BOESAK SAYS NATION'S PRESS MUST TAKE RISKS

Johannesburg THE STAR in English 29 Oct 86 p 11

[Text]

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LONDON — Dr Allan Boesak told a meeting in London
that until South African newspapers made a strong chal-
lenge to the Government — eyen at the risk of being
closed down — blacks would continue to believe that they
“are not there to serve truth as they should”.

He said South Africa’s Press “should begin to make a
better contribution than they have been able or willing to
make up to now”.

He urged foreign correspondents in the country to
defy censorship to tell the world what was really happen-
ing. And they should employ black reporters to reflect
events and impressions in situations where white report-
ers are unable or unwilling to go.

“British newspapers must also do a little more than
they have been able or willing to do up to now.”

Dr Boesak was guest speaker at a meeting organised
by the National Union of Journalists (NUJ) to launch a
fund for a new “independent” news agency in South Afri-
ca.

STAND AGAINST CENSORSHIP

Details of the new agency and how it will operate are
sparse, but the NUJ is hoping to raise up to R60000 to
finance it.

Commenting on South African newspapers, Dr Boesak
said: “The white South African liberal Press can do
more.”

He said their stand against censorship since the start
of the state of emergency had not been “particularly
brave”.

“All these newspapers belong to Anglo American —
and they can decide to challenge the Government, Why
do they not decide to make that challenge and go to the
black people and hear what is happening in the black
areas and print the atrocities ... and let the Government
decide to close them down.

“And until they do that, I believe black people will
continue to believe those newspapers are not there to
serve the truth as they should, but to cover for white
political and economic interests.”

56

SOUTH AFRICA


LIBERIA

BUSINESSES. THREATEN CLOSURE DUE TO LOWER BASIC COMMODITY PRICES

Monrovia DAILY STAR in English 26 Sep 86 pp 8, 7

[Article by D. Emmanuel Nah]

[Text]
The Business
houses said

government did not
take into consi-

deration the
foreign © exchange
situation which

had prompted the
sharp increase in
prices.

A survey conduc-
ted by our repor-
ter on a sampling
of basic commodi-
ties yesterday
suggested a 10 to
24 percent reduc-
tion in the prices
of such consumers
items as sugar and
butter. This, the
business houses
maintained, was
causing them great
losses as they
were selling below
their profit mar-
gins.

The businessmen
noted that if the
government cannot
reconsider her
decision to have

19274
CSO: 3400/408

,the prices at a
balance level,
they would have
no other alterna—
tive but tu simply
have their busi-
nesses shut down.
They further
said that despite
the financial con-
straint faced by
the government ,
the government
should have exa-
mined the issues
carefully before
coming out with
the official price
list released this
week by the Com-
merce Ministry.
When asked as
to whether the
five dollar coin
and the previous
shortage of
“change" on the
market could be
attributed to the
increase in
prices, the busi-
nessmen, who are
mostly Lebanese

22

and Indian
i nationals, said
that the five dol-
lar coin. was
mainly hampering
-ueir businesses,
but added that
they were not
selling above
their profit mar-
gins,

“Meanwhile, some
business houses
were noticed to
be temporarily
closed yesterday
as inspectors from
the Commerce Mini-
stry inspected
prices of commodi-
ties to ensure
that the new price
list was adhered
to.

During the pro-
cess, some busi-
nessmen were
forcefully chang~
ing their prices
‘in accordance with

the Ministry's
approved — price
list.


NOTE

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given by source.

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sector; the acceptance of the principle of non-discrimination between
businessmen of all groups; legislation giving the state president wide powers
to cut through red tape and unnecessary regulations; and the successes
achieved in helping small businessmen via institutions such as the Small
Business Development Corporation.

"It is clear," said the deputy minister, “that much has been done in this
regard. There remains even more to do. But I think it is important that we
recognise that progress is being made along a planned route where the route,
the planning and the implementation are subscribed to and have the full
participation and input of the very best leadership in the private sector.

"The fourth dimension of intricate web of interrelationships is the progress
made towards privatization.

"Key areas ripe for privatization have now been identified. Those that offer
the private sector a chance of early and fruitful participation, and
simultaneously the government the opportunity to withdraw, will soon give to
our stated policy of minimizing the participation of the state in the economy.

“Fifth, in the field of industry and commerce the white paper on industrial
development strategy targets the goals and provides a comprehensive picture of
the direction for the future. In the course of continued liaison with the
private sector, policy coordination takes place through the 29 boards,
councils and other bodies falling within the ambit of the Department of Trade
and Industry.

"Among these organisations, to name a few, are the Industries Advisory
Committee, the Board of Trade and Industry, the SABS [South African Bureau of
Standards], the CSIR [Council for Scientific and Industrial Research], and the
Competition Board.

"Private sector input is substantial, since an overall 58 percent of
representatives of these institutions are businessmen contribution to
decision-making at the highest level.

"In the sixth place, our industrial strategy has led to the establishment of
the Kleu Committee to investigate the possibility of implementing
comprehensive structural adjustments to the economy, as a first step ina
review of export incentives is currently under the spotlight, to make them
more cost effective and to conform with GATT requirements.

“In the seventh place, another consequence of joint action between the private
and public sectors is seen in the recent restructuring of the Board of Trade
and Industry--following the recommendations of the Van der Horst Committee
which investigated the application of South Africa's industrial protection
policy--with an expanded staffing and much wider powers than previously.

“We can soon expect reports from them on potential avenues for import

replacement and further benefication of raw materials to satisfy the home
market and to promote exports, in line with the white paper.

65



Another form was the phasing out of shareholding by government in private
undertakings when it had fulfilled its responsibility from a development point
of view.

A fourth was the leasing of business or the granting of concessions in cases
where it was not deemed appropriate to transfer ownership foully or partially
to the private sector.

The relevant government property would be made available to the private sector
against payment, and this applied to both existing and new services such as
roads, water supply and the provision of buildings.

A fifth method was the termination of government activities, which might mean
services for which there was still a demand could be provided by the private
sector.

A sixth was the straight farming out of certain government activities.

The discussion document points out that a country's economy cannot function
properly without any form of normal regulation, but that this could in
particular circumstances restrict private entrepreneurship, the promotion of
competition and the creation of jobs.

Consequently, public institutions should continuously ensure regulations they
envisaged would restrict the healthy development of the economy as little as
possible.

The government had already taken a number of measures to effect deregulation.

A second important aspect of deregulation was that it should not result in the
mere replacement of a public monopoly by a private one in the absence of
effective competition.

Laying down general guidelines for privatization, the document said its
implementation was an ongoing process within the broader process of priority
determination, which was aimed at the most effective allocation of resources.

“Activities in respect of which production and consumption can be undertaken
efficiently by the market and price mechanism should be the responsibility of
the private sector."

The private sector had to make the largest possible contribution to the GDP,
with minimum government interference, while the public sectors contribution
should be kept as low as possible.

Privatization should also be instrumental in creating more opportunities for
individuals from all population groups to participate in the free enterprise
system to the full extent of their abilities.

A last guideline was that where possible, privatization had to facilitate the
promotion of small business development.

76



[Answer] The foreign stockholders reacted with considerable understanding and
they accept the decision made by the government of the People's: Republic of
Angola, judging by the fact that none of them were willing to try to re-open
DIAMANG, despite several appeals made to them.

The foreign stockholders' position was unequivocally maintained and recorded at
a meeting of the board of directors held on 22 October, 1985, in London, where
the shareholders, when required to back their guarantees to support DIAMANG's
continued operations by contributing technical and technological means as re-
quired under Clause 11 of the partnership contract, placed the responsibility
for solving problems squarely on the government of the People's Republic of An-
gola, mentioning long-standing security problems in the area and the company's
failure to bring costs in line with earnings.

It should also be pointed out that the motion to discuss and vote on DIAMANG's
dissolution and liquidation at the general shareholders' meeting was approved
unanimously after the stockholders reached a consensus.

[Question] How had the stockholders been taking the company's sharply falling
production over the last few years?

[Answer] The foreign stockholders repeatedly recommended improving security
and defense on DIAMANG's concessions as an absolutely imperative requirement
for successful mining operations. As is well known, DIAMANG has been a target
for UNITA attacks and destructive actions since 1983, and this has greatly
weakened the company and crippled its productivity and profitability.

[Question] Would it be possible to list the shareholders?

[Answer] The shareholders of DIAMANG, SARL, are as follows:

INTEREST SHAREHOLDER VALUE IN KWANZAS
72.21% END IAMA~UEE 1,335,794
17.44% Societe d'Entreprise et d'Investiments (SIBEKA) 301,737
1.67% Diamond Corporation, Ltd. 28,975
John S.G. Memorial Foundation 11,014
1.52% Solomon R. Guggenheim Foundation 12,716
Daniel F. Guggenheim Foundation 2,617
0.63% Pacific T. Consolidated Corporation 10,538
1.11% Morgan Guaranty Trust Company 19,289
Societes des Banques Suisses 1,955
0.42% Swiss Bank Corporation 1,320
Compagnie de Gestion et de Banque 4,125

[Question] This situation must have had an impact on the relationship between
ENDIAMA and De Beers, since the latter is the world's largest diamond mining
and trading consortium. If this impact has been negative, wouldn't De Beers
be in a position to blackmail ENDIAMA?

[Answer] As can be seen, De Beers, through its affiliate, Diamond Corporation

Ltd., in terms of interest in DIAMANG's corporate capital, was one of DIAMANG's
smallest stockholders. Its interest was a negligible 1.67 percent of DIAMANG's

12



SOUTH AFRICA

UNCERTAINTY, UNREST BLAMED FOR ECONOMIC DOWNTURN
MBO71144 Johannesburg SAPA in English 1139 GMT 7 Nov 86

[Text] Pretoria 7 November SAPA~-The golden thread running through the long
term economic strategy compiled by the Economic Advisory Council for
discussion at today's government economic conference with the private sector
was the necessity for financial discipline in future decisions and action, the
council's deputy chairman, Mr Joe Stegmann, said. In one of the opening
addresses at the conference, being held in Pretoria, Mr Stegmann, who headed
the sub-committee which drew up the strategy, said he was pleased to note from
the government's preliminary reaction that it had mainly either accepted the
recommendations or confirmed present policy was already in line with them.

“I hope that after today the proposals will carry even more weight and that
the government will accept these proposals in their entirety." It was
important that, for the first time, a comprehensive long-term strategy was
contained in one document which demanded reconsideration of priorities and
greater discipline, particularly in the financial field, in future economic
policy determination. The document essentially proposed a market-oriented
approach as the highest priority for economic growth and job creation. As far
as Mr Stegman knew, the strategy was the first one that fully accepted South
Africa as a developing country and not already developed.

“The complex nature of our society is not only acknowledged and accepted, but
proposals are also made on how the new opportunities this creates can be best
utilised.” The country's modern sector was the economy's chief driving force
and should serve to pull the third and first worlds together.

It was essential not to move away from further industrialisation in South
Africa's economy. Mr Stegmann said the council identified an important new
leg of economic strategy following the government's acceptance of blacks
urbanisation as inevitable and desirable. The stimulus this offered, if
correctly managed, could make a strong contribution to future economic growth.
The process could be termed “inward industrialisation” and it would compensate
to a large degree for the negative effects of punitive foreign measures
against South Africa. Mr Stegmann warned it would not succeed if
deregulation, particularly in the informal sector that would arise as a result
of urbanisation, was not carried through to its fullest.

71



NDPL TASK FORCE DEFENDED, CHARGED

LIBERIA

Vice Chairman on Membership, Body

Monrovia THE MIRROR in English 22 Sep 86 pp 1, 7

{Article by D. Sonpon Weah, II]

[Text]

The Task Force of the National
Democratic Party of Liberia has
37,000 members, says Mr. Wesley
Tarplah, National Vice Chairman
of Operation.

Mr. Tarplah made the startling
revelation yesterday at a
press conference held at the
NDPL head office in Sinkor.

Mr. Tarpleh who rebutted an
article published in the Suntimes
newspaper in its Tuesday, Vol. 2
No. 35 edition captioned "The
NDPL Task Force Falling Apart",
said there was no confussion and
corruption in the Task Force.

In the article, one Randolph
Payne alleged that the force was
falling apart and that the NDPL
National Chairman had consummed
the force funds.

He pointed out that Mr. Payne

had no authority to speak on be-
half of the Task Force, adding
that the executives disassociate
themselves from the statement
made by the Task Force National
Social Secretary Mr. Payne.
- He said that the National Demo-
cratic Party of Liberia (NDPL)
Task Force National Executive had
already reconmended the . suspens-
ion of Mr. Randolph Payne for ma-
king false allegations against the
Task Force.

He said that the Task Force is
a legitimate body in liberia and
that people should cop calling

for its dissolution.

- Mr. Tarpleh also appealed to
the opposition parties to inmedi-
ately follow the path of re-
conciliation, adding "we believe
in peace and stability of our
country".

Members Said to Quit Force

Monrovia DAILY STAR in English 25 Sep 86 pp 1, 7

[Text] Some 400 members of the Slipway branch of the National Democratic Party
of Liberia's (NDPL) Task Force have expressed their intentions to pull out of
the Force for what they termed as "act of vandalism" on the part of some members,



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ceremony with a small team of personal staff, Raving
left’ a: ‘tiand-over’note’, naming Ukiwe and’ others:
as ‘in charge’ during-his absence: Nigerian’ leaders
have never done this before and there have’ been
suggestions that Babangida, perhaps fearing a.coup
d’etat, or merely tired of the burdens of office, was
ready to call it 2 day.

What is certain: is“ that‘ the constant changes of
government and military command are ‘becoming
unsettling. This nionth, four new: members of the
AFRC were named; Commodore: Ndubuist Kanu,
Brig. Garba Duba, Col. David Mark (the* former
governor’ of’ Benue state and. arch-enemy : of :tradi-
tional rulers) and Air Commodore Nuruden Yusuf.
After similar shake-ups earlier and- two: cabinet
reshuffles within the year, a persistent instability in
the ruling military establishment i is‘becoming q ficult
to conceal. : °

The irony is that the SFEM, on which so iniuch:
anxiety was spent, has been implemented: with great
smoothiess: ‘The naira’ slumped at first to 4.61 to
the. dollar (the chosen’ curency of intervention); -an
instant devaluation of 228 per-cent, but by the third
week-and after the: injection of only $75m. by the
Central Bank, the rate: had stabilised at 3.5-to the
dollar. The SFEM' sweeps away the iieed-for import
licensing and: by making the’ possession of: up: to
$5000 in foreign currency legal, will ease some of the
frictions with civilians: Whether president Babangida
can’ ease some of his: increasing political problems
and the increasingly open frictions within the military
remains to-be-seen: ” e

36


SOUTH AFRICA

MUSLIM LEADER SPEAKS AT CALL OF ISLAM MEETING IN CAPE TOWN

Johannesburg THE WEEKLY MAIL in English 31 Oct-6 Nov 86 p 7

[Article by Jean Le May]

[Text]

IT was true that “a particular kind” of
South Africa was being'threatened by
“4 particular kind”. of Islam, Moulana
Faried Egsack said at a meeting in
Hanover Park, Cape Town, on
Wednesday night.

The South Africa which “detained,
exploited, confined” was.the South
‘Africa which was being: threatened:
-but it ‘was also being threatened by
liberal Christians such as Archbishop
Desmond Tutu and Dr Allan Boesak. :

“Essack, national co-ordinator for
the Call Sf Islam, was speaking at a
meeting attended by more than 2 000.
The meeting was organised by the Call
of Islam, probably the most widely
supported Muslim organisation, to
protest the NGK synod resolution last
week that Islam was a false religion.
and a threat to South Africa.

Messages of support were read to
the meeting. from Archbishop Tutu,
Dr Allan Boesak and the Rev Beyers
Naudé. Other speakers were Ds
Gertie Lubbe, who was dismissed by
the NGK some years ago and is now.
president of the World Council of
Religion and Peace in South Africa
and Dr Richard Stephens of the
Department of Biblical Studies at the
University of the Western Cape.

A representative for the Bureau for
Information said “after the meeting a
crowd of about 400 coloured people

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“were disperséd by police using
‘tearsmoke. Stones were thrown at

police and one member of the Security
Forces was slightly injured by being
hit on the head with a stone. We have
no record of any arrests.”

In his speech Essack said that since
the Call of Islam was founded two and
half years ago, all its efforts had been
towards forging unity ‘between
Muslims and Christians. He was
saddened by the fact that although
both the state and the NGK appeared
tobe moving towards reform, both
were. keeping strictly to the non-
segregationist line favoured by the
rightwing of the govérnment.and the
rightwing of the church. :

Cape Town Muslims have been
outraged by the NGK’s gratuitous
attack 6n Islam during its synod last
week. A resolution accepted by the
synod read that Islam was “a false
religion” which held great danger to
South Africa, Africa and the world.

The meeting Wednesday night
called on all Muslims to gather on the
Grand Parade on Saturday morning
and march to the Groot Kerk in
Adderley Street to deliver a note of
protest to the NGK.

Muslims have not been mollified by
a statement put out after a special
meeting of the NGK general synod
committee in Pretoria this week,
which attempted to smoothe over the

61

row. It said that the offending
resolution should in no way be seen as
an affront to Muslims, but in the
context in which it had been made,
which was during discussion of a
motion deploring: the number of
young black and coloured converts to
Islam. .

The resolution which caused all the
trouble was proposed by Ds Stoffel
Colyn, chaplain general to the SAP. It
called on church members to “witness
to the gospel: of Jesus Christ .in all
areas as the only answer to the
onslaught of Islam”.

The synod accepted a motion
expressing concern that many young
black and coloured people, especially
after 1976, turned to Islam “as an
ideology which furthered the freedom
struggle”.

Essack was critical of Muslims who
became members of the tricameral
parliament. As for criticisms that the
NGK’s resolution had embarrassed
Muslim members of the SA Police
force, there were no Muslim
policemen, he said. “Any Muslim who
joined the police force was asked to
resign or leave the faith.”

In an interview before the meeting,
Essack said it was true, as the NGK
had alleged, that “young blacks and
coloureds” had been drawn to Islam,
but. “not in any large numbers”.



LIBERIA

BRIEFS

DEATH PENALTY FOR ARMED ROBBERY--The Liberian Senate has passed a bill amend-
ing chapters 14 and 15, as well as sub-chapter (c) of the New Penal Law of
1976, making the crimes of armed robbery, high-jacking and terrorism punish-
able by death, Under section 14.80 of the new Act, it is stipulated that any
person convicted of terrorism shall be sentenced to death by hanging, while
section 15,32 of the Act makes armed robbery a felony of the first degree, also
punishable by death by hanging. A Capitol Building release issued here said
section 15,33 (2) of the Act stipulates that highjacking is a felony of the
first degree punishable by death by hanging. ‘Section 15,33 (3) provides for
people charged with highjacking to be tried in the courts of competent
jurisdiction in Liberia. The new bill is expected to be sent to the House of
Representatives for concurrence after which it shall be forwarded to the Presi-
dent of Liberia for executive approval, the release said, [Text] [Monrovia
DAILY OBSERVER in English 26 Sep 86 p 3] /9274

NEW AIRPORT SECURITY CHIKF--Mr Spencer 0, Edris has been appointed Chief of
Security at the Roberts ‘International Airport (RIA) in Margibi County, An
Executive Mansion press release issued: Monday said he replaces Major John
Krakue who has been directed to report to the Ministry of Defense for re-assign-
ment, No reason was given for the change, [Text] [Monrovia DAILY OBSERVER in
English 2 Oct 86 p 3] /9274

cso: 3400/407

32



SOUTH AFRICA

OFFICIAL OUTLINES ECONOMIC PLAN
MBO51623 Johannesburg SAPA in English 1226 GMT 5 Nov 86
[Quotation marks as received]

[Text] Johannesburg, 5 November, SAPA--Government is set on a meticulously
planned course to restructure South Africa's Society--and is not
directionless-~said Mr Kent Durr Deputy Minister of Finance, at the annual
convention of the Federated Chambers of Industry today.

Addressing the conference on "Economic Prospects in a Sanctions Environment,”
Mr Durr there was a sea-change in the government's attitude to the private
sector which was not sufficiently recognised. “This may be because it cannot
easily be backed by chapter and verse; but to my mind it is one of the leading
plusses in our present equation.

“Not that it hasn't found expression in concrete form, Mr Durr was quick to
add. For instance: "One has only to look to the following to see what
striking progress has already been made:

First, the Economic Advisory Council of the state president has designed an
overall economic strategy which will provide a global perspective on economic
policy measures. This will serve as an integrating force guiding various
policy making bodies. The council is also working on a strategy for the
reconstruction of the agricultural sector.

Second, the Margo Commission has almost completed its comprehensive review of
the tax system. The commission's recommendations have a vital bearing not
only on tax reform in South Africa but also on our ability to maintain or
improve our international competitiveness. A parallel lies in the European
countries, where tax reform is at the moment viewed as an urgent priority in
order to maintain competitiveness with the United States.

Third, the implementation of the strategy for the development of small
business and for deregulation is well under way. Areas affected thus far
include: the establishment of a new form of business enterprise in the shape
of the close corporation; the introduction of new standard national building
regulations; the deregulation of business hours and of certain aspects of
liquor affairs; the opening up of central business districts to all population
groups; the abolition of influx control; the acceptance of the informal

64


DE BEER DISCUSSES BLACK EDUCATION CRISIS

Johannesburg THE STAR in English 24 Oct 86 p 11

SOUTH AFRICA

{Interview with Deputy Minister of Education and Development Aid Sam de Beer’
by David Braun; date and place not given]

(Text]

Question: What do you say to
claims that you have lost con-
trol of black schools?
De Beer: That is simply not
true. We are experiencing
problems in the Johannesburg
area and in the eastern Cape.
But in the great majority of
areas in the country education
is quite normal.
_Education is being affected
* in 250 to 300 schools out of
7300. Only 33 schools have
been closed.

I don’t say this to give you
the impression that I'am blasé
about this. If only one child is
not in school it is serious.

However, we have certainly
not lost control of the situation.

Thousands of matriculants
have enrolled for their final ex-
aminations.

Question: The Government has
been asked to hand over the
schools to the black communi-
ty. Would you be prepared to
“consider this?

De Beer: This has been stated
by the National Education Cri-
sis Committee (NECC) and it is
not something that. we believe
should be discussed through the
media. However, what do they
mean when they say schools
should be handed to blacks? It
has always been our view that
the black community should be
involved in education.
Question: Is it not Government
policy that education is an Own
Affair, and if this is so when
can we expect blacks to be able
to take over the administration

19274
cso: 3400/390

of their own education?

De Beer: I am on record as
saying that eventually the min-
ister. in charge of black educa-
tion will be black.

However, there will not be a

transfer of black education to
black administration _ until
black political aspirations have
been accommodated in a satis-
factory manner at central
level. Z .
Question: How do you react to
charges that you are insensi-
tive to the request for talks
with the NECC?
De Beer: I have agreed to talk
to the NECC, but because of
the obviously important issues
that they want to discuss I
have asked them for a memo
randum of the points to be
raised.

The NECC agreed to send a
memorandum, a few days. be-
fore the meeting, so that I
could prepare and respond
meaningfully.

However, they wanted a date
to be agreed and for “certain
obstacles” to be removed.

(The obstacles included the
immediate release from deten-
tion of the NECC leadership
and students, and an assurance
that those NECC leaders cur-
rently in hiding would not be
detained by the security police.

The NECC further wanted
permission to have access to
the pupils in the form of meet-
ings to get a mandate from
them and from parents.)

I informed the NECC that I
had noted these obstacles but
that these matters fell outside

42

the ambit of this Ministry. and
therefore could not be regard-
ed as a prerequisite for a pro-
posed meeting.

We have not been in the least

intransigent on this issue.
Question: What do you feel
about “people’s education”?
De Beer: We have always said
that if ‘people’s education
means education which is more
relevant for the children, if it
can prepare them for work, if
it can make a contribution to-
wards making them good citi-
zens of South Africa, then we
are prepared to sit down and
discuss how we can best
achieve these aims.

However, if people’s educa-
tion is a strategy to provide in-
fantry for the revolution then
we are opposed to it.

Question: Is there no way the
authorities can approach the
education crisis within the
broader framework of griev-
ances of the black community,
and not just from the point of
view that this is an educational
concern? ub
De Beer: I believe we will not
be able to find the end solutions
for education until reasonable
political aspirations of blacks
have been satisfied. There can
be no doubt about that.

It is also very important that
we depoliticise black education
by upgrading the quality of
education.

The Government is commit-
ted to providing equal educa-
tional standards and opportuni-
ties for all the children of this
country.



SOUTH AFRICA

FIRMS RELUCTANT TO DECENTRALIZE AS ECONOMY SLOWS GROWTH

Johannesburg BUSINESS DAY in English 31 Oct 86 p 7

{Article by David Furlonger]

[Text]

19274
cso:

DEMAND for industrial incentives to set
up shop away from the country’s main:
centres is continuing to grow only slowly.
The Decentralisation Board’s 1986 annual
report, released: yesterday, shows the!
board approved 1 243 applications for in-
centives during 1985-86, an. increase of
only 2% on the previous year. :
Board officials are quick to point out,
however, that if all the applications are
followed through, they could create more
than 87 000 new jobs, a 13% rise over 1984-
85. Nearly a quarter of those could come
from foreign investment. Officials say 92
foreign firms —‘double the level of two
years ago — applied for incentives and
could provide 20000 new jobs.

