The Nation is You. Addresses To, and Resolutions of, the National Council of the United National Independence Party at Mulungushi Hall, Lusaka 4th to 6th March, 1972

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United National Independence Party ( Zambia ), National Council .

Session , March 1972 .

The nation is you .

STANFORD LIBRARIES

JQ

2919

A98A35 MAR,

1972

S E

I

R A I R R O

ilhi

HOOVER INSTITUTION War, Revolution , and Peace FOUNDED BY HERBERT HOOVER , 1919

|

THE NATION

IS

YOU

Addresses to, and Resolutions of, the National Council of the

United National Independence Party at Mulungushi Hall, Lusaka 4th to 6th March, 1972

!

I

r a JQ ,79 7 2 9 m.

CONTENTS

OPENING ADDRESS BY H.E. DR K. D. KAUNDA

1

ECONOMIC REFORMS - REORGANISATION OF WEALTH

23

VICE - PRESIDENT - OUTLINE OF SECOND NATIONAL DEVELOPMENT PLAN ..

47

RESOLUTIONS

55

CLOSING ADDRESS BY H.E. DR K. D. KAUNDA

65

ADDRESS BY HIS EXCELLENCY THE PRESIDENT, DR K. D. KAUNDA , SECRETARY -GENERAL TO THE

UNITED NATIONAL INDEPENDENCE PARTY, ON THE

OCCASION

OF

THE

OPENING

OF

THE

NATIONAL COUNCIL AT MULUNGUSHI HALL

4th MARCH, 1972 MR CHAIRMAN ,

I am very happy that we are able to meet again as a National Council. There are good reasons why this is so. FIRST :

We in the Party must check and prove that our Party

machinery is democratic. The Party Executive must always consult and seek fresh directives from this

supreme policy -making body. The National Council should be well briefed and be able to review any

situation in the country, be it political, economic, social or cultural. In this first meeting of the National

Council this year, you the representatives of the people, meet to review the current situation in the country in our ordinary session of this Council. SECOND :

At our last session in October last year, the National Council passed a momentous decision. You directed

the Central Committee, among other things, ' to work towards the achievement of a One- Party Democracy in which the liberties and welfare of the commonman will

be paramount '.

Today's meeting provides me with the opportunity to report on the actions taken on some of the Resolutions of our October

meeting. On the important operative and actionable resolutions, I have to report as follows:

Under Resolution 4, the National Council applauded Govern ment's decision to give rural development top priority in the Second National Development Plan . The National Council considered active participation and involvement of the masses

to be central to the success of this policy . I am glad to report 1

that on the 12th of January, Government launched the Second National Development Plan with due emphasis on rural development. Later, on 28th January, the Minister of Finance

presented this year's Budget to Parliament which gave rural

development the high priority it deserves in Party and Govern ment policy. The administrative machinery has also been geared to ensure that maximum benefits accrue to the people from the Plan. But, it is clear that unless the Party officials at Village and Section levels, at Branch, Constituency and Regional levels, fully apply their efforts to the closest supervision of the work of implementing the various projects in the Second National De velopment Plan, we will not achieve the targets set in the Plan . The Party leaders and Party members in general must all take the Second National Development Plan as a UNIP directive

which they must implement. We are in Government. UNIP is Government and every Government project is a UNIP project. Every Government achievement is UNIP's achievement. You,

therefore, as representatives of the people must lead in mobilising and directing the efforts of the people to implement

the various projects of the Second National Development Plan affecting your respective areas. Government officials alone can achieve little, but with your co -operation in mobilising and leading the masses in action, we will achieve a lot. Do not

merely talk , you must act, work hard . That is what leadership means .

Under Resolution 5, you urged Government to ensure closest supervision of the implementation of economic reforms in order

tobring about effective control of our economy. On 1st January this year, the transfer of retail trade into Zambian hands took effect. Prophets of doom had forecast a dim future for Zambians

throughout the country. An atmosphere of despondency had been deliberately created . Fortunately , as was expected , only a few shops remain closed in certain areas not because there are no Zambians willing to buy, but because of the conditions

laid down by the sellers. All other aspects of the economic reforms are progressing very well. This is illustrated in the Paper I am circulating to the National Council entitled

' Reorganisation of the Nation's Wealth since Independence' as part of my Report. We are now in an era of consolidation and I have no doubt about the future. The future is in the

hands of the people provided they can work hard and diligently. There is no easy alternative if we are to control Zambia's destiny . 2

Second

Resolution 6 recommended that Government should ensure

rural

inance

the realisation of self-sufficiency in food production . This year, given continued favourable rainfall, we will have a bumper

rural

crop in maize. Given favourable weather conditions in the

vern

1972/73 planting season , we should do better than this year not

reared

m the

only in maize production, but also in all other crops. The majority of our farmers, whether commercial or peasant, have

e and

responded positively to the new economic opportunities. The

fully -k of

demands for better extension services are very pressing and the Ministry of Rural Development is doing everything possible to

De Plan. take

cover the needs of the country as a whole. This is a problem of manpower. But we must learn to be self - reliant even in this area . The establishment of the National Service is largely designed , among other things, to assist in increasing technical

tive

P is rect. ou, in ent ent

know -how and extension services in the field of agriculture. Government is also answering problems of the provision of adequate supplies of other foodstuffs either by direct State

action , or by encouraging private enterprises. We, therefore, continue to pursue a policy programme leading towards increased self-sufficiency in accordance with general Govern ment policy and the directive of the National Council.

ne

ng ot

ip

Resolution 7 endorsed Government endeavours to do every

thing possible to ensure proper financial management in Government as well as conservation of foreign reserves. In

response to this Resolution, I gave a directive in my opening it r 7 1

Address to Parliament this year that Government must main tain the highest possible standard of financial discipline. In this connection , Government has already initiated and taken

administrative action against officials and institutions guilty of financial indiscipline. Furthermore, the Minister of Finance and the Minister of Trade and Industry have already announced import restrictions in certain commodities, and other austerity

measures, while tightening Exchange Control Regulations and sealing off the loopholes used by currency smugglers to take out millions of Kwacha to our disadvantage. Importsubstitution and the promotion of local industries add to a catalogue of positive measures already taken to resolve the problem . By far the most decisive Resolution passed was Resolution Number 10 which, as I have indicated , directed the Central

Committee to work towards One -Party Democracy in Zambia. Following this directive, the Central Committee and Cabinet

respectively made a firm decision that the country should 3

become a One - Party Democracy and that practical steps should be taken to bring this about. This is an historical and momentous decision .

In accordance with Cabinet decision , I announced the appointment of a National Commission on the establishment of

a One-Party Democracy in Zambia at a State House Press Conference on the 25th February. The Commission has been gazetted and sworn in. All other administrative arrangements have already been set in motion. The Commission is set to start work almost immediately .

As you know , this is a National Commission . I had, therefore , invited the African National Congress to participate. They

are entitled to . I had discussions with Mr Harry Nkumbula , MP , leader of the African National Congress, prior to the

announcement of the Commission. I specifically appointed him and Mr Nalumino Mundia, MP , his deputy, to serve on the

Commission . You have read reports about their decline to make a positive contribution to the constitutional growth of Zambia.

The decision that Zambia should become a One- Party Demo cracy is the wish of the majority of the people of this country

and a minority group of people cannot stand in the way of the wishes of the majority . So regardless of the position which the ANC leadership may take, the Commission isgoing ahead to accomplish this national and historic task . But, I ask the ANC leaders to take courage and make a positive decision . Those who want to contribute to the work of the Commission

must feel free to come forward with concrete proposals in the interests of peace, democracy and development. On your behalf and on behalf of the entire Nation , I therefore invite the

ANC leadership to come with us — Tiyende Pamodzi — in building Zambia, strengthening peace and justice and thus guarantee progress and prosperity for all. This is a real chal lenge to them .

At this point, I wish to pay tribute to you and through you to the entire Nation , for the support you have given me andthe Government verbally , in writing and in action not only over the

issue of the One -Party Democracy, but also in shaping the destiny of Zambia in general. I know there are people who are apprehensive about changes in the system of Government. It would be surprising if there were none. I have always said Zambia is not made of angels,

but of human beings. We are not living in an Utopia. Indeed, 4

everywhere in the world there are people who are apprehensive just about any change at all. They always believe that a status quo is better than change. But, we are revolutionaries. We cannot afford stagnation. We believe in continuous change for the better . Among those who are apprehensive about change are some genuine people. But, there are some among them who are taking the advantage to oppose the wish of the majority of the people with malice .

We know them. We will give them a chance to reform . All we can tell them is : The decision we have taken is in accordance

with the willof themajority of the people . If they believe in

democracy, they will abide by the wishes of the majority. We cannot rule this country on the basis of the will of a few ; it is undemocratic.

I can only assure those who are genuinely apprehensive that whatever views they have will be taken into account by the

Commission if they put them forward precisely and cogently. I say to them : Do not hide in dark corners and make whispers.

We want to know what you want Zambia to look like. So, come out and make your contribution in the open instead of voicing your opinions through the media of press and radio . I know that some people areexperts in manufacturing stories from dis jointed rumours and painting a picture which is often a figment of their imagination. That, by the way, is not what matters. What is vital is your determination and mine to build a structure that will endure the test of time .

Our decision to make Zambia a One-Party Democracy is not designed to suppress opposition. We do not need a change in the system of Government to do so. We have an overwhelming majority in Parliament; we could make any changes in the Constitution. We could introduce any repressive legislation . We do not want to do so. We could have done so in any year since 1964. We have not. We do not need a One - Party De mocracy even to deal with rebellious elements and saboteurs. We could do so even under the present Constitution . We are

permanently set against dictatorship ; we are irrevocably committed to Democracy .

The One -Party Democracy will help us to weed out political opportunists and people who have become professionals at manufacturing lies, spreading rumours, creating confusion and despondency and pretending to oppose what they inwardly welcome and exploit for their own personal benefits in the 5

name of democracy which they have abused and desecrated . It has been fashionable in the past for any Party member,

disciplined for indiscretions to threaten to quit, or indeed quit, the Party to join the opposition ; for any civil servant guilty of gross indiscipline and misconduct to threaten to quit or

actually quit the Civil Service to join the ranks ofthe opposition ; indeed, for any religious leader whose ideas did not find place in Government thinking to render support to the opposition ;

for any businessman denied a licence or a loan on perfectly legal groundsto run to the opposition inthe hope that if they formed the Government, he would be favoured . This era in

which politics of patronage have been a feature of life is gone . The era in which political supporters with mercenary motives have switched loyalties depending upon the winds of political

fortune must be buried in the sands of history. We have too many political mercenaries who are friends only in conditions of affluence, but not in adversity. These people, engaged in petty political blackmarketeering, have such a big nose for

smelling new political successes and failures among potential or actual patrons . Poverty and discomfort can never find them . When success or riches enter through windows, they rush in through the door ; but as soon as poverty knocks at the door, they dash out through windows. These political hangers-on, who can never be found where poverty or adversity threatens and know no sacrifice, are the people who enthusiastically urge

some politicians to compromise their principles and betray the national cause . Yet they are always the first to abandon their patrons at the slightest sign of trouble . We have now entered

an era of political self-reliance. Every politician, every Public Servant, every businessman, must depend upon his or her own sweat and toil to succeed, to prove to the country that they are worth the support of the majority of the people. I pay tribute to Members of Parliament and UNIP back

benchers in particular, who have demonstrated beyond any doubt that the Zambia National Assembly can deal with the problems facing this country, be they political, legal, economic,

social or cultural, without having anything likean organised political opposition. Since Independence, UNIP back-benchers have put better and more constructive arguments in Parliament than the majority of those who profess to stand in opposition to

UNIP programme of action . In their speeches in Parliament, Members of the unofficial opposition do not call for anything different from that which UNIP back-benchers have demanded 6

in a more constructive language. As testimony, read the Daily Parliamentary Debates - a historical record of the contribution of your representatives in Parliament . This is proof that there are no grounds for organised Parliamentary opposition in this country. We can deal with all our problems within the same family successfully and democratically. One-Party Democracy will bring us under one roof. It will enable us to deal with dissenters as members of the same family

and not like an organised group of people outside committed, as a matter of principle and policy, to aprogramme of undoing what we have achieved ; to destroy the very basis upon which

this Nation is built. I have said in the past that it is one thing to criticise . We have a lot of criticism and self - criticism within

UNIP. But, it is quite another to oppose, that is, to engage in actions, sometimes with calculated violence, designed to constitute barriers or obstacles in the way of peaceful, demo cratic, constructive economic and social development. We have seen a lot of this already. We cannot and will not have it any longer.

The move to introduce One- Party Democracy is, therefore, the most momentous political decision yet taken in Zambia's constitutional history . It is as historical as it is challenging. The masses of our people who have called upon the Party and Government to change the system of administration, members of the National Council who gave the directive to the Central Committee to work towards One - Party Democracy must under stand the far -reaching implications of the new challenge : FIRST :

Organising the Party will be even more difficult and exacting than in the past. We have to contend with external divisive forces as usual, while at the same time ,

combating complacency among Party cadres. Since there will be no organised opposition outside the Party, we will have such opposition inside the Party. Party leaders and members must be more understanding and more accommodating as UNIP will represent a wider spectrum of opinions and interests. We must cultivate

qualities of honesty, modesty, patience and tolerance combined with unparalleled vigilance. 7

SECOND :

In view of the above, the new system of Government

requires the highest standard of discipline. We should be free to discuss and disagree on issues, but the moment a firm decision is made based on the will of the majority of the people, iron discipline must be maintained by

everyone in its implementation. This is part of the democratic process. Every Village and Section leader, every Branch , Constituency and Regional leader, every leader at the national level must clearly understand the implications of what a democratic decision means.

