BANANA SAYS NATION TO INCREASE MILITARY BUDGET

Johannesburg THE CITIZEN in English 25 Jun 86 p 15

[Text]

HARARE. — Zim-
babwe opened the sec-
ond session of its sec-
ond independence Par-
liment yesterday with
the Prime Minister, Mr
Robert Mugabe, : as-
sured of his largest ma-
jority ever and only
three seats shy of the
number he needs to
make his country a
one-party state.

President Canan Ba-
nana opened the session
after a military parade
which included iow-flying
jets screaming overhead
thundering volleys from
cannons firing blank
shells. -

Mr Banana did not
mention a one-party state
in his speech, which was
devoted largely to domes-
tic Budget issues.

The President said that
his government intended
to put more money into
military spending.

He did not say what
percentage of the Budget
would be given to the

/13104
cso: 3400/239

military. There also was
no mention of whether
the government would re-
new a staté of emergency
which is now in its 21st
year, but is due to end
late next month.

Although the current
Parliamentary session is a
Budget one, it could very
well be the one that gives
Mr Mugabe’s ruling Zim-
babwe African National
Union (Patriotic Front)
the 70 seats it needs to
push through -its long-
sought goal of a one-party
state.

Mr Mugabe, who con-
trolled 57 seats at inde-
pendence six years ago,
now controls 67 — two-
thirds’ of the Chamber.
‘The majority includes in-
dependent Mr Chris An-
derson, the only White in
Mr Mugabe’s Cabinet and
Mr Charles Duke, a
White Conservative who
defected from the former
Prime Minister, Mr Tan
Smith’s Conservative Par-
ty on Jun 5 to join Zanu-
PF.

13

JPRS*SSA+86~081.

29 July 1986

ZIMBABWE

Under the _British-
drafted constitution that
this country accepted at
independence in 1980,

Zimbabwe became a mul-
ti-party state with a 100-
member legislature. that
assured 20 seats to the
former White rulers of co-
lonial Rhodesia.

But the constitution al-
lows the Zimbabwean as-
sembly to amend the
document with the back-
ing of 70 of its members.
‘That includes an immedi-
ate vote for a one-party
state. Even with the 70
votes, Mr Mugabe would

have to wait until April,
1987, to abolish the White
seats.

Of the 33 seats not
under Zanu-PF control,
the Zimbabwe African
People’s Union, the ma-
jor Black opposition par-
ty, and Mr Smith’s Con-
servative Alliance of Zim-
babwe control 14 seats
each and the moderate
Whites of the indepen-
dent Zimbabwe group
have three. — Sapa-AP.



GOVERNMENT URGED TO CLEAR ITS: NAME IN CROSSROADS ISSUE

Johannesburg THE STAR in English 17 June 86 n6

{Commentary by Hermann Giliomee]

[Text]

4 ISTORY,” says one of

James Joyce’s charac-

ters, “is a_ nightmare

from which I am trying

to awake.” Will there ever be a

time when we in SA can call our

history closed and awake to a
normal, pleasant life?

There seems little prospect of
that. Indeed, the horrors seem to
multiply, if we consider the devas-
tation of sections of the squatter
camps of Crossroads and near
Cape Town. ‘

That has happened in Cape
Town boggles the imagination.
Some 50000 squatters have been
left homeless as%a result of so-
called faction fights in which vigi-
lantes called “witdoeke” (or “fa-
thers”) expelled “comrades” from
sections of Crossroads and KTC
and along with them thousands of
prorle who simply happened to
Sut this is only the beginning of

ut this is only the of
the nightmare. "There are wide-
spread allegations that a section of
the police force, perhaps a “dirty
tricks” squad, actively organised
the “witdoeke” and assisted them
in the fighting, even to the point of
using police vans and Casspirs to
escort them.

The rest of the security forces
are alleged to have done nothing
effective to prevent the fighting or
stop the arsonists who burnt down
thousands of shacks.

D acpie these allegations
backed up by affidavits, govern-
ment has rejected calls for a com-

mission of inquiry by various or-
ganisations, including the
respected Urban Foundation.

“ On top of it all, it has declared

that persons expelled from Cross- -

roads in the fighting will not be
allowed to return but must be set-
tled in Khayelitsha.

This is a development of the
greatest consequences for govern-
ment, with its new “positive urban-
isation” strategy, and for the coun-
try as a whole.

Let there be no illusions: what
happened at Crossroads and KTC
will be repeated in other parts of
SA unless the trends which have
manifested themselves in Cape
Town's squatter areas can be ar-

rested.

The very first impression that
must be corrected is that govern-
ment is prepared to sanction vio-
lence or the results of violence to
achieve its ends.

This impression is certainly cre-
ated by government’s insistence
that expelled people may not re-
turn and that upgrading in Cross-

roads be confined to the “victors”
who managed to defeat the “com-
rades’, Poa,
memorandum written by Co-
lin Appleton, Western Cape direc-
tor oft the Urban Foundation, admi-
rably sums up the widespread
Smt
e Foundation finds it unac-
ceptable that the upgrading be
confined only to the ‘victors,’ thus
giving formal recognition . that
murder, arson and physical . vio-
tence Pay dividends ‘his sets a
us precedent for the set-
tling of disputes in what will ‘nevi.

34

PBN

JPRS«SSA«86408
29 July 1986

SOUTH AFRICA



Mr Johannes Stuurman, manager of the Kruisfontein Development Project, said he
had written a letter objecting to the establishment of the squatter camp.
Objections had also been made by the Kruisfontein Ratepayers Association.

“But when we looked again the camp was there," said Mr Stuurman.

He said they wanted the authorities to get a move on with the provision of
serviced sites on which people could build their own homes or ready-built
houses in a housing scheme.

THE WEEKEND POST spoke to some of the squatters. Mrs Marilyn Baardman and her
husband, Piet, and three-year-old son live in one of the more luxurious shacks
in the settlement.

Mr Baardman is a driver for a garage in Humansdorp.

Mrs Baardman has decorated her well-furnished home cosily and says she is
“quite happy” living there but would prefer a “proper” house, but there are
none available.

Mrs Jeanette Swartbooi lives in another shack with her husband, Daniel, who
works as a labourer for the municipality and their 11-year-old daughter.

They used to board with a family in Arcadia where they paid R50 a month just
for a roof over their head.

Mrs Margaret Jantjies, lives in a shack which Measures three metres by two
metres with her epileptic 20-year-old son, who is the family breadwinner, and
three smaller children.

Mrs Jantjies is a single parent. Her epileptic son earns R4 a day in the
Government scheme to assist the unemployed.

They did not have the materials to build themselves a toilet and Mrs Jantjies
says she has not yet been issued with a sanitary bucket.

Their toilet is the bush.

Mrs Jantjies said the family battles to pay the monthly rental for the site of
R13,60.

Mr Tyrone Liberty, treasurer of the Kruisfontein Ratepayers Association, said
the Divisional Council had previously announced that erven would be made
available for people to build their own homes.

Mr Liberty said the mood among the community was becoming angry because, apart
from tarring a few kilometres of road, nothing seemed to be happening.

713104
CSO: 3400/249

30



compartment should be able to meet present demands for about another 11
years." The Department of Water Affairs earlier this year completed a
pipeline to supplement water from Grootfontein Eye for Mafikeng and Mmabatho
with groundwater from the Molopo Eye Government Water Scheme. Dr Roberts
said if sufficient water could be obtained from the Molopo system, with-
drawal from the Grootfontein Eye should, be, stopped.to allow replenishment.
[Text] [Johannesburg THE STAR in English 24 Jun 86 p 21] /9317

CSO: 3400/161 . END

101



/12828
cso:

ed for the “siege option”. It has said
so quite blatantly. It is prepared to go
it alone; it is not going to crawl be-
fore anybody; it is prepared to fight
for its survival at all costs.

Politically, this means that the
Government has no intention whatso-
ever of negotiating a new constitution
in which its own position of domi-
nance and control will disappear.

The only political strategy apart
from brutal white repression (which:
is going to become increasingly dif-:
ficult logistically) is co-optive domi-:

More and more the Government is
likely to seek ways of co-opting
blacks, coloureds and Indians into a
new system of government in which it
can maintain control.

It would, therefore, not be surpris-
ing-if the Government increasingly
by-passes the normal institutions of
government such as Parliament and
tries to create new institutions which

would give the appearance of a’ gov- ‘

ernment of national unity.

3400/83

The Government might even sus-
pend the Constitution, if not formal-
ly, then in a de facto sense, and set

jop. an emergency government in
| which it will invite blacks, coloureds
and Indians to join it in trying to
{ rnaiintain stability. ’ .

This form of co-optive domination
may even stabilise the situation for
sfive to 10 years, but eventually the .

, outcome is inevitable,

We got to Heathrow Airport earl;
jin the morning, having taken a con. .
necting flight from Dakar. We tried
to book in but found that the SAA
check-in counter was closed and
would only open af 2 pm. It was shar-

ing it with British Airways.

Iremeniber the days when we had
‘seven or' eight counters of our own at
Heathrow. That night, we flew back
in our half empty plane to South Afri-
ca and I kept thinking to myself about
that old cliche, — it is always darkest
before dawn. Our darkness had begun,
and I wand quite sure when the

lawn would come and who wi
there to see it. ond be

39



yprs-SSA786~081
29 July 1986

MOZAMBIQUE

STATISTICS REVEAL SLIGHT EFFECT ON RSA SANCTIONS ON ECONOMY

Johannesburg THE STAR in English 30 Jun 86 p 10

[Article by John D'Oliveira]

[Text]

As the international community pre-
pares for harsher sanctions against
South Africa, Mozambique has de-
clared that it is gearing itself for
the “suffering” that will be brought
on by sanctions and by expected
South African reprisals against
neighbouring states.

Foreign Minister Joaquim Chis-
sano told the five-day Paris confer-
ence on sanctions against South Afri-
ca recently that his country was
ready for the sacrifices that would
have to be made because it believed
that its problems with the Mozam-
bique Resistance Movement’s gueril-
las would cease only when apart-
heid was destroyed.

However, for almost all of Mozam-
bique’s 15 million people, sanctions
against South Africa will make hard-
ly any difference to their already dis-
tressing economic situation.

And the price that Mozambique
would pay for supporting and im-
plementing a sanctions campaign
would not be nearly as high as the
economic price it has already paid
since Frelimo took over from the
Portuguese in 1975.

The effect of sanctions on Mozam-
bique must be seen against the back-
ground of Mozambique’s chaotic eco-
nomic situation.

Reliable statistics are difficult to
come by, but Professor Andre Thom-
ashausen, director of the Institute of
Foreign and Comparative Law at the
University of South’ Africa, gave
some when he addressed a South
African Institute of International Re-
lations conference in Johannesburg
earlier this year.

«The following statistics illustrate
the decline in production and eco-
| nomic activity in Mozambique:
@ Tourists: 291574 in 1972, 1000 in

1985.

@ Cashew nuts : 216 000 tons in 1973,
5 800 tons in 1983.

@ Sugar: 285 581 tons in 1974, 120000
tons in 1982.

@ Maize: 400 000 tons in 1972, 200 000
tons in 1983.

@ Rice: 111000 tons in 1972, 30000
tons in 1983.

@ Bananas: 280 000 tons in 1972, 65 000
tons in 1983.

@Fish and shrimps: 32000 tons in
1980, 7 965 tons in 1983.

@ Cotton: 280 000 tons in 1972, 73 000
tons in 1981.

@Coal 574800 tons in 1975, 100000
tons in 1984.

@ Copper: 3446 tons in 1975, noth-
ing in 1980/81.

@Cement: 611000 tons in 1973,
261 000 in 1981.

@ Freight traffic by sea: 17 million
tons in 1974, 1,2million tons in
1984. .

@ Number of goats: 600000 in 1972,
350 000 in 1983.

@ Number of pigs: 220000 in 1972,
135 000 in 1983.

According to, the latest statistics
.Feleased by Maputo’s National Plan-
ning Commission, exports amounted
US$123,8 million In 1975, increased to
$245 million in 1981 and dropped to
$81,6 million last year.

In most of the country, what little
economic activity there was has vir-
tually come to a standstill because
the MNR concentrates on “econom-
ic” targets and has almost destroyed



A short-term price boom could be!
followed by degeneration of this im-!
portant industry, in spite of the! fact
that SA is the world's cheapest : ar

ducer. ode
“Zimbabwe, India, Brazil, Sweden, |
the Phillipines and Turkey are all:
ready to step into the breach,jand ie
could take the industry betw ean ‘10;
and 20 years to recover from impos
tion of sanctions,” Edwards nofes. oh
chrome, although an important jek
port, provided only 4% of SA'stfo
exchange earnings last year and‘a col-
lapse would not be catastrophi¢: ihe
economy, he adds. Atedy
Another option for SA is to ingrblse
local production; of
stainless steel:) | MAL
though most fein pless
steel products ea
lously protect} their
own industrie§,-tho at-
ternative does exist,”
says Edwards}: '*
SA has the' world's
greatest reserves of

/13104
cso: 3400/242

*.83

vanadium, -uged in
production of specia
ity steels ahd in the
ichemical industry.
‘The 1985 earnings of
1R300m made up
about #% of total ex-
port receipts, but: pro-
ducers could be forced
! to ride the same rough
road as chrome. pro-
. ducers
Alternative produc-
C

ready waiting in the
win But gain, ben-

~ successfully done by Hignecld Steel and Va-

nadium, could provide some relict,

“The immediate effect of sanctions-would
therefore be an increase in forcign’exchange
earnings as world prices shoot up,” Edwards
sums up. “But this would be followed by the
gradual deterioration of several industries as
stibstitutes are developed or other producers
take over SA's markets.”

The sobering thought must be: hee docs
this leave the workforce? 7



EXPERTS SAY ECONOMY FACING ‘CONFIDENCE CRISIS’

Johannesburg THE CITIZEN in English 26 Jun 86 p 26

[Article by Daan de Kock]

[Text]

ALTHOUGH the in-
flation rate is in a cyc-
lical downturn and
could reach between
14 percent and 16 per-
cent before the year
end, the long term
trend is still upwards
and it would not sur-
prise if it reaches 20 to
25 percent in 1987/88 if
South Africa does not
deal with it effectively.

This was said yesterday
by Professor Geert de
Wet, Depaitment of
Economics at Rand Afri-
kaans University.

Speaking at a Assocom
seminar to evaluate the
business outlook once the
economic “package”
comes into operation he
agrees with the other par-
ticipants that what we
need now more than ever,
in business confidence,
but he said we should not
overlook the inflation
problem.

He pointed out that in-
flation was the root of all
our economic problems
because the authorities
tried to deal with it by us-
ing monetary policy only
and in this way killed the
economy.

65

Prof De Wet said some-
thing positive would flow
out of the package an-
nounced by Minister of
Finance Barend du Plessis
recently but the effoct on
the economy would be

ic upturn in most of the
overseas industrial coun-
tries is already showing
signs of a decline.”
Chief executive of As-
socom Raymond Parsons
said “the package would
certainly have a positive

imaginative oné must ex-
that there were limits

JPRS“SSA*86+081
29 July 1986

SOUTH AFRICA



Water might become so expensive that people would no longer be able to afford
the pleasure of their own gardens.

Up to now, the government's policy had been to use the "carrot" approach, to
try to lure development to underdeveloped areas.

Now, however, it would have to penalise development in the metropoles and make
it unattractive.

If the PWV was to pay for its basic services on the basis of user charging,
there would have to be a very large increasé in the cost of those services.

It was basically unfair that "tant Sannie in Koekenaap" should have to pay for
the train ticket of a commuter in the PWV area. It was also unfair that the
burden of overconcentration should be spread over the whole country.

The regional services legislation was not primarily an income generating
exercise. The concept of redistribution between regions was a "basic important
point,"

Earlier, Mr Daan van der Merwe (CP Rissik) said he had no problem in principle
with white peoples money being given to other population groups as aid.

But to do this in the present financial circumstances was a threat to the con-
tinued existence of whites.

In addition, this money was being pumped into a political dispensation that
would eventually lead to the collapse of the white nation.

Mr Wynand Malan (NP Randburg) said it was not true that the regional levies
would place a tremendous burden on employers.

The payroll tax was only 1.25 percent of total salaries. This meant only 25
cents in taxes on every R100 paid to employees,

He could not accept that this would have any appreciable impact on the activities
of an employer,

The deputy minister of information, Mr Louis Nel, had said that one of the con-
ditions on which the state of emergency would be lifted was that the local
authority system would have to be functioning effectively.

The bill created the opportunity for the rapid development of black areas, the
creation of infrastructure and for upgrading.

There was a4 duty to support the government attempt to achieve this.
Mr Malan said he would be "tremendously glad" if the UDF took part in the RSCs.
The NP's aim was to draw everyone into the democratic system.

"We are talking about participation in the constitutional process in a peaceful
manner, with a rejection of violence,"

/12228
cso: 3400/169 63



JPRS+SSA=86 408)

29 July 1986

SOUTH AFRICA

BATTLE RAGING AMONG ECONOMIC POLICYMAKERS OVER CONTROLS

_ Johannesburg BUSINESS DAY in English’ 30 Jun 86 ppl, 2

[Article by Gerald Prosalendis]

[Text] THE ideological split among SA’s
economic licy-makers, between
free-marketeers and direct control-
lers has once again burst into the
open. _ .

Reserve Bank Governor Gerhard de
Kock said last week certain accusations,
that market-orientated policy was re-
sponsible for depreciation of the rand
and low growth, were completely un-
founded, or rested on either misunder-
standings or fallacies.

The debate has been simmering for
some time but it appears De Kock has
finally thrown down the gauntlet to the
direct controllers, many of them leading
businessmen and civil servants, who
have been lobbying against his free-mar-
ket approach, as laid out in the De Kock
Commission Report. *

De Kock has long been seen as an
ardent critic of further controls on finan-
cial markets, as he says they would open
the way for bureaucratic corruption. And
markets, being what they are, would find
ways of circumventing any official re-
strictions.

The battle is, to a degree, one for the
ears of Finance Minister Barend du Ples-
sis who startled free-marketeers last
week with a threat to penalise economic
development in urban areas and to com-

pel investment where government pre-
erred to see it. oe

Some have interpreted De Kock’s
speech last week as a swipe at Saniam
vhairman Fred du Plessis, who has open-
ly stated he opposes the uncritical appli-
cation of free market policies in SA.

The debate has reached new intensity
over the issue of impending sanctions
against SA with some economists and
business leaders, who feel SA cannot af-
ford open markets not resilient enough to
withstand overseas pressure.

69

Says one senior economist: “One won-
ders if De Kock is feeling he has a stron-
ger hand. There was a feeling last year
that the free-marketeers were losing
ground and perhaps he is. consolidating
their position.

“His latest statements now throw the
game’ wide open,” he adds.

The controllers have been seen to be
active in recent months and among their
latest.moves have been: -

CO) Lobbying for tighter control on finan-
cial markets at: Cabinet level;
OG Suggestions :by, some senior. officials
that institutional investors be coerced
into investing in high-risk, low-return
ventures to create jobs;
O Recent suggestions that the introduc-
tion ¢f a unitary floating rand had been
responsible ‘for ‘the dramatic depreci-
ation of the currency; ’
O Recent hints:by. monetary authorities
that” they", may, clampdown on banks
thought be speculating against the
rand by‘holding. dollar positions over-
night) and." +
a idespread attempts to prevent pend-
ing building society legislation — allow-
ing societies to. become joint stock com-
arilesiand floating themselves on the
being passed into law.

‘Upto ‘now, governmient has rejected
Fred du Plessis’ arguments, but by force
é might just end up with a siege

ing as:government thinks this is
an option, it‘will-affect their other deci-
sions,” say$ a. source. Le
In many ways the debate his‘céntered
around the plummet in the rand from
roughly $0,90 in 1983 to its record low of
$0,35 late last year. The direct control-
lers ascribe the currency’s present weak-
ness as largely due to free market poli-
cies.
Late last year suggestions were put
forward, and supported by three large



JPRS*SSA+86~081
29 July 1986

SOUTH AFRICA

BUSINESS PLANS TO CUT HOUSING BACKLOG
Johannesburg BUSINESS DAY in English 1 Jul 86 p 5

[Article by Thelma Tuch]

[Text] 4 PLAN to use loans from pen- Pentup has been canvassing sup-

sion and provident funds, to. cut
dramatically the massive black
housing backlog, has been de-
vised by a group of Durban busi-
nessmeh:

The Private Enterprise Upgrade
Project (Pentup) was formed earlier
this year by seven people in response
to the housing crisis and government
pleas for private-sector involve
ment.

The scheme depends on loans from
pension and provident funds, which
can be forthcoming only when.regu-
lations governing the prescribed in-
vestments of these funds are amend-
ed.

Pentup is to aj proach the Regis-
trar of Financial Institutions to
amend regulations to make pension
fund investment in housing possible,
cne of Pentup’s co-ordinators, Dar-
ryl Jackson, said.

It had been estimated, he said, that
about R40bn was invested in the pen-
sion fund movement countrywide --
5% of which could finance the build-
ing of 167 000 economic housing units
at.the cost of Riz 000 each.

Employees’ investinent in pension
funds would not be threatened as the
cost: of investing 5% of the move-
ment’s assets would be negligible.
Jackson said.

“The concoraitant logs in yield at
an expected return of 15%, rather
than 18,7%, is a mere 0,1%," Jackson
said,

73

port for the scheme from the chair-
man of the Life Offices Association,
Pierre Steyn, and chairman of the
Pension and Provident Fund of SA,
Arnold Bessarabie.

It is to approach Sanlam chairman
fred du Plessis in his capacity as
chairman of the newly-formed pri-
vate enterprise task force to help
government implement its recently.
announced R750m housing scheme.

Government, employers and em-
ployees would be jointly involved in
subsidising the scheme on a one-
third loan repayment each, Jackson
said.

“On a bond of R10 000 and an inter-
est rate of 17,5%, their. respective
contributions for a house would
amount to R49 each a month.”

This amount, he said, was consid-
ered reasonable in the light of inves-
tigations conducted into minimum
wages earned by black workers in
various industries.

For employers such subsidisation
would increase their wage bill by
only 1,5% after tax, he said, addinj
that many major employers and
employer organisations were enthu-
Siastic to go ahead.

Opinion of the third party —- gov-
ernment — will be gauged in mid-
July wher Pentup is scheduled to
meet Deputy Minister of Finance
Kent Durr.

Jackson said joint government-
private sector participation --- the
pooling of resources to build houses
~ would enable the construction of a



1985/86, the refugee division was inundated with requests to assist
potential refugees to leave South Africa because of the escalating unrest,
the Rev Sol Jacob said in a report presented to the SACC national confer-
ence in Bosmont. "Until the South African Government dismantles apartheid
and its structures of injustice that make South Africa a refugee-producing
country and declares unconditional amnesty to all South African refugees
and exiles, the movement of refugees from South Africa to neighbouring
territories and further afield will continue unabated," Mr Jacob said.

