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JPRS-SSA-8 5- 1 1 2

14 November 1 98 5

Sub-Saharcm Africa Report

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19980127 244

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JPRS-SSA-85-112

14 November 1985

SUB-SAHARAN AFRICA REPORT

CONTENTS

ETHIOPIA

Government Propaganda Campaign Launched in Eritrea

(THE INDIAN OCEAN NEWSLETTER, 12 Oct 85) ...

GHANA

Briefs

Eritreans' Greek Tragedy 2

Call for More Aid 2

OAU Advised To Create Viable Political Organ

(Emmanual Addo Essah; PEOPLE'S DAILY GRAPHIC, 16 Oct 85) . 3

Nation Commission for Democracy Discusses Political Issues

(PEOPLE'S DAILY GRAPHIC, 14, 15 Oct 85) 4

Bawku Tribal Conflicts End

(Iddrisu Seini; PEOPLE'S DAILY GRAPHIC, 4 Oct 85) 7

Syllabus on Political Education for Armed Forces

(Joe Bradford Nyinah; PEOPLE'S DAILY GRAPHIC, 5 Oct 85) .. 8

Revitalization of Decentralization Process Called For

(George Amosah; PEOPLE'S DAILY GRAPHIC, 14 Oct 85) ...... . 9

PNDC Member on Government's Basic Needs Policy

(PEOPLE'S DAILY GRAPHIC, 7 Oct 85) 10

Rawlings Calls for Rapid Implementation of Policy

(PEOPLE'S DAILY GRAPHIC, 5 Oct 85) 12

New Secretariat in Ministry of Labor and Social Welfare

(Faustina Ashirifie; PEOPLE'S DAILY GRAPHIC, 16 Oct 85) .. 13

Luanda Non-Alignment Conference Praised

(K. Baako-Boakye; PEOPLE'S DAILY GRAPHIC, 4 Oct 85) 14

Lack of Board Hinders Investment Code Implementation

(Wendy Asiama; PEOPLE'S DAILY GRAPHIC, 8 Oct 85) 15

- a -
^

Foreign Secretary Obed Calls for Donor Aid

(Eugene Forson; PEOPLE'S DAILY GRAPHIC, 5 Oct 85) 16

Uncompleted Projects Adopted by Government Offices

(Imoru Yakubu; PEOPLE'S DAILY GRAPHIC, 8 Oct 85) 17

A. Lang Probe Reveals Corporate Corruption

(PEOPLE'S DAILY GRAPHIC, 7 Oct 85) 18

Botchwey Calls for Effective Economic Leadership

(PEOPLE'S DAILY GRAPHIC, 16 Oct 85) 20

Ban on Border Land Sale, Lease to Aliens Called For

(Kush Agudetse; GHANAIAN TIMES, 18 Oct 85) 21

Exports Exceed Imports for First Two Quarters

(PEOPLE'S DAILY GRAPHIC, 7 Oct 85) 22

Cocoa Production Essential for Economic Recovery Program

(E.A. Andam; PEOPLE'S DAILY GRAPHIC, 12 Oct 85) 23

Northern Region Reports Mixed Crop Yields

(PEOPLE'S DAILY GRAPHIC, 12 Oct 85) 24

Food Output Expected To Exceed Target

(Albert Sam; PEOPLE'S DAILY GRAPHIC, 4 Oct 85) 25

Bumper Maize Crop Expected on Yugoslav Assisted Project

(PEOPLE'S DAILY GRAPHIC, 7 Oct 85) 26

French To Renovate Obuom Mines

(PEOPLE'S DAILY GRAPHIC, 18 Oct 85) 27

Wood, Products Destined for Egypt, Tunisia

(Kojo Sam; PEOPLE'S DAILY GRAPHIC, 8 Oct 85) 28

MADAGASCAR

Briefs

Ratsiraka in Beijing 29

France Swells Fleet 29

Abattoir Plan Sunk 29

Plateau Project 29

MAURITIUS

Briefs

Malaysian Agreement 31

SOUTH AFRICA

Professor Sees Tutu in Role of Mediator

(Frans Esterhuyse; THE WEEKEND ARGUS, 12 Oct 85) 32

- b -
Confidence in Future Grim

(THE CITIZEN, 24 Oct 85) 33

SACC Block Aid for Kwazulu

(THE CITIZEN, 24 Oct 85) 34

Rural Transvaal Blacks Hold Removals Plan Protest

(THE CITIZEN, 24 Oct 85) 35

Australia Preferred Place for Emigrants

(Angus MacMillan; SUNDAY TIMES, 13 Oct 85) 36

Special Courts for Blacks To Go in 1986 Party Session

(Stephane Bothma; THE CITIZEN, 23 Oct 85) 38

Lombard Backs Federal Plan for Nation's Future

(BUSINESS DAY, 17 Oct 85) 39

Economist Views Possible Alternative for Constitutional Reform

(R. W. Bethlehem; BUSINESS DAY, 16 Oct 85) 40

Possibility of Slabbert Leading White Triple Split

(Ken Owen; BUSINESS DAY, 17 Oct 85) ., 43

Former Editor on Crucial Issues Involving Nation's Newspapers

(Joel Mervis; BUSINESS DAY, 9 Oct 85) 45

Compensation for Inanda Refugees

(Khalil Aniff; POST NATAL, 16-19 Oct 85) 47

Family Stress Grows; Children Need Help

(THE CITIZEN, 25 Oct 85) 48

Minister Praises Special Task Force on Anniversary

(Andrew Thomson; THE CITIZEN, 25 Oct 85) 49

Labor Reporter on Official Assumptions About Poverty

(Dick Usher; THE ARGUS, 15 Oct 85) 50

Academics Disagree on Botha's Offers of Reform

(Frans Esterhuyse; THE WEEKEND ARGUS, 12 Oct 85) ....... 52

Current-Account Surplus Examined

(Cees Bruggeman; SUNDAY TIMES, 13 Oct 85) 54

Contractor Urges Government To Promote Private Enterprise

(Frank"jeans; THE STAR, 8 Oct 85) 56

FOSATU Attacks Multinational Companies

(Joshua Raboroko; SOWETAN, 14 Oct 85) 57
Marketing Urged To Downplay Racial Differences

(Roger Sinclair; THE STAR, 8 Oct 85) 58

Consumer Boycotts Threaten Christmas Retail Trade

(Ciaran Ryan; SUNDAY TIMES, 13 Oct 85) 61

Standard, Barclays Optimistic About Economy

(THE STAR, 14 Oct 85) 63

UIF Cashes Investments To Keep Up Payments

(Amrit Manga; SUNDAY TIMES, 13 Oct 85) 65

Increase in Computer Crime Reported

(Kerry Clarke; SUNDAY TIMES, 13 Oct 85) 66

SPL Predicts Twenty-Five Percent Growth

(Kerry Clarke; SUNDAY TIMES, 13 Oct 85) 68

Unit Trusts Switch to Gold, Mining

(SUNDAY TIMES, 13 Oct 85) 70

Pharmador To Streamline East London Plant

(Zelda Zaayman; SUNDAY TIMES, 13 Oct 85) 71

Work on Low-Cost Urban Development Projects Reported

(Kerry Clarke; SUNDAY TIMES, 13 Oct 85) 72

Slump Hits the Gas Industry

(Linda Ensor; BUSINESS DAY, 15 Oct 85) 73

Briefs

Home-Computer Market 74

Steel Industry Sags 74

Sri Lankan Tea 75

First Food Aid for Qwaqwa 75

Wide Backing for Emergency 75

UCT Principal Warns of Uneducated Generation 75

UDF Chief Detained 76

Boycott Kills Clothes Chain 76

German Fears 76

More Than Entered 76

White Area in East London for Indians 76

Teacher Unions Against Labor Investigations 77

SWAZILAND

Briefs

Maize Ban Lifted 78

Illegals Arrested 78

- d -
ZIMBABWE

Defence Secretary Says MNR Must Be Crushed

(THE HERALD, 16 Oct 85) 79

Local Company Will Build New Houses of Parliament

(Ciaran Ryan; SUNDAY TIMES, 13 Oct 85) 80

South African Economy Crisis Mixed Blessing

(Ciaran Ryan; SUNDAY TIMES, 13 Oct 85) 81

Canadians Pinpoint 32 Areas Which May Have Minerals

(THE HERALD, 17 Oct 85) , 82

Hot Rolling Mill Project Major Step for Industrialization

(THE HERALD, 12 Oct 85) 83

Nation Needs Own Research for Technology Says Professor

(THE HERALD, 12 Oct 85) 85

Briefs

Norwegians Pledge Red Cross Aid 87

- e -
JPRS-SSA-85-112

14 November 1985

ETHIOPIA

GOVERNMENT PROPAGANDA CAMPAIGN LAUNCHED IN ERITREA

Paris THE INDIAN OCEAN NEWSLETTER in English 12 Oct 85 p 4

[Text]

The Ethiopian authorities launched a political and diplomatic

propaganda campaign at the beginning of September aimed at both foreign

and domestic consumption, and particularly at those members of the armed

forces who have become demoralised by the interminable Eritrean conflict.

The intention was to show that the fierce and expensive battles which

raged in Eritrea throughout August at the cost of thousands of dead and

wounded, ending in the recapture of Barentu and Tessenei by government

forces, were justified by reason of the refusal of the opposition to

accept a political solution to the conflict. Thousands of leaflets and

booklets, printed in Tigrigna, Arabic, Amharic and English, were

scattered by helicopter over a wide area of Eritrea, and were also made

available in Ethiopia's embassies abroad. The booklets, issued in the

name of the Ethiopian Workers' Party and entitled "The Sole Truth and the

Only Solution", called on the Eritrean guerrillas to lay down their arms

or "meet the same fate" as their comrades at Barentu and Tessenei. They "

denied that Addis Ababa had rejected attempts by the Eritrean leadership

to reach a peaceful solution, and listed what they said were all the

contacts and attempts to mediate between the two sides between 1974 and

1978. This pronouncement of the official Ethiopian view of the conflict

was followed a few days later by a statement from the Eritrean People's

Liberation Front (broadcast on the EPLF's radio on September 10, the eve

of the 11th anniversary of the Ethiopian revolution, and distributed

abroad on September 24) that preliminary peace talks had taken place

between September 1982 and April 1985 (see I.O.N. N°199) and had failed

through the fault of the Ethiopian authorities.

/9317

CSO: 3400/275
JPRS-SSA-85-112

14 November 1985

ETHIOPIA

BRIEFS

ERITREANS' GREEK TRAGEDY—The Panamanian-registered Pasni Bay with a gift

of 2,500 tonnes of wheat from the European Economic Community for Eritrean

refugees in Sudan is stuck in Piraeus, Greece, and its crew has disappeared,

The wheat was loaded in Hamburg last July 10, according to the bill of

lading signed by the ship's captain, but while the transporter, the

London-based Chartered Marine, was paid in advance by the West German

agency acting for the EEC, the owner of the Pasni Bay, a Pakistani named

Neem Carfraz who lives in New York, received nothing. According to Mr

Carfraz, one of the principal shareholders in Chartered Marine recently

died and the company has gone into liquidation. Meanwhile the intended

recipient of the wheat, a non-governmental organisation based in Belgium,

considers that the refusal of the ship's owner to send the consignment

on is tantamount to a breach of contract. However, sources close to

the recipient said the organisation Band Aid, which staged two mammoth

rock concerts in aid of African famine victims earlier this year, could

agree to pay the shipping charges. EEC aid to refugees in Sudan is put

at about 15 million dollars. [Text] [Paris THE INDIAN OCEAN NEWSLETTER

in English 12 Oct 85 p 2]

CALL FOR MORE AID—Ethiopia asked representatives of donor countries at

a meeting in Addis Ababa on October 8 for 1.2 million tonnes of food aid

in 1986, in order to feed what the national Relief and Rehabilitation

Commission predicts will be 5.8 million people threatened with famine.

The chairman of the commission, Dawit Wolde-Giorgis, said these fxgures

would be revised downwards if the harvest due in three months is better

than forecast. Meanwhile Ethiopia's minister responsible for planning,

Mersie Ejiqu, had talks in Brussels on October 7 and 8 with officials of

the European Economic Community on the aid programme which Ethiopia will

receive under the third Lome Convention. [Text] [Paris THE INDIAN OCEAN

NEWSLETTER in English 12 Oct 85 p 7]

/9317

CSO: 3400/275
JPRS-SSA-85-112

14 November 1985

GHANA

OAU ADVISED TO CREATE VIABLE POLITICAL ORGAN

Accra PEOPLE'S DAILY GRAPHIC in English 16 Oct 85 pp 1, 5

[Article by Emmanual Addo Essah]

[Text]

MRS Aanaa Enin,

member of the PNDC

has urged the Organisation of African Unity

(OAU) to cease being a

yearly ritual assembly

of Heads of State and

Governments and

address itself to creating a viable political organ, capable of looking

at Africa's problems

and their solutions in a

wider continental context.

She said what Africa urgently needed was political

cohesion to overcome the

present colonial legacy of

national chauvinism which

does >-obody any good.

Mrs. Enin said these

when delivering the opening address at the fourth

Afro-Conference General

Assembly at Adoagyiri,

Nsawam yesterday.

The PNDC member

said, in spite of Africa's

immense resources, she is

in the news daily as a continent of. poverty, famine,

ignorance and disease.

She wondered why Africa is faced with natural,

economic and social tragedies although most of

the countries of Africa became sovereign states a

quarter of a century ago.

Mrs Enin therefore

made it clear that Ghanaians are calling for the

speedy implementation of

the 'Lagos Plan of Action'

of the OAU.

"In making this urgent

appeal, we are aware that

with the enormous natural

and human resources of

our continent, our destiny

and salvation rest upon

ourselves. Assistance from

outside pur continent caij

only supplement our efforts," she'pointed out.

She hoped that the

Afro-Conference General

Assembly which is a cönfe-'

rence of the youth, would

come out with solutions to

stop the exodus of skilled

manpower who are mostly

the youth to America and

Western Europe, which

adds to the problem ofunbriddled exploitation-of

Africa's natural resources.

The President of the

Afro-Conference, Mr -J. B.

Yegbe, in his welcome

addresssaid the conference

as a Pan-African Youth

Assembly would afford

participants the opportunity of discussing at the

continental level the problems that bedevil Africa

and engage in a search for

relevant solutions at

grassroot level where all

member countries of the

Afro-Conference operate.

Delivering the key-note

address, the. Most Rev.

Peter Dery, Archbishop of

Tamale said economleind

sound human develop»

ment could not be achieved in any nation whe*e-ju_-

s.tice, peace and equilibrium are absent.

The Archbishop said national planning is needed

to encourage and to sti-.

rmulate, co-ordinate supporKand integrate the efforts ofothers.

/9317

CSO: 3400/282
JPRS-SSA-85-112

14 November 1985

GHANA

NATION COMMISSION FOR DEMOCRACY DISCUSSES POLITICAL ISSUES

Accra PEOPLE'S DAILY GRAPHIC in English 14, 15 Oct 85

[14 Oct 85 p 3]

[Text] This is the concluding part of the press release

issued by the Public Relations Department of the

National Commission for Democracy explaining

certain burning issues concerning the Commission's work. The first part was published yesterday

under the heading: "All must have a say in the use

ofpower."

Qi WHAT specific

issues have been

dealt with by individuals who have

appeared before

the Commission?

A: We have had papers

on topics like:

• Indigenous Concept of

Democracy; Its working in

the Past and Present;

• Contemporary Social

Problems of Ghana: The

Role of the Christian

Churches and their Solution;

• The Years of PartyRule and Democracy in

Ghana:

• A Case for PanAfricanism with Communalism as a Frame-Work;

• Nation Building or

Partisan Politics;

• Towards the Political

Kingdom;

• Nature of Colonial

Education and its effect on

the Spiritual, Mental and

Political Attitudes of the

Ghanaian;

• The. Relevance of

Traditional Music and

Musical Instruments in

Search for a Viable Democratic System;

• Ghana's Future System of Government;

• Indigenous Institutions of Government: How

to Adapt and Modernize

them for a Viable and

Functional Democracy;

and

• Adult Education in

Nation Building.

Q: Is the Commission

addressing itself to Military involvement in

any future Constitution

for this country?

A: May I correct this

impression first. The formulation of a programme

for true demoeracy in

Ghana does not involve the

NCD in any way in>4he

preparation of a Constitution. The NCD is not performing the duties of a

Constitutional Commission or a Constituent Assembly. It is basically an

»dvisory and preparatory

oody.

Coming now to the military question, we definitely would want to draw

the attention of our people

to the phenomenon of military intervention in Ghana, Africa and the Third

World. There is a question

whether or not the constitution we have had realistically addressed the issues oftha true role of the

military in the post-colonial period after political

independence — the whole

question of the emergence

of the military as an instrument of political change in Africa.

The Military is one of

several institutionslike the

Civil Service, the Judiciary, the Houses ofChiefs,

the Police, to mention a

few. What we need in

Ghana is the total transformation of these institutionsin order that they can

play their proper roles in

the effort of nation building. We need a new armed

forces that is politically

alive, and capable of realising themselves as a useful part of a more democratic and just society.

The NCD in formulating its task is concerned

witn ensuring that each

segment of the nation,

properly oriented, has a

role to play in the nation's

affairs. There is no guarantee that giving the military a role in any future

government would necessarily assure political stability, economic development or social justice. The

strength of a political order

does not lie in neat theoretical assumptions. Its
strength lies in the unshakable determination of

the people to uphold it

against pressures and rampant abuses.

Q: Is there a timetable for the realisation

of the NCD's programme?

A: Unlike the former

Electoral Commission

whose work was periodical,

the NCD's function is a

combination of electoral

and civic and political

education. Making people

aware of their political

rights and responsibilities;

identifying their needs;

monitoring implementation of government policies

designed to meet the

pressing needs of the population are all on-going

functions. NCD's role is a

continuing process which

has no time confine. All the

Commission is interested

in is the full grasp of the

rudiments of government

at the grass-root level

through to the national

level.

Q: Will the NCD continue to confine the

'Search' to selected few?

A: Not at all. We have to

interact with the people.

The NCD is also formulating a grass-root programme of contact with

the people through the

CDR structure in the

towns and villages in order

to ascertain their views in

this national issue. The

Commission also intends

to use seminars, workshops

and other group activities

in the course of its work

where people will have the

opportunity of exchanging

ideas and bringing to the

force their own ideas and

views. There is no need to

wait for any formal invita

tion.

People must feel free tu

submit their views, taking

into consideration the issues to which we are

addressing ourselves, to:

The Secretary, National

Commission for Democracy, P.O. Box M.214,

Accra, either through the

post or personally. The office is situated on the

junction of the 8th Avenue

between the Mental and

Ridge Hospitals. Interested persons may also channel their views through the

Regional Offices of the

Commission.

Q: Why is it that we

have as Chairman ofthe

Commission a member

ofthe PNDC?

