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JPRS-SSA-87-021

11 MARCH 1987

Sub-Saharan Africa Report

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JPRS-SSA-87-021

11 MARCH 1987

SUB-SAHARAN AFRICA REPORT

CONTENTS

BENIN

Role of Kerekou's Personal Advisors Discussed

(AFRICAN CONFIDENTIAL, 21 Jan 87)

BURKINA

Editorial on Mitterrand Visit to Burkina

(SIDWAYA, 19 Nov 86) •

3

Joint Company With Libya for Agricultural Production

(Rasmane Ouedraogo; SIDWAYA, 14 Nov 86) 5

Employment Measures Decided by Cabinet

(SIDWAYA, 6, 7 Nov 86) 7

Cabinet Announcement 7

Analysis of Unemployment Problem 8

Grain Harvest Results Published

(SIDWAYA, 30 Oct 86) 10

Briefs

Kuwaiti Loan Agreement Signed 14

South Korean Agricultural Aid 14

CAPE VERDE

Student Demonstrations Focus on Individual Freedoms

(EXPRESSO, 13 Dec 86) 15

GUINEA-BISSAU

Briefs

Japan Grants Food, Agricultural Aid 16

- a -
KENYA

Briefs

EIB Port Modernization Aid 17

MOZAMBIQUE

Economic Dependence on USSR Intensifies Despite Western Aid

(Daniel Pineye; LE FIGARO, 27 Jan 87) 18

AIM Report on 'Decoy1 Beacon in Machel Crash

(Carlos Cardoso; PANA, 23 Jan 87) 22

Nordic-SADCC Accord on Hydroelectric Project Signed

(Harare Domestic Service, 5 Feb 87) 24

NAVINTER Promotes Maritime Shipping Potential

(Naftal Donaldo; NOTICIAS, 24 Dec 86) 25

NAMIBIA

Ovambo Representation in Transitional Government Likely

(Jim Freeman; THE WINDHOEK ADVERTISER, 9 Jan 87) 27

Editorial Weighs Impact of South African Election

(Jim Freeman;' THE WINDHOEK ADVERTISER, 5 Jan 87) 28

Meiring on Preparedness of Angolan Army

(Jim Freeman; THE WINDHOEK ADVERTISER, 7 Jan 87) 29

Conditions in Black Rehoboth Schools Shock Minister

(Jean Sutherland; THE WINDHOEK ADVERTISER, 26 Jan 87) ... 31

NIGER

Briefs

Saudi Aid Project 33

NIGERIA

Briefs

Bulgarian Medical Loan 34

Nigeria Airways Terminates UK Air Agreement 34

Aid for SWAPO Projects 34

Ministry To Stop Information Leaks 35

- b
SOUTH AFRICA

AFRIKANER/GOVERNMENT

Authorities Planning New Multi-Racial Capital

(THE INDIAN OCEAN NEWSLETTER, 31 Jan 87) 36

CP's Treurnicht Says Afrikaners No Minority

(SAPA, 6 Feb 87) .. • •.•

37

Deputy Information Minister Discusses Declining Unrest

(Freek Robinson; Johannesburg Television Service,

3 Feb 87) 38

Deputy Finance Minister Notes Cost of Reforms

(SAPA, 3 Feb 87) 44

Education Minister Defends NP Commitment to Reform

(SAPA, 5 Feb 87) 45

Education Minister Asks Patience With NP Reforms

(SAPA, 5 Feb 87) 47

'New Nats' May Break Away From NP After Election

(THE SUNDAY STAR, 1 Feb 87) 48

MP Nothnagel Reaffirms NP Policy

(Johannesburg Domestic Service, 2 Feb 87) 49

Police Deny CCAWUSA Intimidation Claims

(SAPA, 5 Feb 87) 50

Heunis Examines Stance on Kwanatal Indaba

(Chris Heunis Interview; Johannesburg Television Service,

5 Feb 87) 51

Heunis Dismisses Report of Differences With Worrall

(SAPA, 30 Jan 87) 56

Provinces Receive Partial Operating Funds

(SAPA, 9 Feb 87) 57

Briefs

SADF Reaction on Troop Buildup Accusation 59

President's Council Appointees Named 59

Pik Critical of U.S. Sanctions Report 59

Ministerial Representatives Bill Debated 60

Minister: Demand for ANC Booklet 60

Opposition Leader's Son in NP Election 60

New Venda Chief Justice 60

Joint Committee Parliamentary Revisions 61

- c
Increased Allowance for Pretoria's Mayor 61

Du Plessis on Economic Difficulties 61

BLACKS

Tutu Reiterates Conditions for Negotiated Change

(SAPA, 13 Feb 87) 62

Buthelezi Views Election Significance

(Mangosuthu Buthelezi; THE SUNDAY STAR, 15 Feb 87) 64

People Urged To Turn Guns on 'Masters'

(Dar es Salaam Radio Freedom in English to South Africa,

4 Feb 87) 67

Success öf ANC Farm in Zambia Noted

(SUNDAY TIMES, 18 Jan 87) 69

Fugitive Councillors To Return to Soweto

(SAPA, 13 Feb 87) 71

Study Shows Blacks Want Equal Share in Country

(SAPA, 14 Feb 87) 72

Crime Statistics for Soweto Revealed

(Montshiwa Moroke; THE STAR, 30 Jan 87) 73

New KwaNdebele Leader Has Plans for Modernization

(Sol Makgabutlane, Rich Mkhondo; 74

Briefs

Study: Black Suspicion of Disinvestment 75

UCASA: Election Important to Blacks 75

Inkatha Reportedly Breaking OK Boycott 75

Sowetans Paying Reduced Rents 76

Botshadelo To Stay in RSA 76

SOCIOPOLITICAL/OTHER

NUJ Letters Urge Release of Detainees

(SAPA, 9 Feb 87) 77

Loss of Microfilm Service Deepens Academic Isolation

(SAPA, 2 Feb 87) 78

Anglo American, NUM Compile Report on Faction Fighting in Mines

(THE WEEKLY MAIL, 23-29 Jan 87) 79

Causes Listed, by Sefako Nyaka 79

'A Spill-Over of Unrest', by Jo-Ann Bekker 80

d -
'One Year, One Hundred Dead' 81

'Union Recipe' 82

Management Accused, by Sefako Nyaka 83

Plans To Make City's Newton Area First 'Post-Apartheid Village'

(James Clarke; THE STAR, 4 Feb 86) 84

'Dramatic' Decrease in Unrest Related Deaths Claimed Since

Emergency

(THE STAR, 4, 5 Feb 87)

Briefs

Electrified Fences Worry Authorities

Black Students Apply to Colored Schools

ECONOMIC

More Aid Needed To Feed Jobless

(Chris Lebert; THE STAR, 29 Jan 87)

86

Bureau for Information Statement 86

DPSC Skeptical of Claim, by Claire Robertson 87

Commentary Notes Mozambique's Economic Problems

(Johannesburg International Service, 6 Feb 87) 88

89

89

Report Says Nation Poorer Than 15 Years Ago

(Gerald Prosalendis; BUSINESS DAY, 26 Jan 87) .. 90

Unemployment Insurance Fund Pays Millions to Jobless

(THE STAR, 29 Jan 87) 91

SBDC Offers Help To Curb Unemployment

(Theo Rawana; BUSINESS DAY, 20 Jan 87) 92

93

Liquidations Running at 'Record High'

(Mick Collins; BUSINESS DAY, 4 Feb 87) 94

Small Businesses Have FormulaTo Fight Recession

(Norman Shepherd; BUSINESS DAY, 23 Jan 87) ".-. 95

Church Study: Sanctions Counterproductive Effect

(Gerald Reilly, Chris Cairncross; BUSINESS DAY, 27 Jan 87) 96

Sanlam: Wage Demands Fuelling Inflation

(BUSINESS DAY, 27 Jan 87) 97

Nation's Business Schools Say More Management Training Needed

(Andrew Gillingham; BUSINESS DAY, 26 Jan 87) 98

Country's Management Needs Said To Be Critical

(Mandy Jean Woods; BUSINESS DAY, 26 Jan 87) 99

- e - '
Trade Surplus Hits Record High

(Gerald Prosalendis; BUSINESS DAY, 27 Jan 87) 101

Petrol Prices May Increase Later in 1987

(David Furlonger; BUSINESS DAY, 22 Jan 87) 102

Bumper Year Expected From Most Farmers

(THE CITIZEN, 20 Jan 87) 103

Development Specialists on Plan To Boost PE Industry

(Bob Kernohan; WEEKEND POST, 31 Jan 87) 104

Possible New Gold Mine in Free State Area

(BUSINESS DAY, 2 Feb 87) 106

Government Aiming to Totally Remodel Existing Transport Laws

(Chris Cairncross; BUSINESS DAY, 3, 4 Feb 87) 108

Legislation To Be Consolidated 108

Private Sector Angry 109

Briefs

Transvaal Drought Areas HO

Record Sugar Output HO

Coal Freed From Price Controls HO

Swedish Company Pulls Out HI

Relief Aid Suspended in N. Transvaal HI

Urgent Investigation in Drugs HI

Disinvestment Announced HI

ASSOCOM Business Confidence Index Up 112

Profits Sink at West Wits 112

State's Total Debt 112

Dramatic Beef Price Rise Predicted H3

Negative Money Growth Predicted 113

Minerals Bureau Statistics Heartening H3

Emigration Causes Unemployment 113

/9986
BENIN

ROLE OF KEREKOU'S PERSONAL ADVISORS DISCUSSED

London AFRICAN CONFIDENTIAL in English 21 Jan 87 pp 3-4

[Text]

In late 1986, President Mathieu Ken&ou set a new

record for absence from his country in the 14 years

that he has been in power. From 20 November to

20 December he visited the Soviet Union, Bulgaria

Yugoslavia and China. He didn't even return home

for the 30 November national holiday. Such a long

absence might appear risky for a leader who is said

to be in difficulty, but the truth is that Kerekou

has never felt stronger. He has dispensed with all

immediate rivals.

Since 1 January 1987, Kerekou has officially retired from the Beninois armed forces - he was a

general before - and has become a civilian head of

state. But he still controls the army while key economic and political decisions are taken not by the

relevant ministers but by his personal advisers, who

rarely take the limelight. They are:

• Gado Giriguissou, former minister of public works and housing. He often acts on foreign policy and financial matters. He

is the government's leading negotiator. It was he who, in 1985,

negotiated a dubious contract with the Pan Ocean Oil Co.

(PANOCO) for the exploitation of the Seme oil field, near

the Nigerian border (AC Vol 27 No 12). This deal was heavily

criticised by the World Bank, and PANOCO pulled out of

Benin in August 1986. The National Assembly has accepted

the government's excuses, confirming that Giriguissou is what

is called in Cotonou an 'untouchable.'

• Baba Moussa, director of the Banque ouesi-africaine de diveloppement (BOAD), at its headquarters in Lome, Togo. In

spite of his international job, Moussa is summoned to Cotonou

at all hours of the day or night to dispense advice to Kerekou.

Lome to Cotonou is a mere two-hour journey.

• Souley Dankoro, minister of commerce and tourism. An army

doctor, he is useful to Kerekou because he is the key to the

two main northern provinces, Atacora and Borgou. Dankoro

is from the Bariba tribe of Borgou, which traditionally considers the Sombas, Kerekou's tribe, as slaves. Relations between

the two tribes have never been good, and Kerekou in 14 years

has never succeeded in winning the allegiance of the Bariba.

Hence Dankoro's importance. Like Giriguissou, he often takes

decisions which are properly the responsibility of Finance

Minister Hospice Antonio, a technocrat who is there to sign

papers relating to decisions taken by others.

• Abdoulaye Mallam-ldi, officially an 'economic technical adviser', is the rising star of the president's entourage. He is a

former teacher of physical education.

Ivlallam-Idi was the author of a secret memorandum to Kerekou in early November 1986 regarding

Benin's financial problems, which have been enormous since the slowing-down of the Nigerian economy in the early 1980s. Benin used to thrive on

smuggling with Nigeria. The memorandum, dated

10 November, stated that the treasury's position was

'very tense'. Noting that public service salaries for

September had not yet been paid, Mallam-ldi suggested 'a refundable loan' be levied on certain public

sector enterprises. At the same time, Mallam-ldi

recognised that this would take a certain dexterity

in view of the fact that the money held by these

societies (SONAR, LNB, OBSS, SONACOP,

COBENAM), was held in bank accounts. The banks

couldn't come up with any money before January

1987, so Mallam-ldi suggested that the government

try and negotiate a loan refundable over six to 12

months with Cote d'lvoire, Cameroon or Gabon.

'But it is evident,' the memorandum concluded,

'that this depends on diplomatic relations between

ourselves and these countries, Cameroon and Gabon

especially.'

So Mallam-ldi suggested to Kerekou that he

pursue the matter with his homologues at the FrancoAfrican summit in Lome in November (AC Vol 28

No 1), and ask for financial aid from French President Francois Mitterrand. Kerekou couldn't face

asking Gabon for money in view of the long-standing

hostility between the two governments, but in

December Mallam-ldi visited a number of heads of

state, including Togo's General Gnassingbe Eyadema, on Kerekou's behalf. We note that in recent

weeks Beninois civil servants have been paid.
Payment of salaries will help to keep Benin calm,

but the real reason for Kerekou's serenity is Colonel

Mama Djougou, army chief of staff and commandant of the northern army camp at Kandi. Djougou

is from Kerekou's home area and is loyal. As long

as he's there Kerekou can afford to go abroad.

Djougou's men are the only ones in the army with

proper arms and equipment, and in any case any

trouble within the army would also be dealt with by

the president's North Korean 'advisers.'

There remain people who are still popular on

account of their former achievements such as Michel

Alladaye, popular in the army. He was expelled

from the ruling party for saying in May 1985 that

student demonstrators might have some justification.

He is one of the so-called 'Ouidah group', the real

authors of the coup which brough Kerekou to power

in 1972. His colleagues were Captains Janvier

Assogba and Michel Ayikpe. The latter died in

mysterious circumstances, according to the government after being caught making sexual advances to

Madame Kerekou. Assogba has also been retired

from the army.

Alladaye could still in theory make a political

comeback. But it is increasingly obvious that any

change in Benin will be caused by young army

officers trained in the Eastern block. They are

annoyed at not being able to acquire the army grade

which is their right on grounds of qualifications and

experience but which is denied to them because of

the financial crisis. This means that people with

equal qualifications are not getting the same rank in

the army, and not the same salary. They see a

possible ally in the Libyan representative in Benin,

Mustapha Abusseta, whose government is cruelly

deceived by Kerekou's move to the western camp,

especially in regard to Chad. Benin had formerly

played a useful role for Libya in recruiting Chadian

exiles and in diplomatic circles. The government has

recently asked Abusseta to leave Benin, but he's still

there«

/9274

CSO: 3400/6
BURKINA

EDITORIAL ON MITTERRAND VISIT TO BURKINA

Ouagadougou SIDWAYA in French 19 Nov 86 p 1

[Text] The president of Burkina Faso, reflecting the revolutionary, open, and

direct style for which he is well known, frankly described to President

Francois Mitterrand both what Burkina admires in France (the birthplace of the

world bourgeois revolution and the land of asylum for many revolutionaries)

and what Burkina will not accept from France. The comments were dialectical,

objective, and scientific.

An educated man, a writer, and above all a French lawyer, Francois Mitterrand

had occasion to exercise his longstanding occupation as a defender of all

causes, even lost causes, such as those involving the '•ambiguities"

surrounding the European visits of Jonas Savimbi or the private visit of

Pieter Botha to France. In any case, Tonton is a good lawyer. That is

certain. He knows history, including that of Upper Volta (now he knows a

little history of Burkina, of course!), Africa, Palestine, Iran and Iraq,

Afghanistan and Cambodia, including N'Djamena and the former Western Sahara,

now the RASD. He and the president of Burkina Faso agree on three essential

principles:

(1) The right of all people to selfdetermination.

(2) The need to find new bases for development cooperation outside the

framework of "colonial agreements."

(3) Debts are intolerable, and African countries cannot repay them under

present circumstances. It is necessary to dispose of them in one way or

another. Without any pretense we may search in vain in the history of the

relations between France and the African countries for an example of toasts of

this kind, unhampered by the fixed restraints of protocol.

The meeting was not at all in a context similar to that of Conakry in 1958,

between Sekou Toure and De Galle, as certain journalists who specialize in

African affairs have sought to make us believe, whatever the cost. We now

live in Burkina Faso in 1986. Francois Mitterrand is the first French

socialist president to share power with a right wing prime minister, following

an extended political struggle in France. In Burkina a special political and

historical evolution led to the unity of the organized civilian and military
forces in carrying out the revolution of 4 August 1983.

let's not go back to the colonial period. We will go forward. We will not

step backwards. And all of those who followed the political clash of ideas

between the two presidents have recognized this. This was an intellectual

exchange of views which went well above the usual "greetings" of the master to

his servants which are extended in many places and on many occasions in

Europe.

President Mitterrand has regained the verve of a militant socialist, of the

intellectual and of the lawyer, in contact with the Burkinan revolution. Each

of them realized this. Each one spoke for more than 1 hour, without mincing

words and with the freedom which only a militant atmosphere made it possible

to establish. As has been said, our guest was "in his own element," and the

exchange of views was rich, frank, and friendly, despite the strongly

paternalistic accent used by President Mitterrand, which was accepted with the

permanent smile of a revolution which smiles at all peoples and their true

representatives.

What is the evidence of this? It was in the song which Mitterrand and Sankara

joined in singing with all of the participants and with the young singers with

their fists raised, "The Internationale," the anthem of all workers, of those

who would build a better world for all.

"Let us clear away the past. Let us join together. And tomorrow, 'The

Internationale» will be all of mankind." (The words of "The Internationale"

are by Eugene Pettier, a French revolutionary.)

5170

CSO: 3419/26
BURKINA

JOINT COMPANY WITH LIBYA FOR AGRIOUIITURAL PRODUCTION

Ouagadougou SIDWAYA in French 14 Nov 86 p 9

[Article by Rasmane Ouedraogo]

[Text] In the framework of the solid relationships of multi-faceted and

fruitful cooperation between the Burkinan and Libyan people, the agro-pastoral

field has not been neglected. This has been demonstrated by the establishment

in Burkina in February 1986 of a mixed Burkinan-Libyan Arab company for

agricultural and livestock production (SOBAIAP).

Why should such a company have been established, and what are its objectives?

How does it operate? These were the questions which we asked of the officials

of this company, and in particular Fouad Ali Aburghiba, a man of Libyan

nationality and the director general of SOBAIAP. The company has its

headquarters in Ouagadougou in the offices of the former CNDI [National

Deposit and Investment Fund], not far from the great mosque.

According to Fouad Ali Aburghiga, the establishment of such a company in

Burkina reflects the point of view and the philosophy of the Libyan revolution

of contributing to the development of the African continent in general and of

Burkina in particular, in its struggle against under development and foreign

domination.

Among other things, this Libyan policy of cooperation consists of establishing

mixed companies in Africa in several areas of social and economic development.

These involve such areas as fishing, agriculture, industry, trade, tourism,

etc.

In Burkina the strategic objective of SOBAIAP is the achievement of food self

sufficiency in accordance with the policy carried out by the National Council

of the Revolution and the revolutionary government. To do this, SOBAIAP

intends to take an active part in the great struggle undertaken by the

Burkinan people against the drought and its related effects. In this sense

there is no doubt that SOBAIAP symbolizes the identity of view and the common

will of revolutionary Burkina and the Libyan Arab Jamahiriya in layhing the

foundations and achieving the objectives of mutually advantageous cooperation,

for the benefit of our two, fraternal countries.

In jointly deciding to establish this mixed company, Burkina and Libya intend

in this way to give concrete form to their common commitment to work
constantly and side by side in the struggle against misery and oppression.

From this point of view and as a political and economic tool for the common

struggle, the Burkinan-Libyan Agro-Pastoral Company has the objective of

promoting in Burkina the production and exploitation of agricultural and

livestock products and byproducts, through appropriate action, particularly by

participation in agricultural, livestock, and agro-industrial projects.

Dedicated Support for the 5-Year Plan

In view of its agro-pastoral, industrial, and commercial objectives, it is

clear that SOBAIAP should be a powerful instrument for contributing to the

implementation of the first 5-Year People's Development Plan for the period

1986-90. This plan is now under way in Burkina Faso. Agriculture and animal

husbandry have the highest priority in attaining the strategic objective of

food self-sufficiency for the people of Burkina. As Adama Dera, associate

director general of SOBAIAP, has indicated, "Burkina unquestionably has many

unexploited resources and has great potential. The wish of the Burkinan side

is to take concrete action in connection with social efforts to increase the

value and sales of our agricultural products."

We should note that the Burkinan state holds 51 percent of the shares of stock

in SOBAIAP, compared with 49 percent held by the Libyan Arab Foreign

Investment Company (IAFICO), for the account of the Libyan state. As Adama

Dera has said, SOBAIAP is not a monopolistic or competitive company in

Burkina. Rather, it wishes to be a means of achieving true development in the

framework of the policies of the CNR. Therefore, SOBAIAP is completely

complementary to all organizations and groups, state-owned or not, which work

in the direction of an independent and food self-sufficient economy in Burkina

Faso.

The Burkinan Ministry of Agriculture and Livestock will follow up the

activities of SOBAIAP in Burkina. To achieve its objectives, the documents

which set up the company stipulate that SOBAIAP is empowered to purchase all

participating shares in all companies already established or to be established

and which can be related directly or indirectly to the company's social

objectives or to all similar or related objectives, particularly in terms of

subscribing to or purchasing shares. Furthermore, the company may undertake

commercial activities within and outside of Burkina and, in a general way,

undertake all kinds of industrial, commercial, or financial activities.

SOBAIAP is managed by a Council of Administration consisting of six (6)

members (3 Burkinans and 3 Libyans). The company, which is only just

beginning to operate, has not completed any particular activities.

According to Fouad, the activities of SOBAIAP, properly speaking, will begin

after the first meeting of the Council of Administration of the company, which

will be held, beginning on 15 November 1986. This first Council of

Administration meeting will discuss several essential questions regarding the

activities of the company, including the budget and the program of operations.

5170

CSO: 3419/26
BURKINA

EMPLOYMENT MEASURES DECIDED BY CABINET

Cabinet Announcement

Ouagadougou SIDWAYA in French 6 Nov 86 p 5

[Excerpts] Comrade Thomas Sankara, president of the CNR and of Burkina Faso,

presided over the cabinet meeting held on 5 November 1986, which considered

the following questions:

The cabinet meeting deliberated at length on the most important of the

questions considered at this session, due to its urgency. This concerned the

present situation of most of those who have completed their national service

and are looking for work.

The solution to this problem is closely linked to the problem of unemployment

in Burkina as a whole. This is why the cabinet meeting refused to consider

palliative measures in order to consider the basic problem, that is, the

struggle against unemployment. This struggle involves the ideological and

political choices already made, which mark a break with the ostrich-like

policies of the former government which consisted of systematically expanding

the civil service.

The cabinet decided on the following, immediate measures:

(1) Establishing several transportation firms to organize this market and

modernize its management, with the help of young, highly-qualified officials.

(2) Establishing a purchase and sales company to operate in both the city and

the countryside to modernize economic distribution networks and provide for

their more rational organization and management.

(3) In all sectors of economic life, where craft type labor and archaic

methods are in use, which stifle private initiative, and in order to make a

greater contribution to the creation of jobs, the revolutionary government

will make it its duty to introduce modern organization and management.

In any case, the ministers concerned will provide all of the necessary

explanations in the media.
Analysis of Unemployment Problem

Ouagadougou SIDHAYA in French 7 Nov 86 p 5

[Text] As we may recall, the cabinet meeting held on 5 November took important

action regarding job creation to deal with the question of unemployment in our

country. All of the ministries directly involved in this matter have already

made their preparations on this question. Until they can provide details on

the matters pertaining to them, Comrade Basile Guissou, minister of

information, provided the following study on 6 November in reply to a question

from the press for further details.

On the basis of studies made by experts in the various ministries and to deal

with creating new jobs in the different sectors of our national economy,

modernizing our economy will be the subject of further study. Meanwhile, the

cabinet made specific decisions in the agricultural, commercial, and

transportation services sectors.

Our country has enormous potential in terms of jobs, contrary to the view

expressed by those who do not want to participate in the struggle for full

employment.

Our private entrepreneurs have been confined for a long time to using craft

type and archaic methods of work and management which have set one person

against another, dividing and neutralizing them. As long as they are isolated

and scattered, they will never have a viable and stable financial basis for

dealing with the banks in a confident way and, for example, obtaining loans

and markets in order to expand their activities. The consequence of this

economic situation is the inability of our businessmen to create jobs for

supervisory personnel or simple sales agents. This also affects the quality

of the services provided by private enterprise.

There are examples such as the operation by the Union of Transporters for

Supplying the Sahel (UTAS) to transport 35,268 tons of food between the port

of Iome and Ouagadougou during the period from 29 May to 7 August 1985. Our

transport firms were unable to find the 255 vehicles necessary for this

effort. Many transport firms made commitments but could not carry them out

subsequently. It is true that this operation cost about 5.0 billion CFA

francs. Finally, there were only 91 Burkinan vehicles which participated in

this operation. The other vehicles were Nigerian, Togolese, and Ghanaian, or

164 vehicles, in all. The highway charges were increased on an exceptional

basis from 20,000 to 23,000 CFA francs per ton, with a 2,000 CFA franc premium

per ton.

Building contractors such as those at Cite An III [Year III Residential

Development] have had problems. Our companies are not able to build multistoried buildings, quite simply because they have inadequate or outmoded

equipment. About 3.0 billion CFA francs are invested in the Cite An III

project.
In short, it is for the good of all that the cabinet took the decisions

already announced. First, it is necessary to help economic entrepreneurs

manage their activities more effectively by bringing together their capital

and improving their organizations and methods.

After this is done, this process of modernization will necessarily create jobs

to help in eliminating unemployment. Finally, the consumers, the customers,

you and I, will have the right to expect better service, for each of us will

go to the better firms to request their services. Above all, we must

understand the aspect of solidarity in developing full employment, because

each of us probably has an unemployed sister, brother, or son who will no

longer depend on others but will be able to create wealth for all of society.

The most vivid example today is the grouping of 145 cloth weavers selected

with the help of the Ministry of Family Affairs and National Solidarity. This

involves a new and difficult process. We need the support of public opinion,

businessmen, unemployed workers, and of all workers to resolve these economic

and social problems. These are human problems, and their solutions are also

human. The RDP will resolve them.

The final statement concerns the period of time involved in the creation of

these jobs. The cabinet has decided that 1 February 1987 will be the starting

date for the establishment of these economic groupings with their new

employees. Technical details will come from my colleagues, the ministers of

transport and cxanmunications, agriculture and livestock, and finally from the

minister of peasant affairs.

5170

CSO: 3419/25
BURKINA

GRAIN HARVEST RESUUIS PUBLISHED

Ouagadougou SIEWAYA in French 30 Oct 86 pp 6, 7

[Text] The 1986-87 grain growing season is turning out better than the

previous year. The harvest did not meet our food requirements during the

1985-86 season. However, the prospects are that there will be a surplus this

year of more than 21,000 tons. Therefore, we are near food self sufficiency

or even food security, as we wait for the opportunity to assert our productive

power. What could be more reassuring! Moreover, we are certainly far from

the 1974-75 or 1982-83 growing seasons when, to relieve the pangs of hunger

from which the peoples of the Sahel area were dying, our leaders "vied with

one another for the prize of the best beggar of food aid" in the world. The

initial studies made by the Ministry of Agriculture and Livestock indicate

that we will have more than enough to feed all of the people of Burkina Faso.

This is a situation which leads to difficulties of another kind. How should

we use the resulting surplus production at the national level? How should we

guarantee remunerative prices to our producers and fair prices to our non

producing consumers? In other words, how can we reconcile the interests of

the producer and those of people living on their salaries?

What possibilities have been outlined on this subject! However, for the

immediate future these cannot be implemented. To deal with the most urgent

needs, the government will have to purchase surplus production in order to

raise prices to the producers.

How should this be done and for what purpose? At the Ministry of Commerce and

People's Supply they answer: "This question is being asked too soon. For

several weeks a number of interministerial committees have been working on

this subject. We are waiting for their conclusions in order to project our

policy regarding the next growing season."

In this connection the principal instrument of the Ministry of Commerce and

People's Supply remains the National Grain Office [OFNACERJ. While waiting

for the conclusions of the interministerial committees which have been

promised to be released about this tüne, we will turn to the OFNACER to ask

about its hopes and the real possibilities.

Jean-Pierre Ouedracgo, sales director of OFNACER, told us: "Our objective for

the 1986-87 growing season is to collect 45,000 tons of grain. However, as we

10
do not have the necessary funds to do this, we are counting on the help of the

state and the international community." The OFNACER is a state-owned body

intended to manage international assistance from its inception. The Office

receives grain from donor countries, sells it, and deposits the proceeds of

these sales in its accounts. For the past year, because of the good harvest

following the 1985-86 growing season, it has not asked for any further food

aid. In particular, it has handled domestically produced grain in accordance

with the policies of the Burkinan Government.

