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 Contents

'The c:normou!l d.imtmiof'ls ~f linanoe-apital con-

centrM:ed in a (ew h.anda and creating an cxttt'mdy lmroduction
extMSivt ncrnotlt of dos~ ties :tnd rel:~tionships whieh
i.nvuh·~:& oot only the 10.111.all antlznc:J.ium capiwlistt., but I. Africa's Resources
al.o evtn the ..-uy.srmll; t-hi•, on the one hand, and on
the otht.r the biuer struggle :~gainH other nntional Statt 2. Ob~~otaclcs co Economic Progress 15
groops of financier• (or the partition or the wodd and
t he riijlll to rl.lle uvcr uthc:r cuuntliCll'-th~ ~ 3. fmperialiat Finan~ 37
factot'll Wtc:n together e:ausc dX' complete convt:nioo.
of aU the posseuing clu.:1 to the .ide o( imp"ialian. 4. Monopoly CapiooJ;.m :111d the American Th>llar 52
The signs or the 6mu ~ a "gtoncral" em.husium.
regarding ia p~pec•s, a pauionale dc:fu.ce of im• 5. The Truth behind the I fcadline5 69
pcrialim'n, and every poasit:Je c:amoullagt o f i.ts real
nature.'~..t:N'I!':, lnrpnt'alh•. 6. Primary Re.'IC,l4.1rcts and Foreign Jntcreats 8+
7. 1 11c Oppenheimer Empire 110

8. Foreign 1n~>estment in South Afrieon Mining 120

9. Anglo Americ-an Corporation Limiled 127
10. The D iamond Croup.t~ 137
II. Mining Jntere.ta in Central Africa 153
12. Companie~ and Combii'W!a 162
13. The: T in, Aluminiom and Nickel CU.nts 179
14. Unjou MinU:re du Haut Katanga 197
15. Economic Prcasur~ in the Congo Hepublic 212
16. Monetary Zones and Foreign Banks 220

••
I 7. New lndusuiet: The: Effect' on l'rimary
Producing Couutric:t 228
18. The Mccho.niama of Nc:o-Coloniali&.m 239 Introduction
25~
Conclul'lion

Bibliogrophy 260

fndex 263

THt neo..colonialis:m of today represents imperialism in its 6.nal

and perhaps. its mott dangerous stage. In the past it WllS ponible
to oon"ert a country upon which a neo-colonilll regime had
been iroposed- Egypt in tlle ninetet:nth century is an examplt
-into a colonial territory. Today this process is no longer
f~ible. OJd ..fa.s.hloned coloniali.sm is by no means entir~ly
abolished. It still constitutes an African probJem, but it is
everywhere on the retreat. Once a territory haJ becxnne
nominally independent it is no longer possible, u it wa:~ in the
last century, to reverse the proc:es!. Existing colonies may
linger on, but no new colonies will be: created. fn place of
oolonialivn as the main instrument of imperialilln we have
today neo--colonialism.
The euencc of ncCKokmialiun is that the State which is
subject to it is, in theory, independent ond lw aU the our.vard
trappings of international sovereignty. In re.llity its economic
system and thus its political policy is djrected from outside.
The methods ttnd fonn of this direction am take various
shapes. For ex:unple, in an extreme case the troops of the
i.mperi11l power may garrison the territory of the neo-colonial
Sbttt and control the government of it. :More often, however,
neo..colon.Wi.n control is exerdsed through economic or
monL"lary means. The n~-coloniaJ Stlltc may be obliged to
take the 1112nufactured products of the imperiali!t pol.er to the
exclusion of competing products from c1st:where. Control over
-riil
HIO• tfti.ON IALIIM IMTaODVCTIO!II'

l(t•\·t·niMc:t-.t pohcy an the nco-coloninl State m21y be MCUrtd by has made out of date the oad-&dUoned balaooe of power which
1-•ytulnlt tiNa.rdJ the cost of ru.nr.in£: tbc Stat~, by the pt'O-o f"tSUd upon tht ultitmt:e anction of a nujor war. ~ty of
\i9 ~ <,( civil tc:n"ants in positioiU wh~ they ean dkutc mutual man dellnlaion t-ff'K'livdy prnoenu either of the great
pol"1', and by moocury eontrol....., r.,...;,;n cuhtnr .lluwJI! ~"""" blocs fnom th,...U'r."'J! th.c all.... with th.c pouibifuy of
the 1mpoution of • banking ~iltm controlled b1 the: 1m(ldlal a world-wid~,.,.,. and rnili•ary t..:•nPid has thus bec::ome con-
.,.,...... fit.w:d t.0 ~limit&.-d wan• For tbnc oco-coionialicm is the
\\bert neo-colotti:ali ezitts the powt"t nm.ia,. control t.tt.h"« crwnd.
asoftrn the State which formerly ruled lhe t.crritoty in q~ti('"• Sueh vr.~~rs om. o( course, tU.c pbcw: in c:ountrio which are
but this ia nOt nc<:euarily so. For eumpl_e. in the c:aJe of Sotrch DOl DC<HX>IonialiJ< coouoll<d. Indeed their obj<ct may be 10
Vietnam the (ormer imperi3l power W2• france. but nco-- esablisb in. a snu.ll but independent country a OIC:f>COionialist.
colorb:tl coouol of the St<tte h:ts now gone: to the United btates. regime-. Th~ evil of nco-colonaahsm iJ that it prevents the
h it poN.ibte that nco-oolonial control may be exerd~ b)' a. fonnation o£ those I~ unit• wbJc.h wookl make impossible
CORIOnium o£ fiuanci:.tl inten~1-ts which are not spcaficalJy 'limited war'. To tpvc one cmmplc: af Africa wa5 united. no
identifiable with •ny p·.utic:ular State. The control of the Congo major power bloc would aucmpl to 11ubdue it by limited war
by gre:u imcrrn~tiou..tl Gnancial conc::cms is a CliO in point. because from the \'Cry n-ature o( llmitcd w:a.r, what can be
The result of neo-colonialism is that forc:ig·n C3pital ia uJC<l achieved by it is itl(!l( limited. h iJ only where small States
(or I he c:xploitalion ··ather than for the development or the len ex.i't that i• is pon ible, by landlnK 1 few tllousand mo..rines or
fll"\t.IOJ'IC-'fl p:Lrtll 0£ the WOrJd.lnvestment under RecH:OloniaJiam by financin~ a mel'(:t'nary force, to srcure a deciti\'c: reN.lt.
inrrc»o.cs r1t.hcr than dc:crcaaeJ the gtp between the rich and 1,c: restriction o( millra.ry llC..·tk>n of 'limited wan' is. bow-
the poor countries of the world. ever, no guarantee of world pe:aoe and is likdy to~ the factor
The Jtrugglc: apirut neoo(X)kmialism ia not aimtd at txdud- "hich will ultim2tely im·olve the great po"'er bLocs in a world
••a the copital of the develop«! world from op=ting in leu war, howtvc:"r much both are determined to st.\-'Oid ll.
d("t'c:\op«l countries. It is aimed at p~entinc dK' lin:a.nci&J l...Unitc:d \\'2.r. once c:mb&rta.J. upon. achieves a rnorneatum
JIC"' c:r o( the c;levelopcd c::ounuies being used in &Uc,:b a "11 I- of iu 0\l"ll, or •hi•. tht• war in South V'Jdnam is only 001:
10 unpo.m.h th.c leu de\'elop<d. aampk. It exalatn de1opite the doi~ of t1Y great power b1oa:
Non·ali!;nmcnt, as ~ by Ghana ond onan) cch<r to kttp it limited While thiJ particular "ar •"*)' be prev~tcd
cou.nrriea, ,, brucd on co-opc:ndioa with aU Statct .., kdhn they from ~ 10 a 'WOrld <Onft.CO. the multiplication ol similar
be capital.iJt, soc::U.bJt or bao;c a mixed economy. Such a polic:y. limtted ...,. can only have one cnd- wwld .,..r ond thelarible
chtrtfore, iavoh--es rorrign investment from a.pialut countrx.a. ~ oJ auclc:ar confliCt.
but it mutt be invened in accord:mClC: with a nauonal plan Nco-colonialism iJ abo 'he WOt# ronn of impcr:Wism. For
dta"n up b) the pc:mm~Mt of the noo-a.ligned State •ith ita those who pnaa.i:se it, it mtans po"er *ltbou' responsibility
~n interot.J i.n mind. The issue is not what mum eM forci~n and for thoac: who •utTer !rom 1C 1 1t nJt'ans exploitation without
i1wc:stor rccc:iva on hi& investmct~tt- He may, 1n (act, do bcttcr rNrt:sa. In the dayt o£ old,£11sh1oned colonialism, the imperial
ror l1im~ tf he anvests in a oon.aJjg:nc:d country than if J~ power had at leut ro expl11in 1nd ju•df'y It home the actions it
inn:Jt• in a nco-c;olonifll one. The question iJ one of power, was tak.in.g abro=td. In tho colony those v.ho 1crved the ruling
AStute in the grip of neo~oolonialism ia nOt maner of lu own imperial power could lit lttJI look to itt protection apiost any
destiny, Jt iJ this factor which nukes neo-c:oloni!llhm 1uch u violent mon by their opponc:nu. With neo--colonialism neither
te.rkluathmt to world peace. The ~wth o( nuck-ar wc:;apont is tht case.
NB-O~COLONfALJSN INUODUCTJON
Above ill, neooQOioniali.sm, like colonialism before it, post- from achieving the object intended, the working-class parties
pones the facing of the JOcial iuues which will have to be at times teoded to identify their interests with tbO&C of the
faced by the f-uUy developed sector of the world be.rore the colonial peoples and the impe:ruuist powers found themselves
d.a.ngtr of world wa.r can be eliminnted or the problem of engaged upon a oonftiet on two fronts, at: home with their own
world poverty reao1vtd. 'vorkera and abroad againu the growing forces of colonial
Neo-coklnialism, like colonialism, is an auempt to export liberation.
the social confficts of the capitalist countries. The temporary The post-war period inaugurated a very different colonial
success of this policy can be seen in the evtr widening g;.p pqlicy. A deliberate attempt was made to diven colonial
betvo·een the richer aod the poorer ruttions of the world. Dut earnings from the wealthy class and use them instead generally
the internal oontrodictions and c:onfli<ts of Dt<O-colonialism co fin.'lnce the 'Welfare State'. As wilJ be seen from the
make it certain that it cannot endure as a permanent world ex1nnplcs givc:n Later, this wa.s the method consciously adopted
policy. Ho,.,. it shouLd be brought to an end i1 <' problem that even by lOOse worki.ug-class lt:2drn who had before the war
should be studied, above all, by the devdopcd nations of the regarded the colnni:al people~ as their natural allies against their
world, because it is they who will feel the full impact of the capitalist enemies at home.
ulti.m:tte failun:. The longer it wntltlues the more certain it is At first it was p~umed chat tl1is obja.i: oouJd be ach.it\·ed
that iu i.aevitable collapse will de!ltrO)' the social system of by maintaining the pre-war colonial system. Experience soon
which they have made it a foundation. proo;.·cd that attempts to do so would be disastrow and would
The reason for iu development in the post-war period can only pro,'Okc colonial wars. thus ruasipating the anticipated
be briefly swrun.tristd. The problem which !teed the weo.lthy gains from the continuance of the: oolonial regime. Britain, in
nationJ of the world at the end of the seoond world war was particular, realised this at an early stage and the correctness
the impossibility of returning to the pre-war situation in which of the British judgemf!nt at the time has subsequendy been
there was a great gu]f between the few rich and the many poor. demonstr.tted bv the defeat of French colonialism in the Far
Irrespective of what. ~rticular political JXIrlY was in power, Eut ond AJgtriA and the fail ure of the Dutch to rmin any of
the internal pressures in the rich countries of the world were.· their fonner ooloni:ll empire.
such th.lt no post--mr capitalist country could survive unles.s The $fstem or neo-colonialism was therefore: instituted and
it became a •\Velfare State'. There might be differences in in tl1e shon nm it ruu ..rved th• devel<lped powen admirably.
degree in the extent of tbe soc:ial benefits given to the in- ft is in the Jong run that iu consequences are likc:ly to be
dwtria1 and agricultural workers, but wluu. wa.'l evetyro·here Cft\"$trophic for them.
impossible wlS a return to the mau unemployment and to the Neo-coloniaJi.ml is based upon the principle of breaking up
low le\o·et of living of the pre-war years. . fom-.er large united colonial territories into a number of small
From the end of the nine~o.eentll century onwards, oolorucs nnn•\'iotble States whlcb aR incap-.&ble of indr:pendent devc:lop-
had been regarded as a source of wealth which oould be used rmnt nnd must rely upon the former imperial power for
to mitigate the dass conflict.-c in the capitalist States and, ~s •I• ft:rlce and a·cn internal $(:Qlrity. 'n1eir ooouontic and
will be explained later, th.is policy had some success. But 1t huAneial JYS1cms are linked, as in colonial da)l$, with those or
failed in its oltim.1te object because the pre-war ca.pitali.rt 1hr fomu:r colonial ruler.
Sutes were so organised internally that the bulk of the profit At fir•t sight the scheme. would appear to h,aye manJ
made from colonial poncssions found its way into the pockets ••l¥rmtares for the developed countries of the world. All the
of the capitalist clas.s and oot into those of the worlr.ers. Far rwlh• of nc:o-oolonialism an be Jeeurcd if, in any given area,
xii xiii
Jf&O•COLOl'l'l.t..t.UM I~UODGCTIOM

a IUJOnab~ poponiou of the Statu b.ve a nco-colorliali• illU'rnativc ~ it audf a c:hallcnac to the neo-colonUlut
syiCCOL Jt is DOl nc:ct:SSilJ Wt they t~U aboWd ha'•e one. rqtm<. w~ •bout 'the dane«> ol CommuaiJt sub-
Unlc-u wall S12tes an combine th<y mw1 be: compdlcd to venaoo' .,. likely to be: -..deal sux:e they brine 10 the
1<U thar J>rimary pmducu at prices <bcutcd by the developed notice ol thote hvi.nc wwltt a nc:o-cotonialiJt system the
nation! and buy their man~ cood• at the pricfi fistd pos.sibility of a ch:a.nce of~· In fact ne<H::Oioni31itm ia the
h) them. Sn long u neo-coloniliJu.m can P"'·cnt political and \ictitn of its own oontrad.laions. In order to m:dtc it :attnu..'ti~
eoonnm.ic conditions for optimum development, lbe developwg to those upon whom it IJ pnactitcd it mun be shown :11 c:.fJX'bk
cou1llriea, ....bcther they arc under nco-co&onialirt control or of raising their Living JtandatdJ, but the economic object of
nflt, will he unable to create a largo cnouWt market co support netH:olonialism is w lteqt those ll.tandards depressed in 1he;
industrial.hation. In the same way they "ill lack the fin11Jlcia1 intert!lt of t..he devt'lapal c:ou.ntries. It lJ only when thi11 con·
strcngtll to force the devdoped cot•mries to aocept t11eir trt~tl iction is undc:r,h)rl(i lh<U the: Failure of innumc:n~bl~ "~tid'
primary produet:s at a fair prict. programmes. many f•f thm. \~dJ jntcntto.oed, can be t'q)lainod.
Tn the nto-OOionial:i.st turitoriea, Iince the former ooloni&1 ln tM first pbct., the rulm of nc:o-coloni:al States derive
pow« hos in theory relinquished political a>ntrol, if the lOCi&! their authoril)' to tonm, not from the will of the pcopk, but
condrtions occasiooed by ne!)..(OklniaJ.iJm CI.U1e a molt the: from the "'1'J>>ll wht<h th<y ollwn from their IIOC)o(X)Ioni>litt
local n....a>lonialut _....,_, can be: -.ifnd and llllOthtt mutcn. Th<y have thtrdor< bulc tnt<= in dndopUIJ
equally tub«rri~t ooe subst-ituted in its place. On the ocher education, .....,rtl><ru,_lk botJ:awnc J>O"'<r of theu -n:.n
h:anct, in uy amtinmt wbrft neo-<"'klooialu.tn exisu on a "idt employed by apoiNIC twnu, or andeed of blcinf any atop
teal• the ~ sociaJ pren:urt1 which an produce revolts in wiUcb would c:hall<11&e the colonial pattern of commerce and
neo·colonial territories will alto tfftct thote States which have lnd.u.nry. wbic:h it is the object o( neo-coloniali.sm to preserve.
refuJCd to R'-"Cc:pt. the system and therefore nec>-<:Oion.i:::tHrt 'Aid', therefore:, to 11 neo--colonitl State is merely a revolving
natiotu lu&'t'C a ready-made wtllpon with wbich they can credh, J»i_d by the nto-eolonluJ muter, pusing through the
tllrc1Ucn dK':ir opponents if they 11ppcar successfully to be neo-colonial State and returning to tho noo-coloni3l m:utcr in
clt~~~llcnging the system. the form of increaS«i proflu.
Thtac adnntages. wbic:h ~m at fint aigbt to obvious, are, Secondly, it is in th~ field of 'tjd' that the rivalr')· ofindi,-idu;~J
hO\\CVCl'1 OD c:.xamination. lliU501") b«<iu.c they fail to ak.c dcvclDp(d Su.tcS fi.ru m~~.nifc:su hKJ.f. So long as neo-<Olonial-
~nto cooJiduation tlx facu of the world tOday. ism persists 10 long "'ill 'l'llt:.rn of i.ntci'C$C persist, and thi1
Tbe introduction of neo-Q»lonialism inttcua the rinlry makes multila.tt:ral aid-which i• in f.act the: only cffect.ivc fonn
.,.,_the great pow•n w!Uch ,..., prcm>tcd by the old•)ic of oid--impos.ible.
colorualum. Howe«< bale real pow<r the ..,......,_ of • Otx'C multibtc:ntl b:l bqUu tJae llC'f.MX)kmQ!;st mutc:n: are
nco-colorua!Ut State nuy poaeu, It mUJt han, from the VU"f fJ«d by the -lily of the -.:<1 intcmu in their "'"'
fact of 1t1 norninal.indepmden«, a ctrtt:n area of manot.u'Vff. ccu..ouy. Their .nu.nufactwt'rt naturally object co any aurmpt
It may not be ab~ to exist without • nco--colonialist JlliUttr to raUc the price o£ the raw Ntt:rials which they obtain from
but it n'Liy ati1l have the ability to ch;utge m.ntus. the: netH:Oionialiit territory in quc,tion, or to the establishment
The [deal neo--colOfliolli.it State would he one which w.u there of m:.muf~~eturing indurniea which might compete-
wholly aubxrvient to neo-colonillliJt loteresu but the existence directly or indirectly witll d~r own exports to the territory,
o( the socialiit nations ma\ea it impoetiblc:. to cnforc:e the full Even education is s.uapect 111 likely to produce .. atudent

.,
rigour of the neo-<Xl1onia.list qnem. The cxiatcnce of ~n moven\C':nt and it is, of coune, true that in many less denloptd
..
"fiO•COLO!U..U.IIM INUODUCTIOJI
c:ou.ntries the: nudmu have been in the vaocuard of thot fiPt ThiJ boat is thrrtfore an anempc to uamine MOo<."O~nialinn
..... -lonbli"'.' . . . noc: only in its Mrio.n COtltut and its tm.tion to~ u.nity,
In tht> end the sin.non ames that the o.l'Lly type of aid which but in world pmpeetiw. ~eo-colonWism it by no mcms
the neo-colonillist mant:l'l a:~ruider a.s safe it 'military aid'. ndwivtly an African qucnion. Long Wore it wat pnt't.ilel.l on
Once a neo..QOlonialist territory is brought to such a st-ate of .,,,. large tiCII..'e in A(riot it was :tn established tyttC"Ifl in other
toonomic cbaO$ and mitt:ry that revolt actually bre:tb out p:•rlll or t..he world. Nowhere ba.s it proved !IUC::Ct!llllful, cithcf' in
then, 2nd only tht:n, it there no limit to tht ge.Mroahy or the rRi•ling living standanb ur in ultimatdy IM'hcliting the
neo-<olonial ovttlord, provided, of course, thst lhe funds cow1tries which han~ indulacd in it.
"'''P!Kd are utili ...I cxchuivdy for military purpos.t. Marx praliaed that the growing gap beN...., lhe wealth
Military aid in faa molts the last >uge o( ~kmialism or the posoessin& c~uoe. t.od the -..oden it employ• wotdcl
md: iu dfea is Jdf--dc.JtnJC.tivt:. Soon.et or b(l'T tbro \llta:poos ultimatdy produce a CX>nllia faW to copotabw In <Kh
supplied pass into the hands of the oppone:au of the DCO- tndondual eapitt!Ut Sate.
colciniati" rqim<: and the war iudf incr<U<o the oociaJ Thu <>0<1flic< belween the rich and the poor lw now bttn
miaery which origiNIIly pro•oked it. truuferrcd o.n (0 the international acenc, but for proof or what
N«HX~Jonialis.m ia a mill·ttone :around the ntdu o£ the it ack.nowlodged to be happening it is no lon~tr neccuary to
developed countries whkm pr.aaise it. Unleu t hey Ctln rid consuk the clt.ssical Marxirt. 'vriters. The situation it tet out
them.ad•es of it , it will dro~1n them. Previouily the dcnloptd with the utmolt chuity in the lending orpnt or capitalist
powcn could escape from the contntdicrions of neo~~on~1sm opinion. Take for ext.mp"' the foUowing ex.tracu from TIM
by .uba~ituting fOf' h direct c:oloniali.snt. Such a 10luaon 1t no lf!oU Stmt Jovr••l, tho o.-.·oroper which perhtps but rtftocts
tonp po.sible and lhe ,..,...., f"o< it t..v. boon well e.q>lainal
by Mr 0..-m Laru~. the Unit<d S..... Far Earurn expert
and ""';,.. 10 ouanc Kai·abd: in the immediate poot-,.....
Unital Statet eapitalin tb.nking.
Io iu issue ol 12 ~t.> 196S, under the h<odbne of
Nations' Plight', the P1fXt tint a:nslyses "whim countries 1ft
·p-
period. Hewn><<: coruid«ed indunri:d and •·hicb back•'lrd'. "~'here is. it
apl:&ins, 'no rigid method of clusific:nion'. N'~ku, it
'Asia. which was so easily and swiftly subjuptcd by
points out:
conqueron in the eightcf:nt1a and nineteenth «nturies, dis-
played an amazing ability n uhhornly to ruirt modern 1:1r~s
equipped with atropbmcl, tanh, motor vehicles and tnObtle 'A ge.neJ-ally ustd b•ukdown, however, Jms rtetntly been
maintained by the fntcrnational Monetary Pund bccau.~et
&nillery. in the word.J of an J,.fF official, '\be economic demarcation
Formerly big t.tn'itont.t .,..CTC conquered in Alb "ith
....U ro.-. Income. first o( oil £rom plurul.,., then £rom in the wcdd is gtttiu& inc:rc• Nngly appucnt." •tne break·
clirea ..... ond lastly ftom trade, aopiw in•...,....u t.od down, the official .yo. .... bated Oil timple CX>mrnoo
tonc-tenn ccploit:ation, en......,_ with Dlcralible ~ the
expeod.iture for military operatioo.s. Th.is arithmrt1t.! repre-
JC:O.Je.u
ln the IMF"t wicw, the mdumitl COU!ItnCI are the
ltllted a great tempcatioa to strong countrif'l, Now they ha""e United States. the Unncd Kingdom, most Wen European
run up against another uithmetic1 :md it di5c:Ounao lhtm.' nations, Quudo and Japan. A optc±tt cntocory caUed '"other
developed areas" includes tU(h other Europt<tn lands 3.J
The same arithmetic i1 likely to apply throughout the less Finland, Greooe and r,.land, plus AUitJ"Oiill, Now Zeolond
ond South Mrico. The T~1F's "le., developed"" anocory
...
denloped world.
MIO•tOI.O!"IAU.SW
I )I'TaOOCCl' IOM
ernbnicet 11.11 of Ltltin Amc:rica and nearly all of the Middle pre~ent decline eon be reversed, the.se an~lystt fetr, tho
F..ajij, lmn-Commwli.M As:ia and Afria.' Uruted State11 Md other wealthy industrial powers of the
In cdw:r .,-ords the ~· cowttrk' ue those t.ituatod Wut face tho diJ.tinct possibility, in the wordl of Britiah
in the ,_..,Jon;.~ .,.,.._ ooonomi.n B:ubar~ Ward, ..of a 10n of i.Mrmatiooal elua
war'".'
Alt.,. quotiog figu~• to support '" "'""""t·
St1111 ]of4rnaJ c:ommenu un dlill 'l.itu:uion:
TIN Wall
Wlu.t is lacking t.rc any po1it.ive proposals fur de".tling with
"The industrial nations hol\'t Qdded. oearly $2 biUion to the situation. All tlmt T/J~ Wolf Sttl'rl Jo.rm,al'tc:oiTCSpOndent
thdr rutnu, "·hieh now approximate $52 billion. At the can do iJ to point out that the traditional mrthod.t rccom-
same timo, the ~,.... of the 1...-ct....loped group - oolr ~~ for QlriJ18 thr t'\ih ~ only likdy to maR che
ha>'O ttopptd risin~. but haY< ckdin<:d """" $200 nulliotl. ••t·uat..oo "W'IIt'-
#ro analysts such as Britain's Miu Wltd, the sisn.ifiCOUl« lt has botn •raucd that the developed nations :should
of iUCh. sta.ti.stict is clNr: the a'UllcJmic gap is ntpidJy widen- effectively <Usist the poorer pan• or the world, and that the
ing "bd.wecn a \\h.ite, compbct·nl.-, highly bourgcoit, very "hole world sboukl he turnod into ll Welfare Stitt<:. ltowe\'er,
weolthy• .-.ey sm>ll North Atlantic ~li1e and a...-ybody e1te. then: ocaru little prospctt that Oll)1htng of this "'" could be
and thu is not a wr-y comforubk htritJce co ave to one's aehiaod. The OCKallcd 'ad' procrammcs to belp badtwm:l
clUldrm ''
"Everybody elfl('" intludes npproximatdy t"411t"O•thirda of
-..c:s n:pmmt, """'"'dine"' a rough U.!'.. ntut101e, oo1y
one haJf of cne per cent of the total i.noomc- o( industria.l
tht! popul:ttion of tho earth, sprc1d through about 100 oounLries. But" hen it oomc-:s to the prospect of incre:asing such
nation•.' aid the.mood is ono of l>Cssimism:
This it no ,.... problcu. In the opmin& poragnph of his 'A~ Khool of thougbc holds that expandod lhare-th.,.
book, 1M Wm on IVor/J P«rnty, w-rint--n In 1953, the preamt
British Labour leader, Mr Harold WiiMJn, swrunariscd the -lth - · ... ideolistie and unpt'OOtinll. This -
conttnds chmatt, undc\·t&opcd. lwm:an Uills, lack of n:tturul
major probkm of the \\-'Orld as he thrn uw it r~aources and other factors not ju..st .bd of money-
'Yor the vast majority of mank.ind the most urgan retard etonomk: progrtn in many of these bnda, and that
problem U DOt w:tr, or Cornmuniun, Qt the oaq. o( living, the oounuies lack rtrsonnel with the training ot \till to use
or a:ation. It it hu.nR'tf. Ch-u- 1..50().~(0) people-, .tOO:lle- \'UIIy c:rpand~ Old efrecti•-.ly. Share-tbe-,....lth ocbemes,
thing like .,.,_ thi...U o4 tbe "'"ld '• t><>pulatioo, an: h""" in aewcding to thit Ylcw, would b< Ilk pourir.g -..,. do-om a
condition• of acute hungtr. defi.m:d in temu of tdenti6.able boc.tomleu ~ell, \~oeakening the donor natio01 without
nutritional disease:. Thi1 hungt:r i, 11t the same time t.hc effect tfTcctin~ly curing the iiJs of th~ rn_;picms.'
and tht ause of d~ J)U"erty. squalor and misery in 'Ahieh Tbc absurdity of llus argumrnt ;, dcmoruo-aled by the faa
they li\<.' that eYer)" one of the I"CU)ns quoced to proTC why the le:ss
lu~arebkCWJMundentDOO. Thecu~ de-..lopod pms of the wwld cannot be d<'dopcd applied
of Tit• IVRII Sirttt Jounud. preriously quoted, underline• them: <qually s1rongly to the preocnt ckvdopcd oountnes m the
peri~ prior to thtsr development. The argwne-nt u only true;
' .•. nWly Wplomatt and cconomittt vjew. '!'e implications Ln thit sense. The leu de\'cklpcd world will not become
•• OYm<belmintly-and ~rousl)'-1>0titlc:ol. Unlt:U the devdopcd thsough the good>\ill or generosity of the dt\·elopcd

-
I" 1!0-COLOl'C I A1.1 S~

powers. It csn ooJy become ~e:vdopcd through .a ttru.gg.le

ag-.linsL the exter nal Cor«s wh1ch have a vested anterest m
keeping it undeveloped. .
Of these forces, nco-colonialism is, •t this &tagc of hi•tury, 1. Africa's resources
the principal . . .
I p~ to analyse nco-oolonJalismt first, by ~g .the
mte of the African continent and showi.ng how noo-coloMh.sm
at the moment keeps it artificialJy poor. Next, I propo:~e 1o
!\how how in pmctice African Unity, which in itself can only be
established by the defeat of neo-colonialism, could immen.!dy
raise African living standards. From this beginning, 1 propose
to examine neo-oeolonialism generotlly, first historically ~d
then by a oonsidcntion of the great international monopolies
whose continued stranglehold on the n eo-colonial sectors of AFRIC'..A i~ :1 p;n:.dox which ilhJJITates and highlights neo·
the world emures the continuation of the system. coloni:.1lism. Her e-.u1L is rich, yet the produces that come from
above and below her soil contim•e to enrich, not Africans pre--
dominandy, but groups and individu.tls wbo operate to Africa's
impoverishment. With a roughly c.<timated population of 280
million, about eight per cent of the world's popuJation, Africa
nccounts for onJy two per cent of the worM's twl production.
Yet cv(on the present very inadequate surveys of Africa's natural
ruourcet sho"' the continent to have immense, untapped
wealth. We know that iron reserves are put at twioe the aize of
Ameri~'s, and two-thircb those of the Soviet Union's, on the
basis of an e~tinuted two billion metric tons. Africa's c:aJcula.ted
coal reserves are considered to be enough to bat for three
hundred years. New petroltum fields 2.~e being discovered and
brought into production all over the continent. Yet produc;tion
oC primary ores and minerals, considerable as it appl.-an, has
touched onJy the fringes.
Africa has more thall 40 per cent of tlu: world's potential
water pO\H:r, a greater share than any other oontinetlt. Yet less
than five per cent or thi.li vnlume has been utilised. Even taking
into account the vast deserl M.tttches of tbe Sahara, there is still
in Africa more arable and puture land than c:xi~ts in either the
United States of AmeriCil or the Soviet Union. There is cveq
more than in Asia. Our forest areas arc twice as great as those
of the United Stat...
1
'H IO•COLON IAL Jl);l ArlliCA'S Rlt!OtillC&&

[f Africa's multiple resowces were used in her own deve!lop· on the p roduction of primary products o utp ut in the t.otal
mcnt tlu::y could plnce her among the modernised continents economic iolcti,·ity, by comparison with the country of most
of th~ '"orJd. But her resources h,_ve been, and still are being advanced p roduction. the United State.a of America, the facts
l.I!Cd for the greater development of 0\'ertea.s i.ntc:retla. Afrl~ can be a.cen at a glanoc.
provided tO Uritain ln 1957 the following proporUml!l of b.wc
materials used in her induS-tries: •
tin ore and concemratc-s 19% •e ... rlJ.g
]•
~~ ·~g
<
·Is
_, ! id j
29% Co11nlry Ytet .•!
iron o re
}if .~.!!~
•
manganese
copper
bauxite
80·'tc·
46%
+7%
.... I" .§i ,;:"§~~ o5
.l!

Al~rla 1908 21 3 II G 6 19 22 12
chrom~ ort! 50%
asbestos 66% Cont<> (!,.) 1958 26 16 12 6 9 7 14 16
cobalt 82%
<lntimony 91% Kes1r• 1958 42 I 10 4 9 13 10 II

Frenc h impnrtll from Africa include: Morocco 1958 34 6 18 4 • 15 10 13

oouon !1'2% Nigt"ri.a 1956 63 I 2 II I 4 6 3
iron o r~ 36%
zinc ore 51% Rboduia and
lc;~d 8>% Nyualand 1958 20 14 II 8 9 10 4 24
phosph:.u~ 100%

To Gernuny. Africa provided:

T~ongt;n)'lka 1958 $9 • 7 6 7 5 7 ;
Republic of
copper imports 8% S. t\fnc:a 19.16 12 13 2 ; 8 12 10 20
iron ore 10%
kod ore
nrc
12%
20%
U.S.A. 19!)9
• I $0 ~ a 17 13 22
ntang'.tnc~e

chrome ore 22% ..

phospbotitC$ il%
lt wiU ~ noted thnt in America agriculture, fo renry and
Yet ill nooc of the new Afric;m countries is there a $lngle fishing pro,>ide a mere four per cent of the total national
integrated indu.nry based upon any one of these resources.. :tctivity, and mining n trifling one per cent. On tht other hand,
Although possessing fifty· three o f the workl'~ most i~por· indwtry, manuf:lcture and commerce provide 4 7 per cent. I~
tant ba!ic industrial minernls and metals, the Afncan conttncnt the African countries included in lhe table. which ott-1 with the
tails far bdtind all others in industrial development. Gaugt>d • lndllcl«<liltldl!r 'OtheN',
2 3
~1!0-COI.OI'( tAl.IIN
••••c-•'•
auouacas
tteq)Lion o( Nigeria, those 'lrilh the highest sett1t'.r communhit:t n.e assumption. aJM) ignoru uothct important (aa:, namcly
and therd'ore the mo.c exploited, agricultw"t' is pn.dominant W. '""$"' of manual •;orktn, low u !hey are, are ponly spent
Tndustry, m:wufiiCture and comm~ lag far behind. £'tell in oa goods manuf.ocnued abrood and 1mponed, taking out of the
.... - of Soo.nh Afri<o, .... most rughly Uxlu!triali...t _,.,, priaw-y pn>dneing <ountn<J a good pen of !he ..-orten' nga.
of the Afncan oontin<nt, the oonuibution of~ (12 In many c:a..s, the imponcd goocll are the producu of the
per oent) Uld minina (13 per cent) au equal to thote of comp:uUts asaociated with the milling poupo. Prcqumtly, they
UldiUtty, manufacture and ooruuuctioo put togdher. are tOld in the c::ompania' <M"n atOm on the mioin« compou.nd.s
11...-..... on !he wbok, mining hu pn>\'ed a mrut profiuobl<
vcotwc for forciJn c:~piul inn~stmcot in Mria. lu btodi~ !or
.,. by their appointed agents, the worllm havinJ: to poy pnoes
fixed by the oomponiea.
Africans ha.. by no means been on an cq.W scale. ~fini"' The poverty of !he people of Africa is demonstrated by the
production In a number o{ African. countries hu a value oflua Jimple fact that thc:ir incoruc pu CllpitA it amona the ~·est in
than S2 per bead of population. .'l.s &aop< (Frmot<) O.tr....,. the ~'Orld.
putl it, 'It is quite certaJ.n that a mining produetlon of $1 or 12
pH inhabitant C4t\not appreciably affect 8 country~. standard or
livinJ. • Affirming correctly that 'in the zones of exploi_t~tion, the (lff.~mv. per capita U,$, f. 1900-63
minlng induttry introduce. a highe.r standard or hvang•, the
journa] h ror«d to lhe concl'uaion that mininlt txploitationt u.rc,
bowcYer, relatively privilq::ed isolated ialands in a very poor
tertal economy.
1hwtoland.
_'110-+-$8-t_-_'2-~-1-$1-~-~00-!-$-200-
_t_Jn_d_'_'
.up LibuW
-250
A~ria
I
Ovu 1•00
Soum
The r<uon for this is seen in the absenee of industry and
manufactur~. owing to the ~ th2t ~J p~uction il dtJ• Bechuanabnd Cameroun Libya Cote Africa
OurunJi R.rpubl•c i\oloNCCO d' I ,·ou~
tined pnnapally Cot eaponaoon, oWnly m pnmary fonn. Tt Cbad eo., ( L.) R-~.nd G•bon
gon to (ft'd t.Jlc._mdunries snd facto"? of E~~ and Amcra. c..,p (B.) Gamboa ·r..,;,.. Gh...
It ;, &110 ....,..rked byF._,.
to thr imrcwtr•dunnn o( tht oountnes ol ong.n.
(F,....,) 0otr.-r that about
50 pu oml of Africa'• mining production n:main.s in the
~
D~
Guian
Kaaya
~bunti•
SnW''
c.;,.. d< Sao M.lopsy ~-
oountry ol ....n as wagos. E...., the..- cwaory sWl<e at the )Wa,.; R<publoc Africa
annual accoantl or the mininl: companies refute:• thit c:bim. MaJ; Maun..... Z...boa
The aoc» of f'C\"·mue 0\o-cr expenditure 1ll many c:ueJ pt'O"t:l Moumb'quc Sara l...o.IOt- RJ.odm•
cond. .vdy byns s.izc W. wq<:s r<Cci>ed by manual labour Ni,cw Sudan (lJm.ba.lnr.~
fonn by no means tucb an exaggen.ted proportion of value 1'\Jae"a TOCO
produced •• ~ per ecru. Tbt: considerable SUJ1U which in ao Rwanda
Somali•
t"oitcd Arllb
hicJtly plld oalanes to European staffs 10 the wUed and Tang•nyib-
1\tpu.blic:
adminlnrati..·e catewories, pent of which it rerumed to their Z:amib;~.r
own countries, must in many instaru;:c:s amount to tlle total Uauda
rcce.ivtd by Airican labour, to say nothing o( the large amounu Voltaic
which rwell the yearly incom~ of wealthy directott who n:side Rtpublie
io the mc:tropolitan cities of the west•
• 5
J<IO•COLONIALISM 1
APillCA & USOUI\CU
[n some countric•. lor cx:unple Gnbon tnd Z::tmbia, up to twentieth century 1h11n ever before. True, p~r capita output haa
half the domc3tic product is p•id to resident expnriatcs an~ to increased in Mricn., particularly in t1Je la3t two decades, which
ovctsC3S fimu who own the plantations and rnmes. In Gwnea ba,•c $ttt'L an increase of some 10 to 20 per ocnt. Already far
de Sao, Angohl. Libya, Swaziland, South-Wert A!r-ica and ahead, the industria.) COWltries have marked a pt.r capita advance
Zimbabwe (Rhodesia), fortign firm profits and. settler or in the same period of 60 per oeru, and their per copi.la industrial
expatriate incomes exceed one-t1Urd of the dome.sbc p~uct. production may be estimated as high as twenty-five times tlult
AJgerta, Congo and Kenya were in this group before mde· in Afrim as a whole. The difference for the greater part of
pendence. . Africa, however, is even more marked, since industry on rhls
On achieving independence, almost c\'ery new state of Mna:a continent tends to be concentrated in un:all nreas in the nonh
has developed pbns for indu.strialis~nion :u~d round~ ceo- and south. A re:d transformation of the Mrican economy \\'tluld
nomic growth in order to improve pr~lucu\·c capaaty 3.?d mean not only doubling :~gricultural output bu.1 lncre2sing
thereby rai~e the standard of living of •ts peopl~. But whde indunrial output some twenty-five times. The Repon makes it.
Afric:t remains divided progres!i is hound to be pamfully sl?w. plain that industry r.tther than ~ricuhu.re is tlle means by
Economic develop.ment iJ dependent not only on the availa- which rapid improvtme.nt in Africa's living standards il
bility of natur.al resoun.!CS and the site and population of a ponible.
country, but on economic tiu, which takes int~ ao::ount both TJltrt are. however, iftlptri.alist ;pecialisu aOO 3pologisu who
population and income ptr tapita. In many Africtm State~ ~e urge the les.o; dcvdopcd countries to oona:nt..rate on agrieulture
population and ptr eapita prodUct$ are e~el)' small, RJ.~tng anci leave indnstriali~tion fM Mme later time w hen their
an economic unit no larger than n medium-sized fi~m ~n a populations sh•Jl be well fed. The world's economic develop~
western apitnlist countr)'• or n single State cnterpme lD a mcnt, however-, thows that it is only with adnnccd indwtrtal-
European socialist economy. . isation that it has been possible to rai.se the nutritional level of
Africa is ha\"ing to pay :~ huge price once mo~c for the hu· the people by raising their levels of income. AgricuJturc is
torical accident that this w.n :1nd compact contment brought importa.nt for nuny re.·tsons, and the governnx:nu of Airican
fabulous profiu to western ca.piualism, first out of the tr.1de in states conoc.mcd with bringing higher standards to their people
its people and then out of imperialist expioltatioo .. Tl~is enrich- 3re devoting g~ter investment to :agriculture. But f:ven to
ment of one side of the world out of the expl01tahnn of the rnake ngrieulture yield more the aid o f industrial output js
other has left the African economy without the means to needed; and the under-developed world cannot for e ver be
indu.5triali~. At the time \¥he1\ Europe passed into iu industrial pJ:iced at the merC)' of the more indunrialised. This depend-
revolution there "Was a L'Onsiderably narrower- gap in dC\'clop- ence must slow t1te rate of increase in our agricuJture and make
ment ben~ten the oontinc:nu. Dut "ith cvecy step in the it subservient to the demands of t.he indu.nrial producers. That
evolution or productive methods and the increased profits is wby we c:uutot accept such sweeping at5el£lnt':llts as that
drawn from tJ\e more and more !ihrewd investment in manu- made by Professor Leopold 0. Sclleidl of the Vienna School of
facturing equipment and base metal production, the gap wid- Eoonontic~ e~t a rt:CeJ.il nu.::ctiog in London of tl1e Tnternalional
ened by leaps and bounds. Gtogrnphicsl Congress. Commented Professor Scbeidl: 'People
The Report of the U.N. Economic eomn.us$ion for Mri~ in developing count:rie! sum to think that all that i..\ n«:es.s.ary
published in December 1962 under tht tttle of Indusrnol for them to become as wealthy as the we.st is to build factoriu.1
Gr'O'fdlt in Ajriuz states that the gop betw«n 'the continents Most experts agree that. it is wiser and more promising to
separated by the Mediterranean' has widened faner during the de,·elop agriculture into self-sufficiency and on to the level of
6 7
J\IIO•COI.ON I AI.II.M AUICA'I Jt.ISOVICII

a marketing cmnomy' (Tioo T~. 24 July 19M~ ThiJ troin o( America~ Sir(;._ llolton. Tho btt<T ,.-., "'l"'f'<d in Tloo
thoucht linko up dir<cdy mth tlut of the choitmon or Booltor ~~ T;WJ o( 6 L\lardt J9G+ u heine cnnfllknt of a rue in
Brothcn, Sar Jock Campbdl wboac: combine of compt.niet it oommodity pricea, wiUch would ha'"oomideroble dl<ct on the
bwy mono,>olimc . _ and b)'-pcocluct inclurui<a in Bri'f'h forcip adwlget. For whore benefit! Sir G<orge provides the
ow...., thippmc IIDd aodiDg in the Caribbean IID<i Ean Afno.. an.,.·er. 1t thould btlp the rueroe eurT<fiCier, mrling and the
and is now pcr.ttrtdinc into the west of the A!Dcaa cootinent. dollar.' he llid. Whrl ~~ec:aure beinc tied to tl:ex c:urrmcics.
Sir Jodt Campbellauened at the Annual addr<st of the Africa 'the primal)' pcoclueen "'" be accumularing their SU!plwa iD
Bt.l.lftu in London on 29 Koo.--ernber 1962 that •agriculture "'~~' stming and dollar balanc:<s'. Thisappuro to be ootlliog sbon
the buis of African development and that pbntmont - • an ol a d.ired co.nfeaion or the Mljor tnlt"'re:Jt of the hlnking and
effective method. of increuing economic: potential'. He om· fuuncial world in the eaploit:abon of the developing oow>tries.
1idered that 'oolong., indUttrialiood agriculture =pk>yod men It is interesting, thttt:fort, to note that Boltt'a tn.-nsfer agcnu
free to come and go, it was preferable in tenru both of efficiency in London are Patino Mina &: Enterpritcs Coosolidat.od. the
and liberty to the communised collective {anning1\·hoJe results Americao..controUcd oombineoptnnin&: minea in Latin America
had fallm ahort of exp«tation both ln Ru.»iQ and China' (1'he and Canada, and intimately uaoc:inted with the groups engagu!
Trlft#l, 30 November 1962). He does not '-~"' to have eon· in exploiting Mrica'snaturaJ reeourcet.
'·inced the sugar workers of Britilh Guiana, and it it 1 moot We are certainly not ag11inu J»:trketing and troding. On the
!WlinL whc::l.lu!r hr. h~ll been able to impren the bencliu of his contnry, we 1tre fo r a widening of our potenti21ities in thete
frre tn come ~nd go, ph~nration phi)o!Ophy on 1hc worker-. for spbern, and we are convinced that we shall be able to adjust
hi.s com....nies in Nyaa.aland, Rhodesia: and South Africa. Even the lnJance in our ravoor only by devcoklping an agriculture
the JCitntifie supporters o.r the imperialist pattern are 3w1re of attuned to oUT nccdt and •upponi••g i.t \\ir.h a n.pidly inerc-.ulng
the ftaws in their injunctions, but they eunnin.af.y attribute the indwtrialisation that will lunk the nrf.-colonialist pattern
empb:uiJ placed by the dneloping atatet 1.'pon induMa.Ut:ati~n 'Which at preacnt opcnlal,
to politioal ambitions rather than to «llAomic and socul A. cootioeot like Mric:a. hnv.nn much it incrc:a.k"5 its agri-
nt«nity. A. European n:presc:nt&tive of the Uau.-cnity o! eultur.al ou.tput, will not benefit unltu it is rufficiendy poliU..
Maleya. Mr D. W. Fryer, tpeaking ot the .-...g o( ~ caUy and economically united to (or<e the dadoped wur1c1 w
fot<matioaal C"''"'phicol <Anfercnce to which reCmr><>e u pay it a f.al.r price fat iu c:ub cropt.
- · abo-re,llid that ... i o - in the dlidcncyol traditional To gWc one dlu.stration. Both Chl.a.a and Kigeri.a have in. the
export iodwttiu in the under~ counuia w.J an
obviou.J move, but it -..-ou politic:ally unaui"'C'lino h a:uaat~
- - - irld<p<ndalce poriocl -~· <b-dopcd their
prediJClion of 00<1>0, u the tJble 011 pace 10 lhows.
continued acoepta.:nce of the old colonlal tcXJIIWffl)l • • • • 1bis result hat not b«n obtllncd by chance, it iJ the oome-
Industri.&li.Jm wu an integnl part of the w.tionaliu monmr:nt. quenoe of htavy i:ncmal npenditure on control of diose ao.d
Itt rMinspring wu not economic but politica.l, and pol_itical pesu, the subtidising or imcoct.idde. and the spraying J:t'Gchin.e$
c::rpt'dlency '\\'2.1 often more important than oconomic efficiency provided to farmers and the importing of new varieties of coooa
i.n the locttjon of new industry'. seedlings which are u.sintnt to the endemic ills which previous
The more dlicicnt m:a.nagemeot of primary product.aon 1nd '"'(l(."Qa tn:e11 had developed. By means tueh u the&e Africa as a
improvement on a marketing level is imperialism'• pin and our whole ~lly jucrn.scd ht':r cocoa production, while that of
lou. The point haJ been made quite clearly by no leu a person T.alin AJnerica re.main.OO Jltlion11.ry.
than 1M chairman of llolsa (the IJank of London and South \\ol1at allVHrii"Se h11K 'JigcriJt or CMn• gained through this
I 9
NI()~COLQ!' U LI&M AfRI CA'S aESOURCIS

~tupendou5 inereJL,e in agricultural producti\·ityi In 19~4)5 A detailed uudy of production and price ahow• that it is the
when Ghana':s productioo wa.s 210,000 tons, her 1954 ca~t developed consuming country which obtains the adwntage of
from thecocoaczopwert£851 mill;oo. Th;s y<Or (l964/;)wnh the increased production in the less dcve~cd one. So long as
an estimated crop of 590,000 tons, the estimated external Afrie:o.n ~gricultu.ral producer:~ arc disunited thc:y will be unable
earnings will be around £77 million. Nigerit. has su.Jlered a to control the market price of their prim~ry p roducts.
As experience with the Cocoa Producers Alliance bas shown,
any organisation which is based oo a mere commercial agree-
ment between primary producers is insufficient to secure a fair
lndc:x
world price. This ean only be obt2ined when the united power
Lon~ Tons of the producer countries is harnessed by common political and
194!)1!50-100
economic policies and h:as behind it the united fifWlcial
- n"Wwces of the Sates concerned.
Gh:lna ){ig~rd Ch:~na Nigeria
So long as Africa remains divided it will therefore be the
19-19/50 2·16,000 99,000 100 100 1950 wCJtlthy conmmer countrie1 who will dictate the price of
1950/SI 262.000 110,000 106 Ill 19Z.l A(rican cash crops. Nevertheless, t'\'en jf Africa oould di..:.-c.ate
1951/511 211,000 108,000 8$ 109 19.52 the price of iLot Qllsh crops this would not by itself pi'Ol<id e the
t 9~2}.'1.~ 247.000 109.000 100 110 1953 bala.nced ec-onom)' which is necessary for development. The
1953/M 211 .000 97,000 85 98 19~ answer must be industrialisation.
1 9!>-ll~ 220,000 39,000 89 90 19;5 The Mrican c;ontinent, however, cannor hope to industriali$1:
1955/56 237,000 11+,000 96 1!>5 1956 effectively in the haphazard,/aiun--Jain manner of Europe. In
1956/57 26+,000 135 ~000 106 136 1957
1958 the first place, there is the time factor. In the JCcond, the
1957l58 207,000 81,000 83 82
1959 tociatised modes of production and tremen dous human ond
1958l59 255,000 1+0,000 10$ 141
128 157 1000 capital investments involved call for cohesive and integrated
1959,160 317,000 1!>5.000
4$2,000 19.$,000 17< 197 1961 p l:uming. Mrica will need to bring to its aid all its l:1tent
1960!61
1!)61 i62 +10,000 191,000 16; 193 1962 ingenuity and talent in order to mod the cluiJcnge that inde-
1962163 422.000 176,000 110 l10 I~ pendence nod the dc:m:and• of its peoples for better living have
19631&• 421.000 217.000 170 219 196+ raited. The challenge cannor be met on any piece--meal scale,
1964/6> .;90,000 310.000 238 313 1965 but only by the total mobilisation of the continent's resources
(~tama1e) within lhe framework of comprehensive socialist p lanning and
- --· deployment.
We haYe noted that in the countries of lhe llighest settler
similar c~rictM::e. ln 1954/5 sbe produced 89,(;1(:.) tons of ben.ns populations, and therefore the n)OU exploited so fill' i1l Mrica
an d received for her crop J.:39f million. ln 1965 it i$ estimated (Algeria, Congo, Kenya, Morocro, Rhodesill, Malawi, Sou th
that Nigt:ria \'till produce :no,ooo tons and U likely to n:cei~e Airita, Tangonyil<a), agriculture is predomU>ant. ln tbe case of
for it around !40 million. In other words, Ghana and N1getu South Mrica. the most highly devc:lopcd area of the M rican
have trebled their productioo of this particular agricultural contin ent, the contribution of agriculture and mini.ng is together,
produCt but their gross earnings from it b~ve ntlt'n from £125 equal to that of indutlry, manufacture and oonstruction. South
mi\Jion to 0 17 million. Mrica's economy i.$ heavily bol~tercd by the export of its
10 II
NKO•COLONIALISM AfJ.ICA '8 Rlli0 UitCI 8

min.iog ourput. Gold contributes up to 10 per cent of the tobtl filhing accounted for 63 per cent of the economic activity;
exports, which makes the economy, for aU ils appirent honm, mining one JJer cent. The imbalance is emphasised by the
and the ~vily incre:asi.ng foreign im·estment. basicaUy almost extn:.mely low ratio o( two per cent for industry and lnanu-
as insecure as chat. orthe les.s d eveloped countrie-s of the facnar-e., eliminating at onoe any oomparisoo with the nne: per
oontinellt. For :~.11 its pushing secondary industries, its chem.i· cent contribution of mining a.nd (our per cent of ~iculture to
cab manufacture, military production, steel processing and the AmeriQ•s cot.al economic product. ln the ease of tho United
rest, South Africa has !10 far failed to lay down the basis of solid State-s, this low proportion supports a vast .superstructure of
i.ndwtriali.aation. G. E. M.enell, chairman of .1\.nglo-Tran$Wal industr y aud manufacture. ln Nigeria it connotes simply a total
Con.Miidl\ted fnve,;tment Company, which oontrola gold, dia· disregard under colonialillm of Nigeria•s potc:ntialitie-.s. 'fhe
moods and ur.mium, made a most telling statcmentinhisannual reason for this lie.J not in the fact that Nigeria is dcvojd of
address on 6 December 1963 to the johannesburg sha.reboJdert' natural industrial resources, as recent findings of oil and iron
meeting. 'The nation's eoonomy is based, to a significant confirm. It was that Nigeria's agriculture provided greater
degree. on ?lasting asxts- the gold mines of the Transvul and profitability for European inve-stment than the risk.s that were
Orange Frte State. We ban become more and more aware of in\'OI\•ed in the larger capital provisions called for by mining
this in recent years as more mines near the end of their li\'« exploration and exploitation.
without any sigo of new large goldfields, in spite of the many ln 1962 petroleum and petrOleum products contributed 9·9
miJlions being spent on exploration.' ptr oent to Nigeria's exports. bul it is Sheii-BP that hopes to
lnvelunent in South Africa's economy comt'S mainly from reap most of tlu~ ~tfits. The bulk of these exports Yr"aS in
\Vutern capital with which local fin3nct, not hardy enough to crude oil. exceeding three million tons. The oil oompany is
stand on ita own feet, is atrongly buw1d. Quick profits are the aiming at au export target of five: million tons of crude oil by
incentlvt, so that while AngiQooTransvaal'! clutjllll3n ~ the: 1965. Processing plants are in Europe. not in Nigeria.
dangers to the «Qnomy, he was nonetheless happy to be able The oil refinery going up in Port Harcourt is owru:d by
to announce that record profits were again achieved in 1963. Shell-BP; the narural gas piping is owned by SheU-Barclays
D.C. & 0. The oil rd'mery is meant to handle only ten per cent
The whole o( the economy i 1 ge2rcd to the interc:st.o; of the of Nigeria'Jt cnu:le oil output, ~nd its pmclucts will tc.rve only
foreign capital that dominates it. South Africa's banking i.nni· Nigeria's domestic. market. Suclt an arnngemeot makes it
t.uti()ns, like thn!W! of most other Mrican States, are offshoots of possible not to disturb oper:~.tiona outside Nigeria while making
the \Vcrtem banking and financial houses. South Africa is super profits on Nigeri.tn operations.
dominated by western monopoly even more than by any other Cencrnlly speaking, in spite of the exploration coats, which
atnor of the continent. beelu.se the investiDCl'lts are many times are written off for tu. purposes anyway and many times covered
greater and the dependence upon gold and other mining as the by eventual profita. mining ha.s proved a very profitable venture
centre of tbe economy gears it inextricably to that monopoly. for foreign c.:apital investment in J\fricll. Its benefits for the
Its vulnerability is inttnsified by the fact that it is 11 supplie:r of Mricans on the other hand, despite aU the frothy talk to che
crude and semi·finished products to the factories of the west on contmry, hove been negligible.
a huger scale than the rest of Africa, and an earner of greater This is explained by the absence of indUStry and manu.factu.re
profits for their financial baden. b:rsed upon the we of domestic natural resources, and of the
Nigeria tellJ in a few basic figures a tale of a different kind of trade that is their concomitant. For mining production i1
economic maladjustment. In 1960 agricuhurt-, foreltry :md destined principally for exponation in iu primuy form. Cenai.n
12 • 15
HIO·COL.O~ I.U.JIW

cxceptiom to this g<n.er:ilisation are lO be found in South

Africa, Zambia ond the Congo. Som< mWl coovenion hu b<n•
talunc p - abo in COWltri.. like Moroc<O, Algerio, M""'""
blq~~e. South Atria'• copper is cxponcd in the fonn of mcul 2. Obstacles to economic progress
and I mtaJJ part of its iron is lUll O'rtnCU U . . . . itt cold iJ
tdiDecL But for that exceptions, """' oport<d min<nls are
thlppod from Africa in their primal! >Ute. 'n>cy CO to feccl the
lndwtriet and plmu of Europ<, A.mcrica and lor<n- 'l'bc ore
tl>a is to be procho<:<d in Swwland by tbc S.....,lond 1.""' Ore
O..elopmmt Compony (own..! jointly by Anglo-ilm<ric:an
Corponmoo and the powerful Bria.b noel croup, Cucu Keen
& Nettlefolds) wiU co at the rate of 1,200,000 toDilMilOIIy for
ttn yr.ars from 196+ to a Japanete steel combine.
When the c:ounuies of their origin arc obliged to buy bac:k Srr.AKJNG of \Vut Afrlc11 in 1962, lhe United Nations £oo.
tht>:ir mincrab and other raw produeu in the form of finil.hW nomic Cornmi~inn (ur Africa J.Kiinted uut:
goodt, they do to at gffls.sly inftated price•. A Gt:nenl Elocuic
advmiscmcnt carried in the March/Aprill9621uuo of Modmr 'Few other n.•,qion• of the \\Orld Jhow such n multitude of
(;ocJmJmtftt lnforms us that 'from the heart of Altica to the fairly un.all States both as fAr as production and population
hearths or the world's steel mills comes ore for 1t.runger at~l, go. The only similar rqtion of some imporwu::e is Central
better atccl-steel for buildings, maclll.nery, and nlorc llctl _1-\merict.'
nils'. With thit &teel from .1\..Crica. ~nmal Electric 'upplkt
trutpOrtation for bringing out anoc.ht'r VJluablc mindll for ita West Afria is in fiiCt dtvldtd into nineteen separate inde--
0\\n use and th:n of omt-.r grat imperialist cxploitltf'a. Tn huh peod.etlt States lAd includes two colonW enclaves possessed by
YO<bi'!;" the ..me ..1...-tisement d<ocribeo ..,... 'deep in tbc Spain and Portuptl. Tbc popabuon of tbc....., iJ about • third
,,.col junsl• of C.ntnl Afriea n.. ooe of tbc '"''ld'•
depcmu of m&.~ ore'. But is it for Africa'• ottd.tl rotot a.
richett of the tow popuiauon of Africa, y<t the """"RI' populuion of
the i.ndcpendeot countries, it Ni«:eri• i• excluded. is about 2-3
all The f.ite, ~ll.id. U. 'being dcYdopcd by the F'rcoch (l()aetm, million. It is, ~-n·u. lltwory to ft1VC1 enn ~ageria as ao
Coml*l"ie Mirum de l'Ogoo..., is locotcd on tbc upper ..ad> acep<ioo to the balboi11tion policy praaised by the deputin&
of th< Ognoue !(;..,.. in tbc Gabon &public. Al\er tbc oro 11 colonial rult'ni. The cueu.tih.rttorl imputed on Yl,gw;ria at inde-
minrd it" ill flnl b: carried 50 miles by cabtcway. n.t:r\ it .,.•ill pendeoce di\ickd the coumry into th.ree rq:ions (\\'hicb have
be tra...Cerrcd to or<: cara and hluled 300 mileo by cliesel- since grown to faur) looK"Iy jolncd on a Federal basis but "'-ith
dectric Jocomoth·u to the: port of Point Nolre for ahipcnmt to 5Ufficient JIO"'Cfl ldt to tl'IC reg.ions to aipple overall cc:::ooomic
the wor1d's11«l mills'. For 'the world' rc:ad the United States planning. If the otbcr Sutet of 'Vest Mric.a are c:xampl~ of
fint and France xcond. political balkam~tioollt N•cena is an example of economic
Thnt exploitation of this na-ture can tak.e place: h due to tho balkanisation. Ghana, v.ilh IL popul11tion of 0\'Ct ICVel\ million,
bllllc.aniSO'ltion o( the African continent. Oalkanludon Is the only escaped a similar fate by the resittance put up by the
major in1trument of neo·oolonialism and will be found wh<·r- Convention People'• Pe~rty government to a British plan which
ner neo-coloni~lism ia practised. would have crtQled no less than five regions, some with a
14 15
NJO•COLOMtALfiM OBITACLII TO ICOHOMIC PIOOU:U
population o( le11 than one million. yet mch po:sx-Jlling <.uffi- Frtt~.ch Covernrncnt removed CTU)'lhinc of value from the
cient po~ to defeat c:entr.al planning. territory. Ad:minittrators ud tcacben were withdrwwn.
Kenya, v.hic::h wu t.bo ((W'C!ed. to ac:lCC1't •• i~ • Doc:uments aAd ....., clcetrie liclu bulb& '"""' .....,.ed from
lima'lar type ol con.uirution, bu only reor:ntly been able to ~t ~~ Financioloailt~n«, trade JUppo<1 and
csubti.ob a unifi<d ,..;..... tlle ~t ol ptAiiocu to Cuincan wu nter:ans WU'C'
Wb<n Fnr.« ..,., &o.d 'Orith the pouibilily al beinc fomd diJcootieued.
to ocapt some ronn ol indcp<odence, « at lca!t adf.. Deapite the p_,.,.. placed oo Guinea in tiUs '"'Y· the
80vernmc.'!'~ for the territories of tht. old colonial (cdtraUoru remaining French Scates ~-ue forctd by inttmal preuu:re to
o( Frmch Wc~l and F.quatorial Africa. a seriu ofballqruAtion ltd; political ind<pendenee. Tbia deauoyed the tone<ption
measun:s ,..,.. odopt<d by the French GoTCrnment. The usually associated with General de C.ulle, 1he a~tor of
Loi·C#tlrt of 1956 <stahlidu:d the fronti<rs of the prucnt the French Community, o( 1 non•&O\'effisn group of African
Frcoch·"!"'•king SmteL 'l'b< dismantling prooes.s J>ecun by tho St•tes each sepa.ntdy linked to france. One after another
IAi·Codre was completed by the referendum ol 1958 on the the 'autonomous Republio• obtained intcmationilsovcreignty
Comtilution of the French Filth Republic:. Ench or tl1e terri· but lmder 5uch adverae wndi1ions thai 1.hcy had in (let to
tories ertabliahed by the Loi-Cadre was cnlled upon to decide JllOlintajn ;~II the military, fu1a.ncilll, eonunc::rcial and economic
aepanatc:ly whether it wished to remain an ayeraeu territory of Jinks of the prtvious ooloniol 1xriod . Tn ordet- to exist
l'raoce, an automonous Republic \\ithin the French Cornmunity at nll as independent StALes, these former Punch te~·ritorit:.~~
or to be i.nclcpcndent. were forced to accept Frt.nch 'nid' C\'t-1'1 to meet their rocun<ent
Tcrcea Hayter. a research llstis:tl.D.t of the Briti.s.h Over~c:~&• txpensc:s.
Oenlopment 1nsdtute. in the April 1965 issue of the journal French •a.id.' to devtlopitl.g countric:t iJ. ln proportion to the
o( the BritiJh Roy11l Institute of International Afl'llitt h:u french national income, the Nahcst ln the world and is. in
d...Obecl the proem: absolute ternu, the te<lOnd hiah<tt. Nearly •II of thio 'aid' it
absorbed by commitment• in A/riel, and nt-arly haJI o( jc goes
•rhe tmitorica weK to make aeparate dec:iStOrtt-; it -.11.1 to the fourteen Statet wbic:b •ere prcviou1ly autonomous
therefore they and not the Fed<rations of West and Equo·
tDria1 Mnca •hieb ..-.rel<plly to inherit Fnnee'a powm; repubtics and ".._, aJD'.bincd popul....., u only aJicbtly
no prorition wu msde fo< Rrmgth<nill@ the Fedenl institu·
brJ:u tlwl lbat ol Nigeria. Aid of thi• t)-pe con dictate African
uona and in fact they _.. dilmUlded :aM the reftreodum rebtioru with the developed -ld and, .. operiool<e ....
shown, can ~ exbt:mdy dangotrout to the rteipimta.
1nd tall>< formally 10 an md in April 19;9. The original
Fm>eb African aid origins~~)• uoot !rom 1he odv>ntog• which
pWJlOt< of the Fed<rationalwl been 10 tNblt the colorUts to
pay fO< tbemaelvts, through a r<21location of their .,...,.....,, Frmeb finru aod individuols dtrived from the Mrian franc
..,.,. and thit lw dcurmin«< ""' rramewort. in which the aid
.•. S.!"Jhor in panicub.r lw bittel'ly aocwed Fronee of •• still pm...ided. So kmg ,.., the n!lationlhip which the tid
;,bllluaniun.:" Africa in the Loi-Codn. . .. With the choi<e
prorided was profitable 10 Fnmcc 1\ naturally continued. It was
10 loaded, only Guinea '\'Otr.d againlt tbe Conltitution: all tn effect 1 levy on French t.npayen (or tho brndh of French
the others became autononwo'n repuhlic:s, mc.mbt'l's of the
mdividuab and finm.
Franco-African Comm~,~nity. •
The overall value of the poticy to Franoe was that in retw'f\
Feorin& tha< the e..ample or GuineomiJlht be followed by (or guaranteed markets and pr-ices (or colonial prim."'ry products,
other ata.tca which had decidod to join the Communjty, the such as coffee, <X>COII, groondnuu, bananu and cotton. the
16 11
NltO•COLONIAI.UM ODITACLJ:!I TO ECONOMIC PJlOCRBSI

