338104

JPRS-SSA-86-094

12 SEPTEMBER 1986

Sub-Saharan Africa Report

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JPRS-SSA-86-Q94

12 SEPTEMBER 1986

SUB-SAHARAN AFRICA REPORT

CONTENTS

ANGOLA

UNITA Predicts End of Apartheid

(O DIABO, 5 Aug 86) 1

Prospects for Peace Analyzed

(Carlos da Matta; SEMANARIO, 26 Jul 86) .................. 3

Unidentified UNITA Leader on Movement's Goals

(EXPRESSO, 12 Apr 86) 7

UNITA Andrada Captives Describe Ordeal

(J. Henriques Coimbra, Luisa Ribeiro; EXPRESSO, 22 Mar 86) 9

UNITA's Andrada Attack Analyzed

(EXPRESSO, 22 Mar 86) 11

BOTSWANA

Briefs

Expanded FM Broadcast Plans 14

NAMIBIA

Government Standstill Averted, Budget Signed

(THE WINDHOEK ADVERTISER, 1 Aug 86) 15

Cabinet Accepts 'Namibia First' Fishing Report

(THE WINDHOEK ADVERTISER, 1 Aug 86) 17

SWA Bar Council Condemns Ban on Murder Trial

(Gwen Lister; THE NAMIBIAN, 1 Aug 86) . 18

NIGERIA

Briefs

Preservation of Forest Reserves

- a -

20
Road Construction in Kaduna 20

LG Officials Replaced by Locals 20

UGANDA

Ugandan Finance Minister Presents Budget

(Ponciano Mulema; Kampala Domestic Service, 23 Aug 86) .... 22

Briefs

Radio Uganda Upgrade 37

ZIMBABWE

Reserve Bank Moves To Curb Excessive Growth in Money Supply

(THE HERALD, 15 Aug 86) 38

Businessmen Fear South African Backlash

(Michael Hartnack; BUSINESS DAY, 7 Aug 86) 39

Briefs

Barter Deal Signed With Romania 40

Rural Cooperation Agreement With UK 40

Role of People's Militia Praised 41

Expatriate Labor at Hwange Reduced 41

SOUTH AFRICA

AFRIKANER/GOVERNMENT

Treurnicht Says Reforms Creating 'Strife'

(SAPA, 15 Aug 86) 42

Treurnicht on Rajbansi Letter, Church Leaders

(Johannesburg Television Service, 16 Aug 86) 43

De Beer Meets Ministers on Port Elizabeth Schools

(SAPA, 16 Aug 86) 44

Counsel for P.W. Botha Defends Emergency Rules

(SAPA, 19 Aug 86) 46

Minister Advises Political Parties to 'Keep Paths Clean'

(SAPA, 19 Aug 86) 43

Heunis Says Tricameral Parliament Gaining Acceptance

(SAPA, 19 Aug 86) 50

Court Hears Arguments Against Press Restrictions

(SAPA, 18 Aug 86) 51

- b -
Group Areas Exemption Possible for Certain Areas

(Tony Stirling; THE CITIZEN, 15 Aug 86) .. 53

Rightwing Parties Meet in Pretoria

(SAPA, 12 Aug 86) • • • •

54

BLACKS

ANC's Maharaj on Consolidating Struggle

(Mac Maharaj; Addis Ababa Radio Freedom in English to

South Africa, 21 Aug 86)

Radio Freedom Marks 3d Anniversary of UDF

(Addis Ababa Radio Freedom in English to South Africa,

21 Aug 86) '»'...

SOWETAN Editor Projects Continued Police Presence at Schools

(BBC World Service, 21 Aug 86)

56 Briefs

Le Grange: No Journalists Charged

universities 'Silent Majority1 56

Afrikaans Newspapers To Cooperate 56

Natal: 'Guinea Pig' for Government 57

Buthelezi Says Botha 'Not Moving Fast Enough'

(SAPA, 21 Aug 86) 58

Buthelezi Discusses Afrikaner-Zulu Coexistence

(SAPA, 22 Aug 86) 59

People's Army Leader, ANC's Modise Discusses Struggle

(Joe Modise Interview; Addis Ababa Radio Freedom in

English to South Africa, 10 Aug 86) 61

66

ANC Radio Hails SWAPO Struggle #

(Addis Ababa Radio Freedom in English to South Africa,

25 Aug 86) •••

69

Inkatha Support of Vigilantes Against UDF, COSATU Continuing

(WORK IN PROGRESS, No 43, Aug 86) •

73

Inkatha-COSATU Rivalry in Natal Townships Described

(WORK IN PROGRESS, No 43, Aug 86) 76

83

86

Briefs r

ANC Official on Offensive

Bophuthatswana Financial Problems Denied 88

ANC Official on Expelling Offices

Black Employment Statistics

88

88

89

- c
SOCIOPOLITICAL/OTHER

DPSC Member Comments on Release of Detainees List

(BBC World Service, 20 Aug 86) 90

RSA Heritage Being Sold to Foreigners

(SAPA, 22 Aug 86) 92

PRP MP Says University Quotas Do No Good

(SAPA, 22 Aug 86) 94

Commentary Says TBVC States Viable Countries

(Johannesburg International Service, 22 Aug 86) 95

Meeting Opposes Township North Of Johannesburg

(Johannesburg Television Service, 23 Aug 86) ............. 96

Briefs

Report on Detained Children 97

SACBC Protests 'Hardships' 97

Effects of Unrest Reporting 97

Devolution of Power Urged 98

Scrapping of Pass Laws 98

Support of Own Affairs Education 99

ECONOMIC

Sanlam: Sanctions Threat, Lack of Confidence 'Serious Problems'.1

(SAPA, 23 Aug 86) 10o

Reserve Bank Predicts Increased Private Spending

(SAPA, 24 Aug 86) 102

Briefs

Reserve Bank: Economy Recovering 103

Transvaal Colored Business Gets Support 103

Debt, Bankruptcies Figures 103

Trade Relations With Zambia 104

Finance Minister: Payment to IMF 104

Reserve Bank on Rand Depreciation 104

INDUSTRIAL/S&T

Briefs

Transmitters To Extend Services 105

/7310

- d -
ANGOLA

UNITA PREDICTS END OF APARTHEID

Lisbon O DIABO in Portuguese 5 Aug 86 p 18

TTextl "The apartheid system is doomed to destruction and cannot prevail

against external and internal opposition,- said UNITA, in a Central Committee

communique signed by the president himself, Jonas Savimbi.

»We firmly support the entire process of the search for justice and human

dignity," Savimbi added, pointing out that the movement he leads has a long

history of anticolonial struggle which abundantly attests its unshakable

insistence on freedom and dignity for blacks" and also that before the MPLA

took positions under Russian pressure, both SWAPO and the/

an;Af^can

_H^

i_

Apartheid Movement had enjoyed support from and a common front with UNITA.

The communique added:

«UNITA believes that South Africa can find a solution acceptable to its respective peoples. The minimum would be setting up four parliamentary bodies.

As blacks without any hatred whatever for whites and as justice-loving human

beings, we would like to see South African blacks participate actively in the

political life of their country. South African leaders of all races and

political persuasions should seriously negotiate their country's future to

avoid succumbing to external pressures."

Alvor Accords Remembered

Turning now to Angola, Savimbi writes»

»UNITA also wishes to remind the international community that in Angola patriots representing the desire for freedom are being exterminated by the expansionist Russians and Cubans. UNITA is the only force in Angola fighting for

the withdrawal of foreign troops in order to facilitate a national reconciliation conducive to peace. The MPLA, like UNITA, is only one of the factors in

Angolan political reality legitimized by the Alvor Accords signed with the

Portuguese government in January 1975."

«T^WesTmu^not hesitate as it did in 1975 when it yielded to Soviet expansionism in Angola and the Third World. Liberty and democracy, which are indivisible, must not be denied to peoples who deserve them and who are spilling

their own blood trying to obtain them."
ÜNITA Active in Northern Provinces

According to the Central Committee, "in the space of 21 days, the MPLA and its

mentors lost 12 aircraft to UNITA's anti-aircraft defense, including 3 MiG23's, 2 MI-24 helicopters, 1 MiG-17, 4 MI-8 helicopters and 2 MiG-21's in an

unsuccessful attempt destroy the bastion of freedom in Angola."

Intense UNITA guerrilla activity in parts of northern Angola was reported in

another communique from the movement, the most important action being the

taking of two important locations, Vila 31 de Janeiro and Mucaba, in Zaire and

Uije provinces, respectively.

Also in the North, the Kilombo military post near Golugo-Alto, was taken and a

brigade of government forces was routed.

A rebel attack on the local barracks in the capital, formerly Nova Lisboa, in

Huambo Province, was reported and the railroad bridge over the Cuiva River was

destroyed. In addition to these operations, which were carried out between 20

and 23 July, government forces suffered 44 casualties, the communique added,

according to which UNITA suffered 9 dead and 26 wounded.

Another military bulletin reported a bombing mission against the Soviet "advisors'" residence in the city of Luso, the capital of Moxico Province.

MPLA Communiques

PAPLA, the armed forces of the MPLA, also released communiques reporting on

operations that must have been carried out in Moxico Province, but were not

specifically located. According to the MPLA, 172 casualties were inflicted on

UNITA in Moxico.

In the area of psychological warfare, the MPLA, quoting a prisoner, Alberto

Cahanga, reported that UNITA had executed three of its leaders accused of conspiring against Jonas Savimbi.

Also in the area of psychological warfare, Jose Eduardo dos Santos, president

of the Marxist regime, repeating what he has been saying for months about preparations, reported a South African attack on Angola. The insistence with

which Dos Santos has been making this claim has, of course, made it

incredulous in impartial circles.

8844

CSO: 3442/287
ANGOLA

PROSPECTS FOR PEACE ANALYZED

Lisbon SEMANARIO in Portuguese 26 July 86 p 27

[Article by Carlos da Mattaj "Rumors of Peace in Angola"]

[Text] Combat continues in Angola, but both sides are now behaving as if they

would like to negotiate a settlement. In spite of the fact that the "totalitarian allure" is still very strong in the MPLA-PT, domestic factors favoring

peace are gathering strength.

Once again, Angola learned by foreign radio of statements made by Jeremias

Chitunda of UNITA's Central Committee, that MPLA-PT leaders would be willing

to negotiate with UNITA. This is the second time in 30 days that contacts are

being discussed and unlike previous instances, denials have not yet been made.

And if they were, no one would believe them now.

Prior to the second congress of the ruling party in Luanda, an African chief

of state with links to both the Angolan government and UNITA wondered in Jose

Eduardo dos Santos' presence "when negotiations with Savimbi would begin" and

the MPLA-PT leader's replied that he was not yet in a strong position, given

the makeup of the Central Committee at that time, but that he was expecting

substantial changes.

Informed of the conversation, Savimbi reported it in the united States and

raised hopes, which did not rule out continuation of hostilities. Analyzing

both sides' casualty figures in recent months, the monthly average, allowing

for exaggeration, was 200 dead and 400 wounded, which gives an annual figure

of 2,400 dead and 4,800 wounded over the last ten years, with higher figures

in the most recent years.

Initially drafting recruits from rural and suburban areas, casualties are now

also being suffered by urban families who can apply pressure, which, in addition to on-going food shortages, the stagnant economy and continuing uncertainty due to political intrigue and scapegoat policies (anyone can become a

scapegoat at any time), makes many people, including those in the government

and party, lead many to believe that victims of persecution and discrimination

are not few in number.

Through old friends, now dispersed within and without both parties, various

polls on their position on a negotiated settlement have been made. Such

efforts are very useful to send messages and maintain contacts, as is the
case in other African countries, to the point where it is virtually a political institution in many countries.

Pastoral Letters

Thus, in domestic terms, the peace issue has become the topic of the day, and

intense efforts by independent democratic groups over the last ten years (elsewhere one would say dissidents) should now be pointed out. Lacking mass communication means, these groups have unleashed a word-of-mouth campaign that has

now reached large proportions, demanding peace as a precondition for what they

call "democratic development." Pastoral letters of the Catholic Church have

been the greatest stimulus. The result is that talking about peace is no

longer an offense in Angola.

About four years ago, in an interview with the president in Putungo, a small

group of PAPLA officials said that on a number of occasions UNITA acted more

like a regular army in Kuando Kubango Province and PAPLA more like guerrillas,

which led to a situation demanding political action. This statement was

strongly refuted and the situation developed to the current impasse.

Suddenly, the economic situation, which it had seemed would support the war

effort for a long time (even if imposing considerable hardships on consumers)

suffered a great shock when oil prices fell.

The truth is that the MPLA-PT depends economically on 14 Western oil companies,

credit or grants, especially from Scandinavia (the second-largest source of the

country's foreign currency) and medium-term credit for staple food purchases

(mainly in France and Brazil). Militarily, it depends on a large number of

Soviet advisers, their weapons, which have already cost the Angolan treasury

$2 billion, and especially on Cuban troops, while technology is in the hands

of cooperative program workers of various nationalities.

One may well wonder what margin of independence remains in the political area,

a question which is being asked not only by persons opposed to the regime. It

is within the regime itself that the most rational minds are asking themselves

this question.

Extent of Autonomy

Certain factors condition UNITA's autonomy. The border with Namibia and support from South Africa and the united States are vital. The problem, then, is

determining the extent of independence of each side in order to sit down at

the bargaining table, since the desire to negotiate is not only growing in

pro-peace sectors, but also among militants on both sides.

The determining factors are at the international level. The USSR must avoid a

catastrophic withdrawal of Cuban troops and resumption by the West of its

former position in Angola. In this sense—and even a majority of MPLA-PT

leaders go along—an understanding which would minimize UNITA and eventually

integrate it into the MPLA, as was done with parts of the FNLA, would be very

attractive to the Soviet Union. UNITA would only agree to the continuation in

power of the current government during a transition period until elections

could be held.
Cuba, for its part, does not want to be deprived of a situation which is economically advantageous« over ilOO million paid by Angola for Cuban troops, in

addition to lumber from Cabinda, civil construction projects, etc., with

reduced political costs, domestically as well as internationally.

The Cuban presence thus continues to be a consequence of South African intervention, a situation which raises two problems« first, Cuban troops have not

engaged Pretoria's army in some time and second, because it is quite difficult

to determine who intervened first. It is known that weeks before independence,

Cuban and South African soldiers engaged in combat near Catengue (south of

Benguela), which Fidel Castro confirmed during his visit to Angola several

months afterward.

At any rate, it is of little importance to the Angolan people who intervened

when. The important thing is for intervention to cease.

The Cuban Problem

For the united States and South Africa, the essential thing is to remove Cuban

troops, which are considered an unacceptable means of pressure for independence for Namibia and also on South Africa itself. This is why they support

UNITA and the formation of a united Angolan government and their reticence on

UN resolutions concerning the Namibian conflict.

It is in this context, to which must be added the campaign for sanctions

against Pretoria, that the Portuguese government dispatched Azevedo Soares,

secretary of state for foreign affairs and cooperation, to Angola and Mozambique to explain the Portuguese position on the situation in southern Africa,

where almost all the problems are interrelated. Thus, it is still true that

whatever measure or initiative Lisbon takes is always of interest in the

African media and causes great agitation among the Soviets and their allies.

The truth is that the linguistic factor and a mutual history of familiarity between Portugal and its former colonies create a clear animosity against Portutugal and even Brazil on the part of the Soviet and Cuban machine, in spite of

Angola's appreciation of many aspects of President Jose Sarney's recent position. For the government, the Brazilian president limited himself to recognizing the right of a sovereign nation to self-defense, while on the nongovernmental level, it is strange that Sarney condemned the supply of weapons

to only one side in the Angolan civil war.

Portuguese Trump Cards

Be this as it may, the Portuguese secretary of state was heard with great

interest in Luanda at both the president's office and the ministry of foreign

affairs, and it is hoped that Portugal will play its "trump cards" intelligently not only as far as the sub-regions's relations with the EEC are concerned, but also by contributing to the dialogue among all parties to the

conflicts (or is it a single conflict?) in Southern Africa. This would be important at a time when regional conflicts are of concern to the super-powers,

which, everything seems to indicate, should meet again at the highest levels.
We thus have a situation where factors conducive to peace have gained strength,

but key elements in the MPLA-PT for whom the "totalitarian allure" is very

strong continue to exist. Externally, it still does not look as if intervention in Angolan affairs will cease.

Given these uncertainties, the struggle continues with both sides behaving as

if they now wished to find areas to negotiate. PAPLA has not risked large-scale

direct operations, but has tried to disrupt UNITA supply lines and infiltration

routes, and UNITA has stepped up its surprise attacks at various locations in

the country, including certain urban and suburban areas (first Cabinda, then

Buambo).

It is still a long way from rumors of peace to the negotiation table, and great

perseverance will be needed in order for positive internal factors to prevail

over negative factors, particularly foreign negative factors.

8844

CSO: 3342/287
ANGOLA

UNIDENTIFIED UNITA LEADER ON MOVEMENT'S GOALS

Lisbon EXPRESSO in Portuguese 12 Apr 86 p 10

[Text] UNITA rebels in Angola continue to put pressure on the extreme north of

the country, while people are waiting for a large-scale offensive by government

troops on Jonas Savimbi's most important stronghold in the southeast, in

Mavinga and Jamba. The most recent guerrilla attack was on an electrical

generating plant 2 km from the city of Cabinda, which immediately cut off

electrical power, as well as the water supply coming from the Lucolo River.

UNITA's move, which EXPRESSO predicted and which some observers believe was

only possible with at least the tacit support of Zaire (categorically denied by

the Kinshasa government, as in the case of the attack and virtual destruction

of the diamond works in Andrada to the northeast), was an extensive operation

with a psychological impact, as it called attention to the presence of rebels

in the north. It also, however, served as a diversive tactic, to reduce the

concentration of strategic power of the People's Armed Forces for the

Liberation of Angola (FAPLA) in the southern part of the country, where there

may be the battle that Luanda hopes will lead to a certain clarification of

positions, i.e., the final expulsion of rebels from the Jamba base, which they

term "the capital."

One of UNITA's top leaders, who was in Lisbon this week on a "diplomatic"

mission, en route to other European countries, told EXPRESSO that "the MPLA is

still counting on military victory, but it will see after the next offensive

fails that it is no longer possible."

"A Cease-Fire and Free Elections"

This very close associate of Jonas Savimbi (who under the circumstances in

which the statements were made specifically asked not to be identified) said

that he had just left Jamba and, as far as he knew, UNITA was already receiving

significant U.S. aid, particularly in war materiel. "The highly sophisticated

materiel contributed by the United States is not going to continue, it is not

permanent: Reagan wants to see results for his involvement."

It is known from other sources that the emergency military support provided by

Washington to the Angolan rebels is primarily in the form of Stinger

antiaircraft and TOW antitank weapons, which are brought into the interior
through Zaire, even though the southern limit of the Angolan border with that

country is relatively far from the zone which is believed to be the fulcrum of

the expected assault by government troops.

The high-level UNITA leader also referred "to the hope for reconciliation," as

a first step towards establishing a "democracy" in Luanda, which would create a

favorable climate for holding elections throughout the territory. "For

Angola," he said, "we want a minimum of social justice, an African-style

democratic socialism, or in other words, a pluralistic democracy." It is also

understood that the government should be shared with the MPLA-PT, and he added:

"It may seem surprising, but we believe it is likely that the MPLA will agree

to negotiate within a year: we are willing to accept them as a principal

force, but in the context of a cease-fire and free elections."

In his opinion, Portuguese assistance Is important to the future development of

Angola, "but the Cubans must leave the country." As for the kidnapping of

foreigners, the UNITA leader said that, since they are technicians working

under cooperative programs, "whether they like it or not, they are on the side

of the MPLA," and he added that the rebels have already stopped kidnapping

people and their activities are confined—as occurred in Andrada on 1 March—to

capturing and then releasing them. "We take them because we are afraid that

when we attack a place, they may be wounded: the MPLA may take action against

them and blame UNITA."

As for rebel activities in Lisbon, a problem which has created a delicate

situation for the Portuguese government, the UNITA leader maintained:

"Portugal has certain responsibilities vis-a-vis Angola, not as a regime but as

a decolonized country; we must not forget the Alvor agreement providing for

elections to be held."

Still on the same issue, he added: "We do not understand how the MPLA can

exert so much pressure on Portugal. We have more intensive activities in

France, Spain and Germany, we give press conferences and there is no pressure.

We believe that the MPLA has a certain leverage with Portugal."

9805/12379

CSO: 3442/275
ANGOLA

UNITA ANDRADA CAPTIVES DESCRIBE ORDEAL

Lisbon EXPRESSO in Portuguese 22 Mar 86 p 6

[Article by J. Henriques Coimbra, with Luisa Ribeiro]

[text] With salaries ranging from around $20,000 to as high as $80,000 a year

(between 3 and 12 million escudos), the cooperants in Andrada kidnapped by

UNITA on 1 March do no really know what to do with their lives now. Nearly all

of them (there is no news' of 14 who evidently stopped along the way) arrived in

Lisbon Without papers and barely with the old clothes they were wearing when

they left Luanda.

In some cases—i.e., in the case of the workers from Cape Verde and Santo

Tomas—the salaries from Diamang and its subsidiaries were paid half in kwanzas

and half in foreign currency. As for the Portuguese, some have no desire to

return to Angola, but others still hope that things will return to normal

"through diplomatic channels"; they have commitments with banks to buy housing

in Portugal and the risk of losing everything is a threat to be reckoned with.

And what about the possibility of retaliation by UNITA, the foreigners who go

home and come back to "cooperate" With Luanda? A source well informed about

the situation in Angola told us in Kinshasa: "There is no solution, things are

going to continue like this and infiltration in rebel forces and the Luanda

Army will always be a threat to the safety of civilians."

A 60-year old man who was dragged off into the jungle by the rebels after

leaving his wife in Andrada, desperate, did not hide his fury at the inhumane

way in which UNITA took its hostages. His comments did not spare the people

responsible for security at Diamang either: "They just steal and sell

diamonds. They do not need very much security, but they do need honest men to

provide it."

Four Wounded, 18 Children and 2 Pregnant Women

Four Portuguese slightly wounded by "stray" shots when they tried to flee

Andrada during the attack were the most serious victims of UNITA's 196

hostages. There were also 18 children (one of whom was 6 months old) and

2 pregnant women, one of whom almost lost her baby before the kidnapping.
The tragedy—or the adventure, as some prefer to term it—began at 0530 hours

on 1 March, a^Saturday, when "about 1,000 UNITA rebels launched a 7-mlnute

mortar attack" on the outskirts of the community. The more relaxed cooperants

thought that FAPLA was having troop exercises, but then they heard people in

the streets speaking Umbundo, a tongue spoken by most of Jonas Savimbi's men.

According to one of the victims, they then said to each other: "This is it:

We had better start packing our bags quickly!"

Two hours later, with their "baggage" packed without too much rush, they were

on the road "to exile," in a long column of guerrillas on foot or in trucks

belonging to the diamond company. With them, at the head of the expedition,

were 1,500 head of cattle taken by UNITA from the Cossa farm belonging to

Diamang, in addition to 5 kilos of diamonds taken from the town of Andrada.

The foreigners living in Andrada were not expecting an attack, especially not

on that scale. The community is located on an open plain, there is no wooded

area around it, and any approach by the guerrillas would be easily detected by

FAPLA1s military lookouts.

According to what some of the hostages told us, Andrada was virtually

unprotected on that fateful Saturday. The evening before FAPLA had conducted

movements in the region and, they added, "four Portuguese mercenaries, one of

whom was a commando instructor for the Special Angolan Forces, were there. But

when the attack occurred, Andrada had no defense."

One man with military training who spoke to EXPRESSO said that an attack on

Andrada, the "headquarters of choice" of Diamang, was totally out of the

question: **It is an unprotected zone and even the Angolans did not believe

that an assault of this sort was possible." This man, hit by a bullet when he

attempted to flee, was finally captured and had to undergo minor surgery on his

hand without anesthesia, while a bullet lodged in his arm was extracted only

after he reached the Methodist mission at Mussumba, near Capanga, in Zaire,

moments prior to his being handed over to the Red Cross.

Return to Lisbon

The hostages were handed over to the International Red Cross when UNITA started

experiencing logistic difficulties in carrying out its initial plan to make a

long trek of several weeks to the south of the country, necessitating security

"incursions" into Zaire's territory.

From what we learned here in Lisbon from reliable sources who, however,

preferred to remain anonymous, the Angolan rebels called the Red Cross from

their camp in Jamba, using an unspecified international circuit. Portuguese

authorities, who had already been alerted by the report of a UNITA kidnapping

in Lisbon, maintained continuous contact with Geneva and helped resolve the

affair expeditiously, with the decision by Prime Minister Cavaco Silva to send

a plane to Zaire as soon as the situation was such that the hostages, including

the foreigners, could be repatriated. This decision even enabled an Angolan

citizen to be transported to Lisbon, and now he will have to return to his

country through the Luanda embassy in the Portuguese capital.

9805/12379

CSO: 3442/274

10
ANGOLA

UNITA'S ANDRADA ATTACK ANALYZED

Lisbon EXPRESSO in Portuguese 22 Mar 86 p 11

[Text] From the standpoint of the international repercussions UNITA hoped to

create, the operation conducted by the Angolan rebels, i.e., the assault on the

mining town of Andrada in northeastern Angola at dawn on 1 March, has turned

out to be a relative failure. The guerrillas, in fact, did not follow through

on their plan when they kidnapped 194 foreigners (including 94 Portuguese) and

took them out of Andrada, and everything seems to indicate that the Angolan

Army must have prevented them from carrying out their stated goal to lead that

whole column of men, women and children of nine nationalities—including of

course Angolans--to Jamba in the southeastern part of the country.