What has been the cost of this activity? Since it has the mission of

intervening in the market to hold prices within reasonable limits and to

provide a fair return to the farmers, the Office has found it difficult to

compete with private merchants. The latter, of course, do not have the same

obligations. Thus, although the OFNACER bought its millet, corn, and white

sorghum for 80 CFA francs per kilo during the 1985-86 growing season, the

merchants bought the same grain for between 30 and 40 CFA francs per kilo.

Today, the merchants are reselling their stocks at 60 to 65 CFA francs per

kilo. Sometimes they sell for even less, instead of 94 CFA francs per kilo

—the official price paid by the OFNACER. Throughout the past year the

prices paid by the merchants have been very much below the official prices

which the OFNACER has respected up to now.

Consequently, the OFNACER has not been able to sell much of its stocks.

Therefore, its warehouses are bulging with grain at this point. It does not

have any particularly large storage capacity—about 109,000 tons. However,

some 85 percent of its storage facilities are now in use. Therefore, it is

necessary to sell the present stocks if it wants to purchase newly-produced

grain. To do this, it is charging prices very close to those on the open

market. They will sell you-a 50 kilogram saek of corn, millet, or white

sorghum for 3,600 CFA francs; a tub of corn for 910 CFA francs; or a tub of

sorghum and millet for 1,040 CFA francs. This is being done in all of the

OFNACER centers throughout the country. The price has thus been brought down

from 94 to 65 CFA francs per kilo. This decision was made in agreement with

the ministry supervising the Office.

This price reduction will result in a loss of nearly 1.0 billion CFA francs to

the OFNACER. However, perhaps it is better to lose 1.0 billion CFA francs

today than the whole food stock, worth 10 billion CFA francs, in the future.

Will it find purchasers? They are optimistic at the OFNACER. They say that,

in the absence of small purchasers, the large customers will prefer dealing

with us than with private merchants at the same or slightly higher prices.

Will this release enough warehouse space to make it possible for the OFNACER

to intervene seriously in the open market and thus have an influence on prices

and keep the market within reasonable limits?

In this connection the OFNACER has contacted foreign countries to obtain 20

silo warehouses with a total capacity of 10,000 tons. Comrade Jean-Pierre

Ouedraogo said: "However, we need about 1 month. We have asked for help from

international organizations and friendly countries."

For a Regional Policy

11
let us suppose that all goes well and that the OFNACER has the money and the

storage space to collect the 45,000 tons projected. Will it be able to keep

the market within reasonable limits? This is not so clear. About 1 year ago

we had a decline in food production. Despite that, supply met demand and

drove prices down. This year we have a production surplus. Logically, we

might conclude that the market will be better supplied with grain than it was

last year, as we know that the commercially saleable surplus can very easily

be added to the surplus resulting from the difference between net production

and consumption. It would be prudent to consider this possibility. As the

law of the market requires low prices during a period of abundant supplies,

how can we resolve the equation for the coming harvest?

This is particularly the case if, once the harvest is purchased, we cannot

sell it on the domestic market. Can we export the surplus if there is such a

possibility? We asked this question of Comrade Jean-Pierre Ouedraogo, and he

replied: "We will explore this possibility if a decision is made to do so."

However, could the problem also be resolved on a regional basis? Could we

refer it to the ICDCS [Permanent Interstate Committee for Drought Control in

the Sahel]? Why not? This could be done, to the extent that certain

countries short of food could have recourse to the surplus grain supplies of

Burkina, rather than to the markets of donor countries or to the donors of

funds to purchase food. To do that, it would be essential already to be

making the necessary contacts in order to alert our foreign aid partners to

this problem.

As of now, where shall we find the funds necessary to purchase the grain

surplus? About 1 year ago our commercially saleable surplus was estimated at

about 300,000 tons. This year it will be larger. At a price of 80 CFA francs

per kilo (the official price for the 1985-86 growing season), we would need

80,000 CFA francs per ton, or 8.0 billion CFA francs for 100,000 tons. This

is a sensitive point. However, we have to encourage the producer. This

brings us to other matters.

High prices are certainly not the only stimulus. Even if this were the only

question, the price of grain is not the only point where we can act. Why not

encourage the farmers to produce more cotton? FASO-FANI, SOFITEX, and CSPPA

could work together and, with some assistance, could provide the beginning of

a solution. Between now and then, once SOFIVAR begins operation, it could

market our peanuts. We might also consider incentives in kind, premiums, or

awards to keep the interest of the farmers.

Certainly, all of this will not resolve the financial difficulties of the

OFNACER. However, in any case, it would be appropriate to find other,

profitable forms of activity, and livestock raising is available.

The most important factor is the organization of the countryside and the

amprovement of the sales and distribution networks, without which it will be

very difficult to implement any price policy. For example, if the farmers are

organized in village groups, we can ask them to take a more active role in the

sale and storage of grain. Wouldn't grain banks make possible a larger amount

of storage in the villages? These stocks of grain would supplement already

existing facilities, such as those of the OFNACER.

12
The Grain Situation

The following table was prepared by the Ministry of Agriculture and Livestock,

on the basis of a preliminary study conducted between 6 and 12 October. It

takes into account only the figures for the month of September 1986. These

preliminary estimates indicate a surplus of 21,195 tons of grain. As ultimate

production will be subject to fluctuation, we may anticipate some adjustment

in the figures in this table.

15% loss

Gross and Seed Net Deficit

Consumption Output Deduction Output or Surplus

Region Population in Tons in Tons in Tons in Tons in Tons

Center 1,636,798 310,992 299,062 44,860 254,202 -56,780

East-Central 622,197 118,217 140,007 21,001 119,006 + 780

North-Central 844,389 161,212 196,044 29,407 166,637 + 5,425

West-Central 1,054,822 200,416 250,564 37,584 212,979 -12,563

East 732,802 139,233 230,656 34,598 195,058 +56,825

Upper Bassins 816,565 155,147 201,011 30,151 170,859 +15,712

Yatenga 549,812 104,465 73,809 11,071 62,736 -41,729

Sahel 555,636 105,570 73,579 11,037 62,542 -43,028

Bougouriba 470,950 89,480 120,869 18,130 102,739 +13,259

Moulhon Bassin 952,609 180,996 257,688 38,653 219,035 +36,039

Comoe 261,249 49,637 82,067 12,210 69,757 +20,210

TOTAL 8,497,829 1,695,356 1,925,356 288,803 1,636,560

Assumptions used: Population based on the respective provincial growth rate.

Food intake based on 190 kg/person/year (national standard).

5170

CSO: 3419/25

13
BURKINA

BRIEFS

KUWAITI I/DAN AGREEMENT SIGNED—On 20 November a ceremony was held in the

office of the minister of financial resources to initial a loan agreement

between our country, represented by Talata Eugene Dondasse, minister of

financial resources, and Murtada Ibrahim, chief of the Bagre Project

Evaluation Mission, representing the Kuwaiti Fund for Arab Economic

Development. This loan is valued at 4.0 million Kuwaiti dinars, or the

equivalent of 4.0 billion CFA francs, and covers the civil engineering

construction costs of the Bagre dam. The text of this project agreement must

still be reviewed by the Kuwaiti authorities before the definitive agreement

is reached, which will be marked by the signature of a formal text. We may

recall that the Bagre and Kompienga projects are the two great hydroelectric

projects which have been undertaken in our country in the past 2 years.

Kuwaiti participation in the construction of the Bagre project is a good

example to all and should be welcomed. [Text] [Ouagadougou SIDWAYA in French

21 Nov 86 p 7] 5170

SOUTH KOREAN AGRICULTURAL AID—A substantial amount of agricultural equipment

was offered to our country on 12 November by the Republic of Korea. The

ceremony for turning over the equipment was held in the office of the Service

for the Protection of Plants, under the distinguished patronage of Jean-Marie

Somda, the minister of agriculture and of livestock. Keun Bae Choi,

ambassador of the Republic of Korea, spoke first at the ceremony and said:

Today's ceremony is a source of profound joy for me, particularly as it takes

place at a time when a plague of locusts poses a serious threat to the coming

harvest and threatens to reduce to nothing the efforts of Burkinan farmers."

The equipment which has just been turned over to our country constitutes the

second consignment to be delivered. The first consignment was turned over on

13 February. This second delivery is composed of 19 motor pumps, 40 spraying

engines, 300 back portable sprayers, 3 scrapers, and 20 powerful sprayers.

[Excerpt] [Ouagadougou SIDWAYA in French 14 Nov 86 p 8] 5170

CSO: 3419/26

14
CAPE VERDE

STUDENT DEMONSTRATIONS FOCUS ON INDIVIDUAL FREEDOMS

Lisbon EXPRESSO in Portuguese 13 Dec 86 p 24

[Excerpt] One of the leaders of the student demonstrations which took place

this week in Mindelo, capital of the island of Sao Vicente, Cape Verde, told

EXPRESSO that there is /possibility of further manifestations of student

discontent in the city.

The protest began Tuesday on the occasion of the sixth anniversary of the

death of rock singer John Lennon. About 200 high-school students marched to

the offices of the Cape Verde Security Department, carrying signs that read

-Lennon Forever" in English, claiming freedom of expression, attacking the

official youth organization, and, according to the official version of the

incident, the one-party system.

Earlier, a number of copies of a pamphlet put out by theM

Self;s

^

e

^.^fent

Democratic Union (UDE) with the slogan "Peace, Love and Music" had circuited at thHigh school, where it was said that "The people must have mdividual freedom, the right to choose and control their own lives.

The crowd was dispersed by police near the Security building and nine students

were arrested, two of whom were soon released because they were minors. The

^rs refaited in custody until Thursday morning «

e

J^^^ ab°

Ut

their intentions and the names of the organizers of the demonstration.

Thursday morning, the youth amassed in a larger demonstration, demanding the

release of their arrested companions, which did in fact occur.

Student dicontent in Cape Verde is probably caused by a

re"n

^^^ri^n°up°

n

access to schooling, among other things. Young men are "*««£"> s£

n

^

for military service at 18 and can then no longer return to school. Because

«? larae-scale emigration to Europe and the United States, the island of Sao

V c n ^traditionary more subject to cultural M? ' «"*££££

areas of the world than the rest of Cape Verde. The students told EXPRESSO

that it was not their intention to time the protest with the visit of the

Portuguese president.

8844

CSO: 3442/65

15
GUINEA-BISSAU

BRIEFS

JAPAN GRANTS FOOD, AGRICULTURAL AID—Dakar, 2 Feb—Japan has given GuineaBissau two grants of Y150 million each (about 305 million CFA francs) for

financing food aid and an agricultural project, the Japanese Embassy announced here today. The food aid consists of the supply and transportation

of rice to Bissau and will help to offset part of: the food shortage in

Guinea-Bissau. The second grant consists of supplying fertilizers, insecticides, and agricultural machinery for a rice production intensification

project. The two grants bring to Yl,983 million (about 3.966 billion CFA

francs) Japan's total grants to Guinea-Bissau since 1981. [Text] [Paris

AFP in French 1135 GMT 2 Feb 87 AB] /9274

CSOs 3400/966

16
KENYA

BRIEFS

EIB PORT MODERNIZATION AID—The European Investment Bank has granted a loan

of six million European Currency Units to the Kenya Ports Authority for the

repair and modernisation of berths and oil terminals at Mombasa. The project

covers facilities for bulk liquids» general cargo and containers. The entry

into service of the renovated Installations, whose total cost is put at 12.2

million ECUs, is scheduled for mid-1989. They will lead to a reduction in

delays for ships and lower transport costs. [Text] [Paris INDIAN OCEAN

NEWSLETTER in English 31 Jan 87 p 7] /9274

CSO: 3400/6

17
MOZAMBIQUE

ECONOMIC DEPENDENCE ON USSR INTENSIFIES DESPITE WESTERN AID

Paris LE FIGARO in French 27 Jan 87 p 22

[Article by Daniel Pineye: "A Solid Attachment to the East"; first sentence

is LE FIGARO's introduction]

[Text] With economic dependence on the USSR continuing to grow, it would

be false to think that Western aid would lead Maputo's rulers to reverse

their alliances.

The alliance between Mozambique and the Soviet Union, which was founded

on ideology, is now based on close and vital economic links. The West

can help this country for humanitarian reasons but it should have no illusions:

strengthening Western aid will not convince the leaders in Maputo to

reverse their alliance with the USSR, which has become their prime source

of aid and their prime supplier, a position that was formerly held by

South Africa.

Last 3 November the central committee of the only party in power, the

Frelimo, chose Minister of Foreign Affairs Joseph Chissano to succeed

President Samora Machel, who died in an airplane crash.

In his inaugural address the new chief of state strongly reaffirmed

the Marxist nature of the regime with some very pragmatic remarks. He

said that the party must take into account the political and economic

realities of the region. This reconfirmed the opinion of those analysts

who state that the country has been tending to distance itself from the

USSR and align itself with the West since the Nkomati agreement with South

Africa and the country's signing of the Lome convention.

A Sovietologist, however, would not share their opinion. For one thing,

the USSR has always offered its own pragmatism as an example to its friends.

Even Lenin said that it is necessary to lose ground in order to gain the

time needed to strengthen the regime. Stalin, as well as all his successors,

followed this principle. Gorbachev is getting ready to do the same by

proposing changes for the socialist economy.

18
For another thing, in Mozambique's case in particular, it should be pointed

out that the USSR has not been content, as some think, with its role as

an arms supplier but has become the country's main economic partner.

Pretoria's Position

In 1984, the very year that the Nkomati pact was signed, Soviet imports

to Mozambique surpassed South African imports. The USSR then rose to

its position as Mozambique's principal supplier (a position it still holds

today), far in front of the United States, which snatched second place

from the Republic of South Africa in 1985.

The major Soviet export is crude oil, which has allowed Mozambique to give

a new impetus to the production of refined products, which had dropped

(210,000 tons in 1983 compared to 685,000 tons in 1980) because there

was no money to supply the refineries. Since 1984 the country has again

been able to export petroleum products; this helps it earn some of the

hard currency needed to import food.

Another important category of exports is capital goods, in particular

those which the Soviet statistics "forget" to identify. Cross-checks

that can be made in the specialized press do seem to prove, however, that

this is primarily equipment for improving Mozambique's fishing fleet.

There was a repair facility for the port of Maputo, consisting of a 4,500

ton dock and a wet dock, built in 1982-1983, and of at least three trawlers

bought in 1984-1985.

The last category that deserves a mention is airplanes. Air transportation

has become vitally improtant in Mozambique ever since the ambushes carried

out by the rebels practically paralyzed highway transportation.

Slow Accomplishments

However, a problem of reliability with the airplanes could prevent them

from being exported again. With two accidents in a single year (77 dead,

including several leaders and the president), the Soviet vice-minister

for civil aviation, Ivan Vassine, felt obligated to accuse South Africa

on 12 November of having caused the crash of the aircraft that was carrying

President Machel from Lusaka.

When, in 1982, Mozambique finally accepted the necessary conditions for

joining the Lome conference, the USSR was already its major source of

economic aid. Its grand total of commitments for development aid since

the country's independence ($375 million) is equal to that of all 10

countries of the EEC ($380 million, multilateral aid included) and quite

outpaced Sweden ($263 million), the principal Western source of bilateral

aid.

The amount of new Soviet aid commitments is not known at the moment but

judging from the new Western offers no competitor is trying to take its

place.

19
Unlike the West, the Soviet Union carries out its development programs

very slowly. Except for a few teaching centers and a joint venture

fishing company, the projects defined in the protocols attached to the

1976 and 1980 agreements are only in the research or technical development

stage. This explains the small amount actually spent from the Soviet aid:

about $80 million since 1977.

The phase for starting construction is near, however, if it in fact has

not already begun, for example at Moatize. The coal mining facility

there will soon increase by three mines and two open pit quarries in order

to bring production to 5 million tons of coal and, hopefully, to export

it. In Mutale production of tantalum should double. In the Limpopo

Valley the aim of the irrigation projects is to increase production of

cotton and other crop exports.

The equipment needed for these projects will start being delivered soon

and the USSR's role in the economy of Mozambique will again be bolstered.

[Boxed material]

A Good Report by the Government

According to the prime minister, Mario Machungo, who spoke to the Popular

Assembly on 17 January, the decline in the Mozambican economy seems to

have been halted in 1986. Production increased in comparison to the low

levels of the previous year. The prime minister reported that industrial

production grew by 7 percent and the quantity of consumer goods and food

products placed on the market grew by about 30 percent.

He added, however, that the goals of the plan for 1986 were reached only

in the sectors of industry, construction and communication; at the same

time agricultural production intended for market declined by almost 20

percent and the quantity of agricultural products sold on the market fell

by 15 percent.

The prime minister also pointed out that between 1982 and 1985 overall

production declined an average of 11 percent per year and the GDP went

from $2.1 billion in 1981 to 1.45 billion in 1985. (Maputo-A.F.P.)

20
Soviet Trade With Mozambique

(Iri millions of current dollars)

1980 1981 1982 1983 1984 1985

EXPORTS:

Machines, equipment and means

of transportation

Aircraft

Miscellaneous

Not identified

Fresh fish

Petroleum

Miscellaneous

Not identified

IMPORTS:

Globulite and tantalite

Miscellaneous

27.6 49.4 60*8 103.6 169.4 101.0

18.0 23.4 39.1 53.7 108.7 32.9

8.6 12.7 0.6 26.4 34.9 7.5

2.8 5.2 15.1 0.9 15.2 1.2

6.6 5.5 23.4 26.4 58.5 24.2

4.2 3.6 2.8 2.0 3.7 2.6

_ _ - 26.5 40.0 44.4

0.2 16.4 8.2 0.4 1.1 3.4

5.2 5.9 10.7 21.0 15.9 17.8

2.6 1.8 9.2 1.1 2.0 1.8

1.8 1.2 1.2 0.3 0.9 -

0.8 0.6 8.0 0.8 1.1 1.8

Source: Foreign Trade of the Soviet Union

9720

CSO:3419/65

21
MOZAMBIQUE

AIM REPORT ON 'DECOY' BEACON IN MACHEL CRASH

MB231251 Dakar PANA in English 1150 GMT 23 Jan 87

["Special report" by Carlos Cardoso: "VOR's and Samora Machel's Death"]

[Text] Maputo, 23 Jan (AIM/PANA)—Mozambique's transport minister, Lieutenant

General Armando Guebuza, stressed on Wednesday a fact which shows one of the

reasons why the Frelimo Party Political Bureau is demanding that the

investigations into the causes of the death of President Samora Machel should

continue.

That fact was the appearance of signals from a VOR (Very-High Frequency

Omnidirectional Radio) about 10 minutes prior to the crash of the presidential

Tupolev-134. It was that VOR which caused the plane to turn to the southwest.

The factual report signed by the three members of the international

commission of enquiry (Mozambique, the Soviet Union, and South Africa)

contains an annex which is the transcription of the conversation amongst the

cabin crew. This comes from the cockpit voice recorder (CVR) which was

listened to in Switzerland in November. This annex is also signed by all

three delegations. The annex has been translated from Russian into English.

Throughout the report and annex the time used is not southern African time but

universal time (GMT). According to the CVR transcription, at 21:11 and 28

seconds (1911:28) the captain said: "Making some turns. Couldn't it be

straight?" The navigator replied "VOR indicates that way."

This was a turn of 37 degrees to the southwest, which begin over the zone

between Magude and the South African border. Magude is a town about 100 km

northwest of Maputo. Until Magude, the plane was flying with a fluctuation of

only 4 to 6 kms from the established route. In navigational terms it was,

therefore, on the correct course. A turn to the southwest should have been

made over the Manhica area. The angle of this correct term would have been

identical to that made by the plane over Magude. Due to the appearance of the

VOR referred by the navigator, the aircraft had turned to the right. It made

the same turn that it would have made if the signal had not appeared, but did

so a few fatal minutes earlier.

According to the CVR transcript, in the following minutes, up until the impact

on a hillside at Mbuzini (at 21:21 and 39 seconds), the crew complained that

22
all navigational aids at Maputo except the VOR were not functioning. The crew

said they could get no guidance from the non-directional beacon (NDB),

instrument landing system (ILS), or distance measuring equipment (DME). This

leads one to suppose that in these minutes the crew did have a VOR signal. In

the transcript there is nothing to indicate any disappearance of this VOR

right up to the moment of the crash.

Logically, the behaviour of the crew after the premature turn can only be

examined after that turn is fully explained. So, what VOR was it? Could it

have been the VOR at Matsapa Airport in Swaziland, or was it some other VOR?

A journalist from a news agency with an office in Johannesburg telephoned AIM

on the morning of 21 October, asking about reactions in Maputo on the death of

President Samora. [as received] During the course of the conversation he

told IAM of a strange telephone call that it is useful to recall today. He

said that his agency received a call from a man who did not identify himself

but who claimed to be an officer in the South African Air Force. He said that

South African military had placed a "decoy beacon" in the border area.

Now the factual report states that "during the on-site investigation an

abandoned campsite was found on the South African side of the border

approximately 150 meters southeast of the place where the aircraft initially

contacted the ground. Witnesses on Mozambique's side of the border informed

that a tent on the site had been removed on the day after the incident."

The report says that the South African security police at Komatipoort were

asked to investigate "who erected a large tent on the site and when." The

police reported to the commission that they had found an employee of the

Department of Veterinary Services who patrolled this section of the border in

September and October 1986. "He frequently saw members of the S. A. Defence

Force camping at the place," states the report. "Their tents were however

small. The soldiers sometimes played with a yellow ball. He once saw the

ball lying on the site shown to him by the security branch (?commander)." The

factual report ends this part of the enquiry with the words "the company

commander of the army unit in the Komatipoort area has no knowledge of any

camps in this particular area."

In his statement, Gen Guebuza said that the investigation could by no means be

considered as concluded. The appearance of the mystery VOR means that there

are now more questions than answers. Was the VOR a legitimate beacon or a

decoy one? Did the crew make mistakes due to lack of attention or were they

induced to make errors? Was the crash an accident or a crime, or a

combination of action and human failings? These questions can only be

answered if the matter of the VOR can be cleared. Until this is done, this

whole complex investigation runs the risk of creating more mysteries than it

solves.

/9599

CSO: 3400/922

23
MOZAMBIQUE

NORDIC-SADCC ACCORD ON HYDROELECTRIC PROJECT SIGNED

MB050819 Harare Domestic Service in English 0500 GMT 5 Feb 87

[Text] Nordic countries have signed an agreement under which they will

finance a hydroelectric project in Mozambique. The accord was signed in

Gaborone, Botswana, yesterday at the end of the first joint meeting of

Nordic countries and the southern African states.

Signing the agreement was the Norwegian minister of development cooperation, Miss Vesla Vetlesen, while Mr Mmusi, Botswana's vice president,

signed on behalf of the SADCC. Mr Mmusi is also chairman of the SADCC

council of ministers.

The $30 million hydroelectric station is intended to provide adequate

electricity for southern Mozambique with possible transmission lines to

Swaziland, It will have three generating units of 8.3 megawatts each.

/9274

CSO: 3400/966

24
MOZAMBIQUE

NAVINTER PROMOTES MARITIME SHIPPING POTENTIAL

Maputo NOTICIAS in Portuguese 24 Dec 86 p 3

[Article by Naftal Donaldo: "Mozambique Enters Maritime Market"]

[Text] NAVINTER wins bidding and ships nearly 50,000 metric tons of grain

from the US to Mozambique.

"Mozambique has all the necessary prerequisites for becoming a trading nation,

its geographical location next to "land-locked countries, experienced partners

capable of transferring the know-how that is so critical to mastering the

science that is modern shipping, and in particular the ability and will to

learn that has always characterized our people," said Orlando Come, the general manager of NAVINTER (international Navigation Company) in an interview

Tuesday with NOTICIAS to explain his company's goal of implementing and solidifying plans made by the People's Republic of Mozambique for the international long-distance maritime shipping market.

NAVINTER is a new state-owned company that began operations in early 1986,

although it was chartered under a Council of Ministers decree published on 18

May 1984.

Its founding is important and will have wide-ranging consequences for the consolidation of the economic independence of our country, because it will be

through long-distance maritime shipping that the company will earn the hard

currency necessary to improve our balance of payments.

NAVlNTER's general manager explained that since Mozambique does not have its

own fleet of ships, it will have to resort to leasing vessels from foreign

companies for each trip during the first phase, and later on an unmanned

ship" basis for a given period of time, i.e., with the option of providing its

own crews.

"The Nautical School is training crews with different specializations. We

must take this first step into consideration for the future of the Mozambican

merchant marine," he added.

He went on to say, "We will not limit ourselves to cargoes that have Mozambique as the point of origin or destination. We will explore interregional

and intercontinental maritime shipping."

25
The Transportation and Communications Ministry official illustrated the growth

of the company he runs by mentioning the requests made this year to ship merchandise to and from the Mozambican ports of Maputo and Nacala, emphasizing

that all the international bids it was awarded depended on assistance from

SEANET and other shipowners. SEANET is NAVINTER's agent in the United States.

"Friday in Maputo we finished unloading 24,890.50 metric tons of bulk wheat

imported by the People's Republic of Mozambique from the united States of

America. This is the second-largest shipment of grain imported by our country

through the company this year. In the first part of the second half of the

year, we shipped 14,700.9 metric tons of rice in sacks and 9,114 metric tons

of bulk corn from the USA to Maputo and Nacala," said the official.

Orlando Come said that Ocean World Lines was contacted about leasing the Viva

1, a bulk grain vessel flying the flag of Singapore, and the Golfo, a US-flag

vessel. Most of the grain was shipped to Nacala, but some went on to Maputo.

He said, "The grain shipped to Maputo was delivered to production lines at the

Companhia Industrial de Matola and SOCIMOL."

Around the middle of the year, the Agia Sofia, a grain vessel registered in

Cyprus, also unloaded 14,700.9 metric tons of rice and 9,114 metric tons of

corn at Maputo and NaCala.

Asked about NAVINTER's plans for the future, Come added:

"In spite of the fluctuations in the shipping market and its unstable and often unpredictable nature, the company is trying to operate in a fast, secure

and realistic manner to identify sources of hard currency for Mozambique by

offering its services to SADCC, sending representatives to international shipping agencies and associations and increasing its penetration in long-distance

maritime shipping."

In the last half of this year, NAVINTER sold the Pemba to INCOM, Ltd., a British scrap iron concern, for $154,204. At this time, official efforts are under way to sign contracts with foreign companies to consolidate the admirable

performance of the company in its first year of operations.

8844

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26
NAMIBIA

OVAMBO REPRESENTATION IN TRANSITIONAL GOVERNMENT LIKELY

Windhoek THE WINDHOEK ADVERTISER in English 9 Jan 87 p 1

[Article by Jim Freeman]

[Text] OWAMBO REPÄESENTATION in the

Itansitional Government is on the cards

for mid-1987.

Sources in both the TG and

Owambo say leading businessmen and one of Namibia's

richest men, Mr Frans Ndonga, is on the point of forming

his own party.

People close to Mr Ndonga

told The Advertiser he has already decided on forming a

party and that this step would

probably be taken in early

April.

Mr Ndonga is at present

right hand man to the chairman of the Administration for

Owambos, Mr Peter Kalangula. He is also deputy leader of

Mr Kalangula's Christian

Democratic Action for Social

Justice party.

The persistent reports of Mr

Ndonga's impending departure from the CDA caught Mr

Kalangula by suprise at Ondangwa this morning.

Mr Ndonga's plans have

taken some time to crystallise.

He was also considering the

possibility of ousting Mr

Kalangula from the CDA

leadership, party members revealed.

/12828

CSO; 3400/43

They say it is probable that

Mr Ndonga will entice the vast

majority ,of the 23 Owambo

millionaire entrepreneurs in

the CDA to his party.

The new party will apply for

membership ofthe Transitional Government, but not as a

member pf an existing TG alliance.

The South African government, particularly in the form

of the Administrator-General,

has been trying very hard in recent months .to persuade Mr

Kalangula «p join the TG.

Mr Kalangula has set as a

precondition an Owambo election to "give him the mandate

of the people".

While the South Africans

have made some approving

murmers, the TG is less than

entranced by Mr Kalangula's

stipulations and is saying no to

an ethnic election.

The TG feels that not only

would such an election be the

entrenchment of Proclamation AG8 at a time when most

member parties are seeking to

have it repealed, but also that

this would naw the ws»v fnr an

Owambo takeover of the

government.

«Mr Kalangula will come to

Windhoek saying he has the

support of more than half of

the Namibian people and

should be represented appropriately in the government;' said one Cabinet

Minister.

Thiswould enable Mr Justus

Garoeb to do tne same with his

Damara Council, and the pioneers ofthe Multi-Party Conference would find themselves

in a representational minority,

he said.

Any Owambo party of significance that sets no preconditions for participation in

the national political dialogue

will be more than welcome say

National Assembly members.

27
NAMIBIA

EDITORIAL WEIGHS IMPACT OF SOUTH AFRICAN ELECTION

Windhoek THE WINDHOEK ADVERTISER in English 5 Jan 87 p 3

[Editorial by Jim Freeman]

[Text]

The South African general election calledfor next year

by President P W Botha could have a profound influence on the Namibian settlement issue if electoral

campaignsfollow their expected patterns.