The SACC member churches agreed that people should not be encouraged to
leave the country. "However, the division notes that large numbers are
still leaving South Africa daily in search of refuge in neighbouring
countries and further afield," he said. For the SACC to carry out a
relevant ministry to exiles, it was felt that there was a need to maintain
dialogue with the liberation movements, as most refugees joined one of
these organisations. "Without good relations with these liberation move-
ments, the church will be stifled in its mission to serve the refugees

in their places of refuge," Mr Jacob said. The matter had been referred
to the SACC executive for guidance and direction, since it had serious
legal and ecclesiastical implications. Most of the exiles left behind
dependants and young families without provision for their needs. [Text]
[Johannesburg THE STAR in English 25 Jun 86 p 3] /9317

/cso: 3400/160

61



mojor chongen rimply be-
cause the very poor arc
the leet to benefit when
timea are good and the
first to be hurt when
times are bad.

It {8 on economic and
social problems facing
the world and the de-
veloping countries in
particular that ccucrete
solutions will be expected
from the summit, Indeed,
the relations of the Third
World countries and the
developed capitalist
countries have been
characterised by ine
equality, domination ang
outright exploitation.

The gap between rich
and poor countries is
morally indefensible and
the present internationa)
economic system must be
altered to begin to
moderate present ex-
tremes in the distribution
of income and wealth,

They should seek to
remedy the ever-increas-
ing debt problem fac-
ing the developing coun+
tries, which in its current
state cannot be serviced
without damaging the
economies.

The developed capital-
Jat countries have certain.
ly let these developing
countries down and in
Avgust in Harare the
latter should decide to act
ond act on their own and
collectively.

While the call for 2
New International Econo-
mic Order is still justi-
fiable, perhaps it should
be realised by all in-
volved that the de-
veloping countries cannot
expect the Western world
to rescue them from their
poverty. I believe that no
effort should be spared in
attempts to bring about
meaningful South-South
co-operation.

The realisation that the
developed countries have
over the past decade been
back - pedalling on their
promise to search for a
workable and mutually
beneficial world economic
order, should push the
delegates ot this con-
ference towards efforts
to seek for a South solu-
tion to South economic
problems.

They will have to
search for means of ex-

ploiting the vast scope of
potential South-South co-
operation, whether in
economic or humanitarian
spheres, for the benefit of
the majority of the
world’s population living
in the South.

Indeed, August will not
be a time for collective
wound licking, or point-
ing to colontal legacy for
present ‘economic prob-
lems, it will be time for
some bold new initiatives.

After colonial rule
many former colonial
masters were content on
perpetuating colonial
economic relations with
the countries of Asia,
Africa and Latin
‘America, Apparently to
them there was aothing
amiss in economic rela-
tlons which relegated the
role og the developing
countries to that of:aup-
plying. unprocessed raw
materials while importing
manufactured goods.

It was in 1974, hard on
the heels of disruptive
rises in global.oil prices
that the developed coun-

tries were forced to see
that developing countries
were not satisfied with
the workings of the inter-
national economic system
and hence made promises
of a New International
Economie Order dut of
fear. At Icast the de-
veloping countries had
made it clear that they
would not stand by while
such vital commodities as
ofl were squandered with
little or nothing coming
them.

The pillaging of de-
veloping countries had
gone on for long enough
and had to be stopped. As
soon gs the developed
countries survived this
shock, and their fears
having aborted, they
were prepared to dis-
regard the demand for a
New International
‘Economic Order.

International economic
relations have, with
minor changes gone back
to their pre-1974 level.
‘The South has continued
to be mortgaged to the
North — its natural

agticulture and com-
modities, financial
resources and industry,
trade and com-

7

munications, even its
literacy and health.

It hog resulted in the
concentration of ecano-
mic: power in the hands
‘of a few developed
countries, which lay down
the rules of international
trade, the monetary
system, finance and de-
cision - making arrange-
ments, Consequently the
developing countries are
economically a8 dominat-
ed today as they were
‘under direct colonial rule.

It is not surprising,
then, that the existing
order has failed to solve
the basic problems of de-
yeloping couutries = —
acute poverty, wun-
employment and lack of
self-reliance.

The countries of
Africa, Latin America
and Asian have lost con-
trol of deciding at what

ice their commodities
‘should be sold.

‘Those developing coun-
tries which have moved
into the manufacturing
sector have faced severe

roblems in thelr en-
Reavours to sell their com-
modities in the developed
countries. Generally, de-
yeloping countries have
faced igh tariffs from
the West, non-tarrif and
other trade barriers in
their attempts to export.
Such is the sad state of

affairs.

‘While one is not calling
on the Geveloping equn-
tries to drop the call for
8 New International Eco-
nomic Order one hopes
that our leaders will see
that this must now take
another direction and on
a new level altogether.
‘There is more to be gain-
ed than lost through col-
lective self-reliance and
general collective and Te-
gional planning among
the non-aligned countries,

Doubtiessty the Non-
Aligned. Movement Is ©
powerful political force,
Dut most of all these
countries are great pro-
ducera of vital industrial
raw materials and o huge
market in themselves for
that matter. There Is
good reason for them to
turn towards each other
for trade und industrial
development, Competing
with each other in on at-
tempt to gain the con-



tably be a growing number of in- ‘

formal settlements in urban
areas.” .
The second impression that

must be corrected is that there isa.

section in the police which is not
out of control but is in fact deliber-
ately used to exploit factional divi-
sions within the black community :
to achieve short-term government
ends.

That some people in government
should be backing such a strategy
is not surprising. Divide and rule is
one of the oldest political strate-
gies in history and it has often been
quite effective — from the point of
view of the ruling minority.

Leaving the issue of morality
aside, we must ask whether the ,
kinds of methods allegedly used in *
Crossroads and KTC can ever
achieve any stability.

A. usually happens, ideological
differences greatly inflame the
whole issue. The “witdoeke” of
Crossroads are supposed to have
some Azapo connections while the °
“comrades” are affiliated to the
UDF.

Again, the Urban Foundation
sounds a wise word of warning. In
his memorandum, Appleton
writes:

“The decision to recognise an

Azapo ‘victory’ will not be taken
lying down by the strong UDF sup-
port in the existing townships, par-
ticularly amongst the youth.

“Already attempts are being
made to rally support to drive the
Ngxobongwana faction (the ‘wit-
doeke’) out of Crossroads. The deci-
sion not to allow persons driven
out in the latest violence to return
will purely spread the violence and
will not reduce it.”

In general, government needs to
allay the widespread fears that it
is prepared to use virtually any
methods to achieve its objective,
regardless of the longer-term poli-
tical considerations.

In Cape Town people in the
“moderate middle” are saying
without qualification that govern-
ment has used violence to clear
sections of Crossroads “which it
had always intended to do”.

‘The new security Bills will give
even wider powers to the police
than it currently enjoys. It will

/12828
CSO: 3400/83

* force us to rely on the police ver-

sion for what happens in “unrest
areas”.

The courts will probably be
eliminated in cases concerning se-
curity. In the handling of unrest
situations it will bring SA much
closer to a barely qualified dicta-
torship. iy

The allegations of police com-
plicity in the fighting at Cross-
roads and KTC are so disquieting
that one is compelled to urge gov-
ernment to heed the lessons of Ar-

entina’s “dirty war” in the late
venties.

‘There the extreme Right-wing

of the Peronist movement, orga-
nised in the sinister Alianza Anti-
communista Argentina and heav-
ily leaning on police. and military
personnel, embarked on a cam-
paign of intimidation and terror.

ough the military rulers of
Argentina did their best to keep the
whole operation secret, aided by a
fearful population which simpliy
did not want to admit that it knew,
the story leaked out.

T.. recent report of Argentina’s
‘National Commission to Disap-
red People, entitled “Nunca
4s” (“Never: Again”) and pub-
lished by Faber, states:

“Great catastrophes are always
instructive. The tragedy which be-
gan with the military dictatorship
in March 1976 will undoubted]
serve to help us understand that it
is only democracy which can save
a people from horror on this scale,
only democrac:
and safeguard
of man.

“Only with democracy will we
be certain that ‘Never Again’ will
events such as these, which have
made Argentina so sadly infamous
throughout the world, be repeated
in our nation.”

- The catastrophe in Crossroads
and KTC is bad enough in itself to
demand a commission of inquiry.

If government and security
forces have clean hands in this sor-
did affair, they should have no dif-
ficulty in acceding to such a re-
quest.

e essential rights

35

which can keep.

If government continues to re-
ject such calls, bodies with stand-
ing in the community — such as
the Cape Town City Council and
the Urban Foundation — should
consider holding unofficial public
hearings. . ;

Our name and the political

“future of all of us are at stake.


JPRS*SSA~86*081
29 July 1986

SOUTH AFRICA

PRECIOUS METALS EXPORT EARNINGS SEEN BOOSTED BY SANCTIONS
Johannesburg FINANCIAL MAIL in English 27 Jun 86 p 88

[Text] Whatever the overall effects of sanc- Conversely, invest:

tions on SA's economy, earnings from ment in platinum as a

export of precious metals are likely to precious metal —

be boosted, at least in the short term. + Japanese jewellery

That, at any rate, is the positive view purchases make up

of Aiden Edwards, president of the roughly a quarter of

Council for Minerals Technology all sales — could in-

(Mintek), a government-private sector crease.

body investigating beneficiation. “What we are look-
He tells the FM. that the platinum ing at here is a short-

price could double, and the gold price term boom and there-

increase by between 10% and 50%, after, possible serious

depending on the strength of the inter- damage to the industry s Edwards.

national sanctions packages. . He points to the sudden jump in the pold
“Subject to world perceptions of the price in the days preceding June 16 to illus.

seriousness of the South African situa- trate the effect political une

tion, forcign exchange earnings from have on the price of SA's single most impor-

these two important commodity ex- tant forcign exchange carner. Sanctions

ports would appreciate considerably.” would increase this uncertainty, placing a

says Edwards. solid platform beneath the international gold
SA is responsible for about 90% of price

annual world platinum production and “Gold is also an excellent instrument for

supplies some 50%-60% of the West's international barter deals." {1 would be a

gold. Sales of gold accounted for 45%. major trade weapon in SA's arsenal.” says

of the country’s total exports of R33 Kdwards

billion in 1985. Given international Diamonds provided some 3% of the coun-

demand and the many devious trade cign exchange earnings in 1985, 3
routes, particularly * i cult to project the effee
for gold, it would be while De Beers’ Cent

1 Organisa-
virtually impossible to tion virtually controls the international mar-
embargo exports of ket.
the two metals. Producers of other strategic n ~

But, adds Edwards, chromium, manganese, vanadium and titan-
there is a danger that ium -— would probably not be as fortunate,
users of platinum as as they are mostly casily identifiable
a chemical catalyst in . bulk exports. Alternative producers
the motor, petroleum, would be quick to fill any gap left by
nitric acid and other SA's absence from interfiational mar-
chemical industries kets,
would look for — SA has about 75% of proven world
cheaper alternatives if chromium reserves and produces some
prices shoot through 50% of the world’s ferrochrome, which
the roof. is essential for stainless steel manufac-

. ture.
| -

82



Books To Boost Young Black Adult Education
‘(Kate McKinnell; THE STAR, 30 Jun 86) ....seeeeeeeeees

Briefs
Mamelodi Residents Get: Ultimatum
Kuni Community Saved From Resettlement
UDF, Cosatu Deny Pamphlets

SOCLOPOLITICAL/OTHER

Government Urged To Clear Its Name in Crossroads Issue
(Hermann Giliomee; THE STAR, 17 Jun 86) sssccesreeeveseees

Nation's Reaction to U.S. Policy Criticized
(Neil Lurssen; THE STAR, 20 Jun 86) ..-sseercseeeeseveeeee

Commentary Underscores Nation's International Isolation
(Van Zyl Slabbert; THE STAR, 20, Jun 1.) is

Broederbond's Influence in Nation's Education Explored
(THE NEW NATION: 19 Jun-2 Jul 1) es seeeee

Emigration Inquiries Increase After Emergency
(THE STAR, 20, Jun 86) .sseceececvevececece

Teachers Address Deteriorating Relationship With DEC
(Ronnie Morris; CAPE TIMES, 24 Jun 86)...

Reporters Take Government Sponsored Tour of Black Townships
(Kanthan Pillay; POST NATAL, 25-28 Jun 86) .

Paper Notes Militant History of Saawu
(Mike Siluma; THE STAR, 26 Jun 86) ..

Lawyer Spells Out Regulations Governing Detainees in Emergency
(CAPE TIMES, 27 Jun 86) ....

Statistics Show 'Dramatic Drop’ in Violence
(Keith Abendroth; THE CITIZEN, 28 Jun 86) ..sssseeceeeeee

NP's Consideration of Nonaligned, Neutral RSA Seen as Ludicrous
(Hugh Roberton; THE DAILY NEWS, 30 Jun 86) ...secseceeeees

Natal PFP Leader Fears Consequences of New Exco System
(Bruce Cameron; THE DAILY NEWS, 30 Jun 86) ..eceeeeeeeeere

Article Sees Mining Unrest To Continue
(THE NEW NATION, 19 Jun-2-Jul 86) .ceccceeceecvncecccccere

Transport Workers Union Breakaway From CUSA
(THE NEW NATION, 19 Jun-2 Jul BO) rccccccecevcercccevssces

31

34

36

38

40

42

44

45

47

48

50

51

53

55

56


pushes up the cost of
spares. The matter is of
concern, as cost control is vital to any future
decision to expand the mine underground.

Vermiculi Palamin’s main by-product.
{1 occurs in thin, flakes, and is recovered
by feeding the crushed ore through an air j
stream which winnows off the flakes. When i
heated, vermiculite expands into a prodyct of
excellent thermal and sound insulating prop-
erties. Palamin accounts for some 33% of the
Free World's production, Demand is strong, |
particularly for finer ranges, and an enlarged |
plant will be commissioned in the second half
of 1986.

However, back to copper. The crushed ore
undergoes a process of flotation, and copperi
is extracted by chemical reagents. The resi
due or tailings contain magnetite, which
removed on revolving magnet drums. Fue
ther tréatment extracts uranium and Zircc a
ium, and the high phosphate tailingsare the.
pumped to nearby Foskor. Al the’ smelted!
the copper concentrate is melted in.a reve
batory furnace, and separates info, two dis-
tinct layers: copper matte and islag. The!
copper matte is blown with air thrpugh thréc
converter furnaces, in a procesl which, oxi-!
dises the iron and sulphur, 2 fe) |

Molten copper is then cast int@ian andde of!
99,5% purity. By intensive electrolytic refin-
ing, copper ions are then transferred from
the anode onto a cathode of 99,997%-purity.

113104
cso: 3400/242

85

!The smeiter process also yields sulphur diox-
tide, which is converted into sulphtiric acid
jr sale to Sentrachem’s Fedmis.:A R35m
sulphuric acid plant is due for, completion
: this year to increase the capture of the sincit-
‘er's sulphur emissions. Anode Slimed from
‘ the refining stage are treated abroad to cx-
! tract precious metals such as gold, silver and
| PGM. Leaving costs aside, present business
_ conditions are favourable. Borrowings slid in
1985, and the debt:equity ratio fell from 0,44
to 0,31, This has allowed for a more liberal
-dividend policy, and earnings this year may
‘be held. Palamin sells its copper at the Lon-
don Metal Exchange (ILME) sterling prices.
LME copper prices in the first five months of
£1986 have dropped some 12% compared with
‘the 1985 average, and could fall further. But
the rand is weaker, production ishould in-
frease in 1986, and costs are budgeted not to
tise by more than 7%. 4
This year’s dividend should’ be main-
tained, placing the share at ‘R22 on a favour-
able 8,2% dividend yield and a pie ratio of
7,4. The income yield is attractive, but an
investment in rand hedge stocks “involves
taking a view on the volatile exchange rate.
If you believe the rand is headed inexorably
lower, Palamin must have investment ap-
peal. If the rand firms, the share'could still
offer short-term gains.- Whatever the case,
Palamin has plenty of go left. \ i:



JPRS*SSA+86-081
29 July 1986

SOUTH AFRICA

PROFITS SHOW PALAMIN AS HIGHLY EFFICIENT COPPER PRODUCER
Johannesburg FINANCIAL MAIL in English 27 Jun 86 p 98
{Article by Christopher Marchand]

[Text] Palamin remains one of the world’s more |

efficient copper producers and has achieved |
large savings by cost cutting measures. The
share is seen as a sound rand hedge stock. +

Take a high-risk commodity like copper and
what do you get? Palabora Mining (Pala-
min), one of SA's most successful mining
ventures. International copper prices are un-
der pressure, owing to global over-capacity,
but Palabora has carved out an assured mar-
ket for its supply of high-grade copper. Its
success ‘stems from tight cost control and
solid technology, which enables Palamin to
turn low-grade copper ore deposits into some
of the highest quality cathode on the world
market. With the rand sharply weaker in the
last financial year to end-December, carn-
ings rose by 51%, and the dividend by 64%.
How did it begin? The Palabora mine was:
made possible by a geological process. which
began 2 000m years ago. A series of massive
volcanic upheavals tore the earth’s crust,
forcing millions of tons of magma up from
great depths. On cooling, a “treasure house!”:
of minerals was left, now known as the Pala-
bora Igneous Complex. Copper apart, phos-
phates, vermiculite, magnetite, uranium ox-
ide, zirconium, nickel, gold, silver anu
platinum group metals (PGM) are extract
ed. Vermiculite is mined separately. By- pro-
ducts contribute 20% of Palamin's sales rev-
enue. Hy
Since 1966, the complex has been mined
by Palamin, controlled by both Rio Tinto’
and Newmont Mining. Foskor has the rights
to the phosphates, which Palamin mines in,
the same open cast pit as the copper. At a:
mining rate of 100 Mt/year, Palamin is the .
second largest open cast operation in thé
world. The pit is centred on a vertical ore !

84

jbody: 1,9km by i,54km in size. Rock is

loaded onto haulage trucks and driven to the
‘surface for crushing and milling, which is
‘done in conventional and autogenous ‘cir-
cuits.

At this point, we see the operation of cost
savings. The trolicy assist haulage is prob-
lably the most impressive measure. Trucks
jhauling ore/waste out of the pit are connect-
ed to overhead lines, which feed electricity
directly to the motors. This allows the diesct
jengine to tick over and dramatically cuts fuel
‘demand. Palamin MD Al Leroy says the net
energy saving in 1985 was R14,2m, or
“R30,5m since 1983.
; Other cost measures include last year’s
iphasing-in of a computer despatch system to
improve fleet usage, manufacturing truck
main frames locally, improved truck main-
tenance, and the use of cost-efficient emul-
sion explosives for primary basting. The pos-
sible switching of primary crushing from
‘surface to the pit is under consideration,
of the truck fleet.

Palabora has no control
‘ over its largest cost in-
+ puts, and is a victim of
| such factors as high infla-
‘tion and the exchange

rate. Leroy notes that the

average cost of cathode .

produced in 1985 rose by

27% to R2012/t. Ener-
‘gy prices (electrical
| power and diesel fuel) are
{the largest cost contribu-
jtor, as the mine relies al-
{most entirely on Escom

for power. For its part,

{the falling exchange rate



GOLD MINING EMPLOYMENT SETS NEW RECORD

Johannesburg THE CITIZEN in English 25 Jun 86 p 29

[Article by Madden Cole]

[Text]

THE level of employment
in the gold mining indus-
try set a new record in
1985 and total mining em-
ployment increased by
13 100 to 725 000, the out-
going president’ of the
Chamber of Mines, Clive
Knobbs said.

As a labour intensive
industry, the mining sec-
tor provided an economic
lifeline to the country’s
tural areas and neigh-
bouring states,’ ensuring
the survival of millions
throughout the sub-conti-
nent, he said in his presi-
dential address yesterday.

“If all the money and
consumer goods gent
home, then over R1 000
million finds its way back
to source communities.”

Mr Knobbs said that *

total wages earned by the
total workforce amounted

19317
CSO: 3400/164

‘to R3957 million “last
year, an increase of R569
million compared with
the 1984 wage bill.

Referring to gold pro-
duction he ‘pointed out
that contrary to the gen-
eral trend, output in
South Africa fell by. 12
tons from 183 tons in 1984
to 671 tons last year.

The fall, in spite of the
continued expansion in
milling capacity in mines,
was caused by a 5,3 per-
cent fall in the average
grade in ore milled.

. “The lower
grade largely reflects the
high rand gold prices
which allow South Afri-
can mines to process ores
previously uneconomic at
lower prices.”

Referring to new mine

average |

safety records, | Mr
Knobbs said that a num-
ber of new safety records
were established last year
including new lows. for
both fatality and injury
rates: -

Another record was
that set for the number of
mines to attain a, million
or more  fatality-free
underground shifts in one
year. The new record of
20 mines bettered by
three the previous one set
in 1981. :

In the field of labour
telations he points out
that while the relationship
between ‘employers and
the National ‘Union’ of
Mineworkers (NUM) had
not’ ‘fully matured, . a
working relationship had
developed between them

87

JPRS*SSA*86*081

29 July 1986

SOUTH AFRICA

that was “not fuily appre-
ciated.”

This was not fully ap-°
preciated as “perceptions
of the nature of the re-
lationship ‘are shaped
instead by the consider-
able media coverage
given to the annual wage
negotiations between the
Chamber and NUM
which have become a
prominent event in this
country’s industrial re-
lations calendar.”

Mr Knobbs said that it
was essential that the last
temnant of discrimination
in the country’s labour
legislation was “cleanly

-excised” and that there

were not perceived to by

- any strings attached to its

repeal.



JPRS*SSA+~86=08)
29 July 1986

SOUTH AFRICA

BRIEFS

E. CAPE TEAM NAMED--The minister of constitutional development: and planning,
Mr Chris Heunis, has announced the names of the members of a task team which
will concentrate on the development of the eastern Cape. In a statement in
Cape Town, Mr Heunis announced the appointment of Prof (C. Waite), dean of
faculty of economic sciences at the University of Port Elizabeth, as fulltime
project coordinator of the team, to be known as the Eastern Cape Strategic
Development Team. The chief executive director of Mr Heunis' department, Dr
C.F. Scheepers, is the chairman. Mr Heunis said the team would consist mainly
of government concerns which were busy with major development projects in the
region, The private sector, however, would have top-level representation on
the committee. /Text/ /Johannesburg Domestic Service in English 0500 GMT
26 Jun 86 MB/ 12228

CSO: 3400/173

28



GOVERNMENT BLAMED FOR: “DISMAL” STATE OF CONSTRUCTION

Harare THE FINANCIAL GAZETTE in English 14 May 86 p 1

{Text ]

THE Zimbabwe government's
persistence in awarding lucrative
construction work to foreign con-
tractors, the concept of building
brigades, and existing employ-
ment and wages policies, have
combined to produce the local
construction industry's “most dis-
mal five-year performance
record” since the recession of the
1930:

So says a report receintly commis-
sioned by the National Joint Prac-
tice Committee ii corporating the
construction industry and allied
professions (architecture, quantity
surveying, steelwork and en-
gincering).