African States had to import from Fnnce fi.«:<l quantities of PJ"CSident Scnghor bu already called attention to the :~erious
certain goodt, such as ~•in~ry, ~ext.iles, sugtr .nnd flour, economic position into whicb this puts his country.
which were then uncompchtave m pnoe or surplus 1.0 Europtl In fact, the limited neo-colonialimt of the French period is
and in ~ddition the Stnt.es wc:re forced to limit their imports D0\'1' being merged in the co1Loctive noo-cokmialism of the
from t:ouutries outside the franc wne. While this scheme made Europegn Common M:irket which enables other States., hitheno
nonst-nse of any plan for inter-~can tra~e it was for 11 P;Criod ouulde the Freoc.h preserve, to profit by the system. It also
highly proJit;lble 1o France. With the falJ 10th~ w~~ld pn ce ?I r:~ti0112lise£ the di"hion of Africa into economic zones lr.lsed
primary oonnnodities these profiu began to dimmnh, lU did upon Europe, by d.rawing in four other States. The Congo
.:nthw.ias:m for 'aid' in France. At the prcs.ent moment the (Leopoldville), Burundi and Rw:ID<b. are, .. previow Delgi•n
rnort which can be said in fa..,'Cur of French aid is that it. does colonies, tied to the Belgian economic 'fstcm :and Somalia
.not now as it did in the past, make an actU21 profit for France through its previous :usociation with Italy is also brought in as
from th~ Jess deo.·elopcd States of its former Afriotn empire. an associat(.>d Stute of the Common Market.
Teresa Ha)1Cr sums it up: A gl'ouping .such as tl1is raises the wider problems of African
1\eo.<:oloniali~m and emphasires its irrespon.sible narure. Of the
'Frana: does not gain in its uansactio!UI with the State-s Statts carved out of the fonnt':r French colonies one. Guinea.
nor does lt lose: aid, private inYcstment, French Government has been able. \¥ilh great suffering aod losses il is lrue, to cut
expenditures and imports from them are balanced by exports free from the type o( neo-colonialist control imposed on tJu:
to them, repatriation of capital and remittances of proliu and others. Mali has ba:n forcod ro :.ccept some o( the n.les and
s111laries.' regulations which gove~n the re.latioru or the Conner French
This stt~te of affain~ is consider-ed to be no longer of value to coklnies to France. but at least she has ~et up het' own currency,
Fr:mce. The JcannL-ncy Report p~lished in 196+ and exp~s­ JiJnits tmnsfcrs of money abrood and receives from France only
ing the official Fren~h view, potnted out that the protect•vc a parti:al gu."l.ntntee o( the parity of her curn:ncy with the French
system of the French ~one was no longer in the interests of franc. In the case of all the other States their currencies h.:wc
Frane<: and tlte Report tbercfort advocatod the re-depl~yment been stabilised on a fixed pQrit)• with the F rench franc and have
of Fre:uch :.id. Tn any event. France had to comply ,..,.,th her a total gua~tee £rom the F rench Treasury. These St.ttes pay
obli!Pti()OS to the European Common Market. Under the- new their n.'Ceipta of French francs into opuBtion uooounts in the
Convemion ofAssociation which Cl,lme into force in the summer French Treasury. These aa::ounu can be overdrawn and the
of 1964 the six members of the European Common Market are St<ttes can draw on them agaln$t their own currencies to an
to achi;,.c in stages a free trade :~-rea and this will ·~o longer unlimited extent. ObviouslyJ bowe'\·er, wbate"-er the theoretical
make it possible for France to disc:rimina~e ~ ~~mur o£ .the position, the international fin:aneial pos:ition of these countries
African States nor for these States to dascnmmate aga~nrt is subject to control in that l'IL owy timt: tbeir opt:r.ltiou ik'\.'UWits
:France's Common M.arkct partners. Exports from these States in the French Treasury could be blocked, as was done in the
will by the end of a five-yev- period h;,eve to.bc alig:ned to v.-orkl case of Guinea. Mos-t, at any r.ate, of the St<•te.s wncc:rntd ld
prices. In consequence the pnmary p~uet:lon which they ha\·e the 1trength to stand up against such pressure Hs did Gui1H:a.
built up on the strengtll or tlte prorn•u: of guaranteed markets Why then, it may be asked, arc these powers not sufficient to
and price-s is likely to fail to be competiti~·e in '-':orld con- enab!e France to persuade tbe.se States to follow present Fren~
ditions. It is diffk.-ult LQ see how Senegal t.n port:tcular can foreign policy which is ba&cd upon a 'third force\ concept?
manage \dthout a French subsidy for her groundnuts, and France did not support the United State• and Belgium in their
18 19
NllO•tOI.O'fiA I. liM OII'UCI.U TO ICONOWIC Pl('ICRlU
1
humaniuriu• inttrvttui.on 21 Stanleyri.J.k. in th~ Congo. UnHli:e resist it. Sim.ibrly, ~ coloa.ia.l problem of Afriu iJ in OWlY
Britain and the ochtr Common l'thrket COWltria. Franct' t.J wa~ .really nto-c::olotUal. The Portucuc:.c African tcnitMies
openly oppotcd the Uruted Statn pofu:y in Souto Oomll>f!O, IIJ'P<"' at first • • only to niJe the moe or freedom rrom
hat o..,...,;J<d the Peopl<t' ~blie of CIUna ON! hat , ........ mer
c:olooial rule .,... ;, fact coWt .. coloniC> only bccawoe
meoded the neutro!Uotioa or \ ........... yct CO>l) • .ru-ity or Portugal is itadf a ,__loniol &ate. for the bit fifty yean the
the Mriaon S..... "i>ic:h nuld appoor to be undu Fra><h ~ Pft""UI ...... ~ the Po""«U<M colonits .. c:ountcn
noo-coloni.ol """'"'1 hue follawed the F.-h Unc. 'Tho: wh.ic:h thq· an arb.• b«weco thenutlvu in order to
majonty ol tbc:m rdwe lO rr:cogrWe OUna or in a.ny way rcadj1HI the balmce ol.,...-er.ln 1913 the Bntioh .00 Gemwu
aiucioc United Statcl policy. Indeed they bcloa-..: in a fuhjon mel initialled an apectnrnt for their cl.i111ion and thi.J was only
_ ..;,.., or bcillg under Cruted s..... rather than F.-h p,.._tcd loy the outlmok or the lirtt world - - ln the
inllucoc:o. 1'bc an ower to thiJ apparent panodox will, 1 beloevc, appeaaement period priur to the JeCOnd world w:ar, when it
be: found on the following cloaptcn of thio boo« in which I wu thought that Hitler could be bo"'ht olr by an offer of
attempt to explain the power and ra:rnificationa ot international colonial territory, the Portugua< oolonie1 were ogain regarded
financlal control. Here one has a super State which can at umea os the •uimblc bribe.
e\'C:n overrtdc the policy wishes of the nominal nco..colonial If Ponugal controls thcac oolonics now it is only becauae of
mi-&ter. the military strength which ahe derivr:e through her NATO
'l'bo control of the !'undo of the French neo-colonial Mrican alliance. Portugal i' bo~cr not 1 m~mbcr of NATO bee:rwe
States ia cxc:rcitcd by the administrative council of their eenual of any military assistance which &he cou1d rt:~lder the alliance
banb, which uooomposed partly of Frenchmen without wbooe but because this is a convenient way by which Port~•~
1gree:l1ltnt no decision in monttary policy atn be laken. Thi1 tenitory can be made available to the force• of oth~ members
Frmch banking complex, with iu abtolute control of the or lbc allianoe.
currendH ON! atcrntl payments of the Fouch noo-colonial At the cxher end ~f the ICIIo ;, the Frtnclo colony of Scnulia.
StatCJ, c:o.W, ;, th<'lr)', &tate that thCJe States follow a h conttnues to txJJt u a co&ony not bc:c:awe l'nnc:c -.ould
French polq. H""""'...-, the oompkx iJ iudf aubjcct, m the resist pl'"t:hlU'c to gnnt it i.Ddept-~ but beaux of Mriea.o
moM<r later ~"bed. to aten>tl p~lWn which ooppon !•
oliJUOity. io .• poin_t of.~te bctwccn Somoloa ON! ElhiopU.
Unotcd Stalti ratio« tt.> Fr<nclo pol;.,;., wbcto a doff~ of Afi"'Can d11WUty tmmta.UlJ thiJ colony. If 11 Wtte colO ro either
opirUon antet.. of iu nci«loboun it ..'OU!d ...._ mmubly pro.-. • conffict
Pan of the ..tuc of _,.;_og • study of noo--«<Ooniaaii b«wc:a• them.
;, iu Mric:u COiltcxt iJ that it pnMdcs c:xampb of......, type Rbodeaia, while theorctoooUy a colooy, II ....Uy o fouib.J<d
of the aptc:tA. J t i• impouibk: to ddinc: the Afric:u aitv.auon m ronn of the cadi<>~ type of neo<olonWiJm which ..... pnctal<d
lermJ of andcpcndcnt States, cfu-idcd into the non..Wpcd in ~ Mrica until the fom•tioo of the L nion of Sowh
and the nco-colon.ialiat camp, colonies and racialist State• tuch ~~ The tQCQ« of the Rhodelia 1y«em ,it not to empJoy
u South Mrica. rn Mrioa., all former colonies which bl'·c now andjvufuals drawn from the people- of the cc:rnt.Ot)' itstlf to run
boc:omo independent, induding particularly South Mrica, arc the country, as in the newer type of nocJooeolonial Stat~. but to
aubject In tome degree to neo-oolonialitt pre11uau which how~ utilise instead an alien minority. The majority of tht European
ever much the)' wiah to re,ist they cannot entirely eacape, ruling class or Rhodesia _only came 10 lhe Col~y af~cr th~
struggle u they may. The difference in rea,Uty is between those second world war, but tt l l they and not the Afnoo.n inhabi-
a..... that acc:opt neo-colonialiJm •• a policy and those which tanh, who outnumber them 16 tO I, that llritain regards as
20 21
frii.O-COt.OSIAUfW 081TACLU TO aCO"OMtC ,AOOI&II
"the Gonrnal)(nt". Thta raculiJt State ic proitetcd frum nut- bdkani.·Gttion. If dw: hue= can he sinuud in a country which is
aide pressutt bcc:awc WKier rntermtiooal bw it it a ~ritisb 10 constituted ~caJiy that it cuooc. .mtvi\~ "ithout ' -u b-
colony, wtillt Britain haxlf excuses h~r failure to C').ffO.JC bu nantaaJ -ut' from the military power which O'AftJ the b&Je,
kpl rights to prc\'Cnt the oppression :md opSoitMkm o~ the then. 50 it is argued, the KCU.r'it)• of the bate C#ft be: Utunxl.
African inhabitants (o£ which of course abe offidaJiy cfu•P"" Like 10 nunyof the other auwnpuonson which neo--.oolomalism
proves) because o£ a IUppoit.-'Ci British p:trliamc:ntary con- it bated this one i1 (abc. The p resence of foreign batcl urou10s
vent-ion. In ocher worda, by m:Untaining Rl!Odcfia nominaUy as popular h0$tilil)' to the nco-.colonial arrnngtmcnu which permit
a colony, Briwn in fact g;h-u her officl:&l prot«ttotl as 1 JCCOnd them more quickly and more sunly t.h:tn does o.nythine else,
South Africa and the lluropeon rocialiou an: lc:ft free to treat lind lhroughou1 Africa the10 hues ue disop~rina. Ubya may
the: Mrican inhabiu.nu u thty •ill. be quo<od u an example of how thU policy bat foiled.
'!'be Rhod<>Un l)'rlom thw has all the ballmarb of the n.o- Libya bas ba4 • ~ mlonial bisw<y. From the Wl«nth
colonisl model. TM psuoa ~· Dri..U., ......U to • I?'"' cmcwy oowuds it -~• a Twkiab (l)lo:ny, but tn 1900-, 10 the
con:mmect ovtr which it dai.rns to have no contrOl unlimited be)-cby of colonialhm, Fr.ma: abC! lt•ly 2gmd lhot if Italy
rights aod. o;ploitation ~ithin the tenit~ry. Yet Bntain s_till would not oppose Fn.noe occupying Morocco. Fnnce would
retains powers to exclude other countncs from inttrvenmg not uppose IWy occupying Liby1. So when in 191 1 and 1912
either to liberntc it1 Africatn population or to bring iu economy Fnuu..'e \\aSoccupying Muroc.:u1, Italy went to war \loitb Turlt.q•
Tho ftW\OtUVtlng OVCf
into 1011\t Olbt't 1'.l'IOC 0£ infl.ut:nCC, and, dcrcating ht•r, mmt'Xt'll I,ibya.
Rhodestt's 'ind~~nce' is an excdlent example of the Despite promisrt durinu the jjtt()Od norltl "•' to Lht.:
workiags of n...~lnnia.li.am and or the practical diffiCUlt~s to pe<?ple of Ubya thar rhc-y would never ·~in he- •uhj<clod to
,.hich the 'l''".," Rivet rue. A European minority of ku tlwl I~ rule, Fn.nc:e lricd 11 the peace >etdcmcnl 10 hal"< Italy
a quarter oi 2 million could oot maintain, in the G)llditions of rtmstalkd tn older t:o •upport ber own po9tton tn 1\Lni.Jia..
Africa tochr rule o - four milhon AfrianJ wilhou1 ..,.tcmal Thu 10lurion J"'YU11 rmposubk, Libyo bcamc: nonun.Uy
au.pport fro~ somewhm:. W~n the seuL:n talk of 'inde-. andcpendenr but actually under Briti>h n<o>-colonaal conuol.
pendcnoe' the)· tro not th.1nking of sund.ing M thtir own feet According to the fiCUrtl coUatcd b) 1M Bntnh O.eneas
hut merely of ~«kina: t new neo-coloni~!l ma'lter who wou.ld, Oe.-clopmenl InsriiUI<. during lhe period 1915 10 1963 Libyo
in their vit:w, be more rell1.ble than Bntum. received no leu than 17 pt'r cent or the total bilnteml 1id which
AJ will be Jetn from lho chapter'S which follow, modem Britain gave to nil roreign oountrie.t outride the Commonwealth
~-coloniali~m is based upon tlle control or nominally i..ode-- in that period. The Overat'21 Develop.ment lnt:titwe notet th2t
pcndcnt States by giant rUlal'.lC:i.l ~teruu. !h~tc inwuu oftm ~though these papntnt1 to Libra are oou.nted •• '-ud" ~.here
.,. through or on bdu!( of a porticuhr capnall• Slate, bu11hey i1 no doubt th.a.t they are in ~•.renee s:tr2ightfon.-ard papnmu
ar< quite eapal>le of ll<li"' on their own abC! f....,U, tbcJe to the Lt"brao Govemmmt io rtt\ll'lll for the u~ ol butt'.
imperial cournrie< m ,.hich they have a donw»nt inl<ra< "' .Kf'Va'tbdus, popular ptururt in Libya hu now made it
follow their lad. "J"htte is, howco;cr, an older type of nto- n«:a-Jary for the Libyan Covcmmcot to tenninate the military
cokmialism \tihich i<e btxd primarily on military con.W~r.tiotu. •cn:cmcnt for Oritish ~tel.
A world powtr, h~ving decided on prindples of global Thete limitations on the real indepeodeoce o( m.lfly countries
st:r.rtcgy that it iJ neceR~ry to have a military base in thb or that in Mtiea Would not be allowed to obscure the Vtl')' gr<:a\
nomin~Uy independent country, must e:murc that the C\mntry uchicvcmenu already gained in the stn.lgglc for Afriom inde:
when: the base is situated it friendly. Here i1 another rc.uon for pUidcncc :s.nd unity.
22
NliO · COLONIALIS.I Otll'fA(;LIIS TO IICONOl.tiC PROOllll!iS

ln 19-45 Africa largely comprited the colonial territories of h is ooly when the artificial boundaries tlrnt divide her are
European powcn, and the idect th:u the greater part of the broken down so as: to provide for \·iable ~nomic w1ila, and
continent would be independent within twenty years .woukl ultimately a sinsle Mrican u.o.i.t, th~~ot. Mric..-a will be able to
have seemed impossible to any political obs~ m the develop industrially, for her own sakt-:, and ultimately for- th~
immediate pos.t -war period. Yec, not e>nly bas mdependence sake of a healthy world economy. A common currency is
been achie,•td but considerable progres$ hlls been made towar~s n«ded and communications of all kinds must be developed to
the establishment of African unily. To thill unity there arc sbll allow the free flow of good:s and services.
powerful obstacles but they arc: no greater th.an the obstacles The Economic CAmmis!'.ion for Africa has repeatedly cmpha·
already o'•ercome :and, if their nature is undemood, they arc sised the need for economic phc.nning em a continental scale.
clearly surtnOWltabk. The inadequacy of national planning can be demonstrated by
Already, and this will uhinllitely be the decisive fuetor, the a glance at the ecooomies of, for example, :Mali, the Upper
mau of the African people support unity in the same way as VoltA, Niger and Uganda. Th~.se land-locked States, which
they preo.•iou.sly supp·ortcd the various loeal movements for export large quantities of food products to other African States..,
politico! independe11cc. Many of the political lenders of French cann ot rcmllin indifferent to the agricuhuml self-sufficiency
\\'en Africa, forenrnple, did not at first support independence.-. schemes adopted by their neighbours. Similarly. a ru~tiona.l
Jn 1946 ln the French National Assembly, of which he vr...s gO'\·emment planning the establishment of a ne\Y industry
then_. 1;1embc:r, M. Hou-phoutt-Boigny, the Pretident of the may find th:lt a neighbouring State is developing one
J,·ory Coa~t. claimed 'there are no separ.rtista ?n.these beocht:!> like it. Such duplic:ation would probably retult in wasted
. .. then: is a powerful bond, capable of rc~wg aJl test~, a resources if each W:JII depending o n exporting its surplus to its
mo~l bond which unltes us. It is the ideal of liberty, frat.erruty, neighbour.
equality, fo'r whose triumph France has n~er hesita~ to Few would argue apin.st the neOO for economic planning on
sacrihoe its most noble blood'. The same polK:)• of t1te nwntc- a national scale. How much stronger ia the argument for
na.nce of unity with France w:u also supportt'd at thnt tjm c by contint:ntal planning. The modem trend is towards larger
President Senghor of Senegal, who said, •Tn.e French uo.ion eQlnomic ~uld politic-.a.l unirs as i.nterdependence of nations and
mu.st be a conjunction of civilisations, a mdting·-pot of culture peoples gmws. No country can be oomplttdy !ldf-suffieient or
. , , it is a marriage rather tlun an asscx:lation.' afford tQ ignore political events outs:ide its borders. Africa is
It was m-:tsa pret.sure for independence which forced these clearly fragmented into too many small, uooc::ooomic and non-
leaders to reverse their prt:\'iOull. positions and to de<:lare them- viable States, many o( whom are ha\oing a very hard struggle to
~lves in f~wout o( n:ationaiJKWereigoty. sun•ive. As already noted, others have bad to cling to old ties
In the same v..-ay as mass pressure made it impouible for :an with former colonial rulers and have become ea$)' prey to
African leader to oppose independence, so toc:h&y ma~s pre~re neo--colonialist forces. Senne of them have found themselves,
mak~s it impossible for him openly to oppo~ Afrtea.~ .uruty. whethe-r they liked it or not, drawn into the cold war Md into
Those wOO are against it can only show then opJl:OSmon m the rivalries between foreign powers. The Congo is a notable
indittct wayt: hy suggesting that the pace towards tt 1s too fast; example.
that t],j, or t.hat plan is impracttcable or that there are p~o­ N:aturally, each natio02l govcmmetlt is oonoerned primarily
c::tdnral difficulties which prevent them assisting in fonnulatmg with the welfare of its own citiuns. It could only be expected
a pntetical plan for it. The case for AfriCtLn ~ty is very stroog to agree to a policy of unificatk>n if the immediate- and long:
~tnd the instinct of the mass of the people nght. tenn benefiu became so apparenl that it would be positively
24 25
NIO• COLONIALI8M OBITACLI8 TO ICONOMJC rROQUU
damaging to its cit:izen.s not to co·operate. We t.re C20ed here must be ended lf we are to achieve rounded economic growth,
with the problem of uneven economic growth. Some African and this cnn only be done throl.\gh unified action.
countries are richer in natural resources th:m others. The less Something in the Jl3ture of an CC(lnom.ic revolution is
fortunate will need f'C'auurins:t that thcir intcrc:sta will not suffer required. Our development bas been hekl back for too long by
at the hands of the more devdoped States. tl1c colonial type ec:onomy. We need to reorganise entirely so
Past economic union experience has not been encollrag_ing. 1Jla1 each country can specialise in producing the goods and
The linking of the R hodesias and NyasaJaOO ben~:fit.cd chiefly crops for which lc is best suited.
Southern Rhodesia. Kenr.1. b:.ls gained principally from the With economic Wlity, lbose countries in Africn which are
East Mrican Common Market, Ug:u~da. and Tanganyika being beginning to establish modem indu.stries would benefic
at best only marginal pinerll-. In Lhe former Freoc.h colonial from wider tnarkel8. We would all be in a ben~ bargaining
federations the bcndits of ooonomic unity tended to centre in position to obtain higher prit."C5 for our goods and to establish
Brazzaville, Abldjan and n akar. T hese e.umpJes further adequate taxation of fo reign factor earning$. Io fact, a whole
strengthen the argument for continentally-planned economic new pattern of economic development \Toold be m:tde pos..,ible.
growtll so that all States can benefit from industrialisation and Agriculture oould be modernised more quickly wit.h mom
odltr imprm·ement.s made possible by unified direction. The capita] at its d.isp<»a), Jndwtrie.s on a larger and more t:ennomic
richer countries will be able to hdp the poorer. Resources c:::an scale could be planned. 1'hc-sc could afford to make use of new
be pooled and dcycJopmcnt projecu co·ordiooted to mise the techniques invotving heavy capital outlay. Smaller plants
living: standards of every AfrictU'I. planned to meet only national needs arc likely to have higher
The time factor is important. As ECA Jus pointed out, nOfD corc~t and.11te eventually less able to rtduce ooJts than optimum·
is the time to act. before each Stace gets too deeply involved jn sited units.
major investment and structural decisions bated on n:ar~, ~t.tional planning bodie!l would still have a very important
national rn:trkets. With each month that pas$e$, the foreagn part to play in a unified Africa. Tbty would, for e:umple,
interests of neo.oolonialism get a cighcer grip c.>n Africa's supply essen1ial inConnation about loc;tl conditions, but their
economic Life. work \\·ould be made ~sier wilh the experienced advice nnd
The com}Y.U'atively reeem penetration of American big help of :a !in.gle planning body keeping an eye on Africa's
business Uuo Africa points once abttlin to tlte danger from inte.resu asH v..hole: The rc~rch aod training in development
neo~colonialism. So aho does the combining of large 6rms to p roJectS already bemg ~tr1ed out by the ECA JA-velopment
Conn powerful monopolies. How can some of our smaller States Jnstitu«e Ln Dakar V;'Ould be !itre.ngthenod 1.0 serve both tl~~:::
hope to barg.in aucoess.fully with powerful foreign combines continental and national bodies. Expensjve (ailurell due lo lack
some or \\l1ich control fmancial empires worth more thlln the of oo--orcUnation would be a\·oidcd. A cll.o;c in point is 1hc Inga
Srnte'5 toul revenue? 'fhe smaUcr the State, and the more dam project which it to provide power for a 1ug.ar refinery. a
formidable the fon~ign inceresu. the less likely arc the oondi· plastics and hardboard (from $ugar cane waste) oomplex in
tions for economic mdcpendenee (0 be met. For example, B:angui, which in turn \\ilJ ship bulk plastics to • plastic
Ghana, because of its c:conorn.ic size and a1terrunive i.ndumies, products industry in Bra.r:zavi11c. Obviously there should be a
has b<:en in a a.tronger position for bargaining with the alu· pl:ann.ing body 2ble to phase 11nd h:mnoniae construction timing
minium companies than much pnaller, and economically more for the BrazzaviUe and Bangui pL'llltJ, the power lines frorq
limited Tog<> con hope to be in dealing Y.ith French phosphate Ing:a to Bangui and Brazzaville, and the trtm.$pOrtation $ervlce3
interests. 'fhe domination of Mrie:1' s economy by foreign fimu between Bangui and Brazzaville :md the dam itself.
26 27
NIO•COLOHIALIIW OUTACI.II TO ICOHOJtCIC raOOIUU
la the proceu of obtaining economic unity t.herc i• bound M aluminium and copper productt, however, need noc take p lace
~ much Mtd buJ:;aining hetwtcn the ,..nous Statu f nlt1frt· in the countries producing the mtcab. Simituly. the produaiort
tion of diHCRnt a.ap«:ta ol ecooomic polic:r •ill proceed at of cotton is limited to certain climatic rePons. while CXJttoc
dilJ<t<Dt rst.., and th= may be di"'Ppolnbnt! delayt and teDile industriea am b< developed fwthtr alield.
comprortUet to bt -..orted out. But given tbt will to .uccccd. Evuy A.lrican Sate bas sc:mc contribution 1o m:Ue to the
dlfficultleo .... be mom.L ecooomie whole. 'I"bue are, for inlcancr, DO tnown deposita of
In pff'll, the bi"'Od« tbe [root on which ocooorntc uruty u powh in West Atria, bW requirtmeoueao be mt1 fn>m :olonh
I&Wldled the qWder t!oe pis md pol;ci., of a fully ~eloped Africa, Ethiopia and pooaibly also from tho Coogo (B,....ville)
Africa can br ac:IU"'td. All all-African pbnoinc body coWd and Gal>on. Phns for nitrog<otoUs fc:n.iliaer pmduction in
w.. imm<tliatc litqll towards the development or L.orae·tcale Zambi.t have already been "'orlted out. The phm coWd be
industry •nd power; for the RIJl0\'11 of barrim to intcr-Mrican supplied with ooal £rom Rhodeaia (Ztmbobwt) and low-<on
track; a.nd for W creation af a central bank and the formation po-"'el' !rom the Victoria F~.UJ. Kcn)'ll1 with it• large forest
or a unilitd policy on aU as.pccts of export control, tariff and reserves, could bcoome tbe ~tre of a wood diatill:ttiun cumplc:x
(1uota ru·rangemen~•· 1.'hc: EC..'\.tw carried ~ut lt\'cnl ·~rveyt able to ! upply tl1e oountriu of Wt and Ctntrnl Africa with
de~igncd to provtde anformatton to help m tho maltinj:t or gall, aoetone, mel,hano1 and t~r. 'l'hcre Q.f't many other t:nmple5
decistona on thc11c PQints. too numerous to describe.
Amone immedio.te noeds arc the manuhcture in Alrk~ of The urgent n«d to plan industrial deve1opment on a
agricuhuroJ machinery or oll kinds to ~ up the modcrmJa- continental scale must not, h.o\o.evtr, blind m to the equally
tion of acricubure. ·we neOO supplies of electrical equi~tor:nt import.:a.nt need to do tho same for •ariculcurc, fishing and
for use t.n the rrowlng electric power produaion cs~nual for forestry. In Tlu! Ro/..f lnda~try U. O.Wkij>IJUIII:,._ PallacUr.
uwiu.scrial ~1.h. Mining and indwtrial machinc:ry mus.t be Dudley Seers ltaJ pointtd out the intu-<lepeodeoee of ogri-
produced in Africa to tower tM costs of devdoping our minenl tu!tuse o.nd industry:
re..urcet. ConltNCtion nuchioery 2nd supplia, chnnic:al~
'Materials are needed for powina indwtrits; mote impor-
fmlliten, planics, are all wpdy <equirtd, and Africa must
tant, tbe swdling 1010 n labour fo""' n«d• to be ftd, and this
proclu.ce them {or htt OWil reqoirernenu.. implies th.ota risin1 aurplusof food bos to be pmductd ill tbe
Repons cl the ECA Industrial Co-ordUmiot\ -'_!J....,os to
dUf=ot ..pns in Africa - th.ot the pn>dumon of uon
eoiii!U)'aide. ••• To ovu-cmpbasiae ind111ur, as """"'
countries bue found to their eotl. !<ad• paradaxially ill tbe
and''""~ non.fcnous nxub, engineering "'''J'bet, dtemieals c:nd to a slower rate of indu.strialuauon.•
and fmili,.,.s, orment, poptr and textile. tbould be <Uveloped
on an lnter-AfrOn buis »nee their c:fficic:ncy ckpc:odJ on l&rp- African Sm.. are imponlns brett amounts of food thaD ..,..
Joeal~ prOOunion. Other industries \11-hic:b can ru.n c:fficieotly on hefon: from abroad. This \Mid must b< IWpp<od by a c:ardully
a nnalkr scale can be plannod nationally. planned exparuton of our ovm -ariw1ture.
The location of the variout industries will, of count, dqx:nd As an industry, there can be 'Jle.'!ciJI;Ijaadon su that each region
on many factors such as the availability of power, mincn•l or State concentrates on producu1gthe ~tgricuhun.l pnxluc:ts for
dcpostt11 nearness .to. proceuing pl:mu, markets a~d 10 on. which it is best suited. For in1t:ancr, it it WltteJul for each West
.Production or alumanaum :md copper, for exsmple., "ill have 10 .,\frican State to try to be se.lf·suffic~nt ln rice when Senegal'~
be developed in t,hoae countries. where the essential rcs~urus, Ca~amancc district would be well 1ble to supply 1.hc need.
ore and cheap power, arc :available. The ma.nufactunna: of Equally, Mali and the Upper Volta are obvi01u cxportm of
28 29
~80•COLONIALISM O BSTACLI!S TO ECONOMIC f'llOORE6&

fre1h, tinoed and processed mc:llt1 while cOILSL'll St.-.tcs would peace and the welfare of tho leu-dC\'Clopcd countries. Agajn,t
supply fresh, tinned nrtd smoked fish. such :a fonnid:able pMlll.M of forcu, how can we move? Cer·
A further a_.;gumcm for a unified agricultural policy is implied tainly not singly1 but in a combination that will give strength to
in the netd to :~tep up efforts to combat many of the obstacles tu our bargo.in.ing power !Uld eliminate so man)' of the duplications
economjc growth. Locusts, the t"SC>tsc: fly and plant diseases *re that give greater force mel greater adw.ntnge to the imperialists
no respecters of politic:al frontiers. Rt:searcb into their control and their strategy of neo-colonialism.
would benefit from a pooling of brain power and technic:•l Decolonisation is a word much and unctuously used by
know·how. So also would medicine and soci::tl services. llow imperialiS-t spokesmen to describe the transfer of political con·
much grc:tter the chance of wiping out major qlidemic disea5cs lrol from colonialist to Mrican sovereignty. The motive spring
like river blindness and deeping sickness if ac1ion against them of colonialism, however, still controls the sovereignty. The
is co--Qrdinated and unified. yotmg countries are stiU tbe providers of raw materials, the old
The adwnr.age of unifiL"<i militaty and djplomatic policies, of manufactured goods. The change in the economic relation·
both for our own srxurity ::.nd 10 achieve freedom for every pnrt shjp betwttn the new sovereign :rtatt~ and the erstwhile nwters
of Africa, are $0 obvious as to need no ootn.nlC:2lt. is only one of fonn. Colonialism has :tehicvcd a n(.'W gui5e. It
Tram-port and conununic:ltinnll are also sectors where unifiod has become nc:o~lnniali11rn, 1he lal!it Sliige of impe.ri<tlism; its
planning is needed. Road!, railway.s, waterways, air-lines must final bid for e:x.i.st:enoe, as mnnf)poly-capitalism or imperiali.$m
be made to serve Africa's need$, not the requirements of foreign is the last stage of capitalism. And neo-colonialism is l-ast
interest5. Communications betwocn African States are quite entrtolchiog ;"elf wiohln lhe body of Africa today lh~ the
inadeqw.te. In many C'a$Cs it is still easier to travel from 20 consortia and monopoly combinations that are the carpet·
airport in Afrita to Europe or America. than to go from one baggers of the African revolt against colonialism and the urge
African St!ttc to ~notht'r. for continental unity.
Economic unity to be effective must be accompanied by These interests :.re centred on the m.ining compcniea of
political unity. The two are inscpar:tble, e:I.Cb necessary fe>r tllc South and Cemr:~l Mrica. From mining they ramify into an
future gmtness of our contin~nt, and the fuJI ~elopn_tt-'llt of involved pattern of jnveatment companies, sn.1nufacturin,g con·
our resouroe~. There are several examples of maJor wuons or ccms, transport, public utility organisations, oil and chemical
States in the world today. In Africa Jlrlust u,_it.e l d~ribed indutrries, nuclear installations :and many other undertnltings
some of the more imponant ones, aJ)(l wamed againat the too nwncrous to mention. Their enterprises spi11 across the vart
danger ol regional federatiorus in Africa. Afric.1.n contii'Lellt and over the oceans into North America,
Africa today is the main slarnpirlg ground of the n<:o• Aus.tralia, New Zealand, AS~. the Caribbc.'2n, South America,
colonialist forces lhat seek tbe OOminaLion of the W'Orld for the d1e United Kingdom, Sc;lndinavia and most of western Europe.
imptt"ialism they scr,te. Spreading from South Africa, the Coonectiom, direcl and indirect, are m.'lintainm with many
Congo, the Rhodesia&, A.ngoJ.a, Mozambique., they form u of the gjants of American i.ndu5tf)' and finM.ce. They are
ma)'.(:·like tonncction with the mightiest intcrnuional firutncial supported by leadlng ba.nken, financien and indwtrialistll in
monopolies in the world. These monopolies arc extending their the United Kingdom, France, Belgium. Germany, America and
banking and industrial organi$01tion' throughout che African elsewhere. The rotas of their directorates arc filled with names
continent. Theix spokesmen push their interests in the pa.rlia 4
that have a familiar ring for those who have the least knowledge,
mcnts and governments of the world nnd sit on the intenutional of inte:matiorwJ firuux:e and industry. Names like Oppenheimer,
bodies that arc supposed to exist for the promotion of world Bambro, Drayton, Rothschild, d 'Erlanger, Gillet, Lafond,
30 31
NIO· COLOltiALI&:\1 ODITACLitS TO IICONOMIC PII.OC:USS
Robiliat11 van dcr Straeten, Hoch.schild, Chester Beatty, Patino, n:.tioo.ol OOnks, fonncd and run out of the oountry's own
Engelhard. Timmins rue ubiquitous. Others, equaUy powerful resowces, and our other fina.nciaJ and economic institutions arc
in the interests they dominate, awid the publicity of lengthy guarded against neo~oolonialist infiltration.
Jim of their directorships, either by complete absence from the Unhappily, the-se conditions are rare in Mrica. Mcm: of the
p2-ges of diteccories anxious to advertise thci.r glories, or by tt-rritories pan into the state of nation;:) SO\·e.reignty in unviablc:
coyly hiding their eminence behind a lonely 2.Mounccment circumstances thnt inhibit even a modiewn of free monment
with ruune :tnd :tddres&. within natiorutl limits. They could be overcome, but only
TheEc intric:ne inter-<:Onnections of the great imperialist wilhln the combined n:rength that continental unity nOO a
monopolies txpose the real forces that are behind world evenu. ccnt:ral connective JOci.alist policy, free of attachments to other
They indicate 2lso the pattern which links lhose evenlll to the continents, ooukl give. As things are. most of our new States,
developing countries at different points of the globe. They Hbtmted at the prospect of the han.h world of pove-rty, disease,
reveal the duality of the intc:rrit:S that force the devdoping lg_oorance and Jac:.ic. of financial and technical resources into
counu:ic:s tu import !,roods and JCrvice$ which are the products which they are t1lrust frorn the- womb of oolonialism, arc
of oompm.ies combined in tlu~ monopoly groups directly reluctant to cut the cord that holds them to the imperialist
exploiLing their natur.tl resource~ or intimately associated with mother. Their hellitancy is Co.sterod by the sugared wate.r of aid,
them. This is the double edge to the guillotine that cuts off which is the stop--gap between avid hunger and the hO'J)td·for
Africa!s wealth (-rom Mrica. to the greater enrichment of the greater nourishment that never comes..~ a result, we find t.lutt
countries which absorb her primary materials and return them imperialism. having quickly adopted it.<~: outlook to the loss of
to her in the form of finished products. direct politic:al control. has retained and extended its eoonomic
In their new-found independence, it is to these ver)' same grip (:and thereby its political compulsion) by the :anfulncu of
monopolistic groups that the nev.· AfricM States :ln!l obliged to neoo()Oioni:ilis-t insinuation.
turn to supply the requirements arising from the need to lay tbe The increasing expansion of productivccap:.city and potential
foundations for their. economic trnn.sfol'fnat'un. The policy of output of the ndwnccd capitalist countries hu its corollary in
non~alignment, whenever it is exe.rciUld, imposes the oblig.ttion the nooessity to export on a geometrically increasing scale the
to 'shop around' • but since capitalism has come to the peak of finished pf'Oduct.s of industry and the excess <::olpital that could
monopoly, it is imposaible for any of us to avoid denling with only funher inflate competition at home, but brings rapid and
monopoly in some form or another. But it is in the nature of our high rL'tu.ms from lhe industrially-stan•ed new n!l.tions. Hence
arrangements with the monopolies that the &c:Wom or other- dJt fevered jostling for position in these areas as weU as in that
wise of the African Scates Lies. When: we csbsblish and maintain of n&w materials monopoly, which is udng Mriat a.s the play-
the integrity of our financial innirutions and keep our basic gro-und, nor only of th ~ cold war (an 2specc of the fight of
projects free from imperialist control, we lcaYe ounelve.s room capitalism for existence ag.tins& ~ocialism), but of the com-
to manoeuvTe a,..-ay from the neo-oolon.ial.ism that. unfortu· petitive struggle of inttmatiom•l monopoly. North American
nately, has ciOi«l its grip upon countries whose independcooc imports into Africa mse from H).3 per cent in 1959 tu 13-7 per
is over-shadowed by a hea"Y reliance upon extra·African cent in 1962, while those frotn othtr western countries IUld
auoc:iations. In this atmo~hcrt of relative freedom. the giant japan remained the same or declined slightly. This corresponds
combines that open up indu.strial enterprises on our soil do so to the increasing American investments in the cootincnt'J
on arrangements that arc well screened and are part of n'tllctive indunries and the growth or United States participa:
nationall)· planned advancement. The national banks are really tion in financial esta.blilhments on this continent. American
32 ss
NEO·COLONIALIIM Oll&TJICLU TO f!CONOJ.fiC f'JI.OGUSS

banking hou.8es are making inronds into tcrritoriea formerly buc to Lombard it i~ only one side of the pietute. For there arc
catered for solely by l:Urt>pean and British banks. The Frcoch two worlds, and the Mrican oountrit.$ 'should now :~trive to get
banks still dominate in the former French countries and the the ben of both worlds, by maintaining and C\'en (u.nhc:r
Belgians in the Congo; but thi..s is frequently a front fol" dtvdopi.ng the relations they have with tJle mojor international
Americ::s.n participation. monetary areas and at the same time build ing their own
Europe:m financial 0\dviseti construltly counsel the Mr-iCln fiuanciaJ self-help meclia.nisms•. How it it possible to resolve
countries on the :td\o':tntage• that they c:an reoeive from n;.main- 1wo contradictions Lombard does not volunteer to explain, but
i~ in assocliltion with the erstv.·b.ile 'motlu:.r country', while: what he doc:~ confess is that tllh unresolvable two-way pro--
depreciating the possibilities of inter-African ~&!lsociation. Much cedure 'wo-uld mc:ct with nothin~ but the fullest approval from
subtlety is employed by Lombard, the oonunentator of the their (Mrican) p resent monetary a.re:1 auoci:ates'.
Finontial 1'imtt. J.n an anicle which appeared in the is,ue of 'fhjs says plenty and we have no difficulty in belie\•ing what
6 February 1964 of this influent:i,l London newspaper, a it says, for the simple {act is that those who t.-ontrol the major
producl of :m iudu5triul holding company which also produces inte-rnational monetary an::u :lre /'lacing tlteir time: bombs
1'he F.eotJomist, Lombard as.serted that 'there i$ not much that within the 'scJf-bclp mechanism!' o tl1e Africm countries. For
Mricar• cowllriell can do directly to help one another financially the.se mccbatliams are controlled hy the finanei;~.l monOpolists of
at thi5 st."lgc of their economic evolution'. He is therefore "glad imperialism, the bankers and finartc:ien who haYc bt:en very
to see that the independent Mrican countries ere now coming busy in the past few years setting up cJ.tablishmen.ts throughout
to recognise that it is very much in their own interests
preserve the monetary tics with leading European countncs
:o Africa. infiltrating into the economic btart of many countries
and linking with the most important enterprises that are being
they inherited from their colonial days.• , . They obviously established to exploit the continent's natuml resources on a
entertained strong suspicion th:lt the enthuUasm their old larger scale than ever before for their own private gain.
mother OOWltries were diiplaying for 2.Uo\ving them to remain Though the ~m of the nto·coloni.,.Jists is e<:onomic donuna-
within their monetary oreas W3S motivated largdy, if 11ot tiotl, they do not confine their OJ)Cr.'ltions to the economic
whoUy, by considet:ltion of adf-intereu. And they arc i1)clined !Sf'ht-"'"C. They use the old colonhlin methodt of religious.
to assume that this implied that their own pur'))()llc: would be cduC3rional and cultural infiltrotion. For example, in the indc-
served be-st by following up political indc:pc:udence with its peildent Sates, m:my expat.rjate teachers and 'eultur.tl
financial equi-nlent at the: e:.~.rlic:Sl possible opportunity'. ambas~dors' inftu.ence t11c minds of the young against their
Lombard assured his 1't..":'1det-s that the Africans showed own country and people. Thr;y do this by undermining confi-
wisdom when the S(!CJ"ciAri<tl of F..C.A.• assjsting the Orgnnisa- dence in the nati<)l\lll gove rnu)c:nt and social system through
riou of .1\frkan Unity to implement it:s resolutioo on the possi- c::xaltitlg Lbcir own notions of how a State should be run, and
bility of tstablis.hing an African clearing houlle llOd p01ymems forget that there is no mooopnly of political wisdom.
union h.ad the good sense "to seek the advice of the dirtin· But all this indirect subversion is as notltin~ compared with
guish~d American monetary authority. Professor 'l'riffin of the brazen onslought of international capitalists. Here is
YaJc: Univenity'. Need we be surprised that in his rcpon the 'empire•, the empire offina.nct capital, in fact if not in name,
distinguished American professor pointed out thil.t 'it would be :a vast spr.awling network of inter...oontincntal activity on a
m0$t unwise lightly to condemn or break up financial arntnge- highly divtrsi6ed scale that controls the Ji,·c:-s of millions of
ment.s wilh major trading c:omp:mies :~.nd financial cemres'. people in the most widely sc::parated pans of the world, manipu~
This, of course, we mis:bt consider neo-oolonialin penetraLioll, lating whole indtt!itri~ and exploiting the Labour and rlches of
,. ss
N!O-COLONIALUM U.IPI!RJALIST FTNANCI!

nurket11 for invcs~t capital and manufi)Ctured goods, chcmic:dly·produood primary materials, rtl.ll.nufaeturcd goods
exploded into war when they became too intcme to contain 3nd overseas employment o( grov.-ing Cft.pital turplu&es.
within the limits of dipklmacy. The: 191+-18 war brought a reo. ~.1lleng<'d thus by Anti--colonialism and socialism, imperialism
diTision of the globe's colonial s.ectorJ. At the same time it ts now enJr.~ged in o •to-the-death' trial (or survival flgainst the
created tbe opportunity for a sociali&t bre2k in the chain of forces that are ant:;.gonistic to it and d-.at are build.iog up across
imperialism that encircled the world. the globe e"\·en \vJUle t11e internecine strugRie within iuelf is
A heo.vy blow was dealt to international monopol)' capitalh:m becoming mor~ and more brut;tl. In this rrlulti-sided strU£gle,
with the triumph of the Russian October Revolution. From impcrWi£m bas been foroed imo the u.se of tru~.ny anificea tO
then on it was faced not only with the struggle for hegemony maintain i1.s df in being by continuing the colonialist process
within its own ranks but, which w-as much worse, it was forced without the benefit of colonial control.
to eng;age in a defensive struggle against an oppolling ideology. The great oolonial powers were 3ble to monopolise uterrul
That ideology had achieved a signal success in withdrawing: a trade and agricultural and industrial primary materiaJs pro-
sixth of the e:arth's surfat."C from monopoly c:;pihllism's field of duction in their respective subject tenilOries. The colonies of
operations, a fact which jt has nc.:vcr and will never forgiTt, such a lesser industrialised nation a.~ Portugal, however, which
:and W2$ thre:atcning to undenni.ne imperialism's power at other has for centuries been a pawn of Drit2in and hecame a senti-
rtr.ttl-gic spol.s \~bicl"l had softened under the blows of war. colony of British finance, were dominated by British capital,
With tllt: failure of interventionist war to subdue the new together with the international banking groups with which it
soci11li:st St11te, a tort:km sanitaire was raised around the Soviet is associated. Belgian financial domination of the Congo,
Union to prevent the spread of socialist contamination to other boo:.tuse of the dose connections of Bclgitm banking itutitutions
p11ru of Europe. Fascism was encouraged to prop capitalism with such international houses as Roth!dtiJd, L.uard Frt.res,
at points where it had been seriously damaged :md wu fa.oed and Schroder in their tum linked with the Morgan and
with popular disoontent, as in Genn:l.lly and Italy, ~nd to RocltefeUer ~roups, was shared with British, French and
bolster it in chose outposts \vhicb were and remain semi- Amerlc:an fin:moe.
colonial appendages to Western imperiali.Stn1 Sp:1in and The tribute drawn off by \\13y of colonial and aemi-colonial
Portugnl c.-.x;ploCtation enabled th~ capitalist classe1 of the metropoHtan
These devices, however, Wt':re unable to co~ with the re- countries to pass some of the crwnbt to their woding cla.ues
current crises t..lut were tearing at the very bcare o( ¢ll_pit:'ll_ism and thereby buy tl1~n ofT (espcl:ially the trade union and
and sharpening the bitter contentions lxt"-ttn rival imperial· I)Oiitit:al leaders) when the class conRict.s in tlteir sucit.:tie:s
isms which erupted imo a :.econd global war in 1939. From got criticaL At the same time, the oornpetition fur soura:s
this holocaust, socialism emerged as ~ mucl1 more th.rc:atcni.ng ul raw materials, and the export of apilal :and commodides
chaJlengc to imp~o:ri.1.lism t:h.an ever bdore. At the tame time mtcrmticd as productive methocb it~tprtwed and goodll
we, the peoples of imptria.liS:m's 1far flung empires', had come ,..amc out of the factories on a more and more massive
to n:alise lll<tt we could have control over our own destiny and ICIIIC.
begun to rnake our bid for independent nationhood. Thus T~ uneven devclopmcnc of capitalism brought new con-
imperi3li$m carne to be challenged on another front, the trl;d~rs into the field who joined in the rivalries that had
colonialist (root, at a titne when science had heightened the lfl)WD up witb the original scramble for colonies. These
capabilities of the productive machinery of cnpitnlism, thereby tft-C!pc;ned. until they erupred in the two world war., which,'
increasing its need (or raw materials and maritets for new uutwithatanding all the pious cL'lptr.ap about their being wars
98 39
 UIPI.Ili.AL.IST rUf.U'i'C:I
mar·l cu for irn-esr:ment capiW and manufac:rured gooda, chanieally-produeed pri11111r}' mot•riak, manubcturod aood•
a.plodcd into wu when they bcame too int.e:Die tO conu::i:n ond ........ employmmt of - etpital swp~u...
•ithin ttc limits of diplomacy. Tbc 1914-18 wac brought a re-o Chali<llpl th.. by onti-<Oioniollam U>o! ooeiolism, imperialian
d.trilion of the g~·· colonW tccton. At the .arne ~ it i• now c:npgcd in • 'to--u..dcath' trial for survinlapirtttlhe
ct<atcd 11\e opportunioy for I JOCiallit bt<at m the duin Of forc:n that are anugoniuic to it and that are buildi..tlg up uroa
ampena!Wn ch>t eocirtlcd the -ld. the globe evm while lhe internecine struggle within iud£ i.s
A heavy blow wu deG.lt to inte:rrwnional monopoly capitalirn1 lxxonUng more and rnore brutal. In this muhi-sided struggle,
with the triumph of the Ru.ssian Octo~r Re\·olulion. From imperialism leu been forced intu the u1e o.£ many anifice1 10
then on it was fneed not only with the struggle For hegemony mnintajn itsel£ i1\ being hy ctHHinuing the colonia1i~~t proce~:."
\\ithin its own rank$ but, whk:h \\U much \I.'Of'le, it was fore«~ without the benefiL or colnni.1l comrol.
to cngag:t in :a defensive struRgle against an opposing ideology. The great colonial powcn \Vtrc able to monopolise utern.nl
That ideology had achieved a tigntl .~u in withdrawing a trade and agricultural and indu&ttial primary materials pro.
lixth of the eutb's sur(..., from roonopoly apiulism's 6dd of du.CtJon in their respectave NbJC:CC taritortes. The colonia of
operations, .a bet ""illch it bas r'M:YM' and ~ill DC\·er forJl~, JUcb a laser indll.Str"Wt.ted nauon u J)ortugal. however, wh.tch
ud wu threa.te.ni.ng to undemunc irn~rialiml•s pawtt ac other boa for cmwrics bc:al 1 pewn of Bnwn ond became 1 aemi-
stnotqic spocs ..birh bod toften<d under the blows of ...... eolooy of British ~. _ , dollllmU<I by British c:opolll,
With the h.ilun: of intc:nc:ni.JOnist 'ftV to .ubduc the ne\11' tO(:tth<r ,.;-Jt the intenwioool bonli"'! group> with wtUd> it
~State-, a cordolt _,·tairt ·wu n.iJed a.round the Soviet iJ u..O..ed. lldgion linanc:i:ll domimtion of the Congo,
Unl<m to prevmt the spread of IOCiahst eonta.mination to othtr becaust of the clo~ cono«tionJ or ~Jgi:an banJtin.g: institutions
r-rts of Europe. F.ascism was ttloouragcd to prop capitalism with JUch intem:nional houses as Rothtchild, Luard Frtres,
at points where it had been ~c:rioutly dam~aged and wu1 factd and Schroder in their tum linked with the :\1organ and
with popular discontent, at in Cenn:any and Italy, :md to RodtfeUer groups, w2s 1h:ared \\ith British, French and
bohter it m those outl)OlU which were and remain semj. Amcric:m fmance.
colonial appendages to Wtrccrl\ imperialism, SJXUn and •nlC tribute dra\\'"Tt ofT by WliiY uC c..-olonial and semi-t.'Oiunid
l'onugaL opkMLation et~:tbled tht ajJit.tliJl clM\io4!S o£ 1he metropoliUIIl
These dC\·icc:s, however, "-Cre unable tO co~ \"t"ith the f('· oountriel tl) paA anne o( t 't' crumb• t" tbcir wori..ing clat§lfll
CW"r'Cn\. crises tlw: wrn tearint; It ~very bean; of eapitaliam ond thcr<hy buy them orr (<•r•dally the trode union ond
ond alwpaUng the bitter C:OIIImUoou bdwcm rmJ imp<rial· polruc:ol leaden) "heft the <lou oooJiic:u ;, their oocictieo
iunJ wl»cb erupted into a J«<nd glut.l -war in 1939. From p critical. At the wne time, the competition for a:JUftlCI
tbb holoc::awt, socialism CJ'nC'rsed IJ a rnuch lliiOtC ~ of ..,.. material>. ond the aport of aplll and oommoditiea
cbalJalge to imperialism than C\'l't br:fore. At the wne time lll,..,uticd "' produruve mctbocb ampro>cd ond plds
n. the peoples of impffi2fi1m'• 'far flunc empires', had come
tO realise: that we could have crmtrol over our own dc.stiny and
,.,.,._
aune out of the faaona on • mou and l1lOI'e massive

began to make our bid for &ndcpcndent nationhood. Thus Tbe unet"en. devdopmt:nt o( capitalism brought new con·
impcrialistn came to he challenged on another fronl, tht tu~.d~uinto the field who joined jn the rivalries th:n had
Qolonialist front. at a time when tcience had heightened the grown up with tht original ltramblc for colonies. These
Cll(,llhilit.ics o( the productive machinery of atpitalism, thereb)' deeptn«< until they en1ptcd in the two world wars, wh.ich,'
increasing its need for rav. materia.lt and tnatket& for new notwithmnding all tl\e pious claptrap about their being v.vs
:m 3ll
SI!O·COLOMIA'-IIM I MPUIALJIT fl)fAN'CI

fought for the maintenance of democ:mcy '1\'t.t'e, in rtality, ~ars cf"llCW oonsequencea in national and intesm.tion31 politics and
fought for the rcdivision of the world by monopoly cap•talism. economics.
'War', ClausewitS has told us, 'i$ the continuation o£ policy by Post-war capitalism, which had already received one devu·
other means.' What the powerful trusts were um.ble to achieve tating blow after the fun W<>tld war in the rise of the Soviet
by 'peacefuJ' competition, their domination 0\'er l;argc::r and Union, took another crushing defeat in the establishment of
larger areas of the world, they embroiled their coWllrie.s mto socialist regimes in a number of cououies in cent:ralund canem
military action to achieve for them. This not only gjvt;:$ them Europe and in China. Large SOUI'Ct'S of r.aw materi2b and
a wider sph«e of exclusive operation but w•dcrmines the financi:al investment :and commoditv markets were withdn.wn
power of competing monopolies. (rom its field of exploitation. DomCstic reconstruction at fin.t
This redivision of the world is not conf!JlC(l to the less ocntpied the auention of the European countries. The United
developed secton but extendJ to highly intlunriatised areas. States, havlt•g already IK:hievtd a tremc:rukm~ he~tdstarl by its
The important industrU.List.-d region of Alsace Lorraine was a late intetveotion into the war, its physical immtmity from
coveted prize of the German im'lllsions of France in the wars attack, and the enonnous spurt given to its productive and
of 1871 :and 1939. Hitler's campaign against Cz<cho•lovakia inventive capacity as a main suppUer of war materials and
was inspired by the d esire lO annex the highly de.,-clopecl services, took over fro m Britain the leading role in intcmationaJ
nunufactories of Bohemia and Moravia to the German trusts. financial monopoly.
French capitalists long looked with watcrine mouths at the rich A3 a ruult of its primacy in the financil'l.l sphere, United
ooalmliles and chemical and other industrie' of the Saar, so States foreign policy turned in a completely opposite direction
dose to t1te iron ore range of Lorraine, and Jeized the oppor- (rom its pre·war position of 'splendid isolation' to one of
tunity of the 1919 peace arrangements to :rppropri2te them to domination in world aff:Un . The outcropping of new Statu
France as a reparations award. A later plebiscite won the Sur (rom colOflial submergence raised the pivotal problem of how
back to Germany. Aher the second world wu, agree.ment to retain these countrits within the colonio.l relationship onoe
between the de Wcndcl-Sc.hneider·Krupp trusts achitvtd a open control w.11 removed. Thus M.s opened up a new phase
customs union between the Cenn:m State of the Saar <~~nd in imperia.l.ism, th:at of the adapt:ation of colonialism to the n~·
France, which ac:twlly make• the Saar a dependency of the condition of the elimination of political over.Jordship of
de Wendel coal and steel empire. colonial powers, the phase in which colonialism is to be
\Vorld wru- two ttded io the defeat of Hitler afid 1 temporary m•intll.i.ncxl by other means.
rebuff to Gcnn:an capitalism, which h.;~ to submit to a revital- This is not to say tlu1t the oJd O\ltrigbt foml of oolonialism
ising injection of American monopoly (m.ance. At the same ia completely scrapped. There is plenty of evidence to show
time an uphea'\r-al \\<'aS taking place in the colonial world such haw tt:n.aciously imperial powers cling to Lheir colonial terri·
as to make Winston 01urchill remark that he had not been cories. Vietnam, Korea, Sua, Algeria, are all examples of
made Prime Minister of Britain to preside over the liquidatton how for imp<tialin oatiooa will go to hold on physically to
of lhc British Empire. All the fair, brave words spoken about colonies, an attitude reinforced by the interference of America
freedom that had been broadcast to the four comers of the IJ a leading protagoni.!.t in the struggle for the world monopolist
eartl1 took seed and grew where they bad oot bten intended. <Ontrol of finru>ce capital. This struggle hu been given an
ColonjaJ emancipation beaunc the dominAting phenomenon Ideological content by invoking anti-communism as the m..ainr
of the mid·twenticth century, just as abolition of sb,·ery \\'Q •rrin~ of the battle to bring the socialist -or of the globe
of the corresponding period of the nineteenth, with just as Nc:lt 1nto the exploiti:\'e control of\Vestcm financial monopoly.
ol() <I
NIO·COLONIALIIN IMPUIALIST ¥UUHCI
Cube. it the ouutanding anm:ple of the extrtmi.n ~~ to producing countries, tbcu pro6ts art: 1til1 mountinc prodi@i-
which thHe poW« pou.ps will go in the effort to reimpote oudy.
tbrir ijrip "here they t.v. been ej<ct<d ttd to m.Uu>ln •hac Oil trust n:!UVes run into billions• .Much hu b«n wed m
they coruider a ttntec'e bastion in the nruggle for the r~.al investmecu abroad, America fat and away accedinc: all othcn.
or dominion 0\-~tr the IOCialin anti-i:m.pcriali.Jt •orld. To firwriU """'"'.. £rom oil mwt be oddod thnoe IU"l>U>Od
Coouol of fud retOUJ't'C:S is • pri.mt motivator mthe frantic from - . I ond other rowmotcrialo' monopolieo; from monopoly
oompdition b«wtefl .-.opoties. n.. Sur wu buld;«J be- ol food supp6es and ..., indusuW ond ocrirultunl empitu;
tweeD Franco and Germany because of iu importat~t coal from the monopoly OC"tVo-orlt ol clutribution and distributiTe
...,.....,.. Simibrly, the battle for oa Jus gone on sincr bclore oamcies; fnxn mitiury prq>anlioou and the ..,..,..) w•n th>t
tbe 6nt wor~ •v. Middle Eastern OJI. in &c::t, became an hue '-> fought wjth colonial peoples since the end of the
imporunt objcai~ of that war, •od the suugglc c:onunued seoond world war; from the development or nudcar inrtn.r-
after the war by diplomatic and economK: meant inside the mc:nu of destruction auU the frt.mlcd race for leadenhip in the
national hmmdaric:J and on the international plane. RockdeUor realm of space rr:search.
M!Jlremacy in oil hu been stoutly contested b)' the Morgnn Capitalism conrain!l rntny p11rndox.cs, all of them hued in
group11, which have c::ctendcd their influence by breaking into the concept of commodil)' pnxlul'tiun: the: ftw rkh and the
the An~lo~IJuteh holdings, J one-time preserve of the m1any poor; poverty and hunger nmid supcrabWldance;
Uoth.seh•lds. L.a'ard Fr~rcs. the Deuttehe ~ and tlJeir 'freedom from hunger' campaigns 1nd tubsidici fo r rc:atriction
~lJOC:iltCI. of crop output. But perhaps the moJt ludicmu~ it the constant
The frcnJ;icd bAnle for oil monopoly b:u been a. cardinal traffic in the same kinds of goocb, products and c:ommo(hties
faCtOr in the aupprea!don of popular movements ln colonial between countries. Everyone is bwy. 11 it we:re, taking in the
and ~emi-coloniallf't.Ot of the Ne:ar, l\.1iddle and Far Ean, in other's w;uhing. This is not dcnc out o( need, but out of the
Latift Amtrica ud North Africa. The seri~ of rvtnH ln lnan, CIOmpuhion cf profit-making and monopoly c:xten•ion. The
Iraq, KU'Auk, A.dtn, S..udi An.bil, Cuba. VC'Ila:~ Bruit, Eun>p<on Common ll-1artet bu become tho apo<hcoois ol this
BNIW.'i, an4 Alf;eria. that h2ve erupted in 'iokocc, ~lution pt()(ftS. u well 21 the dwnping ground o( intem~~tional invCil-
ond wu ba•-e beal brJ<ly stimWot«< by tho ""''Sle for mmt, clominot<d by the pno An><riCOA bonkiag conc:<mS :tnd
control or oi.l. Osl findJ iD E~ ~ suc:b ., Groni.ng~ thrir Brium suellita.
in liollaald,. ha\ ..- d,....., 1Hhc con\pecition into wd.l indt.Uiri.alued 1l>e Ewopoaa Commwuty, of which the Eut-op<2n Com-
o::ntru. ju.te n the oompctition for coal and iron did. mon :\larkct is only ooe- :atpt'CI, is by DO mtaru 1 nt'W' conc:qx.
Curnpnlcion IKt'fll«n the oil combines is not co.n:Med to It wu f...,._..«< by HOO.O.t in his criti'l"< of impcri2liun
IJfOI.Iuelion, bu1 olcftds i.nto t:bc: d.Utribu.tioo of pdlOlcum as •a .Cwopcao fc:dcnrion ol great }'0'\ert ~·Mc:b, to fu from
producu and the now by-product iDdumy of pcw>-<hemicah. forwan!ing the caux of v.'Ofid c:iviliutton, miJhl introduc:~ the
A fierce at.tUUJe it going on all e»-c:r the world as • reault o( gigantic peril of wenem para&ites, a gruup or ad\111'l<!ed in·
the obarp incr<Ue in the quantity of oa oonsum<d and tho dustnal nations. whose u-pper clMxa drew ,..., trihule rrom
territorial expansion of consumption. The oil induttry has A.Jia and Africa, with which they ~uppon.ed grtat nutllses
from itt outset been dominnted by tbe most powtrful btntlng of remi.ntrs, no longer engaged in the ltAple industries or
interests, the Rock.tfellers, 1\forgan~. Rothschild•, bee~~use of tftrlculturc and manufacture, but ktpt 10 the performance of
the spi_rlllling profits it provides. Today, even with the larger personal or minor industrial K.rv1C<ll under the control of a
royalties the oil combines bolve been obligtd to pay to the oil~ new financial aristocracy.' his collective imperialism.
42 43
~BO·C:OLONIALISM INrlltJALiaT Fll'fAI'fC:E

This is precisely what has happened. Competition between almos-t 60 per oe.nt, that is 3,979 milJjon Bdgian fr ancs, was
the monopolies hAs produced the phenomeno n of van :tdvertis- furnished from Ameriean sources. Henry Coston, in his reveal·
ing and p ublic relations organiu1tions which busy thenuelves ing book on the ramifications of banking finan.oe, L ' Europe dn
:ttlling not only goods and servicea but peraonali~s as wdl. Bun'f'n·, , (p. 174), declares that this entuprisc is not limited
These organisations and the media through which they openttc to the cerritory of the kingdom. and that the Belgian ex-
-.he pre~s, radio, cin~ television-and the busincs:se11 co&onies have n ot been ignored. 'One might even ask if the
d..Uing with the pocltaging of goods, employ huge armies of san,guinMy events in the Congo were noc caused by the
people in what are nothing rooro than parasitic jobs which merciless struggle going oo betWeen rival financial groups', he
would have no place in a une toeiety p roducing for con· concludes.
sumption instead of profit. As things are, enonnous stuns are American fi nance capital. of course, had a field day in
in\·ened and earned by the financial interests that participate GellTI21ly during tl1e pctn·w:ar occupation. Cenn.an jndunry
in the promotion of thae enterprise!~. and finance, already linked to American industry and finMce
But this is only a tiny fat."t''. of tl\e fevered financial activity by cartel and trust arrangc:m.ents, bc:atme even 'more heavily
which is going on today in the capit.ali.llt world. Every week, penetratod by the pewcrful United Smtes rnonopoly groups.
t'\'ery day, "';th Wmost roouotonous regularity, we see the same The giant German banh, Deutsche Bank, Ore~er Rmk,
names repeating themselves as bidders for large companies; Diskonto Geselbchaft, Commenbank; the mighty German
as Wldetwriters and issuen of new $hares or holders of trusts, Krupp, Boyer, &di.oche Anilin & Soda Fabrik, Hoechst,
debentures; as oomhinera in new financial institutions for and Siemens are all strung to American capital and in many
more universal methods of jnvestmcnt; as participants in new w:tys subordinate to it. Italian banks and industry ar e ln much
factories and ventures that will extend monopoly in fresh the same position. The Banco Commerciale Italiano, Banco di
directions and more terTitories. Roma, Mediobanca. Credito lta..liano, all are in several ways
They tre eBpOCially indmtrious ln the countrits of the 'Six' tied up with American fin:mce opiml ~ither directly or in-
and others which still hope to pw.h into the Common Market directly. Examples em be stretched across the world, to Japan,
as direct or a.sGOciate members. The lowering of trade lxlrriers Can~cb, Austr.llia, M)d New Zeal:md. T his financial depend·
was the sign:tl for thdr entry. For praetiatl purposes, some of eoee upon America has b~ n put by Lord Beamed, chairman
the ke)' European countries are financial seiVl.Otl of the of M. Samuel & Co. at the 1963 annual meeting, when he
dominant banking monopolist groups., the Morgans and the reponed tl1e 161 per cent acquisition of the company's shares
Rockefellers. Despite all the power pertaining to such im- by the Morgan group. 'We ·will not be the fint merchant bank
penant banks u the Soci<!tt ~nenle de Bdg;<JUC:, llanque de to ba're part or lts CMpital owned by American interens'.
BruxeUei, f<redje~:bank. Banque Lambert, to sucll important T his piteous SULtemem j3 a public confession of Europe's
indu.striaJ.fi.naru.:e groups :u Soh·ay, Boel, Brufina-Cofinindus, subs.ervieoce to American firu~.ncial monopoly, a monopoly
Petrofina-Belgium, with iu appendage Luxembw-g, is in expressed in the strategic and political alliaace.s that bind
reality a financial colony of American iovemnent capital. European capitalism to American capitalism. European states-
Thirty-nine new cornparues were established in Belgium in men are deeply conscious of their inferior $bnding but, in tbe
1959 by foreigneu. ln the year 1961 the number o f new rrulin, feel tbere is litdc they can do to adju.st the position.
;foreign' companies set up had grown to 237. Sums invested ~esen~ent, ho\vC\·er, there is, and in t"'rancc it has expreue~
from abroad had swollen from 2.4~7 million Bclgian fnncs in rtself m General de GauJJe's stand on an individual French
1959 to 6,6&1 million lleJaian f=cs in 1961. Of this lut figure, nuclear striking force; in his overtures to Adcnaucr, former
... • •
NltO·COLONIAI.ISM IMPI!&I.\LIST fiNASCJ!

German Chancellor; in his ottemptt to extlude Great plane assured their hegemony, intcr-rtlatcd nt several points
Britain from the Common Market as the long arm of the even while competitive, on the international fi.n.aneial level
United States; and more recently in the ovt.rtures to China and German fi.nanei:al monopoly took a beating in the defeat o£
b.is tour in Latin Amcricn. All these are di'ortl to 11rrest 1918, wht:-n the colonial world w·aa re~vided, n.nd again m
America's dominance of Europe: and to exert French indepen- 194-5. American capioliun on the other hand, owing to
dent action on the intcmationa1 froo.t. Such attempts, however, ~!'ilphica_l a.OO terr!toriai!Klv:.mtagel (the last inherent in ita
have llnle chance of success, nor can they make I.M.1t a pa.!;sjng poht•cal umon), conttnucd to make rapid strides and was the
impression upon the world scene. They ar~ in reality expres- real victor of both world wan. Exp:msion of American financial
sions of the deep competitive conflictll within capitalist- and industrial monopoly, howe1•er, was not confined to
imperialism, which ex:ist below tbe surface federations and Europe. The bala.oc:e of wt![t.m financial power began to tilt
alliances, conflicts rooted in the unequal development of the l'Oward.s Asia and Africa, a prcx:e.ss that has been speeded up
contestants, in the w1equa.l development of eapitllism. since the end nf t.he second \.\'Odd war, with the brt..".Lkdown of
Britain, ~·' the forenmner of the industri-al revolution, colonial ru.Je.
became the workshop of the \VOrld, the carrier of the world's The many oonsonia wh.ich are being es:tabliljhed in the:
goods, the fnrt:most thru.«cr for imperialist control from the majority of the new Statts revolve bugeJy about tJ)e same
City of London. Her decline set in with the upsurge of the financial nnd industria) groups that h_aye rooted themselves
yoWtgcr, more vigorous capitalist States of Germany and firmly aince the inception of colon.i.'11 rule. Such changes a.s
America. The two world wars were a test of thcir rtrcngth there are con-espond with the changes of influence that have
against the okler cstnblishcd capitalist countries and against occurred within the groups themselves. The dominating
each other. The United States came out ttiumphant both influence it held by the ubiquitous American formations of
times. Still, the City of L>ndon ill only dowly giving way to Morgan and Rockefeller, with their British and European
W~l Street ns the symbol of world money power. It hopes to associates following behind. Dying eolooialism is reviving
resUJCitate itself by spre:tding into the European Common in the interotttion,.J c:o:ilitions of noo-colonialism. These
MMkct, even though it mun do so in ~Liiance with, :and sub- coalitions of competing organisms reflect the global ch3J'acter
ordination to, American financial monopoly. Sur],IU!J c:apital that finan(.it1 monopoly has attained under the dominance of
in France was more heavily invcsttd in the lc:a.s adv:lnced t1'1e n.wst powerful imperialiam, that of America. They arc also
countries of Europt.' -Russia, Poland, Hungary, Rumania- a Aign or the stn.tggle for survival of the older imperialisms
than tha\ of c:idu.:r R~iL-.in or Germany, although they, too, against the fieree qu.esting of tbe more powerful a&>Tes.si,·enes.s
had large in\·estments i1\ &.he same EW'Opean hea-vy indwtries, of American imperiali~m. whO!ie wster productive force is
ann:aments, mine11 and oil tidds. Everybody, however, turned drivitlg it outwards more and more.
to the primary producing countries of the world, aJieuating Attempts arc made to !Weeten the wdl-k.nown aims or
some as outright colonie$ under political rule, mbserving and rapidly disinteg-ro~ting politic:~! colonialism: tl1e maintenance or
exploiting others as spheres of investment on a semi<c:~loni:al le-ss de\'elopod areas of the world as the provideu of cheap
pattern. raw materials, spheres of investment, and markets for c:xpeo-
Because of their late start, German and American capitalism sive finished goods and oervices. The finished goods and
prtSscd for.vard with the amalg31TI3tion of industrial combines services, now that the populatiotl.s of the new nations an;
and the monopoly of finanee cnpitll! more hurriedly th:m did as•eni.ng demands for a rising standard of life, are taking on a
either Britain and France, whose supremacy on the colonial different character and over·spilling into categories formc:rly
«; <7
"IO•COLOMIALJIX INPJIU.LU1' PIMAlfC8
nc:cloctecl lADd-dcaring "'!~· hydro-doctrical projects, bednil o.be -nomic rituttloo. In Amlric:a, the farming mall-
- ra>oll!Uu<boa, ho....,, - . . boq>itals, harl>oun, holdor still ti•.. do.. to and ...., brJoy o.be J>O"crt)' lin<,
aizpons, and all the oncillory and ouppl<mc<lwy ..men the) wbi1e the ecteosive modoonlJ<d bmu of hanlter-linanetd
call for, "" pn>ridiag new fields o( capitol in.,...,.,..,t ond mm~ arc spoon-f«< by a b.nkcn' Cm~t. Cu.nn.-
profit for fUwJci31 monopoly, both ot haOle and abrood. They te«< prices for produa: mat """ ;,to govemmeot-poid ond
are abo keeping in hancbomely paid anploym<m • larce army gm'trn.J'nmt ...huilt .stonset mllkc laJ'SC"'scalc farming in the
of eo-called experts, technical and professional people, not Un;t..S &<to< h1gldy profitoble to linJUJOC caphal, whk!t
always of the highest calibre. pa.sscs on to the gcn-emmcnt tbc butdcnwme problem of what
New sources of extr"'aetive tnd agric..-ultur-.&.1 commodities are tO do with unsold ll1rphnel raulting rrom high prices.
alto &ttracting large capiUtl investment s:wns. Former depend- The need of funher outlct1 for the products of agricuhurc
ence upon dom~nic sources of many minenlb in the metro-- as well as of the induJ.trialand commercial oomplexcs that arc
politan countries is givi.ns place to their importation from coming under increuing f&oclronic control, and hence acquir.
abroad. Miners in the ~r and iron ore producing regions i.Qg a greatly incrcucd potential, u forang Wenem ap>tahtm,
ol o.be Uoit..S Sutes, for enmple, "" being thrown ow of pmicululy American aopitolum, into greater and more
wort not only bccrW< of automotion, but abo beaouoe bicc<t inteoui>e inv....,_ in hichJy indiiJiriaiUcd for<ign COWltrie&.
pro6u are being oh<aintd from the patly J<epp<d-up mininc The RCaJt 'clta"'' fitte ployod ow apinn the ~
o( bue nutcriab in Africa and AJia. In ...,. plxu, their ol cle Cau!Je's anti-Amtricao policy which led Franc:o-Cumon
ttml"'f1rocessi:ng 2lso offm ptc:r margins thao c:an be got in opporitioo to a c:ontinUIOion of cheaper American poultry
the ateaJ ol more experu.i.vc labour. Pucno Jijco and other imporution into Europe. il just one of th~ lighter e.umplet of
lA-tin Americ:ln count.rict thot ol!tt cheap b.bour are fast thr fi.e:rce competition gol111 On to unload the OUtpUt of bank·
becoming centres of manufactured consumer goods, frequendy lioanced vigoroutJy mtehaniJ<d mau production. It Mgh-
processed from imported raw materiab and aeoc tO the United lighted for a mome:nt the intrinJitally paradoxical nature o(
States to compete with Amcrican· produced rom.moditiet u1 the European Market as a rnonupoli•tic Orgtuljsm puui1lg up
only sl~ghtly reduced. or tho Jamt* priceJ. This gives greater • strong resi.sta.nce to 1 dominant compnitive: monopoly. The
prolitJ still to finance capital. cornpetirh·e tug--of·1A'IJ" i.s aempli.fied in the retaliative higf1e:r
The intricate proceu of balancing rewrns from dcnne•tic cari.ft, that ha'·e now bt'C1l put upon Fn:ncb and Gennan
in"tiUI'leDt -ap.nst the outflow of capital into more profitable •mall cars imported inlo the United &ares, wh.ieh have lo.-
foccign im"UIJXleftt i1 autina tcriow rifa.s in the internal tbeit aWn '"'""'~Jt&e OYU the home producod ortide in the
ecooomic: poWon of ewry WH~rm capitali.at countf}'. TbU i.s coruequeot hi&ber priee.
fdt patticubtly in the b&loDC't ofr:ymeou pcuilion. E•= the Foeu and ficwn pro.. thtt trade and ioTesmtcnt brt.....,
United Satn, .mo.. ,......., o sold and ro.eip eacllance the hi(l>.ly indwtnalixd 00<1ntne> an: ~ thote w1th
...., oo ..,. thtt they have carried her through • growinc the lc:so cleYdope<l rqiont. 1'bey dl'octinly support the ca>e
outward current over a lon.g prrKw1 1 hu now reacbed the ttqe thot imperialinn i• not confined to the primuy producing
wh~, Like her leu fonu.-.atc J::w-opcan counterpartS, the h ataors of the wodd. Howevu, the •licnt fact is that the
hcr.ell e:ntc:ring upon an advrnc balance of payment• crisit. profit rate from the exploitotion of the lest developed artal h
Despite the rise in national produ.ction and increucd gretttr than that r«dvtd (rom the more induatrialhe~
produdivity, the problems of tgriculturc even in such ro.pjdty countries. In the latter, the competition between the monop-
ri&ifl.& economies u Western Cermany, Italy and France olies is fiercest and dome:t-tic int«est.e, even those whieh are
48 49
f!IIO·COU:ncruu., UCPIIIALIIT PIMA:CC.
tinlt<d with inttma.W.W finance mooopoly, allllw: link' offer hal the tocialill camp, and probably the non-aligned amp
the ttoutHt f'f'li.ttt.nce to the i.nndiog ontt. Yet, and this is might 21so have on<. But. ..,..rally ..,.Uinc. llw:re ar-e two
precildy due to tMir imperWist cbar.lctcr, the do:mi.oati_ng: m:ain cl<fuUti<>ca: ooe by llw: U.N. and another u uncla:llOOd
•-orld finAncill g.roups a.re ab&e 10 make thei.r coruc:•nt lnwr .. by lh< JC>.<:IIIecl dMor COWL triea. Acconl.ir>& to the U.N.,
Non• into the nttional monopolies. and to cltepen their " - ' < : aid coouisu only of ourrich< '"""' and ~cog.
bq<mony OYer larp and Ia'&<' ports of the globe. tenn lendins, foe DOD·mititary !""!"*': by Gcmmmem
llo- much cMcr tJ~ it is foc impcriafut fiDaoce to «l&e and imemodonal orpiadocu' • But the to-a1led aid·
iu way more and more into the de'fdoping count..riu where pwin@: oounttia iDdude 1A tbe tmn "aid"-, private capital
coloniJI Nle has broken, or is brcakin:, dowa. Under the iovesunent and expon cndiu, ew:a for rtb.th·ely abort
nccasity of Jeding greater and greater capital •ums ror ~ as "'tn aJ loant for malita.ry purporea. •
c«>IOflk:al explorations and llw: opcrung up of new fklds of
mracuvc maltrials. intcmatlonsJ finance '"''' caJlod to the aid As .Prof..sor IJeJ>ham in e-,.;, Aid ro Uruhrd«e/op<d
of the nationAl fm-tnoe of the respective imperialilt countries. Cowdnt:l rernarb: 'It it pleasan1 to fet:l tlw you are helping
Thit procc11 wu rtimu.lattd by the fact that the nation•l yc>ur neighbours, and at the 11mc time incrtuing your own
finilnCLll monopolies had already proee<d«f to the otoge or profits.' Before the decline or oolonbtli'Jn "hat today i• known
intcmnt.ional :alliance ";th the onset of imperialism, a proce11 as aid was simply foreign inveatment.
thAI hal maniroldly quicker.ed in tbe present epoch or rhlnjJ
nation11lirm nnd JOCialism. Thus. at this preJent time, all the
inlltNmenll and mechanics of intc:mational Unperilili~m,
apreucd in monopoly coalitions, are brought to l.lc<tr in A
gcnenaJ de1Celtt upon thr new, needy c."'U..tr:ies.
1"his Or\\' wave of pred:nory invuioo of fom1cr culonitt
operates behind cbe intc:rm.tiooal cbancter oC tht: 11enc~•
~~<d: financial and indnSlri>l consortia, auist&nC< orpn·
Uabocu, financial md bodies. and llw: lilte. F ricndly co-op<ntion
is ofl'cr<d in llw: educational, cultural and aociJLJ clonwas, 01llk'd
"' ....,,""'"' llw: dcsorablc !""'"" of ind;g.no.u PI"''.., eo
the tn1pcriali~t objtcti\e.a: of the financial monopohru. The«
... the lateot m<tbodl of holdiAc beck the .... dcvdopmmt or
the new oow:triea. These are the puapbc:roalil of nco-
eoloni&lln, oupctficWiy proffering aid and pdance: tub-
ccran.,...sly bcntfiting the intertaled clonon and lhcic
countrie1 in old and new ·way1.
·rhcre aro JC\'eraJ definitions of 'aid', u B. Chango f\.1tchyo
in hh Aid twd N10-CokmioUm has pointed out.

'The definition varies with different blocs. Thus th~ U.N.

haJ itt own de:fin.inon, the imperi:aJin camp h:u it• own, 10
30 31
 MONOPOL1' CAPn,U.IaM ANO "rHI UIIUCJ.H DOLLA I.