The UNITA hostages told the press that they had in fact been advised that their

destination was Jamba, and the actual itinerary followed—even though it was

not clearly described by the hostages, who have no idea of how far they

traveled during the 15 days or so of their trek through Angola—seems to ^

indicate that they were moving mainly toward the south. If the guerrillas

initial plan was to cross into Zaire, as occurred on the 15th day, the border

at the Cassai River could have been reached as early as the second day of the

expedition or even sooner, thus reducing the risk of being intercepted by the

People's Armed Forces for the Liberation of Angola (FAPLA), whose cautious

reaction inevitably delayed intervention, thus preventing what could have been

serious consequences for the kidnappers.

The rebels opted for a "strategic exit," forcing the Zaire authorities into a

delicate position involving a conflict of interests, with heightened United

States pressure in favor of UNITA on the one hand, and the "security

agreements" signed with Luanda on the other.

Collusion by Zaire?

According to Angola's official press agency, ANGOP, the withdrawal to Zaire was

forced by direct action on the part of FAPLA, with two very successful

ambushes, followed by a military operation to "recover" the hostages. In view

of the fact that the Luanda government would like to maintain good relations

with the Kinshasa authorities, it avoided making an incursion into Zaire

territory, which could have been regarded as legitimate pursuit of the enemy.

11
The ANGOP agency also said that "the Defense Ministry spokesman stated that he

found it strange that the Zaire authorities did not immediately report the

incident to the Angolan government."

In this regard, it should be added that UNITA not only was not penalized by the

Kinshasa authorities when it handed over the hostages in Zaire, but some of

their men returned to Angola where, it is said, they took the Angolan citizens

captured in Andrada as far as the Jamba base, following the principle that

"Angolans belong in Angola."

A spokesman for Angolan interests in Lisbon told some reporters on Thursday

that Luanda was still hoping for an explanation from Zaire, leaving the

impression that relations between the two countries were quite strained.

Moreover, the Angolan government is convinced that the surprise attack on

Andrada could only have been mounted from Zaire—a distance of some 10 km.

Even if this alleged suspicion on the part of Luanda is not confirmed, the

ease with which UNITA troops crossed the border to hand over the

hostages—despite the fact that it was a "humanitarian" gesture made after

contacting the Red Cross—increased people's fears that the neighboring country

may be helping the rebels. This is a role Mobutu Sese Seko does not claim to

be playing in favor of Jonas Savimbi, who is now putting pressure on northern

Angola, in an area where the most sensitive economic ventures are located,

i.e., oil exploration and mining of precious gems.

As regards diamonds, for which Diamang has the concession, some observers say

that Angola is not in a position right now to draw the full benefit from this

resource. In the first place, because of a reduction in extraction capacity,

and secondly because the market for industrial diamonds is saturated, while

first-rate gems are in some cases smuggled into the Zaire city of Tahikapa

(between Andrada and Kinshasa) to be sold. This city has become one of the

best-known world centers for black marketeering.

A Sovereign "Chieftain"

There are a few rather pronounced contradictions in this case of the hostages

and the column's march across the border with Zaire.

According to reports by some Portuguese after they had been released, it was a

simple Zaire chieftain, responsible for the Kukutan border station, who

convinced the UNITA rebels accompanying the hostages not to continue into the

interior and to leave the foreigners under his guard, as a representative and

agent of his country's sovereign authority.

According to other versions, the guerrillas made the hostages cross the Cassai

River and accompany them, but in a civilian capacity, unarmed, after telling

them that there was "good news for everyone."

It is not altogether clear, however, to what extent the chieftain's posture

held sway over the more veiled intentions of UNITA—which continued to hold the

hostages in Zaire for some time, while FAPLA was claiming to punish the

guerrillas and preparing to advance south towards Jamba.

12
Close observers of UNITA's activities linked to the Luanda regime believe that

"Savimbi's men would never have succeeded in taking the hostages as far as

Jamba." Although this might lead one to believe that Luanda's troops had

already sealed off that guerrilla stronghold, it is certain that UNITA has been

trying to prove the contrary. It remains to be seen, however, whether the

Angolan hostages from Andrada will reach the rebel base or whether FAPLA will

intercept them, striking another blow to the guerrillas' freedom of movement.

There was, however, another problem, which could be fatal to the expected

propaganda gain: With the indiscriminate capture of old people, women and

children, the Andrada kidnapping might turn out to be a disaster with serious

repercussions, in that in the scant 20 days of the expedition through the

jungle, symptoms of malaria and gastrointestinal diseases were reported and,

without stopping for rest and adequate treatment, there could be deaths.

Angolan sources said that the few cases of disease, in addition to the two

people wounded, also were factors in UNITA's decisions to hand over the

hostages to the Red Cross.

You will recall in this regard that the rebels' internal communications system

functioned without any problems, and that they were able to contact the

International Red Cross Committee from Jamba, and the Committee met the

hostages without any delay.

After checking the landing strip in Kapanga, Shaba Province (formerly Katanga),

where the hostages were to be picked up, the Belgian government sent a C-130

plane to transport the hostages; it had to make two runs from Kinshasa, on the

same day that the Lisbon government sent a Tri-Star to bring all the foreigners

to Europe. Besides the Portuguese, the group included 92 Filipinos, 14 Cape

Verdians, 5 Sao Tomeans, 4 British, 2 West Germans, 2 Rumanians and 1 Canadian.

Another group of 14 Portuguese residing in Angola has been in Zaire for days,

and it is not known in Lisbon why they stayed or under what circumstances. The

Ministry of Foreign Affairs did not as of yesterday have the identities of

those Portuguese; it knew only that they had been taken into the homes of some

compatriots who were living in the country. If they should want to return to

Portugal, the authorities would arrange for their repatriation on one of the

next regular TAP flights going out of Kinshasa. UNITA for its part has already

said that it does not have any of the Portuguese kidnapped in Andrada.

9805/12379

CSO: 3442/274

13
BOTSWANA

BRIEFS

EXPANDED FM BROADCAST PLANS—Radio Botswana has started test transmissions

with full modulation on FM in Lobatse. this marks the beginning of the new

expanded FM network in the country in accordance with the National Development

Plan Six. The acting director, Mr P. Makgekgenene, said today that this would

bring into reality Radio Botswana*s transmitter coverage. He points out that

there may be interruptions on the test transmissions until the final

commissioning has been completed. The FM network could eventually be extended

to cover most major villages and towns providing a good Radio Botswana signal.

The immediate proposed sites are Jwaneng, Lobatse Mahalapye, Serowe,

Francistown, Orapa, Maun, and Ghanzi. Installation at a number of these

villages and towns is in progress while others are awaiting for public

electricity supply only. Until now Gaborone and Selebi-Phikwe have been the

only two places with an FM signal. Mr Makgwkgenene said there will also be a

number of (GAP) fillers in the future in order to make sure Radio Botswana

broadcasts on FM reach all major centers. The new transmitter for Lobatse is

on 98.6 MHZ and the broadcast is in stereo FM. It has a service area of up to

Kanye inclusive of the surrounding villages and the Hinterland within a 50 km

radium. The public in the area is asked to listen and given some feedback.

Comments should be sent to the chief engineer, Radio Botswana, Private Bag

0060, Gaborone. [Text] [Gaborone Domestic Service in English 1610 GMT 18 Aue

86 MB] /12913 S

CSO: 3400/431

14
NAMIBIA

GOVERNMENT STANDSTILL AVERTED, BUDGET SIGNED

Windhoek THE WINDHOEK ADVERTISER in English 1 Aug 86 pp 1, 3

[Text]

THE 1986/87 NAMIBIAN budget was

signed last night after a day of high drama

which nearly saw the Territory's funds

frozen and the Transitional Government

on the brink of constitutional collapse.

Government employees and

businessmen with government

contracts heaved a huge sigh of

relief after the decision, which

could have had severe economic repercussions.

Two cabinet ministers, Mr

Moses Katjiuongua and Mr

Andreas Shipanga, lodged an

urgent application with the

Supreme Court to try and prevent the AdministratorGeneral from signing the

budget, which had to be ratified by midnight last night.

A full bench of the Windhoek Supreme Court said it

was not in a position to grant

the application.

In his ruling, Mr Justice

Hans Berkersaid to prevent the

Appropriation Act (which empowers the budget) from becoming law would have certain

consequences which could not

be remedied afterwards.

Mr Justice Ken Bethune and

Mr Justice Johan Strydom

concurred.

By law, the budget has to be

signed by July 31.

In an affidavit emphasizing

the urgency of ratifying the

budget, Cabinet chairman Andrew Matjila said if it was not

signed "tens of thousands of

employees" dependent on

their salaries would be affected.

Further, the government was

obtiged to maintain the infrastructure to deliver certain

emergency services "which can

only be rendered if funds are

made available from Central

Revenue funds".

And; according to other evidence, the second tier authorities would have had their funds

cut off from today, while

government instances would

have have been unable to fulfil

financial obligations to private

contractors.

Counsel for Mr Shipanga

and Mr Katjiuongua, Mr Jeremy Gauntlett, submitted that

if the application was refused

at this stage it would be impossible to recover money paid by

the state in terms of the appropriation, should a subsequent application succeed in

setting aside the signed act.

The two ministers tried to

prevent the signing of the

budget on the grounds that the

allocation of funds in terms of

AG 8 was discriminatory.

Respondents were the

i Administrator-General Mr

louts Pienaar and cabinet

15
ministers Dirk Miiclgc, Andrew Matjila, Fanuel Kozonguizi, Dawid Bczuidenhout,

Eben van Zijl and Hans Diergaardt.

It was strongly rumoured

yesterday that ifthe budget was

frozen, Mr Pienaar would have

been forced to take over the

reins of government.

When the case got underway

yesterday, the Administration

for Whites entered asa third

party.

Represented by Mr Sagrys

Grobler, they maintained the

Administration hada material

interest in the dispute and

should be joined in the court'

action.

It was also submitted that all

the second tier authorities, and

the Reboth administration,

should be allowed to be heard

in the matter as they had immediate and direct interest in

the case.

Their funds would have been

hit from today, if the application was granted.

This was agreed by all sides.

In his ruling and during

proceedings yesterday, Mr

Justice Berker repeatedly said

that the court had been placed

in "a virtually impossible...and

unenviable situation".

"We are being forced by both

sides to makea decision

without having the opportunity to hear all the parties (to the

dispute)...a principle of law!'

Mr Justice Berker said it was

with considerable regret that

they were forced into the posi- > tion of not hearing full argument on the matter because of

the shortage of time.

"The only practical course

in this matter is to refuse the

application at this stage!' he

said.

Balance of convenience had

been an important consideration.

Mr Justice Berker said "very

important issues had been

raised, fundamental issuesthat

arise from the Bill.of Rights

and its relation to various

acts". A final decision on some of

these issues could not.be taken

immediately, he said.

"They would require further

clarification and possibly further evidence," }

Costs will be decided a)a

later stage.

Mr Shipanga and Mr Katjiuongua told The Advertiser

afterwards that they had already given instructions to

their attorneys to proceed with

another application seeking to

declare unlawful the act after it

had been signed by Mr

Pienaar.

"As far as we are concerned, • this is round one|' Mr Shipanga said.

/9274

CSO: 3400/443

16
NAMIBIA

CABINET ACCEPTS 'NAMIBIA FIRST' FISHING REPORT

Windhoek THE WINDHOEK ADVERTISER in English 1 Aag U f>

[Text] WIDE-RANGING policy changes aimed at the restructuring and increased Namibianisation of the Territory's fishing industry are recommeded in a report

which was accepted by the cabinet yesterday.

Entitled "Report over the The unresolved internationConservation and Exploita- al status of the Territory reaption of SWA/Namibia's live

marine resource" and signed

by the Director of Sea Fisheries, Dr Jan Jürgens, the recommendations were compiled by

a panel of consultants starting

on December 10, 1985.

The report emphasises the

need to redirect as much of the

industry as possible into

Namibian or Namibianregistered hands and to increase the control and participation of the Territory's public

and private sector in what was

historically a foreign based industry.

Essentially the recommendations aim at maximising the

control and rights of the

Namibian authorities over

fishing zones, research, control and inspection and the allocation of fishing rights.

Key recommendations

touch on a number of sensitive

international issues like the

delitnination of economic

zones between South Africa

and Namibia - the exploitation of our resource by foreign

fleets and the quotas allocated

to them by The International

Commission for South East

Atlantic Sea Fisheries

(ICSEAF).

pears continually as the most

frustrating block to a final solution.

' Once the reportis tabled and

discussed, diverse reactions

can be expected from interested groups in the industry.

The recommendations deal

with the following issues in

respect ofthe white fish, pelagic, line fishing, trawling and

crayfish industry:

• Territorial rights to maritime and fishing zones with

special emphasis on the South

African owned islands along

the Namibian coast line.

4 Theroleofthelnternational Committee for South East

Atlantic Fisheries (ICSEAF).

• Control and management

mechanisms.

• Utilisation of the resource

and industrial infrastructure.

• Marketing.

• Labour force and training.

• The role of private boat

owners and factories and conditions for the allocation of

quotas.

• Resource management and

trawling.

• The role of Walvis Bay.

• Allocation of fishing and

processing rights and the duration of such rights.

• The allocation of access to

the resource with special emphasis on SWA/Namibian

residents.

/9274

CSO: 3400/443 17
NAMIBIA

SWA BAR COUNCIL CONDEMNS BAN ON MURDER TRIAL

Windhoek THE NAMIBIAN in English 1 Aug 86 pp 1, 2

[Article by Gwen Lister]

[Text] THE SWA BAR COUNCIL has condemned the termination of criminal proceedings against four

white members of the South African Defence Force

by the South African State President, Mr P W

Botha, and the Cabinet of the Interim government,

saying It constituted 'a gross breach of the Rule

of Law and the rape of Justice in this country'.

Widespread condemnation

followed the 'issue' of the certificate, and the SWA Bar Coun-.

cil, the Anglican Diocese, and

Roman Catholic Church, have

already registered their shock at the

move.

The Bar Council, chaired by Mr

Bryan O'Linn, said in a press statement yesterday that it had taken

note of an administrative act purporting to be in terms of Section

103 ter (4) of the Defence Act 44

of 1957, in terms of which the

criminal proceeding against four

white members of the SADF by the

Attorney General of Namibia for

the alleged murder of Mr Frans.

Uapota, a black Namibian in northern Namibia during November

1985, was immediately terminated.

The Bar Council registered

'shock' at the action by the'

Government of South Africa and

that of Namibia as they once again

'not only makes a mockery of the

socalled Bill of Fundamental

Rights and Objectives incorporated

in Proclamation R101 of 1985 ...

but constitutes in general a gross

breach of the Rule of Law and the

rape ofjustice in this country which

bodes ill for the future of all

Namibians'.

They pointed out the action was

taken in terms of a 'notorious and

draconion part of the law' which

was in stark conflict with any Bill

of Fundamental Rights in civilised

countries and which remained

unamended, 'notwithstanding

strong and valid appeals for its

amendment by our Bar Council

before the Van Dyk Commission

on Security Legislation'.

'Even though the Van Dyk Commission report was submitted to the

government already in 1985, it has

not been made available to the Bar

Council or to the public and security laws, such as Section 103 ter of

the Defence Act 44 of 1957, still

| reign supreme', the statement said.

The law inter alia empowered the

government to prohibit any legal

proceedings against persons who

committed the act, included acts of

murder and robbery, when such act

has been, according to the State

President, 'advised, commanded,

ordered, directed or done in good

faith ... and that it is in the national

interest that proceedings should not

be continued'.

The provisions prohibit any

court from reviewing, setting aside,

or declaring void or otherwise question the validity of the Certificate.

18
/9274

CSO: 3400/443

The Bar Council added that in

this case the Government 'chose the

most arbitrary and objectionable

option provided for, nullifying the

decision of the Attorney General to

prosecute in the name of the Sts'--

on charges of murder and witt> ;t

co" • Iting the Attorney Genet • in

the matter and ousted the Coi'.tts

jurisdiction altogether'.

No reasons or explanation had

been given for this action, and since '•

the law did not prohibit the giving

of reasons, the 'failure to do so in

the circumstances of this case isa

further insult and injury to the

dependents of the deceased, the

judiciary, the courts, the Attorney

General, the legal fraternity and the

citizens of this country*.

It added that since the courts

were prevented from establishing

the truth, 'we have no reason to

doubt the chilling account given by

some witnesses for the purpose of a civil action against the Cabinet of

the interim government and the

Administrator General'. ......

The Bar Council then proceeded to relate a summary of the circumstances which led to Mr

Uapota's death, and in which it

was alleged that Mr Uapota and

others were 'kicked and beaten' by

members of the SADF.

The Bar Council further expressed dismay at the fact that 'the

government has not thought it fit

to express its regret at the killing of

an innocent man and to apologise

to the wife, dependents, relatives . and friends of the deceased and to

make amends to the dependents'.

They said they knew of 'no

reasonable ground' for the contention that the issuing of a certificate

to prevent the murder trial, was in

the national interest, but instead

believed 'we have herea cover-up

in its most naked form'.

Meanwhile attorneys for the

family of the deceased have confirmed that an application to set

aside (he certificate was presently

being considered.

• i.

19
NIGERIA

BRIEFS

PRESERVATION OF FOREST RESERVES^Borno State Government has suspended issuance

of settlement permits In grazing and forest reserves in a bid to check destruction of such reserves by those in search of farmlands and wool. Commissioner

for Agriculture, Malam Umar Abba Gana said at the launching of tree planting

campaign in Biu that the rate at which the reserves were being damaged was

alarming. He said if this trend was not halted, its consequences on the economic development of the local government and state would be grave. Malam Umar

stressed the importance of forest plantation which he noted was of immense benefit to the community at large. He appealed to the people of the area to assist

in checking indiscriminate felling of trees and advised that reasonable number

of trees be allowed on farms and other agricultural projects. Over 3,000 tree

seedlings were planted during the launching. [Excerpt] [By Abdullahi Idris]

[Kaduna NEW NIGERIAN in English 5 Aug 86 p 12] /9274

ROAD CONSTRUCTION IN KADUNA—Kaduna State Directorate on Foods, Road and Rural

Development has begun the construction of roads in four local government areas

of the state in consonance with the Federal Government directive. The Commissioner for Works and Transport, Alhaji Usman Abubakar, told the NEW NIGERIAN

that a total of 1,235 kilometres of road would be developed in 14 local government areas of the state. He said the state government had received over three

million Naira from the National Directorate as part of the instalmental payments for the execution of the projects in rural areas. The commissioner

stressed that road construction by direct labour had begun in Katsina, Daura,

Mani and Kankia under the responsibility of divisional engineers of the Ministry of Works and Transport in each of the local government areas. In addition,

he said, the raod linking Basawa with Samaru village in Zaria Local Government,

together with the construction of a major box culvert had been undertaken. The

commissioner said 26 kilometre-road undertaken by direct labour in Katsina

Local Government included Katsina-Dutsin Safe-Daga Riko roads. He said about

40 kilometres of road construction in Daura Local Government had also commenced. It includes Baure^Hu'i^Yarmanlu-Shado road. Alhaji Abubakar said the

29 kilometres of road in Mani Local Government linking Daro-Bindawa-Cheranchi

was in progress, [Text] [By Sulaiman Gambari] [Kaduna NEW NIGERIAN in English

9 Aug 86 p 16] /9274

LG OFFICIALS REPLACED BY LOCALS-^All the 10 top civil servants in Ogun State

who have been posted as chairmen/administrators of local governments are to be

withdrawn from their positions, the Commissioner for Local Government and Community Development, Mr, Tebun Fagbemi, has said. Also the civil servants are

20
to be replaced with non-civil servants who are indigenes esrtheir respective

local government areas, Fagbemi also said. Fagbemi was answering questions

from newsmen in Abeokuta yesterday when he held a conference on she activities

of his ministry. The policy to withdraw civil servants as chairmen and replaced them with indigenes who are non-civil servants, he revealed, was a

directive of the Federal Government based on the white paper on local govern^

merit reforms. According to Fagbemi the state government could soon mate a

major pronouncement on the issue, adding "the new policy was, however, directed at ensuring full participation of indigenes in the activities of all local

government areas." [Text] [By Lekan Yussuf] [Lagos DAILY TIMES in English

6 Aug 86 p 13] /9274

CSO» 3400/156

21
UGANDA

UGANDAN FINANCE MINISTER PRESENTS BUDGET

EA232119 Kampala Domestic Service in English 1122 GMT 23 Aug 86

[Budget speech by Finance Minister Ponciano Mulema in Parliament Building,

Kampala—live]

[Text] Mr Chairman, Sir, I beg to move that the National Resistance Council

[NRC] do resolve itself into a committee of supply for the consideration

and approval of the budgetary proposals for the fiscal year 1986-87,

estimates of revenue and expenditure.

Mr. Chairman, Sir, the economy of Uganda has been troubled for the

[as heard] 15 years, by economic mismanagement, during the seventies

it was not even possible to assess the extent of this mismanagement in

statistical terms, because the entire administrative system had almost

ceased to function. Even when the military government was overthrown in

1979 the economy could not recover because of the insecurity that prevailed,

misallocation of national resources and lack of guidance and direction.

Mr. Chairman, between 1972 and 1979 the economic conditions forced

Ugandans to move away from production to commerce and services, where these

were still possible. During this period therefore, little production

for export took place, although production of coffee continued somewhat

because of the very nature of the crop, while other exports, like cotton,

suffered from substitution effects as people switched to production of

locally consumed commodities and prices rose steadily in response to the

declining value of the shilling. Mr Chairman, this low level of production,

both in agriculture and industry, was reflected in the trends of GDP

[gross domestic production], but we have tried whenever possible to get

reliable statistics. Such figures as we now have are [word indistinct]

rough estimates based on the few statistics available and lots of assumptions.

Between 1978 and 1980, Mr Chairman, there was a further marked drop in

GDP as a result of the war that was taking place then. And although GDP

recovered somewhat between 1980 and 1983, most of the recovery was accounted

for by increases in commerce and government services, since even during

that time, production remained very low. Rough estimates indicate that

real GDP declined by 14 percent between 1978 and 1980. And while there

was a recovery of about 17 percent between 1980 and 1983, GDP further

declined by 10 percent between 1984 and 1985. During 1985 it is estimated

that GDP fell by 5.5 percent. The monetary economy showed a decline of about

3.9 percent during the same period, while the nonmonetary sector could have

declined by up to 8 percent.

22
Mr Chairman, it is not possible to get accurate figures for the nonmonetary

economy in absence of detailed statistics. The decline in this could have

been moderate or substantial, but it can be assumed that as a result of

massive smuggling that was taking place all along our borders, the decline

in production in the peasant economy could have been more apparent than real.

Government is making arrangements to have a crop census followed up with

regular periodic reports compiled from down at the parish level to

ensure better planning in the forecasting in future. Because of political

instability in the security situation which existed in 1985, it can

reasonably be assumed that output in both agricultural and manufacturing

industries, where these were still in operation, was not substantial.

Certainly in the industrial sector, the industries did not only lack funds

to purchase raw materials and capital inputs, but lacked working capital

as well.

Prices and monetary development: Mr Chairman, there have been very high

increases in prices in this country between 1980 and now. The reasons can

be analyzed in terms of supply and demand. On the supply side, the economy

has faced problems in terms of the distribution of food and the production

of manufactured items. Although Uganda has the capacity to produce large

quantities of commodities for local consumption and export, we have

continued to face transport bottlenecks and absence of appropriate marketing

arrangements. In the past 15 years, the problems have been aggravated by

conditions of insecurity mainly created by the behavior of governments in

power themselves. This make it difficult for food which could have been

produced in large quantities to reach the markets. In the industrial

sector, production of goods was always too small to meet domestic demand.

The reasons for this are clear. The industries were poorly managed,

lacked working capital, and could not even get sufficient foreign exchange

for raw material imports and spare parts. The situation was made worse

by the financial program approved by the Obote government and supported

by the IMF. That program was principally aimed at management of demand

without doing much about supply. The industrial sector, therefore, either

stagnated or some industries simply stopped operations, because current

devaluation» which was the principle monetary instrument in this program,

made it impossible for industries to operate, since the cost of imported

raw materials and spare parts progressively increased without corresponding

increases in these industries working capital.

While the financial program adopted concentrated on imports and consumption,

this did not substantially affect the internal price levels, because

considerable quantities of the consumer goods imported were either smuggled

out of the country or foreign currency approved for such goods was diverted

to other purposes abroad. The result was that the consumer goods such

as shoes, bed sheets, blankets, clothes, sugar, soap and others remained

in short supply and therefore attracted very high prices.

On the other hand, Mr Chairman, the financial program failed even in this

respect, not withstanding its main preoccupation with demand management.

23
The governments were not particularly disciplined and therefore expansion

in money supply was rapid, simply to finance unplanned—and in many cases

irregular—government spending. The government's deficit therefore

continued to widen and the resultant inflation was particularly damaging

to the economy, especially as it was financed by borrowing from the banking

systems, and the Bank of Uganda in particular.

In addition to growing government deficits to finance consumption and

services, a large proportion of bank credit went to finance commercial

activities and speculation. Even where production was possible, credit

to finance it was not available in banks, because there were more profitable

ventures in commerce and speculation for banks to finance. The financial

institutions therefore ignored agriculture and industry, because they

did not pay as well. This government is determined to reverse this trend.

Mr Chairman, some of the measures that have been already taken to correct

this unhealthy situation include the recent setting up of the rehabilitation

of productive enterprises program, which with supporting foreign resources

supplied by the U.S. government will specially finance agriculture and

agro-related industry.

