OBERSERVATIONS ON GARAN'S PROPOSED LAND REFORM ACTIVITIES (8/27-9/10/69)

PROJECT AIMS AT ASSISTING GERAN TO DEVELOP THE CAPABILITY TO CARRY OUT AGRO-INDUSTRIAL DIVERSIFICATION, MODERNIZATION, AND LAND REFORM. AID/W OFFICIAL DECLARES CONDITIONS RIPE FOR LAND REFORM PROGRAM IN ZONA DA MATA REGION VISITED AND EXPRESSES HOPE THAT SUCH REFORM EFFORTS NOT BE "LOST IN THE OPERATING SHUFFLE OF GERAN." THE AREA POSSESSES ABUNDANT LABOR RESOURCES, RELATIVELY CHEAP LAND, ACCESSIBLE ROADS, AND GOOD CLIMAT AND NATURAL RESOURCES. HIGH FOOD PRICES AND A DEFICIT IN FOOD PRODUCTION SHOULD PROVIDE PRODUCTION INCENTIVES. OFFICIAL PROPOSES AID SUPPORT OF LAND PARCELIZATION AND FAMILIARIZATION OF GERAN AUTHORITIES WITH LAND REFORM MODELS ELSEWHERE IN LATIN AMERICA. HE SUGGESTS THAT A SELECTION PROCESS BE UTILIZED TO OBTAIN PARCELIZATION PARTICIPANTS WITH LABOR UNIONS AND/OR COOPS BEING GIVEN FINAL SELECTION AUTHORITY. GIVEN THE QUALIFICATIONS OF THOSE THEN SELECTED, AID OFFICIAL FEELS THAT MUCH LESS EMPHASIS NEED INITIALLY BE PLACED ON FORMAL TRAINING PROGRAMS. GIVEN ACCESS TO RESOURCES, ADEQUATE INCENTIVES AND A MODEST AMOUNT OF TECHNICAL ASSISTANCE, MOST LAND REFORM PARTICIPANTS SHOULD BE ABLE TO MAKE IT ON THEIR OWN. ONLY A VERY MODEST AMOUNT OF CAPITAL IS RECOMMENDED FOR HOUSING AND ROAD IMPROVEMENTS; MORE MIGHT BE REQUIRED FOR WATER SYSTEMS FOR HOME & LIVESTOCK USE. OFFICIAL RECOMMENDS THAT AID OBTAIN A FULL-TIME COORDINATOR TO HANDLE GERAN QUESTIONS AND AT LEAST 3 TECHNICIANS TO ASSIST GERAN WITH LAND REFORM QUESTIONS: A GENERAL ECONOMIST AND/OR MGMT SPECIALIST; A LAND REFORM POLICY EXPERT; AND AN AGRICULTURAL CREDIT SPECIALIST. OFFICIAL RECOMMENDS CONSIDERATION BE GIVEN TO INITIATION OF AID PROJECTS IN THE AREAS OF PRODUCTION CREDIT FOR SETTLERS, CONSUMPTION CREDIT IN THE FORM OF PL480 FOOD AID, AND A "LAND SALE GUARANTEE" PROGRAM, INDUCING THE COMMERCIAL SALE OF LAND BY LANDOWNERS TO PEASANT ORGANIZATIONS.