Airicai about a third of l.C.I. and iu au'-'diarits operate

ovu.....
Sir Alec Douglas Homr:, formu Prime Mlninu o( Britain's
4. Monopoly capitalism and the To.y pemman, in a JjJ«<h made on 20 Much I 964, pro-
American dollar f <ned bimsdf ignormt of the mcu~o.,. ol -.ru.Ji.om.
WbiJe Sir Alec was 111kq, Bntain wu a>pee4 in ..-Jw iu
pms wu busy deocnhinc u ._,... cnao .,.,..• all OTCr the
..-oriel, putting clm\n 'troubles' uuptr<d one! J>CfPCUI1CII by
t100o<oloaia1Wn: Men and Southern Alabta againtt Ycmen;
Bo.- and Sarawak ag.jnst Indonesia; Cypnu, Britioh CuianJ;
'maint>ining bw one! order' in Kenya, Tanpnyib, Upncb, for
the recently indepe:nd~t go'i'cmmcnu.. Is this the end of
im~iALism1 Not ~ to TIN EcotfiJiffi11, mouthpiece of
THB 'end of empire' hu been aocompanied by • flourithing or Dntain's business i.nttft'IU, which felt compelled to comment:
other mc:ms of subjugation. T he British Empire haJ become '.M ilitiU)" bosct, route. to the Eatt, frontier WrnUshing,
the Comroonwtahh, but the proceeds from tJ,e ~ioiunion oC putting down mutiniet-all thh has a nineteenth-century
or
llritish impulali!lrn are incrt'asing. Prolits Urit11h tin oom- ring quite nat=lly diJturbing to lhotc wh<l had hoped tlutt
pnnits have nangtd as high :u 400 per ttnt. 1'he latest dh•idrnd1
the end of coloni:al.i.&m mm.nt the end of military involvement
to Uriti.Jh di:amond ahareholden are clote to l50 per Ct.flt. On con of s..... The knobbly truth or the ""'tter tunu out to be
ont OCCIIion 1\tr Nehru dtdared that British profit. frotn inde. that for the moment Britain hat u many military commit-
pendent India had more than doubled ond Briu•h <llpital menu in that aru 3J it C\·cr had before colooia wc:re rtplaced
anvutmc..nt in hi• country rose from Rs. 2,065 m. in I!H8 to by Commonweoltb.' (~1, 23 Moy 1964.)
R1. 4,i60 m. on 1960. Total BriUJb imesuntntJ in Mnca have
..rtd to $6,500 m., the Fr<nch to about $7,000 m. one! The intention u "' lx>ld bodt the prosr<A or tl>< developing
American to $1,100 m. A,......,...,..,. made ploin the plunder countries. When: circunutaoct1 favour the c:subli.t.hnxnt of
or
ol BritiJh mor"'!"'ti.._ ft lUted 9 out of 20 Brilllin'• biqut noturts of a more than. t.akca indu.scri&l cbancttt, the aim is to
IDDD<I!'Dti« u eli- c:olotlW exploitinc c:omponico: Shell, o<e that tlley an mode haJtincly. The 0\'cr-ncliac objeo:me it to
BriUJb P«roleum, BritiJb American Tobaca>, Imperial induce • m«dy froctional iDt:nouc in the indWirillooopc of the
TobiiCCIO, BunrW> Oil, K clung:a Copper, RhoJ<•n~ Corporuloo, new nations i.o ordu that they may contuwe. to provide the
Rhockalan Mints one! BritiJh South Mri<:a, fi« of wbieh .,., sinews of imptriali.sm's gretter COOcefttntion ol forces for the
directly ma-P in chiselling away Mrica's natunl rCIOurott. final tussle of meogtb 1\ithin itJclf one! apmtl tOOialiom. II'IW
'I'M ot.hm are bulily increaoing ahcir trodinJ. Thrir total it remarkable is lhrt the major pan or !helm developed world,
or £221 m. n~t profits was over half the ootnbiJ:a.ed net and here \li-e mwt include the U.S.S.R., chote a.nd is choosing
rruf1u of the top twenty monopolies. Incredibly the liwt the IOCialin road to national prowe11. There m. in addition,
leaves out h\"'0 o( the world's greatest combine•, those tt-.tes countrie~like India wltere the political tymm, th<l\1&)1 patterned
within a &tate- Unilcver and Imperial Chemical IOOuatrics o n the bourgeois deJ·ooc::rncies of c:apitaliPn, lle\'tnbe.leu pr~
--whose operations arc based heavily in their 0\'erseat ex- claims socialism a.s the socio-«onomic objective. The nations
ploitations. The United Africa Company leada for Unilever in that bavc reoehed their pr<K'IIt pcokt by pat~ing through the
.12
NIO·COLONJALISW MONOPOLY CAPITALISU AND TO! AWE1tiCAN OOLLAa
variou.' stages of capitalism cling desperotely to the synem th2t epitomisod the mctaphysica.l tranlmutation of economic un~
has brougho them 10 the heigh,. of imperi>hsm. Each, perched pulse$ into a social philosoph;r. This, in spite of his reference
perilously on a narrow summit, mwt put up a constant b2ttle to to 'winds of change' blO'I\'ing across Mrica. He ccboed the
guard iu own pinnt~.de. several n:~tcsmen of the West, any of whom could h-ave made
Greater iruen.tity is infused into the struggle by the resur- d1e stacem.ent and, indeed, have at different times and in ahnost
gence of rivals, of whom Germany 2.0d Japan are the most identical words, 'The great issue in this second half of the
Virile. Both of them have benefited from S[l'(log injections of twemie&h eenrury is whether the uncommjtted peoples of Asi3
American capital, Md U.S. mooopoliell arc drawing off oon- and Africa will swing to the &st. or to the West! All the
sidtrable proMs from the running that is being made by the$e powerful imperialist nations are decided that the new Stttes
two countries in v."Orld competition, pointing the contradictions s.haJJ develop along the capitalist path, the provisioners of
among the interests invotvcd. Competing against American imperialism's vital needs:J the source of its super profiu.
impc.!riulis:rn, G<:nnan aod Japanese monopolists are frequently National libcr.ttion and the c:~bvious ~d~':i.n~s of socialist
in aUtal)oe with cheir U.S.A. opposites, who often put them development for n.·niom C:\'Oh•iug out of a colonia.l.ist dom.i.na-
rom•ard in irnperialism't general offensive again.st:Mrica, where tion and without the capital means for making that de\·elop-
open UniltXI S I:Url private investment might be regarded with mcnt, art: major faclOrs detennining Untxrialist strategy towards
more sus.pidon thao otllers, Germany, moreover, i.s now second these nations, in both the interc$ts of its internal struggle and
to tlle U.S.A. in the scale of so-called 8S$iitnntc to the develop- in the fight against socialism.
ing countries. Since capitalism is the embodiment of the AU countries, even the most deeply in\'olvod in monopoly
philo~hy of self-interest, the ostensible nlliea of America's imperialism, have a State Ketor. Indeed, State involvement in
roooopolists must use the position of strength into which they private economy has become an essential part of its process. Jt
arc being thrust to promote their own growth. should cause no surprise, therefore, that developing 00\U'Itrics,
This struggle for ascend::tncy among the imperialisms is particularty in view of the smnll aecumulation• of local private
continuous and invoh•es n constant se:arch for renewal of the capital, are obliged to centralise their COJnomics. The size o£
line\,..1 o£ strength. Alongside the b:tttlc for imrter1alist the Sute sector 4nd its planned expanskln, however, must
supremacy, there wages the fight against the ideologic:.~.) camp depend on the economic ')'stem which is chosen, capitalist or
of socialism, into which the warring imperialists make nn aU--out 110eialist. The aim o f the imperi,.lirt powcn, in the application
diort tO trail the developing cowHries as their appendages. In o f their aid programmes, b to turn the St:ate sector into an
this way the anti""C'tl'Utl~lni.st campaign is u.std tO further appt'-n dage of private capital. [n view of the process that has
imperialist aims. ~ders of monopoly capitalism t\'ery\vhcre been evolved in the imperialin countries. it would be rurprising
build up in the public mind an image of the synem in socio- if this were not so. The declared bask policy of the Agency for
cultun.l tcrm.s by which they transform it into an id.eol.lised International Development (formerly International Co..oper.a..
bannon.ious civili!ation that must be cherished at all costs. tion Administration) ill 'to employ U1lited $blli!$ Rll$.i3lan<:e to
They harp upon a way of life that may be altered only to its aid-receiving countries in such a way as will eneouragt: the
detriment, and $ll'Css its continuity as a major principle in the development of the private sectors of tlleit economies. Thus,
fight against communism. When HflrOld Macmillan as Prime I.C.A. wil.l nonnally not be prepared to finance publicly owned
:\1inistcr of Britain told the South African parliament that 'what industrW and extractive enterprises, although it is realised that,
is now on trial is much more thnn our military strength or our there wy be exceptions. • ..' •
diplomatic and administrat.i\'e skill-it is our v.--ay of life', be De-.·clopment in the new countries along non-capitalistic lines
.14 ss
NJO .. COLOI'll AI. liM MONOPOLY CAPJTALIIN AND TBB AMIRICAN DOLLAR
mwt be frustmted in the inttrCitS of Western imperit.lism. A continent have trebled, growing at a faster rote than in any
seriea of article. which appeared in Tht (London) Tim" in other area. In 1961 aJone American monopoliea profited by
April 19&4 outlined the pattern and made no secret of its some £11·2 m. which they took out of Mrica.
reasons: "The two great object.s of Britain's forci.gn polk)' mu•t The ritiing tide of n:nionaliam in the colonial territories Will
be to prevent the no.n..comrnunist world from being penttrnted remarked by the shrewdtr operators of United States finance
by Communism . .. and secondly, co prevent her own access to capittl as America•s opponunity to insinuate itself into what
trade and invcmnent in any pan of the world from being barr(:(( were the jealously guarded preserves of rival imperialisms.
or limited.' N:uurally enough, as the artides conclude, rboth Anti·imperialist ~tirriogs had begun to &how theutselves in Asia
these objects k'ad straight into the "netrcolonial" issue-the and Mrica before tht: outbreak of the last world war. As
struggle for influence, commercial and political, over the non.. hostilities progressed, America came out more and more openly
commWliucountriesouu:ide Europe and Nort.h America'. Thus for the ending or colonial rule. Press and other public propa-
suc.:c.:int1y does ~wri ter in 1'ht TUna expose the true character ganda harked back t.o America's own fight agairu1 coloniulism.
of tbe ideological otruggle between monopolies. Leading this T he rcrnanbranoe was linked in people's minds with d•e bud-
ideologiCKI struggle, b<cawe she leads the inter-impcrialiSl ding nationalist movements that were bringing overt pressure
ttn•ggle, is the U.S.A. As the world's leading imperialist for independence around the g lobe. W:n·torn Europe would
po11o·er, America lay11 5ucccssorclaim to the so-called ncua which provide part of the answer to America's need to export invest-
the retiring colonial powen are said to leave behind as they ment capital and goods.; but territories newly released from the
give ' vtrf to nationalist governments. Vietn am and Congo are poUtic:;1l powtr of rival imperialisms would offer practiallly
vr:ry obvious symbols o f this policy of rabid nco-colonialism. virgin fields.
They are abo examples of bitter antagonisms between American A W>ulousgrowtb in American monopoly capitalism oceurred
and other imperialisms. According to Frana Obst!nXJJtur (iss:ue during the first forty years of the present century. United States
of of. June 1964), 'The dadl:est accusations are nutde by the foreign investme-nts vied with those of Europe, overtook and
U.S. against French bu.sine$S circles opernting inS. Vietnam. surpassed them. In 1900, American private: foreign investments
, •• American expertS in Asian affitirs •ss.ert \hat fl'(och planters were" sm21l by oomparjson ''.rith Europe's- $500 m. to Britain's
are not content with paying their mite to the South Vietnam $12,000 m. and Fr.mce's $600 m. By 1930 the groMh rate of
National Liberation Front. They will even lend assistance and A..tnt-rica"s foreign investment.s lu.d alrHdy overle:1ped those of
bide the guerillas pursued by the Covemment'J anny.' Dritain. standi.og at $17,000 m. ag2ios.t the latter's $19,0CMl, and
In spite of its policy of open aggressioo i.n many parts of the way ahead of France•s $7,000 m. America's foreign investment
globel the United &aces frequently poses as the •anti·colonial' position was supreme by 19+9-$19,000 m. against BriW.n's
power in condemnation of British imperia1b;m. -rhe pose i:s $12,000 m., the lcvd <~I which it had opened the century.
thin, and the mask O>ntinually hills, eYen often over critical France's level had 3unk to $2,000 m. The first world war
an1i..c.:olonialist resolutions pressed by the Afro·Man and eliminated Germany's foreign invesln\ents and reduced tho.se
socialist. majority in the United Nations, when the United of !'ran«; the second world war eliminated Gennany, Italy and
Shlte.s and Britain find themselves alone, or only with France, Japan. The AmeriC211 GoYemment, n1oreover, had added
Portugal, Sou1h Africa and Australia voting agaimt or obsta.in· $14,000 m. to its monopolists' Sl9,000 m. of private foreign
ing.'• In the laat nine years American investments on this investments. The Government loans 'are political loans rathe'
• Dn'tid Coltmi•l N'ey .,J, /'110-C~in RM!rit~, R. falmo Dutt, than direct profit-making invertmcnts. But they enhance the
lntmtluiofta.l Af&.in, Mote:OW, Aupt 1964. position of United States financc-<:apital, by providin: marktts
56 S7
~IO•COLO!rfiALI.iM NO:riOPOL'f CAPIT,U.IIW ,UID TR.I .ut. . ICA)I DOI.I.U
f"' owpiu• good• •nd hy incrosmc proliu of pm-.te Amtri<on "~ lured oo Americo and Bm.in. Tbo ...,..... ond pot<tou or
im~ in the: boa•owina cou.ntriet'.• The second world war the btr """' ...... ~ the ..au... ot the .....
pve c:xplosin mo:ucnlum to Amcricu> copiulUm lll>d hdp<d imporw>t bonk, the o..-bellanlr., ollltl<d over to the ocaopy-
it to i.nctea..~ iu OitiKU an"c•tmcntl lbd aporu of manu· ing C..... by Dr H _ , . J, Ab1, Hitler's despoil.,. of Yugo-
foctured goods 10 the colonial pi'Otci'V<S of Europcon lll>d •d avia. .-ho wu ..wd from the death to which bt- wtl
Japantse im:periali.sm. rn the decade 1938-48 Ammo'• share 1.'Undemncd first by dtc British and then by the American
or the imports into these ttrritories rose frocn J1 pt-r cent to miliuu)' auchorities. Gtrrnany wa1 being made ~Jc (or dH:
~~per cent. Her Mricnn trade i.n tbeperiod went from &150m. democracy of lts imptTialisl conquerors. The :\1arslull Pbm
to $1,200 m., o.t which fiau.rc it represented ahnmt 15 per ttnt was wed to pmh Amtrlcan imperi:a_Hn penetrations lftto che
of all Mrica's foreign omdo. fragmented Gernt!tn lndunrie11 and tinatlcial institutions., into
Amc:ric::an monopoly's appetitewa• whcttt:tl by the income of which it bought heavily. Large MJJnJ were abo handed out 10
118,000 m. by v;·hich it h1d profitcU from its .forcign invest· Frenth and Belgian minin3 c::oncems in order to tighten the
menu in the period 1920-18. The prospcc:IJ 111 1948 looked lonlts with .o\m<rian a opnabsm lll>d IIIJ>Il0'1 its domtllllioo•
.,..., richer, and pro>-..! oo. Brt"""' 1950 and 19;9 pn,'11e A.o eye aiJo lud 10 br Up< oo the ""'""lian tlw _..,
Amtriabl 6nDs imu~ 14,!100 m. in the de:Tdopil1g countriee ""-<:ir.g in Europe IIlii Alia. Before the opeuiDg of the 1950s
and mxk obrtt timeo u much. Net prolito came 10 $8,:100 m.. the cold.....,. brpo 10 hoi up. II wu felt t1w the thmll of btny
oo whldo "'" br .deled miDiont ot dollan in ondinl: profiu, Cermu. ccmpctition qcb hod inopircd the limitlltioou put
intm:sl oo ...,., fr~hl <lwaa lll>d other IID<Illuy. open- upon it by the victoriow imporioiUms could br cwhioocd by
0001. All or ohio wu helped alone by MOlSiull Aid (the dnwing Germany inlo IVOJltm slnlttgy ttd by greoter par-
Economic Co-openation AdmimJC:ratlon), born out of the ticipations from Unittd State• apital. Germa.ny"t posicion
roarriage betwcc:n the Amc-rOn. State and monopotr. Th~ in the metollurgical •nd chemical fields bog;m to change ••
dollar was brandiShed as the universal cure-me-qwd for that country w:tl drawn into the over-all p:tttCTO o( We!ltem
l~uropc, bringing fat super profi.u to its Amertcan owners. J.n dt-fenc:e.
the oonftuion and dcvutation le.ft b)' W1r, they were IO shp More mergetic explon.tion for metal and mineral resources
\lDobtrusiYely into the COl)' OOnlC'I from which tJ1e Eurap~ wn W'tdertaken in Africa a~nd elsewhere. Africa'• r.w materlalt
imperialins would be «!~eel out bo~ from. Euro~ •nd .au are ;m important eom:Klcntion in the military build-up of dus
territories overseas. American financial and i.ndmtrial capetal ~ATO countries, in v,.-hich 1re included those of the European
\Ued theopportullitywhldo ~·· poso-..-as weoluoeas offered O!mmoo Madct. Thor indwlrits, ...,..;.Jiy the s<noccic and
to dn.w upon iu r~ h fnl <Kl wv-rumcd £UftJPO, nucl12r faaorico. d._) Wa<lr .._ the primory ......w.
lhou&h no<oo the ame dept< u w.....n imperial"m aploited !hat....,. from the lo.o d.-·dopcd COW!Irica. Poso-....,. Ewope
the coloni21 and xmi-<Oiooiol W01'lcl. Tbo powaful Cennon IUSblined a prtearious ......... of bUc aupplics for iu mel
meullufiia!llld cbl'IUicol lrulls, Vcrcinigte Soahlwerke lllMi manu&c.ur... Bdeium nc<dcd roon: rich ora, Swc:dca more
I. C. Fatbeo, wen bmk<n down. The West Gttman Slate c:oalllld coke. ·which AmeriCI aupplied in mum for fine oru.
establish«( in 1949 came under a military occupation th:at Britain iad:cd pig iron tnd acrap, her coke was short and
con troll~ lts foreign nade. 1t1 fortagn policy ~d defence. Of inferioc. Both France and Germany bad bJJen behind in c:olte
thef•t.:tories which had eACI'Iped WIU'tlme destruction, some WeT( 1upplies. Production of l.omine ooal wu declining btctute of
ilism:mtlod. Many of Germany's belt scientists :a.nd technician• lack of equipment, German CO<ll because the Ruhr was pre-
• SH htnit~r~~ f~•liJ""' Pok\ IJP· 28-29. duci.Dg less. Invetttntnt ln industries '"''ith a high value pro-
»
NIO•COt.ON'IAI.liN MONOPOLY eAPITALIIM AND TH8 AWJIUCAN OOLLAa

duction', that is, tho mineral trantfonnation 2nd heavy similar purpose was establlthed twO month• later betWeen
industries. while prmoiding tho opportunity to in6uence the American bankers and those of Fnnce. T he hand of these
European economies and hence their polides towards United ~stablishments is seen today all over Africa in the consortia tlun
States' ideologiml domin.:ltion, did not give the tame scope £or :~re fut b)'i..ng a grip on the contint:nt's riches. Rockcfellu,
the quicker and lar~r profits that production of primary Morgan, Kuhn J.:.oeb and Dillon Read institutions; the big
product& in the emergent countries offered. British bank.sl &relays, Lloyd.s, Westminst~:r, Provincial, the:
The Point Four Progromme supported the Marshall Planners invemne:nt hou~ pivoted ~round Hambros, Rothschild, Philip
in opening up Africa to United States capit11l and its European Hill; the French bank.s, Banquc de Paris ct des Pays Du,
associates. Before the second \\"'()tid war only three per cent of Banque de )'Union Parisiennc, Banque de I'Indochine, Union
America's foreign investmenu were in Africa and less than five: Eu.ropCen Industrielle, Banque Worms, Cr&lit Lyonnais,
per cent of the oontint'llt's trtde was "itb the United States. Laurd Freres, etc., 2nd the leading German and Italian banks.
Fir estone inter~s in Liberian rubber aod small pa.rt:i<:ipations These and their associates are the financia.l institutions that
in South African and Rhodesian minet aocou.ntM for most of domiMtc the monetary and fiscaloccton of lllllny of the newly
the S200 m. iJ\vested in Africa. As the war pusbod into this indcpeodcnt States. They support the new indu.stria1 m'Oiution
continent, military bases and trade connections were estab- of automation, electronics and nuclear and spaoc development,
lished by the Americans, from whieh they pursued their greater i.n whieh Americ:o pl•ys the lead and whieh lllls "''tJ>t U.S.
penetrations after the end of the wor. E.C.A. (Marshall Pbn) imperialism to its present ascendancy. American group,s domi~
funds financed American exploration groups, sent in the bett nant in the miniog and ore proces.sing and finishing industries
colonial tradition to prep3re the woy for mining companies and are invoh·ed directly or through their bankers and fin1ncing
military expeditions. It '""'announced by E.C.A. in July 1949 houses in ventures with leading European producers and their
that 'American expert-S with ~'lar!ihall Pl.a.n aid :are probing financial backers. The fi.rutnce-capitalists who contrOl the lead~
Africo from the Atlas Mountains to the Cape of Good Hope for ing corporations in the ext:r:~ctive, metallUJlPcal, chel:n.ial,
agricultural and miner:al v.·c::tlth', and la(er on tl12t 'opportuni- nuclear and space industries of the wen are (0 be seen stretch~
ties for American capital participation were disclo~ io French i.ng out across the seven seas and taking command of the sources
North Mrican lead mining, French Cameroon tin mining. o( pri.IM.ry materials in Asia, Oceania, Auttralia, New Zealand,
French Congo lead-tine mining. . . .• An E.C.A. loan to Mines Centntl and South Amt:riat, and Mrica. U.S. investments in
de ZeUidja, a French concern un.der the ugi.!l of the l'Marroya C:m:u:L1. in 1962 went up by nt":~rly $700 m., mo$tJy for devt-IOJ>"
company, the fourth larg«t lead and zinc producer in the world, log iron ore properties. An additional $270 m. invm:cd in other
enabled Newmont :Mining Corporation (a.n American mining developed eountriea went mainly to Australia and japan. lAtin
and crude oil concern with SO per cent of iu inten:!U in South American Ut,·estntcnh of United States capital incn::a~ed by
Africa 1.nd Canada) to buy into the compan)' and .auu:tage its $250 m. in 1962. In the previous year the increase was over
operations. $100 m. The U.S. Department of Cei!Ullerce reponed that
Europe's post-w.tr in.nability was turned to United States' private American in,·cstmcnts and :uscta overseas readM:d
account in the: nc:w division of Africa. In the fnU of 1949, after $60,000 m. at the end of I!l62and advanced a further $3,000 m.
America had forced currency dcvalwttion upon the European in the first tix months of 1963. Private investors in the Unittd
countries, a committee of leading British and American bankers States added $4,300 m. in 1962 to their holdings of asset~ and
was fonned to push U.S. investment• in Africa and other pans invertmentB abroctd.
of the still remaining British Empire. A similar committee with Direct private American invC~tment in Africa increased
60 • 61
NRO ..COLONIALI&M MONOPOLY C:AriTALISM AND TUE Allt£R1CAM DOLLAR

~een 1!»5 and 1958 from $110m. to $789 m., most of it controls output by ha~ing the decisive voice Ln whllt deposits
dra\lon from profits. Of the increase of $679 m . actu.al ~· sh:dl or lh31l not be ·worked, and to what degree:.
money invc$1cd during the period was only $149 m., United MooapoJy allows tbe monopolists to manipulate the econo-
Sta~s profita &om these invesunenu, including reinvestment mies of other countries in their interests. In the case of bauxite,
of surpluses, being estimated at $704 m. As a resull Mrican for instance:, Mellon-dOminated Alcoa is soverei!;ta and has
countries sustsined losses of $555 m. U allowance is made for drawn into it• orbit tho other motjor producers, Kaiser and
gnnts for 'non..military' purposes, esthnated then by U.S. ReynoJds. Bc:awe of the tremendous cost of building power
Congxe11s at $156 m., ACrica'11 net total losses still reAched plants, upon which the, conversion of bauxite into alumina
$419 m. Official Ameriom srntistics put the gross profits made depend~, the exploitation of all known reseryes of this ore by
by U.S. monopolies in Africa between 194(hl)9 at. Sl,234 m., private c:-.apital wouJd defent the prime incentive of monopoly-
though other estim11tes p lace than at SJ ,500 m. Wb1chever way profit-ror the super-abundant production that would result
they are looked at, it requires no great mathenutical mind to would depress pricet.. Wen Africa is t:xt.-eptionally ricll in
make out from these figures the ahnost hundred per cent bauxite, but the individual oountries are not equally favoured
profitability on investment in M rica. with the power to develop rf:KC)urc:ea. Ghana is pro..·iding
The avid explorations that have gone on apace in the lut two hydro-electric power which onuld be used to oonvert alumina
or three dcc:adcs for additionaJ reserves of all the metals and in both Ghana and Guinea. This would be a welcome co-
minerals that arc important for modem industrinl suprem:lC}' operative effort within the framework of a unhed continental
have been instigated by the drive for monopoly, upon which economy.
supremacy and iu super-profits rest A recent example m:akes Another weapon that is held Ol'er the heads of the primary
the principle clear. Alcan lndustrie.s, a British :~ssociate of Alc:oa producing countries is thethre:lt of using synthetiealternati-..•es.,
(Aluminium Company of ~rica) through AJca.n (Aluminium and the repl.1cement of tnditional meta1s by others. Synthetic
Ltd. of Canada), according to a SUtt®y Timn headline (issue of diamood plants have ~n esta.blished by De Beers, the world's
18 October 1964), .wropped up ~the last of the foil'. Th:.tt is, monopolist in n:atural diamol\ds, by the Belgian company,
AJc:an lnd.U$tries p2id L5i m. to tW over the last indr:peudem MIBA, wbkh controls Congo's n:t.turol diamonds, the largest
firm (Fisher's Foils) in British aluminium foil m:aking, having supplier in Africa, by the General Electric Corporation in «he
alrendy swallowed most of the rest. This was done, it is said, U.S. and by Japan. The price of coppe-r was held down by the
to bring about 'rationalisation'. But i.n b«irdmom taLk it has m<lio producers on the London metal market at a period of
:anothc::r meaning, 'sewing up the industry'. rooes.s.ion in il3 nurket.ing because of the likdyuse of alum.i.niwn
Part of the objective of gaining control of industries and in its place for certain purposes, while plastics, on the other
new-found raw materials' sou..rca i:s to deprive rl-nls of thcir hand, arc frcquc;nt ly proposed as an alternative (0 aluminium.
we. The manipubtion of an:ificial Jearcity is anotber of Vast sums an: expended in research for neo.Y materials a.nd in
monopoly's tactics for maintaining profits. For three years until scientific invention of labour-saving machinery and equipment.
mid- 1964 the big copper companies were run.oln.g production Thus metals that are being threatened .,.,.ith
substitution are at
at between 80 and 85 per cent of capacity to keep up prices. the same time being devclop«i for a wider vuiety of finished
Steel production, too, was held back to something Hk.e 80 per goods. Such research projects and the rctultant re-cquipment
cent of alpacity. Exploitation undc.r imperialism does not, nor of factories and industries which must be done if the original,
v.ill, al\\·nys follow upon the finding of new sources of raw investment is to be justified, calls for tremendous capital sums
materials. Whoever monopolisc.s the major sources of supply which frequently can only be met from the assets of financial
62 63
M'I.O•COLOliU.LII.M MOI'OPOLY CI.Pif.t.UJ.M .&ND TNt: .UU:aiCA)II DOL.&.A.a

and io.~Uf'&MC atabiU.hmtnu. Conac:qUCDtly, bank• and msur· elforu to enlatae the impor11nee of their lhare of the ll"'"P
&DCC eompan.iet dominate lllldu.strial finaoct- aod •trci.te a IIC'fivitits. For aamplt, u a monopoly it wiD be in coatrol o{ a
Jaodi.oa role in the pu.!l for monopolin a=n<hncy. Tb< bomb compla of comp:anitl conntcted at rmny ~J with the pro-
and insurance oomtla.nies have been foremost in t.ho froct'" duction o( primary matcNI., thtir procening from the oripW
thlt bas brought monopoly to its present ptak, and it 11 their state risht throtJgh \111 lhc: tt.e, or trnnsrormllt,i{ln into. \'lricty
financi11l power that supporu the increasing move.mcnltow~&rds or !!Cmi..fu'lished and linhl•OO broods lrom lhe moM on.lin~ry
areater and greater concentration o( monopoly. article to tl1e moa;t Mlnplia~l.cd and delicate equipment and
Today, oompetltion;., thelhrust to socureaod hold monopoly heavy plant and machin<ry. '!'he mooopoly does oot reotria
0\-er •-bole imtu.strics ad tourou of raw matnialt hal intcoa• jtx.lf to a single riW material, though it will be pre-ani.nc:Dt in
fo<d to tbe point Where ~ ""' taliJlg plooe II a diuy r•~ one or nvo. Nor dots it rtltrict iudl to any puticular dtpart·
The Jtruggle ;, cnmJy 1tn111 and in the clin&-<lona bottle for """' of manufacture 0< entuprise that may he ancillary to iu
domimtion a tnt« il llftlli<'CI at critical poiotJ, by wbach bai<: ac:tmtiea, thougb here apln it may spccialix 1D cutain
infiueN:e is divided with mutual c:onsenL Harmony, bc:rtt.e1'er, lmea. Many monopobea branch into real estate and land
ia more apparent dwt rnl. Tht sr:rugg:Le ror re-di~n .is development proJects, as construction and con~ work
ptoeeoding aU the time, and the changes that take place Wlthln bring quicl< and hiJI> mum• and high rente. This fonn of
the combining organh.ations arc observed to be more tnd. more c:apit:nl investment 11 gt01'¥ing rapidly in th~ present era of
frequent. enlarging industrialiiAtion Cknd the growth of new towns, and
Preaeat·doy monopoly it highly Vllriegaud and spread ouL ext~d$ to largc-ICIIe a..griculture.
While it d.ra"'' iu strtnatJa from iu monopolist~ position, it is In Mriat the conaonium il making the most dnintt pene-
on the other hand ...no..oly ex.-.' to the thnc<n dw. !~«. • matioru. It cottcndo &om the monopoliotie anulpmatioru o£
multiple arg;ani.1m thot "t<tehex its limbo to extronny m Amcriean aod £urop.> fitw>ce.a.piW, porticularly those
diffc:mu directions. A fncturc at any one point c:.a lad to a eocnbioal .nthin the Eun>p<on Common Mart«, where
dlajunaioa whieb "'"> unbt.lance the ltnlctuH. AJ>d the financial <:oo10rtia have btaJ set up u the IJ'IOat tfrtd:in mans
mooopoly•s rivals ure thvays on the alert to rpot iu mort or profiting &om the comp<titiv< suuggl• that iJ ipinlling
exposed parts in order to deliver a blow th:l.t will t:n.tble the "'ithin this so-called unifyins organisation. The prime objective
most relentless competitor to inMuatc into the broken organ. it to rnonopohse Africu"•IC)llJ'0!5 of raw mnterir~h, not, u it is
Hence monopoly, having paucd through the atagtt of cutelisa- eleimed, to "taist the Af1 ic.n countries to devt.lor thdr econ~
Oon. c:ombine, trust and I)'Ddicate, is tod.a)~ more tnd more mic1. For the materiAls are carried off largely in their raw seat.e
ding use of a futthtl' P~"e oaf~. Tlllt i•. the or •• coDC:~t:Dtntea to enhance the productive output of the
conoonium, tluouch wluch rt umo at ~W~ tl><; n.W impc:rialUt c:ountrics and tO be rrtu.mcd to them in the form of
aod disatming the &IIOCIItU ..-bo are permrtud to JOill thi1 moot
...uhinc of impenaliot coatri...,.,... Usually in • cooaortium
batry oqujpment for ........,..<
for cat'T)'ing: the raoun:tl my.
industry aod the in&a•tni<tUr'<

then u a domirwlt party, oithtt dinctly oc throup (aod wrth) It is out of the revc.nue from the t:ndc in tbcx matenah that
aftiliates and asaociates. which enables it to dtrt tbc Jarccst the African countritJ &oolt to amass part of the c.pttal that will
inftuen« upon the off'Airt of the consortium. Funhumore, each make it possible for them to utilise thtse s:une commoditit:a in
of tho pll.J'ties co the conaorrium wlU have its own •rine of tho service of t,heir own development. Paradoxically, however,
1ppeodages or even a princ.ipal ~ding outs.i.dc .the con!OrtiUtJ?-· these precious COW\ttrs in Afrka'' futW"t lre meantime being
All continue the fight ouuad~, while those wtthin excraae their u!Cd to widen the economic gap between her and tllc highly
64 65
N&O-COLONlALIIM
utilised by France w waro the United States thnt ahe would
brook no encroachmem on tl1c cla.inu &he lays to the m:tnganese,
uranium and oil riches of this., her fonucr colony. Neglect~
under the colonial regime, these rCIOurces hnvc IQSWntd
5. The truth behind the headlines
inestimable w.luc t.o France in the struggle against the adVllnc;t:
of Amtrican imperialism in Europe in the new ~ or at.uttuc
rivalry. France sent in paratroopers to force the tssue of who.se
pawn Gabon would remain. United States Steel may hav~ t~
dominant participation in Comilog (Cie dt l'Ogc;»>u.e), , .. btch 11
working on che bed of the '\'lstly nch Franct'VIlle manganese
depo!its, hut France, through the Cic des M.ines d'Ur-.a.nium ~e
Franeeville controls the uranium field at Mounana, and ts
urgently oc.'cupied in the attempt to foil the aspirations of the
American oil bttOns to undirputed access to Gabon's offshore REALLY to understand what goes on in the world today, it is
peuoleum rt:aches. necessary to understand the economic in8ucnces and pressures
that stond behind the politieal events. The financial columns
of the world'• prtSs give, in fact, 'the news behind the news'.
Every few days we come upon such newsp3per announcements
as.: 'Morgnn Grenfell panicipatet in new French bank'i or
'Mrican Banking Group'; or 'Consortium g1in.s voting power
in Hulen' (South African sugar monopoly); or 'New factoring
company set up in c~nY.
Theoe m newspape< beadlin.. actually taken •• ...OOom.
However, when examined evm bridJy, the facts revol an
attenuated line of connectioo between powerful financial
groups that exert the most dt'cisive pressure upon the happen-
ing' of our time. The fl)Cts relate to the men and intenst.s
directly inYOived. or indirectly connected with the rearrange-
ments the articles COYer. Not that the full facts are ever
revealed. On the contrary, they are more aften concealed, and
it takes knowledge of the careers of the penonalitics and
groups which the articles link to see behind them the incvllable
direction of the reported arrangements and thcir intrinsic
meaning in tmns of economic and political power.
Let us lllke lhe item of lhe Morgan Grenfell pnrticipation
in the new French bank (Fituma'al Tima, London, 18 Decem-,
ber 196l!). Morgan Grenfell & Co. ncts effectively as the
London end of the important American banking lwuse of
68 69
HIO•COLClfULIIN TIU TIUTH IIMUtO nn. MIA DC.IIfU
}. P. ~!Dcpn & Co. "blch, in 1956, aln:ody.,...,..! OM;<binl SociCti G<nb.le "'" r..mded undtr 'I•J'Ol<oa t1w: TIWrd in
of the Bntish comp!Uly. It shouW oot, tbcrd'ore, aurpn&c w 1864. One of iu chid' particip2.nu ""II Adolphe Schneidl!'f, 1
to lcnm that the new 'contlnenmP bank in which Motf.tD member (l[ the Sclmddcr iron and ateel tm.pire. who WIU at
Grenfell is participating is called Morgan ct Cic.; moro elptei- the ame pcricxlaiJO one o£ the regtnu of Da.nqua de l?nncc.
ally since 70 per cent of the c::apital of 10 million new franc. Both llonquc de F11U1<e110d Societt! Gen~mle ha~ now been
is hetd by lhe Morgan Guara<~ty fntemarlonal Finance nationalised. Thia ~.. in clft:ea that dle French GoTernment
Corpontion, and 15 pt< o:nt by MorpD GreafeD. What obout has a dicoc:t intcreat in t.bt ne.t:wod: of tl.-c: llaoque Com.maaalc
lhe ramininJ I~ per oentl This is chnckd ~..... "'" Duu:h Aliiaine that Socittt GCntnlt boa .............
boDb-Hope & Co. or Anuttrdam and R. lllies & Zoonen of Nlliooali,..;on doeo oot .und in rhe way of tht -
Rotterdam-wirh bo<h of whid> the )torgm group lw had 1Jt0ciation ";th the world's mo.n powerful prin:te bartinl
c.lost assoda1ion over many yean. This association hal been iMtitutions, as the facts &i"en under the tide •African bank.lna
dra"-n even elMer b)• the acquisition in March 1963 of a group' (W<rt 11/rico, 22 September Iil63) illuotmte. The tille,
14 pt< rent in hoth or them by the Morgan Guaronty lntet· however, is misltoo.ing. There ia little that is 'African' ~bout
,.,;,,w Banking Corpontion, a subsidiary or Morpn the group, the body mainly concerned bang the B:mken
c:.....nty Trwt. . lntcmotionol Corpom;,n, • subsidiary of Bonkers TNII
Haw ..... this done! 'l'broulth rhe pordwe of stodr Ill Compooy, which ahara ..ith l\lorpn G......,ty Ttun tile
B.a.nkier--~e. a ~y that c:onJOlidated the ecch-itin commorrial bwin<oo of J. P. ~forpn & Co. Tbe orhero are
or the cwo Dutch banka, which, nCVM'th~t-lt':ss, contittue to do ~. G6lmue 1nd other unnam<d Ewopean 6nant:ial
busineu under their own nsmes. Thi' form of one in two iJ Uhlttuuons.
the accepted fonnula by whicl1 tbc great combinntion.t attempt TbiJ oombinacion o( Western banks, copped by the long·
to delude tl~ world about their compact formations. unued Mort,'ll.tl lntc:relll, is to extend the: fonnation of ban~•
OWnnan or M<><gan et Ci< is Mr Pierre Meynis~ •·icc· in j~n those territorit"l; where Soc~ct Gb~nJe has acquired
pn:tideot or Morgan Guonmt) TNot Ill Pam, wbose brotJ,..,., rhe 111rereru or Danque Commerci.le A/ric&ine, namdy, Ivory
Mr RaJn-<1 M.eynW, is • diKdOI' of lhe ~beque ~~'ormo. Cout, Sener;al, Cameroun and Conco (Drormilk~ Tbe
v--pr<Sid<nt of Morgan <t Cie rs rhe Rt. Hon. \ ucoont Ammcm Fedetal JWc,... Boon! hu civm its approool 1'0 rhe
Haroowt, K.C.M G., O.D.E•. a manqing cijrectOt or ~lo<pn Morgan c:xt~nsion, u b.ve the goyemmcntt of the African
GrtnfeU and ch-:1.irman or
four important Briciah i.murancc co~trics concerned. Comment is unneoc.uary, since we can
oompanies-Driti8h Commonwealth, Grcs.hWl Fire & Acci· n:tdlly accept the vie" of the tenior vice-presadent and head
dent, Gresham Life Assurance, and Legal &: General. of the international banking dc:panme:nt o£ the Bankers Trust,
•French African banking move• c:aptiont an item of rather Mr G. T. Davies, who hoppily annoWiced that participotlon
less thon eight W... in lhe Fi.a<W Timu of 26 July 1963, io these four nations 1\ill rubnantiaUJ iDcnue tbe scope of
,.bic:b informs w oborth- that 'tht oetWOfk of tht Banque Brien TNSC company'• acliYitia tn Africa. a c:ontiDeot ta
Commtn:iale Mriaoine ;;, Senegal, ,....,. Coast, Camen>un whic::b we are vitally i.otU"HCed.. Tbe H"Wa ite~n coodudet with
and Con&O Republic 1w boen ..un o•.., by SocKtt Geomle, the inform:rtion that Bwero fnternationol Corpom;,n has
Fnnc:e's :KCOnd llraen bank'. It is in the .aingte comment the equity immsts Ill the Uberian Tr.>ding & D<>'<lopment Bonk
newspaper allow• ittel£ th2t wo find the grist: •rhe amngcment (TI'IdtvCO), and in lhe United Bank of A/rico, Nigeria.
will result in A aubn:antW incrdu;c in the volume of depotiu The fact that another sugar consortium (Fr'tulncial r;,#,,
hdd by Soeih' G6l~'. 8 November 1962) bu DWllged to obllin o•·er 50 per oen1 of
lO 1t
HIO•COLOHIALIIM Tfll T&VTH IIH I!'fD THI. HI!ADLIXI.I

the ordiNry .M.ru and thereby the majority voting power in poration, 00 which Harry F . Oppmhcim<T b tO be found.
the South African IUpt monopoly ol Sir J. Hul<tt lc SoDJ Lord Baillicu ,;, aho on llnglioh Swuhh & Au.trolian Bank.
appcan. on the ourface, to be cntirdy. ~ted to the oth« Another dinaor or Swtdard Ban1t is Mr WiRi>m Antony
newsp:opu items " "< baY< alrcody oau~JDJJ<d. But let "' &0 oo Aaon. whose dose ties with the bankinc ~'Ofld •re seen in his
with our c:umination. dcpury ciWrmatl.ship of the National Dank and dir<etorahips
BdWid the combinotion of .ugo.r companies that bu pined on tbe Bank ol LondOG & Mt~Dlr<al, Swlclard Banlt F'UWIClt
aoccnclancy iD the Hul<ll mooopoly are mibl< tbe band• ol 1c Dndopmcnt Corpora1ioft. Banlt ol Loodon & South
cwo ~ South Alri<:on """"' i....mg and Wldcnnitins America and BW of Wm Afro. It b cen:aicly not tboer
.__, Phttip Hill Hip.on lc Co. (Africa), and Union eoincideooe that Loed Lultc or PaW\bam bas • """ 1rith
Aa:<punees Ltd. H. C. O..yton on tbe board of Albanu Goldfiddl and O«UJ>lCC
Harold Charlet Ortyton b the dominating penonttity in a directonhip on the Bank or London & Soutb Amc:rioa, oo
tbe Philip H111 c.h<'in of financial and invesonent companies, which Mr Actoft is seated. Nor can it be by mere ebancc that
b11od in London. Harry F. Oppenheimer of South A!riCil it Mr Em>OOd Cbarlea Barinz, fonner director ond London •am<
chair~Mn of Union Ac:ctptances. Among Mr DraytOn' a com· of Anglo American Corporation and 1UIOd1ttd with 1 number
pany appointments are tl10se of chairman of European & of other oompanie1 in the Oppenheimer group, is n member of
Cenen1 Corporation, Seoond Consolidated Trust, and director the family that operates the mercluant house o£ Bnring Bros.
of Midlond !lank ••><~ Mjdland Dank Executor 1c Trwtec Co., Mnd maintains tht closest linkt with the invtstm~nt "·orld.
Eagle Star ln1unmc:e Co., Standard Bank, ConiOlidated Gold Othrr important personages who gnaoed tho bou.rd of British
Fields of South A!ric> and Amanti Goldfield> Corponttlon. Sooth Alrico. Co. ift 1963 w.re tho late Sir Charles J, Hambro,
Mr Oppt.nheimer, arnGng his m;ore than ~enty comp;my P. V. Emrys-EY".uu, and Vboount P.1Aivem, P.C., C.H.,
appointroef\ts, i.nclude1 those of chairman of A.lric:an Explocavtt K.c.M.H. g;, Charles Hambro was the senior directOr of the
lc Cbcmieal I ndUJuid, Antio Arnericao Corporatioft of South Dank of ~•nd. He ebaired the b~ of the City of
Alric:a. De 11cen Conaolidated Mines, and Fir1t Union !ftvut· London's rnerebant banh, the J;176 mlllion Hambrot Bank,
mcnt Trwt. lie iJ a direc:torof African&: European ln'ftStmrot and pRsidcd aver Uoioo CorporaU..O, the South Alrian
Co.. Bordoys 8W O.C.O., Britim South Afriau> Co. and JninU>g filwt«, CJOUp which cmbrac<t nwnm>UJ Of tbe Anglo
Cc:ntrll .Minh\& lc Innwncnt Corpocui<m. AmWc:an iorcrat> auoeiatod with tbe HltfJ P. Oppetthrim«
Dtputy chairman o1 A.oclo Americon Corpontioo. it s;,
K. Aeutt, "'bo b abo a director of Briti.h South Alncs Co. """""""'
Th<> Standard Bank of Scuth Africa aop• up or><e ,...
and Swtdanl Bank. Co-dir<cto< .,;th the deputy clW"""' of 1m0ng the dlrectoralupa cf Lord M.olvan, which include&
AJ>a1o Amencon Corpo,..ion on Briti!h South Africa Co. u ScottiJh Rhodesia Finane< and Merdwlt Bank of Cmtnl
M1 RA>ben Annan, who oiu beside Mr D ..yton on the bolrd Africa. The last-named bank it a crcat;.n of the Rothschild
of Consolidated Goldfitlda. Mr Aroun oiJo bas the cliJtinctioo banking crouP• in which one finds Danque Lambert, one of
or being an extraordinary director of Scottish Amieable Life the important Belgian banks, some IN per cont of wbose
Anu.n.nee Society. lnterests are conoentrat:ed in Alri.ca. notobly in the Congo. The
A co~~<oKue of Mr o ..yton'o on both the Midland Bank and bank abo bas an interest in anOther Roth&ehlkl c~ction, the
tho bank'• Excc:u1or & Trust Co. is the Rt. Hon. Loni Five Arrows Securities Co., an inveatment houae operating in,
Bsillicu K.D.E., C.M.G., whn happens to be at the ..,..,. time Canada, and under Rockefeller mJlucnce. Mr Poul V. Emrys-
deputy 'ch:o<n••m of the Central Mining & Investment Cor· Enn" British South Africa Co.'a vico.pretident, is now
n 73
lnO.COLO)(I•LIIN T.l T&t:TB a£RIMD Till H&ADLIMU

pr<Jidmt of Oppenhcim<t'• OSJ*IIiv• AnaJo Am<ric:on Cor- Tho I•••""'•· "New ~ c:on>pa>y ,.. up to Ctmwny'
porabOD, ao4 abo upon that of B"!"bf' Rank D.C.~. A~ (Ft........U T'- 4 October 11163). hat a aupetfiaaJJy u>nocuow
on Rio T ·u no Zinc: Corpon.tioo bnnv Mr Emry,..J::vans l.D~ look. Howevu, the briefete p,nce at the tat takes us at OBOe
tht company of Lord 8ai1Ueu, iu deputy chairnan, ll.lld his nght into the world o( intemation:U banki.nc. for we. mert
associations with H. C. Ouyton. extensions of Britith and American capital thn ha\'O •timul:ued
Seven! of the leading Uriti!fh banks and insumncc cum- :tnd aupporwd an inttmstlonal factoring venture whlcl1 bu
parties and some of their European associates participate in the expanded. in a very short time acrou four continent&. The foal
Slandard Bonk. Iu cbainnsn, Sir Frank Cynl "-"ker, •"" 10 polnt h a Svtiss holding company, International Faa.ora AG.
repreomt 1be Bonk or Eugbnd, and iu viot-<hairmt~~, Sir of Chur. Iu nominal c:ap:lal it Sw. Fn. 6,000,000 (about
F. W. L<ilh-Roor, repret<r~IJ lbe ~uionol Provioc:ial Bonk. £490,000). II hu now nabliJbed actnily in Cemw>y, 11here
w. A.lu:ton's bsnllinc ,...a.,;.,.,....., almldy bfto oo•lincod • company, lDtem~tiona.l Faaon .Deuuchb.nd, hu bun Jet
abooe. H. c. Oroyton being• in !he int....U or his own up in coojunclion with throe Ccrnun banks, the Cbw eom-
6nancUl groups, ao wdl u lhooc: of lbe Mic!Wid BW and pany.n:taining 50 .... ornt of the apit>.l. or the ...... 20 flC"
~le Sw In,.,,...ce. Sir E. L. Hall Patch, a dirte~or ol the <><nt held by the F..nkruncr Bank, 25 per C<tll by 1\tmel-
tS
Standard Bank of South Africa who resigned al the July 1!163 rh~nid\e Kredithank Dr Hnrb~clc &: Co., and fi\'t: ~r cent
annual geneml mectingJ is 1 director of Commercial Union by 11 private bank in PrnnHurt, George Hanc:k. l.,.rankfurter
Auunnce Co. Sir C. S. 1-larvic--Watt iJ 1111 1o1.uociate of Bank's portion, howcnr, will be enlarged by the fact that it
H. C. Dray10n on Ji.ack: Star Joounnce aed lbe Midland Bonk. hao acquired a 51 P<< oenti!Ske in Horbadt & Co., by woy of a
He is chainnao of Coltoollcbted Cold Fidda and a dlrec1or of abate cxch.ance-
A-ncan Zinc Lead It Sm<hinK Co. of !he U.s.A. Tho heavy bankioc intemu hehi.od lhe int<matiGnal factor-
John franciJ Priclma ~>rinK' lbe """""'' of !he Commoo- inc '~ which hat afiJiatn in 8..-itttrhnd, Auatrali.,
weallb ~t Corpomlon inlo lbe t.nk, al wdl u Soulh Africo, brae~ and- Cormany, arelhe Fim N-nol
lho10 of Watminner BW, !he Bank of New Soulh Waleo Bank of Booloc, and ~L SomU<I & Co. of London. A holdulg
and IIUodrv other lin>ndal and ;,...,..,.,.,, coneomo. WiliWn company under &unuel inftuenco, T ...r K...,t!ey & Milbourn
Michael Robson a& vlce<hairm~m of the Joint Eott & Central (Ho1dtngs), is a third. Tho Firtt National Bank or Boston,
or
Afric:an Board the SIOntiltrd Bank, brings tO bear oil thoae onoe fmnly inside tJ1c great Morgan firut.nda l empire, has,
vested interens joined iu the: Uoard. while he reprtJents aii'H.."C 1~55, oome inen:a~ngly under Rockcfclle.r inJlucnce,
tepmtdy the inve11tJi\MU of' the finance holding, merchant, though 1t sti.IJ has !!iignif...-.nt tiea with Moq;an. IL ja jvinOO
lhlpping and plant>tion c:ompani.. of lhe Booker Bros. "·itlt Chase Natiomt1 D•rtk (Rod:cfdler) in the Arn.t"rian
M.cCoa..U group, •hich hat a mooopoly grip upon lbe (h....., F'm,_ Corpontlioo.
ecooomy of Britioh GuQna. Charlet Hyde Villicn LoldJ • Clvinnm of M . Samutl & Co. is VU<lOWlt Dcontal a
bricl r... 11mquo BtJee Ud. and s.m Life Atnarance Society. tlim::to< of tltc Roducblld cnation, Alliucr Auunnce 6,.
Bantlue Beige Ud. is lbe Loocloo ..Wet or a....... de .. ao4 ill aftilia<e. Sun Allionce lnsunna:. Chaimun of both lheae
Soc:i~i GCnC:rale de lklciclue and controls in iu turn, among Lnourancecomponicsu MtT. D. Barclay, adirt<loror Uattbys
othm, llanque du Conao Belgt:, Belgian-An~trican R~ Bank, Ban:lays Bank (t'nncc) and British Linen Bank, a
Corpontion, Belgian-·Ame:dc:an Bank&: T.run Co., Contmenta.l Barclay• Bank affiliate. ,
American Fund (Ameri-fund) of Balumore, U.S.I\., and At the beginning of February I !J63, the Firat Notionnl City
Canodafuntl Co., Montreal, Canada. Bonk of New York, through fntcmational Banking Corpora-
14 7S
MIO•COLOtfiALIIN THI TIUTU Uttl!'tO TKI HUOLf"NII

ti<>n. in•tituti<>IU controlled by tho Rockd.U.. inttrutJ, bolll!ht army, navy aadlir force, in the dirlornat~ KMoc, in policy-
a 161 per cont •hare in M. Somuel & Co., rq>ra<ntocl by makinc bodies and in lnt.cmlltion..~. orga.niwions and iD.nitu-
600,000 orduwy W..., at a cost of £1,900,000. F'ltlt Naliooal <ions throu&h which the choocn policito arc fiherocl on 10 tho
City pl.occd tho chaitman of iu .....,.;.. c:ommitue, R. S. wwld-.
P..tins, upon tho Somu<i boon!. The oboe in tho ann injc<ud This P""""' bad altady reached 1 hiJh <noogh pitch before
by tho RD<kclcller C1f!i111 baa eo>blocl the Somud boclJng finD the outbreak ol the fint 'II'Olld ....,. to c:aD forth a numb<r of
to sp<ad itJtl{ into tho Eumpe:m :\wteo, where it baa joiDocl impon:ult studies of ttl growth and poscolialitXs. 1\m of these
the Ewopean bt.nktn ......:inion brought togeth<r b)' tho m>dia, l"'/'tri4/Um, by tho £ncJub Lalxnl, J. A. Hob:ooo,
important Frmch ~ Bmqut de l'ariJ et des Payo-Bu. publilhocl m 1902, and Fw..a C•J!fl4~ by tho A...,;.,
ThiJ il Group<m<nt d'Ewd01 pour l'Antlyae des Valeun l\lancut, Rudolf Hilf<rdin(r, publlahocl in 1910, Mre used b)'
E~c:ontt, whose purpose is to cmalise what is called L<nin as the main basio of his ttudy of 1"'//<ria/Um, which be
•uutitutional inverunem'. detcribed as 4the hight:n qt. of capitaliam'.
Tho houltl of M. Samuel bas also been placod in oluorge of It t:ame at the Jtage at which competition tnnsfonncd into
managing IIJlotht':r Common Market organi.salion, don~ciled. ln monopoly, the to-Called COfftbt'nafi'M o( production. that it to
T.ondon, "New Europeill'l & General Investment Trust, m wh1ch say, the grouping in a single ente'l)rlte or different hnmchcs of
it iJ ll.'I!Ociatcd with Oanquo l.ambert, Banque de PnriJ et del ind\lstry, tOO monopoly itself bea~mo dominated by banking
Pays·&•, the prominent Germon banking hcnac of Sal and finance capital. Ltnin'• study Wilt written ln 1916. Since
OJ>P<llheim & Cie., the Dutch banker., Lippmann. Rosenthal then lht: dnminatiou o( financial monopoly h11 spoeded up
& Co., tho Crcdito I1>liano of Italy, Banco Urquijo of Spain ttt:mendously.
and Union de Banques SuiU<> of Switt«laod. How is it possible that capibtliJJn, rooted in free enterprise
We may appear to have gone at some length into the and eompetition, has arrived tt • tC~ where competition is
intricacies of the financial and economic. interests behind .omt being eroded to the point where pynnUdal monopolies exerclte
in.noceat ·lookina headlines. Yct th~:X: arc in fact the mcrut dicauorial rights/ The pcmibtl;ty loy in the very faa of free
cliroeti<>nol indication• of today'I tnnd of ..,...tightminc linb entt:rpri!C: iudf. The spur or c.omraitM.Jn lccl to Un+mtion on
bctw- a abon liJt of incrocllbly powerlul &""'~'' that domin- Je'l'er.l1 places. New mac:IWxry w.u dfflJCd 10 i.ncrta.te output
ate our Jjy., on a ~ oe>le. The wl of !>king their deailocl and profu, lioctoriea grew luatt· Small uruts becun< unprofit-
· -Wther iJ tho main .,..._ ol thiJ book. able and,...... eithu dmen out or swallowocl up by biger ones.
N~, ......, thit brid ~u provide~ illumio· Rail oommuniation impt'O\-.d thotnbu1ion and better ooran
ati<>g evid<oco of tho sapeotinc: inuriodciog of firuoncial tnnsport Jtlmulatocl ....... trade and the bru>gins in or
monopoly today. What we obsen-., abcm all, iJ tho c:orullllt foreign nw matttWL
penetntiun o! • few ba.nlUng and financial institutions into The pint $lOCI: eompmy tba1 <neotJ.ra&<d the ifO""'h of rail
large indmtrial and comrnc:rcial undett:ak.ingl, creating a chain rmd oc:ean m.nsport l(:n·ed as a forcine inftnlment for b&nking
of link.a that bring tllCm into • connective rc.btionshlp ll.l.lki.ng amd in.suJ"'lllCle pwth. :iew compo.ny lawt auistcd ita: cxttn•
lor domination in both national and international CCJOnomy. P(m to industrial and commercial enterpriaet in which t.he
The inRuencc: cnr<:ited by this domination ia a~rric:d into indh1dutl investor•s ri1k was lcuened by the limitation upon
politic• and international affairs, to that the intcrcrtt of the his liability. ,
ovcrridjng monopoly groups govern national policica. Their Competition moved on to aootht:r level. Companies that
rcpracntativos are placed in key positions in govc.rnmcnt, possessed large capital or wcre able to call upon it on their own
76 • 11
NIO·COLONIALIIM TNI TIU'JR laHUCO THI Ul401.11fll
MCUrity ~ oble to wield m unequal u.a-eo .....,., ......U. aadwrrial toe! ............a! en«rprita to wlaooe capital they
..,... l'nllill ....,._ hil>&<d to the efunioatioo ol """'J'<'ition. hcaorily a>ortributed.
The ...,.,... exparuioD oE iDdusuy 01 the mel of lalt centUlJ' From naiclallemen, onpwly perlormillj; the role of &imple
and the ~><sinning of the P"""'• wu _ . n o d by a nop;d IMilqloodcn, the ..... grew into flO"..-NI monopola...
conctn.tndon iMo ever- 1:att:u eotetprisea. lmin: at their cornmond almolt the wbole .,...,, of produc·
Combination of produdion was c:l\abbJhed as a cudinal tion 1nd of the aources of nw m1ttrialt of lhe gil'tn country
feature of capitaUtm. Fums that had~ by c:onoentn:ting and in a number of countrie11. Thit tn~nsfonmtioo of oumeroua
upon one function of :an induruy rpread intu a group eoterprise humble middlemen into 1 handrul of monopolises rtpresc:nts
th:1t rt'J)~Rnttd the consecutive stages of n w materials pro- one of lhe fundamental prooe.11~s in the growth of c:apit.alilm
cessing, or were ancillary to one IUlothtr. T rading l1ouses Into capitalise imperiaUam.•
extended their activities into distribution and then into actwl Union wa• e&tablisbcd be-tween the industrialist and the
production of C..Ushod goods from primary materials produced bankc:r, in which the Lattc:r dominated. In the U.S.A., for
from pbntation.J and mines they acquirul in oveneas territories. instance, the United States Scet:l Corporation, which -..--a• an
lliffen!in&. in his clwic work on the wbject, FU..U amalg=otioo of 11<\"eral pant mel fimu colltrOIIiDs b.!f the
C:IJ/>flal, explains the RSJOru behind this proem: stoel production ol the _,...,., was ccotrolled by J. P.
'Combination k\'ds out the Ouctualloru oE trade mel
Moo-gan'o buking iot....., bocause of the large ..,..,_
they hod in tbe iDdusuy. Wore the end oE the lint decode of
thcrd'Oft 2SSUfU m the combined. cntcrprixs a mon: stable
n1e of profit. Secooc:Uy, combimtion ha1 the effect of tbe ...,.....tannuy, the in<•·•·olutions of incha.stty and bonlr.·
ins had al,..dy takeo P'- to a high degree. In Germany, for
eliminatmg trade. Thirdly, it haJ the effect of rtndcring
inst.ance, slx of the higgut bank1 were rtpr~at:ntcd by their
possible technical improvements, and oonwequently, the
acquiaillon of super-profits o~r and above those obtained directofl in a total of wme 750 compani« engaged in the mOlt
diverse branches or indua~ry: imurao~, transport, heavy
by tht upure" (i.e. non-combined) enterprisea.. Fourthly, it
strc.ngthena the position ol thc combintd enterprises com· industry, shipping, mtaunmu, cheatret, art, publishing. etc.
Conversely, there aat on the bullrd• of these six bcan.kJ in 1910,
p~ with that of the "pure" enterprises, atrengthcns them
m the competitive struggle in pcriocb of terious depression, fifty..one of the biggest indwtrlali"t~t including Kn,~pp, iron
and steel magnate, a.rrna.rncnu manufactunr and d..irtaor o(
when the fall in pric:cs of naw matcnab doea not keep paee
abe po...,.ful H:unburx·An>tria.n shipping line.
with the fall in pri= of manubcturod eoo<IJ.'
Today this pcoceu his pe Y<rf much cleepeo-, and is
A• """""'!Oiy of industry and """""""" <Xkndod, the op~ iu roou more embracingly ""'l' clay. The six
rduu.., upon bonking "'''ital also i~ New ,_hocb oE c..,.. baaW included the four pnts, tbe D<oruche llonl,
proc.tuc:rion, tht: di";.sion of haorits •nd bulincs!a into dc- Dr<Mioer !bot, Dil<lOn<o Geoclbdwt, Commcnbank, all of
panmcnu, reteareh into the ponibilitiet of,_ materials toe! whido '-e grown..., mo.. powerfuL Alliod ...;th them today,
fresh mys of employing both old toe! new ones-all thea<, as in 1910, are the big Gorman indurtrial tnlsu and cartds.
wlulc they <YV~tually reinfurc<d monopoly and~ profib, Kropp, A. E. G. Bayer, llad.isdae Anilin & Soda Fobrilt,
called for a1pnal SWll3 that only tho btnlu and their associate• Ftrbwerke Hoechrt {the lut three the componcnu into which
in the insui'IM:C world were able to provide. Thus side by side the great J. G. Farbt>.n was broken by the allies at tbb end of
with the process of amalgamation of industrial enterprises went the second world war), the txplodves and armaments manu·
the concentration of banks and their penetration into the large • ~~. !Anin, p. 4$.
l8 79
NIO·COLOifiALIIM 1 tU liU'JH IIHtND TKI: liUDLIJfll

MCWity ...... ohk to wield"' unequal Wlumeo ......... - tndwtrial and ~ <DtcrpriS<S to - eapital they
oou. l'nlliu .,_,. IW>&<d to the <liminatioo ol CI>IDJ><tition. '-'ily -tribuud.
Tbe """""""' <xparuion ol iodusuy .. the ...t ollut centWJ' From middlc:men, onpwly p<rlormi!tg the role ol &imple
and the b<sioning of the pT<Knt, ,..., ......,.,.,Uecl by a nopid monqlcndcn, the banl• I""" into .,.....m.J monopobeo,
conctntntion iMo ever br£u eote:prisea. hiving at thcir CODli'OIInd almost the wbole memo of produc·
Combination of produ.dion was cst.abbJbed as a ca.rdinal tion ~nd of the aourcet of nw matnials of the gi\'tn country
feature of capitalism. Fums that bad b<gun by oonoontrating and in a number of oountric:11.1"his transfonmtioo of nwne:rout
u.pon one fW'K:don of :an indUIU')' spread in.to 1 group eoterpriae humble middlemen into 1 handrul of monopolises rtprucnu
chAt rcp~mued the consecutive ttagc• of nw materials pru- one of the fundamental prooel!llt:s in the growth of c:apitalian
ces5ing, or were ancillary to ooe another. Tnding houses into capitalise impcrialiJm.•
cxtcndt'd their activities into distribution 1nd then into actml Union was establhhcd bc.twecn the industriaUn and the
production of flllisbed gOO<h £rom primary materials produced banker, in which the Lauer domin:~ted. In the U.S.A., for
(rom pbntationJ and mines they acquired in onncas territories. instance, the United Smte:s Scet:l Corpon.tion, 11rhich v..--aJ an
Hiffen!in& in his dauic wort. on the wbject, FU..U amalgamatioo of aa....J pant tt«l firms cootrollins h.olf the
c.•pilol, <IJ'Ioiru the I'CIJOM behind this P......" lied production ol the _,...,., wu oontrolled by J. P.
MOC'fpn's banking iottrttU bocause of the large .,...,_
'Combination le\..U out the ftuctuatioos of oncle mel
thcn:{Oft 2UUl'O to the: combined cnt.crprixs • man: sable
they hod in the iodunry. Before the <nd ol the lint decode ol
the fl'l"f.:80lt antu:.ry, the inltr•\'Oiution.s of industry and b&a.k-
nrte of profit.. Secoodly, combimtion baa the effect of
t:ldninatma trade. Thirdly, it h11 ~ dfm of nndc:cing ing had ah..dy taken pt- to • high clegroe. In Germany, for
intt::ance, six of the big:gett banks were rtprest:nted b)' their
possible technical improvement&, and oontequtndy, the
acquisition of super-profits ovu and above those obtained directors in a tolal of some 750 companies e~ged in the mOll
divcne branches or indumy: intunmce, transport, heavy
by tht upure" (i.e. non-oombincd) enterprises. Fourthly, it industry, shipplo.g, ren-1mnmu, theat,.e-s, art, publishing, etc.
strengthena the position of the combin«i ente.,rises com·
Conversely. there aat on the bollrdf or these six bcank.s in 1910,
pared with that of the "pure" enterprises, atrcngthens them fifty.une of the biggest indwcri.alist&. including Krupp, iron
in the competitive struglc in pcriocb of serious depression,
and steel ~tc, armaments nwnu(ac::tunr a.od d..i.naor o(
when the fall in pria:s of raw mattna4 doea not k«p pace the powecrut Homburz·Anl<ri<M shipt>ing lint.
with the fall in pri= of manulactured ii')OdJ.'
Tocby thU p<oeess hat pc Y<'rJ much cieepa', and is
A• monot!OI7 ol indwtry and ....,.......,. ext<nclecl, the spreading iu . - . ,.,... cmbraeins!J ....,. day. The sU:
rdta.fKX upon banking Clpltal abo inc::rel.M.'d. New mahocb of C<nDtlll banis indoded the four C""U. the il<uuche Banl,
produc:titm. the di\o;!lon of f.aoriou and busincucs into de-- Dmdoer Baot, Disoonto Geocnst:haft. Colllll><nhonk, all of
ponm.ntl, raearch into the poosibilitiet of,_ materiaiJ and whidl hr<e grown....., mo.. poworful Allied ...rth them today,
fresh ,...7, of employing botb old and n.,. oneo-all these, •• in 1910, are the b•g C«rnan indu!trial trusts and cartdt.
whale they tV<lltually rcinfor=l monopoly and cnlarg<d profits, Krupp, A. E. C. Bayer, lladische Anillil & Soda Fabrik,
called for mpttal sums that only the banks and their asooc:iates Fatbwerke Hoeclu1 (the lut three the componcnu into which
in the insul'lnce world were able to \'rovide. Thus side by side the great J. G. Farbcn wn broken by the allies at tb~ end of
with the proce11 of amalgamation of mdu1tri11l cnttrpri.ses went the sooond Yi'Orld war), the txploli:vt:s and armaments manu·
the concentration of banks and their penetration into the large • /.,.,..,.,.,., Lan.in. p.. 4.5.
7$
"IO•COl.O)ftAL.IIM t•a TaUrH 81:Rillf0 1'1111 •&ADI.1!'(U

It i.s abo 1lD important method of coototic:brina 6naocial capital from. induarial capital. When thi' wpanttion has
olipn:by. In boom period> the pro~.,. i~w. Durins attlin<d mojor proponioo• and the donUnarion o( fUWICle
p<riOO. or depression. the bonb ocq~ ho~ngt by t,>u~ capital bas bt:oomt suprt:me:, the ~of impui:a.liam has been
up small or failing bwincues. or engage 1ll thnr reotg~.ntlat:JOD reached This stage can be aid to h2ve been brought to
at a profit. Money is made by the bank• and d1o sphere '!f mlturity at the turn o! the century
control is extended. Financial assistance to land specul.ators as From free oompetition, th~ fundamental chamctcriatic of its
extended. Financial aui1tanoe t·o land specuhtlOfl j' aho a culy stag«. capitalism tit ita highest stage, hu pol&riacd into
meaoa of entrenching control and inflating profit11 in t.imc:s.o( monopoly, expreatod in •yndiettts, tru1t1 and cartclt, "itb
industriol expanaon. Ground ...,, monopoly mercco "ilh which the apitsl of 1 amall number of banks hat merp!. 'The
communianitlou monopoly, .U.:. .., impomnt £aa« ''"'an· tN.JU and c:anels bavo uwmcd an io.ttm1tional chii'IClc:r and
"'3 riJe in land pn- it p>d mearu ul COOltllllllicaUon w.th cbritled up the world 11111011e tht:msd>-es. MODOpOiy ""ends
town Clellues. to tho control of n:w materials and martetJ. for the postc:Aion
In his book M...,ty: A SlvJy of Bntis/o M-to/1 o( which, highly deY<Iop<d apiulism ~ in "" tvcn l1¥m
C..pit•/Uitl published in I~ by Lawr~ and Wulwt, ~ interue struggle
Aaronovitch hat shown how the financial raourcet or Bntlln At its imperialist ltlge, fin.anoe c:~;pital's prlm:a.ry need ;, to
ho.ve become concentntttd in the hands of a small nwnber of ftnd spheres of oversea• investment whkh will return profits
big bmb and fi.n;mci~&l iruthut:ions. Becween them, the •nig lit a. greater rate than c:nn be obtained at home. 'l'hc export of
Five' bach t"Xt"rci~ immense power. In 19!U Wir 147 CIJ>ttal, therefore, becomes the dynamo of imperialitm wh.ich
ditedors held I,OOA din:ctorships of which 299, jull under • tuma the export of <:Omrnod.ities and lcadt to t.he a~p1ure of
tbinl, ...... in othn- financial institutions. or theoe 299, a; colonies u the .....,, of ......-ing monopoli>t oontrol Upon
wt"l't' iD other bukt aod. d.ixowu companies; 117 wt"te in !hi. caJilQmic proeeso iJ lnu'lt th< political iclooloc:r. the non-
in_,urance mmpanit"s and 91 in invutmtat tru1t1 aod fine:ace ca>DOmic: supentrut:rur<, that ..Cwes the b•u~ (.,.- colonial
curnpo.oies.' (p. 49.) . conqum. Hilftrding apt"UUaf this ideology in a li.na:lc concise
'Talk about c:c:ntralltationl' wrote Knl Marx in Ct~Jtdal «ntence: '.f'mance capital does DOt want liberty, it wants
(Vol. 3, Ch. 33): domination'. Poueulon of cok)nies gio.·es a prantee to the
financial olig•rc:hy of the owning eountl)' of the monopoly of
•·rhe credit system, which has its centre in the ao...called actual and potentiol IOUJUt of raw materiala o.nd outlet• for
natton:al banks and the great moneylenders and urur~ra maou&ctutcd goods.
about them is an t.nMnOUI cwtraliution, and giv~• to this
cbu o! pantitH • fabulous power • . • to i.nt.erftre '\11--it!'
O<tual production in 1 most ~ ~ this
gang koows nothinc about produrooo and hu nothing "'
do with it.'
Hegemony of the money institutioru ovtr i.ndwtry is
anured by the vatt rescrve.s built up out of the \'lrious ways
by which capit>l i• odVllnood to indwtry at high profit and
draU"n from it through holding companies IUld intcrlock.ing
direcrontes. This process ~phuises the separation of finmce
82 83
 I"JliM.4.RY 11-IOUII.C I!S A~D PO RE IC N tN T I! R!aTa

which went on in lesser dcgn:c in both Eam:tn and Western

countries.
The general forec::a.st is that this tempo of production will be
6. Primary resources and maintained. A& it comes from Western sourcet, it makes little
allowance for ~ntion of Mrican usc of pri.m3ry products,
foreign interests and envisages a con tinU3.0ce of the present flow as between
developing source countries and h ighly i.ndustri~ised usen.
Kor does it Ulke into account the likelihood of a repressive
tendency in Wettern economies that ca.D certninly affect the
demand for raw materials. A publication of the United Nations
Economic Commission for Europe in 1959 estimated that: the
world production of ..tee! bctw«n 1972 and 1975 will be in
the region of 630 million tons.. Before the last war mosl
AMERJCAN and European companies oonnected with the world's of the Western world'!! iron aod rteel outpu.t was based
most powerful banking and fi.n:ancial U.l!tinations a~e, with. the u_pon local raw materials. The post·wllt ~ns. particul:.trly
oonseot of African governments, enten.ng upon tnaJ OT prOJecu smee 1956, have seen an oppos1tc trend. Something like a
d esigned to exploit new source:.. of primary produ cts. In ~me quarter of the raw materials (90 million tons out of 400
cases these are :allitd to long..term ventUJU for the establish- million) used in the world's metallurgical industries have
ment of certain essential industries. In the main, however, they been imported.
o.re confining themsclvu to ~ produ~on of material~ in their T he countries mainly importing thete raw materials arc the
buie or sccundar)' stages, w1th the Obj ect of t:ran.sfomung t~~ United State$, Western Europe and Japan ...lbe SoYiet Union
in the mill11 and pl-ants owned and run by the explotung and the developing countries have at their disposal sufficient
oompanies in the metropolitan lands. quantities of domestic raw materials. At the present time three
Africa hu f.ailed to make much headway on the ro:td to Ja.rge areu of primary mourc:es n.re being exploited for the
purpo:dul indwtrial dcvclopment bec:auschet natural resources benefit of the great producer countries. These arc Afrlea,
h ne not been employed for that end but have boen used for tl1e Canada and South America; in particular Chile and Peru and
greater development of the Western world. T his lms been. a lately Venezuela. Canada has become a province o f American
continuing process that bas gained tremcndoulS r»(lmenturn m 01pital inve;trru:nt, which draws oft' high profits and exploits
rec:mt yea~ fol!owing the invention and introduction of new vast resources of n.w prodl.lCtS for conversion in American
processes and techniques that have quickened tl1c output of p l-ants. South America and Mrie:a, besides offering these
both the ferrous and non-ferrous met.al industries of Europe advantlges, provide cheap labour and local govt'n:U:nt:ntal
and America in order to keep pace with the ever·incrc::as- assistance by way or duty exemption ror imported machinery
ing demand for finished goods. MiJitary preparations and and equipment as well as tax remission.
nucle:u' expansion have bad a considerable impact upon Surveys oow being carried out in Africa are discovering 1Mre
this demand. World output of crude steel abnost doubled and more deposits of valuable raw materiak Wenern investi-
itself in the decode between 1950 and 1960, from 1!10 million gators regard them essentially as souree.s of exploitation for ~
tons to 340 million tons. Even the regressic>n of 1958 whleh commerce and industry of their world. ignoring completely the
lasted through the following yea<> failed to halt the progye.,, development of the countries in which they lie. Robert Sauna!,
8-> 85
NIO•COLOMIALUM PIIM.AJlY II.IIOURCJIS AND PO.B I ON INTE R!:IT&

in an article in Euro}'« (Frana) Otau~r of November 1961 also made noticeable pro~s. T he T\•ory Cc,an in 1960 Wll$
survey$ the possibilities. of ~rica as a provider of fe"?us producing diamonds at ao annual level of about 200,000 carnu,
mw matcri:tb fol" the mdustr1es of the great mc:tallurgte:a, and operations have started in the m~>anesc ficld3 in the
OOWltries. He remind3 his readers that there are sourcu neighbourhood of Grand Lahou. Cak:ium phosphate is being
of these primary materials in Europe, such as Sweden and exploited in Seneg;~l, and cluminium and oxidi!ed sand provide
Spain, and that for J apan there arc tbc countries of A..Pa and some mining activity. The rruning of iron ore is under way in
Oceania. 1\'l:lurit:~.ni:l , where an Anglo· French consortium is planning to
He concludes that European participation is a fayourable produce four million tons as a first stage, to be incn::ascd later
facto r in starting off the exploitotion of Africa's mineral to six miUlon tons annu.'ll.ly. Deposits drC estitruttcd nt a.roW\d
re.sou~. but that the new productive capacities in course of 115 million tons of 63 per cent iron grade. Finds of very rich
dC'.o·clopmcnt should OOW\sel prudence and a dettiled examirut- pbosplute deposits in Senegal have brought a French-Belgian
elon of the selling possibilities. These mines are bo\Uld to stan financiaJ and mining combination into the country to carry out
off in a situation of lh·ely competition, which must bave its their exploitation. An estim.:tted 40 million tons of raw pbOS•
e-ffect upon price levelt. They need, thertfore, to be suhjected phates are e:\-pected to allow a production of J3 million tons of
to close prelimin:~ry examination before being cmbaded upon rich phosphates through the extraction of 600,000 tons of
:md must depend upon :~grccment bt:.·tween the exploiting coneentratet annually for tweoty years.
«>mpan;es and tM host States \\'hic.~l\ will gi\·e the fonner a j wt Phosphate3 have abo been foun d in Togo, which an: t.o be
return s.nd the b.tter a mbk ~I regime for the functioning exploited hy a cont.()n-ium a~"'d.ated ~ith tbe R.anque de P..trill
of the 'h..1.rmoniscd exploit11tion'. Tn l'hnrt, the governments of et des Pay&·lla3 and e5tahlished mining companiel' h:wing
the new St;&tes are seen in the role of poiH:emen for the banking connections with the SociitC Gblir:tle de BtJg;que. M:.nganeu:,
and industrial con10rtia bent upon continuing the old imperialist uranium, oil and iron ore finds in Gabon have brought in
pattern in Westcm-Afric:an relationships. T he 'stable fi.scll similar consortia fo r their ~loitation . Cameroun produces
regime• they will guarantee out of 3uch exploitation will, little from m.i.n.ing beyond .some amaH amounts of gold, tin and
according to Robert Saunal, be bas.cd on conditions of depressed rutile. T hough there has been no effective change ln Mllda-
p rices ari3ing from acute competition. ~r's position, there have beett discoveries of un.n.ium,
There has been a considerable increase in the production monozite, zircon, chromium and other minerals, whooc exploi-
of primary matcrillls in Africa since 1945, under the tation ill being investigated. Iron ore finds in Algeria are
stimulus of post·w:tr rebuilding needs throughout the world, estimated at 100 million tons, and we have been hearing a good
and the aigencie-.s of co!d:war stock·piling and anname.uu deal l:ltely about the oil and gas resources of the Sa.h:tra desert.
requirements. Another drivmg factor has been the revolutwn Algeria's fields are now producing at the rate of 450,0(X) ba.rrels
in productive mtthods and m:anageme:nt. Tlae surge o( a day (about a third of those of Iran), and Libya Jus reached
colonial peoples towards ind~pt-nden<:e must also be acknow- 150,000 barrel$ daily, with the anticipat~n of achieving 600,000
ledged u a force contributing to the ex.te11sioo of raw materials barrels a da)' within the next five years. ln Algeria's .sector of
production. the Sahara finch o£ mir·tc:rals at T indouf an: cxt'et..1.«.:d to prcxluce
In some cases the production of prima.ry materials since 19·l5 50 per c:em iron.
has multiplied scven~l times, and in most cases has doubled. The following fi8ures, t:;,ken from UN Statistical Year·bookp,
T he sttnt in Guinea show$ much change, following the dit- illwtrate the great rise in output of minerals in Africa in the
«>very of deposits of iron and bauxite. Diamond mining has po,st•·war period:
86 87
MI.O•COI.OMI4LIIM f'1UU.1Y 1atou•eu .UtD POaaiC!'f tNTU&Sll