We are free to dissent. But freedom to dissent is not free dom to refuse to implement a decision accepted by the majority. THIRD :

Government is a servant of the Party — an instrument with which the Party implements its programmes. The Party is in turn the servant of the people ; and the

people are masters of themselves. In the light of this, Party officials at every level must learn to be true servants of the masses, to be loyal and devoted to them , to be selfless. Selflessness among leaders will be even more demanded under a One -Party Democracy than ever before. We in the leadership must at all times convince

the people that we are not living at their expense. We must show that we are in politics in order to make a contribution to the welfare of the masses and not in order that the masses may make a contribution to our personal or family welfare. Let us show in a practical

way that we are making sacrifices as leaders for their sake.

FOURTH : We must show dedication and more concentration in the

performance of our duties in the Party or Government, in business or in any other area of activity designed to improve life in the Nation . We must be efficient and

effective; we must be disciplined, punctual and generally alert. We must combine firmness with kindness without

favouritism in exercising our authority over others. Remember that people, however simple they may appear,

are very observant and critical in regard to the manner in which each one of us is performing our duties. 8

I know, and Zambia deserves to be proud, that there

are a lot of leaders who are working very hard indeed , and selflessly in the service of the masses of the Zambian

people. Their families are often alone because national interests take first priority . Unfortunately, the few bad cases have as usual hit the headlines in mass media and

thereby spoiled the good record of the many who are dedicated to the national cause . FIFTH :

The Party machinery and all available channels of communication must be used to widen the scope of

democratic participation by the people of this country at every level in the formulation of policy and in the

running of their affairs. In future, therefore, any member of the Party must feel free to send, through appropriate channels, any item of national interest to Freedom House for inclusion in the Agenda of the National Council.

Any member is free to submit a paper on any subject of national interest through appropriate channels, for example, the District Political Committee and Provincial Political Committee to the Central Committee for

consideration . The initiative to exercise freely individual rights in order to influence policies of the Party and Government or the course of events in the country rests

entirely with Party members and the citizens of Zambia in general. Every member of the Party, like every citizen of Zambia , is entitled to their rights with corres

ponding obligations. It is important to know them . A One-Party Democracy is, therefore, not an end in itself, but a means to an end. The new era which we are entering must

mean an end to political prostitutes who have paraded them selves in the past before this Nation in the name of democracy , living on cheap tissues of lies and propaganda and preying on innocent members of the Zambian society. We must all earn our living. Zambia has made thorough preparations for a One-Party

Democracy. We have a philosophy — that is Humanism . This is a philosophy based on the respect for Man , his dignity and

worth . We are committed to the principle of equality of all men and women — a principle deeply rooted in Humanism . Our respect for the rule of law and our commitment to the principle

of the independence of the Judiciary provide a guarantee for 9

equality among our citizens and strengthen our democracy . Free elections in Zambia are a normal feature of life in choosing

representatives to local and national institutions. The maxi misation of local democratic participation in running local affairs has been our objective. We have provided an efficient and effective administrative machinery at Village and Ward levels ; channels of communication between the people and Government have been established and improved . Government and non -Government institutions, including the Church and private sector, are being mobilised to help create meaningful

contact between the broad masses of the people and the entire leadership in the Nation . Institutions such as Village Productivity Committees, Ward Development Committees, District Development Committees, Provincial Development Committees, together with all other bodies in the political, economic and social fields are available .

They provide the necessary channels through which people can give expression to their wishes and desires, and guarantee

freedom and promote maximum progress in peace and justice. The National Commission on the establishment of a One

Party Democracy in Zambia has been directed to observe

certain fundamental principles. These principles, together with the issues which I have asked the Commission to examine, underline our determination as a Government to devise a

political system in which supreme power is vested in the people; a system which gives the people of this country one of the best

democracies. I know very well that Western -oriented critics will lament rather nostalgically the decision to abandon the 80 -called 'Westminster -style democracy' which even in the United Kingdom and Northern Ireland itself leaves much to be desired . We, as Africans living in our own conditions, are

capable of readjusting to change and of working out our own systems of democratic Government. The emphasis must not be

on Westminster but on democracy - a democracy which meets the desires and wishes of the people and guarantees individual security and freedom . It must be good for us and our families now and in future when we are outside the Party and Govern

ment leadership . There are also people who may wonder if a referendum is not necessary on such an issue as a One - Party Democracy. We say NO . In June, 1969, we had a National Referendum . One of our fundamental platforms in campaigning for that referendum 10

was that it was a 'Referendum to end all referenda '. The

people of this country gave us an overwhelming vote of confi dence and a clear mandate in matters relating to changes in the

Constitution. It is perfectly within the law and in accordance with the wishes of the majority of the people that Parliament changes the Constitution with a two-thirds majority without having to go back to them in another referendum .

It is important to stress that the greatest challenge this Nation faces now is to provide for itselfa system of democracy which must answer our basic needs as a dignified people in an independent Zambia. Let us have confidence in ourselves. We can be original. We must be original. Our conditions are not European . They are African , Zambian. So are our needs. We, therefore, must work out Zambian solutions within the frame

work of our commitment to peace, unity, freedom , democracy and development in Humanism . This is not the first time we are being original in formulating policy to serve Zambian interests . At Independence, UNIP

broke with tradition and decided that Zambia should become a Republic immediately without going through the usual period of self-government. Some people doubted the wisdom of our decision . It proved a good decision .

Since then , the UNIP Government has made some of the most crucial decisions which have given this Nation the

stability and progress we witness all around us and the interna tional reputation the country enjoys today : We took a firm decision on mineral royalties shortly before

Independence which could have postponed our Inde pendence date and followed this decision with another on mining concessions.

We decided on a bold programme of Zambianisation both in the Public and Private Sector amidst fears of a

breakdown in the administrative machinery. We decided on State participation in the Zambian economy and embarked on economic reforms designed to give Zambians a fair control of commerce and industry , an

opportunity hitherto undreamed of. We decided on a policy of self-reliance in power by building a completely Zambian Kafue Hydro -electric Scheme and embarking on Kariba North Bank ; by opening 11

Maamba Collieries and constructing the Tazama Oil Pipeline.

We decided to reorganise the entire transportation system in order to improve efficiency and effectiveness in the service. Zambia Railways and Zambia Airways have

undergone considerable improvement. A road network links many parts of our country. Trade routes have been diversified in accordance with Government policy. We decided to diversify our economy, to reduce our dependence on copper. We are improving our agriculture. We have expanded the manufacturing industry such as in the fields of textiles, sugar, copper fabrication, explosives production and so forth . Our capacity to expand the manufacturing sector has been proved greater than expected. We decided to decentralise Government Administration in

accordance with our belief in participatory democracy.

We decided to embark on a programme of Rural Recon struction in order to attack more vigorously problems of economic and social development. We decided on the construction of the TanZam Railway

one of the most controversial projects in Africa , if not in the world . We did so amidst wild accusations of a pro Chinese oriented policy. Our China policy, pursued

regardless of accusations and within ourcommitment to non -alignment, has now been proved right. We are

making tremendous progress with Chinese assistance ; and China is a member of the United Nations.

We decided to go to the country in June, 1969, in a National Referendum which has enabled us to resolve some of the intricate problems of our Land Policy. Against opposi tion, we won a landslide victory.

We decided on a bold investment policy in programmes of social reform , that is , in education, health and housing,

without precedent in the history of this Nation. Our objective has been to improve the standards of life among the broad masses of the people not only in urban areas but also in the rural areas .

We decided to pursue a vigorous policy on the liberation of Southern Africa . We have pursued this policy regardless

of the sacrifices which the policy has entailed — a move 12

which has won us respect in the international community and friendship among many independent nations of the world .

The result of these decisions, among others, is that Zambia

enjoys peace and progress. Zambians are participating fully in the running of their country. In the bold decisions which we have made in the past, there have always been dissenting voices representing vested interests. We have not ignored their criticisms. Their views have always been fully taken into account. But, we have never succumbed to the wishes of a

minority against the interests of the majority. The bold decisions we have made have been proved right. These bold decisions and the tremendous achievements which

the country has witnessed since Independence have continued to increase the confidence of the people in the Government.

UNIP has been returned to power in greater strength in general elections. In 1970, the people expressed their confidence in the

Party during Local Government Elections . Out of 968 seats, we gained control of 831. Only two days ago , on Thursday, there were by -elections on the Copperbelt and in Lusaka to fill vacancies left by defectors. The results of the by -elections provide clear indicators as to what the moods of the people are. UNIP has swept all the vacant seats with clear majorities. The people have again signified their fullest confidence in the United National Independence Party.

We, therefore, understand the people of this country. We understand the challenges which the country faces. We are ready to make bold moves in moments of decision provided such moves are in the interests of the people of this country.

The Central Committee is aware of the new challenges.

Consequently, taking into account the new administrative machinery at the Village, Ward, District and Provincial levels , the Party's Central Committee has already made important decisions to reorganise the Party at various levels. Its Sub committees which were established under Article 13 of the

Constitution , namely, the Political and Constitutional Com mittee, the Economic and Finance Committee, the Social and Cultural Committee and the Publicity and Strategy Committee together with the Disciplinary Committee, are working very well. The Political and Constitutional Committee, for example, has been tackling a number of tasks. It has naturally given 13

priority to the organisation of the Party. In this connection , it has considered the organisation of programmes at the various

levels of the Party and has made a number of important recommendations to the Central Committee which the latter has confirmed .

FIRST : PROGRAMMES OF MEETINGS – Central Committee and Committees of the Central Committee

The Central Committee decided that its meetings and those of its Sub -committees would normally be held once a month,

during the first week of each month . This arrangement is designed to enable Cabinet Ministers for Provinces and other

Party leaders to carry out their own programmes in the Provinces, knowing that they will be required to be in Lusaka during the first week of the month . These leaders should now be ina much better position to prepare programmes and to supervise work in their respective areas for at least three weeks each month .

SECOND : PROGRAMMES OF REGIONAL ,CONSTITUENCY, BRANCH COMMITTEES

The Central Committee decided that the Regional Com mittees, Constituency Committees and the Branch Committees should meet once a month . In order to allow time for the

submission of reports from Branch Committees to the Con stituency Committees and from the Constituency Committees to the Regional Committees, it has been suggested that the

Regional Committees should meet during the second week of each month, the Constituency Committees during the first week of each month and the Branch Committees during the third week of each month . It is appreciated that the outlined arrange ments will be subject to change to meet local circumstances.

The decision relating to meetings of Regional, Constituency and Branch Committees was referred to Party leaders in the

Provinces and recommendations adopted by the Central Committee were arrived at after consulting leaders in the Provinces .

THIRD : PROGRAMMES OF SECTION, VILLAGE COM MITTEES

The Central Committee decided that Section and Village Committees meet once a week. In order to improve efficiency 14

and effectiveness of the Party, the Central Committee decided that the size of the Section should be reduced . A Section should consist of 25 houses instead of 50 .

FOURTH : COMBATING CRIME The decision taken to reduce the size of the Section is also

designed to enable the Party to play an important role and to

increase its effectiveness in combating crime. The Central Committee has decided that a Security Committee should

consist of not more than five members. These Party leaders in liaison with the Police will be responsible for the security of the citizens in their areas. The training of the leaders serving

on Security Committees will be given by the appropriate authorities. The Central Committee further decided that in

future, measures should be taken to establish telephone links between Sections and the nearest Police Stations. FIFTH : SEMINARS

Over the past years a number of seminars have been organised by our Party leaders. Experience has shown that at times the organisation of seminars clashes with the organisation of other meetings, for example, Provincial Development Committee meetings. In order to avoid confusion and duplication, it has been decided that in future all seminars organised by our Party

leaders should in the first place be cleared by the Central Committee a month before the seminars are held. In this way there will be ample time to make the necessary preparation, and co -ordination will be more effective . SIXTH : POLITICAL EDUCATION

One major task that remains to be done by the Central Committee is to work out the form and the content of the

political educationwhich will be given to our Party leaders and to the members of the Party , for it is not enough to tell our

Party members that they should meet either once a month or once a week without working out a system of political education which is going to be applied. The Central Committee would

welcome suggestions in this regard from Party leaders; it is very conscious of the importance of this matter in the organisa tion of the Party. 15

ECONOMIC AND FINANCE COMMITTEE :

The Economic and Finance Committee has, as you know ,

already shown tremendous initiative in tackling many problems facing the Party in the field of transportation and finance. Last year they presented a number of vehicles— Land Rovers, cars ,

motor- cycles and bicycles, to increase the efficiency and effectiveness of Party organisers in the field . Programmes designed to improve the financial position of the Party at its various levels are under active consideration . In this connection ,

it is important to stress that every committee from the Village

Section level to the Regional level must work towards self reliance . Indeed, the Party Headquarters itself is considering moves in the same direction . SERVICE AND DISCIPLINARY COMMITTEE :

The Service and Disciplinary Committee, comprising seven members appointed from the Party's Central Committee, is a vital organ in promoting efficiency and effectiveness in the

running of the Party machinery. Under it, there are a number of other Disciplinary Committees, namely, Branch Committee, Constituency Committee, Regional Committee, Provincial Committee . The Central Committee, the National Council and

the Party's General Conference in themselves constitute each a

disciplinary authority . Members of the Party are free to appeal from one lower disciplinary authority to a higher one including the Service and Disciplinary Committee. The National Council shall hear appeals from the Service and Disciplinary Committee, while the General Conference shall hear appeals from the National Council.

