Introduction/Highlights

   A confidential meeting with Somaliland's Minister of Mining and Water, Mohammed Ali Ateye, revealed that Alliance Exploration Inc. of Alliance, Nebraska, holds the concession on Lot #26 which surrounds Hargeisa and runs along the border with Ethiopia (map forwarded previously).  Other prime concessions in Northern Somalia are held by Texaco, Conoco, Phillips, Chevron, Amoco and Agip.  Shell Oil has expressed an interest in setting up an oil refinery in Berbera.

  The concessions held by Alliance and Conoco along the Ethiopian border are generally considered to be the most promising; the area around Burao in Lot #22 (on the border of the Alliance and Conoco leases) is considered the best area within these concessions.

   The Minister further revealed that Somaliland's agreement with the Alliance company is no longer binding due to the inability of Alliance to fulfill certain terms and conditions of the agreement.  He said he would agree to terminate the agreement in favor of Maxus Energy if Maxus is interested in picking up Alliance's concessions.

   The security situation in Northern Somalia is still very tense, with rampant banditry and armed paramilitary groups fighting amongst themselves throughout the country.

Security Situation

   There is virtually no government at present in Northern Somalia.  Armed bands and thieves roam the country at will. Anarchy prevails.  Travel is extremely hazardous and no exploration activities are currently going on.

   The civilian population and all Non-Governmental Organizations (NGO) have been evacuated from the city of Berbera in the northwest, while six paramilitary groups are busy killing each other in the streets.

   The border between Ethiopia and Somaliland is open and indigenous people move freely back and forth, but it would be unwise for strangers to move about in this area without a large armed escort.

   A Red Cross plane with five foreign relief workers aboard was hijacked from southern Somalia to Nairobi by six armed Somalis on 13 May.  The hijackers surrendered after a seven-hour ordeal and no one was injured.

   The use of mercenaries has become a key aspect of Somali life.  Hiring small private armies, or at least private guards, is common in a country ruled by gunmen and plagued by armed bandits.  With car theft a continual problem, vehicles rarely move without at least two people riding shotgun.  For those who can afford it, outriding vehicles stuffed with six or eight gunmen are the preferred security guarantee -- the heavier the armament they carry the better.  Aid workers compare the atmosphere to the cult 1980's "Mad Max" movies.  Toyota Land cruisers and Mercedes saloons mounted with machine guns and bristling with young boys and their weapons scream around the city and countryside.

   An Egyptian diplomat was roused from a quiet evening in front of his video by gunmen who stole his TV, video, all his furniture and an expensive Swiss watch.  Then they came back the next morning and offered to sell the watch back to him.  He agreed, and bought back the watch, but that evening they returned and stole it again.

   The size and scope of the proposed UN security force to protect food convoys is still being debated.  The first deployment of about 50 unarmed observers (25 for each side) to monitor the cease-fire agreement began arriving during the month, but although both factions have agreed in principle to a UN force of about 500 armed security personnel to protect food convoys, they have yet to work out the details of the larger deployment.  Both Somali factions fear the UN plan would amount to interference in the internal affairs of Somalia, and that UN troops might disarm people and shoot Somalis who violate the cease-fire.

Political Situation

   According to Minister Ali Ateye, the political situation in Northern Somalia is "fluid and dangerous."  He said Abdulrahman Tur, the nominal head of government, is not in control of the country.  Tur is regarded by many as lacking in integrity; suspected of working secretly for reunion with the rest of Somalia despite the wishes of the majority of the population who vehemently oppose any form of reunion.

   Other forces undercutting the present impoverished government include financially powerful businessmen and clan elders who wield enormous influence.  They have already forced the government to reduce taxes to zero, totally undermining the government's economic plan.

   An important meeting of government officials, clan elders and representatives of various tribes is scheduled to be held in Somaliland during the early part of June 1992.  The purpose of the meeting is to attempt to iron out differences, work towards national reconciliation and to establish a more viable government.

   The 21-member Arab League, of which Somalia is a member, agreed to an emergency session in January to set up a ministerial committee to contact rival Somali warlords to pave the way for reconciliation talks, possibly in Cairo.  It also agreed to open an account to deposit financial aid and urgent relief assistance.

   Former Somali President Siad Barre, who fled to Kenya last month after his forces were routed while attempting to recapture Mogadishu, has been given temporary asylum in Nigeria.  His eldest son, Ali Mohamed Siad, was denied asylum in Canada due to his crimes against humanity when he was in charge of a prison known as a torture chamber.

Relief Activities

   NGO's, government relief agencies and officials of neighboring countries wrestled with the problem of how to deliver food aid to hundreds of thousands of victims of war, famine and banditry in Somalia.  Relief agencies are worried that lawlessness coupled with the worst drought in 100 years could kill tens of thousands in Somalia unless ways are found to deliver food.  The UN wants to establish "corridors of peace" through which relief organizations could channel urgently needed supplies.

   The UN has come under criticism from relief agencies for not re-establishing a substantial presence in northern Somalia to support the efforts of charities working there.

   Late in the month Somali gunmen who control Mogadishu airport looted two cargoes of Red Cross medical supplies and a consignment of food mix for malnourished children.  The airport was later closed when aid agencies refused a demand by gunmen manning the installations to get a share of the supplies being unloaded there.  This followed an incident in which the British "Save the Children Fund" caved into demands by the same gunmen to share a cargo of skimmed milk powder.  Earlier, the first vessel this year to manage to dock in Mogadishu offloaded food supplies which were then distributed under armed escort to parts of the capital.  The shipment caused a sharp drop in food prices in the capital.

Economic Activities

   The economy is in shambles, but one form of commerce flourishes, and that is the khat trade.  It is probably the only regularly operating commerce in the country, and it imposes its own rhythm on the country.  The khat reaches street markets around mid-day and unfailingly draws hordes of buyers.  By mid-afternoon, most dedicated chewers of the stimulant have had a fix.  Many are gunmen, who become more aggressive under the drug's influence.  Relief workers recognize this and try to limit their movements past midday.