Another point of pride for the board is”

_ that applications are becoming more la- ,

bour-intensive. The investment-per-job
level is decreasing, indicating “that la-—
bour-intensive undertakings are estab-
lished to an increasing extent under the \
scheme”. ; ; '
Government officials blame the poor
economic climate for the slow growth in
demand for decentralisation incentives.
The report adds: “It should also be taken

into account that the figures for the pre- :

vious year, which serve as a basis for
comparison, were exceptionally high.”

This argument does not ring quite true.
Applications approved in 1984-85 grew by
only 2% on the Previous year. The expect-
ed investment by companies seeking in-
centives actually fell 2%. This year it rose
10%, to Ri,3bn.

Since government introduced its latest
regional industrial development strategy
in 1982, the Decentralisation Board has
approved 4423 applications from com-
panies seeking incentives.

Those incentives include freight trans-
port rebates, contributions to salaries,
rental and electricity concessions, tender
price preferences, housing and training
subsidies, and even a relocation allowance
to move from one part of the country to

3400/396

another. ;

Geographic spread

By the board’s reckoning, its activities |
have created 299 000 potential new jobs
and attracted R4,8bn in investment. Its
critics, however, say many of those jobs
-would have been created anyway and that
it was simply a matter of where. ’

What critics cannot dispute is that those °
jobs have gone to areas: that otherwise
would see little industrial development. '
While simple economics continues to dic- '
tate that most new industries prefer to be i
based close to their main markets on the *
Witwatersrand, decentralisation incen-;
tives have undoubtedly led to a geograph-
ic spread of the industrial base. ;

Some 79 companies had applications ap-
Proved last year to start business in East.

don, and another 67 in Port Elizabeth.
At Isithebe, in Natal, application appro-
vals could bring 9500 new jobs to the

The development level in these areas is.
in line with government hopes that indus-
trial decentralisation will itself become
more centralised.

A common criticism of the policy has
been: that, with nearly 50 identified indus-
trial development points, the cake is
spread too . Too many its have,
been established for geographical conve-.
nience rather than practical need.

This is slowly being cured by natural
demand. Six development points — East
London, : Isithebe, eni (KwaZulu),
Phuthaditjhaha (QwaQwa), tshabelo
(Free State) and Atlantis (Western Cape)
— accommodate nearly half of total de-
centralised development.

According to a senior doard official re-
cently: “We want development on a prior-
ity basis at a few development points. You
won't have success if the development
point doesn’t have some kind of economic
viability of its own. The aim eventually is
to phase out non-viable ones.”

84


"He told me about the unique way in which the MPLA treats its war wounded:
since it has little time in which to treat them, certain slight injuries to
legs or arms are treated by amputation when the victims are not simply
abandoned to their fate. The same doctor told me it was imperative for a
delegation upholding human rights or even the International Red Cross to check
out the conditions in-which the MPLA's wounded are ‘treated,’ because the best
treatment is channeled to the Russians and Cubans."

Manuel Monteiro's final impression of his 20-day visit to Angolan territory
controlled by UNITA is that "the Portuguese Government cannot continue to
ignore the strength and established presence that Jonas Savimbi's movement now
has in Angola." ‘

The CDS deputy added: "Ignoring UNITA is not the best way to protect
Portuguese interests and the interests of our compatriots who have returned
from Angola. It did not ask us to support it publicly; it only wanted
Portugal and the Portuguese not to forget that Angola is at war and that its
young people are entitled to a better future."

Savimbi Message to Youth
Lisbon O DIA in Portuguese 11 Sep 86 p 4

[Excerpt] Almost coinciding with Prime Minister Cavaco Silva's statements in
Washington concerning support for UNITA, Centrist Youth held a meeting with
reporters yesterday to present them with a message sent by UNITA leader Jonas
Savimbi to Portuguese young people.

The message reads as follows:

"This war is leading Angolan young people to their deaths. The Russians and
Cubans who are in Angola are using their lives to rob and mistreat our people.

"Portuguese young people, who are living in peace and freedom, cannot remain
silent in the face of this situation. Our young people want to live in
democracy, freedom, and harmony. Our young people who are combating communist
tyranny and dictatorship by giving up their lives for a free Angolan
fatherland are hoping for solidarity and support from Portuguese young people.

“We want peace, and we want our young people to have the future they deserve.

"you who have freedom and peace must raise your voices to demand that the
Russians and Cubans leave our fatherland so that all of us can live hand in
hand."

The chairman of Centrist Youth, Manuel Monteiro, has just returned from
Angola, where, at UNITA's invitation, he attended the congress held by Jonas
Savimbi's movement and visited several bases in Angolan territory. As i
known, the congress was held in the town of Jamba, which UNITA considers “thi
provisional capital of Angola."

Ss
1e



ZIMBABWE

First Documentation of Beira Corridor Project Released
(THE FINANCIAL GAZETTE, 10 Oct 86)...cseccccrecverceececee

Army Tactical Trainer System Unveiled
(Willie Zweni; THE HERALD, 18 Oct 86)..-+seccecccccecceee

Army's Command, Staff.Course Opens
(THE HERALD, 18 Oct 86).....ccecesccccecceeeceees

6 Brigade Training Set for January
(THE HERALD, 18 Oct 86)....cecesccccecerccccccscseccccess

SOUTH AFRICA
AFRIKANER/ GOVERNMENT

De Beer Discusses Black Education Crisis
(Sam de Beer Interview; THE STAR, 24 Oct 86)....-..eeeees

Police Saluted for Bravery, Loyalty
(THE STAR, 31 Oct 86) ....ccececesccccencccnscercscnececes

First Indian, Colored Women Recruited for Navy
(POST NATAL, 29 Oct-1 Nov 86)....cceeccceccccccceecescees

Role of Navigator in SAAF Explained
(AD ASTRA, Oct 86) ...ccccsccecceccccescncrcecsteewesesses:

Rolls Royce Griffon MK 57 Engine Displayed at Air Depot
(Jonathan Cleland; AD ASTRA, Oct 86)......cccecceccccsses

Briefs
AWB Feeding Plan Underway

BLACKS

Security Measures for Port Elizabeth Townships
(THE NEW NATION, 23 Oct—5 Nov 86) ..sccececceccccccccccvee

Urgency of Black Property Right Stressed
(Sol Makgabutlane; THE STAR, 30 Oct 86).....sccecccesooee

Township Developers No Longer Need Ministerial Approval
(THE STAR, 30 Oct 86)....ccccececscscecccecsccccscecsceee

Some Members of Special Constable Force Allegedly Forced Into Job
(GRASS ROOTS, Oct 86) .cccecceccececcasccccncascencevceses

37

39

40

41

42

43

44

45

47

48

49

50

51

52



ZIMBABWE

ARMY TACTICAL TRAINER SYSTEM UNVEILED

Harare THE HERALD in English 18 Oct 86 p 1

{Article by Willie Zweni]

[Text]
‘A UNIQUE tactical trainer, described
as probably the most flexible in the

world and designed and built in Zimba- *

bwe, was yesterday commissioned at '
army headquarters in Harare by the
Prime Minister and Minister of De-
ence, Cde Mugabe.

‘The trainer, designed by the Min-

istry of Public Construction and Na- -

tional Housing through a team of

architects and BMATT officers and.

built at a cost of about $300000, is
housed at a new Mugabe Hall at the
KG6 barracks. ~
- TM“ A tactical trainer: is a system in
-which maps, and electronic equipment
are used in the assimilation of real
life situations ang allows the effects
of all. options to be seen so that offi-
cers can know which are the best
. tactics to be pursued in given situa-
} tons.
The Zimbabwe National army tacti-

cal trainer ig unique in the world be- :

cause it is capable of training individual
soldiers and the whole army or brigade
headquarters at one time,

The Herald was told that most tacti-
cal trainers in the world could train
just one battalion at any one time.

Sophisticated ,electronic equipment

in the trainer, installed by the Elec- ;

tronic Designs and Sales as one of the
company’s contracts with the army,
include a simulated radio net system
which is not normally used in such
military tactical trainers.

Adso installed are sophisticated electro-
nie clocks with remote displays, random
number generators to aid war games
ag well as decision-making and ‘battle
noise devices. Television circuits could

19274
cso: 3400/388

39

also be used to improve the trainer.

Commissioning the trainer, Cde Mu-
gabe said the inspiration ang effort put
into “this unique facility” would ensure
enormous enhancement of exercises to
be carried out for command and staff
cotrses ag well ag visiting units and
formation headquarters.

Rarlier, the acting Minister. of
Public Construction and National | Hous,

vated and converted KG6 Beit Hall
t6 the Minister of State (Defence), Cde
- Ernest Kadungure. ~

On the trainer, Cde Karimanzira
said initial briefing and sketch plans.
had been prepared in March last year, |
‘but. actual implementation of .
project had to be delayed because sts
was not a case of updating existing
designs or carrying, out research into
previous similar projects”.

Said the minister: “There zeemed to
be no precedent for the design we
wanted — certainly not in Zimbabwe ,
and not, to my knowledge, in Africa.”

Construction finally began at the
end of last year and was completed in
August this year.

Cde Karimanzira said the
munications vehicle shed built behind
the tactical trainer would “add cot
siderably’ to the simulated battle con-
ditions which we" have endeavoured to.
attain”.

On the Beit Hall, he said the build-
ing had previously been under-used and
that the BMATT haq managed to per-
suode the army commander that it
would adequately -serve tho needs of
the staff college if it was cofiverted
into a lecture theatre.



SOUTH AFRICA

ASSOCOM, FCI COMMENT ON BUSINESS CONFERENCE
MBO71916 Johannesburg SAPA in English 1910 GMT 7 Nov 86

[Text] Johannesburg, 7 November, SAPA--Talks today between the state
president and the barons of commerce and industry were necessary, and would
help beef up business confidence in this strife-torn country, according to two
business organisations.

The Association of Chambers of Commerce of SA [ASSOCOM] and the SA Federated
Chamber of Industries [FCI] however, said business confidence would be boosted
only when both political and economic problems were addressed too.

In a joint statement the leaders of the two organisations--FCI President Dr
Hugo Snyckers and ASSOCOM President Mr Harold Groom--said that “the
organisations consider that economic performance and political reform are
totally interdependent in South Africa, and that both the government and the
private sector will urgently have to promote policy steps that recognise this
reality.”

This would include the effective implementation and continuous review of a new
economic strategy, privatization and deregulation, the statement said.

The organisations also stressed on the need for:

--"A socially responsive market economy, particularly sensitive to the needs
of less privileged communities.”

--"The complete elimination of racial discrimination at all levels of South
African society."

They also emphasised the need for “a visible process of negotiation between
white and black political leaders to create ultimately a non-racial de-
mocracy--linked to the private enterprise ethic--in South Africa."

/12913
cso: 3400/399

70



SOUTH AFRICA

REPORT NOTES NEGATIVE IMPACT POTENTIAL OF WAGE PARITY
MB031323 Johannesburg SAPA in English 1307 GMT 3 Nov 86

[Text] Johannesburg 3 November SAPA~-The black-white wage gap is still large
but declining at a growing rate. Although this is in line with national
policy, it could have a detrimental impact on black interests if “certain
conditions are ignored...” This caveat emerges in the latest “Financial
Perspective” of the department of Finance, just released.

The report notes that average wages for all groups of the population rose by
some 12 percent a year during the late 1970's and by about 18 percent a year
thereafter. "If the average annual wages of the population groups are
expressed as a percentage of the average annual wage of the whites (which have
the highest average wage), the income differential in terms of this
comparative base is still large but declining," says the report.

“When comparing wages and incomes it must be remembered that the quality of
labour is not homogeneous. Having moved from the traditional subsistence
economy into a modern industrial economy at a fairly recent stage, blacks
generally have not yet attained the levels of training and experience that
would qualify them to fill managerial and other highly skilled posts. They
predominate in the semi-skilled and unskilled categories of work, and this
position is reflected in the unequal levels of average wages shown (in the
tables in the report). It is the aim of South African Government policy to
reduce the income differential between the various population groups. The
raising of the income of black labour is, however, related to certain marginal
conditions. If these conditions are ignored, the raising of black income will
actually have a detrimental effect on the interests of the blacks.”

/12913
cso: 3400/399

79



061076
JPRS-SSA-86-120
4 DECEMBER 1986

Sub-Saharan Africa Report

(9980213 160 “aes,

DISTRIEUTION STATEMENT X~
Approved for public release;
Distribution Unlimited |

FBIS;} FOREIGN BROADCAST INFORMATION SERVICE

| REPRODUCED BY

| U.S. DEPARTMENT OF COMMERCE

| NATIONAL TECHNICAL, <a
INFORMATION SERVICE ha)
SPRINGFIELD, VA. 22161 A

Age



Foreign Minister Rejects Cuban Troop Withdrawal. Linkage
(DAILY OBSERVER, 7 Oct 86).....cececeeceeeees see ecceeeeee

Immigration Commissioner Decries ECOWAS Protocol
(John Lloyd DAILY STAR, 2 Oct 86).....cceceseceeecscvcece

Businesses Threaten Closure Due To Lower Basic Commodity Prices
(D. Emmanuel Nah; DAILY STAR, 26 Sep 86).........- wteceee

Investment Commission Verifies Foreign Investment Contracts
(Nyenati Allison; DAILY OBSERVER, 7 Oct 86)...... sete eeee

JFK Medical Center Retrenchments
(DAILY ‘OBSERVER, 20 Oct, 30 Sep 86; NEW LIBERIAN,

D9 Oct 86). scececssccececccecccccsccecvessssecssesseseeees

Police Remove Protesting Workers
Checks Being Disbursed
Doe. Intervenes, Reinstates Workers, by Joseph Teh

University of Liberia Teacher's Strike
(DAILY OBSERVER, 1, 8 Oct 86;. THE MIRROR, 2 Oct 86)......

Slow Down Turns to Strike, by John F, Lloyd
Partial Arrears’ Payment, Slowdown, by Kolec Ed Jessey
Student Groups Intervene, Classes Resume

NDPL Task Force Defended, Charged
(THE MIRROR, 22 Sep 86; DAILY STAR, 25 Sep 86).........4.

Vice Chairman on Membership, Body
Members Said To Quit Force

Student Groups Protest Tuition Hikes
(DAILY OBSERVER, 26 Sep, 2 Oct 86).....ssseseeeees se ceeee

Student Integration Movement Objects, by John Lloyd
Student Party Begs Reconsideration

Briefs
Death Penalty for Armed Robbery
New Airport Security Chief

NIGERIA

Akinyemi Cited on Israel, Other Foreign Policy Issues
(Lagos Domestic Service, 7 Nov 86).....sscccscceeees seeee

AFRC Wranglings: Promotions, Demotions, Shake Ups
(AFRICA CONFIDENTIAL, 15 Oct 86).......cecesecececececeee

20

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24
25
25
26
26

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34



Partial Arrears Payment, Slowdown

Monrovia THE MIRROR in English 2 Oct 86 pp 1, 6

[Article by Kolec Ed Jessey
[text]

Despite the disbursement of
their July salary cheques,emplo-
yees at the University of Liberia
continued their workstoppage whi-
ch they termedas"go-slow" yester-
day.

The employees who are compos-
ed of mainly drivers and the ad-
ministrative staff, on last Tues-
day put down their tools in dema-
nd of salary arrears and the re-
fund of insurance premiums which
were allegedly never paid to the
American Life Insurance Company '
(ALICO), their insurer.

Students were yesterday roaming
around campus as the support sta~
ff and drivers refused to report
to work and to transport the
students to Fendall campus there-
by disrupting classes.

However, the administration ye-
sterday morning paid the employ-
ees their July salaries. It is

not. known as to whether the worke-.

rs went to the bank to encash th-
eir cheques which resulted into
the disruption of classes.

One employee who preferred -not
to be named, observed "the one
month salary was too small to
cater to all our needs since we
are already indebted} adding,we
will continue our "go-slow" acti~
on until the administration meets
up with a substantial part of our
demands."

When salary is delayed,the value
depreciates because you are already
indebted and moreover, you will

27

.are students of the Univeristy

have to buy your needs for at least
the next three months when you hope
to be paid" muttered one administra-
tor, Another employee said,"the
one month salary is too small."

All attempts to contact the UL
administrative was to no avail as

they were said to be in a meeting at

‘the time. However, the Comptroller,

Mr Francis Johnson refused to make
any comment to the press, but ref-
erred our reporter to Dr. Morris,
president of the University.

The employees who were also holding
a meeting in the auditorium of — the
University refused to allow reporters
in because one worker argued,"you
and
not workers."

One of the concerned employees after

_the meeting explained that the U.L.

administration has since July 1,1976
deen deducting insurance fees from
the workers, even after the insurer,
ALICO had terminated the University

service last August because of
the administration's failure to
live up to the term of the agree-
ment. .

In an interview with the Presi-
Jent of the University, Dr Jose-
ph Morris upon his return from
Italy and the United States, Dr
Morris said that due to insuffic-
ient funding of the University
vy the Liberian government to
reet its payroll, the UL adminis-
zration paid other employees from
che deducted insurance fees."This
is why we are being delinquent to
‘\LICO"Dr Morris noted.



DEBTS BEING PAID OFF AT INCREASING RATE

Johannesburg BUSINESS DAY
{Article by Gerald Reilly]

[Text]

19274
csO: 3400/395

in English 31 Oct 86 pl

SOUTH AFRICANS were paying off
their debts at an increasing rate and
fighting shy of getting too deeply in-
volved in credit buying, said Dun
& Bradstreet marketing director Paul:
Edwards.

However insolvencies had sharply in-
creased in the past three years. Edwards
said a downward trend in the numbers
being summoned for debts was emerging
for the first time in months.

It appeared consumers had learnt a
lesson by playing fast and loose with the
easy credit available two to three years
ago. The trend was supported by the
ratio of savings to disposable incomes.

It was apparent that people were pay-
ing more into savings accounts, rather
than increasing their credit commit-
ments.

It was significant, too, that consumers
appeared not to be abusing the ample
credit available at commercial banks
and financial institutions.

Another indication was that HP lend-
ing in the first half of the year was down
on the figure for the same period last:

year. In August 63572 debt summonses‘

were issued compared with an average
monthly total last year of 67 750.

‘This year’s peak was in April when
74.450 summonses were issued. Edwards
said the number of debt judgments were
slightly down in August — 31 884 com-
pared ‘with a monthly average in 1985 of
33 250.

This year’s peak was in April at 37 663.
The amounts involved in the judgments
were also falling.

In august the total was R58,703m,
down from a peak of R71,303m in July.
The average monthly figure last year
was R47,916m.

86

SOUTH AFRICA



SHARP RISE IN SPENDING BY CONSUMERS

SOUTH AFRICA

Johannesburg BUSINESS DAY in English 29 Oct 86 pp 1, 2

{article by Gerald Prosalendis]

[Text]

REAL gross domestic expenditure

| (GDE) increased at a staggering an-
nual rate of 20% in the third quarter
of the year, confirming that SA’s eco-
nomic upswing, which stumbled in
the first half of the year, is now well
under way.

“The increase in GDE reflected a re-
versal of the drawing down of inven-
tories of earlier quarters and a mild
further recovery in private consumer de-
mand,” says rve Bank Governor
Gerhard de Kock.

And manufacturers of durable goods,
such as clothing and household furniture,
are reporting sharply higher sales. A fad-
ing consumer boycott has added impetus
to the trend, they say.

For example, ars, the consumer-
based clothing retailer, pushed up sales
by 24% to R423m (R34im) for the 26

Real Gross
Domestic Spending

% change

20%
ed aad

48%

5.3%

i 1985 1986} H i |

Gold & Foreign Exchange
sim Reserves -

cag 2" FeO Mar For Way Tun Tul Aug Sep Oct |

weeks to September 28. MD Vic Ham-
mond says consumer spending has re-
vived strongly, particularly in the black
market. 5
Real gross domestic product (GDP)
increased by 2% to 3% in the third quar-
ter, according to preliminary official es-
timates. Also, the rate of decrease in real
ivate fixed investment decelerated in
ie third quarter. .
“Real gross fixed investment by gov-
ernment and Public corporations stabi-
lised at a fairly low level after severe

cutbacks in capital programmes in the

first half of the year,” says De Kock.
Other developments which point to the
recovery gathering momentum include:
OThe announcement by Sats of a net
surplus of R94m in the six months to
September and a R200m profit reversal,
compared with the same period last
ar. It now expects to turn last year’s
7m loss into a R150m profit over the
next six months.
O Wholesale sales in 1980 prices, which
declined until May, increased in the sub-
sequent four months. In September,

81



Because of the "arcana" it possesses, international politics is by nature a
secretive or discreet area. It may be that domestic public opinion is unaware
of factors which, from the standpoint of national interest, justify or even
require a tactical or strategic shift. It may even be that the idea that
nothing in the Angolan struggle is going to change over the next few years
justifies a rapprochement with the MPLA, on which, after all, the big
contracts governing exports, investment, or technology transfer depend.

The only thing is that a few doubts and a few certainties must manifestly be
considered in this connection. To exemplify, some of the doubts are these:
does Portugal's negotiating power with respect to Angola increase or decrease
as a result of "alignment" with the government in Luanda? Is it true that
"the pressures being exerted on the MPLA by UNITA" are having a moderating
effect on Soviet influence--whether seriously or not--or, on the contrary, can
it be that if there were no guerrilla warfare, Angola would be a kind of Ivory
Coast? Does Portugal's national interest require relations with whoever is in
power in Luanda or require that we support the MPLA? In other words, is
Portugal's foreign policy in relation to Angola a matter of "Realpolitik" or a

policy based on ideological vectors?

There are also a number of certainties which seem undeniable. For good and
for evil, the PSD [Social Democratic Party] was once the party enjoying
privileged relations with UNITA, but it is now losing that status to the CDS
{Social Democratic Center Party] and the PS [Socialist Party]. Portuguese
voters with ties in Africa, who carry decisive weight in domestic political
solutions, were showing a significant tendency to vote for the PSD after again
taking refuge in abstention following the death of Sa Carneiro or, in some
cases, supporting the CDS, Whether rightly or wrongly, those voters are
strongly opposed to the MPLA and FRELIMO [Mozambique Liberation Front], and it
is no accident that the first forceful criticism of Cavaco Silva that I have
heard on that subject over the past few months has come from areas that vote
for the PSD.

Beyond those doubts and certainties, one thing seems certain. One of the
basic reasons that could justify the Portuguese Government's apparent shift in
tactics or strategy is the idea that a neutral position on the Angolan
internal struggle has the effect of harming Portuguese economic interests and
even its interest in protecting Portuguese who are still working in the area
controlled by the MPLA. That is why the advocates of a rapprochement with
Luanda usually claim that the opposite thesis is pure idealism, that it is
expensive, and that a small country cannot afford to implement it on the
external level, especially when dealing with issues and areas that are a
priority in its policy.

Let it be admitted that that is true, at least as a hypothesis for argument.
And if it is true, the logical consequence is that a political rapprochement
with the governments in Angola and Mozambique will have the effect, first of
all, of turning Portugal into a privileged interlocutor for those governments
and turning Portuguese firms into obvious and favored partners in economic
relations, not to mention an immediate end to the generally unpunished and
tolerated violations of the most basic human rights of Portuguese working in



SOUTH AFRICA

TOWNSHIP DEVELOPERS NO LONGER NEED MINISTERIAL APPROVAL

Johannesburg THE STAR in English 30 Oct 86 p 11

[Text]

Ms Strelitz says the Black
Communities Development
Amendment Act of 1986 makes
provision for the following:

@ In the past a township deve-
loper had to be approved as.
such by the Minister of Consti-
tutional Development and
Planning — this is no longer
necessary. Anyone who wishes

to develop a township can pur- .

‘sue such activity.

@A private owner of land —
for example, a farm portion —
can reguest that a Minister

19274

CSO:

3400/387

designate that land as “de-
velopment area” (that is, for
“development for. blacks) and
then establish a township and
sell sites and housing direct to
the community. So the private
sector is now being helped to
bring land on to the market
directly. There is now no need
to rely solely on public sector
land supply.

@The regulation of township
establishment should provide
an envirdnment of certainty
for the developer, encouraging

51

him to risk his capital and es-_
tablish townships. In the past |
there was no regulation of the ‘

Process,

@ With the situation as it now
stands, all blacks, including cit- .
izens of Transkei, Bophuthats- '
wanana, Venda and Ciskei, can
purchase on leasehold or full
ownership in black “develop-
ment areas”. This will cut out |
the red tape that previously ap- «
plied to sales of sites and hous- .
ing. To the extent that sales
can proceed quickly the deve- _
Joper can ensure a viable cash ‘
flow on a development and so
stay in business and produce .
serviced land and housing. .
@ An important feature of the
Amendment Act and Regula-
tions is that 99-year leasehold
title can be registered before a
site is surveyed. This means
that, while the developer is
proceeding with his township
application, he can sell proper-
ties on 99-year leasehold at a
very early stage with positive
cash flow result.