Rules and regulations have been drawn up and should be considered by this National Council.

At this point, it is important to stress that every disciplinary authority at every level of the Party must adopt the highest possible standard of impartiality and objectivity in dealing with cases brought before it. This is the best way of improving

the reputation of the Party, creating confidence in the public and guaranteeing that there is contentment among Party members and respect for the disciplinary authority. We must learn to abide by the decisions of the disciplinary machinery for it is at the service of the Party as a whole and, indeed, the Nation . 16

The work done by the Social and Cultural Committee and the Publicity and Strategy Committee requires no explanation .

In each case a machinery exists already for maintaining the most effective and democratic contact with the broad masses of

the people. This demonstrates the seriousness with which we are approaching Party and Government organisation to improve our services to the Nation as a whole.

It can be seen that the Party's administration has been decentralised and will continue to be decentralised in order to

maximise local democratic participation by the people. After the last General Elections, Government administration was decentralised . Since then Cabinet Ministers are leading the

Provinces in the decision -making process. Now the organisation of Committees at Village and Ward level will ensure that as many decisions as possible are made by the people themselves through their Committees. Fewer and fewer decisions will be

referred to Lusaka. This means that Lusaka will no longer exercise the authority it has been exercising in the past. There

can therefore be no dictatorship since the people are free to make decisions on their own in matters affecting their lives. The success of the policy of decentralisation depends entirely on the people themselves — the degree to which they are prepared to work harder and to pursue effectively the policy of self reliance .

Under the new system of Government, these Sub - committees of the Central Committee, together with other organs of Government, must work harder to achieve the Nation's

objectives. In other words, leaders in the Party and Govern ment from the lowest level to the highest, leaders in commerce

and industry, in the Church and in many other national institutions, must work harder to mobilise the masses and ensure their fullest participation in making policy and decisions and in implementing them efficiently and effectively. The secret of our success lies in HONESTY , DEDICATION, DETERMINA TION , CO-OPERATION AND HARD WORK . We have to make more

sacrifices to guarantee national success. There must be no doubt about UNIP's role and contribution

to the growth of this Nation and to the welfare of the broad

masses of the people. This National Council as the supreme policy -making body must give guidance and directives to the Central Committee on the work of the National Commission . 17

We in the Central Committee must, for example, be guided on whether we should continue as in the past to build UNIP as a mass movement or turn it into a Party for the select and loyal few . Should UNIP , in a One- Party Democracy, throw elections

to national leadership completely open regardless of Party allegiance and loyalty ? The National Council must give guidance and directives on the relationship between the Cabinet and the

Central Committee, the role of Parliament in future, and on many other issues which the Commission is to examine . In this National Council there are members of the Central Committee ,

Cabinet, Parliament and Heads of our Missions abroad ; there are District Governors and Regional Officials and representa tives of important national institutions. It is important that you all contribute freely to the formulation of the directives which the National Council will issue. After the directives have

been given we must all be bound by them. I want to make it plain that in the decisions we are making, there can be no victors, no vanquished. Every victory that we score is a victory of right against wrong. It is a victory for the masses of whom we are servants .

The year 1972 is a turning point in our political history. It is a year which will have great impact on economic and social progress in the future. We must strengthen stability in order to consolidate our economic and social gains.

While promoting the cause of peace and development in defence of genuine democracy, I know there will be trouble makers. I therefore want to sound a clear warning in good time that Government will take tough measures against any trouble maker in order to maintain law and order ; Government will take

tough measures to protect the lives of innocent people who want to take advantage of stability and economic opportunity to improve their lot.

The establishment of a One -Party Democracy in Zambia will certainly deal a death blow to the subversive foreign elements who had hoped to use opposition groups to keep Zambians per manently divided and therefore unstable and weak . There are foreign countries who are jealous and indeed fear our unity and prosperity. These countries have been determined to finance

certain individuals or groups of individuals in order to further their objectives. 18

The united people of Zambia cannot and must not permit them to succeed . We must close our ranks more than ever before

and proceed in greater unity and co-operation to accomplish our national objectives of economic and social reconstruction ; of consolidating our past achievements. We must concentrate all

our efforts on the establishment of a political system which while guaranteeing our freedom and justice, while strengthening our Independence and fostering progress on all fronts, effectively keeps any foreign interference at bay. Zambia is a member of the international community. We value and need peace for ourselves. We want peace for all man kind. To this end, the Party and Government will continue to pursue a vigorous policy of friendship and co-operation with all independent nations of the world regardless of ideological and political systems. We will maintain our commitment to the

policy of non -alignment. It is a guarantee against being turned into a puppet -state and enables us to pursue an independent foreign policy more relevant to our national interests.

We, together with the rest of Africa and the world, will fight injustice and minority rule in Southern Africa. Indeed , no

Zambian can sit comfortably when a stone -wall of racialism is going up all around us except for an exit to the north. No

Party leader can be complacent about the current security situation arising from our geo-political position. We must all be vigilant. Events in Zimbabwe and Namibia in recent months stand as a testimony to what the future holds for Southern Africa. The world must take the mood of the people within the

minority -controlled areas seriously and sympathetically. Few countries in the world have done so much as Zambia has, and have made so many sacrifices in an effort to bring about peaceful change in Southern Africa . There is no doubt that our foreign policy has been vindicated by events in the whole of the Southern African area .

Our foreign policy has been vindicated by events elsewhere .

In the past week we witnessed the decision of the United States to move a step closer to China . That step , however small,

is both significant and historical in man's effortsto preserve peace and promote greater co -operation. We in Zambia hail the Nixon visit to China. We as human beings have an interest 19

in the improved relations between the two countries. We can

only hope that the same courage and good intentions which precipitated President Nixon's historic visit to China will also

movethe Americans and their allies to face up to the truth about problems in Southern Africa . The scope of co -operation between Zambia and other nations

is growing with our improved economy and our extended

programme of social reform affecting a greater part of our

population in the rural areas. We will need foreign investment for a long time to come. We are ready to welcome it and use it in our endeavours to guarantee a fair distribution of opportunity and wealth among Zambians.

Our Party machinery is therefore being geared to accept greater responsibilities in all aspects of national life, both domestic and foreign . The task ahead is tremendous; so are the efforts required to accomplish it. We all are in the vanguard

of the revolution . The Party is a vital instrument for realising the national objectives in economic and social reconstruction.

The improvement of UNIP as an instrument of development depends upon the masses, upon the cadres organising at the grassroots level; upon us in this Hall. To UNIP cadres I say, continue to avoid violence. Your task is to win over more supporters — to win the confidence of the masses through politeness, friendship, kindness and hard work.

This means that you must know the Party and Government policies in greater detail than ever before. Do not bully anybody. Lead and guide by good example. Be disciplined in order that you can legitimately discipline your followers. Your daily conduct will always determine the reputation which the Party enjoys among members of the public whom you are under an obligation to serve .

To UNIP leaders I say, the test of your leadership is now .

You must reach every village and every town; every school and

every mission station ; indeed , every family. You must go into the fields and factories, in trains and buses everywhere. You must identify yourself with the people and they with you and UNIP . We must demonstrate to them that we are one with

them ; we all belong to Zambia and we have common interests and a common destiny. 20

To the people of Zambia I say, UNIP is yours, it is a Party at your service. The Nation is you. We in the leadership, for the time being, are your servants. We are committed to the task

of serving you and your children . But, you must answer the personal challenge of maintaining peace and fostering unity and progress .

This is, therefore, an important National Council. I hope the deliberations in the next few days will greatly improve the Party machinery in the interest of the entire Nation.

21

ECONOMIC REFORMS

THE REORGANISATION OF THE NATION'S WEALTH SINCE INDEPENDENCE

A PROGRESS REPORT PRESENTED TO THE UNIP NATIONAL

COUNCIL ON 4TH MARCH , 1972, BY HIS EXCELLENCY, DR K. D. KAUNDA, AS SECRETARY -GENERAL OF THE UNITED NATIONAL INDEPENDENCE PARTY

Since we won political Independence in 1964, it has been the policy of the Party and Government to achieve effective control of the country's economy as soon as practicable. The intro

duction of Economic Reforms in 1968 was in pursuit of this policy.

The main objectives of Economic Reforms were to reorganise the economy from a purely capitalist system of the pre Independence period toone which is more in keeping with the philosophy of Humanism . Another objective was to bring under the control of the Zambian people and Government

most of the economic activities which were hitherto in foreign hands. In pursuit of this objective, certain areas of action were selected . These included the industrial, commercial and agri cultural sectors of the economy. In the public sector, the

transport sector was also to be substantially reorganised to

improve efficiency and to provide better services for the people. Some of the selected areas of action required immediate implementation while others, owing to the nature of the activities involved, required a long -term approach and their reorganisation is bound to take a long time to complete. It

must be appreciated also that even in those areas where im mediate action was possible, it would be unrealistic to expect miraculous results overnight. Nevertheless, the Government has done everything within its power to implement those policy objectives which the Party and the people of this Republic entrusted it to carry out. This has not been an easy task in view

of the long tradition of the system that was inherited and which the Party and Government were determined to revolutionise. Any objective evaluation of the success of this programme must

therefore take this important factor into account. 23

AREAS OF ACTION

There were four main areas of action in the task of revolu

tionising our economic system , namely the industrial, com mercial, agricultural and transport sectors of our economy. These, in turn, were subdivided into different categories of activity , each requiring a specific approach by Government; for example, essential and strategic categories where it was con sidered necessary to entrust their operations solely in Govern ment hands. These are :

( 1 ) Integrated Iron and Steel Industry, (2 ) Fertiliser,

(3) Arms and Ammunition, (4) Public Utilities such as (i) Airways,

(ii) Railways , ( iii) Power,

(iv) Water Supply ,

(v) Telecommunications, (vi) Wholesale Outlets for general goods, building materials, development, financing and banking, etc.

(5) Commercial State Insurance.

There were other categories, which it was considered necessary to expose to various forms of participation by different types of national and/or international institutions. These include the following:

( 1 ) Activities open to Government in conjunction with other governments (i.e. international ventures): for example :

(i) The Zambia - Tanzania Oil Pipeline, (ü) The Zambia - Tanzania Railway . (2) Activities where Government could participate with other governments including national or international private enterprises, for example, the TanZam Road Services. 24

(3) Activities open to joint operations between Govern

ment and private enterprises : for example (i) Mining Development, (ii) Cement, (iii) Building Materials,

(iv) Sugar, Salt, (v) Textiles, (vi) Tannery, International Hotels,

(vii) Fibre bags and sacks, ( viii) Glazed pipe and brick manufacture and ex plosives, etc.

(4) Activities where co -operatives would operate with or without Government participation. These were not

defined specifically by Government but, in practice, they include the agricultural, marketing and construc tion industries.

(5) Activities which would be open only to private enter prises; for example, certain areas of commerce and industry which Government feels could best be left

open to private domestic and foreign enterprises. In the agricultural sector, the following areas of action were

identified for immediate or gradual implementation, such as : ( 1 ) Activities open only to Government participation , for example (i) State Ranches,

(ii) State Farms, around which might be developed co -operative units which might eventually take over control while other state farms would continue under Government control,

(iii) Government demonstration farms.

(2) Activities open to various types of co -operatives, for example (i ) Producers Co -operatives and Building operatives,

( ii) Consumers Co-operatives, (üi) Marketing Co -operatives, ( iv ) Service Co -operatives. 25

Co

(3) Activities open to private enterprises only, such as large-scale commercial farming.

(4) Activities involving mainly traditional village agricul tural units on individual and /or co -operative bases : for example (i) Village Productivity Committee Units, (ü) Village Co -operative Units, (iii) Village Household Units, etc. In the commercial field , certain categories of commercial

enterprises which had hitherto been predominantly in the hands of expatriates were also to be laid open to the Zambian citizens. These have since been dealt with in the Economic Reforms

announced in 1968 , 1969 and 1970, the details of which are dealt with below .

Against this background, the Government took the following steps :

( 1 ) PARTICIPATION IN THE MINING INDUSTRY :

Following the Matero announcement on 11th August, 1969, that it was the Government's intention to acquire a 51 per cent interest in the two main copper mining companies in the country, the two mining companies the Anglo -American Corporation (Central Africa ) Limited and the Roan Selection Trust Limited — entered into nego tiations with Government. Heads of Agreement were

subsequently signed on 24th December, 1969. These Heads of Agreement provided , among other things, for the issue

of Bonds to externalised companies that had been set up by the Anglo -American Corporation and Roan Selection Trust, respectively. The bonds represented 51 per cent of the net book value of the copper undertakings of the two

companies as at 31st December, 1969. These bonds, with a total capital of K210 million as at 31st December, 1969, were later issued by the Zambia Industrial and Mining Corporation Limited (ZIMCO) . ZIMCO is the State cor

poration that was formed to act as a holding company for the Government's financial, industrial and mining invest ments. The terms of the bonds were : (i) 6 per cent per annum interest rate . ( ii) Unconditional guarantee by the Government of the Republic of Zambia . 26

( iii) Redeemable over twelve years in the case of Anglo -American Corporation and over eight years in the case of Roan Selection Trust.

