In June, petrol and diesel rationing was introduced. Private motorists can only buy fuel on three days a week and diplomats are required to buy fuel in foreign currency.
All passenger services on the Tazara railway were suspended on 16th. April due to shortages of locomotives and allied problems. These services were due to resume in May. The problems of the railway continue. It is still not getting the payments from Zambia which it needs to cover its costs. Too much is still going by road and by other routes. Repayment of the Chinese loan for building the railway was due to begin in January 1983, but President Nyerere has secured Chinese agreement to a ten year delay in the start of repayments of the £300 million loan. Repayment over 30 years will now begin in 1993. The Tazara Board met in Dar es Salaam in May to discuss the railway’s economic and operational problems. These were identified as a lack of reliable locomotives and spare parts and difficulties in transferring funds (most revenue is collected in Zambia, but most of the track and hence of maintenance expenses are in Tanzania). It was agreed to increase the number of engines by 50% to be purchased probably from West Germany because Chinese engines had shown a high rate of breakdown.
Zambia has used part of its recent IMF loan to payoff outstanding port bills in Dar es Salaam port.
The Tanzania Railways Corporation is unable to repay foreign debts, which it inherited from the former East African Railways Corporation. Some shs.85 million are due for repayment in 1981-82.
Air Tanzania is due to make repayments of shs.160 million, for which it will need government help.
As part of an agreement with Mozambique to expand trade through a Ruvuma free trade area, work is to start on a bridge over the Ruvuma river in September, 1981, to be named the Unity Bridge.
Industry and Power
In February, the Mtera dam, 100 kms. north of Iringa, was inaugurated. It will provide water storage and hydroelectric power, reducing dependence on imported oil. The cost of $113 million is being met by the Swedish International Development Agency and the World Bank.
Angola has agreed to supply Tanzania with part of its oil needs on favourable credit terms and in return for goods.
The American chemical company Agrico has signed an agreement with Tanzania to form a company to make ammonia and urea from natural gas if the Songo Songo field can be exploited. The products would be used to make fertiliser and production could meet all local needs for ammonia and urea and provide a surplus for export.
Natural carbon dioxide found at Kyejo in Longwe District is to be processed with plant supplied by Denmark. Production is expected to begin early in 1982.
West Germany is to finance a road project in the Usambaras, a paper mill at Musindi, the railway workshop at Morogoro and a water supply for Tanga. Technical cooperation includes support for the Faculty of Engineering at Dar es Salaam, the national coconut development scheme and Nyegezi agricultural college.
Sweden has signed an agreement covering two years, which will provide shs.1,411 million in development assistance and shs.85 million for import support.
President moves to Dodoma
On 26th. July, The President officially moved to the State Lodge at Chamwino village 40 kms. from Dodoma. This is an important step in the plan to move the headquarters of government to the new capital.
The article that never was
During May and June, Dar es Salaam was swept by rumours alleging that an article had been published in Time or Newsweek giving details of money held in Swiss bank accounts by the President and senior party officials. No such article appeared in either journal, but this is difficult to prove, since, together with many other magazines, Time is not being imported as a foreign exchange conservation measure, while the number of copies of Newsweek available is limited. The rumour claimed that the magazines had been banned because of the article. The US library was inundated with requests, but most of its copies of the magazines were stolen. The Tanzanian English language paper Daily News offered shs.20,000 to anyone who could produce the article and promised to print it in full. State House also offered a reward to anyone who could produce one of the photo-copies said to be on sale at shs.200 each. Neither of the rewards has been claimed.
The last Tanzanian troops have left Uganda. They entered the country in 1978 to defeat Idi Amin. At the height of the conflict there were 40,000 Tanzanians in Uganda. Most of them returned in 1979 and 1980, but some 10,000 remained until this year helping with training and security. They were called on many times to maintain order and protect key installations. They frequently came in for criticism. Some undoubtedly were involved in activities that have little to do with the job of an army. Some Tanzanian soldiers have been involved in black market trading on a big scale. But generally speaking the Tanzanians have been praised on all sides for their good discipline, their tolerance and their courtesy towards ordinary people on roadblocks, in marked contrast to what Ugandans have become used to from their own soldiers. About 1,000 Tanzanian policemen remain in the country to help with the training and organisation of the police force. As with any departing army, there are the usual social and domestic problems. The army is not only leaving much equipment and supplies behind, to the delight of local people, but Tanzanian soldiers have also had the problem of saying goodbye to a number of women with whom they had been living and the children they had fathered.