A: Since the PNDC is

leading a revolution it is

important that an organ

playing the role of leading

our people in fashioning

out true democracy should

be headed by one of them

to provide necessary leadership and guidance.

In conclusion it is important to state the need

to engage the full attention

ofthe people ofthis counry

for grass-root participation

from the village, town,

area council level to the

districts. It is also important to stress the need for

local responsibility for lc^

cal development as an integral part of Government

to make the people at the

local level feel responsible

for the progress of the

community in which they

live.

[15 Oct 85 p 3]

[Text]

• The PNDC in the

proclamation soon

after the December

31 Revolution established the National

Commission for Democracy to take over

the functions of the

Electoral Commission and to discharge

several other functions the PNDC assigned to it.

We publish below

the first part of a release from the Public

Relations Department of the Commission explaining certain burning issues.

QUESTION: What

might be the

underlying factor

for this change?

ANSWER: Independence gave us a constitution, guaranteed a parliament, a judiciary apart

from an executive authority. These provisions were

repeated in 1969 and 1979

with the provision of new

constitutions after the two

military take-overs of 1966

and 1972.

These constitutions

were supposed to bestow

upon us a full participatory form of government,

assuring us free speech,

freedom from arbitrary

arrest, and above all a full

share in the resources of

the land and the fruits of

our labour.

But we all know that

each of our constitutional

experiments failed because

the type of representational system we adopted on

each occasion made governments remote and

distant from the primary

communities that were alleged to have elected them.

Consequently governments remained in the

hands of a few, and above

all represented the interest

of the economically powerful who had access to

these resources.

Power and government

must be returned to the

people by a single process

of recovering the old and

hitherto ineffectual way of

organising government.

Self Government must

mean that political authority shall be in the hands of

all communities who shall

exercise it for their own

benefit. In other words, a

sound local Government

system shall be the basis

and, sine qua non of a

sound national government.

The NCD's task therefore is to prepare all segments of our nation to take

hold of their own communities, and organise these

for their own economic

good. This task includes

the mobilization of these

communities for the purposes of achieving full and

democratic participation

in the use of power.

Q: What is the role of

the NCD?

A: The N.C.D. has been

charged with the responsibility for:
• disseminating within

the Ghanaian society,

awareness of the objectives

of the on-going revolutionary transformation in the

country;

• identifying regularly,

through direct contact, the

real needs of the people,

especially in the remoter

areas and the deprived

sections of the community

and notify the Government constantly of these

needs;

• assessing for the information of the Government, the limitations to

the achievement of true

democracy, arising from

the existing inequalities

between different strata of

the population, and make

recommendations for redress;

• monitoring the implementation of Government

policies designed to meet

the urgent needs of the population, and report to the

Government regularly its

observation; and

» formulating and

advising the PNDC on a

programme for a more effective realization of a true

democracy in Ghana.

Q: Does the Commission have any programme towardsthe effective

implementation of its

role?

A: Surely, there is indeed a programme. The NCD

took over the Electoral

Commission therefore there was the need for restructuring and reorientation in terms of

personnel, programmes

and equipment. The Commission is outlining a

training programme for

some of the staff to ensure

fuller understanding of the

scope and role of the Commission.

Q: Does that mean the

Commission is abandoning its electoral

role?

A: As pointed out earlier

on, the Commission has to

inform, educate and conscientise the people of this

country on the aims and

objectives of the Revolution, and what the people

can do to make it meaningful for the common

good.

There is therefore, the

need for an intensive and

systematic public education to ensure that the peo^

pie fully participate in decisions affecting them from

the local level.

The NCD is ensuring

that the people fashion out

a democratic system of

Government that would

genuinely reflect their political will and creative

power.

This must precede anyelectoral programme. It

must be emphasised however, that although the

electoral function is in

abeyance the elective principle has not been discarded.

For instance, the NCD

still conducts and supervises elections for some statutory bodies like the

Houses of Chiefs, the Medical and Dental Council,

the Ghana Legion. We are

also engaged in some CDR

elections and elections for

private bodies such as the

Civil Engineering and

Building Contractors' Association of Ghana, Churches, the Ghana Federation of Agricultural Cooperatives, etc.

Q: In announcing the

membership of the

Commission the Government statement explained that the NCD

shall as phase one of its

programme of action,

formally collect, collate,

and evaluate views and

work done on the future

political structure of

Ghana for presentation

to the nation. What is

the Commission doing

in this direction?

A: Since the constitution of the membership of

the Commission in November last year the

members have been meeting among themselves to

work out the Commission's

legal functions in political

terms in order to fashion

out a scheme of work and

to prepare the ground for

our interaction with the

people.

We feel that the formulation of a programme for

the realisation of true democracy in Ghana should

not be rushed otherwise we

stand the risk of suffering

the fate which has befallen

past Governments and

Constitutions.

We all know ofthe equal

ease with which our Constitutions have failed to

survive. One must look at

the fate of the 1960, 1969

and 1979 Republican Constitutions.

We think that we should

pause and reflect seriously

on the obstacles to the

achievement of true democracy in the country. We

need to start from fundamentals. Hence the invitation to certain individuals

to discuss with the Commission various basic issues that are significant in

the process of putting together a programme in

terms of our statutory

functions. Also some memoranda have been received from other people.

(fc: What are some of

the issues to which the

Commission has been

addressing itself?

A: We feel that a truly

democratic system should

take into consideration our

tradition, history and culture. We must measure the

performance ofthe modern

political system since independence against our

traditional systems and see

whether the modern period

could not have been improved by an inter relationship with the traditional system.

We feel attention must

be drawn to certain sociocultural values, such as

consultation, voluntary

participation, consensus

and self-reliance which we

cherish as a people but

which we seem to have

failed to integrate into the

political order. We must

address ourselves to the

following:

• the issue of whether

institutionalised opposition is a true guarantor of

political democracy;

• the integration of popular effort towards the

achievement of national

goals on the basis oflconsensus; '

• the spirit of voluntarism which emphasises the

committed and total involvement of a community

as a whole in the upliftment of the people of that

community.

There is the need to

question and, if necessary,

challenge the assumptions

which seem to underlie the

political structures which

we embraced at independence and to which we

have tried to give meaning

since independence with

results which are well

known.

For this purpose, we

think it is important to

re-examine the values

underlying the so-called

Westminster or the Executive Presidential Systems of Government and

the various institutions

that accompanied the political experiments that

have so far failed}

For example, the Judiciary, the Armed Forces,

the Police and the Civil

Service, etc. Hence the

Revolution's concern with

these institutions in the

search for a more democratic form of government.

We also think that it is

necessary to draw the attention ofthe people to the

one-party or the multiparty systems which have

operated in this country

and to evaluate them in

order to determine whether in practice these systems

have provided effective vehicles for the mobilization

of our. people towards development.

19311

CSO: 2400/284
BAWKU TRIBAL CONFLICTS END

Accra PEOPLE'S DAILY GRAPHIC in English 4 Oct 85 pp 4/5

[Article by Iddrisu Seini]

[Text]

JPRS-SSA-85-112

14 November 1985

GHANA

THE bloody clashes

between the Mamprusis

and Kusasis which

erupted last Saturday at

Bawku, resulting in the

death of several people,

and many others seriously injured, has now

ended.

Many houses, including

the palace of the BawkuNaba, Sigri Nichiama II,

were also burnt down.

So far, the death toll officially stands at 13 while

167 persons have been arrested in connection with

the clashes.

It is however believed

that the death toll is more

than 13 since most of the

people engaged in the

fighting were operating

from millet farms and

might have died there.

An official statement issued by the Upper-East

Regional Administration

on the situation at Bolgatanga said, the subsiding of

the clashes had been due to

efforts of the Mobile Force

from Accra and the constant visit to the area by

the Regional Secretary,

Mr J. E. Sekyi.

Mr Sekyi praised the

policemen for the good

work they had so far done

to restore calm to the area.

He hoped that they

would restore law and order, so that people in the

area would go about their

legitimate activities in an

atmosphere devoid of violence and intimidation.

The Regional Secretary

advised the security agencies on operational duties

in the area not to take sides

in the conflict.

He urged them to endeavour to discharge their

duties as required of them

by the government.

' Mr Sekyi said the PNDC

was taking the necessary

steps to ensure tRat the

situation was brought

under control, and that it

would be suicidal for any

peace officer to take sides

in the conflict.

He also warned both

factions to lay down their

,arms or face the necessary

consequences.

Earlier, Mr Sekyi had

spent several hours visiting

the disaster areas, and the

injured persons at the hospitals.

Meanwhile, a contingent

of the air-borne force of the

Ghana Army, has been despatched to the area to

help the police maintain

complete peace and order.

19311

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SYLLABUS ON POLITICAL EDUCATION FOR ARMED FORCES

Accra PEOPLE'S DAILY GRAPHIC in English 5 Oct 85 p 1

[Article by Joe Bradford Nyinah]

[Text]

THE Ghana Armed Forces will soon Qome out

with a comprehensive

syllabus on political

education for all ranks,

the Force Commander,

Major-General Arnold

Quainoo, announced yesterday.

The military, he noted,

was going to make use of a

wide range of experts in the

country to-educate its

members since they form

the vanguard of the revolution.

The Force Commander

was opening a durbar of

men from the various units

of the Ministry of Defence

Headquarters the Airforce

and Navy at the Burma

Hall in Accra.

He noted that he was

not going''to wait for the

completion of the syllabus

before the political education starts.

Among the personalities

who talkedto the soldiers

on various'political concepts were Ghana's Ambassador to Brazil, Dr Kofi

Awoonor, Rev.Father Joop

Visser of the Police Council and Mrs Shirley Ababio

of the PNDC Secretariat.

Major-General Quainoo,

stressed the need for the

men in uniform to be well

informed since according

to him, "a revolution cannot thrive on ignorance".

He said it was important

for the soldier to

understand concepts like

truth, justice/freedom, capitalism and socialism and

how they relate to the

Ghanaian society.

Speaking on the concept

of power, Father Visser defined it as the ability to

compel obedience and

added that the concept of

power as introduced to the

Ghanaian soldier had in

the past corrupted most of

the country's men in uniform.

In a revolutionary

era,Father Visser noted,

power should be translated

to serve the people.

He noted that the time

wheh people thought they

could come to power by

taking over the radio station was over since the

various pockets of power

spread throughout the

country in the form of

CDRs cannot be dismantled by radio announcements.

To make the people's

power concept stable, he

said that such power

should not be geographical, material or exist outside the people, adding that

"the power should be

within the people and serve

them if it is to be immutable".

JPRS-SSA»85»112

14 November 1985

GHANA

192,11

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JPRS-SSA-85-112

14 November 1985

GHANA

REVITALIZATION OF DECENTRALIZATION PROCESS CALLED FOR

Accra PEOPLE'S DAILY GRAPHIC in English 14 Oct 85 p 1

[Article by George Amosah]

[Excerpt]

A MEMBER of the National Commission on

Democracy (NCD), has called for immediate

steps to rescue the decentralisation programme

from the "bureaucratic limbo" into which it has

fallen to make way for practical realisation of

grassroot democracy in Ghana.

Decentralisation must become an immediate reality, he said, to enable Ghanaians to exercise full

control over their own affairs within a philosophical

framework to be defined by the NCD in close collaboration with its grassroot illies — the CDRs, Mobi-'

lisation Committees and the various voluntary organs

of Che revolution.

Dr Kofi Awoonor, who

is also Ghana's Ambassador to Brazil, was

speaking at a seminar for

Secretaries of State at

the Military Academy

and Training School

(MATS) at Teshie near

Accra at the weekend.

In a speech which

dwelt mainly on the

search for REAL democracy in Ghana, Dr.

Awoonor pointed out:

•'It is only when local

self-determining governments are in place can we

speak of national representation which must

take the form of periodic

19311

CSO: 3400/278

national congresses made

up of representatives

from the local grassroots."

A role must be found

for traditional councils

which enjoy political andi

economic authority at

the grassroots, he said,

for without this, revolutionary work would meet

with confrontations and

uneducated opposition

founded on sheer suspicion.

Dr. Awoonor also

pointed out that a full

realisation of these objectives demands political education, reorganisation of formal

education, a new bureaucracy and a strengthened tribunals system

to dispense justice efficiently at all levels of

society.
JPRS-SSA-85-112

14 November 1985

GHANA

PNDC MEMBER ON GOVERNMENT'S BASIC NEEDS POLICY

Accra PEOPLE'S DAILY GRAPHIC in English 7 Oct 85 pp 1, 4/5

[Text]

A MEMBER of the

PNDC, Alhaji Iddrisu

Mahama, has said that it

is the policy of the government to mobilise

the people to provide

themselves with their

basic needs while the

government provides

the inputs where necessary.

He said the country is

faced with many problems

political, economic, social

and even spiritual which

cannot be solved effectively unless the people

pledged themselves tc

work together in happy

comradeship.

Alhaji Mahama made

these observations when

he launched a six-year development programme for

Amansie estimated at

0300 million on behalf of

Flight-Lieutenant J. J.

,ftawlings, PNDC Chairman, at a durbar of chiefs

and people of BekwaiAshanti at the week-end.

He said he was highly

impressed by the support

of the chiefs and people of

Amansie for the government's decentralisation

and mobilisation programmes.

Alhaji Mahama assured

the people that the PNDC

Government would assist

in the implementation of

the six-year development

programme to bring glories

and honours to the people.

Alhaji Mahama announced that the Amansie

District is already on the

PNDC's plan for the extention of the Akosombo

power grid from Kumasi to

Bekwai.

He said with the efforts

they have put in to generate funds for the electrification project, the PNDC

would assist them with the

foreign exchange component involved.

The PNDC member

stressed the importance of

agriculture in the nation's

economy and said

"throughout the history of

the nation, our soil and

water, our forest and minerals, have provided the

resources upon which this

country grows."

He noted that the nation

must continue to exploit

its natural resources rather

than import food for sustenance and raw materials for the industries.

Alhaji Mahama hoped

the interest generated in

the Amansie development

programme would not flag

but would continue to

grow in the years ahead to

enable them to realise the

result of their endeavours.

Alhaji Mahama appealed to chiefs in the country

to lead their people to

achieve better socioeconomic development in

their areas.

He also urged them to

get involved in development projects by mobilising alfavailable humanpnd

material resources within

their areas for the improvement of the living standards of their people.

The PNDC member said

the, government was committed to improving living

standards of the people at

the grass-root level.

He said "because of limited time and resources

at the. government's disposal to fisit all villages in

the country, much needed

assistance would be given

to those who take the initiative to develop their

areas".

Alhaji Mahama said it is

one of the major objectives

of the revolution to create

awareness among Ghanaians to take their own

destiny into their own

hands.

He said this has been

clearly demonstrated by

the contributions.of the

chiefs and people of

Amansie District to the

development oftheir areas.

He warned members of

the development committee to make sure that the

people's money contributed to finance the project

are judiciously used for the

purpose and not diverted

into private pockets.

Alhaji Mahama said'

from discussions with the

10
Amansie Development

Committee, he had been

made aware of the problems of the district. He

promised that he would

take personal interest in

their problems and within

the limit of the present

resources help in finding

rotations to them.

The PNDC member explained that in state matters nothing works better

than to have personal contact with the people to get

acquainted with their problems.

Alhaji Mahama extended warm reg&ids and felicitations of other members

of the PNDC who, because

of national assignments,

were unable to attend the

function.

Mr W: H. Yeboah, Ashanti Regional Secretary,

reminded the people of the

government's policy apd

programmes which are

geared towards development by mobilising human

and material resources in

all localities to bring about

the material and spiritual

upliftment of the people.

"Local initiatives and

action programmes are essential to effective rural,

development". Mr Yeboah

stressed.

The Regional Secretary

said to ensure that the.

programmes initiated by

the people of the''Amansie

District were implemented

effectively the Regional

Administration had

appointed a committee to

monitor the utilisation of

the funds realised. 9

According to Mr Yeboah, the monitoring committee comprises the Regional Accountant of the

Regional Administration,

the Regional Organising

Assistant of the CDRs, the

Apagyahene\ Oheneba

Kwame Kyeretwie, Mr

Assibi Nahyi, Undersecretary for Agriculture

in the Ashanti Region and

a member of the Amansie

Development Committee.

Mr D. K. A. OforiNuako, Chairman of the

Interim Management

Committee of the Kumasi

Asante Kotoko Football

Club who chaired the

function, called on the

people to take the development programme seriously and contribute generously towards its success.

The special guest of honour of the launching ceremony was the Asantehene, Otumfuo Opoku Ware

II.

Projects envisaged

under the programme include electrification, road

construction, provision of

health and education facilities, pipe-borne water and

establishment ofjrural industries.

According to Mr J. K.

Asibey, a member of the

Amansie Development

Committee, male residents

would pay C400 each, while a female resident would

pay 0300.

He said,those resident

outside the town would

pay 01,000 per male and

(2600 per female.,— GNA.

/9317

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11
JPRS-SSA-85-112

14 November 1985

GHANA

RAWLINGS CALLS FOR RAPID IMPLEMENTATION OF POLICY

Accra PEOPLE'S DAILY GRAPHIC in English 5 Oct 85 p 1

[Text]

THE Leader ofthe Revolution, Flt-Lt J. J. Rawlings,

has reiterated that the 31st December Revolution

was not intended to put new wine into old bottles.

On the contrary, it remains the, unshakable determination of the revolutionary leadership to put new wine

into new bottles. .

The Chairman of the PNDC who was opening the first

of a series of seminars for Secretaries of State and some

heads of public boards and corporations at the Military

Academy and Training School at Teshie yesterday, said

that this position is clearly reflected in the 1982 Guidelines which state that "any transformation in order to be

truly revolutionary must aim at a complete and radical

change of both the existing social, political and economic

structures and the human elements within the government machinery."

He said that the urgent task facing the government and

the various organs c4 the revolution makes it imperative

that workable, procedures, unhampered by bureaucratic

delays, should be devised for the prompt implementation

of government policies at all levels.

The Leader of the Revolution further said that the

cardinal objective of the total economic and sociali

transformation of the Ghanaian society calls for informed, dedicated and disciplined leadership adding that the

leadership must correct its own lapses before it has the

moral authority to correct the lapses of others.

Flt-Lt Rawlings said that there is always the danger of

some secretaries Decoming so busy with their own sectors;

of responsibility that they might lose sight of the whole

picture, or even begin to feel resentment when a colleague

touched upon an area which they regard as their exclusive

territory.

He stated that it is in this spirit that the series of

discursive seminars which is a useful blend of military and

management techniques have been organised to give

further opportunities to share ideas and experiences.

The PNDC Chairman concluded that he expected that

this programme would not be like some previous ones

which, as soon as they were finished, were forgotten about

because of lack of coordination and follow up. t -. Those present ar.<&he'ceremony were PNDC

i members including the

Force Commander, MajGen Arnold Quainoo, the

Chairman of the Committee of Secretaries, Mr P. V.

Obeng and Capt Kojo Tsikata.