( iv ) Effective date of commencement of redemption was fixed on 1st January, 1970. The present structure of MINDECO therefore stands as follows :

(i) ZIMCO is the holding company of MINDECO . (ii) MINDECO is a subsidiary of ZIMCO and was incorporated on 31st March , 1970.

(iii) MINDECO , while as a subsidiary of ZIMCO , is itself a holding company of two new subsidiaries, namely :

(a) The Nchanga Consolidated Copper Mines Limited (NCCM), and (6 ) Roan Consolidated Mines Limited ( RCM ).

(iv) The 49 per cent companies have also an interest in the above two new subsidiaries of MINDECO to

the following extent : Name of

Interested

Extent

Subsidiary Companies

Agent

% 49

(a) NCCM

AAC

ZCI

RCM

RST

RST , I - Inc.. General Public

(6)

20 16.75 12.25

ZCI

TOTAL FOR RST

49

Commitments. The two new subsidiaries named above

have the following commitments with their respective interested companies : Name of

Subsidiary (a) NCCM

Nature of Commitment

(i) Management Contract (ü) Sales Contract (iii) Purchasing Contract ( iv ) Technical Consultancy Contract 27

With Whom Committed AAC

(6) RCM

(i) Management Contract

RST

( ii) Sales Contract

(iii) Technical Consultancy Contract

(2) CHANGES IN THE MINING LEGISLATION AND TAXATION :

A major step forward was taken in the mining legislation and the taxation system as part of the programme of economic reforms. The following legislation was abolished,

namely, the legislation providing for royalties and copper export tax, replacing them with a single mineral tax based on gross taxable profit. The legislation that provided for privately held mineral concessions was also abolished and the mineral rights were subsequently vested in the State . The objective of this new legislation was to provide an incentive to mining investment, and therefore Govern

ment allowed in its provisions generous allowances. In order to encourage accelerated expansion in prospect ing and exploration by parties other than those that had obtained concessions in earlier years, large areas were

opened under the new act for prospecting by other parties. As at the end of 1971 , some 120 new prospecting and exploration licences were issued to variouscompanies from such countries as the United States, the United Kingdom , Japan , Yugoslavia, Italy, Romania, etc., to prospect for copper, uranium and other minerals. (3 ) FURTHER TAKEOVERS :

During its first year of existence, MINDECO took over 51 per cent participation in the following companies: (i) Kansanshi Copper Mines Limited , ( ii) Zambia Broken Hill Development Company Limited ,

( iii) Baluba Cobalt and Copper Development near Luanshya. (4 ) FURTHER NEGOTIATIONS : During the same period, further negotiations were

completed for the takeover of the following: (i) 100 per cent equity holding of National Coal Board of Zambia which was subsequently re -incorporated as Maamba Collieries Limited, 28

( ii) Kafubu Emeralds Limited , which became a

wholly owned subsidiary of MINDECO . Both these companies became subsidiaries of MINDECO with effect from 1st July, 1971 .

OPERATIONS

Current plans in the operations of MINDECO Group of companies envisage an expansion in production from the

present 670,000 tons of copper to 900,000 tons by 1975 — an expected increase of 230,000 tons in four years, or an average increase of 57,000 tons of copper per annum over the period.

This would have probably been exceeded were it not for the setback caused by the Mufulira Mine disaster in 1970. From reports available it is pleasing to note that a sub stantial amount of this additional copper will be produced at

reasonable cost. This is particularly welcome in view of the adverse factors that the country has recently experienced ,

namely the persistent decline in the price of copper on the world market and the mine disaster already referred to above. Despite

some slight delays expansion programmes are well in hand; for instance Stage I of the Cementation Process at Chingola has now been commissioned ; the Baluba Mine developments are far advanced , and the Chambishi underground development and associated concentrator are at an advanced stage ofdesign .

Other developments within the MINDECO Group which deserve specific mention are : (i) Ore Reserves. Considerable increase in the total ore reserves have been developed by a continuing exploration programme. Thishelps Zambia to main

tain her production capacity and position asone of the leading producers of copper. Currently Zambia stands as theworld's third largest copper exporting country .

( ii) Lead and Zinc Production. With regard to lead and zinc production consideration is being given to extend the life of the Broken Hill Mine at Kabwe

by the introduction of a Waelz Kiln plant. This will make it possible to re-treat materials previously discarded as non -economic and to obtain a higher extraction rate from the same given amount of ore. 29

(iii) Improvement in Workers' Conditions. In keeping with the Philosophy of Humanism, greater emphasis is being placed on the improvement of the working conditions as well as living conditions of the workers in this group of companies. A massive housing scheme is under way with a view to providing better and adequate housing for the workers. Millions of kwacha

will be invested by the group for this purpose. Measures are also being taken to improve the safety of the

workers at the working plant and by the use of modern methods, reduce the dangers of pollution from gases and chemicals used at the working plants. ( iv ) Generation of Secondary Industries and Creation of

Employment Opportunities. It is pleasing to note also that the expansion in the mining industry is now coupled with the diversification of industrialactivities such as the establishment of ZAMEFA for the manu

facture of copper products from copper. Zambia is now in a position not only to export raw copper but also copper products. This diversification is an additional

advantage in that it has created employment op portunities for the Zambian labour force, to say nothing of the skills gained by our labour force . The same development also augurs well for our foreign exchange reserves in that,

(a) Zambia is now able to earn foreign exchange from these exports of copper products ; (6) Zambia could also reduce on imports of copper products, for example, copper cables, and thus conserve foreign exchange.

(v) Small- Scale Mining. In line with Government policy, MINDECO undertakes and encourages small -scale mining in various parts of the country. The main objectives in this matter are

(a) to provide employment opportunities for the people in those parts of the country where these small-scale industries occur ;

(b) to supplement the main copper mineral pro duction by mining other minerals and to bring

into the country additional revenue, and to 30

obtain additional foreign exchange through the

sale of such mineral products as can be pro duced at small mining centres ;

(c) to generate a spirit of self -reliance in our people in the outlying areas of our country .

An excellent example of this is the Chalata Mine at Mkushi which produces various minerals, such as (i) Quartz (silica ) which is used as a rockfill on the mines to prevent floods;

( ii) Silica flour from which is made the scouring powder generally known as Vim ; ( iii) Ochres for paint;

(iv) Wet Ground Mica used as a paint extender ; ( v) Kaolin (white or China clay) for industrial and medical uses ;

( vi) Graphite and Tripoli for industrial use, and various clay products for industrial use . Future Plans in Small - Scale Mining : (i) Consideration is being given to the possibility of opening up the phosphate deposits at Kaluwe in the Rufunsa area.

(ii) A Tin production co-operative is already operating in the Southern Province under the guidance ofMINDECO.

( iii) There are other minerals which occur elsewhere in Zambia which will require to be exploited

under small -scale mining operations while MINDECO concentrates on the main resource

of copper. These other minerals include

graphite , tantalite, beryl, manganese and various clays with industrial applications. CAPITAL STRUCTURE AND ORGANISATION OF MINDECO

MINDECO Limited, as a holding company of the two

subsidiary mining companies, has authorised share capital of K300 million of which K209,905,800 or approximately 70 per

cent of the total share capital has been issued and fully paid. 31

The 51 per cent interest in these subsidiaries by ZIMCO (i.e. in NCCM and AAC ) was acquired in turn for bonds issued by ZIMCO . The bonds are expressed in US dollars and are freely negotiable outside Zambia .

On the incorporation of MINDECO Limited the post of Managing Director was filled by Mr D. C. Mulaisho, a Zambian ex - Civil Servant, who, as in the case of other colleagues in a similar capacity responded extremely well in their new challenge. On the departure of Mr Sardanis from ZIMCO, Mr Mulaisho became Executive Chairman of MINDECO Limited. Because of

the need, however, to bring under closer supervision of all the para -statal organisations by their respective parent Ministries, the post of Executive Chairman was discontinued and the Minister responsible for each para -statal organisation became Chairman and the then Executive Chairman became Managing Director with effect from 22nd September, 1971 . EMPLOYMENT AND ZAMBIANISATION

As at 30th June, 1971 , the MINDECO Group of Companies had 53,000 employees in all, of whom 48,000 or well over 90 per

cent were Zambians. All Zambianisation targets were reached and in many cases actually surpassed . TRAINING

MINDECO has spent some K7 million per annum on training

of technicians, etc., over the period, and it is likely that this will continue or even be improved upon in future if resources permit. FINANCIAL RESULTS OF THE OPERATIONS OF THE MINDECO GROUP OF COMPANIES

The financial results of the MINDECO Group of companies

operations during the year 1971 were most encouraging indeed. The group net profit after taxation was K186.2 million, out of which dividends totalling K88 million or over 47 per cent of the total net profit were paid out to the ordinary share holders of NCCM and RCM after taking into account appropriations for capital expenditure and preference dividends of K66 million

and K0.1 million respectively. These ordinary shares are held 51 per cent by the Company in ‘A’ shares (i.e. to the credit of

MINDECO ) and 49 per cent in B’shares (i.e. to the credit of the private minority shareholders ). 32

Even for our private shareholding partners, these dividends were indeed a very attractive return on their investment. For

re-investment, K66 million or 35.4 per cent of the total net

profit was appropriated to capital expenditure for future expansion of the mining operations. It is hoped that, circum stances permitting, more will be allocated for this purpose in future .

PARTICIPATION IN THE INDUSTRIAL AND MANUFACTURING SECTORS OF THE ECONOMY

On the outset of the introduction of Economic Reforms, the

greatest challenge was thrown to the Industrial Development Corporation whose programme of takeovers had no precedent

in the country. In the years following the 1968 Economic Reforms, the Industrial Development Corporation of Zambia Limited experienced the most dramatic and exciting expansion

in its history and quickly established itself as the foremost industrial group in Zambia, outside the mining industry . By

the end of 1968/69 Financial Year, the Industrial Development Corporation Group's net assets reached a total of K108.1 million , which was nearly three times the figure of the previous year. The Group's net profit at the end of 1968/69 financial

year amounted to K2.9 million, representing 11.5 per cent on total shareholders' equity. From the 1st of April, 1970, the Industrial Development

Corporation of Zambia Limited became a 100 per cent owned subsidiary of Zambia Industrial and Mining Corporation (ZIMCO ) which was established to hold the Government's mining and industrial portfolio . INDECO is a group of over

eighty subsidiary and associated companies. Its net profit at the end of 1969/70 Financial Year amounted to K5,989,000 which was an increase of over 108 per cent on the previous accounting period of fifteen months, and represented a rate of return on shareholders' equity of 13.5 per cent compared with 11.5 per cent the previous year. The net assets of INDECO Limited as at the end of the 1969/70 accounting period stood at K120 million, compared with K108.1 million the previous year.

And more recently INDECO has grown rapidly and has made a substantial contribution to the development and overall

growth of Zambia's economy. It has also played a major role in establishing itself as a fore-runner in State participation. 33

The Corporation's turnover rose from K124 million in 1969/70

financial year to K183 million as at the end of the 1970/71 accounting period. Group profit before taxation went up from

Kil million in 1969/70 to K17.9 million in 1970/71 , a total increase of 63 per cent in all, while the net profit realised by the

Corporation reached an all-time record for the Corporation of K9.3 million compared with K6 million the previous financial year. This increase represented a 55 per cent increase over the previous year.

As already indicated , INDECO is a group of eighty subsidiary and associated companies falling under various sub -groups. These sub -groups include Indeco Breweries, Rucom Holdings, Indeco Chemicals, Indeco Industrial Limited, Indeco Real

Estate and Indeco Trading Limited and Steelbuild Holdings Limited .

OPERATIONS AND DEVELOPMENT

Considerable developments have taken place under the

INDECO wing in the various sectors in which INDECO is a par ticipant. Among these developments are : (i) Car Assembly Plant at Livingstone - Construction of the plant is in progress and it is expected that this will be completed at the end of 1972 .

(ii) Petroleum Refinery at Ndola — Construction of the oil refinery at Ndola is already under way and it is hoped that this too will be completed by the end of 1972. (iii) Glass Bottle Manufacturing Plant — Negotiations have already been concluded for the construction of a glass bottle manufacturing plant to be situated at Kapiri

Mposhi. Apart from creating considerable employ ment opportunities and boosting development in the Kapiri Mposhi area , the establishment of this industry will help the country conserve a lot of foreign exchange which the country is currently losing on the impor tation of empty bottles for various bottled products. The Plant is expected to be in production next year. It is expected that initially, the factory will be capable of producing 20,000 tons of glass bottles per annum and this should be adequate for the time being to meet all our local requirements. 34

( iv) Iron and Steel Project - Investigations have already been carried out on the possibility of establishing an iron and steel manufacturing plant in the country. Fifteen companies from eleven different countries have already submitted proposals for the construction

of the proposed plant and Government is currently considering these proposals. Furthermore, it is

encouraging to note that through pilot scale tests carried out in Norway and Austria, two grades of steel (i.e. mild and low carbon ) and pig iron have been successfully manufactured from Zambian materials .

(v) Miscellaneous Project Investigations — INDECO's De velopment Services Department has investigated

a number of possible new projects including such projects as :

(a) Commercial vehicle assembly ; (6) Manufacture of farm implements ; (C) Yeast production ;

(d) Leather tanning ; (e) Plasticware and various other manufacturing activities .

ZAMBIANISATION AND TRAINING

Right from its inception the running of the Industrial Development Corporation has been placed in the hands of Zambian executives who, it is pleasing to note, have done

extremely well in the management of the various enterprises falling under the Group.