The Administrator-General, Mr Louis Pienaar, told

The Advertiser two months ago that a South African

general election would be held around March or April

1987.

At the same time, he predicted that the National

Party government's electioneering platform would be

violently anti-American in theface ofthe mounting US

disinvestment drive.

It's anticipated that the South African Nats will focus their campaign on anything but their reform

programme and blame the United Statesfor the ills afflicting the country. Theslogans willprobably be along

the lines: "SA can do it alone", and "a votefortheNats

is a vote for South Africa".

The Administrator-General added that the NP was

fully preparedfor the Reagan administration to retaliate by dropping the linkage between the Cuban force

withdrawal fromA ngola andNamibian independence.

However, Mr Pienaar stressed the SA government

would hold on to the linkage issue "for as long as ispolitically feasible" after the American disavowal.

Hut MrPienaar'sstatements weremade before President Reagan became embroiled in the Iranian "armsfor-hostages" tradeoffscandal.

Politiciansin Windhoek, and indeed throughout the

world, are convinced President Reagan's Republican

Party will lose the 1988 presidential election to the

Democrats.

With particularly Democratic Senator Edward

Kennedy, who not so long ago visited Namibia during

/12828

CSO: 3400/43

his southern African fact-finding mission, gliding

American policy into the 1990s, there are fears all attempts at an internalreconciliation andsettlement will

be ignored in favour ofpressurefor a United Nationssupervised election.

Atpresent both the Transitional Government and, to

some extent, South Africa favour an election in

Namibia: but provided it is monitored by the Western

Contact Group.

Both parties'(SA + TG)fears of a UN-supervised

election is that Security Council Resolution 435 - the

world guideline for Namibian independence - has

long been urged for implementation by Swapo.

One of the chiefprovisions of the United Nations

plan is the deployment ofa UN TransitionalAssistance

Group in the territory.

But such a deployment in Owambo, not only the

home ofmore than halfNamibia'spopulation but also

Swapo's chief support resource, would be seen as a

Swapo victory long before polling started.

There would be a Swapo landslide in the north and

thefear would transmit itself throughout the country.

The result would resemble Zimbabwefollowing the

1980election when Robert Mugabe's Zanii took almost

alltheseatsin government butforthosefewguaranteed

to the whites under the Lancaster House agreement.

So, one can see the opposition to Resolution 435 and

understand why the South Africans and the Namibian

internal grouping is seeking an alternative.

Both West Germany and, to a lesser degree, the United Stales (under Reagan) have perceived some sense to

this argument and there has been debate on the issue

by the Contact Group.

However, though an anti-American platform to win

votes in a South African general election might be a

handy ployfor Mr Botha but it could also be seriously

detrimental to Namibia.

A ny alienation ofwhat is regarded as the onlyforce

powerful enough to pushfor a non-UN election could

sound the death-knell for the internal attempts at

securing peace and independence for Namibia.

28
NAMIBIA

MEIRING ON PREPAREDNESS OF ANGOLAN ARMY

Windhoek THE WINDHOEK ADVERTISER in English 7 Jan 87 pp 1, 5

[Article by Jim Freeman]

[Text] The Angolan armed forces may become

arrogant as a result of the conventional

arms buildup in the country, and it is a

matter of time before they feel they can

challenge Namibian-based security forces

on or over Angolan territory.

The outgoing General

Officer Commanding the SWA

Territory Force, major-general

Georg Meiring, said it was particularly the Angolan Air

Force that felt it could

challenge the superiority of its

South African counterpart.

He said the southern Angolan radar net now covered

northern Namibia and pilots

felt free to fly down to their

southern border looking for

action.

General Meiring said while

there had been no aerial combat between aircraft of the two

countries in the past four years,

"if they think they can take on

our aircraft, they would".

Four years ago, South African jet fighters shot down two

MiG-21s in a brief dogfight

during a South African crossborder sortie.

General Meiring revealed

that a vehicle patrol that

, crossed into Angola to lift a

Swapo weapons cache three

months ago had been attacked

by Angolan fighters just 30

kilometres from the Namibian

border.

General Meiring said two

MiG-21 aircraft had taken off

from Lubango in southwestern Angola and rocketed

the Territory Force patrol.

Several rockets had been

fired at the vehicle. None ofthe

Namibian soldiers had been injured, but the vehicle was

slightly damaged, he said.

He added that this was "an

exceptional" occurrence that

had not been repeated.

There had, however, been a

number of other confrontations with the Angolan army.

He did not regard these as

serious, general Meiring said.

In one incident, about 60

metnbersofthe Angolan Army

were killed when they ambushed Security Force vehicles

pursuing Swapo insurgents

back into Angola.

-General Meiring, who takes

over Northern Transvaal Command later this month, said a

liaison point "of sorts" had

been established with the Angolan Army at Santa Clara on

the Namibian border.

The Angolans were generally notified when the Security

Forces crossed the border in

pursuit of Swapo.

The Security Forces had

crossed into Angola on hot

pursuit operations against insurgents "as often as in past

years, only last year we did not

publicise it".

General Meiring listed the

Angolan Air Force's aircraft

line-up as including Mig-21 F

fighters, MiG-23 fighters, the

advance Sukhoi Su-22 fighter

as well as Mi-25 Hind, Mi-16

and Mi-8 helicopters.

The anti-aircraft air defence

system comprised virtually the

entire range of Soviet-made

SAM missiles, including the

sophisticated SAM-6 and

SAM-8 tracked systems.

These surface-to-air missiles

were used in conjunction with

the radar systems and were

deployed as far south as Caha29
niaaiKl Mnlnla less than 100

^''"metres from the Naniibian

border.

General Moiling added that

the main radar stations were

sited at I.ubango, Mcnongue

and Luena as well as intermittently at Cuito Cuanavalc.

Rebels from the Angolan

resistance movement Unita

claim to have attacked C.'uiio

Cuanavalc but with dubious

success last year.

General Meiring said the

rearmament of southern Angola posed not only a conventional threat to Namibia but

also a potential counterinsurgency one.

At present Swapo had no

permanent bases closer than

250 kilometres to Namibia,

rearing that a closer deployment would tempt pre-emptive

operations.

In moving to Namibia,

however, insurgents sometimes

used Angolan Army transport,

utilised tliei" logistical lines

and availed themselves to Fapla medical assistance.

Asked whether the Security

Force might not lose too many

soldiers in a pre-emptive strike

should Swapo create permanent bases together with Fapla

in Southern Angola, general

Meiring replied: «It depends

how badly you want to take

that base".

In deploying in southern

Angola, Swapo maintained an

headquarters element oftwo to

three members who roved the

area avoiding Security Force

detection while their comrades

crossed into Namibia on

sabotage missions.

G-neral Meiring said not

only had the northern Namibian bush war diminished by a

third in its intensity last vear

compared to 1085, but Swapo

had scaled down its activities.

"Instead of blowing up a

pov.er station, they arc now

blowing up telephone poles;'

general Meiring said.

Territory Force headquarters announced this week that

645 insurgents had been killed

by the Security Forces in 1986.

Swapo had returned front its

guerrilla to a ^organisational

phase he said, adding that the

number of insurgents had

decreased from about 16 000

in 1978 to the present level of

about 8000.

The majority were deployed

in the MI'LA's conflict with

Unita, he said, leaving a potential force of about 1200 to infiltrate Namibia.

/12828

CSO: 3400/43

30
NAMIBIA

CONDITIONS IN BLACK REHOBOTH SCHOOLS SHOCK MINISTER

Windhoek THE WINDHOEK ADVERTISER in English 26 Jan 87 p 3

[Article by Jean Sutherland]

[Text] CONDITIONS AT black schools in the ltehoboth

Gebiet are "appalling".

This is (lie impression of

Education Minister Andrew

Matjila following a two-day

visit to the Gebiet last week.

"With few exceptions all

schools are, generally speaking, badly off...but black

schools are worse," he told The

Advertiser today.

They suffered from poor

and inadequate facilities, a

lack of equipment and teaching aids, and in many cases

teachers were poorly qualified.

Describing the situation as

urgent, Mr Matjila said he

would submit a report to the

Cabinet for discussion

tomorrow.

Despite setbacks on the education issue over the past year,

the visit to Rehoboth had

strengthened his resolve to deal

with the schools issue "once

and for all", said Mr Matjila.

"We will definitely do so this

year -- ofthis I am convinced."

In another development, the

parent committees of two

Swakopmund schools meet

tonight with officials of the

Administration for Whites to

discuss opening their doors to

all races.

In addition to the English

Medium Primary school, the

dual medium

Afrikaans/English Medium

High School at the coastal

resort has now applied to "go

open".

A final decision will be taken

by the White Administration's

executive committee after its.

representatives report back on

tonight's consultations.

Last week's visit to Rehoboth by Mr Matjila and his

deputy, Mr Piet Junius, came

in the wake of the Rehoboth

Rcgering's refusal to admit

non-Bastcr children to their

schools unless the central

government helped meet costs.

1\vo extremes in the Oebiet

were described by Mr Matjila

today: the heart-rending

poverty children at the

Nawaseb school had to contend with; and the "extravagance of a wonderful...modern school, second to

none," which was underutilised

as it has been located in the isolated Schlip area.

The Schlip school, which

has a modern laboratory, 20

classrooms and other facilities

was built to accommodate

around 600 pupils.

"It has never had 600 children - at the moment there are

around 200 youngsters," Mr

Matjila said.

The school was also not performing well, he added. One

reason was that the isolated

setting had resulted in a high

staff turnover.

In contrast, the school at

Nawaseb had to accommodate

around 198 pupils, ranging

from Sub A to Std 4, in three

classrooms.

At one black school, the

children had virtually nothing

to eat and their "hostel accommodation" amounted to

badly-constructed tin shacks.

The principal had told him

31
that when it rained ill night, lie

opened I he school to allow the

children to sleep in the classrooms.

"Black parents are adamant

that their schools must be

placed under National L-ducation," Mi Matjila said.

Outlining general conditions at Rehoboth, the lidueation Minister said there were

two schools at every village in

theCiebiet: "a black school and

a Bastcr school".

Mr Matjila said he could not

understand why one school

could not be established.

When he asked way had •

been told the main reason was

language.

When the Rehoboth government had taken over schools in

the late 1970s, apparently

predominantly Damara and

Nama-speaking parents had

demanded that their children

be taught in Damara/Nama at

the lower primary level.

Children at Uastcr schools

are educated in Afrikaans

from Sub A.

A few schools could probably be described as integrated,

he said, as they were attended

by a "sprinkling of non

Masters".

However, one school had

proved an exception, "a shining example", Mr Matjila

added.

This was the school at F.sel

Maanhaar.

"It shows what can be done

if you have a motivated prin-

•eipal."

It was the only school he felt

was truly integrated.

The principal had told him

Afrikaans was used as medium

of instruction from Sub A, and

there had been'no objections

from parents.

All hough Nama- and

Damara-spcaking children experienced difficulties in the

first two to three months, "at -

lei that they do just as well as

the predominantly Afrikaansspeaking Hastei children".

/12828

CSO: 3400/43

32
NIGER

BRIEFS

SAUDI AID PROJECT—As part of the regional program "Using Underground

Water in the Countries of the Sahel," OFEDES [Office of Subsoil Water]

has been given the task of digging 300 wells. This project, which was

begun at the initiative of ICDCS, is being financed by the Arab countries

in the amount of $215 million, of which $100 million is from Saudi Arabia.

A Saudi group recently visited the Filingue region to see the progress

of the project. Of the $100 million from Saudi Arabia, $15 million

were earmarked for the emergency food program and $85 million for hydraulic

projects. From this fund Niger received 3.1 billion CFA francs, of which

2.463 billion francs were for digging the 300 wells, with 103 of them

in Filingue, 92 in Ouellam and 105 in Gaya. OFEDES has 30 months to complete

the work. [Text] [Niamey LE SAHEL in French 21 Jan 87 p 37] 9720

CS0:3419/65

33
NIGERIA

BRIEFS

BULGARIAN MEDICAL LOAN—Medical equipment worth 80 million naira are to be

supplied to the Sokoto State government to service its primary health care

scheme. A contract for the supply of the facility was signed yesterday

in Sokoto between the government and a foreign company, Messrs fas heard]

Medical Budapest of Hungary. The money will be drawn from a $100 million

loan to Nigeria by the Hungarian government for the procurement of

equipment for primary health care. Seven states of the federation have

so far signed similar agreements with Messrs Medical Budapest under the

main package from Hungary. [Text] [Lagos Domestic Service in English

2100 GMT 24 Jan 87 AB] /12858

NIGERIA AIRWAYS TERMINATES UK AIR AGREEMENT—-Nigeria has terminated the air

service agreement between her and the United Kingdom. In a statement in

Lagos yesterday, the Federal Government explained that the action followed

several unsuccessful attempts to correct the inbalance in the route schedule

to the agreement. The Federal Government took this step in accordance

with Article 18 of the agreement. Under the accord, the Nigeria Airways

is allowed to operate to two points while the British Caledonian is also

allowed to use two points, Kano and Lagos. According to the statement, the

Nigeria Airways operate only one point, London and has been unable to find

a second point comparable in value as Kano is to British Caledonian. The

statement stressed that as much as Nigeria was desirous, no option than to

terminate the agreement in view of the position taken by the UK aeronautical

authorities on the issue, [as heard] [Text] [Lagos Domestic Service

in English 0830 GMT 30 Jan 87 AB] /12858

AID FOR SWAPO PROJECTS—Nigeria has donated $100,000 toward the building of

three projects for the welfare of Namibians at (Koakoa Sunle) in Angola

They are medical centers, vocational training institutes, and [words indistinct] public projects. Presenting the check in the amount on behalf

of the Southern African Relief Fund of Nigeria, the ambassador to Angola

Chief Victor Chibundu, said that the donation was just one aspect of

Nigeria's efforts at supporting SWAPO's tremendous efforts to free the remaining vestiges of colonialism in Africa. Responding, SWAPO President Sam

Nujoma said that the organization always considered Nigeria part of the

Frontline States. He assured Nigeria, the Frontline States, and all progressive forces supporting the Namibian struggle that their support was not

wasted as SWAPO would soon seize the reigns of power in Namibia. [Text]

[Lagos International Service in English 0830 GMT 10 Feb 87 AB] /9274

34
MINISTRY TO STOP INFORMATION LEAKS—Nigerian Ministry of External Affairs has

taken a number of measures to stem unauthorized leaks of information at the

ministry. As a first step, only journalists with specific appointments would

be allowed entry to the headquarters of the ministry in Lagos. A press office

has a so been opened at the ministry's Directorate of Public Relations and

consular decent on Campbell street and newsmen have been advised to always

get their information there. A spokesman of the ministry has said that

officials will investigate every unauthorized leak and when those responsible

for leaking the information are caught, they will lose their jobs. He

affirmed that it was not the intention of the ministry to discourage

investigative journalism. He spoke of the ministry's wish to maintain the

leve! of cooperation between it and the media. In furtherance of this here

will be a daily briefing of newsmen by officials of the ministry in addition

to the weekly briefing on Fridays. [Text] [Lagos International Service in

English 0830 GMT 14 Feb 87] /9599

CSO: 3400/25

35
SOUTH AFRICA

AUTHORITIES PLANNING NEW MULTI-RACIAL CAPITAL

Paris THE INDIAN OCEAN NEWSLETTER in English 31 Jan 87 p 4

[Text] The South African authorities are planning a new "capital" for a federal government of 'white" South Africa and its "independent" black "homelands" at Midrand, between Johannesburg and Pretoria. On local development

plans it is named SECOSAF, for Secretariat of the Southern African Federation.

It is located on the Western side of the Johannesburg-Pretoria motorway and

will include institutions related to the "homelands" and the "federal government." The Pretoria-^sponsored Development Bank of Southern Africa has invited

tenders for a new headquarters on a spacious site next to the "secretariat."

IN addition business and residential quarters are planned to surround the institutional area, and the intention is to amend the Group Areas Act, which

segregates residential areas according to race, to allow these districts to

become "grey" areas accommodating all races,

A large industrial park, which has attracted a number of subsidiaries of multinational corporations, has been laid out on the eastern side of the motorway,

and these companies have brought pressure on the government to make available

land for housing developments which their black management staff could occupy

on a multiracial basis.

I,0,N."-No publicity has been given to this plan, though developers, architects

and builders are aware of it. Government silence is understandable because it

clearly indicates that reform measures extend only to the ending of "petty

apartheid" while retaining all the elements of the "grand apartheid" plan of

"independent self-ruled black homelands,"

The government believes that with this structure it can retain power within

"white" South Africa and exert authority over the "homelands" by playing the

major leadership role in the "federation" with the development bank behind it.

But while some "homeland" blacks may welcome the arrangement the urban blacks

who are members of the United Democratic Front, the Azanian People's Organisation and other anti-apartheid groups, will reject it out of hand.

/9274

CSO: 3400/14

36
SOUTH AFRICA

CP'S TREURNICHT SAYS AFRIKANERS NO MINORITY

MB062041 Johannesburg SAPA in English 2026 GMT 6 Feb 87

[Text] Cape Town Feb 5 SAPA~The Afrikaner nation refused to allow Mr P.W.

Botha to degrade it to a minority group, Dr Andries Treurnicht, leader of the

Conservative Party, said tonight. He told about 700 supporters in the Goodwood

civic hall that the rightwing unity movement has "started moving like a train

and those who want to travel along had better get on board."

The CP was prepared for the struggle and would never surrender. "We will

fight to restore our own white government in a land we claim as our own.

He wanted an answer to the one question on which the NP remained silent: "Who

in the end governs our people? Who will take the final decisions in our

legislative and executive bodies?"

There was only one tried and tested way, as with Western Europe's separate

white nations, there had to be separate states in SA. "For SA we ask the same^

treatment—separate own independent states for the separate population groups.

We will repeat the refrain—we claim our own country and our own government.

English speakers who know they must fight for their identity and know they

cannot live by money alone must know that conservative Afrikaners are their

allies."

He said the government was playing the same game with the Group Areas Act

as it had done with the Mixed Marriages and Immorality Acts. "I get the

clear impression that once an act is being investigated then it is quietly

on its way out," Dr Treurnicht said. "The government lets a situation develop,

such as Crossroads, and then says it can do nothing because it has been defeated by reality. It lets a situation develop and then establishes its

permanently."

He said mixed residential areas meant that children would eventually have to

be provided with school facilities and the residents with representation.

"It laid the foundation for mixed voters rolls, mixed local government and

mixed schools."

/6662

CSO: 3400/999

37
SOUTH AFRICA

DEPUTY INFORMATION MINISTER DISCUSSES DECLINING UNREST

MB040515 Johannesburg Television Service in English 1830 GMT 3 Feb 87

[Interview with Deputy Information Minister Stoffel van der Merwe and

Bureau for Information Research Director Kobus Neethling by Freek Robinson

on the "Network" program — live]

[Excerpt] [Robinson] Dr Neethling, you have put the case forward

justifying the state of emergency by indicating that the unrest incidents

have declined. But the question that many journalists still ask is:

How can they be sure that those facts are true? How can they believe you?

[Neethling] I would like to... [changes thought] we would like to

distinguish between two kinds of statistical reporting here. When you

come to day-to-day reporting on the unrest you must bear in mind that

is [word indistinct] kind of information, and very often errors can slip

in there, and it has and we have admitted that. But the long-term kind

of prediction that we make, the long-term analysis, evaluation, that I am

showing you today, that has never really been queried.

[Robinson] But with respect, perhaps, I should put this to Dr van der Merwe:

Many politicians to question the information of the department.

[Van der Merwe] As Dr Neethling said, no serious scientific challenge

has ever been made against the long-term statistics of the bureau.

In other words, until such time as a serious scientifically based challenge

comes up, then we have to assume that the figures of the bureau are

accurate. Political allegations against it — that is cheap, but a lot of

hard work, an extreme lot of hard work goes into the collection of these

statistics which not only rely on figures received from the security forces

but also from all sorts of other sources.

[Robinson] But then I want to come back to my question again: How can we

verify those facts? You say they haven't been challenged but when people

are not permitted to go into townships, to go and see for themselves,

how can they verify or question them?

[Van der Merwe] There are other organizations, not a part of the

government, who keep their own statistics and who have ways and means of

getting reports of unrest of...

38
[Robinson, interrupting] To whom are you referring now?

[Van der Merwe] I am referring, for instance, to the Black Sash, to the

Institute of Race Relations, but Dr Neethling would, perhaps, be better

able to identify these organizations. And even these organizations have

not seriously challenged the statistics of the Bureau.

[Robinson] If such organizations do obtain information from the townships,

then journalists can probably ask but why can't they be allowed to do that,

why the curbs on the media?

[Van der Merwe] Part of the whole process of revolutionary struggle, of

a revolutionary onslaught, is that of course the revolutionaries have

to show success. Now if one removes this ban, then it is easy for

organizations, all sorts of organizations, to make all sorts of claims

regarding successes which are not...[changes thought] you know to refute

it afterwards does not carry the same weight as the claims which they

make and thereby then get publicity and thereby.they create the impression

that the revolutionary effort which they are putting in is meeting with

a tremendous deal of success. Now if one reduces it to cold statistics

on a long-term basis such as what we are dealing with now, then there

can be very little dispute and it has a very low publicity value for such

organizations.

[Robinson] Can I just get clarity what, you actually mean now: Are you

saying in effect that if newspapers or journalists are allowed to report

freely on these incidents and verify facts for themselves then they,

the journalists, would help to further the revolution?

[Van der Merwe] I think that is putting my statement a little bit in the

extreme, but what is true there is at least a section of the press which

is favorable to the revolutionary organizations that operate in the country.

[Robinson] Who are they? Who are you referring to?

[Van der Merwe] I am referring to all sorts of publications. Let me rather

put it this way: I am not referring basically to the members of the press

union, for instance,, the responsible press, but there is a variety of

other magazines and publications that come out from time to time. You

can call them underground publications if you wish, and they are then free to

make all sorts of claims as regards successes and you must bear in

mind that for a revolutionary organization, publicity is a very very

important factor. If they do not get this sort of publicity then their

whole effort becomes so much harder. ;.

[Robinson] But at the same time, Doctor, it does happen that you do

release information on the ANC from time to time. One argument is that

if you do allow that kind of statement- by Mr Oliver Tambo, for instance,

on violence to be published freely then it would actually be counterproductive

for the ANC without you taking measures against the ANC.

39
[Van der Merwe] Indeed, we are making available information from time

to time about the ANC. This specific thing which you refer to has been,

for instance, a report that appeared in THE NEW YORK TIMES, Now you

will know that THE NEW YORK TIMES is not the friend of the South African

Government. In fact, the other day we closed.their bureau, but they

reported on what Mr. Tambo said and certainly they are not going to report

it a way favorable for South Africa. But what was quite interesting is that

this report was not carried at. all.by this type of medium. In fact,

even in the English-language press it received very scant attention.

And so we do release information and, in fact, last year on 12 December

the government also released a lot of documents, genuine policy documents

of the ANC — not propaganda, not government created propaganda about

the ANC, but the very policy documents of the ANC and again this was

carried very little by the press. So the information is there.

[Robinson] It seems to me, if I understand you correctly, that what

bothers you in fact is selective reporting from your point of view.

[Van der Merwe] Indeed, selective reporting and publishing propaganda

statements by the ANC, for instance, whereas the sort of thing we have

released are balanced reports that were compiled by overseas newspapers

and policy documents of the ANC itself. I don't think one can get more

authoritative and more objective than publishing those.

[Robinson] Dr van der Merwe, I would like to get back to that point but

I first want to put this question to Dr Neethling: Can one argue that

if the state of emergency had not been declared in June last year that

the incidence of unrest would have increased.

[Neethling] I can only go by the information we had up to June and all

indications are, all the information, all our analyses, show that the

trend was going upward, it was going up dramatically, and it was only

hypothetical but we made a prediction that without the state of

emergency about 160 plus people would have died in December compared to the

25 who actually died.

[Robinson] There is again the fact of verification. How can you be

certain of that kind of statement?

[Neethling] No you can't. You can never be certain of that kind of

statement. As I say, this is a prediction and based on all the material

and all the information that we had, and I think everyone else had.

[Robinson] Dr van der Merwe?

[Van der Merwe] I could come in on that. On the one hand you have the

trends, the scientific trends which were mathematically worked out as

Dr Neethling did, and on the other hand one knows from policy statements,

known policy statements, that have been released in South Africa that

the ANC was moving towards a crescendo especially at the end of the year.

In other words, it did not lack on their side on enthusiasm and

determination to escalate the violence, and yet the tendency has been

for decrease.

40
[Robinson] Could we just follow up on that: Would you say then on the basxs

of what you have told us tonight that the average man xn a black townshxp

today is a peace-loving man, is happy, there is nothxng wrong, is looking

foward to the future, there is no trouble in hxs heart.

[Van der Merwe] Well, not as explicitly as you put it. One thing that

I would want to say is that authoritative surveys that have ^en^ade

show that the vast majority of people - 80 percent plus of black people -

still believe in peaceful negotiation, still believe in P^f.^f '

But on the other hand there is a situation of violence, of intimidation of

disruption in the black ocmmunity which then makes the quality of life of

these people... [changes thought] degenerates the quality of lxfe of

these people to such an extent that the community cannot function normally,

especially those people that want to see peaceful negotiation, peaceful

reforms, cannot afford to be seen to participate in that process because

then the violence jumps in and they get necklaced, they get petrol bombed,

all sorts of things like that.

[Robinson] I think the question that I have tried to ask ~ perhaps you

could also answer that -- is: Have the causes of the unrest been addressed

by the state of emergency or not?

[Neethling] When I started, I said we were talking about physical unrest,

unrest one can see. That is how I would like to illustrate it wxth an

example: If you have a person picking up a stone and throwxng that stone,

thaTis visual, that is demonstrating, that is demonstrating^ kxnd

of feeling. Are we talking about why is he throwxng the stone? Part of

that is (fmysterious). Is it because he is motivated? Is it because he

is intimidated? Now he is not throwing that stone and we have to ask

ourselves why is he not throwing that stone. We are addressing that.

[Robinson] But, as I asked before...

[Neethling, interrupting] The visible is only part of it and you have

to address it. That is the crux of the matter and we are part of the

process. Since the beginning of last year, we have started investxgatxons

with private concerns, experts. As I said, we did a survey, a well

[word indistinct] system in determining exactly how peoplfe feel. If you

don't address that specific area, you won't get anywhere. That xs the

point.

[Robinson] Dr Van der Merwe?

[Van der Merwe] I would like to follow up on that: The whole Process

that we are trying to reach through the state of emergency has actually

three facets' An! the one is, first of all, to bringe temperature

down by reducing the visual unrest that Dr Neethling has just spoken about.

And then after you have done that, the society is still dxsrupted it

cannot function normally and in fact the factots that make xt posjxble

to intimidate and so forth are still there. So that is the second phase

41
which we have to face. We have to remove that and we have to give society

the chance to reorganize itself, for instance for local government to star

to function again properly, and only then can we actually start with positive

progress toward reform. That would be the third stage. So the first

stage, the reduction of violence, we have not achieved to a large extent,

but if one would just lift the state of emergency for instance at this

point then all the underlying factors, or most of them are still there and

the violence would just flare up as before.

[Robinson] Could I just come back to that question then: Are you not

going to address some of the concerns and the troubles in the hearts of

blacks until such a time as complete peace has been achieved?

[Van der Merwe] No. You see we have the three facets that I mentioned

and of course in the first stage the reduction of violence is.primary.

But on the other hand, you start immediately at the same time with bringing

peace to the society and reconstruction and development, so.that in the

second phase, once the violence has subsided, then we can concentrate

on the reconstruction part of it. And once the violence has subsided,

then we can concentrate on the reconstruction part of it. And once the

reconstruction has taken place, although you also implement reforms even

in that stage, when you reach the third stage, where society.has returned

to normal, then you actually concentrate on the reform process. So the

abating of violence, the reconstruction of society, and,the reform are

there in all three stages (?but in different mixtures).

[Robinson] Do you have a clear-cut idea of what are the underlying reasons

why blacks during the unrest period have picked up stones?

[Van der Merwe] Yes, and that is part of the research work which Dr Neethling

and his people do, in the sense that we find out what are the grievances

of people. Because there are certain dysfunctions, certain things that

are wrong in black societies.

[Robinson] Are you talking about socioeconomic things now or political?

[Van der Merwe] Basically, I think the primary cause is the socioeconomic

dysfunctions that exist, the things that are wrong, the fact that there are

not enough water taps for all the people, the fact that the streets are in

a miserable condition, and so forth. Those then leave the space for

politicization and because these other things are wrong people also get

politically dissatisfied and then the stage is set for intimidators and so

forth to use those things that are wrong with society in order.to foment

political violence.

[Robinson] When would, you then say, Mr van der Merwe, can we expect the

state of emergency to be lifted?

[Van der Merwe] I think it will be highly irresponsible of the government

to lift the state of emergency immediately because the deaths and the unrest

incidents have been reduced to a fairly low level, because it would flare

up again. So, therefore, we have to act on this level of reconstruction

42
of the society so that reform can actually come down to the street level,

to the grass-roots level, and people can actually experience the benefits

of reform and at that stage one can lift the emergency and you can expect

society then to continue in a state of normally, and not before the

time unfortunately. Now I cannot give you any time frames. The only

thing that I can say to you is that the government is continuously

reassessing the necessity of the state of emergency, of individual parts,

individual facets of the state of emergency to see when can it be lifted.