,,., 1959
•IUch is now r..eriJbly ~,.,.. 10 opeD up in Au.ouaJ ...
•h<re the ....,. eompou>ies, in oJu.- ,..;th AmaXm and ooho<

......,...... 1uoci:atcd inl.ef'ests. 2ft patUDOWlt. The ~ re!::nionship is

I

<- > 1Mi.tn' ! 7,164,000 borne out Cftt\ &o the Damn or na.Ua., puti..:Warly ill C.nad•,
Cool (Ulna} 178.000 ~ "bich (rcqumtly dupllcrtt thole aho to be {ound in South
Zmc (COM) '100 64,700 A(rica and the Rhodelia~.
Atric:a'!l po!l~uion of lmh.utri.d tllw materials could. if used
Cooro(Lco.) Diamond• (cua.u) $,17S.OOO 14,854,000 for her O'A' n development, place her tmOng the most modern·
(19·17 Rau ..l itled continents of the world wichout rccour~~e to outside aourcet.
Copptr {•on•) 280,000
Iron ore, mostly of high quality, is to be found in gigantic
T•• (ton•) 9.337
quantities near to the cout where it can easiJy be shipped
Coppu (1011.1) 197.000 ~,900 abroad. lu for bauxite, Africa'a utimatcd rcsem::s are more
Zinc (to••) 1\1<00 !10,000 than two-fifths those of the ,.hole world. Tbcy are twK>c thoJ<
of Aunn.lia, w.IDc:b arc placed 'COODd. Cw.neaalone iJcstirutcd
Ma~ <-l )00 29,500
to oontain depoJils equd to thooe o( tbe ...hole or Awtnha, thst
Cool <- l 1.669,000 S.73&.000 it, ovu 1.000 million ums. Ch:aaa u tUd w haft reserve~
au- <-> I I JOG 236,SOO toeolJin« fOO million toru. Sudan, Cameroun, ~ and
(19J8"'""') Malawi .,.. other koown .,.,... or oonsid<rable d<pooits, and
Aol>coo>o (COM) )1,000 108,600 tbe in•escigo.tioo or probable .... 1'\'..
is proccoding in
Moz::unbiqUt, Sierra Leone, Portu,guete Guinea and in other
Sovtb Mriu C.ld !kr-l 6U,108 pctrt• of Mrica.
Di.u'IIOI'Ids (<anti) 2,838,000 Among the hue materials essential for the production of iron
-
·rhc highest nt.e of inoreuc i1 in Snuth Atria, ·where a
;~u<J sH:el, nung:mese has n place of high importance. Beside>
being ua«l for alloying with pig iron in the manu&cture or
production or 624,108 kg. of gold makes tllc Republic the spec:i~el stee1s, it is used in the chemical lndut-try. For cenain
or
produttr balf tbe world's suppliu. "" output o( 2.838,000 PU.I"JJOks, undu prescnt-d•y pr'OCicPI:.t, mangmt":toe is irre..
canu of ciWnood.a in 19:>9, about fO per cent o( which wece placeable. It is in a)nstant we at the rate of 18 to 20 kg. to a tnn
can ......, puu it third afur the Conao and Chana. ..t.ose o( steel. Tbc So.ict Union and Chin& ""' prac<ically sel(.
outpUt u almoJ1 mtirdy of iDdwtrial diamonds, though the Nfficient in the supply of tlus cucnti&l buic material. Tbc
YOIU<: ,_,,'«!,beaux: of its contn>1 or the llldus:ry lll1d the other 3tto1 -Jd Jteel prod~an, the United Swa, Western
number of can dwuonds, is rebth..l) gr<al<r than that or Europe and Jopan, do llOC hiYc "''''"'Ciable quantitia in their
Chana'o. She abol...U in the production or chmr.ium ore and own tcnitoria. ~f'hcir prindpaliOW'CCJ of supply lt't Africa.
is tecond in tht output of le:ad from S.\\·. Atria. [,·en South lnd.a and Brozil. Of theaell!nca provideJ the gr<at«t quantity.
Africa'• uranium production of 7,000 tons, obtained largely Angola, Becbusnaland. Conco. Chana, Moroao, Rhodeoia,
from j!l)Jd and copper afunes, u way llh..W or the Congo's Soutb-Weat Mriea aod EcYPt have been tunong tbe producing
1,76l tont. countril'll for aome time. Ot.ben, hkc the Ivory Coast :and
Mining of o.ll kind1 in Soutb Mriat h•• retu:hcd " SU~ge of Gabon, are now being o.ddod to the lirt. ·
exploit Ilion which can be compared \\ith th"!tl or Ctmtda, and North Africa is the "-orld'1 greotttt producer of phosphate~.
88 89
 PJtU.UoJtY llEIIOURCII8 AND POREICN INTJ!Jt.lf!Tl
Nli.O-COLONI ALISIJ
which is now feverishly beginning to open up in Auttnlia,
19+5 1959 where the ume oompanie.s, in alliance with American and Other
associated intere:sts, 3re paramount. The close relationship is
Morocco Phosphate& {ton&) 1,654,(100 7,164.000 borne out ever\ u~ the name• of minc•f panicul:arty in Canada,
Cool {tons) ll8,00J .65.000 which freque.ntly duplic,te thote also to be found i.n South
Zinc (tons) 900 64-,100 Africa a_od lhe Rhodellia.s.
Afria'$ po.uession o! induslrial raw materi-als ooukl, if used
Con.go (l.eo.) Diamond• (cara") 5,475,000 14,8M,OOO for her own development, place her among the most mode-rn·
{1947 f'Bun) ised continents of the wortd v.ithom recourse to outside sourcc:a..
Copper {ton!l) - 280,000
Iron ore, moscly of high quality, is to be found in gigantic
Ti" {toot) - 9,337
quantiLies near to the coa!t where it can easily be shipped
abroad. As for bauxite, Africa's estimated reserves are more
N. Rhodui.t Coppu <=•l 191.000
15,500
539,900
30,000 than two-fifths thosc of the whole world. They arc twice those
Zinc (toM)
~ancttt (tone) 500 '19,500 of Australia, which are placed second. Guinea a1one is estimated
to oontain deposits equal to thOIC of the whole of Australia, that
S. Rhodnia C..I (tou•) 1,669.000 3,7$8,000 is, over J ,000 million tons. Ghana is said to have reserves
Chrome (toos) 91,300 236,5(10 tot3.Ui.ng 400 million ton.s. Sudan, Cameroun, Congo and
( 1938 f.gu") Malawi arc other known sources of considerable deposits, 3.lld
Aabc:at.o• (tons) 51,000 100.600 tbe investigation of probable reserves is pro<W'ding in
Mozambique, Siem. Leone, Portuguese Guinea and in other
(kg.) - 624,106 paru of Africa_
South Africa Gold
Oiamond.s (c:~rat•) - 2,R.'l8,000
Among the bue m:rteri.:lls essential for the production of iron
and steel, manganese has a plaoe of high importance. Be~ides
.
The highest llltt of increase is ln South Afric:a, "'~ere 2 bt-ing used for :alloying with pig iron in the nunuf:acture of
production of 62+,106 ks· of gold Dlllke• the Repubhc the sptci.al steels, it is wed in the chemical induury. For certain
producer or half the world's supplies. An output of 2!838,000 purposes, under present-day prootnes, manganese i11 irre-
carnts of diamonds in 1959, about 40 per cent of whtch were pl...ceable. Tt is in constant use at the rate or 18 to 20 kg. to' ton
gem stones, puts it third after the Congo and Ghann, whose of steel. The Soviet Union and China arc practically sell·
output i.s almost entirely of indwtri.al diamonds., though the sufficient in the supply of thiJ esx.ntial batic material. The
value received, because of its control of the industry and the other great ·workl steel producers, the United States, Western
number of gem diamonds, is relatively greater than that of &n-ope and Japan, do not have appreciable quantities in their
Gbana's.. She :Wo leads in the production of chromium ore and own territories. 'l'heir principal sour<::es of supply are Mriea,
is tecond in the output of leld from S. \V. Africa. E'·en South India and Brazil. Of these Africa provides the greatest quantity.
Africa's ur.mium production of 7,000 tOtu, obtained Largely Angola, BcchWillaland, Coogo, Ghana, Morocco, Rhodesia,
from gold and copper slimes, is way Mead of the Congo's South-West Africa 11nd Egypt have been among the producing
1,761 tons. oountries for some time. Others, like the Ivory Coast and,
Mining of all kinds in South Africa bas reached a stoge of Gabon, are now being added to the list. •
exploiU:tion which can he compared with that of Canada, and >torth Africa is the world's greatest producer of phosphates.
88
89
XaO·COLOtiL.t. LIIK rauuaw aaooacu A.MD FoaaiOH trttansra
Morocco aloae export• even million cocu out o{ tome nine produciqg """"" to Owod-~ to join with the Bonr-
mi14oo """ coming rrom NO<th. Africa. The,U.S.A. ~ Te~xot... Jine. fu pbnu """bl• ~de l'Ouma to apon
next, with an export o{ four ll'lillion tons. Ntw prodl.ICUli iron principally to Gmtt Brittin, Germany, ftaly, Jldsium aad
countries \\hich have appeared aincc 1957 are China, with .orne the Low Counrries, and tl1a U.S.A. &tu:ee:n the out.JC:t o( this
600,000 tons in 1960, and Nonh Vietnam with ~,000 tons. ap1oitation and the t:nd or 1960, • total of 46 million tons o{
SencgJJ is II producer or aluminium pbosphattl her '!ulput nunc-raJ has boen extmctod. Oucnza's persoMelthen included
being about 90.000 tons a year, and Togo is now appnrmg on GOO Europesn and 1,500 Al~e<iwu.
tbc pho5phate market. . The cri!lenoc of imn orr .n the Sahu. wa~t fine indicated in
£.roo Met like nil, has booome one of the more m.Ynt mineral the Gora Djebilet repoa, tomc!IO milea ~of Tindouf,
diKowcries in Africa. North and w... Atria oona the main .. 1952. Difficulties or oinwioo .00 water supply ... obstacles
C<nttes. Among hicb-pde .... productn in 1960 ,....., Liberia io the way olaploitatiOG. NC'r<rthd<o!, a comnun.. c:oonpooed
(68 per""'' iron cont<nt). Anf:ola (65 per a"Ot). South Africa ol rq>resmtatn-.s of the '""' .00 oted indv.stnct of Franee,
(62 !'<"cent), Sierra Ltone(60 ~c;""t), i\loroe<:o (60 per C<'Dt~ ll<!giwn, Germany, It.ty, Luumbourg .00 the Netbcrlonds is
and Rhodesia (55 per cent, the mtnam~ •mn C?ntcnt for~­ buaJy investigating the pDUibdlticS, in COOJunC:OQD With the
grade ore). There hevc been discm.-enes o( haghcr q,uan.ta~ French Bureau d'lnvc.stiuerneou en Mriquc.
and quality since 1960. ~t il.con~ldcred that mo~t c:ountn~s•n ,Uberia's i!On ore ~c10urna are reputed to mnd at 1,000
West Africa, from rvlauntama tu Congo (Bra:r:z.:avt!Le) have U'()n 1rulllon tons an the N1.mbt range :md 600 million rona in the
ore deposiu. Enl:u;em~t of the production. in Li~a. C~ deposits near the Sicrna Leone border. The Nimba iron ore
and Sierra Leone u OO.a pb.nn<d. Depoau uc ost!'u. ~ •nine which hu been .-unk and is bt:ing mined by 1 oonJOrtiwn
pl-.! w>de< production <>< ... pb.nned for expl<>iWM>n m known u LAMCO Joint v...._ Entuprist (mcmbcn o1 the
:-lipU. ~. M•urit•;., G!wu. Gahon,c.m.tow>,s-p! a>tuoruum bemg L&berUn-Am<ric:on-Swedidt Mintrolo Com-
and Coogo (Bn=ovilk). Gbano's rH<nU. estimoted 11 abow pony .00 lletblebtm Seed Corponboo) is ettimoted to hne
a million total, ~ in the Shicnc area of the Non.hern Repm. t'etCltYa ol onr !00 millioD. toos ol bigb-g:Ddc IWtnatitc ore
and not e:uil) acauihlc, and have an avt.ntge lron contmt nf with an a~ imn OOilltflt of on~r 6.) ~ Cf'nt. l.ong-tcnn
46 to 51 per cent. Tt is proposed to exploit the d.epo•its for c:ontncts art in hand rmm German, Frroch, Italian and Ddgi.rn
domestic use when t.hc Volta lake l1 opentd up for i1ll.and 61celworks, while a considcmble part of the output will go tn the
ttiW.port. The Niger Republic deposits are eat:imated at more powcrful.l!ni~d ~atca Utthlc:hcm Steel, which hu a 25 per
than JOO million tons of 45 to 60 per cent quality. They 1n: at cent p&rtlcrpltlon m the \'CDturc, the othc..r 75 per cc.nt bt:ing
Say about thirty-five miles from Kiomey, at the mo"""'t t&km up by LAMCO. J..A.\100 i1 said to be • company obarccl
dio~t from .....U, Allwayo and porn. Tbeoe diAd•..,._ bctwcc:n the Liberian CO\'C:mment and forciP' cntc:rprite on a
aBect abo the cxploillltioo of the 1cnown deposit• in the IUndi 61\y-fifty basis. The non-Govunment ponicipeM io Laberioo
rqioo of Daltcmoy, ol68 p<1" ant qU1iity. ln>n Ore Company, a c:o....Uwn of AmuicaD u-.d S....wh
Algaia bas been 1n iron on: producer foe tome UID<. financial aod steel imcrau.
Exploiation w:u undemktn the"' in 1913 by • fn:nch mter· O.id ofth<a io the Swtdt~h mining compony, G~berg
prioe kn<n>, as La Socitt~ de l'O~enu, operounc ot 0~•!><1 " 'hic:h besides bavin& An imponant stake in the: ~teO
Oucnza in the south of Conttantme, dose to Lhc Tunman Nimbe mine acu as managint age-nt f'or this joint vt.nture in
or
border, formerly incorpurated m a department Franoe. The which American CQpital predominates. Gra.ngt-sberg, .fonn~rly 1
compllly hat built iu o"·n railway lines connecting ill two holding 12(28 of the LAMCO •yndicate, according to its
90 91
NeO•eOLOlUALIU1 P IUM,UT U&OUieB& At:D rOUIGl'f INTJilliTI

annual report adopted at iu annual general meeting held 3t Corporation Ltd., a 1955 British Columbia (Canada) rcgi~ra~
Stockholm, on 18 May 1962, increated its p:artici-pation to tion. Property claims in the Highland Valley of Britiah
1!i/28, giving it a majority dice of the equity. Columbia hold ore reserves of 3,304-,000 tons grade 1·20 per
GrangesMrg owns iron ore mines in Central Sweden, as well cent copper and 12,723,000 tons of 0·82 per unt grade.
~s power stations, fores.t and farm p roperties. It abo l~uilt and Additional claims are held in the provinces u well as a full
controls the Frovi-Ludviks Jarm·ag railway undcnak.mg, and subsidillry, Highland Valley Smohing and Refining Co.
operates tl1e Oxelsund Iron,.;·orks, turning out pig iron ~d Total output is to go to Sumitomo Metal Mining Co. L«L
h eavy plates. In addition it poss~se$ an? runs a fleet of ~htps gi'Qup, '"hich is responsible for bringing the property into
wllich, at the end of 1961, compnsed thiny·three ves;sels. and pnxluctiun. Tt ha.s bought 400,000 sh2.res in Bethlehem and has
had on order another four for delivery in 1962 and 1963: A Q1Hio11s on fun.her lots in connection with Joan promise$ of
s\1bsidiary, Akticbolagct Hernatit, works ~es in No.rth Ain~ S5 n1illion and an agrccment to contribute one half of the funds
and othcn include an amu and chenucal ente.rpnse, Aktie-. required for expansion. Swnitorno pro,•idt$ BetbJelu::m's vi<»
bolago:t Expres:;-Dynamit. The Sw~ G~vernment took pruident and two other din:cton, one of whom is from the
aver holdings which Grangesberg exerased lll Luoss~·aara~ prominent Tanaka family. The tint deliverie5 from Lhe Nimba
KUrunavaara AB- LK.AB, but out o( the p urchase pnce of mine were made during May 1963 and production of 7,500,000
Kr. 925 million it received, the company reinvested Kr. 100 tons is pb.nncd for 1965.
minion in LK.AB. . The Nimba iron ore meaks of Liberia stretch into Guinea
The value given co tMse Go-vernment--purchased hol~tngs where prospcding is taking place in the Nimba·Simandou
was almost twice as much J-1 Granges.bc:rg's fully pa~d-up region, about a thousand kilometres from Conakry, close to the
e:apitaJ of Kr. 495,800,000, and even without them its astets at Liberia-Ivory Coost borders. A West Europ<ru> bo.nking group
the end of 1961 stood at Kr. 403,719,000 in addition to shares representing itself as the Consonium Europee:n pour le
in subsidiary and other companies totalling Kr. 154,380,000. Oevdoppement des Ressources Naturelles de l'Af.rique---
The company's net profit for the yur was Kr. 38,787,251 CONS-4.-FRJQUE-is undertaking invc!itigations by contract
and dividends ab.sorbed very nearly the same :amou.nt ~t \'lith the Guinea Government. The group comprises:
K.r. 35,700,()((). Tu iron sales increased from 1,620,000 tons LR B:tnqut de l'Inclochine, Paris.
1959 to 2,560,000 tom in 1961. Deuuche Bank A.G., Fra.nldurtfMain.
Brthld1em Steel is a heavy invemnent spht.-re lor ~k.c­ lbmbto~S Danl;, London.
feller's profits from Standard Oil, which hu been pushmg to N«krbndllehe H2ndd·J\.f=tseh:tppij N.V., A.msterd:tm.
displ..:e British-Dutch oil inter<tts in the Far Rut. John D. ~ de Bruxelles pour la Finance tt J'lndUitrie-
Rockefeller the Third has made himself a specialist on the Far BRUFrNA-Bnwr~e)J.

Ea!it, with a preference for j apan, w~e~ h~ wa& a member of S.A. Auxiliairc de Finance et de Commercc-AUXJ FI-
John Foster Dulle-s' peace tTea.ty nussu:Ml tn 1951. He estab· B.-.1>.
lished the Japan Society Ine. for c.:ult~ra1 inter~ange. Pn;- Compagnie Francc>Americainc cka Metam. tt des
Mi.ncraa-COFRAMET-r .,.ria.
sistc.ot \'i.siu and preuurehave boosted Standard Oil Co~~any.'
facilities in Japan, Indonesia, New Guinea and I1;1clia ID ~il The Banquc de l'lndochine is closely a.!.sociatcd with the
production, refining and sales. The Rockefeller mterest. an Banquc de Paris et des Pays Bas, and has links with tho Societ~
Japan is reflected in tbe link v.ith ~e Sumitomo me.tallurgt~ C~trale de Belgique. Its original sphere of operations has been
group, which has been cemented m the &1hlehem Coi'P"r largely closed by its exclwion from North Vietnam becauS<: of
92 • 00
NIO" CO LOJQ' rA.t liM l'RiliiAltY IUOVI.CU AND FOREICiN I N'l"IRIITI
the socialist rtgime c-.stablish ed there, while in South Vietnam d.irt:ctors of the Manncsmann steel intucsts of the Ruhr. also
it haa now become subordiMtc to American finance. The represented on ano~hcr Cennan bank, the Dresdner, which is
Banquc dei'Indochine, which already had a foothold in Algeria, also engaged in a number of investment Yc-ntures in M rica.
ia turning more and more to Mrica, where it it groupOO in The Mn.nne3lll:IM steel company, one of the most important
several consonia, usually round the interests connected with in the German Ruhr, was established in 1885. It! chainn21l.,
the SociC:tC Gen.Crale d e BeJgique, the Banque de Paris ct des Dr Wilhelm Zanger, is a dirtetor of Algoma Steel Corpora-
Pays Bas and the Deuuche Bank, all leagued with Morgan tion Lt<.l. of Canada1 in which the Gcr111an interests were Unked
international interests. The Banque de l' Indocbine is rqm:- for some tim~ with the Hawker Siddeley group of Great
$C(l.tcd on the board of I.e Nickel, which ex.pluiLs a variety of Britain. Manne-sman it assoeiated in several projects in India
mioe-ru.Js in Asia and Oceania and has a substaotial interest in and elsewhere with Krupps and iu Duisberg affiliate Demag.
Compagnie Francaise des Minernis de I'Uranium. The late A. G. Demag: "''Orb in dose collaboration with tlte Americ:m
H. Robiliart was another directot on Le Nickel's board, as well finn of lUa.w Knox & Co. This finn which makes t:quipmcnt
a" J. Puernrai from Penar roya and Les M ines de Hu.tron, whose fnr steel mills and for chemic.:al, petroleum aud other industries
former prt:tide:tn was the Late H. Lafond of the llanque de P-aris falls "'ithin the Mellon tphere of interests. Hence it has link.o;
et des Pays Da~ These and other allied French and American with lkthlehem Stet:J, "'I:Uch ttssociatcs with the Wtsl German
interests, grouped around the SociCtC des Mincrais et ~~eta~ Steel indwtry, into which the MeJlon interests have increas-
Patino and Arru:rican Mctal Climax form the oombmanon ingly pushed. Both the Deutsche Dank and Dr<.dner Bank,
known u COFRAM.E'I', $CVCral of whom received Marshall \\ith which Mannes.mann ism closely tied, in alliance with the
Plan credits in the post·wat years. Morgan Guaranty Trust. have ooru:iderable interests in the
The Deutsche Bank, which has always concerned itself with Oppenheimer companies of southern Africa.
exploitatiol1 in'•estment in the less developed areas1 also hu Hambros Banlt (the late Sir Charlet Hambro was the
close n.ssociations with the B:mquc de Parit. Even during the link with the Bani: of England), Cable & Wirclcu (Holding)
wo.r the Deuuche Bank did not relinquish its role of colonialist and Oppenhcim~r holding companies have valuable interests
exploiter, but followed the German army into the conquered in the diamond, gold IU"ld other mining undertakings in
territories of Europe. Today it is busy pushing West German Central an.d Southern Africa. A merchant bank, Hambros
interertl in Mriea, Panama, Chile, Pakistan, Columbia and has long betn auociated with the Scandinavian iovtttment
Puerto Rico. It has floatt.-d loatu for Argentina., the City of Oslo market, and has in the past years Epread its activities in Eutope
and Notw".ty. It. 1m:~ n l•olding in the Pakistan Tndustrial Credit in anticipation of Britain's entry ioto the Common Market. It
and Tnvt':Stmc:nl Corporation T.td. It h-as acted as fiduciary added a subsidiary in Zurieb in 1962, Hambros lnvemnem
OOllSie lor goclJ con~'iiderahl e int.crnaLiunal corporatiotu as Company. Like nttny other financial institutions it has entered
Gen era) Motor!, Philip_,, Royal Dlltch Petroltum and Snia a growing field for fmance jnve,tnltllt, that of leaaing equip·
ViSoCOSa. The connectioo with Royal Dutch Petroleum oon- ment lO industry. For t.hill purpose fiambros t$t~bli,;ht:d
tinues Deutsche Bank"s aSJOciation with Ule pre-tint world war Equipment Leasing Company (Eloo) in 1962. It also engages
Mosul oil eoncession in the part of T wkey that became I raq, directly in the business o f importation and diMribulion or
while its activities on behalf of General :vloton nnd Philips motor can and commercial nhiclell from the Driti~h Motor
emp hasise the subse-rvient role the Deutsche Bank plays to the Corporation into the United States, through British Motor ,
Morgan interests whicb conduct the intcmationaJ expantion of Corporatio n-Hambros Inc., a joint fifty-fifty venture. The
these vast ramified orgQD.isa.tions. On the booed of this bank ait Brltish :Motor Corporation oovers Austin, M.G., Morris, Riley,
94 9S
~ &0-COLOM"r ALlAM PRIMARY RliOtiRCU AXD PO&IUOM l.NTJltiSTI

\Volseley motors and rubsidiary companies of the Nu.ffield and with the Thyssen group. Before the last war Thyllen wt.l
otl1er groups. Through its ac:qui.!ition of the banking firm of :associated with Krupp.
Laidlaw & Co., New York., Harobroa is scrcngthenin.g its The \Vert German iron and stocl industry it looking incren·
a$$0Ciations with important American banking intcresu. Among ingly for raw mate.ritls rupplies for use in Cennan plants. In
Hambros Bank•s many other interests is its connection with the other parts of the world where le:ss developed countries are
bullion firm of Moeatta & GoJdsmid, whjch increased iu nuking an attempt to indunrialise, they are aetting up tnnsfor~
holdings of buUion in 1961 from [.3,7!1J,IXXJ to £6,500,1X1J.. marion foundries and rolling mills to bring «1 secondary and
Another financial-industria1 group, beaded by th~ Bntu.h intenncdi.ate stages ores brought in from mines to which they
company, B.I.S.C. (Ore) Ltd., and including French, German have been granted concessions. Thus the Mannesmann affiliate
and American financial participants, is already workio' iron ore in Brazil, Companhi:. Sjderurgica Mannes.mano, is to ac:hic:ve a
deposits in Guinea at Kaloum, in immediate proxirruty to tbe crude steel capacity of 300,000 t.ons fr.om imo ores from iu
port of Conakry. These depo<its of 50-55 per CeJ)t ~radc ~rc mintt~les.s than 6ve miles from a JICW bla.st f\lmace it i~ erecting
were discovered in 1904, when construction of the railway line at Belo Horizonte. American capital has large bolding.s in the
from Conakry to Nigu was ~· Prospecting was c:orried out German iron and steel indwtry, in some cases. a controlling one,
between 1919 and 1922 by the Mming Company of Frtne!' achieved during the post~war American occupation of Western
Guinea. In 1948 a new company was formed to confirm pre'Vl· Germany.
ous findings. This w~Js the Compagnie MiniCre de Conakry, The More-n ban.ks led this ineursion into the West German
whose plant at KaiOUIIl is geared to an annual production of and other European heavy industry fields, using their European
1,200,000 tons, which can be doubled without any appreciable agents and associates in Great Britain, France, Cennany, Italy,
mcxli.Gc:ations of the aet-up. Akmgsidc its iron production, this Belgium :.md Switzerl:l.nd for the purpose. Among these a.'I.!JOC:i-
company is multiplying its income from. the establishment of a oteo is the multiple Rothsc.hild group, olready Banking the
complex of industries whieb includes the manufacture of Morgans in their SoutMrn African ventures. The British
explosives by the L'Union Chimique de l'Ouest Afric:a.in- section, headed by :-1. ~L Rothschild, hJls, in the words of one
UCOA. Participation in the Compagnie Mini he de Con~, commentator, the Hon. Peter Montefiore Samuel, a member of
which is capitalised at 1,500 mimon Guinea francs. 11 all the London merchant banking house o£ ~l. Somuel & Co. Ltd.,
follo"'' ': 're-es.atblished their ancient <»nnectioru with de Roth.s.ch.ild
30.50% Frhres•, which go back to the pre- Napoleonic days. The firm of
B.I.S.C. (Ore) Lc4.
Bu~a.u de ReeMrc:hn Gco&ogiques ~t Minieret 24-10% M. Samuel is itstlf linked with the B;a.uque Lambert of Bdqium
Ct.iue Cc:ntn.lc de Co-operation Ecooomique 8·70% and the Banque de Paris et tlc:s Pays Bas of France, all w1thin
Compagnie F~ dta Mine• d.e Bor 7o90% the investmc;nt ~bere of tbe SociCtl! cc;.n~rale de Belgique, in
Hoeac.b Werke 5·00% an investment oon.sortium established to exploit the European
Rocbtduld Croup 9·56% Common ;\1arkct. Edmund L. de Rothscbild aod the Hon.
Compa,enie Franco-.~rieUne del Mttoux et P. M. Samuel sit together on the board of Anglo Israel
des !\lincni.t-COFRA.l\1ST 2<15•/. Securities Ltd. De RotNchild, a director of two insurance
Vuioua 11·59% oompon.ies, the AJH.ance and Sun Alliance c.rea.tcd by the
Hoesch. Werko is a leading West Gmnao iron and stotl finn, Rothschild!, sits abo on the board of the British Newfoundland
associated 'lliith the larger combines like Manncsmann and Corporation, incorporated in Canada, which secured ?,ood
Pboenix-Rbeinrubr, thelut of whicll bas lately dfected a fusion square miles of concession31)' mineral lands and an additional
96 '.11
HI!O•C(U,.ONIALUW tiHtAaT a110gacu A:rfD f OliiON UI'TIUI'I'I

like extent of oil and cu con«JuonJ from the Newfoundland Soc:iicj Aoonyme d 'Hd:lcrpmcac en Ma..,.itanio-
Gove-rnmmt, ln l m. The: oorpontioo abo holds co.o.oeaion• HEBEJL\!A (copiW. 2~ r...,.. CPA~
Socift:e ~ de Tn.•u.portt Mauril:ltt~
on 35,000 .quare- mila in Labndor. The Jame de Rothschild
futtbu IMionu tile t-Td of Five Am>w1 S«urities Co. Lld., of sont-\M (captal: so.ooo.llOO clnna CFA).
To<OntO. "' wtuch Bon:lays Bonk and Motpo as!Ociattt at< And to prove that thoucb the mtn<t "'"7 chanse ahe oom-
int.,...td. The Hon. P. M. Samuel is a cli=tot of tile Sh<D JIOilcotl remain the same, the III&DICCIDMt of the mine will he
Oil bolchrc OOIDplll), Sbdl Tr&J>SpOrt ~ T~ Co. Lld., tJ in dwge of Peoano:ra-
wdl as of Olhc:r anvaun<nt oompames, including .ncnl tlllJidtt iJ tile lioancine orcooiaation ..Ultld willa the
Of"'rab"8 in Ccntnl Africa. such as H.,...-ood lnvotn\<'1111 industriol group comprising Femtmin; >nd the Deutoche Bank
Central Afrita (Pvt.l Ltd., on whlcb he is joiJ>Od by arautl•.,. woo coru:emtd ..ith ocrtain share inuoductions made by it
memhc:t of the f>mi y, the Hon. Anthony Gerold Ru~ooclli\d, during 1961-2. The Com~c du !.'hemin de l'tr du Nord
who abo sit• on the board a of other such ~:.·uncerns., a-!1 w~ll•• of comes within the in.Buenoc: of the Banquc de Paria ct des P1y1
publishing and publicity firms. Bas, u does Union Siderurejque du Nord de Ia Fr•nce.
B.I.S.C. (On-) Ltd. h abo includtd in • consortium, Socitt~ Gabon, whose timber has hitherto been iu main export. has
Anonyme ~t:l ~ti.nes de Fer de ~1.aurita~nie:-MJ.FEH..MA- ahown signs of possessing iron ore dep~itt since 1895. 1nveui-
cxploiting uun ure ~~ Fort Gou.t'Bud,l\huntarua. It 1S cslnnatcd h."'tkinl were arrjed out from 1938 by when wu 1hen the
that there iK " tninimum of 100 million tons of hi&h·gradc ore Frtnch OversetsMinins( Dureau, tranaferred later to the Bureau
of 64-65 J>t'l' crnl iron conttinorl in this property on the western de 'Recherches G~Logiquet et Minitre•, and joined by the
edl!" uf tl.- S.h•ra Pes<rt, and it is bcing prcpat<d to produoe Re:thlf'hem S1eel Company. The n!tultant eompany, Sociece des
an annu•l output M Ji"- million tons. The British group as wciJ Min~ de I•'ttde Mdwtlbo, w.u c:ttablilbed in J9l5, with the
u German tnd Italian groups baTe substantial holdinA'· bu1 major purpose of •crea1ing a gnat ~ntrt! of produaion capable
the: major interttt iJ held by a Jo'renc.h group ht:adtd by the o( MtiJying, at long t.eml, a pm o( the anticipated n«<is of
Bureau M.uu~re de Fr.anoe d'Outre Mtt. The following art the Westem Europe's ned inclu.atry and the: future requimnenu o(
pa.rticpanu in thi• Yenturt: Bcchkbtm Steel'. Thus, in d~ participation, lkthldwm Steel
B.L&C. (0t•)IA4. has • 50 per «nt bolding. Th< Olhc:r ponies to the und<-niling
lntall On: lnteDklll c~ Led. are:
11<...... 6cod c..p...... w. Bv<a.. deR«llacboo c..q,q.. .. ~­
Coc•rc.- h Chnail'l4e Fer du. Nord. a...q... "" Pam" da Pays Bat
C apoplo l'to•-1""-"l~FlM£1\. ~ Fo.....X.. pow rOu.......-coFn.tER
()maln-A.nu.in. Colapagnie Fi!'tlll!ritre & Suo
Rq!.bUque l•lnliCi'i" de Maritanie.. .... Campuy, ltOiy
SocM1U F•IJ\OW Siderurs:~a-FL."'\SIDER Gtnnan Coroortium of Mtllmbo (C"..r.nntn ttK'I
Sockta Mincnri• aidrru~ica-FBRROl\UN. induttfl') I0.(1()%
Unlon Sldtnu·aique du Nord de la. t~ra.nc.--US INOR. Freneb steel u~d\lftry 9.000/o
The comp1ny hat been atpitnlised at 13,300 million francs Jklii•n nttl industry 2-())%
CFA, and hiS lhc following affiliates: Dutch mel indu:Rry O·lO%
ijoci6t41 d'fu:oonaJ!t cc 4o Mt.nucmtion en Mtt~rl111nie­ The undertaking is ca.pitalised at 200 millinn franc11 CFA,
SA~1MA (oaplt•l: IIX),OOO,OOO f.-..ICa CPA). lllld on its behalf further invcsti&atioot have lwn unc:k:naken
99
JIIO•COLOJ!t U ..LliW PaUUJT JIIOO• cn AXD POUIC!'f J)OTI.UTt
lrr the tyadate stO<IpOd round tho BUJUU d.o Roclwd>es Uld deetnc.t dmu 1ft boiQlloonltN<I<d. It OOik tho Ksriba dom
tho Ewopean Coal Uld Stod Community, uncleriilUng tho in Rhodesia Uld ia working oo Cbatut'a Voila dam. rl&l owru
;.,,...,.,. tho! tho &ropca:! Community Uld i.uCommoo M.artrt propaty aD oou tho -ld. Prac:ticaily the"'"'* of the Rue
bat b:J Mrica'a primary rnoutUa.. \Vhlt makes Gt.bon"s i1Wl ~ Blan.~ in PW's nocorious Ai&bt•titc wodd is owned by F"tat,
dtpOtiU to interat:ing: is their proxim.ity \0 tm.portant elecuicsl as well as land, hoteiJ and plca1u.re facilities in &:.t:rierc, a
power raources, apable of affordin& abundant electricity at an leading Ttafim winter .spor11 retort.
t:ni.matcd rate of one &ant CFA per k.Howatt. . Like 50 many or the monopoly orpnisations that spread thf:ir
Fiat'1 indusion in this conJOrtium is an lllustntion of the uue:rests .wer the globe and i.mo mmi.fold undcrtabngs, Fia.t
inCYitabllity 0£ monopoly's exte.ndon into capital investment in hu brnnch«i into oil, h••ing a 22 per cent holding in Aquila,
les1 dcvclopcd countries. Fiat i1 nOt t imply an automobile the Italian subsidiary of the CompagnJe F~se des Petroles.
producing <lOmpany, but 1 ''l.rt induiU'i.al organisation which Aquila il now operating in Austrio u well as Italy. Shippinc
hao penetrated deeply into financial inve•lt!IOllt in Wmpe and abo comes within FiaeJ opcr~t101D.11 sweep through ownership
beyond. Founded in Thrin in 1899, Fiat hod gnn.n in sixty- of a couple of shippinc oompanic:a. All of these ramifications,
th,... l'"" into tho ....00-luatll -or manu&aw<r "' which..,.., more than a hundrod companies inside Uld ouWde
Europe and tbe fourth W,.n in the •<><id afla GeDcnl Italy, au alJOOU aD ..,.eel i.o the holdiftc company, IrutiMO
Molon, Ford and Volk.nr.t&m- Ir Simco, which ia 1i.nked ,...th Firuonri•rio lndusaUI., founded in 1927, and known bnefl)o as
F'~. iJ added to F111'a prod11Ction., tt is 1argu than that of J.F.I. In the !attn pon ol 1962 Fiat joined tho int~
Volbwtgeo. But F'"m's growth""""· not through automobile l:fOup comprising S.AB.c.A. · AYiom Fairey {Belcium),
manufuturing, but tbrouJh induJtrial production toMerted Brogue< (France), Fockb-Wulf (Germany), Folder (Holhnd),
with armaments during the 6nt world wtt. its expan.sioc con- Hawker Sidd<1ey Avi1tion (U.K.) and Rq>ubtic Aviation
tinuing in the .... nd wcrld war. It made profit out of the (U.S.A.). wbieh aubmittod designs tn NATO for a vertical
devlutttion that c.me. to Italy and oontinu.ed to build iuelf up take-off strike airenft. Fiat had 11lready maint:a.i.nedoo~pennie>n
in 1hc post-war period under iu founder, an CX·•awalry officer with BrUcol Siddeley in the manufaetu.re of Bristol Siddeley
*
oC well-to-do 'l"urin family, Cio~t•anni Agnf:Ui, in whom Orpheus turbo..jet enginet (or the G.91. then the stand11rd
'butinus g.enjua was combined with the ruthlessness of 11n NATO strike oircroft. And to help mould public: opinion in the
American nilroad or oil tYCOOn of the old day•'. risht di=tiou, F'"uu publisheo ltolfa J<COru! largest daily pap<T,
In iu worting yar o1'1900 the F'l*t company bod iln•eat- LaS~.
ma>U i.o other companies -nlued at aome t:J.G,700,rx1J, • Compagnie F"manciere de Suc:a: wu in coruidcrable djffiotlty
~dtaded by the compony, ainee under Italian mmponr after the allain of the Sua Can.! ,...,.. ukeo """' by the
law lhiJ is left entirely to 'the dii<MJOQ of the a>mpanf• Em>tioa Gcn-.mm.:nt, follow;nc the UlliUC<OUfuJ ........,.
ICCOWltanU. and figuns lined in lt.ali.ul bobnce .u-s unda by Anglo-Fmxb impenaliom to dominate fc>-pt once I'DOft,
this belding wually bar no rehtiod whouoever to the awkd Uld bu been und.or praaure liom ;,. alwdloldcn. Ho..-
vatue or even to the &ce value of tbe tquitics and bonds hdd'. <ftt, the board bdd oft tho ohareholdaa and righted '"
Ctmen.t, camera and fihn manufiCfUrc are among the company's poaition by lookin& foe in.....,tmc:ntt wbieb will gin quick
ventures. A Nbsid.Wy, Unione. Ccmenti Marchi.no. produces biJb returns. It hat mode certain equity purcll.... in
16 million tons of cement yearly. The anzano vermouth which Auatralia, but is mlly ao•kinc quick pro6tability in &1\•"9
it 10 widely enjoyed throuchout the wor1d i1 among Fio.t'l oil and African primary materillla. Ita investment in Copa.rex
u.nderttkings. Its subsidiary, lmpre.ait, ia buty wherever hydro- is expected to cive ea.rly eood rauJ11, sinoe th.iJ company
tOO tO I
NI:O•COLOMIALIIM JIIIMA.IY IUOUR.CIS AND FOit.IICN INTIRIITI

hMI in 1961 large reserves of oil from which it was deriving Compagnie des Mines d'Unmium de France-riUe, capitalised at
a substantial income. 1,000 million francs CFA. A p:Lnicip:ant in Comilog, tho
Bauxite ill Wcttcm and Equ<ltorial Mriea is even more Compagnie de Moktn, is re:sponsible for che mutagement of the
plentiful than iron ore, but its exploitation is waiting upon the mine. Comilog ia exploiting Gabon's manganese deposits at
availabilily of eloctric:al power. We have already referred to Franceville. which were first lrwest:igated by the French Over~
FRIA, the enterprise that has been set up in the Republic of seas Mining Bureau in collaboration with U.S. Steel, the
Guinea by the consortium with the R.odeftller firm of Ohn mammoth American steel 6nn, cootrolled by Morgan interests.
Mathieson at its head. The aecond largest boWing i.n this group Together \•ith its affiliates, U.S. Steel ba.s 49 pe-r CC.Jlt control
is held by Pechiney~Ugine. These same groups, together with of Comilog, tO which the other parties are the frequently~
Reynolds, Kaiser and Mellon's Alcan, Conned another enter- present Dureau de Recherche-.s Goologiques et MiniCres (22 per
prise, Les Bauxites du Midi, which origituUly exploited other cent), the Compognic de Mokta (14 per cent) and the Societe
depo!iu at Kaua and Boice. Notice, however, was given to the Auxiliaire du Manganese de Franeeville (15 per eeot). The
com}XUly by the Guinea Governmr.nt that if, witiUn throe enterprise is capitalised at 2.500.000 francs CFA. United States
months £rom 24 November 1961 Bauxites du Midi had not and French monopolist> = lhe chief panics to Comilog.
made :..rrangements to set up :an aluminium faaory at Boke by Comilog bu as its principal shareholder (49 per cent) the
J uly 19G4, as originally agreed, its installations, works and la,rgest steel outfit in America, and hence 1he world, U.S. Steel,
machinery would be expropriated, as well as its assets, for 'a perfectly integrated iron and attc1 concern•. The m:~.ng~mt-se
wbicll repanttion woukl be made. The Guinea Government bed on which Comilog is working at Franoeville in Gabon is
declared that it waited for the rompany to renowu::e •its coloni:d one of the mos-t importruu in the world, with t-.Mima.ted reserves
methods based on the simple extroction o! minerals whose of 200 million tons of 50 per cent ore. The French Cie de
transfonnation would be subsequently efft.'Cled outs:ide the Mokra has a 19 per cent interest and, b..ide• being concerned
oountry of production'. in openting din:ctly the Grand Lahou manganese mine on the
l'echi.ney~Uginc is also concerned with the Compagnie Ivory Coast, controls iruporunt produe1.ion of iron, mangmese
Came!'OUnaise d'Alutninium Pechiney-U~ALUCAhtl-in and uranium on:s through holdings in Algeria, Spain, Tunisia,
which a 10 per cent participation is held by Cobeal, :a Societe MQrocooand C;~.OOn. fl.has, rorinst•oce,40 perceot in theCiedes
GCnc'imle de Belgique affiliate. Pechinty-Ugine's share of ~{ine& d'Untniwn de Fnu:1oeville, which is devcloping the rich
Alueun's total prOduction in 1962 of 52,24:6 tons wa.!l +6.+43 uranium mine at Mounana, Gabon. De Mokta ill linked directly
ton&, obvioudy the most importanL and by associates with interests radiating from Anglo·American
V-abon's natural resources are proving immensely rich. Corporation and the great iron and steel trust of ARBED.
Atomic energy commission! are busy prospecting and inTtsti· U.S. StceJ and General Electric arc world gian.t.s in tJleir
gating uraniwn souroes at Mounana in the Haut-Ogooue related spheres. The first, by virtue of its multiple divi!ions
iegKm, one of the most i&01ated in the country. 'Tile only means covering all aspects of the stccl indumy. is the sixth largest
of accen is d1e river Ogooue, cut by rapida 0\'et more th.:m indunrial company in the United StoteSi 1he second is the
600 km. of iti length. !U the beginning of 1959, hcrn-e\·er, a leading producer of electrica) equipment and appliances in the
100-km. road, con•tructcd by the Com~e l\1ini~re de world, with affiliate11, tubaidi:aries and associa:tes all over the
I'Ogooue-COIIULOG-put thet<rminus of the railway which globe. Iu plants affect. many sectors of industry: radio, aviation,
opened in 1962 about 120 km. from Mourull\a, thuJ m:~king it marine, sckntific re1e1rch, and tum out heavy capital goods,
more accessible. The on: is to be m.i.ned and uranated by the industrial oomponentt and materials and defence produCts, u
102 LOO
NIO-COLOXIALIIM PRIMARY RE501,JRC£1 ANO PO'RI!ICS INTBRUTS

well as coosumer goods. U.S. Steel was founded in 1901 by Equacorial (SPAFE) with h<adqU>rters in l'ort Cenci!. This
J. Pierpont Morgan u a holding company controlling over half COIDJXLDY employs over 1,200 Mricans who arc all subordinate
the American steel industry. Since then the American steel to the over 400 white people. There is no oil rclinc:ry at present
industry has expanded by giant strides and other commanding in Gabon, but Gabon, Chad, Congo, Bmzuville, Central
trusts lutve forged ahead. But U.S. Steel leads still and today Mrica.n R~blic and Cameroun have agreed to establish a
controls 30 per cent of America's steel and cement production. rc:finery to be financed by their respective go'\'ernmems and
Oo the board of Geoerall!lectric sics Heruy S. Morgan, so that France. The 6nt meeting of the representatives of these
it is not difficult to find the relationship between tbis inter- government~ was on 22 July 1964 in Port GentiL According to
national monopoly and U.S. Steel in the exploitation of ~me of the Minister the necessary in•;estigatiooa are going on co start
Africa's richest rerouroes to feed the military a.s well as eco- the refinery before the ~nd of 196~. There are, J was rold, many
nomic demand.s of the world's most dangerous imperialism. oil finds both in the territorial waters of Gabon :md deep in the
Openti.ng universally, its interetts an! located at eo.•ery crisis interior in large economic quantities to supply many puu of
point of the globe. Africa. My information i.s thlu all tbe petroleum companies now
It is said that as a result of the most C(Mtl(llicated tran.sactLon, distributing oil in Frencb-speolcing Africa lutve coo<rolliog
Tanganyika Concessions oeded to an American financial group sh&n:s in the oil production tJompany in Gabon. Agip is not
closely associated with the leading United States banking allowed to bold shares in the company. Readers will recaU what
houses 1,600,000 of its shues, as a resu1t or which the American cau.aed the downfall of Mr Adoula in tlte Congo-oiJ politica.
group prohahly has a majority in this British Company which lt &eems to me, therefore, that two economic iuucs will
owns 21 per cent of the shares of Union MiniUc. whose empire influence the dumtion of French occupational forces in Gabon
is the Congo.• for many yt:lf'S, namely uranium and oil.
American interest in the Congo is motivat«l by very s:uba Tt i.ll qu.ite Likely that Africa could provide enough phosphates
stantial investments-, frequently hidden behind British, French, not only to fertilise the abundant agric:ulcural production that
BelgiAn and West Gennm eover, and engaging !"'ding penoo- would cover its future food and industrial requ.irements, but to
alitics in United States political a.t&.iu. Mr Adlai Stevenson, for leave enough over to supply the needs of many other pam of
instance, representing his government ac U.N.O., presided the globe. At the moment important centres of phosphates are
o'oer the finn of Tcmpelsma.n & Son, specialists: in exploiung the DjebelaOnk deposits in Algeria, those at Taiba in Senega],
Congo diamonds; and Mr Arthur H. Dean, who lt.oads at Lac Togo in the Republic of Togo. and at Khouribga and
America'& dc::legationt to disarmament conferences, was vic.:ea Yauuoufia in Morocco.
president and still iJ a director of American Metal Climax, a The Societe de Djebel-Onk, with t. capital of 30 million nc.·w
huge consumer of uranium, s:ioct it pro\•ide.s 10 per cent of Cranes, comprises the following interests:
United States production. American Metal, according to an
information blwb, forms with its subsidiaries 'a pcrwerful Buu~u d' [nVMtiasunent tn Afrique 18~%
international mining group, which includes, notably, Rhode1ian CaiMt d'F.quipetnent de I'AJgbie 1&00%
Selection Trufl Ltd.'. Compagnie des Phospbalu de Cunr;rantine 40<10%
The NATO powers are interested in Gabon because of her Compaa:nic Financiae pour lc: Dcvcloppt!neRt
ricbes. At present American OFFSHORE International hu Economiqu~, ca.-COFIDAL
been offered a drilling oon.traet for SociCtC de Petrol Afrique Soc~ Alg&ienoe de Ot\'t:lopment ~t d'Eltpo.nsicn
• l'row' 06sm.wuw, 9 ]\1ly 19M. -50CALDEX 8·50%
104 Ill$
'N&0 COLOI'JJALJSM
4 PJUMAIY ~ISOUICJ!.& AND FORIIIGH ISTJ!lf!&TS
Soeieti Alg&imne de Produi'- Olimiquea et tigning the partnership agreement ·with Tntcm.ational "Minerals
d'E.nf!r:U•; Banquc N•tkmale pour le Commcru (W"' A/ri.o, 17 February 1962).
~:.1 J'lndw.trie Afrique;; CcunpaQnie Alsiric-nnc; Phosphates deposits were uncovered in Togo about eighteen
Groupe Schia(lino; Varioo& 9·00% miles (rom the 8e4 in 1952. Investigations bad been going on
since 1884- by French and British interests. It was a geological
The C.,mpagnie Scncgabise des Pho.-phate• de Taib• finds adviser of the Compcoir des Pho~'Phatcs de !'Afrique du Nord
the Government of Sene(¢ associating with the Bur(:au de who fotmd in tlle Akoumapc region indications of very impor-
Recherclle5 Geologiques et Minihet, Pechiney, Piern.:fiu~. tant m,o$it# of first quality which extend 2CI'0$8 Lake Togo.
Comptgnit des Phosph:l.tes de Constantine, Compagnie des The Republic of Togo has assodated itself with the Compagnie
Phosph.atts d'Oc~ie, Cofuner and the Socte:re Auxon. The Togolai$: dr:sl\'Unes de Benin, whlch is exploiting the deposits,
same group, h~dcd by the Banquc d~ Paris tt des Pays and comprises lhe interests Hlready tngaged in monopolising
Bas and thl' French interests whlch it represent! made an other pho5phate resources in Africa. These are the Compagnie
agreefOOIU in Febmary 1963, under the signature or the Constantine, Penarroya, Cofimcr, the fl:anque de P~u·ls, Pierre..
bank's director--general, j. J. Re)' re, with the Intemacional 6tte and the Compagnie lnternation.ale d'Armement Maritime
Minerals & Chemicals Corporation, by which the latter Industrielle et Commerciale. Capital is 1,180 million Craoc!l
became a partner in the coosonium which is exploiting what CJ"'A. T he first shipments were made in September 1961. when
is said to be the world's largest high-eradc phosphate mine, they left the new wharf of Kpcm.c for the United StatCJ and
near Dakar. The.re are several things that are noteworthy in Ameriean..controUed pl.a.nts in japan. The plan is to produce
this arrangement. initially 750,000 tons of concentrate yearly, a levc1 it is intcndod
First of all, there is something distinct!)• ominou.c in :tn to r2ise progresrively to a million tons if the market postibilities
agreement between two foreign oombinntions, one of which is are there.
a participant in a comp;my :~ssociatcd with the State whose r:rw There would be no lack of market possibilities if fertilisers
matcriaJs it is exploiting. It acx:entu.ates the contemptuous were made avaibble to the developing countries nt prices \\•hich
attitude tO\v~rds the host country implicit in the monopoly's their purt'hasing power could afford. Aa it is, the competition in
purpose. Intemaliona.l Miner·ab is the forunost producer of fertilisers from America and other sources is extremely keen,
phosphate and phosphate agricultural products in the North and tbe British produ~rs. of,•hom Fison Ltd. and I.C.I. and
American oomincnt, ·with cxtt-nsivc pbOiophate mining :md Shell practically monopolise tl1e trade in the Unit..."<l Kingdom,
chemical processing openctiums in Florida, U.S.A. ft also owns ·were the $Ubject of investigation hy the Briti11.h 1\i.onopulit:$
a potash mine at Carlsbad, NeW Mexioo, and another Commission in 1959. Fertll.i.sen in the U.K. have been kept ~t
$10 million potaili projec.:t in Canada. It has a market for it.s a Jubsidi~ price lC\·c-1 that led to sc:rious a ;unplaint.s of over..
products throughout the Amcricu and Western Europe. For charging. Fi~n hokls 40 per cent o( the U.K. market, and it
the Senegalese Government thb phosphate mining projtct, has now entered into an agreement with I.C.I., whereby it wiU
which is to have an output of 500,000 tons a year, has an be a.upplied by the latter with ammonia from their new
imp<»1ant place in its four-year pJan. I t is intended to broaden Jmmingham plant. This will cut costs in an effort to meet
:and develop the ooonomy. However, the purpose of the llhareholders' complaints of diminishing profi.ti.
monopolies oootroiJing the "'enture is t.ntireJy otherwise. 'This This 01)-(l.ptration of the largest prod.ueen of fertilisers is
partnership bolsters our world position in reg:.ud tO atn'ltegic ~oing on in order to monopolise rnw materials" supplies and
phosphate reserves,' 1\1.r Reyre is reported to have said on mArkers, so as to sustain prices that will yield higher profits on
106 107
NIO•COLOJII.LIIW 'auc,UY IUOti•Crt 41'10 •OIII(IH I HTUhTJ

tlte:~leinvedmc:nuimolvcd.1MchairmaDofLC.J.'s cn<1rd at Zanch'OO~, in Bt-l~um, jointly "-ith Union

Billi"ll""" Oin.ioo saX! the COIJli>&IIY'• ,._,. m.pths P"""'" Chin»que lldJ'< S.A. Besidet f.niliaers and rmred d.emiah
ha• oompktdy lnll!focmcd th< """"""""' of ammonia P"'" rnanufacture, honicultun and _,uDc: oppmotus produetioo,
duc:Uoa lOCI bu put th< compony in the pooiuoa of ~ a riJOn ne in tile food pt'OC'fttint and canning firm of John
wmld producer of lmiDODis, not just a U.K. producer.. . Drown Ltd. '·lor the PW'Jl'O'C o( ad lin& chemical bx::rw·how and
TnMportation is an important factor in the cost ol fernlixrs. planca to the U.S.S.R.'.
and it u easy to appreciate that lf phosphates (rl)m. Mri~ .are Oil and p.s, which arc hc:oominc nlOfc: ~~.nd more important
takc:n to Europe for ~"'rking up and tht..cn r('tuntcd .... r~ldC¥ flnda in Mric:a, pa11M:ularly in the Sahara, arc drawing the
fonn to Afric:a, pxked in b:ags, prices cannot be econotruc for feverish competition or the predominant financial and industrial
African agriculture. rn this connection it is interesting to note intcrcms that are bringing moaopoly into a tighter and tighter
that Fhon hove esta.bl..iihed in Jndi .. , in ''-~iation with the ~ing. Even smaller ones are pu1h1ng Jnto this field. which, while
lcadinc iroo and steel firm of Taoa, a fenili...- producinj: tt calb for txtremely heavy aniu&l capital for prospecting and
ccnnpany, T11a-Fisoo Ltd., "hid> Sir Cla•cring Foon. the oounding, offen lhe fabulout pronto that have built up the
U.K. Company's chairmu, has ddcribal as """' being the fonunet or Stanclsrd Oil and Mobii·Sooony for the Rocke-
1111\ftt company in the iudwtry. Fi- has a partnership in f<ll<..., Gulf Oil f« the M.Uon, Continental Oil lOCI Dutch·
Albotrot Supa-f~ N.V., of Uuccht. Holland, .mh Shdl for the ~lorg2tu, Texaco for the Chi"'~!" group, Hll>Oftr
whkb compuy it estahli•btd fmiliKr aod chcmi<:a1 companies Bank and otben_ TtM._ Corpontioo, the C~
ito South Mriao. Ouri~g their fin>naal year 1961-2 the F...n- multiple enterprise opentinJt ritme end oopptr toocaaion.l in
Aibetros company admintd into iu South M.rican aftiliate. South America .00 holdi"':: in the Coni\Q and other paru of
Fiton• (PIJ) Ltd., • local. hankinc undertaking. F«!.,.lc Africa. has extended its interests beyond uranium, {eruli.sen
Volktbtlcgging• Bcpcrlc, wbu:h mode enough funds •wilable Ind. chcm.icals into oil. ru Otl:aware subsidiary, Tennessee
to allow the South Mrican Fiaon comptny to ~nter upon the Over~H.s Co., has narttd upon oil txplon~~tion in Sttrra Leone.
o:ploitation of phosphate depo~iu ~~ Ph~tl.tborw•. in the Tran~ C. W, Michel, Tennetlltt't vk:c-prtllident i11 already connected
vMal. Fi.aon has other compantel an South Afnca concerned "ith nilthmugh T>ome Pecro1t-'Um, "~ubsiWuy ofdleAmt-rioo-
,.·j\h agricultural cbernicoh and pharmaoeuti<als. AU the>e Canadian Dome Min.es Ltd.• interlod«J with Tenneuce hy
com]WUcs did well during tho 1961-2 )<nr1 11000rdmg to Jhardtolding and Michel'• chainnand1ip.
Fi10n's dWrman, who .deled that 'd~e the diilicult COrl- Africa d ..ui pa.ramountly an uncharted continent ec:onomi-
dlllOOJ m £a,t Africa lOCI the Fed"""ion of Rbod<!io at>d tally, and the "ithdtawal of the oelonial rulers from political
Nyualand, '"" cocnpsnks there bow mointained their position control is interprc:ced u • •icnal for the detcc:nt ol the inter-
ond eomed ..w&ctory profits'. 111 suboidia<j in Sudan, FuoM oation.al mo~ upon the COntJ.Iltmt's natural raounxJ.
P<tt Cootrol (Sudan) Ltd., IJ'~)ed • rt<IOfd tottoo "':'tar< of 'This io the new acnmble for Afnca. under the gui>e of oid,
o•er,.,. million acr<S lOCI odu"'ed proms fO<IDCI '""sfactosy ~ Wl~ th< consent lOCI ...., the wdccnne of young,
by the choirman. . • . tnopenenced StateS. It c:an be ~n more deed.ly foe Alrica
Canada, Kew Zealand, Amtnlha. Malaya and N1geN are all than the tint carve--up, DJ it iJ aupponed by more concentrated
countrks i.n whic:b Fison hue cstabliahed c:ompanies for the lnW'tltJ, wielding v.udy 8:rtmter ~·er :and infli.JCflee over
expansion of their fertiliser and agricultural chemical markets, governments and intertlatjonal orgMilltiont.
and they have recently btglJJl to extend lnro South America and
Pakian. Plants for the manufacture of fertili!en bave been
108 • 109
 THI Ol't'INHIUUa 2MPtU:
Bmoangw.to eo...~ Ltd.
Ctncn! ~....... Fm.n.. Led.
Conoo&htnl •u... Se1o<tioG Co. lAd. (C-A.S.T.~
7. The Oppenheimer empire eo•..-. Colli.,.;.. Ltd.
Co«•lkhud' J.l.lott of s...cJ. W•1 A/rica Lid.
BrilloiiSoam Atria~ w.
~ T........a c-..a~ate4law...Mt\t Co. lAd.
De - . Coo.....w.! }li.a lAd
F<tt Sme Dcffiot>,_ Co. Ltd.
;\fiddk Wit'II"2Unra0d (Wfrllk:m ARu) lAd ,
Ra..Dd Selcctioft Corpuration Ltd.
IW>d Mmn Ltd.
RhodttiaA -\nclo Amenaa Co'J'Orarion Lid.
South African TCN•Mbipt MJnlr.g ec Jo'inaooe Co. Ltd.
1'HR king ,,f m ining m Soudt Africa, indotd in Aflica, i• llarry V~rttn.igi:ng E.tat~• Ltd.
Frederick OpJlenheirnt.r. One might almost call him tbc king West Rand Investment Tnat Ltd.
of South A(nca, even the emperor, with an cvcr-.cxtc.nding Jobanoaburg Co.nJOiid.attd lnve~tmtnt Co. t,td.
empire. ·nu:re. ia probably h.ardly a corner of Southern Alrica'e Rhodeei.m Drokrn HiiJ lmvtl,pmrnt Co. l .td.
indUI!triat and financial atructure in which he hat noc aot 11 Tru"~~vul & Dtl~~p U1y ln'I'Qinlt'IU Cu. t,~1 d .
very clCtt'ndc..'<l finrer or his own or the hook of some ::.ffili:ne or Rhoi:nna Corpon.tion Ud.
l.~nion Curpontinn Ltd.
11110elate. Thc1e fingctt and hookl attach the Oppcnhdmtr
empire firm ly to othe-r empires as gre~.t or greater. TMJmc:b Corporntkm Ltd.
Sd«1i01'1 T m•t Co. Ltd.
Mr Harry Frederick Oppenheimer is direc-tor, chairman or
T;mpnyib ~tiona Ltd.
praickn• or oome oatnty companies. Tiles< c!im:u>nhlpo .. Uftioa !'.~ du Tl.ut ltu:at~p S.A.
wtll u d>OOe held by iroporwn coil...,.. :and nomi.-,
-.bole: n:lmft recur moatJCOnOUdy oo the boards of an n-u- Moot of lllco. are boldillg oc i.oY<IUD<nl oumll, -'>liohed
cxpan.IW, compkx ol company bowls, gi•• lhe ~ to Ill< co (.'()oo(Wd.inat.t a specific group or .aivitia. hut h.avinc thrir
fiction 1-/ ropccaahle tcpantene!!IS, tvm where lhc:n: il no fincero in runy oth.r pieo. h ;. difl'ocult, am- impeooibk .,
ob.-.ous fil\lftCial ()C)IlllOCling link. [lemirwing this compla tim.., to distinguish 1 delimioi1111in< o( opomion. Tryinc 10
o( oomparucs are the Anclo American Corponltion of South W>nl\-d the_ponicipoliono of""'
AJ>tlo Amerieon Corporotion
Mrica Lod. ond CoooolidalCd Gold f"dda ol South Alrica llld Consolidated Gold F',.ld. o( SO.ub Afrieo, f« in...,.ee,
Ltd., from whic:h radiate afliliatea.., ~ UIOQilet, lade often to tbe tam<: involvement&. Yd. thue muu be a
immodtatdy or more tenuously oonnectt'd, which v.oold dttM.rcation lioe, not only co pre.tnoe tl1e xmblanc:e of
provtde an them.K'l ,.et 1 mott interesting trade, invCitmtnt and ·~~o.~y, bu.t to avoid ~ dupli~hon or 1uk• and retpoJU.i ..
bonking dim;tory. A list of direct interest~, by no meao1 h1httet tn tbt- mterestt of mdustmland fin•nci•l C!CO.nomy ;and
comp1e-te, would inc:Judt: profit-..
A• .• ~n:cr of fact there ia a oonetant rurrangonc:n1 of
Anclo Anletlnn Tallat Ltd. Q1'8an~.~atlonal $lNC(ure, t:ithcr 311 a result of the: acquiaition or •
Mric:an & European lnva tment Co. Ltd.
Ama~m.aced CoDie.rie& or South Afriea Led. new interests and projecu, the •blndomnent of txhau!l:ted
110 Ill
~IO•COLOJ'fiAL1U.I

rn.ird, the tspt.ftlion or txilting companies and alliances, but

abovt! all in order to forestall or meec COlnpedt:ion, tO strum•
Jjnc the ltructun and to correct the: tu pothion. ...." I 4 3
I :§
~~5
::i ::i3 ~
For jfllttnce, in 1961, Cumolidated Afrian Co1d Fit:ldt of
-II'=<
] :)
j-J i .s
:.! ~h I .:l
South Africa Corpon:l.ivn uodt;tWCnt a lhomugh·goinc re--
organiution v.-ith the inllt'fttion of ~tntlnc lts admioi.-
o<"!!. ~ ::i
1]
-- 1«
tn.tion in iu various 5ph~ of operatKm. Reporting to tbe
annlllll meeting of the corporation's acti,;ltu for the year
•-'
li -
~ ·.S
~;
u I
- ~

eoding 30 june 1961, the chainnan, Sir George Hari'ic-Watt,

fixed the IJ&Cts, at stock exchange \'aluc:, at a uual of approxi- "~ ....-
•· .,j
mately .£~ millioo. Sixty-aix per cent ol this total wu ; 2
~- f3. .:l
reprtttn&:ed by intaaca '" South Africa. ten per cent in
:Sorth Arotrica and lilt per eeot in Auw.laa. Moot ol the
recn~JruttC 18 per a:nt wu ac:c:ounted for by mteresta tn the
l '2
~;; ..- d~
~ ~~~
~t
u
United Kingdom.
To tu~rvite these inttrttll and the planned absorption of
-< ~

oc.he11, a number of change• were made in the controlling !-

d :i1
••...
tl3
~
oompani,., 10 that 1M ~roup lttllcwre ol Conoolidat<d Gola .s
Fid<lt o( South Africa LuL ..,... b.s the ~ r.bown in
et.n I 3j i -
~ •5 -::i ....
0:
~
Explaimng the strua:urc to the sban=boldua at the annual
general moering held in London oo 1S Oecanher 1962, the
~
., :.i
::i ....,;:
~

~ Jfl ~
u
chairman confinned that the operational lll~rvision or the
group't interata in South Africa wu the reaponaibilit)' of 'our
wholly """c:d subsic!Wy, Gold Fields oE South Africa Ltd.,
wbicb io rmdmt in Jol>ann<abutc'· When •• •959 the croup
J.,
..
•
~-
,;
u ..l
~ .
... d
'-
l 1
3
l
ooquitc:d both N..., Uaion Cold Fi<l.S.. 1100< r<namc:d Gold
Fields Finonce (S.A.) Ltd., and the South Afri=l H.E.
ProprietiU')' Ltd.) their management wu olio vested in
Cold Ficldo of South Mrica, although the oharca or thcoc
Jh
c:ompil.t\kt ~.re held dlrectly by the parent company in
London.
In Auotnlia, rcsponoibilicy for 2dminisuadon of the I""'P'•
opcntioat io cx..a..d by C...lMidat<d Culd Ficldo (Auotra!U.)
Pty Led. Gold Fidda' principal inTatmC"f\t in Aust:Talia it
rq>re.eutcd by a majority intt're&-t in Coenmon.,.,.ealth 'Mining
lnvest:Jntntl (Australia) 1Atl., '11 mlnh!H fin~tnce OOul~ny,
wbicb hu a broadly bt.Kd portfolio in Auetnltan. Nor1h
112
"tlO•COI.OMI ._LUM TMI 0 PP£Ji'Ha n•r:• f!NI'III'
Amcriau aJld other o'eriCU lft\Ut.mtotl'. according 10 the F ,..nci!.co, hD resultm in a jnint mt~ named J\1oun1
cha1nnan's report. • GoldswOrthy Minina: A..xiatft, to ap~ tnd ""'rk 11\co
A f'Njority interest in aoothtt AUitrali.aft concun.,. Asasoc:G1rd potcotial of i.ron ore d~tt ul Mount Gold~y 1n
Mo ....... Cooaolidaud Lid. ci- Conooliclat«< Cold V~ a nonh·wat.an Australia 1'1wo comtruction ~ • 125-mile
bi~ brealt into the Mil< and zi-n U>du>try. A!sociao<d railW'Iy is iDYOh--ed, to end up at Depuch hla.nd. 'ftil.ere a
Mo.nenls acquired all the oull..nding •bar,. ol Z.R. Hold~ major tcaport is under coneidcnuion. Sir George Harvie· Watt
Ltd., a company originally Cormrd to tak.e ~ion of Zircon was p leased to infonn Conaolldatcd Gold fielda' abarcboldm
Rutdc l'ly Ltd., togecher with that c:ump~any•a Marc in, a.nd that 'negotiations arc in progrue with the japencae iron and
advancce to other oomp2niea. About ct.e tame time, i\s$ociated ltecl industry regarding the market £or thia ore {from M01,1.nt
Minerals bou.ght the entire share cnpiiMI o(1'itan.ium MaterLo.la Goldsworthy) which itt thou&ht \\ill be competitiYe in price
ond the • - • of Rye Park Schttlol<. . and qualhy v.itb any now auilllble In Japan.'
&pcri<nced enterp"- like Coooolidat<d Gold Fidcla do ln the chairtn3.0'1 words. the c;:omp:my'• operatioN in
not allow othus to lxntfit from thor efforts. So '111-bile Canada had 'W.tn a diatinct 1tep forward', Their subsidiary
A.oc:Ut<d ~ltnenls ..... bwldinc up ita boldinp in the rutile <xploration eompany, ~cw<ODeX Caoadian Elq>lo~tion Lid.,
ioduwY' &at<d Consoliclao<d'a dwrmao, .,... felt it ~· wu joined by a ser::ood, Newcona Holdings Ltd. A deaston
to ~ our pooitioa in W)'OOC Mm<nlo, IDOChtt rutile ...,. mode to allow the public to mjoy oome of the fruits fn>m
prodUttr in whi<b Conunonw.allh Milwlll olteody bad • the upknwion of thf"ir couml)'• roourttS by fon.-ign c:on-
.ub.ta.M_ial im.-tstmtnL Accorilinrty, our wboU)·-owned sub-- c:<m>. Ac:aardingly, S6 pn mot of the apital ,.... oll<r<d to
aido.,.y, Cooaolidaud Gold Fidcla (Auatnlia) Pty W., "!ade Canadians.. '1'boK- who took up tharn wen: doubtltM ddighttd
or
an off~t:r in Ft:brua.ry 1962 for 50 ptt Ctnt all $hareholdinga to know that th< 28i p<r «nt holding of Newcoocx Canac!Jan
in Wyon,g Minerals other than thole bdd by Commonwealth l::xplontion Ltd. in the Mount I lunderc exploration will be
Mining lnvtttmenU.. Thie ofTco:r wtJ aucunful and Wyong tum<d over to the l>oldmg <Ompany. A h igh grade depooit of
Minetala ia now a flUbtidiJr'}' within the: sroup! leGd z:inc (with some ailvtr) diJcovcr«< in this south Yukon
<.;ongratulo;tiona :are owed tO Conltolidatcd Gold Fields on region inspired the chairman to Gn admjssjon of its being:
thear pcnpK:aciry. Their potition in Lhe rutile. ficld is ~ •most gratifying that 10 100n aftc:r itt formation Newconex
prc..emineot.. Jn the words of 1heir chairman, 'lhc total nmle Holdings sbould be prnent<d b) Kewwnex Exploration with
producth·e capacity of our soMidiarica now repreeenta close IUch an encoUJ"'I@ing proapect.•
on OO< ball of the !OW f,... "orld apaaty. The _.;on Moving south1f'l.f'ds 10 1ht t:nited States, :a new mmpany
prognmme wbido A.ociated Ma...,... """ baa in .band adl<d Cold Vaelcla American Corpontion wu fom>ed in 1961
abouk1 m:a.io.Wn this position. • May we ~ fo.rgi'-en if mc • a wbolly-owo<d ouboadiary ol Gold Vaddo Mining &
quali5cat.ioo 'fret! in thi:t context loob a ui8e dulled to ~ lncluotriall.td. Cdd f"addt Anaeri<an took ,,.,. the New Yorio
Rutile ia a much aoucht...fttr ~tttW \IIOd in the manu- ocganda1lon, stt up origin~~lly in 1911, who.e l'lWln funnion
ranure of titanium pigmtnt. •rhe danand had the effect of iD recen.t yean had been to proviJc admini&t.ration for Gold
increaAirc m ope:n market pric:e b) tonk: 50 per ant in the 1''1tlds' Tri·Statc Zinc Inc. and Duell Engineering Co. Inc.,
llnancial year 1961{62. Zin:on's price has m:rlained 5tab1e in • wt"U IS s«tttariaJ eerv·icea ror the Freanillo Company.
apite of comiderably incrta~ed suppliea. Frcanillo Compo1ny waa rtorganiaed in 1961. when it t:rant·
A partnmhi.p with Cyprua Mines Corpo111tion, a New York fcrrcd 51 per cent o( iu <hvc-I'IIC Mexican activities to Metalur- 1
oompany, and the Uoah Con>U\Iction & Mining Co. of San gi<:a M~lcnna Penolee S.A., under the Mexican Government'•
II< 115
NEO·COLO!Io'IALIUC TH.8 OPPINHSIMER I'!MPIRI>

drive to have domestic control of ita buie primary resources. pressure bottltt for commerci-al utet. In 1962 Al\l.rruliC., in the
A handaome oompcD&ation of $~,500,000 wal awarded. to words of Consolidated's chairman, 'broadened its intereeu
FresniUo, payable over a period of live yean, for the oessaon geographically and industrially' by the acquisition of an
of this holding to Compania Fretnillo S.A., in which it holds Amtralian ~>Ubs:idiary, L:~.wreoson AJumasc Holdings Ltd.,
49 per cent to Penol~' 51 ptr cent. Fresnillo .;till reta.i.n.s a and of two United Kingdom subsldia.rits, The Non-FerTOus
~5 per cent interest in Somberette Mining Company, owning Die C•soiug Co. Ltd. and Bnu Pressings (London) Ltd.,
another gold-silver porputy in the State of Z0ca1.ecu, Mexico. already well e8(ablished i.n non-ftrrous die-(uting and brass
With the •coming w the end of their profitable li.·vca' of p~4ing.
Tri-State Zinc's two mines in Illinois and Virginia. a replace- Two other U.K. organisational inst.rumems rddiate from the
ment w-.tS sought by a new mine in the New Market area of London direa.onut. These are Anglo-French Exploration Co.
Ttnn~. This mine •rri-State are bringing into production Ltd. and Mining & Mw.llurgical .~gency Ltd. Anglo-French
io accordance with a joint venture agreement with American &:ploration, a wholly-owned subsidiary of C'..on.c;olidated Gold
Zinc, Lead &. Smelting CA:t. Under this agreement, Tri-State Field!:, is an investment and financial business., holding, among
wm mine aod mill at least 20 million tons of zinc-bearing ores othen, intcrc3ts in many of the princ.ipa1 gold-mining com-
owned by American Zinc near Tri-State'a New Market panies in South Africa. Thc:ec interests also oover Northern
property. Profits from the output of a treau:nent p lan, designed Rhodesian copper mines, as wcU as tin-mining companies
to provide a daily capacity of 3,600 ton•, will be di&tributed opc:nti.ng: in the United Kingdom, South Africa ~md the Far
on a basis ,·arying between 50 and 60 per cent to Tri-State- East. Apex Mines Ltd. and Rooiberg Minerals Development
and 50 and 40 per cent to American Zinc, until all capital Co. Ltd. of Soulh Africa, and An_glo-Bunna Tin Co. Ltd. arc
has been returned, after which profits will be dittributed among ics principal•. Mining & Met.Uurgical Agency Ltd.
equ•lly. was formed to look after the di.stribution of orta and purchase
Amuiea.n Zinc's operations are clo~y connected with the of supplies, as well as to run a 1hipping, imurance and general
mining and reduction of zinc and lead (Ires i.n several of the agency business. Fifty ptr cen.t of its capital is held by
American Sutei. It also has a 10 per cent inrertl't in Uranium Con.o.olid:ned (;()ld Fieldt'.
Reduction Co., and 50 per oent in Ame-rican·Peru Mining Co., Gold Fields of Soutl1 Africa Lt.d. is the wboUy.owned
among sevt.nl other affiliated :.nd jointly-owned concerns. subsidiary of Consolidated Gold fielc.l& that is responsible for
Duell Bngineer;ng Co., the o ther beneficiary of Gold Fi~a adminis-tering the operations of the group throughout tbe
American Corponation, has been 38$.isted to expand its fabn· whole of South Africa. These are of a monumental size. For
eating facilili~ by taking over the e:nti.re common atock of the investments in the South Africa gold aod platinum mines
Uni<1n Doilc:r & Manufacturing Co. remain the major asset of the CoMOlidated Gold Fields group,
Conaolidated Cold Fields' interests in the United Kingdom and ita principal SOW'«' of income. At 80 June 1961 gold
arc now groopcd under Gold Fic:ldllnduatrial Holdings Ltd .• mining occoumtd for 71 per cent of the group's quoted invest•
fonnerly H. E. Proprietary Ltd., as a wholly-owned subsidi.ary me:nt&, and the chairman ;~ssured shareholdert that aince the
of Cold Ficlds Mining & lndustrio:ll Ltd. Ita main opt:ratioJn c.nd of the 5e<X>nd world war, Consolidated Gold Fields had
are carried on through ita own subsidiaries, Alumasc Ltd., invested capital sums approaching £450 million in the South
Ambuco Ltd. and Metalion Ltd. Alumasc is a producer of die-- Mricon gold mineo. Explorttion hall continued in South Afri"''
cut aluminium casU, notably for the buwing industry. It has and Rhodesia, and is in c!ote oolJabor;nion with West Wit-
lately expanded into the production of aluminium h·h· watersrand Area$ Ltd., a oompany which CA:tnsolidated Gold
116 Ill
NRO-OOLOSIALUM TUII OPFilNU61Millt &MPUtl