Mr E. A. Kashita, who, until the reorganisation introduced in September last year, was the Executive Chairman of INDECO , is now its Managing Director, while the hon . Minister of Trade

and Industry replaced him as Chairman of the INDECO Group of companies. It is pleasing to note also that in keeping with the policy of Zambianisation, all the subsidiary companies of INDECO are under the control of Zambian General Mana gers .

The rate of Zambianisation is, however, always limited by the

availability of qualified and experienced local manpower. This limitation , added to the scarcity and high cost of expatriate personnel, calls for urgent training programmes. 35

At present, INDECO office alone has sixty candidates under going various courses in Zambia and abroad under the INDECO Bursary Scheme. Greater emphasis is being placed on the

training of accountancy staff inwhich the Groupfaces an acute shortage of qualified staff. REORGANISATION

OF

THE

TRANSPORT

SECTOR

Following the Presidential announcement made on 8th January, 1971 , calling for the establishment of a transport corporation to take charge of all transport responsibilities in the country, the National Transport Corporation of Zambia

Limited was formed accordingly, and was registered as a private company on 8th July , 1971 .

Under the National Transport Corporation of Zambia Limited fall two subsidiary companies (i.e. the United Bus Company of Zambia and Contract Haulage Limited ). Both these sub sidiary companies are held 100 per cent by the National Transport Corporation of Zambia Limited . Contract Haulage

Limited in turn has a 75 per cent interest in a subsidiary company called Freight Holdings Company. Twenty -five per cent minority shareholding in Freight Holdings is held by a

private company, the Commonwealth Development Corpora tion .

The authorised share capital of the National Transport Corporation of Zambia Limited is K20 million . Its two sub

sidiary companies have the following authorised share capital each :

(i) The United Bus Company of Zambia has K3 million authorised capital of which K2,621,836 has been issued and fully paid .

(ii) Contract Haulage Limited had , as at 31st March , 1971 , an authorised share capital of K3 million of which

K822,667 was issued and fully paid. The National Transport Corporation of Zambia Limited also holds, on behalf of ZIMCO , some shares in the Zambia Tanzania

Road Service Limited — a joint venture between the Govern ment of the Republic of Zambia, the Government of the Republic of Tanzania and a private company, Intersomer, S.P.A. 36

The main objective of Government in establishing the

National Transport Corporation of Zambia Limited was to provide, through its subsidiary companies, comprehensive and efficient passenger and freight services right through the Republic and across boundaries . OPERATIONS AND DEVELOPMENT PROGRAMMES OF THE NATCO GROUP OF COMPANIES

( 1 ) THE UNITED Bus COMPANY OF ZAMBIA

Since the takeover, the United Bus Company of Zambia has embarked on a process of reviewing the existing routes operated by the Company. With the arrival of new buses, purchased recently from abroad, it is expected that internal bus services will undergo a considerable reorganisation. A development programme of purchasing new vehicles has already been worked out by the Company with a view to replacing a number of the old vehicles and old equipment inherited from the old Company. Already, 100 new buses have been purchased this year and, thereafter, the company has planned to purchase 100 new vehicles every year up to 1976. In view of the urgency of the need to effect immediate improve

ments to the existing services, the original programme will have several adjustments, most of themfor the benefit of the public, for example : (a) Instead of the planned 94 new vehicles which were to be purchased this year, an additional 100 new vehicles have been purchased for the 1972 programme;

(6) Instead of the planned 100 new vehicles for 1973, it is expected that 140 new vehicles in all will be purchased

in 1973 to accelerate the improvement of services . This programme and other developments will call for a capital expenditure of K6,373,000 during the period of the Second National Development Plan , including (i) K290,000 for additional workshops; (ii) K132,000 for supporting equipment; (iii) K360,000 on training programmes . 37

Employment : It is anticipated that this programme will generate 951 new job opportunities covering the following categories: (i ) (ii ) (ii) ( iv )

8 Executive positions ; 12 Engineering positions; 917 Drivers and Conductors; 14 Chargehands.

Need to Encourage Private Inter -District Transport : The United Bus Company currently enjoys the same privilege concession status that was enjoyed by its predecessor Company, Thatcher Hobson and Company. This privilege , by agreement, expires on 31st December, 1975, and Government is at liberty to renew or not to renew that concession .

In view of changed circumstances, however, and in view of the need to offer an opportunity to Zambian operators to offer

some competition in this sector, it will be necessary to review the near monopoly position now enjoyed by United Bus Company. Care will be taken, however, to give adequate

protection to the large-scale capital investment being carried by the company from any unfair competition. (2 ) CONTRACT HAULAGE LIMITED :

Contract Haulage Limited is an amalgam of the former

Zambia Freight Services and Smith and Youngson Companies. Unfortunately, Contract Haulage Limited has inherited such unprofitable operations that it will take some time for the com pany to operate on a really sound footing. This is because the

previous owners of such operations as Thorntons Transport, Gwembe Valley Transport, Bulwark Transport, Barotse Trans port , Smith and Youngson Cold Storage, C. F. Macrae, etc. ,

had allowed their equipment to degenerate to such a degree that profitable operations are virtually impossible due to very high maintenance costs, especially on the tanker vehicles.

Some steps have, however, been taken to re-equip the Com pany with new vehicles; for example, during 1971 , the following

vehicles were purchased by the Company: (i) Fifty new vehicles were purchased from Fiat, (ii) Twenty - five Mercedes Trucks were bought ; 38

(iii) Six Kenworths were purchased by the Company for the Tanker Division ,

(iv) Six Scanians for the Tanker Division were also bought during the same year.

Development Programme of Contract Haulage for the Next Five Years :

It is envisaged that over the next five years, the Company will require to replace one hundred and twenty -one vehicles . It is also likely that further purchases will be needed in the Tanker Division in order to meet the fuel delivery demands throughout the country Due to the variety of the nature of operations in which this

Company is engaged from time to time ,it is a little difficult to adequately determine the exact fleet expansion required, as this very much depends on the nature of the business that becomes

available at any given period. This is because certain vehicles which may have been quite appropriate for one type of business at one time, may not be equally suitable for another and in such

circumstances, existing vehicles have either to be converted or completely replaced by new vehicles.

Operations Beyond the Borders : In an effort to generate more revenue in the Company and also in order to help reduce the drain on foreign exchange, the Company envisages making appropriate arrangements for its

fleet to transport materials purchased from outside Zambia (e.g. mining equipment from South Africa) into the country. Negotiations have been made to ensure that in future 50 per cent of such transport business is reserved for Contract Haulage

Limited, depending on its capacity , and the rest of the business would then go to foreign operators.

( 3 ) ZAMBIA TANZANIA ROAD SERVICES LIMITED : This Company, in which ZIMCO, through NATCO, holds 35 per cent shareholding, is currently running a fleet of 500 units, but no further expansion is envisaged . This is because we have

to take into account the forthcoming TanZam Railway, whose construction may come to completion earlier than was originally envisaged - a very welcome eventuality indeed. 39

This being the case , only a few replacement vehicles are being purchased, and in another two years, it will be the intention of the Company to run down the size of the fleet considerably . In fact, it is envisaged that once the TanZam Railway is operational the Company may be wound up , the assets being subsequently allocated 50/50 between the National Transport

Corporation of Tanzania and the National Transport Corpora tion of Zambia Limited.

Operations and Financial Results :

As at 30th June, 1971 , the Company realised a net profit of K1 million of which K500,000 was distributed to shareholders

and the balance ploughed back into the Company to finance operations. TRAINING PROGRAMME IN THE NATCO GROUP OF COMPANIES

It is regrettable that the previous owners of the companies

now taken over by NATCO did nothing or very little to train their own staff. With the expansion now going on in all the NATCO Group of companies, the need for training skilled personnel has become even more urgent . The National Transport Corporation of Zambia Limited intends, therefore , to introduce a two-tier training programme for its staff, namely : (i) Company Training, which will cater mainly for the training of drivers, conductors, mechanics and traffic managers , and

( ii) Group Training , which will cater mainly for manage ment and supervisory training. Already, successful courses for staff have been conducted in the past, and now training premises are being obtained for the United Bus Company of Zambia for the establishment of a training centre for the Company as well as Contract Haulage

Limited. The Zambia Tanzania Road Services Limited already have an elaborate institution of their own and they have since

started to take on trainees from sister companies at their institution . 40

CONTROL OF THE FINANCE SECTOR : COMMERCIAL BANKS, BUILDING SOCIETIES AND INSURANCE COMPANIES :

The latest sector to be touched by the economic reforms programme was that related to the control of the Financial

Sector of the economy. As the finance sector plays such a signifi cant role in the mobilisation of the monetary resources of the

economy, it was only logical and necessary that Government should take a direct role in the control of the financial sector if

the economic reforms are to produce any meaningful results in

the long run . To this effect, Government has since decided to participate directly in the business of the financial institutions of the country and subsequently the State Finance and Development Corporation Limited (FINDECO) was established to take care of Government's interests in this venture.

FINDECO was established twelve months ago as a para

statal organisation following the Mulungushi Hall announce ment to the National Council on 10th November, 1970, that Government had decided to establish FINDECO which would

administer the national finance portfolio and to control the financial institutions being acquired by the State . The transfer of control from the previous shareholders to FINDECO is already well under way . FINDECO has a registered capital of K50 million , of which K1.3 million has been issued . The Corporation now forms part of the ZIMCO Group along with INDECO, MINDECO and the

National Transport Corporation of Zambia Limited . Apart from its operations in Lusaka, FINDECO plans to open up branch offices in other parts of the Republic such as Kasama,

Chipata, Mbala, Mongu, Solwezi, Mansa, etc. , in order to provide representation there of banking, insurance, building society and other financial services.

BANKING

It is Government's desire to encourage as far as possible the expansion of banking and credit services to rural areas in tune

with its policy of rural reconstruction for the Second National Development Plan. To prepare for this task , Government has accordingly decided to increase the scope and services of the National Commercial Bank more rapidly than was originally 41

envisaged, and further decided to acquire a 60 per cent share holding in a private Commercial Bank, the Commercial Bank Zambia Limited . With effect from 21st January , 1972, Govern

ment officially became majority shareholders in the Commercial Bank which has now taken its place in the FINDECO Group.

With regard to the remaining private commercial banks, Government took the followingsteps to bring them in line with the policy of increased control from within Zambia : (a) All the private commercial banks, other than those already in participation with Government, were required to be locally incorporated with effect from 31st December, 1971 , and to bring into the country an

additional equity capital of K2 million on incor poration . (6) All merchant banking business carried out through

foreign agencies to cease by the same date and then the merchant banking business to be carried out through locally incorporated commercial banks. This decision was made in order to provide adequate merchant banking business to Zambian commercial banks. The decision has already been implemented by all the institutions concerned . OPERATIONS AND DEVELOPMENTS IN THE NATIONAL COMMERCIAL BANK :

It is encouraging to note that within its short life since

inception , the National Commercial Bank has made tremendous progress already. Since November, 1970, moneys on deposit with the bank from the public have increased from K16 million in November, 1970, to K34 million to date, an overall

increase of 112.5 per cent over the period. Loans have risen from K3 million in November, 1970, to K19 million to date, of which 99 per cent of the loans have been advanced to the

Zambian sector of the economy alone. Lending in rural areas by the bank has increased many times over but its scope in the rural areas is limited by the lack of representative branches there. So far the bank has only one branch in the rural areas at

the moment but it is planned to open up four more branches in the rural areas in 1972, or by early 1973. In the urban areas, three branches of the Bank are expected to be opened along the line of rail during the same period. 42

INSURANCE

At the time the reorganisation of the financial sector was announced a deadline date was set at 1st January, 1971 , after

which no foreign insurance company would be allowed to take on new business in Zambia . All insurance business would , after that date, be conducted through the Zambia State Insurance

Corporation . This target was successfully achieved . OPERATIONS AND DEVELOPMENT INSURANCE CORPORATION :

OF

THE

ZAMBIA STATE

Since the announcement of the economic reforms, all general insurance business has been absorbed into the Zambia State

Insurance Corporation and premium income rose from K250,000 in 1970 to K12 million in 1971. It is further anticipated that premium income will rise from this figure to something like K15 million by the end of 1972. Arrangements are still going on with regard to the finalisation of the takeover of Life Insurance business, and when this has been completed it is expected that

the premium in this category of insurance business will also rise at a rate of K5 million a year.

As a result of increased operations, the number of branches of the Zambia State Insurance Corporation has increased from one to nine since the takeover. These branches are further

supplemented by agencies situated at each major Provincial centre. In addition to the existing branches, which are all

situated on the line of rail, it is planned to open another two branches in the rural areas this year and then another two in 1973.

EMPLOYMENT :

The growth in the insurance business has created several employment opportunities to Zambians. The Zambian staff

establishment of the Corporation expanded from 27 to 389 during the period since the takeover. In contrast, there has been only a nominal increase of expatriate personnel from 3 to 25 during the same period, and this is mainly due to the need

for expatriates with specific skills not readily available locally. BUILDING SOCIETIES

As part of the reorganisation of the financial sector of the economy, Government took over control of all the three building

societies which were operating in the Republic in May , 1971, 43

and merged them into one National Building Society, under the control of FINDECO , a State Corporation . In terms of share holding, it is not possible for Government to acquire shares as

such in the Building Society, due co the Co-operative structure of the Society under the Building Societies Act. Nevertheless, the

creation of the National Building Society and itsplacing within the FINDECO Group has placed the building society movement in a position where the objectives for creating a State Society can be achieved .

