Attached are three copies of the Policy Planning Paper for Algeria, as
approved by the members of the NSC
Interdepartmental Group for Africa.
The paper constitutes an official statement of US policy towards Algeria
and should be used as a guideline by all elements of the Embassy in the
preparation of policy statements, action plans and future budgetary
projections.
Enclosure
[Page 2]
Policy Planning Paper
Washington, June
1971
ALGERIA: Policy Planning Paper
[Page 3]
Introduction
Algeria is the most dynamic and important nation of North Africa. It
has a young aggressive leadership that appears determined to
maintain Algeria’s political independence from any major power,
while drawing pragmatically on outside capital and technology to
exploit its natural resources and develop the country. This approach
has led rapidly to a substantial improvement in U.S.-Algerian
relations, both political and economic. We see our broad interests
well served if this trend continues. Algeria has settled
satisfactorily the compensation claims of American corporations, and
is actively reviewing the private American claims. There is now a
potentially very large market for U.S. technology and capital in
Algeria. As the economy expands, significant private U.S. investment
opportunities in the form of joint partnerships should develop.
The U.S. demands for fuel energy are outpacing supply, and the
contemplated El Paso-SONATRACH project for the importation Algerian
gas will play a significant role over the next twenty years. We also
see this project, of such importance to the Algerians, as
associating them closely with western (specifically U.S.) economic
interests.
It is not in our interest to work actively to undermine the historic
French position in Algeria. France itself is too important for us to
attempt anything so antagonistic and, despite their troubles; the
remaining ties of the French with Algeria cannot easily be broken.
Realistically, however, we expect the Algerians to move away from
the French (as they are already doing in the critical petroleum
sector). We do see it to be in our interests to fill, at least in
part, a vacuum left by the French in this strategically,
economically and politically important North African and
Mediterranean country. We consider a close relationship with the
countries of Western Europe, and not to turn to the Soviet
Union.
A. U.S. Interests in
Algeria
- 1.
- Because of its geographic position, substantial resources
(chiefly in petroleum and natural gas) and its leadership,
Algeria is potentially the most important country in the
Maghreb.
- 2.
- The Algerian interest in economic development and in access to
U.S. technology offers opportunities for U.S. exports of capital
equipment and for services.
- 3.
- As its economy expands, peripheral but profitable areas for
U.S. private investment may develop, probably through
partnership arrangements with the Algerian state.
- 4.
- The US strategic interest in Algeria derives from its
geographic location and NATO’s responsibility for defense of
western Europe while denial of military operating rights in
Algeria will not significantly restrict NATO’s ability to carry
out its mission in the Mediterranean, which would be contrary to
our interests if the Soviet role as Algeria’s chief supplier of
military equipment resulted in basing privileges for Soviet
military units.
B. U.S. Objectives Over the
Next Five Years
- 1.
- Improvement of the U.S.-Algerian dialogue on matters of mutual
interest through the reestablishment of diplomatic
relations.
- 2.
- Significant progress in settlement of the private American
claims against Algeria.
- 3.
- Access to Algerian natural gas on a long-term basis.
- 4.
- Expansion of U.S. commercial exports to Algeria and
development of service arrangements.
- 5.
- Encouragement of a continued Western European, as well as
American, interest in Algeria, chiefly as an offset to Algerian
reliance or dependence on Soviet technical and military
assistance.
C. Algeria’s Objectives
vis-a-vis the United States
- 1.
- Access to the growing U.S. market for natural gas.
- 2.
- Access to U.S. official and private sources of capital to
assist in Algeria’s economic development.
- 3.
- U.S. support of Algeria’s interest in IBRD financial assistance in connection with
Algeria’s economic development.
- 4.
- Achievement of its economic objectives while maintaining
maximum freedom of political maneuver, i.e., to keep its
critical distance from the U.S. on major world political
issues.
D. Recommended Courses of
Action
- 1.
- Use Algeria’s economic interests as a lever to obtain progress
on the reestablishment of diplomatic relations.
- 2.
- Get Algerians moving on reexamination of U.S. private claims
with a view to consolidating them and finding an imaginative
solution.
- 3.
- Support arrangements for the export of Algerian natural gas to
the U.S. as a function of overall improvement in U.S.-Algerian
relations; encourage maximum American participation in related
projects.
- 4.
- Expand economic and commercial activities of U.S. Interests
Section to promote further increases in U.S. exports of goods,
services, and technical/managerial skills.
- 5.
- Promote higher level American-Algerian contacts in Algeria and
the U.S. on the basis of the mutual interests involved.
- 6.
- Conduct quiet educational, information and cultural activities
as exemplified by ongoing Mission support for programs of
English teaching, American studies and cultural presentations,
in a continuing effort to improve the general atmosphere of
U.S.-Algerian relations.