Before the end of the year, another organization, to be known as Uganda

Agricultural Finance Agency, UAFA, will be set up with the single objective

of financing agriculture. Government is also seriously considering increasing

the capital of the Uganda Development Bank, which is the national

institution best suited to the financing needs of industry.

Mr Chairman, in the monetary field, domestic credit increased sharply

between the years 1980 and 1985. The acceleration declined somewhat

between 1982 and 1984, but during the years 1984 and 1985, total domestic

edit increased by 130 percent from 85 billion shillings to 195.2 billion

shillings. This went hand in hand with government indebtedness to the

banking system. Net claims on government increased 65 percent between

1983 and 1984 from shillings 40.5 billion to shillings 66.9 billion,

and increased further to shillings 108.8 billion by the end of 1985. This

increase largely reflected government dependence on bank financing to cover

the widening budgetary deficit. Bank credit to the private sector was

also increasing during the same period, but at a lower rate of growth,

and this growth in the credit to the private sector went mainly to

finance commerce.

Money defined as currency in circulation and bank deposits increased

by 90 percent over the year 1985 from 111.5 billion shillings to 211.3 billion

shillings, while currency in circulation alone nearly doubled during the

same period from 43.9 billion shillings to 80.8 billion shillings. This

large increase in currency in circulation and money supply in general

naturally put a lot of pressure on prices, as these large increases were

taking place during a period of low and.declining production. Bank credit

was also distributed in a manner that reflected the usual effects of

inflation in an economy. In agriculture, for example, bank lending stood

at 35.3 billion shillings by the middle of 1985, and rose to 48.1 billion

by the end of the year. These fairly large increases in the agricultural area

are largely explained by financing export crops and in particular, coffee.

24
Commercial bank credit to agricultural [word indistinct] production

remained virtually nonexistent. In a situation of inflation, the attitude

of commercial banks can be justified on purely financial grounds. It was

more rational for banks to finance sectors where credit was relatively more

secure and where it could be recovered in a short period. These were

mainly commercial and service ventures. The manufacturing sector received

very little credit from banks, expecially as most of the industries

were bogged down with legal problems stemming from ownership and other

problems. Frequent devaluations of the shilling did not help matters either.

Mr Chairman: The policies employed by the previous governments, while

aimed at establishing a relatively more acceptable exchange rate for

the shilling had the effect of undermining these very policies. The exchange

rate policy was used by the previous governments as an instrument to help

in the management of demand. The idea was to devalue the shilling and

thus make foreign currency more expensive in terms of Uganda shillings

and therefore reduce demand for it. Management of demand can only succeed

if in fact there is discipline in how money is spent, not only in government,

but also in those institutions which are charged with the management of the

financial resources and where there is a mechanism of channelling resources

into productive areas of the economy. What went wrong in Uganda was that

budgetary discipline was lacking and those who advocated monetary approach

to the management of the economy depended on the market mechanism to orient

the economy toward more production and less consumption. That, of course,

could not happen because of the very internal contradictions inherent

in the policy.

Mr Chairman, the government intends to maintain a fixed exchange rate in

order to minimize inflation, but will also take other measures that will

help the economy to recover steadily without high rates of inflation.

The government has, therefore, decided that the exchange rate be fixed at

shillings 1,400 per U.S. dollar. With immediate effect, the dual exchange

rate regime [as heard] is abolished.

Mr Chairman, interest rates do play a monetary role, as they do regulate

the cost and availability of credit and where that credit goes. They

also can help in mobilizing financial resources which could be used to

achieve desired economic objectives. Tn a situation of inflation, however,

interest rates need to be substantially high in order to attract people

to save and also discourage firms from speculation, the reluctance to

hoard money or through hoarding and property speculation. [sentence as heard]

High rates of interest, however, can have very damaging effects on an economy.

They could discourage borrowing and in a situation like ours, they have

the effect of curtailing production, since production forces the investors

to tie money in projects for a relatively long period. If the rates of

interest are high, such borrowing may appear, rightly or wrongly,

unacceptable to investors. The subject is, therefore, controversial.

25
Mr Chairman: It has therefore been decided that as soon as the national

investment plan is approved and thereby the desired levels of investments

in various sectors of the economy are established, the interest rate policy

will be reviewed. Financial institutions will be required to adjust their

investment portfolios and ensure that predetermined proportions of

lendings go to each sector of the economy. At that juncture it will be

possible to reduce the interest rates applicable to productive sectors without

at the same time discouraging lending institutions from lending to these

low interest sectors.

The most significant development in the area of monetary policy, Mr Chairman,

to be undertaken during the current fiscal year is the currency reform

which I announced earlier this year. New currency [notes] are already being

manufactured by our security printers. The minting of new coins is also

in progress, for we shall definitely go back to the use of cents and

shilling coins as a valuable media of exchange. The production of high

security currency, however, takes a longer time than most people appear

to appreciate. It is only this factor that is delaying the exercise.

Trade and balance of payments: Mr Chairman, the economic mismanagement

this country has experienced in the past has had the effect of narrowing our

export base so much that at present the only export we can seriously talk

about is coffee. The coffee would probably have no exports at the moment

if coffee were not the type of crop that can survive long periods of

neglect. Even then the volume of coffee exports has been declining in

the last 10 years. While other export crops like cotton and tea already

show promising signs of recovery, the country will not expect substantial

earnings from these crops this year. Coffee exports amounted to 143,000 tons

in 1979 and declined to a level of 133,000 tons in 1984 and then increased

again to 151,500 tons in 1985. The decline: in coffee production may,

however, not fully reflect the true situation. A lot of Uganda coffee

has systematically been smuggled out of the country by both individuals,

and it would appear, official agents as well. Cotton, tea and tobacco

continue to be exported, but in quantities that do not demand any

particular mention here.

In 1982, however, maize appeared for the first time as one of Uganda's

exports and reached a level of 40,000 tons in 1984, but declined substantially

in 1985 to the level of 9,800 tons. Unit prices of our exports continued

to fluctuate in response to forces beyond the control of the developing

world, although international agreements under the International Coffee

Organization have helped a great deal in bringing about relative stability

in coffee prices in the world market. The value of Uganda's total exports

reached a level of 380 million U.S. dollars in 1985, but nearly all this

consists of earnings from coffee. Uganda imports in 1983-4-5 were valued

at U.S. dollars 428 million; U.S. dollars 432 million; and U.S. dollars

264 million respectively. This drop reflected the country's inability

to raise enough currency to finance imports, as well as political

difficulties which existed during 1985. Drawings from the IMF were getting

exhausted by 1984 and because the financial program with the fund was

not renewed, Uganda's capacity to import was severely constrained.

26
Mr Chairman, the country experienced substantial trade deficits between

1980 and 1982, although by 1985 we had recorded a surplus in the

trade balance largely because imports had been disrupted by the political

and military problems the country was experiencing. On the capital account

Uganda utilized substantial external capital, and by 1983 we had recorded

a substantial surplus of 27 million dollars. This improvement reflected

substantial use of borrowed resources, particularly from the IMF.

Uganda, therefore, had relied largely on external financing to finance imports.

However, repurchases from the IMF - that is to say repayment of our debts -

was already in excess of our drawings from the fund by up to 10 million

dollars by 1984, thus marking the beginning of the balance of payments

difficulties which the country faces at the present time.

On the international scene, Mr Chairman, Uganda, like other countries,

witnessed recent sharp decreases in oil prices. This decline would have

benefited the developing countries greatly. However, we do not control

the oil markets and have to rely on the operations of the commercial

organizations which market oil worldwide. Uganda has yet to get full

benefits of low oil prices. While the effect of low oil prices was

expected to be positive, and lead to higher rates of growth in the

developed countries, this cannot necessarily be said of developing nations.

The developing world is constantly faced with two major problems. The iirst

is the currency flunctuations which frequently affect their balance of

payments positions, and the second, fluctuations in prices of their exports.

In regard to this latter problem, Mr Chairman, it is noteworthy that over

the last few months, the price of coffee on the world market has dropped

by as much as a dollar per kg, although at the moment it is beginning to

rise again. This has considerably depressed our foreign earnings.

Furthermore, the developing world, including Uganda, continues to be

a new exporter of capital to the developed world. This phenomenon continues

even up to this time. These flows consist of transfers of capital by ;

commercial undertakings and the investors who operate in the developed

world, as well as flows on accounts of principal and the interests on

various credits raised in the developed countries.

I would now like to say a little about producer prices for price controlled

commodities. In May this year, Mr Chairman, government announced

substantial increases in the prices paid to farmers for controlled export

crops. It is the policy of this government to offer higher and higher prices

for those commodities as a means of providing an incentive for greater

production, as well as reducing the imbalance between the rural and the

urban sectors of the economy. However, because of the current conditions

in international commodity markets, it is impossible for government to

review upwards the prices currently payable to the producers. As suggested

above with regard to prices for coffee, government is only making an effort

to maintain prices to the farmer at the level at which they are now.

Price increases are therefore impossible in the circumstances. However,

government will continue the policy of offering the best possible prices

in the light of world market conditions. The price for cotton in particular

will be reviewed before the commencement of the coming planting season.

27
The Development Program: Mr Chairman, the government is in the process

of formulating an investment program, which will reflect the economic

policies of the NRM government. The program will not only focus its main

attention on production but will also put emphasis on developing an integrated

economy, so that the economy is oriented to produce as much as possible

those commodities, goods and equipment that will enable productive sectors,

especially industry and agriculture, to support each other. When industries

begin to oeprate at higher capacity, Uganda should produce more of its

basic needs within the country itself. The investment program is in the

final stages of discussion, and when it is published it will indicate

broadly what Ugandans plan to do themselves and the nature of assistance

they expect from financial organizations and the friendly countries.

This budget cannot, therefore, take into account the full and final

recommendations of the investment program, although during this financial

year, seven projects in the program will be started. These will include

the rehabilitation of our roads, as well as some industrial projects

which the government considers to be urgently required. But even before

the investment plan is released, the government is already implementing

those policies that are fundamental to its economic policy.

Uganda intends to depend on its own resources as much as possible in

developing its economy. In this connection, we will primarily use our

foreign currency resources to purchase petroleum products as well as drugs

for both human and animal needs, to purchase raw materials and capital

imports, to produce those consumer goods which the people need as well

as agricultural imports to promote more production for local consumption

and for export.

Our whole resources will also be used to purchase goods and transport

equipment the country cannot at the moment produce. Resources will also

be used to pay for consumer goods which our industries cannot produce at

the moment. We shall also use our resources to pay for scholastic materials

needed in our education institutions and also to repay the country's

external debts, most of which could have been avoided.

Government has also embarked on measures which are aimed at reducing demands

on our foreign exchange resources. We have already reached agreements

with a number of countries under which we will exchange commodities

or goods with each other so that the need for use of convertible currency

is reduced. In this regard, Mr Chairman, government is launching an

export drive involving nontraditional exports such as maize, beans, timber,

hides and skins, sim [sesame], soy beans and others. Government calls

upon all persons to redouble their efforts in the production of these

commodities, and guarantee a sure market to the producers at competitive

prices.

Foreign investments: Mr Chairman, the investment program will make

allowance for and encourage investment by investors abroad. A law exists

to protect such investments, as well as giving incentives to those who

28
wish to invest in Uganda. The Foreign Investment Protection Act of 1964

and the subsequent decree of 1977 give details of what the investors

need to do before they start on their projects in Uganda. That law

provides for a committee of senior officers who are supposed to examine

the nature of the proposed investment and determine whether it is in

line with the country's development objectives. If the committee is

satisfied it makes recommendations to the minister of finance, who

signs a certificate of approved status, thus allowing the investor

the right to dividends and interest on any money he might have brought

in from abroad to finance his project in the country. It should be

emphasized, however, that each project has to be discussed with the

government on a case-by-case basis to ensure that its future operations are

in line with government's economic policy objectives and will produce

those goods and services that the country considers a priority.

I would like to say a word about the properties currently managed by the

departed Asians' Properties Custodian Board. Government has already

started on work relating to the final resolution of issues relating to

properties left behind by departed Asians. We are at the moment examining

the law governing their sale or return to.their former owners as the law

currently stands. Amendments to the law may be necessary. New legislation

may also be necessary, say with regard to land tenure to provide for

certain modes of sale and ownership that cannot be accommodated in

the existing law. The task force consisting of lawyers, experts on urban

affairs, bankers and others are currently examining the necessary procedures

and modalities to be followed. Their recommendations will be submitted

to government for final decision. After;this process, such properties as

shall be candidates for sale shall be valued and disposed of.

Recommendations are also expected from the task force on the best

ways of deploying and utilizing the proceeds from these sales.

I would now, Mr Chairman, like to turn to the 1985-86 budgetary outturn,

[as heard Mr Chairman, the budgetary situation during the year 1985-86 was

abnormally difficult. And the budgetary performance was more bad [as heard]

than ever before. The original estimates for recurrent expenditure for

financial year 1985-86 was shillings 213 billion, while the development

expenditure was estimated at 144.6 billion. In the course of the years,

these figures were revised by supplementary estimates to shillings •

343.7 billion and shillings 170.6 billion for recurrent and development

expenditure respectively, giving a total expenditure of 514.3 billion

shillings.

On the revenue side, the original estimates for the financial year, 1985-86

was shillings 240.8 billion for the recurrent tax revenue and shillings

73.1 billion for development revenue in that order. The revised tax

revenue estimates for the year are shillings 276.6 billion and shillings

125.8 billion for recurrent and development expenditure respectively,

making a total of 402.5 billion shillings as against the original estimates

of 314 billion. The outturn for 1985-86 budget, therefore, gives an overall

deficit of shillings 104.6 billion.

29
Many factors made it very difficult and in some cases impossible to live

within the original budgetted amount and consequently necessitated

revision of expenditure estimates by supplementary provisions.

The main factors that led to these are as follows:

First: Government services which were not originally catered for in the

budget, namely provision of emergency relief for the people in the

war-ravaged areas especially Luwero Triangle, Arua, Moyo, Moroto and Kotido.

Secondly: The implementation of government policy to provide free

education in the Lowero triangle of Arua, Moyo and the two districts

of Karamoja. There was also an increase of salaries and wages due either

to underestimation of police and prisons requirements in the original

budget, or increases in the number of soldiers in the Ministry of Defense

in the course of the year and upward revision of their salaries in the

first half of the year. In addition, government had to acquire new

equipment and transport facilities for the army, that is uniforms,

matresses, vehicles, etc.

Thirdly: The continued depreciation of the shilling which affected a

number of payments made in foreign currency, for example, external loan

servicing, remittances to our missions abroad, students allowances overseas,

overseas purchases and contributions to international organizations as

well as official travel abroad.

Fourthly: The internal area was the rising cost of maintenance and

feeding of soldiers, the police, prisons personnel as well as prisons

inmates, students in secondary schools, colleges and Makerere university,

hospital patients and paramedics. These costs constantly (?roll).

Fifth: The rate of revenue collection was far less than the rate of

expenditure as indicated by expenditure demands of ministries and

departments. Details of the outturn of the 1985-86 tax and development

revenue and external grants and loans are in the financial statement

in the revenue estimates published today.

1 would now like to look at the forecast for 1986-87. Mr Chairman,

the main policy objectives of the 1986-87 budget will focus on financing

and rehabilitating government services that have been neglected as far

as recurrent budget is concerned, and repair of many state assets that

have been damaged during the recent war. This includes buildings,

government institutions, schools, hospitals, roads, machinery, etc.

These will be covered in the development budget.

The budget will also lay emphasis on providing means of livelihood to the

population in the war-affected areas under the Ministry of Rehabilitation.

In the 1986-87 budget, the overall revenue, including foreign grants

among others, are forecast to increase by about 90 percent, whereas the

30
overall expenditure is expected to increase by about 19 percent, the

total estimate of revenue published in the financial statement is shillings

777.8 billion shillings. Tax revenue is estimated at 487.3 billion.

Appropriation in (?aid) is estimated at shilling 16.8 billion. Development

revenue is expected to be shillings 273.7 billion from the following sources:

A: Dividends from government-owned companies or companies in which

government has shares: The sum of 4.1 billion is expected.

B: IDA [International Development Agency] one and IDA two, and other

projects accounts which should realize 56.5 billion.

C: The Kenya Compensation Agreement Fund is expected to contribute

40.6 billion shillings.

D: The sale of buses is expected to bring in 4.4 billion shillings.

E: External grants: These are expected to bring in 72.3 billion, and

external loans, these should bring in proceeds of 95.8 billion.

The total estimates of expenditure is budgetted at 1,127.5 rpt 1,127.5 billion.

Recurrent expenditure is estimated at 509.7 billion. Statutory recurrent

expenditure is budgetted at 134 billion shillings. Development expenditure

is estimated at 474.1 billion shillings and statutory development

is estimated at 9.8 billion shillings.

The total revenue and the total expenditure, therefore, Mr Chairman,

give a deficit of 349.7 billion shillings. This is to be financed

from borrowing from the banking system and also from nonbank sources.

Subject to government decision, part of the proceeds form the sale of the

custodian properties may be applied to the financing of the deficit.

Mr Chairman, most of the parastatal bodies continue to depend.on government

assistance for their operation. Government-proposed.contribution to

various parastatal bodies amounting to shillings 22.7 billion is Included

under the Ministry of Finance development budget. Out of this amount,

shillings 7 billion is to cater for partial capitalization of the

Uganda Airlines, while shillings 9.5 billion goes toward UDCS [Uganda

Development Cooperation] share capital.

This government places a lot of emphasis on discipline within government

in the way public funds are handled. This emphasis is necessary because

rehabilitation needs in this country at the moment are pressing and many.

That is the reason why the budget deficit is so large.

The Treasury will therefore place strict control on the use of funds by

releasing money to ministries for only real needs which should be ><-

properly documented, by reducing the number and size of government

delegations travelling abroad and in many cases to request our embassies

abroad to attend meetings where Uganda will be required without sending

31
officers from Kampala, by insisting on proper authority before purchases

can be financed with public funds, by ensuring that each ministry

spends money in amounts not exceeding those provided in the budget

to be authorized today.

Mr Chairman, as a result of the high rates of Inflation over the last 10 years

real wages and salaries are at the moment very low indeed. At the lowest

level the monthly wage is not even enough to buy a bunch of matoke [bananas]

or 5 kg of maize flour.

Government has therefore decided to increase the total wage bill of

government by 50 percent and provide this increase in an individual scale

in such a way that the 50 percent increase in total, wages and salaries

will range from token increases at the top scale to well over 50 percent

t^lTt V

he b

Ü

tt0m SCale

'

ThlS Will> °f COUrse>not brln8 significant relief to the workers as the prices will still remain quite high for

them. Government, however, intends to .take further.measures in the

near future to bring about a happier balance between goods and services

on the market and aggregate demand. More meaningful increases will

only be possible when our production levels and the tax base expand,

and when government has trimmed down the establishment where excessive

staffing exists.

JQRA^V* Chalrman>

llke to turn to the. taxation proposals for

iyö6-87. These proposals have the following objectives. One is

guaranteeing a continuous and adequate flow of revenue in the prevailing

circumstances and (b) stimulating production. prevailing

The above objectives will be achieved through the following measures.

(A) revision of the various tax rates in order to bring them in line with

the present rate of inflation. Mr Chairman, some of these rates have

not been revised for over a decade now and are meaningless compared to

the cost and the importance of the services they are purportedly paid

SJ;; ]i\ lncreasin8 vigilance and surveillance and therefore

effectiveness of the tax administration and (C) a liberal application

of fiscal policy to ensure a regular flow of the Imports in both the

agricultural and industrial sector at relatively low prices. Mr Chairman

these measures will form the basis for the long-term Lx policy objeSves.

The income tax The Finance Act 1982 changed the (?operative) system

by replacing the local committes and the tribunal with the commissioner

for appeal. But since then, it has not been possible to establish the

new system, the reason being the difficulty of identifying a person

conversant with this new system. .

un the t^w' Ü°W?r^ obi

ective* have been piling up, thus holding

up the tax that should have been collected. I should, on the other hind

emphasize that an (^operative) system is an integral part foJ tne effective

tax administration and is instrumental in promoting (Compliance),

32
Consequently, to save the time and speed up resolution of disputes and

therefore realize revenue first, it is proposed to revert to the old

system of the local committee and also to do away with the,tribunal,

Mr Chairman, in a free enterprise society it is the business sector

which determines the level of investments. The increase m the level of

investments is important for capital formation and therefore the rate

of economic growth. To be able to increase savings and therefore the rate

of investments, I propose to reduce the rate of corporation tax applicable

to industry and agriculture from 50 percent to 40 percent; However,

in order for business in general to make adequate contribution to the

reconstruction efforts, I propose to raise the corporation tax applicable

to commercial banks and other financial institutions other than insurance

companies from the present level of 50 percent of profits to 60 percent

of (?stocks); the rate for insurance companies will remain at the current

level. I also propose to raise all other corporation tax outside

manufacturing and agriculture to 60 percent.

Mr Chairman, presumptive income tax assessment popularly known as the

income tax deposit was introduced in 1976. Since then it has been

extended to various economic activities with a view to tapping oil

sources of income. '""

In its current circumstances, the Department of Income Tax is seen on. the

ground and the constraints by transport and therefore unable to effectively

reach every potential taxpayer, [sentence as heard] Therefore, as

recommended in the Uganda economy study report, in the near future we shall

have to depend increasingly on presumptive assessments to collect Income

tax revenue. In order to increase the contribution of income tax total

revenue, I propose to double the Current deposit rates applicable to

commercial activities and adjust other deposits appropriately. The details

of these will be found in the finance decree. As a result of these

measures, I expect to raise 15 billion shillings.

Mr Chairman, in the budget speech last year, a new incentive scheme for

commercial banks intended to encourage them to spread banking facilities

to the rural areas was announced. Thus if any commercial bank opened one

branch in the rural areas, it would be entitled to reduction in income tax

of 30 percent. If it opened two branches, a reduction of 60 percent.

And if it opened three branches or more, a reduction of 100 percent.

It is now felt that this was too generous and the commercial banks could

use the scheme to continuously avoid payment of income tax. Starting

with the year of income 1987 this rebate will be discontinued. In the

present financial circumstances, alternative measures will be taken to

ensure the expansion of the banking network. Mr Chairman, these measures

will become effective 1 January 1987.

Customs duty: Mr Chairman, the only significant amendment here is in

respect of Section 107, Subsection 2, of the East African Customs Transfer

Management Act. In order to discourage the public from holding on to

33
government revenue, I propose that the interest rates payable on any

outstanding tax be the rule in commercial bank rates applicable to commerce.

Furthermore, Mr Chairman, in the course of the administering of the Customs

Law, certain measures were adopted administratively. One such measure

is the requirement for prepayment of taxes on imports. I have carefully

assessed the effects of prepayment on our imports and their prices

and decided to do away with this requirement of prepaying for the imports.

Mr Chairman, as has already been announced, import duty rates on petroleum

products has gone up — in the case of super and regular, 100 percent;

in the case of kerosene to 50 percent. The rate of duty applicable to

diesel is 20 percent. These import duties in conjunction with the

proposed sales tax rates result in the following pump prices: Super —

shillings 1,100 per liter, regular petroleum, shillings 1,000 per liter;

kerosene — shillings 750 per liter; and automative diesel — shillings

500 per liter.

Mr Chairman: In the case of beer, import duty has gone up to 200 percent.

Mr Chairman, the NRM [National Resistance Movement] government has

demonstrated serious concern for the welfare of the people by ensuring

that the little that there is, is shared equitably. In this case government

can proudly state that with the assistance of the resistance committees,

sugar has reached every household at a manageable price. But, Mr Chairman,

I intend to raise the import duty and sales tax on sugar to 30 percent

and 40 percent respectively. As a result of these proposals the retail

price for sugar should be about 1,600 shillings per kg. This should

be fairly manageable.

In addition, Mr Chairman, there are technical amendments which will

incorporate PTA [Preferential Tarriffs Area] rates in our customs

tariffs and others which will streamline the tariffs in respect of motor

vehicles to accommodate 4-wheel drive vehicles, special liquid transport

vehicles and dumpers and others that will streamline tariff rates where

finished products are tax-free, and yet the imports to manufacture the

same locally are taxable or where both the components and the finished

goods are liable to the same rate of duty. As a result of these measures,

Mr Chairman, I expect to raise 37 billion shillings.

With effect from midnight tonight, Mr Chairman, the following rates of

sales tax will apply. There, the sales tax will be 30 percent. Cigarettes

kali [strong] sales tax will be 20 percent, other brands will be 30 percent.

And for petroleum products the sales tax for super and regular will be

50 percent, and for kerosene 30 percent, and zero for diesel. These are

the taxes that are reflected in the pump prices indicated earlier. Other

technical amendments, Mr Chairman, will be found in the Finance Decree.

Excise duty: Mr Chairman, the following rates will be applicable with effect

from midnight tonight: Beer 50 percent; cigarettes kali 40 percent;

other brands 60 percent.

34
Mr Chairman, since 1981-82, excise duty on sugar has been suspended because

there was no local production. I intend to continue with the suspension

until local production starts. But I intend to reimpose the excise duty

at the rate of 30 percent on Uganda Waragi [Nubian Gin]. I expect to raxse

29 billion shillings from these measures.

Fees and licences: Mr Chairman, the present level of fees and licences

charged under the Road Safety and Traffic Act of 1970 neither reflects

the cost of administration nor the importance of the services they are

supposed to pay for. I have therefore decided to substantially increase

them so as to fully reflect these two. The details of the increases

will be found in the Finance Decree. As a result of this measure,

I expect to realize 7 billion shillings, including 1.2 billion shillings

from commission on import licences hitherto collected by the advisory

board of trade. This measure takes immediate effect.