SOUTH AFRICA

ADVICE OFFICE FORUM SPEAKS OUT ON BEHALF OF UNEMPLOYED
Cape Town GRASSROOTS in English Oct 86 p 6

[Text] Focus on Unemployed

“THE plight of the unemployed has comé under the

spotlight with a special focus organised by the
Advice Office Forum, an umbrella body of 14
advice offices.

The focus started in Mitcheils Plain on Staturday
October 4 with a fun run for the unemployed,
organised by the Mitchells Plain Advice Office. The
advice office continued their activities for weeks,
having health screenings to check the effects of
unemployment on. people’s health and also other
programmes to educate people about the reasons for

Activities also took place throughout the Western
Cape. Soup kitchens were run in some areas and
church services were held in Manenberg Heideveld
and Mitchells Plain. A common prayer for the
unemployed were held at mosques throughout the
Western Cape. .

A major chufch service, to which people from all
over the Western Cape would be invited, was
planned for Sunday October 19.

A press statement by the AOF said the campaign
had been endorsed by a number of organisations,

unemployment.

"Scrap Arrears’

UNEMPLOYED people
have raised many de-
mands in their visits to
advice offices, say ‘the
‘Advice Office Forum.

These demands include:
@ Unemployment bene-
fits should be increased
from the present 45 per-
cent of the person’s sal-
ary.
© The period of receiving
;unemployment benefits
should be extended for
more than the present six
months. .
le Pay-out offices should

be easily accessible. For
example, post offices
and civic centres could |
be used.

© The waiting period for
unemployment benefits
should be let. then the
present three months.

@ The Unemployment
Insurance Fund (UIF)
should be better admin-.
istered to the benefit of
the people it is supposed
to serve.

@ Rent and’ clectricity
arrears should be scrap-
ped for unemployed
people.

including churches, trade unions, community and

health organisatio

© Unemployed people

_should not have to pay

rent.
@ Unemployed people
should be allowed to

travel free of charge on-

all public transport.
© Water accounts of un-
employed people should

be scrapped, for example.

in Atlantis where many
people are on the tricle
water system.

© Overtime should be
banned and workers
should work a 40-hour
week so that more peop-
le could -be employed.

93

THE government were
trying to:play down the
number of unemployed
people, even though they
have been forced to ack-
nowledge it as a major
problem.

This was said by the
Advice. Office Forum
who claimed the govern-
ment’s official figure for
unemployed people fail-
ed to consider a number
of factors.

Recently two acade-
mics found that a numb-
er of unemployed people
in South Africa could be
as high as six million. the
government has consis-
tently given a figure less
than one million.



The government's proposals for deregulation and privatization to be discussed
at today's conference were thus timely and vital to the success of the long-
term economic strategy. Mr Stegmann said the rural sector and the promotion
of small business also received particular attention in the strategy.

The recognition of the interdependence between economic and political factors
in South Africa's society were fundamental to the strategy's future success.
“There are mischievous people who would drive a wedge between the private
sector and the state and who would like to see today's conference declared a
failure and a waste of time. I think the conference gives us the greatest
opportunity we have had for a long time in the relationship between business
leaders and the government to establish a new confidence in the economic and
political future of our country and a new hope of a brighter future for the
lesser privileged." “The basic ill of our economy in recent years was a lack
of confidence fuelled by uncertainty and by the simmering unrest," he said.

Acceptance by all delegates of the long-term economic strategy and of a
constructive plan towards privatization and deregulation was the catalyst for
a new confidence among businessmen and a new hope among all who were looking
for social, economic and political advancement in the developing sector of
South Africa's society. "Those who would like to see this conference fail,
wish to describe businessmen as having been set up by the government and would
have it that the conference is nothing more than a forum for propagating
government policies. As I see it, today's conference can spark off a new hope
for the future. For this to occur, however, the business sector has come to
this conference looking for a sign, for a reaffirmation by the government that
recent events will in no way deter it from proceeding with the process of
peaceful constitutional reform aimed at a fair and just dispensation for all
South Africans,” Mr Stegmann said.

He detected a strong need now in business, professional and academic circles
for deliberation on the nitty gritty of alternative constitutional models.
“This is a good thing and need not hamper the negotiation process.”

/12913
cso: 3400/399

72



NIGERIA

AKINYEMI CITED ON ISRAEL, OTHER FOREIGN POLICY ISSUES
ABO71915 Lagos Domestic Service in English 1800 GMT 7 Nov 86

[Excerpt] The Minister of External Affairs, Professor Bolaji Akinyemi, today
in Lagos briefed newsmen on the activities of his ministry. He also focused
on the principles of Nigeria's foreign policy and strategy. Correspondent
Francis Ukem, who was there, now reports:

[Begin Ukem recording] The new briefing was climaxed by a question and answer
session which provided newsmen an opportunity to (?press) further for more
information on other vital aspects of Nigeria's foreign policy which were not
effectively (?discussed) in the minister's speech. These included Nigeria's
continued break of diplomatic relations with Israel, our membership of the
Organization of Islamic Conference, OIC, the country's nonaligned posture, and
the (?issue) of Nigeria's border with Chad. Others were the proposed
establishment of medium power, the possible [words indistinct] of apartheid
South African attack on Nigeria, our image abroad, and Nigeria's importance in
the scheme of things in the African Continent and other international
organizations, like the Nonaligned Movement.

The most prominent questions fielded by journalists were on Israel, Nigeria's
member ship of the OIC, and reports of Nigeria's vulnerability to attacks by
racist South Africa. On the Israeli issue, Professor Akinyemi made it clear
that if Nigeria was going to reopen ties with that country, the government
would inform Nigerians about it officially. He said that Nigeria was not
worried about several AFrican countries, including our neighbors, who had
resumed ties with the Jewish state.

As for the issue of the OIC, Professor Akinyemi recalled that President
Ibrahim Babangida had announced the establishment of a national body to
protect the interests of the various religions in the country. He concluded
by asking Nigerians to wait until the country received an invitation from the
OIC before they begin to talk of Nigeria's membership of the organization.

The minister dismissed reports that Nigeria was vulnerable to attacks by
racist South Africa, pointing out that it was all part of the propaganda to
[passage indistinct]. [end recording]

/12913

cso: 3400/394

33



SOUTH AFRICA

ROLE OF NAVIGATOR IN SAAF EXPLAINED
Pretoria AD ASTRA in English Oct 86 p 9

[Text] .The navigator in the South African Air Force plays a vital role in the
achievemens of the Air Force, yet few people know what his job entails!

A navigator is often expected to handle and solve a variety of aviation prob-
Jems, When one looks at the requirements necessary to apply for training as
Navigator, it is clear that a special breed of men are needed. Those who
graduate from 80. Air Navigation School at AFB Langebaanweg near Cape Town surely
are the cream of the crop.

Apart from being fully bilingual and a male South African citizen the successful
applicant must be in possession of a matric certificate with University exemp-
tion, preferably with English, Afrikaans, Mathematics and Science. He must be
"Flying fit" and between the age of 17 and 25, Should he be under the age of

21 he must have his parents' consent, All applicants are to pass an Air Force
Officers' Selection Board,

The training of a navigator is a lengthy as well as an expensive business,

The training, like any other career in the SAAF, starts with basic training at
the Air Force Gymnasium in Pretoria, The Officers Orientation Course is the
next step, This phase lasts 13 weeks and takes place at the SAAF College in
Pretoria, Candidates who pass the Officer Orientation Course then attest into
the Permanent Force and are transferred to Central Flying School, Dunnottar.
The 9 week long Aircrew Orientation programme is presented here and includes
basic survival training for aircrew.

80 Air Navigation School at AFB Langebaanweg near Cape Town becomes the new
base for the student at completion of the Aircrew Orientation Course. At 80
ANS the student learns much about electronics, computers, aerial photography,
weapons systems, weather conditions, decision-making and leadership. This is
the longest phase in the training programme and theoretical and practical fly-
ing training is carried out. The next phase involves 10 weeks of training in
advanced practical flying at an Air Transport Squadron.

Navigators in the SAAF are vital members of the crew in which they serve. They

are utilized in a variety of bomber aircraft, maritime reconnaissance aircraft,
transport aircraft and fighter aircraft.

45



URGENCY OF BLACK PROPERTY RIGHT STRESSED

Johannesburg THE STAR in English 30 Oct 86 p 11

[Article by Sol Makgabutlane]

[Text]

19274
cso:

3400/387

The process of. obtaining property under the new black property

ownership rights should be expedited to ensure success, said Ms Jill

Strelitz, the housing policy manager of the Urban Foundation. |

_ She was commenting on the implications of the Black Communi-
ties Development Amendment Act, which came into operation on
September 15.

The Amendment Act removes the restrictions in the principal .
Act which prohibited blacks from acquiring full ownership of im-
movable property.

In announcing the implementation of the new Act, Constitutional
Development and Planning Minister Chris Heunis said it had
opened the way for land ownership by blacks.

The Amendment. Act brings blacks on a par with other race

. groups as far as property ownership is concerned. | an
Ms Strelitz said this would encourage private sector involvement !

in the supply of land and housing for blacks. It would also cut out
the red tape that previously applied to sales of sites and housing,
she said.

“Successful involvement of the private sector will be directly
related to how effective the public sector is in implementing the
regulations. The capacity of the public officials to expeditiously
process township applications is the key to success”.

She said it would now be easier for those wishing to be township
developers. to do so without first getting approval from the Minis-
ter of Constitutional Development and Planning.

A new flexibility had also been incorporated to allow property
Owners greater freedom in how they use their properties.

“For example, residential properties can be used by the owner
for his profession, trade, occupation, including retail trading. It is
very important that the income-generation potential of a house is
facilitated,” Ms Strelitz said.

50

SOUTH AFRICA



The important role of the navigator cannot be sufficiently stressed, through
he is the master of advanced electronic systems which will in future pay an
even bigger part in air warfare, He must be able to use this equipment ef-
ficiently and guide his crew, even under operational stress,

19274
cso: 3400/400

46



SOUTH AFRICA

CONFERENCE DOCUMENT ON PRIVATIZATION PLAN
MBO71508 Johannesburg SAPA in English 1505 GMT 7 Nov 86

[Text] Pretoria, 7 November, SAPA~-A three-year programme for privatization
will be launched according to proposals in a discussion document aimed at the
drafting of a white paper, which was discussed at the government's economic
conference with the private sector in Pretoria today.

The programme would be launched as a basis for the establishment of an
approach by which possibilities for privatization in the public sector could
be continuously detected and exploited.

The project would be carried out by the already appointed committee of
ministers for privatization under the chairmanship of the minister of
administration and economic advisory services in the office of the state
president.

“Proposals concerning central and provincial government functions or
activities which have been identified for possible privatization will be
submitted to the committee for consideration and then to the cabinet for
approval,” according to the discussion document.

The way in which privatization was to be carried out would be approved in each
case according to the need. Also, private sector involvement in privatization
activities would be sought at appropriate stages in the course of the
investigations, depending on the circumstances.

According to the document, the transfer of activities to the private sector
entailed the sale of assets, the sale of government undertakings and the
transfer of government functions, and this could take various forms.

Among these were the acquisition of shares by the private sector in existing
government undertakings with the government, however, retaining its shares
until full ownership could be transferred.

The private sector could also obtain shares in new enterprises in which
government would maintain a permanent involvement, where such a partnership
may be appropriate in the case of natural monopolies or, for very special
reasons, in the interests of the country.

75



RAND MINES LIFTS PROFITS TO NEW RECORD

Johannesburg BUSINESS DAY in English 31 Oct 86 p 1

[Article by Cherilyn Ireton]

[Text]

19274
cso:

RAND MINES, rejuvenated by an exten-:

sive capital expansion pro; » has. i weg : z
sine capita new record for the year techniques and cash mana; ement result- :

to September. .

onset aa
ious year) while

of Rand Mines shares had

8 728c (5 637c) at end September.

With earnings from gold, coal, base
metal sales investments highér than
expected, the mining house has increased
its final dividend

Although
able 16% to R154m (R133m), chairman
Watt says results would have
been more impressive had the

depressed

property me et not drained the contri-

the 76%-owned Rand Mines
Properties.

fatt says: “All in all it was a most

satisfactory year with better investment

3400/395

55¢ to 320c, making a~.

ing in a strong increase interest re-

ceived.”
Turnover, assisted by the low value of
the rand, rose 19% to R787,2m (R661,4m)

. while ating it was up 27% from
oper: profit

R221,4m. to just under Taxation
increased to

the year end w almost half of share-
funds were tied up in long-term:
loans, These include an amount of

station collieries.

‘Rand Mines, through a proposed acqui-
sition of 42% of Vansa Vanadium, is
peised to enter the vanadium and possi-

ly platinum markets.. .

85

¥R249,im owing to Escom for the develop-
ment of the Majuba and Khutala power

SOUTH AFRICA



ARMY'S COMMAND, STAFF COURSE OPENS

Harare THE HERALD in English 18 Oct 86 p 1

[Text]
THE Zimbabwe. National
Army’: command. and

deal with subjects rang-
ing from tactical training
to defence policy formu-
lation, the Prime

ter, Ode Mugabe, sald
when opening the course
yesterday.

“This occasion marks @
very important milestone
in the development of
officer training in ° the
national army,” said Cde
Mugabe.

Previous courses had
been run most success-

fully at junior and inter-°

mediate levels and had
been a major factor in
enhancing the profession-
al knowledge and ability
of the officer corps.

The nine-month com-
mand and staff course is
attended by 70 senior
officers from the rank of
captain to colonel drawn
from the army, airforce
ang the police.

Cde Mugabe said:
“With the introduction of
this course, our staff
training will be equiva-
lent to that of the most
advanced . single service
colleges of other armies,
and I am confident that
the course will stand
comparison with any in
Africa, and even further
afield.”

The aim of the course
was to develop the pro-
fessional knowledge and
understanding of ' select-
ed officers and to pre-
pare them for the as-
sumption of increasing

19274
CSO: 3400/388

responsibility both in
coand and on the

staff.

Building on the stud-
ent’s previous training,
instruction would assume
basic Knowledge of the
tools of the officer's trade
and amplify it by means
of lectures and presenta-
tions, visits, demonstra-
tions, syndicate discus-
sions and exercises.

These ‘would range
from exercises conduct-
ed tutorially in syndicate
io command post exer-
elses without troops and
scenario exercises in the
newly established tactical
trainer.

“The course,” said Cde
Mugabe, “will pay con-
siderable attention to the
formulation of defence
policy, the mechanism of
Government and its rela-
tionship with the ser-

vices, and financial and:

long-term planning.” *

There would be an im-
portant geo-political con-
tent, with the studies re-
lated both to Zimbabwe's
regional pre-occupations,
and to. a wider context:
Studies would be com-
plemented by » tour of
certain SADCC member
states,

“Tactics will naturally
form a very large element
of the — course,
studies ranging from
peace-keeping, at one ed
of the scale, to full scalo
conventional war = —
though not nuclear war
— at the other,” said

40

ZIMBABWE

Cade Mugabe.

“Without highly train-
ed officers, confident in
their knowledge, ac-
enrate and competent in
their work, and able
through practice and ex-
perience to make sound
judgments, no commander
can put his plans into
effect,” the Prime Min-
ister suid.

Reminding the officers
of the situation facing
Zimbabwe ang the many
diverse. tasks confronting
the young but experienc-
ed army, he said the dis-
charge of the duties re-
quired the very best that
the officers could give and
“nothing but the very
highest standards of pro-
fessional competence will
suffice”,

The officers had to
participate actively in
syndicate work, and use
their experience to
educate others.

Speaking -at the ‘same
occasion, the commander
of the BMATT, Brigadigr
Bob Hodges, said the
preparation of the course
was an outstanding
example of the co-opera-
tion which existed be-
tween the ZNA and the
British military advisers.

The training tacilit
was one of the best in
Africa and it was hoped
that in future a decision
would be made to invite
students from other Afr!
can countries to attend
the command and ty
course.



JPRS-SSA-86-120
4 DECEMBER 1986

SUB-SAHARAN AFRICA REPORT

ConTENTS

ANGOLA

Positive Comments on Visit to Savimbi's UNITA
(Various sources, 11, 16 Sep 86)...-.secececeeeeeeeeccees

Joao Soares Interview
CDS Deputy on UNITA, by Manuel Monteiro
Savimbi Message to Youth

Cavaco Silva's Reluctance To Aid UNITA Creates Protest
(O DIABO, 16 Sep 86; SEMANARIO, 13 Sep 86)...

Cavaco Silva's Attitude 'Perplexing', by Vera Lagoa
"Realpolitik' Seen Risky, by Jose Miguel Judice

Diamang Manager Discusses Company's Condition, Dissolution
(Manual Pereira da Gama Junior Interview; JORNAL DE
ANGOLA, 29 Aug 86)........46 eee eeee bee c eee e er eeeeee eens

LIBERIA

FRG Loan Freeze, On~Going Projects
(Martin Kerkula; DAILY OBSERVER, 25 Sep 86).....---+eeeee

Maritime Commissioner on Continuation of Liberal Maritime Policy
(DAILY OBSERVER, 24 Sep 86)...-ceeececcccccccececsseeeee

Doe Pledges To Maintain U.S, Dollar

(NEW LIBERIAN, 6 Oct 86)...ccceeecccceccecececenceesseees
New Government Appointments Announced
(DAILY STAR, 23 Sep 86)..sscsccsccecceccecceeanceecuceecs
-ac

11

15

17

18

19



it has taken. In this response, the government says it “has already taken the
initiative with regard to the majority of the measures proposed...they are
already being implemented.”

The strategy specifies that education policy must satisfy the needs of the new
pattern of development, with a better balance between academic and
occupationally oriented education.

The government outlines the “well developed educational system in South Africa
which offers a variety of fields of study and possibilities."

The government also supports the recommendation that blacks should be
increasingly exposed to management and senior posts, including those in the
public service. But the government says it believes appointments and
promotions should take place on the principle of merit and not in a cosmetic
way.

The government says it subscribes to the role that a new economic development
programme could play in ensuring the economic strategy is effectively and
consistently applied.

In an annexure to its response, dealing with the constitutional process, the
government outlines the political history of the country from 1910. It says
that the reform is a "comprehensive process.”

South Africa today finds itself in the midst of the most far-reaching,
important and comprehensive phase of constitutional development in its
history."

The country had "undoubtedly, entered its most difficult phase with blacks
having to be accommodated in the system at the highest level.”

It was clear constitutional development could not take place instantaneously
and that the process could not bring about ideal conditions.

“People at different levels must be exposed to complex institutions and
processes, common values must be developed, systems must find acceptance,
leadership must develop, and in the process progress can be made towards
effective and efficient government systems appropriate to the country's
circumstances and possibilities.”

/12913
CSO: 3400/399

63



SECURITY MEASURES FOR PORT ELIZABETH TOWNSHIPS

SOUTH AFRICA

Johannesburg THE NEW NATION in English 23 Oct-5 Nov 86 p 3

[Text]

FIRST they sealed
the Port Elizabeth
townships off with

a deadly razor’

wire fence. That
was three months
ago.

Then earlier this
month they issued
residents with "dom-
passes" enabling
them to pass through
three guarded exits
manned by rifle-
wielding soldiers.

This week the
“security forces" have
been going from door to
door soliciting residents’
views with questionn-
aires.

Residents are scared to
answer some of the
questions, they say,

19274

cso:

3400/387

because they don’t know
the purpose of the
survey.
One resident said the
westionnaire had space
for the name of the

home owner and
address.
People are asked what

they think. of the SA
Defence Force and the
police, the Ibhayi

‘ouncil police and the
presence of all three in
the township.

‘They are also asked:

« Whether any of their
children have a “bad
attitude” to the police.

+ What they think of the
razor wire fence and the
roadblock which seal off
New Brighton from
other townships.

« What ink of the
"comrades", death by

necklacing and the
burning and petrol-
bombing of homes.

« Where they are em-
ployed.

Consumer Boycott
Committee spokesman
Mike Xhego said if the
government lifted the
state of emergency and
released all emergency
detainees so that a

ful atmosphere was
created in the townships,
there would be no need
for the roadblocks, wire
fences or "dompasses”.

If a resident is not

‘carrying this "dompas”

at a roadblock, he or she
denied access to the
township.

A few days after the
cards were issued,
youths went from house

49

to house explaining the
langeérs of carrying the’
cards. aa

Many residents han-'
ded their cards over to
the youths, who des-;
toyed them.

ch "dompas" has
the Ibhayi Council's
code of arms, letterhead
and telephone number. °
It has spaces for a
council official's signa-
ture, the holder's
address, the official
stamp of the council and
the SAP's official stamp.

East Cape Police
Liason Officer Major
Eddie Evason said the
«questionnaire had come:
ifrom the security forces
operating in New
Brighton, and he
referred further inform-
ation to the Bureau of
Information.



EXPORT PERFORMANCE--The South African Deputy Minister of Finance, Trade, and
Industry Mr Kent Durr, says South Africa's export performance over the past
year has surpassed all previous records. Addressing the annual general
meeting of the South African Foreign Trade Organization in Johannesburg, Mr
Durr said this performance was reflected in an export growth of nearly 50
percent. This had generated nearly $9 billion in nongold exports and produced
a surplus of more than $3 billion on the current account of the balance of
payments. Mr Durr said the surplus was a major reason why South Africa's
short-term debt repayments could be negotiated successfully. [Text]
[Johannesburg International Service in English 0630 GMT 7 Nov 86 MB] /12913

EXPORTS TO ISRAEL RISE 70 PERCENT--SA's exports to Israel were up 70% in the
first four months of 1986 against the same period last year. Imports declined
10% over the same period, The SA-Israel Chamber of Commerce said the rand's
low value had caused a significant increase in SA manufacturers looking at
Israel as a target market. Inquiries from SA firms seeking Israeli industrial-
ists as partners in joint-venture agreements were also on the rise, the chamber
said in its annual report. Exports to Israel continued to be dominated by min-
eral products (42% of total exports) and base metals (23%), Exports of base
metals, mainly steel, jumped 95% over the previous year, it said, The report
targeted machinery, electrical equipment, vehicles and aircraft as exports
which performed well and showed growth potential, Leading the list of imports
from Israel into SA were machinery, electrical equipment and parts, chemical
and allied products, These accounted for about half of total imports, [Text]
{Johannesburg BUSINESS DAY in English 29 Oct 86 p 6] /9274

LEEUWFONTEIN TO DOUBLE COAL PRODUCTION-~-Leuwfontein Mine, which forms part of
the Murray & Roberts stable, is now in a position to double its coal production
to 50,000 t/month after the recent completion of additional facilities. The
R2,1-million contract, carried out by EMS Minerals, involved the design, supply
and erection of a washing plant, a raw~coal crushing and screening section and
products~handling section at the mine's plant near Delmas in the Eastern
Transvaal Highveld, The plant has been designed to beneficiate 150 tons of
raw coal an hour in a large heavy~medium cyclone separation plant, Civils
work on the project was carried out by Gillis Mason, Leeuwfontein is the
closest commercial coal producer to Johannesburg. [Text] [Johannesburg THE
SUNDAY STAR (Finance) in English 19 Oct 86 p 8} /9274

COAL EXPORTS MEET TARGET~~Despite limited sanctions on SA coal, exports for the
first eight months are on target to equal the record 44,7-million tons shipped
from Richards Bay last year, Figures compiled after the Minerals Bureau show
between January and August 29-million tons of coal were sold abroad, If this
tempo of about 3,6-million tons a month is maintained until the end of the
year, exports won't be far behind those of 1985, However, sales are expected
to increase as producers try to meet outstanding export contracts before
December. Meanwhile production has not slowed despite depressed markets and

98


INVESTMENT COMMISSION VERIFIES FOREIGN INVESTMENT CONTRACTS

Monrovia DAILY OBSERVER in English 7 Oct 86 pp 1, 6

[Article by Nyenati Allison]

[Text]

19274
cso:

The National: Invest.
ment Commission (NIC)
says the five business
firms. that signed recent
contracts. totalling $20
million are “authentic”.

According to a senior NIC
official, the authenticify of
the investments were con-
firmed after scrutiny by

Commerce, Planning and *

Finance Ministries.

Other government
bureaux involved in the pro-
cess were the Ministry of
State for Presidential Affairs
and the National Investment
€ommission.

The source said,
however, that the im-
plementation of the con-

3400/408

tracts is a decision which on-
ly the investors themselves
can decide.

The NIC. the source
revealed. “is not aware” of
the existence of the five firms
holding subsidiary com-

“panies; because: “there are

no records to the effect”.
The Executive Director of
the Gold Mining Company
commenting on his invest-
ment, said his firm will be
subsidised by the Zana Cor-
poration of New York, USA.
According to him, the
company has assets to the
tune of $548,514. It is 3.33.
per cent Italian-owned, 3.33
per cent Ghanaian-owned,

“while 50 per cent is Liberian

owned. The balance: of
43.33 per cent belongs to an
American.

He said Liberia is the “on-
ly" country in Africa in
which his gold mining com-
pany. F.L.A.G., will
operate. Previously, Guinea
and Sierra Leone were pro-
spective countries, “but we
changed our desire because
of the unconducive invest-

23

ment climate in these coun-
tries”.

