Foreign Relations of the United States, 1958–1960, Africa, Volume XIV

295. Memorandum of Conversation⁰

July 24, 1958.

SUBJECT

• Prime Minister Nkrumah’s Talk (Second) with the President

PARTICIPANTS

• The President
• Dr. Kwame Nkrumah, Prime Minister of Ghana
• The Under Secretary
• His Excellency D. A. Chapman, Ambassador of Ghana
• Mr. Joseph Palmer 2nd, Deputy Asst. Secretary for AF

After an exchange of greetings, the President welcomed the Prime Minister and asked him to open the conversation. Dr. Nkrumah said that ever since Ghana gained its sovereignty, it has sought to consolidate its independence and to create the necessary conditions of economic stability. He stressed the importance of a rising standard of living for the Ghanaian people and said that Ghana’s vulnerability is its one crop economy; some way must be found to diversify. The Prime Minister mentioned coffee, timber and animal husbandry as possible fields for further development. Ghana also hoped to bring about industrialization of the country, although it would probably continue to be primarily an agricultural nation. All of these economic objectives require power, the possibilities of which have been investigated in connection with the Volta River scheme.¹ The Prime Minister said that two possible dams were involved, one at Ajena, which would cost 65 million pounds, and produce one million kw; the other is at Abouya and would produce 60,000 kw at a cost of 20 million pounds.

The Prime Minister continued by speaking of the huge deposits of bauxite in Ghana, which, it has been estimated, would require two hundred years to exhaust. The President said that he had been talking to Mr. Black of the IBRD about this matter and that he had indicated that the difficulty is that bauxite is presently so cheap as to make new sources not particularly attractive. The Prime Minister indicated assent, stating that this is the reason why Ghana does not wish to rely on bauxite alone. The President said that he had previously had the impression that the entire Volta River scheme would cost considerably more than the “65 million which the Prime Minister had mentioned. The Prime Minister replied that it is true that the entire scheme is much more extensive than those components he had mentioned and include facilities at the bauxite deposits, the smelter, and harbor and railway facilities. Some of these were going along at the present time in any event, particularly the new port at Tema. He said that he was presently emphasizing the power aspect of the project.

The President said that the United States always tries to be helpful with respect to projects of this kind. We believe that the best basis for undertaking such development is private capital. If it is possible to get private aluminum companies interested in this project, then the remaining financing could be explored with the International Bank, the Export-Import Bank, the Development Loan Fund and other similar sources. The President said we would be delighted to continue our exploration of these possibilities. He said that we entirely supported Ghana’s objectives of an expanding economy and a rising standard of living. He went on to warn, however, that such developments take place slowly and, by way of illustration, mentioned the experience of the Philippines, where we had tried for thirty years to create a viable economic and social base. The Independence Law² provided for a further ten years temporary status in which further efforts were made to assure that a strong economic basis would exist for Philippine independence. Even with these preparations it was necessary to make certain extraordinary arrangements whereby the Philippines had preferred access to the American market for such produce as hemp, sugar and cocoa after independence. The President mentioned these matters to indicate that the construction of a strong viable economy is a long process. Moreover it can be successful only if everyone cooperates.

In reply to a question by the President, the Prime Minister said that Ghana is placing great emphasis at the present time on education. It is spending more per capita in this field than any other African state and, in fact, the rate of spending compares favorably with many European countries. In response to a further question, the Prime Minister said that Ghana’s ordinary budget is “48 million for the current fiscal year. In addition to this, “22 million has been allocated from Ghana’s own resources for economic development. The Prime Minister went on to say that Ghana has a second five-year development plan which will involve the allocation of “1 million, primarily to agricultural and industrial expansion.

The President said that he understood that Secretary Benson³ had indicated at luncheon the previous day that he would be glad to go out and take a look at Ghana. The President said that he thought the Secretary could be very helpful in these matters. The Prime Minister said that he would look into the possibilities of extending Mr. Benson an invitation after his return to Accra.

Reverting to the Volta River scheme, the President reiterated that the State Department would continue to explore the possibilities of bringing this project to fruition. He wished to assure the Prime Minister that we would not forget his interest in this matter. The Prime Minister expressed his appreciation. He added that his government would be most grateful for any assistance which could be given in exploring the problem with private aluminum interests. Even if such companies were not interested, however, the Prime Minister hoped it would prove possible to press on with the power aspect of the scheme, which would be beneficial to Ghana’s other development requirements and, at the same time, might attract the aluminum interests once a cheap source of power were created. The President asked what other uses Ghana intended to make of the power and the Prime Minister mentioned small industries and agricultural uses. The President observed that the Ghana program sounded something like the Rural Electrification Administration, which he described to the Prime Minister. He then asked whether it was possible to start with the small dam at Abouya which the Prime Minister had mentioned. The latter replied that this was feasible and that it would have beneficial results. Unfortunately, however, the site of this dam is not sufficiently near the bauxite deposits.