The main preoccupation of the Society since the takeover has been to rationalise and streamline the operation of the

three component societies. Although not yet represented off the line of rail, it is planned to open four branches in the rural areas during 1972. One area of operation which the building societies have never gone into in the past in this country , and in

which the National Building Society has decided to participate, is direct participation in the construction of medium -cost houses forsale in an endeavour to help overcome the shortage of houses in the urban centres. THE INDUSTRIAL FINANCE COMPANY LIMITED

The Industrial Finance Company is a wholly owned sub sidiary of FINDECO which provides finance to Zambian businessmen in terms of loans and hire - purchase facilities. The Company has also recently added to its operations a Leasing Finance Division in order to provide this much -needed facility for Commerce and Industry. Although , admittedly, Industrial Finance Company is only asmall company in terms of assets or lending power, it is ,however, one of the most important sources of medium -term financing in the country. During the period since the takeover, K1.4 million has been lent by the Company of which K500,000 has been lent in rural areas and K900,000 on the line of rail .

OVERSEAS PROCUREMENT AGENCY : ALL

COUNTRIES' EXPORTS ( 1971 ) LIMITED : In the past, Government has purchased all its requirements

abroad through the Crown Agents in London . With the intro duction of the economic reforms, however, it was considered

necessary that a locally owned organisation be engaged to procure all Government purchases from abroad . 44

In August, 1971 , therefore, Government acquired the shares of All Countries' Exports Limited (ACE) , and designated it as the State's principal overseas procurement agency operating on

behalf of the Central Supply and Tender Board, Government Ministries and bodies requiring overseas buying facilities . Accordingly, our ACE's London Office has now taken over the work previously carried out by the Crown Agents and is also operating a purchasing office in Hong Kong. The Hong Kong office is also responsible for regulating Zambia's Commercial and Financial transactions with the Republic of China. It is also planned to open up other offices elsewhere in the near future,

and all the three offices abroad will be managed by Zambians. This, then, sums up all the reorganisation of the Nation's economic activities as envisaged in the Guidelines for the Implementation of the Philosophy of Humanism and through out the objectives have not been lost sight of, which were :

(a) to reorganise the economy from a capitalist to a socialist pattern ;

(6) to bring under the control of the Zambian people and Government most of the economic activities which

were hitherto in foreign hands.

There are many other activities which were mapped out for action and which are being dealt with by direct Government Ministries but the above account covers, more or less, all those

activities in which Government had to participate through Statutory organisations. STATE HOUSE LUSAKA

4th MARCH , 1972

45

UNITED NATIONAL INDEPENDENCE PARTY , ZAMBIA

NATIONAL COUNCIL OUTLINE OF THE SECOND NATIONAL DEVELOPMENT PLAN

(Memorandum by His Honour the Vice -President) The National Council will wish to take note of the launching of the Second National Development Plan. The National

Council will recall that at our last meeting, September, 1971 , the Hon. A. B. Chikwanda, MP, then Minister of State for

Development Planning (and now Minister of Health ), submitted a memorandum on the preparation of the Second National Development Plan (SNDP). In the Memorandum and in his

remarks he made very relevant comments regarding the background ofthe planning process in this country, the economy and its reliance on the price of copper , the efforts then being made to formulate a realistic plan for the next five years , and

how various sections of our society were involved, both at regional and national levels, in the formulation of the SNDP. He assured members of this Council that efforts would continue

to be made towards a more exhaustive scheme of broader

consultations of various interests and groups of our society in the formulation of our future plans. As you are aware, this is

necessary if we are to consolidate our participatory democracy which is one of the major postulates of our Philosophy of Humanism .

2. The 1972–76 SNDP was launched by His Excellency the President when he laid it on the table in the National Assembly on the 12th January, 1972, and has since become a public document. In addition to the Plan itself, a supplement to it

has been prepared for easy reference. The Capital Estimates for 1972, which constitute this year's portion of the SNDP, amount in size to roughly 19 per cent or one fifth of the five -year SNDP. However, few copiesonly of the SNDP were produced in cyclostyled form . Consequently copies for distribution to the members of this Council are not available . The Plan is now 47

with the Printers and printed copies should soon be made available. The intention of this Memorandum is therefore to make a summary of the Plan , highlighting its orientation and its main features for the benefit of the members of this Council. I.

STRATEGY OF THE SNDP

3. Top priority is given to rural development so as to improve income and nutritional standards of the population , minimise dependence on imports of food and provide industrial inputs. The SNDP lays emphasis on increase in agricultural output and efficiency of production in the traditional farming

sector as the most direct way to solve the problems of employ ment and income distribution between rural and urban areas.

It aims at the transformation of subsistence farming into market -orientated agricultural production, and towards this

end an Intensive Development Zone (IDZ) programme of rural areas with high natural and human potential for agricultural development will be initiated .

4. In regard to industry and mining, the emphasis on development will be on import substitution through conversion of local raw materials and particularly those which can be supplied by domestic agriculture and mining. The fostering of industrial growth will be carried out keeping in mind the need to improve living conditions in rural areas, reduce drift of population from rural to urban areas and to reduce the income disparities between rural and urban areas .

5. In economic infra -structure, the priority is given to the completion of carryovers, including the Tanzania -Zambia Railway and to the construction of feeder roads with a view to creating marketing facilities in potential agricultural areas. The programme for electric energy will ensure attainment of self-sufficiency and its continuation beyond 1976.

6. Under social infra -structure, education programmes will effectively respond to the demand for primary and higher education, at the same time giving special emphasis to secondary, vocational, technical and professional education in the light of our manpower requirements. In health , priority is given to improvement and extension of these services; and in housing to construction of low-cost housing units to reduce the present backlog. Community development will be fostered 48

by involving people in self-help schemes with the objective of improving the levels of living of the people in both rural and urban areas .

7. With regard to tourism , the Plan lays special emphasis on the development of the tourist potential of the country more intensively. The status of this sector is elevated to a position that could only be second to agriculture. II.

ASSUMPTION AND TARGETS

8. The SNDP envisages a set of targets to be achieved over the Plan period in the various sectors of the economy. A

number of assumptions have been made in respect of these targets, and their fulfilment is contingent, among other things, upon the materialisation of the assumptions. The most im portant assumption is in regard to prices of copper during the

SNDP. The Plan has adopted a cautious approach in this respect in view of recent uncertainties regarding its prices.

The Plan assumes an average price of K740 per metric ton f.o.b. The Plan also assumes an annual rate of growth in population of 2.9 per cent, which is higher than the rate of growth in the

First National Development Plan (FNDP) . The unprecedented rate of urbanisation witnessed during 1963–69 is expected to

decline, although the proportion of urban total population is expected to increase from 27.5 per cent in 1969 to 36.4 per cent in 1976. The rate of population growth and urbanisation is expected to bring into the labour force 67,000 persons every year, of which 37,000 will be in the urban areas. It is expected that a good number of the labour force particularly in the

rural areas would be absorbed as self-employed and unpaid family workers. According to our calculations, the number of wage jobs that may be created during SNDP is 100,000

(20,000 a year) . In addition, several job opportunities are expected to be created in the various small shops, enterprises,

services, etc. , resulting from SNDP projects and the general economic growth in the country .

9. Below I give some of the targets for the SNDP : (i) The Gross Domestic Product is envisaged to grow at an

annual rate of 6.8 per cent during the SNDP, which is slightly higher than the growth rate of 6 per cent achieved in the FNDP ( after eliminating the impact of a fortuitous rise in copper prices) . 49

(ii ) With regard to self- sufficiency the SNDP envisages a target of 7 million bags of maize output. Recent trends augur well for the achievement of this target well ahead of time.

( iii) Copper production is envisaged to increase by 39.5 per cent over the 1971 level of about 645,300 tons.

(iv) Gross value of output of manufacture will increase from K235 million in 1969 to K509 million and net

value added from K90 million to K199 million.

(v) In electric power, the installed capacity is to go up from the current level of about 620 MW to 1,634 MW . (vi) The Plan has drawn up a programme for education . The main targets for this sector are as follows:

TABLE I - ENROLMENTS IN SCHOOLS, UNIVERSITY, ETC. 1972

Primary Secondary

880,300

58,150 4,210 1,752

74,500 9,310

>

Technical Training University

1976

754,100

3,012

(vii) In health , the target is for the provision of nearly

1,000 hospital beds and over 50 new health centres and clinics. Particular emphasis will be laid on spreading medical facilities to the remote areas of the country .

The Flying Doctor Service will continue to expand into remote rural areas.

(viii) The SNDP envisages the construction of a minimum of 70,000 low-cost housing units and the encouragement

of the idea of home-ownership by individuals . III .

INVESTMENT IN THE SNDP

10. The size of the Plan has been fixed , keeping in view two constraints - resources and trained manpower - particularly

in the agricultural and construction sectors. Among other things, the investment outlays have been so distributed, and programmes drawn in such a manner, as (i) to give priority to the completion of continuing projects in the initial years; 50

(ii) to keep to the minimum unproductive investment on buildings and projects of unproven benefit; and ( iii) to give priority to utilisation of institutional capacities

already created and to schemes and programmes aimed at training people in the skills needed in the various sectors.

11. The total outlay envisaged for the SNDP ( 1972–76) is K2,161 million comprising public sector outlay (Government and public sector enterprises like railways, airways, etc. ), of K1,476 million and private sector outlay of K685 million . ‘ Private sector includes para -statal enterprises like INDECO and MINDECO where the Government own 51 per cent

equity capital. The public sector outlay of K1,476 million includes K205 million on account of recurrent account ex

pansion expenditure on development institutions and activities.

Excluding this, the total investment outlay works out to

K1,956 million, comprising K1,271 million public and K685 million private. 12. Of the total public sector investment outlay of K1,271 million, K1,029.1 million represents expenditure by the Government, made up of K680.7 million of budgetary funds and K348.4 million of external finance . Contrast this with the last

of the (pre-Independence ) colonial Plans ( 1961-64) which envisaged spending £30 million only in four years! 13. It was mentioned earlier that the SNDP has given top

priority to rural development. The reasons for this are many. In the first place, if theincreased output in the manufacturing sector envisaged in the Plan is to find a ready market, it is necessary to increase the earning power and thereby the buying power of the rural population . Secondly , agricultural develop ment is essential not only to make the country self-sufficient in food but also to provide raw materials required for industry .

Thirdly, agricultural development will help check the drift of population from rural to urban areas and thus avoid the various problems associated with such a drift.

14. How does the SNDP propose to achieve the objective of implementing rural programmes ? As may be seen from Table II, out of the total investment programme proposed for Government of K1,029 million , investment expenditure to be

incurred by the Ministry of Rural Development is K134 million 51

(about 13 per cent). Although the amount is smaller than that proposed for the Ministry of Power, Transport and Works (K417 million, nearly 40 per cent), the physical benefits expected from the investment in rural development are substantial. Moreover, apart from the direct outlay proposed for rural

development as such, the programmes in respect of other sectors ( including the Ministry of Power, Transport and Works) have been drawn up, keeping in mind the priority accorded to rural development. For example, out of the total investment programme for the manufacturing sector of K27 million, K9 million , or one-third , represents investments with a rural bias. And in respect of health , it has already been

mentioned that the objective is one of constructing more rural health centres and extending health services to the rural areas.

Again , in respect of electricity , the emphasis is on rural electrification and improving services in municipal areas. The transport programmes lay stress on the construction of feeder

roads so as to connect villages to marketing centres . 15. Above all it may also be noted that the SNDP allocates K80 million for programmes to be executed exclusively by Provinces — for locally designated projects. This reflects the basic policy of the SNDP aimed at faster development of out lying rural areas . It will thus be seen that the programmes for SNDP — whether national or provincial-lay great stress on the development of the rural sector. It should also be mentioned that the Plan expects to improve living conditions in the rural areas :

(a) through self -reliance schemes in particular; (b) as a result of two massive campaigns - one aimed at building of houses by the villagers themselves with burnt bricks, and another, the provision of 3,000 bore-holes throughout the country which will provide a focal point for village re - grouping. IV.

FINANCIAL RESOURCES FOR THE PLAN

16. In addition to the estimated investment outlay by Government of K1,029 million and recurrent development expenditure of K205 million, Government will have to find

resources to meet committed recurrent expenditure estimated at K1,375 million for the SNDP . The Plan has called for utmost

economy in expenditure by all Ministries, under all heads 52

(particularly recurrent departmental charges and subsidies). By this means, it is proposed that recurrent expenditure

( committed) must be kept at the level of K275 million per annum .

17.

The total resources that will be required to meet the

recurrent and investment outlays thus add up to K2,609 million. As against this, the total resources available, at 1971 rates of taxation, are estimated at K2,456 million , made up as follows:

TABLE II K million

1. Mineral Revenue : Copper

650

Other Minerals :

20 670

2. Income Tax : 274

( a ) Company (6) Personal

.. 245 -

.3 . Customs Duties 4. Excise Duties 5. Other Revenues

519

207

262 285

Capital Account : (a) Domestic Borrowing

165

(6) External Borrowing

348

Aggregate Budgetary Resources

2,456

18. The estimate leaves a gap of K153 million which will have to be covered through budgetary and non -budgetary

measures . The task in this regard is indeed very difficult and the Minister of Finance should have the sympathy of everyone in his search for solutions. This again highlights the importance of efficient and judicious use of available funds on Plan and

non -Plan schemes, and conscious effort on the part of everyone for maximising the mobilisation of savings. 53

V.