Fields floated in l932. Since then, West Wim··atennnd hu in ita ope-r:uion~, resulting in a con!KIIiclatcd profit before tax of
itself b«ome an important Soutb Afric~ finance mining £7,030,000, while, in the cbairm.an'a own worda. 'another
company with major holdings in the gold mines of the Far satisfactory feature of tbe oc(ount$ is that dividends end
West Rand and Ornngc Free Sate. interest exceeded (,5 miJlion for the first time'.
Wea.t Witwatertrand produced in 1962 gold valued at over Consolidated Gold Field$' income COtne$ largely from the
[;51 million, which \"\''ll$ twice the $ize of its production of ten specialist services: wh.ich it provides w companies within it!
yean ago. The Hannony Gold Mining Co. Ltd., in which own group and those within its associ.:tted groups. Varying
W~t Witwatc-£Snmd has :a holding of 1,247,564 $h,ate"t through considerably in ilze, they number O\'er one hundred, and the
itA subsidiary We&lwits lnwt~tment Ltd., also achie\•ed a total market capitalisation of those quoted on the stock
record gold output. exchange exceeded £170 million at the end of tbe company's
Apart from its intereats in the Transvaal and Orange Free working year of 1962. It is by these means of inn:stme.nt and
State gold and platinum mines, Coruolidatcd Gold Fields has man.ement that much larger iD(l()mes. are built up than from
aub1tantial holding& in South West Mrica Co. Ltd., and in the actual production of the mining and processing of raw
Rhodesia, in Uancrolt !\'tines Ltd., Nchanga Consolidated materials. That i& why so many of the roore important mining
Copper Mine& Ltd., and Rhodesian Anglo American L td., aU oompanics, not aJonc in Africa but throughout the world,
falling within the sphere also of Anglo American Corporation. have coalesced into holding and investment concerns behind
In Ghana, Consolidated i.8 interested in Konongo Gold Mines whom and o.mong whom stand the most important figures in
Ltd., which has a oonoesS.on of approximately twenty square the banking and financial world.
miles in the Athanti·Akim district. On an authorist:tl capital Here we ba\'e touched o~ly on the bare bones or the Con·
of £675,000, not fully paid up (7,00+,175 sh"""' of h. <>l<h solidattd Gokl Fields skeletal structure. The flesh and brawn
issued out of 13,500,000), • working profit of {.110,!>87 wu which clothe it :tre set in layers of rich fat that have created a
achieved in 1960, incrtased to £130.378 in 1961. dt!i~J ite an huge corporation bulge, smugly admired by the owner, but
advanc.'C in working costs from 86s. 6d. per ton to 081. 2J. per orninou11 to tl1e le:~n, $tal'\·ed African ob&erver.
tc.m. ln IQli2, Kooongo (;old ~1ines Ltd. informed the Ghana
Government that tbe operation of the Konongo Gold Mine
would httome uneconomic after April 1965. The Company
were therefore contc::mpl.luing ceasing operations just before
that time. In view of the lou of employment that tJUs would
meao, the Government decided to purchase the mine in order
to provide continued employment for the Ghanaian em-
ployees. Alter protracud negotiations, a pureha&e price of
£150,000 waa paid by the Cbana Government and the mine
is now under the management of the State Gold Mining
Corporation.
C3pitalil«< at £15 million, Consolidated Gold Fields rna tie
coniOiidated profits before tax of .£6,826,000 for the year to
1960161 with dividends absorbing £1,729,299. TheY"'' 1962
proved for Conf01idated Gold Field! the most profitable yet
118 119
 fORI!ICN INVJIUU!IH IN !OliTU APIICAN MINING
gold mines. In 1956, 8,000,000 lb. of uraniwn oxide were
produced in South Africa, providing expona valued at
1;39 million. This leaves out of acoount the quantities that. go
8. Foreign investment in to the Atomic Energy Board of South .1\Irica, with whom
South African mining m•eral of the m inC$ have contracts. The profit made from the
p roduction of uranium oxide is running ahead of that dttivtd
from gold extraction. In fact, 'the working profits derived
from uranium extmctic>n cxcted«l those derived from gold
extraction on the st"Venteen producing mines taken together,
and on fi\'e of them they acrually offset working lo&se& incurred
in the production of the gold' .•
Harmony Gold Mining Co. Ltd. is o ne of the more importam
gold and uranium p roducing companies within the Anglo
I T h:lJ been estimated that over 50 per cent of the foreign American Consolidated Cokl F ields' maze of interests. lm
capital invested in Africa has been poured into South Africa. auth ori.~ CiiJ)ital of £5 rn.illion h2.s been paid up to the amount
British invotmcnU probably total nearly $2,8()) million, and of £4-,500,000. Secretaria.l servicet a.od offioet to the company
Ameri<.:<tn investmentt dose.r to S84{) rni1lion. A 1957 U.S. are provided by Rand ~lines Ltd.• a company that give!i. excc.u-
governrnC'nt survey of Amnican UVtr1t3* inv~tments a.h owa civc, administrative and technical 11ervices to the South Afrian
the aingle mQSt pro6table a~ W3t in the m ining and smelting oompani<:a of tho Central Mining- Rand ~1;nes group.
business of South A(rica, whose profits '-re higher than from Chainn:.n of Harmony is P.H. Ander!\On, a deputy chairman
any comparable lnvt$tment in the United Statea. The high of Rand Mines. Other directors in common are Messn..
profits can be explained largely by the cheapncsa of African R. E . M. B1alt.eway and N. W. S. Lewin. Chairman of Rand
labour. According to the 1962 Statist..~al AlnlTaet o( the Mines is C. W. E ngelhard, who is al$0 chairman of Rand
United States, U.S. miners catn *"average of $2.70 M hour, American lnvcstments (Pty) Ltd., ond patently has a watching
which is twenty-aeo.·en times the amount earned by South brief for the United States investors who more and more arc
African mincrt. infiltrating inlo pr imary materials extraction in Africa. All of
Domjnam in South Afriat's economy is the Anglo-.o\meric;an Raod American's 2,371,049 il$ued shares of £1 each are held
De Beers g-roup, part of the empire of Harry O~nhdmer, by De Recn Investment Trust Ltd. (now Randsel), a wholly
which extends into South West Africa and Zambia. and is owned subsidiary o f Raod Selection Corporation sinee the
linked with mining companies in man}r other African smte&. r ecent re-juggling of the Rand group. Rand American owns
The \'alue of the empire: has been enbancecJ by the discovery nearly all the preference shares and a subs~.antial interet& i.u
that uranium can be produced from the rt5idue!l and !limes the iMued ordinary shares o( Cen llill Mining & Investment
which surround old gold mines:. Corporation Ltd., as well as a aubs:rantial interest in Lh e issued
F.xtmction of unoium from gDid ores and slimes has ordinary ap;lal of Rand Mmes L td. 1be J\mer;can link oon-
brought South Mria lnto the wnrld'l\ leading place as a firms the tie~up forming the <.:cntral Mining-Rand Mines
producer of uranium. The working of slimes accumulated over group.
the put sixty years, together with thoee f rom currtn t gold
productKm. is helping to prolong r.he life of many exhausted
'
• S<Mt4 Afn'ra, Monica Cole. pp. !U3-1S, Mctbueu, 1961. Tbc q~,
rc:btee to the: yeu 195~.
120 1?1
 POIUICN UC\"ISTM&NT IN SOUTH AJ' IUC.t.N )ofiNINC

ConsoU<bted Gold Fields and Anglo American Corporation arrangement will enable it to fulfiJ an outstanding uranium
intetuta conl'e:r'ge in Hannony, in which both have appreciable contract with the Atomic E nergy Board of South Africa.
holdings. By the grnoe of the South African Government, :\1 r Engt"Jb31'd is a member of the Virginia-Merries:pruit
Hannony W3$ able to acquire undermining and mineral rights board by virtue of the holding directly bought into it by hi1
over some 8,000 acres of land, as weU as freehold ownership Enge-lhard lndusuiea or Southern Africs Ltd., and his con-
of farms covering approximately another 10,000 acres. These nections with Rand Mi,nes Ltd. and Anglo American Corpora-
holdings being rather more than Ha.rmony CQ\lld cope with, it tion which together with another two associalCl, Centramie
Wll\ fou nd profitable to sell the right to mine precious metals (Sooth Mrica) Ltd. and Anglo Transvaal Consolidated
on two portions of its artas on lease until 1967. This right went Jnveslm~nt Co. Ltd. fonn the partieao to tlu: new company.
to another Anglo .1\merican concern, Virginia Orange Free Financicn and dealm in mining and other properties in the
State Gold :\1ining Co. Ltd. Harmony's remuneration for this TraLliWaal, Anglo 'fransvaaJ has a subsidiary, An.glovaal
friendly gtstu~ to a 6ister company was a minimum CJ million Rhodesian Explorot;oo Co. (Pty) Ltd .. which opcntcs ;n
payable quarterly free of interest. Northern and Southern Rhodesia, its mineral prospects
ViJocinia Orange brinp u.s onoe more into contact with the including coal, copper. chrome and nickel. With capital
American marriage to South African mining. our first example authorised al £'1,337,500, not fully paid up, Anelo Transvaal
being Mr C. \V. Engelhard, an American Democrat, who, as ia operating on an un.&«ured short-term loon of £1 million
president of Engelhard Industries., refiners of precio\1.$ mcub from the National Finance Corporation of South Mriea, a
in the Unit~d Stntes. eougbt after steady suppli~ to keep his privote orgn.nisation with which Anglo American Corpor::uion's
plants working. He found them in South Afric3, where he fri~nda of the intenutional investment world a.re cloaely
linked up \\lith Oppenheimer, aod later br;J.ncbed out lnto associnte<l, including the house of Morgan, which has a sub-
bai~r met21$ :md other fields of profit. Mr Englehnrd, foUowing stantial firuancial interw in Kennecou Copper. Among
Mr Oppenheimer's inspil'lltion, hitS alto found :l nicl\e in the Kennecott's extensive mining engagements in Africa i.9 a
Canadian, Australian and Columbian mining i.ndultries, and 30 per cent inveStment i.n Aoglovaal Rhodesian.
dist-ribute$ b.i.$ fin.ilShed goods in Europe through companies Prim«!. by :\forgan friends, K~nnccott luw""tl bO\V to take
establi&hed in Pa_ris, Rome and London. Mr Engclhud's care of its manifold concerns. Hence, as con~S.idtr.,tion for
qua1iti~ ~ wdl a..-, his $ei'Yice8 to the exteniSiou of American t.~iuu u! it• iutertsti in the Vigi.nia and Merriespruit mines,
interests abroo.d are J"CCC8lli&ed in hi.s membership of the U.S. it i.'l to receive an amount of £3,500,000, payable in five annual
Foreign Policy &&ociation. instalments. This docs not, however, sever Kennecott's con-
With Yu-ginia Orange we are brought ncar to more con- nection witll tJ\e$C valuable Oppenheimer-Engelhard pro-
sidernble Ame-rican influence than Mr Eogdhard is abJc singly perties. For the Amcrica.o copper corporation will be entitled
to produce, by the usociation of the powerful Kennecott to an interest o£ 20 per tent up to a maximum amount of
Copper Corporation with this gold mining and uranium l2,500,000 on any of Virgini.a--Mcrriespruit's net surplus that
extracting oomp~my. Kennecott had in1erests in Virginia may accrue after the inatalment payments on the cash con-
Orange which it passed over, together with those it owned in sideration of £3,500,000 have been fully met. This entitlement,
the Merriespruit (Orat!@e Free State) Gold Mining Co. Ltd., however, will be forfeited in the event of Kennecott taking up
to the trorg2nised concern formed in 1961 to acquire those at a later da1e from the memben of Virginia-Merriespruit
int.er<.:SU. The new company bears the combination title, 20 per cent of the then iss:ued share capital.
Virglnia-:\1crricspruit Jnvestmtnt$ (Pty) Ltd., and the re-- These are the tonuout means by which fi nancial cline~
122 123
NEO•COLO~IALISM POR8tGN JN\"IITMI!NT IN SOVT"It AfRICAN WININC

ere held. It is obvious that the way is being kept wide open for by Kennecotc and one-third by New Jersey Zinc Co. This
Kennecott's re-.entry into the hean of the company. Meantime latter company is linked up with the great oil organisation.
it c:a.n stiU feut at the table. Texaco Inc. in a joint enterprise. Texas·Zinc Minerals Cor-
Kennecott if a foremott copper producer in the United poration, for the constrUction and operGtjon of a uranium
States, whose shares on the 'futurea' mar:tet are valued by processing mill in Utah. "A uranium mine in Utah was bought
knowing operators at around $1.48 biiJione, even though i" in 19~ and the mill began operations in 19571 also treating ores
present capital of 11.053,051 share& of no nominal or par value !:rom other mines. The uranium coneentra.te produced is being
issued out of 12,000,000 authorised, have been given a stated sold to the U.S. Atomic Energy Commission under contract.
value of only $74,806,424. The possessor of copper mines, 1'1le New Jersey·Kennecott venture in Qutbtc Iron &
concentrating mills, smtlters, rt:fin~ries, fabricating works aod 1ltaniwu i$ going to prove extrmltly valuable, ai titanium is
milw11ys, it has smelting agreements for m.uch of its orts with a metal thal doe& not mdt at supersonic speeds, and is accord.
Americ:an s-Iting & Refining Co., with whom it bas two ingly in high demsnd for use.iJl j et aircraft. Greece also figu rt:s
subsidiaries in common. American Smelting i~ a producer in Kennecott's s.phere of inter~ts, where its 95 per cent owned
itself of copper, as well a& of Ai1ver, lead, zinc and gold, in the Kcnbastos Mining Co. Ltd. works a&besa.OIS pr<>ptrtio:t- Jn
United States, Mexico, Canada and Peru. Ita inttte&ts extend Wcat Africa, it has a 76 per cent holding in Tin & Associated
to Australia and Nicaragua. and it has am.ngemcnts with Cerro Metals Ltd., operating a columbium and tin property in
Corporation, Newmont Mining Corporation a nd Phelps Dodge Northern Nigeria.. Columbium from this mine provides most
Corporation, aU of whom have substantial investments in of the world's present production.
South Mrican mining project~. includin&: the Tsumcb Corpora· Our exAmination into Hannony Cold Mining Co. Ltd. ha$
tion of South West Africa. ltd us a long way round the world and into reo.J.ms of power
The American chemical industry entets the Kennecott field and prodigiou!l wealth. This seems inevitable once we begin
of operations through a joint venture with the important to trace the extemallnttreau that intertwine Africa's exploita-
Allied Chemict~l & Dye Corporation. The Allied·Kennecott tioD with that of many other pam or the world. Coming back
Titanium Corporation is to p roduce and sell titanium metal, to Harmony, it is imprel$h·e to note that this COm)XUly, having
and hu put up a p ilot plant. A further break·through has been a gold reduction plant capable of dealing with ~.000 tons of
made by the acquisition of25 per cent in Western Phosph.att'5 ore a mouth, also bo:uts a uranium extraction plant whoee
Inc.~ 7·3 per- cent in the common stock or Mo1ybden.um capacity U. 120,000 toos monthly. Thia plant began operations
Corporation o f America, and 50 per oenL in Garfield Chemical in April 1955. Attached to it is a !11.1lphurlc acid plant with a
& ;\ia.nufacturing Corporation. There has been a branching daily capacity of 120 toM, wbi(,h started production in
out into mineral exploration in Bruil and Mexico with twO January 1960.
subsidiari~, Kenrand Pesquisas Minerals S.A. (60 per cent The unmiwn extraction plant was erocted. under arrange-
Kennecott owned) and Cia.. Kenmcx S.A. rupectivt:ly. Another menta made with the Export·lmport Bank of Washington,
suba.idlary, Braden Copper Co., work$ a copper property in U.S.A.,and the U.K. Ministry of Supply. A loan was obtained
Chile. from the Atomic E nergy Board of South Africa for the entire
Exp4nsion into Canada is by way of Quebee Columbium capita1 cost of the phlnt, exclusive of the capacity extension
Ltd., formed by Kennecott with Molybdenum Corporation of from 80,000 to 120,000 tons monthly. The COI"l:'lpally is under
1
America to investigate a columbium property ntar Montreal1 contract with rhe combined De>o;·elopmtnt Agency, as well as
and Quebec Iron & Titanium Corporation, owned tw~thirds with the U.K. authority alone, to supply wriou1 quantities of
124 ~ I~
NIO-COI. ()NI ALl SW

uranium at fixed priCQ. under arrangementa which will ~How

it, wilhout incurring extra coat, to cover by June 196:> the
apital expenditure on plant. .
During the year ended 30 J une 1961, Harmony amllt:d a 9. Anglo American Corporation
total of 2,ll6,000 tOM of o~, which yielded 857,794 ~· of Limited
6nc gold, providing a working te\•enue of £10,810_.496, wath a
working profit or £4,090,677; 2,067,100 tons of slimes !-'eated
yiddtd 974,3<19 lb. or uranium oxide, giving an ~tlmated
\\"'Orking profit from uranium, pyritn and acid of £2,680,238.
Accounts for the following six months to lhe end of 1961
showed that 2,285,000 tons ol' ore milled resulted in a working
revenue from gold of £4,458,177. Trtttm~t of 2~138,m. tono
of &.limes product'd 953,100 lb. nf uraruum Ql:tde, gtVlng a
working profic from utanium, pyrites and acid of £2,284,647.
For the workin g year 1961-62 the dividend paid was 55! per
oent. Net profit for the year 1960-61 was £6,67~,739, and BIGGEST octopus in the Oppenheimer ~ of operationa is
divi<lends paid accounted for £'2,197,500. All thia can be probably the Anglo Americ:an Corpon:t.tion Ltd. Its invest-
regardecl :llll most satisfactory for shareholders on a fully patd ments are on a threefold seale, and the list of the main ones
up capital of £4,500,000. • convey but tho barest ide;~ of their very considerable rnoge.
Meurs. Engelhard and Oppenheimer must bear a s.pec1~ These arc more or less direct participations and do not inc:lude
regard for their friends in the Export-lmpon Bank for thear the more intricate holdings held through or in common with
ready aid in thia venture. in 3 oountry that makes a modery subtidi:aries and orbet1 in a more far-reaching ex.1e.mioo of
of human rights for its non-white inhlbitant3. Such ease of interests.. Principally in mining, they nevertht1cu branch out
assistance) if extended to the leu developnl new nations of the into procnsing, transport 2nd communic:ltions, landholdings
continent by an international banking organiution. v."'uld and estate, foresrry and timber, industry, 1.1 well as into hydro-
help Jes&en the gap that the developed countries are forever electrirul powtor achemes like that of the Rhodesia Congo
deprecating but which, by these $ttahhy means, they ~rve to Oorder Power Corporation.
widen between the ~have' and 'have no1' countries. Gold, uranium, iron, ubestos and coal mines are among
the corporation's most notable undenakjnga in South Africa,
forming the solid foundation on which the Oppeaheimer
empire stands. Copper mining is its principal occupation in
the Rhodcaias. though it exploits 11.lso lead, zinc and cadmium,
and b.u the diMinction of being the only producer of cool in
Rhodesia, where it controls the Wankie Colliery. Through
as50Ciated companies, its interer.a spread out into Tang:myik2,
Uganda, the Congo, Angola, Mozambique, Wttt Africa, and 1
even into the Sahara :md Nonh Africa, as can be seen by this
li.s-t of direct inve~tments:
126
NIO - COLONIA L 15W ANGLO A ~I UICA}( CORPORATION L IMITIO

Fi''"'1fC' ad InuttmtJJt Compn,·~.s l)rt:mi~r (Transvul) Damond !\lining Co. Ltd.

Alrican & European l.m-~tment Co. Ltd. \Villillmt(ln Dia.thOnot Ltd.
Mriuo. Loans & lnvt$01\rtnt Ltd.
Anglo Am~rictn In~mcnt Truat Ltd. CMI .\ft'ws
Anglo American Rbod.esi21\ Devdopmmt Corpon.t:on Ltd. A.malgam:ate:d Collicriet of Sooth Africa Ltd.
Ccntnl R.'"'"""' (l'ly) Ltd. Blctld: CoUL.-ry Ltd.
Ccntnl Reo<"'* Rhod<oia (Pty) Ltd. (.;orona.tion CoUicrM:s l.td.
Corl4oliclated Mince (ltl.ve:ttm~n.t) Ltd. N:tul Coal Ewplornti:on Ltd.
Coraolid:i.tf'd MiMI Sel~tion Co. lAd. N:ata1 Coal Exploration Co. l,(d.
C<INOlidakd l\'linca Selraion (Joha.nneBburg) l.td. New Largo Colliery Ltd,
De Bun Ho ldi.ngt Ltd. South M rican Coal Ettate~~ (Witbank) Ltd.
De Uecra Invwll".ent Trust Ltd. Springbc)k CoU1~ Ltd.
De Burs Rhodtsb I.rwestments L td. New Schoon~('h t Colliery.
Epoch lnvcstnKnU J...td. Comclia CoiJitry l.td.
).,.._Mining Hold;ago (Pty) Ltd. Springfield Collterics Ltd.
L)--dt:nbu.rg Ettatts Ltd . ll"2nf\."UU Coal Corporatl.c)n Ltd,
Onnge Fn:e State lnY'C:ftmt:nt Led. Vie:donteiu Coal Holding& J...td,
New Cent tal Wit?.·atertntnd Atus Ltd. Vie:rfontdn Colli.ery Ltd.
New Era Conootidatcd Ltd. Vryheid Coronation Ltd.
Chtmeu & Rbodtti:ln l nnatm.em Co. Ltd. Wankie Colliery Co. Ltd.
Rand Ameri<:aJt ln'I'CSttntnlt (Pty) Ltd. Wltbank Coal Holdings Ltd.
Rand Sek:ction Co~tion Led.
Rhode6.ian Acttptm«$ Led. C~pt>tr MiMJ
RhodtsJan Anglo American Ltd. Rancrott 1\-tiott Ltd.
Rhodes Invcstrueulli Ltd. Kan:sansl1i Copper Mining Co. Ltd,
South Mri~ Mines Sde:etion Ltd.
Nehanc:a Consolidated Copper MUxs Ltd.
South Afriean ~rownships. Mining & Fin:an~ Corponti()a Ltd. Rbod~ia Copper Rc6n.erie:t Ltd.
Tnnwaal Van:tdium Holding• Ltd. Rhabns Corporat ion Ltd.
Vuecniging Estate~~ Ltd.
We6-ttm Ultra D«p Lc\'d& Ltd.
Wat Rand Investment Trott Ltd.
Gold Mi~s
South. Wc:st Arrica Co. Ltd. DrAkpao l\1ines Ltd,
0a.saPfnntei.n ;\'lines Ltd.
&11t D~fonu:in Mi~ l.td,
[)jfiJIN)fUi M.illf.t
Ft~ Stat~e Ce:duld l\-1iPu Ltd.
De B«rs Contolidne:d :\lines Ltd. jf".anncn Gotd Mine:t Ltd.
C'..onJuli.datcd Diarr.ond Mine" uf South W.:il .o\friea Ltd. l,resicknt Rr:.nd C.r.~ld 1\fjnifl£ Co. Ltd.
New Jagc:n(ontcift Mining &: Exploration Co. Ltd. South African lAnd & EJ.plornioo Co. Ltd.
Di~mor.d Abrasive Producte: Ltd. Sprintt :\fintt Ltd.
Diamond Dcnoloptoent Co. o( South Mrica (Pty) Ltd Vul Ret/, Exploration & ){jning Co. Ltd.
Philmond (Pty) Ltd. Welkom Gold Mining Co. Ltd.
128 129
N!O·COLONULISM AHOLO AldiRCCAN COJII'OKATION' LIMITIO
Wettt-m Deep Levtlt Ltd. F.lect.ro Olemietllnduatriat Ltd.
\Vutt:m Hoklinr l.c:d. For-en lndu5trice: & Ven~ Ltd.
\Ve1te.m Reef& Explomion & .Qe,·dopmoent Co. Ltd. litnJens ~ative T..abour Org&nisatioo (Pty) Ltd.
Ptesid~nt Steyn Gold .\ltn~r~~ Co . .Ltd. liard Met.a.la Ltd.
Free Snte Saipl.a.u: Gold Mining Co. L.td. Inter· Mine Strvitc• O.F.S. (Pty) Led.
Lourtn~ llirquc:!l Fonurding 0>. Ltd.
Northern Rbodce:ia A"i.atioa Servittt Ltd.
OtN:r Mitti•z Pe:tJt Timbt.n Ltd.
J{ighvelc.l.Ocvelopment Co. Ltd. Pearlman Ven.een (S.A.) Ltd.
Tron Duke Mining Co. l..td. Rh011.ngJo Mine Seniees Ltd.
King Edward (C\tperife:rou•) }lyr-itc. Rhodesia Congo Border Power Corporation Ltd.
Mooasiu: & Nlintra.l Venture& Ltd. (rare earth•)· Rhodetia Copper Produces Ltd.
Munnik Myburgh Chrytotile Atlbelltot Ltd. Rbodesi2n SteeJ ~·dop•tt::nC. (Pty) Ltd.
Rh«hrorne T.td. Stone & Allied lndustrice (O.F.S.) Ltd.
Rli!Odcaia Drokcn JJiU De,·eJopmcot Co. U.d. V('nee'l'td PI)'V'ood$ Ltd.
TnDSTJUtl Manganue {Ply) Ltd. Ziru.: Products Ltd.
Tnuvul Van•dium Co. (Pty) Ltd.
Umgsbllhll. Mi.nerab Ltd. (Ihn•.:!Ulc:, ruti.k •nd.Prcon). LIJU t~"'l Esw!1
Vetccniping Brick & ·nte Co. Ltd. Anclo Amcncan (O.F.S.) I lou,ing Co. Ltd.
Anmerc:osa Land &: Estate$ Ltd.
17wf*1i"K Cec::ilia Psrk (Pty) Ltd.
Anglo American l'>o1pc<1ing Co. Ltd. Faleoo LhC:Stlutnus Ltd.
AniSo American Rhodesi•n Mine111l bploration Ltd. Onmee Free State Lc.nd & &titte Co. (Pty) Ltd.
Bor-dt-r Exp~ntWo & Dc\.'elopment Co. (l..y) l...td. Pmtin (Ptr) Ltd.
De Beer$ Pms:~ting' (Rhoddli:IUl A«••) Ltd. Wf:lkom Township Co.
Kalfrarian Mc:t.al Hoklings (Pt)·) Ltd.
Kalil".ditli Explor.ltioo lAd. It ;, interesting to note among the eompanica two that arc
Kuc:mpa Miotrll! Lrd. engaged in the enlistment of •native labour', namely, Anglo
LuliSII. Explor-1tion Ltd. Collieries Recruiting Organisation (Pty) Ltd. and Hllli$en&
Pro&peding &: Mineral Jo.teruu Ltd. Native Labour Organisation (Pty) Led. Recruiting labour for
S-.·uiland Rift Uplomion Co. Ltd. the Soucb African mines has always been an absorbing
Wutem Rift Exploritt:IOII Cu. Ltd. problem in connection with which there long ago grew up an
efficient org.aniiation for importing workers not only from the
I.J..m.I <WI s..<ry reserve& of Scmtl1 Africa iuclf, but also from the protectorates,
.MgJo American (Rhodesia Servioet) Ltd. the Rhodcsja5 and Nyasalaod. There are loog·stllnding arrange·
A>Ofllo Collie.-iet Rccru;ting O't"'intion (Ply) Ll4. ments with the authot'itie& of t.be PortuguC$1:: a)1Qnie5, ))$lrtiCU·
Boart & Hard Metal Prod\Ktl (Rhodesia) Ltd. larly Mozambique, for the recruitment of African labour for
Bout & Hard Meul Prod:uers S.A. l.td. work in the mines of South Mrica. ,
Cl.tv ProdUCt' Ltd. Enforcement of apartheid through the es.tablisb.meot of
~o EJec:trical (Pty) L.td. Bantustans, a.uch as that recently gone through in the Tran.skei,
lOO lSl
NI!O·COLOJUALiht ANGLO AMUICAN' CO•rOJ.ATION LIMITED

will force the chiefs.. under inducement. to auppJy increasing wield a preponderant influence upon the policie& of their
numben of local men for the minea.. There is now a pl~n to govemmenta in relation to the A&ican soeno.
atop the employment of v.-orkers from Zambia, Rhodesi-a and A look, for instance, at Rand Selection Corporation Ltd.
Malawi. and even from the protectoratet. It may well be brings ua at once u.pon one of the principal a.rms of Anglo
thought that these people ,,m be infecttd with the 'disease' of American Corporation in the working of its vast empire. Rand
natioruJiiam and hence add fuel to the fire of unrnt that ha3 immediatdy brings to miod the vision of fevered diamond and
~ Lit in South Africa itself. h is significant that Mozambique gold rushes that followed in the wake of the young Cecil
African5 are e.till to be allowed the prh·ilege of enriching $1)1Uth Rhodes and his brother adventurers in the late eighteen-
Africa's mine owners by their toil, not JtHs:t among them Anglo seventies.. Rhodtl' <-Juarrd with the Boers was over the fig-ht
Am•rican Corporation. to penetrate the interior to gee at the gold of the WilWatm.rand.
This company was incorporated in 191 i to draw togeth~ a His politica.l leadership ·was ;wumed to make himself king of
number ol mi.u.ing, io.\·estment and industrial compames the mining wealth that h.ad bee.n discovered. It was, acCQrding
already controHed by Mr Harry Oppenbcimcr, and to bring to a committee set up in the Cape tn examine. Rhodes' part in
them into tighter organisation with such other interests as the famous jameson raid, 'in hit capacity as controller of the
Mr C. W. Engdh.ard, chairman of Rand Mines, Kennecott throe great joint·stock companies, the British South Mrica
Copper Corporation, and other associates. As the guardian of Compaa)', lhe De Beers Con..,tidatcd Mineo. and the Gold
these interests. Anglo American atts at te<:hnical manager Fit'lda of South Africa, he directed and controlled the com·
and secretary to an ~tensi.,.·e number of mining and in- bination which rendered such a p roccedjng as the Jameson
vestment companies falling within its wide perimeter. In njd possible'.
its executive. ad:ministr.Jtive and secret:~rial apacitiea, it also The Jameson Raid finished Rhod•a politically in Soulh
arrang6 the fin.an.cittl life of the many enterprises coming Africa. It waA then he turned to what is now Rhodesia, where
under its care. he nude the British Sooth Mrica Company the power in tbe
The litl given indicates only the barett bones or
.:1\.n~lo bod that it has been ever since. Nor has the control of political
American't multifarious int.eresa. and if we were to ex11mane afl':airs by all the great mining combines abated in :t,ny way sin«
them in detail we should find ounelvea reaching into a most tbeo. Rather bas it intensified until they are the powers wbicb
tangled complex or atteri~ and sinew&. Many of the. under· col\t.rol and direc..'t affairs) not in Mrica alom; but by their
takings arc not only import'aflt in themadVC!ii but hne mvolve- integration with other formidable combinatiotU in Europe and
ments wh.ic:h weave together the mining, industrial and financial America. they exercise great influence in these continents also
worid o( Airita with that of the rea.t of the world. Such organ- and hence internationally.
isations as the Rand Selection Corporation, Union Corporttioo, De BCC!'$ and Gold l:ields remain. The intervening years
Rbobna Corporation Ltd., and certain othexs, participate in a have, natura.Uy, accn an cxtc~on of the opening up of mines
self-perpetuating and exclusive ensemble. Inter·actioo and and their exploitation, accompanied by a COO!tant adaptation
inter-penetration of iotere8UI is a predominant feature of their fiDucial arrangements. Gold Fields heads a vut
emphasising the monopolistic natur~ of the African mining organisation of its own. De Beers has come within the peri-
industry, whose leader& are the powerful arbiten o£ the phery or Rand Selection Corporation but ttill control& within
continent"& industrial growth, especi:llly south of the Sahara. It ita own group of tompanita the output and distribution of*
it not difficult to undentand bow, from this position. they and m01t of the Yi'Orld's diamonds.. •
their European and American uaociatcs and financial badterS In its own right, Rand Selection owna around t4,890 acrts
132 133
N20·COl.ONIALIUI ANOLO A)1U1CAN C01lPOIUTION I.U·UfED

of freehold property in aome or the richest mining arcu or withi..n the Rand Selection organisation. The twO holding com-
South Africa. A numlxr of towmhips have been laid out by panies, Rand Selection and Ran<bcl, shared abo in 1962 in
the oompany. in which it has Jeasc,hoJd rigb.ts of a high value. the enlargement of another Anglo American creation, Con~
Certain of its rights arc secured by a 92 per cent interest. in solidated Mines Selection Co. Ltd., regi!tc.red in ~he United
South African Townships, Mining & Finance Corpoott:LOil Kingdom in 1897, whose interests COl•er the major mining
Ltd. and its who1ly O\vned subsidi-ariee.. African Cold & Base activities of Southern Africa.
Metals Holdingo Ltd., Cecilia Park (Pty) Ltd. and Dewbunot The asseu of Consolidated :vline:s were jerked up to
Farms Ltd. £1$ million by the acquisition from companies within the
R2nd Seltttion ia, ho\Ye\•er, a subsidiary of Anglo American. Anglo Ame:ric:an Sphere of holdings worth over .£10,500,000
under whose direction iu scope was enlar:ged at the close of in the Brl1i:sb South. Africa Co., Central Mining & lnves-tment
1960 to enable it to participate 'in any new Lmsioess undertaken Corporation Ltd.. Johannesburg Consolidated investment
by Anglo .'\.merican up to 1 October 1970 on an increased Corporation Ltd. and Sdc<:tion Trust Ltd., as well aa by
perceut11ge basis. The enlargement of Rand Selection was smaller holdings in Ray Hall Trust Ltd. aud Rhodesjan Anglo
accomplished by the contributing of aharc:s, loans and ca&h to American Ltd. In return for ceding their shardi, the partici·
De Bt:en Jnvegtment Tmst hy Anglo American. subsidiaries pating companic:s have acquired shares io Conso1id2ted Mines
of Briti~h South Africa Co.• Central Mining & Investment Selection Co. Ltd.
Corporation Ltd. De Beers Conaolidllted Mines Ltd., and At the same time, Rand Selection took up, in aJSSOCiation
Johannesburg Consolid,.ted Investment Co. Ltd., ~\·ho have with Anglo American. Consolidated Mints Selection and
been joined by the American-controlled South Afr1can com- affiliated companies. an option on the purclttLSC of 100,000
pany, Engelhard Hanovia Inc., and Incernational Nickel Co. shares in Hudson Bay Mining & Smcldng Co. Ltd., one of
of Canada Ltd. controlled by the American Roc:kefeUer-- the three leading coppcr..gold mining companies of Canada,
Morgan groups. Rand Selection then ;a.oquired aU the issued controlled by United Smtn finance. Exercise of this option
capital of De Beers lnv.estrnent Trust in rerurn for the issue of wu made posaible by loans nis.ed in Amerieo., probably from
sh~re~~ of its own to the Investment Trust's $hareholders. the sam<" intt:rnts behind Hudson Bay Mining.
Under the arrangement, De Beers Investment bas become<' Rand Selection's operations also coincide with those of
wholJy owned subsidiary of Rand SdeetiOil. Yet at the same Anglo Americ.11n in the ~·cry important Swaziland Iron Ore
time by the acquiAition of its holdings in Rand Selec:tion, De Development Co. lt.d .• which ba.t c::oncludtd c::ont.raccs with
Bet:rs is now the majority holder of Rand's 33,08~,36~ shares two major Japanese steel p.roduecnt, Yawaaa J ron & Steel Co.
iSMJetl and rully J)a_id up of the 35 miiJion autborisod to com- Ltd. and F uji Iron &: Steel Co. Ltd., as well a_, with General
prise its capital of £6,270,000. 1t is pafecdy obvious thAt the Ore I ncernatiooal Corporation, for the sale to them of
loans and cash advanoed to De Been by the above-listed 12 million ton11 of iron ore over a period of approximately ten
oompaniea were in order to enable it to facilitate ita own and year&.
Rand's enlargement. Anglo American has enabled Rand Selection to participate
As a n::sult of the 1962 implementation of the agreed r.:· in the purchase from British Coated Board & Paper Mills Ltd.,
amngemcnt, De Beers Investment is now known as Randsel • United Ki"'ldom firm, of a large holding in South African
Investments Ltd. Its three wholly owned subsidiaries, Rand Board Mil!s Ltd. 'This', stated Mr H. F. Oppenheimer, in his ,
American l nvesunenu (Pty) Ltd., Rhodes lnvestments Ltd. re-port to the 7 ht annual general meeting of Rand Selection
and Jameson Mining Holdingt (Pty) Ltd., are now oonsoljdated Corporation L(d., in johannee.burg, on 26 February 1963, 'ia
IH ISS•
NEO - COLON IALII)ol

one of the leading growth companies in South Afric:~., and la

11llUU3cd by Stafford Mayer & Co., with whom the Anglo
American Corporation has long been as&Ociated in the eoal
industry'. 10. The diamond groups
Contractual arrangements with Anglo American have
secured Rand Selection participatioo in a number of propr:rcy
dcvclopments in centrtl Johannesburg. The two have also g~e
hand in hand in Anglo American's widespread pro-.pecung
activities and in certain de-..·eloprnent projecrs. Among tllero
are cxplontions into the reasibility of the bushveld igneous
complex of South Africa. .
Here, indeed, in Angkl American, is the most rarm6ed
induiCrial and fin2.0Ci-al stru<.'ture in Mric:a, powerful and com-
manding, the organisation that govern~ tl\e fate of many Tm: diamond indusuy of South Africa brought in a revenue of
millions on thls continent and 3tretdles out its inAuence over- £93 million in 1962. Two-thirds of this VI".JS from gem
stu. Like t1l monopolies. Anglo American is nC\·cr content diamonds, whose carat price wu recently raised by the indus-
with t..he existing boundaries of its empire, but is ever aeelcing try'" controller!i. Of such importance i1 the diamond industry to
extensions, ~rtly because it cannot afford to be O'i'ertake:n. South Afrie2 that there i" no duty on the export of rough
Hence it is continually conducting a comprchensi,•e prospect- diamonds.
log pt'Qgrammc in many pe_rta of Africa and elsewhere. in Di:.monM arc a major concern of Mr Harry Oppenhcim~r.
order to find untapped sources of mineml wealth that can be and it is through De Beera and the Diamond Corpontion, with
profiubly exploited. their associated companies and alliances that the operations of
his AngJo American Corporation sttetch out from South Africa
into South-Wtat Africa, Angola, Congo, &tt and West Africa.
to control until reoently the production and sale of pretty well
85 per cent of '-he world'&diamonds.. Even the distribution of
the Soviet Union'a quite important production bas beeo added,
by the arrangement to dispose of 'Red' diamonds through
De Beera' selling organisotion.
The De Been' group of companies, as we have seen, is
controllt=d by R:.md Select..i~n Corporoation Ltd. Tightly inter~
wo,·en, it interh)Cks wit..h the gern companies of Angola and
Mozambique and the domina1ing complex that 5prtads across
Lhe Rhodesias a.nd Congo. Rand Selection now dominate$ tbe
adminil\tration of the gmup by reason of its recent acquisition
of the total holdings of De Beers lnvestmeot Trust Ltd., oow 1
known as Randsc:l In~tmcnts Ltd. •
Chief openting company is De Beers Conaolidatcd Minc:s
136 137
NIO·COLONtALIIM TUI UIAWOND GROUPS
Ltd., nod still on its board is a member of the family of Solly The pte$C:Ot·day operations of Af-rican Explo11ivea ia by no
j oel, the East End Londoner with whom Rhodes adventured means so limited, nor is there anything i.nnocem about them oc
into diamonds along with Alfred Beit. Consolidation of the: the oompany's compositio1L Through De Hee.rs lndusuial
De Been, Kimberl~y and Griqualand West Minea of South· Corporo.tion it is j ointly owned by De 8ceq' principal, Anglo
West Africa was the original purpote of the company. A American Corporation; aod the South African branch of
considerable number of allied and t'\'en dill'erent imert$1S have Imperial C:hemicnl Indu$triea Ltd. I.C.I.'& ramifications and
since been added. Baides the mines in South Africa, De Beers its control of a number o( chemicals, synthetics and manu·
openu.es open·cut workings along che southern c~t and in factoring proce86e8 mnke it one of the mott powerful monopolies
Namaqual:md, South·West Afric:a. A .50 per cent interes.t is in the world. It long ago reached the tt.age of cutclis.ation with
held in the Williamson Mine in Tangaoyib; tJ1c o lhc:r holder other foremO&t chemicals and amwnenta organisations. I ts
is tbe Tanganyika Go..·cmmt:nt. can.el arrangements with the major chm1ical and plastics
Among lo; subsidiary oompanies, De nee'..Ni C..on.-;olidated material cotnpany in the world, the I.E. du Poot de NemoUJ"&
includes Premier {Transvaal) Diamond Mining Co. Ltd. , Corpo•-ation, llnk it with the modern military equipment
CoJUC>Iicbttcd Mines of South-West Africa Ltd., Diamond indu&Lry that setrM to lssue ine\itably !rom chemicals manu·
Corporation Ltd. and De Ueers Jndmtrial Corporation Ltd. fa.cb,are.
Directly and indirectly, jt holds something like .W per cent of Explosives laid the foundation of the du Pont rise to power.
the capital of Diamond Purchasing & Trading Co. Ltd. and 'Their fin.t big order wu to supply Napoleon in his vai.n
Diolmond Trading Co. Ltd., and 31·5 per cent of Industrial attempt to uush ToU3Saint L'Ouverture and the people of
Di&tributon~ (19#) Ltd. All these p urch..ing and di£tributing Santo Domingo. and the next was !or the war of the United
comp;lniel are main avenues through which the gem and Stotes-ag:Unst the SO·caUed ·&rbary Pirates' .• The following
industrial diamond production of the world'a principal pro- quototion is from Carlels in /ldimt quoted by Victor Perlo in
ducers ue distributed. De Beers Jndu~l hat also interesu: in Tht Empire of High Finan<t, poge 19;:
diamond production by its control of Griqualand West Ditmond
Mining Co., Dutoitsp:an Mine Ltd., New Ja~.rsfontein Mining 'This established the role of du Pont, which has continued
& F.xplor..ttioo Co. Ltd. and Consolidated Co. B\lhfontein down to the prest:nt day, when it dominates the greatest ond
Mine f.ld. mOiit profit21ble single corporation in the world, General
What seems at firM. glance to he a rather curim1s intere5t fo r a Motors.
company engaged in the di.a.mood industry is De Beer Con- Du Pont's association with J.C.J. goes b2ck 2bout forty
solidated's 50 per cent holding of the i&a.ucd ahare capital of, ytan. It was in 1921 that more •han half or
the Genenl
African Explosives & Chcmi~l Jnd'usuict Ltd. On closer Muton' s.b:a.r!;l; !>Old by the House of Morg:an were bought by
examiruttioo it will not appear so odd. The oompany thought Explosi·u::s Tr:ule l.td., a Briti1h subsidiAry of the Nobel
it C.'tpcdient and profitllblc to ha\'C ita own av01uc for industriet., with wl1ich I. C. I . was connected. Explosives were
purch:aaing explosives used in open.i:ng up working areas among I.C.J!searliCRltJperntiona, 3nd itt inlt.."n!~Jts in ~obd's
on its own mines and those of auociated companies. 'J"bat concerns in thi~ and other field~ wt.re &ubs.oquently ah$0rhed
WllS the original ;aim, but once i_n the explosive busines:s it wa& into the heart of the LC.J. empire.
a s:hon rood to their manufacture and expansion into serious E,·er aince that earJy coming togelht:r the aJLiance between
production of chcm.icab, especially those allied to explosives du Ponl and l.C.l. h.u grown more complex. BoUt of them'
manubcture. • T1t1t E~ Qj Hit}! Fitt.:mu.. ViUC)J Perio, p. 190.
t~ 139
lUO•COl.ONJALUM Till! DIAMOND GaOUft
had ctfeeth•e p:ttent and pnx:essing rights with the great for t.he&e wu met, together with six per cent total interest, out
Gcnn:m chemical combine, 1. G. Fa.rben1 ;~..nd they dividod of dividt-nds rcc:ci\·ed by the Government on its total holding
tbe world between them. Both duPont and I.C.I. continued of 600 share$.
to respect their arrangemente with l. C. Farbcn during the Consolidated Diamond Mine& of South-West Mrica Ltd., in
W<l!r. Du Pont and I.C.J. have abandoned aU pretence or which De Beers ConJOHdated has a majority bolding1 hu a
business riwlry in numerous rrutjor foreign markets.. includ.. concession co,·eri.ng large areas of alluvial diamond depo1its in
ire Canada, Argentina and Brazil. Thae they do butioess u South-West Africa, valid until tbe close of the year 2010. This
a 8ing1e, unifiod concern through jointly Qwru:d local com.. w:iiS extended by the South-West Administration from a pr«i·
panies ..• they have suc::c::mled in c::arteJising these tributary ou!S expir y date of l972. A most \131uable item in the De Beers'
chemical markets, thanks to their combined power and inventory of profits is the ·ne Pass' rO)'alty owned by tM
prtftige. • South-West Financial Corporation Ltd., a fu ll wbsidiary of
Consolid.'ltcd Diamond Mjne$, This royalty gives its owner
If we see l .C.I. in association with Oppenheimer oomp3lliea eight per cent of the gross proceeds from the 51lle of diamond!!
in South Mrica, this should not astonish us. Monopolies are produced in the Pomona area of Sout11-We:M Africa, in which
OODttantly drawing together, .Wgned by common industrial and South·\Vest Finance pos.ses5es landed property and other
financial interests in a given field and at a given time. The mineral rights and royaltic:s.
l.C.J••Oppenheimer combin ation ii not restricted to African Participation in the d..itunond diatributivc trade e:omts to
ExplosivtS but repeats iuelf in aaociation with other Oppen- Conaolidoted Diamond Mines through tbc following holding'"
heimer offshoots and groups. British bJCSiiing ia given to tltc
Diamond Co1pocation Ltd.-5,996.903 sbara.
enterprise through the secondment on contract to the company Diamond T~di.o.g Co. Ltd.-80,000 ~bare•·
nf an expert from the British nuclt:ar a.nns establishment. Diamond 1\zrchuing & Trading Co. Ltd.-200,000 sbari!'-
:\'loreo\'er, the military equipment produced at its factories i.11 Jndtllltri...l Di11tributcmt (1946) l .u l. -150,000 .$hllres.
ba.~ on the speci.licatlons of th e Drilish army, navy and 11ir De Dc:cn Holdinc• Ltd.- 1,150.000 ahart•.
forces.
I mportant though Mrlcan Explosives is to the Oppenheimer Its own production of diamOildS Jut~ gune U J) rro.n 89.'), 744
combine and South Afric:a'a military design• in Africa, it owes carats in 1958 to 933,937 in 1960. Taken together with its
its exia-tenoe to the diamon d mining in which it wu originally earnings by v.11y of roya1ties and investments in the diamond
conceived. his only one of the De Been Consol.id.ated progeny. trade, it is small wonder that it has over the past finoen years
There ore several othen, among them the inveat::mem company, been able to declare the following impreasive dividends:
De Becra Holding Ltd., of whieb it controls 84·5 per cent. 19i&-19+9: 40% plus 10% bonus cacb year.
On the death of J. T. Williamson, De Beers Holdiog contrived 1950: 40"• plu~ 20%.
to eecure an option on the whole of l ,200 shares ClOnatitut· 19Sl: 125%.
ing the: capital of hi.s mine in Tanganyika. A dt2l was fixed 1952-1958: 150% each year.
al J;4, 1S9,99G, with De Bet:rt rt:tspooUble !or eit.<ale duly 195!" 2(10+...
and intert:!t't on \Vi.lliamson's shares. Satisfaction of thdle items 1960: 200% .
was made by cession of 520 shan:s of Wi.lliamsou Diamond$ The company•a fully paid-up and authorised capital stands &I
Ltd. to the Tanganyika Government, which aubtloquc:IH1y £;,240,000. Its net consolidated profit in 1960 wao£1 0,731.168,
bought up a funher 280. The price of £ 1,317,272 ogreed upon after providing £4,622,73L for taxation. Dividends absorbed
1<0
'' I~
l'f 10-C!OLO.NIALiiM THI PLU(O)I.D CJOOPI
J:$,G67,437, the . . ~..,~ Oe lkcn Cocootidated. Clote MIOtiates of De Betn al10 ban intlftm in t.bHe
The ...m.rtcd profu for 1961 ..-.. J:12.1H8,000. after plO'iding tnbuury oxnp•nirs of lbe group. ~ll Mini!ft du Beatb
J:.S.410,000 for tuatioo 111d J:168,000 for dn-ideado on pr<fcr- S.A., a comp011y orithin the dngne< of the ~~ Genm.le de
eoce &bora. The figut< for ord......, dividend paymeoo io ""' U.lgiquc, b.. holdinga in lnd...n..J Distnbmon (1946) LAd.,
included, but n it liktly to be hrchu than for the prnious '{<'1-r. Diamond Tnoding Co Ltd., Diamond l'llrt:booing & Tntdin1
Dwnon.d Mining & Uuhty Co. (S. W.A.) Ltd. io osoo<iarcd Co. Ltd., Diamond DeTdopment Co. Ltd. and in ano<h<-r of
wnh De llecra Consolidated by rtOJOn oft cmion to th~ lane:r lhe Soci~1e G6n~ralc.-'a WJrdt or Lhe diamond world, Soctfte
company of a large portion of a diamond :uu in South-\Vat Oiamant Boort. Jndustri.• l OittJibuton, aLso within Sociiti
Africo. in t:xcha.nge for a20 per cent Interest in the net profit on O~nirale'5 direct invatmcnt portfolio, inc:reased ill 1961 divi·
diamonds recovered. The compan)' h.u 180,000 shares in dcnd by abou1 20 per cent over thoae of previous ytAtL
Diamond Dredging & Mining Co. (S.W.A.) Ltd. To satiofy .lkc:eka'& association with the tongo is continued through the
obit purch..e, Diamond ~t;ning &: Utility iooucd at par another Societe d'EI<'"'l!< ct de Culture au Congo (S.E.C.) and Cre
$40,000 ohares in July 1960, the aulhociacd capiw then beU1« Marittme Beige (C.:\1.8.).
inaesacd ftorn £300,000 to J:500,000. Ita Olhu int=s~S- Opcroting depooito on the wbtlaah n-"' the Congo, whtch
114,400 mar.. in lodumUI Diamondo of South Africa (I!H5) produce mainly induatriol diomoods llld auohing bout.
Ltd • wruo:h .-..d op<mioos in the 'I"'"' of 1960, but maioo lkah has a sul:toidiary, Socitt~ --~'- ..-oftinc
148,200ohara in Diamond M ininc& Uu1ity, u..-.1111197,900 manpneae depooits near a C..'- nifq! junction. At the
al•ra in J..I)Uiei Coppc:r Mines Ltd., an wbich DWnond ~g ol196:! Becob-M,.__ <st:oblithcd a 300 million
'1"'-inc & Utility aloo hold• 200,000 shara. All in all, tiDa franc aubsidUry, Socik~ )linilre de ~. in wbic:h it ia th~
<kmonwt:ratu what miaht be deecrlbed u a tight but cosy chid ahareholder. Kiltn,a h.u ~\'td ctrtain conctstionary
combination. and exploitation righ1.1 from B~b.Man~ese. which :also
The ffiQ&t intcm.ting hub of the whirling di;~mond wheel i1 J)Qrticipated in Ocmber 1002 in the creauon of tbe Soci&t:
the Diamond Corporation, whose l22 million capital is owned EuropCenn e des Derivn du i\11ang4lnl'~EDEMA. The rnain
mainly by De Been Contolid~tcd Mlnet, Di:amond Mine"-* of rmrtiffl tn the formation of Scxlrm" ""~ nAAOCia1es of the Soci~lt
South· West Africa and the evet·pmtnt A_nglQ American d'Entttprise et d 'lve8.tiJIC:I'ne'ntl du .Beoelr.a- SlDEKA- and
Corporation. The DS:unond Corpor~tkln purch~ on pttiodi· the Manganese Cb~icalt Corporation of U.S.A.
cal cootnct, the diamond prod~.~etion or the: world's mOll From the repon of the Soc:Ut~ C~nbalc for 1962, a dlf'«"titt&
impomnt produe<a, usually on a spoci5c q..- basis. Tbcoe hood l:>eiDod all thlt JeCIII<nt&IJOn. ot """"llt' that ao extniOrdo·
cliaatoods an: tb= marltetcd I"""""
the Central Sdlin1
Orpoi-. tog<tbcr with the OUlput of the De Been' ~'<'UP
Mrf m«ting of lkah on 21 March 196:! qrecd that Becob
ahould renou&Oe in fl\·our of 1 new compaoy, Soci&i M~
minct 1Utd u.- from rhe digiJtCII mm<dllld run br the South de Bah-....,...., all ita minint: "sbta in the Conca (naa"'-ly in the
Afriam Govt:m.ment, which il in the mining busine. oa. SUte Baltwonp region),llld ahould become the Societi d' Entreprioe
account. et d'ln...-atis.tc:menta du D«tka., to be known bY itJ abbrt\-iatN
Where do the oc.he:r diamond tnding companies come in? Conn, Sibdr.a. The purpote of Slbeb ~"U re·fonncd to cuvu
Diamond Trading Company Ltd. receivet and stD.s to the the im·otig:uion, promoting and financing, by whatever means,
ma.rket diamonds of gem or near gtm value. Industria) Dis· in Belgium as well u in the Congo, and other fortign counrrie~,
tributors (Sales) Ltd. have 1 corner on drilling material and uf all kinds uf enterprises. whether in mining, • industry,

...
bout for the mines, wruch obey ltllto the market. commerce, agrlculrurt 01 transport, especiaU)' thoae havins

··~
NEO·COLONtALIIM TOE DIAMOND OaOUI"&

connection& with mineral eubetAnoee of all kinds, sat wdl:as with industria] and agricultural punuiu, chiclly in Kasai.. Itt main
their deri\'·ntivea and substitutes. preoccup:ttion is diamond mining.
Within the framework of thia new objective., the former Fonni.nib-e is one ol King Leopold's original main con-
participations were incrtaeed and new participation. were taken t:t.'Riions in the Congo. He formed the company in 1906 whh the
up or were in coune of examination, in partiC\Illlr oertain one& help of, among others, t\\o'O American bu:sinC6$men, Thomas F.
having to do with the production of arcificial diatl'KIIlds. The Fortune and Daniel Cu~;~,'tnheim, the laa.t of whom built up ;a
principal activity of Sibeka, howt\'et, is to be it.JJ important fortune from mining in South America. Today Forminiere is
panicipation in Socit-t~ .1\tlini~re de Bakwanga, ~own as Miba. part of the vast compte...: dominated by Societe Cenmle,
Miba's production in 1961, ita firsc. year of workmg, was nearly Tanganyika Coocwions at~d itt child, Union Mini~re du Haut
15 million C..f'd(S: o! diamonds, \\ hich the chairman of SociCti Karanga, which h:t.~ the Congo's economic life in tbe pa.Lm of its
G~ntrale consic.h:retl 5hould be its normal 'rhythm', ha\'ing hand, and is now greedily extended toAngola and Moz::ambique.
reprd to the sdJlng market. Through its subs.idiary, Socre:t~ l.nttm:ttionale Commerci:ale et
Sibc.ka hu been busy in South Kasai, where other invest- FinanciC.rc de Ia Forminiere-TNTBRFOR- it luu~ sisler
mcot3 have been placed, including the modcmisatiQn of a interests wi.lh Beccla in a number of agricultural oomp!UlitS
150 km. road from Dakwanga to the station at Mwene--Ditu. working plantations in the Congo on a gntnd scale.
SociCt6 GCoCralc's piuticipation in Sibeka stands at 523,000 Other holdings held by Fonniniere are in mining oompanies
shates of no par Vllue. and it ha& a98isttd Beceka·Mangancsc to such as Societe de Recherches ct d'Exploicatlon des Dauxites du
place 10 million francs out of the ll million franc8 it_has been Congo-BAUXICONGO-featured also in Union Mini~re's
allotted in the 8l million franc eapiw of Sedem.1. S•bcka has lengthy list of more important interests. Oil is also included in
taken up another 10 million francs. The objett of Sedema is the the SociCie Generate's empire through Soei<tt de Reclierd\..
manufacture of manganeie compel&ite& and m:mg:mesc metals et d'Exploitations des Petrole&-SOCOREP. This is among
lor the European market. FonniniUe's investments.
It is not long before any endeavour to trlol.CC the companies The Diamond Corporation acu u the ra.Jlying tt.nt:re for the
engaged in a particular field of mining leads i.nttl 2s.Mciati.on5 merchandise offered for sale by all the l3tge produeer&. In its
connecting with other sec:tonJ or ra" matenals productton. role 33 llle ctntnl buying organisQtion for the international
Thus our examination of the De Beera' diamond ~nterprise& has procurert or diamonds, it is nOt lurprising that it s.hould have
taken us into tbe eve.n \'aster world of Soc::iCt:C CCnCralc's a share in some of the 11\0f;t imponant producing companiC$
i.ntercsta, which \Te shall meet again more than once in the outside the South African grQ\Ip. MQ:fn H. F. Oppenheimer
course of our journeyings through the tangled mllZe of inter- and H. j. joel of it& O'ft'D directorate 8re seated on chc board of
national oontrol of Africa's basic richa. It is also significant the Angola Diamond Co. (Companhia de Diamantes de Angola),
that in almost co.·cry comer we find lwkin.g some coupling with another two membcn of which, Me&.r.s Alben E. Thiele and
American major industrial concerns. ln the present case, A. A. R)'>Jl, adorn the Formini~ board. Mr Thiele has
Manganese Chemfatl:s Corporation comes immediately and important connection& with CCJUin powerful American groups.
directly into the picture. He began his a..reer in 1909 wich the Guggenheim brothers, one
Looking further into African diamond production, we find of whom wu so helpful to Le~d ll. Thence he graduated to
another Societe ~nt.ra.le off-shoot operating in the Congo. the chairmanship of the Pacific Tin Con901idated Corporatio~
Societe InternatioQ;~le Foresti~re et Miniere du Congo, known and to directorates in the Kennecott Copper Corporation and
briefly a& Forminibre, concerna itself with mining, oonwtercial, itt subsidiary, Braden Copper Co. Oil and nitrates are also Mr
144 145
NBO·COLONIALl&W THJl D1ANONO OII.OUPS
Thiele's busincse. Maracaibo Oil t~nd Barber Oil are numbered no duties on diamonds exported. 1t a.IAo enjoys a loan from the
among hit directon.bipa, at arc Chilean Nitrates Salts Corpon· Angola Government o£ l 00 million escudos, in return for the
tion, and the chairmanship of the Feld&J)3r Corporation. As a &co issue of 100,000 shares of 110 cscudOtl each to the Province
director of Angola Diamond and ForminiCre, he h~ most of Angola in 1955. The unheard-of uneconomic rate of interest
certainly not innocently strayed from his basic moorings, on this loon is one pet cmt, repayments to be completed in
anchored in Guggenheim, Kennecott Copper, oil, tin and 1971. Angola Dillmond Co. holds 16·266 p« cent ohhe issued
nitntes, in which the Morgans h2\'C their helping hand. The capital of Sociedade Portuguesa de L:tpidac~o de Di:unantes.
Morgan Guaromy Truat is one of the main aneries from which Dhuoond Corporation OOs contractual arrangements for the
fl~·s finance for the Oppenheimer combines. Morgan is also in pun::lutseof Angola Diamond'& output, which hu r ecently been
association with the Banque Belge. the leading banking string running at O\'er a million camts and is estimated to ~ve even
in the Soc..-iCu! Gbu!rale strut:ture, and the biggest bank in bjgher yields, since mechanical excavators ::tnd washmg plant
Bdgium. Represented oo the Angola Diamond board is o.noth<:r have been inshllled, following t11e proof of extensive alluvial
Angola concern, Companhia de l'esquisu Minciras de Angola. deposits. Gem diamond'! rqweseot G5 per cent of the output.
Angola Diamonds has monopoly rights: permitting it to work Diamond Corporation has broken into the Ivory CoaAt, with
for diamonds over almost 390,000 3quare miles of Angola, an the formation of a JocaJ sub!iidiary (0 purch~se diamonds on the
area almost four times the size of Ghana or Great Britain. open market of that country. How open the market will be is
Forty•thrte minct art. in opcrac.ion, tbree new ont:l having been anybodfs gues&. Some of the other newly independent African
opened to repla.ee three whose rtsen·es were running out. countries are strivin g to break away f.rom Diamond Corporation
Prospecting is going oo for further dl1)osita, nineteen groups domination. Ghano has set up its own diamond market in
being at work. Direct interest in the company. registtrtd in Accra, and all sellers, including ConsoJjdated African Selection
Portugal, is held by the Angola Government, the on·the-spot Ttu.~t Ltd. (CAS'T), working a 68 aqu.nre mile concession in the
admin.istrative arm o£ the Pon-uguese Government. It holds Akim .1\bu.alc:w:a dia.rict, must sell through it. Sierra Leone
200,000 •hsr05, slightly in exce,. of the 198,800 hdd by lhe Selection Trutt Ltd. ia CAST'S subsidiary operating in Sierra
Socitt~ Cenen.Je. About half the Mricau worker& for the Lt."One.
company are fon.:ed Jabouren rounded ut> by Lhe authorities lncredlbk 88 it may sound, Sil'Tro Leone Selection once held
md rt-oc,Oving a monthly wage of around se\'cnty cscudOl, exclusive d~ond mining rightt O'\'er practically the whole of
equivalent to abouttixteen !>hillings. The very handsome profits the country. In 1955, (olJowi.og protestations from the people,
oE the company are divided equally betw«n the Province of capccially in the rich diamond region of Kooor, the cxt.t:nt nf
Angola and the shareholders after six per cent h.a& been allo- its concession area wu reduced to A01ne 209 sc.1uare miles, then
cated to tbe 1nanaglng bodies.. the extent o( the company's existing v.-nrking. The curtailment
Shareholders' profit at the end o! trading, 1960, wa& o! right$, however, was more apparent than real. The oon.-
13 7,000,931 escudos, after the &arne lltr\Ount had been resen·ed CleNionnry rights are for thirty yean, b ut rutricted rights were
for the Angola Province and 15,~1,649 escudO& !or legal granted over a further 250 &quare miles. of which a hundred
rc&en-e. Total profits, in fact, amounted to 289,343,51 1 etieUc.l<*, have since been taken up. The company is aJso a.Uo\\'ed
of which ll4,800,000 escudos bad come from profits held in to prospect for deep deposit& of dia.monds anywhere in
reserve. £nterim and final dividends absorbed a sum for the Siurn Lwne, for a period of not less than cen years; OUld to
1
year 1960 of 136,670,000 escudo.. mine them.
The company pays no import duties on phun or material and That the agreement was a aham is proved by the underca.king
1<6 1<7
N£0•COLONIA1.JS;w THF. DtUfONO CaOUPE

given by the then Colonial Covcmment not to grant bef~re and in 1961 got as much u 30 per cent of it# total weigh.t in
197$ to any applicants other than Sierra Leonians., or comparues carate elsewhere.
in which the benc:ficial interest or gteQter part of ic it held by It is only too obvious that :\1r A. Cheater Deatty moves
Sierra Lconiant. any diamond prospecting licence& or lt=11..et among t-he ex.olted ranks of the diamond w'Orld, especially thlt
without first offering such licences or leases to Sieru Leone preponderant sector of it dominated by the De Btenl' group
Selection Trust. Though this vinually gives a free hand to the and pivoc:ed around the Diamond Corporation and ita Selling
company, the Government nevertheleA maclc: it a payment of Organisation. It is 1herefore difficult to understand the play
£1 15001000 to compensate for tuppoeedJy 106t opportuoities. that Mr Beany made in connection with the Sierra Leone
All the six million 1h:utt issued out of the 61400,000author*d Government Bill, passed towards the end of 1961, obliging 111
to make up the capital of ,CL,600,000 are bt:ld by CAST. What producers of diamonds in Sierra Uone to sell through the
profits the company makes are not publicly known, eince Governmem Diamond Office.
accounts are issued only to shareholders. Mr Beatty, as ch-ainnau of Selection Trusl Ltd., a" well t i of
The chairman of both CAST and Sierra Leone Selection ~ CAST and Sierra Leone Selection, its subsidi:1ry, assc•·ted that
Mr A. Chester Beatty, who ru.. aa colleague• on both boards the expin:d contract that CAST had witll tJ1e Diamond
M...,.. E. C. Wharton-Tig>r, T. H. Dradford and P. J. Oppen· Corporation had not been renewed beause o( the excts."livc:
heimer. Mr P. J. Oppenheimer also tits on the board of t~e commission of 12 per cent demanded by it. CAST had offered
Diamond Corporation, alongside Mr W. A. Chapple, who as four per cent. whicll had been ~octed. A contract wa5 therefore
another colleague on the CAST boasd. Both thes.e gentlemen made with Harry Wioaton, Inc.. of New York.. owncJ'8 and
sit together on the London Committee of De Been Comoli- cuttert of the famed Jonker diamond, who were said to be
dtted MinCB, Mr P. ]. Oppenheimer also oocupying a seat on looking for a direct 60t.nce of supply wWch would sidestep the
the Johannesburg OJm.mi.ttee, on which he is wociated with Diamond Corporntion. In viC\• of the interconnection bet~n
Major-Geocral I. P. de Villier•, C.B., and Mr A. Wibon, me Selection Trust and the De Beers• comp2.0ies, including the
last-named two bcing al&o joined together on the dir~tor".t.le o r D iamond Corporation, through interdependent shareholdin.gs
Consolidated Diamond Mines of South Wnt Africa f.-d. il5 \\t\"ll as directori:a1 interweaving, it is strange to witness one of
Mr Thoma& Hortt Bradford represents Stlec:t;on Tru&t Ltd., the mo.Jt prominent links in the cha-in, M_ r A. Chester B~tty,
o( which he is managing director, on ittl m:tin associated prnltsting his anxiely lO proteCt Siern. Leone's interettt against
companies in America, the Rbodesi:u, Canada and Venetuda. the Corpor.atton, of which ht: is \'ery much a part.
Mr Beatty k~ company wiLh Mr Bradford on sm·cral of these The protest from Mr Really wa.' thaL if Sierra Loonc
boards. Mr Chapple's connection with the diamond world is on Selection were obliged to submit iu prod·uetion lo tile G<no'em ..
a deci.da:lly high le"·el, if we may judge from hia din:ctora~ip ~( mcnt's Diamond Office tJ1is would ultimaLdy go to Lhc
the Banque Diamantaire An"e.raoi.tc S.A. Antwerp, whtch L5 Diamond Corporation, which wM the Diamond Office's end
still the world'a major diamond-cutting centre, employing over purchaser, precisely what he wu fighting against. Moreover,
13,000 people in this industry. The Antwerp Diamond Bank this would mean IC\'ering the contract with Winston. for whieh
occupies an important strategic position. Sornethlng like40,000 breach compcna.ation would ba,·e to be made. Mr Beatty
to 50,000 carats are cut in Antwerp every week, the bulk of the pointed out that his eolieitude for Sierra Leone's welfare had
rough stones coming from the Diamond Trading Company, at caused him to secure a revaluation of the D1amond Corpor.niog
the London end of the De Beera' Central Selling Organis:nion. contract in 1957, ao that o.n additionll1 £2,700,fX1J hod been
But Antwerp searches other sources for itt diamond supplies received in its last three years of operation.
148 U9
SEO•COLONfALISM THJ: D IAM OND OaOUPS
There i$ a curiOU!I twist here. for Mr Beatty assena that m.ilJion carata.. l\'lr Collin.'\ scouted round for additional capita)
4500,000 more in revenue would be received by the Sierra for hi.s Sea Diamonds Compan.y1 hoJdjng tl1c opcracin.g
Leone Govcmmctlt under the \Vinston contract than under one company, Marine Diamonds. lt was reported that Mr Oppen•
concluded with Diamond Corporation. Four pertinent quea.- heimer, nf1er watching his activitica wid1 90mc cooccm, decided
ciona arise from thi$. What in~ed percentage of revenue was to c:oHabor.~te with Mr 'Collins. It wouJd appear that Genernl
represented by the additional £2,700,000 Mr Beatty said was Mining & Finance Corporation and Anglo Transvaal Consoli~
obtained from the Diamond Corpontion on the last three yean dated, which we have already met as part of the Anglo
of the expired contract? How much of this came into tl1c: hands American complex, had engaged them5elves in the venture.
of the Sierra Leone Co\·ernment, and what increa&ed per- They were to make av:Uiable 2.dditional funds up to £500.000
centage of re\'tnue did it rep resent for the Goven:uncnt~ J low to equalise with a like 2.moum co be put up by Mr Colli-"' and
is it that M _r Beatty could not obt2in similarly advantageous the t.."'mpanies controUed by him. General !\•lining has an
tenus from a uew oonuaet with Diamond Corporation? exchange of shares with Angro American, and De lkers Con-
Js the e~ht per cent beuer price From Winston accuntely solidated Mines is among its portfolio of inves~nt$, as i$ also
reflected u'l the l':fltimat.e of some £500,000 additional revenue National Finance <Arporation of South Africa, which is so
rOt" the Goven1ment d1a[ would accrue from a contract with helpful to a number of Oppenheimer comp:1nies in the ma.tter
\Vin!ton? of loans.
But is not aJI this just a facade aimed at maintaining the De Been apparently had an option on 25 per cent of Sea
fiction that Selection Tru't and Diamond Corporation are Diamonds' equity and a 6rtt refu.o;al on Mr Collins•s holding,
unrelated entities, a fiction retailed even by a press one would said to be about 80 per cent. Sea Olamofld.s in turn holds some
asrume knows better? For we have the Freetown correspondent 44 per cent of the share capital of Marine Diamonds. General
of JVut Afriea declaring in that journal's issu~ of 27 Janu2J'Y Mining holding 25 per calt of the balaoce. Anglo Transvaal
1962 that •the two European giants io the (diamond) industry- 16 per oent, and anocher Oppenheimer company, Middle
Diamond Corpomtion and Selection Trust-were clearly at Wltwntersr:a.nd (Wes-tern Areas) Ltd.• administered by Anglo
loggerheads'. The heart of the matter really lie in Mr lk.i!ttY'" Transv:aaJ, seven and a half per cent. The remAinder is held by
complaint that the Siena Leone Cove-rnment 's r~gul~ttion inter~ the original con(."'fSs.ion holden. Middle Witwatersrand has a
feres with his company's freedom, cxpm.~ly latd down by the right of 10 per cent panicipation in any proepocting venture&
form~r Colonial GO"O·ernmenc in their conceRSion agreement, to undertaken by Ang-l.:.vaal Rhodt·sian Exploration Ltd., ofwhote
seD u they think fit. :\1r Deatty, like the monopolistic interests equity 50 per cent i$ IteM l.ly Kennecott Copper. Everything
he represent! so efficientJy on many boarda, does not wish to seems to move rou1ld in circular motion within a ring that hat
recognise the winds of change that have come wi1h African no end. Mr Sam Collin$ may ~1ve acted quietly and shrewdly
independence. giving the new nations the opportunity to order in staking his claim to an oif&hore diamond rtt:f. and he will in
their economics in the way they consider more beneficial for aU probability make a killing. Dut the greatest winners will
their own good. certainly prove, in the loog run, co be Mr Oppenheimer and his
Intrusion into the diamond field hM been made lately by a oohom. The backstage goings-on to obtain control or what
Te.un who has more us.ually appeared wherever oU was bub- promises to be a most highly profitable venture prompted
bling. Mr Sam CoUi.ns h.aa put his hands to gathering diamonds TM Ec,onomitt's Johomnesburg oorrespondent to obse-rve tha\
from the sea bed of the Cbaroeli Reef on the South-\Vest 'the full ltol)' of the retmt negotiations, if it ever emerged,
African ooast. r~rted to contain a minimum r eeerw of 14 might tell of a fieroe struggle for control betwetn South Africa•,
150 151
NEO·COl.ONIALttM
min.ing magnates i.n lhe best uaditio.o of the roogh, tough C:l.rly
days of Kimb..-ley and the Rand' (16 March 1963): .
I t is unlikely that De Beers w1ll be able to make 1ts way 1nto
the Japan~ company now setling up plant in jap:m for the 11. Mining interests in Central
manufacture of synthetic d iamonds, which will initiJlly rum
out 300 ()(X) ca.rnl.i a vear to reach 600,000 annu.-Uy. De Beers,
Africa
in :usoc'iatioo with S~&~ MiniCrc de Beeeka, have their own
plane in Scwth Africa for the manufacture of synthetic di~nd
grit oper.ne<l hy Ultra H..igh Pressure U~ta. General Eltttnc of
America also has a process for turmng out manuf11ctured
diamond&. T h e japanese say theirs is not the ~arne. And we
have referred earlier on to Sibe.ka's interest in the possibility of
producing artificial diamonds. There)l2,•e been &e\'etal attemp~
to create diamoncl.s by a factory pi"'Ctlt but the)' have, unul
oow, proved somewhat un~nomic. With th~stro~g likelihood lP we examine the intricacies of the Anglo-American extension
that avnthetic stone& wh1ch can compete m pn« and per· through tlle exploitatioo or Africa's raw material$, we find it$
{ortnQ.~oo with the natural prod\Jct \ \ ill soon be produced, strong arm holding down the "ealth of Rhodesia, South Africa
another blow may be $'tl'Uck at ' he developing producer and South·wcs,t Africa hmh through direct holdings as well
countries of Mrica. as through those of it5 American EngelhArd and Kennecott
Copper associates and the British South Africa Company Ltd.
The British South Africa Company wu a creation or Cecil
Rhode&' genius in empire building. Watching the acramblc for
land$ in South Africa in d\C early 1890$, he decided th:tt unless
he got in quickly, other European adventurers would toke up
'large tracts of valuable country ruled by savage native chiefs
in the interior of Africa'. Using his notoriout ageota, Rudd,
M:~guire, Rochford and TbomptOn, war was provoked be·
tween the MatabeiC$ of what is now known as Rhodesia and
thc:ir chief, Lo Benguela. 1'roops of the South African Com-
pany, which wu granted a royal tharttr in 1889, went
ooensibly to the support of the chid' ..g-.ainst hi$ people. This
lfiek of Rhodes, deseribtd by oertain hiscorians 415 •adroit
handling', !ittured the mmpany a cc:mcc:ssion to work mineral
nghts in the vast expanse of land that now forms the whole of
Rhodesia.
When Lo Bc:ngucla woke up to the bitter realisation of the 1
trickery that had divested him and his people of the 'rights in
thcir own land, he petitioned Queen Victoria u followo:
1~2 153
NIIO- COLO X lALISM MINUI'O INT!RUf"S IN CENTRAL Al'RICA
•some time ago a party of men came into my country, Zambia. Thus he dro\'e a wedge bet~ the Portuguese
the principal one appe4ring to be a man named l~udd.They colonies of Mouunbique tnd Angola. All thi3 was done with
aSted me for a place to dig gold, and said they would giv~ the buoca.nttn of his South Mrica Company, which had
me certain thingt for the right to do eo. I told them to bring rect'ived rhtee tupplcmenwy charten &nee the initial one
what they ,.,.ould giYe and I would then show thtm w~t 1 was granted in 1889.
v.--ould give. Origin211y the oompany had administrative rights over
A document was written and presented to me for s.ign~­ Lc:rritocy in Southern Africa lying to the north of Btthuanaland,
rurc. I asked what it contained, s.nd wu told that in it were 10 the north and west of the Transvaal and west of Portuguese
my words and the words of these men. I put my hand to it. Eas.t Africa. It also had rights to ez:[end the Cape railway and
About three months afterwards l beard rrom other telegraph systems northward and to make cooeessions of
sources that 1 had gi\'en by that documenl the rigbt of all mining, forest or ot..hcr rights, and much more besides.. Its
the minerals of my country. I aHed a meeting of my administrati\·c and monopoly rights: in Northern and Southern
Tndun.'lS and aiS(I of the white men, and demanded a oopy Rhodes.ia were ceded to the Uritish Governmeru only as late
of t..he document. It wa..\ proved to me that 1 had signed as 1!.123-4. Mineral rights in tbe Rhodesia!, IMl'"'t:ver, were $till
away the mineral righL~ of my whole country to one Rudd retained, as wclJ as a half interest for forty yt:ars in the next
and his friends. I have since bad a meeting of my lndunas proceeds or the disposal of land in North•WtAtem Rhodesia.
and they will not recognise the paper, as it contain! neither In return, the British South Africa Company received a cash
my words nor the words of those who got it. pa:t-ment fr-om the British Go\·crnment of £3,750,000. T he
After the mcetin1 I demanded that the origirutl document commutation of its h;:JJ interest in the proceeds of land disposal
be returned to me. It hru; not come yet. although it is two was ITI2de in 1956 Cor an annual )XIyment of £50,0Cl0 for the
months &ince. 1\0d they promised to bring it back iQOn. rel1l2ini.ng eight yeara to run from 31 March 1957.
The men of the party who were in my country at the time A cash purch:ase of the mineral rights was mtde by the
were told to remain until the document was brooght back. Sout..hern Rhodaia Co,•cmment io 193.3 for £2 million, lhil
One of them, Maguire, b2t now l(!ft without my knowledge ain'le from Mrican taxpayers• money. This still left the com-
and against my ordera. . pany with irs mineral rights in Northern Rhodesia which, by
I write tO you that you may know the truth about th..s. arr.ange•nern, it is to enjoy until I October 1986. However,
and may oot be deceived. since 1 October 1949, it "'-as payi.ng to the Govenuneut of
With renewed and cordial greetin~, Northern Rhodesia 20 per cent of the net revenue (rom these
Lo Benguela.' mineral righta, which a-urn waa regarded as an •expei'W!e' ro..
the purpose of Northern Rhodc:sia.u income: tax. Furthamore,
Wbu itl thO$C days gave back land filched by whatever means 'net revenue' "na defined as the profits or the company
from 'Jiavage uuiYe chiefs'? And who today will give them derived from its mineral rights calculated in the mne manner
b;~.ck to the people from whom they were taken unless that as for the purpose of Northern Rhodee.i-an in<X>me tax, i.e. after
people insist on their return by their determined and unhed expenses had been charged against it. The arrangement
will c:xpres&ed by a Union Government? provided for the non·i.mposition of mineral royalties u such
At the close of the nineteenth century, Rhodes, dreaming in Northern Rhodeaia, while Her Majestts Government
undertOOk to secure so f:~r as possible thlt 11ny govt:!mment
1
of a Cape to Cairo empire. pushed from Matabeleland into
Mashonaland across the Zambesi, into the country now called whicb becanw responsible during the thlny-ecven· year period,
IS< ISS
SIO•COLONlALII~t MINING INTI&IISTI tN CENTaAL Af'JIICA