And the conclusion at this point is that there has been some reconstruction

first and we are working on that.

[Robinson] Thank you very much gentlemen unfortunately we don't have

any more time. If you could just add something shortly, I saw that you

wanted to...

[Neethling, interrupting] What I wanted to say is that analyzing the

psychological climate is an ongoing process and we are part of that

process because we believe as I said previously that is especially the

part we have to reach at.

[Robinson] Thank you very much gentlemen for taking part in our

program tonight. We haven't really touched on the facet of reconstruction.

I don't think we have really defined that. Perhaps we can do that later.

Thank you.

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SOUTH AFRICA

DEPUTY FINANCE MINISTER NOTES COST OF REFORMS

MB031718 Johannesburg SAPA in English 1543 GMT 3 Feb 87

[Text] House of Assembly, 3 Feb (SAPA)—Natal would be "bankrupted

overnight" if it had to meet the demands of the KwaNatal bill of rights

for equality in education and health care, the deputy minister for economic

affairs, Mr George Bartlett, said in the no confidence debate today.

He said there had been an attempt "behind the scenes" at the Indaba to

quash the publication of the report of the body's economic committee.

The people of Natal had a right to know the economic consequences of the

policies decided there.

What was required today was realism and not the wooly-mindedness of the PFP.

Mr Bartlett also said the public in South Africa in general and the right

to know the tremendous cost of the recent reforms initiated by the

government. The PFP and the media were all harping on the need for reform,

he said, but had they worked out the cost?

Political forces determined to destroy "our" Western way of life were

undermining the country's confidence to meet this cost, and the opposition,

in an act of political expediency, was supporting them. How often had

the PFP spokesman on finance, Mr Harry Schwarz, looked at the real

causes of inflation?

Among them were low productivity in the private sector.

"This is not because of the government. Could it be because of wrong

priorities set by the private sector?" In some cases it was due to

"just sheer bad management".

Trade unions had also contributed to inflation with demands for minimum

wages, a practice which even American unions said was bad; refusal to

allow incentive bonus schemes eVen though they led to increased

productivity; and excessive demands in the social field.

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SOUTH AFRICA

EDUCATION MINISTER DEFENDS NP COMMITMENT TO REFORM

MB051830 Johannesburg SAPA in English 1822 GMT 5 Feb 87

[Text] House of Assembly, Feb 5, SAPA—The National Party was irrevocably

committed to reform and the election was an essential part of the party s reform programme, the minister of national education, Mr F.W. de Klerk, said

today. Speaking during the no confidence debate, he said statements from

opposition speakers that reform was dead or that the NP had lost its zeal for

reform were "devoid of all truth."

"The NP has a calling to continue on its road of balanced and orderly reform.

We will be asking the voters on May 6 not only for a mandate on security measures but also a mandate to continue with reform. The solution lies in new

plans and thoughts on the basis of a realisation of the realities of South

Africa."

Mr De Klerk said the government realised the political dispensation of South

Africa had to undergo a marked change. The NP was continuously busy carrying

out reforms already agreed on, making plans for new reforms and holding discussions with other leaders on changes.

Referring to the tempo of reform, he said the NP would also like it to be

quicker but there were certain "stumbling blocks". These included foreign

interference, "faulty (gebrekkige) cooperation," and the reluctance of some

black leaders to come forward and negotiate.

The opposition was also a "stumbling block" because they "twisted the facts"

on NP policies and actions, he said. Opposition statements that the NP had

no plan for a new South Africa were "intellectually dishonest." The NP has

a fixed ground plan, with short and long-term goals. We have spelled out

our goals much more clearly than the opposition."

The NP wanted to retain certain elements of the existing system, including

protection of group identity, self-determination of groups, own political

and administrative structures, existing houses of parliament and the KwaZulu

homeland legislature.

45
In addition, his government wanted to create for blacks outside the homelands

political structures in which they could exercise self-determination in making decisions on matters that affected them alone. "We want to create fully

autonomous and even independent bodies for black metropolitan areas outside

the national states." ,

Finally, the government hoped to establish new structures for negotiation on

the basis of consensus on affairs that affected all race groups. "With the

National Statutory Council as a starting point, we can create joint national

councisl (staatsrade) in which the leaders of all ethnic groups can take

part," he said. "How can anyone allege that this is not a definite framework

for reform? The fact that we have no blueprint for reform is not evidence

that we have no policy." Details of the NP's reform plans would be worked

out by negotiation.

Mr De Klerk said the plans for the political future of South Africa proposed

by the PFP and the CP would not work. The PFP wanted to destroy minority

group protection and separate communities and this would lead to a "devastating

power struggle," he said. In turn, the CP's "refusal" to negotiate on any

aspect of the future would also lead to chaos. "The NP's plan forms a workable and equitable balance between the need for the protection of a group

rights and the sharing of power. There is no alternative," he said.

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SOUTH AFRICA

EDUCATION MINISTER ASKS PATIENCE WITH NP REFORMS

MB052054 Johannesburg SAPA in English 2051 GMT 5 Feb 87

TText] House of Assembly Feb 5 SAPA—The National Party was not interested

in reform if it would lead to the realisation of the "absurd dogma of a nonracial society, the minister of education and development aid, Dr Gerrit

Vilioen, said today. Sepaking during the no confidence debate, he said ^

those who accused the NP of being tardy on reform had never shared the party s

view of the nature of change and were in favour of a one-man-one-vote system

of government. They supported the "absurd dogma of a non-racial society,

which was a "totally false" ideal.

"If this is what is meant by an increase in the tempo of reform, then it is

totally unacceptable to the NP and we are not interested in^an increase in

tempo or in such reform at all." The tempo of reform demanded of the NP

was much faster than that which had been achieved by countries that had

meaningful democratic systems.

Critics of the pace of reform were unreasonable judges of the significant

changes that had already taken place, he said. "There is certainly not a

year in our history in which more meaningful reform measures were introduced

than last year," Examples included amendments to the pass laws and black

citizenship rights.

Critics had to realise that reform was one of the most difficult tasks facing

a government and could not simply be "steamrollered" through.in an autocratic

fasion. This could create insecurity. Reform depended on available finances,

the maintenance of law and order, the building up of mutual trust and on timeconsuming discussions.

He appealed to critics of the government's reform programme not to undermine

it by setting unrealistic demands.

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47
SOUTH AFRICA

'NEW NATS' MAY BREAK AWAY FROM NP AFTER ELECTION

MB010944 Johannesburg THE SUNDAY STAR in English 1 Feb 87 p 1

[Text] A witch-hunt has begun in the National Party to root out

enlightened "New Nat" dissidents before the May 6 General Election — and

Nat politicians even suspect their telephones may be bugged.

Nat offices in Parliament and the President's Council were riddled with fear

this week when parliament was opened.

And among the men who have evoked deep suspicion in Nat ranks of a New Nat

defection plot are MP Mr Wynand Malan who has already quit the party;

MP for Innesdal Mr Albert Nothnagel who has called for dramatic change

in South Africa; and Dr Denis Worrall, the country's ambassador to London

who resigned this week.

One London columnist reported that Dr Worrall has told friends more than

once that one of South Africa's problems is that its leader has lost both

his vision of reform and his taste for pressing it further and that a new

man is needed at the helm.

There is great anxiety among the Nat leadership that the "New Nats" are

biding their time until after the election before they make their move,

according to a wide range of parliamentary sources.

This would emulate the tactics of the verkrampte [ultraconservative]

Nats under Dr Andries Treurnicht, who waited until after the 1981 General

Election before they broke away to form the Conservative Party in 1982.

This tactic ensures that the breakaway group is well-represented in

Parliament before the split rather than resigning before they can

be elected under the Nat banner.

The cracks on the Left flank of the NP are a direct result of the Government's

swing to the Right over the past year or two with its State of Emergency,

stalling of reform and failure to negotiate with any viable black leaders.

The knives are out as the Nat hierarchy scrutinize their MPS and other public

representatives for any who might be sympathetic to Mr Wynand Malan, the MP

for Randburg, who resigned from the NP and is standing as an independent.

Already the NAT leadership has pounced on other dissidents, even Dr Piet

Koornhof, who was dumped as chairman of the President's Council because

of his opposition to the Group Areas Act.

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SOUTH AFRICA

MP NOTHNAGEL REAFFIRMS NP POLICY

MB020626 Johannesburg Domestic Service in English 0500 GMT 2 Feb 87

[Text] The dispute between the NP in the Transvaal and the MP for Innesdal,

Mr Albert Nothnagel, has ended with Mr Nothnagel reaffirming his adherence

to NP policy. The leader of the NP in the Transvaal, Mr F.W. de Klerk,

with Mr Nothnagel's permission, has released a letter which Mr Nothnagel

wrote to the party leadership. The letter comes in the wake of certain

assertions Mr Nothnagel had made in an article in the magazine INSIDE SOUTH

AFRICA, regarding talks with the ANC and the constitutional future of the

blacks. These assertions were viewed in political circles as being

counter to NP policy.

Mr Nothnagel met Mr de Klerk, Mr Pik Botha, Mr Gerrit Viljoen, and General

Magnus Malan last week to discuss the assertions. Mr Northnagel said in

the letter that he understood the dissatisfaction of the party leadership

with certain assertions in the article. He said his aim had not been to

undermine the party leadership and ttot to oppose NP policy. Mr Nothnagel

said that with hindsight it was clear to him that certain of the assertions

amounted to sharp criticism of government policy, if they were left

unqualified. As a result, he had made certain corrections.

He accepted that the release of the leader of the ANC, Nelson Mandela,

and other so-called political prisoners could not be considered before

they foreswore violence. He also accepted the government's constitutional

guidelines with regard to black participation in government bodies as laid

down during the NP's federal congress last year. Mr Nothnagel said he

fully supported the NP leaders and the policy and principles of the party.

He said he remained convinced that the NP was the only party through which

a solution to the country's problems could be attained.

Our political staff reports that Mr Nothnagel's letter to the NP leadership

can be seen as an unconditional apology to the party for his assertions

in the article.

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49
SOUTH AFRICA

POLICE DENY CCAWUSA INTIMIDATION CLAIMS

MB051054 Johannesburg SAPA in English 1047 GMT 5 Feb 87

[Text] Pretoria, 5 Feb—Police today responded to union allegations that

security forces were cooperating with management to harass strikers

at OK Bazaars, saying police did not intimidate people or organizations.

"We would like to stress that the SA Police do not harass and intimidate

persons or organizations," the police public relations division, Pretoria,

said.

"If any police action is taken, it is because there is good reason to

do so, not because of anyone's affiliation to an organization or union.

"If, however, anyone is of the opinion that the SA police have acted

incorrectly at any time, an affidavit can be submitted:! for investigation."

The Commercial Catering and Allied Workers Union [CCAWUSA] alleged

there was "widespread intimidation of strikers by police and the SADR."

The union said security police visited CCAWUSA offices in Cape Town,

Port Elizabeth, Port Shepstone, Durban, Empangeni, Pietermaritzburg,

Johannesburg, Pretoria, Pietersburg and Vareeniging, since the strike

began 50 days ago.

Eleven thousand CCAWUSA members at 137 OK outlets are on strike, the union

said.

CCAWUSA alleged police last week burst into a.general meeting of OK workers

in Port Elizabeth and told them they were not allowed to picket.

On Saturday, the offices of CCAWUSA in Johannesburg were raided.

/12624

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50
SOUTH AFRICA

HEUNIS EXAMINES STANCE ON KWANATAL INDABA

MB052031 Johannesburg Television Service in English 1830 GMT 5 Feb 87

[Interview with Chris Heunis, minister of constitutional development and

planning, by Andre le Roux, in Cape Town, on the "Network" program

date not given — recorded]

[Text] [Le Roux] Mr Heunis, you are in favor of negotiations? — A short

yes will suffice.

[Heunis] I am not only in favor, I am committed to it.

[Le Roux] Mr Heunis, the Indaba was an exercise in negotiation. Natalians

got together, they decided they had a problem, they decided that they would

negotiate a solution to it. They did that, and they came up wxth a

document as a product of negotiation. Yet, you have come up with

something to link a qualified rejection of those proposals. Why?

[Heunis] Well, the answer is two-fold. First, your statement that I

have come with a rejection is not correct or true.

[Le Roux] Qualified.

[Heunis] Second, let me say this, the other statement is also incorrect

because it implies that all Natalians had come together, and that what

had been proposed at the Indaba in fact represented the opinion of all

Natalians. That is obviously not correct either. I have taken a stand on the

process of negotiations. I have also taken a stand on behalf of the

government on the concept of Indaba. I approve of the concept and the

process. But you must understand that the initiative that had been taken to

establish the Indaba had come from two authorities — the KwaZulu

government and the Natal Provincial Council and executive. The proposals

therefore of the Indaba had to be submitted to those authorities for

their own consideration and for their own positioning on the proposals.

The chief minister of KwaZulu had in fact expressed a wish that the

proposals of the Indaba should not be drawn into white politics before

they had an opportunity of assessing these proposals. Chief Minister

Buthelezi had informed me that he had formed a subcommittee of Inkatha

51
to make such an assessment, so that the proposals with their assessment

could be considered by the Legislative Council of KwaZulu and also by the

general meeting of Natal-Inkatha, which has not taken place yet. The

administrator of Natal had not taken a stand on these proposals. The

chief minister requested further that even the leaders of Inkatha should

not in fact discuss these proposals or take a stand on them before

finalizing their assessment. He had also said that they would want the

opportunity to discuss the proposals and implications with leaders of

other political groupings, like coloreds and Indians.

And therefore I suggest that it would be premature for the government

to have taken a stand before these assessments had been made. What had

in fact happened is, other political parties had abused both the concept

of the Indaba and also the proposals for their own opportunistic political

ends. If you just bear in mind that the PFP and the Natal New Republic

Party had in fact formed an alliance for the election on the basis of the

Indaba and the proposals arrived at the Indaba, you will understand why

I take the strongest exception that something that had great promise

had been abused to this extent.

[Le Roux] Sir, we will come back to all the points you made just now.

But the first one is, are you claiming that it was not representative of

Natal, the composition of it?

[Heunis] Well, I have said that an assessment would have to be made to

whether it does in fact represent all the peoples of Natal. Now, let me

give you one example. The NP obtained more than 32 percent,, if my memory

serves me correctly, of the vote in the last election. They have not

subscribed to those proposals. The Municipal Association of Natal had

changed their status at the Indaba because they take the position that they

had not canvassed the opinion of their constituent members. The Agricultural

Union of Natal had also changed their status in the process of the Indaba,

because again they had no mechanism to test the opinion of the people

they represent. And therefore all I had said in considering these proposals,

one would have to make an assessment also as to the representativeness of

the Indaba itself.

[Le Roux] Mr Heunis, your claim or your accusation that parties — and I

think you are referring to the PFP and the NRP, if I am not mistaken...

[Heunis, interrupting] I am, yes.

[Le Roux]...have misrepresented the Indaba and misused it. Can you enlarge

on that?

[Heunis] Yes. It is obvious that the PFP took the lead. In fact I believe

they hijacked the Indaba, to get premature decision taken at the Indaba,

not allowing the representatives there to go on with the discussions to

form a larger basis for consensus. Therefore you will recall that the

decision that had been taken last year, the first one, had been signed by

52
the representatives in their personal capacities. Second, you will recall

that, as regards the question of the Indaba's proposals, they had not been

canvassed at that stage by the people that gave them the mandate. Therefore,

I suggest it was premature and irresponsible to use the Indaba and its

proposals as an alliance subject for white elections, notwithstanding the

fact that other people had requested them to do otherwise.

[Le Roux] Mr Heunis, politics, you must give it to me, that it is the

game of hijacking and being opportunistic, but the NP they were participants,

but they reserved participation as observers. Wasn't that already a point,

a political point as to what your reaction was going to be?

[Heunis] No, the answer to that is no, because one thing the Indaba proved,

I believe, is that the final act in any proposals are the government and

the political parties no matter what people negotiate in the final analysis

it would have to be assessed by Government and other political parties

and groupings. The Natal NP, in fact, did not participate for any ulterior

motive. The fact is they are part of the government party and the government

will eventually have to express an opinion on those proposals. The NP has

not expressed its deep concern that the Indaba was in fact forced to take

premature decisions.

[Le Roux] He was quick off the mark to reject that, Sir.

[Heunis] But naturally he had to do it. Once other political parties

have taken their stand he had no option, and I fully subscribe to his

sentiments.

[Le Roux] Wasn't that electioneering to a certain point?

[Heunis] No, I don't think so, let us assess what you say now. I was

forced to react. I explained my position to the chief minister personally.

I explained to him that I was prepared to withhold judgment on his proposals

until I have had the opportunity to study his government's view and the

view of the Natal executive. I was not given that opportunity.

In contrast to his request, an alliance was formed, and this has become

a major issue in the Natal election, quite obviously under these circumstances

the government had to take a stand, and the government did not reject

the concept of the Indaba. Government had, in fact, applauded that concept.

Not only did it applaud it, the first proposals emanating from agreement

between the KwaZulu government and Natal executive to establish a joint

executive authority for Natal, had been accepted by government. A bill

was passed by parliament. A request by those authorities to establish that

authority is now being processed for approval by the government J.tself.

So there is no doubt whatsoever that the government applauds the concepts

of negotiation, but I said, and I would like to repeat that, having been

forced into a position to prematurely take a stand on the proposals, the

proposals would have to be assessed against certain criteria.

53
[Le Roux] Why don't you let the people of Natal assess It by means of

the referendum they desire?

[Heunis] I believe that is not sufficient for the people of Natal to

assess. Let me explain that.

[Le Roux] There is a document on the table, sir.

[Heunis] That is a document that .comes but one will have to assess how

representative that is. One has to assess as to whether the people signed

the mandate from the people on whose behalf they pretend to have signed.

One would have to assess as to whether...

[Le Roux, interrupting] Are you suggesting fraud?

[Heunis] No, I am not suggesting fraud. I am suggesting that there was

at that stage when it was signed not all the evidence that the people,

in fact, had the mandate to sigh the agreement. I have given you

examples. I have given you the example of the Municipal Association that

had changed their status because they did not have the mechanism to test.

Second, I have also given the example of the agricultural Union of Natal.

There again because they didn't have the mechanism to check, in fact,

the opinion of their mandate-givers.

What I am suggesting, one of the defects was in fact the problem with the

mechanisms to assess the mandate that the representatives had. And I am

not, by saying this, saying they had no one. I say it must be assessed.

But can I take it further? Any reform constitution has major financial

implications. Quite obviously if these proposals are. to be accepted the

financial implications would have to be assessed. It had not been done.

What had happened is that the economic committee of the Indaba have, in fact,

stated that they have not assessed the implications, but they have further

stated that Natal has not got the financial capabilities or capacities

to implement these proposals, and therefore if they are to be implemented

it would require major subsidization from central government, and even this

fact itself brings into question the autonomy for the establishment of

those authorities. What had not been assessed either or canvassed or

addressed is what is the position of the established authority in Natal in

terms of the proposals.

We have in the central government, and there again it cannot be discussed

or addressed in isolation, it has implications also for the other races

in the country, and therefore I had said that the proposals must be

considered and discussed by government in the light of the position of

KwaZulu government and the Natal executive and the other issues that

have not been canvassed, and that does not imply the rejection of the

concept of the Indaba; neither does it mean that we are not prepared to

negotiate.

54
[Le Roux] Sir, are you saying that political abuse of the Indaba has

soured the proposals to the extent that it is in jeopardy?

[Heunis] Quite obviously it jeopardized the concept of the Indaba and

the proposals, but that does not preclude the government or myself or

anybody else to take it further, and my own position on this is I had

said that after the establishment of the joint executive authority between

the two regions I would take up the further constitutional development

of that region as I would with the other regions with the authorities

and with political opinion in parliament.

[Le Roux] Would you negotiate on the basis of the Idaba document?

[Heunis] On the basis on the document, but I would have to negotiate

against the background of the criteria on what the government's assessment

of possibilities are and also the canvassing of the issues that had been

not addressed fully or at all.

[Le Roux] Mr Heunis, the Buthelezi commission report is gathering dust

on some shelf. As far as you are concerned where are these proposals?

[Heunis] I have answered that question, but I would like to restate

my position. I say it is in fact a terrible thing that the Indaba had

not been given the chance to go its full way. I say — and I say that

in all sincerity — by abusing the situation for political reasons much

damage had been done to a promising concept, but having said this I must

explain in all fairness that you are not in a position to finally assess

the proposals, unless the main actors had given you their views.

[Le Roux] Lastly and finally, does the Indaba and its document still

maintain a certain status in your mind?

[Heunis] Of course it does, but the status is going to be determined

firstly by the stand that has been taken by the other authorities on it,

and secondly it is going to be determined as to whether the criteria

that we have set can, in fact, be measured in terms of those proposals.

We must understand it is not simple enough to say the Indaba proposals

contain minority protection. That is important, but there is another issue.

Does it also represent equal participation? Does it give the participants

the right and the power to in fact not only influence but take a firm

stand on any proposals in those authorities, [as heard] and I suggest

that a careful study of the proposals would clearly indicate that it does

not represent equal representation of the parties.

[Le Roux] Mr Heunis, goodnight.

/12624

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55
SOUTH AFRICA

HEUNIS DISMISSES REPORT OF DIFFERENCES WITH WORRALL

MB301424 Johannesburg SAPA in English 1348 GMT 30 Jan 87

[Text] Cape Town, 30 Jan (SAPA)-^-South Africa's.ambassador to London,

Dr Denis Worrall, discussed standing for the National Party in the

forthcoming general election with the minister of constitutional development

and planning, Mr Chris Heunis, earlier this month.

Mr Heunis, who is also the Cape leader of the National Party, said in a

statement today that it was "grossly unfair" of Dr Denis Worrall to

speculate about him standing for the PFP or as an independent. "The facts

are that I had a personal interview with Dr Worrall on the 19th of this

month. The purpose of this meeting was to discuss with him the possibility

of allocating to him a constituency in the Cape in which he could represent

the National Party in the election."

Mr Heunis said it had been falsely alleged in a news report that there

had been a clash between himself and Dr Worrall concerning the government's

reform initiatives. "This was supposed to have taken place when the

ambassador was still chairman of the previous President's Council's

constitutional committee. This allegation is devoide of all truth and

at no stage did the reporter attempt to verify the correctness of the

allegation with me or my office." Mr Heunis said that given all the

facts, the report had done Dr Worrall a grave injustice and portrayed

him as a "carpetbagger seeking political advancement in a political

environment with which he is totally unconnected."

Dr Worrall's resignation as South Africa's ambassador to the Court of

St James was announced by the minister of foreign affairs, Mr Pik Botha,

in Cape Town today.

/12624

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56
SOUTH AFRICA

PROVINCES RECEIVE PARTIAL OPERATING FUNDS

MB091410 Johannesburg SAPA in English 1334 GMT 9 Feb 87

[Text] Parliament February 9 SAPA—The R29.10'billion part appropriation bill

was historic in that it was the first time funds for the four provinces had

to be voted by means of an act of parliament, the minister of finance,

Mr Barend du Plessis, said today.

Moving the second reading of the bill, he said that from April 1 this year

the provinces would be subject to the provisions of the Treasury and Audit

Act. This meant that funds would have to be voted for each of the four to

put them in a position to carry on with their activities.

Mr Du Plessis said that the main budget was usually introduced in the middle

of July each year. As a result of the coming general election for the House

of Assembly, provision had to be made that the budget act for the 1987/88 book

year be promulgated only at the end of 1987.

"Departments must, however, be put in a position in the meanwhile to meet their

financial commitments on services that have already been approved over the

period from the beginning of the new book year on April 1 to the date of

promulgation of the budget act. "This spending must be usual, therefore,

now be authorised by a part appropriation.

The amount of $29.10 billion would, according to estimates, be enough to cover

expenditure until as late as the end of November. It was made up of R17.88

billion for departments for general affairs,.R6.12 billion for own affairs

administrations, R2.10 billion for the Transvaal provincial administration,

R0.80 billion for Natal, R0.60 billion for the OFS [Orange Free State] and

R1.60 billion for the Cape.

Proposed legislation on the formulas by which the own affairs administrations

would in future be funded was already with the state law advisers, but would

only be piloted through parliament at a later stage. Parliament would, therefore, have to vote funds for the administrations in terms of the constitution.

As far as central government, including the own affairs administrations, was

concerned, the amount of R24 billion which was now being put before parliament

57
for approval was R13.9 billion Appropriation Act of 1986. This year's part

appropriation, however, covered a much longer period than last year's, and

it was obvious that on the basis of these figures no comparisons could be

made. Nor could any deductions be made in terms of the possible size of the

various amounts of the main budget.

/6662

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58
SOUTH AFRICA

BRIEFS

SADF REACTION ON TROOP BUILDUP ACCUSATION—The SADF says Angolan accusations

of a South African troop buildup in southern Angola are a typical Angolan

reaction to the fact Angola had been caught redhanded supporting SWAPO terrorists. Angola made the accusations in a letter to the president of the United

Nations Security Council. An SADF spokesman in Pretoria said events in the

vicinity of Cunene River last weekend, where Angolan forces actively involved

themselves in the followup operation against SWAPO terrorists, was further

evidence of support for SWAPO. The spokesman said South Africa had no quarrel

with Angola and actively wished to live in peace with that country. The spokesman said that in spite of repeated and numerous warnings not to support SWAPO

terrorists, Angola persisted in allowing and inactively helping SWAPO to

launch attacks on the people of South-west Africa/Namibia from Angolan territory. The defense force reserves the right, he said, to seek out and destroy

these terrorists wherever they may be. [Text] [Johannesburg International

Service in English 0630 GMT 30 Jan 87 MB] /6662

PRESIDENT'S COUNCIL APPOINTEES NAMED—The state president, Mr P.W. Botha,

has announced two new appointements to the President's Council. They are

Mr (Eben Kaler) of the Transvaal and Mrs (Magdalene Kemp) of the Cape; who

will replace Dr Piet Koornhof, who is the new South African ambassador to

United States and Mr (Jan Pekar) , who is retiring. The new appointments take

effect on 1 March. [Text] [Johannesburg Domestic Service in English 0500

GMT 6 Feb 87 MB] /6662

PIK CRITICAL OF U.S. SANCTIONS REPORT—Pik Botha has lashed out at the United

States for making renewed efforts to help solve the South African crisis. The

foreign minister has responded to a report tabled in Washington by President's

Reagan's advisors of U.S. policy toward South Africa. Mr Botha claims the

information contained in the document is either wrong, misinterpreted, or

distorted. The advisory committee has urged Washington and its allies to

place further restrictions on trade with South Africa if apartheid isn't

dismantled and political prisoners released. There has been speculation that

one of the measures which could be adopted would be a ban on the imports of

South African gold. [Text] [Umtata Capital Radio in English 1300 GMT

11 Feb 87 MB] /6662

59
MINISTERIAL REPRESENTATIVES BILL DEBATED—A.bill which makes provision for

the appointment of ministerial representatives outside the parliamentary system has been debated in the House of Assembly. The minister of constitutional development and planning, Mr Chris Heunis, said during his second reading

speech at a joint session of parliament, that the constitution amendment bill

made provision for a minister to entrust a representative with certain of

his powers, activities, or duties—but the responsibility would still rest

with the minister. The appointments would be made by the state president

in terms of the powers granted to him under the constitution. The PFP spokesman on constitutional affairs, Mr Nick Olivier, rejected the constitution

amendment bill saying it would give the state president wide discretionary

powers and could lead a political favoritism. He said that in the current

circumstances, the appointment of an undetermined number of representatives

could not be allowed. The CP expressed the strongest possible objection to

the bill by proposing an amendment that it be read this day 6 months, [sentence as heard] [Excerpts] [Johannesburg Domestic Service in English 0500

GMT 12 Feb 87 MB] /6662

MINISTER: DEMAND FOR ANC BOOKLET—House of Assembly February 10 SAPA—The

Bureau for Information had printed an extra 100,000 copies of the booklet

"Talking With the ANC" to meet the "overwhelming" local and overseas demand

for the publication, the deputy minister of information, Dr Stoffel van der

Merwe, said today. Replying to a question from Mr Peter Soal (PFP Johannesburg North) he said that in the second edition one photograph was replaced

and "some linguistic and technical improvements were effected." [Text]

[Johannesburg SAPA in English 1804 GMT 10 Feb 87 MB] /6662

OPPOSITION LEADER'S SON IN NP ELECTION—The son of former opposition leader,

Sir de Villiers Graaff, is to stand for the NP in the election. David Graaff

will stand against the PFP in the Wynberg constituency. Patrick Cull reports:

[Cull] The announcement of Mr Graaff's candidacy in the Wynberg constituency,

currently held by the PFP, has come as a shock to opposition politicians.