Others were the Chief of

Staff, Col E. K. T. Donkoi

and the Commandant of

the Military Academy.

Brig Mensa-Woode.

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12
jPRS-SSA'85-112

14 November 198:>

GHANA

NEW SECRETARIAT IN MINISTRY OF LABOR AND SOCIAL WELFARE

Accra PEOPLE'S DAILY GRAPHIC in English 16 Oct 85 pp 1, 4

[Article by Faustina Ashirifie]

[Text]

A PERMANENT secretariat (or remuneration and conditions ot service has been set up under the Ministry of Labour and Social Welfare

as part of the ministry's restructuring exercise, Mr Ato Austin, the Labour Secretary has announced.

The body, he said, would co-ordinate proposals for improved conditions ofservice of public

organisations which depend on subvention

based on the budget in anticipation of new

budgets.

Mr Austin expressed the hope that through

this framework, a democratic apparatus which

would involve workers in apre-budget discussions, especially on subjects affecting their

working conditions would emerge.

.The Labour Decree NLCD 157 is being

renewed to give thiainnovation a legaf backing,

he assured.

'fhe Secretary was opening in Accra yesterday, a week-long seminar organised jointly by

the Gliana National Association of Teachers

(GNAT) and Teachers and Educational

Workers Union (TEWU) of TUC under the

sponsorship of the International Federation of

Free Teachers Unions (IFFTU).

The seminar themed, "Trade Union Educa-

"tion"Ts aimed at tosienng oetter understanding

and stronger working relationship between the

GNAT and TEWU with the view to developing

joint strategies for securing improved working

conditions and sound industrial relations

within the educational sector.

Mr Austin who referred to the long history of

the division between the TEWU and GNAT

noted that the Industrial Relations Act of 1965

has not been able to resolve the problem of

which of the two bodies should serve employers

in private schools.

For instance, he pointed

out that with the development of private schools

and educational institutions, the dividing line bet-!

ween teachers and educational workers have become blurred.especially in;

the area of negotiation for

better conditions.

To rectify the existing

errors in the Labour Act,

Mr Austin further hinted

that his ministry has considered the setting up of a

permanent tripartite committee under the chief labour officer to deal with all

problems relating to demarcation and freedom of

association.

He reminded the participants who were drawn

from the two associations

!from all over the country

and representatives from

some unions in the country

of some of the lapses in the

bargaining procedures in

which the government is

concerned.

"In fact, the principle of

bargaining which from inception has been confrontational between the

working class and employers had been extended to

the state sector by default"

adding that social growth

has outpaced and rendered

outmoded those laws of

unionism.

Mr Austin therefore

stressed that the princiole

!of unionism as an instrument of confrontation

must now give way to collaboration and participation in the national democratic struggle in seeking

solutions to the country's

problems.

In a welcome address,'

Mr C. K. Ahiable, General

Secretary of TEWU expressed the view that the

separation^ of the two associations has hampered

their progress.

, The purpose of the seminar, according to him is

therefore to bring together

the top leadership of the

two associations to expose

them to the socioeconomic problems of the

nation and to find out how

to deal with the challenges

they pose from organised

labour stand point.

The IFFTU representative at the seminar, Mr

Peter Mitchell stressed

that developing countries

unionists now need more

general education for their

children and' adults to be

able to continue the struggle for economic freedom.

19311

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13
JPRS-SSA-85-112

14 November 1985

GHANA

LUANDA NON-ALIGNMENT CONFERENCE PRAISED

Accra PEOPLE'S DAILY GRAPHIC in English 4 Oct 85 pp 1, 5

[Article by K. Baako-Boakye]

[Text]

THE. recent nonaligned conference

held in Luanda

ended on a positive

note with member

countries pledging

an increased support for the libera--

tion struggles going on in South

Africa, Latin America, and Palestine.

As a matter of fact the

very holding of every NonAligned conference is in

itself a success for the movement, fory there are forces which have always

sought either to prevent

the Non-AHgned Movement from growing further

or to divide its ranks.

The holding of the conference in Angola itself is

significant because that- is

one ofthe countries chosen

by imperialist and reactionary forces to do battle

against the forces of "progress and independence. It

is instructive that not long

after the Angola meeting

the racist South African

government admitted publicly that it gives support

to bandit organisations

such as UNITA in Angola

and the RENAMO in

Mozambique.

Of course it is not only in

South Africa that powerful

interests give support to

counter-revolutionary forces working to undermine

the legitimate aspirations

of the people. As everyone,

knows the United States

gives support to the "contras" in Nicaragua. Indeed

the 'contras' are led by

CIA agents and other mercenaries. At the same time

by its unconditional support for the government

forces in El Salvador the

US makes it difficult for a

genuine reconciliation to

take place in El Salvador.

Given the fact that

groups such asAJNITA,

RENAMO, the Racist Regime in Pretoria, the repressive regimes in El Salvador and Chile and the

Zionist State of Israel constitute a network of anti

revolutionary forces,'it can

be said that the nonaligned conference's condemnation of aparthied

implies a condemnation of

all its allies.

Today more than ever

before the Non-Aligned

Movement has embarked

on the path progressing by

siding with those who are

struggling against imperialism, colonialism, neocolonialism, racism, Zionism and apartheid.

Such commitment on

the part of the movement

is today one of the main

guarantees for world peace.'The Non-Aligned Movement has consistently

supported the initiatives of

.progressive mankind for

disarmament, detente and

peace.

This is a necessary

stand. In the face of the

aggressive military buildup in the west including

the Star Wars project, it is

necessary for the small

countries of the world

which' are grouped in the

Non-Aligned Movementto

ensure that the world's

available resources will De

used for usefulpurposes.

Recent acts of aggression by South Africa and

Israel underscore the concern expressed at the Angolan meeting. Furthermore they serve as a signal

to the Non-Aligned Movement that this is the time

for it to stiffen its back and

i deal a conclusive blow to

the evils that confront our

peoples in their effort to

develop.

/9317

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14
LACK OF BOARD HINDERS INVESTMENT COEE IMPLEMENTATION

Accra PEOPLE'S DAILY GRAPHIC in English 8 Oct 85 pp 1, 5

[Article by Wendy Asiama]

[Text]

JPRS~SSA-85*112

14 November 1985

GHANA

THE non-existence of a

board to ensure the full

implementation of the

1985 Investment Code is

detrimental not only to

the Investment Centre

but to the country as a

whole.

Despite the encouraging

response and enquiriesreceived from the international community after the

promulgation of the code

in July, this year by the

government the absence of

a board and a chief executive to speedily handle the

affairs of theboard is creating problems in the effective implementation of the

code.

Dr Stephen Adei, head

of the Research Department of the Ghana Investment Centre made these

observations when answering questions from the

audience at a symposium

on "Ghana's' Investment

Code 1986" at the National

Investment Bank in Accra

yesterday.

Mr Adei told the audience that under the present code the composition

of the board has been altered significantly with the

provision of a seven

member board instead of

13 to be selected by the

PNDC.

Under the code, the governing body of the centre

*hall be the board which

ihall be responsible for the

discharge of the business

and functions of the centre.

It will be mads up of a.

chairman and six other

persons, including a vicechairman and a chief executive all of whom shall b«

appointed by the PNDC

having regard to their

sound knowledge or practical experience of matters

pertaining to investments

in Ghana.

Apart from the chiel

executive all members ol

the board shall hold office

for a term of three years

and shall be eligible foi

re-appointment while a

member may at anytime

resign his office by writing

to the PNDC.

In his address to the audience Mr Adei said the

success of the overall Economic Recovery Programme in stimulating the economy is to make investments attractive and ajso

to store the acute liquidity

problems facing trve economy in these transitional

period. f

He stated. "You as

bankers know the inve»

stors problems.more than I

do for it is important to

preserve the gains of

macro-economic reforms

of the government as well

as seriously addressing

ourselves to the adverse

effects of the policies".

Mr Adei called for a

competent permanent national economic think tank

as a minimum prerequisite while using IMF

— IBRD and other experts

to complement equally

capable local expertise.

AnvtTiing short of this,

he said results in a situation where the terms of

agreements will be drafted,

negotiated and implemented by other parties as

is done in some developing

countries.

Mr Adei indicated that

the success of the code will

depend on the regulations

to develop operational

yardsticks while the competence of personnel of the

centre will also determine

the quality of their advisory role.

He said the past five

years has soen the resignaX

tion of several pf the tech-N

nical staff of the centre riot

only to travel abroad but

to leave and work with

other financial institutions,

due to poor service condition«.

Describing the code as

one of the economic instruments 6f government

policy, Mr Adei said its

success will be conditioned

by fiscal and monetary policies of the government,

the stability of the socio-

<>conomic system of the

country, the opportunities

lo make genuine profits

and freedom to enjoy one's

labour as well as the level

of industrial peace in the

economy.

"It is in~the light of these

that we must judge an investment code." Mr Adei

concluded.

At the time of going, to

press, it had not been poss-.

ible to contact the Secretary for Finance and Economic Planning for his

comment on this utterance.

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15
FOREIGN SECRETARY OBED CALLS FOR DONOR AID

Accra PEOPLE'S DAILY GRAPHIC in English 5 Oct 85 pp 1, 4/5

[Article by Eugene Forson]

[Text;

GHANA has appealed

for more assistance

from donor countries

to supplement its efforts in reviving the

economy.

The Secretary for Foreign Affairs Dr Obed

Asamoah, told the U.N.

General Assembly on

Thuisday that the Ghana Government had

made "strenuous efforts"

through the implementation of policy adjustments to improve the

national economy.

"While some international support which we

acknowledge with appreciation has been forthcoming, this falls far

short of levels required

and is still not commensurate with the sacrifices

of the Ghanaian people,"

Dr Asamoah declared.

A third Ghana consultative group meeting organised by the World

Bank is to be held in Paris next month. Donor

countries, financial institutions and aid agencies

expected at the conference will be making new

•pledges of aid. It is not

immediately known how

much Ghana is looking

for.

Dr Asamoah told the

General Assembly in the

world debate: "Unless

the international community seriously complements our efforts the

statements of support we

have heard will have a

painful and bitter ring

not only in our ears but

also in the ears of all

those who are also striving to improve their economic lots."

Dr Asamoah also said

the international community should address itself

urgently to Africa's developmental needs while

"continuing its commendable efforts" to meet the

remaining emergency requirements of drought

stricken states.

He said it was time for

developed countries to

translate their statements

of support and concern

into actual commitments

of resources. The Foreign

Affairs Secretary again

stressed that these countries bore "special responsibility" to complement

adjustment efforts alreadymade by African and other

developing countries

through measures to facilitate restoration of financial flows, alleviation of

debt burden and improvement of commodity prices.

JPRS-SSA-85-112

14 November 1985

GHANA

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16
JPRS~SSA~85-112

14 November 1985

GHANA

UNCOMPLETED PROJECTS ADOPTED BY GOVERNMENT OFFICES

Accra PEOPLE'S DAILY GRAPHIC in English 8 Oct 85 pp 1, 5

[Article by Imoru Yakubu]

[Text]

THE Offices of the Coordinator, Investigations and Tribunals

and the Revenue Commissioners nave

jointly adopted 10 uncompleted projects

dotted in the 10 regions of the country

for completion.

As a result, the offices

have attached an official

to each of the 10 projects

to ensure their completion.

The projects include

KVIP places of convenience, school buildings,

rural houses for workers

and market stalls.

The adoption of.the

projects followed the

PNDC's request to Secretaries of State to

adopt uncompleted projects and ensure their

completion.

This was disclosed to

newsmen by a member of

the Office of the Coordinator, Investigations

and Tribunals Togbui

Dzekley VII, when he visited an uncompleted

six-classroom block at

Nayagnia near Navrongo

in the Upper East Region

which the office has

Togbui Dzekley who is

also a Paramount Chief

of the Battor Traditional

Area further disclosed

that each official attached to any of the projects

would evaluate it and

submit a report to both

the Ministry of Finance

and Economic Planning

and the Ministry of

Works and Housing for

necessary assistance for

the completion of the

project.

Asked why the Nayagnia project could not be

completed since it was

started in 1978, the

chairman of the Town

Development Committee (TDC), Mr S. P.

Weejong, explained that

the project which started

through communal labour had to be stopped

because of a conflict between the then PDC and

members of the TDC.

According to him, the

project was abandoned

at the foundation level

when the two parties

could not compromise a

misunderstanding.

The chairman, however,

expressed his preparedness

and that of his people to

assist Togbui Dzekley to

complete the adopted project,.

The six-classroom block

was initially estimated to

cost (2100,000 but officials

of the Social Welfare and

Community Development

who were present at the

site said more than C2

millioniwouldlnow be needed to complete the'project.

Meanwhile, Togbui

Dzekley has appealed to

all Ghanaians connected

with all the adopted projects to bury their differences and create a healthy

atmosphere for the execution of the task.

/9317

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17
JPRS»SSA»85-112

14 November 1985

GHANA

A. LANG PROBE REVEALS CORPORATE CORRUPTION

Accra PEOPLE'S DAILY GRAPHIC in English 7 Oct 85 pp 4/5

[Text]

THE sub-committee of

the National Investigations Committee which

probed allegations

against the management and board of directors of A Lang Limited has submitted its report to the government.

The committee found

that between 1970 and

1984, the actual tax liabilities of A Lang were evaded

through the operation of a

number of accounting devices, the manipulation

and falsification of accounting books, and deliberate disregard for proper

accounting procedures.

The committee further

found that profits made

made bv A Lang were

deliberately reduced by

the artificial inflation of

budget costs through the

creation of fictitious transactions.

Some of the devices used

by the company included

payment of non-existent

persons and enterprises for

the alleged supply of unspecified materials to various construction sites, the

creating of enterprises by

the directors to which monies were paid for services

allegedly rendered to the

company, the use of interbranch debits which recorded non-existent purchases by one branch of

the company for another

for which payments were

made, and the recording of

transactions under curious

and dubious accounting

headings.

For example, on one

job. categories of expenses

were differently recorded

as site expenses, additional

site expenses, miscellaneous expenses and consultation fees.

All these, in fact, represented monies expended by

the top management.

The investigation also

disclosed that the company had over the years

written off for tax purposses as bad debts, monies

owed it for jobs done for

several prominent Ghanaians including late Dr K.

A. Busia, Mr R. A. Quarshie. Mr K. A. Gbedemah,

late Mr Krobo Edusei, late

Mr Imoro Egala, Mr E. K.

Mintah, Dr Agble, Mr K.

Anane Binfo, Colonel

George Slater, late Lt-Gen

F. W. K. Akuffo, Mr E. K.

Nkrumah, Mr G...K. Turkson, and Mr Maxwell

Owusu.

The committee also

discovered the existence of

a secret account referred to

in the company's correspondence as the 'Norm'

account in which secret

profits for tax purposes

were kept.

Between 1981 and 1984

alone, the Norm account

was used to siphon off a

total of C21,241,959.

Between 1978 and 1980,

the company abused the

exemption facility granted

to the Crop Research Institute for the importat;

on

of materials for the construction and equipping of

the Nyankpala Agricultural Research Station by

bringing in dutiable items

for the use of the company

and private individuals.

These included building

materials for the private

house of Dr Agble, the Director of the Crop Research Institute, swimming pool equipment for Dr

Werner Lang's residence,

and cartons of wine, provisions and various spare

parts.

Again when the company, owing to extreme

shortage of building materials, was permitted to

procure up to DM

5,025,000 materials, machinery and various spare

parts, the company obtained customs exemptions by falsely mispresenting the items as having

been sent free by the West

German government in accordance with the Technical Agreement.

The committee has also

established the existence of

an unholy relationship

between A Lang Limited

and three Swiss registered

companies — Witschi Ltd,

Witschi International

Company and Wareltex

Ltd.

Although none of the

companies is registered in

Ghana, they have regularly supplied items ranging from spare parts to

food items to A Lang.

Even though the imports originated from Europe, they were all covered by cedi invoices which

the available evidence puts
at 012,156^885 based on

black market rates.

The companies did not

have agents in Ghana. A

Lang has, however, over

the years bought a total of

09,884,586.46, leaving a

balance or (£2,272,298.73 to

their credit in. the books of

A Lang Limited.

Mr Alfred Lang, a director of the company, left.

Ghana in 1979, and has not

returned to Ghana since.

During all these years of

absence, howe.ver, he

transmitted his passport

per special messenger

every year to the Immigration Department for

renewal ofhisresidence

permit, thus, creating the

impression that he was resident in Ghana and thereby possibly evading payment of Swiss taxes.

Three officials of the

Immigration Department,

Messrs Martin Attitsogbui, Dovie J. Koomson and

G. K. Gyama-Addo, routinely renewed the residence

permit even though a simple inspection of the passport would have revealed

that Alfred Lang was neverin Ghana.

This device also enabled

the personal 'remittance

quota of Mr Alfred Lang to

be regularly transferred to

him in Switzerland.

Between August. 1979

and September, 1984, SFR68,826.35 was regularly

transferred to him using

this device.

A Lang Limited also illegally made transfers to

Dr Werner Lang and

Walter Merz, both children of the principal expatriate shr reholders,

without the approval of

the Investment Policy Implementation Committee

in violation of the provisions of the Investment

Policy Decree,

NRCD3129.

Government has accepted the findings and recommendations of the NIC

and has directed as follows:

The amount of

043,239,463.47 representing among others, Builac

consultancy fees, credits to

directors' personal accounts and inter-branch

debit notes be taken as

additional income of the

company and taxed notes

be taken as additional income of the company and

taxed accordingly with appropriate penalties.

The following directors

and top management of

the company, Alfred Lang,

Karl Merz, Dr Werner

Lang, Walter Merz Eric

Stuber, Neinz Ammer,

Helmut Kolakowski and

Peter Haller are to appear

before the ORC for vetting.

The Director of Crop

Research institute, Dr Agble and A Lang Limited are

to be held jointly and severally liable for payment

of customs duties assessed

in addition to the penalty

.totalling «28,442,249.52.

Dr Agble is to be redeployed in a nonexecutive position.

Since the three Swiss

companies — Witschi Ltd.,

Witschi International

Company and Wareltex

Ltd., did not have agents or

representatives in Ghana

but did business with A

Lang Ltd., the company

deemed to have been agent

of the three Swiss companies are to pay tax on the

business they did which

turnover amounted to

012,156,885.19.

The balance of the proceeds of the trade amounting to 02,272,298.75 still

reflecting in the books ofA

Lang Ltd be confiscated to

the state in accordance

with section 52 of PNDC

Law 42.

Six vehicles imported

into the country under the

deal are confiscated to the

state.

A Lang is to be held liable for the repatration of

an amount of Swiss Franc

85,882.35. They are entitled to by virtue of work

done as sub-contractors for

Witschi Ltd. in respect of

the Kpong-Tamale project.

A'Läng is held responsible for the repatration of

Swiss Franc 68,826.35 being illegal transfers to.