The President mentioned the importance of a coordinated plan for diversifying Ghana’s economy and asked whether any kind of Coordinating Commission existed. The Prime Minister confirmed that a Development Commission has been in being for some time and is concerned with the necessary planning.

The President said that he found Ghana’s economic plans to constitute an exciting story. He thought that the world could somehow or other assist Ghana in its realization.

The Prime Minister said that he was also anxious to explore with the United States Government possible means by which it could help with the industrial development of Ghana, as we had done in the case of the Philippines. The President expressed the hope that in the further conversation which the Prime Minister and his party would be having with the State Department, it would be possible for him to acquaint us with enough of Ghana’s plans to permit us to speak somewhat more specifically. The President said that he was sure that competent agricultural scientists could advise Ghana on how it should diversify its agriculture in order to obtain the maximum dietary benefits and, at the same time, produce cash crops for export which would reduce the present heavy dependence on cocoa. He asked about the work ICA was doing in Ghana at the present time.⁴ The Prime Minister confirmed that the USOM is doing a great deal of helpful work. The President said that he thought this is a situation where technicians can be of enormous benefit. The thing to do is to start moderately, utilizing the best brains available in working out a coordinated program. Considerable planning would be required. Once this had been accomplished, he thought that it would be desirable to mobilize the widest possible assistance in implementing the program. It was particularly important to enlist the support of the people of Ghana in order that the benefits should come about with the participation of their hard work, rather than as the result of something granted to them from outside. The Prime Minister signified his assent and said that he would be happy to pursue these matters further in his discussions with the Department of State.

The Prime Minister also mentioned the improvement of communications as an area in which his government was most active. He cited the recent establishment of Ghana National Airlines and the Black Star Shipping Lines, which had been formed with Israeli participation, as examples. The President asked if Ghana were trying to establish close relations with Israel and the Prime Minister confirmed this to be the case. There was further conversation regarding the possibilities for particular crops in Ghana, with the Prime Minister mentioning rubber as a field in which ICA had recommended close study. The President mentioned meat as a possible field for development, mentioning the success which the southern part of the United States had had with the El Santa Gertrudis breed. The President said Ghana might wish to explore the possibility of importing two or three small herds as a nucleus.

Before leaving, the Prime Minister said that he would also like to mention several political matters. He was deeply concerned about the present instability in the world. He had recently toured the eight independent African states which had been represented at the Accra conference.⁵ He felt that these states had a united outlook. He noted that there are only eight such nations at the present time and that the rest continue under the domination of the metropolitan powers. Ghana wants to do what it can to help them enjoy the same freedom which it now has. This is, the Prime Minister observed, perhaps more Ghana’s problem than that of the United States. He wished the President to know that at no place during his tour had he noted the expression of any views which were antagonistic to the United States. He had, however, found some disappointment. President Bourguiba of Tunisia, for example, who makes no secret of his pro-Western views, had expressed his concern that the United States did not appear to understand his problems. Mr. Bourguiba had told the Prime Minister that he knew how difficult it was for the United States to help every-one but that he did wish for greater understanding than he had thus far received.

The President asked if he were to understand that the African countries wished to cooperate informally among themselves. The Prime Minister confirmed this to be the case, although he emphasized that the primary area of cooperation is Africa. He noted that at the recent meeting in Accra, the other African states had made very clear to the Egyptians that they wished to confine their deliberations to African rather than Middle Eastern questions.

0. Source: Eisenhower Library, Whitman File, International File. Secret. Drafted by Palmer.
1. The proposed Volta River project included construction of a dam with a hydroelectric power plant which would power an aluminum smelter, development of Ghana’s bauxite mines, and construction of railroad lines between the two. Nkrumah had requested U.S. assistance in financing the project in a letter of November 12, 1957; for text, see Foreign Relations, 1955–1957, vol. XVIII, pp. 384–386. In his reply of January 3, 1958, Eisenhower indicated that if the majority of financing were arranged from other sources, the United States would consider assistance in financing a part of the project, such as a portion of the hydroelectric installation. (Department of State, Presidential Correspondence: Lot 64 D 174)
2. The Philippine Independence Act, approved March 24, 1934. (48 Stat. 456)
3. Secretary of Agriculture Ezra Taft Benson.
4. The Department of State announced on April 4 that the United States and Ghana had agreed on the establishment of a U.S. Operations Mission to conduct a technical cooperation program in Ghana; see Department of State Bulletin, April 21, 1958, p. 663.
5. Regarding the Conference of Independent African States, which met at Accra, April 15–22, 1958, see Document 2.