For the Flamingo Logging
Corporation which is 75 per
cent Italian-owned and 25
per cent Liberian-owned, its
assets total $7,037 million.

The Timber Investment
and Management Company
(TIMCO} is a joint Swedish-
Liberian venture with the in-
vestment capital of $7.863
million. It has been in Liberia
with a previous investment
capital of $4.3 million:
however. its recent invest-
ment contract involves
$3.563 million.

The fourth investment,
the Liberian Air Research
Company, is 75 per cent

Lebanese-owned, while the.

balance of 25 per cent is be-
ing left open for Liberian
participation, The amount
expected to be invested: is
$793,775.

~ General Tobacco Com-

pany, the fifth investor, is 75
per cent Lebanese-owned,
“while 25 per cent represents

+ Liberian share. The com-

pany has an asset of $1.368
million.

LIBERIA



NEW GOVERNMENT APPOINTMENTS ANNOUNCED

Monrovia DAILY STAR in English 23 Sep 86 pp 1, 5

[Text]

With the consent
of the Senate, the
President, Dr. Sa~
muel Kanyon Doe,
has been pleased
to make the follo-
wing appointments
‘in government.

An Executive Man-
sion released iss-
ued here yesterday
said, those appoin-
ted are:-

Hon. Moses Elliott,
Deputy Minister of
Agriculture for
Extension and Re-
gional Development,
Ministry of Agri-
culture; Hon. Henry
B. Kesselly, Assis-
tant Minister for
Administration,
Ministry of Rural
Development; Hon.
Richard Hill, Ass-
istant Minister
for Technical Ser~
vices, Ministry of
Rural Development;
Hon. Domity Akoi,

19274
CSO: 3400/409

Assistant Minister
for Community ser~

vices, Ministry of
Rural Development;
Hon. Jehu «Brandy,

Assistant. Minister
for General Ser~
vices, Ministry of
Rural Development;
Hon. Melvin J. De-
nnis, Assistant

Minister for Sta~
tistics, Ministry
of Labour, and Hon.
Eric D. Johnson,
Assistant Minister

for Planning, Re-
search and Develop-

ment, Ministry of
Health and Social
Welfare.

Also appointed
are: Hon. George
B. Cooper, Commi-
ssioner of Maritime
Affairs, Ministry
of Finance; Hon.
Luvetta Diggs, De-
puty Comissioner
of Maritime Affairs
Ministry of Finan-

19

LIBERIA

ce; Hon. Jackson
E. Doe, Deputy Di-
rector General, Na-

tional Social Secu-
rity & Welfare Co-

tTporation; Hon.
Comfort Kcah Itoka,
Assistant Director
for General Admini-
Strative Services
Division, Bureau
of the Budget;

Col. Tommy Raynes,
Assistant Direc-
tor-General for Ra-
dio Liberia Broad-
casting System and
Hon. Morris Momolu
Dukuly, Assistant
Director-General
for News and Public
Affairs, Liberia
Broadcasting Sys-
tem.

The release fur-
ther said Dr. Doe
also appointed se~.
veral local offi-
cials to various
positions in the
counties,



STUDENT GROUPS PROTEST TUITION HIKES

Monrovia DAILY OBSERVER in English 26 Sep 86 p 6

Student Integration Movement Objects

{Article by John Lloyd]

[Text]

The Student Integra-

tion Movement, one of

two political parties at
the University of Liberia,
has taken serious excep-
tion to the recent 100 per
cent Increase in the tui-.
tion for Liberian
undergraduates. at the
University of Liberia
(UL), which takes: effect
first semester of
academic 1987.

Ina position statement the
party noted “while it is very
true. that the University of
Liberia is plagued with
serious financial problems.
we. as students are equally
affected and therefore can-
not be used or exploited in
any attempt to find remedy

for the situation”.

The statement continued
“as children whose parents’
salaries face 50 per cent cut
and much delay in payment;
we are convinced that the
decision to increase tuition
‘by 100 per cent is tanta-
mount to academic.

strangulation and frustration *

at this: particular point ir
time..

The party further express-*

ed optimism that there are
better and. more effective
ways through which the UL
can obtain needed funds in-
stead of a 100 per cent in-
crease in tuition.

The statement then con-
cluded. “government must
be made to understand that

itis not prioritizing education

+ as reflected in the recent na-

tional budget.” and> should:
therefore do the necessary
adjustment”.

SIM has meanwhile sent a
letter to the UL administra-
tion expressing  dissatisfac-
tion over the increase. The
party is also seeking au-
dience with the UL ad-
ministration to: work out
modalities” that would
alleviate the financial crisis.

For its part. when con-
tacted, the Student. Unifica-
tion Party (SUP). through its
leader, Kofi Woods,:inform-
ed the Observer that the par-
ty will issue its objection to.
the tuition increase after
deliberations: wich are in
progress.

Student Party Begs Reconsideration

LIBERIA

Monrovia DAILY OBSERVER in English 2 Oct 86 p 3

[Text]

The Student Unifica-
tion Party (SUP) of the
University of Liberia
(UL) has called on the
university authorities to
reconsider plans for an
increase in tuition for
Liberian students.

In a letter addressed to

19274

cso: 3400/411

UL President, Dr. Joseph
G. Morris, a copy of which
was received by this paper,
the SUP said ‘its students
could not afford to
underestimate the political
and financial squeezes
which have left most
students almost penniless. *

‘Commenting on its non-

31

representation, on the
University Council which
decided the tuition increase,
the SUP urged the UL Ad-
ministration against the
planned rise until the ULSU
*86 elections are held.

This, they said, would
give them the opportunity
to explore alternative

sources for funds, oF
perhaps agree on an accep-
table increase.

It may be recalled that a
release issued by the univer-
sity recently said tuition for
Liberian students in the five
undergraduate ‘colleges at
UL is being increased to
$150 as of the first academic
semester next year


AZASO CRITICIZES OPPONENTS OF ACADEMIC

Johannesburg THE STAR in English 27 Oct

[Text]

19274
cso:

3400/387

DURBAN — Leaders of the
Azanian Students’ Organisation
(Azaso), whose members made
Dr Conor Cruise O’Brien cut
short his visit to the University
of Cape Town, called a Press
conference here to put the aca-

‘demic boycott of South Africa

“in proper perspective”.

Students were angered by re-
ports that academics were
worried the University of Cape
Town could become an “Afri-
can campus” plagued by low
standards and ruled by the
mob.

This, the students said, was
racism. “African” was not syn-
onymous with poor standards,
they said.

Said Azaso president Billy
Ramokgopa: “The debate has
been one-sided. The views of
black students are missing.
Even academics who are sym-
pathetic to our struggle have
criticised the boycott.

“People have not bothered to

find out why we support it.”
- Mr Ramokgopa said Azaso
and many other organisations
were committed to South Afri-
ca’s total isolation and the ban
on overseas academics was
part of that isolation strategy.

The ban, he added, should be
seen in the same light as eco-
nomic sanctions.and sports and
cultural boycotts.

Mr Ramokgopa said it was
absurd to talk of academic
freedom amid Government re-

BOYCOTTS

80 p 13

pression?
DETENTION
He said many students and
academics who supported the
boycott were in detention. .
Their detention — an attack
on free speech and academic
freedom — had not aroused

similar passions on. English

campuses.

Mr. Ramokgopa added: “The
universities are grounds of
apartheid. Many people, main-
ly whites, have places guaran-
teed, but few black students
make it.”

Said one: student leader: “In
a normal society we would sup-
port academic freedom, but
South Africa is not a normal
society. :

“The people of South Africa
are involved-in a struggle for
national: liberation and all the
struggles, whether on the shop
floor or in schools ‘are geared
to that goal. .

“The question of academic
freedom cannot be viewed in
isolation.”

The students said if academ-
ic freedom meant the free flow
of ideas, why were protests
from liberal institutions muted
when black students were shut
off by Government decree
from enrolment?

They claimed allocation of
facilities to black and white
students in many “English” un-
iversities was racist. Black fa-
cilities were “always inferior”.

55 ‘

SOUTH AFRICA


SOUTH AFRICA

MINISTER SPEAKS ON PRIVATIZATION, DEREGULATION
§MB071317 Johannesburg SAPA in English 1314 GMT 7 Nov 86

[Text] Pretoria, 7 November, SAPA--The success of the government's
privatization and deregulation depended on close cooperation between the
public and private sectors, and on the "right type” of private sector
involvement, the Minister of Economic Advisory Services, Mr Eli Louw said
today.

Addressing the government's economic conference with 200 of the country's top
business leaders in Pretoria, he said private sector investment had to
increase as that of the public sector decreased, particularly in the spheres
with the highest multiplier effect.

If this did not happen, South Africa would become a net loser of job
opportunities.

The government accepted the most important criteria for private sector
participation was the profit factor and granted this so long as it was
reasonable.

Mr Louw said the biggest economic problem of a developing country was a lack
of development capital, and in the case of South Africa, this was made worse
by other than economic causes.

Privatization and deregulation were part of a total strategy to tackle the
problem.

Privatization could however, work no miracles, as South Africa had very few
state businesses, some of which were monopolies and could not be completely
privatized. It could, however, play a substantial role to achieve the long-
term economic goals.

Apart from the usual methods and guidelines for privatization, big public
sector investment would in future be tested on the pasis of the following
three questions:

First, should the user pay without subsidisation by the taxpayer?

Second, is it a service that can be provided by the private sector?

73



Checks Being Disbursed

Monrovia DAILY OBSERVER in English 20 Oct 86 p 1

(Photo caption]

Employees of the J.F.K. Medical Center, including those retrenched

recently, have begun receiving salary checks for the month of July,
J.F.K. Chief Executive Officer Dr. Walter Brumskine announced
here. yesterday. He described conditions at the hospital as.normal,
adding that it currently has enough drugs, food and equipment for
iminimum operation. Photo above shows some J.F:K. employees en-
cashing their July checks in Monrovia on Tuesday.

Doe Intervenes, Reinstates Workers

Monrovia NEW LIBERIAN in English 9 Oct 86 pp 1, 6

[Article by Joseph ‘feh]

[Text]

President Samuel Doe
yesterday revoked the
J.P.K. Hospital admi-
nistration's decision
to retrench or retire
some 300 employees of
the hospital, saying
that although govern-
ment realizes the
acute financial diffi-
culties the hospital
is facing, the retren-
chment and retirement
exercise was not in
the interest of gov-
ernment and the peo-
ple.

The Center recently
dropped 300 of its em-
ployees for lack of
funds and what the
Center referred to as
an’ “over staffing of
the Center." Their de-
cision was also based
on a study conducted

by a U.S.-based con-
sultancy group which
advised the hospital
to cut down staff.

The hospital admini-
stration said it took
the retrenchment exer-
cise as the last
alternative, which

19274
csO: 3400/412

seemingly did not save

the situation.

Is there any other
alternative measure to
save te center trom
possible collapse? Not
even the Executive Ad-
ministrator of J.F.K.
Meuical Center could
answer this question
last night when he was
contacted by  tele-
phone.

"The President has
made his decision,"
Dr. . Brumskine saids
He sdid he did not
know of any solution
at the moment, except
with the assistance of
the President, Dr.
Samuel Kanyon Doe.

For the past year
and a half, the finan-
cial wounds of the
Center have rapidly
worsened, culminating
in a series of work
stoppages and go slow"
surikes in demand of
salary arrears.

Acute drugs  shor-
tages and inadequate
medical doctors have
made conditions worse.

25

Patients are often
given prescriptions to
buy drugs from private
drug stores because of
the. inadequacy of sup-
plies at the hospital.

A senior hospital
administrator has
blamed the - situation
on:the low budgetary
appropriation the Cen-
ter gets from the cen-
tral government.. But
Finance Minister
Robert C. Tubman: has.
refuted .such allega-
tions, contending that
the hospital should be
able to’ generate its
own operating funds.
while government: pro-
vides subsidy of
about 25 percent, of
the balance. of what-
ever the Center needs”
to meet. its opera-
tional costs.

But hospital offi-
cials have maintained
that funds generated
by the hospital are
reported. to’ the“ fi-
nance Ministry and not
to the hospital. it-
self.



SOUTH AFRICA

NEW GUIDELINES FOR FISHING INDUSTRY
Johannesburg BUSINESS DAY in English 27 Oct 86 p 2

[article by Chris Cairncross]

[Text]
GOVERNMENT has decided to _ frou been decided as a matter
make fundamental and signifi- trating and objective document, of policy that quotas should not be

cant changes to the way it man-
ages SA’s marine resources and
allocates quotas to the coun-
trys fishing industry.
tails of the proposed changes

are contained in a White Paper re-
leased in Cape Town at the week-
end by Environmental Affairs and
Tourism. Minister John Wiley.

They set out the Cabinet's re-
sponse to the report and lkrecom-
mendations of the Diemont Com-
mission whose brief was to inquire
into and make specific proposals
for the establishment of a firm set
of principles for the allocation of
fishing quotas.

Wiley described the commis-
sion’s report as an admirable, pene-

roviding fundamental guidelines
for the effective management of
the country’s marine resources.
He said the 1 commendations
had been acceptec almost in their
entirety, and legislative steps
would now be taken to implement
all the necessary changes as soon
as possible — most of them in 1987.
‘he changes include:
OThe allocation of quotas is no
longer to be decided at ministerial
level. Instead, this will be done by a
Quota Board appointed by the Min-
ister;
(CiGovernment has no intention of
acceding to requests to close the
industry to new entrants, although
future access will be carefully con-

vested permanently in existing,
past or future quota holders,

OHake and sole quotas of indi-
vidual companies in the deep-sea
and inshore sectors are to be
awarded for 10 years;

OA similar, extended 10-year
quota period has been granted for
Pelagic fishing,

Companies involved in rock lob-

ster fishing are to be granted a
seven-year quota period for south
coast lobsters, and a five-year quo-
ta period for the west coast;
@ Government has promised to re-
inforce its efforts to ensure SA fish-
ing companies obtain the maxi-
mum quota rights to fish off
Namibia.

19274

cso: 3400/395

91



Expressing the position of Centrist Youth--an organization which is autonomous
but not independent of the CDS and which therefore shares the views held by
that party's leadership--Manuel Monteiro emphasized the West's responsibility
in the face of the communist offensive against southern Africa. That
offensive is made obvious, incidentally, by the presence of Cuban troops and
countless "advisers" from every Eastern country.

In view of that, the chairman of Centrist Youth criticized the statements made
the day before yesterday by Cavaco Silva in favor of cutting off the support
that the West has been giving UNITA.

On the other hand, Manuel Monteiro expressed his confidence in the possibility
that Portuguese would emigrate to Angola if law and order were restored to
that country and if the conditions were created for a government that would
include participation by UNITA.

Lastly, the leader of the CDS young people's group analyzed the situation in
South Africa, emphasizing the level-headed approach that Portugal must take
because of the approximately 700,000 Portuguese residing in that country.

11798
CSO: 3542/5



And third, should the public sector provide the service on an economic basis?

The time was ripe for a "determined drive” towards privatization, of which
deregulation was an important element.

Mr Louw said the government wanted to achieve reconciliation between the first
and third world economies in the country, and to improve the general
performance of the economy with more entrepreneurs, more competition and more
job creation.

“We want to use the vital elements of the economy—~capital, entrepreneurship,
labour and raw materials--to the fullest degree possible. We want the market
and price mechanism to regulate production and demand as far as possible and
we want to broaden the economic basis to its fullest potential to achieve the
much desired lower taxation levels."

/12913
cso: 3400/399

74



STATE SPENDING WELL OVER BUDGET

Johannesburg BUSINESS DAY in English 20

{Article by Mick Collins]

[Text]

19274
CSO:

GOVERNMENT spending continues un-
abated, with August levels of over-spend
surging towards the 10% mark.

Total expenditure for August was
R2,7bn, an increase of 9,8%, compared
with August 1985.

For the first five months of this finan-
cial year (including August), total spend-
ing was Ri5,8bn, representing an in-
crease of 18,3% over the same period

last year.
Economists expect total spending to
be about 5% more than the projected

released by the SA-German
Chamber of Commerce & Industry show
the inflation rate was 18,7% on an annu-
al comparison.
August food prices increased by 22%,.
against the same period last year.
Gold output is expected to rise to 712
tons in 1990. Analysts say current pro-
duction levels are at the S60-ton jevel,
giving an annual growth rate o! a
Other gold-producing countries show
figures of: US (17%), Australia
(21%), le (12%) and Canada (9%).
Gold output in August was 53 845kg,
compared with July when 54 505kg were
produced.

3400/396

Oct 86 p 1

Gold and foreign exchange reserves at
the end of August were R4,555bn and
represented the highest since January
this year.

Foreign currency had a share of
R1,059bn.

SA recorded a favourable trade bal-
ance up to August, amounting to
R8,249bn. This resulted from exports of
R26,6bn and imports of R18,4bn.

From January to April, imports rose
by 23% to R8,9bn.

Exports recorded for the same period

came to R12,5bn, an increase of 14,8%,
compared with the same period last
year.
Projected mineral sales for this year
amount to R29bn, which would repre-
sent an increase of 13,4% over those of
1985.

Exports are expected to account for
86,8% (R25,1bn) of total sales.

The value of hire-purchase lease
agreements was R15,2bn in the quarter
to end-June 1986 — Ribn less than the
amount spent in the same period last
year.

80

SOUTH AFRICA



TEMPO: 1s. UNITA accepted by the population it controls? Is it in fact
established and organized? oe

Joao Soares: On the basis of what I was able to observe, I would not be
truthful if I did not say that UNITA is extremely well organized and that it
has cadres who are solid, intelligent, capable, and trained politically and
militarily. It was in fact a very big surprise for me, and it has a leader
who is perhaps one of the greatest African leaders of our time. JI have not
the slightest. hesitation in saying it. He is a very cultured man, well
educated and well informed, extremely intelligent, and an uncommon speaker.

TEMPO: Were there many foreign guests?

Joao Soares: -When-we arrived, the congress was practically over. A few
foreign delegates had been at the opening session, along with several
reporters. Besides them, there were the chairman of Centrist Youth, Manuel
Monteiro, a friend of mine named Duarte Teives, and Marise de Oliveira from
Nova Nordica, who, like me, had been invited because she is one of Savimbi's

publishers.

TEMPO: Do you intend to publish any more books about Jonas Savimbi or UNITA?

Joao Soares: There are no specific plans at the moment, but if the
opportunity arises, I will not shy away from doing it.

TEMPO: Didn't the fact that Joao Soares is the son of the president of the
republic cause you any problems when it came to accepting UNITA's invitation?

Joao Soares: Well, I must tell you that I did not accept the first
invitation, which was issued a week before I left, and the reason was
precisely that I did not want to give cause for any speculation or confusion.
Obviously, I would not want anyone at all, including my father, to be held
responsible for a strictly personal attitude that was entirely up to me.

TEMPO: From what you were able to observe, is the population controlled by
UNITA experiencing shortages or not?

Joao Soares: I can tell you I know something about the realities of Africa
and especially the Portuguese-speaking countries. I was in Portuguese Guinea
and Sao Tome after decolonization and when my father was deported there, and I
have also been to Luanda. What I saw in the vast zone controlled by UNITA was
enough to permit me to say, ‘as far as the population is concerned, that the
situation is not the same in any other Portuguese-speaking African country.
The people were wearing shoes, they were adequately dressed and, from what I
could see, were not having any problems with food. As a matter of fact,
judging from the farming operations we saw, it can be confirmed that in the
areas it controls, UNITA is managing to ensure levels of self-supply for the
population that are extremely reasonable by African standards.

TEMPO: - On the basis of your brief experience in Angolan territory, what is
your opinion concerning the future of that country?



“In certain instances, as was the case with low-cost housing, there are .
possibilities for the full transfer of certain responsibilities to the private
sector in respect of these kinds of services."

The document says governments “economic services must be conducted on business
principles, especially as far as capital return is concerned, and the user
must pay for the services.”

Public sector personnel would inevitably be affected where the termination of
the supply or the transfer of a product or service to the private sector was
involved, and implications of this would "always" have to be taken into
account.

"It is important that everyone involved in such function or activity should in
every case be treated justly. The personnel aspect should not, however, be an
insurmountable problem, since mechanisms exist to deal with this."

According to an annexure to the. discussion document, 36 functions or
activities had already been fully or partially privatized by various
government departments.

/12913
cso: 3400/399

78



SOUTH AFRICA

WATER PROJECT BRINGS BOOM TO FREE STATE BORDER TOWNS

Johannesburg BUSINESS DAY in English 27 Oct 86 p 4

{Article by Mick Collins]

{Text] Free state border towns are set for a multi-million-rand boom after
the signing of the R4bn Highlands Water Project between SA and Lesotho on
Friday.

‘he town councils of Fouriesburg, Fricksburg and Ladybrand have already
started preparing for the boom which will see huge infrastructural and hous-

ing development in the region,

Nearly 650km of roads will be built and upgraded with a resultant boost for
regional development and tourism,

Schalk van der Merwe, mayor of Fouriesburg said the Caledonspoort border post
close to the town would be enlarged and an R8m tarred road between the post and
Bouriesburg station would be built.

A double-lane bridge will be built over the Caledon River at Caledonspoort, on
the main throughway to the dam system,

Van der Merwe said there were many residential sites available at the town,
and there had been an increase in the water and electricity supply.

Ficksburg mayor, Lorenz Schutte said the town's infrastructure had already been
improved at a cost of R5m.

This included an extension of the electricity network, an improved water reticu-
lation network and increased sewage capacity.

New tarred roads had been laid out in the town, and several other roads had been
upgraded,

Ladybrand's mayor Fritz Weilbach said the town had grown steadily over the past
two years as a result of the water scheme,

89



SATHS COOPER DISCUSSES DEPARTURE FOR U.S.

Durban POST NATAL in English 29 Oct-1 Nov 86 p 12

SOUTH AFRICA

{Interview with former Azapo head Saths Cooper by Ameen Akhalwaya; date and

place not given]

[Text]

Q: Azapo has been viru-
fently anti-American, yet
you are accepting Ameri-
can money to go to an
American university. Do
you see a contradiction?
SC: I suppose there
would be problems if it
were in any way linked
with conditions, and if in
any way one were doing
the bidding of an imperi-
alist power.

We can never be
against a people; we can
be against a system.
Even in its most virulent
moments, the Kremlin
never lapses into anti the
American people; it is
rather anti the American
administration, the
American system.

We have stated our po-
sition clearly: we are
against a particular sys-
tem that has exercised
its influence in various
ways throughout the
world through imperial-
ism.

Q: It is being suggested that
you are leaving fo get away
from Azapo problems, that
there has not been a full ac-
ceptance of your leadership
because of your racial an-
cestry. Is that true?

SC: Whatever may come
latterly, appearing to em-
anate from Azapo — and
even if it sounds quite
plausible as if it is from

Azapo — must be looked
at very seriously in terms
of what the ideological
constructs of the organisa-
tion are. .

Very clearly, there has
been a belief in a basic
framework of black con-
sciousness (BC) and orien-
tation towards socialism.

If there has been any
ethnic connotation, it is
not part of BC or the so-
cialist direction of Azapo.
It would be from mischief-
makers and from detrac-
tors who would like to sow
further confusion.

Whenever a figure is en-
gaged in a controversial
move, you'll have a lot of
interest excited by it. You
will have a lot of people
attaching various inter-
pretations to things, but I
would like to stress that
many of the disinforma-
tion rumours that are
abounding emanate from
system quarters, people
who are doing the work of
the system.

Ihave with reluctance
been forced to consider
whether I could continue

to serve Azapo while being .

a student abroad, or
whether I could continue
to serve Azapo for the
next couple of months, al-
most waiting in the wings
as it were, because I had
made up my mind to go
once the passport became
definite.

57

As early as May,
Azapo’s entire leadership

knew of my intention, and :

empathised with that in-
tention, because the strug-
gle is not something you

can’ prosecute only in a '

particular organisational
or structural form.

You prosecute that in
various ways, different
people do it in their ways:
ordinary workers in their
daily struggles to make a
living, to maintain their
dignity, making their shop-
floor demands, are contri-
buting tremendously to the
struggle.

We should put those
things in perspective be-
cause people can make
contributions in various
ways. They don’t have to
be nakedly political.

I felt I'd probably best
serve my cause, my orien-
tation, by. stepping down,
allowing for leadership to
develop more from the
bottom. When you have
strong figures, there can
be lack of development,
there can be too much re-
liance placed on a few
figures.

‘That is not good for any
collective grouping, or for
encouraging the growth
and development of lead-
ership. The BC movement
has been one almost irrev-
erent movement when
others have kept leader-
ship in a staid fashion for

decades. yt
BC has called on the

principle of accountability,

of recall, of change. We

believe basically in demo-

cratic processes. 4
‘That is why it is proba-
bly at great cost that
Azapo is one of the few or-
ganisations that has an an-
nual congress and elects
new people every year.
Q: But don’t you see
a major weakness of Azapo
— where it's trying to get
away from personality and
leadership cults — that it
hasn’t had rea identifi-

able people to rally around, *

whether as symbols ‘or

as people of genuine :

leadership?

SC: Yes, that can be a:
probable fault, knowing ©

the weakness, the medioc-
rity, the norms of our
society.