Alfred Lang between 1979

and 1984.

Immigration officers.

Martin Attitsogbui, Dovie

J. Koomson and G. K.

Gyama-Addo are to be

disciplined for laxity in the

performance of their official duties. It is noted that

they have already been

dismissed from the Immigration Department by the

Secretary for Interior.

The ca.se docket in repect of Alfred Lang, Karl

Merz. George Capecha,

Werner Austin Lang.

Walter Merz, Peter Isch,

PeteY Briinold and all persons involved in the illegal

trade and transfers are to

be referred to the Office Of

the Special Public Prosecutor for prosecution before the public tribunal—

GNA.

79317

CSO: 3400/279

19
JPRS-SSA-85-112

14 November 1985

GHANA

BOTCHWEY CALLS FOR EFFECTIVE ECONOMIC LEADERSHIP

Accra PEOPLE'S DAILY GRAPHIC in English 16 Oct 85 pp 1, 4/5

[Text]

THE Secretary for Finance and Economic

Planning, Dr Kwesi

Botchwey, said in Accra

yesterdaythat Africa is

in dire need of effective

and purposeful leadership in its negotiations

with the International

Monetary Fund (IMF),

the World Bank and

other donor institutions.

This, the Secretary explained, will compel these

donor institutions to soften their stand in the debt

servicing obligations of

Africa and strive to increase resources made available to the various countries on the continent.

The Secretary was

speaking to newsmen on

his arrival at the Kotoka

International Airport from

Seoul, South Korea, where

he led a three-man economic delegation to the justended 40th. annual conference of the World Bank

and IMF.

The Secretary said he

felt the effective African

leadership was necessary

because while the Latin

American countries were

very cohesive and spoke

with one voice at the conference concerning their

debts and the need for 'an

increase in their resourc.es,

Africanslacked this quality

and appeared disorganised.

This gave the impression

that African crises were

over despite the continued

famine and poor economic

situation, adding that he

will not be surprised if the

donor' countries t^nd jto

concentrate on the Latin

American countries. - *

On the conference itself,

Dr Botchwey said it dwelt

on the seriousness of the

debt situation in the Third

World, the net outflow of

resources to the developing

countries and the protectionist policies of the developed countries

In the light of" these, he

said a group of 24 developing countries called for

more aid from the advanced countries, the removal

of protectionist measures

and soft loans from donor

institutions.

' In,view of the dwindling

resources of the IMF and

the capital base of the

World Bank, the developing nations called for increased provision of resources to the two institutions by the developed na--

tions but the Secretary

pointed out that the United States resisted this onf

the basis of the 29 billion

dollar proposal it made for

developing countries.

According to the American proposal, 20 billion

dollars was to be loaned to

developing countries by

commercial banks while

the World Bank and other

donors were to make

available nine billion dollars, the Secretary said,

adding that the proposal

was inadequate since developing countries needed

soft long-term loans which

the commercial banks will

not provide.

Dr Botchwey said Ghana held preliminary

discussions with the IMF

and the World Bank on the

content, structure and the

form of future relations

concerning the assistance

Ghana is receiving for her'

economic and developmental efforts.

Dr Kwesi Botchwey said

the prospects for a continued World Bank/IMF

lending to Ghana were

bright particularly with

regard to support for the

three-year development

plan to be launched at the

end ofthe first phase ofthe

Economic Recovery Programme in December.

The Secretary cautioned, however, that in view of

the fast diminishing resources of the world, lending bodies and the competition for such scarce re-

.sources. there was a great

need for an internal mobilisation ofresources for the

development programme'

whilst efforts were being

made with the two institutions to close the gap between the low income earnings and increasing prices.

The Secretary said he

discussed with the two financial institutions and

other donors about the

prospects of the next donors consultative meeting

.on Ghana in Paris next

month and said the responses we're good even

though some of the committed resources in the two

previous donors meetings

had not yet been utilised

due to technicalities.

. Dr Botchwey explained

thatsome ofthe areas to be

looked into critically during the next donors conference are tourism, oil exploration, education,

health and a continued

support for the export and

industrial sectors.

The other two members

of the delegation, Mr Ato

Ahwoi, Secretary for the

Revenue Secretariat and

Dr J. S. Addo, Governor of

Bank of Ghana, are yet to,

return.

Mrs Theresa Owusu,

Under Secretary for Finance and Economic

Planning, met Dr Kwesi

Botchwey on his return.

/9317

CSO: 3400/279

20
JPRS-SSA-85-112

14 November 1985

GHANA

BAN ON BORDER LAND SALE, LEASE TO ALIENS CALLED FOR

Accra GHANAIAN TIMES in English 18 Oct 85 pp 1, 3

[Article by Kush Agudetse]

[Text] The Jasikan District Secretary, Mr U.S. Clarke, has advocated

a law making it an offence to sell or lease land along the borders to

aliens for cocoa farming.

He also suggested that the law which gives aliens leasehold for 50 years

after which the lease forfeits any right of leasehold should be rigidly

enforced.

These two measures, he said, were needed to minimize the high rate of

cocoa smuggling from Ghana.

Speaking at the launching of the Volta Regional cocoa spraying and antismuggling exercise here on Monday, Mr Clarke called on the COCOBOD

to intensify its feeder road programme, especially along the borders to

allow accessibility to the cocoa growing areas.

The Secretary noted with concern the situation where cocoa farmers had

the least access to bank credit facilities as a result of which they were

forced to fall on money lenders who took their farms as pledges for meagre

sums of money.

He, therefore, called on the GAFACO-OPS organizers of the function to

arrange with the COCOBOD to consider opening the main cocoa season

earlier so that the farmer could at least obtain some funds to pay their

children's school fees.

In an address, Flt-Lt Joe Atiemo, Deputy Chief Executive (Operations) of

the COCOBOD, announced that the Board was considering an insurance cover

for cocoa, coffee and shea-nut farmers.

/9317

CSO: 3400/278

21
EXPORTS EXCEED IMPORTS FOR FIRST TWO QUARTERS

Accra PEOPLE'S DAILY GRAPHIC in English 7 Oct 85 pp 1, 5

[Text]

JPRS-SSA-85-112

14 November 1985

GHANA

GHANA imported goods worth C 18,586 million

during the first six months of this year while her

exports amounted to £18,607 million during the

same period. .

Corresponding figures for the same period last year

shows that, the country's imports were worth </:i8,98l

million while the exports amounted to C9.591 million.

These'figures show that the first half of the year 1985

ended with a surplus of £21 million on commodity trade

compared with the surplus of C610 million during the

corresponding period of 1984.

According to "Statistical Newsletter" of the Central

Bureau of Statistics (CBS), the year 1985 started with a

large deficit of <Z 1,532 million in January but it declined to

C'134 million in February.

However, in March. 198

5. Ghana had a surplus of

C 1,333 million on her com-

, modity trade and it was

followed by a surplus of

I C310 million in April.

In May, 1985,'however,

ihe recorded a deficit of

C'842 million but it was

followed by a surplus of

C886 million in Jufle, 1985.

Out of the total exports

of C18.607 million during

the first half of 1985, cocoa

beans accounted for 71.8

per cent and cocoa product« formed 4.1 per cent.

The exports of gold accounted for 11.8 per cent

while the exports of electricityl(excluding the sales'

to VÄLCO) formed4.7 per

cent of the total value of

commodity exports-. The

percentage share of diamond, manganese and

bauxite was 0.2. 1.3 and 1.5

respectively.

On the other hand, out

of the total imports of C18

,586 million during the

same period, the imports of

crude petroleum (excluding the purchases of the

domestic crude petroleum)

accounted for (?5,263 million or 28.3 per cent.

The newsletter observed

that the value of imports

and exports were much

higher during 1985 compared with the corresponding months of 19'84.

This was partly due to the

fact that the value of the

cedi was adjusted significantly several times during

these vears.

/9317

CSO: 3400/277

22
COCOA PRODUCTION ESSENTIAL FOR ECONOMIC RECOVERY PROGRAM

Accra PEOPLE'S DAILY GRAPHIC in English 12 Oct 85 p 8

[Article by E.A. Andam]

[Text]

JPRS«SSA~85~112

14 November 1985

GHANA

COMMODORE Steve

Obimpeh, chairman of

the National Mobilisation Programme (NMP),

has reminded cocoa

workers and farmers

that the success of the

cocoa rehabilitation

programme which was

launched in 1983 is a

very crucial factor in

the government's Economic Recovery Programme (ERP).

He explained that the

crop whose production has

been experiencing a steady

decline over the last 10

years, is the back-bone of

the country's economy.

He was addressing a

rally for farmers, and cocoa workers at Agona

Duakwa after launching

this year's Central Regional mass cocoa spraying

exercise on a 35-hectare

farm at Yawdade near

Duakwa on Thursday.

The chairman noted

that one of the most important factors militating

against the upward trend

of the cocoa industry is its

heavy dependence on migrant labour, and advised

that a measure be instituted to ensure that labour

and manpower remained

in the rural areas to engage

in productive agricultural

pursuit, including cocoa

production.

He said it is in that respect that he highly commends the volunteers, who

have since the launching of

the rehabilitation programme been together to

assist the nation's ageing

farmers to rehabilitate

their cocoa farms.

The chairman noted

that if the volunteers and

other young people could

remain in the rural areas

and farm and also provide

labour for the cocoa industry, remarkable results

could be achieved in the

quest to improve the industry.

Togbe Kwesi Sasraku II,

the national president of

GAFACO-OPS, who also

addressed the gathering,

noted the damage that

smuggling is doing to thv

country's cocoa industry.

He said it is heartbreaking to read from the

dailies that spraying machines and insecticides

which were imported with

the nation's limited foreign

. exchange to boost production of cocoa were being

smuggled to neighbouring

countries who have outstripped Ghana in the production of the crop.

Togbe Sasraku said these acts of sabotage have

far-reaching implications

as they mean using what is

left of the country's meagre foreign exchange to

help other nations develop.

He asked that all those

caught in such acts should

not be spared.

/9317

CSO: 3400/277

23
NORTHERN REGION REPORTS MIXED CROP YIELDS

Accra PEOPLE'S DAILY GRAPHIC in English 12 Oct 85 pp 1, 4

[Text]

^S~SSA-85~112

-^ November l98r

GHANA

IN spite of the destruction of several hectares

of rice fields at the Katanga Valley and Nasia,

by floods, the Northern

Region is poised for a

good rice harvest this

season.

^However, maize production in the region will full

drastically this season due

to the heavy rainfäll which

has destroyed maize farms

in the valleys.

This was disclosed to the

Ghana News Agency in an

interview in Tamale yesterday, by the Northern

Regional Agriculture Officer, Mr Stanley Y. Anane.

He said out of a targeted 30,000 hectares of rice,

the region cultivated

27,000 hectares.

He said the target could

not be reached because

farmers who ploughed a bit

late could not get into their

fields to plant because they

became water-logged with

the sudden heavy rains.

Mr Anane, who is also

the acting regional director

of agriculture, explained

that the only fear now

would be that if most

farmers planted the early

maturing variety of ricie

and still had water in their

fields at the time of harvesting, then it would pose

a serious set back for, as he

put it, "the rice will shatter".

On maize, he said because of previous years'

experience,,many farmers

planted in the valleys and

when the rains fell heavily,

the farms were destroyed.

Mr Anane said the region's target was 57,000

hectares but cultivated

only 41,500 hectares.

In the meantime, he said

the Economic and Marketing Research Department of the ministry has

been requested to survey

all farms to find out the

actual hectares which

would be harvested.

/9317

CSO: 3400/277

24
JPRS"SSA~85»112

14 November 1985

GHANA

FOOD OUTPUT EXPECTED TO EXCEED TARGET

Accra PEOPLE'S DAILY GRAPHIC in English 4 Oct 85 pp 1, 5

[Article by Albert Sam]

[Text]

DR. I. K. Adjei-Maafo Secretary for Agriculture, has announced that the country exceeded all but one of the 1985 national

targets set for agricultural crops.

He described the general food output this year as

.exceptionally encouraging compared to what was regarded as a bumper harvest last year.

Dr. Adjei-Maafo announced this at a farmers' rally at

Abofour in Ashanti on Wednesday.

He gave statistics to support his claim and attributed

the break-through to good rains, efficient and effective

implementation of the government's agricultural programme and the fortitude and co-operation of farmers.

According to the Agriculture Secretary, cassava production this year exceeded last year's by 300,000 metric

tonnes; yams by 50,000 metric tonnes; both plantain and

cocoyam production shot up by 50 per cent while rice

output rose from 60,000 to 95,000 metric tonnes.

He said groundi.uts, millet, beans and other crops

recorded remarkable Increases. However, there is an

anticipated marginal drop in maize production following

a decrease in the number of hectares cultivated this year

as against last year.

Dr Adjei-Maafo explained that in spite of this, maize

yields were very encouraging and that the anticipated,

drop would not have any significant impact.

In the area of industrial crops, Dr. Adjei-Maafo said

from a position of an importer in respect of oil palm, in the

1970s' Ghana's production had steadily risen from 13,000

metric tonnes in 1982 to 42,000 metric tonnes as at last

month.

He explained that with the country's annual requirement of 39,000 metric tonnes and prospeets of even

increasing output in the succeeding years, indications

were that Ghana would export oii palm as from next year

in addition to maize and yam.

The Agriculture Secretary attributed the success story

of the oil palm industry to the government's policy of

massive rehabilitation of neglected state oil palm plantations most of which have been/redeemed from semi and

virtual forests and have started bearing fruits.

/9317

CSO: 3400/276

He explained further that an export scheme was being

worked out by the Ghana Export Promotion Council

(GEPC) in such a way that exporters will be compelled to

use part of their earnings in the interest of producers

instead of cheating them.

The Agriculture Secretary emphasised that the provision of food storage and preservation facilities were

seriously being tackled and stressed that the export drive

was meant to avoid waste in the system.

Dr. Adjei-Maafo said the groundnut situation was

encouraging apart from the problem of drying and noted

that efforts were being marie to bring in driers to solve this

perennial problem of

groundnut producers.

He announced that the

ministry has in stock a limited quantity'of Wellington boots for farmers and

recognising their exposure

to poisonous reptiles in

their operations, the ministry had ordered more of

the boots and also made

provision in its import programme to enable all

farmers to benefit from it.

The Secretary paid

glowing tribute to Ghanaian farmers for their

hardwork and said as reciprocal gesture, the ministry was seriously considering the introduction of

a massive export programme next year to enable

farmers to derive maximum benefits under the

export retention policy to

boost their morale to step

up production.

The rally was organised

by the Ghana Food Distribution Corporation

(GFDC) primarily to educate the farmers on the

need to sell their farm produce to the corporation

and also to make available

to the farmers goods, including wax prints, matches, matchets and sugar

worth C1.2 million.

The Managing Director

of the corporation Dr. P. A.

Kuranchie disclosed that

three new depots will be

opened in the Äbofour area

next week to facilitate

maize purchases.

He also announced that

because ofthe area'Is excellent performance in maize

production an additional

silo will soon be installed

at Abofour under the European Economic Community (EEC) sponsored

maize drying and storage

project.

25
JPRS-SSA»85-112^

14 November 1985

GHANA

BUMPER MAIZE CROP EXPECTED ON YUGOSLAV ASSISTED PROJECT

Accra PEOPLE'S DAILY GRAPHIC in English 7 Oct 85 p 8

[Text]

THE Kumawuman Industrial Farms

Complex (KEFCOM) expects to harvest 24,000 mini-bags of maize on its

pilot 26,000 hectares agro-based project at Drobonso-Ashanti.

The managing director of the company,

Mr K. K. Kwayie announced this to

newsmen when 257 drivers now being

trained as lorry park guards and volunteers from Kumawu, Bodomase, Besoro,

Woraso and Wonoo assisted in harvesting

the maize on the farm at the week-e:id.

They were mobilised by the Ashanti

Regional Administration, the Kumawu

Traditional Council and the maize evacuation committee to assist KIFCOM

which is a joint agro-based project of the

traditional council and the Social Security

Bank (SSB) with technical assistance

from PKB Agro-Engineering of Belgrade,

Yugoslavia.

Mr Kwayie explained that over 150

hectares of the 256 hectares of maize it

planted has not been harvested because of

rains in the area.

He announced that when the project,

estimated at over one billion cedis is

completed, it would give employment to

over 5,000 workers who would be resettled

at the project site. . Barima Asumadu Sakyi II, Omanhene

of KumawuTraditionalArea commended

the GPRTlTfor assisting in the harvest

and also releasing 10 trucks to cart the

volunteers to the farm free of charge.

He said the project which is one of the

biegest agro-based projects in Africa is of

c-onomic importance to the traditional

area and the nation and callad on the

people of the area to render every assistance in harvesting the maize.

Barima Sakyi also commended Yugoslav experts on the farm for their expertise

and hard work. Mr Kwame Adomako, zonal coordinator of the maize purchases and

evacuation programme who mobilised the

volunteers, assured them that every effort

would be made to assist in harvesting the

maize. — GNA.

/9317

CS0: 3400/280

26
FRENCH TO RENOVATE OBUOM MINES

Accra PEOPLE'S DAILY GRAPHIC in English 18 Oct 85 pp 1, 5

[Text]

JPRS-SSA-85-112

14 November 1985

GHANA

19311

CSO: 3400/276

THE Ministry of Lands

and Natural Resoui^s

has granted a Ghanaian

minerals prospecting

company licence to

reactivate the Obuom

Mines near Lake Bosumtwi in Ashanti Region.

Disclosing this to the

Ghana News Agency in

Accra yesterday, Mr Peter

Gasper Donkor, managing

director of D.G. Peter

Agencies Incorporated,

said his company received

the licence to rehabilitate

the mines closed since 1939

in July this year.

He said the reactivation

would be carried out with

assistance from a French

company — Bureau de

Recherches Geologioues et

Mineres (BRGM) of Paris.

The whole project,

phased into a three-year

period, would cost an estimated 40 million French

Francs.

Mr Donkor said a ceremony, including a durbar

of the chiefs and people in

Amansie East to mark

the beginning of work,

would be held soon at

Obuom 45 kilometres

south east of Kumasi.

Other areas to be covered are Dakabouso and

Obuoso. both in the

Amansie East District.

Mr Donkor said the first

phase costing six million

French Francs would involve complementary exploration works and the

second phase would include drilling, technical and

economic studies.

The third phase will be

the main feasibility study

involving evaluation of

surface and underground

works, analysis and laboratory studies in the project area spanning 129

square kilometres.

The third phase will cost

20 million French Francs.

He said the initial studies have shown encouraging results and local and

overseas banks* have expressed interest.

27
JPRS-SSA-85-112

14 November 1985

GHANA

WOOD, PRODUCTS DESTINED FOR EGYPT, TUNISIA

Accra PEOPLE'S DAILY GRAPHIC in English 8 Oct 85 pp 1, 4

[Article by Kojo Sam]

[Text]

EGYPT and Tunisia

have expressed interest in buying wood and

wood products from

Ghana.

