272. Telegram From the Department of State to the Embassy in Ghana1

52667. Following is FYI Noforn based on uncleared memcon subject to revision on review:

1.
Following White House luncheon Oct 10, Under Secretary Katzenbach, accompanied by Assistant Secretary Palmer and Ambassador Williams, called on General Ankrah at Blair House. Talk lasted some 45 minutes in excellent atmosphere.
2.
Ankrah said he wished reiterate, as he had said to President, his thanks for what US had done in Ghana’s time of need. In next year he expected country would be out of woods, stabilization period would be over, and Ghana could then plan for economic progress. This also would be accompanied by turnover of government to civilians and he hoped there would never be another necessity for a military coup.
3.
Unemployment was country’s current economic problem. Ghana receiving some help from donor countries but it insufficient. Anything US could do would be appreciated. PL–480 assistance helped at start NLC regime to meet this problem, but it needed concrete, substantive development to employ people to produce. Feeder and trunk roads development under US aid was fine project, but disproportion of such funds for feasibility studies was out of phase now. Start should be made on roads already surveyed.
4.
Drawing on Ghana’s experience with communists, Ankrah said they had employed large numbers, who did and produced nothing. Gave example of factory where they had not planned how to move one part of product elsewhere. Under Secretary smilingly interjected that they had made no feasibility study. Ankrah appreciated sally and continued that Ghana would welcome anything US prepared to give or efforts to encourage US investors in Ghana to handle unemployment.
5.
Under Secretary said US respected and admired what Ghana has done. US however has serious problems, with AID programs in Congress being severely cut. Present is difficult time, with large federal deficit and heavy Viet-Nam budget. It not question of being opposed to aid or help to individual countries. Because of admiration for it in Congress we have been able to do what we could for Ghana. While he personally believed US spending too little on aid to developing countries, Congress will provide still less this year. President has asked for tax increase and [Page 479] Congress wants cut government expenses. Under Secretary believed there little that could be cut from budget, but it hard to say where cuts will come.
6.
Ankrah said he considered Ghana in vanguard of all African countries. He could see no use in letting country go back to where it was. When NLC prepared turn over to civil rule, it was determined at that stage country would be able make a go of it. Other countries trying to copy other regimes. Ghana had unique position in this respect. Other OAU states had become convinced that NLC aim was to help Ghanaian liberties. He wanted US, when considering what NLC did, not to think of other African states in preference to Ghana. Regionally Ghana was working with its French speaking neighbors on projects which, in making them more independent, would make them more democratic. Ghana soon would be out of forest, but needed help.
7.
Under Secretary thought that PL–480 had some possibilities for help to Ghana. Ankrah said he would appreciate this, but it would cause problems if Ghana had to follow rigidly all PL–480 requirements. He thus urged that terms be flexible. Under Secretary concluded by saying US would seek to do what it could in Ghanaian aid.

Rusk
  1. Source: Department of State, Central Files, POL 7 GHANA. Confidential. Drafted by Melbourne on October 11, cleared by Hamilton at the White House, and approved by Palmer. Repeated to London and CINCSTRIKE.