But BC has been trying
to say we know that that’s
what is wrong. Should we
play according to what is
wrong, or should we posit
what is the correct way?

In that sense, I think we
have been purist, but I
have been an unwilling po-
litical candidate. I have
particular weaknesses,
particular strengths; I
have particular intoler-
ances, if you like, for shod-
diness, for lack of integri-
ty, for dilatoriness, and for
people’s being shysters.

T’ve been loathe to allow



VICTORIA WEST YOUTH CONGRESS DISCUSSES PROBLEMS OF TOWN

Cape Town GRASS ROOTS in English Oct 86 p 4

{Text]

GR: WHAT KIND OF '
PROBLEMS DO PEO- ;
PLE EXPERIENCE IN
VICTORIA WEST?
VIYCO: There are
many problems. Firstly,
there is the problem
with wages — the high-
est wages are about
R150 per month.
Domestic servants often
earn as little as R20 per
month.

The people accept
low wages, because-
there is so little work
GR: HOW DID YOU
START ORGANISING
IN THE AREA?
VIYCO: We started
last year, when we
formed VIYCO. We
were demanding: —

* @ community hall in
the area

* The resignation of
the community council '
GR: WHY WERE THE
PEOPLE __DISSATIS-
FIED WITH THE COM-
MUNITY COUNCIL?
VIYCO: They never
consulted with the peo-
ple. They claimed to be
our leaders, but they
never came to us to
find out our problems.
For example, when the
rents were increased,
they never told the peo-

19274

CSO: 3400/393

plé, or asked the people
if they could afford
higher rents and so on.
We organised a rent
boycott in July last
year. The people just
could not afford to pay
high rents — they felt
they were being robbed,
This was also because

you never saw where
the rent money was
going. Our houses were
still broken, there were
no facilities in the area.
The community:
councillors ail resigned:
last year, eventually.

GR: WHAT’ OTHER!
ORGANISATIONS
ARE THERE?
VIYCO: This year, we
formed a residents’
association, and a stu-
dents’ organisation

We had a ‘people's
court, which was forced
to stop working after
the emergency. People
would bring their grie-
vances to the court,
instead of going to the
police. If someone was
found guilty, we would
sentence them to “‘com-
munity work”. Like if
there was anold granny,
they would have to
look after her, wash her

and clean her house and
so on, That sort of

work. +

GR: DO YOU HAVE
A PROBLEM WITH
DETENTION AND
ARRESTS?

VIYCO: Yes, this is a
very big problem, Last
year, hundreds of peo-
ple were arrested and
charged with public
violence, arson, intimi-
dation, illegal gathering,
anything they could
think of. Once, children
as young as twelve
years old were arrested
for illegal gathering.
They were held without
bail for three months.
Then they got a fine of
R75.

GR: HOW ARE PEO-
PLE TREATED IN
JAIL?

VIYCO: We have heard
many complaints — of
bad food, assaults, beat-
ings, torture and elect-
ric shocks, all that.

GR: WHAT DOES THE
DPSC DO?

VIYCO: We try and
support the families of
those in detention, or
in prison. It is very
difficult for them.
Firstly, the bail money
is often very high — as

53

SOUTH AFRICA

much as R2500. Then
there are fines for
illegal gatherings and
so on.

The people also have
to travel long distances
to visit their relatives
in jail. The people who
were sentenced for pub-
lic violence have had no
visits since January, be-
cause their families
cannot afford to go and
see them.

GR: HOW HAS THE
EMERGENCY AFFEC-
TED YOUR WORK?

VIYCO: Weil, as we
said, some people were
detained. The police
have been quite active
— on June 16, the pol-
ice and SADF forced
people to go to work,

The emergency has
made it harder — we
have to meet in secret
and so on, But it has
not crushed the spirit
of the people. Our
organisations are very
strong, The people sup-
port the UDF, they call
for the release of Man-
dela and all political
prisoners, and for the
unbanning of the ANC
and other organisations.
‘The ‘spirit of no surren-
der’ lives on in Victoria
West.


LIBERIA

FRG LOAN FREEZE, ON-GOING PROJECTS
Monrovia DAILY OBSERVER in English 25 Sep 86 p 8
{Article by Martin Kerkula]

[Text] The West German Government has decided to freeze "all loans to Liberia
until Liberia is able to make a partial payment on its outstanding debt of
about $9 million.

The effect of this freeze which is not immediately..apparent may affect one
major development project, the Nimba County Rural Development Project (NCRDP).
Without the German loans, plans earmarked by government to extend the project
to other parts of the country will not be possible.

The reported freeze is said to be the result of Liberia's failure to service
its outstanding debts on various projects including the Monrovia~Kakata Water
Supply Project and the construction of a number of roads and bridges in the
country,

Commendation

Meanwhile, farmers in Duoplay, Vayenglay and Senlay Towns in Gbehlay-Geh
District, Upper Nimba County, have lauded the West German and Liberian Govern-
ments for establishing the NCRDP.

The farmers made the commendation when the first secretary at the German Embassy
Mr Egan H, Kochanke, visited the project site Monday to acquaint himself with
activities there,

The farmers noted that the NCRDP has helped to organize them into working groups
known as the Farmer's Development Association (FDA), adding that it has also
helped in providing various forms of technical and material assistance which
have up-graded the production capacity.

Speaking earlier in Douplay, Mr Kouchanke thanked the farmers and citizens for
the warm reception given him and his delegation, noting that it is the task of
both Liberia and West Germany to seek the well-being of the project.

He indicated that his embassy was interested in informing the peoples of Liberia
and German about the project as they look forward to seeing its success.

15



FIRST INDIAN, COLORED WOMEN RECRUITED FOR NAVY

Durban POST NATAL in English 29 Oct-1 Nov 86 p 5

[Text]

19274
cso;

3400/400

FOR the first time the South Afri- ,
can Navy is to recruit Indian, col--
oured and white women for train-
ing next year, the Minister of De-
fence, General Magnus Malan, :
has disclosed.

White women are at present em-
ployed in clerical positions in the navy.

House of Delegates MP, Mr Logan
Chetty, asked in Parliament whether
the SADF intended employing Indian
women in its permanent forces. .

General Malan told him in a written
reply the navy had only one intake of
Permanent Force women a year, start- -
ing in March/April.

“Recruitment for next year’s intake
of approximately 20 women, will be
effected amongst the white, coloured
and Indian population groups.

“It is expected that women of all
three population groups will be accom-
modated depending on the number and
quality of applications.”

General Malan said the personnel
policy of the SADF was based on the
philosophy that the defence of the coun-
try was the responsibility of all its in-
habitants within the restriction of exist-
ing regulations and provisions of the
law.

“Within the latitude of this philosophy
it is the policy not to differentiate be-
tween members of the Defence Force
on the basis of race, religion, language
or sex, with due consideration of Gov-
ernment policy, military customs and
local circumstances.

“The various populations groups in
the SADF are thus entitled to appoint-
ment and promotion on an equal basis.”

44

SOUTH AFRICA


SOUTH AFRICA

BRIEFS

AWB FEEDING PLAN UNDERWAY--The Afrikaner Weerstandsbeweging (AWB) has appointed
a party stalwart, Mr Giel Groenewald, to get its feeding scheme for poor whites
off the ground according to an announcement in the organisation's monthly news-
letter, Mr Groenewald's initial task is to keep statistics to enable "our
leaders to fight for the future existence of the volk". The AWK found there
were 35 schools in Pretoria which operated feeding schemes for some 800 children,
The AWB feeding scheme is already in operation, but it will be Mr Groenewald's
task "to get it off the ground", The newsletter says 250 bags of vegetables
have been distributed within two weeks of the organisation's inception.’ Arrange-
ments have been made to keep the vegetables at the Pretoria market. Every bag of
vegetables will be clearly marked with an "AWB--Ons Gee Om" (AWB--We Care)
sticker, [Text] [Johannesburg THE STAR in English 24 Oct 86 p 7] /9274

cso: 3400/390

48


Laying down criteria for the privatization of government activities, the
document notes functions that are so indissolubly related to the public
interest that they had to be performed by government officials, should not be
privatized.

These functions, however, often consisted of a variety of activities and the
possibility that one or more of these could be privatized should not be
excluded. Privatization of a function or activity could not entail a real
risk to state security or internal order.

Privatization could also not defeat the political, social or ecological
objectives served by a function or activity. The privatization of a function
also had to be reconcilable with the competition policy. This meant that
sufficient capacity had to be available, or potentially available in the
private sector to ensure competition for and during the performance of the
function or activity.

"The government sees little benefit in substituting a public monopoly for a
private one, which will then in turn have to be regulated.” Such monopolies
could however, be established on a partnership basis between the private and
public sectors, in appropriate cases.

A fifth criteria was that the privatization of a function or activity had to
be to the long-term benefit of the services users, the taxpayer, or to society
in general. This means that the continuation of the function or activity had
to be ensured, as far as possible, at a reasonable cost.

Anticipating objections--which would on face value appear to be valid--to
privatization moves, the document specifies that the fact existing state
cross-subsidisation will be distorted will not be accepted.

"If a service that is operated at a loss must be continued in the public
interest, the users should contribute to the maximum and any loss remaining
should be financed or subsidized in the normal manner through the exchequer."

The fact that a service or product would apparently cost more after
privatization would not as a result be a reason not to privatize. “Services
and products are often supplied by public institutions at a price below the
real cost.”

"Before an allegation of higher costs can be accepted, therefore, the full
real cost of the service for product will have to be determined by an
independent institution," the document says.

Int he case of socio-economic services, the state remained responsible for
assistance when it came to the really needy, and for providing services on a
scale and at a standard which the country could afford.

Opportunities for the privatization of both the production and financing of
specific activities had to be utilised as far as possible.

77



those countries. So often those workers are arrested and mistreated, and no
one hears even the vehement protests by Portuguese authorities that would be
justified in such cases.

The fact is that a curious feature exists in relation to the former Portuguese
territories in Africa. The stand on UNITA that has been adopted by such
countries as France or even the United States is such that Savimbi has even
been received as a chief of state, but that has not prevented the Luanda
government from wanting closer diplomatic and economic ties. But in the case
of Portugal, there are threats one after the other and intensifying boycotts
as part of what some people say is an unconscious attempt by Angola to
transform Portugal into its colony.

Like everything else, Realpolitik has its advantages and its disadvantages,
especially when taken to extremes. The minimum requirement is that it should
at least have positive results, And quick ones.

11798
CSO: 3542/7

10



SOME MEMBERS OF SPECIAL CONSTABLE FORCE ALLEGEDLY FORCED INTO JOB

Cape Town GRASS ROOTS in English Oct 86 p 1

[Text]

19274
cso:

3400/393

SOME men who went to
look for work as security
guards ended up being
trained for the new spe-
cial force, two women
have claimed.

The women said they
last saw their husbands
when they went to apply
for work as security
guards at the offices of
the ‘community services’
(formerly Western Cape
Administration Board).

One woman from New
Crossroads, who did not
want to be named for
fear of victimisation,
said her husband had
told her he had been
offered a job at commu-
nity services.

“He said he would
have to go for training to
protect himself at night.
He said he would be
picked up on Monday
August 11, But a man
from BAAB came to
pick him up on the ninth
instead,

“From that day I nev-
er saw my husband and I
don’t know what hap
pened to him. I took
another woman whose
husband is also ther to
find out from the BAAB
where our husbands

were. We were told to go
and look for them at the
mobile police station.

“When we came there
we were told that some
people came to the po-
lice station some days
but not every day. We
asked the phone number
for the camp where our
husbands are being trai-
ned. They said they did
not know.

Another woman from
Guguletu, who also did
not want to be identi-
fied, said her son had
gone to look for a job
earlier last month and
never returned.

“He phoned me and
told me he got a job as a
nightwatchman. When
we got there it was not
the kind of job they
promised. In fact, they
were being trained as
police.

“He asked me if I got
the money because they
were .told the money
would be sent home. I
told him I never got any
money.

“He told me they were
not allowed to go home.
He said he noticed many
witdoeke there. He and
others were told they
were comrades.

52

SOUTH AFRICA


Victoria West Youth Congress Discusses Problems of Town
(GRASS ROOTS, Oct 86)...ccseececececceeccrcececeee eseenee

COSATU Union for Domestic Workers
(THE NEW NATION, 23 Oct-5 Nov 86)..cccsceesececsccesccens

Azaso Criticizes Opponents of Academic Boycotts
(THE STAR, 27 Oct 86) ...cecccecccvcccccccecreressseeseens

SOCIOPOLITICAL/OTHER

Boesak Says Nation's Press Must Take Risks
(THE STAR, 29 Oct 86)...cccccccccccccceccceerescrreeesees

Saths Cooper Discusses Departure for U.S.
(Saths Cooper Interview; POST NATAL, 29 Oct-1 Nov 86)....

Muslim Leader Gives Views of Libya, Qadhdhafi After Visit
(GRASS ROOTS, Oct 86). .cececccecccencescorcscecsee eeveeee

Muslim Leader Speaks at Call of Islam Meeting in Cape Town
(Jean Le May; THE WEEKLY MAIL, 31 Oct-6 Nov 86).......+. .

ECONOMIC

Document Outlines Views on Economic Strategy
(SAPA, 7 NOV 86)..ceeeccccasveeccceeeceeceeteees seeeeeees

Official Outlines Economic Plan
(SAPA, 5 NOV 86) .peeceecccrccccccecerteecesoeneecrecreces

Press Conference After Business Summit Reported
(SAPA, 7 NOV 86). .cccceeccccccce ccc seee tener eeseeereeseee .

ASSOCOM, FCI Comment on Business Conference
(SAPA, 7 Nov 86)..

Uncertainty, Unrest Blamed for Economic Downturn
(SAPA, 7 Nov 86).......-

Minister Speaks on Privatization, Deregulation
(SAPA, 7 Nov 86)..

Conference Document on Privatization Plan
(SAPA, 7 Nov 86)....

Report Notes Negative Impact Potential of Wage Parity
(SAPA, 3 Nov 86)......esececerceeves

State Spending Well Over Budget
(Mick Collins; BUSINESS DAY, 20 Oct 86)..

-~d-

53

54

55

56

57

60

61

62

64

68

70

71

73

75

79

80



Mr Warren Clewlow, of the South African Foreign Trade Organisation, who
represented the private sector with Mr Meyer Khan, of SA Breweries, at the
press conference, emphasized the fullest support of the businessmen for the
economic strategy.

Although the absence of black business leaders had been felt, the economic
strategy plan was not only for whites, but for all population groups.

If it succeeded it would definitely clear the way for a better South Africa
for all and the degree of support it received would determine its success.

Asked what today's conference and the economic strategy meant for the man in
the street, Mr du Plessis said the discussions should be looked at as an
indication of hope and jobs for the jobless.

Mr Clewlow said the meeting today had been a genuine effort by business to see
that the plans to revive South Africa's economy succeeded. Both he and Mr
Khan conceded that political issues had featured strongly in the discussions,
particularly calls for the abolition of the Group Areas Act, but emphasized
that "specifics" had not been dealt with.

Generally, the need for government to speed up its reform process had been
emphasized and the response from government had been “sympathetic.”

“We made it clear we want a free and open society for all," Mr Khan said.

The banned African National Congress--with whom leading businessmen from South
Africa have held discussions over the last year--and its imprisoned leader,
Nelson Mandela had not been raised.

Dr Human emphasized “the discussion was free and open to all."

Summing up, Mr du Plessis said the positive aspect of the conference today was
that both sides had been prepared to put aside their specific interests to
concentrate on their mutual interest. This was how to get the South African

economy back on its feet and to help those who were so much in need.

/12913
cso: 3400/399

69



JFK MEDICAL CENTER RETRENCHMENTS

Police kemove Protesting Workers

Monrovia DAILY OBSERVER in English 30 Sep 86 pp 1, 6

[Text]

cores of retrenched workers of the John F.

Kennedy Medical Center in Monrovia yesterday
stormed the hospital’s compound to demand three
months salary arrears and other benefits.

However, the angry
employees dispersed after a
squad of riot police moved
in on the hospital grounds.

The workers, who
described the recent retren-
chment exercise as
“unjust”, said they wanted
nothing else but their
salaries and other bencfits
including transportation
allowance for the last three
years, 1.D. card fees refund
for (wo years and their sav-
ings bond certificates which
they were entitled to since
1981.

Speaking to the workers
after an emergency meeting
yesterday, the Chief Ex-
ecutive Officer at the
center, Dr. Walter Brum-
skine, told the retrenched
employees that they were
not laid off because they
had been unproductive, but
because of the government
mandate ‘that we reduce
our staff".

Dr. Brumskine, who was
heavily guarded by security
officers, observed that
J.F.K., like any other
public corporation, had
received a mandate to
reduce its staff by 20 per
cent. He added, however,
‘thatthe J.F.K, management
worked it out to have
retrenched only 13 per cent
of its employees.

He said this number af-
fected all categories of
workers — from ad
ministrators to cleaners.

He assured them that
they would. be given
preferential consideration
whenever the economy of
the country improved.

* Asked: by ‘the workers
whether they have seen new
faces in the employ of the
J.F.K. since the center was
short of funds, Dr. Brum-
skine denied knowledge of
any new employment. He

added: ‘‘We will not replace
anyone now’

Meanwhile, Dr. Brum-
skine had disclosed that
employees of J.F.K. in-
cluding the 300 retrenched
workers will today begin
receiving their July salary
cheques.

On the question of when
the employees’ August and
September salaries and
benefits owed the retrench-_
ed workers would bel
disbursed, Dr. Brumskine
declared: ‘1 do not know
-when"*.

The management of the
center has, however,
assured the more than 300
workers recently laid off
that whenever their salary
and other benefits are
ready, they will be duly in-
formed through an an-
nouncement.

Last week the J.F.K.
Management disclosed that

24

LIBERIA

it was stréamlining its staff
becaluse of the “‘shortage of
funds at the hospital’? and
to ensure a functional in-
stitution.

At the time, Dr. Brum-
skine said the process would
save ‘‘a sizeable portion of
J.F.K.'s budget, which cur-
rently stands at a staggering
$6.7 million”.

The measure, according
to Dr. Brumskine,
the recommendation of the
1983 John Snow Commis-
sion or Study Group, which
came to Liberia (through
USAID) at the request of
the Liberian Government to
conduct a comprehensive
study of the operations of
the John F. Kennedy
Memorial Complex.

In its report, the commis-
sion found three basic
faults, leading to three ma-
jor recommendations.



training in South Africa should enable us to enjoy labour costs per unit of
output in certain industries lower than is the case in many competing
countries.

"This, in turn, will create further export opportunities.”

/12913
cso: 3400/399

67



MUSLIM LEADER GIVES VIEWS OF LIBYA, QADHDHAFI AFTER VISIT

Cape Town GRASSROOTS in English Oct 86 p 5

[Text]

THE national co-ordina-
tor of the Call of Islam,
Maulana Faried Esack,
recently met Libyan lead-
er Colonel Mu’ammar
Qadhafi.

The meeting took place
during Maulana Faried’s
trip overseas to attend the
conference of the Islamic
Call of Society in Libya
form September 17 to 24.

He spoke to Grassroots
about his impressions of
Libya and Colonel
Qadhafi. .

“I found him to be a
very warm person who
loves fife. He enjoys the
acceptance and affection
with which people meet
him and until a few mon-
ths ago he would walk
around the streets and
bazaars of Tripoli quite
freely. The ordinary peo-
ple are very angry at the
way the Americans tried
to kill him by bombing
his house. He no longer
lives in one house and
they don't see him in the
streets any longer.

19274
cso: 3400/391

“He is also the symbol
of unity for the Libyan
people who were very
divided before the revolu-
tion. Only three percent
of the Libyans lived in
houses before the revolu-
tion and now every Liby-
an has the right housing.
Rented houses are illegal
and the houses belong to
the families who live in it.
Every area has its own co-
operative market where
the local people share in
the profits.

“The country is gover-
ned in a very unusual way
with street committecs,
area committees etc. upto
national people's commit-
tees. People can change
the delegate to any com-
mittee at any stage and
the delegates get paid in
the way “fP's get paid
because its not a perma-
nent job.

The Libyans are deeply
committed to a life of
equality: and justice for
all. This has made them
develop strony ties with
countries like Nicaragua

60

SOUTH AFRICA

‘and Cuba. It also means
that they have earned the
anger of Reagan, Thatch-
er and all other imperia-
list. powers. ‘They have
then tried to point Qad-
bafi as a mad person. I

“found him to very calm

and, sober, Although J
can” understand why he
frightens the Americans.
He is committed to revol-
ution, even if it means
violence, to create a just
society,

“The one problem that
I find with them is that
they often feel things very~
deeply without analysing
and thinking through:
strategies carefully. They,
for example, feel strongly
about the unity of all
Africans and have been
supporting the PAC for
eight years.

“Tt is only now that
Qadhafi has met Comra-
de Oliver Tambo at the
NAM summit at Harare
that the Libyans have
decided to support the
ANC.



LIBERIA

MARITIME COMMISSIONER ON CONTINUATION OF LIBERAL MARITIME POLICY
Monrovia DAILY OBSERVER in English 24 Sep 86 p 8

(fext] Liberia will continue to pursue a "liberal maritime policy" while
maintaining its existing fleet of 1,763 vessels, Mr George Cooper, the new
Commissioner of the Bureau of Maritime Affair, said here yesterday.

He observed that the nation's maritime program continues to face "severe
difficulties" in generating revenue and increasing the size of its fleet.

Noting that the difficulties were acute, Mr Cooper disclosed that Liberia
realized a staggering $19 million in maritime profit for the period 1984 to
1985 and that this figure further decreased by $2 million for the period 1985
to 1986,

The new Maritime boss was addressing a press conference in Monrovia yesterday
to mark the 27th celebration of World Maritime Day today and his appointment
to his new post,

He noted that difficulties in generating maritime revenue had been especially
sharp since 1979 for ships between 80 million and 53.9 gross tonnes.

On the Gulf War, Mr Cooper revealed that over 40 Liberian-registered tankers
have been attacked since the war began--although they were operating outside
the exclusion zone, He said Monrovia has protested these attacks at the United
Nations and other international fora.

Earlier, the Maritime boss expressed gratitude to President Samuel Kanyon Doe,
Finance Minister Robert Tubman and the Liberian Senate for his appointment.

He revealed that several Maritime Bureau executives are currently in town for
talks aimed at providing "greater exposure" to Liberia's maritime program
in the Far East and Europe, among other areas,

Mr George Arku, Deputy Commissioner and Counsellor at the nation's maritime
office in Geneva, Switzerland,

19274
CSO: 3400/410

17



AFRC WRANGLINGS ¢

NIGERIA

PROMOTIONS, DEMOTIONS, SHAKE UPS

London AFRICA CONFIDENTIAL in English 15 Oct 86 pp 1, 2

[Text]

‘Satisfaction in Lagos.at-the relatively.smooth transi-
tion to the Second-tier foreign exchange mechanism
(SFEM) has been shattered by.a. sudden and dramatic
demonstration of the rifts: in the Armed : Forces
Ruling --Council..(AFRC)- led by. General Ibrahim
Babangida. The. dismissal of Commodore Ebitu Oko
Ukiwe,.the former. Chief of.General Staff.and thus
the number two. in the political hierarchy . has been
widely. interpreted as proof that Ukiwe was Opposed
to.the SFEM system, and had. paid the price for
heing.o on the wrong side of the argument. But sources
close.to,Dodan Barracks,. the amilitary headquarters,
Suggest ‘other, snore personal reasons for Ukiwe’s
loss-of position.
Ukiwe. had.been in-trouble at the.end of. September
because .of..an argument over. ‘protocol .and pre-
cedence at the-1 October celebrations at the capital,
Abuja...To. his surprise, Ukiwe. discovered that last
aninute changes -had. pushed ‘him .out. of .his place
hext to the President and assigned him the fifth or
seventh place on. the grandstand. Babangida -had
aeverted to using.a strictly military seniority order,
:despite-Ukiwe’s argument that the, 26th independence
.gelebrations were.a.political event and that changing
the protocol would perplex-and, worse, intrigue, the
foreign delegations which were bound to be present.
On,28 September, the matter seemed to have been
settled by.compromise. The-official version was that
security demanded that.the regime’s two most.senior
figures not.be together in the one place.at the one
time. .Ukiwe eventually saw the President off. from
Ikeja airport and.the smiles on this occasion seemed
-to-indicate the quarrel was over.
«-: But.a-week later, at an AFRC, meeting, which had
already gone-on for six hours, Ukiwe was asked to
leave the room while his colleagues discussed his
‘indiscipline’, ‘specifically. his refusal to be present at

Abuja. Since the AFRC.does not, by tradition, vote
on its deliberations, Ukiwe’s dismissal would seem
to have been unanimously approved, and his humili-
ationwas completed by the decision to promote: his
arch-rival in.the Navy, Rear Admiral Augustus (Gus)
Aikhomu from.chief. of naval. staff to CGS...Aikh-
omu,--one-of the few senior. naval.officers to have
tisen from the ranks, was passed over on 27 August
this year when Ukiwe got the top staff job. The two
‘men are entirely dissimilar, Aikhomu is quiet, and,a
dull speaker, while even .Ukiwe’s friends. testify to
this flamboyant character, and indeed abrasive per-
sonality

Ukiwe.as generally credited with having.oeen an
intelligent and.competent administrator, if at times
arrogant. and possessing little patience with the short-
comings of his colleagues in both the AFRC and.the
Federal Executive Council. He had,. in..addition,
taken pains to publicly disassociate himself from
certain actions taken by the government, as when
he deliberately revealed to the press that the AFRC
had not actually discussed Nigeria’s proposed admis-
sion.to the Islamic Conference Organisation earlier
this year..On this occasion, in the course of a press
conference, Ukiwe had turned to Air Vice-Marshal
Ibrahim Alfa, and asked ‘‘Have we discussed the
mattter’’,-obliging Alfa to admit.that the AFRC had
not yet.done so.