This is the outcome of

fruitful discussions between a two-man Ghanaian timber delegation

which visited the two

North African countries

for 18. days at the invitation of the"Association of

African Trade Promotion Organisation (AATPO), based in Tangiers,

Morocco.

Speaking in an interview in Accra yesterday

on the outcome of the

trip, the leader of the delegation, Mr Timothy

Adjetey, saidGAT International, an Egyptian

timber firm, has already

followed up the discussions and written to the

Ghanaian delegation for

price quotations of Ghanaian timber products.

The Egyptian Chamber of Commerce has also,

requested for quotations

for sapele and walnut.

Tunisia, Mr Adjetey

further disclosed, has'

also asked the Ghana

Timber Marketing Board

(GTMB), to put up

tenders for the sale of.

timber species to enable

Tunisia to assess the volume of timber it can import from Ghana.

Mr Adjetey, who is the

Managing Director of

Modern Furniture Limited and president of

the Ghana Furniture

Producers' Association

(GFPA), further announced that Tunisia

also expressed the desire

to import railway sleepers from Ghana

He said the. two countries discussed the possibility of importing

knocked-down furnitur^.

from Ghana in the future. The Egyptian Coi

operative Society for

Furniture Makers was

particularly interested in

dealing with the GFPA in

knocked-down furniture.

Mr Adjetey explained

that during the tour of

the two countries, the

delegation observed that

the potential market in

North Africa for Ghana's

wood and wood products

is very great and the

country would have to

explore the avenue to

boost her Economic Recovery Programme

(ERP).

"If we are able to break

through the North African market, we can expect a lot of foreign exchange for the nation,"

he stressed.

Mr Adietey, therefore,

called on the government

to send a follow-up delegation to the two countries to concretise the

discussions on trade prospects.

The other member of

the delegation was Mr

Osei Agyemang, Deputy

Managing Director of

Western Timbers at Takoradi.

/9317

CSO: 3400/276
JPRS-SSA»85»112

14 November 1985

MADAGASCAR

BRIEFS

RATSIRAKA IN BEIJING—An economic and technological co-operation agreement

was signed between China and Madagascar on October 5 at the end of the

official visit to Beijing by Malagasy president Didier Ratsiraka, his

third. During his stay he had talks with President Li Xiannan, Prime

Minister Zhao Ziyang and China's top leader Deng Xiaoping, the architect

of current reforms which are of great interest to Madagascar. [Text]

[Paris THE INDIAN OCEAN NEWSLETTER in English 12 Oct 85 p 3]

FRANCE SWELLS FLEET—France has just made a gift to Madagascar's navy of

a tank and infantry landing craft which was formerly in service in French

Polynesia and the nuclear test site of Muroroa atoll. The hand-over was

the occasion for a big ceremony at the port of Antsiranana (the former

Diego Suarez) on September 29. In a speech,' Madagascar's defence

minister Guy Sibon put the total amount of French military aid to

Antananarivo since 1983 at 34,952,000 French francs. France's ambassador

to Madagascar, Alain Bry, expressed the view that "the development of

military co-operation is a sign of the essential trust the two peoples

and their governments place in each other. [Text] [Paris THE INDIAN

OCEAN NEWSLETTER in English 12 Oct 85 p 3]

ABATTOIR PLAN SUNK—For the second time in succession of the European

Economic Community's economic development fund has refused to finance

the project to renovate the abattoirs of Antananarivo, Mahajanga and

Morondova. The fund's financial participation, evaluated at 7.57 million

ECUs (5.53 million dollars) was essential for the project to be carried

out. I.O.N.—This decision will have serious consequences for Madagascar.

The resumption of meat exports to EEC countries, which had been suspended

since last July 1, depended on the rehabilitation of the abattoirs concerned.

In their 1984-87 public investment programme the Antananarivo authorities

calculated that beef exports would increase five-fold by 1987. [Text]

[Paris THE INDIAN OCEAN NEWSLETTER in English 12 Oct 85 p 7]

PLATEAU PROJECT—The project to open up and develop in an integrated

fashion the Mania plateau basin in central Madagascar could soon get under

way. The scheme has been drawn up by the Malagasy AVEAMM association,

which is sponsored by the FFKM, the Ecumenical Federation of the Christian

Churches of Madagascar (see I.O.N. N° 188). Several non-governmental

29
organisations recently visited the site, including Devtour, the Fondation

Fert (French cereal-producers), the French Secours Catholique, the Fondation de France, the Dutch ICCO, and Cathwell of the United States. With

a number of "miniprojects" defined, AVEAMM and the Malagasy FIADEM foundation which represents it abroad should be in a position to receive initial

funds. A delegation has met Prime Minister Desire Rakotoarijaona twice.

[Text] [Paris THE INDIAN OCEAN NEWSLETTER in English 12 Oct 85 p 7]

/9317

CSO: 3400/297

30
JPRS-SSA-85-112

14 November 1985

MAURITIUS

BRIEFS

MALAYSIAN AGREEMENT—Malaysia is to provide Mauritius with technical

assistance in carrying out projects covering the production of palm

oil, rubber and wood. A bilateral agreement on air links is also in

preparation. These are the two principal results of a five-day visit

to Kuala Lumpur which the Mauritian minister for education, Armoogum

Parsooramen, has just undertaken. [Text] [Paris INDIAN OCEAN NEWSLETTER

in English 12 Oct 85 p 8]

/9317

CSO: 3400/297

31
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

PROFESSOR SEES TUTU IN ROLE OF MEDIATOR

Cape Town THE WEEKEND ARGUS in English 12 Oct 85 p 14

[Article by Frans Esterhuyse]

[Text]

WRITER and philosopher Professor Adam Small

says a mediator is needed to resolve the communications logjam between warring groups in the

unrest and to get effective negotiations off the

ground..

He said in an interview there was no better

man for such a role than

Nobel Peace Prize winner Bishop Desmond

Tutu who had, in fact,

declared his readiness to

do so.

Professor Small, head

of the department of social work at the University of the Western

Cane, said power was a

difficult commodity

when it came to seeking

agreement about it. Everybody wanted power ;

on his own terms only.

"Obviously, therefore, the present situation requires mediation. I think it is rather foolish of either the present regime or, for instance, a grouping like the PFP to rely on Chief Mangosuthu

Buthelezi and Inkatha because there you have

one of the power-seeking forces in this whole

co"stellation," he said.

"The only very visible person who may be able

to handle this kind of situation is Bishop Tutu. It

is crystal clear that personal political ambition is

not his scene.

19311

CSO: 3400/292

"He is precisely the kind of man, given also his

stature in the world at this time, who one needs

to try to open up all the blocked lines of communication between different srounines."

This meant the Government would have to

climb down from its position of intransigence.

"Instead of adopting a silly attitude towards

someone like Bishop Tutu, there should be a willingness to start talking to him."

This was an initiative the Government would

have to take since it was in power. President

Botha's earlier failure to receive Bishop Tutu for

talks was "a disastrous step."

Right person

> Bishop Tutu was the right person for the role

of "honest broker" in immediate negotiations to

end the present violence and unrest as well as in

long-term negotiations for resolving the causes of

' tension and finding an acceptable deal for all in

South Africa.

Professor Small said he admired Bishop Tutu

for "coming out squarely on the side of a philosophy of anti-violence." The Bishop had risked his

life and his popularity in taking this stand.

To create the right atmosphere for effective

negotiation, the police and troops would have to

be withdrawn from the townships. Detainees

would have to be released from prison. Discussions were not possible in terms of an inequality

where people were detained.

Professor Small said President Botha's statement that the National Party was committed to

the principles of a united South Africa, one citizenship and a universal franchise, had to be read

in the context of the NP's philosophy of apartheid.

32
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

CONFIDENCE IN FUTURE GRIM

Johannesburg THE CITIZEN In English 24 Oct 85 p 18

[Text ] ' CONFIDENCE in the future of South Africa, among

Blacks as well as Whites, is at its lowest level in years, a ,

survey has found.

Optimism among Whites has dropped from a high of

74 percent in 1977 to the present 47 percent. The figure

for Blacks is much lower— 24 percent, down from 61

percent in 1979.

The survey was conducted among a sample of 800

Whites and 800 Blacks in urban and rural areas.

Financial hardship was listed as one of the main

reasons for the widespread pessimism. Forty-six percent of Whites and 73 percent of Blacks said they were

financially worse off today than in the past.

Only 24 percent of Whites and six percent of Blacks

expect to be better off in a year's time.

Race relations is another problem area. Only 28 percent of Whites and 11 percent of Blacks interviewed , believed the various groups got on well. Most believed

the relationship was deteriorating rather than improving.

Blacks cited the following reasons for this deteriora-,

tion:

';'It Low wages which do not keep pace with increases in

the cost of living;

The shortage of jobs and houses;

• Discriminatory legislation;

• Unrest and the closure of schools;

• The vastly higher standard of living enjoyed by.

Whites; and ;

• Negative White attitudes toward Blacks.

While 76 percent of Whites believe the President is

leading the country well or fairly well, this is down from

86 percent in 1979.

CSO: 3400/249

33
JPRS«SSA»85~112

14 November 1985

SOUTH AFRICA

SACC BLOCK AID FOR KWAZULU

Johannesburg THE CITIZEN in English 24 Oct 85 p 4

t Text] THE SA Council of Churches is

blocking Western church aid for

"humanitarian" projects in KwaZulu because of the rift between

the SACC's leadership and Chief

Minister Mangosuthu Buthelezi.

The latest issue of "Clarion

Call", published by KwaZulu's Bu-j

reau for Communications, high-!

lights the situation. "The SACC

spokesman accused him (Buthelezi)

of being 'something most vile' —;

they accused him of Christian and (

political treachery in' a sustained I

and orchestrated campaign because'

he had chosen to work with his!

people in KwaZulu," an article in ,

the magazine said. . :

"It was forgotten that he opposed

the South African Government at

every turn, that he blocked socalled 'independence' being foisted

on the region," it stated.

"The joint screening committee

of the SACC was the primary tool

used by the SACC to block Christian aid for the programmes of selfhelp development which KwaZulu

and Inkatha were attempting to fos-'

ter," it continued.

It goes on to quote Chief Buthelezi as making an appeal to the

Western churches to avoid being

drawn into Black versus Black conflicts in South Africa and to assist

Inkatha in pursuing "those things in

its aims and objectives with which

the West agrees."

SACC reports show that the organisation funds scores of self-help

projects in South Africa through

the millions of Rands in donations

• it receives annually from donor organisations in the West, particularly

West German churches.

Because of problems in recent

years, relating to accountability of

funds given to various projects, a

system of screening the applicants

for approval for aid was introduced

by the SACC.

But the article makes it quite

clear that Chief Buthelezi believes

the funds are being deliberately

witheld for political reasons.

CSO: 3400/249

34
RURAL TRANSVAAL BLACKS HOLD REMOVALS PLAN PROTEST

Johannesburg THE CITIZEN in English 24 Oct 85 p 11

JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

[Text] REPRESENTATIVES

of seven Black Transvaal

communities, affected by;

the Government's homelands consolidation plan,

met in Johannesburg yesterday in protest against

removals or restructuring

homeland boundaries to

include them. , The meeting and Press|

conference was organised

by the Transvaal Rural

Action Committee (Trac)

who slammed the consolidation proposals as a grim

reminder of what seems

to be an unshakable determination to go ahead

with the Bantustan policy

as a central tenet of the

grand apartheid vision.

The new proposals

were criticised as "land

juggling for the benefit of

homeland leaders at the

expense of the people,"

and a system' of "prizes

and punishment being

dished out by the South

African Government to

more or less favoured

Bantustans."

Among the new proposals are:

• 100 000 Pedi from

Moutse are to be removed into KwaNdebele

where they will be an ethnic minority;

0 the ethnically mixed

communities of Geweerfontein and Bloedfontein

CSO: 3400/249

are to be removed from

their land and settled in

KwaNdebele and the

empty land transferred to

Bophuthatswana;

# the Tswana community of Machakaneng on the

border of Bophuthatswana is to be dispossessed of its land and

moved even though it is

prepared to be incorpori ated into Bophuthatswana.

The community representatives who met yes-

"terday were from Machas

kaneng, Bloedfontein,

Moutse, Acornhoek, Mathopestad, Motlatla and

the Seheris of Rasekwalestad.

All rejected outright

any suggestion of moving

their communities from

their homes and land

which they had occupied,

in some cases, since the

past century.

"Were the Government seriously reconsidering apartheid, it

would surely allow the

status quo to remain

instead of starting a new \

plan to forcibly remove

thousands of people", the

Trac statement said.

While various "hopeful

things" had occurred in

j South Africa over the

past few months, including the State President's

: announcements of citizenship reform and the

recommendation that influx control be abolished,

Trac said the new consolidation proposals * had

"smashed" all optimism.

"The proposals are bizarre not only because of

their timing. They flout

one of the most basic

principles of apartheid —

ethnic identity," it said.

It also accused homeland leaders of "complicity", without which the

proposals could not go

ahead.

In contrast to Chief

Minister Mabusa of the

Eastern Transvaal's stand

against removals» which

had saved various communities, Trac said President Lucas Mangope

could "no longer hide behind his argument that removals are the sole responsibility of the South

Africa State."

Many Black communities were encouraged by

the State President's citizenship announcement

and wanted to remain formally resident in White

South African to claim

full citizenship in the future.

"The homeland consolidation proposals seem

to be an attempt to prevent this and ensure that

as many communities as

possible lose their perma^

nent residence and therefore political rights in the :

Republic of South Africa", Trac said.

35
AUSTRALIA PREFERRED PLACE FOR EMIGRANTS

Johannesburg SUNDAY TIMES in English 13 Oct 85 p 11

[Article by Angus MacMillan]

[Text]

JPRS-SSA~85»112

14 November 1985

SOUTH AFRICA

SIR Laurens van der Post

says Australia is a dumping ground for failed South

Africans.

Whether he is right or

wrong is beside, the point.

Who am I to judge Prince

William's godfather anyway?

What is pertinent is that

the Australian embassy in

Pretoria would possibly be

I bankrupt if its incoming calls

were outgoing.

Industry constantly leads

us to believe that there is a

dire skills shortage, and it

has certainly been exacerbated in recent months as j

hundreds of valuable people

have said their farewells to

the land of green and gold.

Arm and leg

Many of those who have

decided to seek pastures new

have headed Down Under to

what they believe is a land of

similar climate and living

standards.

It is costing most emigrants an arm and a leg to

leave sunny SA, a major reason why emigration is only a

trickle — thanks to a Mickey

Mouse rand.

While net Immigration

outweighs emigration rates

substantially, the gain for

South Africa is more than

70% down on the halcyon

days of 1981, when 40 000 :

immigrants took out permanent residence here.

Though the numbers of SA

residents leaving the country

are not substantial, inquiries

by potential emigrants are

cause for concern.

Nagged

The fact that thousands of

people who had previously ,

never contemplated making

tracks are doing the rounds

at embassies is a sign of the :

times.

Companies with interna- ;

tional principals are being

nagged for transfers, removal firms are being asked for , quotes, radiologists are doing ; well out of chest X-rays,

questions are being asked

about the financial rand ...

there is a long list of tentative moves by potential emigrants.

Most movement is coming

from Johannesburg, according to removal firms and

John Vorster Square's policeclearance bureau.

Police clearance is a re- \

quirement that most immigration authorities insist on

before granting immigration

visas.

Clearance

Immigrants to SA have to

provide proof that they are

not entering the country with

a string of criminal offences

behind them.

A definite sign that workers in Johannesburg are nibbling at the scores of job

, offers from Australia which

' have appeared in appointments columns in recent

months is the queue for police clearance.

r

~ Apparently the constable

who takes applications for

clearance at John Vorster

Square and forwards them to

Pretoria says it has never

been so busy.

-1 Whereas he used to busy

himself with other matters

like processing illegal immi-

, grants, he has recently been

handling 15 to 20 clearance

applications a day, many of

them destined for a place in

an Australian embassy file.

Enough about those who

are contemplating taking the

gap, joining the chicken run

or adding to the new breed of,

SA whenwes.

What is perhaps more relevant to employers at this

time of uncertainty is the ef-

; feet SA's political and financial trauma is having on

those who have no serious

ideas of settling elsewhere.

Productivity, or rather the

lack of this sought-after

state, is accepted as one of

our major problems in almost any sphere one wishes

to name.

Knock

How much it has been affected by the anti-SA lobby,

boycotts, the state of emergency and general frustration and uncertainty caused

by the plight of the rand and

general economic woes can

hardly be measured.

But there is no question

that productivity has taken a

•* knock and will continue to do

so until people are no longer

bombarded with bad news.

36
A big noise is made by personnel consultants about the

cost to companies of job-hopping and staff replacement.

There is a winding-down

period that hits an employee's work performance before he or she takes up a new

job. It indirectly and often

directly costs the employer.

Wasted

The learning process and

settling-in time that comes

with new employees also

knocks the bottom line.

Perhaps the personnel fundis should calculate how

much time and energy are

being wasted by people mulling over emigration or simply sulking over their lot in

troubled SA.

Forget the lunchtime and

after-hours chats at watering-holes. They would happen

anyway with different subject matter. \

Like businesses that are

uncertain about what move

to make next, individuals are

experiencing the same dilemma — and they are daydreaming about their plights

and that of the country.

/9274

CSO: 3400/274

37
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

SPECIAL COURTS FOR BLACKS TO GO IN 1986 PARTY SESSION

Johannesburg THE CITIZEN in English 23 Oct 85 p 10

[Article by Stephane Bothma]

[Text]

TWO new Bills aimed at

abolishing the special

courts for Blacks and at

amending the Criminal

Procedure Act, will be introduced to Parliament by

the Minister of Justice

during the 1986 session.

At a Press conference

held in Pretoria yesterday, Mr Deon Rudmann,

Director of Legislation of

the Department of Justice, said the two Bills,

namely the Special Courts

for Blacks Abolition Bill

and the Criminal Procedure Amendment Bill,

were published earlier

this month»

The special courts for

Blacks Abolition Bill is

aimed at giving effect to

the recommendations of

the Commission of inquiry into the structure

and functioning of the

courts.

The Commission found

that, with the exception

of the Courts of Chiefs

and Headmen, the policy

of separate courts for

Blacks was obsolete, and

recommended that these

special courts be abolished and that all cases involving Black people

should henceforth be

tried in magistrate's

courts and the Supreme

Court.

The Commission also

found that the Courts of

Chiefs and Headmen

were cultural institutions

of the Black pupulation

and, therefore, recommended that these courts

be retained as long as

they provided in the

needs of Black people.

A further recommendation of the Commission

contained in the Bill was

that the Black divorce

court be retained until

such time as the family

court, recommended by

the Commission, was established.

A joint committee of

Parliament was presently

investigating the feasibility of the establishement

"Ojt.jsuch a family court, Mr

Rudmanrr saidIt was provided in the

Bill, he added, that the

Black divorce court

should in the meantime

also be placed under the

administrative control of

the Minister ofJustice.