An effort to illustrate to govern-

ment the position in which the’con-
struction industry found itself at the
end of last year, the report also.
makes numerous suggestions as to
how, with government. under-
standing and assistance, it could be
revitalised, and in so doing, ‘assist
to its utmost ability in bringing
about the more rapid and success-
ful development of Zimbabwe’’.

SKILLS & EXPERIENCE

Pointing out that Zimbabwe has
al its disposal the services of a high-
ly skilled and experienced construc-
tion sector plus resources capable of
carrying out three times the volume
of work actually being undertaken
by it, the report calls “unwel-
come", the experience of secing
major prestige contracts awarded
during the business upturn of recent
years, go to foreign contractors.

“Government, the largest single

capital works developer, has en-
couraged the employment of foreign
contractors to execute works well
within the scope and ability of the
Jocal industry.

“This is amply illustrated by the
Hotel & Conference Centre in Ha-
rare, the Sports Stadium in Harare,
World Bank-funded road projects,
borehole drilling projects, World
Bank-funded urban developments
and aid-funded rural water
projects” .

It i$ unrealistic, the report con-'
tinues, to expect Zimbabwe's popu-
lation to accept that forcign

‘contractors, often appointed under
very favourable conditions, should
be busy at this time, while local

, building workers are unemployed,
contractors are under-employed and

sdational assets in plant and skilled
‘personne! are under-utilised.

Results of this policy include sus-
pension of training activities within
the industry, loss of personne! at all
levels of , loss of commissions
and work for local professionals, of
customs duties and excise for
government itself, and the spending
of considerable amounts of foreign
currency,

SERIOUS DECLINE

“Zimbabwe's construction sector
is being prevented from making its
potential contribution by a number
of policy issues that are forcing the
industry into a state of serious
decline,

“‘If the current threats to the in-
dustry are not removed, an inevita-
ble result will be the collapse of

14

JPRS“SSA~86*081

29 July 1986

ZIMBABWE

efficiency in the whole sector, the
dissipation of related skills, the
demise of building-supply compa-
nies and the failure of the nation's
urban development plans", the
report says.

+ Other major handicaps for the lo-
cal construction industry are the is
sues of minimum wages. pertodic
wage awards, job protection and the
upgrading of semi-skilled workers
whose skills and experience may not
be enough to carry the responsi-
bility.

The industry believes that a
“generally uncooperative attitude to
employers” has resulted from these
policies, an attitude that is perpetu-
ated by labour relations legislation
“which appears to many employers
to have been drafted on an under-
lying assumption that only workers
have rights and all obligations are
to be met by employers".

Building brigades, the repert
states, ‘‘are effectively a
ation of the distrust in
which the authorities hold the mo-
tives, working methods and skills-
requirement claims of private sec-
tor contractors”. The right place for
building brigades would be in the
rural areas’-- for single units like
schools and clinics ~ not on large
residential projects beyond their
scope.

In choosing to apply the tnixture
of current policies like these,
“the Government of Zimbabwe has
brought about conditions that have
combined to produce the most dis-
mal five-year performance record
seen by this country's construction
sector since the economic recession



Calling for individual security consciousness among party members, Cde
Munangagwe urged them to protect the party from reactionary elements who may
seek to destroy it, either from within or from without.

“Those who come from outside may be easier to detect because they may look and
sound strange to a party member... However, those who are in the party know
how to subvert the party using internal means," he said.

"When you look at our structures from the cell upwards, you will notice that

the subtlety of the subversion increases. That is why the vigilance of party
members must in turn increase as we move up in the party structures.”

/13104
cso: 3400/238

20



COLUMNIST OUTLINES IDEAL AGENDA FOR NAM CONFERENCE

Harare SUNDAY DAILY MAIL in English 25 May 86 p 8

{Article by Travor V. Ncube]

JPRS*SSA*86+081

29 July 1986

ZIMBABWE

{Text] The hosting of the Non-Aligned Movement summit by Zimbqabwe later this
year is likely to remain one of the greatest ‘political events to take place in

this continent for a very long time to come.

World attention, especially that

of the progressive section of the world, will be focused on the events of

Harare.

When the 101 world
leaders take their seata
at the Harare Conference
Centre they will be faced
with an ubenviable task.
to say the least, Tha
agenda for the talks is
most likely to be a hard
Dut to crack, since it
would be an attempt
towards solving some of

ie most burning inter-
national issues,

Featuring high cm the
agenda should definitely
be the situation just
across Zimbabwe's south-
ern border, where the
crisis in South Africa ta
moving inexorably to-
wards its climax, The
summit delegates will be
looking for ways and
meeus of dismantling the
inhuman political system
in South Africa,

The conference, owing
to the political climate
within which it hag been
hosted, will be expected to
tackle a grave world
problem, namely the
arms race. They will
either have to endorse
Cde Mikhail Gorbachev's
latest programme of sav-
ing the world from a pos-
aible nuclear holocaust by
the peer 2000, or for-'
mulating ‘and’: tabling
their own proposals.

The Iran-Iraqi war is
still raging on unabated
and now going into its
sixth year. Both —bel-
ligerents are member
states of the Non-Aligned
Movement. Issues which
seek the attention of the
movement and ‘involving
two or more members are
likely to divide the move-
men!

A solution has to be
found to this costly and
unnecessary Gulf war. It
has = brought = enough
human suffering not to
mention the conomic
lamage, Thig issue in,
found to test the political
maturity of the
movement — they must
not allow themselves to
be divided.

‘The political situation
in South America, where,
the United States ig pur-
auing its self-styled role
of being world policeman
has caused 2 lot of
human suffering and loss
of life by aiding anti-
overnment elements like
The so-called contras in
Nicaragua ond by sup:
porting right-wing dic-
tatorial governments as
hag happened in Hi Sal-
vador, will call for their
attention.

‘The movement has to
register its condemnation

16

of any form of inter-
ference in the affairs of a

sovereign state, be it a
member of the movement
or not, .

The Namibian question
which has been linked to
the presence of aed
troops in Angola by tha
Americans certainly’ de-
gerves the attention of
the movement. Coming in
as it does after America’s
unprovoked attack on
Libya the summit will de-
nounce such acts of
military aggression as
avenues of settling
political disputes,

For the benefit of
world peace and stability
such naked aggression
cannot be condoned and
the movement can be ex-
pected to give full sup-
port toe Libya ae the

aratory meeting in
Rew Dethi has done.

Most member atates,
especially those from
‘Africa have just been
through severe droughts
and hence numerous
eccnomic problems, with
their attendant — social
Tepercussiona.

While there has been o
general world ecotiomic
‘upturn, especially on the
world capitalist econo-
mies, developing countrics
have not experienced ary



JPRS*SSA*86*081
29 July 1986

SOUTH AFRICA

SQUATTER CAMP SPREADING BEHIND COLORED TOWNSHIP
Port Elizabeth WEEKEND POST in English 28 Jun 86 p 6
[Article by Shirley Pressly]

{Text] A squatter settlement is spreading like a cancer on windswept flats
behind the established coloured township of Arcadia, near Humansdorp.

Living conditions in the squatter settlement, which is controlled by the
Humansdorp Divisional Council, are shocking by western standards.

Some of the people living there cannot afford better accommodations.

But even if they could afford homes in Arcadia, there are apparently none
available at the moment for rental.

The shacks which have been constructed there are a barometer of the worldly
wealth of their owners.

Some have built sturdy wooden shacks with interior walls to partition living
and sleeping areas from the "kitchen".

Others ace Heath Robinson structures which look as if they will collapse like
a pack of cards in the first strong wind.

The site for the squatter camp is on high-lying flats which are buffetted by
the chilly winter winds which howl around the shacks at night.

Old-timers say that in years gone by people lived there but then moved to the
lower-lying Arcadia because of the high water table and underground streams
from the foundations which "bubbled up” during heavy rains on the flats.

Some of the shacks do not have flooring and have earth floors which become
sodden during heavy rains.

The squatters pay a monthly rental of R13,60 which is broken down into R10 for

the site and the balance for “services” which comprise twice weekly nightsoil
removal and one water tap to serve the whole settlement.

29



5a S88A~86409)
July 1986

NIGERIA

BRIEFS

COMMONWEALTH SANCTIONS URGED--The Federal Government has said in Lagos
that it "sees no option open to the Commonwealth, if it is to maintain
its credibility than to adopt effective and comprehensive sanctions
against South Africa." In a statement on the report of the Commonwealth
Group of Eminent Persons, the Federal Government called on the "interna-
tional community to draw the right conclusions if a blood-bath of immense
proportion is to be avoided in South Africa." It called on the inter-
national community to "undertake such effective measures that will
compel the apartheid regime to change its policies and thus make the
demise of apartheid as non-violent as possible. The Federal Government
noted: "It is now clear beyond any shadow of doubt. that the apartheid
regime will not be persuaded by negotiations, however, well intentioned,
to start the process of dismantling its evil policy." [Text] [Enugu
DAILY STAR in English 16 Jun 86 p 1] /9317

cso: 3400/200

11



JPRS*SSA*86+081
29 July 1986

Agriculture in the House of Representatives, David Curry, offered all the
development to private enterprise - provided that they could produce homes at
affordable prices. The intention was that all homes would be sold under
freehold title. Small contractors would be encouraged. The area had been
split into six sections, sized to accommodate small and large developers and
even one-man teams. Curry explained that the State hoped to stabilise land
prices in the area by starting the project now. The Blue Downs land,
approximately one quarter of the area earmarked for the 4 000ha Kuils River
project, was State owned, but the rest of the land was in private hands.
“Prices are sure to rise," Curry said. “There is an increasing shortage of
land for housing development throughout the (Cape) peninsula.” A private
enterprise scheme for up-market black housing has been announced by Bellandia
Homes in the Cape. The company will build 101 homes - ranging in price from
R40 000 to R80 000 - at Khayelitsha on the Cape Flats. [Text] [Johannesburg
BUSINESS DAY in English 2 Jul 86 p 5] /13104

SOUTHERN CAPE DROUGHT--So intense is the drought in the southern Cape that
farmers there have, for the first time, made application for the region to be
declared drought-stricken. Sapa's correspondent reports that a farmers’
action committee has been formed at Plettenberg Bay to deal with the drought.
Virtually no rain fell in the region last month. The rainfall there this
month has been well below average. The drought is also affecting parts of the
northern, north-eastern and eastern Cape. The situation in the vicinity of
Uitenhage and the Sundays River Valley has become critical, and rain is
urgently needed in the Albany and Bathurst districts. [Text] [East London
DAILY DISPATCH in English 27 Jun 86 p 15] /13104

EXPORTS UP TO ANTIAPARTHEID COUNTRIES--Exports to countries known to be politi-
cally antagonistic towards SA hit new highs in 1985. Figures compiled from the
Monthly Abstract of Trade Statistics show that exports to the Netherlands
doubled to R1,lbn in 1985 from R562m in 1984, Exports to Australia shot from
R156m in 1984 to a massive R216m in 1985 while goods to Ireland rose by R20m

to a new record of R84m. Exports to Luxembourg more than trebeled to R661m
last year compared to $218m in 1984. Spain's intake doubled from R146m to
R283m while Italy's buyers scooped goods to the value of R90Im as against
R567m the previous year, SA Foreign Trade Organisation (Safto) director Anne
Moore confirmed last year's totals. "In real terms, trade volumes improved by
about 20% in 1985 over 1984," she said, [Text] [Johannesburg BUSINESS DAY in
English 24 Jun 86 p 12] /9274

PRECIOUS METAL SMUGGLING OPERATION--Members of the Benoni Vehicle Branch have
discovered a precious metal smuggling operation between the Republic and other
African countries, Cobalt is believed to be among the smuggled metals which
were transported in secret compartments in trucks. ‘The discovery was made this
week when members of the unit raided premises of a transport firm in Wadeville,
Germiston, Five 30-ton Mercedes-Benz trucks were found on the premises, The
trucks were unlicensed and had false bottoms big enough for a man to fit in
comfortably, said a spokesman for the unit. Forensic tests will be conducted
to find out what types of goods have been carried in the compartments, Police
are searching for a man believed to be involved. A 27-year-old driver has been
arrested by police, who have also taken possession of the five trucks. [Text]
[By Anna Louw] [Johannesburg THE STAR in English 27 Jun 86 p 1] /9274

99



JPRS“SSA+867081
29 July 1986

SOUTH AFRICA

METAL, ENGINEERING FIRMS TABLE NEW WAGES OFFER
Johannesburg BUSINESS DAY in English 30 Jun 86 p 1

{Article by Claire Pickard-Cambridge]

[Text] EMPLOYERS have tabled a new wage puts the new minimums at between
offer for 350 000 em layers in the metal 22 and R5,81 an hour,
and engineering industry in an attey Talks began in April and several
to resolve the disputes and deadibeks unions declared disputes after the second
existing between the employer body and round of talks.’
‘six unions. The Metal and Allied Workers’ Union
The unions represent nearly 130000 (Mawu), the Steel, Engineering and Al-
workers and their response — which will lied Workers’ Union (Seawu) and the
be relayed to employers at a special Electrical and Allied Workers Trade
Industrial Council meeting in a week’s Union of SA (Eawtusa) — in deadlock
time — could indicate whether a wide- with Seifsa — have stuck to their original
spread strike is in the offing. ; demand of a minimum of R3,50/hour.
Nine of the 15 unions on the council The SA Boilermakers’ Society (Sabs),
have accepted the offer, but sources be- the Engineering and Allied Workers’
lieve Manpower Maine Pietie du Pes: ‘Union (Eawu) and the Eastern Province
sis woul ye unwi ; a
agreement to the entire industry if many Tener sar ginoerina and Gereral
unions refused to be party ‘to it. : with Seifsa. H °
The Steel and Engineering Industries se my 7
Federation of SA (Seifsa) met the unions ‘C)MICK’ COLLINS reports Maw ‘wiif
on Friday to confirm it was improving this week hold its ‘first national congress
wages for workers on lower grades. which is expected to focus on the dead»
Minimum increases offered range be- lock in national wage negotiations In thé
tween 32c/hour on the lowest unskilled metal industry. + . .
rades to 60c at the top. This amounts to More than 300 delegates are expecteif
increases of between 17% and 11,5% and to attend the Johannesburg meeting: .
113104
cso: 3400/241

86



JPRS«SSAnggn
29 July 198g

BUILDING SOCIETIES CONCERNED. WITH BLACK HOME FINANCING

Johannesburg BUSINESS DAY in English 20 Jun 86 p 5

[Article by Arnold Van Huyssteen]

[Text ]

19274
CSO:

-BUILDING societies are taking special
social circumstances of potential black
loan applicants into consideration,

The SA Permanent Building Society,
for one, is drastically restructuring the
traditional credit-rating condition that
monthly repayments should not exceed
25% of the breadwinner’s income and
that his income alone determines the
granting of bond finance.

These new criteria would only apply
to the “Zenzele” wattle-and-daub form
of construction that has been devised by
the Urban’Foundation, as well as to the
self-help housing scheme in Katlehong,
near Germiston.

“We are devising alternative methods
to meet the home-financing needs of
SA’s population at large,” says a spokes-
man for SA Perm.

SA Perm has also launched the “SA

‘Perm Architecture Design Challenge

1986” which invites all SA universities
with architectural faculties to submit
designs for affordable black housing
units in the price range R15-R20 000,
inclusive of the serviced site.

They hope that the innovative ideas
received from students would assist in
meeting the black housing backlog.

Building societies also eagerly await

the promulgation of the new Building
Societies Act to see how this would af-
fect alternative financing. methods.
;, Meanwhile, the shortage of serviced
land still hampers the expansion of the
burgeoning middle-class black housing
market.

A spokesman for Bester Pro;
A sible for the massive Mitchells
'Plain coloured housing project in Cape
Town, says there is a huge and growin;
demand for quality housing in most
black townships. -

“The market is virtually insatiable
and houses selling for anything between
R30 000 and R40 000 are very popular in
some Reef areas. With government sub:

3400/193

ties,

sidies available to many black purchas-
ers, building societies are also more
amenable to the granting of bonds,” he
says, -*

But many stumbling-biocks still exist.

“Apart from the shortage of serviced
land, practical problems like the lack of
essential services, ‘competition’ be-
tween the public and private sectors and
confusion between freehold and lease-
hold property rights also complicate the
situation,” adds the spokesman.

‘Although government last month allo-
cated R328m for the provision of ser-
viced land for black urban housing de-
velopment, the shortage of land — both
setviced and “raw” — is crucial.

“At Pimville, Soweto about 700 to 800
erven are now being developed in the so-
called ‘buffer 5 a8 no other land is
available. Houses are being built for sale
in the R30 000-R40 000 range, while at
Protea North hundreds of houses are
being developed on erven that sold for
up to R8 000,” he says.

The Bester spokesman says although.
jovernment’s assistance with informal
jousing is to be welcomed, the provision

of psite-and-serviceTM pro ty, together
with loans of up to to black buy-
ers to build their own homes could lead
to squatting conditions.

He says “unfair competition” could
exist if the State is allowed to provide
“subsidised” housing against which the
private sector would not be able to com-

te.

Pee further practical: problem is that
the registration of leasehold properties
or bonds thereon can take “months”. The
choice that now exists between lease-
hold and freehold ties for black
housing also complicates the situation,
he says.

But there is no doubt in his mind that
“massive goodwill and positive atti-
tudes” would be generated by the
launching of new housing projects for
blacks. . . :

71

SOUTIL AFRICA



T.. elites that took over from
the departing or ousted colonisers
could not trust the populations
they aspired to govern, particular-
ly since those populations were of-
fen divided on ethnic and other
lines and tolerance has never been
one of the continent’s most salient
virtues.

The approaches adopted by the
Kaundas and Nyereres may have

differed from those of Frelimo and.

the MPLA, but mostly as a matter
of tone, not substance. Whether
calling themselves comrade or the
father of the nation, all have
sought to confirm the infallibility
of the state as embodied in their
own person and party.

In the face of overwhelming con-
trary evidence, such infallibility
could not survive if the governed
were allowed to think, act or make
decisions for themselves. They
must be made to believe that all
good flows from the state, and all
evil from the outside world, in par-
ticular from Western “racists” (see
how they support SA) and “imperi-
alists”.

Free enterprise and the market-
place pose a grave threat to such
regimes because they imply peo-
ple making decisions, acquiring
and distributing wealth and goods
beyond the state’s control.

For one thing, this means that
someone other than the great infal-
lible state is putting food on peo-
ple’s tables. Which cannot be tolér-

-ated. It is better that people —
except, of course, for those in the
cities needed to maintain the state
machine — starve. .

Along come the donor nations,
callously demanding that the-ap-
paratus and mythology of state

19274
cso: 3400/197

control be undone and extolling the
virtues of its most dangerous en-
emies: the private sector and indi-
vidual initiative. A cruel, neo-colo-
nialist trick.

The East, on the other hand, un-
derstands and sympathises with
these regimes. It doesn’t nag about
human rights or corruption or in-
competence or the creation of good
investment environments.

It talks instead about: power, its

- acquisition and maintenance, and

is only too happy to provide the
necessary tools and the moral and
military support. To be sure, it too
may put a price on these services,
but at least they are the services
that are wanted.

Much the same applies to the SA
situation. Here again the West is
behaving in a manner entirely
counterproductive to the interests
of the elite seeking power.

Craven as ever, the US and its
allies are trying to foster an open,
multiracial democracy.

T... are pumping in money for
black education and business crea-

tion. They are trying to encourage

dialogue and peaceful transition.
Their companies are providing
employment and helping to im-
prove living standards, spoiling the
proletarjat for their re-enslave-
ment once the existing order has
given way. And they are resolutely
refusing to destroy the economy.

What a solicitous, uncompromis-
ing friend is the East bloc by com-

parison. It makes all the right

noises in international fora. It pro-
vides the guns, the ammunition

‘and the legitimising ideology.

And it asks absolutely nothing in
return ...



JPRS*SSA-86408)
29 July 1986

SOUTH AFRICA

FINANCE MINISTER ON PARTITION; BILL READ
MB251103 Johannesburg SAPA in English 1036 GMT 25 Jun 86

[Text] House of Assembly, 25 June, SAPA--Although partition had once seemed
a good idea, it was an unattainable dream that could not be put into practice,
the minister of finance, Mr Barend du Plessis, said today.

Replying to the second reading debate on the regional services councils [Ress/
amendment bill, he said partition was a good idea at the time it was first
advocated.

"But if you are driving along and you see an elephant in the middle of the
road, it doesn't help to pretend it doesn't exist," he said.

The dream of partition did not take account of economic and other factors and
was unattainable.

Responding to points raised by Mr Nic Olivier (PFP /Progressive Federal Party/
nominated), Mr Du Plessis said RCSs were necessary for orderly development in
South Africa.

The government was put in a difficult position because the PFP argued that the
bill entrenched apartheid while the CP said it would bring about "total
integration."

The bill did not change the realities in South Africa but was merely a way of
providing necessary services.

In reply to PFP doubts about the wisdom of introducing a levy on businesses
before the Margo Commission had delivered its report on the tax system, he said
the commission might make a recommendation on the levy.

If the commission came up with a better idea for raising money for development,
the government would consider it.

However, the government could not wait any longer and would go ahead with its
plans because delays had already cost the country between R1.2 billion and
R1.5 billion in lost development.

The bill was read a second time after a division called by the PFP.

/12228
CSO: 3400/173 \



"It will be immensely difficult to pull the economy out of this vicious circle
of currency depreciation and inflation."

The new sitmulatory fiscal package announced last week by the minister of finance
should be welcomed. The measures should be seen as part of an imaginative
strategy for deregulation, urbanisation and housing development,

Mr Knobbs said the package should act as an incentive for further initiatives
from the private sector and might improve confidence in the economy.

"Indeed, enhanced confidence may lead to a degree of appreciation of the rand,
notwithstanding political pressures, and this can only help the fight against
inflation," he said. .

Perhaps the most promising had been the boost given to the economies of the
industrial world by the massive decline in the oil price.

The prospects for more vigorous growth in the economies of South Africa's main
trading partners and customers now looked better. High levels of demand in
these economies must be good news for South Africa.

"The essential conditions for an improved outlook for the South African economy
remains, however, significant political reform which should be accelerated,
particularly in areas where it will. have tangible benefits for the country's
black citizens," Mr Knobbs said.

"The developments which we have initiated in the mining industry form part of
the fundamental changes taking place in the South African society for the good
of the country and all its people.

"That the mining industry will continue to play a prominent role in promoting
a supporting reform during the challenging years that lies ahead is beyond
doubt," Mr Knobbs added.

/12228
CSO: 3400/169

78



JPRS«SSA*86~081
29 July 1986

SOUTH AFRICA

INTERNATIONAL CAMPAIGNS TO DEAL HEAVY BLOW TO KRUGERRAND

Johannesburg THE STAR (Business) in English 26 Jun 86 p 16

[Article by Neil Behrmann]

[Text]

LONDON — Marketing cam-
paigns of the Canadians, Austra-
lians and the US will put the
final nail in the Krugerrand’s
coffin — unless the Government
changes its political stance.

To counter international sanc-
tions against. Krugerrands, In-
ternational Gold Corp (Inter-
gold), the marketing organisa-
tion of the South African Cham-
ber of Mines, has been forced to
promote gold itself.