But.there were also matters of personal rivalry,
especially with the military intelligence chief, Col.
Halilu Akilu,.and the chief of army staff, Major-
General Sanni Abacha. Both felt that Ukiwe, who
had already stood in for Babangida three times on
Official visits abroad, was. getting too much pol ical
exposure. Abacha was himself in.a difficult position.
In the latest.and most delicate pecking order so. far
established in Nigeria, the job. of what was previously

34



COSATU UNION FOR DOMESTIC WORKERS

Johannesburg THE NEW NATION in English 23 Oct-5 Nov 86 p 15

[Text]

19274
cso:

3400/393

THE Congress of SA
Trade Unions will
launch yet another natio-
nal trade union ~ this
time for domestic wor- .

kers.

“The launch, scheduled
for November 29, will
fake place in Johannes-

But numerous prob-
lems face the workers
and organisers. The
most important is the
exclusion of domestic
workers from the Labour
Relations Act. No legal
measures regulate
wages, working condi-
tions, leave and sick
pay, or unemployment
insurance.

Their exclusion from
the country's labour laws
has facilitated their
exploitation and abuse.
It is, for example, not
uncommon for a dome-
stic worker earn R40 a
month or less.

In the absence of legal
protection, housing,

ealth and wage rates
depend entirely on the
benevolence of employ-

ers.
And because workers
are scattered over wide

areas in small numbers, '
any attempt to draw
them into a single union
Poses a serious challe-*
nge to the organisers...

itis the pxly Sector
where employers coul
match the ae of the
‘union in terms of num-
bers.

Employers in some
areas have already
displayed intense hosti-
lity towards union

organisers -- threatening
to kill them. Letters
warning that the organi-
sation will be rooted out
have also been circula-

union's imme-.

diate demands will

include a 40-hour

working week, leave

Pay, marternity benefits
notice pay.

It will also demand
that its members be
covered by the Labour
Relations Act, and that
they be paid a minimum
wage of R200 a month.

osatu regards the
launch as a "great step
forward that will bring
unity and strength to
domestic workers from
around the country".

54

SOUTH AFRICA



FOREIGN MINISTER REJECTS CUBAN TROOP WITHDRAWAL LINKAGE

Monrovia DAILY OBSERVER in English 7 Oct 86 p 8

[Text]

19274
cso:

3400/408

The Government . of

, Liberia has “categorically”

rejected the call for the

: withdrawal of Cuban troops

‘as a condition fer Namibia's
independence.

Liberia's Foreign Minister
J. Bemard Blamo said -the
“linkage of extraneous
issues, particularly the
withdrawal of Cuban troops,

was calculated to deny the
Namibian people their in-
alienable rights to  self-
determination, freedom and
independence.”

Dr. Blamo, who was
speaking recently:at the 41st
regular session of the United
Nations General Assembly
in New York, said the
Liberian Government “con-
tinues to view the question
of Namibia.with grave .con-
cern.”

He said, “South Africa's il-
Jegal occupation of Namibia,
through defiance of U.N.
Resolutions and the setting-
up of an interim administra-
tion, have been supported
by foreign economic in-
terests to maintain access to
the resources and wealth of
the territory.”

The foreign minister fur-
ther said, “Liberia supports a
negotiated settlement in

Namibia on the basis of U.N.
Security Council Resolution

435 with full participation of
the South West African Peo-
ple’s Organization
(SWAPO), as the sole and
authentic representatives of
the Namibian people.” —

20

LIBERIA



DROUGHT AGGRAVATES ACUTE WATER SHORTAGE

Johannesburg BUSINESS DAY in English 29 Oct 86 p 6

[Text]

19274

cso:

3400/395

THE facing SA’s water au-.
thorities is ing more acute
with every day of the ight.

And appeals to industry and com-
merce to save water are, in many
cases, falling on deaf ears.

Water experts say the effect of
drought on the state of dams in most
summer rainfall areas is alarmin;

Authorities are now making

fore it is too late.
The ® problem is highlighted by the
lack of rain which causes greater
water -consumption by irrigation.
And irrigation

volumes used.
The authori

are faced with the

daunting task of educating consum-
ers that unless they heed the warn-
ings, restrictions will become a way
of

Mines and industries are now be-
ing encouraged to re-cycle — a
cess which involves ig pollut-

ed water and effluents from

factories and sewage systems.
‘The major causes of pollution

have been placed squarely at the:

doors of mining, industry and farm-
ing. In terms of legal requirements
industrial effluents have to be puri-

by far the biggest
consumer taking 69,5% of the total’

fied to specified standards before be-

ing released into rivers.

In agriculture, however, that is not
ractical so effluents, fertilisers and
erbicides are conveyed into

streams, rivers and dams.

Farmers can make a valuable con-

tribution by avoiding using excessive

quantities of fertiliser and toxins and
by practising cleanliness. . :
__ Agriculture can also contribute by
improving irrigation methods. and:

in Israel using the drip irrigation
method.

Compared with the sprinkler
method, water consumption is re-
duced by about two. However,
watering by the drip method takes
about four times as long as the sprin-
kler method. i

+ Industry and ‘mining--have been
asked to reassess essential water
‘consumption in normal operational
processes with a view to greater effi- .
ciency. Looe

WATER USAGE
~Direct Use- -
TOTAL 100%

Trngaton 635%:

amet day
vse 124 (cng mes) 12.2%

Power Sl
troertbot 238 consent Ste ae 21%

87

SOUTH AFRICA



6 BRIGADE TRAINING SET FOR JANUARY

Harare THE HERALD in English 18 Oct 86 p 1

[Text]

19274
cso:

3400/388

‘TRAINING of 6 Brigade:
whose members are now
being recruited may begin
in January next year, the
Minister. of State (De-
fence), Cde Ernest Kadu-
ngure, said yesterday.
‘He was receiving keys
to the army’s tacticat
trainer housed in the new
Mugabe Hall from the
‘Acting Minister cf Public

Construction and National.

Housing, Cde David Kari-
manzira, at a hand-over
ceremony at the KG VI
arracks in Harare.
There way an urgent
need to build barracks for
6 Brigade so that when
training of its members
begins next year accom-
modation should be ready.
Cde Kadungure said
eonstruction of the tacti-
cal trainer had been given.
top priority by the rele-
vant ministny and wished

that similar treatment
could be giver to the
construction of “decent
‘barracks to accommodate,
our troops’ and mainten--
ance of existing ones. :

This, he said, was
urgent because the coun-;
try was expecting rains:

Tne minister cited the’
ease of some of the exist-;
ing battalion - barracks
and said these were in “a ‘
terrible state that our:
troops would be said to
‘be living hardly under 2
shelter”.

In Hwange, where the
12 Infantry Battalion was
stationed, the buildings
were not cnly considered
to be in a dangerous con-
dition, but were unfit for
human -habitation.. The
entire complex gave a
feeling of depression and
coulg adversely .affect the :
morale of the troops. |

41

ZIMBABWE



19274
cso:

wholesale sales were 10,5% higher than
in May, but were still 8,9% lower than in
the same period last year,

C) Retail sales declined for the first seven
months of the year, but recovered some-
what in August and September. In
tember, they were still 54% lower than
in the same period last year.

O In September, new motor vehicle sales
were 18% higher than in March, but were
still 12,9% lower than in September last
year,

O The value of imports increased sub-
stantially in the third quarter, according
to official estimates. This, however, was
partly because of fears of trade sanc-
tions. But the value of gold and other
exports Increased considerably.

OThe Reserve Bank's gold and. forel,
exchange reserves. increased to R35!
»3bn) at the end of September. Fre.
Inary estimat e figure for
October even Righer Pt
CSA's trade surplus rose to R1,55bn in
September, ‘after’ rising to Ri,12bn in
August from R994,2m in July. In a sur-
prise development, the Commissioner
for Customs and Excise included. the.
breakdown of world trading zones and 22
categories of imports and exports, which

3400/397

had been omitted from the statement for
August, At the time, this was widely
interpreted as a move to make it easler
for SA to circumvent trade sanctions,

SA is now well-placed to handle any
rise in’ imports resulting: from &
and demands for repayment of. debt by
foreign bankers,

“It ts tronic that the thira quarter —
the period in which both the juropean
Community (EC) and. US im; new
sanctions — has turned out the best’ for
the economy and the balance of pay-
ments for some time,” says De Kock.

“Nevertheless, there is little doubt
that’ the combination of capital outflow
and sanctions will prevent the upswing
from gaining as much momentum as {f
might otherwise have done and will re-
tard economic growth in SA in the longer
term,” he says.

Despite the improved outlook, the au-
thorities have scaled down projections of
GDP growth for the year to less than 1%.

. “However, the main improvement will
be reflected in the 1987 growth rate,
which could bein the order of 3% or
higher,” says De Kock.

82



my orientation, but that
doesn’t make me a
mechanist.

i

Q: All the major extra-par- :

liamentary organisations
say they are out to unite
people against the system,
whatever their ideological
differences. What would
your message be to those
organisations, those leaders
you meet, about how they
can actually achieve this
type of togetherness or find
‘common ground?

SC: I think a common set
of principles which do not
infringe on personal, terri-
torial, and ideological in-
terests can be looked upon
as the basis for a limited
co-operation on specific
objectives against the sys-
tem as it is now.

On other more specific
campaigns and pressures
there can be differences
about whether participa-
tion in a joint programme
would be fruitful.

But that should not be
counter-productive, it
should not become a reac-
tionary or counter-revolu-
tionary position where you
have downright condem-
nations, dismissals, at-
tacks, and sabotage of
each other’s specific

_ programmes.

But for those pro-
grammes that can be
agreed to at a broad mass
level and which are in-
formed by these few basic
points of departure, if that
can be agreed upon, there
can be more and more
working relationships de-
veloping, more and more
understandings between
individuals, between
groups of individuals with-
in those organisations, and
between the organisations
themselves.

I think at a fellowship
level there is very little
problem because basically
followership is follower-
ship. People want to see
freedom in their lifetime,
and not even at the end of

19274
CSO: 3400/398

their lifetime. They want :

to see it now.
People will support any
body, any group, that ap-

pears to be giving them '

something that is going to
bring them closer to that
goal. a

It doesn’t matter for
them whether that partic-
ular little group is actual-
ly Charterist or BC or 10-
point Programme in orien-
tation or Africanist. But if
the goods begin to be deli-
vered, or are seen or ap-
pear to be delivered, peo-
ple give their support.

You find people support- -

ing certain specific things
that the UDF does ‘and
still support other things
that Azapo does and vice
versa, and we need to
guard against any megalo-
maniac tendencies by
rushing to make claims
and thus attempting to
foist hegemony on areas of
struggle.

‘The struggle doesn’t be->
long to any groups, indi-
viduals, or organisations.
The struggle rightfully:
rests with the people who;
actually prosecute it. \

Once we begin to over-}
come the ego and person-'
ality constraints that little
petty organisational
power amongst the power-
less gives us, we'll be able
to get more to grips and
reach a realistic solution
to the divisiveness that
exists amongst the resis-
tance groups, a la the Zim-
babwean situation.

And when you are talk-
ing of contesting an elec-
tion or a referendum you
then go your ways and
fight your contests on the
planks that you stood for
and are then prepared to
die for.

But until that point is
reached we need to have a
solid united effort because
no group is going to suc-
ceed on its ow!
Q: How optimistic are you
about the chances of being
able to work out some

59

working accommodation in
the light of the bitter feud-
ing at times?

SC: Unfortunately, we
have a legacy of blood, we
have a very fearful suspi-
cious atmosphere. Of
course South Africa is a
paranoid society, but
amongst the resistance
groups, within them, you
have this fear and suspi-
cion, largely contributed
to by the system and many
have fallen prey to that.

We need to recognise
who the enemy is. Are we
turning to the enemy or
are we turning to our-
selves?

Are we our own worst
enemies? How can we
prosecute this struggle
when we begin to kill each
other, attack each other,
and our people lose faith
in the struggle?

People are saying that if
you are doing this now,
what will you do when you
get freedom?

My optimism is based
‘on the fact that if we don’t
have this unity, we're
doomed. We'll have a per-
petual conflict situation as
in Lebanon where nobody
is winning.

The people are losing
little puny battles for lit-
tle bits of the wall. At the
end of the day it is the
imperialists who win and
it is the local warlords
who succeed in keeping
the situation on fire.

And I'm afraid that
that situation is reaching
our country in a very big
way and from time to
time has flared up.

The Emergency has to
some extent provided the
opportunity for people to
be forced to face a com-
mon threat, to be forced to
flee, to be in hiding togeth-
er, to be in detention to-
gether, to du things in a
common fashion.

If the system can force
us to do those things, why
the hell ran't we?



GOVERNMENT WORKERS' EARNINGS SOAR

SOUTH

Johannesburg BUSINESS DAY in English 20 Oct 86 p 1

[Article by Gerald Reilly]

[Text]

19274
cso:

LATEST government-
ding figures show that
its salary and wage bill has
eee by 27%, despite ;
President P W Botha’s pro- i
mise to cut the civil ser- \
vice bureaucra
epee April and June :
this ye ar, government paid * .
‘out R1,356bn in salaries and wages, a
27% increase on the April-June quar-
ter the year before.

Central Statistical Services figures |

show earnings of central government
workers rose sharply in the first quar-
ter of the financial year.

And it was not only because of the
10% increase granted to all public-
sector workers from April.

Another factor in the jump in the.
salary and wage bill was the 465%
increase in central government staff to

3400/396

almost 400000, compared with the '
figure at the end of June last year.

Workers’ average earnings rose by | H
21,5% to R1 138 a month.

‘In the current year’s Budget, person- |
nel expenditure for the year was esti- '
mated at R4,613bn, up by 22% on the |
previous year.

A breakdown shows the 152 650
white workers earned R782,2m, a
27,7% rise.

83

AFRICA



Student Groups Intervene, Classes Resume
Monrovia DAILY OBSERVER in English 8 Oct 86 pp 1, 6

[Text] The meeting reportedly

Academic activities at
the University of Liberia
returned to normal. yester-
day after nearly one week of
crisis which hampered: the
smooth functioning of the
nation’s highest institution
of learning.

Last Tuesday, ‘classes at
the university came to a
standstill after the UL sup-
port staff downed ‘their
tools in demand of their
salary arrears, the refund of
fees deducted from their
salaries for insurance by the
UL Administration. The
staff also demanded salary
increase.

‘The support staff's go-
slow action developed into a
chain reaction with teachers
abandoning their classes int
support of the support
staff's demands,

One lecturertold the Dai-
ly Observer that they were
not refusing to hold classes.
“It is tie administration
that is refusing to pay us’,
he said.

The support staff agreed
Friday to work after what
was described as “‘the time-

ly intervention of the Stu-
dent Unification Party
(SUP), the Student Integra-
tion Movement (SIM), in
the interst of the UL stu-
dent body.'* Another
worker confirmed that
salary arrears for July had
been disbursed and hoped
that the other arrears would
be paid shortly.

The faculty of the
University of Liberia met
with the UL administration
on Monday in an attempt
to resolve a number of
pressing issues before thes
fesume work for the week

ended in a deadlock.

The faculty, however,
met again Wednesday and
agreed to return to work.

The week-long crisis at
UL has largely affected the
already unstable academic
calender. Some students are
apprehensive that if. these
numerous problems con-
fronting the institution per-
sist, the university may: be
closed temporarily until
solutions are found to those
problems,

19274
CSO: 3400/414

28



and chairman of Centrist Youth, concerning the visit he recently made to that
African nationalist movement's base in Jamba.

Having attended the 6th UNITA Congress at UNITA's invitation as part of a
group of Portuguese guests, Manuel Monteiro was able to get a close look at
the reality of the war pitting Savimbi's movement against the communist forces
of FAPLA [People's Armed Forces for the Liberation of Angola] (MPLA) and the
Cubans.

Manuel Monteiro emphasized to us: "One Cuban who had surrendered to UNITA when
he was about 17 years of age (he is probably about 21 years old now) told us
that he had been told in Cuba that he was going to Angola to fight against
South Africa. But he encountered a very different reality later, when he
found that his fighting was directed exclusively against UNITA.

"Incidentally, that is not the only peculiarity to be noted in this conflict:
SWAPO [South-West African People's Organization] and the ANC [African National
Congress], which have ‘stretched’ their main bases into.northern Angola (it
makes one want to ask if that is where they encounter the South Africans)
often serve as the ‘advance guard’ for the MPLA, according to what I was told
by UNITA officials. UNITA's leaders went so far as to say that SWAPO soldiers
disguised in their [UNITA's] uniforms enter villages to steal, trying in that
way to instigate revolt against Jonas Savimbi's movement."

Manuel Monteiro also told us that UNITA now enjoys solid U.S. arms support and
has been progressively establishing itself in Angola, as is shown both by the
existing bases and by the untold quantity of Russian war materiel which is
captured and later used in the struggle against the MPLA.

Presence of Rosa Coutinho's Mercenaries

Another aspect conveyed to Manuel Monteiro by UNITA's leaders has to do with
the presence on Angolan soil of Portuguese mercenaries in the service of the
MPLA.

On that subject, the CDS [Social Democratic Center Party] leader told us:

"A high official in UNITA, General Wambo, told me that those mercenaries had
been hired in Portugal by the regrettably well-known Rosa Coutinho and that
their chief purpose is to provide military training for FAPLA's soldiers.
Incidentally, according to UNITA leaders, those "soldiers'—-most of them 14,
15, or 16 years of age--are sent to the front with only 2 weeks of military
training (Savimbi's movement gives its recruits about 6 months of intensive
training)."

At the Jamba base, Manuel. Monteiro also visited hospitals, production units,
and schools, where he noted that the instruction is given in Portuguese.

He engaged in significant dialogue with a young doctor who, after being
connected with the MPLA, now carries on his profession at that UNITA military

base:



POLICE SALUTED FOR BRAVERY, LOYALTY

Johannesburg THE STAR in English 31 Oct 86 p 9

[Text]

19274
cso:

3400/400

WELKOM — It was sad that so
many policemen had in the past
year been subjected: to severe
intimidation and: isolation by
, some of their own people, said
Brigadier Johan Swart at a Tha-
"bong medal parade last week.
Brigadier Swart is Divisional
Commissioner for the South
African Police.

More than 50 members of the
SAP received medals and bars
including the SA Police Star, the
SA Police medal for loyal ser-
vice and the SA Police medal
for combating terrorism.

The men, Brigadier Swart
said, had joined the SAP be-
cause they were concerned
‘ about the preservation of law
and order. .

’ “Today I salute these brave
and loyal men and it is only fit-
ting that so many of them have
been ‘afforded recognition for
many ‘years’ service during
which each displayed an irre-
proachable character and exem-
plary conduct”,

43

SOUTH AFRICA


Joao Soares: There is an undeniable reality which became very clear at the
congress, and it is that it is impossible for the Russians, the Cubans, and
the” MPLA {Popular Movement for the Liberation of Angola], which brought them
into Angola, to eliminate UNITA militarily. UNITA has established itself and
now controls a substantial part of Angolan territory. In those circumstances,
there will be no solution except a negotiated one, which necessarily means the
withdrawal of foreign troops: Russian, Cuban, and also South African if there

are any.

TEMPO: One of Jonas Savimbi's objectives is to hold elections in Angola.
Does that seem possible to you, or is it utopian?

Joao Soares: I am not an expert on African affairs, but why should elections
not be possible in Angola if they were, for example, in former Rhodesia? For
that matter, Portugal is bound by the Alvor Accords to hold elections in
Angola to determine which of the three Angolan movements that fought against
Portuguese colonialism should exercise power in that country in a democratic

way.

TEMPO: Do you feel it is reasonable to call UNITA a “puppet group," which is
what it is usually called by the government of Jose Eduardo Santos?
Joao Soares: Not at all! I feel that it would not enter anyone's head,

especially after observing what UNITA is, to say that UNITA is a puppet group
in the service of South Africa or anybody else.

TEMPO: What is the UNITA Army's state of mind toward the MPLA? Could it be
said that hatred is being stirred up?

Joao Soares: That is perhaps the thing that surprised me most during my brief
visit to Angolan territory. It would be natural to find a lot of propaganda
and an atmosphere of hate toward the MPLA, but frankly, I did not observe
anything like that. Quite the contrary. The propaganda is directed against
the presence of foreign forces, not against the MPLA. UNITA feels that
regardless of the mistakes that may have been made by the MPLA's current
leadership, it is going to be essential to sit down at the same table to

discuss the future of Angola.

CDS Deputy on UNITA

Lisbon O DIABO in Portuguese 16 Sep 86 p 17

[Report on interview with Manuel Monteiro, CDS deputy and chairman of Centrist
Youth, by J.L.; date and place not given]

[Text] "According to its chairman, Jonas Savimbi, UNITA wants and desires
peace, but for peace to be possible, it is important for the Russians and
Cubans to leave Angolan soil. Incidentally, the 40,000 Cubans in Angola (more
than the Portuguese Army had there during the war in that former overseas
province) are pillaging villages and raping women while the Luanda government
stands passively by." That is what we were told by Manuel Monteiro, deputy



FIRST DOCUMENTATION OF BEIRA CORRIDOR PROJECT RELEASED

Harare THE FINANCIAL GAZETTE in English 10 Oct 86 p 2

[Excerpts]

‘THE Standard Chartered Mer-
chant Bank of Zimbabwe has
released some of the first
documentation related to the

in the Beira Corridor Project is
accompanied by an application
form for the initial prospectus:
Essentially it would appear that
the Beira Corridor Project is amas-
sive business self-help scheme. The
36-month period that has been al-
located to revamp Beira and the
road and rail links between Beira

and Zimbabwe is, the information.

paper says, to be funded by raising

BCG Ltd, as the public company
will be known, is offering 400
shares to interested companies in
Zimbabwe. The information paper
explains that profit on the shares is
not the main, or should not be the
main motive for investment.

Rather the purchase of the shares
should be considered to be an in-
-vestment in the establishment of al-
ternative export routes.

‘The information paper also says
that “‘subscription to BCG will not
afford preferential rights of access
to the facilities of the corridor, or
the awarding of contracts in connec-
tion with the. development of the
._ By the issue of the shares, it is ul-
timately hoped to raise $2million.
However, initially it is expected that
only 200 shares will be made avail-
able, giving an initial issued share
capital of $1million. $250 000 will
be set aside for the purchase of 30%
interest in Beiracor, the Mozam-
bique operating company, which
will also be 30% owned by IBG, in-
corporated in the Nordic states, and

40% will be owned internally wi-
thin Mozambique by the Impresa
Austral de Desenvolvimento, a
company registered in Mozambique
on similar lines to BCG in
Zimbabwe.

from within Mozambique. .

The entire project has been
broken down into three phases.
Phase One is being entitled ‘“The
Emergency Phase’’. The objectives
of this are to achieve a doubling of
the present capacity of the system
within six months, whilst simuitane-
ously improving the efficiency with
which goods are handled in the port.

Phase Two has been entitled
“The Core Phase”’ and this consists
of the implementation of other in-
frastructural and service projects to
raise the capacity of the port to ade-
quately service the sub-region, or in
other words to be able to handle
most of the goods from the Sadcc.
countries in the immediate area.

Phase Three will be Ancillary
Projects, an example of this being
the completion of the Lions Den to

‘The paper also adds that BCG will
receive additional funding by charg-
ing for advice and assistance given
to those companies who are interest-
ed in running joint venture compa-,
nies and operations within the Beira
Corridor generally.

The paper makes it abundantly
clear that this is not a profit-making
project, and it appeals to organisa-
tions to place the interests of the
community as a whole above their
normal profit-orientated business
requirements. Copies of the

ed — by the Standard Chartered
be clearly marked ‘“BCG Limited’’.

37

ZIMBABWE



According to sources close to the NCRDP, Liberian staff working with the
project have not been paid since last June. This is said to be prompting a
setback of the extention programme of the project, NCRDP has a Liberian staff
of less than 300,

Staff

In a press briefing in Saclepea, Mr Kochanke said, "The German Government
may press the Liberian Government to fulfill its side of the project agree-
ment,"

According to the agreement establishing NCRDP, the Liberian Government is
responsible for the payment of salaries for all Liberian staff, while the
German Government is to provide other finances and technical assistance for
the project,

Mr Kochanke was accompanied on the tour by NCRDP [word indistinct] Manager,
Karl P, [name indistinct], Mr Edward N, Harris, Deputy Project Manager, Mr
Holger Fraider, an Attache at the German Embassy, and other project officials.