The Bill also provided

that the courts may take

judicial notice of Black

law and custom without,

as in the past, the requirement of proof thereof.

The Criminal Procedure Amendment Bill

was aimed at the adjustment of the provisions in

the Criminal Procedure

Act, 1977 (Act 51 of

1977), regarding corporal

punishment and to promote the better application of community service

as an alternative for

short-term imprisonment

— several commissions of

inquiry had already come

to the conclusion that corporal punishment, by virtue of its deterrent effect,

should be retained but

that it should only be imposed subject to certain

restrictions.

Mr Rudmann said that

with a view to keeping the

provisions relating to corporal punishment meaningful and to endeavour

as far as possible to keep

offenders out of prison,

the corporal punishment

provisions were revised in

the Bill.

A provision was added

to" the Bill that corporal

punishment shall not be

imposed in addition to

imprisonment unless the

whole or part of that imprisonment was suspended.

Offences such as murder (where the sentence

of death was not ..im--

posed), arson, malicious

damage to property, public violence and sedition

were, added to the offences for which corporal

punishment may be imposed.

At the same time, certain offences where no assault or violence where

involved, such as bestiality and homosexual acts,

were deleted.

"The section was also

amended to provide that

corporal punishment may

be imposed for culpable

homicide only if it involves an assamlt," Mr

Rudmann said.

The amendment restricted the o/ffences for

which corporal punishment may be imposed to

offences of a violent

nature and serious offences of a high frequency.

The Acf was also adjured to enable a court to

impose on a male juvenile

offender between the

ages of 17 and 21 years, a

moderate whipping in addition to any other punishment, except effective

imprisonment, in order to

impose more fitting sentences for youthful offenders.

/9274

CSO: 3400/274

38
LOMBARD BACKS FEDERAL PLAN FOR NATION'S FUTURE

Johannesburg BUSINESS DAY in English 17 Oct 85 p 4

JPRS-SSA»85-112

14 November 1985

SOUTH AFRICA

[Text]

CAPE TOWN — It is more important

for South Africans to reach consensus5

on universally-accepted political^

economic and public finance princiJ

pies, than to try to reach finality on

local political structures, Pretoria

University's Economics Professor

J A Lombard said yesterday.

Addressing the 83rd Assocom annual congress on Some Fundamentals

in the Financing of Political Reform,, he said it should be made clear

that the new structure would be based

on federalism and not a unitary system.

"I am assuming that various federal options are still available for SA.

Worthwhile options tend to dissolve if

they are not exercised."

Federal governments must be

strong, but they must also be limited

and dispersed, he said.

To achieve this new dispensation

from the present unitary system1

"would constitute a very great deal of

devolution of political power away

from central government. It would

involve a great deal of integration of

political power among people of all

races on the regional level.

"Power would basically be sepa-.

rated, not along racial lines, but along

regional lines," Prof Lombard said.

To the extent that some consociational structures, such as the present

three chambers of Parliament, remained useful, they would be accommodated on the regional rather than

the national level.

This would allow people of each

region to design particular structures

best suited to them.

Citing the Buthelezi Commission's'

recommendations for Natal and those

of the Quaille Commission for the

Eastern Cape, he said: "Has the time

not come for other regions like the

Western Cape to take similar initiatives about designing the way in

which they could best run their own

regional political affairs without racial discrimination?"

"To expect the regional devolution

of power to be inspired and organised

from the political centre is to subscribe to a contradiction in terms."—

Sapa.

/9274

CSO: 3400/272

39
JPRS~SSA~85~112

14 November 1985

SOUTH AFRICA

ECONOMIST VIEWS POSSIBLE ALTERNATIVE FOR CONSTITUTIONAL REFORM

Johannesburg BUSINESS DAY in English 16 Oct 85 p 8

[Commentary by Dr R. W. Bethlehem]

[Text]

IN NOVEMBER 1983 it

seemed to many that the

new constitution then being

put forward by the Botha

administration offered the possibility of a middle way for reform between continued white

minority domination and black

majority domination.

Both are unhappy alternatives

from the point of view of preserving a modern, Western-type industrial SA.

That constitution's central thesis was that blacks would be excluded, and that constitutional

structures could be provided for

them outside the parliament'

whites, coloureds and Asians

shared.

This thesis has been thoroughly j

discredited by the accumulation .,

of events since the referendum

, took place. The referendum was

a victory for President PW

Botha, but the rising crescendo of

anti-apartheid protest both within and outside SA, and its linkage , with internal unrest and external '

disinvestment and sanctions, has

been a victory for the ANC, the

UDF and those other black forces

that are arranged against him.

No longer can it be pretended '

that the present constitution '

offers a viable mechanism for;

seeing us through the transitional'

phase* of change which lies ahead.

F,resh thinking about constitu-

, tional reform is necessary, and it

', is desirable that this should not

> be hamstrung by commitment to

' any change that has already tak-

.. en place.

This article represents and

economist's attempt at generating some new ideas. It is an attempt to link constitutional

change to basic economic and

political requirements — for

these alone can provide the foundation on which meaningful constitutional change can be con-

* structed.

Constitutional change in SA

will have to take account of the

, following basic social, economic

and political factors:

1) The country is at the beginning

of a major demographic transformation. Between now and the end

of the century, the population will

increase by a further 15-million

from its present 33-million.

' And whereas at present there

exists approximate parity be- ;

; tween urban whites, coloured and ';

' Asians (about 8-million), on the

one hand, and urban blacks i

(about 9-million), on the other, by ,

, the year 2000, urban blacks will »

outnumber other race groups by •"'

about three to one.

2) At present the labour force in

SA is structured roughly as was

the US labour force at the turn of

the century:

i D Professional, technical and

managerial, 9%;

D Clerical and sales, 15%;

D Craftsmen and operators, 18%;

D Unskilled, 58%.

The modernisation of the SA

economy requires a structure

more like that of the US today:

D Professional, technical and

managerial, 33%;

D Clerical and sales, 30%;

D Craftsmen and operators, 32%;

,D Unskilled, 5%.

Achieving this could take 50

years.

3) The exclusion of blacks from

the political process in the light

of the above makes no sense

• whatsoever. Indeed, it is logical

that if blacks have no constitu-

, tional way to influence developments that directly affect income

and wealth distribution, they will

seek extra-constitutional methods to get around the problem.

Black participation in the processes of power becomes essential to the preservation of stabil-,

ity without which orderly

economic development will be

' impossible. The economic task is

to ensure that real GDP growth,

at the very least, matches the

average growth rate of popula-i

tion.

More desirably, real GDP

growth should exceed population

40
growth to ensure a raising of

average living standards.

4) The adoption of a one-man- i

one-vote system in a unitary

state would not be conducive to

the attainment of the required

economic growth rate for a number of reasons, namely:

D It would create party political

alignments heavily biased to sat- j

isfying demands of the black majority at the expense of minority

groups in short time; \

D It would make pressure irresistible for a dramatic redistribution of income and wealth, and

for an Africanisation of both governmental and corporate sector

bureaucracies;

D It would, as a consequence, result in:

DA large withdrawal of white

professional and technical skills;

D Declines in productivity;

D A heightened drain of capital;

and

D A collapse of real fixed investment.

It is not being argued here that^,

white privilege and white domination of state and business

administration are desirable in

themselves. But both these fea-;

tures of SA life reflect disparities

of education and efficiency. To

the considerable extent to which

this is so, they cannot be removed

overnight.

Income redistribution and

African advancement will, thus,

have to happen gradually and not

abruptly if the economy is not to

suffer permanent damage.

5) Disregard of Afrikaner concern about Afrikaner sovereignty

and survival can also make no

sense whatsoever.

Hiifrikaner power is a force of

considerable importance and it

has to be reckoned with. The Afrikaner existence in and commitment to SA is unique, and it justifies unique constitutional

acknowledgement and accommodation. Unlike other white

communities, the Afrikaans community enjoys no assurance of

the continuity of its language and ',

culture in some distant land.

6) Unless both individual and

group rights are acknowledged,

any attempt at constitutional reform is bound to fail. The Afrikaner struggle for group survival

i has not surprisingly resulted in

individual human rights being

relegated to a secondary position,

and this is at the heart of the .'

debate over issues of majority

and minority rule.

7) The economic interdependence

of the races in SA, and the indivisibility of the SA economy, precludes partition or any form of

constitutional balkanisation of

the country.

8) Statutorily enforced racial discrimination, and racism in all its

other forms, can have no acceptance in the post-Holocaust ;

world. Institutionalised racism in

< SA is a fundamental obstacle to

the country's economic development because it adversely affects

' its international trading relations

and the financing of its required

development as well as its international efficiency.

9) The Head of State needs to

command the loyalty of the

1 whole population. A problem

} with the present constitution is

' that the Head of State is chosen

— by an electoral college which effectively excludes two-thirds of

the inhabitants of the country. He

can really speak for only one constituency.

The constitutional proposals

spelled out below envisage:

a) A federal union with authority

for regional affairs (including police services and education)

squarely given to state governments. Federal authority is limited to matters of defence,

national security, foreign affairs,

posts and telegraphs, transport,

national health and welfare,

money and banking and macroeconomic stabilisation;

b) A bi-cameral legislature »comprising:

DA House of Representatives, , elected on the basis of a universal, but qualified, franchise; and

D A House of Communities,

elected on the basis of voting

within major groups, e.g., Zulu,

Xhosa, Tswana, Afrikaans, English, Portugese, Indian, mixed;

c) An executive president, on the

US model, elected from amongst

four vice-presidents and appointing his cabinet from technocrats

outside parliament;

d) A president's committee comprising the president and three

vice-presidents, each elected to

the committee by permanent

members of the House of Communities;

e) An independent judiciary

whose judges (federal and local)

are elected by state legislatures;

and

f) A Bill of Rights.

The purpose of a federal union

would be to disaggregate power,

and so to limit the possibility of

monopoly exploitation by any

group or region.

The House of Representatives

and the House of Communities

would have, respectively, the responsibilities of safeguarding individual and group rights.

Changes to the Bill of Rights

would be subject to two-thirds

majorities of both houses sitting

separately.

Weighting of group representation in the House of Communities

would not be on the basis of numbers alone but would be predetermined also according to the historical seniority of the groups

concerned. The House of Representatives would be the major

house with the largest number of

sitting members, while the House

of Communities would fulfil the

controlling role of a senate, but

with power to initiate legislation

in its own right. New laws would

require the majority approval of

both houses.

The qualification of the right to

vote concerning the House of

Representatives would exclude

persons from voting if they were

both under the age of 30 and without the educational requirement

of a Standard 8 certificate.

Nobody under the age of 18

would be permitted to vote. However, voting qualifications could

be subject to change over time to

allow for a graded transition to

the new system from that currently in force. This would have

the effect of avoiding a disruptive

transfer of power when the new

constitution came into operation

and would be biased, but only

initially, in favour of whites.

However, in such a case, it

would be necessary to restrict the

phasing in period to a maximum

time separating two general

elections. If this were done, everyone would be on notice of the

consequences of the scheduled

41
qualification adjustments

could plan accordingly.

and

H feature of the House of

Communities would be the group

category "mixed". This would

comprise, mainly, coloured people but could include people of

any race or ethnic group.

The point to be stressed is the

absolute imperative of scrapping

the present system of race classification. To qualify for House of

Communities voting, individuals

would have the choice of classifying themselves. An electoral officer who suspected that a particular individual was attempting to

defeat the ends of the constitution

could overrule an application for

classification and this overruling

could be taken to an electoral

court on appeal.

Cases of doubt unresolved by

the court could be classifed as

"mixed" and the court's ruling, I

then, would be final. There would '

be nothing to prevent an individual registering as, say, "Afri-

, kaans" or "English" for one general election, and "mixed" for

another. The choice would be his,

but this would not affect the

group composition of the House

of Communities as that would be

fixed and only subject to change

in terms of predetermined procedures.

The election of the executive

president would be universal on

the basis of the voters role of the

House of Representatives. Each

presidential election would have

four candidates, namely, the four

vice-presidents elected to the

President's Committee by permanent members of the House of

Communities.

Permanent members here

would be defined to include only

major groupings, which could be

consolidations of groups seated in

the House. For example, Zulus,

Xhosas and Tswanas could constitute for this purpose one permanent member, English and

Afrikaans another, etc.

Decisions taken by the president would be subject to a checking mechanism in the President's

Committee with the president

possessing a casting vote

amongst the four members,

which vote would be final.

Voting for the president would,

be on a point, not a simple majority, system. Each voter would

have to specify the order of his

preference for president of each

of the already elected vice-presi- (

dents.

A first choice would earn four

points, a second choice three

points, a third choice two points

and a fourth choice only one

point. Thus, a successful candidate would have to earn support

from all major national communities but his election would be

universally determined.

The Bill of Rights would define

the rights of individuals and

groups and would be phrased to

give expression to the highest

ideals of universal philosphy with

full acknowledgement of the

equality of all before the law, of

the freedom of worship and

movement and of the right to personal property.

The tragedy of recent events,

aside from the lamentable loss of

life and the hardening of racial

animosities that they have involved, relates to the loss of constitutional direction that the

country has suffered.

This needs to be urgently restored for the unrest to subside

and for economic recovery to be

initiated. For PW Botha these

recent events have been a personal tragedy. He at least has been a

bold leader who has been prepared to commit himself and his

party to reform. He remains thus

committed, but events have overtaken him.

/9274

CSO: 3400/272

42
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

POSSIBILITY OF SLABBERT LEADING WHITE TRIPLE SPLIT

Johannesburg BUSINESS DAY in English 17 Oct 85 p 6

[Article by Ken Owen]

[Text] WHEN A quasi-government body like the Human Sciences Research

Council denounces the

Population Registration Act —

quite correctly — as the root of

our problems, then those who

have made a profession of opposing apartheid are in danger

of finding themselves passe.

There is a great turmoil in the

ranks of the white opposition, a

scurrying for new positions as

verligte Nationalists rapidly

make old Opposition causes their

own: labour reform, housing, education, pass laws, citizenship and

now even group areas and population registration.

Some staunch opponents of

apartheid, of course, are emigrating in the face of the looming

prospect of liberation.

0,"thers, fearful that the atheist

Left will hold the moral initiative

if it comes to a righteous slaughter of sinners, are developing

elaborate Christian rationalisations for violence against the

oppressor. They may yet have to

fight for a place under the banner

of liberty, and they clearly don't

think there's much future in it for

pacifists.

Churches that were silent or

whose bishop fled in fear when

Verwoerd and Vorster were at

the helm are now proclaiming

their duty to be political, and are

going back to the Greek texts to

confess in sermons that, lo, they

have misunderstood the Gospels

all these years.

There are stresses everywhere.

Young Progs who are also members of the End Conscription

Campaign - and their mothers

- a view Harry Schwarz (the

European social democrat!) in

much the same light as the ÄNC

sees Chief Mangosuthu Buthelezi.

Natal Progs who happen also

to be members of the Black Sash

are caught in

a similar bindj

Tbey have;

been feuding

desperately

with Inkatha,

whom they

blame for the

conflict with

the UDF (just

as liberals

blame the'

UDF for the!

conflict with

Inkatha); now

Dr Frederik

van Zyl Slab

bert has joined Chief Butheiezi in

the Convention Alliance, and

where does that leave them?

The Detainees Parents' Support Committee has openly attacked Helen Suzman, whose impeccable liberal positions are

now drawing the ire of more radical elements.

Slabbert himself, of course, has

been playing catch-up with Big

Business, whose Gavin Relly and

Tony Bloom beat him to Zambia'

to explore the minds of ANC

leaders.

43
In fact, since taking over the

chairmanship of the Anglo

American Corporation, Relly has

been threatening to run ahead of

the professionals in creative politics. Nor is he alone. Tony Bloom

of Premier, Raymond Parsons of

Assocom, the Urban Foundation

and others are in the game, too.

All of this is good news, insofar

as it means whites are beginning

at last to face up to the realities

of the country. The Nationalists,

and Afrikaners generally, are recovering from the psychotic episode known as apartheid and are

undoing their own bad works,

which takes great courage.

That means the argument

against apartheid has essentially

been won. Only Dr Andries

Treurnicht and the extreme

Right still believe racism can

form the basis of a 20th Century

state; if they come to power, the

destruction of SA as we have

known it is assured. Other whites

may differ on method, but they

agree the Verwoerd-Treurnicht

formula has already failed utterlySo where do we go now?

This, not the familiar wickedness of apartheid, is now the principal question of SA politics, to

which only the revolutionary Left

has worked out a clear answer.

Only the Marxists possess a mature theory of change that inte- ,

grates methods and goals into a

coherent blueprint. The method

is violence and the goal is the destruction of capitalism.

Hence some of the attacks on

reform (seen as an attempt to

rescue capitalism), on the

liberals (seen as the most effective ideological enemy) and on

peaceful change (seen as unlikely

to create a proletarian dictatorship).

(There is some support from

abroad. As a writer remarked recently in TJie Times of London,

SA has come to be seen by European Marxists as a heaven-sent

chance to rescue Marxism. But

the local fight is essentially indigenous).

"' The confidence of the Left derives from the expectation that

President Botha's reform programme will fail — that it will

unsettle his own power base without creating a new stability.

This assumption is hard to

challenge. Indeed, if there is one

topic on which a growing number

of South Africans despairingly

agree, it is that reform is not

moving fast or far enough.

Botha's government is displaying

neither the sense of urgency nor

the skill which is required.

His party offers no clear vision

of the future around which a multiracial constituency might be

built to resist the encroachment

of the hard Left. The new

National Party binds itself to no

principles, but hides its intentions

in a vocabulary that nobody else

understands: participation," highest levels, no domination and other such masterpieces of Pretoriaspeak.

Depressing as it may seem, the

inadequacy of Nationalist reform

offers an opportunity to the

democratic Opposition. The old

assumption that the Nationalists

are unbeatable in the white electorate no longer holds (and may

be made plain in the coming

series of by-elections).

Instead, there is a reasonable

prospect that the next election*

will split the whites three ways,

and that the moment of opportunity long foreseen by Slabbert will

become a reality. He could hold

the balance of power and be in a;

position to bargain for a real

breakthrough to democratic government.

But for that to happen, the PFP

needs both to hold off the encroaching forces on its left and to

recruit and organise new reformists who, thoroughly frightened

by sermons justifying the use of

violence against them and their

class interests, now scurry anxiously from Botha to Relly to

Slabbert in search of hope.

A constituency of frightened

opponents of apartheid lies waiting for whoever has the strength

and the will to lead it. '

/9274

CSO: 3400/272

44
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

FORMER EDITOR ON CRUCIAL ISSUES INVOLVING NATION'S NEWSPAPERS

Johannesburg BUSINESS DAY in English 9 Oct 85 p 6

[Article by Joel Mervis]

[Text]

LOUIS VAN WINSEN, a former judge, has

been chairman of the SA Media Council for

a relatively short time — less than two

years in fact. It has therefore not taken him

long to put his finger on the crucial issues

involving South African newspapers.