His father, Sir de Villiers Graaff, was a member of the opposition for 29

years, 20 of them as leader; and it was generally assumed that if his son

entered politics, it would be on the side of the opposition. The Cape leader

of the NP, Mr Chris Heunis, also announced that a former rector of the University of Port Elizabeth, Professor S.J. Schoeman, would fight the Port

Elizabeth seat of Walmer, which is also held by the PFP. An announcement on

two other seats—Port Elizabeth Central and Groote Schuur, the only seats

in the Cape for which the NP has not nominated candidates—will be made

shortly, he said. [Text] [Umtata Capital Radio in English 0700 GMT 8 Feb 87

MB] /6662

NEW VENDA CHIEF JUSTICE—The Department of Justice has announced in Cape

Town that Justice D.J.H. le Roux has been seconded by the state president

to Venda, where he will act as chief justice. Justice Le Roux comes

from the Transvaal division of the Supreme Court. [Text] [Johannesburg ..

Domestic Service in Afrikaans 1400 GMT 2 Feb 87 MB] /12624

60
JOINT COMMITTEE PARLIAMENTARY REVISIONS—The government is to appoint a

joint committee of all three houses of parliament to investigate and

report on the amendment to the constitution of the Republic of South Africa.

This was announced by the minister of constitutional development and

planning, Mr Chris Heunis. He said the investigation would include the

allocation, norms of allocation, and the number of members of each house

in the respective provinces. He said attention would also be paid to the

division of each province into constituencies, and permission would

be granted to the select committee to table legislation in this regard.

[Text] [Johannesburg Domestic Service in English 1400 GMT 30 Jan 87 MB]

/12624

INCREASED ALLOWANCE FOR PRETORIA'S MAYORr-Pretoria's mayor and deputy mayor

will get increased allowances totalling R112,500 a year from the beginning of

^Jthe next mayoral year. The mayor will receive an allowance for general purposelToT R75,000 and a personal allowance of R25.000. The deputy mayor will

receive a personal allowance of R12.500, The council was told that this was

36 percent more than the allowances of R82.688 paid to the present mayor and

deputy mayor during their term of office. Although Herstigte Nasionale Party

councillor Mr Joseph Chiole described^the^increases as "unjustifiable" in times

when many were in great need, a former mauor, Dr Pieter Kruger, said mayors

sometimes had to pay costs out of their own pockets. The council was also

told there were indications that the mayor's and deputy mayor's personal allowances, or a large part of them, were taxable from March 1, 1986. [Text]

[Johannesburg THE STAR in English 29 Jan 87 p 2M] /9274

DU PLESSIS ON ECONOMIC DIFFICULTIES~The minister of finance,xMr Barend du

Plessis, has cautioned the opposition parties not to adopt a simplistic

approach to inflation. Speaking during the no-confidence debate, Mr Du

Plessis said the opposition pretended that inflation could be wiped out

easily. He expected that the opposition parties will exploit inflation

in the election. Mr Du Plessis noted that his department was conducting ^

a three-pronged investigation into inflation in consultation with the be£%

available advisors. Mr Du Plessis said it would be dishonest to say

that everything was well with the South African economy. He pointed out,

however, the international political and economic trends had had an

unavoidable negative effect on the economic growth during the past 2 decades,

He said South Africa was on the eve of a new dispensation in its income

and expenditure policy. [Text] [Johannesburg Domestic Service in English

1600 GMT 2 Feb 87 MB] /12624

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61
SOUTH AFRICA

TUTU REITERATES CONDITIONS FOR NEGOTIATED CHANGE

MB131822 Johannesburg SAPA in English 1800 GMT 13 Feb 87

[Text] Cape Town Feb 13 SAPA—South Africa's newest constitution invokes

the name of God to sanctify a vicious, evil and totally immoral and utterly

un-Christian system, Cape Town's Anglican archbishop said tonight. Delivering an address at the graduation ceremony of the University of the Western

Cape, Archbishop Tutu asked how anyone could seriously claim that South

Africa was democratic, "even remotely democratic, when its newest constitution—

1984 model you know—16 years from the end of the 20th century, oanexclude

73 per cent of the population just like that. Blacks are mentioned in only

one sentence."

Archbishop Tutu said that if Jesus came to South Africa today, he would get

into trouble with the authorities because of his solidarity with the poor,

the oppressed, the hungry and he would almost certainly be detained. "I am

sure that many whites would say he deserved it, there is no smoke without fire."

He said detention without trial was a subverting of justice, counter to the

aims of the rule of law.. "It is to punish someone and to punish him severely

without having the inconvenience of.providng his guilt in an open court. It

is a very handy device greatly beloved of totalitarian repressive governments."

"We are told there are certain people who are called censors. They tell us

what books we can read, what films we may or may not see, because, so it is

argued, certain of the books and films they prohibit would subvert our morals

and [word indistinct] us to hate apartheid. If that is true after all these

awful books and films can you imagine what the state of the censors morals

must be? Hardly anybody questions the right of these people to judge what

can be harmful to me."

Referrring to the Chris Ball/P.W. Botha affair, the archbishop asked why

radicals should suddenly have credibility. (In parliament, the state president said that in radical circles it was said banker Mr Ball paid for adverts

earlier this year calling for the unbanning of the ANC). "No one seems to

have asked since the state president has said all those things about so-called

radicals, that they are really untrustworthy, why is it possible for him to

62
believe them when they tell him about who has paid for a certain advertisement?" He added: "Why must they suddenly be credible in this matter when he

claimed that they are not on other grounds? In any case why should it matter

what a client does with his money? In a few years time those people who are

wanting to change banks will say I wish that I had paid for that and other

advertisements. It will be a point of honour. Why don't whites say to their

government: Allow us to judge for ourselves who the ANC are—why do you give

only selective quotations?"

He added: "My friends, we want a negotiated settlement in our land. We are

going to be free whatever anyone tells you. There is no way in which a small

minority can go on ruling this country alone. They know that. They ought to

be preparing people for that inevitable fact, and not dress down senior cabinet

ministers who speak about the obvious, that we shall have a black president in

this country. We want a free, nonracial, democratic and just South Africa

where all of us, black and white, will live amicably together."

The archbishop said "absolute minimum preconditions" for creating a climate

favourable to negotiation were:

"The state of emergency must be lifted. It solves nothing. Under its cover

all kinds of horrible things happen. White South Africans seem to like being

kept in a cocoon of ignorance through severe press censorship. What the eyes

don't see, the heart does not grieve over. They will be awakened rudely, I'm

afraid, when their pathetic whimper will be we didn't know, like the Germans

when the Nazi atrocities were revealed. White South Africans won't have

that as an excuse. Many of us have tried to open their eyes, tried to touch

their hearts, and we have been and are vilified for our pains. Remove the

troops from our townships...release detainees...unban political organisations..

for goodness sake, let the people decide—they are not quite stupid you know.

And then sit down and talk with those whom the people regard as their leaders—

as their representatives—not those whom the government finds congenial for

they almost always have no constituency to deliver.

"If that happens then we have a glorious future ahead of us. If it does not

happen then Armageddon will be upon us, something that can be averted, that

need not happen. But of one thing I am certain—freedom is coming, Archbishop Tutu said.

/6662

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63
SOUTH AFRICA

BUTHELEZI VIEWS ELECTION SIGNIFICANCE

MB151850 Johannesburg THE SUNDAY STAR in English 15 Feb 87 pp 1, 2

["Mandate To Prolong Pain" by Chief Mangosuthu Buthelezi—in the "Review"

section]

[Text] Some black South African opinion has summed up the coming whitesonly general election as "irrelevant." I do not regard the fact that we have

had a minority racist government in power for nearly 40 years as irrelevant.

They will be returned to govern yet again, and that is not irrelevant because

we will all face the consequences of their present inability to face reality

collectively. That reality is that people are dying because of the way they

are running the country. .

This election may achieve a reshuffle of white political forces to some

extent, but it will not alter the shape of white politics, and at the end

of it all President Botha will be exactly where he was before he called the

election—and he will only have bought for himself a few more years of his

(and our) political agony.

When I look at this election I ask myself how many white South Africans kid

themselves that we are living in a democracy. I ask myself how long it will

be before the majority of those who will bother to vote (a right they take

for granted, and yet is denied to so many) will accept that power-sharing

is the only hope for us all? I ask myself, whether May 6 will be a ballot

resulting in more bloodshed, more despair and more bungling.

While I have no doubt that the majority of black South Africans are committed

to peaceful change and negotiation, nobody can prophesy the extent to which

their patience and forbearance will (given the present foment) last.

The situation in our townships.is deteriorating rapidly. The true meaning of

fear, intimidation, terror, poverty and hunger is a common experience. Already there are blacks who have been so brutalised by apartheid that they have

already opted for violence and are prepared to die, now, for the creation of

a new order.

64
Whether there will be a white swing to the so-called Right or a white swing

to the so-called Left in this election will keep the political analysts and

commentators busy for a while but will serve only to, yet again, emphasise

that National Party rule has polarised and deeply divided not only black but

white South Africa.

This election follows the establishment of the tricameral Parliament—yet

another political stab in black South Africa's back. And now, contrary to

claims by President Botha that "apartheid is outdated", there has not been the

slightest indication that the National Party has any intention whatsoever

of ditching this hideous political ideology.

We all know what the President's reaction was to his Foreign Minister daring

to comment that one day South Africa could well have a black President.

It will only be when blacks participate with their fellow South Africans in

the same constituencies that apartheid will truly be outdated.

Nearly 40 years of government by this group has led us to a situation where

all South Africans live under a State of Emergency; we are being increasingly

isolated by the Western world; sanctions are a reality; inflation is rampant;

businesses are collapsing; millions are unemployed; and national unity is

only a dream.

Many of our best and our brightest have given up hope of ever having a secure

future in South Africa and are emigrating in droves. While the ignorant

sneer "good riddance", this is, of course, a national tragedy.

In writing this article on how I see the election, I have yet again looked

back into history and the fact that South Africa has, since the Act of Union

in 1909, seen more than 70 years of white endeavour in running this country.

Successive governments have participated in one debacle after the other, and

now South Africa is seen by decent men and women all over the world as a

pariah state.

And what this means is that all the accumulated wisdom of white South Africa,

decade after decade, has been inadequate to author a safe, secure and prosperous future for our country and its people.

What faith, then, should blacks (and whites) have in whites-only decisionmaking?

I do not believe that President Botha has any intention of going to the

electorate with a bold plan to establish a true democracy here. He is going

into the election to buy additional time, hoping somehow that the extra time

will make it possible for him to secure political dreams.

And Mr Botha's dreams are the wrong political dreams. There can be no racist

political dreams in South Africa. There can be no sectarian political dreams

in South Africa.

65
President Botha may have some hope of achieving real things if he enters the

election as a South African first and an Afrikaner second. And this is not

likely to happen because he can't distinguish between the two.

His policies, his government, and his approach to reform are designed first

and primarily to secure Afrikaner dreams, which are not South African dreams

because this is a multiracial country.

The statements I make about white.decision-making being quite incapable of

solving our country's problems have nothing to do with racism. It is not

the whiteness which is the relevant factor. When I write about white decisionmaking processes being incapable of authoring a decent future, I condemn not whites but the lack of democracy.

Black decision-making without.democracy will prove just as ineffective as

white decision-making has proved to be.

It is democracy we need, and the gravest stumbling block we face in South

Africa is white persistence in attempting to author democracy as though whites

can rediscover it in Africa, and as though democracy discovered in the Western

industrial civilised world is inapplicable to South Africa.

White South Africans applaud democracy in the West and they deplore communism

and socialism—but they refuse to emulate at home that which they applaud

abroad.

What they do admire in democracy will remain as no more than lip-service

until what they say is translated into action.

What can President Botha promise South Africa and the world during one

election? We must wait and see, but right now it would appear to me that the

script is already written.

He is committed to retaining the Group Areas Act. He is committed to retaining the Population Registration Act. He is committed to retaining the tricameral parliamentary system, and he is, in fact, committed to attempting to

try to make the National Council work without full black participation.

And all this spells disaster.

76662

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66
SOUTH AFRICA

PEOPLE URGED TO TURN GUNS ON 'MASTERS*

EA051118 Dar es Salaam Radio Freedom in English to South Africa 1815 GMT

4 Feb 87

[Unattributed commentary]

[Excerpts] The [word indistinct] is in the open. For almost 2 years now,

the fascist regime of Pretoria has been thinking that it has succeeded in

misinforming the world public opinion about the so-called black on black

violence. The Botha-Malan clique in Pretoria wasted millions of rands in a

desperate attempt to divert attention of the world from its brutal and barbaric killings of innocent people, especially [words indistinct] said in many

ways that the thousands of people who are daily dying in the dusty streets of

our locations and townships in our motherland are a result of the so-called

black faction fights in our townships and locations.

Compatriots, the past 2 years have seen an unprecedented mass political and

armed struggle developing to heights never reached before. We have seen the

growing unity of the people in practice, we have seen their preparedness to

sacrifice all [words indistinct]. We have seen in the past 2 years [word

indistinct (?threaten) our underground combat units of the people's army,

Umkhonto we Sizwe, a movement that struck (?terror) in the hearts and minds

of the apartheid regime.

Within the corresponding period, the Pretoria fascists were on the other hand

intensifying their recruitment within the oppressed majority. Hundreds of

hunger-stricken men were recruited into Botha's death force and vigilante

squads, whilst others were tribally mobilized into tribal bands like the one

of Gatsha Buthelezi, all in the interests of apartheid and its [passage

indistinct] freedom fighters are the bands that are used to terrorize and

instill fear in the hearts and minds of all the opponents of the apartheid

rule in our country. They are the very ones who are sent to our townships

and locations under the cover of darkness to raid and mercilessly murder our

leaders and activists. These are heartless puppets in the regime who are sent

to disrupt our meetings and funerals and later claim to their bosses in Pretoria that they were attacked whilst moving innocently.

Fellow freedom fights, it is a well-known fact to us and to the world that

the ANC is the people of South Africa and the people of South Africa are

67
indeed the ANC. How then can the ANC carry out a self-destructive operation?

The ANC is and will remain the champion of the interests of the oppressed

majority in our country.

Once more, fellow South Africans, black and white, the ANC wants to make a

special call to those of us who serve in the army of murder, the South African

death force, those who find themselves in the gestapo police force, those

who have been recruited into the killer squads, the [word indistinct]

vigilantes to consider their position and role in the South African revolution.

Even at this very late hour,.we call on them to think deeply about their

future. The choice is, however, theirs, either to perish with a system that

has fallen foul of the times or march forward to a bright and happy future

with the masses of the people who are today laying the foundations of that

future in the field of battle. We call on them to turn their guns to their

masters. They must refuse to murder and maim their brothers and sisters,

their friends and relatives, for that can only serve to perpetuate their own

suffering in South Africa.

In this, our historic year of advance to people's power, we call on all people, all freedom-loving patriots of our land, to become freedom fights everywhere they are, whether in the factories, whether in the mines, in the white

houses, in the schools or universities, or even at home. Member [word indistinct], Umkhonto we Sizwe is everywhere. Down with the vigilantes and

killer squads. Forward to Umkhonto we Sizwe.

/6662

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68
SUCCESS OF ANC FARM IN ZAMBIA NOTED

SOUTH AFRICA

Johannesburg SUNDAY TIMES in English 18 Jan 87 p 9

[Text]

TWO thriving farms in the Zambian

bush near Lusaka, run by post-1976

expatriates and former Robben Island prisoners in a way that would

please any Voortrekker

descendant, are feeding the 1000-strong exiled community of the

ANC in Zambia.

For many South Africans the ANC has become

a symbol of terrorism and

revolutionary politics.

Few know the other side of

this banned organisation, as

exemplified by these farms.

Glimpse

This other side revolves

around a huge organisation

which has developed a startling network of international

diplomatic contacts, training

men and women to administer a "liberated South

Africa", to take part in the

economy, agriculture and

other facets of life in SA.

The ANC's economic policy on nationalisation of

banks and industry and the

collectivisation of farms under state control has frequently caused South Africans to accuse it of having

communist designs. A look at

the two farms offers some

glimpse into the way ä future

ANC government would like

to run things.

The first of the farms,

Tshogcla Estate, some

1 335ha in size on which tobacco was previously produced, was given to the ANO

bv the Norwegian development aid agenSy NORAD in

1978. .. u

The second farm, Alpha

Farm, 1570ha which adjoins

Thsogela, was donated by tne

Swedish SEDA agency in

Both are situated on the

Tanzam railway line about

40km north of Lusaka and

share good-neighbour relations with a farm belonging

to South Africa's Anglo

American Corporation.

On the surface, the farms

aonear to be thriving as

Sis of ANC collectiv.satiqn methods.

Carrying maize, soya

beans, sunflower and vegetables, and boasting vast

herds of Afrikander cattle

and other breeds-numberiiiB 1 300 - as well as 1500 chickens, 300 pigs and some

sheen and goats, the farms

appear to be well-managed

and succesful. ,

And yet, despite some efforts bv ANC spokesmen to Scate a profit, the Swedish

and Norwegian donors continue to subsidise them.

All produce is used by the

large ANC community in Lusaka, while surplus produce

is sometimes sold locally.

But the biggest problem

facing the ANC is the unwillingness of its own people to

work on the farms.

While eight ANC members

are permanently stationed on

the farms, spokesmen say

there are never more than 30

ANC members active there

at any one time.

Embarrassment

Most of the work is done by

80 Zambian labourers living

in unserviced hovels who arc

paid the Zambian mimimum

daily wage of 84 cents, or less

than R25 a month.

This must cause some embarrassment to the ANC

which propagates a socialist j

reform of South African agriculture and often attacks the

so-called exploitation of

farm labourers by

white South

African farmers.

Spokesmen

for the ANC,

who say no

members

normally re-

; ceive any

pay, claim

youths from

South Africa

are unwilling

to work on

the farms despite financial Incentives.

69
Instead,

they say, the

youths are eager to undergo

military training, placing

guns before food, as is often

the accusation against

Africa.

But this situation should be

seen against the fact that the

ANC draws most of its support from urban blacks,

many of whom have never

had any agricultural tics.

Efficient

Surprisingly, both farms

arc managed- and very efficiently — by a. young Sowetan who left South Africa

after the 1976 unrest and who

had never previously set foot

ona farm.

After leaving the country,

Aaron Mafajc was sent for

agricultural training in East

Germany and Tanzania.

Today, dressed like any

fanner in overalls and boots,

he proudly shows off "his"

farms.

Only now, he says, he realises that South' Africa's

strong economy is not only

based on gold production, but

largely on its agricultural development.

And helping him on the

farms as his deputy and right

hand man is another "city

kid" turned farmer, young

Sadan Naidoo, who comes

from Natal.

"We produce between 850

and1 000 eggsa day here for

our people," says' Naidoo,

who studied agriculture in

Tanzania.

The pigsties managed by

Naidoo are spotlessly clean,

the pigs healthy and fat—

among them the sole survivor of two huge boars named

after two Western leaders

clearly counted as public enemies by the ANC.

The other hapless 'politician pig' was slaughtered for

Christmas to feed 95 people.

Naidoo and Mafajc are assisted by George Naicker, a

former Robben Island prisoner, who takes care of financial matters.

Seven tractors, of which

three are not working due to a lack of spare parts, are

used on the farms.

On Tshogela Estatea big

abattoir is being built, and

boreholes anda large dam

provide ample water.

The ANC members stationed on the

farms live in

two communal homes,

sharing all

facilities and

domestic duties.

There are

no luxuries.

An empty,

cracked

swimming

pool next to . the Alpha

homestead is

testimony to

this.

ANC

spokesmen

strongly deny

that the

farms are being used for any

military purpose and point

out that there are not even

any defence capabilities.

There certainly were no

signs of such activity.

Mafaje and his assistants

spend much time training

other ANC members in agricultural skills.

Mafaje believes state-run

farms ina future South

Africa will serve the interests of what he calls "the suffering masses" and that individual farm ownership will

not be encouraged.

Difficulties

While Mafaje's fanning

methods are efficient and

sound/ he has experienced

difficulties with the economics of farming and an unwillingness by black South

Africans to settle down to

sucha lifestyle. He still relies

on foreign aid to make it all

possible.

How he hopes to solve

these problems ina future

South Africa under sucha socialist system he does not

say.

In the meantime, asked

where he would like to farm

in South Africa, Mafaje grins

and says: "The Free State!"

/12828

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70
SOUTH AFRICA

FUGITIVE COUNCILLORS TO RETURN TO SOWETO

MB131516 Johannesburg SAPA in English 1459 GMT 13 Feb 87

[Text] Johannesburg Feb 13 SAPA—Fugitive Soweto councillors who took refuge

in a block of flats in Johannesburg last year are to return to the township

at the end of the month. Soweto town clerk Mr Nico Malan announced this week

that housing has been provided for the 36 councillors who fled the township

last June during a fierce confrontation between residents and the authorities. The confrontations resulted in the death of about 30 people in White

City, Jabavu.

Trouble started when the council police were rumoured to be evicting residents

who had not paid rent. Mr Ndeshe Mkhwanazi, a councillor, was ambushed and

killed by angry residents and several councillor's homes were attacked and

burnt down.

Mr Malan refused to give specifies of the location and of the type of housing

that has been provided for the councillors.

The councillors departure from the flats they had been occuping since June

last year comes shortly after an.Indian MP in the House of Delegates requested that the councillors leave the flats so that they could be used for

the purpose for which they were intended: To house Indians.

Mr Malan said councillors moved into the flats temporarily in June last year

during attacks against them. "It was a temporary measure...an-emergency

arrangement because there were no houses where we could house councillors."

The Soweto Council, which has been paying for councillors' accommodation at

the flats, is still going to pay for damages to the flats caused because of

the councillors' presence. Vandals have so far caused damage amounting to

R300,000. Floor tiles were ripped up, 53 stoves and 233 light fittings stolen,

300 windows were broken, a number of window-frames and doors were ripped off

and earthleakage fuses removed. There was also a bomb blast at the flats

last year, repairs for which the council had agreed to pay.

76662

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71
SOUTH AFRICA

STUDY SHOWS BLACKS WANT EQUAL SHARE IN COUNTRY

MB141807 Johannesburg SAPA in English 1304 GMT 14 Feb 87

[Text] Johannesburg Feb 14 SAPA—Blacks feel bitterly that the government

had excluded them from advancement and recognition, a recent survey has claimed.

The survey or "qualitative research study," conducted by Independent Market

Appraisers, [IMAS] was carried out among about 50 middle-class blacks at five

group sessions.

Mrs Annemarie Geldenhuys, IMAS executive chairman, said the major findings

of the study showed "blacks are not satisfied to take a back seat any longer."

"They want to feel and be recognised as an integral part of the economic and

technological building of this country. They want to share everything in

this country on an equal basis," she said.

The study showed that blacks blame the policy of apartheid for both sanctions

and divestment.

Despite the Sullivan Code principles, the international company was found

by respondents to be no better than its South African equivalent as an

employer. "Many blacks felt that economic rather than altruistic reasons

motivate international companies to divest," Mrs Geldenhuys said.

The study also showed that the unemployment insurance fund is not understood

or trusted by blacks. Many of the respondents did not know how to claim,

while others said there was too much red tape involved.

Some of the respondents said that there is too much dependence on whites,

and blacks have been too lazy to exploit their entrepreneurial ability.

Moderate blacks do not believe that all whites want to maintain the status

quo, and believe that mutual trust must be built and maintained on both

sides.

/6662

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72
SOUTH AFRICA

CRIME STATISTICS FOR SOWETO REVEALED

Johannesburg THE STAR in English 30 Jan 87 p 3

[Article by Montshiwa Moroke]

[Text ] A total of 2 638 people were murdered in Soweto in last year - 187

ThVSureswere released yesterday by the Divisional Criminal

Investigation Officer for Soweto, Brigadier James Beeslaar. He said

256 of the deaths were caused by guns.

"The easy availability of guns in the township is giving; us a

headache," he said, noting an increase of 120 firearm-related deaths

,nThe6

'biggest increase in crime as a whole was in robbery cases

where firearms were used.

Other crimes on the increase were rape and car tnett.

These are the figures released yesterday:

• 2 638 murders in 1986. ,«,»«.. ion*

• 256 murders by firearms in 1986, compared to 133 in 1985

• 637 cases of armed robbery in 1986, compared to 345 in 1985.

• 1212 cases of rape in 1986, compared to 1173 in 1985.

• 1778 cases of car thefts in 1986, compared to 1595 in 1985.

Brigadier Beeslaar said there had been a slight decrease in crime

in general compared to 1985. The biggest had been in robberies

where weapons other than firearms were used

"There was a decrease in crime in general last year, ins we

attribute ^increased patrols by security *g^^*5j£.

the brigadier said. "The drop was also partly due to the co-opera

tion of law-abiding citizens and the people in general.

"Unfortunately there are now more firearms, legal and illegal,

avaüabTeTsoK More people can lay their hands on firearms

and we have to attend to this serious problem.

PoHce have arrested 16 people in the past week in connection

with 12 cases where firearms were used. They have also recovered

%\ercXWf?atd\?eya

g

r

U

restS were made by the Soweto Murder

and Robbery Squad at Protea.

/12828

CSO: 3400/54

73
SOUTH AFRICA

NEW KWANDEBELE LEADER HAS PLANS FOR MODERNIZATION

[Report on interview with New Chief of KwaNdebele, George Mahlangu: date,

and place not given]

[Article by Sol Makgabutlane and Rich Mkhondo]

[Text]

George Mahlangu thrust, his

hands into his pockets, turned

around and surveyed the

sprawling complex with a twinkle of pride in his eye.

"This," he said, pointing in a

general arc, "represents the

first phase of what will, after 10

years, be a modern capital."

Mr Mahlangu, a 36-year-old

University of Zululand law

graduate, is the new captain at

the helm of the tiny homeland of

kwaNdebele. And, by the look of

things, the territory is destined

for a new lease of life.

The former businessman, who

says he sold his enterprises

when he was elected MP for

Siyabuswa, was named successor to the late Mr Simon Skosana, who died last November.

Mr Mahlangu is immaculately dressed, sports a goatee, and

his clean-shaven head glistens in

the sun. He strides with the

forceful, measured gait of a military officer.

When he speaks he chooses

eacli word meticulously.

"I do believe," he says, "that

five years from now should

bring a great deal of development and progress to this area."

Sceptics probably won't take

this prediction seriously because

of the homeland's track record.

Endemic violence has

claimed the lives of many.

/12828

CSO: 3400/54

But Mr Mahlangu feels

charged with a special responsibility to restore peace.

"Everything looks like it's

getting back to normal," he

says. "We don't anticipate any

problem (of violence)."

Mr Mahlangu is one of the

few young turks to assume leadership of a tribal homeland in

SOuth Africa. His speech is spotted with Latin terms such as

locus standi, or philosophical

ones such as positivism.

His Ministers - his Cabinet

consists of eight Ministers and

no deputies — feel he is not sufficiently experienced to handle

the Press alone. Throughout this

interview three of his Ministers

kept a reproachful eye on him,

cautioning when he was about to

tread on dangerous ground.

One, Education Minister Mr

PJM Kunutu, kept butting in

and having his say when he was

unhappy with the Chief Minister's replies.

"Can we help you there, Mr

Chief Minister," said Mr Kunutu

on a number of occasions.

On one of these he refreshed

the Chief Minister's memory

about the facf that 31 percent of

kwaNdebele people commute

daily between the homeland and

the urban centres of the Witwatersrand and Pretoria.

Cautious not to stir controversy, Mr Mahlangu declined to reveal the population figure for

kwaNdebele, saying these -were

still being compiled by the Department of Home Affairs in

Pretoria.

He was reluctant to disclose

the homeland's annual budget,

independence plans and whether

or not his territory received

monetary aid from Pretoria.

His said his government ran

the homeland from taxes levied

on citizens and the business

community operating there.

kwaNdebele, which is severely impoverished, consists of

about 40 sun-scorched villages.

The nearest town is Bronkhorstspruit, about 30 km away

from the new capital, which is

called kwaMhlanga.

The homeland has 156 schools

— 26 of them secondary — and

2 500 teachers.

Most of these schools were incorporated into kwaNdebele

when the predominantly Northern Sotho-spcaking area of

Moutse was annexed.

Mr Mahlangu dismissed rumours that there has been a rift

among the leadership corps of

the homeland. Reports have

suggested that there was uneasiness between the government

and the traditional tribal chiefs.

kwaNdebele is a peculiar

homeland. Whereas the nine

others were established on the

premise of ethnic separation —

such as Xhosas, Zulus. Tswanas,

Swazis, Sothos -- this homeland

is made up of various ethnic

groupings and does not seem to

have its own language.

Education Minister Mr Kunutu pointed out that Zulu, Northern Sotho, Southern Sotho and

Swazi were taught at the schools

in the homeland.

A "language laboratory" has

been launched to establish a language which will be called isiNdebcle and be the official language in schools.

The new leaders of the homeland, bubbling with plans and

enthusiasm, hope that their

homeland will progress and

prosper.

74
SOUTH AFRICA

BRIEFS

STUDY: BLACK SUSPICION OF DISINVESTMENT—A new research study shows South

African blacks are suspicious of international companies' disinvestment motives,

A spokesman for Independent Market Appraisers who conducted the survey says

this shows many blacks feel economic rather than moral or humanitarian factors

make overseas firms pull out. The respondents also said international companies were no better employers than South African ones despite the former's

adherence to Sullivan Code principles. The study also found blacks blamed

apartheid for sanctions and disinvestment and feel bitter the government has^

excluded them from advancement and recognition. [Text] [Umtata Capital Radio

in English 0600 GMT 15 Feb 87 MB] /6662

UCASA: ELECTION IMPORTANT TO BLACKS—The president of the Urban Councils Association of South Africa, [UCASA], Mr Steve Kgame, says the coming House of

Assembly election is more important to black South Africans than to whites.