Stamp Duty. Mr Chairman, stamp duty rates were last revized in 1967. The

developments in the economy since then have rendered them entirely

meaningless. Yet, Mr Chairman, the instruments for which stamp duty is paid

are important to offer or guarantee legal security or protection.

Mr Chairman, to bring this rate up to date, I have decided as follows:

One, where a value be ascertained, the rates of stamp duty will be

5 percent of the value of the instrument in respect of which stamp budy

is levied.

Two, where this is not possible, that is, where no money value can be

attached to the instrument, as in the case of affidavits, the present

rate will be increased 300 times in partial reflection of the decline

in the value of the shilling since then. This measure, again Mr Chairman,

takes effect immediately.

Airport Tax. Mr Chairman, I propose to raise the fee payable by a

passenger leaving the country to 10 U.S. dollars per passenger. This will

bring our charges in line with the other international airports in the

neighboring countries. Nonresidents will have to pay in dollars, but

residents will pay the equivalent in Uganda shillings at the prevailing

rate of exchange.

Freight charges. Mr Chairman, foreign-registered vehicles entering

Uganda will be required to pay 150 U.S. dollars, that is, in hard currency

per entry into the country.

I would also like to report, Mr Chairman, that I am contemplating the

introduction of a road-user tax in order to make all road users

contribute to the rehabilitation and the mainenance of our roads.

Mr. Chairman: Besides raising adequate revenue necessary to minimize

financing the budget by resorting to ways and means advances from the

Bank of Uganda, I intend to use fiscal policy to encourage both investment

35
and production. The long-term objective of this policy is to build a stronger

economy and a wide tax base so as to realize growth and more revenue.

I shall, therefore, Mr Chairman, on a selective basis, consider allowing the

importation into Uganda of industrial and agricultural inputs and implements

free of duty. Mr Chairman, in addition to the taxation measures I have

outlined above, I expect to realize additional revenue amounting to

148.9 billion shillings.

Finally sir, there are other measures which will come into force in the

course of this fiscal year, and these are the following. One, Mulago

Hospital is to become a self-accounting organization. This is intended

to speed up disbursement to the hospital as well as payment to hospital

suppliers and creditors. Two, Mr Chairman, similar arrangements are

being worked out in respect to Makerere University. Three, a third

motor party insurance law is currently being drafted to protect both road

users and motorists and this should become law in the course of the fiscal

year. And finally sir, it is proposed to set up a reinsurance corporation,

a parastatal, as a vehicle of development financing as well as an organ

to assist in the financing of development and budget deficit.

Mr Chairman, for God and my country I beg to move.

/12624

CSO: 3400/456

36
UGANDA

BRIEFS

RADIO UGANDA UPGRADE—Kampala, 22 Aug (UNA/PANA)—After about 6 years of poor

transmission, Radio Uganda goes effectively on the air early next month,

the deputy minister of information and broadcasting, Maumbe Mukwana, has said.

The 2-channel radio station deteriorated to a 1-channel system in 1980,

and ever since, there have been a constant transmission breakdowns, leaving

almost three-quarters of the country in a total radio.blackout. The

government will inaugurate the new transmitters, made and installed by

a Japanese firm, Nippon Electric Company, on .8 September. There will

be two short-wave channels serving the whole country, and a medium-wave

channel with about a 50-mile radius from Kampala. The next phase of Radio

Uganda's rehabilitation will include the installation of three 50-kilowatt

transmitters. [Summary] [Dakar PANA in English 1440 GMT 26 Aug 86 EA] /12624

CSO: 3400/456

37
ZIMBABWE

RESERVE BANK MOVES TO CURB EXCESSIVE GROWTH IN MONEY SUPPLY

Harare THE HERALD in English 15 Aug 86 p 1

[Text]

ZIMBABWE'S Reserve Bank yesterday an.

nounccd measures to curb excessive growth in

the country's money supply expected after the

recent Budget.

The measures aro aimed at tightening the credit

market's because preliminary "forecasts after the

Budget, presented to Parliament on July 81, indicate

that there Is likely to be a strong demand for bank credits.

A Reserve Bank statement said yesterday that this

strong demand for bank credit may result in the

money supply expanding by as much as 35 percent.

Inis would, in turn, result tit a sharp acceleration In

the rate of Inflation from a current level of 14 percent

to above 20 percent. .

"This would undermine the balance of payments

situation, including export competitiveness, leading to:

further cuts In imports and slower growth in the economy. •.. '• .

"It would also almost certainly mean that the

targets set out In the Five-Year National Development

Pin n could not be achieved," said the bank.

Against this background the bank, in consultation,

with the Ministry of Finance, Economic Planning and

Development, decided on the credit control measures.

As a result, the following measures were introduced

with Immediate effect:

Building societies, bank and financial institutions,

including insurance companies and pension funds will

no longer be permitted to provide funds to either

individuals or corporate bodies for the purpose of

acquiring non-owher occupied houses or for other

speculative purposes. In addition, any borrowing for

non-essential purposes is tö be rigidly controlled;

/9274

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(The Reserve Bank of Zimbabwe is also taking

immediate measures to prevent any secondary credit

creation from taking place.

The statement said that at the appropriate time

und as the expected build-up in money supply takes

place, changes to the bank's reserve änd/or liquidity

rations would be implemented and banks may be

required to take up non-liquid, non-interest-bearing

and non-tran&ferablo Reserve Bank of Zimbabwe bills.

Other monetary control measures to tighten credit

markets'will be taken as necessary.

"These measures should go some way towards curliing the quantum and offsetting the effects of the

significant acceleration that would be expected to occur

In the money supply if no action were taken." the bank said.

_ The 1986-87 Budget announced by the Minister of

Finance, Economic Planning and Development, Dr Berna.rd Chidzero, anticipates a deficit of about $1050

million. ' . ".•'

However, net foreign financing and borrowing from

the domestic' non-bank sector would fund the major

portion of this deficit. But there would still be a

significant part of the, local financing that would hav*

to come from the banking sector, the Reserve Bank

said In its statement.

With expansion continuing to take place in th*

economy, the demands for credit in the public and

private productive sectors is expected to continue to

grow.

An overall Increase in borrowing by these sectors

from the banks of about »300 million is also expected

during the Tiext 12 months. .

., ,'!Th1^

credlt demand may be significantly reduced If the Agricultural Marketing Authority is able to

successfully export the current excess food stockpiles."

said the Reserve Bank. — Zlana.

38
BUSINESSMEN FEAR SOUTH AFRICAN BACKLASH

Johannesburg BUSINESS DAY in English 7 Aug 86 p 4

(Article by Michael Hartnack]

ZIMBABWE

[Text]

HA!! WIK lupines»«!«» fear that plans by

SA I'! It11 back at Frontline states for sanctions, will qtiiotly strangle their trade with

roil tape.

Holier than provoke an intensified international blockade of SA's own trade, it is

feared SA will use other means.

So. instead of detailing specific punitive

measures against countries like Zimbabwe

- which lias been a prime mover in the

sanctions campaign within the Commonwealth - Pretoria might tell its railwaymen, harbourmasters and customs inspectors to lake their time in processing urgent

consignments to or from Frontline states.

Harare sources report that, with more

than 3-milIlion tons of maize in silos of its

grain marketing board, Zimbabwe has been

told only (Jape Town and Fort Elizabeth can

now handle shipments.

This has put an extra RIO a ton, atleast, on

transport costs. Zimbabwe's maize farmers

are paid R250 a ton but the commodity is

fetching less than $36 a ton on a falling world

market.

With 94% of Zimbabwe's trade going to or

through SA, only one train a day sets off

along the steep gradient line from Mutare to

the i-wtown Mozambican port of Beira .

It remains far cheaper to rail a container

from Mutare 2 000km to Durban than send it

300km direct to Reira.

None of Zimbabwe's busmessmen nor

trade officials is prepared to talk. «rthe

record about the threat of SA retaliation.

They expect the SA government to imitate

the tactics used with devastating effect by

former PM John Vorster to pressure Ian

Smith exactly 10 years ago when the Henry

Kissinger proposals for black rule were presented to Rhodesia.

Vital supplies, including train loads of war

materials, were mysteriously delayed in SA.

Pretoria's politicians blamed railway shunters and signalmenfor hitches that prevented

4-million tons of Rhodesian maize exports

from getting to potential markets.

Zimbabwe's most profitable export crop,

tobacco, is particularly vulnerable, because

foreign buyers will order rival Brazilian leaf

if deliveries cannot be made by specific

dates.

Zimbabwe hopes to produce a record 150-

million kg export crop in the coming season.

Much of it will go to waste if it cannot be

moved via SA ports.

Harare's business community, which has

been cowed into silence by accusations that

it lacks patriotism and loyalty to the cause

of black liberation -feels Mugabe's government would be prepared to see very much

more damage to the economy than Smith's

regime before it admitted SA economic

pressures were too great. '

For the moment there is no talk of a remtroHction of fuel rationing in Harare, despite claims by Mozambique's Renamo rebels that they have blown up the vital BeiraMutare oil pipeline.

If true, this would throw Zimbabwe back

on reliance upon the SA rail tanker imports

of fuel which kept Rhodesia going during the

1965-80 sanctions years.

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39
ZIMBABWE

BRIEFS

BARTER DEAL SIGNED WITH ROMANIA^-Several thousand 24-inch black and white television sets are expected to become available at the end of the month from a

barter deal which was signed between Zimbabwe and the Romanian government in

February. Under the agreement Romania received short-fibre asbestos from

Zimbabwe in exchange for the television compponents which have now begun arriving in the country and are distributed between three Harare assemblers.

The trade and economic counsellor of the Romanian embassy in Zimbabwe, Cde

George Dobran, yesterday handed over part of the consignment to African Electrical Manufacturers managing director, Cde Leonard Matiza, in Harare.

African Electrical Manufacturers is to receive 1,187 kits. According to Cde

Matiza the shortages of foreign currency were making it impossible for his

firm which now employs 10 workers to continue operations. But after yesterday he said he would have to double his staff, Cde Dobran told The Herald

that there were other agreements with Zimbabwe under which 200 tractors had

been assembled at Willowvale Motor Industries and another 91 kits were on the

way. In the case of African Electrical Manufacturers a Romanian engineer, Cde

Ionita Lucian, will stay with the firm to train in and supervise the assembly

of the televisions. With another barter deal with India for more television

kits in the pipeline, Cde Matiza said he might have enough work for two years.

He said he was aiming at a price for the sets of less than the $1,373 which

20-inch television sets are now retailing at. [Text] [Harare THE HERALD in

English 15 Aug 86 p 7] /9274

RURAL COOPERATION AGREEMENT WITH UK—Zimbabwe and Britain yesterday signed

two agreements by which a total of $28 million will be used to finance rural

and agricultural development projects. Speaking at the signing ceremony at

the Treasury offices in Harare, the Minister of Finance, Economic Planning and

Development, Dr Bernard Chidzero, said $25 million of the grant would finance

agricultural and rural development projects. The remaining $3 million would

be used for the rehabilitation and reconditioning of 140 old tractors over a

period of two years« Cde Chidzero said that the grants conformed to the

Government's priority in agriculture and rural development which would in the

coming five years receive $998 million or 14 percent of all Government investment. He added that the united Kingdom had a good "track record" in the field

of aid to Zimbabwe, The British High Commissioner to Zimbabwe, Mr Ramsay

Melhuiah, said after signing the agreement, that the Commonwealth mini-summit

which had ended on Monday in London, revealed an important disagreement between

the Zimbabwe and the British governments on how the outside world could best

40
contribute to a democratic solution in South Africa. {Excerpt] [Harare THE

HERALD in English 7 Aug 86 p 1] /9274

ROLE OF PEOPLE'S MILITIA PRAISEDr-The Minister of State (Defence), Gde Ernest

Kadungure, yesterday praised the Zimbabwe people's militia for the work they

had done in assisting the army in operations. In a speech read on his behalf

by the deputy secretary in the ministry, Cde Charles Tazvishaya, at a passingout parade at Gabriel Camp, Marondera, Cde Kadungure said that the role of the

militia had assumed national proportions, "With the demands on us to stretch

our defence resources outside our borders and also with the need to consolidate peace inside the country, the role of the people's militia has shifted

from being limited to the village to that of national defence," he said.

The minister said the militia forces had participated in guarding the country's

main routes and activities necessary to ensure Zimbabwe's economic survival.

The responsibilities put on their shoulders were an expression of the confidence that the nation placed on the rigorous and advanced training they received, he said. Cde Kadungure told the 805 graduates that they had to be

guided by the political orientation they had received in their training to

improve their discipline and increase the awareness of the masses they were

to work with, "When the masses understand you, you will gain their co-oper-r

ation, without which, a soldier is like a fish out of water," he said. There

were many examples of what a disciplined people's force could achieve. In

Cuba, it was the militia which helped ensure the success of their revolution

against the might of imperialist forces, Cde Kadungure said. He reminded the

graduates that the people's militia was not a permanently deployed force.

"After your training you will resume normal civilian life and will be called

up for service when the need arises. He reminded them that they had a duty

to educate and protect the masses in their areas, [Text] [Harare THE HERALD

in English 7 Aug 86 p 1] /9274

EXPATRIATE LABOR AT HWANGE REDUCED-~The number of expatriates working for the

Hwange Power Station is expected to be halved in the coming year as training

programmes have resulted in more qualified local staff to fit the posts, the

Minister of Energy, Water Resources and Development, Cde Kumbirai Kangai, has

said. Cde Kangai was speaking at the graduation ceremony for post-graduate

engineers and operations staff on their completion of a two year course. He

said there had been 66 post-graduates inducted into the two year programme of

which 46 had completed and had been placed in positions of responsibility in

the station. At the advent of independence Zimbabwe began to experience an

exodus of skilled people from all economic sectors and the Zimbabwe Electricity

Supply Authority was no exception. Also with the resumption of construction

work at Hwange, the need to train staff to run it became a priority. But because of the increased demand for power resulting from the increased rate of

economic growth, the power station had to be brought into operation without

delay resulting in the employment of expatriates. At the same time, in line

with Government policy for the acceleration of black advancedment Zesa

launched a number of training programmes as a long-term solution to the problem

of unqualified staff. The power station relied on unit operators for the operation and coordination of the boilers, turbines and generators in the station.

Initially when the power station began generation, these posts were filled by

British and Indian electricity authority staff. Through the training courses,

28 Indian unit operators have been replaced and 25 British operators are expected to be replaced early next year. Cde Kangai thanked the British, Indian

and French electricity authorities who assisted Zimbabwe in the staff training

programmes, [Text] [Harare THE HERALD in English 11 Aug 86 p 5] /9274

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SOUTH AFRICA

TREURNICHT SAYS REFORMS CREATING 'STRIFE'

MB160935 Johannesburg SAPA in English 2119 GMT 15 Aug 86

[Text] Pretoria, August 15, SAPA--The government's reforms were creating

an arena for political strike and "cold civil war," Dr Andries Treurnicht,

leader of the Conservative Party, said at the party's congress in Pretoria

tonight.

He told a near-capacity public audience in the city hall that he was concerned about repeated warnings about an approaching bloodbath in South

Africa.

The only policy to avert this was one of land segregation, in which people

governed themselves in their own areas.

"I cannot forgive the National Party and its media for the betrayal of

whites' independence," he said.

The government's political reform programme neglected the interests of

whites.

The state president,.Mr P.W. Botha, had "toyed with the voters" with his

secrecy about the government's political programme at the National Party's

federal congress in Durban this week, Dr Treurnicht said.

The Conservative Party was however, committed to continue the struggle and

would not submit to the betrayal of freedom.

"The will to fight and resist is not paralysed," he said.

"There is a popular swing towards us. The consolidation of political forces

is continuing."

There had been a critical economic, political and social regression during

Mr P.W. Botha's rule, Dr Treurnicht said.

He criticised the government for bowing to foreign pressure.

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42
SOUTH AFRICA

TREURNICHT ON RAJBANSI LETTER, CHURCH LEADERS

MB170933 Johannesburg Television Service in English 1800 GMT 16 Aug 86

[Text] The leader of the Conservative Party, Dr Andries Treurnicht, says

his party is as much concerned about violence in the country as the government

is. He spoke at the Transvaal congress of.the party. Dr Treurnicht attacked

church leaders who he said were backing revolution and named Bishop Desmond

Tutu as being in the forefront of this movement. The Transvaal congress

started in camera yesterday and ended late this afternoon.

[Begin video] [Correspondent Nico van Burick] Among the matters that were

discussed for hours behind closed doors were that of greater cooperation

between right-wing parties and an appeal to discuss the party's principles

and policy with other race groups. At one stage today, Dr Treurnicht censured one of his party members who said preachers who preach of brotherly

love between population groups were communists. Dr Treurnicht said the

statement could not be regarded as party policy, but he added that his party

rejected efforts at using religion to dismantle apartheid. Formally opening

the party's congress last night, Dr Treurnicht referred to an allegation by

the leader of the Afrikaner Weerstandsbeweging [Afrikaner Resistance Movement, ÄWB] Mr Eugene Terre Blanche, that his life had been threatened in a

letter allegedly written by the chairman of the Ministers Council in the

House of Delegates, Mr Amiehand Rajbansi. Dr Treurnicht challenged the

state president to answer on the truthfulness of the letter.

[Treurnicht, in Afrikaans] I want to ask the state president what the truth

is regarding this matter. What is the truth? According to the statement,

a minister is involved in a plan to physically get rid of an opponent. This

person issuing the threat serves in the cabinet. This person, who is alleged

wrote such a latter, is an ally in power sharing. We are asking what the

position is. If there is something such as joint responsibility in the

cabinet, do you accept responsibility for the letter? If not, then we

would like to know what are you going to do about it. [end video]

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43
SOUTH AFRICA

DE BEER MEETS MINISTERS ON PORT ELIZABETH SCHOOLS

MB161017 Johannesburg SAPA in English 1015 GMT 16 Aug 86

[Text] Pretoria, Aug 16, SAPA—The deputy minister of edueation and development aid, Mr Sam de Beer today met a delegation of the interdenominational

African ministers association in Pretoria in connection with the present

situation in Port Elizabeth schools.

At the end of the meeting the two sides issued a statement on the involvement of parents in education, formation of student representative councils

and current regulations being applied on schools to help normalise the

situation.

The statement, issued by the Bureau for Information, said the Department of

Education and Training [DET] remained committed to achieving parity in

education.

It said the DET fully accepted that parents should become more involved in

the educational process.

"Ample opportunities exist for parent involvement, through school committees,

parent-teacher associations and liaison committees.

"A pre-requisite for effective communication, however, is that no intimidation of parent organisations or individual parents should take place," said

the statement.

"Regulations aimed at normalising education these regulations were introduced

to rectify a situation where 50 per cent of all pupils in the Port Elizabeth

townships were boycotting schools and where disruptions were the order of

the day.

"The Department of Education and Training remains responsible to parents and

pupils to restore and maintain order and discipline so that effective education can take place."

The statement said pupils who were not able to re-register in Port Elizabeth

schools for valid reasons, may still apply for registration at their

schools before August 22.

44
It said pupils who had already registered should return to school as soon as

possible.

On student representative councils (SRC), it said the possibility for their

democratic establishment existed.

»Educationally sound guidelines for the implementation of SRC have been laid

down and such SRC have already been established in a number of schools

countrywide.

»The three most important guidelines for the establishment of SRC's at individual schools are the following:

-The student representative councils should be democratically elected, by

secret ballot.

-The student representative council will not be allowed to exercise control over the schools or to take over the functions of the principal, staff,

parent organisations and controlling bodies.

-Student representative councils will be expected^ lim^fl/^hools

and actions to educational matters pertaining to their own individual schools,

and will not be allowed to affiliate with any outside organisation.

-No SRC may function without prior approval of its constitution by the

regional director.

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45
SOUTH AFRICA

COUNSEL FOR P.W. BOTHA DEFENDS EMERGENCY RULES

MB191221 Johannesburg SAPA in English 1219 GMT 19 Aug 86

[Text] Pietermaritzburg, Aug 19, SAPA—Regulations were only ultra vires

when one looked for a sensible interpretation of them but could not find one,

it was argued by legal counsel for the state president in the Pietermaritzburg

supreme court today.

Mr J. Conradie SC [Senior Counsel] is.appearing for the state president in

an application brought against the government by the Argus Company, South

African Associated Newspapers, the Natal Witness and Natal Newspapers.

The newspapers have asked for an order declaring that emergency Regulations

7 and 12 which have restricted press coverage during the stage of emergency

be declared void and without force and effect in law.

The application has been made on the grounds that wher he made the regulations the state president exceeded his powers in terms of the public safetv

act No 3 of 1953.

Mr Conradie, dealing with Regulation 7, said the newspaper groups should

have come to court and attacked the way the commissioner of police executed

his discretion under the regulation and not the regulation itself.

He said the regulation could not be attacked except in a case where valid

executive action could not be authorised under the regulation.

Mr Conradie agreed with a submission by Mr Sidney Kentridge that Regulation

9 was "breathtaking in scope." Regulation 9 prohibits the taking, publishing, distribution and drawing of pictures of any public disorder, or any

person involved or the conduct of a force in maintaining public order.

But Mr Conradie argued that one had to look at the regulation in the light

of the circumstances in which it had been made.

He said contrary to what had been argued by the applicants one could publish

a photograph of past disturbances, for example, the 1922 strike. He said

this was because one had to interpret the word published in the context in

which it appeared—that is in the context of present acts relating to the

state of emergency.

46
It had been criticised as being unnecessarily wide.

Mr Conradie said it was certainly very wide but the question the court had

to decide was whether it was unnecessarily so.

He said it was not possible to say if it was unnecessarily wide or not because that would be interfering with the state presidents discretion.

Dealing with Regulation 11, Mr Conradie said that harsh as it was on a newspaper it might be perfectly reasonable with regard to public safety overall.

He said harsh interference might find justification in the minds of reasonable men if it was used for a purpose such as public safety. Mr Conradie

said the court would find it difficult to decide whether the regulation was

reasonable because the question of reasonableness was very wide where matters

of state security and of countrywide concern were involved.

Mr Conradie argued that the powers of seizure conferred on the minister of

law and order and any commissioned officer by Regulation 11 were enormously

wide. But he argued they were.no more so than regulations that ignored the

fundamental rights of the individual and allowed for the summary arrest of a

person which might be necessary in the circumstances.

He said the state president might have imposed press censorship under the

emergency regulations because he thought that by restricting the free flow

of news it would lead to a lessening of unrest.

Mr Conradie agreed with a suggestion by Mr Justice Kumleben that Regulation

12 was more far-reaching than 11. Regulation 12 allows the-minister of law

and order to close down a publication for an indefinite time if, in his

opinion, an issue contains a subversive statement.

Mr Conradie said it was impossible to say whether the state president had

thought that restricting the free flow of news would lead to a lessening of

the unrest, therefore censorship under the emergency could not be seen as

unreasonable. He said it was unfortunate but a free press was always the

first thing to go in a war or under an emergency.

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47
SOUTH AFRICA

MINISTER ADVISES POLITICAL PARTIES TO 'KEEP PATHS CLEAN'

MB191541 Johannesburg SAPA in English 1533 GMT 19 Aug 86

[Text] House of Assembly Aug 19 SAPA—Political parties should "keep their

paths clean" so that they did not encounter problems from the state, the

minister of communications, Dr Lapa Munnik, said today. He was responding

to questions by Mr Ken Andrew (PFP [Progressive Federal Party] Gardens) on

the detention for two-and-a-half hours of six PFP workers handing out leaflets advertising a party meeting in Cape Town on June 16, the anniversary of

the 1976 Soweto uprising*. Mr Andrew had asked whether it was normal practice for police to "harrass legal political parties." Dr Munnik, who was

replying to the question on behalf of the minister of law and order,

Mr Louis Le Grange, said he believed he had given a full answer. "Political

parties must keep their paths so clean that they do not run into problems."

Mr Harry Schwarz (PFP Yeoville) asked Dr Munnik what he meant by political

parties "having to keep their paths clean."

"I think anyone having a basic knowledge of ordinary English will know what

I have said," the minister replied. He suggested that Mr Andrew table a

further question why it had been necessary to detain the PFP workers for

two-and-a-half hours to ascertain whether their distribution of leaflets

was illegal or not.

Earlier, Dr Munnik said the six had been held "to ascertain whether in view

of the declared state of emergency and the existing security situation,

especially in the Crossroads squatter camp and adjacent areas, and mindful

of inter alia the contents of a pamphlet advertising the meeting, a police

recommendation to the magistrate and/or minister arid/or commissioner (of

police) was not advisable." Such a recommendation could have been made in

terms of the internal security act or the emergency regulations, he said.

The leaflets had been advertising a meeting protesting against the situation in the Crossroads and KTC squatter camps near Cape Town.

The next-of-kin of the PFP workers had not been advised "because they were

not detained," Dr Munnik said.

48
In reply to further questions on the meeting, Dr Munnik replied on Mr Le

Grange's behalf that it had not been prohibited, although an SAP major had

told a representative of the Cape Town city council that the gathering—

which was to have been held in the city hall—could not go ahead. This was

on the orders of the local district commandant. However, the divisional

commissioner for the western province ordered that the city council official

be told the meeting could go ahead. The PFP was informed of neither order,

Dr Munnik said. The decision was made "because the divisional commissioner

so decided." No action had been taken against the policemen concerned because "no reason therefore existed."