Intergold officials do not
mind which coin investors buy.
In the end gold is being sold.

The marketing organization is
successfully promoting gold use
in the jewellery industry by fol-
lowing and advising on fashion
trends. Gold sources also say
that Intergold is advising coin
producers such as Australia on
how to promote their product.

Imports of the Krugerrand
are banned in the United States.,
Britain, Scandanavia and sever-
al other countries. In Japan, the
government has told dealers un-
officially to stop buying the
coin. It is believed that Hong
Kong will shortly follow the UK:
and ban New Krugerrand im-{
ports from South Africa.

Last month the South African:
mint announced that it would
issue a limited edition of the
Proteus. ‘Imports of the collec-
tors’ coin, commemorating the

80

. discovery of gold near Johan--
nesburg 100 years ago, was
banned in Britain almost imme-
diately.

Several coins of other nations
are competing with the Kru-
gerand. The Maple Leaf, a one-
ounce Canadian gold coin, has
ousted the Krugerrand as mar-
ket leader.

Australia and the United
States Treasury will soon be dis-
tributing gold coins in a de-
pressed and highly competitive
world gold market.

“The whole coin market has
been shrinking, ” says an annual
gold report of Consolidated Gold
Fields. It estimates worldwide
minting shrank by 63 percent to
3,47 million ounces last year
from the peak year in 1979.

Sales slump

The trend has worsened in the
past two years.

Krugerrand sales slumped to
786 000 ounces last year from
2,6 million ounces in 1984 and
6 million ounces at its peak in
1978, estimates Anglo American
Corporation. Consolidated Gold
Fields contends that sales in
1985 were even worse.

Intergold refuses to release
latest returns, but bullion
dealers reckon sales this year.
have slumped further.

Capitalising on the Kruger-
rand’s demise, Australia intends



/9317

minting the Nugget, a coin rang--
ing in size from a tenth to one
ounce of fine gold.

“We begin production in
July,” says an Australian offi-
cial. “Proof coins mainly for
Australians will be sold in Sep-
tember, he says, but mass inter-
national sales will begin next
January.

The Australians will play on
nostalgia and patriotism in their
sales campaign, say dealers.
One side of the coin will depict
“Welcome Stranger” (a famous
2284 ounce nugget found in
Western Australia in 1869) and
the other Queen Elizabeth 11.

The Australians indicate that
they will be minting about
350000 ounces a year, but they
will find the competition tough.

At the beginning of October
the US Treasury begins selling
Eagle gold coins, ranging from
a tenth.to an ounce of gold.

The Eagle is likely to be mar-
keted aggressively in interna-
tional markets, say bullion
dealers, and will capture a large
slice of the American market.

Murray Church, spokesman of
the Royal Canadian Mint that

cso: 3400/164

81

sells the Maple, says that the
new coins could put sales of the
Maple Leaf at risk. But he also
says advertising and promotion-
al campaigns are “good news”.
They will help expand the mar-
ket for all gold coins.

Mr Church says annual sales
are around 1,9 million ounces
from around 1 million in 1984.

The Krugerrand is still ac-
tively traded, says a West Ger-
man bullion manager. Some
44 million coins are in circula-
tion. The Krugerrand’s share is
40 to 50 percent of total coin
dealings around the world, he
says.

Coin dealers say however that
when sales boomed, the price of
Krugerrands were at a premi-
um of 5 percent to 7 percent
over gold quotes. Earlier this
year, the coins were at a small
discount of under one percent to
the gold price. They are cur-
rently trading at par with gold
bullion, against the Maple Leaf’s
3 percent premium. .

“Our marketing efforts over
the years demonstrated the po-
tential for mass market coin
sales,” says Mark Collier of In-
tergold’s London office.



/13104
cso:

3400/238

We believe in the prosperous future of
Africa thanks to the awakening crisis we face.
In recent years our Jeaders have had to take
some commendable decisions to strengthen
inter-Africa co-operation in the fields of trade,
commerce and economic development in gen-
eral, Organisations like SADCC, PTA and the
West African Economic Community are con-
crete examples of Africa’s resolve to help
herself with or without foreign assistance.

Africa’ has been exploited and humiliated
for yoo long and no foreigner will get her ont
of that situation.

23



5ERS*Ssa-86
9 July 1996

08]

SOUTH AFRICA

HOPES OF FINDING SECOND WITWATERSRAND BASIN DISCUSSED

Johannesburg THE STAR in English 24 Jun 86 p 12

[Article by Jaap Boekkooi]

[Text]

It all started with a monstrous
cauldron, bubbling and sending up
steamy sulphur clouds in an area
aptly centred on what is today
known as Warmbaths.

There, out of the deep earth,
welled up a treasury of elements
into the Hubble pot, among them
gold, silver and toxic mercury.

From the north the hot streams
cooled down as they flowed via
many-tongued estuaries into a
shallow inland sea some
2.800 million years ago. :

The sea amid the desolate
moon landscape was probably
sterile, but for the first primitive
algae; and the gold, silver and
mercury settled down in estuary
streams which resembled the
fingers of an unearthly giant.
hand. :

Discovered

There are at least six hands and
new “fingers” (riverbeds of rich

gold sediments) are still being .

discovered — as was the case in
part of ERPM at Boksburg
recently.

That largest of the world’s
gold-bearing seas filled up amid
primeval silence during some
300 million years in the
Pre-Cambrian period, some one
hundred times as long as man has
existed on earth. °

91

* Then cataclysmic events took
place. The earth began to rock
and smoke; lava flowed. Layers
thousands of metres thick spewed
‘over that forlorn inland sea. The

''Earth’s crust melted and cooled

repeatedly; expanded and
contracted. ‘The Jold sediment
reefs bent and broke up,
sometimes turning upside down.
It was only a century ago this
year that one of the reefs, poking
its conglomerate derriere out of
the old lava bed at Langlaagte,
Was excavated during the building
of the. widow Oosthuizen’s farm-
rotten
man came to know at last
about that vast inland sea, buried
in a prehistoric holocaust

_..25 million centuries ago.

“It was a unique sea of tran-

:. quillity, totally unusual in our

world, for it is still a complete
mystery why the deposits were
so rich. North and north-west

. of it, where the. Bushveld is

today, there must have been a
treasure house of gold,” says
one expert who has made a

“lifelong study of that sterile

inland sea.

This, then, is the great golden
Witwatersrand, the buried and
lava-blanketed sea stretching
hundreds of leagues across, with
powdery gold lining its six vast
northern estuary beaches.



19986

International Campaigns To Deal Heavy Blow to Krugerrand
(Neil Behrmann; THE STAR, 26 Jun 86) ..ecccececsceeecececes

Precious Metals Export.Earnings Seen Boosted by Sanctions
(FINANCIAL MAIL, 27 Jun 86) cscceccecceccercccccccccccnrecs

Profits Show Palamin as Highly Efficient Copper Producer
(Christopher Marchand; FINANCIAL MAIL, 27 Jun 86) cccseecee

Metal, Engineering Firms Table New Wages Offer
(Claire Pickard-Cambridge; BUSINESS DAY, "30 Jun 86) ...veee

Gold Mining Employment, Sets New Record .
(Madden Cole; THE CITIZEN, 25 Jun 86) .csececssccecvccecces

Coins Ban Will Not Affect Gold Consumption

(Mervyn Harris; BUSINESS DAY, 1 Jul >

Transvaal Facing Critical Water, Grazing Shortage
(THE CITIZEN, 5 Jun 86) sscicccccccecccvccccenceccees

Hopes of Finding Second Witwatersrand Basin Discussed
(Jaap Boekkooi; THE STAR, 24 Jun 86) ..scecessseceees

Brighter Prospects for Sugar Farmers
(THE STAR, 26 Jun 86) ..esseses

Eastern Cape Industry Urged To Show More Initiative in Oil Sector
(Denise Boutall; WEEKEND POST, 28 Jun 86) .. -

Companies Warn Strikes Threaten Drug Production
(Claire Pickard-Cambridge; BUSINESS DAY, 2 Jul 86) ........

Briefs
3% GDP Hopes Fade
Johannesburg Budget Said Unrealistic
Local Exporters Face Hostile Attitude
New Car Sales Promising
BER Survey on Manufacturing
Employment for Soldiers
Business Confidence Up
Pretoria Opens CBD
Cape Housing Project
Southern Cape Drought
Exports Up to Antiapartheid Countries
Precious Metal Smuggling Operation
Neighborly Water Agreement
Home Building Figures .
West Transvaal Water Drying Out

80
82
84
86
37
88
90
91

93


Job Reservation Restructuring Along Citizenship Lines Revealed
(THE NEW NATION, 19 Jun-2 Jul 86) Seen teen eee eereeeeeeecens

University of Pretoria ISS Figures Reveal Cost of Unrest
(THE NEW NATION, 19 Jun-2 Jul 86) Peete nec e eee cess een ceees

Briefs
Clowu Battles GWU Control
Central Pretoria Development Plan
SACC on Exiles

ECONOMIC

Finance Minister Comments on Tax Changes
(SAPA, 25 Jun 86) Tete eee eee eer eee eerereneeeecaseeeeere

Armscor General Manager Discusses Sanctions
(THE STAR, 24 Jun 86) Stee e eect tence ence een eeeenceneeneee

Experts Say Economy Facing ‘Confidence Crisis!
(Daan de Kock; THE CITIZEN, 26 Jun 86) ......ccccececececes

Thousands of Jobs Cut in Major Sectors
(THE STAR, 27 Jun 86; BUSINESS DAY, 2 Jul 86) ......ce cece

Statistics Reveal 10-Year Decline, by Sheryl Raine
Construction Manufacturing Worse Hit, by Gerald Reilly

Battle Raging Among Economic Policymakers Over Controls
(Gerald Prosalendis; BUSINESS DAY, 30 Jun 86) ....eesseeeee

Building Societies Concerned With Black Home Financing
(Arnold Van Huyssteen; BUSINESS DAY, 20 Jun 86) ........00.

Johannesburg Building Slumps 64 Percent
(Frank Jeans; THE STAR, 24 Jun 86) ..ecceccecevecceccuceecs

Business Plans To Cut Housing Backlog
(Thelma Tuch; BUSINESS DAY, 1 Jul 86) .....c eee eee ee eee eeee

Barclay's Bank Manager Discusses Future of Blacks in Top Posts
(Peter Wallington; BUSINESS DAY, 25 Jun 86) ....eececeecees

Firms Re-Examining Security After Bomb Blasts
(fichael Chester; THE STAR, 26 Jun 86) ..

Outgoing Chamber of Mines Head Views Reform, Economy
(SAPA, 24 Jun 86) eee e cece eee e cease

Mining Production Declines 6.3 Percent
(Mick Collins; BUSINESS DAY, 24 Jun 86) ...,

-~d-

57

59

60

60

62

64

65

67

67

68

69

71

72

73

75

76

77°

79



MUSEVENI SAYS KENYA TO PERMIT ACCESS TO PORT
Paris THE INDIAN OCEAN NEWSLETTER in English 21 Jun 86 p 2

[Text] Ugandan President Yoweri Museveni, after his first official visit to
Kenya since coming to power, said on June 17 that the Kenyan government will
allow Ugandan trains carrying coffee for export to cross through Kenya to

Mombasa for the first time since 1977, when the EAst African Community broke

up.

The agreement should enable Uganda to save $12.8 million a year, Mr Museveni
said on the return from a one-day trip to Nairobi. Transporting a tonne of
coffee by road to Mombasa costs $116 dollars, against $52 for transport by

rail, he said,

1.0.N,--This decision highlights the good relationship between Daniel arap Moi
and Mr Museveni, whose Marxist tendencies roused concern in Nairobi as recently
as last autum, when he attended peace negotiations in Kenya between rival
Ugandan factions, Since that time, however, Mr Museveni has made a number of
undertakings both to western countries, who have given him moral support, and

to his powerful neighbour,

The decision to allow Ugandan trains to pass through the country-will nonethe-
less have a negative impact on Kenyan hauliers who made  eizeable profits out
of transporting Ugandan coffee to Mombasa. Overall, the current downward re-
vision of the overvalued Ugandan and Tanzanian currencies against the Kenyan
shilling should progressively stimulate trade between the former members of

the East African Community.

19274
CsO: 3400/197

12

JPRS“SSA+86«081
29 July 1986

UGANDA



APPEAL OF EAST, WEST TO COUNTRIES OF REGION COMPARED

Johannesburg BUSINESS DAY in English 2 Jun 86 p 6

[Article by Simon Barber]

[Text]

Street Journal recently:

“If the communist party is
now appealing to some people, it
is because the white people of the
world, including the US, have
never been keen to help us. The
West simply washed its hands of
us while the socialist countries of °
the world have always supported
us.”

No doubt this will be used by
some in an I-told-you-so way ‘to
infer — quite wrongly — that the
good doctor has dangerous lean-
ings. In fact, looking at Africa as a
whole, and not just at the disen-
franchised majority in SA, Mot-
lana is exactly right. The East bloc
delivers what its beneficiaries
want; the West does not.

Consider the special UN General
Assembly session on Africa’s eco-
nomic crisis that began last Mon-
day with the primary purpose of
extracting from the developed
(non-communist) world an extra
$8 000m-$10 000m in aid and debt
relief over the next five. years.

Much of this money will likely
be forthcoming but with strings
which most of the recipient re-
gimes, though they are being very.
polite and deferential right now,
find utterly repugnant. Be still my
heart, they are being asked to be-
come, gulp, democratic. :

Secretary of State George Shultz

x NTHATO MOTLANA had
this to say to the Wall

©

told the assembled foreign minis-
ters: “The resolution of Africa’s
economic crisis lies in the liber-
ation of its people from policies

that have stifled innovation and’
-have led the nations of the conti-

nent into their present troubles . . .
successful development in any
nation — in Africa ‘as’ anywhere
else — lies most fundamentally in
the expansion of human opportun-
sity.”

Diereeas the parastatals, un-
leash the private sector, end price
controls, pay farmers a fair mar-
ket price for their produce, stamp
out corruption, Shultz was in effect

saying, and we will help you. Oth- -

erwise we will be wasting our
time.

He might as well have been ask-
ing half the assembled dignitaries
to commit suicide.

- The Soviet representative, Dep--

‘uty Foreign Minister Yuli Voront-
sov, was far more understanding.
_ “The colonialists of yesteryear,” he
roclaimed, “would like to use
loans and credits in order to make

-African states bargain away their ©

political independence which they
have won in a tough battle against
imperialism.

“The so-called contribution of
imperialism, and first of all US
imperialism, to African affairs is

INTER-AFRICAN AFFAIRS

; not confined to economic diktat,”
* Vorontsov went on to.remind his

audience. “It manifests itself in
acts of aggression, armed interfer-
ence in the internal affairs of sov-
ereign states ...”

In other words, gentlemen, these
evil donors are trying to under-
mine you with their artful kind-
nesses, but do not be deceived,
their true objective is your over-
throw, so what you really need is
us and our guns to protect you.

It is no mystery why virtually
all African countries have adopted
if not Marxist, then socialist
models. The answer is one word:
power.

Centralised, monolithic, unshake-
able and, of course, legitimate in
the eyes'of Western intellectuals.
As far as the latter are concerned,
less scientific forms $f despotism,
such as those practiced by Pretor-
ia or Zaire’s President Mobutu,
simply will not do.

Now the leaders of post-colonial
‘Africa cannot be blamed for their
dirigiste tendencies. Democracy
has only worked in countries
whose societies are broadly edu-
cated and nourished and have a
basic sense. of nationhood, and
where, perhaps most important of
all, political losers can be confi-
dent that they will (literally) live to
fight another day.

Such happy circumstances do
not obtain in most of Africa.



NEIGHBORLY WATER AGREEMENT--South Africa and three of its neighbouring
governments--Botswana, Mozambique and Zimbabwe--have managed to sink

their differences and surmount strained relationships for the greater
good of all four countries in at least one field--water. The Department
of Water Affairs announced in Pretoria yesterday that a joint technical
committee to be known as the Limpopo Basin Permanent Technical Committee,-
had been established between the four states to oversee the natural
boundary between the states. The agreement was signed in Harare. A
spokesman for the department said in’Pretoria that as the Limpopo was

the boundary to these states, the main function of the committee would

be to advise the respective governments on matters concerning the Limpopo
River basin. Such matters included measures to alleviate short-term water
shortages in the basin during a drought; taking into account the existing
amount of stored water; and water requirements in each country as well as
short-term problems on pollution in the basin. The committee would also
advise on the division of flows in the basin, as well as procedures,
programming, operations, maintenance measurement of and abstraction of
water, curtailing of abstraction and supervision of any mutual agreements.
[Text] [Johannesburg THE CITIZEN in English’ 26 Jun 86 p 12] /9317

HOME BUILDING FIGURES--Increasing numbers of South Africans are building
their own homes--but on average they appear to be doing so more cheaply.
Figures released by Central Statistical Services in Pretoria show an
increase in the number of building society bonds approved for the construc—
tion of new houses--from 1 502 between December 1984 and February 1986 to

2 343 in the same months of 1985/86. However, the size of the average bond
decreased from just over R50 475 to R47 900 when the two periods were
compared. Building societies, which have been relatively flush with cash
recently, forked out a total of R112,2 million for bonds granted between
December last year and February this year. This figure was well up on that
for December to February 1984-85, when bonds allocated were worth R75,8
million, More people also bought existing houses and flats--10 648 between
December 1985 and February 1986, as opposed to 7 848 in the corresponding
period the previous year, The size of the average bond here has risen from
R45 747 to R48 782. Among whites, the single largest number of mortgages
fell into the R50 000 to R60 000 category, whereas among Asians the largest
single number of bonds were worth between R30 000 and R40 000. [Text]
[Johannesburg THE STAR in English 26 Jun 86 p 11] /9317

WEST TRANSVAAL WATER DRYING OUT--Groundwater in Western Transvaal's vital
Grootfontein dolomitic compartment will be depleted in five years if the
present pumping rate continues without recharge. This warning is contained
in a report by the Water Research Commission (WRC). The Grootfontein
compartment provides about 8 million cubic metres of water a year. Senior
WRC adviser Dr Peter Roberts said it was one of South Africa's most highly
utilised dolomite aquifers, It provided Mafikeng and Mmabatho's water
supplies as well as water for farm irrigation. He said: "More than 15 mil-
lion cubic metres of water were withdrawn from the compartment in the period
from July 1983 until the end of June 1984. "Of this, seven million cubic
metres were pumped to Mafikeng and Mmabatho from the Grootfontein Eye,

while the balance was used by farmers." Dr Roberts said it was calculated
that during June 1984 there had been about 124 million cubic metres of
groundwater in the compartment. "Assuming only 66 percent of an aquifer can
be economically dewatered, it means the Grootfontein compartment will only
be able to meet the present demand of 15 million cubic metres for about five
more years without any recharge." Dr Roberts said according to available
data, the average annual recharge of the aquifer was about eight percent of
annual rainfall. He added: "With a mean annual rainfall of 560 mm, the

100



BRIGHTER PROSPECTS FOR SUGAR FARMERS

yprseSsAr86-081
29 July 1986

SOUTH AFRICA

Johannesburg THE STAR (Business) in English 26 Jun 86 p 16

[Text]

DURBAN — The sugar industry
now faces brighter prospects
after a disappointing 1985/6 sea-
son, Mr Frank Jones, retiring

chairman of the SA Sugar Min

ers Association, said.

Mr Jones said at the associa

tion's annual meeting that first
signs were evident of the long-
awaited recovery in the world
price of sugar — and the cur-
rent season’s prospects for the
industry were better than in
previous years.

The quotation for October
sugar currently stands at a
more healthy £156 a ton and, for
the first time in five years, con-
sumption is expected to exceed
production. The excess will be a
sizeable margin owing to pro-
duction cut-backs in several
countries.

As a résult the local sugar in-
dustry expects to earn some re-
turn on capital from its exports
this year — despite continuing
inflation.

Mr Jones said the 1985/6 sea-
son had been disappointing in
many respects. Total production
of 2,11 million tons of sugar had

19317
CSO: 3400/164

been well below early estimates
and a quarter of a million tons
below the previous year’s out-

put.

He attributed the fall to
drought conditions (especially in
Zululand and on the North
Coast) and eldana infestation.
The eldana problem could again
affect the crop in the current
season. .

Although the

1985/6 cane

crop of nearly

19 million tons

of cane was 19

percent down

on the previ-

ous year, the

industry ob-

tained an

above-average

sucrose con

tent. Coupled with low fibre, this
gave a good cane-to-sugar ratio
of 8,8 percent for the season.

The mills set an overall ex-
traction record but boiling
house recoveries had fallen
owing to lower juice purities.
Operating efficiencies reached a
peak and, overall, the industry

93

had received good reports on its
efficiency and productivity
gains.

On the domestic market, re-
cession, unemployment and boy-
cotts had pushed sales margin-
ally below those of the previous
year. However, sales of 1,23 mil-
jion had exceeded estimates. ,

The past season's biggest dis-
appointment was the world
price of sugar which reached a
record low (in real terms) of £82
per ton.

Export earnings were low.
Despite the higher domestic
price, total proceeds from the
sale of all sugar and molasses
improved only 4,4 percent to
R1 062 billion. ~

Industry "requirements, by
contrast, amounted to
R1 279 billion (Ri 145 billion for
the A pool and R134 million for
the B pool).

The resulting R217 million
deficit had to be absorbed by
millers and growers — the lar
gest ever experienced.

This was the third successive
season in which the industry had
failed to earn any return on cap-
ital.



JPRS*SSA+86+081
29 July 1986

SOUTH AFRICA

BRIEFS

3% GDP HOPES FADE--llopes of the economy achieving the targeted 3% real growth
rate in the gross domestic product (GDP) this year appear to be remoted. The
Keserve Bank's QUARTERLY BULLETIN June issue said the "Moderate" increase in
GbP in the second part of 1985 petered out and, with a few exceptions, the
economy showed real declines in most major productive sectors this year. It
said there was a decline of 2% in GDP in the first quarter. The BULLETIN's
statistical tables on GDP suggested the decline was only 0.8% but other
statistics reflected a worrying flaccidity in the economy. The probabilities
are that the decline in real GDP gathered pace in the second quarter and a
turn-around in the second half of the year of a magnitude which could

produce the 3% growth is improbable. To achieve that, the growth rate would
have to build up to about 6% which would appear to be out of reach now.

Real private consumption spending declined by 2,5% in the first quarter.

‘the BULLETIN said: “Consumer surveys during the first quarter found a lack

of confidence about future income rises. The erosion of personal incomes by
an exceptionally high rate of inflation, as well as by fiscal drag, contributed
to the decline in consumer spending." keal fixed investment continued to de-
cline. Cutbacks in investment by state corporations were related to surplus
capacity and the exclusion of SA from foreign capital and credit markets.