The first, as he pointed out at ä meeting

of the Newspaper Press Union in Port

Elizabeth last week, is the fact that the

survival of the Press is at stake. His second

important point: If the Press is to obtain

relief it should be granted special tax concessions.

It so happens that I raised these issues in

a speech in the Transvaal Provincial Council as far back as May 1978. It may be

relevant to quote a brief excerpt from that

speech.

After stressing that the survival of some

newspapers was in jeopardy, I went on to

say: "I believe newspapers should receive,

and are entitled to receive, substantial help

from the state... but the last thing I would

suggest is that the state should pay a direct

subsidy to any newspaper. In such circumstances newpapers would lose their independence and become servants of the state

Concessions

"Among the different types of assistance

the state could give, I suggest two that

might be helpful. One could be a revised

tax formula to bring relief to newspapers,

a concession justified on the grounds of

national interest; but by far the most effective method would be a substantial state

subsidy to those companies which manufacture and supply newsprint. This would

enable newspapers to buy newsprint at a

price that could ensure their survival."

While I am gratified to note that Van

Winsen has endorsed the views put forward

seven years ago, it gives me small satisfaction to know that my fears and forebodings

of 1978 have become the appalling realities

of 1985.

If conditions for newspapers were critical in 1978, they are probably even worse in

1985 — and Van Winsen is right to issue a

fresh warning of the perils facing the

Press. Indeed, it would be true to say that

the past seven years have been the most

traumatic in the history of the South African Press.

The disasters are too recent and too

I painful to have been forgotten. The

I Friend, of Bloemfontein, and the Rand

Daily Mail, both looked upon as permanent institutions, have vanished in this very

year. The Sunday Express, Sunday Mirror and the Soweto News have gone. Die

Transvaler disappeared from its position

of eminence and influence as a Nationalist

morning paper in Johannesburg and surfaced as an afternoon shadow of itself in

Pretoria.

Hoofstad, a Pretoria afternoon paper,

has also folded. Within the last few days

The Natal Mercury, another "permanent

institution", has been saved from oblivion

by means of a merger with the Argus

company.

People are no doubt concerned about

these events, but they may nevertheless

ask why the Press should be given relief in

preference to other industries which are

also going through bad times. The answer , would be that the Press is a special case,

because a healthy Press is a vital, essential

element in the democratic process.

In the long run, the biggest losers in the

Press upheaval of recent years are not the

45
newspaper companies but the South African public themselves. In a sense much of

their freedom has been buried in the coffins of the newspapers that died.

Now that we are reminded by Van Winsen of the grave threat to Press survival, it

is of paramount importance that the public

should be told precisely why the Press is in

such mortal danger.

The newspapers are caught in a giant

pincer movement which, as we have seen,

can remorselessly crush the life out of

them. On one hand rising costs have become an intolerable burden, on the other

the sources of revenue and income are

dwindling at precisely the time they need

to move up.

In my view the greatest single force

squeezing the life out of newspapers is the

cost of newsprint — newsprint being the

paper on which the news is printed.

Devastating

We know only too well that the cost of all

materials has risen sharply in the past 60

years, but few materials have side effects

more devastating than those of newsnrint.

Before World War II, the price of newsprint was about R12 a ton. When I spoke in

the Provincial Council in May 1978, newsprint had risen to what I then described as

the "crippling" price of R340 a ton. If R340

was "crippling" in 1978, what word are we

to use in 1985 to describe the current price

of R910 a ton.

Newsprint gets it diabolical character —

economically speaking — because of its

voracious, all-consuming commitment

from which a newspaper cannot escape.

Some opportunities do exist here and there

for a hard-pressed newspaper to make effective savings and economies.

The one thing it cannot avoid is the

growing use, at a mounting cost, of the

vast, endless flood of newsprint that pours

through its presses each day and each

week.

Advertising

In a developing economy rising costs can

be met by increases in turnover and revenue. That happens in many industries —

but not in the newspaper industry. Its main

source of income is derived from advertising and, at the moment when newspapers

need all the advertising they can get, a

large segment is snatched away by the new

medium — television.

No one can reasonably suggest that TV

should therefore abandon its advertising

revenues. TV must also live. The solution

lies rather in Van Winsen's proposal of tax

relief for newspapers and, I submit, my

own added proposal that newsprint manufacturers be given a state subsidy.

These relief measures can be justified

only if we accept the proposition that a

strong, free, healthy and independent

Press, representing many shades of opinion, is vital to the welfare of SA.

One can surely claim that most South

Africans would endorse that proposition. It

would then follow that active steps for

relief of the Press should be treated as a

matter of urgency.

From the gloom that shrouds the newspaper world let me pluck at least one ray

of sunshine; namely Business Day itself.

Business Day would be categorised by

lawyers as being suigeneris — meaning

something exceptional or the only one of

its kind in SA. It certainly is a genuine

pioneer, and one must suppose its sponsors

suffered some anxious moments about

their experimental venture.

But those days have gone. In my view

Business Day has become an important

and significant part of our Press. It has

character; and it has been moulded into a

journal that commends itself not only to

the business community but also to a wider

audience who would surely value its general news coverage and the excellence of its

features.

In short, a tour de force.

/9274

CSO: 3400/272

46
COMPENSATION FOR INANDA REFUGEES

Durban POST NATAL in English 16-19 Oct 85 p 1

[Article by Khalil Aniff]

[Text]

THE 1 000 Innnd» refugees who lost

most of their belongings in the recent

unrest will each get between R300 and

R500 compensation from the InandaPhoenix Relief Fund.

This was disclosed to POST yesterday by fund vice-chairman Mr Ashwin

Mohanlall, who is also chairman of the

five-man compensation committee.

Mr Mohanlall said a formula had

been worked out which provided for a

two-member family to receive R300 and

a family of between three and five

R400. Families of six and more will

qualify for R500.

All the recipients will be given vouchers, with their identity numbers, which

they can exchange for household goods

at certain stores.

Mr Mohanlall said until yesterday

R176 000 had been collected in cash —

R120 000 coming from primary and

secondary school pupils.

Pledges from the House of Delegates

(R350 000), Durban City Council

(R50 000) and the Teachers' Association of South Africa (R100 000) are expected to be handed over later this week

or early next week.

/9317

CSO: 3400/286

JPRS-SSA-85-112^

14 November 1985

SOUTH AFRICA

47
FAMILY STRESS GROWS; CHILDREN NEED HELP

Johannesburg THE CITIZEN in English 25 Oct 85 p 9

[Text]

JPRS'SSA'85-112^

14 November 198J»

SOUTH AFRICA

THE growth in the number of families who are

turning to child and welfare societies countrywide is indicative of the

present negative impact

of societal stress on family

life, Mrs Joan Oberholzer

of the National Council

for Child and Family Welfare said yesterday.

Mrs Oberholzer was

speaking at a Press conference to..launch Child

Welfare Week that begins

nation-wide tomorrow

and culminates next

Saturday with the traditional "Our Children's

Day"..

During next week the

Council is hoping to increase the public's awareness of the society that

cares for over 200 (XX)

children in foster care.

those neglected through

family problems and

through child abuse,

where in 1984 alone, 644

new cases of alleged child

abuse were reported.

"Next Saturday all

South Africans will have

the opportunity to bring

happiness to many children by dropping a few

cents in the collection

boxes that will be at our

street collection points

across the country," Mrs

Oberholzer said.

She said that in the

present stressful economic situation it was the

child who was suffering

the most. "The Council

hopes to prevent the cutting back of present services to over 200 000 children of all population

groups, due to a shortage

of funds."

/9317

CSO: 3400/286

48
MINISTER PRAISES SPECIAL TASK FORCE ON ANNIVERSARY

Johannesburg THE CITIZEN in English 25 Oct 85 p 4

[Article by Andrew Thomson]

[Text]

JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

THE South African Railways Police Special Task

Force, regarded by many

as one of the best special

forces in the world, celebrates its tenth anniver^

sary this year.

Yesterday representatives of the SAP, the

SADF, Armscor, SAA,

the CSIR, the National

intelligence Services, and

the Civil Aviation Authority gathered at the Railways Police college at Esselen Park to commemorate the founding of the

Special Task Force. >

The force became

known throughout thej

world in late 1981 when it

was instrumental in ending the hijacking of an Air

India Boeing 707, commandeered by a group of

mercenaries in the Seychelles.

The Minister of Transport Affairs, Mr Hendrik

Schoeman, who is an

honorary Colonel in the

Special Task Force, told

the Essclen Park gathering that the force was

"rated among the best of

its kind", and that this

was "a great honour and

achievement, taking into

account the unit's lifespan

of only 10 years".

"This proves beyond

any doubt the quality of

the men," he continued,

"the solidity of their

skilled training, and the

ease with which sophisticated weapons and

equipment are mastered

and used."

Guests at yesterday's

celebration were treated

to a slick demonstration

of the unit's abilities.

Visitors saw the task force

handle hostage situations

involving buses, trains,

buildings, and aircraft.

The task force is also

trained to handle hostage

situations arising from the

hijacking of vessels.

Puma and Alouette

helicopters are sometimes

used for rapid deployment, and the unit is

proud of the fact that 15

task force members can

be deployed from a helicopter hovering at 16

metres within just eight

seconds.

Physical training and

self-defence comprise

about one-third of the

unit's training, and visitors were given a convincing demonstration of unarmed combat.

The Special Task Force

began in 1975 with four

combat groups being

trained at Oudtshoorn.

During the 1976 riots task

force members played a

prominent part, especially in the protection of

VIP's.

7Tie unit concentrated

on rural operations until

1980, when the emphasis

was shifted to urban operations. Until March this

year, the only permanent

members of the force

were its commanders and

instructors, but the unit is

now operating as a fullyfledged permanent force.

/9317

CSO: 3400/286

49
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

LABOR REPORTER ON OFFICIAL ASSUMPTIONS ABOUT POVERTY

Cape Town THE ARGUS in English 15 Oct 85 p 16

[Article by Dick Usher]

Text

POVERTY datum lines were

originated during World War II

in an attempt to measure how

many workers were living below the subsistence level, but

now they are being used by

employers to justify paying

minimum wages.

According to Ms Debbie Budlender, formerly a researcher

with the South African Labour

and Development Research

Unit (Saldru) and now working

for the Food and Canning

Workers Union, their effect is

to condemn people to continued

poverty by being used to set

wages which leave no room for

improvement of the worker's

situation.

Ms Budlender, in a Saldru

working paper introduced at a

meeting at the Trade Union Library, questioned both the theoretical foundations of the various measures used to

determine poverty and the

commodities covered.

For example, people living

on or near the poverty line are

rarely able to use the most efficient methods of buying food.

"The prices of the various

foodstuffs are based on the best

prices applicable, in general

those of the cheapest supermarket. Budget economists

recommend that to get the best

value for money the consumer

should do one large shop a

month at one of the supermarkets, and restrict daily or

weekly purchases to the absolute minimum of perishables,"

she said.

Few workers can follow this

advice because they have limited shopping time, use public transport which limits the

number of parcels they can

carry, usually live long distances from the bigger supermarkets, rarely have enough

money to do all their shopping

at one time and do not have facilities for storage.

"They are thus forced to

make smaller and more frequent purchases.

"The goods have a higher

unit cost both because of the

smaller quantities purchased

and because they are purchased at shops which invariably charge more than the

supermarkets."

She points out that GST concessions are of little value to

poorer people. Without refrigeration they have to buy

tinned and other foods which

will keep better, none of which

are exempt from GST.

Estimates of clothing costs

are also inadequate, she says.

50
"The woman is allowed two

pairs of panties a year; three

pairs of stockings are allowed;

one winter nightie is allowed.

There is no provision for summer nightclothes. Children's

cotton pants and long-sleeved

jerseys are supposed to last for

two years. Raincoats are provided only for adults, even in

the wet Western Cape."

Rent allowances are also

completely inadequate.

Unisa's Supplemented Living

Level (SLL) for February, 1984,

which allows for items beyond

"the lowest sum possible on

which a specific household can

exist in our existing social set

up" which form its Minimum

Living Level (MLL), budgeted

R30.05 for rent. This was supposed to include compulsory

expenditure on garbage disposal, sewerage, water, school and

other levies, upkeep, taxes,

electricity and wiring.

Even in the cheapest Cape

areas rents are above this, and

in the newer areas they are

twice or three times as much.

For medical expenses the

MLL allowed only R4,80 a

month for a family of five.

"This amount is not enough

to cover the contributions to

medical benefit funds, even

less medical aids. The allowance thus does not even cover

the costs of insurance against

medical expenses," says Ms

Budlender.

In a Bureau of Market Research survey in 1980, the last

year the BMR did such a survey, it was found that the higher SLL was only half the average household's level of

expenditure and even then the

average household was overspending its budget.

"People are not happy earning just enough to keep body

and soul together if they see

people around them living in

the lap of luxury. They feel

that if they contribute to creating the wealth of a society they

have a right to share in that

wealth," she said.

/9317

CSO: 3400/292

51
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

ACADEMICS DISAGREE ON BOTHA'S OFFERS OF REFORM

Cape Town THE WEEKEND ARGUS in English 12 Oct 85 p 4

[Article by Frans Esterhuyse]

[Text]

WHILE some academics believe President P W Botha has laid the foundations

for peaceful negotiation, others still say there can be no negotiation while any

vestiges of apartheid remain.

Professor Robert Schrire, head of the Department of Political Studies at the University

of Cape Town, said he was "cautiously optimistic" about prospects for successful negotiations

after President Botha's latest policy statements.

All the elements for successful negotiation about

the future were contained in Mr Botha's declared

commitment to the principles of a united South Africa, one citizenship and a universal franchise.

What was needed was an environment for negotiation.

"Mr Botha has put all the building blocks there,"

Professor Schrire said.

From the black viewpoint, a powerful reform

manifesto from President Botha was now needed to

create confidence in his offer.

To some extent Mr Botha had "boxed himself into

a corner" by refusing to issue a statement of intent.

This difficulty could be overcome by spelling out

his intentions in a reform manifesto.

Explain his policy

President Botha could also hold a series of private meetings with leaders of important groups. At

such meetings he could explain his policy and intentions, while even saying he would not issue a declaration of intent.

He could issue a speech or a manifesto to give the

various groups a clear lead.

Private talks with such leaders as Chief Maneosuthu Buthelezi, Bishop Desmond Tutu and Dr MotInd coÄvP

p

a

„VH

thG W,3y f

°

r proper and "«Stations could even draw a dramatic response

It was very important that President Botha identify the important leaders of the different groups

„hAf P

nvate

.

talks Mr Botha could also establish

what the minimum demands of the various leaders

were when they were free to talk without posturing

niilhf nK

Xt Stage W

J

0Uld be t0 tr

y

t0 remove ^recon- cilable barriers and to begin a process of bargainProfessor Schrire said agreement could be sought

on forums or other ways of keeping negotiations gV

^A body with prestige could be formed to resolve

major problems concerning inter-group relations

sufhTbod6 Pres|dent'

s Councii couId be turned into

Professor Jakes Gerwel, Rector-designate of the

University of the Western Cape, said he was not excited about President Botha's statement that the

National Party was committed to the principles of a

united South Africa, one citizenship and a universal

franchise.

52
These were matters which people had always

asked for and they were what politics was about in

South Africa.

Taking into account the NP's history and present

attitudes, it was not clear exactly what President

Botha meant when he used these terms.

He spoke of a "united South Africa", but in the

same breath he declared that the Group Areas Act

would stay. "This makes one despair as to his meaning," Professor Gerwel said.

A united South Africa also did not seem possible

while separate homelands existed.

Could mean separate pol!

President Botha also spoke of "universal franchise", but in the National Party this could mean

separate voting for separate structures.

Professor Gerwel said the right conditions had to

be created before there could be proper negotiations

to find long-term solutions to problems.

A democratic atmosphere would have to be created so that all the parties concerned could organise

themselves unhindered. Conditions would have to be

created under which fair and free elections could be

held.

No negotiations could be really meaningful while

the ANC was an illegal organisation and South Africans were in exile overseas.

Troops must be withdrawn

As a start to negotiations, the Government should

talk to black leaders who were accepted by their

communities.

Professor Gerwel said the initiative for ending the

unrest and violence would have to come from the

Government.

One of the first steps needed was the removal of

the atmosphere of "a mini civil war".

Troops would have to be withdrawn from the

townships and the state of emergency would have to

be lifted in the areas where it was in force.

This had to be followed by imaginative and reconciliatory initiatives from the Government. Talks

would have to be held with leaders who had apparent credibility in their communities.

Requests to the Government for talks should be

responded to with enthusiasm and not with a "dragging of feet".

The Government should have talked to Bishop

Tutu and could still do so.

Bishop Tutu's stand was uncompromisingly

against apartheid, but at the same time he saw a

strong reconciliatory role for himself in South Africa's situation, with its tragic divisions.

/9317

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53
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

CURRENT-ACCOUNT SURPLUS EXAMINED

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 4

[Article by Cees Bruggeman: "Our Options Are Reduced"]

[Text]

IT has become conventional wisdom to accept

that South Africa has a

massive currentaccount surplus on its

balance of payments.

However, some of this surplus may be illusory, in

the process tightening our ,

constraints somewhat, if only ;

perceptually.

Earnings that never were ;

cannot be missed once they

are recognised as such. Even

so, psychologically it has the

effect of reducing our

national options.

In the beginning of this

year the Reserve Bank was

expecting a current account

surplus of "only" Rl 500-mil- ;

lion for 1985.

Contrast

By mid-year the official

forecast had grown to R4 200-

million, while over the past

month the officiaUigure has

been upgraded to R5 400-million.

Such optimism has been

warranted by the general

collapse in import volumes

(20% down on last year),

which has kept nominal

spending on imports flat in

rand terms. In contrast, export revenues leapt ahead in

volume as well as rand

terms, greatly helped by the

weaker rand.

The reverse side of this

growing current-account surplus was a major outflow of

capital. After an actual inflow of about R600-million

during the whole of last year,

there was a net outflow of

R2 800-million during the

first half of this year alone.

The debt standstill of late

August has put a bomb under

these figures. The assumption generally was that on the

morning after the standstill

announcement the rand

would be back at $0,60.

Fluctuate

After all, the accelerating

repayment of bank debt

would be removed from the

market, greatly easing the

pressure on the capital

account, thereby making way

for the huge current-account

surplus to come cascading

into the market, forcing the

rand up.

It didn't happen. Instead,

the rand continued to fluctuate In a $0,35-$0,42 band as if

nothing had changed.

The rules of the game under such circumstances are

quite simple. There is a gen- •<

eral scramble to find good

reasons for this unexpected

development.

Six weeks on, the rand has

remained extremely weak

against the dollar, and has

depreciated further against

most other currencies as the ,

dollar itself came down.