that i1-, up to I October 1986, for the :adminiatration o£ 2·49 per cent; sundry companies, I·9 per C!Cflt. On 31 Dcce:rnbcr
Northern Rhodesi:a should be bound by these arr;tngemcnts. 1962, the market value of these holdings was put at £10,500,000
The British South Africa Company, in spite of recent action while ~ew Rhodesia Investment's net assets stood at
taken by the government of Zambia to tccurc mineral righbl, £12,100,000. Aa for Anglo American Corporation, itt net
is still extremely powerful. It owns forests, agricultural t$tlltf:3 aS&eiA at the e nd 'Of 1961 were £1 14,500~000. Nev., Rhodesia's
and real proJX:rty in Zambia, Rhodesia, and in Bechuanaland. 'import.'\(Jt block of ibares' in Consolidated Mines Selection
It also has minm.l rights in 16,000 square milet of Malawi Tru!lt Ltd. will be increased aJ a result of the current financial
territory. It formed Cecil Holdings Ltd. to acquire the whole arnngement with Anglo American, whose own share capital
share capital of British South :\frica Company's subsidiariell) wiU ~ augmented (rorn [.9 million to £10 million by me
with the exception of Rhodc:sia Railways Trus-t Ltd. Another creanon of another two million ten shillirlg shares.
formatio n, Dritisb South Africa lnvestments Ltd., acquired The compljcatod links between superficially separate entitiei
the greater part of the parent cnmpanfs investments in 19~8. are shown by their imoe.'>.tment4 in ooncernl of con:unon
Other subsidiaries include: interest. New Rhodesia's major buyings into the Diamond
Corporation, Johannesburg Consolidated Investment Co. Ltd.
British South Alri«n Comp.any Management Servico Ltd. and Rhodtlian Angkl American Ltd. tie up closely wid• Anglo
Uriti6b South Africa Citrus Products Ltd. American'a activities in the Rhodesia& and in the Congo and
Chart~r Properties (Pvt) Ltd.
rnd.AN Jn~tmenu. (Pvt) I..td.
Portuguese territorits.
lkit Hoklir.gs (P,-t) Ltd, . Johannesburg Consolidated is concerned principally with
Jameeon Devclopm~t Holdtna:• (P'ft} Led. diamondi, copper, gold nod platinum. It also carries on
Oritish South Afrie2 Comptny Holdlnga Ltd. (U.K.). prospectina operations, mainly in South Africa and Rhodesia.
Tts wbsidi:uy companie& include, among others, &.rnato
The: British South Africa Company wu dives-ted of the Brothers Ltd. and Rar.uto Holdings Ltd., nnd the important
greater part of its holdings in companies oper.uing primarily African Asbeitos-Cement Corporation Ltd. An asoci.o.t·ed
in the Republic of South A/rica by its particip1tion in the 1961 company, M.Kite Smdten (Pty) Ltd., is jointly owned by
exchange of s.hares with De Beers Investment Truat Ltd. It R\litenburg Platinum 'Mines Ltd. and Johnson Manhev &
ttill retains itt holding of 700,000 shares in Union Corporation ~· Ltd. j ohn30n Mattht:y, a U.K. firm uesning copPer,
Ltd. ruckd, platinum and other met:als, su.pecvised the erection of
The company':~~ dose a•'lo.'lociation with Mr J larry OppenM plant in the vicinity of Rustenberg to treat part of the product.
heifnet and the Anglo Americ:a.o CorJ)()1'3.tton in the Rhodaia!S of Matte Smcltc:n. Johannesburg Consolidated's lut iuue or
is to be drawn tighter by means of a proposed share deal shores wa& in 1958, when 600,000 were issued to New Rhodesia
between them by whk;h 1·2 million ordinary ten shilling $hare! Investments.
of Anglo American will be e:xcha.nged for £2·5 million in £1 Rhodesian Anglo American has large shareholdin_p in the
shares of New Rhodesia lnvcatmcnts Ltd., a public company leadd>g copper mmes of Rhodesia. T h- diroct holding> are
registered in Rhodesia and equally owned by Mr Oppen ~ awollen by those of companies in which it h.a.s intcmt. Thus a
helmer's Ortnthur$t Investment Trust (Pty) Lid. and British 52·39 per rent interest in the ordirulty 'A' IStock of Rhobna
South Africa's tributary, Cecll Holdings. Corporation Ltd. givu it an added intere~t of 17·63 ~ cent
New Rhodesia Investnu.•:nts indude: mining finance, 4~94 jn Nchanga Consolidated Copper Minet Ltd.. in which its
per cent; gold, 14--4.; per centi diamonds, 9·38 per cent; coa.J, direct p:uticipation is 21-429 per cent. Through its. penetration
I~ u J$7
:IIIO•COLOHIALIIM NltUJrfG lt"TIIUTt IN CINTa.U. ,\nlCA

of RhokllM ond Nchanp. Rbodeoi:an Anglo Amtri<an hat~· Pr..ruu Portlorul Cement Co. (Rhoclaia) Ltd. and 25 per cont
utd.ir«t Lotr.rttt tn Rhodesia COf)per Retinain Ltd. Again, 1t1 of Clay P.oducts {P>'t) Ltd.
obhque pattiapocion in Mufulira Copper Mina Ltd. ~u. Boncroft Minea seema to provide the rich... pidting> for
Rhokana.. lnacaa its own pa.rUcip---.uian ol 572,21' sbart:t to tbe --iroo t!igation o! the Anclo Amtric:an hydn. TIUs
IS 92 p<r c<nt. In Rbod..;on Alloj'1 (P>'t) Lui. • p.oduccr ol oompany wu formed only i.n 1~. lo take up from 'tbe.,.......
fcno-chromc:, it hM 263,226 shons. and in RLOO<oia Dtt>kon o( tbe .run...! righ11, tbe Britioh South Africa Co.' special
Hat D<vdo!>m<nt Co Ltd., 1,42J,90> sud units. An.._ gnnts ol miniog rightJ ud proopoc:dnj; oil;hts a<>quiRd from
25 p« t:<Ot look!~ ol Konsonsbi Cop....- Mining Co. Ltd. hu Rholt•"'- C..pital is IUthoriaed It £13,7!10,000. The Brilillt
been _,,.,.. by the ocquioition of 39t,209 ahara. l\hodcowl South Africa Co. too& up thru million oobares, Rhobna
An&lo .funerican'a dir«t and indi.rca. participation in &ncroft 9,500,000 1nd Rhoclcoian Anato Am<rian 74,700. 1bere .,..
M1net Ltd. amou.nu to 2+-5+ per cent. Rhobna civet it an an interchange of sh•.rt'!J with Rhobn1 u "en u with
intcrctt in Chibuluma Mtnts Ltd., while Rhobt\a in UIOCia- RhodC!Iian Angl() American. lo 19.55 an Additional two million
uon With Nchanp ltttds it into K.tlind.iru Exploration Ltd. ahara were tubscribed for by Anglo American and Driti!h
A holdin.g of 31,100 &ham gives 1t a subst:antiAlJJUn:baae into South Africa Co., who have provided loana or £2 million and
Kucmpa Minerals Ltd,, a company C&IT)'ing out prospecting C3 million rtapect;vely.
optrttioM in the western province of Zambia. Anglo American, Rhodttian Anglo J\meriean. Nch•nga and
Nor ure other prOipeetin~ companies ignored by lthodcshm Rhok.aoa were given an option on throe milllon of Bancroft••
An~lo American. Thirty-one and a half per cent of An~lo ordinary shares up to 31 March 1963. In D<:cembcr 1961, the
Amerialn Pr01pec1ing (Rhodesia) Ltd. has wme under 1t1 right was exercised on a m.iUion of the ahares.. of which
conucl, and 333,37$ sham of Cbanered Explcmllion Ltd. Rhoclesian Ancto American aeqwred 400,000.
lroo, atcd tnd co:al also come within its r•nge. lt o"n' ~.600 Rhodesian Anglo American'• own apiud i•J.7 million :and
sbamon Lubimbi Cool Arcu L<d. , holding P""'t-'"1 ncbll its conoolubtocl- pro6t f« tbe )H.r tndod 30 jUlie 1961-
lot coel o~ocr a.n ard. o( app.ro.rimatdy 130 square miles in the 1;20,500,783 after providing £11>11,475 for tiJCition. Di-ri-
South<m Rhlod.,;., .run;ng d;.ma ol DW.wayo. 1b llw<- dmds :oloocod>od £5,403,5~.
holdint p.-C$ Rhodnian Anclo Amman 65 per ~t conuol no- ~y bmdcd U.t<mts .... of sp«ia!conotm to tbe
or Lub4mbe. t.hc other 35 per cat bdoapa to Wank.ie people o( ZamJ,;. and Rbodeoia, wlooae aist...,. ond fate they
CoUoay, ""' mdboo ol .mos. sloans ore m Rbod<siton Anato dominate Not Cor nothins d ~f r ll•rry Opptn hcirntt tnlaTnc
Amc:ncan hand.L Fony per cent gi'-es it a tnaJOC put of lhe hia ....., penooal . . . . tJotwab the propcoals conecming the
Iron Duke Mining Co. Ltd., and i; abo baa a •ub&t:anual abare exchange between AnP> American and Dritiah South
incaut in the R..hodaian Iron & Stecl Co. Ltd. Africa Co. i4 ~ew Rhodc:Ua Jn.-atmmta. a tribuW)' of
Sundry otht:r interm.a make RhodtsUn A.n.,glo American 1 Briti&h South Africa'a trobuw)'. Cecol Holding. By the
kading controller o£ Zambia'• eoonotnic life. Fio.-a.ll<!G and arrangement$. Britia.h South Africa will hrl·e wider abate in
in~nt arc lneluded by, among others, 20 ptr cent o( Anglo American't ac:tivitiee through the ettnblilhment of a
Rhodeti.an Acc~ptltncet Lt.U., ancl a half -.la;u~ U1. Ova..cu & local Rbodelian Board for the chanered company, under the
Rhodnlan lnv('llltmcnt Co. Ltd. Rhoanglu Mitae Service~ Ltd., chairmanship of Si.r Frederick Crawford.
wholiy owned, pnn•ides a valuable $0Urce or in001ne for Sir Frederick Crawford ia at pmcnt the COmJl'lny'a resi~t
:adminittmrive 11nd other sc::n•ice~~. ~rnent a~nd clay hri03 1t director in Rhodesia. At a former 00'\•emor o( lJgand" he
lnto the building and allied trades thfl)ugh 148,961 lha.I'CI in brought witb him his proconsul•r exptriel\ce in dle ruling of
1$8 J$9
8110•COLONI.lt.IIM Ml.!'f ll!I U INTIIUTI IN C I-. T I.AL A.P.ICA
'nMiw:s•. Upnd.a alto pro~des u local dirm.or kn Zambia, of £8,148,2-15, a.rrind • t after writing oil almolt £1 million
C. P. S. Allm, umil recmtly p..........,,
Und...-&cmory of for ~~eciation o( inftltmtnll and owr £ $,400,000 for
State: to itt Prime Ministn-. Thus are impe:rialilt •~ntl taxabOD•
.....rn.d for tht;, ..,.;.u to their ...J ,_,.,., Oppooition Rhoclco' oncuw ww with tht Rind ond Kimberley mines
to the eocobiO.hmcnt of the local board ,.._ - by Britioh have been bUt more dooely tos<thcr by a - lltrllldo
Soum Africa C"<>.'o p...;.Jan, P. V. F.mrJ$-F.,,...., with the 'tri~ Rhodesia and ZamhU than 11 • • po.ible for him to
o;plonation that it ..-ill provKic • """"" dccrcc: of . ....,....,,. <11\'lAg< ll the tune, lhoucl> II no hio .....ndlng hope and
(or locaJ manocancnl, ond "'11 strengthen the compony'o ombitioo. Tho. ullenwoT<n f'abric jW~Iy P""'ideo the iwlg·
rep.--,;,.. m ZombU. :lli Eml)...Evana io himodf • mon'• rope that io uy;., to llnncle Afrie&n indcpcodcncc ed
dim:tor of Anglo ,\mcri.,., Corporotion, u wdl u of Rio the politinl unifieotioo or Africo.
Tlnoo Zinc Corpontion Ltd. Mr Emryo-Evano corroco the
lnteroot» or Bucloyo Bonk D.C.O. by IUs directororup of me
bll>lt, ond hio ooliciwde (M Rhodesia'• dovelopm<nl io Implicit
in !tie ttlt on th e board of Rhode!ia Railwaya Trutt Ltd., a
Britiah Soudt Afric:a Company subsidiary. His further con-
-.lon with Oppenheimer'a rar-ftung empire ia confirmed by
hi• metnbership of the London Commjttee of Rand Selection
Corporation Ltd. The death or Lord Robins elevattd him from
dac vice:·prnidency to the: hc.ad o£ the Bdt.itlh Suutb Africa
Cu.'• board, whffe among his colleagues were the late Sir C. J.
Hambro., Harry Oppmheimer, L. F. A. d'Etl&nctrant:lanothn
rormt.r pro--con~UI. V"IICOUilt Malvern. wbo brinp with him
the bkoAinsa of the Mcrchanl Daol: or Central A!rico. Sootti>h
Rbodcoion finanu Ltd., and tht Standard Dank or South
A(rico,
A pod dcol of Mr Emryo-Evaoo' 1962 onn\111 rcpor1 to the
thorchol<law woo clc\'Otcd to wlw 0. dcottibed M ill-infonnod
eriticiwn or the 'P"'P'• alleged policy or rcmcrrinr lqe IIW'DI
ol money (rom the country while be:i..ag uo"''illiAc to in,·•t in
'" d...,loprncnt'. The aucmpt to rebut this eritiaom by the
affirmadOD thai cn·er tm )UIS the c:om.-pan.y had inva:tod 0\' tr
£ 10 million in th.e tttritory, an average of over £1 million a
)'W, would 1\CK convince RhodesUn Africans, who wtre ~n
1wate th~&l du: company r~h· cd io b'~"Od incume Cno~u:1 it.
Northern RhOOttian cupptr royaldes a.lcmt in the: year 19GI J2,
the IU.I IIl nr /,10,900,000. Taxation goes to the Uuiled Kiugdolll
11.nd ~ulh Afric:11, u alto do dividends, which, for the year
19~9-60. aboorbecli;4,128,863 out of a conoolldatcd net profit

IGO 161
 COWl'AHlES AND COMBISIIS

\Ve muse not for o ne mornent, however, allow ounclvcs to

be led into .the error of thinking that Taoro~.nyika Conoes.sioos
thus pcrmmod themselves to be 'bested' by the Special
12. Companies and combines C~mmiuee. The company became a meml)e.l' of Ll"M: Com-
mittee. ln the way of financiers who, cautiou$ly and 'hrewdly,
do not place all th eir eggs in a single basket, a new organisation
was created to take care of a concession co,·ering a su rface
about thr ee-fifths the a:izc of Chana. T his is the celebrated
Union Minib'e du H:aut Kata.ngu, whose repuration O\'C:r the:
yean has become n otoriou s for the merciltss. explo itation of
the Congo.
.Another ~ategic interest of Tanganyika Concessions is the
radway mnmng from Lob ito Bay in Angola up to the Angola-
To give anything lite a complete account of the compliat~d Congo border, operated by the B<nguela Railway Company
network of foreign c:ompanits which at present go~·erns to ( Companhia do C.:.minho de Ferro de Benguela). The railway
much of Africa's economic life, would be impossible within company LS a c;reatJon of Tang~~:nyika Concessions which holds
the sp:ace of 2 single book. Yet eotne reference to the most £2,700,000 or 90 per cent of its£2 &hares. as weU BS th~ whole
important of them is necessary, and in many eases their con- of ~e dcbent~ capital. T he Reoguela Railway, during 1961,
ntcting intercs.tl c:an be shown in di~gnm form. Behind the budt a branch hne from the town of Robert Williams into the
faeade uf 5t:par<ltenCQ $lrong connecting links bind tht:lk mining region of Guima. which WM opened in August 1962.
po"-crfullinns together. Commoo'\\-ealth Timber Industries L td., a vast forestry and
lJ1 E<t& Afri ca, one of the mOISt powerlul oouoetn.$ is lumber ~nce.rn, is also 60 per <:ent owned by Tanganyika
Tanganyika Con<:cssions. The name i.s misleading. 1t wat Concessaons.
actually registered in London 1.0W31'CIS the end o f January 1899. Novo~rd (U.K.) Ltd., tbe English affiliate o£ C.:.mmon·
Today control of the company ls wielded from Salisbury, wealth Tamber, uw able, with the us.i:stanee of the African
llbode&ia, whence it was removed in the latter part of 1950. companies with which Soci&C ~.n~nale is aasociatcd, to
Opcrotions in Tanganyika have not yet been fully developed, conetruct a sawmilJ and f::~ctory for the maoufacture of
th ough they cover rwo important gold mines and a mineral fibre,~·ood. panel.$ ,.t ~'hetford in Norfolk. T he factory's
company, and include eome prospecting. The compa.ny"a writ capac1ty wall make JMinble the production of about 25 million
has greater significance in Zambia, wl\ere it OJ<:qulred from equare feet of pands yearly, the capital invested being around
Briti!h South A.friC:J. Co. o. concession over a. large area, f:l miiJion.
together with tc:rt3in prO!Iptcting rights. F rom Zambia ili \Vhen Tanganyika Concessions \ WS about to change its
activities spawn into the Congo, where it oontrols a min~.ral b~dquarten from London to Salid:IUI)'t it gave an under·
conctSSion of 60,000 squart" miles secur ed rrom the Katanga tnking to. J:I.M. Treasury whlcb no doubt had 80me bea.ring
(Ddgi:an) Special Committt.o.e. For giving Tanganyika Con- on the Bnush government's ••ac:ill.ating policy in che breakdown
<:ess;ioo right& over-this r:xJ)Mise o( Congolese JaOO, the Katanga of the Central African Fedcntion. It must also colour its
Committee enjoyed the benefit of a f,O per cent share in the beh.aviour in rego.rd ~ the Congo and to Portuguese· rule in
royalty paid by Union Miniere. Afrtca. The undertalung provided that for a minimum period
162 IG3
Z'fltO•COL0:-1 I AC.liM
of ten yttr~, Tlltlpn)•ika ConCt~ttion. would not, without ®n·
atnt of the British Trtatury, 'ditpote o( or charge or pledge
its interatt or any pan thereof in Union Minitre du Haut
K11ta.np or the 8-t'"l\&cla Railway' ~ept-. in lhe cue or the
lau~. co the PoMuguete Coftmment under lhe kNOll of the
Co.uo:.iwu Agn:am.nt.
The limit~tion did oot end wit.h the c-xpiration ol1he ten-
fur period, u a wnjw~~ethc claUK provided that •ubac<1ucndy
'no ale or other diApoMJ of auch inttf'ftla or IllY put tberco£
(cxcqn as afO<eaid) Wll be mode without the KCUritiCI
propooed tO be IOld or ache:,.,."" ddpooed of fine brine of!<red
to H.M. Trcuury at the aame pri« and on the tilDe ttrml u
ba.. been olltnd to 1 durd porty'.
Tbac pn:muooa ba,·c JIVCD the tintuh Covmunent a
~ _ , t11 the opcntiona of Tanpnyib c:.cc-oo..
l:ruon Minim :aod the lktlcu<ll Roihny which il bound to
idh.w:oc:e their btbl:riour ia rdation to the inckpencle:nce
11n:gsde in Southern and Ca!tnl Afric:L More portieuhrly, i1l
,;.,. of the •pecialreWJooo .. bid> c...,, Briwn hao bad wilh
ito old<s1 ally, Porrupl. From the point or view ol the com-
panics theoueh·<>, they muot r<d M<OUrt.gtd by dU. opecial
intaat of the British Conrnmtnt in mtinuining tMr
lltnltt"gic po~~iaion KrOll the &rat omtraJ bdt of Africa.
T"'V""'b Conccooiont, both di"""trand throuah '~'•"'S"•·
)ib lloldi.ngt, hal an itntJIOr'Ulnt pt.rhcipation in Rhode&i:a-
Katanga Co. Led., with wh~h. in conjunction with Zambad
Exploring, antercou were IICX(uit<d in the Kalwnep Goldfield,
Kt.r~ya. which Yi't-T'C trt.nt!ttTed to Kt:ntan Cold Arc::M, in whteh
::i0 ...'li
Rhndcoii-Kaun1• boo a tubotant..t hokhnc. Rhodcaia-Katonp
i1 indebtod to !he Britilh South Africa Co. by rwon or the I
..!
-,1
,3
..!
v .1
d
1-1-
puprtu:al mining rightt the Iauer hat erantcd it over any ,3 .J
mineral•, includlns coal but exc1udina diamond• tnd prccioua
atone., which mil)' be found in about 2,~ tquare miltt of
Zumbia. Additionally, it hat perpttual coal mining righ~ in
. :!:2j
'!
:f 1
::; ;.; •
•• •
rwmty areas of 300 acret, each subject to U per «nt interest l" <3
of !he Brltlth Soulh Africa Co.
To complete Tanganyika Concessiont' roster of subtidia.rics,
there ia the whoJJy owned 'fRnpn)ikl Propertit~t (Rhodesia)
~~-~-~-·i
t~e
ll:
....
~
:5I

~
"'
i ]
N
u
164 1$)
 NJO•COLOWIALIIM

Ltd., registered in Saliabury, Rhodetia. It provide~ office and

staff accommodation tOC:cther whh allied
holding ceru.ln iM'tttmentt.
tti'Y1«t, at wtll aa
•
~ !
;...
Con.101ida1ed profit made by 1~anylka Cunccaiona (or the
.gG i
)dlt cndtd Sl Juty 19Gl wu £S. .325 wt u( a total rt:\cl\uc
or L+...02l~ii. In: currmt utdl arc £4,S80,163 in th.a.ruand
~
j ~
dcbcoh.lk8 of Jkneuda Rail\\ay Co.: C.J.500,!116 in llllara~and -~
u 0
Jl
J
.,_n t.o Common.u.lth 'l~t.mber lndUrltlie&. f),317,m in e
<
Tanvnyh lloldinp; and £i,OI9,629 in t:nion Minitre.
wbOK ram.iflatiaru 'fli ill be c:xamincd in 1 later chapter.
C«run; to the South·Weot Mnca Co. Ltd. -.e find Anclo
i.,' j
AmeriCOll Cotpon:tlon and Conoo!odatcd Cold F'ttldo m.,.g;n,
to aplott a vut ltCtion of the .,.-ftlth of eouthcm Afnea. -••••
-•
fL
~
The South-W,.. Mnco Co. Ltd. - r<ptmd an Loodon
oo 18 J\UCU• 1892, and hM allp<Ool CfODl o( e><luohe p..,._ !;
6
-~
s.ooo
pectinc and mininc ri;hta "'-.. _,. aquan mala ol tbe
Do:aw-o.bnd conceaoion .,.. o( South-_, Mric:a. ThiJ f:"' ..e
-~
c
.2
G
'-'
"'<-5
.1.:
,... made by the Adminituation o( South-w. . Mri<a
period of 6ve yeus fnxn 2 January 1942, and boo liDO< been
,..,.,.-..! until2 Jonuary 1967. 'Th..:om~:? o!Jo holdo miniJas
a
0
Q

0 t8 •
.. "'< J
1
:1 .,... •
ari':IL'J in '\--a.rioua othrr ddt.riru oi th·~at Africa. It
produca. tin·wolfnwn and 'line·kad conccrtlrata aa "~R:JI u "'<
-•" ~ "'
·c
= ! X
u

..."'::>
nnadatts. 0
larae ,,... o( land tuch u tt.- hold by the Sooth·West ~ :.:
Africa Co. demand otrc:mdy hea"Y apitaJ invt'Stmc'nt to ~

exploit and encouraae the fom~~tlofl or alli:a.ll«< between

croups de.iroua o( controltina output. dJattibution, and hmce- .,s
0 0
"'
the pri«t or row m11ttri1la. Not only thAt, it faeilitatta the
clwtntUiOG of their proonainc throuth the allied orpnilationa.
To pun~ thi.e policy of co-ordination, the South-Weet -3 •
A(rica Co. t.i,g:ncd an agreement with. a joint Anglo American- ~ :!!
... ;,
Con10lidatcd Cold Fields vcntu~ ~ which it sub--Leased
ccnain of its righet to e:xplort and txp oit itt conces&.lont. See
Chan. S.
..
~

0
.~

:ll
0
(.)
::;:

The Newm~HII Mining Corpuruliun Wll._ forn1t'll iu Dtl11·

\\·~~orr;,
U.S.A., on 2M~· 1921. 1'hc IJU'InMc of the Qumpany
ill 10 acquire, dcvt•lol), IOAMe and O('K"ralc mining properties.
J l
13
•
J
For thi~ r~U'])()It. • •hare c.riral o( $60 million haa been :z;•
I (of,
IG7
NllO• t OI.ONUL.UW

19:.+, ond all the 333,333 'B' alwo.. of 1,000 p<'l<'lu ..dl in the

..-- , :! ... 1
n(!'W ~ny . AdditionaUy it wu a11l'ar'ded a sterlln,g paymmt
of L7 ,1;00,665. RJo Tinto still draws a rrtainer •• pro.W.. of 3• e
technic.l and coromncialttn"iees in London for the Spt.niM
compo~~y, in which i,. holding of all tbe 'B' alwoea sti1J ci.,.. i" ~'
~

c" 1 a
•.. .= • •
-'! • J
it a dittCt intere~~.
Rio 'J...t.nto is ,.,.. an in'f'atrntnt Mlding company, whwc
fitw>a.tJ opcnt;..u haw: brought it into the: fordi<>nt of
induotrial entrcpr<n<umhip. Mtica ia wdl up amonc 111
1phtrtt o( Kth·ity, ita moat important holclinp oo the con-
..1

"
j
=.-
--<
=§
::
~E
'"..
"~
bn J
s
~~. ~
:... c: !.~

.liP~
l. c

.-c;;z,..
I
'
•

tinent bdn& in Rholwl• Corpontioo and Nchanp Copper

Mmet. where. 11 we hl\·e teen, it is u:taciated with the Britith
Solub A/rica Co., Anglo Arn~rican Corporation, Union Cor·
I
• ~ .:l
..:a :.:.
f: ~-.:
-t<
~ -~
l
~

..
por&tlon, Tanganyika Conoeuions. Union MiniC.re nnd Rand .s ;:0: .s
Sdection Trutt in tht:ir holdings in the imponant Rhodesian
ttnd South Africa mining tnd industrial nntures.
ci
1-
....
Ji -·-=--·-
"' i
So lortUOUI and inerediblT. expansile are the links .thMt tit
the group~ exploiting Africa 1 resources with those enriching
8
] ·,
.:S ..,
thcmstlns in other comers of the earth chat we thoukl find
t:
nothln« rc:nurkable in being led back from Rio Tlnto in ...
0 <
Mrica, Yia tome of the mOilt ~uJ American and Britith
fiJwlcial forces-. into Rio Tinto in Cana<.b. -
7.
... 3
E
One of the moot lively motivating springo of monopoly ia
tO (O<aCalltn IICW Ot Uft<Xpioeed . , _ tbe tnll)' of ri>-.1 pwpo,
and where thil pnnu abortive: or impc:llllible, to coDaborate
-"'
0

!
with them. \Ve ahall set: in a lata chapter bow Caudiln
£ldondo foracl u,.;,., Mini~re to bring down the plica of
un.nium IUld how their int.,..... lodt through 5og<min,.
t'e'J)f'tttntation on the (ollllef'a board. In the •orkt ol Westtm
&... enterprise, competitiooa it being eroded by mooopoly'o
role of the lone ranp after undhided prOii.u.
Thus are African riehes brought to suppon the mani.pu.lativc
nunir.atlont of inltmt~bonal fina.J)(:IIXapital. BetWttl'l Soc~
Gblh-•le 11nd Rio 'finto th('_re is intcrpc:lf>Cd a solid ph11l,.tt'l' of
i.nterwonn power that move~ out 6tealthily acro~a the world.
BrcaJdn& 1nt·o the a.lwninium world, Rio Tinto formed ao
J
c
alliance with Coneolidatcd Zinc Corporation Ltd. Thla .g
m<<i<< appun:d superlicially to bring togethc.r two powerful <
170
171
NIO• COLOS l ,\LI IM CONPANlll AND COMIIKU
groups having no joint 1ming strings. ThiJ oscensib~e Jmernational Corporation. Like Reynolds Meuals, Kaiser
separation would mislead only the ignorant. lu subterfuge IS Aluminium only broke into the United States aluminium
immediately destroyed by a single gl.ance at its ~mbtn.ed industry under th~ impetus: of wartime demands for aircra£t
directorate, which at once show• up the connections w1th metal lkfore the second world v.--a.r, Aluminium Co. of
South African mining and financial interests. P. V. EJ:nry-s- A.medc:a-ALCOA-Wll3 the sole domestic producer of
£vans is a prominent member, and the Rt. Hon. Lord Badheu, primary aluminium.
K.B.E., C.M.G., deputy cbaioman. Lord llaillicu is alao Consolidated Zinc, with an authorised capittl of C25 million,
deputy chairman of the Central Mining and Inveaunent ~~­ has e.nensive interesu which make it a funnidable controller
poratiun Ltd., a leading inveatment a.nd finance hoU$e \•tthu\ of a number of important metals and allied chemical products.
the Anglo American group of c:ompanica directed by Ha~ F. Fonned leas than 6fteen yean ago, in February 1949, ita pur·
Oppenheimer and C. W. Engel.b.ard. Mr E_mrys· Evane 11 .a~so poses were 'to develop, extend and carry on or finance, cither
i.mporttnt in his own right, being vioe-,pres1de:nt of the Bntt.sh itae1f 01 through any of its sublidi.ary or associated companies,
South Afrlc:a Co. and a director o{ Anglo American. the d<n•elopment, extension. and carrying on of the lead and
However, the connection goes further than ~at. British zinc mining and other or raw material producing industries
South Mrica Holdings Ltd., and some of its auoctaus, w1.der and the ame:lting, refining and manufacturing and other
an agreement dated 7 December 1960, wbscribed £10 milli~n industries associated therewith, throughout the world. and
to Consolidated Zinc in the fonn of ~ per cent loan stock m partiatlarly in the Cornrnonwealth'.
return for options to acquire 2,285,7 14 ordinary abamo of £ 1 All this apparently tw no connection with .~frica, but we have
c:1ch in Consolidated Zinc :~.t a price u( Sit. 6d. a share. Hcre only to look at aume of the directorates to d.iBcover immediately
we enter into tht intricate maze or aluminium financial bow close the links are '9.-i.th the Oppenheimer network and
policies into which Consolidated Zinc has made deep incur- the financial groups th:at :tSSOci.ate with ic.
sions by its :aUianct \•lith the Kaiser Aluminium &: Chemical Such are the mammoth gold-clad intt.r('Sts that are bthind
Corporation ln Commonwealth Aluminium Corporation (Pcy) the Consolidat«< Zinc.Rio Tinto merger. The new holding
lAd., commonly known u Comalco. The optiO';!J acquired_ by company, Rio Tint(lo.Zinc Corporation Ltd., was created by a
British South Africa Hol~s can be excrctsed any ume financial operation that gave ahareholders or Consolidated
betv.eeo 1 June 1966 and 1 july 1968 or the date on which Zinc fifty·elght ordinary sharea of ten ~hillingg each in the new
C'.ommunwea.lth or it$ associattd operating companies have company in txchange for cYery twenty shares of £1 in Con·
produced a total of 200,000 long tons of aluminium ingots in solidated Zinc. Rio Tinto atocltholdcn received forty-one
the proposed new refinery to be erected by ComaklO, which- sh:aree of ten shillings each in the new company for every
ever is the later. twenty ordinary stock units of ten ahiJJinga hcld in Rio Tinto.
Kai&er Aluroinium•s principal interest is in its wholly owned Preference shares in both companies were also exchanged for
KaiKr &uxite Co,1 Jarn:aica.. In addition to its mining 4\ctivities, preference eharct in the new one.
Kaiser optratcs pro<:essi1~g and chemica_J plants. i1.1 the ~~ted The merger brioga Rio Tlnto-Zinc wdl into the forefront
Stotts and Canada and has inv~unema m alummaum, mmtng, of the aluminium field, accentuating its already imponant
reduction and fabricating facilitit:S and marketing industries JXI8ition in the zinc-lead and non-ferroua metals field. It brings
in the United l{j_ngdom, Sooth America, Africa and Asia. It Consolida.ed Zinc more fully into the sphere of minen~
operates through m·o fully owned 8Ubsidiar!es.: Kaiser. .r~u­ exploitation in Africa by reason of Rio Tinto'' hold.ingt in
minium & Chemit-.ll Sales lnc. and Kaiser A1unumum Mme of the principal concerns operating i.n South Africa,
172 ..
 >
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COMPA~IU AND COMIINII
Rhodetia and elsewhere. The connections with the American,
Canadian and Aus-tralian industrial and fin.:LOCi.:ll 1ccnes are

l .. ..
~ apparent from the foregoing very brief review. Through these
c. !!-

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s 1:: I" inter-all, the Rio TintcrZinc combine has additional string~
~ i ;: ~. > wh;ch lead badr. again to Africa.

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There are &Ome rare and localised non-metallic materials
<> 1:: • whicll ~re used .in basic and 8eCOndary industrles. Tbc:se

~·a·
include asbutos, corundU011 mica, vcrmirulite, phosphate rod:•
~·
i 9
e. gypsum, mineral pigments, fluorspar, and silica. The mO&t
s
x-~
•n •a ~. important i.s asbestos. It is found in three principal fibn:s:
~ [ ~ chrysolite, crocidolite or blue ubestos, and amosite. All three
b n I
!:! ~
0 ~ fibres have certain common characteristics. They are aU non-

£"~§'
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••
::l
"'
<
g • ? • b'
,
inflal1llll:lble, non~conduetors of heat and electricity; they are
practically insoluble in acids and arc capable of being spun
into textiles.
1 ~ ;[ :;; [ i!:-i
<. • ~ n
c l!
z
h iJ: slight differenoee in these qualities that give them
:::~5-z Q
•
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different uses. Chrysolite is the m08t reeist:mt to fire, and it5
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cg> ,~ -0
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f t a. 0
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strong, fine flexible texture mates it hiRhly suitable for asbestos
textile~ and for ust: i.n bnUe linings, dutch facinbrs and insula-

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z r.
!:j
t:ion fittings. [t is used abo for :asbestos boards and asbestos
~

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;'
cement producu. Blue asbest05 has gra~ter tensile strc:ngtb 11nd
resilience, and though not so resistant to fire. witht~tandt~ acids
'!: and sea-water better. It is used ehieRy in the manufacture (If
•~S.f.a
• •
~
,
..
~
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If
filter cloth, boiltt mattres:sea, insulation packings and a.sbestos
~~ cement products. Amositt. has a fib re J~ngth of three to aix
;
. ,.
~

I
=
"'•• inches and has greater rcs.istan« to heat than erocidol.itc and
gres1te1' reaisnlnce to sea•w;'l.ter than blue asbestos. These
"1!: ~
..; nne')
~~r~ 1:'
•~
7 "'9 ~
qualitiel make it particularly suitable for use in spun material$
and aircraft. South AfriCt it ~t present almost the only p)3ee in
8 a.-,:1 !:
.g>"'ilr a
~
"',1:'a .. =
E
"'a
~ whicb both blue ;sbestot and runoeite are found. Canada is the
greatest producer of chrysolitcj South Africa and Rhodesia are
::1. ;;·
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~~..:J,~ >a.
~S?~re
8·
,
.. =
=, rd•
"'~
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far behind.
The South African depo&its are mainly in Swaziland and
Eastern Transvul. They arc in the vis"tual control of a Dritish
::1 ~
a •
&.<;a finn, Turner & Newall Led., registered i.n 1920, which has in
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its hands 90 per cent o( the- Br-itish asbestos trade. This fact
enabled it to secure an agreement in 1930 with the Sovie(
Union reguJating deliveries to the continentaJ market. An
1

17< 175
HIO•COI.OI'C1.4 I. lUI
important pnkluao:r of high grade chrysolite. the Soviet Untoo
Cftl!ltd npnrt afltr tM last ~:r.
Sup<riicially un;,pooinc, Turtl<t & N....U'a boord bu at
111 chairman Ronald C. Scothill, who it ·rxilkd wtth the
lliiUI'&IIC< world u ~ of Li>apool and Globe lnouranc<
Co. Lid. and Royal I111Uronoe Co. Ltd., and wid! finance u
direcoor of the Dillri<l Bank. Its capital, bowmr, it impm-
• .., bore au1bori>cd at lJI) million "'ilb . - 1)0 nultioo •c
paid up. Qricinally l3 millioc, 1he incrcuc: in the oize ol the
company'• ..p;w ,.,... an indic:atioo of the growth of ita ~
dominanoe of llbatos mining and allied indw.tria. tc
Thit c:apitalilaUoo becoma more articulate when it l1
rdated to the n..q> of the Turner & N....U asbeotol kingdom, 8
..,
which io rooted in Mri<:an and Canadian mineo. A holding
company, it has a network of tubtiidiarie& throughout the wurld
..
c

"'hkh m11nufacture and tell asbestos, magnesia and toJrnecled

protluct •· Sc:e Chan 7.
A nlCt:nt turvey reveals that some 6o to 70 per cent of the
world'a total bulinea activity is control.led by I~ tha.n tWft
per cent ol all Lhe companies in the world. 'l'be coloeeal
i t:
Unilever Trust is a perfect il1Uiti'Jtion of thi!l monopol.ittic
mio of eonttol
"
%
v
1.--or miUiont of houKwivc:s there U. no auc.h thin& 11 a
corporate entity ailed Uoilner. There it just the daily routine
ol chooaJ"' between Lif<buoy and Lux. POJ*>Cicnt and Cibl>o.
0mo aod Swf-<>1 bu)ifta Lip100's .... w.u·, . . _ and
Bird'o Eye f,_, foods. Flytos. Stork -.prine and Harriet
Hubbotd A1<t'• - a , From tho viowpoint ol obe tu·
c:ollta.or' alto, Uailever it ltiD DOt 1 c:oc:por•te cotity but twO
eeparate oompran,ics. 'Unilever Limittd', the Briti&h oompeny,
and 'Unil...,. N.V.', the Dutch company. lt has oublldiorb
ohroushout Europe, in Belgium, Austria, Dcnmatlt, Cemw~y,

il lcncl• w conlrol the production of IOUJ*1 !nneo Coodl, --r.·

Finland, Italy, Sweden aod Switserland. In oil obese countri..

marrrin~. in,tctdcldes, detergents, cosmetics a.nd edible oi •.

It h•tt alttO ()()Wnfuland century-old inceresta in lAtin AmedCM,
weat, cx:ntral and South Africa, India, Ceylon, Malaysia,
Trinklad, Thailand and the Philippine:&.
17G 171
JlfiO•COLOMlALIIW
UIWner'a most robust o&hooc C)'ftf'IJC:ae is the United
Arm Ccmpuy. t~m>o>p who the TNtt 1><come tDown ..
the: 'wxrown<d King or WCM Africa'. The United Afri<s
Compony io the ""'ld'• hsJ..t inl~ tndillg "?"'~""'~· 13. The tin, aluminium and nickel
and amtnry 1D the hc:licf !hal the libenll<>CI o£ coloni>l tem- giants
toritt would automatic:al.ly tuppra~ monopoly capitalism, the
Uni1cu:r empire continues to ttouneh. Thil il bec:aUie it ha4
knowu how to adapt itl policy 10 the 'challenge_ of d~ ~~··
•• a company report puts it. And eo, UnUever IS applyulg JU
profit·m.aking object.ivt.a to other mon yielding ~e~..'tors.. It ~~~
aecclcratod its withdrawal from the Wea. African u.erchandise
and produce trade to conctntrate on dcvdopmeot in can.
~ring and the pbarmaoetJtieal aidco or the bwin.... The
-lorualist aim is not oruy tD cport capital but aho tD ThJ tin empire of Patino or Canoch Ltd. and iu UJOCi1t.,
control the ov..- mon.t. Thus stumpu an: IUblly made to spradt from South America to the Cnited Kingdom .,d
pm=t ~loping countries from oakina ~>: decioh-e "'<1" Nonb America and across Afri<s into the Paeifie and Mia.
d....,_
t.,...,.. induauislisatUm, .;,.., the: aplonaborl of the 10-
apanding .....U. io MW the: prime objccti>"e U the
actempca b) p~e:nt indus:trialialion rail. then ll all costS the
CopitaiUed al SIO m.Jhon, PatiDo of Canoda lw Wucd and
patd up 1,971,839 shor<s of $2. or ....... 47·2 per cent arc hdd
by • Panamanian finandne hota< within the Patino uoup.
Trua.t mutt tccure a participation in a dowlopment it cannot Campania de Bonos Accionea y Ntgocios lndurtri:alta-
ptt\'tl\t. And by its vt:ry n.atute thit participation thM~rta any COBANTSA. P:atlno't purchase into General Tin Investment•
furtJ\Cr prognoss since l\. c::nsuru .• r~IAr Row o£ payme.ntl Ltd. in 1962 brought this tycoon into a large &hare of the
inw the coffen of monopoly apatal an the fonn o£ royaltaet. United Kingdom ipread in the tin-mining lllld deaJing world.
paccuta, lk~ming agrccmc.nta, t~~l o.ui&tance, equ_ipml"nt Ce-ner:al Tin Inwnmenu it chArsted with acquiring and holdina
~and othc::r 'sc:n·K:ea'. h alto ('vet pnonty to the asscmbhng and aham in mining, fina.noe and induatria.l companits, it& principal
pao:bging of foreign produ<ta often pr<OCIIted under the .w.. holdings lxing in dlo10 companies conna:ted with rho tin
labcls of ind.igalous conccrnL UnUevu't pramt ea:opbas11 on industry. It carrie• out its fin&ne:ing opetations throuah a
the: pocbcu>g indusuia is no <»inc:ida>«. wbolly-owncd sub.u!iary, Cone.-.1 :\fetal Securities {LondoD)

ob.;dend.s d>m on anau>-

The up-to-<late Tn1$t rtll.. ._ on the """''"" of the
in the Olmpany agramcoa
wl>ich makt iodicmous capital depcDCicnt on mooopoly apital
Ltd. A. Plllino pre>ideo o•er both '-'Is wberc he: bu u
ooJiaorcs Count G. du DoOOov.-nty, J. Ortiz..Limtta and
E. R. E. Caner. Caner " pn:oident of BI'WI.fWiclt :\finina S:
foe the ,..,...-.. of cono:ncu and lor the ollocatioo of funcb. It !!melting Corporation and of acve.-.1 other companies UJOCi.
11 lignificant chat in a reca.t illue o£ the Ntu ComntD~'ttCtoiiA. attd ,.;th tho Panno CRJUP· llrwuwiclt comes within the
the United Africa Cornpsny hu b«n "'ferred to as the 'eentle MOtpD sphere or i.nOucnct throucb the inta"C:st maintained by
aiant'. Monopoly methodt have become more sub-de, but St Joa<ph Leod Co. We o1Jo know thllt Sogemines bas con-
l,..e\·er'e fnmous statement •till teema to hold true: ' After all ~-e cerned iuell with a rubiiAntial invt-runent with the Ne\Ji
11.rc working for the pennanent intercall of Dritain'. Uruouwiek ~1ineo of Bruntwiek Mining. Tho spokes lhet l,.d
out from the Socia~ Cdn~mle de Delgique"s African hub in1o
171
'"
!UO•COL.ONIAUSM THI TIN) Al. U MUUU~I AND NICE.£1 CI.ANT$

the affaln of the mo11t powerful financial monopolies in the Johns-Manville Co. Ltd.,Amet Corporation lnc.IUld Financihe
world ~c..·cm a ·er•inerca$lng. . Beige dei'A~stos-Ciment S.A. The participants have agnod
PatiJ\o's direct investments in Canada oover substanual to place the property on an operating basis by furnishing to
holdings in Copper Rand Chibougmno. Mines Lt<i:·• Ach:~te Advoc:ate a total 11um of $17,900,000. Ca.rutdian Johns:·Manville
Mines l.-td., Nipiuing Mines Co. Ltd. and Brunsw1ck M~. wiJL contribute 49-62 per oent, Patino 17· S ptr cHLt, Amet and
By financial jugglery consolidati?n of _the princip~ Canadian Financll!=re Belge 1&54 per cent eadt. Ad,·oc:ate bas been capita-
companiea of the group was achieo.·ed m 1960. This was done lised at $23 million and the parties to the agreement share in
through an agreement betwettt Copper Rand, Nipissi.ng Mines, the c;wpital ratio to the amount of their contributions, bued on
Chihougama Jaoulet Mines Ltd.,Ponage bland (Chihou~...,..) denominations of $100.
Mines Ltd., Patino of Canada and Bankmont & Co. a finlll_laal Canadian Job.ns-Manvill<, which is tied up with the Imperial-
house. Copper is the chief mineral mined, but gokl U'Kl silver Commerce Bank, the largest in Canada, upon which sits a
are also produced. The Copper iWld propcny ecvcrs '?"'e diroc:tor of John.s..Manvi.Ue, is a fully..()wned subsidiary of the
10 000 acres held in four oonc;es1:u:)Ju. Poruge Island 11 a Johns-Manville Corporation of the Unittd States. Its main
copper-gold propeny of Copper Rand, and the jaoulet mine a intereats are in asbestos, which it proc:::eues into fibre and
copper propeny. . . . manufactun.s into building and indumiaJ materials. It is in
Nipissing enten into the piCture u a finanaal contr•butor to control of Advocate's nu.nagernen.t, and has also a majority
the development of the Po""l!e Island propcny. It is the holder interest in and management control of Coalinga Asbeltos Co.
of a number of mining c13ims in Quebc:c and holds diverJC of California, U.S.A., a joint venture with Kem County Land
share interests.. Its operations branch into the U.S.A. thoug~ a Co. The parent Johns-Manville, of America, manufaeturts
wholly-owned subsidiary, Apalaehian Su1phides Inc., wsth products from asbestos, magnesiA and perlite. b..,ving manu-
mining rights to ore depo,lu in the States of Verm:o-:t and facturi.t\g plants in Ameriea, Canada and elsewhere.
North Carolina. Nipissiog bought into Brunswick. Mmtng. by Advocate hu advt.n(td certain monks to M&ritime Mining,
acquiring from a Patino subsidiary, Patino !\tines &Enterpnses whi<:h has close relations with Patino by n:ason of its associa-
Con>olidat«< (Inc.), 137.143 sbore8 and $537,429 "•orth of tions with the purcbtse of the St JO$eph Lead holdings in
5 per cent boDCU of Brunswick, giving to Patino 1,061 ,145 Brunswick Mining. Maritimes' aharc of this purch.aae was 46
shares of Nipissing. Patino:•.boldin~s in the ChiboUJeam" group pCT cent at a coat of $4,840,000. Maritime works copper on
and associauon with Manumes Mirung Corporation and the claims in New Brun5Wick, Canada. and properties in New~
Irving Oil Co. Ltd. in a 40, per ce~t purchue. o! ~runswick fowldlllOd owned directly and also indirectly via a fully-owned
mining shares e:ttend the Pauno emptrc: subst8l'lt1ally toto fields subsidiary1 Gull Lake Mines Ltd., through which it abo owns
other than tin. all the shares of Gullbridge Mines Ltd. It has a.n arrangement
American and Belgi2n mining and fina.nci.al interests as with Falconbridgc Nickel Mines giving the latter the right to a
powerful as Patino's have l~ed t~erwith. Patino of~ maximum one-tJ1ird participation in any ruture financing which
in investigating and developmg mmeral depoSI.tl on an excluuv~ 1\'laritime might undertake. Maritime and Patino of Canada
basis across 750 square miles of land on the north-eastern coast share a director in W. F. james wl•o is also on the Fa.lconbridge
of Newfoundland, Wldt:r righu granted to Advoarte. At the end board.
of 1960 proven ore reserves totalled 35 million tons of com· Quebec Metallurgical is another holding company having,
metcial grade. Advucate ls deve~ing ~'best.os UD~tr a proj~ "-ide intcrc-.st.s in_side and outside Canada. These lndude a
undertaken by Patino of Canada m conjun<:tton mth Canadian platinum propeny in South Mrica's Transvaal, a small gold
ISO 181
:MIO-COI.ONIALISM fill TJM, ALI)MINIUM .4~0 N1CI:1!L CIANTI

mine in Brazill and nickd llnd cobalt interests in New Calc~ M~ya. A wholly-ov.-ntd subsidiary of Consolidated Tin,
donja, where, through links with Patino, it is associated with Williams ~arvey & Co. Ltd., bold5 75 per cent of the iuued
Le Nickel. s":are .cap1tal of Makcri. Smelting Co. Ltd. incorponued in
Unfonunately for Patino, oc:rtain assets in Boliviu. have had Ntgena ln 1961. Maken has built a tin smelter on the Jos
to be rtlinquishc:d und~r a oationalisation progr.unm.e. Bol_ivia Plateau, Northern Nigeria, which began production in Oecem·
was for many more years than its people cartd about drained ber 1961. Vivian, Younger & Bond Ltd., the sole selling agents
by foreign intci'W5 of its mineral resources, in which tin pre- of Con.Klbdated Tm, are well cstabli&btd in Nigeria
domina~ but which also include silver, lead, zinc, antimony London. Tin Corporation Ltd. board doco not include any
and rorpcr. fts oil dq>OSit.s were large enough to entice ?f the P;;~uno dirtctors, but the relationship with the Patino
Rockefeller's Standard Oil Co., who entrcnclled themtelves by mtere.ns art obviously e!tablished when we note on iu board
,,.orking a large concession, whjJe the Guggenheim Broth?n ?" C. Waite, chainnan and marutging director of Consolidated Tin
America, as well as Briti!h, French and others, gathered t.n tm Smelters w'ld its subsidiary Williaw Harvey & Co., and a
and copper over a long period, ]».}'ing the Indian workcn di_rector of Rrit.i¥h Tin Investment Corporation and General
around sixpence a day for their Labour. Tm Investments. Mr Waite abo sict on the board of Consoli-
The propertiet of the Delaware in~~rated Patino l'f!i~es dated Tin subsidiaries.: the Penpoll Tin Smeltlng Co. Ltd.,
& Enterprises Con.rolid:lted were nauonlllised by the Bolivlan .Ea~tem Smt.lting Co., Wm. Symington & Sons Ltd. (rubber
Covern.mem on 31 Octobtr 1952 and vested io a State-owned merchants) and that of the d istributing ag~nts, Vivian, Younger
propeny, the Corporadoo Minent de Rolivia ComlJ:>ol. These & Bood.
Patino propenies consisted of mining and placer clatm.s, wat-:r As dirtetor of Southern Kinta Consolidaced Ltd., Southern
rights, mill sites, .reduction, conecntnting and hydro..el.eetnc Mala)'oln Tin Dredging Ltd., Kamun1.ing T in Dredging Ltd.,
plants, as well as a railway connecting the mines with a pomt on Malayan Tin Dredging Ltd., Mr WaileObYiously reprc:sc:nts on
the main line of the Amofagasta-Bolivian Railroad Co. Ltd. those boards the intcrcns (including t1lolie of Patino) of Con-
Patino Mines fonned aoother Ddaware !u.bsidiary in 1959, solidated Tin. A diree~or, moreover, o( the Chartered Bank and
Patino Euterprises Inc. a member o( the London Board of British & Foreign Marine
ru nne of the largest entrepreneurs in the tin industry, Insurance Co. Ltd., he cert:Unly rcpi'C$C.Dts t11e financial inter-
A. Patino has a seat on the main consolidated organisations e!u su~porting them. This conclulion is backed by the
looking after the interests of those engaged in this field, w:ua.Uy directonal presence of Francis C. Cbarler.vort.h on British Tin
in the company of the Count of Boisbouvray and J. Ortiz- and as cbainnan of Malayan Tin Dredging and South-em
Linares. AU three of them tre to ~ foW\d on the board of MaJayan Tin. Mr Charlesworth is aJso a. director of certain
British Tin Investment Corporation Ltd., a United Kingdom other tin oompao.iCO:s operating in the ~ialayan area, namely
company fonned in l932 to .take over British·Amcric:a~ !in Kramat Pulai Ltd., Acbm Tin Ltd. and Aytr Hitam Tin
Corporation Ltd. Together W1th its whollyRowned subsadt.ane!, Dredging Ltd. He ia, moreover, a member of the board of
Ti.n Indu>ttial FinAnce & Underwriting Ltd. and B.T.I.C. ~ ~ineral Holdings Ltd., wh_ich it honoured by includ-
(Overseas) Ltd., British Tin holds lnrge blocks of mar~• "'the tng a 6Cl0n of the Auatro-Hunganan empire, H.I.R.H. The
Malayan dn·mining industry, as well a.s investments m com- Archduke Robert Clulrlco of Austria
panies producing other metals and minerals. . . Locana is an investment and holding company, connected
Get~.e:ral Tin Investmenls ltas a S5 per cent tnterett tn principally with the Canadian mining induatry. Mr Charles·
Bartem Smekiog Co. Ltd.., owning smelting works at Penaog, \\o'Orth is a direct link with the world of tin mining and dealing
182 183
NlO~COLOI'fiALIUC THI lt"JII:, ALUMINI U M AMD :SICillL GUMTI

thJoou&h hiJ uJOCi.ation "itb British "nn and iu iott:rats in KAnycmba. Spunratcr Gold it amoos the intereJt• of Con-
Malaya. Si~ alongside Mr Cbuksworth oo the Loc:ona aot.laled Gold Yiclds, •Me Henc!cnon'• T1"'lnmmll Ea1ea
*'<! are M.-. N. K. Kindh<od-Wotkca and J. N. Kiek. Ltd., of wJ:Dcb 1\tr Dtnch 1J a cbrc:dor, c::omea "itldn the
Dooh abo lit 00 the boards or important South Afrian and Oppenbcimer African ln...._,t Trwt group of bol4ing
RllocktiaA ~ compon1es, on ..-hoae *'<!lito Mr Kick. [t;, in r-, the UJtal
Mr Kick is chaimwl or OUcap(:aika oe..lopmot>t Co. ~or African Explo,.tioo Co. Ltd. which gives secmuial
lAd. a eornpony .ruting tince. 1897and h..,iDg ,.,..,....., ~ld 11d to Wa< Spaarwatcr and Coronation Synclicate.
claims in tha S.bakwe di>trtCI of l\1aubcklllld. Rhodelia, [nl<reotiogly enough, Uenderson'• Traomul Estate• lw a
whie.b wo.a at ooe time within the juritdiction of tbe British fully...,..ncd subsidiary, Henderson Consolidated Corporation
South Mrica Company. Mr Kiek"s otht:r usocia.tion1 are with l..td., which itselflw atotal.uboidiary, Minerol HoldingolAd.,
the London and Rhodesian M.inins and Land Co. Ltd., O¥tning U\vning freehold lands in TraniVaal and Orange Free Statt,
directly 384 gold-milling claimo, b...,.metal claim• and.lanclt tulalling 3,706 acres, and mineral riRhtt over a further 689,300
CO\'tring 757,001 acres in Rhode.sit. Some of the propeJ"be'S are acres. In addition, it has twO mint:ral eonc::ts:sions in Swariland,
lwod on a royalty bui.s, and ranebing operations are abo uulling 84,019 acrer.
carried on. AnOO>es direct wholly-owned oubsidiary of Hmderooo'•
Subsiddry componies or Loodon & JU>odesion include Tl1UUTall is Mjn.eral Holdinlt fn•attnr:OU Ltd., which holds
~l.uoe CoruolidJied Mine& lAd., Loc>rbo Esplontion Co. lAd. 720,000 thares in Leslie Gold Min.. lAd. and 200,000 in
and Atricao l'm·a<mern TNSI lAd., which took ove< all the Brackm .Mines l.ttl., both of them ~ to the t:oion
compony'o in.-mrou in 19~ cxetp< .mo... iD sub~ea ~rpo,.._ group of ,the Oppenh<Uncr cmpre. Both minn
and tnde irrvatments. Iu auoc:iatH inc-lude A.n::tu.rus Mints CllJ01 a 1om of ll aullion each from the National Ymanee
lAd., Homc>uke Gold Mining Co. lAd., Coronalion Syndicate Corporation or South Africa, in ,.hicb Anglo Ameriean
lAd. and North Clwterbnd E.ploration Co. (1937) Ltd. CurporatiOn and a numbtr of other croups and institution$
Among further intercstl acqulred by Londo.n & Rhodesian in a.J.IOdaced 'With it han aubttantial intetuu.
1961 ....... 90 per ctot or Consolld..ed Holding• (Pvl) Ltd., 1. N. Kiek also occupied the ma.naging dircc::tor'a position on
100 per cc:nt ofM.uhAba Gold Mine>~ (Pvt) Ltd., wbicbopenues Rhodesia RailwaYJ Trust Co. L1d., aod two olher Oppenheimer
the Empm1 Gold Mine 11t I\b\"lu1.ba, ne&r Fort Victoria, financial eoncemo, Willoughby'• Conoolidatcd Co. Ltd. and
Rhodeoia, S6f per cent of KAnycmba Cold Mines and ~I per Willollgbby's {lnv<mnenu) 1:.\otll Ltd. Mr Kiek'• uooc:Ute
cent or Aaaociated Overbnd Pipelin<l or Rhodelio (Pvl) Ltd., dlroctor, N. K. Kindhead-Weekeo, it a director of 1ucb impor-
.., n<baoge for 1,500,000 thares in Loodoo & Rboderian and tant Oppenheim<r enU:rpriaes" Wankie Colliery (linltcd \ftth
14 option on tiDOtbet 2 million. Tanganyika_ Coo.,....;..,, and Unioa MJAi~). Cbibulwu
That London & Rl>ndtsi.on Muunr ....- within '!'< l\tints, C!Wanp'l Mines ud Cbambiobi Mines, and aloo
Oppenbcimor group intet<no then: 0111 be co doub<, despite Clwt<rland ExpionRion Lui., all of them iD Rhodesia.
the ocponte front lh21 it kq>1 up. C. Abdirl<>r, a direclor or Cbartm.od E.plontion hu been llfll'lted <ttlusi.. pn>!p«l·
An::1unu Mineo, Coronation Syndica~e, Homoatakc, K<nyemba i"t oiahu by British South Africa Co• .,_.,. areu totallios tome
&11d llhzoe, is alao • member or the boards of Calcon Mines lltl.OOO aquau miJea in 7.ombio.
lAd. (Northern Rhodesia), Spurw•ter Gold Mining Co. Ltd. The Patino network it thown in Chart 8. 0£ the orpniq..
and West Spurwater Ltd., AI iJ abo S. F. Oench, who is 11oM dominating tM aluminium industry w~ note fint the
ch1innan of West Sp&arwatcr and of Coronation Syndicate and Aluminium CCI. of Amtri('-a (ALCOA) and the alwp.inium J

IIH 18.1
 ..
lfEO•COLONULiiM

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empire of MeUon. This company minta bauxite in Arkansas
and bu subsidiaries digging :md bringing out ore from far-8Wl.g
places to feed the smelting and processing works in the United

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St.atet. Theae are sited mainly in the southern States, thwgh
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there are works at Masstna, New York. Catting and fabricating
planu are operating in t1«1Ye of the American States, while
wholly~wned subsidiarie. are exploring for raw materials in

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.. Europe, Central and South America, the Caribbean, Au,tralia

and Mrica.