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49
SOUTH AFRICA

HEUNIS SAYS TRICAMERAL PARLIAMENT GAINING ACCEPTANCE

MB191740 Johannesburg SAPA in English 1714 GMT 19 Aug 86

[Text] Goudini, Aug 19, SAPA—The tricameral parliament was gaining more

and more understanding and acceptance among all South Africans, the minister

of constitutional development and planning, Mr Chris Hetinis, said today»

Speaking at the annual congress of the Cape Province women's agricultural

society, he said the new system had survived all the storms so far and the

unresolved question of including blacks in powersharing was now receiving

priority attention. "This is in accordance with the government's mission to

establish a democratic political order which will be internally and externally

acceptable as legitimate through popular support within the country." The

government recognised the need to secure the interests of all segments of

society by including black communities in a future dispensation.

He said the recently.constituted regional Services Councils were statutory

multiracial local government bodies which were responsible for the development and provision of services on a regional basis. They provided for

effective powersharing at local government level and therefore represented

a broadening of democracy.

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50
SOUTH AFRICA

COURT HEARS ARGUMENTS AGAINST PRESS RESTRICTIONS

MB181454 Johannesburg SAPA in English 1241 GMT 18 Aug 86

[Text] Durban Aug 18 SAPA—The real vice of Emergency Regulation 11 was

that an editor had no way of knowing.what in the opinion of the minister of

law and order constituted a subversive statement, it was argued before a

full bench in the Pietermaritzbürg Supreme Court today. The argument was

heard during an urgent application by the major English-language press groups

in South Africa, challenging [word indistinct] of the emergency regulations

which have placed severe restrictions on the media.

The Argus Company, South African Associated Newspapers, Natal Newspapers

and THE NATAL WITNESS have brought the application before the acting deputy

judge president, Mr Justice R.N. Leon, Mr Justice M.E. Kumleben, and Mr Justice P.M. Nienaber, attacking Regulation 7 to 12 and asking that they be

declared void and without force and effect in law. The application has been

made on the grounds that in making the emergency regulations, the state

president exceeded the powers conferred on him by Section 3(1) (a) of the

Public Safety Act No 3 of 1953. Regulation 11 authorises the minister or a

commissioned officer to seize a publication which in their opinion contained

a subversive statement or information which they consider may be detrimental

to public safety, the maintenance of public order or the termination of the

state of emergency.

Mr S. Kentridge, for the newspaper groups, argued that the real problem

with Emergency Regulations .11 and 12 was that they punished a person by

confiscation and an enormous fine without the benefit of a trial. He said

that Regulation 11 allowed the minister or a commissioned officer authorised by him to seize application if, in their opinion, it contained a

subversive statement even if, objectively viewed, the statement was not subversive or would not be found so by a court. Mr Kentridge said Regulation 11

was made worse by the fact that it allowed for confiscation even if a publication contained information which was or might be detrimental to the

safety of the public, maintenance of public order or the termination of the

state of emergency. He said there was not only uncertainty over what would

be subversive in the minister's opinion but also who was to say what would

be detrimental to public order. Mr Kentridge said it was impossible to say

how far this regulation went.

51
He said in a sense the whole of political debate in any country was detrimental to the safety of the public or the maintenance of public order.

Mr Kentridge said if one guessed wrongly what the minister's opinion was of

a statement or anything one published in a newspaper, the punishment for

guessing wrongly was inordinate.

Mr Kentridge said Regulation 12 was marginally better than 11 because there

was no reference to information that might be detrimental to the safety to

the public. He said it was more drastic in that it allowed the minister to

apply the seizure to any or all publications published by a person if he

was satisfied that one issue of the newspaper, for example, contained what

he thought was a subversive statement. Mr Kentridge said the minister might

make an order that related to every subsequent issue of the newspaper that

contained the statement and any other publication brought out by that company.

Mr Kentridge argued that the commissioner of police had not adhered to

Regulation 8 when he issued orders relating to the press by telex through the

South African Press Association. He said Regulation 8 which dealt with

promulgation of orders under the emergency was ultra vires, but added that

even if it were in order, the commissioner had not followed the regulation

because it did not provide for promulgation by telex as he had done.

Mr Kentridge was referring to two orders made by the commissioner of police

relating to the press.

The first forbade anyone from announcing, disseminating, distributing,

taking or sending out of South Africa any news or comment about any conduct

of a force or one of its members except with the commissioner's permission.

The second order prohibited journalists who were reporting from being in any

one black residential area or areas where unrest may be happening*

Mr Kentridge said even if it were possible to promulgate by telex, the actual

order had not been duly promulgated because what came out on telex was an

inaccurate paraphrase of the order made.

The hearing continues.

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52
SOUTH AFRICA

GROUP AREAS EXEMPTION POSSIBLE FOR CERTAIN AREAS

MB151757 Johannesburg THE CITIZEN in English 15 Aug 86 p 4

[Article by Tony Stirling]

[Text] Strong speculation exists in informed government circles in Pretoria

that certain urban areas in South Africa which because of housing pressures

have become mixed will be exempted from the provisions of the Group Areas

Act.

It is understood this was meant in a reference by Mr P.W. Botha, the State

President, to a new approach to the Group Areas issue.

It is being suggested that the government will permit as a status quo the

situation which had developed in areas like Hillbrow, Johannesburg, exempting

it from the provisions of the Act.

In so doing, the government would maintain separate areas of housing for the

different racial groups but allow mixed corridors, which have developed

naturally because of housing pressure, to continue to exist.

Such exemption would, it was pointed out, accommodate the government's plan

for mixed trading areas. Some officials go so far as to suggest that provision might eventually be mmde for the creation of mixed education facilities in these areas.

The sources said that because of the de facto situation in areas such as

Hillbrow, it appeared that policing of complaints of contraventions of

the Group Areas Act was largely confined to acting on specific complaints

of contraventions of the Act.

Much the same situation had prevailed during the build-up to the scrapping

of the Immorality Act and the Mixed Marriages Act.

The sources speculated that exemptions would apply only to areas where^mixing

had become an entrenched feature but that further mixed corridors could develop if the tendency spread to other areas. In this way Mr Botha could

keep his pledge of maintaining separate residential areas and other facilities for all race groups—but at the same time make provision for people to

be accommodated in mixed areas.

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53
SOUTH AFRICA

RIGHTWING PARTIES MEET IN PRETORIA

MB121310 Johannesburg SAPA in English 1053 GMT 12 Aug 86

[Text] Pretoria, Aug 12, SAPA—tfhe leaders of the Conservative Party [CP]

and the Herstigte Nasionale [HNP, Reformed National Party] Party met in

Pretoria this morning in yet another attempt to reconcile their political

differences and open the way for a permanent united right-wing front against

the National Party Government.

The CP leader, Dr Andries Treurhicht, and his HNP counterpart, Mr Jaap

Marals, accompanied by their leading party members met at mid-morning. A

working luncheon was also on schedule, spokesmen said.

Memoranda setting out their respective standpoints and dealing with policy

differences had been exchanged a few days abo but it was Impossible to say

how long the talks would last, a CP official said.

"It may last a long time, or there may be a walkout."

Repeated attempts to unite the two parties since the CP was formed in 1982

have failed, partly as a result of personality clashes between the two

leaders.

But when the two parties have agreed to cooperate in opposing the NP in

by-elections, as has happened a number of times already, the effect of a

combined right-wing against the government has been noticeable.

The NHP's first and only member of parliament, Mr Louis Stofberg, beat the

NP to win the Sasolburg constituency last year becasue the CP agreed not

to field a candidate and support him instead.

A similar pact has been agreed by the two parties for the Klipriver parliamentary by-election in September, where it will be a straight fight between

the HNP and the NP.

The leader of the extreme right-wing organisation, the Afrikaner Weerstandsbeweging, [Afrikaner Resistance Movement], - Mr. Eugene Terreblanche, has

repeatedly urged the two parties to unite so that "conservative" whites

can present a single front to the NP.

54
Besides the personality clashes between Dr Treurhicht and Mr Maraia, differences in the parties political philosophies are a major obstacle to a merger,

even though both of them essentially strive for the same ideal.

The HNP, which adheres strictly to the verwoerdian doctrine, broke away from

the NP, which was then led by Mr John Vorster, in the late 60s.

Dr Treurnicht and his faction split from the NP only in 1982 after a dispute

over the then prime minister Mr P.W. Botha's policy of power-sharing as

opposed to division of power.

A spokesman for the CP said if today's talks were "positive" a statement

would be issued late.

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SOUTH AFRICA

BRIEFS

LE GRANGE: NO JOURNALISTS CHARGED—House of Assembly, Aug 19, SAPA—The

police had not investigated any alleged offences by the media under the emergency regulations, the minister of law and order, Mr Louis le Grange, said

today. Replying in writing to a question from Mr Peter Soal (PFP [Progressive Federal Party] Johannesburg north), Mr Le Grange said no journalists

or newspapers had been charged with offences under the emergency regulations.

[Text] [Johannesburg SAPA in English 1640 GMT 19 Aug 86 MB] /6662

UNIVERSITIES 'SILENT MAJORITY'—House of Representatives, Aug 18 SAPA—Universities should not allow revolutionary elements to impose their will on

"the silent majority," the minister of national education, Mr F.W. der

Klerk, said today. Replying to the second reading debate on the universities amendment bill, he said he was concerned about the situation on certain

university campuses. Large amounts of money were being paid for the education of students and universities should not allow revolutionary elements

to impose their will on the silent majority. Mr Abe Williams (LP [Labor

Party] Mamre) said during the debate that he supported the call his party's

leader, the Reverend Alan Hendrickse, for the closure of the University.of

the Western Cape. He said there should be freedom of expression at universities but that freedom should not restrict the freedom of others. Mr De Klerk

said that in terms of the bill the committee of university principals would

prescribe the requirements for admission to universities and exemptions

from these requirements. Principals of black universities would not be

members of the committee, whereas before they had nominated representatives

to the committee. [Text] [Johannesburg SAPA In English 1616 GMT 18 Aug 86

MB] 76662

AFRIKAANS NEWSPAPERS TO COOPERATE—The chairman of Perskor, Dr Willen van

Heerden, has announced that steps to increase cooperation between the

Afrikaans newspapers DIE VADERLAND and DIE TRANSVALER will be made public

shortly, but that these will exclude the disappearance of any newspapers.

Dr Van Heerden was reacting to rumors on the merging of the two newspapers.

He also said in a statement in Johannesburg that there would be no retrenchment of any staff. The board of directors of Perskor announced today that

Mr G.J. (Kotze) has been appointed editor DIE VADERLAND from 1 September.

He succeeds Mr Harald Pakendorf who resigned recently. [Text] [Johannesburg

Domestic Service in English 0915 GMT 15 Aug 86 MB] /6662

56
NATAL: 'GUINEA PIG* FOR GOVERNMENT—House of Assembly, Aug 18 SAPA—The

government was using Natal as a "guinea pig" for its plans to extend "full

power-sharing" with blacks to the whole of South Africa, Mr Louis Stofberg

(NSP [Herstigte National Party] Sasolburg) said today. Opposing the second

reading of the joint executive authority for KwaZulu and Natal Bill, he said

it was the most significant legislation to come before the house this session.

The bill made it possible for a black man to become the second tier executive

authority for all of Natal and for a black language to become the third official language of South Africa. This was in conflict with the constitution.

The state president, Mr P.W. Botha, had said the proposed joint executive

authority for Natal could be extended to other provinces. "We are on the

road to a new dispensation. The government is bringing about a dispensation

where the black masses will be involved in real power-sharing for the f±rst

tt

time, first with the Zulus in Natal and then eventually full power-sharing.

[Text] [Johannesburg SAPA in English 1618 GMT 18 Aug 86 MB] /6662

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57
SOUTH AFRICA

BUTHELEZI SAYS BOTHA 'NOT MOVING FAST ENOUGH'

MB210954 Johannesburg SAPA in English 0944 GMT 21 Aug 86

[SAPA PR Wire Service; issued by the Chief Minister's office, Ulundi]

[Text] Newcastle, Friday—The mere scrapping of apartheid would not solve

South Africa's internal and external problems unless it were replaced by

something acceptable to all races, Chief Mangosuthu Buthelezi said

here today.

But this fact, he told executives at a luncheon at Talkirk Industries,

was something the state president and the government had so far failed

to grasp.

The KwaZulu chief minister and Inkatha president said he strongly rejected

internal manipulative influences by foreign countries—only this country

could solve its problems.

He warned, however, that it would be courting economic disaster to adopt

an arrogant go-it-alone attitude and its problems would be insoluble if

South Africa remained totally alienated from Western industrialized countries.

President P.W. Botha had shown courage in moving away from Verwoerdian

politics but he was not moving fast enough. The problem of managing real

reform was that the policy of giving "too little, too cautiously" was a

prescription for the kind of total disaster which it was designed to avoid.

Chief Buthelezi said that, despite every protestation by Mr Botha,

there had been no real negotiations between black and white and the

state president was still insisting on being the sole arbiter of what

reforms should take place.

He had not yet recognized that geographical entities must be racially mixed

entities. He continued to talk about a "country of minorities" and to hold

out the hope that South Africa could rediscover democracy and re-invent

a parliamentary process in which the principles of democracy could work.

In fact there was no prospect of moving towards a true democracy while

there was an insistence on criteria of race, color and creed.

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58
SOUTH AFRICA

BUTHELEZI DISCUSSES AFRIKANER-ZULU COEXISTENCE

MB230447 Johannesburg SAPA in English 2040 GMT 22 Aug 86

[Text] Durban, 22 Aug, SAPA—The guarantees of apartheid are 10-fold more

dangerous than any guarantees which whites have sought from blacks in

Africa, according to Chiefe Mangosuthu Buthelezi.

Addressing a meeting of the Afrikaner youth movement, the Junior Rapportreyerkorps, on the continued co-existence of Afrikaner and Zulu cultures, the

KwaZulu chief minister said today Afrikaners in particular had to grasp

the reality of being "white Africans."

If Afrikaners thought only of themselves and made their own interests

their prime interests, they would fail themselves and the whole of South

Africa.

He said Afrikaners often put forward the argument of "preserving their

culture" as a smoke-screen to promulgate laws which gave them control

over other cultural groups.

"Afrikaners never needed apartheid and its legislation to ensure cultural

survival. The very things that were drummed up in support of survival

of the Afrikaner have turned into threats which are ever-increasingly

becoming unmanageable," he said.

Chief Buthelezi said Afrikaners were also increasingly aware that they were

being subjected to a barrage of criticism that was denying them their

"value as human beings."

Yet if the recent National Party Congress in Durban was anything to go by,

the Afrikaners still had not come to the point of taking the black man's

hand and moving into the future with him, he said.

The Inkatha leader said he understood white fears and he believed that

sinner-take-all politics were the prescription for disaster. He said

blacks did not believe they had to "smash" whites to show them that

they could live in peaceful co-existence.

59
"That is why I am prepared to look at alternative forms of democracy

such as the federal and canton systems. But whatever system we end up

with in South Africa, history has already decreed that it must be a system

in which there is only one government for one people in our country."

Referring to Afrikaner fears that their identity would be swamped under

a black government, Chief Buthelezi said the Zulus had been crushed

by the British empire, yet today were a powerful political force to

be reckoned with. The Jews,had been persecuted for centuries, yet had

never lost their identity, he added.

He said Afrikaners should realize that animosity had not reached the

stage where blacks rejected everything Afrikaner "with contempt," but

the longer whites withheld power-sharing, the more likely blacks who wanted

to wrest it from them would succeed.

"There is no better guarantee for the future co-existence of Afrikaner

and Zulu cultures than for the state president to take the final bold steps

that will make his words that apartheid is outdated credible in black ears.

"If apartheid is not dismantled soon, neither Zulu nor Afrikaner culture,

nor for that matter any culture, will have any chance of any continued

co-existence if change is achieved through the barrel of a gun.

"We will finally end up with a culture for all the people dictated to

by a tyrannical regime in the name of the people," Chief Buthelezi said.

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60
SOUTH AFRICA

PEOPLE'S ARMY LEADER, ANC'S MODISE DISCUSSES STRUGGLE

EA111207 Addis Ababa Radio Freedom in English to South Africa 1930 GMT

10 Aug 86

["Continuation" of "exclusive interview" with Joe Modise, "senior commander"

of the People's Army, by unidentified reporter; date and place not

specified —recorded]

[Excerpt] [Reporter] [Passage omitted reviewing first, referent part of

interview] You mean these so-called [words indistinct] are all creations

of the regime? The regime has, the South African police and army have

denied that [words indistinct].

[Modise] In fact none of us expect them to admit (?it), because if they

admit that then this thing will be seen in its correct, in its proper

context. They will always deny it. But the fact of the matter is that

those (witdoekes) and those "a" teams that they are talking about, these

are part of the army and the police and also puppets who are collaborating

with the regime.

[Reporter] Comrade Commander, the ANC has been holding some meetings with

groups from South Africa including businessmen, political parties as well

as trade union organizations and democratic forces. Now, particularly

those are the forces that are not part of the democratic movement. What

does the ANC hope to achieve from (?these) talks.

[Modise] You see we have always stressed [words indistinct]. And

naturally, when our people come to us and they want to know.the alms

[word indistinct]. Even those who may not be agreeing with us, it is

our duty [word indistinct] then to explain the policies [words indistinct].

It is our duty to [words indistinct] the kind of South Africa that we intend

to build.

[Reporter] But now has there been any movement forward or any achievement

gained from these talks?

[Modise] A lot of achievement has been gained [words Indistinct] in that some

of these groups that are coming to see the ANC did not know that the ANC

[words indistinct]. These meetings have helped to get them to understand the

kind of movement the ANC is and it has also helped them to know the kind

of South Africa we would like to create.

61
[Reporter] Comrade commander, at the beginning of this month school term

started and it started at a time when students decided to boycott classes

in support of the call for a day of action by Cosatu. But the regime has

imposed on students to wear tags. Do you think that the regime is still

having control of the situation, particularly in the schools?

[Modise] This is an admission on the part of the regime that it has lost

control completely over our people and also the students in the schools.

In fact, the regime is trying to turn those schools into concentration

camps. These identity tags that the kids are going to wear, as far as

the regime is concerned they think this will enable them to [words indistinct]

students who are militant and who are opposing the regimes [word indistinct].

But we think that this method of [words indistinct] and all methods that

they have tried in the past.

Firstly, they have been talking about the abolition of passes. It is

another form of a pass — this identity tag that our kids will be wearing

when they go to school. In fact it is not going to help the regime.

It is going to aggravate the situation. Our people have reached a stage

where they are no longer [words indistinct]. They will fight it in

the schools, they will fight the regime in the schools, they will fight

the regime in the streets of our country, they will fight the regime in

the countryside. There is no way by which the regime can stop this

forward march on the part of our people.

[Reporter] Talking about the pass laws, the regime has said that it has

abolished the passes and it has also abolished a number of other apartheid

laws and [word.indistinct] apartheid laws. Now, do you mean that you

do not appreciate (?that) process?

[Modise] We have never asked for reforms. We have always said that

apartheid should be done away with. It should be destroyed completely.

And as far as we are concerned this abolition of passes is not doing the trick.

It is not doing the trick. This exercise is not coming for the first time.

In the past we were told immediately when the nationalist party came into

power that the passes were being abolished and the^ would [words indistinct].

We found that the reference book was worse than the original pass that

our people were carrying.

And we also believe that this latest exercise is going to be worsfe than :the

present pass that it being carried, by our people because the regime

says that the latest identity pass is going to be abolished. People are

going to be given identity cards and these identity cards are going

to be given to all the people, black and white people, but we know

that those who are going to be called upon to produce those identity

cards in the streets will be Africans and not the whites. And we are not

convinced that the abolition of these passes and its replacement by

these identity cards that they are talking about is going

to improve the situation of our people.

62
In any case, this is not what we are calling for. For us the change of

documents is no longer important. What is important now is for our people

to have power, political power, in their hands. What is important now

is that our people should rule themselves. We should do away with one

racial group dominating [words indistinct] where each and every person

will participate fully in the making of [words indistinct].

[Reporter] But then if you are not impressed by these reforms that presently

have come about, what would in your view, the ANC, constitute a dismantling

(?of apartheid)?

[Modise] In fact, we don't want to dismantle apartheid, we want to destroy

apartheid because some racists in the future may reassemble this

apartheid we want to do away with. Apartheid is an evil. It is a crime

against humanity. We would like to bring about a South Africa that is

free from any form of discrimination.

[Reporter] Comrade Commander, the regime has called on what, it calls

the nationalists in the ANC, actually Botha has said it in parliament

that he is ready to talk to them or they can come back home, even those

that in prison can come out and leave the so-called communists in the ANC.

What do you think is behind this statement?

\

[Modise] This is a devisive trick on the part öf the enemy and the enemy

will not succeed. We have seen the enemy in action. It is not the first

time that these divisive tricks have been employed by the enemy against

our people, against our movement. The ANC is a united body. In (?our)

deliberations of the national liberation movement, so far as.our

movement is concerned, all patriots who are prepared to help us destroy

apartheid are welcome. We do not ask for identities of people [words

indistinct] of the ANC as long as they are prepared to abide by the policies

of the movement and they are not agents of the enemy who are coming to

destroy the movement from within, such people, people who are genuine

patriots, are welcome in our movement and we in the ANC fight all the

enemy's tricks and will always fight for the unity of [words indistinct].

[Reporter] But then, at the same time are you not appearing intransigent

because you are maybe losing a chance which the regime is.giving over

to the ANC to come and to discuss and come back and establish peace

in the country? Is that not intransigence on the part of the ANC to be

consistently demanding the transfer of power?

[Modise] It is our right to demand the transfer of power. As far as we

are concerned, we do not expect, there is no chance here as far as we

are concerned, and we do not expect any handouts from the enemy. In fact,

we will create a situation where the enemy is going to be.compelled to

hand over that power. We are not going to be invited by him. We are

going to force the enemy to transfer that power to the people and the ANC

with the support of our people has got that capacity and this must be very

clear in the minds of those who are now withholding power from the people tha^

their time is running out and is running out very, very rapidly. We have

got the capacity to take power [words indistinct].

63
[Reporter] But they have called on the ANC to be involved in the process

of power sharing?

[Modise] Power sharing with whom, power sharing with whom? Why, why do

we have that problem? Why is it difficult for them to have a referendum,

a national referendum, not a racial referendum, and find out from our

people as to what kind of South Africa is wanted? Why don't they

do that? Why don't they, they said that they are a people who believe

in democracy why? Why cannot they put this whole process to a test?

We called upon them in 1955. The ANC had a referendum, a congress of

the people took place where the entire nation participated and there

they decided on a document which.was going to guide a future South Africa.

Why can't they do that? Why can't they do the same? Why can't they

have a referendum where we will be equal, where our people will be able

to decide on the policies of that country? So as far as we are concerned,

there is no intransigence on our part.

[Reporter] So the ANC believes in the intensification of the armed struggle?

[Modise] That is the only way open to us. That is the only way open to us

and we did not take this decision very lightly; we were forced by that

regime and the oppression that is being carried out, carried out against

our people to take up arms against that regime and we are going to

continue developing [words indistinct] to a point where the enemy is going

to [word indistinct].

[Reporter] But you have been called upon to renounce violence and come back

home or to participate in the process of doing away with apartheid.

[Modise] We cannot give up the only means of bringing about changes in that

country. If we must stop armed struggle and go back to Botha and go and

negotiate with Botha there is very little to be expected from that. We

do not expect Botha to give up power voluntarily. He is not going to do that.

The only way in which Botha is going to transfer power is when Botha is

faced with a fighting people and a people who are fighting with arms in

their hands.

[Reporter] Now comrade commander., what would be your command to the

fighting people of South Africa and the combatants of the Umkhonto we Sizwe?

[Modise] This is the 25th anniversary of Umkhonto we Sizwe. Our movement has

given us the order to escalate the struggle. We in turn, as commanders of

Umkhonto we Sizwe, are calling upon all our combatants throughout the

country to intensify the struggle.

In fact, we are saying to them they must take the struggle away from the black

townships and take it to the seat of apartheid. They must take it to those

who are legislating against our people. In other words, what we are trying,

what I am trying to say is that wherever there is an (MK) soldier, that

soldier must intensify the struggle against the common enemy.

64
We also call upon the working people of South Africa, wherever they are,

to support (MK) and continue with the popular struggle against the enemy.

This goes for our students, this goes for our youth. It goes for the

entire nation. The time has come for us to force that regime out of power

and bring about a people's South Africa, a South Africa in which ;,

each and every person will live, freely, happily and peacefully.

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65
SOUTH AFRICA

ANC'S MAHARAJ ON CONSOLIDATING STRUGGLE

EA221119 Addis Ababa Radio Freedom in English to South Africa 1930 GMT

21 Aug 86

[Remarks by Mac Maharaj, ANC national executive committee member; date and

place not given—recorded]

[Text] [Announcer] Compatriots, the emergence of the UDF [United Democratic

Frönt] into the political scene of our country came when our nation was

already using among other methods armed struggle. But the UDF clearly

declared that it is a non-violent organization, and that it will pursue

all its activities without resorting to violent confrontation with the

system. But the fact of the matter is that we are faced with a violent

enemy, a regime that relies on vicious violence and repression to maintain

itself in power. In the situation obtainable in our country today it will

not be possible for any organization fighting against the racist regime

not to meet with the violent repression of the Pretoria regime.

Is this not a contradition that such a patriotic organization like the

UDF can, at this epoch, declare itself a non-violent organization? In

responding to that question Comrade Mac Maharaj, a member of the National

Executive Committee of the ANC and senior officer in the ranks of Umkhonto

We Sizwe, draws our attention to the importance of consolidating all

the four pillars of our struggle, especially armed struggle, mass

mobilization and underground organization.

