Office of the Historian

56. Paper Prepared in the Bureau of Intelligence and Research, Department of State1

Washington, April 5, 1977

INR AFTERNOON ANALYSIS

[Omitted here is material unrelated to Algeria.]

ALGERIA SEEKS BETTER RELATIONS WITH THE US

The Boumediene regime has important economic and political reasons for its current efforts to improve relations with the US. Better relations would be economically beneficial for both sides and would possibly encourage a less confrontational Algerian attitude on North-South and Middle Eastern issues, though we would not expect major modifications in Algeria’s anti-imperialist ideology.2

The Algerian leadership feels that substantial benefits can be gained by closer relations with the US:

—Economic: The paramount goal of the Boumediene regime is the implementation of its ambitious development plans. It is urgently seeking decisions from the Federal Power Commission3 on long-term LNG sales, which are needed to finance these plans. Algeria also wants additional Exim Bank loans and access to US technology.

—Regional: Boumediene hopes to dissuade us from our alleged “tilt” toward Morocco on the Western Sahara issue. At a minimum, Algeria wants continued US neutrality and encouragement of Moroccan restraint. Algerian requests to purchase limited amounts of military equipment (jeeps, radios, radar) in the US are intended to test our even-handedness and to send signals to Morocco that we would not stand behind it if it attacked Algeria.

—Global: Closer relations would demonstrate Algeria’s nonalignment and provide proof of US respect for Algeria’s international status. Algerians also seem to think that the Carter Administration will be flexible on North-South issues and that a dialogue with the US on this subject would be productive.

Algeria’s proven reserves of natural gas are the world’s fourth largest. It needs long-term cooperation with major gas consumers. [Page 152] Better relations with the US would be likely to lead to a stable economic relationship, resulting in sizable commercial contracts for US firms (sales average about $500 million annually, with prospects for significant increase).

The specific indications of changing Algerian attitudes toward the US include:

—unusually warm congratulatory messages to President Carter and Secretary Vance in January;4

—the appointment of an Algerian Ambassador to Washington (a confidant of Boumediene) after a two-year delay following the reestablishment of Algerian-US relations;5 and

—the diversion of several tankers of liquified natural gas (LNG) to the US this past winter.6

  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Country File, Box 3, Algeria: 1/77–11/80. Confidential. Carter initialed the paper and wrote “good” in the upper right-hand corner.↩
  2. An unknown hand highlighted this paragraph.↩
  3. The U.S. Federal Power Commission, established in 1930, regulated interstate electric utilities and the natural gas industry.↩
  4. In telegram 32758 to Algiers, February 13, the Department transmitted the text of Boumediene’s message to Carter. (National Archives, RG 59, Central Foreign Policy File, D770051–0589) In telegram 205 from Algiers, January 24, the Embassy transmitted the congratulatory message from Bouteflika to Vance. (National Archives, RG 59, Central Foreign Policy File, D770025–0102)↩
  5. Abdelaziz Maoui presented his credentials on June 24. Algeria severed diplomatic relations with the United States in June 1967 in response to U.S. assistance to Israel during the Arab-Israeli War. The Embassy in Algiers was re-opened in November 1974.↩
  6. In telegram 337 from Algiers, February 7, the Embassy reported on a press announcement regarding “two special sales contracts of Algerian LNG for immediate delivery to US.” (National Archives, RG 59, Central Foreign Policy File, D770043–0307)↩