CONFIDENTIAL
would let the Portuguese know our view.
Mozambique
4.
Azevedo Soares said there was practically no economy worthy of the name and Mozambique had heavy debts to Portugal. The Portuguese and Mozambican Finance Ministers would be talking about this shortly. The recent government reshuffle in Mozambique made no difference, but Portugal welcomed the dismissal of the former governor of the Bank of Mozambique. RENAMO did not have the political capacity to govern areas which it took over. There was no evidence of Portuguese support for RENAMO (eg Bulhosa). There was a need to resolve the political situation in Mozambique. Maintaining the Beira Corridor open as a route to the sea for other states inland was an expensive palliative. It would take time for FRELIMO to build up effective fighting forces. The position of South Africa and implementation of Nkomati was crucial. Machel was prepared to trust Pik Botha, not the South African president. Jacinto Veloso had recently told
the Portuguese that he knew that the South African military could do things without Pik Botha's knowledge.
Angola
5.
Azevedo Soares said the Angolan Government was very different from that in Mozambique. Now was the best moment to talk to the Angolans although, given their orthodoxy and suspicions about the Portuguese, decision-making there was always very slow and difficult.
The MPLA did not know whether to attack UNITA in Jamba. Failure
would be costly for them and, given the millions of dollars worth or arms they are currently receiving, inaction would be difficult to explain. He expected the Angolan situation to remain the same
for many years.
6. Dr João Salgueiro thought that nothing substantial had come out of President dos Santos' visit to the USSR. This was more a political
gesture of solidarity. Mrs Chalker mentioned the recent cooperation agreement between the UK and Angola and the Soviet/Cuban impediment to our developing closer trade relations with Angola. Azevedo Soares saw no sign of a Russian withdrawal. He believed that American aid
CONFIDENTIAL
/to UNITA
No comments yet.
Private notes are available after approval.