[Begin Maharaj recording] The regime has always [word indistinct] on a

situation working to divide our people. Now the clearly visible form

is the way in which it divides Africans, Indians, so-called coloreds,

the way it divides among the African people Zulu, Xhosa, Shona, Venda,

or whatever you have. Now the other aspect of it: «By imposing conditions

of illegality on our struggle for liberation, it has forced us to a position

where different planes of action, different arenas of illegality on our

struggle for liberation, it has forced us to a position where different

planes of action, different arenas of struggle become somewhat isolated

from each other. The ANC position is very clear. We have formulated,

as far back as 1969, a clear strategy and tactics for revolutionary change.

We have emplified that, given that more flesh from time to time. The

basic elements of that strategy, as I said earlier, are one of a peoples

war. In fact we have forseen it as a protracted peoples war.

66
Without going into details of that, what are the major elements?

Comrade Nelson Mandela in a message that he smuggled out from prison said

at the end of his message that it is between the anvil of united mass action

and the hammer of the armed struggle that we shall crush white domination in

our country. He isolated therefore, in that statement the arena of orthodox

political struggle and the arena of armed struggle. Bridging these two is

the underground network of the revolutionary vanguard of the ANC, the political

network of the revolutionary vanguard of the,ANC, the political network

inside the country. Therefore, one of the problems that we have to constantly

ask ourselves, activists inside the country and outside, all the time,

is that we who are forced to work in specific arenas do not begin to see

the overall strategy for change only from the perception that we acquire

through the compartment in which we work. If we do that we would be

making a major — committing a major error in the advancement of our struggle.

Mass mobilization, united mass action, has been the consistent message of

the ANC and in fact, last year and this year, in his January the eighth

messages, our President Comrade Tambo consistently worked at this problem,

calling upon our people to unite in action, calling for unity in action.

His emphasis were on unity and on mass action. I believe he was responding

correctly to the situation in our country. Now, that action is Important

in itself. Let no one denigrate what the masses of our people are doing.

Let no one underestimate the importance of that work, becuase it is the

school of politics, the school of revolution. But alone, it is confined

to the bounds of legality Imposed by the regime, and it is true from

time to time by vigorous mass action it is possible to extend that area of

legality, as from time to time in upsurges, our people at home viturally

make the ANC legal and make the regime powerless to impose its laws.

Nonetheless, they work in that confined arena. It is, as I said, the

school of revolution.

But it is the point which needs to be linked to armed action and armed

struggle, and to underground political:work, because you can explain

within the bounds of legality the conditions that our people endure

in the process of mobilizing. They will always be running the gauntlet

with the law. But we can never (?accept) that we should explain to our

masses within the bounds of legality. The true explanation of our system,

of its real meaning for our people, has got to be explained with the freedom

that is not available within the law of our country. The ANC, therefore,

has to speak, and speak without regard to the legal restrictions imposed.

And it had to organize the best, the most steeled, that emerged in the mass

struggle. And it has to link such forces carefully.with the development

of our armed struggle.

I think commentators have been remarking that one of the specific features

of the actions of Umkhonto We Sizwe over the recent years has been the

increasing linkages between what Umkhonto does and what the masses are

doing. And that is correct. Because what we do at the armed struggle

if we are to develop peoples war must be such that irrespective of what

the enemy does, irrespective of how the enemy seeks to block us the masses

67
feel what is taking place and what is done by Umkhonto are something that

is in defence of them, of their interest, in advancement of their interest,

and therefore come to see the need that they themselves have to get

involved in that armed struggle and armed action. It is by uniting these

three major elements, bringing them together, that we will achieve our

victory. But again comrades, let us not underestimate the difficulty

in our (?work). This unity of these elements, this bringing together

these three elements so that they act in coordination, is not something

that can be just imposed, and is not something that can be answered in

simple rules by sitting over a table and working out a diagrammatic

representation of the relationships.

It will take the forms that are dictated by the actual conditions in which

we are struggling. It involves the different strategy, different

tactics, for different areas of our country, urban and rural, the differences

that are seen between one urban area and another, the differences that are

seen between one rural area and another. To each of these the structural forms

in which each is brought closer together will have to be worked out as

the struggle unfolds. The important thing is that each of us, in whichever

arena we may be involved, must always ask ourselves: Is our particular

perception of the way forward not being distorted by the fact that We

are concentrating on one arena of struggle?

I think that the ANC, with its history, with its experience, and with

the fact that it maintains a rear base, and a powerful rear base outside

the country, forced by the enemy, has today an advantage in that it is able

to take stock of its overall situation (?and) keep mapping the way forward.

This is why it is not necessary for us to claim [words indistinct]. What is

important is to see how the strategy is unfolding and to see which way

to push it forward for further effect. [end recording]

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SOUTH AFRICA

ANC RADIO HAILS SWAPO STRUGGLE

EA261127 Addis Ababa Radio Freedom In English to South Africa 1930 GMT

25 Aug 86

[Station commentary: "We Stand With our Brotherly People of Namibia]

[Text] Compatriots, when the sisterly people of Namibia mark the

20th anniversary of the launching of the armed liberation struggle in

that territory tomorrow, they shall do so with spears in their hands,

for they are today better posed to destroy that regime of racial

domination in their country. This anniversary of the formation of the People's

Liberation Army of Namibia, PLAN, comes at a time when the racists

themselves have admitted on more than one occasion that the war in

Namibia is proving to be very costly for them.

At one stage, they even appealed to their friends in the western world

to assist them in continuing the occupation of that territory. These

developments were not simply a natural phenomena, but they were as a result

of the heroic struggles waged by the people of Namibia. During the

past 20 years, combatants of plan have demonstrated unparalleled

determination to face up to Botha's military machine. Today, it is

estimated that more than 100,000 apartheid troops are pinned down in the

war in Namibia and others are engaged in the war.of aggression against Angola.

Conservative estimates put the expenses Incurred by the Boers in Namibia

because of the war at 1 million rand a day. This sky high war budget

shows how determined the Boers are in holding onto that country for a

long time to come.

A question may arise, why are the Boers so much committed to maintaining

their domination of that country? Would it not be better for them to

give up Namibia since it is clear that they are losing a lot because

of that war? Why are the western countries also backing them up in their

continued occupation of that territory, despite a pile of international

resolutions calling on the Boers to give independence to Namibia?

Why continue with a war that has drastically undermined the morale of

the apartheid army? The answer to these questions is simple. Namibia

is very rich in minerals. The racists know very well that immediately they

can give over the control of Namibia to SWAPO, it will not be that easy

for them to obtain those minerals. The Boers are also using the issue

69
of Namibia to blackmail the western countries by telling them that if it

loses its control, the west will also lose its main source of minerals

and raw materials.

Nowadays as the world is discussing the issue of sanctions against Pretoria,

the racists are harping on the issue of vital minerals which the west will

lose as a result of sanctions. The west also is very much interested

in the continued occupation of that country.

In the early seventies, an international convention was issued calling

on all countries to cease extracting any minerals from occupied Namibia.

The convention declared it a crime for any.country to extract or deal

in any way with the minerals from Namibia. But, up to now, the leading

western imperialist countries are refusing to listen. Instead, they

are increasing their involvement and are illegally exploiting the national

heritage of the Namibian people.

On the other hand, the racists, together with their western backers, are

not in any way prepared to let Namibians to govern their own country because

of the strategic importance of that territory. The Boers are using

Namibia to launch their unprovoked war of aggression against Angola and

other frontline states. Earlier this month, Angola reported yet another

incursion by the racists into one of its towns in the south.

The capitalist countries, on the other hand, support the war against Angola,

because the independent line of development followed by Angola is not in

their interests. It is that determination to overthrow the MPLA-LED

government that made the President of the United States, Ronald Reagan,

to stoop so low in January this year and hold a meeting with Jonas Savimbi,

the discredited sell-out of the African cause.

So the Pretoria regime and its patrons in the world know very well that a

patriotic government in Namibia will never allow its territory to be

used aggression.

The heroic people of Namibia are not taking these developments lying down.

The whole population of Namibia is highly mobilized against occupation to

a point where the enemy knows very well that it can get no cooperation from

the local (?population). Its puppets who have agreed to sell their manhood

for a mess of potage have been exposed and discredited.

Because of this high level of political awareness, the enemy has failed

on more than one occasion to impose its own solution on the Namibian people.

Its so-called internal settlements which excluded SWAPO have been rejected

and rendered ineffective. Instead, since 1984 we have seen a number of

politicians from the so-called internal party joining SWAPO to a point

where even the racists have had to express [word indistinct].

On the military front, the people of Namibia are intensifying armed struggle.

Today, the shelling of apartheid military establishment has become a

70
frequent occurrence. Despite attempts by the enemy to play down SWAPO's

victories in the battlefields, reports continue to speak of low morale

within the enemy army with quite a number of young whites dodging"

military service. Even white parents have started complaining about

the increasing number of their sons who are perishing on the war

fronts or at the border. ^

Fellow countrymen, we, the people of South Africa, cannot remain

spectators in that war of occupation. The soldiers that are occupying

Namibia are our compatriots. The clothes that they put on, the weapons

they use, all their supplies come from our sweat and blood. With our

labors at our places of employment, we maintain that war.

The very same army that is occupying our townships is the very same army

that is occupying Namibia. The commanders that plan atrocities against

the Namibian civilians are still those who planned and executed the

countless massacres against our people. Therefore, the war that the

people of Namibia under the leadership of SWAPO are engaged in is

intricately bound up with the war that we are fighting in the dusty

streets of our townships.

In this regard, we call on our white compatriots to do something to cripple

the apartheid war machinery which rests in their hands. We say to them,

those who are opposed to all the military crimes that are being committed

in the name of civilization, those who are opposed to the state of

emergency, must do something today against that army of occupation and

aggression. That army can never last a day longer without the support

of the white South African population.

We therefore call on our young white compatriots to escalate the level of

war resistance. Refuse to murder the people of Namibia. Refuse to

massacre the population of southern Africa. Refuse to be sent to the

townships. Our call also goes to the entire white community of our

country. The arrogant Nazi-style speeches that were made recently at the

Nationalist Party's Federal Congress in Durban were a call to whites to

throw in their lot with racist domination.

We call on them to refuse to join Botha in his attempts to salvage his

policies. It is high time for them to realize now that Botha cannot

guarantee their security. To guarantee its own security,, white South Africa

has to come over to the side of the forces fighting for a democratic and

nonracial society. The alternative that Botha offers them, that of pitting

themselves against the overwhelming majority of the people of our country and

of Namibia, is nothing but a death trap. Nothing will come of it except

grief for the whole white population in South Africa. We offer our white

compatriots the only way out of the crisis which will surely engulf them, and

that in the near future. Renounce Botha and his racist policies. Join

the antiracist forces in the struggle for a democratic South Africa.

71
To us, the oppressed black majority, this day of solidarity with our

Namibian comrades must serve to strengthen our resolve to fight and

defeat this racist regime. The only way in which we can pledge our

active solidarity with our Namibian comrades is to intensify the

struggle here at home. Let us strike with one first against the common

enemy. Let us deny the apartheid war machinery in Namibia its traditional

rear facilities. We must refuse to allow them to make our country their

rear and the wells which produce their resources. Our task in this

campaign is to reduce to the minimum anything they get from our labor.

If we say we are against the War of occupation that the.regime is

fighting in Namibia, it means that we must do our best to stop it...

Sabotage campaigns must be stepped up. Already the apartheid economy

is in crisis. It is in shambles. What is left is for us to push it

further down by crippling everything at our places of employment, whilst

at the same time we intensify our strikes for better wages and humane

working conditions. The time to act against apartheid occupation is now.

So let us act in unity with our Namibian comrades. Act in unity and

unite in action.

/12624

CSO: 3400/470

72
SOUTH AFRICA

INKATHA SUPPORT OF VIGILANTES AGAINST UDF, COSATU CONTINUING

Johannesburg WORK IN PROGRESS in English No 43, Aug 86 pp 10-12

[Text] Inkatha claims commitment to policy of non-violence. But

allegations pf inkatha-linked vigilante action against UDF and COSATU

supporters in Natal continue* And there is evidence that senior

Inkatha and KwaZulu officials are involved in the violent suppression

of opposition. A resident from one of Natal's

African townships reports.*

Inkatha's claimed image of non-violence

is in jeopardy as allegations of its

involvement in vigilante action grow.

Inkatha president, Chief Gatsha

Buthelezi, has flatly denied accusations

levelled against Inkatha. But Inkatha

central committee and KwaZulu

Legislative Assembly members make no

bones about their 'programme of action'

which aims at making Inkatha the only

functioning political organisation in

Natal. Their message is clear. 'We are

at war with the UDF, COSATU and the

ANC.

And Inkatha central committee member

Thomas Shabalala, who claims to control

Durban's 'impis*, has said that he

'longs for the day when there will be

open war between the UDF and Inkatha -

it will prove who is who in the

political battle'.

Vigilantes Form Under 'Code 26'

Code 26 is an electoral district for

the KwaZulu Legislative Assembly. It

incorporates townships to the North

and West of Durban. The area is said

to be the force behind the impis, and

vigilante leaders associated with

Inkatha boast about their achieve«

ments under 'Code 26*.

According to vigilante leaders, the

decision to launch vigilante actions

against UDF elements in Natal townships

was taken at a meeting attended by

Inkatha branch chairmen and KwaZulu

councillors from Code 26. Certainly,

much of the vigilante action

of the past year has taken place in

townships within the area - Clermont,

Ntuzuma, KwaMashu, Inanda and Hambanati.

When heavily-armed vigilante groups

first moved into the streets of KwaMashu

and Umlazi last August, the commercial

media hailed them as 'Inkatha peacekeeping forces' quelling the unrest. But

'keeping the peace' soon turned into

*At the request of the contributor, WIP editors have withheld his name.

73
midnight raids on homes of people

identified as 'inkatha enemies'.

In many cases, perpetrators of

violence were identified by victims.

Hundreds of affidavits and sworn

statements were made to the Legal

Resources Centre, Black Sash, and

lawyers. But only a few arrests have

been made - one ironically where a

policeman was an accidental victim of an

attack.

For the past 11 months, the war in

these townships has been between UDF and

Inkatha supporters. But recently COSATU

has found itself in the firing line

after the emergence of hostilities

between it and Inkatha. These led to the

formation of a rival union - the profree enterprise and anti-disinvestment

United Workers Union of South Africa

(UWUSA).

The case of ex-Metal and Allied

Workers Union shop steward, Bheki Msomi,

is typical of allegations to emerge from

townships. In an affidavit he described

how, at about midnight, a group of men,

some carrying guns, arrived at his

Umlazi home. The group included

Winnington Sabelo, a KwaZulu Legislative

Assembly and Inkatha central committee

member. Having ransacked the house they

•forced me into a white econobus,

punching and prodding me with an

assegai. I was taken to a local hotel

owned by another Inkatha man, where I

was hit with sticks, knobkerries and

being severely beaten*.

Msomi was then handed over to Umlazi

police and held at the police station

for two days. 'On the night of my

release my home was petrol-bombed by

attackers whom I positively identified.

I was severely burnt and admitted to

hospital with my younger brother who

was shot in the head and paralysed'

during the attack. The Msomi house was

burnt to the ground, and everything

inside was destroyed.

'During my stay in hospital I was

recognised by a man who had been party

to the attack. He behaved suspiciously

When a lawyer acting for Msomi

attempted to lay a complaint against

Sabelo at the Umlazi police station, he

was allegedly told that Sabelo could not

be charged because he was a senior

member of Inkatha.

Lawyers acting for Msomi intend to

bring a civil claim against Sabelo. But

they are currently waiting for a

decision from the attorney-general on

whether to charge Sabelo with attempted

murder and arson.

A number of legal actions concerning

vigilante activity are pending in the

Natal courts. In some, allegations of

KwaZulu police collusion with vigilantes

have been made. In Natal courts:

* two Inkatha youth brigade members and

two KwaZulu policemen were charged with

attacking the home of COSATU's regional

secretary;

* an Inkatha Women's Brigad» member was

restrained by the Durban Supreme Court

from threatening a UDF activist and his

family, or damaging their property;

* a KwaMashu Inkatha leader was

restrained by the supreme court from

assaulting or abducting a widow whose

husband had been killed in a vigilante

attack in May;

* an Inkatha leader and councillor from

Umlazi, Zithulele Ngcobo, faces a murder

charge following the killing of an

Umlazi Youth League member.

/SHABALALA*S PRIVATE AJMY\

In another court action, the Durban

Supreme Court granted a temporary

interdict restraining Thomas Mandla

Shabalala, a prominent Inkatha member in

Lindelani, from assaulting a couple in

the area who support the UDF.

Thomas Shabalala is a KwaZulu

Legislative Assembly and Inkatha central

committee member. He has turned his

100 000-strong Lindelani shack community

into the headquarters of widely-feared

and I asked for an early discharge from imP

i

combatants. In an interview, he

the hospital as I feared for my life'. disclosed that the decision to form the

74
impis, whom he refers to as 'abavikeli'

(protectors), was taken at a meeting of

all Inkatha branch chairmen and KwaZulu

councillors under Code 26. The aim was

to 'stamp out the UDF-created unrest*.

Shabalala sees this plan of action as

similar to the M-plan - Nelson Mandela's

plan for liberated areas. But in this

case, the aim is to secure Natal, for

Inkatha.

Vigilantes under his command and that

of his chief lieutenant, Emmanuel

'Phondolwendlovu' Khanyile, receive R24

each per 'mission' - although it was not

clear from the interview what these

missions are.

Shabalala alone commands a personal

army of 208, each paid R130 a month.

This salary is raised from the R3

monthly contribution each household is

forced to pay in the 9 000 shack

settlement.

Apart from this, Shabalala says that

because Lindelani is 'Inkatha

territory', residents have to pay an

Inkatha membership subscription of RIO.

Those unable to afford this pay in kind

- often through labour. Employed workers

have to pay an additional UWUSA

membership fee of RIO. In Shabalala's

words, 'Lindelani is no home for UDF and

COSATU, as townships like Chesterville,

Lamontville, Clermont and others are no

home for Inkatha'.

At the March National Education Crisis

Conference (NECC) held in Durban, two

busloads of armed men attacked

conference delegates. PUTCO disclosed

that the two buses transporting armed

men to the NECC meeting were hired out

to Inkatha members. And one of the minibuses accompanying the armed attackers

was traced to the KwaZulu Department of

Works, headed by Inkatha deputy generalsecretary Simon Gumede.

At the time, Buthelezi denied Inkatha

involvement in the attack, and asked:

•Why should we be blamed for attacks by

people wearing Inkatha uniform?' He went

on to accuse the NECC of being 'in

cahoots with the ANC.

But surprisingly, Shabalala confirmed

that his supporters did go to the

/9274

CSO: 3400/445

conference in two buses to 'attend as

other black parents concerned with the

education of their children'.

/THE STRUGGLE FOR NATAL\

Buthelezi is caught in a dilemma. If he

publicly condones attacks by Inkatha

members, he will compromise Inkatha's

much-publicised policy of 'nonviolence'. But if he publicly reprimands

senior colleagues involved in vigilante

activities he may loose scores of

militant supporters.

COSATU, despite having suffered as a

result of political hostilities, has

thusfar avoided an open battle. It was

only recently that the Natal COSATU

region called on its members to form

defence units in factories and townships

against attacks by what it called

'state-sponsored Inkatha functionaries'.

It then released a dossier of 'incidents

of violence, threats of violence and

assaults on- unionists in Natal. This

contained affidavits and sworn

statements which implicated 'senior

Inkatha functionaries, KwaZulu and

South African police, and three KwaZulu

cabinet members'.

Attempts to obtain Inkatha's response

to these allegations have been

unsuccessful. A Durban Sunday newspaper

contacted the cabinet ministers named in

the dossier for comment. But lawyers

representing Inkatha threatened to bring

an interdict against the newspaper to

stop it publishing the contents of the

dossier. Likewise, attempts by a

Johanneburg-based weekly newspaper to

obtain Inkatha comment drew a blank.

Attacks and counter-attacks in the

struggle for the political soul of Natal

continue unabated. Vigilante activity

has spread to distant townships in

Pletermaritzburg, Newcastle and

Empangeni. As the battle-lines are

drawn, not only Inkatha's credibility in

the urban areas, but its claimed policy

of non-violence, are at stake.

75
SOUTH AFRICA

INKATHA-COSATU RIVALRY IN NATAL TOWNSHIPS DESCRIBED

Johannesburg WORK IN PROGRESS in English No 43, Aug 86 pp 18-24

[Text]

An alliance between COSATD and Inkatha in Natal is

impossible. This is because of Inkatha's

structure, and its hostility to working-class

issues and politics. But, argues MIKE MORRIS,

the May Day rallies show that COSATU and

Inkatha are the only two serious forces in

Natal's townships.

For serious trade unionists in Natal the

threat that Inkatha and UWUSA pose is

one of the most pressing items on the

agenda. If there was an initial attempt

to dismiss the issue as irrelevant, this

is no longer the case in a number of

important trade union and political

circles.

There are three main reasons for this:

* The Kings Park May Day rally

demonstrated that Inkatha has mass

appeal in Natal including

serious working-class support;

* the daily struggles Natal

COSATU unions are engaged in

to hold their members in

factories;

* Inkatha members' violent

onslaught on leading UDF

and COSATU members in the

African townships, to the

extent that the UDF

organisational presence in

most African townships in

Natal is now fairly minimal.

These events may have produced

a more sober perspective on

Inkatha'8 ability to disrupt trade

union and alternative political

organisation in Natal. But they have not

necessarily been accompanied by a sound

and critical analysis of what this

development represents. There is

enormous pressure to import the same

tactics and strategies being used in

other parts of the country and to deny

the specific regional characteristics of

Natal. This makes it extremely difficult

for those organisations opposed to

Inkatha to develop the appropriate

tactics and strategy for Natal.

This denial of the regional

specificity of Natal is an

understandable, but nonetheless highly

inadequate, reaction to capital and

Inkatha's attempt to assert the

'uniqueness' of Natal and hence the

necessity for what they have termed 'the

KwaNatal option'.

Phillip Van Niekerk's article on

Inkatha and May Day in Durban (WIP 42)

is interesting precisely because he both

acknowledges the regional specificity of

Natal and the necessity of coming to

terms with the peculiar political place

that Inkatha occupies within this

region. The main thrust of his argument

- that May Day in Durban demonstrated

76
serious support for Inkatha amongst Zulu

workers - is undoubtedly correct.

Between 50 000 and 70 000 people

attended the Kings Park rally whilst

COSATU's Curries Fountain rally only

attracted 8 000-12 000. Van Niekerk,

however, misses some of the important

complexities of this phenomenon and

hence is not able to suggest the

appropriate strategy and tactics for

COSATU in the region.

THE HAY DAY RALLIES

Van Niekerk argues that once COSATU

entered Inkatha's terrain (ie the

political arena) Inkatha had no choice

but to take the battle to COSATU by

entering into its own terrain (ie trade

unionism). Hence the strategic decision

to set up UWUSA in order to undermine

COSATU in the factories and the

consequent tactical choice of May Day to

ostensibly launch UWUSA.

In fact the main point of the Kings

Park rally was to embarrass COSATU

politically by demonstrating Inkatha's

support amongst the African urban and

rural community. Based simply on the

relative attendance numbers, this

political objective was in the main

achieved.

But was it strategically wise of

Inkatha to launch UWUSA via May Day to

achieve this political aim? And if not,

what are the implications for trade

union and political struggles in this

region? How can they gain from what I

will suggest is a strategic error on

Inkatha's part?

Notwithstanding the clear support

Buthelezi demonstrated by the Kings Park

rally he made a serious mistake both in

the short and the long term. His

cleverest move would have been to remain

solely on the political terrain with

which he was already familiar, and

fairly well grounded in - Inkatha»s

ethnic appeals to 'Zulu nationality' and

a conservative 'bourgeois democratic'

solution. By moving into the trade

union terrain he ironically decreased

the potential short-term support he

could have demonstrated in his Kings

Park rally. And in the long term he also

laid his organisation open to being

shown to be incompetent in this new and

unfamiliar terrain of factory-based

struggles.

This difficult issue of Zulu cultural

and ethnic identity which so strikingly

pervades Natal, and is the reactionary

basis of Buthelezi's power base in

Inkatha, will not necessarily carry the

same weight as factory-based struggles

over working and service conditions.

Ironically Buthelezi could even have

increased the crowd attending the Kings

Park rally if it had not been linked to

an alternative trade union organisation.

Zulu workers are loyal to their Zulu

ethnicity - an issue that is very poorly

understood - but they are also loyal to

the trade unions that have struggled so

hard to alter conditions on the factory

floor. Many workers who might well have

attended a rally by virtue of their

membership of Inkatha, or political

agreement with Buthelezi, or ethnic

identification, or tribal loyalty, were

faced with having to support a rival

union by going to Kings Park because the

rally was publicised as the launch of

UWUSA. As a result many of them chose

rather to stay away precisely because

they realised that, notwithstanding

their political/ cultural/ethnic

sentiments, attending also meant

supporting a rival union in direct

competition with their own union.

In the build-up to May Day one of the

strongest arguments that organisers and

shop stewards in COSATU were able to use

in the clashes amongst union members in

their factories was that going to the

Kings Park rally was not in fact

attending an Inkatha rally but a rival

union meeting. In a number of factories

the workers agreed, in order to avoid

further divisive conflict over the

issue, that union members who wanted to

demonstrate their support for Inkatha

should rather just stay at home. In many

77
cases this is what occurred, and union

members attended neither May Day rally.