Among the agricultural sites visited were rice farms, fish ponds, crops and
hatchery nurseries, Various departments at the NCRDP Central office in
Saclepea were also visited,

The NCRDP is one of several rural projects jointly financed by the German and
Liberian Governments, under a technical agreement.

The project started in late 1979 as Nimba County Agricultural Project (NCADP),
which concentrated only on agricultural activities including the cultivation of
swamp rice and tree crops as well as improving agricultural marketing through
cooperatives,

At the end of phase 1 of the project in 1983, it took on a new direction that
could cater to the development of the rural inhabitants in the areas of agri-
culture and infrastructural developments with emphasis on self-help and low
input approaches,

19274
CSO: 3400/410

16



DIAMANG MANAGER DISCUSSES COMPANY'S CONDITION, DISSOLUTION
Luanda JORNAL DE ANGOLA in Portuguese 29 Aug 86 p 8

{Interview with Manuel Pereira da Gama Junior, general manager of ENDIAMA, by
ANGOP; date and place not specified]

[Text] LUANDA-~Manuel Pereira da Gama Junior, general manager of the Angolan
Diamond Company (ENDIAMA), a state-owned concern, recently granted ANGOP an
interview, in which he discussed DIAMANG's current situation and other issues
related to diamond exploration in Angola.

The interview is given below in full:
[Question] What factors brought about DIAMANG's dissolution?

[Answer] Continued negative results in addition to accumulated losses from
fiscal 1982, 1983, 1984 and 1985, a marked decrease in diamond production, a
steady decline of the average price per carat from $170 in 1979 to $40 in 1985
and a corresponding decline in gross revenues, coupled with a largely fixed
cost structure for wining operations have resulted in an insolvent condition
for DIAMANG, SARL, since 1983. This critical financial situation, which has
been totally financed by domestic and foreign loans and subsidies from the
national budget (the National Bank of Angola is the largest lender), forced
the government of the People's Republic of Angola to dissolve and liquidate
DIAMANG, due to its technical and financial inability to carry out its cor-
porate purpose,

Production and sales statistics for 1980-1985 are illustrative:

PLANNED ACTUAL AVERAGE
YEAR PRODUCTION PRODUCTION VALUE IN $ ’ PRICE ’
1980 1,400, 200 1,479,139 233,922,215 100 158.00 100
1984 1,500,202 902,426 57,976,431 25 62.00 39
1985 1,567,234 713,643 31,913,354 14 45.00 28

As can be seen, 1985 gross receipts were 14 percent of DIAMANG's 1980 revenues,
i.e., an 86 percent drop, and the selling price per carat fell by 72 percent
over the same period.

[Question] How did foreign stockholders react to this decision?

1



/12223

Sharp Rise in Spending By Consumers

(Gerald. Prosalendis; BUSINESS DAY, 29 Oct 86)........0.25

Government Workers' Earnings Soar

(Gerald Reilly; BUSINESS DAY, 20 Oct 86)........sceeeeees

Firms Reluctant To Decentralize’'as Economy Slows Growth

(David Furlonger; BUSINESS DAY, 31°: Oct. 86)......cceeceeee

Rand. Mines Lifts Profits to New Record

(Cherilyn Ireton; BUSINESS DAY, 31 Oct 86).....cesesecees

Debts Being Paid Off at Increasing Rate

(Gerald Reilly; BUSINESS DAY, 31 Oct. 86).....sseecsescees

Drought Aggravates. Acute Water Shortage

Unrest”

(BUSINESS DAY, 29° Oct 86) ...ceccecccccveccecccscccccenees

Brings Educators Into CBD
(Jane Strachan; BUSINESS DAY, 20 Oct. 86) ...scecsccccesces

Water Project ‘Brings Boom to Free State Border Towns

(Mick Collins; BUSINESS DAY, 27 Oct 86)......e.eceseeeee

New Guidelines for.Fishing Industry

(Chris Cairncross; BUSINESS DAY; 27. Oct 86)...sseececeeee

Water Supplies Face Huge Demands

Advice

(Sue Leeman; ‘THH STAR, 1 Nov 86):...scececcccccccceuccesce

Office Forum Speaks Out’ on Behalf of. Unemployed
(GRASS ROOTS, Oct 86)... sccceccccccsccecccscncensccceces

New Boreholes Sunk Closing 'Potchefstroom Gap"

(John Orpen; THE SUNDAY STAR, 19 Oct 86).......seeeeeeeee

Manganese Sintering Plant at Mamatwan

Briefs

(THE SUNDAY STAR, 19 Oct 86)..ececececcccecccecenccoreces

Costly Loans for Subsidiaries

Trade Balance Figures

Export Performance

Exports to Israel Rise 70 Percent
Leeuwfontein To Double Coal Production
Coal Exports Meet Target

81

83

84

85

86

“87

88

89

91

92

93

95

96

97

98

98

98
98



“In the eighth place, mention should be made of the role of technology as the
lifeblood of future industrial development. The Department of Trade and
Industry, with the CSIR, has already launched a programme to facilitate
technology transfer.

“This will make technology more readily available to the South African
industrialist and thereby increase our competitiveness, to augment local
research and development efforts and to increase productivity and
profitability.

“The joint action between SAIDCOR (SA Inventions Development Corp) and the DIC
has been announced by the CSIR.

“Here it should also be mentioned that the Board of Trade and Industry has
recently finalised the investigation into the electronics industry. The
development of this strategic industry is in line with the government's belief
that technology, and not numbers, is one of the main determinants of a
country's economic and military strength.

“In the ninth place, the Board for the Decentralisation of Industry is
progressing well down the road of what should probably be called the most
successful affirmative action programme ever undertaken by any government on
the African continent.

"To date, from its inception in 1982, 300,000 direct employment opportunities
created tell only a small part of the whole story. However, when the
multiplier effect, creating an additional 720,000 jobs, is taken into account
the grant total is over a million work opportunities."

Mr Durr concluded by listing some of the more specific business opportunities
he felt were on offer “here and now," he said.

There is surplus capacity of men and machines in many industries to cope with
substantial growth without much capital outlay.

Recent government and private sector efforts to promote training have created
a pool of people with lower-level skills, awaiting mobilisation in less
sophisticated industries.

The sale of foreign controlled companies will, in many cases, free local
management to seek exports in areas from which they were previously excluded
by licencing or parent company arrangements.

“There are many products that can be manufactured locally but which are
currently imported because that has been easier. As labour costs rise under
the influence of rapid economic growth on the part of several of our
competitors, the combination of rapid population growth and improved skills

66



IMMIGRATION COMMISSIONER DECRIES ECOWAS PROTOCOL

Monrovia DAILY STAR in English 2 Oct 86 p 8

[Article by John Lloyd]

[Text]

19274
cso:

The free movement of
citizens of ECOWAS
member countries is
causing a high influx of
aliens into Liberia, the
Commissioner of Im-
migration, Mr. Edwin
Taye, has said.

He said that although the
free. movement of these
citizens. is consistent with
the first phase of the
ECOWAS protocol, ‘it was
not in. the best interest of
Liberia.

Commissioner. Taye -

noted also that the second
phase of the protocol,

3400/410

which gives the citizens the
right to reside in member
countries and establish
businesses there, could not
be implemented here at pre-

“sent until the Liberianiza-

tion policy gets in full sw-
ing.

The Liberianization
policy allows Liberians to
get priority consideration
for employment and
business opportunities,
among other things.

The Economic Com-
munity of West African
States (ECOWAS) groups
16 West African countries
into a regional economic
alliance.

Commissioner ‘Taye told
the Daily Observer in an in-

21

terview that aliens Teside
in Liberia legally or by
dubious means total almost
20,000.

He explained that on
many occasions citizens of
ECOWAS member states
enter the country to visit, |
but after the stipulated
90-day period for their stay |
under the ECOWAS. pro- |
tocol, the aliens often fail to |
return to their countries 0 |
origin. t
“Instead of declaring |
their intention and going '
through the immigration
formalities, they seek refuge
in the rural areas and reside

LIBERIA


ANGOLA

CAVACO SILVA'S RELUCTANCE TO AID UNITA CREATES PROTEST
Cavaco Silva's Attitude 'Perplexing'

Lisbon 0 DIABO in Portuguese 16 Sep 86 p 1

[Commentary by Vera Lagoa: "September of My Discontent"]

[Excerpts] I say "September of my discontent" because I have actually met
people who are not discontented. Surprising but true.

At this moment in September, at this moment at which I am writing--on this
Sunday morning--a very fine rain is falling, and it is even dampening. my
heart. Because my heart is sad. It is discontented.

There is a very fine rain and a gray sky on what was supposed to be a morning
with radiant sunshine. But no. That very fine rain and that gray sky can be
and are being gotten over.

What cannot be gotten over is the anguish caused by certain statements which I
do not understand (does anyone understand them?) and which were made by a
prime minister whom I support (critically). Not his statements concerning
Timor, because they have already been denied, but those concerning the request
or suggestion that support--extremely important support in this case--be
withdrawn from UNITA.

Is Cavaco Silva trying to insinuate that if UNITA disappears the Cubans will
disappear? Don't make me laugh. Those Cubans will never leave Angola. But
if they ever do, it will be precisely because of UNITA's strength and the
persistence and courage of Savimbi (to whom I pay tribute for his patriotism).
That persistence and courage can continue to manifest themselves only with
extremely strong support in the form of financing and weapons. Sa Carneiro—
since there is so much insistence, sometimes hypocritical, on his example—
always felt that way.

I have no doubt that the United States is supporting Savimbi. Perhaps that
makes up for the fact that at one point it was at Luanda's gates but then
withdrew. The matter is beyond me. But even today I am ashamed at the way in
which the Alvor Accord has been "carried out."



UNIVERSITY OF LIBERIA TEACHER'S STRIKE

Slow Down Turns To Strike

Monrovia DAILY OBSERVER in English 1 Oct 86 p 1

{Article by John F, Lloyd]

[Text]

Support staff of the University of Liberia (UL)
laid down their tools yesterday in a “go-slow” ac-
tion demanding salary arrears and refund of in-
surance premiums which were allegedly never

paid to the insurer.
They began their “go-
slow" action early yesterday
morning, but by noon it had
resulted in a chain reaction
affecting University, instruc-
tors who also abandoned
their classes. The teachers
said their action was in pro-
test against the delay in the
payment of three months’
salary arrears owed them by

the University authority.
One instructor explained,
““We are not refusing to hold
classes, it is the Administra-
tion that is refusing to. pay

us.

Classes

At this juncture, the Presi-
dent of the University, Dr.
Joseph Morris, suspended.
classes for the rest of the
day.

UL Vice President for Ad-
ministration, Dr. Thomas
Koon, told the Daily

Observer that the University
is currently looking into the
issue of the employees’ in-
surance. Meanwhile, he add-
ed, their salaries would be
paid today, Wednesday.
The support workers, who
have grouped themselves
into a committee of Con-
cerned Employees of UL,
were angered by the
knowledge that the Univer-
sity authority had been
deducting insurance fees
from their salaries even
after the insurer, the
American Life Insurance
Company (ALICO), inform.
ed the University last
August that it was ter-
minating the policy.

Delinquency
The letter, dated July 15,
1986, states: “We wish to

advise that due to the poor
participation and delinquen-

26

LIBERIA

cy of payment of premiums
on the group insurance plan
instituted by ALICO, we are
herewith terminating said
contract effective August
15, 1986”. The letter also
stated that the UL ceased
the payment of premiums to
ALICO since April 30, 1985.
But, Dr. Thomas Koon
told our reporter ‘that
ALICO has no authority to
terminate the contract
because. “they failed to
realize that a contract in-
volves two parties”, He did
not explain, however, what
was happening to the
money which the
employees and_ students
were paying for insurance.
Meanwhile, the UL
workers have vowed to in-
tensify their “go-slow” ac-
tion until their salary
demands are met and their
premium refunded.



NEW BOREHOLES SUNK CLOSING 'POTCHEFSTROOM GAP'

Johannesburg THE SUNDAY STAR (Finance) in English 19 Oct 86 p 8

[Article by John Orpen]

[Text]

19274
cso:

3400/389

IN ‘the light of increasingly posi-
tive drilling results coming:
through from the so-called “Pot-

Gap”, the recently list-
ed Potchefstroom Gold Areas, cur-"
rently-trading at'around R2,70,
looks to be a very good. bet. The
share is listed under the explora- ;
tion heading.

The Potchestroom Gap is that
area-of between the west-;
ern end of the West Wits Line, gen-;
erally demarcated by Deelkraal;
mine, and the Klerksdorp gold{
field roughly 60 km further west.

Together with Anglo American, |
PGA holds subscription rights over ;

57000ha in this area. The total ,

area of the gap is around 1
120000 ha.

Last week it was announced that |
a borehole result had confirmed an ;
earlier rich reef intersection 30 km ;
north-east of Potchefstroom. All :
this points to the area supporting

perhaps as many as three new
Tnines,

The borehole MGM2 on the farm |
Gerhardminnebron has intersected |
reef at the relatively shallow depth |
of 1341m. This assayed 15,12 g/t. |
‘The shallow depth could have been |
caused by faulting of the reefs as |
the earlier MGMI borehole, which
struck reef assaying as much as |
21,24 g/t, only reached the con-
glomerates at 3 184m. t

Anglo American, while admit-’,
ting that the borehole results are
encouraging, says a lot more drill-
ing will have to be done. before any
decisions on mining can be taken.
At the ‘moment. Anglo American
and Gold Fields are drilling five
new boreholes south of Gerhard-
minnebron. ©

But the portents are. certainly

beginning to look good for PGA.
‘The announcement last week was
actually made by N New Central
Witwatersrand, which was trading
around R7,20. This could also
prove a good

95

SOUTH AFRICA



UNREST BRINGS EDUCATORS INTO CBD

Johannesburg BUSINESS DAY in English 20 Oct 86 p 1

[Article by Jane Strachan]

[Text]

/9274
cso:

3400/396

BOYCOTTS and unrest in the townshi;
are prompting many black-oriented edu-
cational organisations to look for central
city premises.

At the same time, new entrepreneurs
are taking advantage of the economic
and political situation by entering the
education market.

Few have found premises, though, as
suitable accommodation is difficult to
find. Problems include relatively high
rentals and the density factor in locating
classrooms in CBD blocks.

Landlords who already have conven-
tional businesses in their buildings will
not take in children, although several
colleges for older students with lower
densities, such as secretarial schools, are
already in city premises.

Anglo American Property Services’s
(Ampros) Johannesburg leasing execu-
tive John Laws says he has had many
inquiries from a range of education-re-
lated bodies, starting with an “alterna-
tive” school for which he was able to find
a home.

A Sowetan technical college exper-
iencing difficulties in the township is
considering moving to an Ampros build-
ing, near the main railway station. The
cost of converting the space would come
to R140 000 for the 780m under discus-
‘sion.

This case, says Laws, highlights the
often prohibitive cost involved. Many of
the organisations are not in a position to
pay going office rentals and alteration

nses.
“One possible alternative is to use fac-
tories or warehouses, but again it is cost-
ly to achieve ‘acceptable acoustics.
While Laws is dealing mostly with
black clients, Landmark’s Nick Hill says
he is being approached by many whites
who, he believes, are exploiting the eco-
nomic situation,

88

SOUTH AFRICA



Savimbi says that the matter will be resolved among the Angolans. Very good.
That was what the above-mentioned accord said. Fidel intends to keep the
Cubans in Angola and said so just recently, which leaves me even more
perplexed by Cavaco Silva's (extremely confused) attitude. That is the reason

for my discontent.

The rain is continuing to sadden me. Doubts are continuing to sadden
Portugal. As the poet would say.

My heart is discontented.
"Realpolitik' Seen Risky
Lisbon SEMANARIO in Portuguese 13 Sep 86 p 16
[Commentary by Jose Miguel Judice: "Between Jamba and Luanda"]

[Excerpt] It is true that Cavaco Silva is little more than a novice in
matters of international relations and such things, and it is true that no one
who wants to tell the truth can say that he is surrounded by renowned and
experienced specialists in that field. This is not meant to belittle the
intellectual and human qualities (which are not the same thing as experience
and knowledge) of the team in charge of foreign affairs, a team which, by the
way, I not only admire but also esteem. No one will be surprised, therefore,
to see a few errors being committed, a few blunders appearing in their
speeches, or a degree of naiveness sometimes appearing in their actions. But
for one thing, an intelligent man learns fast, and for another, Cavaco Silva
is prime minister for reasons of domestic politics, and in that context,
foreign policy is, from the standpoint of the reasons why he is leader, a
comparatively secondary field.

That being said, it is worthwhile to bring up the question of the statements
concerning UNITA and Renamo [Mozambique National Resistance] which have been
attributed to him in the media and which, objectively, revealed a veiled
hostility toward the guerrilla movements in question and an alignment in his
talks with the U.S. administration—-based on a view of international politics
that is not "realistic"--with defense of the thesis advanced by the petroleum
lobby and the Luanda government, which says that when all is said and done,
UNITA is an obstacle to "peace" and that stability in the area does not exist
because support for UNITA is preventing its annihilation. The media may be
reporting his words incorrectly, but it is no secret that the official
Portuguese position has changed under the current government. Previously, it
was Sa Carneiro's strategy that prevailed (privileged and cordial political
relations with UNITA, neutrality on the part of the Portuguese state, and a
government-to-government relationship governed by international law with the
authorities in Luanda). With Pires de Miranda, the MPLA [Popular Movement for
the Liberation of Angola] came to be seen politically as the natural
interlocutor, limited only by the fact that it had not yet freed itself of
Soviet-Cuban protection--which would be much reduced if UNITA did not exist.



The AOF said the go-
vernment failed to con-
sider: :
© Migrant labourers who
are forced to leave for
the “homelands” when
they. lose their jobs;

@ people who have ex-
hausted their unemploy-
ment benefits;

@ school-leavers who
cannot find work;

@ people who are not
considered to have the
same rights .as most
workers, for example,
domestic workers and
farm workers;

© people who have
worked for less than six
months required to qua-
lify for unemployment
benefits.

“If all these figures are
considered, one can see
that the real figure for
the number of unem-
ployed people is much
higher than the official
figure,” the AOF said.

“The problems of un-
employment affects not
only the unemployed,
but also their families. It
leads to problems like
rent arrears, health pro-

19274

csO: 3400/397

blems, like malnutrition
and TB, social problems
like wife-battering, child
abuse, incest and the
breaking up of family
life.

“According to Cape
Town City Council fig-
ures, about 85 percent of
Manenberg tenants are
in arrears with their
rents. Out of 1000 house-
holds, only 52 families
paid their rent in full
every month. Some
people in Manenberg are
in arrears by R600 in
electricity payments
alone.

“Whereas rent boy-
cotts.have been called in
many areas throughout
the country, like Soweto,
people in the Western
Cape do not pay their
rent, simply because they
are not able to pay.

“We fear the serious
effect the increases in
busfares and the bread
price and ‘the pending
electricity tariff increases
will have on the unem-
ployed.

“Already many people
have to walk long distan-
ces when they look for

work or when they take
their children to hospital
simply because they can-
not afford the cost of
public transport.

“There are also prob-
lems with the obtain-
ment of benefits. Un-
employed people have to
wait about three months
before they get their first
‘cheque. Most poor peop-
le live from week to weck
because of the little
money they earn. Wait-
ing three months often
means a long period of
hunger and frustration,
the AOF said. :

The AOF said the
communtiy had respon-
ded in many ways to the
unemployment crisis. In
many areas, people had
started regular soup kit-
chens, food and home-
craft co-operatives.

“In Atlantis, the ad-
vice office runs 22 soup
kitchens daily and feed
1700 children and 300
adults every day. They
have had some financial
problems since the de-
tention on June 12 of Mr
Noel Williams, the chair-
person of the Atlantis

94

Residents Association,
who is supposed to sign
their cheques. Mr Wil-
Jiams is still in detention’
the AOF said.

The AOF said there
were many factors caus-
ing and influencing un-
employment.

“More and more com-
panies are becoming capi
tal intensive as opposed
to labout intensive. They

are using more and more

‘computers, machinery
and robots instead of
workers. This leads to
many people being laid
off. +

“Bosses are not inves-
ting their profits in buil-
ding new factories to
accommodate more
workers. Instead, they
prefer investing on the
Johannesburg Stock Ex-:
change where the profit
rate is higher.

“Apartheid laws and
all their effects also con-
tribute to unemployment .
Examples are the job
reservation policies,
where jobs are reserved
for whites while many
blacks are unemployed.”
the AOF said.



the threat of sanctions. In August, 14,7-million tons of coal were produced
compared to 14,3-million tons in July, However, gold production for August
was slightly lower at 53,273 kg (54,024kg in July), with sales fetching R1,5bn
(R1L,7bn), Other interesting figures for August are those for tin, which show
the severity of the crisis in international tin markets, In August 1985, SA
produced 179 tons of tin metal, while sales earned R4,lm, ‘This year production
was down 5% to 169 tons, but revenue from sales fell 44% to R2,3m, [ext]

{By Cherilyn Ireton] [Johannesburg BUSINESS DAY in English 30 Oct 86 p 5]
19274

cso: 3400/397 - END -

99



SOUTH AFRICA

DOCUMENT OUTLINES VIEWS ON ECONOMIC STRATEGY
MBO71636 Johannesburg SAPA in English 1632 GMT 7 Nov 86

[Text] Pretoria, 7 November, SAPA--The government's initial response to the
long-term economic strategy compiled by the Economic Advisory Council is that
it has largely either accepted the recommendations, welcomed new points to
consider, or pointed out that present policy is already in line with
proposals.

The response of 200 leading South African businessmen, who attended the
governments economic conference today at the "Carlton III” talks in Pretoria,
to the council's strategy, comprehensively laid out in a 50 page document, and
to the government's equally bulky reaction, will be made clear at a press
conference this evening.

According to Mr Joe Stegmann, deputy chairman of the council and head of the
sub-committee which compiled the strategy, the proposals represent the views
of the private sector as formulated by members of the council.

The strategy document accepts there is no instant solution to South Africa's
economic problems and that the proposals will not result in improvements
overnight.

Further progress in the field of political reform that would help defuse
unrest and normalise South Africa's economic relations with the rest of the
world are “essential” if business confidence is to be restored and if the
economy is to improve. In its response, the government aligns itself with
this stance.

The strategy says measures are needed to ensure all members of the community
share in the planned development of the country, not through a redistribution
of existing wealth, but by means of productive participation in economic
development.

The government welcomes this approach and outlines existing policy measures
aimed at meeting this goal, particularly on acceptance of black urbanisation,
the need to prepare for it and the development opportunities it presents.

The vital role in economic development and job creation of the small business
sector is pinpointed and government backs this up, once again detailing action

62



SOUTH AFRICA

PRESS CONFERENCE AFTER BUSINESS SUMMIT REPORTED
MBO72023 Johannesburg SAPA in English 1846 GMT 7 Nov 86

[Text] Pretoria, 7 November SAPA-~The Economic Advisory Council's long-term
economic strategy and the government's initial response to it was “endorsed”
in Pretoria today when 200 of South Africa's leading businessmen met
government for the “Carlton III" discussions in Pretoria.

It also emerged at a press conference after the day-long discussions that
future meetings between government and the private sector would be held as
soon as possible in the future.

The state president, Mr P.W. Botha, who addressed the press conference
briefly, said the discussions had been "a success and its purpose was
fulfilled.”

It had been a conference of goodwill, openheartedness and of civilised people
who had discussed the problems of South Africa in a civilised manner.

“I want to give the assurance that where there were differences, they are of
such a nature that they help take us close to solutions." He hoped the
Economic Advisory Council would,in the future, apply itself to finding a way
in which the government could from time to time meet the private sector, as it
had done today, to facilitate an exchange of views. “We did not shout at each
other, we did not insult each other... we enriched each other, and we go our
ways as friends,” Mr Botha said.

Dr Kerneels Human, Chairman of the Economic Advisory Council and of today's
discussions, emphasised that the meeting had been “a positive one.”

Full minutes had been taken at the joint meeting of all the delegates and at
the group discussion and their contents would be forwarded to the government.

“The strategic (economic) document was accepted by the conference," he said.
The Minister of Finance, Mr Barend du Plessis said serious attention would be
given to the economic development programme envisaged in the strategy, and

that although there was no specific time scale, the matter was regarded as
urgent. “This strategy related to prevailing circumstance.”

68


‘corporate capital, i.e., 28,975 shares worth 500.00 kwanzas each for a total
value of 14,487,500.00 kwanzas out of a total corporate capital of 865 million
kwanzas.

As a shareholder, then, the interests of Diamond Corporation Ltd., the De Beers
subsidiary, in DIAMANG were not greatly affected. If the cessation of MATS’
Angolan operations (another De Beers subsidiary) is also taken into account,

it must be pointed out that it did so for reasons solely attributable to MATS,
which unilaterally rescinded its mining operations contract on 31 December,
1985, which provided for diamond exploration services for DIAMANG. I take this
opportunity to mention that Diamond Corporation Ltd. representatives, following
DIAMANG's dissolution, made known their desire to cooperate with the People's
Republic of Angola in a feasibility study for developing kimberlite deposits
and marketing our diamond production, which was approved in principle by
authorities of the People's Republic of Angola.

