that depended upon S.T.C. for critical inputs had to curtail
production and some shut down altogether for short periods.
Several local firms, depending upon S.T.C. to carry out their
distritution throughout the country, were forced to undertake
deliveries themselves and others could not supply because S.T.C.
was unable to pay them. Foreign creditors began to receive
payment considerably beyond the 30-90 days credit they had ex-
tended the Corporation and rumours began to spread through
Europe and East Africa that S.T.C. would not be able to pay its
bills at all. Difficulties became cumulative: credit restraints, both
from foreign suppliers of commercial credit and the National Bank
of Commerce, led to further financial shortages and inabilities to
pay bills; orders were cut back but on items which were not over-
stocked; these items were often those producing rapid receipts and
high profits, so their sales losses further cut into S.T.C.’s solvency.

S.T.C. was scheduled to provide a distribution network
throughout the country which would act as a base for the
socialisation of the import and wholesale trades. Its import
divisions were expected to establish a full monopoly over about 40
per cent (in 1969 values) of the country’s imports* by the end of
1972. Its branches, to be established in each main regional and
district town, were to provide distributive outlets, not only for the
import trade but eventually for local products that had no other
public channels through which to reach customers. It was, thus,
expected not only to continually supply the entire country with
goods but to assist the transition from imported to local products
when the latter were available in sufficient quantity. S.T.C. also
had export and shipping divisions and at one point was expected
to form the nucleus for the socialisation of the export and ship-
ping trades as well.®

Although S.T.C. never was a main supplier of consumer goods
to the majority of workers and peasants in Tanzania, it, never-
theless, stood in a critical position in the economy. Much of the
commercial sector of the country was either directly or indirectly
dominated by S.T.C. activities and its position as a borrower from
the banking system caused major financial reverberations
throughout the economy. By 1971 other phenomena began to oc-
cur which affected S.T.C. The Acquisition of Buildings Act was
passed and many Asian retailers, wholesalers and sub-wholesalers
began to leave or make place to leave the country. Balance of

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