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'i ~ Suri.rwn Aluminium Co. is the principal oro-producing
a subsidiary. ft mines bauxite in the Dutch-held territory of
,_
-.,. .,. !" l.. _,::. Surinam, pan of Guiana. which stretches over the north-

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e1stem oomer of the South American wntincnt lying north of
the Amazon and south of the Ori..noc:o. Under an agreement
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; 3 with the Surinam CoYcmmcnt, Surinam Aluminium has a
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• ~ 75--year bauxite-mining concession. It is building power facili-
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s· ties and will c:onstrud n 60.000-ton a1wninium smelter. The
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eventual construction of a bauxite refinery utilising local ores
b envisaged, lilceording to the company's publicity materiaL
Another fuJI subsidiary is mining bauxite in the Dominic:an
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Republic and, in May 1960, mining rig.bu were acquired over
30,000 acres of Jamaica. Chart 9 shows the extent of Alcoa's
foreign intere3ts.
1- a.-a Because of the anti-trwt laws theno: is legally no direct
a ...
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E' .. ..a oonncct.ion between Alcoa a.nd Aluminium Ltd., but they arc:
both owned by 1he same Mellon-Davis dmninaled group of

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United States sharchofden. T"·o brother.s, Arthur V. Davis of
Alcoa and Edward K. Davis of Aluminium Ltd., were for many
years president of the respccti\·e companies. When the latter
died in 1947 he was succ:eedcd by his son, Nathaniel V. Davis.
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'W • ~ The size of the Davis block of shues in the Mellon aluminium
companit3' i5 about a third of that of the ~lclloos. In 1957

~ r.. p r • " ~ ~ Fort1111e, the American journal read by eJ1 who would be weU-
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informed on matters of big business. listed Arthur V. Davis at
one of seven persons with fonunes between S400 million and
$700 million. Of the other sc<, four were Mellon&. Aluminium,
i
i1· Ltd's Davis ia a director of the Mellon Bank.
United Kingdom provides as 1 aubs.idiary Alcan Iodustriea:
186 187
 Till TIN, ALUNINI(I)d AND NICI:IL CI.\STI
Ltd., and Fronoe contributt$ a further "'holly..owned tub ~
sid.iary in S.A. des Bauxites ct ~hJwnines de Provence, in which
Aluminium Ltd. has invested some $100 million. Its mines
produced 300,000 tons in 1960, from which o.lu.m.i.n.A h pro..
ct:ssed. Making iuelf independent in the sphere of tran5p0n
Alcan created Saquenll)' Shipping L<d., fully financed by itself,
to own and charter a Bee1: of ships for carrying the group's
bauxite, alumina and ingot.
Though Kaiser and Reynolds set up aluminium companies as
an attempt at independence from the Mellon empire, in the
case of Kaiser financial alliance was fonru:d early. Reynolds also
h.. not found it pouible to keep entirely aloof from the ~telloo
tentacles. Formed in mid~l928, Reynolds Metab Co. created in
1910 iu subsidiary, Reynolds Mining Corporation, to work
6,100 acres of bauxite land which it had obtained in Arkan!las
and to mine fluorspar in Mexico, which is shipped for prooe-.ss..
ing at the company's worb in America.
Abroad, Reynolds owns bauxite mines and exploration tracts
in north-cas.t British Guiana. as well as in Haiti aod Jamaica..
The dried o,.. are shipped to plants in Massocllusetts, Dela-
warc1 Arkansas and Texas, U.S.A.• more than 3 million tons
hnving been mined and shipped during 1961. Otbeuubsicliaries
IUld a.ffil.iatcs operate in Bermuda, Venezuela, Philippines,
Mexico. Caru~da, AustrllW., Africa, ColumbiQ and other pQrta
of the world. R<:yooldt jamaica Mines Ltd. in 1957 acquired
the right from the Jamaican Government to mine bauxite for
99 yean on all lands then owned or held by it under option in

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retum for ore royaltic:s and taxes. These lands amounted to
?4,000 acres. Mining le1ses have been obtained on 5,822 acres.
The United Kingdom end of the Reynolds' aluminium
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• activities is operated through British Aluminium Ltd. At ooe
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•~-Ei' timt it looked aJ though Mellon would take over the British
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~ company, but an alliance between Tube Investment Ltd. and
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• Reynolds secured them 96 per cent control of llritim Alu·
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minium, T. I. taking 49 per cent and Reynolds 4-7 per cent.
The Commonwealth, EW'Ope, Asia and Africa are embrued>

I 188
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within tbc company'a sphere of actjvities. its subsicliaries and
affi.l.ittes controUinf power resources, bauxite properties, pro-
'' 100
lfiO• t'-OLOMIAl.llK TNI Tll'f, ALONII'fJUM AND ~ICJ:JL OUMJI

ceuanc worts, a·m a Grand Hoed, and a pea~ t.rust.. all of Coottol, ~ownou, it tlw-od wath the Morgsns. Thw, the
wtuch are liued amonJ 1\abe Jn\c:wnc:ct's antcrestl as tbe Mdlon &roup p--c '~'~'7 to an o~ btlmingly more powa--
rnojor par<nt company. r AI · · • ful compoct of in....,.. luddtA behmd tM Olin Mathiaon
Bntb.h ANmmium took O'~CT' RqliOicb T. • wruruum m fiiCO<Ie.
micl-1961, owned at tM time 51 pot cent by T.I. and 49 pot 'I'M secood-brgcst holder of Fda is a combination of tM
e<nt by Reynolds. Mtmhers of the Reynold•' family on on the Pechincy and Ugine comranies. Ptchiney is an abbreviation of
Bdtith AlunUniwn board, which occommodates W. B. C. Compagnie des Produita Chimique. tt Elearomttallurgiquet.
Perryc.oste, director of Ghana 1Jaux1tc Co. Ltd., a wholly· Among ita directors it Paul Cillet, An honomy governor of
owntd IUIJiidiary of the company, rt:giltered in London in 1_933. Soci~~ Gtn~rale de D~lgique, chalnna.n of Union 1vlin~re, and
Otht-'f African interests are reprc»ented by E. f. 0. Gasco1.gne, aJsociate of many of the foremost conotms exploiting Mrica't
chairman of Tanganyika Holdin,p, Kt:ntan Gold Ar~as~ Zam- rr:suun.:c::s. Its chainnan it Paul de Vitry, a director of the
~i• E-q>toring and Zam.bcs... lnvest~t! Ill ~~~ the 6aoque de Paris et des Pays Bas.. This bank, of "'hich Henry
T1npnyib Concessions sphue. The •obJ~ve' Bnt1~ pre~ lAfond wa.\ abo a diroaor, beiid~ !lilting with PauJ de Vilry
is abo ~u:d by the psutnoe on Dnulh Alunuruwn s OD Pechiney, Operates in .... Cooao and South Mrica. Tn r...
board of s.. Go>lln:y c......m.r, ooe-time edit~ of The n i.s ubiquitous in the ~ <rMturn going fonrard in Africa.
- IUld . - itt deputy chairman. c-mcrew UtuOn c:opccWiy those in tM - Sut<t bcnlcriac the Sahara.
A.ounnce ;. abo among Sir ~..,· t and lad Plawdeo't l'cchincy. rcgimml iD PadJ ll the .....,U,C of tM y<21 1896,
dm<torohipt. u the continuation ni a ...-npany formed.,.., a huncmd ytan
I'RIA Cie Int=ationale pour Ia PruductO,n de I'Alumine, oeo in 1855 and, like the otherkadinamininc and mctallurlieal
Cuinca, i1 one of British Aluminium's biggest interests in companies in Fnnoe, his hnh with the c:ou.ntry's le.dinc
or
Africn, i.n which it holds 10 per C!rnt the sham. The projf:!ct banking houses. Its prolifernions are manifold, oovuing the
is to produce, initially, 400,000 ton• or alumina annually, of production of bauxite, baryttt and lignite, chemicaJs manu-
"'hlch 10 per cent will be available 10 Urithh Aluminium. facture, the proceujng of aluminium aJ)d other metala and
The MeUons were the origin.al party directly interested in eloctrOm('tallurgical prod~•· ll n\:lnufactur('.t almost every·
developing Guinea'~! bauxite rcsourcu but, unable to force the thing from plasdcs, \hrou~ iron aUoyt. graphite producta, up
~lure on the ~ly independent Afrtcan Stale, their~~~ to new metals and nucltar produat. It holds pan and total
wm fOI'Citd to retir~ haYing ftuitleltly diiburscd., ac:c:ording to portion.t uf aBiliatod e»mpmi~• in FI"1U)CC and other countrict
rn F.urope. Africa and c::~hc::re- ftt rniniog: operation• -rn-f

--
lhcir 0\'l"ll esrimate:&. JOtDC $20 million. Othc:r partners iu F ria
(rom ~~ to !lOUth of Fr.~ 1nd inlu Atria..
Respo.,.iblc today for (out-fi(tht of Fm~a:'s output o( ofu.
Qt.- Ma.dlaoa Chemin.l Corponboft. U.s.A 43-S% minium, P«hiney's tndinJt in tht Md:IJ .:counts for norly
hdli~~~CT·u,...,., r...... 26-S%.
60 per ttnt of iu tultloO'\· u. hs only tiu:able Frc::och competib)(
Atwninal.m IAdustric AttwncacLc~.
sw;tze:rlud 10% it U~ which collaborates with Pcchinty on. inY'eltl"ntnt
V•N:.n.gte Ab.tm.inium-W~rb A.O., Gcrtt\&OJ 5t..n poliq·, u "'c note above, and an a Joint sales subsid.ivy.
Aluminium Fr~Jl9lis. !loth fimu arc cxponding rapidly, and
Olin :\l.o.thieJOn is within the Rot.ke(ellcr sphere of influence Pechiney has as widc-.sprcod operations •• the British and 1
represented on the chemical oomt>•ny'• board by Lawrence American oJuminium companie11, though tbc latter have' greater
Rodr.cl'eller, who actt: for the family in its activities outside oil. output. It is expected that Pcchiney·Ugine capacity may reach
100 191
JfiO~COLOJrfUL II,.
300,000 tont by 1965. Pochlney uoeo U per cmt or a total
r-

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Frt:nch power output. 10 that the di100vtry of na.ural gas at
Lacq in JOUth-\\•tttem Franco made 1 conaiclcrable contribu-
l
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tion to itl expansion.. It had pUJhed the aluminium ~01' of itt
exports to 57 per omt and hopt-1 to ave on iu production c:o1t1
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by tbe introduaioll. of a new
tlunUnium. A pilot plant bao
for rtduc:iqg ba~.aitc to
put into operation and ito ." f'
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.ma:ns will c:nable Pechiney to expand iuw new alwni.uium E'
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industries.
Throu&h llx: Dtnquc: de PatiJ, "hid> it ttid to be llx: bisgeot
olwdlolder in llx: imponant F....,.._Non.qian chcnuctl coo-
oem, Nonlt Hydro, majority-contn>lled by the Nonn:ci&n
Govcnunent, Ptduney may become hnked wnb the pn>J<Cl.
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1"he Norw-~1 are uWou.t to incrca.tc their output from 1U
pramt leYd or 200.000 101>1 to tiOO,OOO tont by1970. Altady
Peohin<y ;. in coo-'a opentiq "' c....,., Spoio aod llx:
Afza>tine, ODd bas boldincs In Scacca1 aod Mtd......r pro- •
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jects. A. a nutter of ftct, there is bard)y a new cocuortium
! ' F~> J -
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tpriDc;izlc up In Alriea todoy, panic:ularly in the ~fthcreb. in ~
which Pecl!imy doet ,... haYe an oar. It ctrtainly bat a ...• 2:

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,.-uchful eye on the .... natunl gao clepotita or tbo So.hAt&,
"hicb ""' no< un«onomkaUy ditunt rr- the bawlite fi<ldt
of Mt1i.
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Tbe intem=rutmal nickel fitld billds a select eokrie ol at.rac-
tin, procusing and fimndns concerns whoM con&rol koepa it "'
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within fairly Qdusive nu.merical lltMs. Crou.pcd 110u.nd the
...< ~"
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IJ>tcmational Nickd Co. or Canada tAd. J'NCO-Foloon-
.. -z- ~~ 1• ..
brids<, Sh.mu Cormn Minco 1..«1. o( Canada and Faraday
Uranium Millet l.td. and Freeport Sulphur Co. o( the United
States arc not gqr.phOily a:mfmcd. In unnawcllins their
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engacementt, we find their pmetr.tionJ in Africau well as in
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other parts or the world.
lnco's dil'CCC link with the Opptnhdmcr rnini.na 1nttruuln ..."' ,"'..
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Africa bao almady been made apparon1 thJOUJ[h the int<rloclting
dlrectorohips of Sir Romud L. Prnin nnd STr Otto Niemeyer.
We wiJl see fun.her how, throu'h iu interens in c:e:rtnin mines,
these ore connected ind.irecdy·wrth combination• hllvingddinite
"
ties with the erploitlltion of Africa's mineral resources. It is
192
19S
 NIO•COLONIALIIN THR T I N 0 ALIJMINIUJo1 AS'b N'l (; l( lfL CHANTS

when the firumcia1 intcrests behind them are cx..-uniood that we product~ Hence certain nic:ke1 ooucentrates in excess of ics own
find the continuity o£ power. treatment facilities are worked for S herritt Gordon Mines, and
The name Mond immedi11teJy brings. to mind nickel, as well there is an agreement with Texas Gulf Sulphur Co.• covering
as explotives, chemicals and arms, and we find it linked to the the operation of a pilot pl•nt to investigate procems for the
mon powerfullnternational nlckd organisation under the fonn rtcO\·ery of elemental sulphur. Tilese agrcement5 issue out of
of International N~k:el Co. (Mond) Ltd. 1t was the founder of certain oommon holdings that gi\'c identity of interest to
Brunner Mond & Co. Ltd., Ludwig Mood, who, having apparently competitive oonccms, tied up with oil and its allied
im•cnted the aromonia soda prOC6s and found a cheap source financial groups.
of power from small coal, discovered a method of recovering The controlling interests in lnoo are not apparent as there is
nickel (l'()m low-grade ores. 'J'his led to the finding, aoquisiti?n no ob,•ious United States parent. although American <:tlpital
and development of mine.s in Canada, the ..vorld's prt:Jent chief from most of the leaWng fi.oaocial groups predominates, and
aouroc, the ores coming almost totallv from the Sudbury lnco ownw the entire eapiW stock of The International Nicltel
district of Ontario. Brunner Mond, "together with Novel Co. Inc. which owm the operating assctsloc:ru::d in the United
lndustrics, United Alkali Co. Ltd. (an amalgamation o{ forty- States, and of Whitebe>d Metal Products Co. Inc., American
eight ·works) and British Dyestuffs Corpor:ttion L~d., were ~nit distriburon of non-ferrous metals. Laurence RockefeUer is on
togethc.r in December 1926 to fonn Impenal Chc.."tmcal the Unit£<~ States fnco baud. The Canadian company's chair·
Industries Ltd. m:a.o i~ H. S. Wiug-.1.tc, a direc.:tur of the Americ:an banking bou11e
Mond Nickel Co. Ltd. was established in 1914 to exploit the of J. P. Morgan & Co. and of the Canlldian Pacific Railway.
mine that adjoined lnco's propenjcs on the Sudhury range. \Villiaro C. Jlolc:.niu.ll, an Jnco ilireclur1 abo liil:s ou dire(.1on~tes
The interests of both companie-s were fused in 19Z8. Change of of various Bell Telq,hone companies, as wella.s on that of tl1e
name to its pre~ent form wat m~e in February 1961, and the Gu.aranty Tl"\.lSt Co. ofNe:w York, Morgan-conrroUed. Another
eomp11.ny is a subsidiary of Anglo C:Knadiao 1\1ining & Refining Inco director, R. 5. MeLaugbJin, is a director of General
Co. Ltd., which owns thi! 9 mjlli(ln shares issued out of the Moton and on the board of the Toronto-Dominion llank,
11 million authorised to oompo11e the capital of £5 million. which links with du Pont interests. Ou l'ont itstlf is under
A.ng1o-Ca.uaWan is itself a wholJy-owned subsidiary of lnco. heavy Morgan influence. Donald Hamilton McLaughlin is
Atnong the extensive properties and plants owned by lnt~r· President of the American Trust Co., which has three inter-
national Nickel Mood io the Uni1cd Kingdom a.re a rrdimng locking directorate& with Morgan banks and insurance com-
works in South Wales and a procious metals refinery in a panies. He a1so presides over the board of Homes:take l\'lining
London industrial area. a number of rolling mills in variow Co., linked throu~b its holdings in Idarado Mininc Co., ·with
parts of Britain~ u well as the entire share capial of Henry NeWTOOnt M.ining Co. within the Morgan q>here of inBuecce•
• Wiggin & Co. Ltd.. manufacturers or nickel and nickel alloys Cerro de Pasco, another of D. H. McLaughlin's directorships~
and other productt.. Two intC!rcsting items in Nickel Mond's owns -a number of companies operating mining :and oil proper-
treasury GrB the entire capit2.1 of Clydacb Estates Ltd. and ties in Peru. Neu'fnom Mining has a subtlantial interest in
Mond Nickel (Retirement System) Trunees Ltd. This il'l the Cerro de Pasoo.
United IGngd.om end c4 loco, which halt appointed it11 delegate Theodore Giles Mont:ague, :another American on fnco's
bOGrd and consolidates the U.K. ~u:co\mt!l with its own. board, is chairman of the Borden Co., a tnulee of the Dank of
In order to keep its p lmu working to fullest capacity lnoo New Y<U"k and a director of American Sugar Refining Co. All
lw arrangements with associates for the treatmeot of their three or ~ companiell ill within the family control of the

m 195
 l'o'!O•COLOWIALIIN
Rockefellm. John Fairfield Tbompoon abo reflects U.S.
interesu on tht loco board. Another trUstee of the Bank of
New York, he represents the same interests on loco's American
distributing organisation, Whitehead Metal Produc.ts Co., and 14. Union Miniere du Haut Katanga
points the link with Texa.s Gulf Sulphur, under Morgan and
Standard Oil (Rockefeller) domination. J. F .•T~>?mpoon ~eveo.ls
the African interests of these groups by his directorships on
American Metal Climax, and its British associates, Amalga·
mated MetaJ Corporation and Henry Gllrdner & Co. Lc:d., who
are also connected ~ith French tin and nickel interests. These
are some of the giant combinations involving tin, aluminium
and nickel, which are draining amy the mineral rttOurces of
Africa.
THI'lU!. is perhaps hardly an industrial organisation in the
world that has been so wide.ly publicised over the past five
years as Union M.iniere, becawe of the ducks and drakes it
has played with the C$tabtishment of Congo independence and
unification. This great mining company has been sin~ Congo's
independence the bone of contention between the Congolese
government and the seeessionist Katanga Province. Principolly
owned by small s.hartholclcrs, its control rested with Belgian
and British financiers.
The largest block of stock in the company, 18·1+ per cent
of the 1,242,000 sh>res, which formerly belonged 1<> the
Belgian eolonialiKiminittnltio~ paned at independence to the
Congolc&e government and wu held in trust by the Belgian
govern.rnent for a time, pending the sett1ement of political
problems. In November 196+, Moise Tshombe who had by
then retUrned (rom exile to become Congolese Prime Mininer,
published a decroe which had the effect of uansferring contrOl
• of Union l\lliniere from Belgian banking and other interests to
the Congole!le government wiLhout c:ompenMtion. The decree
gave the Congoltse government the cnlire portfolio of 315,675
shares in Union Mioiere held by U>e Comite Sp«ial du
Katanga, a conccss:ion-granting concern, two-thirds of which
i• owned by the Congolese govenunent and one·third by
Belgian interest5. •
The Belgian government considered that 123,725 of lhese
196 191
 to:o- COLONIAl.! i'-1 UNION MINtAll DU KMI'I' 1CATAH(;•
share.s belonged to the Contpag.nje du Katanga which is an of capital to Bdgium :Uone wu four hw\dred ou\d si.'<ty·four
off-shoot of the ~t< Generale de Belgique. The effect million pounds.
of the decree was to reduce the voting strength in Unj~n Wben Lumumba assumed power, so much capital was
Mini~r~ of the SocitrC G~n~rale and its usoeiate, Tanganyika taken out of the Congo that there was a national deficit of
Couces:sions Ltd. from 40 per cent to less than 29 per cent, forty million pound.o:
while the Congolese government's votes were raised hom ne~ly Tshombe is now told the Congo has an external debt of
24 pl!l' «.:CUt to nesrly 36 per oen~ This meant that in any policy nine hundred milJjon do1Jars. This is a completely arbitrary
disput.e the Belgians would have to rally the support of nnall figure--it amoWlts to open exploitation based on naked
shareholden comprising &bout 36 per cent. colonialism. Nine hundred million dollars (S900,000,000)
For weeks the Bclgjan go'•ernment and tlle Congo~e.se is supposed to be O\ved to Unitod States and Belgian
government talked of arranging meeting~ to discuss the satu- monopolies afcer they have rnped the CongG of sums of
otion. Each had a trump card. The Belgtan government held £2,5(JIJmillion, £464 million, and £40 million. Im".ginc
the entire portfolio in truSt, while the Congolese govemmenc•s what this would have meant to the prosperity and well-being
strength lay in the e:tpimtion of Union MiniCre's leue in 1990. of the Congo.
On 28 }lllluary 1965, Tshomhe arrived in Bru•!\Cis for talb But the trogi<:~medy oontinuts. . . . To prop up
with the Belgian Foreign Minister, M. Spaak. He asked for Tshombe, the: monopolies decided that of this invented
the immedia.te Ju.nding ovtr ci the pnnrolio shares _vtlu~d at debt of S900 million, only $?.50 million has to be paid. How
£120 million. These includtd 21 pcr cent of the ,·otmg nghts genemuJt, indeed!
in Union l\fin.iete. The! Belgians, on the other hand. demanded Bonds valued in 1959 ~~ £267 million, repr~nting weahh
compensation for Bdg.ian property damaged in the Congo extracted from the Congo, are to be retumW. to the Congo
troubles and for chartered companiea who lost mineral con- after ratification by both parliament.J. But the monopolies
cessions'under the Novemher decree. They abo insisted that have decided that the ,.·aJuc: of the bonds is now only
the .agreement should rover the interest payable on defaulted /)07 million. So the profit to these monopolies is a net
Congo bonds. £160 million.
After days of hard bargaining, Tshombe scored :W~t The monopolies further annoWlccd a fraudulent pro-
appeared to be a great triumph. He secured the £120 null~on gramme to liquidate so-called Congolese external debts of
ponfolio of shares, and abo received a cheque from Un1on £100 million. Upon announcing lhi1-, they declare Congo is
Minitre fOf £600,000 representing royalties and dividends on to be responsible for a further internal debt of £200 million.
the Congo's 210,450 shl.ll'es in Union Miniere, which _gave ~ fn plain words, they ore depriving the Congolese people
24 per cc:nt of the voting righu in the com~y. ~·tb tlu:s of anOther J;lOO million. And they call this generosity!
• diplomatic victory he returned .to •Lcopo~~vdle, hts . ~nd We learn that the monopolies have declared a further
strengthened to deal with the conunwng pohucal and trulitary burden for the suft'ering people of the Congo: an internal debt
problems of the country. Since then he ha:s had cause to wonder of f:J.OO million on which the Congo must pay additional
just how nwch of a victory he achieved. C::OOIJlfn~Lion qf £ .12·$ million to Belgian private interens.
In my address 10 the Ghana Kational Auembly on 22 :'Yfarcb Beyond this., a. joint Congolese-Bdgi:m organisation lla$
1965, l gave details of the Coolgo situation: heen formed. It is withdrawing old bclolds and replacin&
them with fort)··year issues valned at J;IOO millil)n. T he-$:
'In the fi\1e years preceding independence, the net outftow will pay interest at 3l per cent per atlnum.
198 199
MIO•COI.ONIALIIM UHION NUfllll DU HAUT UTA!COA

Note this: 1.1 the old boncb are worthLest, the new embnce or b.,·e iDdirt<:t rebli""s with it. They do ""'· ..... .
o~tltlon llliUt ~y all inureu on the old bond• &om ....-, eompkte tho atent of tho eompany't ...........,... Iu
I~ 10 the monopoli<o and lUQI - 01' TH.I cnnntaio:as with I~ iniU.I'UCC. fi.nancial and iodwtri:al
\llOJmla... 0C..0 ltONDI mUJl be: giun 2 DCW boncllc>t cwrJ howes in Eusopo and tho Unitod St1ttt ""' Jbmm in the
okl OM. Jo lhort, the orpaisatioo is a deric:e to takr ·~ following Wt, as "-& u iu coancellono with the Rltndesia•
10 auich the I'IIOGOpOlieo funber and to dc£nud tho sulJ""'c eoppttbclt:
pooplc of the c-ao. c_..,F...om.t.x.-
. Tshombe hu promiJod ""' to IWiooolite "'""""""" Soci&icme.u...taF...... HJd~FOR.
nluod at J;I!IO million and to ....,.;, 8,000 lldgims in tho So<itti ~ .vnc.;,. d'Eiectric.t6-SOORU!C.
Congo. He hat Itt up an 1nvestmenl Bd co rna.nqe Ill - Gmmle lodumi•Ue .. Clumiq.. do J..t.n.Do-
ponfoiOOJ. The nlue is placed at ~ miltiotJ. It is con· SOCECHU.L
tmllod by lldgi.,.. Sorilte ~lltallu<PJue du Ka..n_,.m"TAI,KAT.
[n one year, Union Minim's proliu wcro CJ.1 million. M.inottrits du Ka~.
Dut although the national production in Coqo incrcuod 60 ~4de Rechf:rd1e MWtn du Sucf..Katan~ SUDKAT.
per cent bctwCCO\ 1950 and 1957, African buying po~r dc- Cimc:nts MCt.Uursiquca de Jadotvi.Do--C.J\.(J.
creaaod by I~ per ocnt...• The Congo!... were taxed Chuboruup de la Lucna.
280 million franca to pay for European civil tervantl, 140 Compagnie des Chemin~ de Fer Ktta.np·Dilo&o·Loopolch-illc
million fnnca for opocial fund• o£ BeJaium, 1,329 miUion -K.D.L.
fm.ncs for the anny. They were even tuxed for the Bruueb So<ieti Africaine d'Exploollo-AFRIDEX.
C...pognie M.antimo c;:.,q.loOoc.
Exhibition. Socitt~ d'E:cpklitation cks Miad d.a &.4-Kaunca-
O.opite poljti<al indcpeodencc. the Congo remains a ~fiNSUDKAT.
victim o( imperialism or.d n«H::lonialism .•. (but) the SocK<id--dloLu BLVALUILU.
economic and fiau><:ial COIIU01 of the ~ by fOI'djv> C<mp~d'""-d<Mnmcr.
int-IU ia not limitod to the Congo alone. 1M dcv<lopinl ~de Rc:dt.ud at:td'Exp)oladoadee S.rau.a; du Cortco
cousurios o£ Africa ore all subjtc< to W. unboolthy inB- -BAUXJOONCO.
iD one .,,7 or aoother.' ~F-,.x-,.
~ d.'lafoo•..UU. eN Cobalt.
U thit ~tion oppcan 10 """tain mucb detail, tho acwly Sooftlcm&alo~cle,........
indepa>cJent poop!<~ and their lead<n ba>-. DO """" Ufi<'ll - Aocftrmo ... d'Eaplo;wioo "' .. Na ........
~
talk todtty than 10 bwu into th<lr ooruc1ous11<a eualy JUCh
detail. Fos it ia sud> matcrUI that mak.eJ up tho ba.rd ""li'Y ol Sooi<o!Cbmkd~ '"'""'~!.!.
thit world i.n whk:b we are trying to live, and in which Alrk:a
ComJIIIPie 8dae pour J•faduttric ck l'AJuminJum-c08BAL.
Fo<Uy.
i1 emergins to find ita place. Co:opagnie Bdge d'AMu·1noes Ma.r,limes-.oELCAMAJL
The full oignificanee of the pat1 playod by Union MJni~r< SoeKtC Auxil.isin: de II Ro)ale Un.lon Coloniak Bc.l~t--
in Congoleae affa.irt otn only be undemood if an examination S.A.R.U.C.
is made or the intorcltl im•ol\'ed in this powerful company. won~o;, Colliery eo. l.cd.
Nearly all the large enterprises engaged in exploiting the lklgian·Ameriaon Bank & Trott Co., New Yort.
manifold riches o£ the Congo oome within its immodia~ Bel.gian-Amt:rican Bankina Cof])Oftti(ln. New York.
200 201
MM•COLONI.t.IU.I UlfiON WUflhl DU HAU1' CATANOA
Cam~~ Cm&a~e d'EI«trolyte du Pt.laia S.A.• Pan.. of m. 8,000,000,000 of Union il<tlnitre. Oth<r prinapal
Ttdilcria tC l.atni.Mirc du Hane S.A.. PariJ.. ~en~ the K.a~ang:o Sp<dal C..mmilteeiAd Tangan·
S..llti B<IJ< .-r l'lodusncs r>...xau.-BELCO Jib C..ncemo~. Royalty on the eoncasion is poid to the
NUCLEAJR£. "-np Commiuco by way of a Nm <quivoleno to 10 per cent
TIApJWo Concessions is OD< por<m ol Union :\1iniU< du o( ""1 di'ridaxl distnbutod .,..,. acd lbo''e • loW of
llaus Kscanp. The C<htt wu dle Kaunga (lldpn) Special fn. 95,1)0,000 in any year. T""P"yilta CGacouicnt, by ag,ee-
Comn:Uutt. Union M:Wtte •-as fOrmed benrctD them lor the mem with dle Commit~«, alwT• in tlW apedol bm<lit to dle
..,.ted purpo,. of bringing IOgdher dle in..,..... of both atmt of 40 per cent. Ot;pnally incorpomod in dle Congo,
orc-anii&tinnt in the mineral d~veries Tanpnyab Con- dle compony took iu 1<01 of adminiatl'llion and .U iu funds
caUont hid nude under • conccuion gnuatcd to it by the: !o Bcl!Pum during 1960, wben the Congo wu adtleving
Commtlt« an che Katanga provi.nce of the Congo. The con· mdep<OOena: and needed the ouppon o( those who, o•er tho
ce:nkm, which ha' until 11 March 1990 to ruA, OOVUI an area yean, b.d dnwn ouch heavy tribute from it.
ot 7,700 .quare miles, containing rich copper u "'-ell 11 vnc, 5ocittt Generaie'o paorooqe hill&• <k>t<ly over Union
cobaJt, cadmium, germanium, radium, gold, silver, iron ores Muuere. ~ttached to the Katanp Specia.l Committee is the
end litnettone deposits. I ncluded i.s a tin area of 110mc 5,400 Compagnte du Katanp. Tho Katana• Company i11 within the
tqunrc mHct. group of tbe ~agnie du Co~ pour lo C.mmen:c: ct
Ores m.ined arc proceased a& a. number of plants, pua.ing l'lndustric-C:C.C.I.-consti~tod 1n 1886 wh<n Leopold ll
throu,ih smc:ltinr and cona:ntration stages. Hrdr!Hicct r&cal ~s. C!eaung his pe:rsonaJ em~ue in the Con&Q. lt wu on t..be
ent"¥)' is tupplicd from four main power piAnu. one of ·whJch trull411VC of one of l..eopold • IWuhbuoklcro, Captain Thys,
wu inrtalled by n sub£idia.ry of UD.ion 1\l.mitrt, the Soc:iCtC that c.c.c.r.. according "' the chairman of the Socia~
~nholo d01 Foree• HydnH:Iectri~ Thtte othen bolo"!! Gt!nmle, beame the fin< Belgian enttrpriJO embl.i•hod in
to Union M.uU~re itself. These three pbnts ue oon.lltCt«< to a the Mart of Alrica. Hia name it &ttiiChtd to the repaar ttation
cfutribution netWOrk, pon of which is devo<od to NpplyinR of the fira ...w.....
y f"":' ~i.tod.i to Leopoldvil~. 'l'hyn;ne is
d«tricsl powtr to the Nonhem R.hoclr"!nmppct~t at the now a mtpottan;,link m the rail"'ll)' l)"'ttm, and C.C.C.L, in
rate of 600 nnllion 1tw. p<r ya<. Pon ol chis .........t " "'''""" t~ words of SocieU ~·· ch~rman. h.u dooe ita inoep-
by the Socilt<! Gin<nk AiricoU1o d'Ekctricit6-SOCELEC toon beeo cxmnoctod clircctly or throuch '" offi!Wts, with all
in whi<:h lJ.,Mn Minib'e has a sub.s~antial intcft11t. ~ C()moo I<CtOf> of «llC!!mic aai•oity in dle Coogo by dle crutioo of
p&r~y'• plaAu., Ela.betbvillc, Jodohilk, Kolwai IIDd Kpusbi lt'ID!pl>ft entorpria, ogricultural "'"'"";.., ocmeno wmb,
conownod 7S rroitlion kw. in 1962. dw\nc whieb yeor -..in ~~ and bWldlog conc:mu, propeny eompanits, food
cWnoa<> awed to tho inmlbtions in Dcccmbcr 1961 were: mdwtnes, as w~l u ~mme:roa.l finna. The company has,
completely rq>Oir<d. ~ the chainnan, contribusod to endow tlte C..nao ..ith
Molt or the c:oncema in which Uftion MinK:rc II iotcrcJtcd an "'lui- "'hieb pt-. the country in the fim rank. of the
are ouppor<od by lllc Sodat Gcnhole de Belgique. Many oloo black Mrican states'.
have conn«:tions with Anglo American Corporadon either Several of these interlinked enterpriJCI are included in the
direct or by way of Tanganyika. Cooceuiom and U~on Urt of .Union Minitre'.s iuteres~a, which frequently join thote
Miniero and their rubsidiarict. SociCt6 Generate haa a dJrccc. of Socia~ Gcoende. Thuo Sococot Gt!nc,..lc MtOAIIutgique de ,
holding of S7,S38 Jhares out of the 1,242,000 shares of no Hoboken, a company in which Sod&6 ~ncrale owrll 50,000
nominal value •hat constitute the authorised and iuucd capital shares of no par value, proorucs centi.n ~.i·fi.nithed products
202 203
NJO-COLONI.U.IIN

from the Union lllin~ro minto for the nwltct in finished

metals o£ hich purity and individual t~tion. In con·
junction v.-ith the FanJtttl Metallurgical Corporation of
Chicaro, Koboken created a joint ouboidwy, Fanste&
Kobok<n, in December 1962, with • etpitll of 360 million
franeo. This new compony will produce ..r-ory metW,
notably W>tllwn, columbium, tqoten and molybdenum, in
VArious nwltetable fonN.
Wlllkie Colliery Co. Led. repreoenu Union Mlnitre'o
p&nic:ipation io Soutbem Rho<l<oia'o coli mi.neo. Wblle iu
ohu<bolding io - uolmporw><, Anglo Am<rican Corporation
predominaus ond octo u the compony'o occmory oocl
~ cnab-n. CapiWioecl at f.6,000,rXXJ, of -.hicb
J;$,277,810 b plld up, the COIII!'":"Y 0wt11 coli-milling rips
0\'er 42,rXXJ oaa and oiUfaco rishu .,..., ...,... 29,000 ocreo
of laad in the Wllille dittrict of ScMhan R.hocktia The
mraru b) wiUth 11,. mioin1 in,..,..., dominate the JI(>V<mlnmt
of the 'acttlu colon.its' are maD), but the IJIUUief in which
land i• ,;.... rwoy by the odminittration and then laue.~ bock
fn>m the buy.n or,.,.... txhibiu aome of the mott unuhamed
-
lDd open &OTJ'llllndcrlftl posJible. Tlw• Wlllkie Col&ry
oblaioed on tiona-term leu< by,.._, WJth the Rhodesian
pt:mmmt atrface richtJ CD 26.,000 K:rU o£ land additional to
the ~tioned otruehet, in rewm fi>r which Wtnkie
hu cn<iowly leased oome 4,rXXJ ocreo of owface rips in its
oriainll landholdinc• to the rovemlll<Jit.
A directDrillllink, M. .., Weyenberah, usociated Wlllkie
Colliery with Soc:itt6 Mttallurgique du Katanp -
ME'I'ALKAT-.. ouboidi•ry of Union Minin, founded in
Belgium in 1948 in conjunctloa with S.A. deo Min.. de
Fondcries de Zine de b. VieUle-:\iontagne, 10 constrUCt It
Kolwa.i • plant capable o( producing ~.000 tons of electro-
lyric zinc annually from concentrates prwided by Unioo
Minlere'• Prince Lwpold !JUne. The Metalbt p!Jwt produceo
1;inc, c:admium and rcfintd copper. Wilh a capital of
fn. 750,000,rXXJ rep.-oted by UO,rXXJ oh.,., of no par
volue, the compo.ny made • n<1 profit of fn. 160,831,393 in
1961, ai1er providing for Vll.fiow liabilities, a.coons which
204
205
NIO- COLOM tAl. IS» ONJOX MINih& DU JIAUT UTANGA

dh·idend.s accounted for frs. 120,000.000 (o.lmos-t thr~ One of Sudkat's mort important investments is in SogenUncs
quarters of net profit) and directors' pcrccn~es fra. 7,8~7,51?. Ltd. This company, though rcgimrod in Montr«l and opcr-
Union MjniUc's part.ner in Metalka.t, Vieille-Montagne, u lrtiog in Canada, is so intlma-tcly c:onncxtod with the Sociitt
one of the big European mining concerns p~dueing . zinc, CCnCrale that it bu on it.s board six of the Sooeittt's directors,
lead and silver. A Belgian company, founded m l0~7, l t ~s two of whom are alsO on the Union :MiniCre direct:onue.
silver-lead-t.inc propertieJ in BeJgium, France, Algena, Tunis, Societe Generale's investment in Sogemines covers 2$9,250
Gennany and Sweden and metallurgical worts in Belgium, preferred shares of $10 each and 1,281,250 ordinl11')' slures of
Frar\te and Germany. Of the 405.000 sham of no p:Jr value $1 each, rcpresentingoverooe..fifth of the Canadian c:ompany's
constituting its capital of fn. 1,000,000,000 SociCtC Generalc issued capital. A wholly owned subs.idi.ary, Sogmlines Develop·
owns4ll,l56. Jua=untsforthcycarended 31 December 1961 mwt Co. Ltd., is carrying out exploration wortt in various
showed a net profit of frs. 143,287,506, .after v-.t.rious P.ro- pan.s of Can2da and holds minority interests in other mining
\oisions. of whltb the largest was for re.eqwpment, aml)tmtmg enterprises. Sogcmines Ltd. is an in"estment and hokli.ng
to frs. 100,000,000. Dividends took frs. 101,250,000 and taxes company )Y.lrticipating i1\ nU.ning, oil and industrial ventures.
thereon frs. 27,700,000. Directors' perct!fltages took frs. t .. C. and F. W. Park in Tlu Anatqmy of Bit Businm, grnphic-
14,327,760. t..egal tc$efVCS seem. to acco~t for, C:O";siderable ally make the point that its •relationships between Canadian
sums whic:h these large c:ompan1es set as1de. 1 his Item was and Belgian capital are based on the allianot$ tbat operate both
credited with (rs. 100,000,000 in Vieillc--]\llontagne's 1961 in Belgium or the Congo and in Canada'. (p. 157.)
accounts. Sogemines' parent, Societe Gm~ra1e, devote.'i considerable
The Compagnie du Kataoga, like Union Minierc, attaclled space in its annual report to the fonner's operations. T he most
to the K.atanga SpecW Committee. joined Union Mini~re in important concern in which they are interested is Canadian
creating in the Congo in 1932 the . Societe de Roch~rche Pet:rofina Ltd. In 1961, Canadian Petrofi.na made the rocord
MW~re du Sud-K>tanga-SUDKAT. Both Compagrue du pro6t of 1;5,516,926. Petrofina is a Belgian oil company with
KaWlga and Union Mini~rc. had ~tcresu in .a large area international associations, especially in the new African States,
adjacent to the L1tter"s propemcs wh1ch they dectded tO com- botl1 inside and outside the oil industry. Its connections with
bine. \Vith Congolese independence, ~ntrol of Sudkat as. well Societe Generate are not limited to sharcholdings and direc-
u iu funds were transfcrTtd to Belg.um. Copper deposrts at torial interloeking. As5ociaciona are maintained with sevttal
:\ltusoshi and Lulx:mbc o.ud zinc-lead~sulphur ore bodies :rt leading banks, including the Banquc Belge, the Banquc de
Kengerc: and Lombe owned by Sudkat were trnmferrc:d to l'Uniou Fnml)ais, the Credit Foncier de Belgique, the Banque
the Socit!te d'Uploitatioo des Mines du Sud-Katanga- de Paris et des Pays Bas, and a number of insurance companies.
MlNSUDKAT- fonned in the Congo in )Wle 1955, wi~• • Under the impetus of Sodtt6 Gtn&ale and ce.nain associ·
capital of Colljlolese frt. 50,000,000. ates, a subsidiary of Pctrofina, SociCtC Chimique des Derives du
Sudk.at holds interests in the Companhja Carbonifera de Pttrols-PETROCHIN-undc:r\\'ent a financial reorganisation
Mocarnbique, c:oncerned. with coal mining, as ,,-ell as in during 1962. when ccmin assets were passed tn it, principally
u..,.;congo and Motslbt. ~albt created_ a loc:al company by l'etrofina. Societe G<ocrale used the opporturuty to make a
in 1962, tbe Societe M~tallurg1que Katangasse, wnh a cap~u.l participation of 29 million francs to the oompanfs capital, •in
of 600 million francs represented by 1.50,000 shares~ to which which aeve.ral other enterprises within its group equally own :
it transferred its Katao.ga installations. The zinc: ingots interests'. Societe G6nCnlc's sharcl>olding is 58,000 'ahms of
produced are being processed by Metslbt. no par value. Cobeoam, a joint venture of Petrc<him and
206 207
NSO•CO L ONULTSW ONION lloH~Uh lt DU MAUT J:ATANOA

Union Carbide, brings together the banking interests of Recherches d. d'Exploiutions Minerales, hu an. affiliate
Societe GCnCtale with those: interested in the great American operating in Venez:uela, Petrobdge de Venezuela. Pc:.trobelge
chemical corporation, the Continental In.su.ra.nce Co. and the is linked with Petrofma and the Durcau de Recbercl:ta ct de
Hanover Bank, which is invol•tcd with Anglo American Cor· Partiapation• Min.ims Marocain in prospecting io Morocco,
poration and the banking consortia now engaging themsclvn the first ltllgCS of which will be oompleted in 1963. Italy is
in ,·entun.s in the new African States. There- i' some Rocke- anoc.her scene of :Petrobclge's activities, where in c::ollaboration
feller inJiucnee in the Hanover Bank, and it i1linked by firumcial with the Italian oompany, Awonia Mineraria, and the French
interchanges with the A.rncrican Fore group of New York, a organisation, Societt Fran~se de Participations Petrolietes-
principol fire and auualty imuraru;e company. PEfROBAR- it is investjgating hydrocarbons in the oon-
Union Carbide & Carbon manufactUre$ enriched uranium, cessioru: obtained by Ausonia. In addition, Petrobelge has
and through the influence of iti direct backers, Hanover Bank, asrocitted itself with an ItaJian-Frcnch-German consortium
and indirect associations with the Rockefeller-Mellon group, in a ,·enture prospecting seismic regions on the Adriatic COGst.
bas become the major cootrac:tor to the go\'tmment-owned Both Petrobelge and Pctrofina have g<>t togetber with the
atomic energy plants at Oak Ridge, Tenne3sec:, and .Paducah, Spanish company, Ciepsa, to prospect for hydrocarbons within
Kentucky. For this purpose a separate divi..tion wa'l formed, a ooncestio.n owned by Ci~sa.
Union Carbide Nuclear Company, unnium and vanadium Direct links with BelgiUm's military programme and,
mine! being worked in Co1oratlo, and a mngs.ten m.ine and •eeordingly, with that of NATO,.,.. closely operated through
mill in California. Unioo Carbide's range of interests in the the Poudr~ries R.Cunies de Belgique, whose c:apiul ~ in..
chemical sphere is wide, it having a very large synthetic mosed during 1962 from 203,900,000 fnmc:s to 266,700,000
malerials sector. A Canadian s.ttbsidia.ry of Union Carbide is francs. At the beginning of the )'ear it ilbsorbed the Fabrique
Shawiniga.n Chernicals, wh.ieh it half owns in company with Nationale de Produiu Chirniques et d'Explosifa at Bonce.lles,
:Monsanto Chemical Co. and Canadian Rosins & Chemicals Bdgium, whose pt.m~h.ase included a p<4rticip;l1io.n iJl du:::
Ltd. An affiliate, B. A.-Shawinigan Ltd., is owned by British capital of S.A. d'Arendonk. The acqu~ition of the littter'll
Ame.rican Oil, connected with the Bank of Mootre:al and selling organisation has added to the scope of the company'.s
M.eUoo. Sbawinigan Chemicals has several subsidiaries which civil activities. The.sc Belgian concerns are linked with the
are equally controlled with U.S. companies. SociCt~ GCnCrale Soc:.itt~ Mricaine d'Explosif~AFRIDEX-in which Union
hu its own nuclear oonoern. SociCtC Beige pour I'Jndu~tric Mini~rc hu interests. The military and nuclear interpalttn-
Nucltoire-BELGO NUCLEAIRE-in which we have noted tion give~ a special emphasis to the uranium output of the
Union Mi.ni~re's interest. Union Mini~re. complex, which in the poot-war yean upheld
This is only a single abort strand of tbe tangled web that the Belgian economy and helped it to refurbish iu industrial
relates predominant banking intere.sts in Europe- and America equipmenL Out of the C<>ng<> come the spoils that provided
to industrial undertakings in Africa and other J)W't!l of the for the furthe< exploitation of the territory and the high
world. It gn·e! only the barest indication of the eb.stie character productive ratio the lately devastated "·ar-ridden and N82:i-
of these interests. occupied oountry attained so swiftly. EV<D before the second
The incursions of Soei~LC GCnCrale into the oil world wodd war, uranium was already making the Shinkolobwe
are not confined to Petrofi:n.a and iu auociates. Petrobelge. mine a very imponant asset to Union Mini~re and tbe Bel~
another company carrying out prospecting in the n~rth of government. As one writer puu it, tThe Union Mini~re
Belgium in association with tl\e Societe Campinose de achieved a cert2in notOriety in the 'N·enties and 'thinies by
208 209
WaQ•COLOI'tlALUM Ul'o'JON !lofllfJhr. Dtf HAtlT KATANAC

obliging would-be purchasers of radium to pay $70,000 • on Sogeminea., who,se chairmM, W. H. Howard, be$ides bcing a
gram, utni1 competition from the Canadian Eldorsdo oomptny vice·prcs.ldcnt of the Royal Dank and chairman of the lt1on\J'eal
forced the prioe down to a mere $20,000 a gram. a level at Trust, is linked with the Rothc.rrnere newspaper group in
\\'hic.h both companies were able to make a profit' (Antllorny Creal Britain and is a dirtctor of Algoma Steel Corporation
of Big Busi•m, p. 156). According to the calcul>Mn of ex~' Ltd., which owns four 'ooaJ mines in West Virginia and lime-
Union MiniCrc'a profits were estimated ro be three btlla()ll stone and dolomite deposits in Michigan Sta-ce. Algoma
franC$ a year, $60 million in terms of American currency. and supplied the stee1 for the construction of a S20 million plant
over ()0 million in sterling. IU Sault Src Marie, Ontario, for the Mannesman Tube Co., a
In spite of the disturbed situation in Kau.nga and the subsidiary of the Mttn.nesman 5tte1 compmny, which is a
protests of the company that their bwiness had been seriously prominent member of the Ruhr industry o! Western Gumany.
impeded, Union Minihe's balance sheet for the year ended 1\.tannesm.an is said to be fa&t iocrealing its penetration into
31 December 1960 showed a nt!t profit of fn. 2,365,280,563. Canadian indu.nry. It& board includes representatives of the
Dividends abiOrbed no less than frs. 1,963,000,000, rather Deutsche Bank and Dresdner Bank, both of which are much
more than half the net profits, c::arrying a di\tjdend tax which in evidence in the consortia engaged in Africa and connected
went to the Belgian governuu:ot of frs. 381,578,313. Emolu· prominently with Anglo American Corporation. Chairman of
mt.'tlts to directors, auditors and !taft' fund (for Europeans) Mannesm.11Ul since 1934 is W. Zang~r, 'a former nte!mber o(
absorbed frs. 84,609,393, while Pennanent Committee mem- the Nazi party and of t.he S.S.; he w;ts one of the gr<t\•Jl or big
bers reccived r... 7,111,567. Gcnnan industri:.lisu WliO rmauced the Nsni ri!ie to pC:l\\tr and
F.Jdorado Mini.ng & Refining Ltd.. is by DO means indepen- prm·ided the armarnents for the N~i w~r m;'lcl\ine. Tn the days
dent or the big business and financial interest& which ha\'e of the Nazl inva'lion (I( the Soviet Union, Mrumeam11nn opened
Canada's indUltry in their grip, and whose associations with short•lived affiliates ln Kiev :md Dnjepropetrovsk' (Anlllomy
Africa and other less developed a.reas of the world ue inter- of Big Bu#nm, pp. 109-110).
woven. A former private secretary to an (!X-minis-ter aits on its These are the forces that link with the South African,
board. which i!'l hnkod. with Canadian. Aluminium, whose Rhodesian, Congo, J\ngolan and Moxambiquc mining mag-
d.irect.onue indlldts a former Co\'emor-General of Can.:.da. nates and industrialists, and we $OC them now entering the
As we go along we shall sec how these intcrlockings of inter- development projects of many of the new African States,
national finance and eohcd public 6gwes and lthe people's hiding their identity behind government and international
re:presemawives' create an ol.irrchy n( power pur~uing and agencies. whose real ebanacter is at once exposed when their
athieving their special interests, which have no relation what• affiliations are carefully eumined. They are the real d.irectors
soever to 'the public good', with which they are made to appear of n~-colonialicm.
synonymous. We .!•all find that the Royal Bank of Canada,
represented on Eldorado's board by \V. J. Bennett, has con-
nections with Soci~C Generate and Union Minihe through
imerlocking11 via Sogeminct and prominent insurance and
brullcing groups.
Wankie Colliery Co. Ltd., for insta.nce, gives us M. van
Weyenbergh, a director of Union Mini~re. Metal.kot and
Socie~ Generale, oevenl of whose directorial colleagues sit
210 211
 •
ICONOMJC PaEa&URU t N TUB CONOO RBPODLJC
Tiuages Afriocrins, created in 1946 by the Cotton Union and
the Societe Generale. The Roektfellcr family holds 60,000
shares, o f which 3,000 are in the hands o f Nel.son Rockefeller
15. Economic pressures in the and 26,438 belong to lAurence Rockefeller, wbo abo hu
Congo Republic minority intc~ts in · two other companies of the Societe
~ntrlle's group: Cie Generllle d'Automobileo et d'Aviation
au Congo and Les Ciments du Congo. He owns about 14 per
cem of the capital of the company for the manufacture in the
Congo of metal boxes and all other articles from en:untlled
sbf:ltt.s, and the same share i.n the Conao company for the pro..
ductiun and tr.adc in pinellpplu, ANACONGO. In 1952 both
Laurence and David Rcx::kefcll~r panicipated in acquiring
about 30 per cent of Syndicot pow- !'Etude Gioologique et
ON SO June 1960, when the Cnngo betame independent, thcrc Mini!re de la Cuvdte Congolaise. All petrolet•m products
began what will undoubtedly be rt.garded by historians as the used in the Congo continue to bt: Unpon.ed from abroatl and
most stormy and oomplex chapter in that country's, and for the giant Rotk•feller trust, I'Esso-Standard, created a distri·
that matter Africa"s, history. Within a few weeks there wat a. bution subsidiary in the Cnnj!O in 1956. I'Esso Cnngo Delge,
breakdown of law and order when soldiers of the For-ce rechristened Esso Central Africa in 1960. Another subsidiary,
Publiqm. disappointed b«t.use independence did not bring the Socony Vacuum Petrol Company and Texas l,etroleum,
imm«liate improvement io their position, seized arms, arrested h:1ve minority participations in the Soci~~ Congolai~ d'Entrc
white officers and N.C.O.s and finally broke up into rioting Posage des Prod.uits de l,ctrole.
bands. It was at this point that Moise Tshombe, with the help There are some American plywood companif:s there, wch as
of Belgian advisersv began the proceedings which led to the United States Plywood Corporation, with Agrifor and Kori.na..
seoes.sion of Kaunga Province. The newly indepwdc:nt congo, and in the Syndica.t du Papier. Pluswood Industries
Republic of the Cnngo m~s <rippled by di.orde< and unrest. has an agreement with Com.iniC:rc, who have together fonned
The story of the United Nation• inte"ention and Lumumba'a tlle SociCtCCongolai$C Belgo~Amerioaine pour Ia Transfonna..
murder are well known, and so also are the poHtical events rion du Bois du Congo-SOCOBELAM. Olin Mathieson
which han followed. Leu publjcised. for obvious reasons, have fndurtries, which have interests in the Poude:ries RCunies dt
been the involved c:oonomica~vects oftllewhoteCongo tragedy. Belgique, have panicipated with t:nion Minl~re and several
Yet these are in many w~ys the JnQrc significant and CC::t'ta.i.nly other groups or the Sod6~ ~.-.~. in treating the Sod~te
the more sini.ster si.nce they are dominated by foreign intcr~t1 Mricaine d'Explotifs-AFRIDEX. Olin Matlt.ieson have a fifth
whose main ooncero has always been for their own private pin. of tl~e capital. Othen investiDg there include the Industrial and
TI1ere: wall not much American investment in the Congo lnveuing Corporation, New York, Annco Steel, Bell Tc:le~
before 1960. What there wu, was largely indiro<t, through phone. General Motors and Otis F.IC\·I!:'lOn.
Tanganyika Conc~sions and Union ?.1iniht and the Anglo Since 1960 the flank of Ame.rica hu acq,Wred 20 per cent in
American holdings of the Oppenheimer group, and carne the Lambert Bank group'• Sooobanque; Ford has foundcp
mainly from the Ro<ktfeller group. This group nlso had por· Ford Motors (Congo); Union Carbide bas tal:en a doaunant
ticipation.s in the important textile company, Filatures tt porticipation in Sornilu, created in 1960 to exploit a pyroclllore
212 21S
MZO· COLOMfAL!IM I CONO)!' JC Pai!SJUaU f!'f TRJI; CONCO aiPO'RLIC

min~. This min~ral oontains niobiwn. a rare metal used in the Cnisse d'Epargne du Congo Jk.lge~ the Offioes det Clte.s
making special steels. David Rockefeller made a tour to the Afrieaines O.C.A., OTRACO; the Regie de Distribution
Congo in 1959, for 'information', after which his group took up d'Eau et d'Eicctricitt Uegideso, etc.
1,000 out of 26,000 shan:s in SociCtt de Recherches ct 2 The chartered "'mpanies: Comitt Special du KaW>ga
d'Exploitation de Bau.'tites au Congo- BAUXICONGO. In (C.S.K.) Comitt National du JGvu (C.N.JG.); Cie des
June 1960 he annoWlced that he would take up about eight per Chemins de Fer des Grands Lacs.
cent of the 65 millions of capital i.n the Cie du Congo pour le 3 Im·estment companies like Unatra; Cic du Katanga, etc.
Commerce ct l'Jndu>trie and C.C.C. I. Dillon Read & Co. and 4 Mining companies like FonniniCre: Mines d'or de Kilo·
J. H. Whitney & Co., bankers of New York, have created an Moto, etc.
investment company to examine the possibilities of American 5 Transport enterpriae-5 like Cicicongo; Tnnspon en
investment in the Congo. This is the American Eurafrican Commun de Uopc>ldville-Chemin de Fer K.D.L.; Saberut,
Fund. tte.
Interesting as this American pcnrtration i.ntu the Congo is, 6 Production and distribution; undenakings like electrical
of mort immediate concern is the continuing Bclgian domina- power, such as Forces de t'E.st and Forces du Bas-Congo.
tion of $0 much of the Congo's «anomy. In Ln Trwtt au Congo 7 ~riv~te enterpri~s in which the Congo held only minority
by Pierre joye and Rosine Lewin, a clear picture of the events mteresu"
imm~::di.ately preceding and followlng independence is given.
Acc()rdiog lO their :.ltXOUnt, 1he independent State of the The pos~~!iSion of thi-' important portfolio pennittni the
Congo, under Leopold Jl, owned a large part o£ the capital of public authorities, in principle. to r.xcrcise a considenble
the original oomp::tnies, aJ.,o of the 'chartered com.panie1' influence in the Congo eoon(uny tfld even to oontrol com-
created at the time, and of priVO\te enterprises. After the Belgian pletely certain important sectors. Moreover, official statements
Gcwernment took over the administration of the Congo, these justified these participations, declaring that they allowed the
participatwns were increa,.,ed in a number of ways: by direct State to exercise its role of •guardian o£ the public interest and
intervcnlion in the creation of new orgo.nisms of a 'para-statal' tutor of the n.o.tivt$'.
nature; by the arrogation of certain rights as recompense for the The example of the C.S.K. is significant in this rHpect.
concessions they gave; by e~ttrcise of right to &ubscribe to the Leopold 11 had controlled this semi-public organism by
iocreasc of the capita) of companies in which the Congo State re9Cn1ng to the State the right to nominnte lour out of the six
already owned th:ares. members of its administration. Bu1 after the taking over of the
As a result the Belgian Congo held a consider2ble portfolio of Congo by Belgium the C.S.K. wa1, during fifty yw-s, the docile
inveS-tments which, :u the mon moderate estimate, v."'ere valued instrument of the Onion Miniere1 although it had evtry oppor-
at about 40 million £r.ancs. In ac.:klition it possessed vartotL, tWlity to conuol the great Katanga trwt. C.S. K. wu by far the
prerogatio.·es. such as voting rights and tl1e right to nominate biggest shareholder of Union Mi.nia-e, and the statutes elabor-
representatives to iklr.ninistrative boards, in a vrhol~ series of ated in 1906 officially oonfern:d on it important rights in Union
enterprises in which it did not bold capital participations. This Miniere, notably that of dellig11ating tbe administrative council
portfolio tomprlsed participation!l and ri_ghts in: and a certain number o£ directors. C.S.K. never used these
right&, but on the contrary confided its represematton to tlttt
Enterprises of a 'para-!tatal' character, such as the Banque most obvious leaden of private capital. The hold oflthe trusts
Centrale du Congo Beige; the Soci<tt de Credit au Colonat; on the Congo administration was total, the more so slnce tl"te
214 ~15
)fiO•COLO!'fiALUM £C:OJifOWte •ti. . VIII IH 1'HI CO"OO UPC:UIC
bi& companies 111etc able to enswe considc:rable material pemmtnt did it afterwards, thb couJd crtate a bad impressioo
adnntacc• to the: repn:seotativcs o( the State who paucd into ab~ giving rise to tbe bcbef that tbcy hod -'Ung against
~ir acnice. the prmte comparues.
Bcfote June 1960 the uwu spccded uptbcir manocuvru to Tbc: trL11'li0eU:YJ"e wu ~- It wat c:uer to mnvi.nce the
prc«nt tilt Coocoluc people from oominC iruo pos-'on ot CoQ&Oitae cleles*s, oince mon ol tllem ahowtd an under-
1boir patnmony. At tJu: time of the Round Table Collfcr<nee, Jtaodablc disuwo -.rds tbe clwterod compollita. n.., hod
the 6nancul prus wu emphtticolly irui~ 011 the Btlp.o only too ohen hod orasion to declare that the a>mpanies
pcmmcnt obtauunc cuazanues from tJu: future Coop p~ the game or the big trusts. Aa"' theoe, ceTtlin Conaol-
Ropublic. 'llt the very first place, it is ~ to lheltu the parties hod called for the disoolution olthc: companies aoc1 the
enterpri~a from ~entual nationalisatioa." The Congolt.te tnnsfer of their rights to the <:<>~.,. S..te.
nationlilist partits '9i.ere, however, unan.imoua i.n opposing the The Belgian offici.ols cbo'l>td with glvinR tedu>ical enli(bten-
m.aint.t.nanoc by the Be-lgian financial groups of an economic metn to the participants tt the Round Table Conference were
protoctorott ovtt the C<>n1:0 after SO June 1960. op<nly careful to indicotethat "•• C<>ngo 1\opublic could rq>ay
Conl«(uently, they insisted that the C<>llgQ portfolio should the colorua.ljsts lor tbcir put,hr u•ing in 1hc intercsu ()(the
be tromfen«< int'1l"'IIY and without oonditions to the young Congolese people the prero&ahnl in 1he companies which
Republic, which would be able to make use of the riahts aritinj{ would devolve upon the State.
1
(rom it tO n11me iu own rt'llrete"DUH.ives On tl1e p3rtl•ltltal' A hUtTied decree of 27 Ju.ne 19GO, tl.ttc: day• beforo the
organitmJ md, if such should be the c:a.se, in the priV'Ilte procl21n2tioo of irldcpc:ndcnce, sanaionrtlthe dissolution of the
CongQiete comptJ\ies. h waJ this which frightened Belgian C.S.K. 2nd the divWon of ill a»e&a bc:t~ec:n the Coogo and
financial circ.ks; the p.rosp~tet ol Stting the Congo Republic the CO. du K.ttanga. At a atrokc the Con&<> Republic loR the
n)ak_ing u~ nf the inconttttable rights that tl•e po&ae:Uion of thf' poooibility Of utilisinG the powtrfuJ IOJtrumen.. Of oomm:utd
Concolc:a: portfolio would confer upon it. whM:h it woold bave dispostd of in taJUnc over tl•e di....:tion of
To aYUt tbu, Raymood Scheyva> vainly tritd the nwlOCUYnl the C.SK. and the prercgat~Tcs ol the: Ualon Minim wue
which .,... quickly ~ by the ~ leaders: be pr<tcn<d.
propostd t O - the fi....;.) n«ds of the CoiJ&o by UCOIJlll Tbroulfl the intermedlaty c.s.K.. which --lei ...... in
a 'mixed mftllmmt comJ*ly', to 'ttbicb the Co.nao wou.ld r- ~ • ~ pva-mtal orpniJm. the C....,
coofcr the ~t of its portfolio, Bdcium on ttJ aide Rcpubli< would 1A dfect have obuinod the statutory richt lO
brinlu>a U OMUaJ COilmOutioo Of one billion fnD<:L U this desipute tbe pre>idmt of the "-P '"'" and • conain
111empt failod, the Jldlian !0'-.rtunent ..... all the bappier in number ol other dirccton on iu board. And the Coocolese
the cue of the chanutd companies, wbooe cbuolubon ,. perruncnt could nen have p~ ict view• in the
txti..U il would decree I few days before :!0 june. Jt aJ10 general mnetings ot the Union Minim, throtJih the C.S.K.
dectdtd 10 dasolve C.S.K. aod C.N.Ki. before C<>ngo acc:ocltd which w•s the b;ggeu lhareholdtr or the company. •
to independenoe. The ~ssoJution ~~ the C.S.K.. not only lost to the Congo
On the occuion of the Round Tsble Conference, Sc:heyvtn Repubhc the pouibllrty of benditmg !rom the prt:rogatives of
parleyed "'ith ctrtaln Congolese delegates, whom be tried to this organism. The convention of 27June l960 accorded QOn,..
persuade that it would be better jf the Belgian government stderable additiontll advanta.gw::t to the CJo Uu Katanga. which
iuell proc:eeded with this meuure before 30 june. He made rectived full ownership of a third o( the lands improved by the '
them ~Heve that it was preferable because, if the Congolese C.S.K. (allotment zone1), iu real estate and bltnltingt,a.t well as
216 217
 HIO•COLOIIJ .. LIJW
COONO.WIC PlltiiDJlRI IM ttu: CONGO . .PUBLIC
the right to a lhird of the rmu which were apea.cd in lhc
fun,re from tho mintnl oo-..ioos alloated by C.S.K. tomah massive "ithdi'I\Ji'lll of capitalattht llm.t t:in\e u the'f
If tho grouad ri&fllJ ond minenl ri&flts not alread)• ClOilC«kd puthed to the maximum the export oleo.,....., produc:u, and
oo the other hand, limited to the ...,.,... th.; r unporu. The
roven to the~. this retdtutioc at righu over tJ:e Om'-'kte Coogot..., lade bolanoe ,....hioa from the tc:tioo pn ..,
land ond min<nl potrimooy will ""' be effeot<d W1thout
mmpctuatioo, oiooe the oonvenli?n ~ ~ tho ~ ~onally high swplu. ,. 1959 (IS,m milliao Cnnc:.),
RqJUhlic mwt pay i.n ~~ a fOtfawre andcmnaty of "hieb ~ DOthing to ,.,, the Conp from very great linancW
100 million to the Cte du Katanga. ddliculties. In &ct. a btavy propo.-tion of the '""" IUltidpattd
The C.N ,J<j, ....., formed for a period which will ~re on from the ..te of Congolese produeu """' 001 mwnat co tho
Sl o.-nbtr 2011. H.,., &pin, it would MY< bteo ouftiae_nt ,r colony, :md more than le"''CC. billion, of pnvacc capitalldt the
Cungo in the counc of the- aerci.se.
the ConcoJco< COYttnment utilised~· rights .oonf~md on 11 bJ;
narutc to cxtra.se a pn::poo.derant in.ftuence U'l this ~r&·Stf:lC The~ manoeuvres ha~ cost che youna Arr1can State sad
orpniam. 1"he Btla:ian authorities, however, co~uded wnh c:onvulsioru and hQYC brought it to the edge of chaos. And they
the olliclols ol the C.N.Ki. a convention which deeoded that the have done nothing to resolve lhe essential problem for tll~
Belginn Conao would withdnw pllll'!ly ~ aimplr n.s. a OO?· fwure or the Congo: how to recover (rom under..devclopmcnt.
ce111on pa_n.nfr and renounce at the same ume all ns r~ghu m
1he AaiOClation.
A docreo i11ued on 30 May 1960 3pproved thi• convention
and, by a otroko, C.N.Ki. eeued to bt a semi-<>fficial organbm.
On 21 June 1960 ita ahareholdcrs decidod, in addition,. to
ttandonn it into a oommoo Aoclt company c:atled the SociCc/o
lklso-Afriaunc du Kn~-SO~. This company ."'"""ed
{be right to uploit for Its OWO pm-ate profit cxdUJIVdf tbc-
min<•ofC.N.Ki.as wdluthoimegnl propmy of the port~o!io

we cm:r tho administration ol the crown laod!, the

prcrrides that the lhartholdcn of SobW shall r«ave "'
CIOIIlpauauon 'a jU>t Uldanoity'.
--lion
whicb this ocpjsm had aonltituttd. If tho pubic auhontles

To CJve u "''J>CCO'lDCC of 1epbty to those con• amORJ, tho

• rq>reaentauves of tho lklgjan government d<darcd that they
octod 'in t«<rdonee with the wishes ap=std by the ....
nomic fuu.oclaJ and aocial conference which took pl:.c:e in
Bruu~ll in the month& of April and May 1960'. In reality, In
pronouncl.ng the clisoolution of the C.S.K. :md the C.N.Ki. the
Belgian authoridos wontod, above all, to place before the new
Congolese State an accompUshed fact.
In order •o ahow how inditpcnsable the financial support
or Belgium WIJ, the Belgiltl companies had, in fact. t.akt:n care
218
219
 lo'IONIT .\aT ZONU AND FORIICN IANXI
obtain economic and financial &elf government and lndepe.nd-
ence. In order to obtain this it is of absolute and paramount
importance that a central bank should be act up by the Govern-
16. Monetary zones and foreign ment.' In &Ctti.ng up the Bank of Cha.n.a we obtained uaistanoe
banks from the Bank of England, but our bank has always followed a
policy designed to secure our economic i.ndepe.nden.ce and to
foster the general de\'c:lopment of the country. The Bank of
Gho1na, like other bankt, tel up in a similar way, hu no claim
on foreign exchange reserves of England, but has complete
control over its own foreign exchange ea.ming8.
The East African Currency Board i~ the ma.in multinational
monetary institution in the 11terling arQ. It embraces Kenya,
'I'ne U.N. Economic Commission for Africa's Standing Com.. Tanzania• Md Uganda in Africa, and Aden outside the region.
mittee for Trade has reccotly described the African continent with a currency frocly com•ertible at a fixed rate to tbe pound
as •riddled with different trade regimes and payments systems sterling. The member countries of the Currency Board have no
supplemented in most cues by specific economic ties with control over domestic money supplies. In the long run these are
countries or groupings of countries outside Africa'.• One or the controlled by export nod imporc.levds and foreign invtttment
most effective ways in which Britain and Fm..noe have retained fto"os., and in the short, by lending policies, of the London
economic tits with former colonial territories is through action baoka.. Under this trrongtment mtionally directed growth often
to ensure that the new State& remained in the monetary zones leadt to a shortage of currency which binders expansion.
oenued on London and Paris. In Britain the names of the 'Big Five' banks are houuhotd
There are seven m:ajor oorrerx:y groups in Africa, the French words. These banks with their immtn.Se resources are cloeely
rranc: zone, the sterling area, the B~lgian franc 3J"C!:2, the Sponi.ah linked with big indua.tri.ali,ta to fonn a smalJ and specially
pt:~~Cta and the Ponugue~ escudo areuJ the South Africa.n powerful group with world~wide interests. In 19.)1 the 147
rand area. and the oounuies like the United Arab Republic and cllieeton of the Dig Five banb held bet~ them 1,000
the Congo (Leopold ville), with separate currency un its. By far directorship$ of which 299 were in other fi.naoeial institutions
the greater part of Africa's tr.ade comes within the e.te:rling area such as other banka, i.nsurance companies and investment
and the French franc zones o£ Africa. uuatt, Many of the biggest companies have d.irec:toT5 on the
The sterling area has been •omewbat looser than the franc boards of more than ont of the bi.g banb. 'The more the inter·
bloc. For wunple, Nigeria and Ghana ha"' established their locking taktt place. the leas o.oe can say "this one is a 6.nancier,
own rurrencies and thc:ir own central banb, though they con- and th~t one js an iudustrialitt". There emerges a group of
tinue for the I'OOISt part to keep their international reserves i.n finance capitAlists dominating: both finance and indusuy!t
the form of sterling. When I opened the Bank of GhAna at the The dangers, therefore, of too close ties with forcign banks
end of July 19M, I spoke of the dccioive part played by a are apparent. Yet the large participations of foreign banks in
eentnl bank in the economic life of a country: 'Our political Mrican hAnks may be seen from the following:
independence will be meaningless unlm we use it so as to
• lkcAri'OUII P~ M tlw &lMJ!urttMl fl/ •• 4fricrm C~ M•IMt.
J3 Oct0btr 1963.
221)
221
"
S IO•COI.ON lAI.IUI MONI!TAII:Y tOf'/I!S AND l'Oai!IO~ BANKS
&ptdfie ..J CfJN{fO: Cs~i.t Congot.i& ia a av.l:XIidiary of Dardar'• B11nk Nigtri~t : Uattb)'!l &nit D.C.O.; Bank of WcM Atn~.-..; 'P1lilip llUl
D.C.O. tb.tou,::h it• affiliate itl AAt.,.,·e:.rp, the .Oonque de Comrncrcc; (Ni~eria) Ltd. is JMde up of Philip Hill (tO%). Banea Commc:tcial~
Ban.que lntem!ltiooalc pour le Comme:r~ tt l'loduttric du Cu.tsu ltaluu1ll: (3{)%), and C«dit Lyonna.is (SOO,k); United Bank for Africa
is a •ub&i.diary or B.N.C.I., P11.rit, t1u'llu8h B.N.C.I. (Arriq,ue.); Banque (8.N.C.I., Rotterdam&cfoe &nk, Banco Kuion.alc del Lavwo, and
Coo.mcrt:iale Congolaise is a •ubeidi.ary of cm!it Lyonnlllt; So<:i~tl B:an.kera Trust. CorporatKm {'Mo-.rga.n)]; ~igerian lodlJ$trial OCTeklp-
c:r&.~.r-:W!
ck Banques a.u Congo is ~t up of Bayeria.che Vereins· mt.nt Bank (Chase ltl.te.macloMl Corpontion. 8at1.lt of America,
b:mk (5%), Socift~ ~nt.rde de Paris (51%), Banco NllZiooak <kl Northwt:!lt h1tcmsotional Banlc, Irving International Finance Cor 4

J..4voro, Bauquc de I'Uniou Parif.icnnc aod D:mken lntc:nutional porntion, &l'lk of Tok)'O, [nstituto Mobfll•re Jnli•no ud <Ammut-
Corpon:ttion (1\loc-pt Cu.ar.uny). banl: havt together taken up •harc:a to the Yalu~ of .£480.000; Socit1C
Fituncl6re pour ld Pay& d'Outremer is made up of lntematM'mal
~ (l.t.opo/dtillt): Ba.nque lnternationalc pour lc Co1J'unt1ct i• a Finance Cirpontion (.€4-90.000), Bani: of N'l.gt'ria (£490,()()()),
sub~idi.uy of D.N.C.l.; Scx:i&C Congobjte de Banque ~abo a aub· Nig«im private inVQJtor.s (£20.000) :tnd the lnvetrment ('.6mp:a.ny
aid.ia.ry of U.N.C.L; Ba.aqw: Jklge d'Af.riquc (Ba.nque de Brunlles or Niguia (£500,000). A rovemmeat loan brinaa total funds up to
nnd '8rufina); Ibnque Centrale clu Congo Beige et du Ruanda·Urundi £41 million.
(Socii::t6 C~l'llle de Rdgk!ue)'; Ranqoe du Congo Bdge (Soci ~U
Geobale de Belgique and Compqnie du Congo pour le Comntt:toc ct Ru.mu!a &nmdi: Danque de Ru~tncb Unanrli il' a •u~id.i:try Clf
l'lndustrit); Banque Relgo..COngolai.se (Socih6 Centrale de Belgtque B.N.C.I .
..,d c.c.c.I.).
Sud••: Nikin Dault (&nque des Deux NUt) is a subtidiur of CrMit
C(INt(r()Wf: Soci6t~
CamM)Ullai&e de Banquc (Deutsch!: UW (!J%) L.yonnais.
and Cml.it Lyonnai$); &nque lfltenutioMie pour le Cc~t ~tneace eor:
l'lnduat:ric (B.I.CJ. du Canwroun is I .ubtidlary or B.N.C.l.~ ltiOTy Ctw.t.' Sod~~ CCnCrak ~ Banques en C-d'l"fOire il tnade
Soc:iCtC GCnenk de: lhnqutS en C.1.ma0un is made up ol Ba)·cri.Khe up of Bayt:ritdte Vcrcin.'lbank, Sociit6 Gbw!nle de &.til, B:mque de
Vertinsb3.nk (5%), SocittC GM&ale de PaN ()1%), B:Lftque de I'Union Plaritienne, Banco Nl%ioo.ak del Luoro, and ~rs
I'Union P2ritrienne, Bllnco N:aalon~e del l..:a\'Oro, and B:mUn Jntcm:atio.Aal Corporation (Morp.n Guaranty); Banque lvoiricnne
International Corporation (Morgan Guaranty). de: Cddi.t i.i.:. "'' b~ic.liary of Cr&lit Lyonnais; S.J.C.I. du COte d'lwire
i:. • •ub•idiary of B.N.C. I. and Soci&6 lvoiricnoe de Banquc is n:uldc
Go~M!: Union Gabonai:se de Uanque (Deut:ICN Ba.tlk (l~o) and up of Dtutae:hc BIUlk (16%). Credit Lyon.na.is (42%). Intc.mationa.l
Crtdh Lyon.n:ats). ll;m~ing Corpo"tio.o (16%), &nca Commctcialc Italiana (16%),
and I \'Cry Coaat Co'·erntncnl (10%).
Li!ui11: Bank of M.onrovi.a is owne-d 100 per cent by First Nnioo:.J
City Uo.n.k of New York f.\'l011r.1n); Libulan T ntd.in,g & Deve~pm.nt D•l«m17: So~t~ D~hornicnne de Banquc is a wb•idiArY of C~1t
&nk (Medioba.nc• (~k) and Bankers International Corpo~tion Lyonn~~.U...
(Mo,gan)).
Moll: &nque ).1alienne de Cridi' c.t de DCp&a ia a w.baidiary of
l.J"by4: The SRhan Dank (Tripoli) (Bank al America International Crblit T•)'t'>tuui,,
N.Y., Ran\ nr Ameri~.-'1, Clllifonti.ll:, Santo de:: Sicilia, Pak:mo (B.atlk
of Atetrica Associate)). J\t(}r'tJIUQ: Buque Franco-Suiuc pour le Maroc ie made up ol SwiM
Bank Corporation (500h) lll)d Cr6dit Com.nw-cial de Ft'llll« (50%):
Ct!flr41 .AfriM: Union Bancaire to Afrique- Cetltnle is owned by Ranquc Nation.de pour le Dn"e~ent EtoMmique i• made up
~e Cit.Wrale de Pari.a and Cr"Mit Lyon.na.it. of DtUtache Bank. &m.:o Naziona.le dd La,·oro, and Commet'lbctrk:
222 223
NiiO~COLONUI.ISM MOKITARY ~ONI.S Al'CD POJU!lON IA.NX$
Ca.iJM Marocaine de• t.Wc:h& i• p1.rt-<1wntd by Cri4it Fonc~r dt National d'Esoomptc de Pari& appeared in Le Jlfmcde, J6Junc
France; Banqge Fon~j~re du Maroc ia part owned by Ct&Ht du 1964:
Nord; lluK:jue- Conm~ du Muuc: ism.adc: up o! Cic lnduetriclle
ct Commercial (C.!.C.), Credit Lyonnala du Maroc, Union Africaino 'WI! have asserted in a new fonn our policy in Afria. We
et FinMI~ Muoe. and Union Europ&nne: Indurtridle et opened in April, u we indicated lost year, the Banque
Fina.nci~n. d'Escompte et de credit~ I'Iod\l$aie en Tunislo (B.E.I.T.)
whid1 we ha\·e founded in Tun" with the &nque Induwielle
Ttlsad: Banque Tebadicnnc de Cr&lit ct de 0Cp6ta (CoTernmcnt of del'Afrique du Nord (BJ.A.N.) and the Morgon Guaranty
Tc:had smd Cr«lit Lyonnai.). International Banking Corporation; this new ertabliihment
has taken over our local branehts and those of the B.I.A.N.
Ttmisi4: Union Dancaire pour k Commerce et l'Irtdustrie (B.N.C.I. We also decided to crc:ate, with the Malagasy Gov~rnmcnt,
and Btnco di Roma); Bttnque de Tuniaie (C.t.C.); Union Intoer~
nationale de Banque ($oci.61~ Tooisie:nne de Banquet-, Banca Com- the Banque Malgache d 'Escompte et de c.&lit (B.A.M.E.S.)
men::ialc t~:;~li.am, Ccmunen.bant. IUld Bank or Amelia~); D~oquc to which we: bav~ since ceded our agencies ln Madaga..~,
d'Bscomptt ct de CrCdit i.l'lnd:ust:rie en Tuni.Ne (B.E.I.T.) is made aod whic::b i.s pres.ided over by a Malag-c&Sy personality,
up of Banquc Indwu;ene pour l'Afri.que du Nord (Banquc de administered by a joint hoard and managed by our rtpre-
t'lnd.ocbine, ~%). Intt:matiooal Bantiog Corporarkm (1\.iorpn scnQltive. We hope to give to this traditional aectot of
Guaranty). and Ccmlptuir IUOOnal d'EIClUmpc.t de Pilril. our influence a new drive and to emphasise thereby th~
position which we:: have hdd in Madagascar since l88$. In
Mod-4gtuecr: &nque i\'bl.gache d'Eseomptc ct ~ Ct6dit (Malagu, Algeria we are retaining onJy ao agency in AJgitrs, where
Go,•em.ment md Comptoir National d'Escompte de Pari:s). in spite of the circumstancc:s we have maintained &orne
activity.'
Swill .4/ritd: In additioo to Ba.tcl11.ys D.C.O., cmiit Lyonnai1, and
other big U.K. and Frmeb banb, there a.re Frentb Bank of South Three days c:ulier, on 13 June 1964-, Le Monde contained a
Arrica (Banquc de I'Jndoebinc), fine National City &nk of New report of the ;tC\ivities of Credit Lyonna.is:
Yodt (S.A.) Ltd., Danque Commc:rciale MriQinc (C.l.C., 12,631
ahues) and the StRDdard Bank. 'In Morocco we ha,•eduring the month o( February 1963,
with the help of the Banque Marocaine du Commerce
In oddjtion, there ore a number of other banks functior)ing Ext~rieur, proceeded to tran&form our agencies into a
throughout Africa, such at tbe British Bank of the Middle East, company unda Moroccan law. The B.M.C.E.E. has taken
which operatea in Tunisia and Morocco and Liby;J, and up an important participation in thl! rqistered c:;apital of &ix
Nation.al and Grindlays Bank, with branches and agencies in million dirhams of the new company, which functions under
the Somali Republic. A recc:ntJy established bank is the Mer- the rtgi&ttted tide of ~dit Lyunnais-Maroc.
chant Bank of Central Africa, which is a creation of the In Tunisia, where our agencies have obtained satisfactory
Rothschild Banking group. The Banque Lambert ha.<~ a par· results, the conversations taken up with the Societe
ticipation as well as Mediobanca. Tun.i!iennc de Ba.nque, tl1e Ba.nca Commercide I taliana,
Reporu of important French banks for their financiaJ year the Commerzbank A.G. and the Bank or America ha'-e ended
1963-<ftndicatc the way in which they are adapting th<m>elvco in the creation of the Union lntemationale de Banques, will}
to the new oond.iUon' of independent States without losing any a capital of 700,000 dinm, 'ft•hich has taken over with tflect
of th<ir fonner influence. The following report of the Comptoir from 2 January 1964 the working of our agencies.
224 225
XIO•COLONIALISM MO~I!TART t.OlHl$ AND POallCN 8.\NKS
With the associonion of tbe- Republic of Chad there was own banks and currcnciee, but they have ~ed their
created in February 1963 the B~~nque Tchadienoe de Credit eurrencits to the franc.
et de D~~ts, with a c:opital of 100 million francs CFA. The existence of separate monetary zoDeS is ha\'ing a lwmful
These tv.•o panicipations help to complete our representarion effect on the ~h of trade in Mrica. It is leading to illegal
in bl:ack Africa, where our establishment is now interested in tr.1de and ~n~nue 1068el in roany countries and makes an
ete...en Mnk.ing companieL' African Common MArket difficult. Like the o!d, artificial
politicaJ boundaries which :tre 2 relic of the coloni:al ~iod, the
The Fr-ench have m:aint.ained dose moneuLry ties with the wrious monetary 20nes help to emphasise differences when the
countries of former French Wett Africa and French Equatorial independent African States should all be working for uniDed
Africa. The Banque Centrale des £tats de !'Afrique de l'OuL'St economic dC'i'Ciopme.nt. They perpetuate linkA wilh fonner
(O.C.E.A.O.) controls tlte curTCncits of ]\.faurita.nia, Senegal, colonial pc'l'VCI'S and st.rengcheo the forees of neo-colonialism.
l"-ory Coast, Upper Voha, Dahomey and Nigu. The currency A significant step forward in continental economic co-
iaaucd by the bank i& still called the CFA franc, but DOW, operation was taken in September 1964·, when the African
instead of 'Co\onies Francai..~.s d'A.frique', the initials mnn Devdop.nent Dank was founded. lts hcadqua.rten are at
'Commu.naute FinanciUe Mricaine'. r\ational monetary com- Abidjan, Ivory Coast, and ics membership is 1i.mited to
mis!iona have been set up in the various States, and there i& a independent African govenunents. All powers of the Bank
limited degree of Mrican representation on the administrative rest ln the Board of Covcmore. each Governor being a.
council. representative of a member state:. The aim of the Bank is to
The s:unc does not apply to the Banque Centra.le des aooelerate the economic development and aoci.al progress of iu
Etats de !"Afrique Equatoriale et du Cameroun (B.C.E.A.C.) member countries. and to accomplish this., the Brank iJ author-
which is concerned with the Congo (Brauavilte), Gabon, the ised to promote the investment of public and private capital
Central Afric:an Republic, Chad IUid Cameroun. The national in AtriaL.
monetar)' commissions have the s:ame powers as those in While- foreign private investment muse be encouraged, it
former French \Vest Mrica. but central bank administrators must be carefully regulated so dlat it is directed to important
sit on them, and the administrative council is composed of growth sectors without leaving control of such soctors in
Frenclunen. foreign bauds. Her~: again, we lite the need for unified plan-
As a research group of the Department of Economics in the ning. With the support of a Union government and a
University of Ghana has poimed out, •the mos.t significant oontinental code to govern foreign investment the African
feature of the5C currency blocs i!l that the foreign exchange OC\·dopment Dank would he able to accelerate the a.timulua
I'C8erves of tbe franc tooe oountrie3 are still pooled in France it is Jlready giving to the economic development of the
itscl£. They are estimated individually for c.ach member, but continent.
cannot be drawn upon bqood a certain margin of credit
governed in each case by a bilateral agreement with the French
government. Local monetary policy. e.xcha.ngec:onttol and duty
policy ... must opente within the framework of this central
QUOCQtion by the French.'
•
Certain former French colonies, Tunisia, Morocco, Algeria,
Mali and Guinea have, since independence, ettablished their
m 221
 l'fiW UIDUtt&I.U

~ ...wa~ p<Oduc:u aoc1 often replo<inc than.