19.

OTHER HIGHLIGHTS OF THE SNDP

The Plan spells out the various measures to be under

taken in the various fields — monetary, fiscal, etc. , in order to maintain a reasonable degree of price stability and also suggests the need for the implementation of an integrated income, wages and prices policy. One chapter in the SNDP spells out policies,

organisational improvements, etc. , which are necessary for efficient implementation of the Plan at various levels and their follow up . An important aspect of this is the recognition of the need forthe preparation of Annual Reviews which will take into account the economic situation as it develops from year to year.

The Plan recognises this as an essential part of the planning process . It states: “ As the economy, and particularly Government revenue, depend much on Copper, the price of which is difficult to predict, the targets of the SNDP cannot be considered fixed and unalterable .' 20 . As Mr Chikwanda pointed out at the last National Council, the SNDP will not succeed without the full and active

participation of our people. Our people helped to formulate the Plan. They must help to implement it. It is, therefore, our duty -all of us as UNIP leaders to ensure that our people clearly understand their role. We should see to it that our people help themselves, especially through local self -reliance or self-help projects. M.M.C.

54

RESOLUTIONS OF THE NATIONAL COUNCIL OF

THE UNITED NATIONAL INDEPENDENCE PARTY HELD IN MULUNGUSHI HALL, LUSAKA, 4th MARCH TO 6th MARCH, 1972 Resolution One :

On The One- Party State Democracy That this Council takes note of the wise and courageous report of the Secretary -General on the introduction of a One

Party Participatory Democracy in Zambia and the appoint ment of the National Commission for the implementation of the same .

In taking note, the Council points out the originality of the proposal, which is that Zambia is one of the few countries on the continent of Africa where leaders of the Opposition Party have

been invited to become members of, and actively participate in the deliberations of, a National Commission charged with the

formulation of the mechanismsof implementing the attainment of a One- Party Participatory Democracy .

It points out that the Nation's priority political need, as of now , is that type of unification which will make it impossible for tribes or any other seclusive groups to polarise around selfish focus points.

The need is for a stern excellence which brings with it a discipline designed to make it impossible for corruption, laziness or ineptitude ever to be features of our society, and thus in this

way neutralise the ambitions of individual politicians or any in high places who may be tempted to trade their personal following to new parties. The channelling of the collective energies of the Nation ; the thought and effort towards solving the real problems which con front it, instead of dissipating such resources in futile party rivalries ; the utilisation of all the talent of the people and the satisfaction and pride accruing to the Nation from the creation

of an indigenous institution tailored to indigenous objectives 55

suited to the country's political, economic, psychological and cultural realities — all are sufficient evidence of the wisdom of

the choice of a direct path to the creation of a One- Party Participatory Democracy in Zambia . In view of the foregoing, Council (a) unanimously adopts the historic decision for the intro

duction of a One-Party Participatory Democracy in Zambia as outlined in the Secretary -General's key statement on 4th March, 1972, in this Hall, and the appointment of a National Commission, headed by his Honour the Vice -President, whose members were sworn in at the High Court on 3rd March , 1972, to

make recommendations necessary to bring about and establish One -Party Participatory Democracy in Zambia ;

(6) urges Government to set an early deadline for the completion of the work of the Commission (without

jeopardising its thoroughness) and submission of its report in order that the country may move forward with determination and firm resolve and not give an opportunity to centrifugal forces to frustrate the endeavours of the Nation to attain its cherished goal;

(c) recommends to the Central Committee of the Party that the Political Sub -Committee, reinforced by the eight rapporteurs representing Provincial Political Com

mittees , be authorised to prepare evidence on behalf of the Party for submission to the National Com mission ;

(d) that the Political Sub -Committee should sit im mediately after this session of the National Council to prepare the Party case ;

(e ) that this Council specifically declares as an article of faith the fact that the process of nation building, especially in its early stages, calls for a firm captain at the helm of the ship of state. It therefore resolves that the Political Sub - Committee clearly adopt, when

considering 'the nature of the Presidency ', theline that this Republic, with its scores of divergent tribes and cultural forms, demands that Dr K. D. Kaunda be

eligible as candidate for Presidential elections for as long as he is fit and is in full command of his powers'. 56

Our inherent political problems and the nature of our

geography do not permit us the luxury of either changing boats or captains in mid -stream ; (f ) exhorts leaders at all levels — in the Party, industry, commerce, agriculture, trade unions and traditional

to rise to higher levels of performance in their duties and warns against the thinking that the introduction

of a One -Party State is a panacea for all our national problems. Rather, the opposite is true in that this will mean more work and dedication ;

(g) finally Council resolves that a countrywide programme of political tours be drawn up to enable leaders at all

levels to tour the country and to explain the principles underlying the introduction of a One-Party Participa tory Democracy, the challenges and the opportunities. Resolution Two :

On Non -alignment This Council places on record its appreciation of the success

of Zambia's policy of non -alignment in world affairs and applauds the manner in which this policy — which is a dynamic embodiment of nationalism and the political attitudes of the

Third World , a rejection of colonialism and that of the pawn -role in the international manoeuvres of East and West - has been carried out .

Council notes that looked at from the geography of the world map, Zambia is a small country. But we are a proud and diligent people. In a practical way , ever since Independence, we recognised that the smaller states of the world had needs

and interests which were not compatible with those of the major powers whose own interests lay largely in the exploitation of others' weaknesses to maximise their own advantage. The courage of our convictions and the high esteem in which

the world has always held our President and Head of State were acknowledged when the non -aligned countries of the world chose Zambia as the venue for their Third Conference in September, 1970 — thereby adding Lusaka to those other

famous and historic sign -posts along the route to non -alignment -namely : Belgrade and Cairo. President Kaunda's role as 57

Chairman of the OAU during one of its most difficult years was a fitting tribute to Zambia's sacrifice and tenacity of purpose in the cause of the liberation of the African Continent and African Unity.

As a result of this policy Zambia today is a country where a Yugoslav can be found working side by side with a Briton, a Chinese side by side with an American , a national from the

Caribbean side by side with a West African, an Italian side by side with a Canadian - and all shoulder to shoulder with

Zambian nationals in helping to build our humanist society towards prosperity. In view of the foregoing, Council resolves— (a) that it be placed on record that our policy of non alignment be pursued now as in the past; (b) that a message be sent to the current Chairman of the

OAU congratulating him on the determination with which he has demonstrated that Organisation's will to press for the liberation of the rest of Africa which is

still under minority regimes;

(c) that our missions abroad be congratulated on the manner in which they have projected the Republic's image abroad and at the same time be exhorted to greater efforts, especially in view of the introduction

of a new style of Government at home which is bound to create enemies abroad ;

(d ) that the liaison between home and our representatives abroad be strengthened and notes with satisfaction that a beginning has already been made . Resolution Three :

On The Second National Development Plan This Council takes note of the successes achieved during

Zambia's First National Development Plan and welcomes the introduction of the Second National Development Plan, with

its emphasis on rural development and reconstruction. While the drift to the towns still continues from our rural

areas , those responsible for planning at the direction of our Government, have learnt thelesson that the best way to stop

the influx from the rural areas to the cities is to take city 58

amenities and opportunities such as employment, economic well-being, training facilities, housing, etc. , which are a necessary

prerequisite to the health and prosperity of a people, to the villages.

In view of the foregoing, Council (a) deplores the over -dependence of some sections of our

population on Government assistance and loans implementing development in the rural areas ;

(6) calls upon the country to depend more on its own man power as a supplement to imported machinery and other implements ;

(c) calls upon all public institutions to set an example in self-sufficiency by putting a proportionate acreage of land under cultivation in order to reduce our reliance on the importation of foodstuffs. Resolution Four : On Economic Reforms

That this Council deplores the failure on the part of some

sections of our population to take full advantage of the Economic Reforms in their entirety .

Notes, for example, the fact that a Government decision to make it imperative on the part of a builder to sub -contract any job to the maximum of K100,000 to Zambians only has been

largely frustrated by the inadequacy of and lack of enthusiasm on the part of Zambian would -be sub -contractors. Observes with regret that to most Zambians the term economic reforms means 'shops, bars and tea-rooms' and not

the wider spectrum which includes contracts, construction, the quarry and sand industry, brick -making, etc. Council therefore resolves -

(a) that a full list of all the areas concerning economic openings which could be used by our people should be published ;

(6) that in granting loans to Zambian citizens Government should do so on the basis of the 'priority of areas' in which the applicant intends to invest that loan and in this way help regulate the flow of loans to all areas of our economy . 59

Resolution Five :

On The Labour Movement The National Council took considerable time to consider the

labour situation in the country and after lengthy discussions the Council

(a) congratulates the Government on the efforts and measures taken to increase employment opportunities

during the period of the Second National Development Plan and notes the various training facilities which are

being made available by the Government; (6) congratulates the ZCTU leadership on the meaningful efforts being undertaken by them to establish and maintain a healthy labour situation in the country which is necessary to raise high productivity in the country ;

(c) appreciates the expressed support of the ZCTU leader ship for the Party and the Government and with the establishment of One-Party Participatory Democracy

the cordial relationship between the trade union movement and the Party should be further streng thened in the interest of the workers in order to defeat

the enemies of man , namely : poverty, hunger, ignorance and disease ;

(d ) urges the Government to consider the recommendations of the Labour Consultative Conference on wages,

prices and incomes policy in order to help curb the rising wages and prices in the Republic.

Resolution Six : On The Code of Behaviour

The Council resolved that in view of the fact that Zambia is

going through a significant metamorphosis that will lead to a One -Party Democracy , the Central Committee should at its early convenience look at this question in order to produce

tangible guidelines of what will be expected of the leaders in the new -look Zambia .

60

(6 ) That the guidelines so produced should be such that the leaders are not placed in a doubtful position where they themselves and their followers do not know what they should do or not do. (c) That the recommendations submitted to the National Council by the Central Committee on the UNIP

( Disciplinary Procedure) Rules, 1972, are hereby approved . Resolution Seven :

On The Soaring Cost of Living

The Council, noting that in view of the soaring cost of living in the Republic and the national desire to correct this dangerous trend , were resolved that

(a) every District Development Committee should estab

lish a permanent sub - committee to be charged with the responsibility to collect information and report to District Development Committees cases of irregular price rates in the District ;

(b ) the Party should actively support the District Develop ment Committee Sub - Committee by supplying all available information on price structure. Proper

Party reports have to be made through Party leaders; (c) people's shops to be owned and run by Government agency one hundred per centum should be established without delay throughout the Republic in an effort to regularise the price structure.

Resolution Eight : On Tribute To The Press

In any given country the positive contribution of all its institutions is most relevant to its constitutional and other forms of development.

The United National Independence Party at this National Council Session between 4th and 6th March resolves that it pays tribute to the responsible and constructive manner in which the Press of the Nation has responded to the needs of the country. 61

Resolution Nine :

On The Banning Of UPP

That this Council views with appreciation the President's decision to ban the former United Progressive Party as it was clear that this organisation was operating contrary to the interests of the Nation . Resolution Ten :

Drunkenness, Road Accidents And Crime

The Council during its deliberations received disturbing reports on road accidents, drunkenness and drug taking, and (a) commends the Government on the steps being taken to discourage drinking and drug taking habits in the

country especially among our young generation ; (6 ) commends the Government on the measures taken to curb road accidents in the country and urges all road users to join the Government in reducing the carnage on our roads ;

(c) congratulates His Excellency the President on the

measures announced by him to contain the rising tide of crime in the country and the Council further requests the Government to intensify efforts in the detection and prevention of crime in the Republic; (d) urges the establishment of a joint committee of the Government and the Party to fight crime and road accidents .

Resolution Eleven : On Tribute To Dr K. D. Kaunda

The National Council resolved that its greatest appreciation and admiration of the manner in which Dr Kenneth David

Kaunda has spearheaded the affairs of the people of Zambia before and after Independence be placed on record . 62

His great courage in times of crisis, his singleness of purpose in championing the rights of the commonman and his broad vision, wise leadership, judgment, integrity and dedication are rare on a continent where vindictiveness is a common

factor among leaders, self-aggrandisement a daily trend , and insincerity most usual.

That in commemoration of his untiring efforts over the period of ten years of leadership between 1962 and 1972 following the attainment of the right of the African people of Zambia to genuine parliamentary participation, a simple copper plate be placed at Freedom House whose wording will reflect the deep

and sincere appreciation of the Nation for his services.

63

CLOSING ADDRESS TO THE NATIONAL COUNCIL BY HIS EXCELLENCY THE PRESIDENT,

SECRETARY -GENERAL OF UNITED NATIONAL INDEPENDENCE PARTY , HELD AT MULUNGUSHI HALL, MONDAY, MARCH 6TH, 1972

In the first place , Mr Chairman, I am sure that the very big applause that you get speaks volumes for the manner in

which you have handled the affairs of this Council not only during this session , but also in the past. I , therefore, wish to thankyou very much indeed for all that you have done for this Council, for the Party and, therefore, for the Nation as a whole. It is not for me, of course, to say whether or not the

National Council will ask you to serve them in this capacity at the next Council; it is for the people who elect you from time to time, to say that. All I can say is that, if the Council can pass a resolution against the term of reference that I gave to the

National Commission about my participation in public life, I see no reason why any one man should be an exception to that rule. We all are bound by the Nation and we must leave that

request entirely in the hands of the Councillors of this important organisation.