Speaking at the association's regional conference in Capte Town, Mr Kgame

said this was so because the election will determine the black South African

future in the country. Referring to UCASA's participation in the state president's National Council, Mr Kgame said his organization was taking part because it believed in peaceful change for South Africa. The National Council

is a multiracial advisory body to the state president. [Text] [Johannesburg

International Service in English 1100 GMT 15 Feb 87 MB] /6662

INKATHA REPORTEDLY BREAKING OK BOYCOTT—Striking OK workers countrywide are

awaiting report-backs from their union after talks with management. Carmel^

Richard reports on some of the latest developments, including boycott-breaking

by Inkatha supporters. [Richard] An official of the strikers' union said

today it was regrettable that 500 Inkatha members were bused to Ladysmith to

shop at the OK there. Saturday's boycott busting exercise was organized

by KwaZulu Minister of Welfare and Pensions Stephen Sichebe, who said he disagreed with the boycott, as the strike was a domestic issue between management

and workers. A union official said their approach in the union and the supporting organizations was that consumers should choose between OK management

and strikers, who were fighting for their rights. He said by deliberately

buying at the store, it was clear that Mr Sichebe and his people were deciding

to support management against the workers. [Text] [Umtata Capital Radio in

English 1100 GMT 16 Feb 87 MB] /6662

75
SOWETANS PAYING REDUCED RENTS--After an agreement reached at a meeting called

by former mayor Ephraim Tshabalala at the weekend, scores of Sowetans have

begun paying their rent—but only R5. The meeting drew thousands of residents

to Tshabalala's Eyethu Cinema at the weekend when the rent issue was

discussed. Residents resolved the reduced rent of R5 be paid as suggested by

Tshabalala, along with R15 for water and electricity combined. Commenting

on the move, Soweto mayor Nelson Botile yesterday said: "As far the

council is concerned, rents have not been reduced by the government. "Besides,

township managers will not refuse any money paid in by residents on rent

because this will reduce the arrears. "People can pay their arrears in

instalments, even if they pay R2, but this will definitely not be regarded as

payment for their monthly rent until the government officially agrees on

such a move." Ambition Brown, public relations officer for the Sofasonke

Party, yesterday confirmed that a resolution had been taken on the rent issue,

but refused to make any further comment. Asked if the decision taken by

the Sofasonke Party had been officially passed by government he said: "I

do not want to comment on the matter at this stage, but I will definitely

inform the Press and public as soon as there are new developments." At

previous meetings held at the same venue, Tshabalala explained that R5

should be paid as rent for 5-roomed houses and that people living in

smaller houses should pay less. [Text][Johannesburg BUSINESS DAY in English

28 Jan 87 p 2J/12828

BOTSHABELO TO STAY IN RSA--Botshabelo resettlement area, 50 km east of

Bloemfontein, will not be incorporated into QwaQwa, according to Minister

of Constitutional Development and Planning Mr Chris Heunis, Minister of

Education and Development Aid Mr Gerrit Vijoen and QwaQwa Chief Minister

Dr T K Mopeli. Botshabelo--or Onverwacht--has more than a half-million

resients and is the biggest-resettlement area in the country. However there

is still scepticism over the fate of the area. A National Committee Against

Removals spokesman said it was just a matter of time before Botshabelo was

incorporated. Botshabelo was born in 1979 when Sothos in Thaba'Nchu were

harassed after incorporation into Bophuthatswana and asked for Government

protection. The Government bought Onverwacht farm as a Southern Sotho area

and residents oppose incorporation into QwaQwa because they would lose the

right work in South Africa. [Text][Johannesburg THE STAR in English 4 Feb 87

p 8]/12828

CSO: 3400/54

76
SOUTH AFRICA

NUJ LETTERS URGE RELEASE OF DETAINEES

MB091058 Johannesburg SAPA in English 1053 GMT 9 Feb 87

[Text] Johannesburg, 9 Feb (SAPA)—The National Union of Journalists [NUJ]

has called on the South African authorities to consider the immediate and

unconditional release of "three prisoners of conscience" being detained under

the emergency regulations.

In letters addressed to minister of law and order, Mr Adriaan Vlok; the

commissioner of police, Gen Johan Coetzee; and the minister of home affairs

and communication, Dr J. C. G. Botha; among others, the general secretary of

NUJ, Mr Harry Conroy, said the union was concerned to learn of the plight of

journalist Brian Sokutu.

"We understand that Mr Sokutu was arrested at home last June and is detained,

together with Donovan Nadison and Michael Coetzee, without trial under the

state of emergency regulations currently in force," said the letters.

Mr Conroy added that it has been reported that Mr Sokutu and Mr Nadison, a

youth church worker, have become ill and were suffering from depression.

"The NUJ fights constantly for the right of freedom of expression and feels

concerned over the long detention of these three prisoners of conscience. The

ill health of two of them, has undoubtedly been caused by the duration of

detention," said the letters.

Mr Conroy said the union—which represents over 33,000 journalists in Britain

and Ireland—urged that the three men "be granted immediate access to

independent medical examination" and hoped the authorities would consider

"their immediate and unconditional release."

/9599

CSO: 3400/18

77
SOUTH AFRICA

LOSS OF MICROFILM SERVICE DEEPENS ACADEMIC ISOLATION

MB021738 Johannesburg SAPA in English 1352 GMT 2 Feb 87

[Excerpt] Johannesburgr 2 Feb (SAPA)—South African academics have suffered

a severe blow with the announcement by an American company that it was terminating the only available macrofilm reference service to South Africa

universities. In the most drastic development in the country's growing

academic isolation, University Microfilms International (UMI) apparently

informed all South African universities that it was terminating its service

to South Africa.

UNISA [University of South Africa] librarian Mr Thys du Preez confirmed the

development in Pretoria today, and said the step could be linked to the fact

that UMI was a subsidiary of the United States Bell and Howell Company. Bell

and Howell has sold off its South African operations.

Shocked academics warned today that they would experience difficulties in

keeping abreast of research abroad, and that even their status as "academics"

could be called into question eventually by the international academic community ,

University librarians and academics said that the microfilm service was the

main-^and indeed only«-information conduit from the from the U.S. on unpublished dissertations and doctoral theses.

The development might compel South African universities to resort to

"academic sanctions-busting," Microfilmed catalogues of titles and texts

would have to be obtained from "personal contacts" abroad, probably illegally

and involving piracy. This would make the information more expensive, slower

and prone to disruption. Foreign s ppliers would be hesitant to collaborate,

as they would run the risk of being dropped from the service themselves.

/9274

CSO: 3400/964

78
SOUTH AFRICA

ANGLO AMERICAN, NUM COMPILE REPORT ON FACTION FIGHTING IN MINES

Causes Listed

Johannesburg THE WEEKLY MAIL in English 23-29 Jan 87

[Article by Sefako Nyaka]

[Text]

'T'ACTION fights" have been a permanent feature

of Southern African mines since the discovery of

gold.

The common explanation is that these arc "intertribal riots", reflecting either the rivalry of ethnic

groups competing for scarce resources or

experiencing the frustrations of the migrant

labour system.

Put differently: when the river of mine labour

bursts its banks, it will overflow along ethnically

defined cleavages.

Hut this explanation doesn't address the issue of

why the river bursts its banks at all.

It was with this in mind that, in November 1985,

the Anglo American Corporation and the National

Union of Mineworkers set up a commission of

inquiry to examine the causes of "faction fighting"

on Anglo mines.

Titled "Reaping the whirlwind?", the joint

report was completed in May last year— but

because relations between the NUM and Anglo

were at an all-time low, the report could not be

formally adopted.

This week the Weekly Mail obtained a copy of

the report from sources outside the union.

According to the report, Anglo perceives

"faction fights" as the "conduit or channel in

which underlying tensions and conflicts are

expressed"

„Tensions inherent in the work situation and

working conditions frequently lead to inter-group

violence, in Anglo's eyes.

The NUM agrees that it is working conditions

that provoke Clashes between miners — but

believes these clashes are actually exploited by

mine managements.

Interestingly, the commission found that

management generally doesn't try to place the

conflict into the broader South African context.

Instead, it tends to blame "agitators or more

radical elements".

A few weeks ago, Anglo management, by

innuendo, accused the NUM of being partly

responsible for mine violence.

This is significant when one considers that the

commission found that, especially at Vaal Reefs,

the NUM's drive for unionisation presents a threat

to management.

"This is corroborated by the current dispute

over membership figures and the tensions between

management and the NUM," the report found.

Workers are becoming more aware of their

rights and prepared to take action — and the NUM

is seen as playing an important role.

The NUM has gradually been educating workers

on the evils of ethnicity, conditions of

employment, the induna system, single-sex hostels

and other issues inherent in the migratory labour

system.

Anglo agrees that if job status is linked to a

particular group this could lead to inter-group

violence.

Conditions of employment can be another

source of tension and frustration because workers

often don't understand issues like pension

schemes, workmen's compensation or even how to

get their food in the compound.

"As workers become more aware that they can

group together and take action, conflict arises.

"Reprisals may be against management or their

immediate representatives in the hostel, normally

tribal indunas, and this in turn leads to tribal

conflict.

"The unnatural, highly-regulated environment

of the single sex hostels is exacerbated by the

workers' complete lack of control of their own

lives.

79
"The fact that workers are allocated rooms, in

the past on ethnic lines, but increasingly ethnically

mixed, leads to tension," Anglo concludes.

Some Anglo mine managers also believe that

competition over "scarce resources like women

and shebeens" leads to inter-hostel conflict.

The NUM pulls no punches in its contribution to

the report.

It charges that the abnormal conditions imposed

by the migratory system — and the exploitation of

these by management — are at the root of mine

violence.

According to the NUM, "conditions in the

hostels are not only dehumanising but also impose

a system of controls upon individuals that makes

migrants vulnerable to manipulation.

"Unable to take responsibility upon themselves,

workers are put in a defensive situation which

predisposes them to violence.

"The only source of security then becomes the

home group and the tribe, and it is the exploitation '

of this base which gives the violence an ethnic or

tribal character."

The appointment of tribal indunas has

exacerbated rather than alleviated ethnic

mobilisation, the NUM says.

"This becomes even more evident when mine

management is faced with a crisis."

The NUM is emphatic that there was a strong

coincidence between the outbreak of "faction

fights" and crises in the management of the mines.

During the boycott of concession stores in the

Free State'Geduld Mines last year, for example,

"Pondo dancers" were used to try to break the

boycott.

It is common practise on the mines that after a

rigorous and energy-sapping dance, the "thirsty"

workers arc supplied with free liquor.

In this case, armed dancers allegedly moved into

the bar and black hostel officials were seen buying

liquor for them.

When the dancers came out, boycotters were

waiting for them — and the ensuing fight had to

assume ethnic dimensions, the NUM says.

When the rooms of the Pondo dancers were

searched, at the union's insistence, small arms and

firerms were found. "Management took no action

to establish the ownership of such arms," NUM

says.

Although Anglo mines have moved away from

ethnic to integrated accommodation, there arc still

ethnic blocks, and even rooms within blocks.

The NUM claims that shortly after its

establishment, management "deliberately stalled

or even reversed" integrated accommodation.

The system of control and surveillance by mine

security, indunas and izibondas {svb-indunas) is a

recipe for group violence where individuals can

be steered into action by any "commander".

The NUM claims that since its inception

management has been trying to destabilise the

union.

It points to the association of the union with

specific ethnic groups by segments and individuals

within mine management as proof of this.

"Workers have made constant allegations that

some managers have warned them against

unionisation, claiming the workers' governments

back home do not want them to join the union.

"Should there be a specific ethnic majority

within the union in a particular section, like Sotho,

management does not hesitate to label the union a

Sotho union in an attempt to alienate the ethnic

minority."

The NUM adds: "In the selection of miners for

training programmes, management gives

preferential treatment to non-union members.

Evidence of this is found in the coincidence

between non-support for the union and and team

leadership.

"Team leaders are recruited among non-union

members and sent for training before taking up

their positions.

"After taking up their positions they are given

specific privileges such as separate dining halls

and ablution blocks and better accommodation."

This, according to the NUM, creates a black

labour aristocracy.

It is common that leaders are predominantly

from a specific language group and when lowerrank workers take action against them, the clashes

are perceived as a "factional or ethnic attack".

During incidences of mine violence, says the

NUM, the mine always uses its Emergency

Protection Unit (EPU) to crush the uprising.

The EPU, which is a so-called voluntary unit,

executes its duties with "vindictive ruthlcssncss"

— especially against "problem tribes or areas".

At Vaal Reefs, members of this unit knew which

blocks to attack and which ones to leave out,

according to the NUM.

"They thus settled work-associated problems,

and the miners interpreted this action in ethnic

terms — especially where segregated rooms or

blocks made this visible."

' Spill-Over of Unrest'

Johannesburg THE WEEKLY MAIL in English 23-29 Jan 87 p 12

[Article by Jo-Ann Bekker]

THE resurgence of militant resistance which has

[TextJ polarised black communities is also dividing

80
miners and could be responsible for the recent

increase in "faction fighting" on mines.

This is the view of Chamber of Mines researcher

Kent McNamara, who examined the causes of

mine violence in a pioneering doctoral thesis.

He believes the nationwide unrest is

exacerbating existing tensions inherent in the

system of.migrant labour and single sex hostels.

In addition, he says, "All recent expressions of

political factional violence have involved miners

inspired by union developments."

Mine management has blamed unions for the

violence, accusing them of intimidating workers.

Unions have countered with charges that

management is bribing certain groups of workers.

But McNamara is looking outside the conspiracy

theories for the causes.

In the last 18 months the degree of politicisation

in unions has risen as the level of civil unrest has

increased. Miners, says McNamara, are now being

faced with the "you arc with or against the

struggle" ultimatum, as in the unrest-torn

townships.

He stresses this is an opinion, as he has yet to

research the recent violent conflicts thoroughly.

He believes foreign workers arc becoming

alienated by this politicisation. For example

Lesotho miners, who in the past responded

willingly to unionisation and hold senior positions

in the National Union of Mineworkers, have

tended to shy away from the new mititance ofthe

unions. McNamara says this attitude is particularly

influenced by the conservative year-old Lesotho

military government's opposition to union

activity.

"This withdrawal causes resentment among the

rank and file of South African workers who want

solidarity," he said. "The 'for or against us' battle

which we have seen in the townships is now taking

root in the mines. It is accentuated and

compounded by the presence of non-South

Africans and so groups like Lesotho nationals will

increasingly be seen as more and more foreign."

Broadly, McNamara rejects theories that there

are purely ethnic explanations for "faction fights".

He ascribes group conflict on the mines to two

general categories: communal and political,

although individual confrontations will differ,

arising out of specific local conditions.

Communal conflicts, McNamara says, are fairly

spontaneous and breed in the conditions of

migrant labour: male-only beerhalls and hostels,

16 miners to a room in a compound.

"The tensions are often between different ethnic

groups because of the ethnic nature of migrant

labour," he says. "But there is no deliberate

attempt by miners to maintain their ethnicity.

They do, however, form special bonds with people

from their regions, they call them 'home friends'.

"A group of miners could be peacefully having a

drink together but if one of their 'home friends'

was attacked they would defend him."

Political conflicts, McNamara says, stem from

the struggle for scarce resources, especially jobs

and wages.

"So there are instances where a particular group

takes steps to increase the representation of their

countrymen on the mines, and there are instances

of real attempts to kick other workers off the

mine."

McNamara says South African miners tend to be

hostile to miners from Mozambique and Malawi.

While this centres on escalating unemployment in

South Africa, he believes it might also date back to

the time when foreign workers were exempt from

paying personal income tax. Further resentment,

he believes, might stem from the desperation of

migrants from war-torn Mozambique to hold on

to their jobs and their consequent reluctance to

join unions, support strikes, or fight for better

wages.

"The combination of the recent political tensions

and stress caused by the migrant labour system

of enforced communal living leads to a high level

of conflict," McNamara says.

'One Year, One Hundred Dead'

Johannesburg THE WEEKLY MAIL in'English'23-29 Jan 87 pp 12-13

[Text J MORE than 100 mineworkers have died in intergroup violence in the past year.

The 124 fatalities do not include deaths resulting

from mine accidents or security force and police

action on the mines.

January 1986: Seven black mineworkers died in

fighting at the Gold Fields administered Kloof

Mine near Westonaria. Management says the

fighting broke out after Pondos claimed a gang of

Zulus called "Soul Brothers" molested them while

they visited Pondo shebeens.

February: Seven workers killed at the Anglo

American-administered Western Deep Levels

gold mine outside Carletonville. The fighting was

between a combined Pondo-Xhosa group and a

Basotho group, according to management.

March: 14 die at the Anglo Vaal Reefs in what is

believed to be a spillover of the fight at Western

Deep.

June: 11 workers die in a violent clash between

NUM and United Workers' Union of SA members

at the Iscor-owned Hlobane Mine.

September: Three die at the Gencor-owned

Kinross Mine in the Eastern Transvaal.

November: 33 die at Vaal Reefs. The fighting

started after the alleged enforcement of a liquor

8i
outlet bo3'cott.

Ten die at Kloof Mine after an incident at a

shebeen outside the mine led to the fatal stabbing

of a Zulu rnineworker.

December: 29 die at the President Steyn Mine

after the killing of a Xhosa worker on the' mine.

The NUM alleges the fight was started by an

organisation known as Fito. Fito is vigorously

anti-union and allegedly has managment backing.

January 1987: 10 die at the Gcncor-owned

Beatrix Gold Mine after an incident in a shebeen

involving a woman.

Union Recipe'

Johannesburg THE WEEKLY MAIL in English -23-29 Jan 87 p 13

[Text]

THE National Union of Mineworkers

believes It has a recipe not only to minimise

mine violence but to stop it completely.

"The roots of violence on the mines lie in

the migratory labour system — and to

achieve peace, this system needs to be

scrapped," the NUM said In the report.

However, this is a long-term solution.

In the meantime, mine managements

should:

•Immediately stop accommodating black

mine workers on an ethnic basis.

•Immediately stop any recruitment on a

tribal or regional basis. On arrival, new

recruits should be mixed and inducted

together and not as separate teams.

• Investigate the activities ot some

members of management.

• Look Into the system of promoting

mineworkers to team leaders. Allegations of

bribery and corruption In the personnel

departments of most mines should be

probed.

•Implement a system of equal and Joint

management of hostels with worker

representatives.

The companies also have to find both

long-term and short-term solutions to the

housing problem, says the NUM. Short-term

solutions should ameliorate immediate

hardships like 24 miners per room, lack of

hygienic conditions, theft and the type of

beds.

The union claims that management had on

several occasions used the "Russians" — a terror

gang on the mines — to either ferment or actually

carry out acts of violence in the hostels.

At the No 9 hostel in Western Deep, for

example, a gate was deliberately left open and the

"Russians" came into the hostel dressed as Sotlios

and went on to attack Xhosa-speaking miners.

This started the "faction fighting" and the fact

that two Basothos indunas were involved

strengthened the allegations against management,

says the NUM, since the former would not have

acted without their bosses'knowledge.

Some of the allegations made to the comniision

relate to practices which many thought had been

abolished years ago.

Miners complained, for example, about "massnakedness". As recruits, they claim, they arc

paraded naked at a recruiting office, dusted with a

soap containing caustic soda and then sprayed with

water.

Another outdated concept the workers complain

of is the "picannin" system, whereby a worker

transports the shift boss, miners and mine captain,

their food and tools around the mine.

Hoisting is another problem, whites entering last

and leaving first.

Although whites can take any cage to the

surface, black workers cannot, so that a partially

empty cage may proceed upwards without them.

Camp lamps are issued to white miners first,

with the result that blacks, who do most of the

work, arc given the weaker lamps, facilitating a

higher risk of accidents.

Workers also complained that mine regulations

were frequently broken to ensure increased

productivity, which directly benefited the whites

miners but not the workers themselves.

They often have to perform blasting tasks — for

which they cannot gain an official certificate.

Workers also feel they are insufficiently insured

against injury or death.

Injured workers are discriminated against

because of their colour, with medical attention less

forthcoming than it is for whites.

• Gencor has not yet replied to the allegations

noted in the report. Gencor management told the

Weekly Mail that more.timc would be needed to

examine each allegation.

82
Management Accused

Johannesburg WEEKLY MAIL in English 23-29 Jan 87 p 13

{Article by Sefako Nyaka]

[Text]

MINKWORKliRS say mine violence can

usually be attributed to a specific event - --

either on the mine or in its vicinity.

But they accuse management of deliberately

encouraging these clashes.

A shaft steward at the Gencor-controlled

Beatrix Mines, while admitting that the

recent clash which left nine dead was a

spill-over of a fight outside the mines,

believes management could have done

something to avert it.

On December 3 last year, Maduna Sekco was

returning from a neighbouring mine when

he got word that there was going to be

trouble on the mine — possibly a fight

between Pondo and Sotho workers.

The Pondos were apparently going to avenge

the fatal stabbing of their member on a

shebeen in the nearby village.

"I immediately addressed the workers using a

loudhailer and asked them to refrain from

action as the fight took place outside the

mines," he said.

The workers heeded his call — but a few days

later, management convened separate

meetings for both groups telling the Sothos

the Pondos were going to kill them that

night and telling the Pondos that the Sothos

were going to kill them.

"Naturally the Pondos grouped together and

attacked, killing eight people," he said.

He claims that after the fight, management

searched for and confiscated weapons from

the Sothos. This was after they were told

that the same had been done to the Pondos.

However, the Pondos were seen brandishing

weapons — and when one worker

returning from Lesotho arrived on the

mines he asked to be taken to his room to

fetch his belongings.

He was escorterj to his room but was abducted

and killed in full view of the security

personnel, according to Sekeo.

This put the Sothos on a war footing and the

Pondos decided to leave.

Sckeo says that when the Sothos returned to

their rooms after the Pondos had asked to

be sent home, management searched the

rooms, which were tribally mixed.

"When they found the weapons the Pondos

had left behind, management accused the

shaft stewards and union members of

concealing weapons. They were then

summarily dismissed — thus reducing the

strength of the union on the mine.

"The mine bosses are clearly bent on bashing

the union," Sekeo said.

He was supported by Bohlale Citha, an NUM

organiser.

"To management, 'faction fights' are a better

evil than the NUM," Citha said.

"The strategy seems to be to send workers

home and re-employ them selectively —

ensuring that active union members don't

return to the mine."

The NUM claims that a few months before

the violence at the .Anglo American

controlled No 1 President Steyn mine in the

Orange Free State, an organisation known

as Fito surfaced.

It is believed that this organisation was

initiated and encouraged by management.

The NUM base this on the fact that mine

regulations stipulate no organisation can

operate without the hostel managers'

knowledge and permission.

"Management is fully aware of Fito's

operations, as the organisation has been

able to hold meetings on several occasions.

"At these meetings, several frightening

resolutions were adopted."

Fito members have threatened the lives of

union leaders^otUhe^mine, alleging that the

union was placing the workers' jobs in

jeopardy.

Members of thewganisation were also seen

in the offices of the mine manager.

The NUM also alleges that during a boycott

of the bar, management armed Basöthos and

sent them inside. A fight was averted after

union officials restrained their members.

An Anglo representative, however, said in

response: "We have no knowledge of an

organisation called Fito and feel it would be

inappropriate to comment — especially as

faction fighting at President Steyn is at

present the subject of an independent

inquiry''

He denied that management had used Sotho

workers to break the bar bovcott.

/9274

CSO: 3400/916

83
SOUTH AFRICA

PLANS TO MAKE CITY'S NEWTON AREA FIRST 'POST-APARTHEID VILLAGE'

Johannesburg THE STAR in English 4 Feb 87 p 17

[Article by James Clarke]

[Textj

l?rivate town planners and businessmen

believe a start must be made immediately on the redevelopment of Johannesburg's derelict Newtown area.

They say it is the ideal focus for new

South Africa's first post-apartheid urban

core.

This view — with only a few dissentions — came through clearly at a private seminar arranged by the Johannesburg City Council a few days ago. Planmers want to change Newtown into a

" people city" — a bustling annex comparable with New York's Greenwich

Village and Paris's Montmartre.

The council played host to the planners who responded to an invitation to

come up with some practical ideas for

t he redevelopment of Newtown. Looking

a t the 100 löp plänners and urban des igners seated in the ballroom of Northwards, in Parktown, city engineer Dr

John Mortimer, whose idea the seminar

was, said: "I am almost overcome by the

attendance."

Anglo American civil engineer Mr

Tony Mason described Newtown as "a

one-off opportunity" to create something of value to all races in Johannesburg.

ENTERTAINMENT

The collective vision was for a character-filled night-and-day city centre

extcntion. It would have a high density

residential node, small scale shops and

businesses, lots of cultural and entertainment and restaurant activity and

the whole would be laced by urban

parks and water features.

Seminar chairman Mr Len Oakenfull

(town planning consultant) defined the

purpose of the seminar: "We have to

decide ... in Newtown ... what arc we

going to bake and what recipe are we

going to use."

Delegates made the point that before

private capital can be expected to flow

into Newtown the council — whose ratepayers own a third of the area — must

make the first move. If the council

created something imaginative in mid

Newtown it would attract adjacent development.

The prize-winning design for Newtown, by Glen Gallagher and partners,

showed the old Turbine House as a possible nucleus. It also showed, as did

many of the other 27 entries, a "capital

web" of streets, public buildings,

squares and even lakes around which offices and flats could rise.

The web would have to be created by

the council. Ratepayers would retrieve

their capital, plus make handsome profits, by later selling off (or leasing) the

remaining council-owned land which

would by then be more valuable.

Mr Geoff Bottom, a council planner,

warned that "even as we speak" Newtown was to some extent being preempted: office space was being developed, the south-west busway was heading straight for it (two big bus terminuses are envisaged), motorway access

from the north-western suburbs was

being planned.

He was against the idea of having a

Newtown development agency (which a

number of delegates favoured). He believed that from the ideas received at

the seminar "we can go into an implementation stage".

Mr Les Oakenfull was clearly worried: "The council hasn't an agenda," he

said. And Mr Conrad Berge of Jomag

wondered why the use of Newtown as a

mass transit terminus was considered

immutable. "If Newtown did not become a terminus what would happen?

84
Has anybody asked that?" He believed

the terminus function was a crippling

constraint if ugly duckling Newtown is

ever to fly.

Among the architects, urban designers and civil engineers were many big

property developers — Anglo American,

Sage, Old Mutual and Sanlam.

I noticed planning consultant Mr

Jimmy Watson there. It was his tenacity, plus vigorous backing from councillor Mr Hennie Schoeman, that made

Smal Street Mall possible. The mail is

seen as having been a psychological step

towards a new Newtown. It demonstrated how collaboration between the council and private enterprise can transform

the dullest little street into a vivid, exciting upmarket pedestrian place.

What also came through at the almost

non-stop all-day session was that two or

three developers (powerful ones) would

like to see the Newtown project shelved.

Mr Bernard Snodyk of Sage suggested

the development of Newtown might inhibit the growth of the central city core

which "is still underdeveloped. (Sage in

fact owns a lot of it. But it owns nothing

in Newtown. Anglo owns property in

both areas.)

Mr Gerald Leisscner of Anglo American also posed the question: is the timing right? But generally he favoured a

bold stroke to induce the birth of Newtown.

Professor Wilfred Mallows, planning

adviser to the council, also voiced some

reservations about timing. "We have to

consider three things ... the need, the

timing and the finance," he said in his

opening remarks. But generally he supported a "start now" approach.

Mr Tim Middleton (council planner)

recognised the threats to the city core

but gave assurances that a Cnrlton Centre or a Galleria (the Eastgate-sizcd

centre SATS is planning on the East

side) would never be allowed in Newtown.

Mr Nigel Mandy (chairman of the

Central Business District Association

and, from this week South Africa's first

CBD development consultant) was uncharacteristically quiet. He did not think

Newtown was suitable for residential

purposes, he said, because of the mass

terminus plan. He is on record as saying

that Newtown, the city core and the

SATS plan would collectively strengthen

the city and that most big cities were

"multi-nodal" anyway.

Mr Barry Senior, a member of the

" winning Gallagher team, believes Newtown can be changed into a "place

where people want to go".

Delegates then individually discussed

their different plans — all were bold. A

Pretoria entry advocated flattening

Newtown and starting from scratch.

Mr Tim Middleton made it clear that

the council feels "there is a tremendous

amount of symbolism in Newtown" and

that some of its solid old fabric must be

incorporated into the new Newtown. He

asked: "What do you want us to do?"

SQUATTERS

The answer was, in a sentence, "start

the bail rolling".

The support for Newtown as an important residential area for all races

was clear. Some pointed out how warehouses and offices were already accommodating black squatters by the tens of

thousands. Some argued that residential

blocks would have to be subsidised.

Others disagreed.

Architect Mr Bannie Britz commented: "We have one problem: we are still

thinking in Western terms.