Apart from mining, capital outlays in all major areas of the private sector
continued to decline. Salary and wage increases were below the inflation rate
while registered unemployment, seasonally adjusted, rose from 79,700 in January
1985 to 137,700 in January 1986, Bank advances were virtually static. Measured
in terms of the inflation rate, they declined. [Text] [By Harold Fridjhon]
[Johannesburg BUSINESS DAY in English 23 Jun 86 p 3] /9274

JOUANNESBURG BUDGET SAID UNREALISTIC--The record k1,185m Johannesburg City
Council budget announced yesterday was unrealistic and out of step with gov-
ernment's new sinulatory financial package, council opposition leader Sam Moss
said yesterday. He said it would place an unnecessary burden on the consumer.
Approximate increases. effective from July 1, are 12.9%--increased from 2.8c
a rand to 3.16c/R--in the assessment rates, 15% in the water rates, 12.5% in
electricity rates, 15% domestic gas, 18% other pas, 13% on bus tickets and 15%
in building plans, effective from August 1. The budget is expected to increase
the average householder's bill by 12.4% or about 12.19. Domestic properties
will continue to receive a 55% rate rebate and flats and sectional title prop-
erties will continue to receive the present 14% rebate. Management committee
chairman Francois Oberholzer said despite the increases, a R634,000 deficit
would be expected by June 1987. [Text] [By Dianna Games] [Johannesburg
BUSINESS DAY in English 19 Jun 86. p3] /9274

96



/13104
cso:

3400/238

fidence of capitalist buy-
erg ig harmful to them.

‘There should be inter-
non-aligned trade and co-
operation, concerted joint
planning of projects and
Joint efforts on the formu-
lation of common ; av-
proaches to issues like
debt negotiations.

18



300167
JPRS-SSA-86-081
29 JULY 1986

Sub-Saharan Africa Report

“DISTRIBUTION STATEMENT 3

Approved for pubile telecon,
Distribution Unlimited {

[DTIC QUaucry voraUTED 3

REPRODUCED BY I

U.S. DEPARTMENT OF COMMERCE | ee
i NATIONAL TECHNICAL on . / $
| INFORMATION SERVICE he :

SPRINGFIELD, VA. 22161 ee ie oy

Age



JPRS*SSA*86*081
29 July 1986

LOCAL EXPORTERS FACE HOSTILE ATTITUDE--Local exporters face a more openly
hostile attitude towards SA as a result of recent political events in the
country, which, up to now, have been highlighted by extensive overseas media
coverage. "This means that more than ever before, SA export cargoes are exposed
to seizure or confiscation by foreign governments," said PFV Credit Insurance
Brokers director Carlos da Costa. While Credit Guarantee Insurance was the
natural choice for covering local exporters’ commercial and political risks,

Da Costa added it did not cover exports to boycotting countries. “Although
underwriters are becoming more and more circumspect about increasing their
explosure to SA-related trading risks, we can still obtain confiscation

cover from some insurance markets." Some examples of potential risks facing
exporters include: --A ship béing forced to make an unscheduled stop at a
hostile port. If the authorities found the cargo was South African,! they: would
probably confiscate the goods, said Da Costa. -~An importing agent in a boy-
cotting country could tip off the port authorities on the SA connection of a
shipment. The goods might then be confiscated and the agent could then pur-
chase these on a "sale" for a fraction of their original value. {Text] [By
Lesley Lambert] [Johannesburg BUSINESS DAY in' English 19 Jun 86 p 2] /9274

: .
NEW CAR SALES PROMISING--New car sales last month are expected to rise by
between 10% and 14% - to about 15 000 units — compared with the previous
month, says the National Association of Automobile Manufacturers of SA
(Naamsa). Commercial vehicle sales should rise by 12% to 6 800 units. Naamsa
director Nico Vermeulen said yesterday government's fiscal measures to
te-activate the economy - including perks tax relief - favourably affected
last month's sales. This improvement comes after May car sales slumped to a
1986 low of 13 754 units, prompting renewed - industry calls for a comprehensive
rescue package. Naamsa director Nico Vermeulen said commercial vehicle sales
should improve by 12% to 6 800 units in June. [Text] {Johannesburg BUSINESS
DAY in English 2 Jul 86 p 1] /13104

BER SURVEY ON MANUFACTURING--First signs of a levelling out in manufacturing
activity are beginning to emerge, says Stellenbosch University's Bureau for
Economic Research (BER). However, it warns that any long-term recovery will
be limited by an “alarming” 46,3% fall in manufacturing fixed investment and
suggests the public sector should take a bigger stake. The BER's latest
Manufacturing Survey says that while signs exist of slightly improved
conditions, recent falls in the rand have further dampened the mood among
manufacturers, and “no significant improvements have yet materialised". Real
activity in the manufacturing sector began improving in the first three months
of the year, relative to the corresponding 1985 period. After a 5,5%
year-on-year decline in production volume in 1985, production in the first
quarter of 1986 rose 2,3%, compared with January-March 1985. This improvement
is likely to continue in the second and third quarters, based on
manufacturers’ expectations of sales and orders. The improvements - many
export-related - are so small, however, they are unlikely to have a major
impact on production capacity utilisation. “Survey results suggest that
utilisation was still at a low level during the first quarter of 1986. Only a
slight improvement might have materialised in the second quarter of 1986."
{Text] [Johannesburg BUSINESS DAY in English 2 Jul 86 p 1) [Article by
David Furlonger] /13104

97



JPRS«SSA*86*081
29 July 1986

SOUTH AFRICA

JOB RESERVATION RESTRUCTURING ALONG CITIZENSHIP LINES REVEALED

Johannesburg THE NEW NATION in English 19 Jun-2 Jul 86 p 15

[Text]

ATTEMPTS to scrap
job reservation on mines
as taken a new turn.
Yet another
dimension to the thorn:
problem of racia
exclusivity in certain
jobs has come to the
fore -- that is reserving
jobs along citizenship
rather than racial lines.
There is growing
speculation that the
government has pro-
posed amendments to
racial legislation, which
currently reserves jobs
for whites on mines,
along “citizenship” lines.
Although the right
wing Mine Workers
Union (MWU) will
neither confirm nor
deny the restructuring of
the legislation alon;
citizenship lines, it
cautions that such a
proposal should not be
viewed out of context.
This distorted its
‘intended function in any
amended legislation.
Responding to the
question of selective
citizenship in issuing
blasting certificates
Mineral and Energy
Affairs spokesperson

said there were more

important issues at the
centre of the job
reservation debate.

It is expected that
only 15 percent of the
black labour force on
SA mines will be
eligible for blastin
certificates in terms o}
the amended scheduled

ersons clause in the

lines and Works Act.

The 15 .percent
calculation is based on
the Conservative Patty
(CP) definition of S
citizenship.

The remaining 85
percent, made up of
migrants in terms of
apartheid legislation,
regarded as "guest
workers" in right win;
circles, could be barre
from jobs traditionally
reserved for white
miners. «

., But not if the CP has
its way. One of its MP's
points out that by givin,
certificates to only 1
percent of the workers
coming from "our black
population" the
government will
encourage friction
between them and their
colleagues.

It should therefore
retain current legislation.
which makes it criminal
for blacks to perform
underground blasting
‘operations.

57

Blasting certificates
for only 15 percent of the
black workforce will suit
white miners mainly
because the threat to
their jobs will be
reduced to a minimum.

This is in line with the
MWU demands that it
have a greater say in
ensuring management
does not overtrain and
flood the skilled job
market thus reducing the
white miner's bargaining
strength.

Division of the black
workforce through job
categorisation will suit
those mine bosses who
have opted to divide
union membership and
smash structures
necessary for successful
worker struggles.

But the right wing is
not satisfied with half
measures. For "fear of
causing friction"
between certificate-
holding black miners
and migrants, the
government, should
retain legislation as it is,
they argue.

Its attitude is summed
up in another comment:
“What does the
government of this
country owe them
(migrant workers) that it



strictions and urging him
to fight them instead.

The regulations an-
nounced last year ban at-
tending church services
before five o'clock in the
evening on weekdays and
limit the holding of relig-
ious ceremonies to ap-
proved place:

Restrictions

The government says
the restrictions are not
aimed at the church as
such. They were intended
to “allow us Burundians
to work carefree ... And
to increase production
too,” Kasatza said.

“There are no problems

13104
cso: 3400/239

between the (Catholic)
bishops and the govern-
ment. They accept the
policy totally.”

_The restrictions on
worship applied to the
country’s tiny Moslem
minority -as well as to
Christians and bars were
also banned from opening
before five o'clock to pre-
vent idleness, he added.

About 65 per cent of
Burundians are Catholics
and most of the rest are
protestants or animists.

A senior Burundian
Catholic priest said he did
not believe the govern-
ment wished to persecute

the church and that both
sides wanted to reach an
amicable solution.

“We have not seen any
sign that the government
wants to suppress the
church. We are confident
that there is no anti-
church tendency in this
country,” said the priest,
who spoke on condition
that he was not identified.

“Both the church and
the government have ex-
pressed their wish to re-
solve the problems be-

tween us. They cannot be
solved overnight but I be-
lieve they can be solved,”
he added. Reuter



WORSHIP IN WORK TIME BANNED TO CURB CHURCH INFLUENCE

Blantyre DAILY TIMES in English 10 Jun 86 pg

[Article by Michael Rank]

[Text]

PRESIDENT Jean-Bap-
tiste Bagaza has banned
tcligious worship in work-
ing hours in Burundi in
what western diplomats
say is part of a campaign
to limit the influence of
the church.

But although 130 mis-
sionaries were forced to
leave the country last year
because their visas had
not been renewed and
about 45 more were re-
fused entry to the coun-
try, the government stop-
ped short of opening a full
scale vendetta against the
church, they said.

Interior minister Lieute-
nent-Colone! Charles Ka-
satza denied the restric-
tions had caused severe
church-state friction. “We
have never had any idea
of preventing or restrict-
ing religious activities,”
he told Reuters.

Bagaza, a progressive,
pragmatic leader who
seized power in a coup in
1976, did not want to sup-
press the Roman Catholic
Church and other denom-
inations completely, the
diplomats said.

But he considered the
church to be a threat, par-
tly because of its close ties
with the Belgian coloni-

alists vefore indepen-
dence in 1962.

“Bagaza and most of
the government consist of
able, modernising techno-
crats rather than marxist
atheists.

“They are not carrying
out a wholesale vendetta
against the church but
they want it kept in its
place as they see it histori-
cally as a rival, and a con-
servative one at that,”
said one western diplo-
mat.

Western diplomats say
the problem is indirectly
linked to Burundi’s ethnic
divide. which culminated
in the massacre of 200,000
people in 1972.

Burundi has long been
dominated by the rela-

‘tively well educated Tutsi

tribe who make up only
about 15 per cent of the
4.7. million population.
The Hutu majority have
traditionally been subser-
vient.

. Underdog

Bagaza and his”close
advisers are all Tutsis but
they have worked hard to
achieve national reconcili-
ation, according to the
diplomats.

A western dipiomat
who asked not to be iden-

JPRS*SSA*8608)
29 July 1986

BURUNDI

tified said the church was
seen as a threat because it
tended to sympathise with
the underdog. |

“The church has a natu-
ral mission to help those
most in need, and in this
country that generally
means Hutus. Although
the presence of mission-
aries here does not in it-
self legitimate the distinc-
tion between Hutus and
Tutsis, it does tend to
keep it alive, he added.

le said the departure
of the missionaries could
have a serious effect on
schools and health ser-
vices.

Although both church
and government officials
play down the seriousness
of the latest crackdown on
worship, there is consider-
able resentment at least
among some Catholics.
~ Four laymen and an el-
derly Jesuit university lec-
turer, Father Gabriel Bar-
akana, were jailed last
December for stirring up
opposition to the curbs.

Barakana was im-
prisoned for four years for
approving an anonymous
letter to the bishop of Bu-
jumbura, Michel Ntuya-

aga, accusing him of ca-
pitulating to the
government over the re-



/13104
cso:

3400/241

commercial hanks, to fetter the foreign
exchange market in an attempt to sup-
port the rand.

“It was paradoxical some banks
should have been involved in this effort.
‘The document was an open invitation for
bureaucrats to descend on the banks and
inspect their books,” says one senior
banker.

But De Kock said last week: “They
(direct controllers) present statistical
series to indicate SA’s growth perform-
ance has been substantially weaker since
the mid-Seventies than in the Sixties,
that the rate of inflation increased and
the rand depreciated.

“And they then imply because this hap-
pened after government made more use
of market-orientated policy, the events
occurred because this market-orientated
policy was adopted.

“A further implication is that had we
relied instead on direct bureaucratic
control measures, these unfavourable
developments would either not have tak-
en place or not to the same-éxtent.”

Says another source: “People who tell
government direct controls will solve
our problems are giving unsound advice.
And this leads people in power not to find
urgent solutions for our political and so-
cial problems. .

“This siren call is attractive, but it is
dangerous and could lead the country
‘onto the rocks.”

70



/12828
cso:

3400/83

does internally is its own business”,
constructive engagement would have’ had
rigor mortis by now.

What is puzzling is that the South African
Government is getting aggressive with the
US in: private despatches. Had it attacked
Reagan officials in public, this would have
been understandable in terms of the Botha
Government’s domestic political needs.

The US is one of South Africa’s best
friends. It is not walking away during a time
of difficulty but is trying to be helpful. It is
holding international sanctions at bay as best
it can.

In return for this, Reagan officials” are
being castigated in the US as racist and
stupid, and attacked abroad as fascist. When
thousands demonstrate against apartheid in
the US, their target is also the Reagan
Administration. .

This must be distressing to a President
whose dream it has been, to bring his fellow
Americans together. :

To a large extent, President Reagan has
succeeded in uniting America, but on the
issue of South Africa he is- increasingly
isolated. ;

Thus he will ‘continue to slam South
Africa’s race policies and Pretoria’s
attempts to mute that criticism will fail,

37



JPRS“SSA+86~081
29 July 1986

SOUTH AFRICA

EASTERN CAPE INDUSTRY URGED TO SHOW MORE INITIATIVE IN OIL SECTOR

Port Elizabeth WEEKEND POST in English 28 Jun 86 pl

’ [Article by Denise Boutall]
[Text]

INDUSTRY in the Eastern Cape is
in danger of losing out on the
Mossel Bay oil bonanza unless it
acts now, shows more initiative,
and is prepared to spend money

researching the oil business.

This warning was given by Port Elizabeth's Deputy City
Engineer, Mr Angus Fraser, back from a fact-finding
mission to North Sea oil installations.

“J R Ewing is real,” he said. “He symbolises the tireless,
ruthless and determined individuals who survive and pros-
per in the oil business.

“It's the dynamic people who are prepared to get in-
volved, to take risks and to adapt to a new industry that
survive to share in the substantial profits to be made from
the oj] business,” he said in an interview yesterday.

“Unless Port Elizabeth companies find out now what
will be needed of them to pursue the contracts, and‘act
now, they will lose out. It will doubtless mean major
modifications of plant and they must be ready.”

Fat dividends from South Africa’s east coast gas fields
were not going to drop in the laps of East Cape industrial-
ists, he warned. Port Elizabeth was going to have to get in
and fight for its share of the proceeds. "

The Government’s implied assurance that a major part
of the rig would be assembled in PE was by no means a
guarantee. The oil industry was a fiercely competitive
business and no one risked money on amateurs.

In November, the Minister of Energy Affairs, Mr Danie
Steyn, said the Government would seriously consider hav- '
ing the jacket (underwater support structure) assembled in

c. ¥

But Mr Fraser said this was unlikely because the con-
tract would require the services of a large number: of
welders, and it would probably be built in Durb:

He ded though that. only “Aout 25% of th: we
construction of the platform could be done in South Attica
and that all the land-based facilities available in Cape
Town, PE and Durban would have to be used to do the
work.

/13104

cso: 3400/246

94

Mr Fraser drew a comparison between PE's industries
and the Scottish shipbuilders, who were too slow to capital-
ise on the North Sea oil industry 20 years ago — and have
remained in decline éver since. “The British shipbuilding
industry, based on the Clyde, largely lost out on the con-
struction of the rigs for the North Sea because they had not
prepared themselves to get'the work,” he said. -

He felt Port Elizabeth industries should concentrate
their efforts on getting contracts to build four of the seven
modules that would go on top of the platform. These could
be built on the container quay in the harbour. These

» modules would be more suited to the industries already
established in the city. .

Mr Fraser said his next step would be to report on his
trip to the PE City Council's Policy and Resources Com-
‘mittee and he would recommend that the special commit-
tee dealing with the issue talk to local industry to find out
whether they were prepared to make the necessary invest-
ment.

The idea, said Mr Fraser, was that the council and the
Midland Chamber of Industries would prepare a document
which they would give to major potential contractors on
the Mossel Bay gas installation to point out the advantages
of working in Port Elizabeth.

_ Mr Fraser divided his time between the east and west
coasts of Scotland, meeting people inthe industry as well
as in local government to discuss the problems and
requirements of contractors engaged in the construction of
oil installations.

He said he had also been warned that involvement in the
Mosse] Bay would not necessarily mean a long-term solu-
tion to any region’s problems.

“Tt should be treated as one treats any big contract — as
something worth getting involved in, that one can make
substantial profits out of but that will come to an end.”

The city’s Development Officer, Mr André Crouse, en-
dorsed Mr Fraser’s-concern that industrialists might miss
out.

“He said that at this stage no one should prescribe what
should or should not be built in PE.

“People here should look into the possibility of getting
involved with almost any aspect of the construction.

“Having the jacket built here would be a bit psychologi-
cal boost for the city and would gain very good publicity
for it.”



JPRS*SSA*86*08],
29 July 1986

SOUTH AFRICA

HNP MP SAYS RSA CITIZENSHIP WILL BRING MORE BLACKS
MB232002 Johannesburg SAPA in English 1920 GMT 23 Jun 86

/Text/ House of Assembly, 23 June, SAPA~-Granting South African citizenship
to people from the independent homelands would be a magnet that would attract
blacks to South Africa on a grand scale, Mr Louis Stofberg (HNP /Reformed
National Party/ Sasolburg) said today.

Speaking in the second reading debate on the restoration of South African
citizenship bill, he said that in terms of the legislation 2 million blacks
would become South African citizens "at the flick of a finger."

He asked if the minister of home affairs, Mr Stoffel Botha, had estimated the
cost of such a move.

More money would have to be spent on schools and measures such as security.

The result would be a worsening of the relationship between whites and blacks,
he said.

Many categories of people--including mineworkers who could justify that they
were "permanent" residents in the RSA--would claim citizenship.

Mr Stafberg said the government was trying to remove the frustrations of blacks
by creating new frustrations for whites.

Granting of citizenship should be done at a special ceremony where a person
would feel proud to be a citizen.

"you don't just dish out citizenship to 2 million people," he said.

The government wanted to recreate the Rhodesian situation, where there were so
many blacks that the whites had been forced to capitulate.

He promised that the HNP would undo the government's actions and warned that
the government would have to take full responsibility for "the civil war" that
would result from NP /National Party/ policies.

/12228
csO: 3400/173

25



should give them
blasting certificates?"
asked the CP MP for/
Koedoespoort, F van ;
Staden. {
‘an Staden recently®
urged a speedy solution |
to the trap the |
government finds itself :
In saying “white miners,
who were implacably
opposed to the move,
could not continue in
uncertainty over the
government's inten-
tions".

“Up to now things
have gone very well in
the minin, industry
without this change.
Why should things be
disturbed?

“The government
should continue to
maintain the status quo
and protect white miners
in their own land," the

/13104

cso:

3400/245

58

CP says.

However, the central
issue in the talks
remains the question of
security of employment
for white miners if
legislation protecting
them is removed.

And unless the
Chamber of Mines and
the right wing Mine
Workers Union, led by

- pig farmer Arie Paulus,

agree on an industrial
council structure which
will protect white miners
jobs, little progress will
be ossible.

heuns Burger,
Deputy Director General
of. the Department of
Mineral and Energy
Affairs says, however,
that the amendments
will be legislated during
the second half of this
parliamentary session
which begins in August.



JPRS“SSA-8 60087
29 July 1986

SOUTH AFRICA

HENDRICKSE CRITICIZES PRESIDENT'S COUNCIL'S DECISION
MB231853 Johannesburg SAPA in English 1803 GMT 23 Jun 86

Jfext/ House of Representatives, 23 June, SAPA--The decision by the President's
Council to pass the security bills last week had done more harm than good and
had reflected upon the good intentions of the House, the chairman of the
Minister's Council, Mr Allan Hendrickse said today.

In a statement in the House, he said all members, including the opposition,
were disappointed that their best intentions had resulted in a sense of
disillusionment.

He said the good that had been done by the House had been negated by the passing
of the bills in the President's Council.

"We further believe that in spite of the disheartening situation our presence
and participation is essential as an investment for the good of our country."

The decision had not been a moral one as 159 MPs had voted against the bills
while 146 had supported them.

The leader of the House, Mr Miley Richards (LP [Labor Party/ Toekomsrus) appealed
to the state president to withdraw the bills as a sign of respect towards
Parliament.

The House of Representatives and the House of Delegates had expressed their
honest feelings in rejecting the bills and common courtesy had demanded that
the state president should not have sent it to the President's Council.

"We could have considered rejecting the legislation now being considered by
the House but decided that this would be counterproductive," he said.

/12228
CSO: 3400/173

24



JPRS«Ssange
08
29 July i9e6

SOUTH AFRICA

OUTGOING CHAMBER OF MINES HEAD VIEWS REFORM, ECONOMY |
MB240926 Johannesburg SAPA in English 0853 GMT 24 Jun 86

Ftext/ Johannesburg, 24 June, SAPA--The essential condition for an improved
outlook for the South African economy remained significant political reform
which should be accelerated, particularly in areas where it would have tangible
benefits for black citizens, the outgoing president of the Chamber of Mines,
Mr Clive Knobbs, said today.

"Important progress has alreddy been made in reversing and scrapping some of
the most fundamental elements of the apartheid ideology," Mr Knobbs said, while
delivering his presidential address at the chamber's annual general meeting in
Johannesburg.

"It is a pity that both at home and abroad they have not been more widely recog-
nised as such," he added. "The fashionable description of such changes as
merely cosmetic is quite false."

Perhaps most significant was the fact that the government had firmly committed
itself to negotiating a new dispensation based on power sharing with all South
Africans, an idea that was anathema only a few years ago.

Mr Knobbs said the present state of the South African economy could best be
described as "waiting for the upswing." This had long been expected and fre-
quently predicted but had been extremely dilatory in arriving.

At the beginning of 1986 the prospects of an economic revival had begun to
appear more favourable but "much of the optimism now appears to have been
based on hopes rather than reality."

Mr Knobbs said: "Economoic growth during the first quarter of this year was
negative, it seems likely that it will be so in the second quarter as well,

"Very high growth will therefore be needed in the second half of 1986 if South
Africa wants to achieve a zero growth rate for the year as whole.

"The rate of inflation has continued to be high and is expected to remain so

after the recent depreciation of the exchange rate which remains persistently
under pressure," said Mr Knobbs.