Thb io ba-fil>g on drea upco the madtet pri«t of natural
primary produeta, a (Kt giV¢0 prominence by th• chairman. of
17. New industries: the effects on Union r..IiniUe du Haut Ketanga at the 196+ ah.lftbolch:n'
primary producing countries meeting. The London M.W Exchange, the body which otiU
operates the world prices of metalt, b l.a.tBely undu the
inftutn~ o f the lellding producers and proceuort Like Union
Miaai~~ iuelf, and iu anoc:iates Rhodesian Sdtetiun TNJt,
Coot.in<·Rio Tinto, Amall!am11cd Mcbl Col]lOntion, Mineni•
<t Mctaux and London 'FIJI Corpontioa.
eoco. u:ters. for- their put, are mrul:andy thmlcnll'l the
producing oountriH that they WJllwe oynthetie oubomUlcl aod
rubbtr~ countries tte up ~ainst the in<:re~Jlftl we of
the artificial product. Jwt u the high qu«ationo and ftuctua-
THE second world wtr, fought as it wu on an tlmost ~lobal tiocu of primary producu are influenced by tho monopoly
scale, called for acic:ntific and inventive geniu1 in unpreccdcntal producers. so the threat of the use of synthetics h oo idJc
meas-ure, all towttdt one md: tll:at of dtstnk."'ion. Tbe noed waminc. since the controllers or the na.tutal producu arc alto
for vast quanthit-1 of cquipcnr:nt aod the 111pply 11ervices that the majoc produe<rt of the artificial materials. For the wne
~ ana1lary to tho pUJl>OM ol mping out Jl<Orl< and atics, rcuon, the produom of l)'llthctia will be ear<ful not to com-
a.n.imatc:d. as peiiCC neva did. gcn·e:rnmental support for invcsti- .,... too vigorowly with the rwunl produc:u. F..- """"Pie. it
pUoll mel mnteh into,.,.,. aod- ntionaJ....,. ol,.,. hu beta oiJet<d thot Dunlop ....,.. slow to bfs>a .,,thetic
production. The United Suln, which bcauD< the prime n~bbcr =ufxturinc "-'"'of their lafl!" pbntatioo 111...-..u
arxnal and pnwider for iu Weswn allies, ftJ naturally !ore- in Malaya.
most in adjusdng iu industrial macltint:ry to the new methods All four of the American rubber-produ cing gi.anto, rtftotone,
tt the close of the war. Since then the dcmanda made by the B. F. Coodrkh, CoodrC':ar and United StateJ R:ubbtr, are
n:c:onstruction of ntinal cities and the rtbuilding of d.i&jointtd engaged in the produetton of artificial rubber. United States
economiea ha\'c JLOIXIeratcd the trend. The poUcy of contain· or
Rubber worlu 90,000 acrts rublx.·r plancations in Mtlaya and
m(':nt, military advtntureaauch as Vietnam, Cyprus and Korea. Tnc.lonui,a. u well•, oontc~tion" in Bruil, Ve:netu4:-b;, Colombia
cold ,.., ~-Pm"ll mel the race in rod<tt uoembly aod t.nd other Latin AinC'ric:ko ruuntrio. Ita aynthct ic rubber and
tpaoe-shlp buildU. line oddcd their quo<L Autcmaticn aod rrlllkd plants.. with tilt: rxa:ptioo of that at Nauptucl:, Con-
the u.se ol dearonia an: fut spradinc and, u in .Amcrica, n~c:ut, arc plactd, like thox of its tcxtiit: diviJion, in the
uking hold ..:berever ~ proc!uctioo 6ncb it mon: JOUtbem Swes of Americo. "berc labour;, chetj>« than in tbe
profitable to r<placc human labour by push·buuon thinly· DOrth. In 1962 thcro wu 'tigoi6ant apansion' ol the com-
manned rnteharusma. p>ny'• plutia faalctl<O, under which the prodtiCtlon capacity
The resuJtina truncndous bound forward in ptOductil·c of tU 'K.ntlastic' m11crial was increaJOd. ThU ia dcteribc:d as a
potential has cre:t.ted Aft incrusing demand ror the ~ 'tough plastic-rubber blend', for which growing UJCS are beint
m2terials of industry, and there has sprung up a rapidly found in automobile• and w.rious appliances, Ill fonrlcrly uting
enlarginc astonrntnt or synthctic nw matrritls, rnaoy of them rubber.
2211
 NEO·COLOKtALISM NIW INDt!ITiliU
Goodyear, 11.0\()l)g the 6rst twenty companitt in the United the Britilh Dunlop, more or Jess complete the small circle of
States, has iu own rubber plantations in Indoncsi.n, Costa Rica, trusts th:tt dominate the world's production of rubber. They
Dra:zil and GuatcmaJa. It operates synthetic rubber plants at are JlJ engaged in anificiat rubber-making and the manufacture
Houston, Texas and Akron, Ohio. A 30 per cent increase w:u ut othc:r synthetics. The furious advertising that goes on in
made in the compmy•s facilities for research in rubber, p lastics t.-very oountry of the world to push thc:ir individual produces
and other scientific exploration in 1961 , for the ootnpoUly has leaves no doubt about their keen competition for ma.rketl, and
become interested in chemic:lls and aeronautics. :tll of them have: factories as weU as a multitude of agents and
Firestone is a byword jn West Africa where, uncil the rec.-ent repcacntalivet spread across tM globe.
advent of iron~re exploiting companies, it dominated the Thjs brief review of the rubber monopolies illustrates their
economy of Liberia. I t is still 'King of Rubber' there aud, like inte~-relations and their domination of both natun.J and syn-
other rubber gianu, gets iu rubber alw fro m phUltations in the thetic rubber tlm:)Ughout the world. It becomes incre:uingly
Latin Americfltl. t.-ountrie.s, us well at Ceylon. It h2.3 fifty-eight obvious as we delve deeper into the OJM!r.ttions of the industrial
phulls throughout the United Stares, including four for syn~ monopolies that they have the dt\'elopiug countries at a
thct.ic mhher :md (me working on what ls ducribed as 'U.S. complete disadvantage.
national defence', Anotlter fifty- lhrtt plant~ are spread around As providers of no\•cl ba.o;ic products for old and new indus-
the world, principally ln the wcstem hemisphere. tries on u continually extending 11cale, the highly industrialised
D. F. Goodrich Company runs to the same fonn but, if countries are the major inYcstors in and concx.ssionaires for the
anything, hu wider plastics intereS-ts, since it is a producer of starting materials that arc obtained primarily fr()Tn Jargc:ly suh-
vinyl resins under the trade mark Gcon, and nmong a long list iadustrio.liscd 50\li'OC'$, Among these we include Australia and
of subsidiaries and other holdings oontrols British Geon, in the more advanced C:~n;u!a. which are. for aU practical purpoM:s,
collaboration wiclt the Distillen Company. a combine control- 6nancia.l colonies (l( American-domina.tod Western capital.
ling the whisky and gin trade o£ Great Britain, with over a Because of the txtremely high capital costs involved in dis-
hundred subsidiary companies engaged in biochemicals, in- oo,·ering :utd bringing to perfec:tion new products and theit"
du$trial alcohol, plastiC$, magnesium alloys for jet engines, :and usf!s and in enablithiog plants and factories for their manu-
many olher <~p<:n.tions. BTR Industries, which controls among f'llt.ture and processing, the production of these synthetic
other companies DritirJt Tyre & Rubber Company and the umerials has become the monopoly of a ffiW mammoth
[ntcmation21 Synthetic Rubber Company, is included in intcmt~tionrtl orgi\Jlisatioru like: Imperial Chemie2l Industries
Goodrich's affiliates. Rublx.r pl:mtlttjons worked by the Good- (T.C.I.), Du Pont de Nemou.rt~, Union Carbidf:, Coun auld.s,
rich Company a.re to be found iu L iberia as vrelJ a.s in Latin Snia Viscosa, Montealini, A.K.U., Unil.e,•cr , the tripanite
America and :\talaya. This company is tied up with A.K.U. group of the former J. G. Farbco-Ba)"er.lioechst and B.A.S.F .
• (Algc:mene ]{unstzijde Un~) of llolland. in a company that - Dow Chemical, Texa.s Gulf Sulphur, Lon.z.a and Stichime.
manufacture$ S)'ntltettc rubber for special pu1p0scs, and oon- The important j apancse offspring of tlte Mitsui complex, Toyo
trols the important French rubber manu£atturen, Kleber- Ra)'On Company, is linked to the major Ame rican and European
Odombes. Like Firestone and United States Rubber, it also gjants, DuPont, I.C.I. and Montecatini by patent a.rraagements,
hu companic:~ in japan. Ou Pont h aving taken a d irect intete!-t in the company during
These and the other main international rubber comp:miu, the American occupation of japan immediately after the war. ,
such as tbc Italian Pirclli. the Ccnnan companies., ContinentaJ These giants join forces at certain focal poinu in tho struggle
and Phoenix. the french Michelin and Kleger-Colombes, and for domination • .J\11 the time they carry on a ferocious eompeti-
230 2:!1
 NlO-COLO~IALII~ NEW IXDV&TRIU

tion to ~cure: monopoly marltets and o riginal source material Steel Company, a subsidiary of Rhodesian Anglo American
supplies, not only for synthctia production but for the metal- Ltd., which is oontrolled by Anglo American of South Africa.
lurgical, electronics and nucl.car industries that have become Stewar1s & Uoyd.s haYe come up against American monopoly
part and parcel of thcir post-wv expruuion. It is not surprising competition in South Africe, where their su.b.si<liary hod been
therefore tb&t even a CW'SOry glance at lheir int.er«H should negotiating for some months with United Statts and so-c:alled
reveal involvement in AfriCIU\ raw materiah' exploitation, even Brazilian group.~~ for establishing a plant beside its existing one
though their financial shuffling• may appear superficially to be :u Vereeniging, near j ohan.nesburg. The Americans and their
very far away from such engagements. B=i.lian vassab were trying to jump the gun by enforcing a
·when Counauld's merger with J.C.r. was mooted in 1961 it clause which would reduce the S~s & Uoyd.s participation
had •world-wide repercussions•, which is not surprising when from 51 per cent to 25_pe.r ctnt in the C:\'ent that the steel
its own rarni.fic:Ltions are reviewed and I.C.I.'s weight in the industry in the United Kingdom becomes n2tionali5ed or, in
industrial and commercial markets of the world is reoognisod. lhe opinion of t11e two outside part.n.l.."n, is likely to be
Representing over 30 per a:nt of the Bridsh chc:mica1 industry, nationalised.
I.C.L does 88 per cent of its turnover overseas in some fifty I.C.T. i.ll assisting the South African Government in building
countries. Its issued capital is ~eve:ral time~ larger than the up its chemical and ann:o1meots i.ndltlt.ries through I.C.f.
budget of most African States, standing at the end of 1962 at (South Africa) Ltd. and African Explo•ives & Chemical Indus-
,CS03,393,910, larger even than that of South Africa, the oonti- tries, in which it partners De Beers. African Explosives will be
ncnt's most i.odwtrialised countl)·. From chemicals, dycstufl'1, supplying: from its constructing complex at Sasolhurg many of
p<'inls., ph:aml:w::euticab, fibres. plastics, heavy organic chemi- the materials for providing polymers to the nylon spinning
cals, explm.ives and fertili.sen this vast organisation created a plant which is bci.ng erected by British Nylon Spinners at a cost
new holding company in l962, Imperial MeW Industries Ltd., of f) million on the site purchased by it in J963 at Belville,
in order, so runs the company's literature, to achieve a gruter near Cape Town. The Rhodctian subsidiary of African
concentration of effort on a side of the company's business Explosives is behind the proposed f.2 million fertiliser plant to
v.•1Ucb is matcrial.ly different from its main chemical manu· be bu.ilt at Livingltone. ZcLmbia, with the bac:king of the
facturing acti\'ities: namely, its non-ferrous metal interests go'·cmmcnt, in connection with which the company is con-
other than alwninium. In the latter field I.C.I. is linked on a n.ructin~ another plant at Oorowa, Rhodesia, for the exploita-
fifty-fifty basis in Imperial Aluminium with Alcoo (Aluminium tion of phosphat·e depoliu.
Company of America), the empire of the McUon intcresu. Consumption of fuel and power and common minerals has
Imperial ~1eW Industries has an interest in Extcnclcd Surface jwnped phenomenally since the war and the \~Stem capitalist
Tube Company- So has SteW>IU & Lloyds, a [,60 mHiion counuits as well as Japan havt' resorted to non-industrialised
• company working basic :md foundry pig iron up to tube-s of all cownries for quickly growing quantitiC"t. Before t.be war the
varieties. Through subsidiaries, asiJQCiated companies and industriali.st:d countries relied largely upon their own reserve.<~
agents throughout the world. Stewarts & Lloyds has a stake in o( iron om or on those of ot.hcr Weitern sources. Today the
all the intem-a.tional marlteu. Among tl•ese are a 70 per ceAt giant iron and steel corporations of Europe, Arnerica and japan,
interest in Stewarts & UoJds of South Africa lAd., which in addition to t.heir investmenu in Canada and Au.,tralia. are
controls six oompanies operating in South-West Mric::a, Rho- turning more and more for their base materials to Africa, where ,
desia and South Africa itself; and a 13 per oent holding in the cheap labour, tax concessions and supporting go1'Crrunent
major steel converSion project in Zambia, the Rhodesian Iron & policies have opened up avenues of richer profits from huge,
232 233
 HIO~COLONIALUW NI!W I KDI,IIT.JI!.$

W'ltapptd rt:W'Iourcct. M . 0. llan&hart. vicc-prtaidcnt of New· lt'liniere. In Katanp it upc:ratet over 3-4,000 tqu.-:u"e kii(.)II'J)ttres
moot Minioc, alnding AmcricaJ> holcling compony "ith ~<m•· of concu!ion.s, o.n which it woW ~ copper mines) one
permanent inY<Sunan• ill mining and crude oil. haJ oaid dw aJPP(r a.nd %inc mine, fi~ wppt'f and cobsh minet, 2A iron
Amcnan £mu oouJd make o grater profit in Mrica than from mille and alimcst- quorr). All of that oro lillltcd bf rood and
any compuoble anvcatm<nt in tbt United States. Mr B:mpn nilnyo owned bf the ...,.,.,y. Fint Jtag< cuncmtratca or
lhould k.oow intinwdy 1<1w be: is bllkin& Jlbout, 11iDce New· copper, cobalt ..,d zinc arc milled at •ix plonr.. Tbc: company
moat MlNnC iJ joined in COilJCl<lia opentinc the ~ o...,, four elodricity cmcnting pbnl• .. hich worlr the foundry
"'!'lonauvc WldcnUulr in northern and ooutbtm Africo, ruch at Lubumbashi and the dean>ly•is planu It }odotWie-SIUruru
u the O'Olup Copper Co., tbt Tsumeb Corpontion, Ptlobora and Kolweoi-Luilu for the rdiniJI« of ...,lJld and cobalt, of
M.ining, Soc. N.A. du Plomb and Soc. del Mmca de Zcllldjo. wbicb ir produced 295,2Sb tons ond 9.683 tons re1pecuvdy in
It bas a 12·1 per cent panicip:ttion in Cyprus M..ines, which 1962. The bulk of the copper and cobalt, hO'A-n·er, gn in
givea it 1 1'tlu..d interest in maintaining Cyprus fur the NATO coru.:mtrate fo rm to the dectrol)1tc: rC'finery of iu auociale,
CIUJe. The fact that United States miners e-•m an g\·~n~~e or Ste Gioeralc MN.IIurgiquc de Hoboltcn, Oruuela, which "'"'
$2.70 1n hour ap~nst the Ius than 10 ceou averaH;e paud to lrtm1s the radium residues and uranium mcLRb from Katanga,
Mrk:an nl.iners in South Airk:a makes it obvioull how Alach as well as refining the s;rtrmanium also comin& from the Union
aul'cr·profit• 11rc achieved. No wonder Newmont'• original MiniCrc pa•oduc.1.ion. The zinc iJ •~m forward from Katanga in
inv~tmt'nt In T11'11ntb muhiplit:d twenty tlmes in value in the the (orm of raw c;oncentratt.
span·~ of thrtt yntri. The Karanga output u shi.ppcd throu,sth t.he Congo by the
'fhe Afrit,.n countries art. faced with the need to turn tub-o Cie des Chemin~ de Fer Katangt.-Dilolo-Leopoldvil1e, and
•iatenc~t «<nomiu into organisms th:tt will gcnua.te viable and 0\'Cnnt by the Cie Muitir»C! Cungolaite. rnsu.mnoe it cown:d
improvrcl conditions of living for their populatioo.s. However, by the Cic Congolaise d'A~uranccs. the Cie Beige d'Auurances
many A!rieu pnmments, Uutead of gcttin& together an .Maritimes or See Auxiliaire de la Royale Union Coloniale
umtcd action wtud\ would stimulate maximum capital~CCUJ:Du­ Beige. Banking is dooe throush the Stc Beige cit B.anquc, the
labOn and the: conJtructioo of a solid ovcr....U A&lcan economy, llanquc du Coogo IJdcc, the O.lgilu•·Amcrian Banting
arcvanu"' ......,...on, for tl:e working of mincnl, ajUicuhvnl CO<pOrotion. SW£ is lbo'D in and out b) Sabmo. t:nioo
ond formry ...ourccs whose purpose is tbt drawing olf of a~ haJ holdings ill o11 of them. and many othm u ....u
output to 1uttain and a>Wze me indwtrieo and economlca of ft U. the habit ol these JTC81 monopolia and --~ must
the impubbst countries. Not ooe of the io'-mi.ng •yodicatct r=ctnber that Uruon ~- il tbt -ld'• third pmdonr of
bu any lnwntion. of founding in an.y one of that CIOWitrie, an ""PJ'C< ond iu first of tobolt to fut pncca to ouit their idcu of
intcgrtted indwtrW eocnpkx dw would gj\·e Impetus 1u ptafit, subject to C<rtam swms• on the world mark<u, ,.-hich
• genuine economic s:rovfth. Kor arc the n::t.wns on the apon of frequently they operote and rig. Produetion ot Ia• than full
primory products from mining. ogricul"'"' aoo forestry likely copo<.ity and the hold.ing back of ouppti01 ore tll<:tic1 that ore
tO provide to any important extent the looked-for capita1 for often used. Most copper producers hne. for the past throe
investing in industrial foundation. years, l)dr:n operating It no more than~ per ctnt capAcity, but
Rt:tul"IU lO wu.rce countries on exports or primary productt are now returning gnulually to fuller output. following tbe
arc niggardly hy comparison with the profits made by the atrike at Mufulira during 1963, Rbodcsiln Scleccion Trun n1n ,
l'alOilnpoly canccuinnaires, who are both sellers and procxuon. its plant at full capacity in order to rcpltnis.h iu Jt6cka, but
A fa.ir eumple to take in this connection micht be Unton restricted its sales to 85 pt'.r «nt. Ac che end or l963 there wu
m 235
l'fiO•COL.OtfiAtfiW KIW INDI;U"1.185
llti.mattd. to bt- IOII'M 300.000 tons a year of Kl1• mine c:tptdty edequate industry to build lhipt and airplanea, must pey tolb
thi'O\,If;bout the "'·ortd as a rHult of the YOI.ucwy ree:uiction of ~o the imperialist tra.nsporuuloo moaopolia for the pxb they
OU'JI"t. Stoeb occumulaud out!ide the Uniled S~&tco, ln on~« unport and export. Coontrio without ad<q\121e fuw><:itl
to 1upport pri<a, were pur c 130,000 to UO,OOO toos.. Tbe reaoureea mwt pay foes tO the c:a>tnl of linanoe cspital for the
prioc '-! b«n subilioed ot around f:lM a 10n for 1962163. .,.. or bonking &cilltiea and fot insww>ce' (p. 62~
Dmw>d r.. ooppe< huins risen, r.10Cb ...... cxhoutted by Amou.ou to•wi"'"l bc::hiod iD the produc:in& <"OUntries in the
mid·Jaouuy 196+ and the pric< rose oo the Loodoo ~~ fonn or - ... sadly ff'I!Ctional. 0. er so .,.. '"'" of the
Eadlaq<. llhod<slan produceD, - ..... It~ ~ their Conj:o'a Attionallneomc went rqululy to Europeon r<sideou
price to [;l30, and from the .....,..,U made by Umon \ttnib-e'a and forrign fimu. The rat remoined tO be di•tn'l>•ud oYer the
dtairrnll\ ic would appear tlw. the E.xc:hange -..-.. forord into ''lrious sea:ors of the economy. lt i• not JUtpri.~mg that the
lin~, even thouafl the produc:en wert ~lJC.':i.ng tJ1eir output terriwcy's 14 million inhabitllltalive ln the ertremett po"""Y.
cutbode to 10 pc cet~L Deopite the ttrike, and reduced outp<Jt, In Gabon one--third of the income pes to tllt: non·African
turncrt'er and net profits of Rhodesian Sdtction TNJt were population. 'l'wo·fitth• of Liberia's total incnmt' accrues to
higher in 1965 than ln 1962 and eonoidenbly above those or fotdgn firms (U.N. Report E/CN.I4/2t6, 7 Januaty 1964).
1960, when prices were higher. Tumo\'er in 1960 WlS And when independent Mriam coun1rie• attempt to etta.bl.jsh
,£31,019,000: itt 1962, £46,298,000; and in 1963, .£~.931,000. a certain l't\.'1.ification by leveUin.g taxe-1 on company profits,
l'rofitulitrtax were £7,600,000 for 1960; £7,735,000 for 1962; d~)' draw resentment that iJ echoed ln dire wamingJ in the
and £13.273,000 for 1953. This was the result of the olfloodine imperialist pre;s that they will atifle for(:ign investment if they
of ttocka. continue sud!. ent.TOaehmtn.u upon expatriate righu.
We con11antly rood about the high prices thot.,.. tuned for 'Ashanti hit by Ch.ana tax,' shouttd 1 paraanph headline in
copper, tin, tine and so forth. What is little undentood it that. a LoodOA City journal dated 28Januuy 196+, and set fOI'tb
thut .,.. t.he prices for tM commodities on the lodustrial ficu<ea to show tbat Chana c-mment t&UDoD had tatt
nwttt i.n thftr processed forms. The meuJ.s leave the cou.ntriH Arlwlti Coldlidda 1962/63profiufrom .£1,111,162to£609,142.
of their origin ....Wy in their primary eonditioA or ores .,. S....U..I.,. the eempany was •till able to dccW. a tocaJ
eet\OMU11tea and - ln the finl . . . uonsfomwioo, dmcknd or 371 pc c=t, . fall ohvioud) from the j()per...,
whieh fcteh mtrdy token mums tO thete eowuri<s. The ud O"re< that had boeA kept up fot ....,..... prerious yean, bon
rccunu arc eftrlmoft paJuy when meuu.ml..UUC t.bc ~ ui11 a wbockiog rttum on .., oriJina1 c:aptul ol f:lYJ,OOO ..-bicll
tbat ue odd<d the - • the motcrial. are plaoed on hoenl bad b«n buih up tO iu preoent £3 milbon from t<><rrcs out of
the tnn..-portation c:ani.er at the point of aiti the c::atriu patt aAd c:urtoot proliu. Tb&t the oompany ,.,.., ahle tO pay the
ut.uall)', 11 --.e lm·e .tcm in the c:asc of Union Minib-e, bcifls di1ideod is proolof the rucely cwhiooed r<len'ts tbat have
mated diroctly or indiroc:dy with the IICtUJl rroducxr. The beco accumulated over a period o{ operations, in Addition to
many more surpluses that aa:rue in the c:ounc of transit from • hat bas boto drsii'O bodt into cspital.
producin& country to the foreign tra:nsfonnatioo cc:ntrca &nd Diamonds sre brinGing some c:xtl'l rcvmue to the West
throu£h the aubaequent stages of oom·enion fall to the oon· African countries out of new Jd.l.ioa arranrcmmu which. are
cuaionary combines and the shipping, trtn1p0rt, bankmc, taking some of tl~e profit that formerly went to CAST (Con·
inaurtncc, manufaccuring and selling organisations with which, solidated AJrican Sdcc:tion Truat) a.nd iu Oe Beers' principals..
i.n mort CIX.I, they Ire l.inkcd. ru Victor Pcrlo dramatieally Ghana has its own diamond market and 1 government market•
aumnuri&el in ~ lmperialirm, Weak countric1, without in& board which takes the c:ommlsllon which u•ed to go to
Zl6 u 257
l'tiO•COLOWIALtiN

middl<mm octing for De ll<cn. Ins;..,.. LeoDe CAST proliu

_.. hip, but • S<Oice fcc paid to the ~"'""""""' '-rei
'unckr pmtst' owl high« pmduaioo c:oou art them ..,._.
what. Nenrthtless, CAST was obi< 10 <1c:cbR a final c!iYid<l>4 18. The mechanisms
wt Jdt the toW cliYicknd for the year 196~163 uoc:lw>ged at
Ss. 6d. on a 51. share (70 per e<nt), of wbicl> there wet< of neo-colonialism
18,198,654 i.nucd and paid up out o( 20 million autbo~.
This iuued capitaL amounting to £4,M9,663 JOt. was acl~~ed
ill lest thA.O ""enty yean ouc of re.ervea made from an ongmal
capital of f:lYJ,rxiJ. Furthennoro, 11ock1 of di:unondJ held by
or
tile group at the end the woridng year had an es.timatcd value
of [.6 null100.
l'urther profits are foroed out of. Africa in the f~nn of~
inftned .... of finished goodJ. equrpmcnt and tcrVl<es me .. "'orckr to ltalt r.mp interiertnce in the affain of derelopinJ
foroed 10 buy from the monopoly....,... that eatnoct the prime oouotries n is D<aSUr) 10 S<Udy, UDd<rstand. .,..,... and
motcria!J. This iJ the big - in which Afriea is caught, on< ecti'-dy c:omblt ~ in wbuCTer gWc: il mq
thot crew tigbur from the - ol '"• r.... -lei war. It .... appeu. For the methoda ol ~ ore ll!bdc and
cttimated by Uniud Nuioos eap<t11 that the depeocl<ru varied. They opc:nte not only in the u:nnomic field, but alto
countries bad to ~y $2.S to $3 billio'' more for their imports of in the political, ~""'· id<ol<>sical and cultural ophcrn.
rna.nulwured goods in l9-l-7 than they ~-ould have bad to p:ay Factd with the militant people• cf the ex-colonial ttrritoriee
if price "'ios were the lUtme u in 1919. For the period from in Asia, Africa, d'IC Caribbta.n and Latin America, imperialism
19YJ to 1961, oa:ording to the: Food and Agricullural Org:miso- almply switches tactic:a. Withouc a qualm it diapc:naea with it1
tJon of the U.N., the index of retum• for primary materials fell flap. and even with certain of ita more hated expatriate: offic:iala.
from 97 to 91 (70 for cncoa, ooffoc Md tea), while that for Thia meane. ao it c.laiml, that it le 1giving' independence lO its
rrutnuiacturcd goods rose from 00 t.o 110. For neel, which ia an former aubjecu, to be followed by 'aid' Cot their developmeru.
indiJpcn!lable commodity on an increu.ing Kale for developing Under cover of wch ph.nea-, however; it deviaea innumen.ble
cowatriet, n . - , the •err rnuc:h higher figure of 154. In way• to accompliJb objocti,... fonn<rly a<hiew<d by nal<ed
tnnu of achange u benreen primary producing ClOU.Dtries and colonialism. lt is this awn total ol thc.e modem attanpu to
the apurtas ofiD&IW!oawtd pdJ, there lw been a dedine paprt.me co1onDl:ism while •• the ame time td:in& about
io ..., r- from LIS to 117, to tbe clilad,..., . of the forn1C<. 'frftdool', .. hid> bao come to be known u - -·
Tbe nlw: ol Chana's exports ill 1962 wu the AD>t as !hat for Focuuost amona the nco-oolonialiso is the Unital Statts.
exports ia 1961, but the '"lume had •ncrea..:d by about six per ,.hichJwloogeurciocd ito power in LatinAmerica. Fumbfutaly
cent. Thenlue of importt in 1962 '\\"al reducul by 16 perctnt at 6rat abe turned towards Europe:, and then with more cu..
but the: volume fell by only 14 per ccnt. rn tbe Coogo Republic tainty afttt world wv two when ITIOit countries of that c:o~
(Brauaville), wbil~ 1962 saw an incre:uc: of 71 per oent in tJnent were indebted eo her. Smce then, with methodical
C>tports over 1961, and imports declined by 15 per <:<:nt, the thoroughness and touchina attention to detail, the Pentagon ,
w .l ue of the expons hardly t.'Oveftd llalf the value of the imports tet about conaolidatinc ita uccndancy, C'\'idenc.e of which can
(E/CN. l4f239,1'an A. Oec.·tmher 196:l). be seen all around the world.
m
NI!O•COLONJALISM TH! MICUAMJSMS OP NltO·COLO~U.LlSM

Who really rules in such places as Great Britain, West By 1964 the intelligence network had grov.-n. into a
Germany. japan. Spaln. Portugal or Italy? If General de m.ILSsi ...·c hidden awaratus. &eeretly employing about 200.000
CauJlc is 'dcfcct.i.ng' !rom U.S. monopoly oontrol. wbat inter· pcreoos and spending billioll! of dol.l.an a year:•
prctation can be placed on his 'experiments' in dle Sahara
desert, his paratroopers in Gabon, or bi$ trips to Cambodia and Here, from the 'tery 'c itadel of neo<olooialism, is a descrip·
Latin America? tion of the apparatus which now direct& aH other Wutern
Lurking behind such questjons are the extended tentacles intelligence eet·up.s either by penuasjon or by force. Results
of the Wall Street octopus. And its suction cups and muscular were achieved in Algeria during the April 1961 plot of anti·
strength are provided by a phuomenon dubbed 'The Invisible de Gaulle generals.; as also in Guatemala, Ir:iq, Iran, Suez and
Government', arising from Wall Street's connection with the the famoua u ..2 spy imrusion of Soviet air space which wrecked
Pentagon and various intelligence services. I quote: the approaching Summit, then in West Germany and again in
East Germany in the riots of 1953, in Hungary's abortive crisis
'The Jnvis.ible Government . .. is a loose amorphous oC 1959, Poland's of September 1956, and in Korea, Burma.
groupiQJ; of individuals and agencies drawn from many parts Formosa, Laos, Cambodia and South Vietnam; they are
of the 'i&ible governmenL It is not limited to the Central evident in the trouble in Congo (Leopoldville) which beg-.m
Intelligence Agency, although the CIA it at its heart. Nor with Lumumba's murder, and continues till now; in events
i! it OOnfintd to the nine other agencies ""hich oompri!le in Cuba, Turkey, CypruJ, Gt<CC<, and in other places too
what is known as th~ intellipce community: the National numerous to catalogue completdy.
Security Council, the Defense ln1elligeoce Agency. the And with what aim have these innumerable incidents
Kational Security Agency, Anny lntd.ligenct, N:wy Tntelli~ oocurrodl 'l'he genenal objective hu been mentioned: to
geoee and Research, the Atomic Energy Commission and the achieve colonialism in fact while pr-eaching independence.
Federal Dureau of Investigation. On the economic £ron~ a strong factor favouring Western
'lbe Invisible Government includes aJao many othe.r units monopolies and acting againat the developing world is inter·
and agtncics, as weU u individuals, that appear outwardly nattonal aapital'e control of the world market, as well o.s of
to be a nonnal part of the oonventional government. It even the prices of commodities bought and sold there. From 1951
cnoompassc:~ bu.sinc:s& firms and institutions that are to 196l, without taking oil into <:Onaidttation, the general
aeeminlly private. level of prices for primary producu fell by 33·1 per oent. while
To an o:tent that ia onJy beginning to be perceived, thii pric:t::& of manufactured goods ro&e 3·5 per cent (within which,
shadow government is shaping the lives of !90,000,000 machinery and equipment priclt$ rose 91·3 per cent). In 1hat
Americans.. An informed citizen might come to su$pect that same decade this ca.u.sed a loss to the Asian, African and Latin
the foreign policy of the United Sta.tes oftt:n works publicly American countria. using 1931 prices as a basis., of 90mc
in one dittaion and secretly through the Invisible Govtm· SH,400 million. In the same period, "bile the volume of
ment in just the opposite dircctioo. exports from these countrica rose, their earnings in foreign
This Invisible Government is a rel~ti\·ely new inll.litution. c:xclulnge from sutb exports dec;reuc:d.
It came into being as a result of two related fac:oort~~: the ri.Je Another technique of neo-colonialism. is the use of high rates
of the United States after World War II to a position of pre· of intcrtot. Figures from the World Bani:. for 1962 obowcd that
e.tn.inent world powtr1 and the challenge to that power by • Tlu lmJUi/HI Gor.-I!I'Uitllt, Dn•tcl Wise tnd Thoomu :9. Roll, Random
Soviet Communism ... . Huu~e, New Yotk. 1964.
2-1() 2H
Sf.O•COLOft IAI. UM THI NICH.UU . .U Of lCIO•CO\..OHIALitN

acvtnt)'..ane As&an, African and Latin American countrica O>A'cd .,pern.ion of their ... or 100111. AI lor tl•c alleged d<Ydop·
I<Jt<ian dtbu o( oome S27,000 million, on wbidl they f'll;.t io mcnt. between 1960and mid-196S the lntematiooal Dc>'dop-
mtrtat and ttrric:t: ~ IOIX'lC SS,(Q} million. Since thm. roent AtaOCittion promilcd a total of ~ nullioo to
IIUCb 1Cft18'1 d<bu ..._.• lx:m estimat<d u ""'"' than J:SO,OOO applicants. out o( ...hid> only $70 mahon ...,. ac:tually
rrulhon Ul lhctc: arc:u. Ln 1961. the iaterat 111«:1 on ~ rcccind.
thru-q\llltcn of tho loons olf<r<d by tho mojo< impcnalut Ia _,. ....,.,., ,..an. u point<d out by M~ni~ in ~
po.,-u. t..tftOUnlcd to more- tbu in per CCDt. in ~e~me cute up r,_, I July l96S, ~her< t.u been a tubtW>tial toa'<liJO Ul
to ...... or eicht p<t cent. wbile the can.;, penodo or ....h comQPmirt ccd:&nicat and economic aid KtiYitict in cieYdoping
...... ha•• ...... bunkmomely ahoet. countries. During 1964 tbe •-llmOIIIlt or utiJW><• ofl<r<d
While capital worth $30,000 million w. a:ported to tOme - approllimatdy J:ll:t) million. This wu al.- • third or
fifty .... i.x d"elopi.ng c:oun.trica betv.ecn 19.)6 and 1962, lt il the toW communi'• aid given during the previous dcxade. The
cttimoatcd that inttTC'It and profit alone atractcd on thit tum Middle East rttciv<d about 40 p<r ant of the total, Am !6 p<r
from the debtor councrits amounted to more than £.,,000 ant, AirK:a 22 per cent and Latin Americ~a the rest.
million ThJa method of pmetr.ation by economic: aJd rt«ntly Im:rea:sed Chinc--K actlvity wat retpOnsible to tome alent
t~rt<.l in~o p10fnlnc.:ooe wb~1 a nwnber of c:ountric• bepn for t1~e larger amount of aid oft'c-rtd in 1~4, t.110~ ~na
reJecting •L Ceylon, t ndonc:sut and Cambodia ue 11.moug thO*: contnbuted only a quaner of the tocal a1d oomnutted; ~e
who turned it down. Such 'a.id' is e:stitnated on 1hc IIHlUIII Soviet Union provided a l\3lC, and the Eu.n Europam countnc-a
n•crage to have amounted to 52,600 million bc:tween 1951 and a quarter.
19SS: $4,007 million between 1956 and 1959, and 16,000 Althou8h aid from .....Wit< countri<~~ ..UI fait. &r ohort of
mdhon bct\\·ecn 1960 and 1962. But the average auma tlken that offered from the wttt. tt lt oflt~::n more impretai,·e, s.i.nce
Olft of the 11ded countries by such donors in a aample year, it i1 twift and flexible, and int.e mt rate. on communist lo.ns
1961, are eetimatcd to amount to $5.000 mllhon in profiu. are only about twO per cent compared .with five to six per Clf:Pt
s 1,000 malion in .......... and $5,800 milli<>n from non· c.h:argcd on loant from wc:stn-n O)Untnes.
oquivaknt o:chan~tr. or a total of $11,800 mimon. extrwettd Nor is the whole tutty ot•aid" contained iD fiiurce. for there
01:1inst $6,000 ~rullioo put iA. Thus, 'aid' tumo out to be are oonditlooa wbldl bod~!< it around: the oonduaion of~
llnOtheT ....... o( exploitation, • modern method or Clptul mc:roe and uvigation treaties; ~ll for ~-c
export u.adtt a more ClOUDC'tic cune. ~n; tho ri&ht to meddle •• mt<mal linan«t, ~''!&
Still aoolh<r oeo-<:olorualio< mp on tho tcXJOOdlic front hao eurnoncy and rom.n adw\ce. to low<r IBdc barricn '"
"""" to be known .. 'multihtmol m' throop intemat;-1 r._, aE tho donor <XIUJIUY'• pda and capital; "' pn><ea
orpru.bnns the! lnt~mational :\l.o oetary FuSKJ. the Inter· the inu:ra:&S of printe investmaua: cktaminatioo of bow the
national Oanlc for Rccon.t.ruc:tioo and J:>evdopme:nt (known • lunda""' to be uted; lorciJIC tbe roapitnt to aet up countt:rpart
tho 'World llank), the International Finance Corponuion and rw:w:ts; lC) wpply raw m.attrialt to the donor: and UK. of aucb
the lnttrnatlonal Dew-Jopment AMociation are aample.~ all. funde-a majority of it, in fact to bur. rod• From the doa~r
aigni:ficendy, having U.S. capital as. their major backing. 1"hcte nation. These conditiona apply to int llltly. commer~. agn-
aacncic• have tbc habit ol forcing would·bc borrower~ to wlture, abipping and i06urt.nce, apart from othm which are
~bmit to various offensive condition&, auch as tupplying political and milita.ry. , '
tnformaLion about tbcir ceooomiee, $Ubmit1ing rhcir policy So-called 'invisible tnde' fumithel the: We~rem mooopolitt
a.nd plant to rev~w by the World Bank and accepling aaaency with yet another meana or economic pe.n.c.tration. Ovu 90 per
242 243
NIO·COLONIALtSM THI MBCUANISMS Ol" NIO-COLONIAL18M

cent of world ocean shipping it controlled by the imperialist ol the rank and 6le with the CIA. To such an extent did ita
counttjes. They control shipping rates and. between 1951 and prestige suffer under these American bo&set that. in 1961,
1961, thev iocrCQcd them some five time$ in a tota.J rise. of the AFL-CIO brains felt it ne<:essary to establish a fresh
about GO~per oe:nt, the upward trend continuing. Thut., nee. outfit. They set up the AALC in New York right a.cro3t the
annual freight expenses incurred by Asia, Africa and Latin river from tlte United Nation.t.
America amount to no less than a.n mimatcd $1,600 tnillion. 'Al!l a steadfast champion of national independence, democ...
Tb.i:& is over and above,aJl other pro6tl and interest payments. racy and social justice', uobluohingly Sl>led the April I~
A.. for inaurance payments, in 1961 alone these amounted to DuUeti.n put out by this Centre, 'the AFL-CIO "illetrtngthen
an unfJVOurable balan~ in Asia, Africa and Latin Amc:ria of ita efforts to wilt the advancement of the economic conditions
&enne additional $370 million. of the Mrican peopl~. Toward thls end. steps have been
Having waded through aU this, however, we have begun to taken to expand assi&UulCe to the African free trade unions by
understand only the basic methods of nef>orolOillillism. T'he organising the African-Amerjcan Labour Centre. Such assist-
full extent or its invenli\'eness is far fmm exhausted. :anee will help African labour play a vital role in the c:cnnomic
In dle labour field, for example, impe:rialism operates and democratic upbuilding of their countries.'
through labour anns like the Social Democratic parties o£ The March iasuc of th.is BuJJe.tin, howeYcr, gave the game
Europe led by the Britioh Labour Part)', and through •ueh away: '(n mobilising capital resouroes for invcstmt.nt i.n
in!tl'Umcots 1$ the In1cmational ConfcdCflltton of Free Trade Workers Education. Vocational Training. Co-operatives,
Unions (ICFI'U), now apparently being •uperoeded by the Health Clinics and Housing, the Centre will work with both
New York Africa-American Labour Centre (AALC) under private and public institutions. It wiD al&O ~a:e 141xnt:r-
AFL-C!O chief George Meaoy and the well-known CIA man .,u,no.ttmtnt ~ah'on to txpand AmmGa11 capital inv~rtmtnl
in labour's top echelons, In·ing Brown. in the AjrUQ1t notions! The italiCB are mine. Could anything
In 194S, out of the euphoria of anti-faM:.itt vittory, the be plainer?
World Fede,.tion of Trade Unions ('VFI'U) had been formed, Following a pattern previously set by th~ ICFTU, it has
including all world labour except the U.S. Amfflcan Ft'd.era- alr~cly st~trltxl classes: one for drive:rs and mechanies in
tion of Labor (AFL). By 1949, howevtr, led by the Bri<i>b Nigeria, one in l.11iloring in Kenya. Labour acholarships: arc
Trade Union Congress (TUC), a numb« of pro-imptrialilrt being offered to Africar.s who want to study trade unionism
labour bodles iu the Wtst. broke away from (he WFTU over in-of aU places-Austria, osten$ib1y by the Austrian ur:Uon~.
the itt<~ue of anti-O)loniali:st liberation, and Kt up the ICFTU. EJ.eewhcrc, labour, organised into political parties of which the
For ten year'$ iL continued under Dritish TUC leadenhip. British Labour !'arty is a leading and typical example, has
Its record in Africa, Asia and Latin America c:ouJd gratify &hown a similar aptitude for encouraging 'Labour-managcmcnl
only the big international monopolies which were extracting co-operation to expand . . . capital m...·cstment in African
super-profit$ from those areas. nation&.'
ln 19;9, at Bro,.cls, the United Stat.. AFL-CIO union But as the $ttuggle &harpens, even theac mcuures of neo-
cctltrc fought for and won control of tbc ICFTU E;xecutive colonialism nre proving too mlld. So Africa, Asia and Latin
Boo.rd. From then on o flood of typewriters, mimeograph America have begun to experience a round of ooupa d'~tat
machines, cars, supplies, buildings, salaries and, so it is still or would-be coups, together with a series of political assassinp-
overred, outright bribts for Labour lesden in ''arioua parti tioM which have destroyed in their politiClll primet some of
of the developing world rapidly linked ICFTU in the minds the nt'wly emerging nations' bat leaden. To ensure suooess
2H 2<S
NIO •COI.ONIIol.IIM THI! MICJUNIIIMS C)p NI!.O·COLOHIALI.UJ

ln these endtavoun, the imperialiMs have flU!de widespread States is felt more and more through its foreign cornapondenUI
aod wily we of ideological and cultural weapons in the form :a.nd officea abroad, as well as through ita influence over inter·
of intrigues, manoeuV«s and alander campaigns.. national capitalist journalism. Under this guise, a Oood of
Some of these methods used by neo-eoloniLlliata to tlip put anti~ljberuion prop41ganda emanates from the capital cities of
our guard must no\V be examined. 1be firtl is retention by the West, directed against China, Vietnam, Indonesia, Algeria,
the departing oolonialis-ts of variou.a kinda of privileges which Gharut and aU countric& which hack out their own independent
infringe on our sovereighty: that of setting up military bases path to frffdom. Prejudice is rife. For example, wherever there
or stationing trOOps in fonner colonies and the supplying of i• armW struggle against the forces of reaction, the nationalists
'adviseR' of onto sort or a.ootber. Sometimes a number of are referred to as rebels, terrorists, or frequently 'communist
'righm' are demanded: land concessions, prospecting: righLII for terrori.sL11'l
minerals and/or oilj the 'right' co collect customs, to carry out l)erhaps one of the most insidious methods of the neo-
administration, to iS!Iue paper rnouey~ to be exempt from colonialists. t... ewn.gelism. Following the liberation movement
customs dutit:S anti/or taxes for ex-patriate enterpriset; and, there has been a veritable riptide of religious sects, the O\'c-r-
above all, the 1righf to provide 'a.id•. Also demanded and whclming majority of them American. Typi~L of these are
granted arc privileges in the culhual fidd; that 'V~te~ Jehovah'8 Witnesses who recently cre;atct.l trouble in ~rtain
lnformatioo services he exclusive; and that those from &OCiallst de\•eloping countries by busily teaching their citizens not to
countries be excluded. tialute the: new nat.ionaJ fi.ap. 'Religion' was too thin to smother
F.vCJ'I the cinema stories of fabulous HoUywood nee loaded. the outcry thot arose ag:aios.t this acti,·ity, and a temporary lull
One has only to listen to the chcen of an African audience foUowed. Dut the number of C'\<angcli.sts continues co grow.
as Hollywood's heroes slaughter red Indian! or Asiatics tO Yet even evangelism and the cinema a.re only two twigs on
understand the dfec.tjvenesa of thls weapon. For, in the a much bigger tree. Dating from the end of 1961, the U.S.
developing eontinentl, where the colonialist heritage bu left has actively deveklped a huge ideologieal plan for invading the
a vast majority still illiterate, even the $lll2llest child gees tht: so-c:~ lied Third World, utilising all its faciJitjes from press and
mesaage contained in the blood and thunder stories emanating radio to Peace Corps..
from California. And along with murdt'r tnd the Wild \Vnt During 1962 and 1963 a number of interruuionAl conferences
goes an inceaaant ba.rnge of ant~.o$0Cialist propaganda, iu wl~i~ to this end were hcld in several pla.cts1 such u Nicosia in
the trade union man, the: rc:vuluuonary,or the m...1.nof dark skims C."yprus, San jo!it jn C'os.ta Riett, and Lagos in Nigeria. Parti·
generally cast~ the vtlla.io~ while the policeman, the gum-shoe, cipante included the CIA, tl1e U.S. Tnfonnation Agew..·y
the Federal agent- in a word, t:he CIA-type apy-is evt.r the (USIA). the Pentagon, the International De,'dopment Agency,
hero. Here, truly, i!Jthe idc:ologica1 under·lx:Jlyof those political the Peace Corpa and others. ProgrammQ wc;.re drawn up
murders '"hich so often ru~e local people u their instruments. which included the systematic use of U.S. citi7..ens abroad in
While Hollywood lake• care of fiction, the enormous virtua1 intelligence activities and prop2ganda work. :\fc:thOOs
monopoly preu, together with the outflow of slick, clever, of recruiting political ogcnrs and of forcing 'alliances' with the
expensive magazines, attends to what it chooses to call 'news'. U.S.A. were worked out. Ac the centre of its programmes lay
Within separate countri~ one or two ne'n agencies control the demand for an •b<olw U.S. mooopoly in tbe field of
the news handoutA, so that a deadly uniformity is achieved, propaganda, aa well as for oouoteractiog any independent
regardltts of the number of eep:m~.te newspapers or maguinesj dforts by developing states in the rtttlm of information. '
while i.nternationall)·, the firwlcia.l preponderance of the Unittod The United Smtea &ought, and stiU seeks, with considemble
240 2+7
N!.O~COLOI"'IALIUI THJI )(!CKANfSWS Of' !U!.O•COLOIHAI..UM

countri¢t~.. $0 of which ~rein Afrtca alone. h h.u 250 ct:ntrtl is expected. to analyx the aituattoo. ln each OOw1Uy, •Nking
in foreign countries, each of which i!: utually associated with a recommeod4t:ion.s to its Embassy, thereby to iL"i Govcrnmml,
library. 1t cmploya about 200 cinemu and 8,000 projectors about changes chat can Lip the local balance in U.S. Cavour.
which draw upon its nearly 300 film libraries. Secondly, it organiaes networks of monitors for' ntdio broad-
' l'hia agency ia directed by a central body which operates in casts and telephone conversations, while recruiting informers
the name of the U.S. President, planning and co-ordinating its from gov~mmcnt offices. It also hires people co distribute U.S.
activities in el0$e touch with the Pent:tgon, CJA and other propag1nda. Thirdly, it coUects secret information \\ith special
Cold War agencies, including t'\'en armed foroee intelligenc:c reference to defence ~~nd eoonomy, as a means of eliminating
centres. its intcrnation:al military and economic competitors.. Fourthly
1n developing countries., the USlA actively tries to prevCJlt it buy• its way into local publications to inftuena: chek
exp:msion of nllt:ional media of jnformation so as itxU to policies., or which Latin America. fumi$he& numerous example&.
caprure the market-place of ide:tJ. Jt apen<h huge s.oms for 1t has been active ltl bribing pubUe figure&, for eample in
publication and distribution of about sixty newspapers and Ken)'a and 'l'unis.i.a. FinaUy, it finances, directs and often
magazines in Mrica, As.i.a and Latin America. . supplics wltb arms aJI a.nti-ncutralis[ forces in th~ de\-eloping
The Amr.rD.n governm~nt backs the USTA through d1rect countrie&, witnes.o; Tshombe in Congo (Lropoldvilk) and Pak
prenures on developing nations. To ensure its agency a Hung ji in South Korta. In a word, with virtually unlimited
oomplete monopoly in propaganda, for in.stanot., many agree- finanoea, there seems no bounds to its inventivenc:s..<> in suh-
ments for economic eo-operation offered by the U.S. include a vmion.
demand that Arncr icam be granted preferential rights to dis- One of the most recent developments in neo-colonialist
9Ctninatc: information . At the same time. in trying to close the strategy is the suggested es.tabli&h.mcnt of a Busineu:mc:n Corps
new nations to other sources of information, it employs other which will, like the Pta.ce Corps, :act i.n developing countries.
prcsaures. fo..or insranoe, after agreeing to set up USIA in- In an article on 'U.S. Intelligence tnd the Monopolies' in
formation ccntrt:s in their countries, both Togo :and Con&"' l•UT~wti<mol Affai" (Meo<ow, }nnuuy 1965), V. Chcrnyav>ky
{Leopoldville) originally hoptd to follow a non.:ilignrd path writes: 'There ea.n hardly be any doubt tho.t this Corps is 11
and permlt R\.LiiSian infonruuion centres u a balance. Rut new U.S. intelligcn« org:a.n~tion created on the initiative of
Washington threatened to stop all aid, thereby forcing lh~ the American monopolies to use Big Buaincl$ for espionage'.
two countries 10 renounce their plan. It L'l by no mean&unUIIual for U.S. Imemgence ro set up its
Unbiasscd studit:~:s of the USJA hy such authorities as own busin.ea.s firms which are merely thinly disguised espionage
Dr R. Huh of Pri.ncd.On Uni ..·er&ity, Retired Colonel Jt Van centres. For example, acx:ording to Chc:rnyavsky, che C.I .A.
de Veldt, (ormer intelligence agc:uts Murril Daye.r. Wilson ha& Kt up a finn in Taiwan known as Wanem .Enterpri.ses Inc.
Oizard and others, have til ea.Ued anention to the close tie$ Under this cover it tends spies and saboteurs to South China.
between this agency and U.S. Intelligence. For example, The New Asia Trading Company, a CIA firm in Ittdi.a, has
Deputy Director Donald M. Wilaon was a political intelligence aleo helped to camouflage U .S. intelligence agents operating in
agent in the U.S. Army. Assistant Director for Europe, Joseph South-.,..1 Asia.
Philips, ·was t auecearsful espionage agent in 1everal Eaitern Such is the CAtalogue of neo-coloniaJism'a activities and
European countries. methods in our time. Upon reading it, the faint-beaned migbt,
Some USIA duties further expo&e ita nature u a top come to feel that they must give up in despair before such an
inteUigcna: ann of the U.S. imperialists. In the firat place, it amy of apparent power and seemingly inexhaustible rtsouroes.
250 251
NEO·COLONfALISN: l'ft! MICHANIS~S OP NBO•COLONlALIIW

Fortunately, hOWC\•er, hia.tory fumithcs innumerable prooft annocl i0$urrtttions in Colombia. Venezuela and other
of one of its own major lawa; that the budding future is always countdes continue to con80lidate pinl.
$trongcr than the withering past. This has been amply demon- In Mrica. ~ i.n Ghana have: withstoOd all clforts by im-
strated during every major revolution throughout history. perialism and its ogenta; T&JUania hu nipped sub'i·enh·e plots
The American Revolution of 1776 st..nJ&&led through to in the bud, as have Brau.aville, Uganda and Kenya. The
victory over a tangle of inefficiency, mismamlbretnent, oor~ struggle rages bad< and fonh. The surging popular for...
ruption, outright subversion and oounter·revolution the like may &till be bampertd by colonialist legacies, but nonetheless
of whicb has been repeated to some degree in ev-ery subsequent they advance inexorably.
revolution to date. All these e:nmples prove beyond doubt that neo-colonialism
The Russian Revolution durin$ the period of lnterventjon, it $0/ a sign of imperialism's stre.nat)l but rather of its last
1917 to 1922, appeared to be dymg on its feet. The Chinese hideous rsp. It testifict to its inability to rule any longer by
Revolution at one time was forced to pull out of its eriuing okl methods. lodepende.nce is a luxury it c:an no longer afford
bases, lcx:l sud and barrel, and make the unprecedented Long to permit its tmbjcct peoplc::s, so that even what it cb.iw to have
March; yet it triumphed. lrnperlali.At white merc:cnariaJ who 'given' it now seeks to take away.
dropped so confidently out of the skies on Stanleyyille after a ·r1lis mean!'! that noo-coloniali:sm can and m'// be defeated.
plane trip from Ascen..ion Island thougltt that tltcir job would How can this be done?
be. 'duck soup'. Yet. till now, the nationalie.t forces of Congo Thus far, all the methods of nco-ooloniali&ts ba,·c pointed
(Leopoldville) eontinue to fight thcir way forward. They do in ooe direction. the ancient, accepted one of all minority
not talk of if they will win. but only of wlu.n. ruling ela.aaes throughout history-divide and ro/~.
Asia provides a further ex;ample of tlle strength of a Quite ob\'lously, therefore. un#y is the lint requi&.ite for
peopte•s will to determine their own future.. In South Vietnam destroying neo-colonialism. Primary and basic is the oeed for
'special wvfare' iJ being fought to hold back the tide of an all·union go,,.ernme.nt on the much divided continent of
revolutionary thange. 'Spec.ial warfare' is a concept of A!riCIL AJong with that, a strengthening of the Afro-Asian
Cenernll\lbxwell Taylor and a military ext:tn.tion of rbe cr~ Solidarity 0-~:gan.isation and the apirit of pandung is already
of John fouer Dulles: let Asians fight Asi~ms. Briefly, the under way. To it, we must seck the adherence on an i:ncre:&-
technique is for the foreign power to aupply the money, air- ing1y fonnal basis of our Latin American brothen.
cnft, miliury equipment of aJJ kinds, and the a;lrategi.c a.nd Furthermore, all these liberatory forcn: have, on all major
tactil:al command from a Cener.tl Staff down to officer i.ssua and at ~scry poA~hlc ill$t.1oc:c, the snppcJtt of the
'advisers\ while the troops of the pUJlJ>et government bear growing 80Clalisc. scetor of the world.
the brunt of the fighting. Yet in spite or bombing raids and Finally, we must encourage and utilise to the ruu th05C stiU
the immense bujJd-up of foreign strength in the area, the an too few yet growing instances of !upport for liberation and
people of botlt North and South Vietnam are pro,-ing to be anti·colonialie.m inside the imperialis-t world itsetr.
unconqUttable.. To carry out such a political programme, we mU3t all back
lo other parts of Asia, in Cambodia, Laos, Indonesia, and it with national pl.a.M dce.igned to strengthen our!clvcs as
now the Philippines, Thailand and Burma, the peoples of independent nations. An external condition for such indepenM
ex-colonial countries have stood firm and are winning battles dent development is neutrality or pol:it~al non-alignment, Thi&t
a.gainat the allegedly superior imperialist enemy. In L-atin hilS been exprcsatd in two eonfe.rencts of Non-Aligned Nations
America, despite 'final' punitive expoditioos1 the growing during the recent p1111t, the last of which, in Cairo in 1964,
252 u
!( BO•CC)t,(l!'iJ.&.LIIM

clearly and inevitably showed itself at one with the rising forces
of liberation and human dignity.
And the precondition& for all this, to which lip &ervi_ee is
often paid hut activity seldom directed, i.s to dev~l~p adeo.. Conclusion
logical clarity among tbe anti·imperialist, anti-cok>naalis.t, pro-
liberation masses of our oontinents. They, and they alone,
make, maintain or break. r evolutioos. .
With the utmost speed, neo-colonialism must be analysed m
clear and simple tenns for the fun mass undcntanding by. the
surging organisations of the African peoples.. The All·Afrtean
Trade Union Federation (AATUF) bas ahudy made a start
in this direction, while the Pan-African Youth Mo\·cment,
the- women, journalists-, farmers 11nd otheno~ are not far behind.
Bolstered with ideological clarity, these organisations, closely IN the lntnxlm.1 ion I aucmpted to !let out the dilemma now
linked with the ruling parties where liberatocy forces are in fiadng 1hc world. The conflict belYo'Cell rich and poor in the
power, will prove thnt nte-oolonialism is the ~ymptom of second half of the nineteenth century and the first Mlf of the
imperialism's weakness and that it ls dc:featable. For, when twentieth, which w.. fought out between the rich and the poor
all is oo.id and done, it il the so-called little man, the bent- ln the dt'\·eloped nations of th~ world ended in a compromi5e.
backed, e:t:ploited, malnourithed. blood-aroered fighter for Capitalism as a system disappeared from large areas of the
independence who decides. And he innriably dedde& for world. but where socitiism was establithed it was in iu leas
fr~dom . dc~loped rather than iu more dC\•elopcd parts and, in fact, the
m-olt against capitalis.m had it• greatest tuoceues in those areu
where early nco-<X>Ionialism had been most actively practised.
ln the industrially more developed countries, capitalism, far
from disappearing, bteame infinitely £tronger. This strength
was on1y achieved by the sacrifice of two :principles which bad
inspired c.arly capitalism, namely the subjugation of the work·
ing classes within each individual COWltry and the exclusion of
the State from any say in the control of capitalist enterprise.
By abandoning these two principles and substitwing for them
•welfare states' based on high working-class living standards
and on a State·regulated capitalism at home, the developed
coWltrics succeeded in oporting their internal problem and
transferring the conflict between rich and poor from the
national to the international :~tage.
Marx had argued that the development of capitalism would 1
produce a crisi' ¥..-ithin each individuaJ capitalist Statt because
within each State the gap between the "haves' and the "have nots'
m
I'IIO•COLO.. I ALll&l CO!ICLUI101f
ow--ould widtn to a point where a conflic:t wu i.nevltt.ble a.n.d We: gnat neo-coloo.ialitt i.otemattnnal ra.nanci•l oombinn, 'f'tty
it •'Oukl be the capiulisu who would be drfeete<l The bltd of simil.r to tbot wboeh Lord ~taeauby dacribod ., eWting
his .....,..,t is not in\..!idatod by lhe fact thou lhe coaJiia, ....,._..,. the dircaon or the East IDdil Company and thrir
which he hod pr«lictod u a natioml ooo, did not <V';'t""- ~'- Warno ~. who. ill the cightceath ccntu:ry,
hlke ploct: on 1 natiooal oeale but hu been tnon>f<nod
to lhe -'<1 .... World api..tism haa poPpooed its a-iJis but
'""* - - ' in lhe ..-holeoole plv.nckr ollndoa. Mocaulay """""
only a1 tl~ CUJI of tra.m:forming it into Ul inttma:tional cri.iiJ. "The Director~, it it true, DC¥Or eojoioecl or oppbudod at>y
TI_ , e cbnp is no'ft' not civil • .._ within individual Stata pro-- crime. Far from iL \Vboevtr c::xammcs their kttc:n written at
voltod by intolenbl<: conditions within tbose Slates, b"t UII<T- the time will fiDel there are muyjut IDd humane seorimtnu,
national"" pron>kod ultimately by lhe mixry of lhe majority many acdknt ptec<p<t, in &bon, on odmoroble code of
of ITIII>ldnd ,..ho doily crow poortt and ........... political othla. But - exultation io modified or nullifiod by
Whrn Africo becomes ecoDomi<:slly free ond poliricolly a demand for UlOney..•. \Ve by no mta.nl aocwe or suspect
unitod., the monopolists v."ill come faoe to face with their own those who framed lh<oc diopotehtt of hypoerioy. It io prob-
wotking class an their own countries, and a new tt:runtc will able that, written 15,000 miles from the place wbue their
ariJO within which the liqu.icktion and collaf)te or impcri.ulhm orders were to be carried into efrtet, they never perceived the
wm be complete. gi'OSI incon.sisttncy of which dkl')' were guilty. But the incon-
As thia book hos attempted to &how, in the wne way aa the siltency was at once nw1ifeat to tlleir lieutenant in Calcutu.
internal cri&iJ o£ capitalism within the dC~o•cloped world arose •.. Hastings saw that it wa" abwlutely necessary Cor him to
through the uncontrolled ACtion of national capital, to a tttttter diueprd either the monLI di,...·ouf'kt or the peruniary rtqui ...
crhit is Mina provoked today by similar unconuoUed action aitions of his employer.. fktna forced to disobey them in
or inttrnt.lional eapiulism in the developing puts o( the WO«'kl. something. he had to conaidct what kind of di!IObc:dienec
Be(Ofe the problem can be solved it mwt t.t kut be undtr.. they would most rcodily pordon; ond he enmcdy judged th.,
otood It cannot b. resolvod m..-.ly by p"'mdina tlw nco- the west cowse wwld be to ncaloct tho omnons .... to 6nd
cob\iali'"' dart not aist. It mwt be mdiJed that the m~lwh .... rupeoa.'
., r~· rmp&o,cd lO toh·~ the problem of world JI'O''cnt•tc
nol liktly to )ield any ruu.h Other than to entnd the en.... Tocby tht Geed both to maintain a ~f:lfarc Jllt.e, i.e.. a
St>eWAC in I!lSI, the lhen Praident of lhe t:oitod St>teo, J**!ite State at home, and to tu:ppon alnace and evtt~powing
Mr 'I'N~MA, Aid, "fhe only I:U>d ofwar we scok is the cood old burden of a.rn.nmt cosu makn it lbtoh.rtdy aseatial for
ficht. ~.pion man'sancicnt. enemies ••• pen at), d.iJcut, hWlJ(:t dt:n:lopcd eapiWUt ooWJlries to seaJ.re the m.uimum rerum in
and J.Ujterac:y.' Scotimcou o( a limi1ar oaturc: h&'f'c bocA profit from such JWU oltbe intmwlontl finlllldal complex ..
rc-cchood by Ill pol!ticll Jcodcn in lhe developed world but lhe they control. HOWCVCT much prin,. capitalism io txhonod to
ttark lace remains: v.hatcver y;a.rs may hl,·e bcc:n 'AOn 1i.occ brine about rapid devdopontnt ond • risin& stondud of living
19,., none of them i.J the war against poveny, diteesc, huncer in the less deveioped .areas of the world, those who manipulate
and illiten.cy. 1-10\'l·evcr little other types of war have bceD the system realise the inoonsiJtency ben\·~ doing this and
deliberately 110\lght, they are the only oneo which ba\·e be<D producing at the same time the fundJ necc.asary lO mWu.ain Lhe
wtfttd. Nothing is gained by assuming that thoee who cxpreu &.inews of war and the welfare nate at home. They know w~e:n
auch views a.re insincere. The position of the l~ad.cra of the it oomes to the issue they will be excused if they r•il to provtde
dcvtloped ca.pitalin countries of the world are, in rel1tion to the for a world-wide rise in the lt'a.odard or Jjvi.na:. They know they
2~ 2,
,"110-COLONIALISM' CONeLUSJON

will never be forgiven if they bctmy tl1c rystcm and produce a In the earlier chapters or thi$ book I have set out the argu-
crisis at home which either deruoys the affluent State or inter· ment for African unity and have explained how this unity
feres with its military preparedness. w(luJd dC$11'0)' noo-colonlalism in Africa. ln later chapters J
Appeals to capitalism to work out a cure (or the division o( have explained how strong is the world position of those who
the world into rich and poor an: likt:ly to have no better result pro6t from neo-colonialism. NC'\•c:rtheless. African unity i'
than the •ppeol• of the Directors of the East India ComJl'llly to somec.hiog which is within the grasp of tbe Mrican people.
Warren Hastings to ensUJ"e social justice in India. Faced with a The foreign firms who exploit our resour«s long ago saw the
choice, capitaliJm, like Hastings. will oome down on the sjde suength to be gained from acting on 11 Pan-African scale. By
of exploit~tion . means of interlocking directorships, cross.shareholdingt and
Is the~ then no method of avoiding the inevitable world other deviOK, groups of apparently different tompanits ha\-·e
conflict OCC"dllioned by an international clau war? To accept formed, in fact, one monnous capitalist mooopoly. The only
that v.-orld conflict is inevitable is to reject any belief io dfet.1ive way to challenge this econonlic empire and to recover
co-existence: or in the policy of non-alignment as prnl."tised at ~on ?( our heritage, .is for us also to aet. on :a Pan-
present by many of the oounLrit:5 attempting to escape from Afnum bas•s, through a UnJon Government.
neo--colonialism. A way out is pouible. No one would $t.Jggest that if all the peoples of Africa com-
To start with, for the fint time in human history the potential bined to e8bbli:sh their unity their decision could be revoked
material resources of the world arc so great that there is no need by the forces of neo-colonialism. On the contrary. faced with a
for there to be rich and poor. It is o nty the organisation to new s.ltuatioo, those who practise neo-<olonialism would adjust
deploy these potential resources that is lacking. EHective world themsel\·es to this new balance of world forces in exactly the
pressure can force such a redeployment, but world pressure is same way as the capitalist world has in the past adju.tted itself
not exercised by o.pptal.s, however cloquent. or by argumenu, to any other change in the balnnce of power.
however convincing. It is only achieved by deeds. lt is necxs- 'I'h e danger ·to world peace sprinp not from the action of
sary to secure a 'Y.'Orld rtalignmcnt so that those who arc at the those who seck to end neo-colonialism but from the inaction of
moment the helpless victims of a syttem ..,.;u be able in the thc»e who allow it to continue. To argue that 3 third world war
future to exert a counter pressure. Such counter pressures do is not inevitable is one ~bing, tO suppose that it can be avoided
not lead to " 'ltr. On the contrary, it ia often their absence whlcb by ahutting our eyes to the development of a situation likeJy to
connitucu the threat to peace. product" it is quite another matter.
A parallel an be drawn with the methods by which direct If \Yorld war is not to oo.::ur it mv.st be prevented by p<»itive
colonialism was ended. No imperial power has ever granted action. T1Us posilive aafon is withill the t>Owc:r of the peoples
independence to a colony WJless the forttS w·ere such that oo of those areas of the world wbkb oow suffer under neo·
other c:ounc: was pos.sible, and there are many instataces where oolonialism but it is only within their power if t.hey act at once,
independence was only achieved by a war of liberation., but with resolution and in unity.
there are many other instances when no such war oceum::d.
The very organisation of tbe forces of indeptndence within the
colooy 'W8S sufficient to convince: the impe1'ial po'-'-er that
resistance to indcpcndente would be impossible or that the
political and economic consequences of a colonial war out-
weighed any advantage to be gained by retaining the colony.
258 259
 818l100aAPIIY

Jeaoncncy Report, La Politipe fk Coopbalion m.~<. Its Pays

tn Voie de /UwlopJN.nt~nt, 1964
I oyc, Pierre, and Lewin, Rosine, Us Trusts au Ctmgo, SocittC
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Lenin, Impmoli"": th< Hithelt StOf< of Capit•lism, 1916
:\1acaulay, Thomas Babington, Wo"t'n Hastings, Edinburgh
Review, October, 184-J
:\'lachyo, B. Chango, Aid and Nto-£ofom'alism, Africania Study
Group, 1964
~hrx, Capital, 1807
Nkrumah, Kwame, Africa J11tut Ut~ile, Heinemann, London,
1963
Aaron01o-itch, Sam, Munopoly: a 1huly uf British M(}tf(lpt>ly Park, L. C. and F. W., Tire Anattmry of Big Burinut, Toronto
C<lpitalimt, Lawrence & WO.bart, London, 19!'>5 Progms Books, 1962
Africao-A.roeric-.tn Labour Cetlltc: (AALC), Bulleh'nt, March Perlo, Victor, An~trican lmp"ialism, lnternation:i.J Publishen.
and April, 196!'> New Yod<, 19!'>1
Cbem)'avtky, V., Uno'ted States IntelliftN<t and th< Monopolies, Perla, Vietor, Tl1e Empire of High Fiiunu:~. Tmt:nmtional
International Aff.ain., Moscow, January, 1965 Pub1jshe.rs, New York, 1957
Clawewitz, Vom Kriq, 18'.12 Report of the Uni~d Ntt.ions Ecooomic Commission for
Cole, Monica Mary, S ..th Afriea, Methuen, London, 1961 Africa, Pori 3: lntlu$h'ial Gromth in AfrUo, New Vorlt,
Co6ton. Henry, L' Europt del Ba.tUplier1, Collection "Documtnts 1963
et TbnoU>aget', La Librairie f'r""'"i>e, 1963 Reporta of the Economic Commission for Africa Industrial
Courtcney, Frederic Charles, Economic A;d to Under-dew/oped Co-ordination Missions to different regions of Africa
Coomii'Ut, Oxford University P..-, London, 1961 Sddet, George. Ont Tltousand Anu•riciUU, Boni & Cacr, New
Dep<tttment of Etooomice, Tit• Economics of Afric(ll& Unity, York, 1947
Univcraity of Ghana, 1964 Statistical Abetnet of the United States, 1962
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U1fit~.d States lnfoniUltio, Snvict, Public: Affairs P"M• Committee for Trade, Bockgrowul Paper an tlr< EstldJ-
1961 Jishmnrt (Jf em AfriCan Comllf(m Marktt, 13 October
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colow.ialist Rioaln'tt, International AtTain, Moscow, April, United ~atiuca Report, EJCN 14/2'39, Part A, December,
196!'> 1963
Hilfc:rding, Rudolf, M~ Studkn, VoiurM 3: Dm Finame- United Nations Report1 EfCN 14j246, 7 January 1964
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Holt, Robert T., and Van de Velde, Robert, W., StraJtric Comt:imeo of Ma11kind, Gollancz, London, 19!'>3 ,
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260 261
BIBLlUC.APIIT
Reference is made to the following company reports:
Anglo A,rui(tnl C()Tp«ation. AGM, 1962
Anglo-Trmuooa/ Consolidaltd ln'f..!estmnr~ Company, Annual Index
Add,...., 6 D<cember 1963 . .
Conso/iJo/.ed Africa" Gold Fitlds of SouJh A/ri« CorpOI'atwn,
AGM, 30 June 1961
G"'"l"btrg, Annual RepOrt, 18 May 1962
Hanmmy Gold Minint Co. Ltd., AGM, June, 1961
Rand &ltctio~t COf'paratU:nt Ltd., 71st AGM, 26 Febmary
1963
M. Samuel f!! Co., AGM, 1963
Sociill Gelllrah, Repart for 1962

Reference pas&im to the following newspapers and periodict1s:

1'ht Et:onomilf, Europt (FrOJttJ!) Ou!ttNU.r (No~cmber 1961),
Nowtl Obseroattur, The Finanaal TJmtl, 1ortwtt, lnttr-
nati<Jnal Affairs, T.t Mondt, Modn'1l GDfl'""""" (March/
April, 1962), Nm Commi'Jmt.'(a/th, 1'ht S1mday Timts,
Wall Strttt. Jmtrnal, Wut Afriea

262
IN DIIX
267
268
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213
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~llnJ *Mineral ln11,.., 110
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218 219,
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