Mr Chairman, we now have come to the end of our National Council. It is a National Council, in my view, which marks a

sort of political watershed between the past and the future in which this country is moving under a One-Party Democracy.

This National Council has been unique. Quite frankly, it has been a thinking National Council. Every speaker who has stood up to make a contribution has added a brick to the structure we are building for ourselves and, I am sure , for generations to come.

I, therefore, want to thank you on behalf of the Central Committee, and on my own behalf, for the many suggestions which you individually or collectively in committees have given

us. The many suggestions on One-Party Democracy, for example , will guide us in making our representations as a Party to this very important National Commission.

Your suggestions on other issues will be studied seriously and, no doubt, Ministries will see that the advice is taken into

account in the formulation and implementation of Government policy. 65

I also wish to thank this Council for the directives which

have been given in the form of resolutions at this National Council. They will assist us in gauging the mood of the people not only in this National Council, but in the Nation as a whole.

We are accordingly proceeding with the mandate you have given us to examine ways and means of implementing the resolutions. I hope that it will be possible for me to report on the action taken on these directives .

This National Council has been a resounding success. This must encourage and comfort the faint hearts - people who appear to have no confidence in themselves until victory is clearly on their side. It should now give them sufficient courage

to move forward and make their constructive contribution to the growth of this Nation . The constructiveness of the many contributions in the

National Council during these three days clearly demonstrates the changing character of the National Council. In the years past, a UNIP National Council was generally regarded as an

arena for washing dirty linen, for mud -slinging and many other negative aspects of political organisation . We had , indeed, a very poor reputation. Only the loyalty of our people and their commitment to unity and development sustained us. But,

since late last year, there were clear indications that we had been born anew. At this National Council we have demonstrated

that we are growing into a rejuvenated, dynamic and con

structive Party. Indeed, the cries for an extension of time in which to debate national issues in this National Council are now

completely justified. At no time during the last three days have I felt that any member of the Councilhad wasted time in their contributions. Every contribution really was worth listening

to. We were not speaking to impress, as was the case in the past. We were speaking to make a point of view , to add to efforts in our endeavour to seek solutions to specific problems. Comrade Chairman, this National Council was also different

in another sense . The intrigue and midnight meetings that

characterised the past National Councils were conspicuous by their absence. Consequently, the atmosphere in the National Council has been marked by unprecedented frankness in the exchange of views while an atmosphere of genuine friendship and comradeship prevailed throughout our deliberations. 66

We are united . Let the world know that we are united in our

commitment to the strengthening of peace and democracy in this country and to the promotion of development throughout the Republic.

We have learnt a lot from the reports given by Provincial Ministers in their capacity as leaders of the Provinces. I wish , on behalf of the National Council, to express our profound appreciation for the new initiative which has been taken to

keep the National Council fully briefed on the developments in the Provinces. We must now regularise the procedure in our National Council and make the progress reports from the Ministers for the Provinces a permanent itemon the Agenda of the National Council. In future, therefore, Ministers for

Provinces must submit written progress reports to the National Council. The progress reports must be considered as part and parcel of National Council documents for consideration by the Council during its deliberations. In these progress reports,

attention must be paid to such things as (a) the political situation ; (6) economic development — that is, progress being made on

the

implementation

of various Government

projects, self-help co -operative projects, individual projects which are worth the attention of the Council ;

(c) social development, including education, health , housing, crime, juvenile delinquency and drunkenness. I would include in this , problems of road safety and general welfare; (d) cultural development, a very important aspect of our development;

(e) last, but certainly not least, Party organisation as an instrument of resolving problemsrelating to political, economic, social and cultural development .

It is important that Ministers and their District Governors

in the Provinces report facts which can be checked on the ground. It is no use making extravagant statements about progress if, on checking, the reports are found to be false. We

must lead and not mislead even in presenting our facts to the National Council .

The challenge to our officers in the field is that they must now get down to practical issues of implementing policies in all 67

fields of life, as the National Council will want to know what progress has been made at the next sitting. We must be bound

to a programme of action and work out a method of reporting back to the National Council along the lines I have already outlined .

The greatest challenge that faces this Nation is obviously rural reconstruction . There are specific areas of action which require the attention of every leader whether in the Party or in Government in our rural areas. We have problems of changing

our rural economy from subsistence to a cash economy ; more social services must be brought nearer every village and, indeed,

every home. The Ministers for Provinces have made it quite clear in their submissions about lack of visible change in certain areas of Zambia . UNIP must accept the challenge of trans forming the rural areas as one of the biggest problems that we

face in the Second National Development Plan . But, we organisers in the field must understand and also make it clear

to all our people that the problem is not merely a matter of money . UNIP does not have money to squander on an exercise which is not necessary . We have the purchasing power but

this lies not in money but in giving the people what they need and require in development . This is what any other Party cannot give. The problem therefore is not a matter of human reorganisation in order to increase the capacity of our people to transform their own lives but to work hard, to be clean, to be co -operative in utilising the resources at their disposal as a

collective group of people in each area . Government is willing to assist, but this can be done more effectively if people are working together either in the form of villages or co -operatives. This National Council has passed a number of very important

resolutions.They mean a lotto you and me. They meana lot to the entire Nation. But, the most important single determinant of our success is leadership - leadership in the Party and Government. There can be no doubt that the Party is supreme

in this country. Our supremacy is not self-given . It was given to the Party by the majority of the people,by whose mandate we run the affairs of this country. But, we the leaders at village and section level, at Branch, Constituency, Regional and National level must give the Party's supremacy substance by

leading and not misleading, by working hard instead of lazing around and indulging in rumours. I said yesterday, if UNIP decides to kill rumours, they will be a thing of the past in 68

Zambia. At this point, I must address myself specifically to Comrade District Governors. I am sure you know that you are

very important people. You are our leaders in your districts, heads of the Party as well as Government. Yourtask is, there

fore, perhaps one of the most challenging in Zambia . You are supposed to be in daily contact with the people. You are the

men and women on the spot upon whom Government, indeed the Party, should rely for accurate information , accurate reports on the situation in the district as a whole no matter how

bitter, how harsh the facts might be , as I said earlier. In the past, one has gained the impression that District Governors

were competing for press publicity while little work was being done. We must get rid of this impression immediately. If any have been doing little work in the past, today it must end . When you go back into the field tomorrow , you must be organisers of your fellow leaders in the district. You have your own regional cabinet as I have my Cabinet . With more and more decentralisa tion , you must learn to make decisions based on fact in the

running of your districts. You must be systematic in approach ing your problems. This is the best way of giving the position of a District Governor the better image which this post deserves . If you do not work hard , your image will continue to suffer before the eyes of the public. These may be hard words to say at a time when the National Council has worked so hard. But, unfortunately , the harder you

demonstrate you are working, the more will be expected of you .

This does notonly apply to District Governors, it applies to us all in this Hall, indeed including myself. The responsibility which we have decided to take on our shoulders by accepting the establishment of a One-Party Democracy is very huge, to say the least. Our success in carrying it to the successful conclusion — which we must - will require

unprecedented loyalty to the Nation , unprecedented devotion , dedication and determination in the years ahead . There will be more sacrifices to be made by each and every one of us to demonstrate our sincerity and our commitment to participatory democracy. A One- Party Democracy will not mean less work,

it will mean more work , with the only difference that intrigue and corruption will be reduced . Efficiency and effectiveness in both the organisation of the Party and Government will be increased . 69

Let me now turn briefly to people who have declared their

opposition to One-Party Democracy. I understand that they have declared that they intend to fight to the last man . What ever this means, I wish to make it clear that UNIP does not

want to fight any human being over this issue. We do not want

to fight, we merely want to carry out the wishes of the majority of the people and we will do so. Those who want to fight might as well find a different arena.

I have also heard that there has been a pledge to fight us

‘ underground'. I did issue a solemn warning at the opening of this National Council that Government will take tough measures against any trouble -makers. Those who operate underground may do so provided they do not disturb those who are going about their business democratically and success

fully above the ground. I extend the warning to those who wish to operate underground that, if they should rear their heads above the ground, they will be crushed. This is a state ment of fact and not imagination .

If you are underground you are being warned, whatever you are, that you will be crushed immediately you rear your ugly

head in an attempt to use violence. You must leave decent human beings who are courageous enough to remain above the ground to get on with the job. Mr Nkumbula yesterday told the world that UNIP had paid K2 million to buy ANC members to join UNIP . Comrade Chairman , like you, I have had the greatest respect for Mr Nkumbula and his contribution to the growth of this young

Nation . I said so at our Independence talks in London in 1964. I made the point that the history of Zambia will not be com plete without the name of Harry Mwaanga Nkumbula . I meant it. I still mean it. But, his name as you said, Mr Chairman , would be struck off the list of noble Zambians if he should wish to

create troubles for us on this point. I do not cheat myself that my name would remain in the annals of the history of Zambia if at any point tomorrow , the day after tomorrow , I turned against the wishes of the majority of the people in Zambia. You will have the right to strike my name off the list of Zambians who have struggled for this Independence. I have had the

greatest respect for Mr Nkumbula as an individual, though I know that there are some among his lieutenants who are no more than political drop -outs who cannot qualify for positions 70

of influence anywhere in this country. These are his trouble makers with mercenary motives. For him to suggest that UNIP has spent two million Kwacha to buy ANC members is more

than disgraceful because it is a blatant and despicable lie. Every one of the ANC members who has crossed the floor has

made exactly the same statement, namely, that the ANC is dead ; it has no policy and performs no useful function . It is ANC leaders who have crossed the floor who have said this ,

whether they be MPs, ANC Councillors or ordinary members.

They have said the same thing. And for him to tell this lie to the world that we have had to sink so low as to buy ANC members! In any case , he could only have done that in Zambia. I know of no other African country which could tolerate such nonsense. This is not an empty boast because tomorrow I would ask Mr

Nkumbula to give evidence to this country, to the world , where this K2 million came from . Where it is. Would he produce even a single person who would produce evidence that we bought him or her ? He knows he was using a Government

media to tell a blatant and despicable lie — and he knows it. He knows that he told half the truth of what happened at State House when we were meeting him. Fortunately, I had the good sense to ask one of my young colleagues, Sikota Wina, to be present. What was discussed is not what he said, but that is not important. To me, it is not, because he is only a single individual crying possibly for his seat in Parliament. That is all. Even

now, there are quarrels within the ANC leadership. We have never made any statement about these quarrels. They are not important to us. They, on the other hand, have continued to manufacture rumour after rumour about UNIP in the hope

that they would crack us down. They have dismally failed . The people of this country have now made a decision con firmed by this National Council. We will not sacrifice the interests of the majority of the people of this country on the

altar of the interests of a rumour-manufacturing Party. No. No ! We won't .

The fact of the matter is, that we have succeeded so much

everywhere in this country during the last few years after Independence that the majority of the people do not see any

sense in having the so - called opposition. The Zambian revolution has made such tremendous progress.

But, as in every revolution, there are always counter revolutionaries. Since ours is also a genuine revolution , we are 71

bound to have these counter -revolutionaries ; otherwise ours will cease to be a revolution or a genuine revolution . We have

them. Our enemies will work hard to use them particularly during 1972 and 1973. Their aim is to frustrate our efforts in pursuing our aims and objectives. We must all be vigilant. The situation in Angola and Mozambique where MPLA and

FRELIMO respectively are making good progress demands utmost vigilance on our part. We must stay united . Nay , completely united . We must not despair in our efforts to liberate Africa . In the final analysis, victory for the African people in Angola and Mozambique is for our benefit. It is the greatest security we can hope for in this country. Should the situation continue, Zambia will continue to live in a state of perpetual insecurity. We must continue to give at least moral support to the struggling peoples under Portuguese rule, and to the people of Zimbabwe, Namibia, South Africa and Guinea

Bissau. We know that as a result of our African policy, external forces will continue to encourage counter- revolutionaries in our country.

It is, therefore, the first duty of a leader at village and section level, at branch, constituency and regional level, as well as at the provincial and national level, to know the country, to know the people and to understand the problems. Let us, therefore, now move forward as one people with greater confidence in ourselves so that we can achieve our objectives through unity and co -operation. Let us guarantee peace in every village and section, peace in every town, peace in every

district and peace in the Nation as a whole. Let us use every instrument at our disposal to defeat the enemy and to strengthen the weak and the poor and to strengthen the Party so that it can discharge its obligations to the people. This is our challenge and this is our responsibility. Comrade Chairman , once again , congratulations to you for the way in which you have steered the business of this National

Council session . Thanks to all of you , Comrades , for your contribution . And until we meet at the next National Council, let me take this opportunity to wish each and every one of you, whatever and whoever you are, every success in every endeavour.

Long live UNIP , long live the Zambian revolution , long live the world revolution to which we all belong.

May God bless you . 72

NOTES

STAMPOR

RIES A R B I L 1TUTION

To avoid fine, this book should be returned on or before the date last stamped below 55 M - 3-73-35982

********************** ,3in9 1979 ****************

FOTON LIBRARY ONLY

KO

Printed by the Government Printer, Lusaka

20m 2680 3/72

JQ 2919 A98A35 Mar

1972

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Toavoid fine, this book should be returned on or before the date last stamped below 55M - 3-73-35982

absoluta

FOR WO :

IN

LIBRARY ONLY

stikiniai *** E 3son pisode pinoy

$

!

Printed by the Government Printer, Lusaka

20m 2680 3/72

JQ 2919 A 98 A35 Mar

1972