77



ECOWAS EXTERNAL DEBT LIST RELEASED

Lagos BUSINESS TIMES in English 2 Jun 86 pl, 24

[Article by Nduka Nwosu]

[Text]

IHE economic
recovery
package currently
under draft by the

ECOWAS

Secretariat, has put
the sub-region’s.
total external trade,
debts at 26 billion
dollars. about N26
billion with Nigeria
and Ivory Coast
topping the list. :
! Debt servicing alone,
had by 1983 consumed
Kory Coasts 31 per.
cmt export earnings,
18.6 per cent of Nigeria
16.8 per cent and - 34.2
per cent for Togo and,
Ghana respettively. 1
. Transfers made as
repayments of the
pripcipal with regard
to public debts reached
ia 310 milion dollars
pbout 4310 million
peak (1983) in Ivory
Coast while Nigerian,
recorded 107 billion
dollars (about 1.07
billion) interest
payment. Government:
external debt reached .
‘413 million dollars about
413 million) in Ivory
Coast and in Nigeria’
‘the peak stood at 914

19274

cso: 3400/197

milion dollars @bout
914 million)

The interest rate on,
loans took a'long stride of
11 per cent in Nigeria,
10.8 per cent in Ivory
Coast and 8.7 per cent in
Liberia. The repayment
and moratorium perio?
were also short allowing 7.
and 2 years respectively
for Nigeria, 14 and 5 years
for Liberia and 16 and 4.
years for Ivory Coast.

ECOWAS © sources
expressed dismay at the
speed of debt
accumulation which was
attributed as the
onsequence of the
inability of members of;
the community to keep up
to thar debt servicing
obligations while;
maintaining @ reasnable
eqnomic growth rate.

Recovery, in ECOWAS,
crdes, implies among
others the correction of
external balance of trade
and payments through a
‘tructuml correction of
the monetary and
financial - disequiibria.
‘The proposals which the
jcommunity’s ministerial
council will deliberate
upon later this month will
correct these structural.
imbalances through a
study of the short and
fong tern domestk and

extemal “factors of the’
‘economy.

On the domestic
side, the community will
try to ease out
inappropriate macro-
economic policies which,
were only capable of
generating slow growth.
while causing &
deteroriation in the
balance of payments. :

It will try to phase out,
unprofitable investments

which ‘forced some
member countries into
borrowing after

exhausting the capacity
for debt servicing so as to
finance non-productive
‘public investment, whose.
cwerginal impact on the,
economy Ie hardly
appreciabie.
* While the community's.
‘draft proposition reco-
gnices debt echeduling
as ane of the principal
causes of the debt crisis, it .
‘also indi tl
Ministerial . Council of
unfavourable: loan @erms
{such 7 as the
disproprotidnate increase
of short ter. debt! or a
piling up. .of tight
ammortisation schedules
phic only lead to @
jing of repayments
obligations.

” On the external side, the

JPRS*SSA+86~+081
29 July 1986

INTER-AFRICAN AFFAIRS

couincil will try to correct
the diverse external
‘developments which tend
to worsen debt crises.
‘This is more so if interest
rate policy and terms of
trade move to the
backseat. The secretariat
‘in taking any long term
decision takes account of
:ithe rise in the exchange
‘rate of the dollar and the
‘low profile approach to.
the Third World in the
official © development
assistance policy’ of
industrialised nations.

‘With this ‘unhealthy
economic climate
affecting developing
‘countries (LDCS( &
ECOWAS states have
recorded negative terms
‘of trade rates from 6.3 per
‘cent for Benin Republic to
‘1.6 per cent for Mali. It
was also observed that.a
substantial part of
‘external loan has been
linked in recent times to a
floating of the interest
rate of the London inter-

* banking market.

However, these interest
rates would also rise for
reasons not connected
with the situation in the
debtor country such as
Nigeria. where the
economic downturn has
considerably depreciated
the naira exchange.



/13104
cso:

3400/239

of the 1930s," says the report.
But all is not lost. The report gocs.
into several lengthy recommenda-
tions for this ation to be im-
proved. They include a call for
reversal of government preference
for foreign contractors on local con-
tracts, lower wage rates for school
leavers (to encourage increased em-
ployment), and relaxation of rent
controls for the encouragement of

‘private housing developments.

An important recommendation
put forward is a scheme to ease re-
quirements .for the purchase of
housing and bringing mortgage
finance within reach of more, less
well-paid people, to stimulate de-
mand for housing developments.

“Until conditions that hamper
saving, investment and growth are
removed’, the report concludes,
“the potential contribution of ‘the
sector as a provider of services, em-
ployment and tax revenues and as
a spearhead of physical develop-
ment and progress will remain un-
fulfilled”. :

15



JPRS“SSA*86+081
29 July 1986

SOUTH AFRICA

COMPANIES WARN STRIKES THREATEN DRUG PRODUCTION

Johannesburg BUSINESS DAY in English 2 July 86 pp 1, 2

[Article by Claire Pickard-Cambridge]

[Text] PRODUCTION of life-sustaining drugs
has been threatened by strikes over the
detention of trade unlonists, accordin,
to a warning issued to fovernment by 1!
major pharmaceutical companies.

All 14 East Rand companies were hit
by a two-day sit-in strike last week by
members of the SA Chemical Workers’
Union (Sacwu) who demanded the re-
Tease of a union leader and detained
members.

Roche Products personnel services
manager Jan Smit sald four employer
representatives had met Manpower Di-
rector-General Piet van der Merwe on
Thursday to discuss the matter.

“We told him of our concern over the
effect of current detentions on labour
relations in general, and the way it af-
fected us in the workplace.

“Our basic concern Js that most com-
pines, are pharmaceutical producers of

life-sustaining drugs which people can-
not do without,” Smit said.

Several employers told Business Day
another danger posed by the strikes was
that pharmaceutical companies could
be closed by the Medicines Control
Council if they employed unskilled tem-
porary labour.

The 14 companies include Twins
Pharmaceutical Holdings, Roche Pro-
ducts, Beecham SA, Richardson-Vicks,
Scherag Ltd, Wyeth Ltd and Smith,
Kline and French.

They join a growing number of em-
ployers who have asked government to
charge or release detained leaders as

113104
cso: 3400/242

95

rapidly as ible.

rete sf oe ae to york last
lay and a joint group of employers

met with Sacwu representatives to in-

form them of their meetings with gov-

ernment.

Smit said the meeting with Van der
Merwe had been “very constructive”
and that Van der Merwe would act as go-

between employers and Law

. between
and Order Minister Louis le Grange.

The meeting had been arranged after
the 14 employers telexed Minister of
Manpower Pietie du Plessis, Minister of
Health Dr Willie van Niekerk and Minis-
ter of Law and Order Louis Le Grange
last Wednesday.

Smit said no further meetings with
government had been arranged and em-
ployers were waiting to see what would

jappen.

OKahn & Kahn Plastics in Isando was
also affected by a stoppage last week in,
which worker demands included the re-
lease of detained unionists.

O About 250 workers have been on strike]
at Cheesebrough-Ponds in Wadeville
since last. :Thursday. Management de-
clined to disclose the cause of the strike,

but Chemical. Workers’ Industrial
Union's (CWIU) Chris Bonner said work-
ers were demanding -the dismissal of a
supervisor who allegedly assaulted a
worker.

OAbout 4 000 workers:at seven Sentra-
chem plants in the Transvaal, Free State
and Natal have entered their seventh
week, of strike action over wages.



Construction Manufacturing Worse Hit

Johannesburg BUSINESS DAY in English 2 Jul 86 p 5

{Article by Gerald Reilly]

[Text]

/13104
cso:

CONSTRUCTION, manu-
facturing and SA Trans-
port Services have shed
almost 220 000 employees
during the two years to
March,

The Central Statistical
Services figures show this
drop in these three major
sectors, .

Mining, electricity and
communication sectors,
however, had a rise in
numbers.

The manufacturing sec-
tor employed 1,32-million
in March — 77 200 fewer’

3400/246

than in March 1984. Con-
struction, with 300 000
employees, was down
113 600.

In March 1984 Sats em-
ployed 240 856 but by this
March that had decreased
by nearly 20000 to
(221 067.

Mining numbers in-
creased 45 304 to 760 932,
while Escom numbers in-
creased by 1 400 to 64900
and the Post Office pay
roll went up by 2802 to
96 724,

68

JPRS*SSA*86-081
29 July 1986



/9317

During a hundred years man.
has dug almost 40 000 tons of gold
from its boomerang-shaped
carrier reefs, an amount
unparalleled in any other part of
the world.

And since 1886 men throughout
the world have searched
feverishly to find another magic
Witwatersrand. But the quest has
been frustrating and fruitless.

They found something similar
at Elliott Lake in Canada, but the
sediments contained no gold, only
much cheaper uranium, :

There may be a similar
rock-like inland sea at Tarkwa in‘
Ghana, but it has not been
explored methodically.

The Australians are still full of
hope that they will eventually
find their own Witwatersrand.

The Russians are looking for a
big Witwatersrand as well, as
they have furtively shown. For
this purpose they have long
ordered all publications dealing

cso: 3400/162

92

with the Witwatersrand, even
those in Afrikaans, and have had
them translated. ‘

Messages

The Soviet Union’s biggest
‘alluvial gold field, which has
helped to turn the country into
the world’s second largest gold
producer, is only one-tenth the
size of our Rand.

In fact all the world wants to
discover another Witwatersrand,
and this will be one of the main
messages of the large
Geocongress '86 in Johannesburg
next month.

“The biggest contingent will
‘probably come from Australia
where there are high hopes of
«finding something similar.

“At this congress 200 overseas
visitors will have the opportunity
of a lifetime to learn the latest
about this unique golden sea,” one
of the organisers says.



ypRS+SSA~867081
29 July 1986

EMPLOYMENT FOR SOLDIERS--Durban--The thousands of soldiers returning to
Durban this weekend after two years of National Service can look forward
to the support of 400 of Natal's largest companies when they begin
searching for jobs in a depressed economy. However, even with the help
of big business, the unemployment figure among them is expected to be up
to 42 percent from last year's 25 pe. Durban City Councillor, Major Pieter
Breytenbach, said the Durban municipality had been one of the leaders in
offering employment to soldiers. He has also organised a team of experts
to visit a large demobilisation camp at Ladysmith to talk about jobs and
opportunities.--Sapa [Text] [Johannesburg THE CITIZEN in English

27 Jun 86 p 14] /9317

BUSINESS CONFIDENCE UP--Business confidence has picked up for the first time
since February, according to Assocom's latest Business Confidence Index (BCI).
The index, which measures business confidence according to the movements of
certain economic indicators, was boosted, 1,5‘‘points to 80,1 in June. This
follows a decline for three consecutive months from a high of 85,5 in
February. Positive impacts came mainly from ‘the JSE market, the unemployment
index and net migration from SA. In contrast with improvements in these
sub-indices, the fall in the external value of the rand, which started in
April, continued through to June with further negative influences coming
mainly from declines in the volumes of retail sales and a persistently high
rate of inflation. Although business confidence remains at a relatively low
level, Assocom says several factors had favourably influenced business
sentiment this month. These include the fiscal "package" announced by Finance
Minister Barend du Plessis' the prospect 6f lower interest rates; and the .
perception that violence in SA may be on the wane. Confidence has also been
boosted by Du Plessis; reported statement that he is willing to consider
further stimulatory economic measures if the economy does not respond within a
couple of months to the fiscal “package”. Assocom says it is possible the
latest small strengthening in the BCI may mean business sentiment is beginning
to adjust the inevitable realities of another difficult year for the economy.
[Text] [Johannesburg BUSINESS DAY in English 1 Jul 86 p 1] [Article by
Lesley Lambert] /13104

PRETORIA OPENS CBD--In the face of bitter opposition from rightwing National
Party councillors, the Pretoria City Council last night agreed to free trading
in a large section of the central business district. In the heated debate the
Nationalist-oriented Federation of Ratepayers was accused of reneging on an
election promise to back apartheid. The council also agreed it would not
object to open UIP-Warner cinemas in Menlyn and Ster-Kenekor cinemas in the
city. [Text] [Johannesburg BUSINESS DAY in English 1 Jul 86 p 1] [Article
by Gerald Reilly]. /13104

CAPE HOUSING PROJECT--Work has started on the first stage of the R2 000m Lower
Kuils River freehold housing development for coloured people. Approximately
7 000-homes are to be built on land within the Blue Downs area of the Cape
Flats, and the first homes should be ready for occupation by the middle of
next year. The ultimate development will be larger than Mitchells Plain.
Giving details of the project, the Minister for Local Government, Housing and

98



BARCLAY'S BANK MANAGER DISCUSSES FUTURE OF BLACKS IN TOP POSTS

Johannesburg BUSINESS DAY in English 25 Jun 86 p 2

[Article by Peter Wallington]

[Text]

19274
cso:

3400/225

SA MANAGEMENT was starting to accept that most
of the high-level manpower needed to run the eco-
nomy in future would be black, Barclays bank person
nel manager Doc Pascoe said in Sandton yest ‘day.
Addressing a Unisa School of Business Leadership
seminar on “Black advancement: strategies for suc-
cess”, Pascoe said it was unacceptable that whites,
who make up only 15% of the population, should
occupy 9870 of all managerial positions.
situation will have to change dramatically in
order to accommodate needs and aspirationsof black
matriculants, as was done for whites in the past.”
Pascoe said black advancement became a crucial
aspect of Barclays manpower plan in 1977, when
there were only 18 black people in senior supervisory
and managerial positions. This figure rose to 206 this
year and the pro} total for 1990 is more than 500.
Barclays re-examined its black-advancement pro-
gramme last year and came up with an equal-oppor-
tunity strategic plan through which it would recruit,
train and advance black, coloured, Asian and white
emloyees in such a way that the racial mix within the

‘bank would move steadily towards reflecting the

demography of SA.

While Barclays continued to focus on training and
development, it also emphasised programmes which
impacted on attitudes.

‘o change attitudes, it was necessary to change the
environment, Pascoe said. “One of our strat ies is to
ensure that any branch of the bank whicl is not
racially integrated will be integrated within a specif-
ren sa iat Mi rtunit ed

le no’ at equal opportunity presupposed a
“level playing field’, which SA — largely through
inferior black education — did not have. Thus, simply
to give black employees equal treatment did not
amount to black advancement or equal opportunity.

“This approach fails to distinguish between giving
people equal rights and providing the tools for them to
use the same opportunities.” .

75

JPRS*SSA*86*081
29 July 1986

SOUTH AFRICA



JPRS*SSA*86~081
29 July 1986

SOUTH AFRICA

BRIEFS

MAMELODI RESIDENTS GET ULTIMATUM~-Mamelodi residents have been given the
ultimatum--pay up or else. The Pretoria township residents who have not paid
rent for the past seven months » have received letters from Mamelodi Town
Council lawyers demanding they pay up within several days. Failure to settle
the debt, according to the council, will result in legal action against
residents. A specimen letter recevied by residents read in part: “If you
wish to make an offer of settlement and/or propose Payments, complete the rest
of the letter and return the whole of it to us. This will greatly limit the
costs recoverable.” The council is said to be losing millions of rands as a
result of the boycott. Some residents have said they have not responded while
others have sought legal advice. The rent boycott in the township began in
December last year when several people were shot dead and others seriously
injured after police fired on a crowd of about 30 000 residents. The crowd
were marching in protest against rent increases and to demand the resignation
of the town councillors. [Text] [Johannesburg THE NEW NATION in English 19
Jun-2 Jul 86 p 5] /13104

KUNI COMMUNITY SAVED FROM RESETTLEMENT--The people of Kuni have been saved.
The threat of further resettlement for the Kuni community in the Eastern
Cape--who were expelled from Ciskei--was averted when the Supreme Court last
week threw out an application by a group of farmers to have the people
removed. National and international attention has been focused on the

8 000-strong community when Ciskei trucks arrived one morning in January,
loaded up residents and their possessions and dumped the entire village next
to the road, just across the Ciskei "border'. Ciskei authorities justified
the move by saying residents of Kuni had been spreading instability in the
area. South African officials—-for once on the receiving end of a
resettlement problem—-prepared a temporary site on Needs camp, a farm
belonging to the South African development trust. However, white farmers in
the area complained about their new neighbours, accusing them of being the
cause of an increase in stock theft in the area--a charge the residents have
denied. The farmers, through their East London Western Districts Farmers'
Association, brought a Supreme Court action to force the government to move
the people elsewhere. The farmers won an interim interdict, but on the return
date last week, Justice Kroon ruled against the farmers. ~The farmers
accordingly had to "suffer the nuisance.” [Text] [Johannesburg THE NEW
NATION in English 19 Jun-2 Jul 86 p 5) /13104

32 2



COINS BAN WILL NOT AFFECT GOLD CONSUMPTION
Johannesburg BUSINESS DAY in English 1 Jul 86 p 6
[Article by Mervyn Harris]

{Text ] THE planned introduction of new

gold coins by several countries — or
the expansion of the production and
marketing of existing coins — will
not significantly affect gold con-
sumption before 1987,

This is the view of Anglo American
directors in their review for the year
ended March.

They say the ban on the importation of
Krugerrands into the US, Japan and oth-
er countries resulted in a severe reduc-
tion in the sale of these coins, and a
significant drop in gold offtake by the
coin sector of the market,

“A substantial surplus ‘of gold thus
remained to be absorbed in investment
markets, in competition with more at-
tractive investment alternatives. This
determined the flat prices experienced
during 1985,” they add.

With the exception of a brief rally to
$341 in August, the dollar price of gold
traded between $308 and $335 for the last
nine months of 1985 — the narrowest

price range seen in the gold market since

This reflected lack of interest by the
general investor when attention was ab-
sorbed by strong stock market perform-
ances in all major centres, continuing
real returns in the bond markets a
movements in the currency markets.

However, the sharp depreciation of
the rand against all major currencies
sent the rand gold price to R900 by De-
cember. The price eased to R730 at the
end of March after the recovery of the
rand.

The investment sector of the market
remained the determining influence on
the price of gold in 1985, with gold supply
continuing to exceed physical demand.

JPRS*SSA+86+081
29 July 1986

SOUTH AFRICA

SA gold production declined slightly in
1985, though overall Western world pro-
duction increased and Comecon gold
sales grew by a small margin.

Renewed market interest in 1986 has
pushed the price to a new range of $330

to $360. This price range has been sus-
tained by investor concern over a combi-
‘nation of issues, including the lower dol-
lar, political tensions in Middle Eastern
countries and Libya, labour unrest in SA
mines, and the possibility of an interna-
tional banking crisis arising from falling
world crude oil prices,

The directors note that oil prices have
not yet established a firm floor level and
the full effects of these developments
remains to be seen in the oil and bullion
markets. .
' Coal sales by SA mines administered
by Anglos increased from 37,8-million
‘tons to 88,1-million last year. This
formed about 23% of the national total,

The market for internationally-traded
steam coal continued to grow, and prices
under longer-term supply contracts
were generally higher than in 1985.

However, increased availability from
established suppliers such as Australia,
SA and the US, and, more recently, from
Colombia, has depressed spot prices.

The price fall hag been accelerated by

the sharp decline in oil prices this year.
SA coal prices have been further hit by
the decision of certain countries to less-
en, or even eliminate, their reliance on
SA coal because of unfavourable percep-
tions of the country’s political situation.
While depress lomestic markets
last year were partly offset by rising
exports, fiscal measures, supported by
monetary policies, are likely to have a
modest expansionary bias in the year
ead.



JPRS«SSA*86+081
29 July 1986

UDF, COSATU DENY PAMPHLETS--Pamphlets promising East Rand residents payment
for staying away from work have been disowned by the UDF and Cosatu. The
pamphlets were distributed in Tembisa and other East Rnad townships last week,
promising residents that they would be paid between R10 and R50 a day if they
stayed away from work. The pamphlets claimed that those who stayed away could
go to any UDF or Cosatu office to-claim the monmey if they stayed away from
work on June 16. Where there are no UDF or Cosatu offices, the documents
said, any civil residents association would do the pay out between 10 and 11
am. The document read in part: "The executive of UDF and Cosatu are
concerned about our people and have reached consensus at National level to pay
all comrades who celebrate Soweto Day and who stay away from work without pay
from their employers." The Benoni printers, whose name is given in the
pamphlet as the printers of the document, denied printing it. "We know
nothing about the pamphlet and we did not print it,” said their spokesman.
[Text] [Johannesburg THE NEW NATION in English 19 Jun-2 Jul 86 p 3] /13104

cso: 3400/249

33



IPRS«SSA~86*081
29 July 1986

SOUTH AFRICA

ARMSCOR GENERAL MANAGER DISCUSSES SANCTIONS

Johannesburg THE STAR in English 24 Jun 86 p 13

64

[Text]
Economic sanctions against ill survivi i
South Africa will not be the end: still surviving even without the
of the world, but rather “the, When the embargo was im-
beginning of life”. . posed they decided what they
This is the view of Mr Fred. really needed in the weapons
Bell, executive general manag- field and made plans to get it,
er of Armscor, who leaves the: or build it themselves, he said. "-
corporation at the end of this If the SADF needed subma-
month to take up a new, as yet. rines they would get them. '
still classified, position. While the G5 gun was an im-*
“The only way to break out pressive achievement, its tri-t
of sanctions is when they are umph lay rather in the produc-,
applied. Before that it is very tion than the techlogical field. ,
difficult to decide what to do,” “Look at that,” he said point-
he said in an interview. . ing to a minature of the Boer
He said that prior to the War Long Tom gun in his of-
arms embargo, South Africa fice. “It has a 155mm calibre:
had a “supermarket buying” and had a range of 12km. What:
policy. is so different about the G5? It,
SUBMARINES is the same basic product, but,
He pointed to the fact that the result of the latest produc- |
among the arms “lost” when tion technology.’ i
the United Nations resolution, Mr Bell regards break-!
was passed was a French con- throughs such as beating the
tract to supply corvettes and military computer boycott as.
submarines. But now, nearly 10 more important. If if could be
years later, South Africa was broken, he said, South Africa
could beat any sanctions. .
/9317
CSO: 3400/161



PARASTATALS URGED TO START MAKING PROFITS

Harare THE HERALD in English 24 Jun 86 p 9

[Text]

113104
cso:

PARASTATALS should reverse
operating on a deficit to avoid
collapse, the deputy secretary
(Administration and Parastatals)
in the Ministry of Information,
Posts and  Telecommunications,
Cde Lucas Tavaya, said yester-
day.

Addressing 20 senior Govern-
ment officers responsible for
parastatals in Harare on the role
of parastataly in the implementa-
tion of Government development
policies, he said this could only
be effected if the
clearly stated its policy.

“These institutions were in-
itlally erented with a view to
serving only a fraction of the
population and now after in-
dependence, the burden on these
bodies hag increased amazingly.

He said it was time parasta-
tals changed their policies and
operated on @ commercial basis.

‘The Government and people
were unanimous that these in-
stitutions should make a profit
to keep them in business and not
continue receiving financial help
to make up for their shortfalls.

3400/238

Government

21.

ZIMBABWE

Cde Tavaya said arens to be
+ discussed should include relations
between boards, management :nd
ministers; growing budget defl-
cits; programme Planning,
management practices, direction
and purposefulness and technolo-
gical dependence.

