Annual Reports and the magazine Jenga.

The Tanzania Tourist Corporation (T.T.C.) is another Develop-
ment Corporation which has a number of Management/Service
Agreements. At the end of 1970, nine of T.T.C.’s hotels and
lodges were being managed by the Hallmark Hotels (Tanzania)
Limited, !° 70 per cent of whose shares are held by Hallway Over-
seas Limited, a hotel management firm linked with the Trust
Houses Group of U.K., the United Transport Overseas, Ltd. and
the Commonwealth Development Corporation

Having discussed the forms let us now turn to a brief discussion
of the reasons behind partnerships.

Why Partnerships?

The multinational corporations have important vested interests
in the ‘third world’ countries. The latter are important suppliers of
raw materials generally and strategic minerals in particular; ex-
panding markets for manufactured consumer and capital goods;
and they are among the Highest profit eamers for the
multinational corporations as is illustrated in the tables below:

TABLE 2: RAW MATERIAL PRODUCTION IN THE
“THIRD WORLD’ AS PERCENTAGE OF WORLD
PRODUCTION IN 1964

Tea 90 Bauxite 59
Coffee 100 Antimony ore 51-52
Cocoa 100 Chrome ore 94
Cotton 42 Copper ore 44
Jute 100 Cobalt ore 72
Natural Rubber 100 Tin concentrates 95

Source: P. Jalee, The Third World in World Economy New Y ork: Monthly Review
Press, 1969).

TABLE 3: PROFIT RATES IN THE ‘THIRD WORLD’ (OF

U.S. DIRECT FOREIGN INVESTMENTS)

Profitability in 1968* in (%)

Asia 32.6
Africa 29.1
Latina A merica 13.3

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