"A visitor described Johannesburg as

the Hong Kong of Africa. He is right. It

is the dynamo of Africa. We don't appreciate what we are sitting on."

He added: "We had the guts to blow up

Newtown's cooling towers — now let's

have the guts to get on with developing

the place.

/12828

CSO: 3400/53
SOUTH AFRICA

'DRAMATIC' DECREASE IN UNREST RELATED DEATHS CLAIMED SINCE EMERGENCY

Bureau for Information Statement

Johannesburg THE STAR in English 4 Feb 87 p 1

[Text ] The Bureau for Information, in a statement released

yesterday, has claimed a "dramatic" decrease in the

number of unrest-related deaths since the imposition

of the state of emergency in June last year.

It says that a daily average of 3,7 deaths was recorded from January to June in comparison with a

daily average of 1,4 for the July to December period

— a decrease of 62 percent.

The bureau says 916

people died in unrest-related incidents last year.

However, the Capebased Repression Monitoring Group (RMG),

paints a different picture.

Its latest figures — released in the third week

of November last year —

already put the death toll

for 1986 at least 1306, or

48 percent more than for

the whole of 1985.

The daily average of

2,4 deaths a day in 1985

increased to 3,9 deaths

per day up to November

last year, the RMG said.

The number of deaths

also decreased "dramatically" during the second

half of the year, dropping

from 665 to 251, the bureau claims.

The RMG figures show

a drop from 969 to 337 in

the same periods.

The bureau says cases

of unrest in South Africa

decreased by 70 percent

in the second half of last

year after the introduction of the state of emergency on June 12.

The bureau says that,

during the last six

months of the year the

number of unrest incidents averaged 20 a day,

compared with 68 a day

from January to June.

86
DPSC Skeptical of Claim

Johannesburg THE STAR in English 5 Feb 87 p 15

[Article by Claire Robertson]

[Text]

A spokesman for the Detainees' Parents Support

Committee has reacted with scepticism to the Bureau for Information's claim of a "dramatic" decrease in the number of unrest-related deaths since

the imposition of the state of emergency in June last

year.

"If the unrest has dropped so dramatically ...

well, we cannot comment on why there is still a

state of emergency, can we?" asked Mrs Audrey Coleman, spokesman for the DPSC.

"And if they now feel so secure about the situation

in the townships, why are the Press still barred from

going in and reporting?"

' She said the DPSC was delighted to hear that the

unrest toll had dropped, but "we would like to be told

by the Press that this is so".

' In a statement released yesterday the bureau says

a daily average of 3,7 deaths was recorded from

January to June in comparison with a daily average

pf 1,4 for July to December — a 62 percent decrease.

- The bureau says 916 people died in unrest-related

Incidents last year.

' However, the Cape-based Repression Monitoring

Group (RMG) paints a different picture.

The latest figures from the group — released in

the third week of November last year — already put

the death toll for 1986 at at least 1306, or 48 percent

more than for the whole of 1985.

The daily average of 2,4 deaths a day in 1985 increased to 3,9 deaths a day up to November last

year, the RMG said.

The RMG draws its figures from the South African Institute of Race Relations.

The SAIRR is due to release its unrest statistics —

which consistently show a more serious situation

than do the Government's — later this week.

'DRAMATIC DECREASE'

The number of deaths also decreased "dramatically" during the second half of the year, dropping from

665 to 251, the bureau claims.

This showed that the introduction of the state of

emergency had "saved lives and protected property" the bureau said.

The RMG figures show a drop from 969 to 337 in

the same period.

The-bureau says cases of unrest in South Africa

decreased by 70 percent in the second half of last

/12828

CSO: 3400/53

year after the introduction of the state of emergency

on June 12.

The bureau says that, during the last six months of

the year the number of unrest incidents averaged 20

a day, compared to 68 a day from January to June.

The statement says that incidents of stone-throwing remained the dominant type of incident.

"The sharp contrast between these two periods becomes increasingly apparent when the figure of 157

deaths recorded in May and the 161 deaths recorded

in June, are compared with the November and December figures of 25 and 25 respectively."

The RMG has not yet released its December death

figures.

The bureau claims the security forces were responsible for 34,8 percent of the deaths recorded during the period from January to June and 30 percent

for the period from July to December while "black

agitators" were responsible for 65,2 percent and

70 percent of the recorded deaths during the comparable periods.

If the state of emergency had not been announced

"there would have been a sharp increase in the level

of unrest incidents during the period July to December", the bureau says.

87
SOUTH AFRICA

COMMENTARY NOTES MOZAMBIQUE'S ECONOMIC PROBLEMS

MB061034 Johannesburg International Service in English 0630 GMT 6 Feb 87

[Station commentary]

[Text] The harsh economic reforms announced in Maputo this week are intended

to cure the effects of Mozambique's 11 year commitment to scientific

socialism. By all accounts, the measures announced by President Joaquim

Chissano have been considered for some time, long before the death of former

President Samora Machel in October last year. It's clear that the decision to

follow economic reform in its drive by the World Bank and the International

Monetary Fund were taken in 1984 when Mozambique joined the two organizations,

[sentence as heard]

Now, the national currency, the Metical, has been devalued by (?420) percent.

The government has introduced new taxes, medical and hospital care is no

longer to be free, and there is to be an increase in state controlled rents

and prices of food, which used to be heavily subsidized by the government.

The government has also decided to reform its numerous state owned companies

and adopt policy to make them more profitable.

The Frelimo government acknowledged that the country's economy is practically

bankrupt. Figures released this year show that interest payments on the

foreign debt amounted to twice the country's export earnings last year. The

economy shrank by one-third between 1982 and 1985. Agricultural production

declined by about 20 percent last year. The general production was so low

that there was only one blanket for every 70 Mozambicans and one pair of shoes

for every 8 citizens.

All this is a sad reflection on the heady promises made at the time of

independence. Mozambique, Frelimo claimed, would be transformed into the

first truly Marxist state in Africa. Within (?months) however, the economic

decline (?set in) as a socialist economy was introduced and the state took

control of production and distribution. The situation has deteriorated over

the years and has been made worse by the civil war in the country. While the

economic reforms announced this week will not constitute a miracle cure for

Mozambique's ailments, they do represent a step in the right direction. A

cure for the country's political ailment is, however, far more urgent.

/9599

CSO: 3400/18

88
SOUTH AFRICA

BRIEFS

ELECTRIFIED FENCES WORRY AUTHORITIES—Town engineers are uneasy about

electrified security fencing being put up in residential areas. Randburg

town electrical engineer Max Clark says such fences could easily be shortcircuited by people with a basic knowledge of electricity. They could,

moreover, cause many problems for the owners, he says. Johannesburg deputy

electrical engineer (technical) Roy Reed says: "I would not be happy to

have one without an outer fence, although the makers claim they are safe.

The shock throws you off, but the effects will depend on where you are

shocked." Sentinel Fencing Systems MD Rob Anstey says his company installed

23 700-volt fences for Johannesburg houses last year—with municipal and

police approval. [Text] [Johannesburg CITY PRESS in English 18 Jan 87 p 1]

/9317

BLACK STUDENTS APPLY TO COLORED SCHOOLS—More than 30 000 coloured pupils

returned to their classrooms throughout Natal this week when schools

reopened after the annual holidays. Coloured education authorities in

Durban reported a big increase in the number of applications for enrolment

by black pupils. "In most case the applications will be accepted but in

areas where there is a shortage of classroom accommodation for coloured

children, black pupils will be refused admission," a spokesman for the

Department of Education in the House of Representatives said. He said that

one of the main reasons given by black parents for their children to study

in coloured schools was that they regard coloured education as being of a

higher standard. "It is quite remarkable that although some black pupils

lived next door to a black school they still chose to go to a coloured

school several kilometres away," he said. Blacks were being admitted to

coloured schools following a ruling by the House of Representatives to open

its schools to all race groups. He said new enrolment figures at schools

in Natal would be available later in the week because some schools had not

yet completed their intakes.—Sapa [Text] [Johannesburg CITY PRESS in

English 18 Jan 87 p 1] /9317

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SOUTH AFRICA

REPORT SAYS NATION POORER THAN 15 YEARS AGO

Johannesburg BUSINESS DAY in English 26 Jan 87 p 1

[Article by Gerald Prosalendis]

[ I ext] DESPITE a tenfold increase In the rand

gold price, SA is poorer than it was 15

years ago, says a report by stockbrokers

Edey, Rogers and Co.

In constant 1980 prices gross domestic

product (GDP) per capita was lower in

1985 (R2030.79) than in 1971 (R2071.52), it

s&vs

The report says that a GDP growth

rate of 2% a year per head of population

should be readily attainable in a country

richin natural resources.

"Such a rate has been met and exceeded by many countries of the West.

"It is apparent that while SA could

have laid some claim to meeting such a

target until the mid-1970s, the subsequent performance has been so poor as to

bring the 15-year figure virtually to

zero."

And, if the figures for gold in 1980 and

1981 are stripped from the GDP figures,

the long-term trend since 1974 has been

downward.

"It must be noted, however, that the

most important component of the SA

economy, gold, had enjoyed a tenfold increase in rand terms since 1974," the report says.

It added that by the end of 1986 the

deep recession of the 1980s was showing

signs of ending, and leading indicators

were beginning to point upwards.

This would be encouraging if it weren't

thatDThe leading indicators that began

moving ahead in May last year were primarily financial ones. Even after a further 6% months, and despite a sharp

ßmp in gross domestic expenditure in

e third quarter, the statistics relating

: to the real economy still made poor reading.

The base from which the recovery

might occur is so low that a pronounced

and sustained upswing would be required

before an acceptable level of economic

performance can be claimed to be

achieved.

/9274

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SOUTH AFRICA

UNEMPLOYMENT INSURANCE FUND PAYS MILLIONS TO JOBLESS

Johannesburg THE STAR in English 29 Jan 87 p 2M

[Text]

STELLENBOSCH — Provisional figures showed

that the Unemployment Insurance Fund (UIF)

paid out benefits totalling R348,9 million to about

448 900 jobless contributors last year, the Minister of Manpower and Public Works, Mr Pietie du

Plessis, said in Stellenbosch this week.

Comparing this with the 1980 payout of

R82.7 million to just over 230 000 people, he told a

meeting of the Institute for Personnel Management that the UIF had come under "tremendous

pressure" in 1986.

In spite of this phenomenal increase in the

workload there were virtually no backlogs in administration and payouts from the fund.

Mr du Plessis said the board of the UIF, together with his department, had established a permanent committee to deal with amendments to the

Unemployment Insurance Act.

The committee would give attention on a continuing basis to problematic aspects of the Act,

how they could be eliminated and how the provisions of the Act could be expanded to allow more

people who were presently not eligible to contribute to the fund, to share in its benefits.

The Act would be amended to

provide that:

• An unemployed person who

was doing training under a

scheme could claim unemployment benefits.

• Adoption benefits could be

paid to female contributors who

adopted children.

• Payments to dependants

could also be made to widowers

of deceased woman contributors.

It was also intended to introduce a Manpower Training

Amendment Bill which would

improve the stipulations in regard to artisan training, and an

amending Bill to the Accidents

Act would be introduced this

session to bring about substantial increases in compensation.

Mr du Plessis said all employers should become more invovled in the planning, development and supply of farm labour.

Co-operatives should be encouraged to register as private

labour offices so that they could

supply labour to farmers as a

paid service. — Sapa.

/9317

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SOUTH AFRICA

SBDC OFFERS HELP TO CURB UNEMPLOYMENT

Johannesburg BUSINESS DAY in English 20 Jan 87 p 4

[Article by Theo Rawana]

[Text]

' SOWETO'S open spaces and backyards are a hive of activity, with

scrapyard owners, panel-beaters,

welders, and other home entrepreneurs plying their trade.

Ian Hetherington, receiving the 1986

Free Market Award late last year, said

there were many unrecognised homebased businesses in black areas, and

called for laws enhancing individual

economic freedoms and for the repeal of

those that restrict them.

Small Business Development Corporation MD

Ben Vosloo says the SBDC

has seen 500 000 small

businesses established so

far.

The SBDC offers help in

four areas:

D Finance — offering loans to people

who cannot be assisted otherwise;

Premises — offering low-cost shelter;

D Advisory services — counselling, professional consultation and practical

business training; and

Interest promotion - highlighting the

role of the informal sector in the economy, campaigning for deregulation

and fighting unnecessary control.

Vosloo says: "We help to upgrade

small businesses by offering loans. By

October last year loans totalling R363m

were granted to 13 300 businesses. There

are six different types of loan.

"One in five loan applications is normally approved, as each is judged on its

viability. We have offered advisory services to 19 000 undertakings, and one

third of those are black.

"We have brought to light the fact that

40% of economic activity in SA takes

place in this sector. This is a major area

in the fight against unemployment. We

have offered low-cost shelter in 15 areas

countrywide, and these are accessible to

anyone."

The SBDC aims to take up idle factories countrywide and convert them into

workshops. It has two industrial areas in

Soweto and is trying to getjreople to

move out of Soweto to the Pennyville

industrial area, along Main Reef Road.

D This is the tale of what two people

went through because they did not know

about the SBDC:

Scrapyard dealers Walter Sibeko and

Bob Sapepa took over Class Body Works

Scrapyard from a white owner in Moroka in the mid-'70s and rented under the

previous owner's name for some time.

In 1983 they applied for a trading licence. They say they were ordered to

close shop by administration board inspectors five months after the licence

was granted. The inspectors claimed the

area was "frozen".

The partners asked for an alternative

site anywhere else in Soweto — to no

avail. They applied for another licence

recently and the reply note required

them to build toilets, showers and an

office. They built these, but claim the

township superintendent refused to sign

a form that required his approval.

/9317

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92
SOUTH AFRICA

MORE AID NEEDED TO FEED JOBLESS

Johannesburg THE STAR in English 29 Jan 87 p 4M

[Article by Chris Lebert]

[Text] An untold number of jobless people are walking

the streets of South Africa's cities in search of

jobs or a place to stay.

Every day welfare centres receive hundreds of

people looking for a

meal, a bath, and a place

to sleep. They are hard

pressed to meet the demand.

The projects manager

at the Hillbrow Ecumenical Centre, Mr Alan Joseph (42), said more than

40 000 people have passed

through its doors since

the start of the recession.

"But we can't carry on

caring for these destitutes, because we are

short of cash," he said.

It costs R14 000 a

month to give 60 people

meals and shelter, he

added.

Now organisations

such as the centre, run by

the Methodist, Anglican,

Presbyterian and Catholic churches, have

launched self-help

schemes.

This concept runs

along the lines of a co-operative, in which members are taught skills

such as agriculture or

metalwork, which are put

to use in the centres in

order to make members

self-sufficient.

"All we need are premises, such as an abandoned school, where this

project can be put into

operation," said Mr Joseph.

"We are looking for big

business to put their

money where their

mouths are ... to help get

the unemployed off the

streets."

/9317

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SOUTH AFRICA

LIQUIDATIONS RUNNING AT 'RECORD HIGH'

Johannesburg BUSINESS DAY in English 4 Feb 87 p 2

[Article by Mick Collins]

[Excerpts]

WITH liquidations running at a record level, the monetary battering

, taken by small business and the man

in the street continues.

Latest statistics released by a leading

commercial credit information bureau

indicate that until such time as the economy stabilises, no let-up is in sight for

•the private individual.

Kredit Inform MD Ivor Jones says

that in 1983 the monthly liquidation rate

was around 100. This rose to 400 sequestrations a month in 1986 with a slight

. dip towards year-end (see graph).

"Individuals, sole proprietors and

partnerships have had a far more difficult four years than larger companies.

'»- "The growth in the number of insol-

'vencies of private individuals is because

•sole proprietors are being followed up

more strenuously in respect of monies

owed by their businesses."

! Another major factor causing the crisis, says Jones, is that more companies

«re now calling up personal sureties.

; "On the brighter side, indications are

that larger company liquidations are

starting to slow down after the high

points over the past three years."

) The number of summonses issued

against business was down 30% for 1986,

•compared with 1985.

• Jones says these are indications fewer

companies are reneging on their commitments, which is a sure sign of improved liquidity and confidence in the

business sector.

- "It is true that liquidations do slow

down towards the end of a recessionary

period because the lack of business

forces survivors to exist on lower turnover levels with reduced staff and inventory levels."

However, Jones says, a major problem area develops at the beginning of

any upturn — with many businesses having drained their resources.

"This renders them incapable of financing growth that is required when

the economy starts to improve."

/12828

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94
SOUTH AFRICA

SMALL BUSINESSES HAVE FORMULA TO FIGHT RECESSION

Johannesburg BUSINESS DAY in English 23 Jan 87 p 6

[Article by Norman Shepherd]

[Text]

THERE is a common thread binding small businesses which overcame the recession: all were flexible, adaptable and determined to

succeed against the odds. The

"breadwinners" provided goods or

services others did not, or in a way

they could not, and marketed aggressively, finding new clients or

markets when their old ones fell

away.

They changed operating procedures, installed modern plant and

machinery, computerised administration, improved employee productivity and made available capital work harder.

Working to this formula, Cape

Town's Petrel Engineering trebled

turnover and increased profitability five-fold in the past three years.

When Cape fishing concerns were

reluctant to buy equipment, Petrel

turned to exports, wnich last year

netted it more than R5m — 60% of

its total income.

The company, which employs

100, concentrates on manufacturing hydraulically-powered fishhandling gear, but MD Michael

Franzen says: "More than 60% of

new business in the last two years

has been generated by customers

asking us to design and develop

one-off, custom-built products."

Two years ago, over-staffed Research Surveys, of Cape Town, was

overspending. After five years of

compound annual growth of 100%,

the profit line platcaud. So staff

and budgets were trimmed, wastelul buying was stopped. Costing

and profit ratios were fine-tuned,

operational targets were set, the

frequency of financial reporting

was raised to quarterly and it researched its image to check

strengths and weaknesses.

Then the company's mainstay —

clients in the food and beverage

industry — began falling away. To

solve its dilemma, Research

turned to a business sector that

was coping with the recession. It

signed up 12 financial institutions.

It also introduced a low-cost

package for businesses with tight

budgets, found a way to measure

the persuasiveness of advertising,

designed a highly-technical prod\

uct which could not be copied and

gave it pricing flexibility in the

upper end of the market, and it

secured the rights to an advanced

Scandinavian research technique.

MD Butch Rice is now looking at

between 30% and 40% growth on

last year's R3m turnover.

Projected turnover for Capebased Albrecht Group Holdings —

holding company for manufacturers of catering equipment, importers of food processing machinery

and installers of marine electronic

equipment — for the financial vear

to June 1987 is R16,5m. For the

year to June 1983, turnover was

R7,3m.

MD Kai Albrecht attributed the

growth to changing to meet market needs. In 1982 staff and budgets

were cut due to a government

spending cutback. Albrecht did its

research and perceived potential

in executive demand for pleasu» e

boat electronic equipment. This

demand materialised.

The fishing industry was also

seeking ways to upgrade efficiency. Albrecht obliged by providing

equipment to track working locations.

He added that an Albrecht subsidiary manufactured only catering equipment which, it had been

established, was in great demand.

"One of the strengths of our group

has been its diversity," he notes.

Durban-based Mcbro, trading as

Universal Printing Company, has

achieved 30% compound growth a

year (turnover last year reached

R9,2m, compared with R740 000 in

1978) by buying modern equipment, increasing sales staff, finding independent agents who buy

and resell countrywide and divisionalising into profit-orientated

units. Mebro handles piinting for

advertising and produces computer business forms, calendars and

business gifts.

Electronic fire alarm and detection equipment manufacturer Fiiefite raised turnover to about R6m

last year, from Rim in 1980, by

manufacturing equipment previously imported, imposing strict

quality control, budgeting for

product development and increasing exports. It now exports to 10

countries.

/9274

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95
SOUTH AFRICA

CHURCH STUDY: SANCTIONS COUNTERPRODUCTIVE EFFECT

Johannesburg BUSINESS DAY in English 27 Jan 87 pp 1, 2

[Article by Gerald Reilly and Chris Cairncross]

t Text ] ECONOMIC pressures and sanctions

had a totally counter-productive effect on government thinking, a

Southern African Catholic Bishops'

Conference (SACBC) special commission has found.

In a report, the Commission on Economic Pressures says: "The whole sanctions issue has consolidated government

in its retreat from meaningful and, indeed, any reform."

Meanwhile, Anglican Archbishop Desmond Tutu, one of the most vociferous

campaigners for disinvestment and the

imposition of punitive sanctions against

SA, will not accept any responsibility for

helping accelerate government's retreat

into the laager, and halting the pace of

reform.

Nor will the Nobel Peace Prize winner consider reviewing his efforts to encourage SA's further isolation in the

light of the apparent negative influence

it is having on government's intransigence.

A spokesman at Bishopscourt, Tutu's

official residence in Cape Town, said

Tutu believed President PW Botha's

tough stance was in response to internal

rather than foreign pressures.

He doubted it was a result of any

outside influence, and consequently the

Archbishop would not refrain from callingfor sanctions and disinvestment.

The commission's report, submittedto

a plenary session of the Catholic bishops

in Pretoria yesterday, still has to be

evaluated by the SACBC.

Last year the bishops issued a statement which said that while they were

deeply concerned about the additional

suffering that some forms of economic

pressure might cause, they believed that

economic pressure has been justifiably

imposed to end apartheid".

The special commission's report said:

"The whole issue of sanctions seems to

have drawn a smokescreen or red herring across the trail of why sanctions are

being imposed, so that inordinate energy

appears to be directed to overcoming

sanctions and justifying the actions of a

government seen by most of the white

population as a saving influence to

maintain the status quo, rather than addressing the problems that lead to these

steps in the first place."

Early changes In policy to accomodate black expectations by a regime

overcome by the pressures of economic

boycotts was not likely to materialise,

the report said.

The commission stressed that if inflation continued at the current disastrous

rate the damage to the social fabric of

the country would far exceed anything

that comprehensive trade sanctions

could do to the economy.

The application of economic pressure

against SA could only exacerbate an

existing serious condition.

It could be accepted that as sanctions

became more effective, the tentative

economic recovery was likely to be destroyed.

The commission was established after

the SACBC said it did not have the competence to give specific advice on how

exactly economic pressures could or

should be applied.

Asked whether the report did not condemn sanctions, a spokesman for the

bishops declined to comment and said it

would have to be evaluated.

/9274

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96
SANLAM: WAGE DEMANDS FUELLING INFLATION

Johannesburg BUSINESS DAY in English 27 Jan 87 p 3

SOUTH AFRICA

[Text]

WAGE demands havebecome a

core element contributing to

structural inflation in SA, says

Sanlam in its January economic report.

It warns that the public will have

to realise anew that it is contributing to this cost spiral, especially if

it demands more for the same levels of production.

"Wage discipline is of the utmost

importance if we wish to rid our

economic system of this (inflationary) cancer."

Although SA's inflation rate

could ease over the next year, Sanlam remains pessimistic about

longer term prospects, identifying

wage inflation as a core problem.

Sanlam notes that labour remuneration represents close on 60% of

the total production of goods and

services in the economy.

Any changes in this remuneration would, therefore, have a significant effect on the underlying

costs per unit of production.

Former Wits Professor of Business Economics Roger Gidlow says

in the Bank of Lisbon's latest Economic Focus that SA needs to

broaden its export base if a meaningful upswing in the economy is to

be sustained.

He says, however, that manufactured exports are unlikely to be the

source ofsustained growth. Rather,

it is in the mining industry that SA

has a comparative advantage.

"In the context of sanctions, the

country can be expected to become

more dependent on mining exports.

Given these circumstances it would

be unfortunate if any economic distortionsin the economy prevent the

underlying comparative advantages of the mining industry from

being fully exploited, even if these

advantages are concentrated in

specific sectors of mining."

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SOUTH AFRICA

NATION'S BUSINESS SCHOOLS SAY MORE MANAGEMENT TRAINING NEEDED

Johannesburg BUSINESS DAY in English 26 Jan 87 p 9

[Article by Andrew Gillingham]

[Text] SOUTH AFRICA HAS a management/staff ratio of 1:40 compared

with Europe's 1:12. And SA shapes

even worse in comparison with

the US, where the ratio is one

manager to five workers.

SA business schools say that, on the

whole, SA has a high standard of management but it needs more training.

They stress that it is not simply a

question of training managers to the

required level, but keeping them at

this standard.

Dean Andy Andrews, of Wits Business School (WBS), says managers

need retraining every six to nine

years, depending on position, as this

will prevent them falling too far behind developments in management

techniques.

In SA there are seven university

business schools as well as a number

of commercial colleges. Some faculty

members say the industry may be

considered over-traded, but given the

management shortages this is not

really the case.

The recession has reduced demand

for courses. Most business schools

have cultivated a high profile image

to combat this, and even Unisa has

dropped its policy of avoiding the

limelight.

This year SA universities suffer a

20% cut in their budgets, and business

schools have suffered in tandem.

However, most of the schools are buffered to some extent by the revenues

earned from executive courses.

These monies are used for expenses

which cannot be handled by the university budget. WBS, for example,

has used these funds to give it a better

student to computer ratio than even

Harvard Business School.

The Pretoria University Business

School has also invested in computers, giving its lecturers PCs. The

extra cash is also used for such things

as building extra facilities and sponsoring additional overseas contacts.

Cuts in budgets are having some

detrimental effects, with lecturers

suffering under heavier course obligations and unable to devote time to

vital research.

Research is an essential part of any

business school's operation, and Pretoria Business School's Leon Brummer points out that research is needed to keep the course material up to

date and to produce new techniques.

He also believes that a major research effort is required to develop a

specifically SA style of management.

He says the US and Europe have

produced techniques which are directly related to their own needs. SA

would do better to research a management style which would be better

suited to the differences in SA business conditions.

Accepting that SA is an unusual

mix of First and Third World economies within the same economic structure, Brummer believes developing

SA's own managerial techniques

would have major benefits, but this

needs more cash.

Quality is a major consideration

among SA's business schools. WBS's

Andrews says the standard is very

high in SA. He notes that in the US

there are about 650 business schools,

but there are wide fluctuations in

standards, and probably only 15 are

worth attending.

In SA the standards tend to be more

consistent with industry's requirements and students who have followed post-graduate courses continue

to be in great demand in the private

sector, with good salaries to match.

/9274

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SOUTH AFRICA

COUNTRY'S MANAGEMENT NEEDS SAID TO BE CRITICAL

Johannesburg BUSINESS DAY in English 26 Jan 87 p 9

[Article by Mandy Jean Woods]

[Text]

THE University of Durban-Westville has

SA's smallest business school. Since its inception in 1974 with six Indian students, the

school has grown to accommodate 90 students; 55 new students are expected to enrol

this year.

According to Joop Venter, director of the

graduate school of business, the trend since

the university was opened to whites in 1978

has been for fewer Indian students to enrol

for the MBA course offered at the predominantly Indian university.

"Of the 55 new enrolments this year, 30 are

white, 15 are Indian and 10 are black. This is

quite disappointing, because Indians generally have a natural business acumen but

tend to prefer the professions, like medicine

and law. But they must move away from

retail shopkeeping and into management,"

he urges.

'Bridging year'

SA's management needs arc critical, with

an average of one manager for every 40

workers, compared to one to five in the US.

The number of blacks signing up for

MBA's is increasing, but few manage to

complete the programme. "There is a tremendous need for blacks to get this kind of

qualification. We have had 10 blacks start

the course over the past four years and only

two are left," he says.

Environment and background problems

seem a factor in the high drop-out rate for

black students in the MBA programme. "I

think a bridging year is needed for black

students. We have found quantitative subjects

jects are a real problem for them," Venter

says.

The business school offers only a three

year part-time MBA course. "I am against

full-time MBAs. In a full-time programme,

students deal with perhaps four or five subjects every two or three months. It's a real

pressure on them. On the part-time programme, my students have contact with a

course for one academic year," he says.

Venter adds that part-time students tend

to be more mature and older — the average

starting age at Durban-Westville's MBA programme is between 29 and 30 — with an

average of eight years practical business

experience. "A survey showed that, over the

three-year programme, students spent 880

hours in the classroom, 100 hours in the

examination room and between 880 hours

and 1000 hours in study and preparation

time. The MBA is really a full-time job that

needs a lot of commitment," he says.

But even students with substantial business experience find the MBA tough going.

About 40% of all first year students at Durban-Westville drop out before taking their

year-end examinations.

Venter says the first year is a winnowing

one, and for that reason selection and admittance of students to the programme should

not be limited. "All schools basically use the

American graduate management admission

test, but with our cultural differences it is

better to stay away from that. So far, we

have accepted all the qualified students who

have applied, but that could be a problem if

we have more applications than we can accommodate," he says.

"I think SA is losing a lot of potential

manpower because of the selection criteria

99
employed by the business schools. Some students may not do well in an entry examination but may have determination that propels them through the course. On the other

hand, students who easily qualify to enter

the programme can sometimes lack the determination to finish the course," Venter

says.

There are only four full-time faculty

members in the business school, but a variety of businessmen contribute their specialist knowledge to students on a part-time

basis, and this extensive outside input is one

of the programme's strong points.