[Question] Before Angola's independence, DIAMANG was often called a state
within a state, a fact which indicates the company's socioeconomic importance
to the province at that time. What importance does ENDIAMA (formerfly DIAMANG)
have today for the socioeconomic activities of Luanda-Norte Province in parti-
cular and for the country in general, if the company is now losing money?

[Answer] The former DIAMANG company was and still is the largest mining com-
plex in Africa by size of mining concessions held, almost all of which are in
[uanda-Norte Province. It is still important for wining auxiliary and support
services, especially in the areas of metalworking and the management of indus-
trial warehouses, food stores and various farming and livestock facilities and
professional training.

It is the largest employer, with over 20,000 workers and 15,000 dependents.

Its assets comprise a small fleet of aircraft, including three fixed-wing
planes and five helicopters to provide transportation between divisions, land-
ing strips (the Dundo Airport is open 24 hours a day), incorporated company
towns (Dundo, Lucapa, Andrada, Cafunfo, Calonda, Maludi, Cassanguidi and Luxi-
lo), all of which have municipal drinking water systems and electricity gene-
rated by the Luachimo Dam hydroelectric plant, which also supplies a large part
of the province.

The area still holds sizeable primary and secondary deposits, which are rich
and contain an estimated 80-90 percent small and large gems.

We can thus say with well-founded optimism that the future of the People's
Republic of Angola as a diamond producing country is quite promising, i.e.,
ENDIAMA-UEE has the important mission of contributing decisively to making
diamond operations important again and thus contributing to the socioeconomic
development of Luanda-Norte and the country.

[Question] How should ENDIAMA direct its efforts?
[Answer] ENDIAMA should direct its efforts to try to increase current diamond
reserves through a large research, exploration, general prospecting and evalua-

tion program in order to continue operations on as profitable a basis as pos-
sible and draw up plans to increase production levels substantially under a

13



MANGANESE SINTERING PLANT AT MAMATWAN

Johannesburg THE SUNDAY STAR in English 19 Oct 86 p 8

[Text]

19274
cso:

3400/389

SAMANCOR is to establish a piant for the sintering”

of manganese ore at its Mamatwan mine. The
‘plant, with its facilities, will cost R60 million and
should be completed in 1988.

Sintered ore: has a number of advantages over |

lumpy ore and its production should significantly

improve the cost-effectiveness of Samancor’s man- |

ganese-alloy operation.

Further advantages ‘include a reduction in pro-
duction costs, a higher manganese content, a reduc-
tion in electricity consumption for alloy production
apd a decrease in furnace maintenance costs.

The new plant will have a capacity of 500000t a_

year and was sited at Mamatwan rather than Sa-

Mancor’s Meyerton works because of the lower

capital expenditure required there.

96

SOUTH AFRICA



DOE PLEDGES TO MAINTAIN U.S. DOLLAR

Monrovia NEW LIBERIAN in English 6 Oct 86 p 1

[Excerpt]

19274
cso:

3400/409

President Samuel
Kanyon Doe has assured
the business community
that the United States
dollar, would continue’

to remain legal tender’

in Liberia, alongside
the Liberian coins.
Dr. Doe gave the as-
surance Saturday in a
statement. delivered
on his behalf by Vice
President Dr. Harry F.
Moniba at the dedica-
tory ceremonies of the

$2.3 million "Madame
Gbeh Wreh General
Market," on Water

Street in Monrovia.

President Doe also
assured the Liberian
business community
that government wae
doing “everything pos-
sible" to address it-
self to the shortage
of the American dol-
lar on the Liberian
market. .

The Liberian Leader

reaffirmed .govern—
ment's fullest. protec-
tion for the business
community including
our. partners in pro-
gress," as well ae its
comtinued commitment
to the free. flow of
commerce and marketing,
in the country. ‘

Dr. ‘Doe noted .that:
the economic develop-
ment of Liberia was,
a. matter of urgent!
concern to the Libe-
rian Government and
people and urged citi-
zens of the country to
“move ‘regolutely" in
the right direction in
tackling . those. pro-
blems. .

He reminded Libe-
rians that it was,
only through. unity and
hard work ‘that Libe-:
ria could achieve the
kind of development
necessary to improve

the living standard of

its citizens.

18

LIBERIA



SOUTH AFRICA

ROLLS ROYCE GRIFFON MK'57 ENGINE DISPLAYED AT AIR DEPOT
Pretoria AD ASTRA in English Oct 86 p 9
[Article by Jonathan Cleland]

[Text] One Air Depot, based at AFS Voortrekkerhoogte, is in the news again
with a SAAF first,

At an inconspicuous ceremony at the depot recently, Col Gene Hollenbach un-
veiled a unique display~~a Rolls Royce Griffon Mk 57 A aero-engine, mounted
near the impressive new entrance to the depot,

This type of engine was used extensively in the Shackleton aircraft, which went
out of service in the not too distant past. The engine is of the 12 cylinder
upright V type, was pressure cooled and was a single stage, two speed super-
charged engine fitted with DeHavilland contra-rotating propellors, Carbonation
was done by means of fuel injection, The engine delivered an amazing 2,500
brake horsepower at 2,750 rpm with 25 pounds boost and water methanol injec-
tion,

During the span of 28 years between 1957 and 1985 a total of 650 engine over-
hauls of these specific engines were carried out and 370 prop-overhauls were
undertaken and completed.

After ‘wainly attempting to secure an historic SAAF aircraft as a static dis-
play, Col Hollenbach stumbled on to the idea of displaying a sole Griffon
engine, which is certainly more in line with the function of 1 Air Depot,

The displaying of an engine in this manner, is to the best of our knowledge,
a SAAF first,

19274
cso: 3400/400

47



WATER SUPPLIES FACE HUGE DEMANDS
Johannesburg THE STAR in English 1 Nov
[Article by Sue Leeman]

[Text]

nhrge sums of money will be re-
quired during the next 15 years if
the development of the country’s

water resources is to. keep abreast

increases in demand, accord-
‘ing to .water. engineer ‘Mr ‘NM
Krige..:..

_ Mr Krige, who ‘works for the De-
partment of. Water Affairs, told a
seminar in. Pretoria yesterday that
by the year 2000. the total. annual

demand for water was expected to -

have risen ..to-. 25 900 million cubic
metres — more than double the de-
mand in 1980...

To meet this demand, an
eight percent average annual in-
crease in expenditure on water in-
frastructure in real terms was
needed.

However, the annual growth rate
of eight percent had not.been main-
tained since the mid-’60s.and an an-
nual average compound growth
rate of between 14,5 percent and
16,5 percent .on present . levels of
spending would now be required.

“The serious risks inherent in
continuing financial. . stringency
could result in serious economic
losses due to a shortage of water”.

Mr Krige said the situation was

19274
csO: 3400/397

86 p 3

compounded by various factors, in-
cluding the poor distribution of the
country’s water in relation to re-
' gions of economic growth.

In general the cost of providing’
water in South Africa was. high:
compared. with other countries, due!
jto-the relatively ‘higher storage ¢a-|
= -pacit required in this country’s}
crivers. -

“And it will increase in future
‘due to the greater. distances that |
water must be transported.

“Already schemes such as thei
Tugela-Vaal. and the Usutu-Vaal,
have had to be constructed at great|
cost to augment the supplies to the/
Vaal River, and in the near future!
the Lesotho Highlands .Water|
Project will be another inter-basin:
transfer scheme to meet the grow-:
ing demands of the PWV region”.

He added there was a need to re-
place a number of existing water
schemes which were approaching
the end of their usefulness.

In addition, the best dam sites
had already been exploited and the
remaining sites could only be deve-
oped at more expense.

He. said deteriorating water

quality and the increasing cost of '

removing sediment from dams also
has to be taken into account.

92

SOUTH AFRICA



19274
CSO:

3400/413

In an interview
with our reporter
Monday, the Chair-
man of the Slip-
way branch, Hir.
Ouonsus Mars said
that they have
observed that the
organization was
not promoting
nationalism in the
country, instead
causing confussion
and chaos.

fle said that
it is against this
background that
they have decided
to break away from
the organization
and form a part
of the NDPL's
Youth Wing,. which
they said caters
to the meaningful
development of the

country.
Mr. Mars alle--
ged that among

other reasons for
which they have
decided to leave
the Task Force
is. that "some of
the members are
aliens and that
they continued to
spoil the reputa-

tion of the orga-
nization and if
we continue to
group ourselves
with these people,
we will not be
able to develop
our own country."
He pointed out
that it was their
responsibility to
unite the people
in order to build
a viable nation,
noting that "if
we continue to
cause choas and
confusion, we will
not build a good
society for our

people."
The Chairman
assured | the

National Democra~
tic Party of Li-~
beria of their
continuous support
in the interest
of the state.

30



cooperative arrangement with carefully selected partners possessing the tech-
nical and financial resources required.

It is thus imperative to provide protection for exploration and geological
operations, using an industrial security corps appropriate to today's circum-
stances, which is characterized by a high volume of illicit traffic in
diamonds. In addition, the defense capability of Luanda-Norte's mining area
should be reinforced.

[Question] Why did DIAMANG rescind its contract with MATS?

[Answer] DIAMANG did not terminate any contract with MATS. On 31 December,
1985, MATS, as a simple contractor for DIAMANG, unilaterally terminated its
mining operations contract as mentioned earlier in my reply to your fifth
question. This contract had been signed in 1981.

[Question] How will ENDIAMA approach other operators now? Is there already a
new contract with one of the new potential operators?

[Answer] ENDIAMA-UEE, in accordance with the principles approved by higher
government authorities of the People's Republic of Angola, will negotiate
future contracts with other entities under the provision that all investment
required to perform the contract (prospecting, research, development and
mining) will be made by foreign partners.

Under this operating arrangement, the risk for unsuccessful prospecting and
exploration will be borne in whole by foreign companies over three to five

years from the beginning of operations. In the absence of positive results,
foreign investors will not recoup expenses incurred.

If positive, results will be divided among the national company and the
foreign companies according to a percentage arrangement to be negotiated in
the contract.

All property acquired by the foreign investor for use in operations shall
become the property of the national company upon arrival in Angola.

Negotiations are under way to resume production in the Cuango Mining Division
and operations are scheduled to start up shortly.

[Question] Have security arrangements now been made to ensure normal mining
exploration operations?

[Answer] The government of the People's Republic of Angola has made the effort
necessary to provide the mining areas in Luanda-Norte with defense materiel and
guarantee security, without which the entire diamond development policy would
suffer serious limitations in its development.

8844
CSO: 3442/26

14



any such development
around myself because
grave problems can arise
from cultivation of such a
situation.
Q: On being purist ... at.
your farewell party there
were a lot of white people,
which seemed on the surfgce
to be a move away from
what was perceived as 2
purist black exclusivity of
BC previously. Would you
see that as a shift?
SC: For me, there is no
contradiction. One needs
to state this: the ruling
class consists largely but:
not exclusively of white
people, Those who are
Tuled are overwhelmingly
black, the majority of
oppressed and exploited
people.

That is where the lines
are drawn. BC talks of the
dehumanisation, the den-

uding of the person that -

has been going on since
the advent of white set-
tlerdom in this country,
that blacks need to be able
to assert themselves, they
need to take their places
in society.

Nowhere in BC has the
issue of whites been ele-
vated to principle. It. can-
not be, because we talk of
a new socialist Azania. An

Azanian then in that new *

society would not be bound

by the strictures of race ©

classification, by religious
affiliation, by physical
characteristics.

That would be a citizen.
Full stop. That person
would owe allegiance to
Azania, not to Europe or

India or a little Bophutha- |

tswana.

In BC we have not legis-
lated against any associa-
tion of people, irrespective
of what they may be clas-
sified as. Within the move-
ment, we address our-
selves to the issues that
glaringly are there as
everyday reality for black
people.

We don’t make excep-
tions by going out of our
way to accommodate
white people.

We believe they have an
important role to play in
the struggle, not merely
by showing solidarity

‘T

with us, but by actively
engaging themselves in
campaigns.

By associating with
whites, you don’t give up
any bit of your blackness.
It is only an inferior half-
baked BC person who has
that fear.

BC says: Do not be
afraid of any person.

Q: The foundation of BC, as
I understand it, was rejec-
tion of white liberalism, and
now it seems Azapo is one
of two organisations in the
country (with Inkatha) that
does.not open its member-
ship to whites,

SC: Inkatha does have
white members. Azapo is
the only one that does not
allow membership of
whites.

No whites have applied
to join us and it hasn't
been a problem for Azapo
at this stage because it is
addressing itself to the

issues raised by a divided ©

society amongst the op-
pressed people.

And any form of social
activity that does not mili-
tate against the prosecu-
tion of the struggle is not
something to which BC
will deign to address itself.

Q: So are you saying that if

whites apply for member- |
ship to Azapo, they won't be :

rejected outright, and if not,
what would be the criterion
for membership?
I am not saying that.
saying whites haven't
applied. ~

We don’t accept whites
as members of Azapo, be-
lieving they have consti-
tuted the problem as a
group for representing
white interests, white
power and privilege, and
the prejudice they have
exercised as a result of
that.

What is of more import
is the fact of what Azapo
addresses itself to, what it
does, and how it goes
about doing those things,
the principles on which it
is founded.

Azapo doesn’t attack
white liberals; it attacks
liberals, and acknowledges
there can be liberals in
black skins who are as
dangerous as liberals in

58

white skins.

_Q: A contradiction in terms -

of Azapo's membership def-
inition is that where whites

are asked to try to mobilise {

their own community, that
call would be on
basis, because you are look-
ing at a white person as
a member of the white
community.

But assuming that there

racial ©

are whites who are genu- ;
inely committed to what |

Azapo believes and they
are not able to mobilise,

especially in the present.

circumstances, any signifi-

cant chunk of the white

population, where do such

people find a home? co

SC: We are aware that

many people have that |
dilemma. .

Right now’ they don’t .

have a home and it is un-

fortunate, but they are not ;

a significant number to

begin to really worry

about.

If we begin to look at

who is the enemy and ad-
dress the question of what

constitutes the ruling ,
class, very little problem ;

emerges thereafter.

BC is not anti-white, it’s,
never been. From time to
time you'll have rapid out-
bursts by half-baked neo-
phytes and people trying
to appear blacker than
black and lapsing into var-

ious forms of narrow Afri- ‘

canism, tribalism, and so
on. That is not BC.
Q: In the US, it is probable
you will be meeting the
leadership of ANC, PAC,
and BCMA. When you do
— or if you do — what
would be your message to
them?
SC; I've never been unpre-
pared to meet anybody ex-
cept people who have been
responsible for our present
position in this country.
The people you have
mentioned are part of the
solution posed by those
who have been responsible
for the situation and I

would have no objection to |

meet with them and share
whatever can be shared.

T have an open mind on
many issues. I am not a fi-
nite strait-jacketed person.
I'm informed by many

principles, my conduct, -



ANGOLA

POSITIVE COMMENTS ON VISIT TO SAVIMBI'S UNITA
Joao Soares Interview

Lisbon TEMPO in Portuguese 11 Sep 86 p 8

[Interview with publisher Joao Soares by Carlos Pires; date and place not
given; first paragraph is TEMPO introduction]

[Text] Joao Soares, the son of the president of the republic, was one of the
most significantly conspicuous guests at the 6th UNITA [National Union for the
Total Independence of Angola] Congress, which was held in Angolan territory in
August and from which he returned last Saturday. According to what he himself
told TEMPO, "there was no reason to reject Jonas Savimbi's invitation," which
he accepted in his capacity as the first publisher of one of Savimbi's books
in Portugal. "I would not want anyone at all, including my father, to be held
responsible for an attitude that is strictly my own," he told us. In the
opinion of Joao Soares, "the reality of UNITA is very poorly known in
Portugal, and it has been the target of a campaign of slander and propaganda
that has completely deceived public opinion."

TEMPO: Why did you agree to attend the 6th UNITA Congress?

Joao Soares: I feel that there was no reason to reject Jonas Savimbi's
invitation to visit the zone controlled by UNITA in the interior of Angola.
Jonas Savimbi is an Angolan politician; he invited me to go there because I
was the first to publish a book of his in Portugal, and so there was no reason
to reject his invitation.

TEMPO: What was your first impression on encountering the reality of UNITA?

Joao Soares: Frankly, it was one of amazement. Amazement at what has been
achieved there--amazement and admiration for the work that has been achieved
there in so short a time.

The reality of UNITA is very poorly known in Portugal, it has been the target
of a campaign of slander and propaganda that has completely deceived public
opinion, and I myself admit that to some extent, I was quite poorly informed
about what had happened and is happening in Angola.



Current projects included the building of a dam and pipeline to the town, im-
provement of the local airport for night landings, and development of industrial
sites,

Besides creating employment for thousands, the project will give Lesotho an
electricity source of its own, as it generates power with water flowing to SA,

When fully developed, the project will deliver about 2,200-million cubic litres
of water annually to SA and will also be able to generate about 800-million
kilowatt-hours of energy a year for consumption in Lesotho,

The water SA will receive will more than double the Vaal River's resources,
providing additional water for mining, industry, agriculture and households,

SA will save Rlbn and Lesotho will receive more than R1,25bn in royalties as a
resultof the treaty,

The R4bn project will, however, achieve more for development, creating thousands
of jobs and opening up the almost inaccessible interdor of Lesotho for tourism,
to the benefit of both countries,

19274
CSO: 3400/395

90



known as chief of staff supreme headquarters. was
divided between Ukiwe, as chief of general staff,
and thus the political number two to Babangida,
and Major-General Domkat Bali, , the chief . of
defence. staff,. number two in all matters military.
This balancing act left.Abacha as number. three, a
demotion he contested strenuously until overruled in
one particularly bitter AFRC session..earlier in the
year. bey '
Under these tortuous arrangements, .designed to
ease some of Babangida’s earlier problems, federal
ministers repoted to him, while Governors reported
to Ukiwe, as chief of general staff. Ukiwe’s position
was restated by Babangida,. and thus implicitly sup-
ported, only last month, naming him as, political
‘vice-president’ during Babangida’s absence from the
country on a mysterious private visit to France. But
the problem with the split reporting channels meant
that Ukiwe often did: not’ get to see key, ministerial
documents until they: were tabled’ for discussion at
either the AFRC or the executive council: By this
time Babangida had often already made up his mind,
only to meét Ukiwe’s differing opinions, forcefully
expressed. On more than one occasion, the president
is known to have withdrawn: from discussion in the
light of the CGS’s arguments.

It is wrong, however; to see Ukiwe as the losing
party in a power-struggle as such. A former senior
commander of the Biafran army in the civil war,
and by origin an Igbo from the East of the country,
Ukiwe had no political or military power-base.
Suspect because of their background and the sole
survivors of the old military: hierarchy, once top-
heavy with Igbo officers, Ukiwe and Brigadier Ike
Nwachukwu are in no position to build themselves
anything resembling a faction following. Nwa-
chukwu; appointed earlier this month ‘as minister for
labour, employment and productivity, lasted only a
few months as Adjutant-General, being removed
ater repeated clashes with the army chief of staff.
After the September shake-up. of the army, Nwa-
chukwu was put ona‘ course+list’ for a non-existent
training scheme to’ await re-assignment. It is being
suggested in informed Nigerian’ army: circles’ that
Ukiwe has suffered a similar fate as a result of his
friction with Gen. Abacha.

Shared’ doubts

Certainly, quarrels over SFEM cannot explain
Ukiwe’s demotion. True, Ukiwe harboured reserva-
tions about the way the scheme: would operate in
practice and was said to be worried about the: possi-
bility of its being hijacked by some of the leading
Nigerian banks. But doubts like this were shared by
the finance minister, Dr. Chu (Chukwuemeka)

Sonny Okongwu, who was so worried about the
danger of premature leaks that he called’ on his old
talents as a former features editor of the Lagos Daily
Times and’ typed’ crucial documents himself, thus
ensuring complete security: The minister for national
planning, Dr. Kalu Idika Kalu, Okongwu’s prede-
cessor at finance, was also known to have his anxie-
ties about SFEM. Conspiratorial ‘tribal
interpretations of these attitudes are not very satis-
factory, despite the obvious dominance of: many
leading financial institutions by Westerners, mainly
Yoruba, and suspicions’ of the advantages gained by
the ‘Yoruba community in: the’ indigenisation’ pro-
grammes in‘ the 1970s when Gen. Yakubu Gowon
and his finance minister at the time, Chief Obafemi
Awolowo, ‘iiationalised’ foreign’ businesses. Ukiwe
and the two ministers, while all Igbos, are not in
fact very close and Chu Okungwu (nicknamed Chou
en Lai by his friends) is knowmto-confide only in the
Governor ‘of the ‘Central’ Bank, Alhaji Abdulkadir
Ahmed, a muslim from the north.

Ukiwe’s future is uncertain. He ‘is said’to be too
proud to accept a lesser post’arid is reported to have
refused the job of chief of naval'staff, which now
goes to Rear Admiral Patrick Khosoni: Friends are
now said to be: encouraging Ukiwe to retire from
the navy,:where. lie has served for 20 years.

The real loser in the end may well be Babangida
himself. Being easily bored by the details of adminis-
tration, the president found Ukiwe’s ready grasp of
issues and considerable administrative experience a
great asset. Ukiwe was ‘military administrator of
Lagos and Niger states under Gen. Olusegun Obas-
anjo and is at home with complex ‘political issues:

Cares ‘of office .
Babangida’s personal fitness for the job is increas-
ingly under-question. It is being said that Babangida
“was personally stung:when his motives came under
scrutiny at the time of the-Islamic Conference Organ-
isation furore. Having been seen as a king-maker
who refused the crown on many occasions, he had
grown accustomed to argument about the rigtits and
wrongs of what he did, but not to suspicion: of his
motives. Neither'a tough military commander nor:a:
workaholic like Gen. Obasanjo, Babangida has been
disillusioned by office. His sudden departure from
the Non-Aligned Movement’s conference at: Harare
in Zimbabwe does not seem: to have-been caused
by a snub on the part of Robert Mugabe’s host
government, as was claimed earlier. Zimbabwean
officials have denied any hint of this in the strongest
terms. More: mysterious still was the’ president’s
unexplained trip to Europe shortly afterwards; in
which he is said ‘to have gone to Paris without

35



SOUTH AFRICA

BRIEFS

COSTLY LOANS FOR SUBSIDIARIES-~SA subsidiaries of multinational corporations
which break overseas links may find the raising of loans will be more expen-
sive without the stronger credit rating of their offshore parents, Bankers

say that the bottom line for credit risk will be based entirely on the newly-
constructed balance sheet after the management has bought out its former

parent, The SA companies, many of which have profitable operations, will now
have to stand on their own when drawing on foreign and domestic credit lines,
say banking sources, Many foreign subsidiaries have achieved undoubted borrower
status because bankers knew that the parent company woudl stand behind its sub-
sidiary, Executives of companies who have bought control say their access to
debt has not been impaired, Some companies could even gain more borrowing flex-
ibility as a result of their independence, Exchange control regulations limit
the local borrowing of companies with 25% or more of their equity in foreign
lands. Wholly-owned subsidiaries of foreign multinationals may borrow 50% of
total share equity, retained earnings and long-term debt~--including any intra-
company debt owed their parent. [ext] [Johannesburg BUSINESS DAY in English
27 Oct 86 pp 1, 2] /9274

TRADE BALANCE FIGURES-~Trade figures for the nine months to September give
promise that this year should produce another healthy surplus on the current
account of the Balance of Payments. Total exports for the three quarters were
R30,61 bn, against imports of R20,81 bn, resulting in a surplus of R9,8bn,
compared with a surplus of R8,34bn for the same period of last year. Figures

for last month, released by Customs and Excise yesterday, show exports rose to
R4bn from R3,67 bn in August, while imports fell to R2,46bn from R2,55bn. ‘the
figures suggest the surplus on current account could be of the order of R4,5bn.
The repayment of foreign debts outside the standstill net and the other outgoings
stemming from initial payments on debts inside the net have, until recently, re-
sulted in a large outflow of funds through the capital account. ‘he last state-
ment from the Reserve Bank suggests the loss of funds through the drain on
capital account has been slowed down and that the year will close with a
strengthening of the Reserve Bank's foreign exchange reserves, Governor of the
Reserve Bank Gerhard de Kock said recently the Bank might use some of its foreign
currency holdings--now believed to exceed R2,2bn-~to redeem some of the gold
swaps made to raise currency to pay foreign debts, [Text] [Johannesburg
BUSINESS DAY in English 28 Oct 86 pp 1, 2] /9274

97



Year 1936 1987 1988 1989
Month 136912/136912/1369 12/1369 12
Emergency Programme
Railway 1 cea
Programme
a
Rond Implement Recontruction Programme
Port - Berths 2-5 Tender Construct | ___j
Berths 6 |-——Contruction |
Dredging | To 7m+ ~~~} ~~ -To &m~ >} ~ To 9m-~ ~ —
‘Temporary {Construction
Container
Terminal Tenderin
Permanent i" . [Construct
T Suppl
Petroleum Berth fs rely {Install _,

This transport bar chart gives some idea of the complexity of the
programme. The emergency programme is due to be completed by the first
months of 1987, while dredging the port channel will continue beyond 1989.

19274
CSO: 3400/388

38