to the Soviet Union. The Soviet Union increased its exports of various machines and equipment, building materials, fuel, articles for cultural and recreational needs and household utensils. Another long-term agreement on economic and technological cooperation in the’ffield of phosphates signed between the USSR and Morocco on 10 March 1978 greatly increased the volume] of Soviet-Moroccan trade.

p Libya is becoming the Soviet Union’s major trade partner in North Africa. After accumulating considerable foreign currency reserves from the export of oil, in recent years Libya has markedly expanded its import of capital and 214 consumer goods. The Soviet Union has increased its exports to Libya of some types of equipment, cables, rolled ferrous metals, cement, sawn timber, and also cloth and canned vegetables. It has some years imported crude oil from Libya. Alexei Kosygin’s visit to Libya in May 1975 created fresh opportunities for a further growth of Soviet-Libyan trade and economic cooperation.

p Trade with the countries of Tropical Africa is a very promising area of Soviet foreign economic relations (see Table 10).

p Trade relations with most of these countries were established somewhat later than those with the newly emerged
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Table 10 Dynamics of Soviet Trade Turnover with Tropical Africa (mln rubles) Country I960 1970 1976 Angola _ _ 19.7 Ghana 24.5 49.7 81.2 Guinea 7.2 14.2 50.1 Cameroon 0.2 7.5 36.7 Kenya — 1.8 1.1 Congo — 1.5 4.5 Mali __ 6.4 5.5 Nigeria 6.3 31.2 50.5 Senegal — 1.2 1.6 Somalia — 3.2 23.4 Tanzania 0.1 1.8 4.0 Uganda 4.4 3.9 1.5 Ethiopia 1.2 2.1 4.3
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states in North Africa. A major share of their natural resources was, until recently, under the control of Western monopolies. The participation of many Tropical African independent countries in capitalist closed economic groupings and currency zones limits the freedom of their trade and political activity. Until recently, their foreign trade was largely controlled by overseas companies that evaded government restrictions. This has somewhat hampered Tropicall Africa’s trade with the USSR, and its absolute volume is stil I low (in 1976 it amounted to some 330 million rubles).

p Guinea, Nigeria, and Ghana account for the biggest share of Soviet trade with Tropical Africa. Since 1976 there has been a rapid growth of trade between the USSR and the People’s Republic of Angola.

p The Soviet Union established trade relations with Guinea in 1959, when the capitalist powers tried to organise an economic blockade of the newly emerged country. The support provided by the Soviet Union and other socialist states helped Guinea to consolidate its independence and develop as it chose, implementing progressive socio-economic reforms.

p The USSR is one of Guinea’s biggest trade partners. Soviet exports include a variety of industrial and consumer goods, with machines, equipment and means of transport in the lead. In addition to machinery for installation in enterprises built with Soviet assistance, Soviet exports include large quantities’of passenger cars and lorries, as well as aircraft for the national airline Air Guinee. In the early 1970s Guinea attached great importance to Soviet deliveries of machines and plant for the national bauxite mine near Kindia. Soviet-made motor vehicles make up over 50 per cent of Guinea’s motor pool.

p The Soviet Union also supplies Guinea with fuel oil, rolled ferrous metals, tyres, cement, cotton fabrics, fish, condensed milk, soap, drugs, articles for cultural and recreational needs and household appliances.

p Farm produce, primarily tropical fruits, were the main Soviet imports from Guinea. Relatively small quantities of bauxites and alumina were also purchased. Under existing agreements and long-term contracts, Guinea’s bauxite deliveries to the USSR have greatly increased since the commissioning, in 1974, of the Kindia state-owned enterprise and now occupy a leading place in Soviet imports from the country.

p Soviet-Nigerian trade relations are mutually beneficial. The first Soviet-Nigerian trade agreement was signed in 1963, with both sides granting each other most- favourednation status. Nigeria extended the open general import licence to Soviet foreign trade organisations, but the volume of Soviet-Nigerian trade remained insignificant for a number of years. By the late 1960s, the opportunities for expanding bilateral economic ties had grown markedly. Nigeria appreciated the support extended by the Soviet 216 Union to the Federal Government in the course of the internecine war unleashed by separatist forces with imperialist, backing. Once the conflict was over, Nigeria began rehabilitating and developing the economy, as well as expanding its foreign economic relations. Firm business contacts have been established between Soviet foreign trade organisations and Nigerian government and private concerns.

p Machines, plant and means of transport, including equipment for geological prospecting, passenger cars, and cables for high-voltage power transmission lines, now account for a sizable portion of Soviet exports to Nigeria. Cement, glass, fabrics, and some foodstuffs are also among Soviet export items. Farm produce, above all cocoa-beans, predominates in Soviet imports from Nigeria. The range of commodities exchanged may well expand and the volume of Soviet- Nigerian trade increase.

p The first trade agreement between the Soviet Union and Ghana was signed in 1960. During the early 1960s, SovietGhanaian trade expanded rapidly. The USSR delivered machinery and equipment for various enterprises built in Ghana with Soviet assistance, as well as passenger cars and lorries, excavators, and fishing vessels. Also high on the list of Soviet exports were fuel oil, cement, fish, and lump sugar. Ghana’s chief export to the USSR and in general was cocoa-beans. Soviet purchases helped to stabilise world cocoa prices, which greatly benefited Ghana.

p Yet the regime after the coup of February 1966 radically altered Ghana’s policy and began curtailing its trade with the socialist world. As a result, the volume of Soviet-Ghanaian trade had dropped substantially by the late 1960s. The present government is seeking to revive the national economy and develop mutually advantageous trade links with all countries. This has reactivated Soviet-Ghanaian trade and now the USSR is one of the biggest importers of Ghanaian cocoa-beans. It has also considerably increased its imports of cocoa-oil from the country.

Soviet trade is gradually expanding with other African countries, such as the People’s Republic of the Congo, Ethiopia, Tanzania, Zambia, Kenya, Uganda, and Cameroon. Recent trade and economic agreements concluded between the USSR and Angola and Mozambique are also promising.