Some staunch Inkatha supporters

suprisingly attended the Curries

Fountain COSATU rally precisely because,

as one worker who is also a member of

the Kwa Mashu amabutho put it:

'The pamphlet calling us to Kings Park

was signed by another union. We don't

know that union. We know Inkatha and we

know our own union, but we don't know

this other union and we won't

support another union except our own'.

Whilst the Kings Park rally attracted

a clear cross-section of the Zulu

speaking-population in class and

occupational terms, including a fairly

large contingent of rural youth,

Inkatha's appeal to the African urban

youth is limited. Its recent attempt to

call a 16 June rally around the issue of

education, with Buthelezi as the main

speaker, attracted, according to

newspaper reports, only between 3 000

and 6 000.

On the other hand, the COSATU May Day

rally at Curries Fountain was much more

solidly working-class in its

composition. This in itself is very

interesting. The rally was a joint

affair between C0SATÜ and the UDF and

the latter was formally given equal, and

indeed in practice more than equal,

status in the organisation of the event

and in access to the platform. Yet,

despite this, the crowd was

overwhelmingly composed of organised

workers from the COSATU unions.

So, under extremely favourable

conditions, the UDF/Natal Indian

Congress did not seem able to pull in a

large number of additional, non-union

supporters. The Durban Labour Monitoring

Group estimated the composition of the

crowd to be about 80% organised workers

from COSATU unions whilst the majority

of the remaining 20% were black students

and unemployed youth.

The inability of the NIC to attract

Indian participants to the rally was

very marked. This was all the more so

since there were a large number of

Indian workers who were not at work on

that day, primarily due to the Garment

Workers Union negotiating the day off

through the regional industrial council.

There are some obvious questions that

spring to mind when faced with the logic

of this numbers exercise: does taking

account of the regional specificity of

Natal mean that COSATU should do an

about face and form a tactical alliance

with Inkatha? Should Inkatha not be

accorded the same status as other

nationalist movements, and therefore

should COSATU not be willing to work

with Inkatha, given the fact that it has

demonstrated its greater appeal in this

region?

These are important questions that

have to be seriously asked and answered.

Otherwise one is at an organisational

loss to provide workers who are Inkatha

members with the answers to questions

which, even if they are not openly

expressing, they are certainly

thinking about.

Answers also depend on the

organisational and class perspective

from which the questions are posed. A

working-class organisation like COSATU,

which is committed to working-class

leadership, working-class democratic

structures for decision-making, and

has shown clear tendencies towards

socialist solutions, will have a

different perspective from a more

nationalist organisation dominated by

the petty bourgeoisie.

A TACTICAL ALLIANCE WITH INKATHA?

Without going into too much detail on

Inkatha, there are critical

characteristics of this organisation

which make it extremely problematic for

COSATU to attempt to strike up a longterm strategical alliance with it.

There is an important history in Natal

between Inkatha and COSATU*s predecessor

(the Federation of South African Trade

Unions - FOSATU) which has great bearing

on this issue. FOSATU was able to

78
coexist uneasily with Inkatha whilst it INKATHA'S POLITICAL STYLE

built up its trade union base in Natal.

But this was increasingly breaking down

as FOSATU attempted to take a more By all acounts this is a style that

political lead on community and national permeates Inkatha - whether one is

issues in the region. talking about the top of the

For example, FOSATU made a number of organisation where power is really

attempts to gain Inkatha's co-operation concentrated or the smallest TnM*h»

over the consumer boycott in mid-1985 in leader in any particular community. It

order to avoid violence and ensure the is what makes it possible for workers

maximum grassroots pressure on the

state. These bore no fruit: Inkatha

never demonstrated a public willingness

to back the consumer boycott and

mobilise its members to take any overt

supportive action on the issue.

Inkatha's attitude vacillated between

passive inactivity and active hostility.

By the latter months of 1985 both FOSATU Chinese warlords.

(both pro- and anti-Inkatha) to speak,

with some material substance, of

Buthelezi as synonymous with the

organisation itself. It is what also

grants such enormous ideological

legitimacy to local Inkatha leaders,

smaller self-styled 'mtwanas', who rule

in particular areas like latterday

and Inkatha were heading for a showdown

of some sorts - the only issue was when

and on whose tactical ground this would

occur.

So, although it is debatable as to

whether the COSATU leadership chose the

right time, terrain, or style in

Of course, the material basis of the

power of the local Inkatha leadership is

much more complex and derived from the

varied functions they perform in the

communities they preside over give and

protection to.

But the important point is that the

allowing this conflict to surface, it is manner in which power is located within

the structures of Inkatha is

incompatible with the manner in which

the larger COSATU unions attempt to

distribute power. That is why the first

task and potential conflict any serious

trade unionist often faces in a newlyrecruited Natal factory is tactfully to

break the practice of nominating one of

the 'mtwanas' in the factory as the

spokesperson for the workers. Instead,

this practice is replaced with

democratically-elected shop steward

committees, report backs, strict

mandates etc.

This is not simply a matter of degrees

of democracy, or the inadequate

not very surprising that it broke out

into the open so bitterly. For Inkatha

displays characteristics that make it

opposed to working-class practices.

Although it is part and parcel of a

capitalist society, it displays some of

the characteristics of a pre-capitalist

ethnic or nationalist movement where

decision-making structures are based on

ethnically-ascribed power relations.

The most common form that this takes

is the tribal power ascribed to

representatives of the royal Zulu line

(known as the 'mtwanas') who, by virtue

of this status, are now granted enormous

power and act as the repository of

wisdom.

_ . . . . utilisation of democratic structures and

^\! r?f„°L!^! ?°W?Ld!!!_?°IiUSt Procedures - it is that these structures

are of another character altogether.

There seems to be no practice of direct

democracy within Inkatha. This makes it

very difficult for an organisation Ilk»

COSATU to mesh with Inkatha in any

mobilising campaign.

fall onto any member of the royal Zulu

line but is contested by all those who

accept it as the legitimate form of

exercising power. This results in the

adoption and spread of practices of

personalised power in decision making

which spreads far beyond rural tribal

structures into all forms of social and

political organisation.

79
CONFLICT BETOKEN COSATU AND INKATHA SOUND FACTORY ORGANISATION

There are other «ore obvious, and

perhaps even more important, reasons why

COSATU could not easily fit into an

alliance with Inkatha. The latter's

hitherto unsympathetic attitude to

working class-issues and working-class

politics is shown by:

* Buthelezi's condemnation of the SASOL

stayaway and his constant references to

unions being acceptable if they stick to

factory issues only;

* its easy recourse to violence to

resolve differences of line rather than

democratic argument (eg the National

Union of Mineworker8,claim that UWUSA

broke up the NUM strike at Hlobane);

* its lack of structures of direct

democracy (the method of appointing

UWUSA office bearers);

* its refusal thus far to mobilise its

members behind a grassroots campaign

(the Natal consumer boycott);

* its one-sided reliance on the public

projected image of Buthelezi and

diplomatic manoeuvres (the absence of

any grassroots political style behind

the KwaNatal indaba);

* its highly-sympathetic attitude to

capitalism, strong links with monopoly

capital and rabidly anti-socialist

perspective.

These political practices are all

highly problematic for COSATU. As long

as they prevail within Inkatha it is

extremely unlikely that any tactical

alliances can be struck between the

organisations.

Furthermore UWUSA, as a rival union

whose sole reason for existence is to

take away COSATU members, exacerbates

the tension. For it makes anything other

than active hostility the only

appropriate response at the moment.

What then are the long-term

implications of a severe conflict

between COSATU and Inkatha, and

particularly what effects will UWUSA

have on COSATU organisation in the

factories?

The fundamental point is that

struggles in the factories

over economic issues have a

dynamic of their own and take

place differently from

political/cultural issues. The

latter may have disruptive

effects on factory-based

struggles. But they are

unlikely to displace them as

the principal issues around

which workers unite and

mobilise as long as there is

sound organisation, and as

long as union organisers and

shop stewards spend a large

amount of their time servicing

these workers. UWUSA is

therefore unlikely to be able

to gain majority membership

in, and hence take, many wellorganised factories from

COSATU unions.

The most likely result in

these factories is that a

small but vociferous pocket of

workers will go over to UWUSA

and play a disruptive role

similar to the South African

Allied Workers Union (SAAWU)

in Natal a few years back.

Organisers in COSATU unions

dealing with the effects of

such small opposition

groupings will find themselves

having to spend an inordinate

amount of time overcoming

splits and divisions,

repairing the effects of small

mistakes, responding to vociferous

criticism, and realistically countering

highly inflated promises*

Badly organised, or unorganised

factories where the benefits of

belonging to a COSATU union are not

readily apparent to the workers will

more than likely go over to UWUSA since

no alternative terrain of factory-based

struggles will have been established.

This has already happened to a number of

COSATU unions in Natal.

80
Inkatha will then face the same

problem that SAAWU in Natal faced in

previous years. It is one thing

recruiting unorganised or poorlyorganised workers on the basis of

highly-inflated promises, but quite

another thing to deliver the goods once

thev have all joined. Inkatha will soon

find that running a trade union in even

a partially successful manner requires

far more than political rhetoric.

Notwithstanding the difference in

political position, Inkatha will in this

respect be in the same position as the

small general unions affiliated to the

UDF found themselves in over the past

few years.

UWUSA was formed, and by the fact that

its office-bearers are mostly well-known

black capitalists and personnel

managers.

As long as UWUSA is unable to handle

these issues In a manner familiar to

well-organised COSATU members, it is

unlikely to make major inroads into

members' union affiliation, irrespective

of political sympathies. But this

depends on the COSATU unions constantly

focusing on these issues themselves,

using democratic methods (as opposed to

violent coercion) to win over workers

attracted to UWUSA, and not allowing

themselves to be diverted by the

political red herrings that Buthelezi

constantly throws at them.

DEFINING THE BATTLEGROUND

A lot depends on how the COSATU unions

handle the issue of Inkatha/UWUSA in

their factories. It is a fundamental

error, and grist to Buthelezi»s mill, to

fight Inkatha on its own terms.

Derogatory references to Zulu ethnicity,

to KwaZulu as just another bantustan,

personalised attacks on Buthelezi, etc,

are counterproductive. If COSATU unions

forget what brought them their strength

and shift the terrain of struggle away

from the correct handling of bread and

butter issues in the factories, and

principles of union organisation, then

they will undoubtedly lose. For then

they will be engaging Inkatha on its

strong points - ie what attracts

ordinary Zulu workers to the

organisation in the first place - rather

than exploiting the strategic mistake

Inkatha made in trying to take the

struggle to COSATU on the terrain of

union-based issues.

Inkatha and UWUSA are weakest on

factory-based issues, on factory

organisation, on bread and butter

mobilisation, on factory and union-based

democratic structures, and on dealing

with contradictions in a deaocratlc

manner. This is borne out by the

undemocratic top-down manner in which

METHODS OF STRUGGLE

The question of method is important.

There are basically two methods to

defend a factory against UWUSA:

* violence against those who join UWUSA

or try to organise for UWUSA, thereby

coercing any with doubts to remain

COSATU members, or

* democratically working through the

points at issue in order to maintain the

unity of the members in the factory.

The deceptively easiest method to use

is coercion. In the current

circumstances it seems natural and fair

since very often Inkatha members attempt

to use coercion or the implied threat of

coercion in order to make inroads or

drive out opposition. Notwithstanding

its seductive allure, coercion is in

principle a bad method of keeping

members. It advances the struggle for a

clearer ideological line not one inchj

and \itilising the methods of ones

opposition in this case merely

reinforces reactionary practices,

thereby undercutting the unions' case

for democratic worker practices.

If, for example, COSATU unions try to

physically force UWUSA members out of

their factories, this gives all the

moral justification in the world for

81
Inkatha to pursue its practice of

driving UDF and COSATU leaders out of

the black townships they control.

Coercion is also impractical when one's

opponents are able either to legally

counteract attempts at coercion or use

violence more effectively than oneself.

Furthermore, as history should have

taught us by now, once the practice of

using violence to resolve essentially

organisational problems is entrenched,

it is a small step to use coercion to

resolve other ideological differences,

invariably when this occurs, it is the

left and the working-class organisations

that are at the receiving end.

Although COSATU unions have not been

sufficiently consistent in ensuring that

the correct methods of fighting UWUSA

have prevailed in their factories, there

are a number of important successful

counter-examples to coercion. Perhaps

one of the most impressive is that of SA

Tioxide which is one of the few COSATU

factories in the Umbogintwini area - an

area well known for its recent violent

crushing of any grouping outside of the

ambit of Zulu ethnic politics. UWUSA has

made no headway here despite the most

favourable of circumstances.

This is primarily because the COSATU

union's shop stewards, apart from

concentrating on factory issues, have

also held weekly general meetings at

work to discuss critically and clarify

their union's policies, COSATU's

policies and Inkatha's policies. This

practice has forced UWUSA members to

argue their case rather than just making'

emotively ethnic appeals (calls for 'a

Zulu union') and they have been unable

to convince workers that UWUSA is a

viable alternative.

DEBATING CLASS ISSUES

Politically, UHUSA/Inkatha can

profitably be tackled on their overt and

vociferous support for capitalism and

free enterprise as the solution for the

working class in this country. By coming

out so strongly on this issue, and by

handing over the leadership of UWUSA to

black capitalists, Inkatha has itself

raised the possibility for other forces

to question and criticise its political

line without impinging on the ethnic

sensibilities of its members. This also

raises the opportunity for other

alternatives to the one put forward by

Inkatha.

Inkatha, whether it intended to or

not, has opened up the possibility of a

serious debate on class issues. The

ground has been laid for other

organisational forces, particularly the

COSATU unions, to take advantage of this

opportunity and put forward alternative

political lines, strategies and social

systems.

In doing this, COSATU could have an

important impact on township

organisation in Natal. Of all the social

forces in Natal's black townships, only

two currently have a major

organisational presence: Inkatha, which

dominates; and COSATU, whose influence

is spreading to other social groupings

seeking an alternative to Inkatha.

COSATU could profitably take some

initiative in the townships to forge a

class alliance based on a socialist

line, encouraging the adoption of

working-class ideological and

organisational principles. But this

requires It to avoid a policy of

ideologically and politically following

behind other organisations.

Instead, if COSATU aggressively

pursues an independent socialist line,

the possibility exists for it to push

popular consciousness and practices in

Natal beyond the parameters set by the

KwaNatal option, and even purely

national-democratic solutions, towards

an open discussion on the merits of

socialism.

/9274

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82
SOUTH AFRICA

RADIO FREEDOM MARKS 3D ANNIVERSARY OF UDF

EA221235 Addis Ababa Radio Freedom in English to South Africa 1930 GMT

21 Aug 86

[Commentary within series entitled: "Three Years of United Action"]

[Text] Compatriots, it is now 3 years since more than 10,000 of our people

gathered at (Mitchells Plain) in Cape Town to form what friends and foes

alike have since acknowledge as the most powerful antigovernment movement

that has ever existed in South Africa. In the words of our president,

Comrade Oliver Tambo the formation of the united Democratic Front [UDF]

3 years ago was a historic achievement in our peoples* efforts to unite

in the broadest possible front for the struggle against the inhuman

apartheid system. The formation of the UDF, according to the president,

was a product of our peoples' determination to be their own liberators.

This was the spirit, the will, and the determination that motivated

our people 3 years ago and inspired 10,000 patriots to gather at

(Mitchells Plain) to form this powerful democratic front: The determination

to be our own liberators, the will to be free no matter what the enemy does.

Today, 3 years later, despite the viciousness of the regime in its

desperate attempts to crush the front, the spirit that existed 3 years ago

has never been crushed. It will never be crushed. Instead, it has never

been stronger. The UDF today marks its third anniversary at a time when

thousands of its leaders and activists are right in apartheid detention

cells, in imprisonment, or have just gone missing. The scale of

repression against the UDF by the apartheid regime has never been

witnessed before. Yet, this also is a movement when the strength of

the front continues to grow, and its tentacles have not only covered

urbanized townships, but its presence is now being felt strongly in the

rural areas and Bantustans, too. The massive detention of leaders has not

stopped the UDF from growing, nor helped the Botha regime any bit to

crush our organization.

Instead, day by day, our people are increasingly getting organized into

what the President Comrade Oliver Tambo described as a conquering force.

Today, only 3 years since the UDF was formed, the regime has been driven

back in confusion and desperation to a situation where now, it has to rule

our country through a permanent state of emergency. The regime has now

83
completely lost the strategic initiative and control of events in the

country. That initiative is now in our hands, the people. Its draconian

state of emergency, through which it has amassed sweeping powers to

itself, was clearly an attempt to reassert its authority and seize

back the initiative. But 3 months now into the state of emergency,

it is clear that it has failed in that, purpose. Our people still continue

to defy even the draconian state of emergency. What is clearly emerging

day by day is that the regime has no policy, and can have no policy, either

to save the apartheid system frem sinking deeper into crisis or to

extricate this system from that crisis. All it can do now is to react

to events from day to day without any consistent plan and without any

overall objective except to keep itself in power for as long as possible.

It can no longer guarantee a bright future even for the white social

forces on which its evil system of apartheid and white domination rest.

The reality in fact is that the white power bloc on its own has never been

as divided as it is today. Conflict, indecision, and fear of our

revolutionary struggle has extended to all levels of white minority rule,

including even Botha's own cabinet.

This situation, countrymen, has not emerged all on its own. As we know,

the regime is now unable to rule in the same old way because of our

determination to render ourselves ungovernable, and the evil apartheid

system unworkable. The country, today, only 3 years since the UDF was

formed, has become ungovernable because of our sacrifices and unity in

action. We have, through action, forced the racists into this position

where they are now on the defensive all along the line, and this has been

through our consistent, united struggle throughout the country.

Indeed, for us to maintain the offensive and to rout the racists from

their defensive positions and seize power, we must intensify our actions

in unity. We must strengthen our unity:' in action. We must solidify

the unity of all democratic forces. We are now faced with another

challenge put before us by the apartheid regime in its attempt to drive

disunity within our ranks: the challenge of the so-called National Council

that the apartheid regime is planning to create with the collaboration of

its stooges and bootlickers. This, countrymen, is yet another moment when

the experience of 3 years ago which united us in struggle immediately after

the formation of the UDF — that is the struggle against the tricameral

parliament elections for our colored and Indian compatriots — must

now be recalled. We must reform to participate in that dummy body that

Botha is trying to throw as a bone of contention and division within

our midst. In this (?instance), whether Botha, with the collaboration

of a few treacherous puppets, tried to force toy telephone down our

throats he must not be let to succeed. [sentence as heard]. It must not

even be let to take off the ground.

Certainly, he cannot succeed to crush the community councils and other

local organs of apartheid rule, and allow the creation of that useless

body whose aim is to perpetuate our enslavement, too. It must be prevented

from being formed at all by making sure that Botha fails to find even a

84
Single credible traitor who dares risk participating into it. Our 3 years

of experience to unite in action against the enemy's maneuvers to divide us,

and pur experience to crush all its organs of apartheid rule, must now

be brought back into action against this toy telephone. At the same time,

this third anniversary of our UDF must serve to strengthen our mass organs

of popular rule, which have emerged in the place of the collapsed stooge

councils of the apartheid regime. We are all aware countrymen that the

enemy has failed to crush the UDF it has to crush our entire oppressed

nations.

It has to crush all these more than 800 mass organizations that are united

under the umbrella of the UDF. The regime has failed to .crush the UDF

because these mass organizations continue to grow and.be stronger by the day.

Let us work hard to strengthen them even further. And. in particular,

on this third anniversary, let us take the oppotunity to strengthen the

democratic organizations amongst our white compatriots. For it is these

organizations that will finally help to win more and more of our white

compatriots into the democratic stream and the fight.to crush apartheid

and racism in our country. It is these democratic organizations which

will help to bring our white compatriots away from the white laager

into the democratic front. It is these democratic organizations within

our white compatriots which must organize our white, compatriots to realize

that white minority rule is doomed. The future belongs to the majority,

both black and white, and that Botha can no longer secure them a bright

future. The future belongs to the United democratic forces. Forward

to a nonracial democratic South Africa. Long live the UDF.

/12624

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85
SOUTH AFRICA

SOWETAN EDITOR PROJECTS CONTINUED POLICE PRESENCE AT SCHOOLS

MB211643 London BBC World Service in English 1515 GMT 21 Aug 86

[From the "Focus on Africa" program]

[Text] The job of journalists in South Africa is a little easier today

following a high court ruling yesterday and the government's concession

that it exceeded its authority in imposing certain reporting restrictions

under the June state of emergency. For the past 2 months journalists

have been unable to report incidents or unrest, the activities of security

forces and the presence of security forces on school premises in black

townships unless approved by a government Bureau of Information. Now

they can though they still have to be careful. Will Day talked to Thomas

Mazwai, news editor of the SOWETAN, and asked him first about the security

forces and the schools. Did he have any examples of trouble?

[Begin recording] [Mazwai] Some 4 weeks ago I had a telephone call from

a teacher who refused to give her name. She refused to give the school

she is teaching at, but she was crying into the telephone. She was asking

me what can she do to leave the country and go and join any banned

organization so that she could get some military training. What is happening

to them at school, what is happening between the students and the soldiers,

she can't stand it any longer. Now, this is what has been happening

in schools.

[Day] Why do you think the government has been particularly interested

in putting security forces into schools?

[Mazwai] I think that they have been putting the security forces into

schools because the students, the youths have been the one section

of the community that has been very militant and the government believes

that everything is plotted in schools and as a result they are now trying

to tighten their control over schools, and this is why they are doing all

this.

[Day] What good does it do to have soldiers and policemen in a school?

[Mazwai] It has got an intimidatory effect on the pupils and that is what

it's worth. In any case when that intimidatory effect lessened, then

there were confrontations, serious confrontations between the students

and the security forces.

86
[Day] So, have there been violent confrontations between the two?

[Mazwai] Yes, I mean, yes. I mean, it goes without saying although

one cannot say so what has been happening in the past. I can report

what is now happening — but what has happened in the past one has

got to tread very carefully. But the confrontations between the students

and the soldiers or the police have been very frightening.

[Day] And are soldiers and policemen still in the schools?

[Mazwai] Yes, they are still in the schools.

[Day] And does this mean that many students are staying away or are

classes continuing as normal?

[Mazwai] Well, the 60,000 plus, minus students at the Soweto secondary

and high schools have been on a class boycott since yesterday in

protest against the presence of schools, and it's about 80 percent

successful which just shows you that things are real bad.

[Day] And is there any sign that the government will take these soldiers

away or do you think that their presence is long-term?

[Mazwai] I think that the situation in South Africa has reached a stage

where the government believes that if at all it gives in an inch,

however, diplomatically, it is giving into anarchy, and I suspect

that this misguided attitude by the government means that they intend

staying on in schools for much more longer than is actually prudent,

[end recording]

/12624

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87
SOUTH AFRICA

BRIEFS

ANC OFFICIAL ON OFFENSIVE—The director of international affairs for the

African National Congress of South Africa, ANC, Comrade Mfanafuti Makatini,

says the ANC has (?trebled) its efforts to liberate Azania and is now in

control of two (?huge) townships in the eastern Cape. Comrade Makatini

told the ZBC that if the international community would respond to the

imposition of comprehensive mandatory sanctions against "the Pretoria regime,

the regime would collapse sooner. Comrade Makatini said the momentum

for sanctions will grow this year and weaken the regime faster. He also

disclosed that the masses of South Africa have launched a nationwide offensive

afainst the regime to make the country ungovernable and the system unworkable.

He said they have targeted black councillors and forced them to resign,

and the regime's structures have been replaced by people's committees and

courts. [Text] [Harare Domestic Service in English 1115 GMT 24 Aug 86 MB]/12624

BOPHUTHATSWANA FINANCIAL PROBLEMS DENIED—-Mmbatho, 26 Aug, SAPA—Rumors

which have been circulating in Bophuthatswana and causing near panic among

Bophuthatswana public servants that the Standard Ban refused to accept their

salary cheques, were quashed by the government in Mmbatho today. Since

last Friday, there were rumors that cheques for some government departments

were held back by the finance department because of a lack of government

funds. Interviewed today, Bophuthatswana's state affairs minister, Mr Rowan

Cronje, confirmed the rumors but denied that there was no money. He said

the cheques could have been held back because of some administrative procedures

in the Finance Ministry. According to the rumors, government cheques were

bouncing and the bank could not pay them out because of a government overdraft

of more than R300 million. When parliament opened in May this year, MPS

complained bitterly about the alleged misappropriation of funds in

Bophuthatswana, but the finance minister, Mr Lesley Young, denied the

allegation. [Text] [Johannesburg SAPA in English 2115 GMT 26 Aug 86 MB]

/12624

ANC OFFICIAL ON EXPELLING OFFICES--The African National Congress of South

Africa's director of publicity and information, Thabo Mbeki, has said that it

would not be in the interests of southern African states to expell the ANC

from their countries because of pressures being applied against them by

apartheid Pretoria. Speaking in Television Zambia interests program,

Mr Mbeki said should any country in the region close any ANC offices, it would

be a signal to the racist regime that its pressures and its labors were

working. Mr Mbeki said (?forcing) the ANC to close its offices in

38
South Africa's neighboring states would not make those countries safe

from South African attacks as the Pretoria regime simply follows its

repressive interests in these countries. Mbeki said as far as the armed

struggle is concerned sanctions were supplementary to the struggle

because [words indistinct] damage in terms of infrastructure and human lives

was done. [Text] [Lusaka Domestic Service in English 0600 GMT 25 Aug 86 MB]

/12624

BLACK EMPLOYMENT STATISTICS—House of Assembly, 26 Aug, SAPA—At least

80 percent of South African blacks aged between 18 and 26 had never had

permanent employment, Mr Albert Nothnagel (NP [National Party] Innesdal)

said today. Speaking in the second reading debate of the temporary removal

of restriction on economic activity bill, he said this powder-keg in the

economy should be recognized. The bill being introduced was a sign of a

new era in which blacks who had been under-educated would be given the

opportunity of getting a job. Replying to Mr Andrew Savage (PFP [Progressive

Federal Party] Walmer) he said it was true the civil service provide secure

employment to many whites but a new era had arisen in which private initiative

needed to be stimulated. While it was also true that black living standards

had improved in relation to whites, there was still considerable poverty

among the masses of unemployed black people. To ensure minimum unemployment,

interaction was needed between the policies of privatization and

deregulation because in the short term they would be counterproductive.