Speaking on the same occasion,
the senior deputy secretary in
the Prime Minister's ana Cabi-
net Office, Cde Willard Chiwewe,
said the Cabinet committee cn
parastatals haq been established
to curb the drift of parastatels
towards privatisafion.

“while it had been possible
through the Cabinet committee on
salaries in statutory bodies to
control salaries and wages pny-
able by parastatals to their senior
personnel, no further machinery
existed at the time of independ-
ence to control the equally im-
portant areag of staff recruitment,
conditions of service, administra-
tion and operations policy.

“Hence, the neeqd had arisen
urgently and effectively to moni-
tor and redirect parastatal activi-
ties to put them in line with Gov-
ernment and national objectives.”



THOUSANDS OF JOBS CUT IN MAJOR SECTORS

IJPRS+SSA+86+081
29 July 1986

SOUTH AFRICA

Statistics Reveal 10-Year Decline

Johannesburg THE STAR in English 27 Jun 86 p 4

{Article by Sheryl Raine]

[Text]

More than 291 000 jobs have disappeared in the manu-
facturing and construction industries in less than 10
years, according to Government figures.

Worst hit were black workers, but no race group
has been spared.

In its latest set of employment statistics for these
two sectors for June 1976 to December 1985, the Cen-
tral Statistical Services (CSS) in Pretoria reported
that 1982 was the best year and 1978 the worst for
manufacturing. For the construction industry, the
best year was 1976 and the worst 1985.

Facing tough times

In both sectors, the overall employment situation’ ©

was worse at the end of 1985 than in 1976. Both sec-
tors still face tough times.

In 1976, the peak for the construction sector, 466 409
people were employed. By the end of 1985, only
302700 had jobs. A total of 163709 jobs had disap
peared. Most had belonged to blacks’ (126 359), fol-
lowed by whites (18 496), coloured people (17 985) and
Indians (869).

In manufacturing, at the end of 1976 there were
1355 000 people employed. By the 1982 peak, the num-
ber had grown to 1 454 000.

‘Three years later 127 400 jobs had disappeared.
However, the CSS figures:showed the situation at the
end of last year was not as bad as in 1978 when only
1312 000 people were employed in this sector.

Hardest hit in manufacturing were blacks who lost

+ 83 100 jobs from 1982 to 1985. During the same period
about 18 300 jobs for whites, 20500 for coloured peo-
ple and 5 500 for Indians also disappeared.

Some manufacturing sectors were more deeply af-
fected than others. Significant job losses from 1982 to
the end of last year were recorded by:

@ Food industry — 9 700 jobs lost.
@ Textiles — 13 000.

‘@ Clothing —,6 700.

‘urniture — 2 000.

‘hemicals —.7.800.

@ Plastic products — 3 400.

@ Basic metals — 12700.

@ Transport equipment — 19 500.

More coloured and black employees have suffered
through loss of jobs in the transport equipment sector.
than other races.

In 1982 there were 55 700 blacks employed in this
sector compared with only 46 600 three years later —
9100 jobs lost. Among whites 3500 jobs were lost,
among coloured people 6 000 and among Indians, 900.

67



JPRS“SSA=864081
29 July 1986

SOUTH AFRICA

FIRMS RE-EXAMINING SECURITY AFTER BOMB BLASTS

Johannesburg THE STAR in English 26 Jun 86 p 9

[Article by Michael Chester]

[Text]
Johannesburg businessmen are an “oe
to examine new security mea- hess District Association.
sures in the wake of the bomb Mr Pat Corbin, president of,
blasts on Tuesday. the Junior Chamber of Com-
Moves were launched yester- merce, said it had become es-
day to frame a set of guidelines sential to give new advice to bu-
on how businesses should tackle ‘sinesses on security measures.
security. . “a A
Mr Marius de Jager, chief ex- have incidents cated uesday
ecutive of the Johannesburg y gi
Chamber of Commerce, said se-, . Soncern, ‘They have also caused
curity members would meet in enormous
progress that Johan-
the next few days. to examine. nesburg: in rticular has
the whole issue of urban unrest: , achieved with reforms and the
“Our ambition is to produce a dismantling of apartheid.
special newsletter that will give y One: i ot pa ed . ,
guidelines to all member firms “One' is dismayed to learn
— retailers, restaurants, hotels, that the very people who have
factories and offices, especially contributed so much to racial
those in and around the in harmony turn out to be the vic-
in and arot e city cen- -
we _ . tims of terrorism,” he said.
“We are also exchanging “ F
som wi he Duta Gang, The chambeywitaln be
of Commerce to ensuré as much’ . ys
information’ and experience as communicating to have been
- ” ment n
possible will be pooled.” made and what may still be in
auto hcay ———thepelne
the Emergency Planning Asso- “Perhaps ignorance. about
ciation that has been formed as achievements is at the root of
an offshoot of the Central Busi- outbreaks of violence”.
19317

CSO: 3400/164

76



UGANDA

Museveni Says Kenya To Permit Access to Port
(THE INDIAN OCEAN NEWSLETTER, 21 Jun 86) .ccccccccccccccces

ZIMBABWE

Banana Says Nation To Increase Military Budget
(THE CITIZEN, 25 Jun 86) .....

Government Blamed for 'Dismal' State of Construction
(THE FINANCIAL GAZETTE, 14 May 86) ..

Columnist Outlines Ideal Agenda for NAM Conference
(Iravor V, Ncube; SUNDAY DAILY MAIL, 25 May 86) ..

Party Members Urged To Play Security Role at NAM Summit
(SUNDAY DAILY MAIL, 22 Jun 86) ...

Parastatals Urged To Start Making Profits
(THE HERALD, 24 Jun 86) seeee

Editorial Calls for Economic Self-Reliance for Africa
(SUNDAY DAILY MAIL, 1 Jun 86) ....

SOUTH AFRICA

AFRIKANER/GOVERNMENT

Hendrickse Criticizes President's Council's Decision
(SAPA, 23 Jun 86)...

HNP MP Says RSA Citizenship Will Bring More Blacks
(SAPA, 23 Jun 86) ..cccececeee

Finance Minister on Partition; Bill Read
(SAPA, 25 Jun 86) ...

Deputy Minister on Blacks Owning Property
(SAPA, 25 Jun 86) -...se005

Briefs
E. Cape Team Named

BLACKS

Squatter Camp Spreading Behind Colored Township
(Shirley Pressly; WEEKEND POST, 28 Jun 86) ...secececceceee

12

13

14

16

19

21

22

24

25

26

27

28

29



JPRS«SSA*86«081
29 July 1986

SOUTH AFRICA

BROEDERBOND'S INFLUENCE IN NATION'S EDUATION EXPLORED
Johannesburg THE NEW NATION in English 19 Jun-2 Jul 86 p7

[Text] FOR MANY dark years before The Broederbond aim, he says,

black students rose up against the
instruction of Afrikaans in schools
the Broederbond -- the secret
Afrikaans society -- had secretly
infiltrated the major power seats of
learning.

Today education in South Africa
suffers a painful hangover from the
Broeders’ immense influence
which reached a peak during the
1976 student revolt. ironically the
minister responsible for education
at the time — M C Botha — was the
very same man who led the all too
similar Broeder protests of 1943,

Broerder minister

Even the current minister in
charge of black education, Gerrit
Viljoen, former rector of the Rand
Afrikaans University, was also
Broederbond chairman for many
years. His successor as Broeder-

ond chairman was Professor Jan
Pieter de Lange, who is also
chairman of the Human Sciences
Research Council Committee on
Education and author of the 1983
De Lange Commission on
education.

De Lange is not only one of the
most important and powerful
Afrikaners in the country, but
probably the most influential
educationist in the land.

As head of the Broederbond --
the all powerful Afrikaner
nationalist think-tank and cultural
body -- his views provide an
‘interesting insight into top-level
Afrikaner opinion.

40

‘is.to "promote the broad interests
‘of South Africa and within that to

rotect the Afrikaner interests."
The Bond, which is only open to
carefully selected and invited
Afrikaans men has about 15 000
members. oo.

About 10 percent of the
membership defected to the far-
right in 1983 when the previous
Broederbond chairman, Carel
Boshoff (conin-law of Hendrik
Verwoerd) resigned to form the
far-right Afrikaner Volkswag.

According to de Lange 30
percent of the white members of
parliament are Broederbond
members and he says, he can't
recall how many Cabinet members
belong to the Bond -- “but not all
‘do." However it is sufficient to
note that every Nationalist prime
minister or president for 38 years

s been a Broeder.

Professor de Lange says the
“time for change has to be
protected in two ways: the

romotion of the economic life of
uth Africa - because change is
going to cost a lot of money. As
an example, FW de_ Klerk,
Minister of National Education,
stated that in the next 10 years
another four billion rand -- 67
percent -- has to be added to the
national budget for education to
promote equal opportunity.
However, the Broederbond
emphasis on education as a tool for
the preservation of the Afrikaner
volk and a reformed neo-apartheid
structure, is little changed.
Both Viljoen and De Lange have
emphasised that integration at
school level is a non-negotiable



NATION'S INTERNATIONAL ISOLATION UNDERSCORED

Johannesburg THE STAR in English 20-Jun 86 p 10

[Commentary by Dr Van Zyl Slabbert, in My View Column]

[Text]

Sometimes it helps to step back in
order to get a better view or per-
spective on a situation. I have just
returned after six weeks’ absence
from South Africa, having visited
New York, Paris, London, Rome and
Dakar.

During that time I spoke to busi-
nessmen, academics and journalists
about how the South African Gov-
ernment raided Zimbabwe, Zambia
and Botswana. The EPG decided that
its mission was no longer worth pur-
suing and the Government announced
a state of emergency.

‘These events all enjoyed front-page
coverage and columns of analysis in
the newspapers of all the cities that I
had gone to.

It felt strange to sit at a boulevard
cafe and read about these develop-
ments in South Africa and not be
there. But it also helped one to form,
perhaps, a more dispassionate per-
spective of what was going on in
‘one’s own country.

Some general observations. The
good times are never going to come
back to the old South Africa, they
are gone for ever. In other words,
we are not going to stabilise or nor-
malise the situation and simply carry
on as before.

Also, it is quite clear that the Gov-
ernment has lost the political initia-
tive. Obviously, it is in control from a
security and military point of view,
but this precisely underlines the fail-
ure of its political initiatives.

Sanctions of some kind or the other
are absolutely inevitable.

I was struck by the fact that the
Government really has no awareness
of the depth of its rejection in the in-

38

ternational community, and how iso-
lated it really is. .
It also became clear to me that
mass mobilisation has never been
greater. In other words, never before
has South Africa’s black population
been mobilised to the same extent in
pursuit of a common objective as it is
at present.

That objective can be put quite
simply, FREEDOM. One may scoff
at this, make cynical comments about
the futility of pursuing freedom, but if
one listens carefully to black spokes-
men, the message is quite simple.

As one black spokesman put it to
me in New York, whites are con-
cerned with survival and therefore
they are not prepared to die. Blacks
‘want their freedom, and they are
“willing to die for it, ,

The Government's response to the

black demand for freedom has been j
to emphasise stability; the need to
‘normalise the situation in order to
bring about reform. And thus we have
a curious paradox — the divergence
between the values of freedom and
stability. ~

In any normal society, these two
would be intimately linked, the indi-
‘vidual’s freedom would be the source
of stability for society. But in our sit-
uation, the Government’s emphasis on
stability is seerl as a threat to black
freedom.

Consequently, the only way in
which the Government can resolve this
paradox, is to extend coercive con-
trol, and this is how we have to un-
derstand the state of emergency.

The emergency also makes it quite.
clear that the Government has decid-

JPRS*SSA*86~081
29 July 1986

SOUTH AFRICA



MINING PRODUCTION DECLINES 6.3 PERCENT

Johannesburg BUSINESS DAY in English
{Article by. Mick Collins]

{Text ] declined by 63% in

24 Jun 86 p 11

THE volume of minin production, including gold,
larch.

This is the largest decline over the past 15

months.

to 4,7'

It brings the average decline for the first quarter
Mininy production, excluding gold, declined by

4,7%, which is again a deterioration from the in-
crease of 4,7% for February.

Compared with the first quarter of 1985, this
brings the average production down a marginal

Figures published in the Transvaal Chamber of
Industries’ Bulletin indicate that gold production
declined to 94,9% in March, compared with 102,4%
for the same period in 1985 — a decrease of 7,3%
(see table), . .

This is the second-largest decline since the 8,8%
of May 1985 and brings the average decline for the

PHYSICAL VOLUME OF MINING PRODUCTION
Month : March ‘Average: January to Merch
1986] 1985] Change 1986] 1986] Change '
1980 = 100 %| 1980 = 100 _%
Total including gold 99,7 106.4 1.3. 100,2 105,2
Total excluding gold 110,4 115,8 7 413,2 413,3
Gold 94,9] 102.4 ~73} 945] 101.6 ;
Coal 151.0] 161.7] -05} 1491] 144.9] 2.9
first quarter to 7,0%. production of building materials
Coal production also declined mar- —_(9,2%) and iron ore (5%)
ginally by 0,5% in March, although an The value of mineral sales came to
average increase of 2.0% was still Fey g32bn in March 1986, of which gold
yor led for the first quarter of this contributed R952,2m of 52%,
In other. mining sectors, the largest The second-largest contribution
production declines took place incop- aS that of coal-at R415,9m.
er, at 19,7%, and in asbestos, at At much lower levels were the pro-
89%. ¢ duction of diamonds at R64,9m and
Large ‘increases occurred in the copper at R47,9m. ‘
19274
cso: 3400/225

79

JPRS“SSA~86~081
29 July 1986

SOUTH AFRICA



Mozambique's flimsy internal trans-
port and communications infrastruc-
ture.

For the vast majority of Mozam-
bicans, this means they haye been:
thrown on their own resources and
must live (or die) without help from
the central government or its agen-
cies.

Government, in effect, is confined
to the bigger towns and to the capi-
tal of Maputo.

In ese centres, life for most
people is alread: th because of
shortages of both dontsheae and
externally produced goods.

At present, South Africa’s most im-
portant contribution to the Mozambi-
can economy comes from the money
(officially estimated at R1168 million
in 1983) sent home by the more than
60000 Mozambicans who officially
work in South Africa and from the
1,6 million tons (1984/85) South Africa
ships through Maputo harbour.

Most observers believe there are
many more than 60 000 Mozambicans

working in South Africa, but even
double the number would inject only
R230 million into the Mozambican
economy,

The development proj that
might have gone to Moco biue as
@ consequence of the Nkomati Ac-

/13104
Cso: 3400/250

cord have been few and small for a
number of reasons, mainly the cur-
rent economic. depression. in South
‘Africa. | t

So, as things stand today, a com-
plete break with South Africa will
add to Mozambique’s already heavy
economic burdens — but it will make

», hardly any difference to the average
Mozambican.

For the people in the towns and

: the cities, the shortages might be-

come even more severe.

But the, “suffering” that sanctions
will bring cannot approach the suf-
fering already imposed by the unre-
solved civil war in the

Nor will rebellion cease if and
when apartheid is

Whatever help the South Africans
may or may not have given the
MNR, it is clear that the MNR today
is capable of enormous disruption in
Mozambique without any help from
‘anybody, even though it may not be
in a position to defeat Frelimo and
take over Mozambique.

While the. MNR may exaggerate
its own support in Mozambique, it
could not operate as widely and as
effectively as it now operates with-
out taking advantage of government
incompetence on one hand and fair-
ly widespread support on the other
hand.



/9317
CSO: 3400/162

66



JOHANNESBURG BUILDING SLUMPS 64 PERCENT

Johannesburg THE STAR in English 24 Jun 86 p 18

{Article by Frank Jeans]

[Text]

The value of building
work started in the
Johannesburg area last
month slumped to only
R9,6 million — 64 percent
down on the R25,2 million
for the fifth month last
year.

Comparative figures
from the Planning De-
partment of the Johan-
nesburg Council for work
being carried out is little
better, with a 23 percent
plunge (R782 million to
R603 million).

Civil engineering, long
in the doldrums, got a
mild boost last month,
with road contracts push-
ing the combined value of
75 contracts to R123 mil-
lion.

The total value for the
five months of the year
now stands at R610 mil-
lion, well up on the
R420 million for the same
time last year but down
on the R705 million re-
corded for January-May
1984.

It should be remem-
bered, too, that construc-
tion costs over the past

/9317
CSO: 3400/161

two years have increasea
by about 35 percent.

The booster for last
month’s orders was the
R22,8 million construc-
tion of 11km of the N3
freeway between the Tu-
gela River and the
Vallkrans interchange,
Edenvale centre
Work has begun on a
shopping centre develo}-
ment in Edenvale — a
joint project between
Murray & Roberts Prop-
erties and Retail Interna-
tional.

“The 10000 sq m centre
will provide a one-stop
shopping facility,” says
Mr Eric Field, executive
chairman of M&R Prop-
erties.

“The three main an-
chor tenants are Pick 'n
Pay, Clicks and Morkels.”

There will also be 30
line shops and open park-
ing for 380 cars.

“Pre-letting has been
brisk and the centre is
virtually fully let,” says
Mr Field.

The project is being fin-
anced by Volkskas Mer-

72

IPRS*SSA+86«08)
29 July 1986

SOUTH AFRICA

chant Bank and is sche-
duled to open next June.

Security

Security contracts cover-

ing two major develop-

ments in central Johan-

nesburg have been.
awarded by LTA to the

Rennies Electronic Secu-

rity Division of Fidelity

Guards.

The buildings are Ned-
bank headquarters now
being built on the site
bounded by Rissik, Mar-
shall, Loveday and Main
Streets and the Pruden-
tial Assurance flagship
on the old Colosseum
property in Commission-
er Street. .

The Nedbank contract, .
worth R750 000, covers
access control, closed cir-
cuit television, aswell as
24-hour alarm monitoring
of all security measures.

The R400 000 Pruden-
tial contract involves, at
this stage, the planning
and design of all security
aspects related to access
control and alarm moni-
‘toring.



FRENCH CREDIT AGENCY RESCUES FOURTH REFINERY

Lagos BUSINESS TIMES in English 16 Jun-86 p 1

[Article by Ndu Ughamadu]

[Text]

ANCE has now
decided that its
export credit agency

(COFACE) which
had been foot-
dragging over

extending cover for
the fourth refinery
of the Nigerian
National Petrolleum
Corporation (NNPC)
at Elesa-Eleme, near
Port Harcourt will
extend such.
However, the export
credit agency of Japan.
(MITI) had extended
its own cover some
months ago. Work had
almost been grounded
‘at the refinery, because
of COFACE’s reluc-
tance in extending its
cover for reasons not
unconnected with the
Present economic
recession in the

19317
cso: 3400/200

country.

Only recently, the
Petroleum Resources
Minister,_ Alhaji
Rilwanu Lukman, told
the Business Times in
an exclusive interview
that he was optimistic
‘that France would
meet its part of the
contract agreement on
the fourth re: y.

A United Bank for
Africa’s source said
last week that
France’s latest and
Positive stand on the
refinery was sequel to
President Mitterand of
France and Prime
Minister Nakasone of
Japan’s di sion on
the issue at the May
3 — 5 summit of the
seven leading
industrial leaders in
Tokyo “where it was
mutually decided that
France should extend

its own cover, thereby
removing the last
stumbling block’.

The meeting of
minds far away in
Tokyo more than any-
thing, reflects the
concern of the West,
and Japan for the
economic security and
political stability of
Nigeria, it also under-
scores the country's
strategic and com-
m importance.

In February 1985,
the NNPC signed a
470m dollar contract
with a consortium of
companies, JGC and
Marubeni of Japan,
Spie Batignolles
(Spibat) of France and
Spibat Nigeria Ltd for
the financing of the
foreign exchange
component of the
refinery among others.

10

JPRS*SSA*86*081

29 July 1986

NIGERIA‘

Sure enough, the
new refinery is
designed to process
160,000 barrels a day
(bd) of Bonny light
from the Shell
Petroleum Develop-
ment company’s
termi:

Accordingly, this
will boost Nigeria’s
refining capacity to
410,000 barrels a day.

On the completion of
the fourth refinery
around 1987, all things
being equal, it will also
produce yearly 123,000
metric - tons of
liquefied gas, 2.78
million metric tons of
gasoline, 930,000
metric tons of fuel
kerosine, 820,000
metric tons of diesel oil
and 2.35 metric tons of
fuel oil.



JPRS-SSA-86-081

29 JULY 1986

SUB-SAHARAN AFRICA REPORT

CoNTENTS

INTER-AFRICAN AFFAIRS

ECOWAS External Debt List Released
(Nduka Nwosu; BUSINESS TIMES, 2 Jun 86) ..sseseceeeeeoeceee

Appeal of East, West to Countries of Region Compared
(Simon Barber; BUSINESS DAY, 2 Jun 86) ...seeceeescceescees

BURUNDI

Worship in Work Time Banned To Curb Church Influence
(Michael Rank; DAILY TIMES, 10 Jun 86) ...seeseseeeereeeees

GABON
Briefs
New Oil Field Found
Joint Exercise Held With French

MOZAMBIQUE

Statistics Reveal Slight Effect on RSA Sanctions on Economy
(John D'Oliveira; THE STAR, 30 Juni 86) ..cecceceeceecserees

NIGERIA

Overseas Banks Demand Thirty Percent Reserve Deposit
(BUSINESS TIMES, 16 Jun 86) ..csseeccesececercsccnceecreees

French Credit Agency Rescues Fourth Refinery
(Ndu Ughamadu; BUSINESS TIMES, 16 Jun 86) ....seseeeeeeeees

Briefs
Commonwealth Sanctions Urged

10

il


BOOKS TO BOOST YOUNG BLACK ADULT EDUCATION
Johannesburg THE STAR in English 30 Jun’ 86

[Article by Kate McKinnell]

(Text ]

/13104
cso:

An evironment where
books are freely avail-
able and reading is a way
of life is the ideal of Pro-
mat (Project Matric) col-
leges for young blacks.

Promat, a project to
upgrade education levels
among black adults, has
two colleges in the Trans-
vaal. A third is planned.

Project’s founder and
director Mr Larry Ro-
bertson was presented
with a collection of don-
ated books recently by
Dawn Lindberg.

Mrs Lindberg is ‘vice-
president of the Highveld
Soroptimists Club, an or-
ganisation ‘of women at
the top of their fields,
which has adopted Pro-
mat as a project.

Libraries are now
being compiled at the
Promat colleges, which
take Black: students. over
the age of ‘18 and, in an
intensive one-year curric-

3400/249

31

pg

ulum, .prepare them to
write matric.
“A worrying propor-

tion of black teachers are

underqualified,” said Mf
Robertson.

“A specific target is to
upgrade the education of
black schoolteachers,
‘many of whom have only
‘passed Std 8.”

- About 300 students
pass through Promat col-
Jeges every year, with a
Pass rate of 72 percent.

The books handed over
had been donated by two
publishing, companies,
Collins and Hodder and
Stoughton, and cover a
spectrum from diction-
aries and Shakespeare's
works to ordinary novels.

