From: barnhart@ddsw1.MCS.COM (Mr. Aaron Barnhart)
Subject: IPS:INDIA: SOUTH AFRICA REMAINS OUT OF BOUNDS TO INDIAN BUSINESS
Date: Sun, 13 Dec 1992 07:32:36 GMT
Organization: Evanston, Illinois, U.S.A.

Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Reference: Trade & Finance; Africa, southern
Title: INDIA: SOUTH AFRICA REMAINS OUT OF BOUNDS TO INDIAN BUSINESS


new delhi, dec 3 (ips/ranjan roy) -- india is caught in a
dilemma between responding to its economic needs and honouring
foreign policy commitments.

while indian businessmen are impatient to be on the bandwagon
headed for south africa which is slowly shedding its pariah
status, a cautious government says it will not jump an
internationally-agreed timetable for dismantling sanctions.

however, both sides know that new markets are crucial for the
success of the government's export-led growth strategy adopted
under a world bank-international monetary fund prescribed
structural adjustment programme.

the quest for markets has become more urgent since the country
lost its biggest trading partner with the dramatic collapse of
the soviet union last year.

indian business fears an export market worth over 174 billion
dollars and the advantage of using pretoria as a springboard into
eight southern african countries may be lost not only to early-
starters in asia but to europe and the united states.

south africa with an estimated 36 million consumers is a
market exporters here say they would not like to lose to other
asian countries like malaysia which has been quietly exploring
closer trade and investment links.

malaysia does not have diplomatic or economic links with
pretoria, but in october malaysian airlines inaugurated a once-
weekly flight from kuala lumpur to johannesburg -- its first
point in africa.

officials at the africa desk in the ministry of external
affairs here say they are flooded with queries on india's
position on the trade ban. india was the first country to impose
sanctions on south africa in 1948 and they are still in place.

''businessmen keep calling up and asking whether india is
about to change its policy,'' a senior official told ips.

negotiations between pretoria and the african national
congress (anc) for ending apartheid have largely removed the
stigma of trading with south africa which has been boycotted by
some 60 developing countries for almost three decades.

arguing for change, jayant bhuiyan, spokesman for the
confederation of indian industries, says: ''sanctions are an
emotional issue. but government should allow trade.'' (more/ips)

india: south (2)

according to bhuiyan, india can earn several billion dollars
by selling a range of products from light engineering goods to
leather and textiles, all among south africa's top 20 imports.

when india pulled out of south africa in 1948, it turned its
back on a market that bought nearly five percent of its total
exports. officials are hopeful that much of that can be retrieved
when the country goes back to business.

south africa has a large indian community. while many among
the one million indians are traders, others are lawyers,
academics and trade unionists -- some of whom strongly influenced
the anc's early struggle against apartheid.

in fact, it was india's independence leader, mahatma gandhi,
who a century ago as secretary of the natal indian congress began
the struggle against white oppression. the congress was a model
for the anc, and has worked closely with it to end apartheid.

india was among the first countries nelson mandela, the
president of the anc which is likely to take over in a new south
africa, visited in 1990 the year he was released from prison.

at a summit in harare last year, leaders from the commonwealth
countries decided to keep the trade ban on south africa in place
till an interim multi-racial government is installed in pretoria.
however, restrictions on travel and a ban on cultural exchanges
have been lifted.

dismissing all talk about lifting sanctions as ''premature'',
mea spokesman shiv shankar mukherjee, affirmed: ''new delhi will
stick to the letter and spirit of the commonwealth timetable.''

meanwhile, eager to come out of isolation, south african
business groups are looking for partners in asia.

the south african foreign trade organisation (safto) will be
taking three trade delegations to asia early next year. india and
the philippines are on their itinerary.

safto's asia director graham limerick was in india last week
to prepare the ground for south africa's first official business
mission. he met over 50 businessmen and urged them to forge
investment, trade and communications links with south africa.

limerick told members of an influential manufacturers forum in
new delhi, ''it makes business sense to be there first.''
(end/ips/ie/rr/an/92)
Newsgroups: soc.culture.african