"We believe in a strong theoretical input

which the faculty provides, and then we go to

the outside world for strong practical input

in areas like marketing, economic environment, financial accounting, industrial relations, marketing management, personnel

management and human organisation and

behaviour," he says.

Visiting professors

There is a need for the business and academic worlds to work closer together, and

this is one way in which that goal can be

achieved, says Venter.

"This is an area prominent in business

schools abroad. Some of the best business

executives are invited to be visiting professors, and I would like the local captains of

industries who have South African experience to teach our students," he says.

Despite the similar lack of closeness between business and academics in SA, the

business schools in SA compare well with the

standard of their counterparts abroad. "Our

standard in SA is excellent and I don't think

we have to worry about anything, except

perhaps the funding of schools," says Venter.

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SOUTH AFRICA

TRADE SURPLUS HITS RECORD HIGH

Johannesburg BUSINESS DAY in English 27 Jan 87 p 1

[Article by Gerald Prosalendis]

[Text]

SOUTH AFRICA increased its trade

surplus for 1986 to a record R14,9bn

compared with R13,6bn the previous

year, according to figures issued by

Customs and Excise.

If the trend continues it should augur

well for SA's ability to meet both its

foreign debt commitments and to build

up reserves in the months ahead.

Based on this figure, the surplus on

the current account of the Balance of

Payments for 1986 should match, if not

better, the previous year's R5,9bn. In

dollar terms, 1985 and 1986 look set to

be roughly equal.

Total exports for the year were

R41,8bn compared with R36,5bn the

previous year, despite tighter trade

sanctions on South African exports and

a similar average exchange rate compared with the previous year.

Imports rose to R26,9bn compared

with R22,9bn in 1985. Much of the increased import figure can be traced to

stockpiling of strategic commodities,

probably mainly oil and could well

drop back again in the months ahead to

levels more in line with the depressed

state of the economy.

SA's trade surplus remained roughly

stable in December at Rl,4bn, marginally lower than November's Rl,43bn.

The surplus in December last year was

Rl,6bn. In December, exports stood at

R3,29bn and imports Rl,89bn.

However, economists have issued a

Trade

Surplus

1986 ff"

Surplus

Jim l.2l

Jul 0,99

Aug 1,13

Scp 1,55

Oct 2,28

'Noil 1,43

lee 1,10

V

Jun Jul Aug Sap Öct Noir Dae

1986 s9+

Total 1986: Exports 41,8 Imports 26,89

Surplus 14,9

word of warning about being overly

optimistic for 1987. Forecasts of the

current account surplus for the year

vary widely depending on projections

for the gold price and exchange irate —

some have been as high as R7bn.

Even with a higher gold price, however, the decline of the dollar against

major currencies and the rand means

that each ounce of gold is not earning

more in either rand or third currency

terms. Thus, the affordable level of

imports this year does not look set to

rise as much as a higher dollar gold

price would seem to indicate.

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SOUTH AFRICA

PETROL PRICES MAY INCREASE LATER IN .1.987

Johannesburg BUSINESS DAY in English 22 Jan 87 p 2

[Article by David Furlonger]

[Text]

STOCKPILING of fuel reserves is slowing down because the country can no

longer handle the rate of fuel coming in.

The slowdown is only temporary, however, and stockpiling will build up again

later this year.

Once it does, an increase in petrol

Erices may not be far behind. Pressure is

uilding up on the "slate", an equalisation fund that keeps petrol prices steady.

Retailers and wholesalers are asking

government for bigger profits.

Mineral and Energy Affairs DirectorGeneral Louw Alberts says although fuel

stockpiles remain below levels the government wants, fuel has been coming in

too fast.

"We have not yet got our basic reserves to the point we would like. But you

can't suddenly buy up a whole load of oil

at one time."

The present slowdown is the reason

why the 5c "stockpile" levy on a litre of

petrol is being withdrawn. Government

sources told Business Day this week the

5c was being transferred to the slate to

prevent an immediate increase in petrol

prices.

Alberts says no final decision has been

made on the levy but fuel industry

sources say the 5c has already moved to

the slate. They say a breakdown of the

latest fuel price shows government is

over-recovering by nearly 4c on a litre of

petrol.

Alberts says part of the 5c may go to

the slatetoJieepIdownprices. "There has

been increased pressure on the slate,

particularly on the petrol side. We nie

under-recovering petrol and over recovering diesel. Probably part of t'nr Pc

will go to compensate for petrol."

Retailers currently receive a 5,2c pro

fit margin on each litre of petrol sold.

and wholesalers 4,950c. Alberts says retailers want "a few cents more" v\6

wholesalers "a fraction of that".

"Their margins have been constant for

a long time," he says. "With wages and

expenses going up, they may have a valid

argument. We want to look very careful

ly at their needs."

/9274

CSO: 3400/918

102
SOUTH AFRICA

BUMPER YEAR EXPECTED FROM MOST FARMERS

Johannesburg THE CITIZEN in English 20 Jan 87 p 12

[Text]

TRANSVAAL Bushvcld

farmers fc;ir another

tough winter unless good

rains fall in the next two

weeks, but farmers in the

province arc generally

more optimistic than they

have been for years.

A senior official of the

Transvaal Agricultural

Union, Mr Joel Kotzc,

said yesterday that for

many farmers in the

Western Transvaal the

maize crop now building

up would be their first

harvest in five years.

In a more detailed rundown on agricultural

prospects following a

wider report on conditions as a whole in the Republic, Mr Kotzc said that

prospects were the best in

five years, since the

drought started to tighten

its grip.

At the weekend the SA

Agricultural Union reported that farmers were

more optimistic than they

had been for years although they were still not

out of the financial

woods.

Yesterday Mr Kotze

said in addition to the

farmers in the Western

Transvaal the prospects

of good crops — also for

the first time in years —

were promising in the

dryland areas of the

Northern Transvaal and

the Springbok Hats.

However, there were

still regions which were

still very dry and areas in

which conditions were

still critical, he said.

The Bushveld's Koedorsrand area was still

very dry, although the

Limpopo River was again

flowing. Hut there had

not been sufficient rain to

ease the plight of the cattle farmers there.

'The Limpopo situation,

however, meant that irrigation fanners were "able

to come up for air to keep

going".

In the Western 'Transvaal there were areas in

which crops varied from

reasonable to weak, and

in some areas good rains

were necessary within two

weeks to be able to save

crops.

The grazing situation

had generally improved

and the Lastern Transvaal in particular and the

Lowveld were in a strong

position.

There had been widespread hail damage, varying from five to 80 percent, in the Lastern

Transvaal. But expectations were that crops

would recover.

In the Lastern 'Transvaal rivers were flowing

strongly and farm dams

were full.

/9317

CSO: 3400/983

103
SOUTH AFRICA

DEVELOPMENT SPECIALISTS ON PLAN TO BOOST PE INDUSTRY

Port Elizabeth WEEKEND POST in English 31 Jan 87 p 1

[Article by Bob Kernohanj

[Text]

MORE than R200 million in industrial

development which will create 3 000

new jobs is in the pipeline for the Port

Elizabeth-Uitenhage area.

The huge boost for the Eastern Cape was revealed this week by two industrial development

specialists who have been working on some of the

projects since the middle of last year.

They said some of the developments — including expansion of current operations, new undertakings and some

involving foreign capital — had already been established,

but the majority would be set up this year.

One company said contracts it was handling through the

Government's Board for the Decentralisation of Industry

totalled R95 million and should create 2 000 jobs.

The other said its contracts totalled RU5 million and

should result in 1100 new jobs.

"There is speculation that negative aspects arc turning

off potential industries from coming to PE and Uitenhage,

but that has certainly not been my experience," said Mr

Alan Latham, local director of IDEC industrial and decentralisation consultants.

Mr Colin Vianello, managing director of PE-based Industrial Business Consultants, said the surge in investment

was due to companies becoming more aware of decentralisation benefits paid by the Government and an improved

flow of benefits.

"More companies are taking advantage of elecentralisation incentives with positive results for the PE-Uitenhage

region," said Mr Vianello.

He had processed R115 million in applications to the

Decentralisation Board since:July last year ^mpassmg

about 60% expansions of existing facilities and 40/« new

ventures.

"Mv studies show that these will result in 1100 new jobs

beingycreated, as providing employment is an essential

part of applications being approved.

Tcreäled by new operations and 900 by expansion.

..Much of«-foreign^stment is from b&rffi,.

some of which ^vebcensuppl ing v factur„lg .market. They have now deadeatog ^ a,so

SÄ2ÄSÄ^S-«-

c cy a,,vm,l!,R0S

"Another advantage PE has is industrial space at low

rentals. . . ,

are anxious to get going as soon as possible."

Mr Latham said new industries being attracted included

plastics, woodworking, packaging manufacturing and

high-technology operations.

Jobs being created from single operations ranged from

50 to a high of 300.

"In terms of replacing jobs and investment lost in recent

years, the new developments may not be able to make up

all lost ground. But in terms of proving that there is si ill

confidence in setting up businesses in the area, the figures

are highly significant," said Mr Latham.

He believed the trend would continue.

Port Elizabeth's development officer, Mr Andr6 Crousc,

said his dealings with companies — several from overseas

— were in line with those of the two consultants.

He added that theMossel Bay oil-from-gas project was

also leading to many inquiries, and prospects related to

this for PE-Uitenhage looked most positive.

104
A spokesman for the Decentralisation Board in Pretoria

said that more applications were being received for new

industries in PE-Uitcnhagc following the introduction of

improved benefits late last year.

He also confirmed that the time taken to pay out benefits had been reduced after initial delays caused by computerisation, and it was hoped that claims would eventually be paid out in as little as 10 days.

In the 12 months to March last year, Port Elizabeth had

75 applications approved for new developments - the

third highest in the country - and indications were that

(his figure would be bettered.

/12828

CSO: 3400/47

105
SOUTH AFRICA

POSSIBLE NEW GOLD. MINE IN FREE STATE AREA

Johannesburg BUSINESS DAY in English 2 Feb 87 p 13

[Text]

AN INCREASE in drilling activity in the Free Stae has sparked

talk of a new goll mine in the

area.

While observers say any positive

announcement to this effect is years

away, the excitement has trickled

through to investors.

Fuelling the speculation are the

more than 20 boreholes which have

been sunk in the area north of the

Loraine Gold mine.

The area — known as the Bothaville Gap because it was thought to be

devoid of payable reserves — lies

between the Klcrksdorp and Free

State goldfields.

The gap has been extensively

drilled in the past, but reserves were

never considered payable. Economic

mineralisation may now have been

found — probably by Anglovaal.

After researching drilling activity

in the gap, Mathison and Hollidge

mining analyst Hilton Ashton agreed

there were grounds for the speculation.

"While the results of the latest

round of borehole drilling are a secret, guarded jealously by Anglovaal

geologists and top management, the

flurry of activity suggests a new gold

mine — or possibly even a minor

goldfield."

In a report on the gap, Ashton said

numerous options had already been

acquired over the mineral rights of

farms in the area. Values were running as high as R5 000 a hectare (plus

20% per annum).

"Just outside Bothaville are forests

of drilling rigs, probing for that elusive high-grade patch of reef. The

level of activity clearly indicates that

a payable reef has been found," Ashton said.

The drilling is taking place in an

area 40km by 30km between Botha-

, ville and Allanridge — the site of the

first borehole intersection of reef in

the Free State.

While it is clear Anglovaal is the

major participant in the gold search,

JCI has also been extremely active in

trying to secure mineral options.

Anglo American holds a few scattered options.

Ashton said the urgency with which

options were being sought was a further indication good drilling results

had been obtained.

"There must be a number of positive and encouraging intersections to

warrant such a spread of drills —

drilling costs alone could be in the

region of Rim per month."

He cautioned that it was still early days. '

"Options to all mineral rights have

not been exercised yet and evaluation

drilling, as against exploration drilling, must still get under way. A positive announcement on one or more

gold mines cannot be expected within

the next five years."

r,„«ngloX

aal's

recently announced

K200m rights issue has suggested to

parket commentators that the mining house plans to secure its future in

jthe mining sector.

j For although more than half its

learnings originate in the mining sector, Anglovaal does not exercise a

significant degree of control over

imany of its major mining investments.

! The exception is Eastern Transvaal Consolidated Mines. But this

toroducer -from hydrothermal, veintype gold deposits - contributes only

106
8% of all the gold produced by Anglovaal-managed mines.

This vulnerability has placed considerable pressure on the group to

expand its gold mining operations.

Ashton said that by implication,

therefore, the Bothaville project

would have top priority.

There are three listed companies

that appear to be the main players in

the geological search. Anglovaal, its

subisdiary Mid Wits and Loraine Gold

Mine — by virtue of its proximity —

would all benefit from any long-term

development.

Most option contracts to buy mineral rights from farmers in the "hottest" area have been taken out in the

names of two companies, Sun Prospecting and Oribi Prospecting — both

wholly owned subsidiaries of Anglovaal. 9

After examining the borehole patterns, Ashton believes Anglovaal intends to delineate a large area and to

zero in on smaller areas at a later

date.

"Early drilling results show the

target horizons lie below 2 500m. The

shallower reef horizons have been

disappointing."

Geologist Toby Antrobus, who

worked on the report with Ashton,

said the target reefs in the Sun Prospecting area were likely to be at a

depth of between 2 000m and 4 000m.

The actual reef being tested has not

as yet been publicly identified.

Antrobus said target reefs in the

Oribi area were likely to be deeper,

but may possibly be richer, being

close to an entry point to the gold

basin.

"The two areas in which Anglovaal

and Middle Wits are interested together comprise an area equal to that

of the Free State goldfield, which supports 14 mines. But it is unlikely, of

course, that so many will eventuate.

"Nevertheless, the potential for as

many as five new mines — perhaps

even 10 — does exist," said Antrobus.

On the question of grade, Antrobus

said details about the grade of gold

would only be known to the inner

circle at Anglovaal.

"All that can be said is that the

quiet air of optimism encourages us

to be optimistic also."

/12828

CSO: 3400/45

107
SOUTH AFRICA

GOVERNMENT AIMING TO TOTALLY REMODEL EXISTING TRANSPORT LAWS

Legislation to be Consolidated

Johannesburg BUSINESS DAY in English 3 Feb 87 pp 1, 2

[Article by Chris Cairncross]

[Text]

GOVERNMENT'S

new draft national

transport policy has

aroused such anger

within the private sector that it has caused

the major road hauliers to withdraw all

co-operation with the

National Transport

Policy Study group

(NTPS) and future

plans to implement official policy.

A major confrontation is now looming

between the Public

Carriers Association

(PCA) — representative body of more

than 70% of the major private transport

operators — and government.

This will come to the boil in Cape

Town next Monday when PCA executive

members meet with new Transport Minister Eli Louw and Transport directorgeneral Adriaan Eksteen.

The urgently convened meeting was

requested by the PCA, which intends to

express its extreme dissatisfaction with

government's White Paper on national

transport policy tabled in Parliament

this week.

PCA president Deon Blignaut said the

White Paper was laudable only insofar

as government had accepted the principles of less government involvement in

transport and fair competition.

But, he said, the industry was extremely upset with the main thrust of the

policy document. Government and the

NTPS had failed to address and resolve

several vital issues that were critical for

a successful new transport dispensation.

The PCA's decision to precipitate a

confrontation by refusing to co-operate

further with the NTPS is to forcibly

demonstrate the industry lias lost patience with government and will no longer tolerate the way it persists in ignoring

those issues seriously affecting the viability of the transport sector.

PCA's chief executive Ian Moss said:

"For more than two years government

has had chapter and verse, in writing and

verbally, on matters about which the

private sector is deeply concerned.

"But nothing of real consequence has

been done. The announcement (White

Paper) of plans for changes in existing

regulations contains nothing of major

significance,. and hardly begins to address our main points of concern."

The issue raising the most ire is the

ongoing involvement of government and

the Sats in road transportation.

108
Private Sector Angry

Johannesburg BUSINESS DAY in English 4 Feb 87 pp 1, 2

[Article by Chris Cairncross]

[Text]

GOVERNMENT is to aiming to totally remodel existing transport

laws and structures in order to deregulate the sector as much as possible.

Notice of this is set out in a White

Paper tabled in Parliament which details government's response to recommendations made by the National Transport Policy Study group, appointed to

formulate a new transport set-up for the

country.

Spearheading the legislative programme is a draft Bill, published yesterday, which is designed to provide for the

early establishment of a new umbrella

Transport Advisory Committee (TAC) to

advise the Minister of Transport Affairs.

The Bill proposes the TAC should consist of 38 members, 22 drawn from the

private sector (including the chairman

and vice-chairman) and 16 from the public sector.

This Bill will be followed by the establishment later this year of an "interim",

independent Transport Tribunal, whose

primary functions will be to implement

the new transport policy, investigate

problem areas and solve disputes.

The thrust of next year's programme,

which government intends to have

passed by June, is to consolidate all

transport legislation into only four separate Acts: the Road Transport Act, the

SA Transport Services Act, the National

Road Act and the Transport Act.

The legislation will be aimed at reinforcing the following guiding principles:

D Economic decisions should, as far as

possible, be left to the market to make. In

practice, this means the market should

determine what is moved, how it is

moved, at what price, from where, to

which destination, at what level of service, and by whom.

D Financial inequities, such as the degree of cross-subsidisation required from

SA Transport Services (SATS) and the

exemption of licence fees for SATS road

vehicles, should be removed.

D Public safety should be protected

through the introduction of a strict onthe-ground enforcement programme.

D Operator quality should be enhanced

as far as possible.

In practice, government has agreed to

provide the following new deals, some of

which .are to be phased in before any of

the enabling legislation is published:

DThe introduction of a new freight

transport policy, providing for easier entry into the road transport market, more

scope for private initiative and greater

encouragement of small business development.

D The abolition of the road freight permit system, expected to save the country

in excess of R60m a year in direct expenditure related to the cost of applications.

D The phasing out of cross-subsidisation

within SATS.

D Payment by all road users for the

provision and maintenance of roads. It is

estimated that an additional R253m

must be collected annually. This will be

achieved by increasing licence fees and

the levy on diesel.

D All operators, whether companies, individuals, or semi-state or state-owned

organisations, will have to pay the same

level of GST on fuel and other inputs such

as licence fees and excise duty.

D Regional Services Councils will in

future be responsible for passenger

transport decisions.

D Vehicles which can carry up to 15 passengers are to be allowed to operate as

taxis. Local Road Transportation Boards

are to be told to issue public permits for

taxi service vehicles on merit, providing

the vehicles concerned adhere to technical requirements on road worthiness and

road safety.

/12828

CSO: 3400/55

109
SOUTH AFRICA

BRIEFS

TRANSVAAL DROUGHT AREAS—A Transvaal Agricultural Union (TAU) survey shows

parts of the Transvaal are still in the grip of drought. But prospects for

the summer grain areas in the province are promising and farmers are optimistic

that the best season in years is likely. For the first time in five years

Western Transvaal farmers are hopeful of a substantial harvest. Very dry

areas include Koedoesrand. Although the Limpopo is flowing, no worthwhile

rains have fallen to relieve beef farmers. [Text] [Johannesburg BUSINESS

DAY in English 23 Jan 87 p 1] /9274

RECORD SUGAR OUTPUT—The Transvaal Sugar Corporation has achieved record

production at its sugar mills in the Eastern Transvaal. MD of the mills in

Malelane, Willem Bekker, says TSC processed about 1,8-million tons of sugar

cane against a previous record in the 1982/83 grinding season of 1,7-million

tons. The surface area planted with cane has remained the same. A record

208,500 tons of sugar has been produced from the cane. The previous record

was about 191,000 tons. [Text] [Johannesburg BUSINESS DAY in English 23 Jan

87 p 1] /9274

COAL FREED FROM PRICE CONTROLS—Price control of domestic coal is to be

abolished. Government is to deregulate the pithead price—that paid to

collieries-~for various grades of steaming coal from April 1, says the

Transvaal Coal Owners Association (TC0A). This is expected to pressure manufacturers to drop their prices, although the final delivery price paid by consumers is not expected to fall significantly. "The pithead price is just one

element in the final price paid by consumers. In the PWV area the pithead

price accounts for just under half of the final price, with transport and retail distribution costs making up the rest," says TC0A MD Les Weiss. In the

Western Province, the pithead price represents about a quarter of the final

price. While prices will be a truer reflection of supply and demand, they

will be more sensitive to increases in transport and other costs than they

have in the past. Although about half of the 120-million tons of coal sold

locally each year is bought by industry, the deregulation will affect about

20% of the total SA market. Major coal users such as Escom, Sasol and Iscor

either produce their own coal or negotiate contracts directly with producers.

B Grade steaming coal is currently being sold at R19.94 a ton, while A grade

coal fetches R21,02 a ton. [Text] [Johannesburg BUSINESS DAY in English

21 Jan 87 p 1] /9274

110
SWEDISH COMPANY PULLS OUT—Vasteras (Sweden)—The electrical group Asea,

Sweden's second largest company, says it will pull out of South Africa. An

Asea spokesman said yesterday that the group had sold its 24.9 percent

stake in the subsidiary Asea Electric SA Ltd to the firm's South African

majority owner, Power Technologies (Powertech). "This implies we will no

longer operate in South Africa," he said. He would not give a reason for the

move. The country's largest company, carmaker Volvo, withdrew in the 1970s.

Another Swedish company, office supplies maker Esselte, left last year.

Swedish anti-apartheid legislation bans new investment in South Africa.

Several major Swedish companies still operate in the country in spite of

government requests to scale down their business. [Text] [Cape Town

THE ARGUS in English 27 Jan 87 p 9] /9274

RELIEF AID SUSPENDED IN N. TRANSVAAL—Operation Hunger has suspended all

food supplies to the Northern Transvaal. The step was taken after a nun,

Sister Walburga Sehone, was found to be charging villagers R2,40 a month

for Operation Hunger food supplies—a 12,5kg bag of mealie meal and two

cups of soup. Sister Walburga, based at the Subiaco Mission at Ha-Mothapo

near Pietersburg, admitted charging for food. She said the money was to

help cover costs. Operation Hunger director Ina Perlman said the organisation had never received any money from Sister Sehone. Any supplies still

in the area would be brought back to Pietersburg. As soon as alternative

arrangements were finalised food would be distributed again. [Text]

[Johannesburg BUSINESS DAY in English 29 Jan 87 p 3] /9317

URGENT INVESTIGATION IN DRUGS—The SA Medicines Control Council (MCC) has

launched an urgent investigation into 33 generic drugs which Australian

health authorities this week banned doctors there from prescribing. The

MDD has established a committee of inquiry to investigate the data provided

by Gestalt Laboratories, which is contracted to test the drugs—painkillers,

tranquilizers and antibiotics—on behalf of two Australian drug manufacturers. MCC head Professor Peter Folb said there may be an overlap of the

drugs on the SA market. If the committee discovered a flaw in the data

pertaining to the drugs, SA would have to follow Australia's lead. A

Gestalt representative said it was standing by its results but could not

comment further as it had not yet been officially notified of the decision

taken in Australia. [Text] [Johannesburg BUSINESS DAY in English

30 Jan 87 p 2] /9317

DISINVESTMENT ANNOUNCED—The giant U.S. entertainment company, Warner

Communications Inc. [WCI], is to divest its South Africa holdings. Their

local subsidiary, Warner Home Videos, has been acquired by the (?Golan) group.

In October last year Warner sold its record interest to local affiliate

(?Weird) Records. The move followed parent company WCl's decision to withdraw

its subsidiaries in South Africa. [Text] [Umtata Capital Radio in English

1000 GMT 24 Jan 87] /9599

111
ASSOCOM BUSINESS CONFIDENCE INDEX UP—ASSOCOM's business confidence index

(BCI) edged up to 89,5 in January from 87 in December. A year ago the

index was 81,9. Assocom says business confidence "appears to be on a

plateau," despite the index being higher than it was some months ago.

This was because businessmen were cautious about how long the positive

economic factors would last. Although Assocom believes the foundation for

economic recovery in the next 12 months has been laid, business confidence

is not yet sufficiently high enough to unlock economic potential. Assocom

also believes an economic policy addressing the problems of taxation and

inflation is necessary and a case exists for another modest fiscal stimulation of the economy. [Text] [Johannesburg BUSINESS DAY in English

30 Jan 87 p 3] /9317

PROFITS SINK AT WEST WITS—Both Waverley and West Witwatersrand gold mines

saw profits plummet despite Increased gold output in the December quarter.

A lower price of gold in rand terms and higher costs were the cause of a

sharp fall in working profits for the two mines in Joe Berardo's

Johanneburg Mining and Finance Corporation group. West Wits's taxed income

(before capital expenditure) was down 40% to R922 000 (Rl,54m) in the

quarter. While the mine marginally increased tonnage and improved average

grade from l,08g/t to l,09g/t, to produce 2% more gold--288,98kg compared

to 283,44kg in the September quarter—high costs and a fall in the gold

price received halved working profit compared to the previous three months.

Capital expenditure, at R2,136m, is down for the quarter (R8,07m). The

higher working costs are attributed partly to increased tonnage from underground operations—which contributed 57 000 tons to production (21%) in

the three months, at an average grade of 2,36g/t. Waverley's average gold

price received dropped to R29 490 from the previous quarter's R30 408, and

costs a ton for the higher grade ore leaped 63% to R18,70 a ton (Rll,42).

Earnings a share, after tax and capital expenditure, were 24,15% down in

the quarter, to 3,7c (4,9c). Dump retreatment at SA Lands yielded 69,98kg

(53,66kg) at a grade of l,08g/t (0,80g/t) on a marginal fall in tonnage.

Grade from heap leaching operations was also higher at 0,35g/t compared to

0,27/gt. Gold recovered was 23,07kg (20,17kg) with tons treated down 13%

to 65 000 tons (74 950 tons). [Text] [Johannesburg BUSINESS DAY in

English 20 Jan 87 p 3] /9317

STATE'S TOTAL DEBT—The state's total debt at the end of the 1985/6 financial

year stood at more than R39bn, about R4bn more than the previous year,

according to the annual report of Auditor-General Joop de Loor, tabled

in Parliament this week. Of this total, R2bn was external debt and R37bn

internal. The cost-raising effect of this level of debt amounted to more

than R412m, while the interest paid on this total during that year amounted

to R4,6bn. [Text][Johannesburg BUSINESS DAY in English 6 Feb 87 p 1]/12828

112
DRAMATIC BEEF PRICE RISE PREDICTED--A beef price increase of up to 50 percent

this year has been forecast by an agricultural, expert at the University

of the Orange Free State. Professor Kobus Laubscher, head of the Farm

Management Unit, predicts that the price of all beef will increase

dramatically in the first five months of the year. In a report entitled

"Some thoughts on expected prices and auction conditions in the South African

meat industry", Professor Laubscher said "the average price of all grades

of beef during the first six months of this year (345c/kg in January) was

expected to be 18 percent higher than for the same period last year". "An

expected drop in the number of carcasses slaughtered will put great pressure

on prices and we predict the general auction price of super beef between

January and April will be about 380c/kg," he said. [Text] [Johannesburg

THE STAR in English 4 Feb 87 p 8J/12828

NEGATIVE MONEY GROWTH PREDICTED--In its latest Economic Monitor, the UBS

says money supply growth is expected to remain negative in real terms until

the middle of the year. The Monitor says idle production capacity lies

at more than 20%, which should stave off demand inflation. Moreover, the

stronger rand should temporarily restrain the imported inflationary spiral.

"On the negative side, a sharp rise in government spending (foreseen at

around 247.) will certainly aggravate inflationary prospects in the longer

term." It says public sector staff will probably get increases of about

157». The Monitor forecasts an average gold price of $440/oz, which will

contribute to the estimated current account surplus of R6bn this year.

[Text][Johannesburg BUSINESS DAY in English 6 Feb 87 p 3]/12828

MINERALS BUREAU STATISTICS HEARTENING--Coal exports maintained their momentum

in November, with tonnages showing no sign of trade bans. Just more than

3,9-million tons of coal was shipped from SA, taking the total export

figure to 40,1-million tons for the first 11 months of 1986. This compares

with the 44,7-million tons of coal exported in 1985. Latest statistics

from the Minerals Bureau—for November—show SA's total income from mineral

sales was R2,9bn. This takes earnings for the first 11 months to R27bn--

4,67. higher than in 1985. With December sales still unaccounted, SA's

total income from minerals in 1986 seems set to rise by about 157. on 1985's

R25,8bn. [Text][Johannesburg BUSINESS DAY in English 5 Feb 87 p 9][Article

by Cherilyn IretonJ/12828

EMIGRATION CAUSES UNEMPLOYMENT--Every 10 professionals who emigrate leave 44

South Africans unemployed. Stellenbosch University's Prof Jan Sadie said

this was because the presence of professionals was a precondition for the

employment of lower-level workers. Prof Sadie said in an article in the

latest edition of "South Africa Foundation News" that the effect of skilled

manpower leaving South Africa had not yet been felt in the economy, but

would be experienced once the economy moved upward at a reasonable rate of

growth. Discussing the reasons for whites emigrating, Prof Sadie said:

"Dissatisfaction with the existing socio-political system ... cannot be

credited with any significant role. [Text][Port Elizabeth EVENING POST

in English 3 Feb 87 p 9]/12828

CSO: 3400/45 , END

113