“We hope to gather
books from individuals
too. Anyone emigrating
or springcleaning who.
would like to donate their
collections should contact
me,” said Mrs Lindberg.
Mrs Lindberg. may be
reached at (011) 648-2392.

JPRS*SSA*86*081
29 July 1986"

SOUTH AFRICA



13104
cso:

3400/247

“Unfortunately, only a moderate
rowth target can be countenanced un-
ler present circumstances,” say the di-

rectors.

“Inflation is at an exceptionally hi,
level, and domestic spending has to
kept within the limits imposed by debt-
repayment commitments concluded
with foreign banks.

“The emergence of a recoyery, and its
strength and durability, depend critical.
ly on the country being able to move
towards normality in international and
domestic relationships.” :

89



JPRS*SSA~86*081
29 July 1986

ZIMBABWE

PARTY MEMBERS URGED TO PLAY SECURITY ROLE AT NAM SUMMIT
Harare SUNDAY DAILY MAIL in English 22 Jun 86 p 1

[Text] Security officials in Zanu (PF) must be vigilant and must mobilise the
masses to strengthen the security of the ruling party to complement Government
security efforts at the forthcoming Non-Aligned Movement Summit.

Making the call at a one-day seminar on the role of the security wing of Zanu
(PF) at a Harare hotel yesterday, the party's Secretary for National Security,
Cde Emmerson Munangagwa, said security had to be heightened in both the party
and the Government.

“We have a duty to mobilise the whole country and the youth in order to
prevent the enemy from penetrating us," he said.

The recent attacks on the three countries, Botswana, Zambia and Zimbabwe, by
South Africa was carried out “in order to demonstrate our vulnerability at a
time when important world leaders are preparing to come to our country.”

Cde Munangagwa added: “In many respects this attack against us was an
exercise in cynicism because the white racists were trying to show the world
that black independent states were helpless against them.”

But it was also a futile exercise which attempted to give false confidence to
Pretoria's white citizens that apartheid would continue forever, Cde
Munangagwa, the Minister of State (Security), said.

Heads of State coming for the NAM conference must be assured of the country's
security, he added.

"We must be extremely vigilant because the visitors will come anxious to see
that we ourselves are security conscious. They know that the South Africans
attacked us not so long ago and that we have a dissident problem in a small
part of the country.

"The visitors know the reasons for this problem but they have confidence in
this country and our leadership as well as in our capacity to host the summit
. « « Let us ensure that they take back positive memories regarding their
feelings of security whilst in Zimbabwe.

19



NOTE

JPRS publications contain information primarily from foreign
newspapers, periodicals and books, but also from news agency
transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.

Headlines, editorial reports, and material enclosed in brackets
[] are supplied by JPRS. Processing indicators such as [Text]
or [Excerpt] in the first line of each item, or following the
last line of a brief, indicate how the original information was
processed. Where no processing indicator is given, -the infor-
mation was summarized or extracted.

Unfamiliar names rendered phonetically or transliterated are
enclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
original but have been supplied as appropriate in context.
Other unattributed parenthetical notes within the body of an
item originate with the source. Times within items are as
given by source.

The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.

PROCUREMENT OF PUBLICATIONS

JPRS publications may be ordered from the National Technical
Information Service, Springfield, Virginia 22161. In order~-
ing, it is recommended that the JPRS number, title, date and
author, if applicable, of publication be cited.

Current JPRS publications are announced in Government Reports
Announcements issued’semi-monthly by the National Technical
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U.S. Government Publications issued by the Superintendent of
Documents, U.S. Government Printing Office, Washington, D.C.
20402. .

Correspondence pertaining to matters other than procurement
may be addressed to Joint Publications Research Service,
1000 North Glebe Road, Arlington, Virginia 22201.



yprs-SsAv8

UNIVERSITY OF PRETORIA ISS FIGURES REVEAL COST OF UNREST

Johannesburg THE NEW NATION in English 19 Jun-2 Jul 86 p 5

[Text]

113104
cso:

POLITICAL unrest be-
tween September 1984
and May 1986 has
caused damages of about
R156-million, according
to statistics from the
Institute for Strategic
Studies at the University
of Pretoria.

Referring to the
effects of the unrest on
the economy of South
Africa, the university's
bulletin cites damages to
public and private
property, consumer boy-
cotts, disruption and loss
of production owing to
stayaways, as the main
contributing factors to
the losses. .

According to political
observers, the amount
may even reach R200-
million if the South
African government
does not immediately
introduce concrete re-
forms that will satisfy all
race groups.

The unrest cost the
Putco Bus company
more than R20-million
between September
1984 and September
1985. A loss of R16-
million rand was caused
by a reduction in
passengers, while. the
other R5-million was
due to damage to buses.

Since 1984 a total of
170 Putco bus drivers
have either been injured
or killed. This resulted

3400/244

59

‘in. the suspension of

services for short
periods in Soweto and
the East Rand town-

ships.
is, the bulletin
says, posed questions
relating to increased
fares and the long-term
viability of investment
in public transport.

¢ report also stated
that boycotts of white-
owned businesses forced
many of them to fold.

¢ bulletin further
revealed that by
February 1986, claims
for loss of vehicles and

erty had amounted
to R65-million.

The bulletin also
pointed out that "every-
where in the Third
World, political reform
goes hand in hand with
unrest."

It further stated that
reform creates rising
expectations among
those who want re-
volution rather than
reform. And that, hope-
fully, credible and
meaningful reform,
coupled with economic
recovery, will lessen the
potential for revolution
and unrest.

"In the interim, the
maintenance of law and
order within. certain
limits is crucial and.
should continue," it
stated.

62081
29 July 1986

SOUTH AFRICA



JPRS*SSA*86~081
29 July 1986

SOUTH AFRICA

DEPUTY MINISTER ON BLACKS OWNING PROPERTY
MB230626 Johannesburg SAPA in English 1741 GMT 25 Jun 86

/Text/ House of Assembly, 25 June, SAPA--Property rights for South African
blacks officially recognised as permanent residents of areas outside’ the national
states were essential for peace and stability, the deputy minister of develop-
ment and of land affairs, Mr Ben Wilkens, said today.

He was replying to second reading debate on the black communities development
amendment bill, which removes the restrictions on blacks owning property in urban

areas under the jurisdiction of black local authorities and development boards.

Responding to objections raised by Conservative Party [ce] members during the
degate, Mr Wilkens emphasied that "not one single right" of white people would
be affected by giving these rights to blacks.

An important aspect of the bill would be the cooperation and support for
restoration of peace, order and stability which would be won in the townships
through the acquisition of property rights.

The bill, which Mr Wilkens said was "acknowledging realities" was read a second
time after the House divided, with the HNP /Reformed National Party/ and the
CP objecting to the measure. :

/12228
cs0: 3400/173

27



JPRS*SSA*86081
29 July 1986

SOUTH AFRICA

NATION'S REACTION TO U.S. POLICY CRITICIZED

Johannesburg THE STAR in English 20 Jun 86 p 10

[Commentary by Neil Lurssen of THE STAR's Washington Bureau]

[Text]

i t
South Africa’s angry reaction to recent
public statements by senior America
officials displays a lack of appreciation 0
the difficulties facing the US Administrat on
in trying to defend its maligned policy
structive engagement

ont considerable political ‘cost to
themselves, Reagan officials are determined
“to help South Africa wake up from its racial
nightmare. They want to stay involved &
use constructively whatever leverage they
have in the divided country.

But the only way they can persuade their
fellow Americans that this is the wise course,
is to make it clear they see apartheid as a
horrible and ultimately doomed system.

Anything less than that would pe
unacceptable in the US where civil rights,
human dignity and the sanctity of the courts
have come to be regarded — after a long;
bitter and violent struggle — as inviolable.

Thus the language used by American
officials to describe their feelings about

apartheid and the methods used to maintain .

is tough and uncompromising.
" This SS how the Secretary of State, Mr
George Shultz,, put it at a Washington

gathering of church leaders: “An immoral
system does not serve our interests; it
offends our moral principles and we must
continue to seek to end it.”

In the past, the South African Government
tended to be pragmatic about US verbal
assaults on SA race laws, seeing them as part

of the international political. game. But,.

recently, there have been signs of acute
sensitivity in Pretoria. Washington has been
getting under its skin. . a

An informed source in the Reagan Admini-
stration said this week: “The recent tenor of.
diplomatic exchanges from thé South African
side has been very sharp.”

It is understood that the SA Government
was especially distressed by what the
Secretary of State said to the churchmen. A
letter was sent which, reportedly, held out
the possibility of a break in relations should
this sort of thing continue.

United States and South African officials
here were reluctant this week to discuss the
specific contents of the letter on the grounds
that diplomatic exchanges are confidential,
but one major television network quoted
from the letter — and its news report was

, not denied.

36

* The ‘SA Government obviously read the
Shultz speech in full. He did say things not

€alculated to’ please Pretoria — such as
calling alleged abuse of children and torture
of detainees by policemen and prison
interrogators an “outrage”.

But he also termed as an outrage the
obscene necklace killings and the murder of
blacks by black radicals. :

And he went on to explain in detail why the
Reagan Administration was not willing to
impose further economic sanctions on South
Africa, why it did not want to,destroy the SA
economy, and why the SA Government
deserved some credit for implementing
change in difficult circumstances.

He said: “Our aim is not — I repeat not —
to inflict random, indiscriminate damage on
the South African people and their economy
from abroad.”

The fact is that Mr Shultz would not have
been able to make a speech stating his
intention to stay engaged in South Africa
without also making it clear that he
considered apartheid horrible — which is the
universal attitude in the US apart from an
insignificant handful of right-wing extremists
who fancy the idea ‘of white superiority.

Had he’ simply said: “We are against
sanctions against South Africa because it is
an important country where we get many of

our minerals and what the SA Government



JPRS-SsA-860981
9 July 1986

ZIMBABWE

EDITORIAL CALLS FOR ECONOMIC SELF-RELIANCE FOR AFRICA

Harare SUNDAY DAILY MAIL in English 1 Jun 86 ps8

{Text ]

FOR up in Africa the policy of self-reliance
in not a matter of choice but a common
sense neressity given the stark reality of
Wl unresponsiveness to our des-
pernte calls for assistance. What we often
receive, whenever we do, bears no relation
to the magnitude of our needs. Many African
governments are reduced to running “hand-
out” ceonomies --- economies dependent on
forcifm financial hand-outs calculated to
keep them barely afloat,

Last week’s United Nations special session
on Africa’s debt erisis and economic stagnation
generally demonstrated yet again the need for
Africa to look inward to herself and concentrate
on self-reliance. The delegates from the devel-
oped world listened to Africa’s desperate pleas
but gave nothing more than the. usual diplo-
matic promisory notes which, in this case,
help no one. How much money was spent in
orgahising the special session is a question
worth asking.

‘The African condition is grave and no
meaningfal forcign assistance is forthcoming.
the time has therefore come for the peoples
and governments of Africa to recognise and
accept that the problems wo face can only be
solved in Africa by Africans themselves,

Tt cammot be, denied that to a very great
extent the debt erisis is a foreign capitalist
creation. We live in organised poverty for the

politico-economic benefit of our former colonial
masters. They alone set the prices for all our
foreign exchange-earning export commodities
-— minerals, agricultural products, ete. They
also determine the prices for the imports we
need from them. Placed in such a bind, the
mechanism for our exploitation is complete.

Thus unless we unite and boldly present
radical challenges to these manifestly colonial
“arrangements, the debt crisis is here to stay.
It is a potent political instrument of control
over the ex-colonies and their peoples by the
developed nations. Our crisis is their policy
success —- the political and economic domina-
tion of the Third World.

There is, of course, no doubt that we
ourselves have also contributed much towards
the development of this crisis, first by failure
to .alter the inherited colonial economic
arrangements and secondly, poor management
of our own economies and resources generally,

Self-reliance can be an empty and danger.
ons slogan unless it is purposefully pursued in
a disciplined and determined manner. Self-
reliance demands that we care for what we
have and build on it in the national interest.
Mismanagement and corruption, ‘the twin
seourges of the Third World, cannot be blamed
on foreigners. These are our own evils which
militate against our countries’ efforts to stand
on their own feet. ,

22



JPRS*SSA*86*081
29 July 1986

GABON

BRIEFS

NEW OIL FIELD FOUND--Libreville, July 5 (AFP)--A consortium of firms, includ-
ing Royal-Dutch Shell and Elf-Aquitaine, Saturday announced the drilling of
a new successful onshore oil well in Gabon that could be part of the

largest oil field yet discovered in the Central African state. A statement
by Shell's Gabonese subsidiary, Shell-Gabon, said oil was found at a depth
of 1,100 meters (3,600 feet) near the coast, 170 kilometers (100 miles)

south of Port Gentil. The statement said that test drilling at the well,
baptised Kounga-1, had produced 3,100 barrels per day. The drilling area is
controled 50 percent by Shell-Gabon, 30 percent by Elf-Gabon and 20 percent
by the French firm Elf-Aquitaine. Shell-Gabon said the Kounga-1 well ap-
peared to be part of a larger oil field first tapped in 1985. The statement
said the two sites could be the largest oil field yet discovered in Gabon.

It said further test drills would be sunk to determine the size of the field.
Gabon is one of the 13 members of the Organization of Petroleum Exporting
Countries (OPEC). [Text] [Paris AFP in English 1447 GMT 5 Jul 86 AB] /6662

JOINT EXERCISE HELD WITH FRENCH--Libreville, July 5 (AFP)--Some 1,500 French
troops began a week~long exercise near here Saturday involving "recapture"

of Gabonese territory "invaded" by a neighbouring country in a fictitious row
over oil deposits. The manoeuvres, also involving 4,000 Gabonese troops,

40 planes and 14 warships, coincided with an announcement by foreign firms
here of a new oil find they said could be part of the largest fiéld discovered
so far in the oil-rich Central African former French colony. [Text] [Hong
Kong AFP in English 0255 GMT 6 Jul 86 HK] /6662

CSO: 3400/223



/13104

cso:

3400/247

larger amount of houses than separ-
ate efforts to deal with the 400 000
housing shortage would.

Meanwhile, Pentup has approach-
ed representatives of both the Con-
gress of South African Trade Unions
Cosatu) and the United Workers’

Inion of SA (Uwusa) to discuss the
scheme.

However, a major obstacle fo get
it off the ground is that of land avail-
ability. Land is scarce in Durban and
Pietermaritzburg where it is gener-
ally controlled by tribal authorities.

But a report is being prepared by
the KwaZulu Natal Planning Council
to investigate the situation in major
metropolitan areas and identify pro-
cedures for Jand release.

Pentup is also investigating the
availability of land in the rest of the
country, Jackson added,

74



TRANSVAAL FACING CRITICAL WATER, GRAZING SHORTAGE

* Johannesburg THE CITIZEN in English 5 Jun 86 p 8

[Text]

THE Transvaal Agricul-
tural Union says most
parts of the Transvaal had
very poor rains this sea-
son and face a critical
shortage of water and
grazing, along with mini-
mal crops.

A survey by the union
has shown that only the
Eastern Highveld and the
Southern Lowveld recciv-
ed substantial rains this
summer.

“It’s especially the
younger farmers who are
having to bear the heavi-
est burden,” a spokesman
for the union said. “Judic-
ial auctions of farms are
becoming ever more com-
mon and younger farmers
are leaving their farms in
greater numbers.

“It’s also evident that

many farmers plan not to‘

continue soil cultivation
after this season’s crop
has been marketed.”

The union says the cur-
rent locust plague has

113104
CSO: 3400/243

shown signs of spreading
to large areas of the
drought-stricken Western
Transvaal and this devel-
opment is being viewed
with concern.

‘The TAU released the
following summaries of
the situation in the prov-
ince’s regions:

ern ‘Transvaal:
Crop yields vary from av-
erage to very good, with
farmers at Piet Retief and
Belfast recording record
crops. Water resources
and grazing are in better
condition than last year,
although critical at
Bronkhorstspruit and
Middelburg. Stock is in
reasonable condition.
Newt ‘Transvaal: Vir-

ly no winter tin,

has taken ee the
driest areas. Tobacco and
cotton crops were below
average this season, and
Prospects are poor. Water
Tesources and grazing
vary from poor to critical,
with the Limpopo and Pa-

90

JPRS*SSA786~081
29 July 1986

SOUTH AFRICA

lala Pivers running dry.
Stock feed is in short sup-

ply.

1 @ Lowveld: There is
» plenty of water and graz-
ing in this region and
farmers are reportedly
optimistic about winter
Prospects.

Central Transvaal: Pro-
Spects are very poor in
this area which includes
Pretoria, Brits and Zee-
rust, Crops are down, in-
solvencies are up, breed-
ing stock numbers have
dropped and 80 percent
of all boreholes have run

Western = Transvaal:
Crop yields here are
worse than expected.
Water resources and graz-
ing are in a critical condit-
ion. The Ventersdorp dis-
trict agricultural union
has already applied to be
declared a drought-strick-
en area. Locusts are ham-
pering production in the
Sannieshof, Ottosdal and
Christiana areas.



IPRS*SSA*86+081
29 July 1986

SOUTH AFRICA

‘BRIEFS

CLOWU BATTLES GWU CONTROL~-The Clothing Workers Union (Clowu) is preparing its
first wajor blow against the consetvative Garment Workers Union (GWU),
affiliated to the Trade Union Council of South Africa (Tucsa). In a move
which could break the stranglehold of the GWU on the Western Cape clothing
industry, Clowu is preparing to signa vecognition agreement at Cape Underwear
Manufacturers. Through its closed shop agreement, the GWU has for years
represented the Western Cape's almost 60 000 clothing workers, mostly women.
Clowu last week signed an interim agreement with the Cape Underwear Management
allowing the union reasonable access to the workers and the right to collect
subscriptions from their members at the factory. The agreement came after
three days of negotiations, with Hilton Cheadle of the Centre for Applied
Legal Studies at the Univeristy of the Witwatersrand as a mediator. Talks
between management and the union broke down two weeks ago when three union
members at the factory were suspended for addressing the workers during their
lunch break without the permission of management. The three workers were
suspended for three months but will not lose any of their benefits, according
to the agreement. A poll to test whether Clowu had majority support at the
factory would have been held last Friday but was postponed due to the
detention of Clowu General Secretary Elizabeth Erasmus on Thursday under
Section 50 of the Internal Security Act. [Text] [Johannesburg THE NEW NATION
in English 19 Jun-2 Jul 86 p 16] /13104

CENTRAL PRETORIA DEVELOPMENT PLAN-~An ambitious draft pian has been
announced for the redevelopment of the "city core" of Pretoria at a cost
of up to R500 million. The management committee member responsible for
town planning and architecture, Mr Cor Uys, announced yesterday that the
proposals would be tabled for approval at the monthly city council meeting
on Monday. The deputy director of town planning and architecture, Mr
Fritz Kraehmer, said the proposals comprised the redevelopment of the
area bounded by Prinsloo, Bosman, Pretorius and Vermeulen streets. The
city council wanted to enter into partnership with the private sector in
developing the scheme. A small amphitheatre would be placed on the south
side of Church Square. The Paul Kruger statue would be moved to near the
entrance to the Ou Raadsaal and a fountain would become the centrepiece.
Buses would be banned from Church Square. [Text] [Johannesburg THE STAR
in English 26 Jun 86 p 21] /9317

SACC ON EXILES--More than 250 000 South Africans are living as exiles in

neighbouring territories and further afield, the director of the South
African Council of Churches (SACC) refugee ministry has said. During

60



IPRS*SSA*86~081
29 July 1986

SOUTH AFRICA

FINANCE MINISTER COMMENTS ON TAX CHANGES

MB251037 Johannesburg SAPA in English 0953 GMT 25 Jun 86

Flext] House of Assembly, 25 Jun SAPA--It was a fundamental characteristic of
every civilised country that a redistribution of wealth took place through its
tax system, the minister of finance, Mr Barend du Plessis, said today.

Replying to debate on the Regional Services Councils amendment bill, he said
this principle was in agreement with South Africa's own tax system.

The government's sensitivity in this regard was that it did not believe that
money should be labelled as "white" or "black."

As long as there was a substantial difference between the "haves" and the
"have-nots," there would be tension.

This would only be exacerbated if money was given racial labels.

The entire concept of the original act and the amendment before the House could
be summed up in the word "redistribution."

It was "extremely complicated" legislation and it was therefore not strange
that it had taken so long to be implemented.

The standing committee had had to consider about 80 amendments to the original
act.

If bodies such as organised industry and commerce took a stand in principle
against the bill they did not leave themselves the opportunity to assist in
rounding it off neatly.

It was not fair for Assocom to say it had not been given an opportunity to do
this.

Mr du Plessis said there had to be redistribution both within particular regions
and also between regions.

He was concerned about what the quality of life in the PWV area would be like
20 or 30 years from now.

62



JPRS*SSA+86~081
29 July 1986

NIGERIA

OVERSEAS BANKS DEMAND THIRTY PERCENT RESERVE DEPOSIT

Lagos BUSINESS TIMES in English 16 Jun 86 pp 1, 24

[Text]

/9317

VERSEAS
banks have
been demanding 30
per cent reserve de-
posit for every 100
per cent of credit line
extended to its
Nigerian customer a
rule that bends in
favour of the strin-
gent banking regu-
lations’ (in USA)
which insist that
debts not serviced
after 90 days
become non-
performing assets in
the bank’s books.
This new attitude
to her Nigerian cus-
tomers by overseas
trading partners is
reported to be the
consequence of the
country’s poor credit
rating and payments
habit so much so
that new banks that
were recently
exposed to the
Nigerian trade en-
vironment have
moved their credit
portfolios to the

cso: 3400/200

debt managers
desks.

It looks like the banks
abroad reached a con-
sensus a long time ago not
extend much more credit
lines to Nigeria until there
was a credible resolution
of her cash flow and li-
quidity problems.

UBA's current monthly
Business and Economic
Digest, reports that Euro-
pean banks have been
more conciliatory than
American financial insti-
tutions. For instance,
some prominent. banks in
Europe — BNP, Standard
Chartered and Barclays
Bank, are said to have
done so well in the
Nigerian market as

partners in the United”

Bank for Africa, the First
Bank and the Union
Bank, Nigeria's three
biggest banks, that they
cannot now shut the door.

vourite Nigerian com-
panies.

Because Nigeria is his-
torically of more strategic
importance t% Europe

than the US, European
suppliers and exporters
with high stakes in the
Nigerian economy tend to
exert more pressure ‘on
their home banks to keep
their business alive in the
lucrative Nigerian
market.

Meanwhile as Nigeria
battles with the mail
elements in her medium
term recovery package,
the UK club is reported to
have granted her a 90 day
moratorium on her tradé
debt, affecting debts
whose principals would
have matured some time
last April and’ next
September 30.

Perhaps, this is in
keeping in line with the
clean report of perfor-
mance whith an IMF
team that visited Lagos
last May based on Baban-
gida’s current economic
recovery package.

The team led by or.
Abubakar Quatara former
ECOWAS executive se-
cretary, was said to have
examined Nigeria’s pro-
posed Medigm ‘Term (MT)
plan and left precedent
conditionalities that
helped to resolve the im-
passe at the present level
of negotiation.