Deregulation would, in the short term, create jobs through the development of

the informal sector while one of the first steps following privatization of

the public sector enterprises, would be staff cuts. '[Text] [Johannesburg

SAPA in English 1628 GMT 26 Aug 86 MB] /12624 \

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89
SOUTH AFRICA

DPSC MEMBER COMMENTS ON RELEASE OF DETAINEES LIST

MB200928 London BBC World Service in English 0709 GMT 20 Aug 86

[Text] The publication by the South African Government of a list of people

detained under the emergency has provoked charges that the real numbers

are much higher. The government released the names of only those

people detained for 30 days, and they were over 8,500.

Max Coleman, a member of the Detainees' Parents Support Committee [DPSC],

told Tito Gomes that the government was revealing the minimum information

required by the law.

[Begin Recording] [Coleman] This actually relates specifically to the

requirements of the Public Safety Act, which says that if detainees have

been held for longer than 30 days under the state of emergency, then their

names must be tabled in parliament. Now, parliament resumed and one of

the first things that was done by the minister of law and order was to

table the names of 8,500 detainees. These people are presumably detainees

who have been held for longer than 30 days.

[Gomes] Are you saying this is in any sense at all an optimistic sign,

that perhaps it could be a prelude to the release of more detainees?

[Coleman] No, I would not say that at all. I don't think it's in any way

related to that possibility. In fact, the indications are that detentions

are continuing and that it is the intention of the government to maintain

the state of emergency for as long as it sees fit.

[Gomes] It can't be seen as in any sense at all a barometer of some kind

of debate, perhaps, going on within the government leadership?

[Coleman] I myself don't see it that way. I simply see it as a response

to a specific statutory requirement of the Public Safety Act that these

names shall be published and, in fact, it has been stated that on a weekly

basis all names will be published. Now, the names which will be published

on a weekly basis will be those who reach this 30-day period, not those

who will have been detained during the course of that week.

[Gomes] It does seem from what you are saying as though the government is

abiding by the letter of the law. Do you think that the law is perhaps

90
going to give you a way of securing the release of more detainees?

There have, of course, been judgements that have freed detainees already.

[Coleman] Well, that's correct. I don't think the intention of the

government is to release detainees because ... [changes thought] other

than those that they wish to. I think where detainees have been released

by the courts, it has been as a result of perhaps loose wording.

[Gomes] How much of a shock do you think this is going to be within the

white community, that the government has now confirmed that this

number of people have been detained and are still in detention?

[Coleman] Well, I think it will certianly bring the truth home to the

public and, in that sense, this publishing of the list is to be welcomed.

I think one now realizes just the extent to which political opponents

are being neutralized by menas of detention, [end recording]

/12624

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91
SOUTH AFRICA

RSA HERITAGE BEING SOLD TO FOREIGNERS .,

MB221757 Johannesburg SAPA in English 1742 GMT 22 Aug 86

[Text] House of Assembly, 22 Aug, SAPA--The government was selling

South Africa's heritage by allowing foreigners to buy South African

farms with the financial rand, the PFPTs [Progressive Federal Party]

chief finance spokesman, Mr Harry Schwarz, said in the debate calling for

the cabinet's resignation today. He asked if it was right that people

overseas should be able to buy farms with the financial rand standing at

18 to 19 cents. "No South African can compete with this," he said. "The

government is selling our heritage because it has a feeling of desperation."

Referring to the economy, Mr Schwarz said the reason for the present

uncertainty was that businessmen did not know where the government was

leading them. "They want to see the constitutional blueprint, they

want to see the end of the road."

The restoration of confidence was vital to South Africa's future, he said.

The government should do three things:

— State its ultimate constitutional objectives;

— Announce an economic plan, preferably a four-year plan to 1990;

— Hand over the handling of the economy to a triumvirate of skilled people

from the private and public sectors.

"We have to take powers out of the hands of the politicians and into the

hands of those best qualified to run the economy," he said. The country

had to reassess its priorities, look at fiscal reform, do away with

bureaucracy, and look at monetary policy in the light of previous

failures.

"There are grounds for optimism if the economy is put into able hands,"

he said, but added that the economic problems could not be solved unless

the political problem was also solved.

Responding to government speakers in the debate, Mr schwarz said it had

been a "remarkable" debate in that ministers had given the impression that

92
times were normal and that they should be praised. No minister had told

the assembly whether the country was adequately prepared for sanctions.

"No, they are taking refuge behind the problems and asking us to come

and help them. They are not prepared to say who is largely responsible

for the problems." The problems of the country, such as lack of

confidence, a debased currency, the debt standstill had been ignored by

government speakers. "They ignored the problems and pretended that

everything is rosy." /

i _ When Mr Barend du Piessis had told the National Party's Federal Congress

that the climate of unrest w/as not conducive to economic growth he

had made "the understatement of the century." "Any intelligent person will

know that with a black population increase of 2.8 percent a year and

growth running at 0.7 percent, the government is sitting on a timebomb.

The government has been led astray by false prophets and it has got

the economy into a mess,"/Mr schwarz said.

/12624 /

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SOUTH AFRICA

PRP MP SAYS UNIVERSITY QUOTAS DO NO GOOD

MB2209Ö6 Johannesburg SAPA in English 0858 GMT 22 Aug 86

[Text] House of Assembly, 22 Aug, SAPA~The section of the Universities

Act dealing with the Quota system was what determined the racial character

of universities, and should be scrapped, Mr Roger Burrows (PFP {Progressive

Federal Party] Pinetown) said today.

Speaking in second reading debate on the Universities Amendment Bill* he

said the minister of national education, Mr F.W. de Klerk, had told the

other houses of parliament that the quota system was not enforced and that

universities in fact made their own decisions on the racial composition

of their student bodies.

"The minister is saying it's there, but no-one's using it. Can a minister

of education and culture repeal the quota legislation, or does he have

to know it is there even though he is not going to use it?"

The minister was "doing no-one any good" by keeping it on the statute book.

Mr Burrows also said educational institutions should be removed from the

ambit of the group Areas Act.

The minister and the ministers of education and culture should look

at the question of university residences in a "most sympathetic light."

The PFP believed universities were for the benefit of all South Africans.

State funding of universities was "totally inadequate", and it was a

matter of great urgency that the "full subsidy formula" be reverted

to as soon as possible.

/12624

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SOUTH AFRICA

COMMENTARY SAYS TBVC STATES VIABLE COUNTRIES

MB220741 Johannesburg International Service in English 0630 GMT 22 Aug 86

[Station commentary: "South Africa's Aid to Independent States"]

[Text] Details of the extent of South Africa's financial aid to its

independent states have been disclosed in parliament, and other independent

African states, now free of their colonial masters, will have every right

to be envious.

In a written reply to a question on the matter, Foreign Minister Pik Botha

said that in the past 5 years South Africa had provided its four independent

black states of Transkei, Bophuthatswana, Venda, and Ciskei [TBVC] with

a total of 6,186 million rands in direct financial aid.

It is a safe bet that there is no other group of independent African states

which can lay claim to a similar amount in aid from its former colonial

power, over a period of 5 years or any other length of time. This is the

context in which President P.W. Botha referred to the West's offer of a

few hundred million rands in aid to southern Africa as chickenfeed.

The fact is that South Africa's independent states of Transkei,

Sophuthatswana, Venda, and Ciskei are far more viable than many other

independent African states. While a large number of these African States --

which are wracked by poverty and oppression, and where people have voted

once since independence and never again —are recognized by the international

community, the states which won their independence from South Africa

are denied this right.

As far as political freedom is concerned, most of the impoverished states to

the north of South Africa have military governments or are one-party states

where votes mean nothing. By contrast, the TBVC countries are the symbols

of the political freedom which has evolved in South Africa in the past

25 years.

These countries were born not out of revolution and violence, but out

of an orderly process of evolutionary constitutional reform. It is time

the outside world acknowledged this fact and recognized the four states

involved.

/12624

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SOUTH AFRICA

MEETING OPPOSES TOWNSHIP NORTH OF JOHANNESBURG

MB240825 Johannesburg Television Service in English 1800 GMT 23 Aug 86

[Text] Officials from the Department of Constitutional Development and

Planning today attended a meeting with residents in the areas affected by

the proposals for development of a township in the rural belt adjacent

to the Diepkloof Nature Reserve North of Johannesburg. Since the

proposal was first announced, residents in the area have formed pressure

groups to oppose the idea.

[begin reporter Rusty van Druten video] More than 1,000 people attended

today's meeting. Organizers had erected banners at all major intersections

leading to the venue and helpers were in attendance at the entrances calling

on residents and visitors to sign their petition to (^pressure) the

government to halt all plans for the establishment of the township as

proposed in the draft guide plan released on

from the Department of Constitutional Development and Planning under the

chief director physical planning, Mr Pieter Roussouw, attended the meeting

to explain official thinking behind the proposals. Emotions were running

high among those in the crowd and Mr Roussouw was constantly interrupted

when attempting to explain that the draft guide plan was still, very much

in its infancy and that reactions from interested parties was now expected

before final decisions were taken. As the meeting progressed it was clearly

evident the line of questioning was becoming heavily.politicized, taking

the issues beyond Mr Roussouw's brief as a planner involved in the draft

guide plans. Constant interjections forced Mr Roussouw to abandon any

attempt at answering certain questions put to him. After 2 hours it

was clear that nothing the delegation could say would meet with the

crowd's approval and the meeting ended with a call from the chairman of

the residents association to fight the proposals to establish the townships,

[end video]

/12624

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SOUTH AFRICA

BRIEFS

REPORT ON DETAINED CHILDREN—Groups checking the numbers of detainees have

been given newer lists in which children as young as 12 appear. Carmel

Rickard has the details: [Rickard] Progressive Federal Party [PFP]

detention monitoring officials claim that children as young as 12 have

been held by police in recent Natal swoops. The south coast regional

director, (Roy Aindley), says the new list given him last week had nearly

100 new names. Of these detainees, at least 35 were 18 or under. He

expressed the concern that these young detainees were apparently being held

in communal cells with convicted criminals. Mr (Aindley*s) new figures

tally with the national ('figures) list given me by the chief of the PFP

monitoring group in Cape Town, Neil Ross. He estimates that a third of

all detainees countrywide areunder 18. Mr Ross described this as one aspect

of emergency detentions which gave his group most concern. [Text] [Umtate

Capital Radio in English 0500 GMT 24 Aug 86 MB] /12624

SACBC PROTESTS 'HARDSHIPS'--Pretoria, 20 Aug, SAPA—The list of 8,500

detainees released by the minister of law and order in parliament, this week

indicated how little credibility could be attached to assertions that

apartheid was a thing of the past, the SA Catholic Bishops Conference [SACBC]

said in Pretoria today. "If so much has to be done to.restrain the

opposition, apartheid must still be a great grievance," the, conference said

in a news release. "It will remain so as long as the great pillars of

apartheid— the constitution, education laws, the allocation of land and

the Population Registration Act — remain." The conference listed people

closely associated with the Catholic Church who had been deported and

detained. It added that Bishop Edward Adams' house in Oudtshoorn was

searched and documents were removed.from his files. The conference

protested against these "hardships" inflicted on church personnel, who had

the right and duty to oppose apartheid. [Text] [Johannesburg SAPA in

English 1313 GMT 20 Aug 86 MB] /12624

EFFECTS OF UNREST REPORTING—The admission by the state that proper

procedures were not followed in restricting the media does not necessarily

free the media to report on security forces activities. Carmel Rickard

has the details. [Rickard] According to legal experts, the admission does

not, of itself, make the orders invalid, but the effect of the admission is

to indicate very strongly that they were not lawfully binding. The court

has not issued any judgment declaring them illegal, but experts I have spoken

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to suggested that any reporter ignoring the orders would probably have no

difficulty getting off, should the police bring a charge. The orders deal

with reporting actions of members of the security forces and with being

present in black townships or any area of unrest. Both are specifically

forbidden under the orders, but already at least one paper has ignored

them on the basis of yesterday's admission. Judgment in the newspapers'

challenge to the emergency curbs on the media has been reserved, and it is

not known when it will be delivered. [Text] [Umtata Capital Radio in

English 1100 GMT 21 Aug 86 MB] /12624

DEVOLUTION OF POWER URGED—Johannesburg, 23 Aug, SAPA—To implement the

federal philosophy, true devolution of political power from the central or

regional government to local community authorities is of cardinal importance.

This statement was made by the chief executive of ASSOCOM [Association 0f

Chamber of Commerce], Mr Raymond Parsons today when he addressed the local

government and housing conference of the Trasnvaal association of management

committees, at Vanderbijlpark. Mr Parsons said the federalist approach means

that power will be divided. "Divided sovereignty is indeed the essence of the

federalist system of government. Many businessmen believe that such a

division of power is a basic prerequisite for organizing a just society in a

plural democracy in which all minority groups are effectively protected from

the ambitions of hostile majorities," he said. Mr Parsons said there is a

very real need in South Africa to develop an autonomous system of local

government which is capable of responding administratively, fiscally and

politically not only to problems of wider regional concern but especially to

those at the neighborhood, community level. He said that at the national

level, if the proposed national statutory council is to succeed, it seems to

organized commerce that pre-negotiation conditions will have to be scaled

down all round. [Text] [Johannesburg SAPA in English 1227 GMT 23 Aug 86 MB]

/12624

SCRAPPING OF PASS LAWS—Cape Town, 21 Aug, SAPA—Almost no blacks in the

western Cape will benefit from the scrapping of the pass laws unless South

African citizenship is restored to people from Ciskei and Transkei, the

director of the Legal Resources Center in Johannesburg, Mr Geoff Budlender,

said today. Speaking at a Cape Town chamber of commerce seminar on

urbanization, Mr Budlender said the situation for Xhosa-speakers "could even

be worse" under the new dispensation as they would now be subject to the

Aliens Act which provided for much heavier penalties than the old influx

control laws. People could be summarily deported even if they had permanent

residence in South Africa. "It is really a disaster. The abolition of influx

control has been totally wiped out by the government's failure to deal

effectively with citizenship," he said. "It is a particularly grim picture

for the western Cape where the new status of Ciskeians and Transkeians

makes almost every Xhosa-speaking person an alien." Mr Budlender said despite

the government's undertaking to negotiate the matter of South African

citizenship with homeland leaders, he doubted whether this would solve the

problem. He said although common citizenship for all was the best solution

to the problem, the government could also give citizens from TBVC [Transkei,

Bophuthatswana, Venda, Ciskei] countries freedom to move and work in South

Africa by exempting them from the provisions of the Aliens Act. [Text]

[Johannesburg SAPA in English 1727 GMT 21 Aug 86 MB] /12624

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SUPPORT OF OWN AFFAIRS EDUCATION—House of Delegates, 21 Aug, SAPA—If

members felt strongly about supporting own affairs bills, they should put

their money where their mouths were and ask the government to scrap the

House of Delegates, the chairman of the council of ministers, Mr Amichand

Rajbansi, said today. Speaking in a second reading debate on the education

amendment bill (House of Delegates), he criticized opposition members for

claiming they could not support any own affairs legislation on'education.•

"If we want a single education ministry, don't hammer the Indian Education

Act, hammer the constitution," he said. "If we feel that strongly about it

we must request the government to scrap the House of Delegates." The

Education Ministry in the House of Delegates had played an important role

in ensuring that funds were allocated for education on a non^-racial basis.

"But let us put our money where our mouths are. If we feel like this, we

must slice out R60 million from our education budget and give it to black

education," he said. The bill would not entrench apartheid but would merely

update obsolete provisions in the Education Act. Mr Mahmoud Rajab (Sol

[Solidarity] Springfield) said the problem was that the cake for education

was too small. The solution lay in increasing the budget allocation for

education as a whole. [Text] [Johannesburg SAPA in English 1606 GMT

21 Aug 86 MB] /12624

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SOUTH AFRICA

SANLAM: SANCTIONS THREAT, LACK OF CONFIDENCE 'SERIOUS PROBLEMS'

MB231132 Johannesburg SAPA in English 0706 GMT 23 Aug 86

[Text] Cape Town, Aug 23, SAPA~The threat of intensified sanctions and

a general lack of confidence in the political and economic future of the

country are the most serious problems afflicting the economy, Sanlam says

in its latest economic survey.

The low level of confidence is having an adverse affect on the willingness

of undertakings to invest and the recently announced stimulatory package

of R1500 million will only bring about limited improvement.

Additional measures for promoting growth can be expected and the March 1987

budget is expected to be an expansionist one, Sanlam says.

It is expected that further tax concessions will be made and that government

expenditure on capital projects will increase markedly to bring about

necessary improvements and extensions to the social infrastructure

in particular.

"Since South Africa will not be able to depend on a significant inflow

of new foreign capital in the foreseeable future, and in fact will have

to use most of the surplus on the current account of the balance of

payments to redeem her foreign debt, it is obvious that the balance of

payments will remain a fundamental problem.

"The growth rate in real gross domestic product over the next year or two

is therefore expected to be slow, since we shall not have the foreign

exchange to accommodate the strong general economic activity.

"Consequently, we estimate that the average growth rate in real gross

domestic product in the 1986-87 period will be in the order of only two

to two-and-one-half percent—growth levels that will not even be able to

maintain the present per capita income, and that will further exacerbate

the unemployment problem."

Turning to inflation, Sanlam said it expected an average inflation rate

of about 17.5 percent for 1986 as a whole. In 1987, the inflation rate

would be largely determined by what happened to salaries and wages and

the external value of the rand.

100
"If wage discipline is maintained and the exchange rate of the rand says

in the region of 40 U.S. cents, we are hopeful that it will be possible

to keep the average increase in the consumer price index down to a

level of between 15.5 percent and 16.5 percent in .1987."

Sanlam said the commercial rand was considerably undervalued at present,

but believed it would firm in the coming months and envisaged an exchange

rate of around 43 U.S. cents for 1986.

The exchange rate of the rand for 1987 is predicted at between 36 and 42

U.S. cents.

Sanlam said although positive real interest rates were essential in the

longer term, "trying to ensure that interest rates are higher than the

inflation rate should not be an end in itself in circumstances such as

the present, where the South African economy is faced with an acute

problem of underspending."

The question of sanctions added to the uncertainty. If comprehensive

sanctions were introduced, a policy of increased interference and

prescription by the authorities was very likely.

/12624

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SOUTH AFRICA

RESERVE BANK PREDICTS INCREASED PRIVATE SPENDING

MB240837 Johannesburg SAPA in English 0815 GMT 24 Aug 86

[Text] Johannesburg, Aug 22, [date as received], SAPA—A variety of

conditions have been created that should eventually prove conducive to a

more vigorous upturn in aggregate private expenditure, the Reserve Bank

says in its annual economic report for the year ended June.

In addition, the economy was well-positioned for meeting any such recovery

in aggregate demand.

The bank says that conditions favorable for an eventual return to more

buoyant rates of growth in spending included the relaxed stance of

monetary policy, relatively low interest rates (notably in real terms),

and the authorities' manifest willingness to accept an acceleration

of the rates of increase in bank credit and the money supply.

Also the stimulative effect still to be exerted by the government's

"somewhat more expansionary approach to its own spending policies,

as incorporated inter alia in the March 1986 budget and the package of

supplementary measures" as announced in June this year.

Other Actors included:

~ The rise in the market Values of various consumer-owned assets as

brought about, by among other things, the lower level of interest rates.

— The effect of the relatively low exchange rate of the rand in discouraging

imports, encouraging exports and raising the value in domestic currency

of export proceeds*

The bank says the supply capabilities of the economy were increased by the

relatively low current level of capacity utilization and the enhanced

employability of labor on account of the earlier downward drift of

average real wages and labor remuneration generally.

Historically low levels of commercial and industrial inventories, moreover,

would ensure that a more vigorous resurgence in aggregate demand would be

translated speedily into increased production activity, employment,

output and economic growth.

/12624

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SOUTH AFRICA

BRIEFS

RESERVE BANK: ECONOMY RECOVERING--Johannesburg, Aug 22 [date as received},

SAPA—The South African economy is by current indications "still in the

process of recovering, albeit slowly and erratically, from the 1984-85

recession," the Reserve Bank says in its annual economic report for

the year ended June. Looking back, the bank says the economy experienced

a cyclical downswing from the middle of 1984 to the middle of 1985. The

encouraging recovery that commenced in the third quarter of 1985 was

interrupted in the first quarter of 1986. "Preliminary estimates of the

national accounts aggregates for the second quarter of 1986 nevertheless

suggest that the balance of forces acting on the economy remained in favor

of modestly positive growth for 1986 as a whole," the bank says. [Text]

[Johannesburg SAPA in English 0817 GMT 24 Aug 86 MB] /12624

TRANSVAAL COLORED BUSINESS GETS SUPPORT—Johannesburg, Aug 25, SAPA—For the

first time in the Transvaal, the government will allow the private sector

to provide the structural services for a colored business area, at

Ennerdale, South-west of Johannesburg. SABC TV news said the project was

officially initiated today in Johannesburg by the minister of local

government, housing and agriculture in the house of representatives, Mr

David Curry. Two contracts of R20-million were concluded for the development

of the business district. The first phase will provide 40,000 square

meters of shop space. Two sites have been offered for sale. Developers

were requested to place development proposals and tenders before the

community development board before the end of September. Mr Curry said in

the year 2010 Ennerdale would have about 250,000 residents and the necessary

infrastructure had to be created now. Mr Curry said it was always

possible with "brown" towns and residential areas that there was only a

housing scheme and no business nucleus that could generate tax. "What we

need is a beehive," he said, "and the private sector, with this business

center, can bring it to us." [Text] [Johannesburg SAPA in English 2015 GMT

25 Aug 86 MB] /12624

DEBT, BANKRUPTCIES FIGURES—Debt and Bankruptcies are assuming alarming

proportions in South Africa,, according to information given to the SABC

by the director of sales and marketing of a large debt collecting company,

Mr Paul Edwards. He said that in May almost 34,700 people had been summoned

and sentenced, an increase of 5 percent compared with the same month last

year. The amount involved increased by 57 percent to 67 million rands.

103
Mr Edwards said that since 1983 civil summonses against businesses had

doubled, while summonses against individuals had increased by 50 percent

since 1982. Business bankruptcies had eased slightly this year and

were averaging 200 a month compared with 255 a month last year. On the

other hand, insolvencies of individuals had increased on the average

by 70 a month to 330. [Text] [Johannesburg Domestic Service in English 0500

GMT 23 Aug 86 MB] /12624

TRADE RELATIONS WITH ZAMBIA—Senior banking sources in Lusaka say trade

relations between Zambia and South Africa are operating smoothly, despite

reports that [Lusaka] was contemplating banning direct Imports from

South Africa. The sources say letters of credit are still being (?opened) to

South African banks, and South African invoices are being accepted for

[words indistinct] for the weekly auction of foreign exchange. Last week,

diplomatic sources indicated that Zambia, Zimbabwe, and other southern

African states had agreed to terminate all direct trade with South Africa.

Senior [words indistinct] had heard rumors about the reported trade ban

[word indistinct] but (?it) has not been [word indistinct] has not been

[word indistinct] carried out. [Text] [Johannesburg International Service

in English 1100 GMT 21 Aug 86 MB] /12624

FINANCE MINISTER: PAYMENT TO IMF—The minister of Finance, Mr Barend du

Plessis, says South Africa has already this year repaid 500 million rand of

a loan from the International Monetary Fund. Altogether 800 million rand

of foreign debts have been repaid. Mr Du Plessis told the House of Assembly

the country's economy could not grow properly unless, provision was made for

the repayment of its foreign debts. In view of the fact that South Africa

has been the object of sanctions for the past 20 years, the country was

doing remarkably well. [Text] [Johannesburg Domestic Service in English

1900 GMT 22 Aug 86 MB] /12624

RESERVE BANK ON RAND DEPRECIATION—Johannesburg, Aug 22 [date as received],

SAPA—On August 11 this year, the effective exchange rate of the rand was

31 percent below its level at the end of 1984, the Reserve Bank says in its

annual report for the year ended June. Its depreciation since the beginning

of 1986, however, "amounted--to-only 4.8 percent," the bank says. The

financial rand reached a lower turning point of 24 U.S. cents on November 5,

1985 but recovered to 37.50 cents on March 5 this year, but subsequently

weakened to 19.50 U.S. cents on August 11* The financial rand discount

vis-a-vis the commercial rand accordingly widened from 26.7 percent on

March 5, 1986 to as much as 50.2 percent on August 11 this year. [Text]

[Johannesburg SAPA in English 0831 GMT 24 Aug 86 MB] /12624

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SOUTH AFRICA

- BRIEFS •

TRANSMITTERS TO EXTEND SERVICES—Two new television transmitting stations will

be put in operation on 25 August. The one at Lichtenburg and the immediate

environment will provide TV-1 signals and the one at Escort will provide TV-1,

TV-2 and TV-4 signals. [Text] [Johannesburg Television Service in Afrikaans

1545 GMT 19 Aug 86 MB] /12913

CSO: 3400/431 END

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