Hair-raising

This has been surprising,

as the gold price has actually

been somewhat higher in

recent months. Even more

curious was the total absence

of a rise in the official foreign

reserves, and the general

recognition in the market

that there has been a continuous shortage of dollars.

Whatever entered the

forex market was immediately being absorbed by essentially unidentifiable

sources.

Such mysteries cannot

continue for long, and the

"explanations" multiplied in

1 hair-raising fashion.

The Reserve Bank was

identified as a net buyer of

dollars to meet its forward

book. Private companies

were reportedly stepping up

their dividend payments to

their overseas holding com-,

panies, getting out while the'

going was good.

Importers and exporters

were apparently again worsening the leads-and-lags position as they speculated

against the rand. Importers

were cut off from trade credit, requiring dollars upfront

to pay cash for their imports.

54
Questionable

While all these factors help

to explain why there has been

no build-up of dollars in the

local market, there has been

an even more obvious reason:

the current-account surplus

never was as large as what I

has been assumed.

The Reserve Bank bor- '

rowed heavily overseas up to :

the end of the first quarter of j

this year, followed by a massive repayment in the second

quarter.

Also, the public sector last

year was a large borrower of

long-term funds, and this

trend continued in a lesser

fashion during the first half

of this year. But these are

about the only certainties we

really have.

What is questionable is the

amount paid for services, and

consequently the balance on

current account, both of

which in turn place a question mark behind privatesector capital movements,

which include "unrecorded

transactions".

The last year for which official figures are available is

1983, and already in that year

a discrepancy can be discerned.

Further

At the end of 1983 the

foreign debt was $23,6-billion. The interest cost on that

debt may be assumed to have

been at least $2-billion. At an

average exchange rate of

$0,89 this translates into

R2,2-billion.

The official Interest on

non-direct investment for

that year was Rl,l-billion, an

apparent understatement of

Rl,l-billion.

Unrecorded short-term

capital movements — ie, a

residual amount that could

not be explained, amounted

to R800-mhlion for that year,

which may to a large extent

have been unidentified interest payments.

For 1984 and 1985, the figures are less complete, but

the trends are more ominous.

: At the end of 1984 the foreign

debt had probably risen further, as had the interest burden at ?2,l-billion. At an

average exchange rate of

$0,69, this translates into R3-

billion.

However, throughout this

period the authorities

claimed a debt-servicing ratio of about 6% - ie, total

interest payments plus principal repayments due within

12 moi.'ns as a percentage of

total e: ;ort earnings.

This official figure does

not allowi; -1-ore than Rl,8-

billion ir. interest payments,

which is collaborated by the

fact that total service payments increased only 19%

over 1983, which is nearly entirely explained by the rand's

decline and which does not

allow for much of an increase

in interest payments.

Veil

It would therefore not

come as a surprise to be told

that unrecorded transactions

in 1984 were Rl,2-billion, the

extent of the apparently understated interest payments.

The reason for these interest understatements seems

to lie in the private sector.

The authorities appear to

have a good feel for the

foreign debt and interest obligations of the central government, the local authorities, the public corporations,

the Reserve Bank and the

private banking sector.

However, a veil seems to

hang over many private-sector transactions, specifically

those of an inter-company

nature and those between

companies and overseas

banks direct.

The implications of these

interest understatements are

unsettling. R means the current account in 1983 was not

into surplus by R300-million,

as reported, but was apparently into deficit by R800-

million.

Similarly, the 1984 current-account deficit was not

Rl 500-million but apparently R2 700-million.

And capital outflows (repayments) during 1983-1984

were similarly overstated by

R2 300-million, which is fully

appreciated only when one is

confronted by the rising

foreign dollar debt during

those years.

These trends intensified

during the first half of 1985.

This year's total interest bill

is likely to be R4,4-billion, of

which only R2,4-billion may

be visible at present in the

national accounts.

Lagging

That would imply a current-account surplus at least

R2-billion lower than the

R5,4-billion currently projected for year-end.

R is only small comfort

that the official estimate of

the 1985 current-account surplus has been substantially

lagging behind private-sector estimates, which in turn

invariably have not been adjusted for possible interest

understatement.

R is therefore still with a

reduced estimate of the 1985

current-account surplus that

we may have to start a recovery phase, commence repay-

, ment of foreign debt, meet

the forward book of the Reserve Bank, accommodate

worsening leads and lags,

and finance an untold number of other leakages from

the capital account.

As any accountant will

recognise, we have a national

problem called cash flow. Its

ultimate barometer remains

the rand, and in a free-trad- i

ing environment its health ! can only remain extremely

sick for the time being.

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55
CONTRACTOR URGES GOVERNMENT TO PROMOTE PRIVATE ENTERPRISE

Johannesburg THE STAR in English 8 Oct 85 p 16

[Article by Frank Jeans]

JPRS~SSA~85*112

14 November 1985

SOUTH AFRICA

[Text]

A leading contractor

today calls for Government and quasi-Government work to be reduced

and phased out as quickly

as possible so as to allow

projects to be handled by

"more efficient private

enterprise".

Emphasising that he

was speaking in a personal capacity and not as

president of the South

African Federation of

Civil Engineering Contractors, Mr Con Roux of

Con Roux Construction,

savs: "Maximum efficiency and lowest cost is determined mainly by the

following considerations

— profit motive, competition and the right to fire

those who are incompetent.

"Since these three factors do not exist in Government and quasi-Government works, it is clear

that these works should

be reduced or phased out

quickly and be replaced

by an orderly changeover to the private sector."

Commenting on the

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•state of South Africa's

road network, an area in

which his company is

strongly involved, Mr

Roux believes maintenance of the road system

has been allowed to lag

behind traffic growth

with the result that rapid

deterioration is evident

in many areas, particularly in the vicinity of

urban centres.

"If a percentage (currently estimated at about

two percent a year) of

capital investmentJs not

set aside for maintenance, our road communication assets will be

wiped out and major reconstruction will be the

order of the day," says

Mr Roux.

Swazi rail link

Swaziland has another

vital trade link, with the

completion of the

R22 million rail line from

Mananga on the SA border to Mpaka, thus completing a north-south rail

service across the country.

The line, built by Murray & Roberts Roads and

Earthworks, will be the

route for rock phosates

and timber products

from the Eastern Transvaal to Richards Bay and

will also serve as an alternative shorter route

for other bulk caroges.

The completion of the

rail link is an achievement for the Elandsfontein-based M&R company, because the

project, which began in

October 19 83, was

disrupted by cyclone Demoina in 1984.

"Despite this problem

which seriously affected

programmes and schedules, the final contract

will be substantially

completed within the stipulated period," says Mr

Tony Stratfold, managing

director of M&R R and

E.

Another M&R company, Murcoms is to

manage the conversion of

the old Milner Park exhibition centre into the

west campus of the University of the Witwatersrand.

"The project will accommodate the transfer

of the faculties of law,

commerce and education

and the 4 500 students of

these faculties.

Westgate build-up

The latest tenant in the

R75 million retail giant,

Westgate in Roodepoort

is the Cape-based sports

group, Totalsports which,

after only two years in

the business, now has

seven stores in the Transvaal.

Managing director, Mr

Carl Jansen, says: "We

have concentrated on regional shopping centres,

locations which work

well for Totalsports in

generating a lot of business with a growth prospect of between 45 to 55

percent.

56
FOSATU ATTACKS MULTINATIONAL COMPANIES

Johannesburg SOWETAN in English 14 Oct 85 p 9

[Article by Joshua Raboroko]

JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

[Text] THE Federation of

South African Trade

Unions has attacked a

number of multinational

companies which moved

into so-called "homelands" where they "blatantly exploit" the abhorrent policies of

apartheid.

The federation, in a

report to The SOWETAN, highlights the lack

of protection for unions

and their members operating in these areas.

The report comes

after a European trade

unionist, Mr Enzo Friso,

the assistant general secretary of the International Confederation of

Free Trade Union

(ICFTU), has made

things hot for multinationals in South Africa

following his visit here

last month.

Mr Friso said multinationals in South Africa

should meet the black

trade union demands or

face action from 90-million workers worldwide.-

During his visit he as

serted: "Our warninj

goes to all multinationals guilty of violating

international labour

codes."

Some of the multinational operations that

have come under attack

recently are: BTR Sarmcol, Dunlop, Transvaal

Alloys, Alfa Romeo,

Siemens, General Motors and Mercedes

Benz.

Mr Frizo said they will

investigate every multinational while in South

Africa and will consult

black emerging unions

on a plan of action.

Consult

In its report, Fosatu

said that these multinationals were running

away from urban areas

and settling in the

"homelands" where

they exploit "cheap labour" by not paying "a

living wage" to workers. '* The secretary of Fo- '

satu-affiliate Metal and

Allied Workers Union, : Mr Moses Mayekiso,

said the fight against

multinationals is on.

These companies are

protecting the apartheid

system by moving into

the areas where they

know workers are not

protected.

"We have declared

disputes with some of

the major companies

who refuse to negotiate

with us at plant level and

these include multinationals. Workers want a

living wage to cope with

the escalating cost of living," he said.

The fight against multinational companies has

also been joined by the

Council of Unions of

South Africa (Cusa). Its

president, Mr James

Mndaweni, said: "Unless these companies improve their wages and

working conditions, we

shall be forced to call for

economic sanctions

against South Africa —

possibly leading to national industrial action."

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57
MARKETING URGED TO DOWNPLAY RACIAL DIFFERENCES

Johannesburg THE STAR in English 8 Oct 85 p 15

[Article by Roger Sinclair]

[Text] jyir Roger Sinclair has spent almost ,'iO years in the advertising industry, in South Africa and overseas, and recently

completed his first book on the subject Make the other

half work too. This article examines the nucleus of an

argument which forms the central theme of what will be

his second tome on the advertising industry.

JPRS~SSA»85~112

14 November 1985

SOUTH AFRICA

It is surprising that with the reform movement now in progress

that the sector of the business

community which deals with the

future — the marketing sector

— is lagging far behind its

peers.

The politicians have recognised the reality that South Africa is a single state and. perhaps

a little late, the business community is also flexing its muscles. But marketing is perpetuating an anachronism and is

missing an opportunity to lead

the country in the reform process.

Marketers deal with the satisfaction of consumer needs.

Their prime task is to identify

potential users of their products

and services and define strategics that will carry selling messages to them.

Traditionally in SA. their

view of the market has been in

terms of four basic population

divisions. Their overall marketing objectives, their communications objectives and their

media selection are all based on

the basic racial divisions that

have characterised SA for so

long.

This made a good deal of

sense a decade or two ago. At

that time the white community

w

:

as responsible for the vast

bulk of consumer spending and

the majority of non-whites had.

little discretionary spending

power.

Blacks also had minimal education standards, which made

communicating with them difficult. But that has changed, and

today the spending power of

blacks and their increased literacy has brought them to the fore

in the consumer arena.

The two graphs show how

media useage today is completely multi-ethnic, while the second shows the racial mix of the

marketing bands. This latter

graphic vividly illustrates the

growing integration of spending

power, even at the highest level.

The truth is that no matter

what advertising medium is

used to advertise a product, it

will be seen by a fully representative cross section of the population.

Why then does the marketing

community persist in using the

language of a South Africa that

is fast disappearing? Why do

they still talk in terms of four

racial divisions and why does

AMPS — respected worldwide

as one of the finest source, product and media studies — still

split itself into four racial elements.

The reason is that the community has traditionally been

more concerned with the' differences between the races than

the similarities. Over the years

numerous seminars, research

studies and discussions have

been held on the idiosyncracies

of the different markets.

But never once has there been

a seminar held, or rarely has a

paper been published, pointing

out that in media and product

useage the similarities and commonalities may outweigh the

differences.

The way marketers think

about the market is entrenched

in the language that they use

and the mind's eye picture that

they hold. If that does not

change then nor will their perceptions, and they then stand in

danger of falling way behind in

this country's rapidly gathering

reform momentum.
The language that is used is

based on racial demographics.

For example, heavy users of

overseas air travel will be

white, A income group, English

speaking males, counting as an

unmeasured bonus the small,

but growing, number of blacks,

coloureds and Asians who are

travelling too.

The prime target market for

hotel advertising is white, adult

males, putting ase the relaxation of the laws and the growing

affluence of the non-whites that

puts hotels within an expanriiru;

section of their communities.

Black upper-income housewives and white middle income

housewives are core-users o!

margarine, and so on.

It would be wrong to ignore

the fact that environmental,

educational, cultural and residential factors create communication and perception problems

that must be considered, but it

would be more realistic in

today's atmosphere to look at

the qualities that South Africans

share rather than those whicu

differentiate them.

A solution would be to introduce a new marketing patois. A

fresh picture of consumer neecis.

based not on racial differences

but on economic and social similarities.

AMPS data provides the statistical material for this, and

analysis already conducted correlating education, employment

has produced common marketing bands that is already receiving a cautious reception from

the marketing community.

The way South Africans view

their market is so strongly rooted in their politically inspired

past that changes will not beeasily absorbed.

If, however, the marketing

community feels that, as ,.

lynchpin of modern thinking, si

should be seen to be recognisim/.

the swiftly changing realities of

the market in which it operates

— then target market definition

would be a worthy place to

start.

Ail media have multi-ethnicaudiencgs

RADIO 5

0% 20 40 60 B0

piWHITES f^COLOUHEDS/ASIANS fj^ BLACKS

59
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Racial composition of the marketing bands

Population — millions

1 2

1 WHITES [^BLACKS ^CDLOUREDS/ASIANS

60
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

CONSUMER BOYCOTTS THREATEN CHRISTMAS RETAIL TRADE

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 3

[Article by Ciaran Ryan]

[Text] THE consumer boycotts in the Cape and

Transvaal appear set to

last until after Christmas, wrecking retailers' hopes of strong seasonal buying to offset

previous loss of business.

The chairman of the retailing committee of the CBD

Association, Ric Beattie, tells

Business Times: "If the consumer boycotts go on till December it could have a disastrous effect on business.

"Toy shops rely for up to

bO'/o of their annual turnover

on sales in November and

December. Manv clothing retailers record a 'third of their

annual turnover in these two

months."

Hepworths, which was recently placed in provisional

liquidation, blamed its demise in large part on the consumer boycotts. There are

fears that a boycott over the

Christmas period will drive

more retailers to the wall.

Exploiting

The boycotts appear to be

intensifying in some areas of

the country while dying out

in others. They are watertight in the Eastern Cape, intensifying in the Western

Cape, but relatively poorly

supported on the Reef.

Now attempts are being

made to prevent black traders from exploiting consumers participating in the boycott of white stores.

Black traders in the Eastern Cape and Soweto have

been forced by the boycott

organisers to keep prices

down within certain limits in

response to charges of exploitation. However, not all

traders are heeding the organisers' calls to keep prices

down.

Liquor sales

The Western Cape Traders

Association (WCTA), which

represents 2 000 traders in

the Western Cape, is attempting to compete with

white-owned supermarkets

by entering into bulk-buving

agreements with wholesalers

and manufacturers.

The WCTA is also campaigning for an end to liquor

sales to blacks.

A spokesman for the

WCTA told Business Times:

"Turnover in " black-owned

stores have gone up by 50%

in Athlone and about 80% in

Elsies River.

"We are planning a boycott

of wine in the Western Cape

to follow the consumer boycott. About 80% of the cheap

wine sold in the Western

Cape is sold to blacks."

Little effect

Woolworths. Pick n Pav

and OK Bazaars have outlets

in Mitchell's Plain, where

white-owned stores were attacked by rioters in an attempt to enforce the boycott.

However, according to

Alan Lighten, director of the

Cape Town Chamber of Commerce, the consumer boycott

in the Western Cape is having

little effect on white retailers.

He says: "At the time of the

recent riots there was a disruption of normal business,

but things are returning to

normal."

An estimated 600 000

blacks are participating in

the boycotts in Port Elizabeth, East London and Mdantsane (near East London) in

Ciskei, with no sign of any

weakening.

A number of white-owned

stores dependent on black

consumers have closed their

doors until the bovcott is

over.

The secretary of the East

London Chamber of Commerce, Jock Allison, told

Business Times: "The bovcott

here is about 80% effective.

Despite the fact that we have

met the local demands of the

organisers, the boycott has

still not been called off."

Boycott organisers in East

London called for hawkers to

be allowed into the citv and

that Duncan Village, which

was to be incorporated into

Ciskei, should be retained In

South Africa and upgraded.

61
Slow return

Both these demands were

met.

In Maritzburg, though the

boycott has been called off,

there has been a slow return

of black shoppers to the CBD.

Scepticism among blacks

that the boycott has officially

been ended is believed to

account for the delay.

There are fears that a continuation of the boycott will

establish new spending habits among blacks and that

this business will be permanently lost to white CBDs. ,

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62
STANDARD, BARCLAYS OPTIMISTIC ABOUT ECONOMY

Johannesburg THE STAR in English 14 Oct 85 p 15

JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

[Text]

Two major banks, Standard and

Barclays, are far more optimistic about prospects for the economy in their October economic

reviews than they have been for

some time.

However, neither bank is sanquine about prospects for next

year, and both highlight the

many difficulties still standing

in the way of a renewed upturn

in economic activity.

In its review Standard says

that domestic economic activity

in South Africa has probably

bottomed out, but growth inhibiting factors are likely to remain present during the year

ahead.

The improvement in domestic

activity is likely to be reinforced by the combination of

strong export earnings and a

shift in fiscal and monetary policies towards overt stimulation.

"The many positive forces

now present in the economy — a

booming export sector, large

and growing trade surpluses,

improved personal savings, low

inventory levels throughout the

economy, low capacity utilisation and a willingness to work

harder for less reward — should

by now have already radically

altered the economy's internal

performance, for the better."

GROWTH POTENTIAL

Previously held expectations

of a substantial reduction in inflation have given way to the

anticipation of major inflation- '

ary pressures in the years

ahead.

"That combination of negative forces may well cost the

economy about one percent

growth in GDP terms this year,

and it is bound to reduce next

year's growth potential by some

two percent," Standard says.

"Any realistic assessment of

the country's growth potential in

the year ahead must allow for

the unpalatable fact that foreign

political and financial pressures

have assumed a momentum of

their own and that even fairly

significant domestic reform is

unlikely to soon be able to halt

or reverse these trends.

"Equally, even though pragmatism and a move towards negotiation of domestic political

issues are likely to reduce internal conflict, it is improbable

that fundamental problems can

be eliminated in the short-term.

BROADENING FRONT

"Growth inhibiting factors are

thus likely to remain present

during the year ahead. However,

despite the presence of these

negative elements, the fundamental improvements within

the economy, which have flowed

from both the consistent application of demand restricting

measures over the past year and

the strength of the export sector, appear to have already stabilised the economy.

"Therefore some recovery

trends are likely to become

more noticeable during the latter months of this year. For 1986.

an expansion over a broadening

front is in prospect, in spite of

an array of growth-inhibiting

factors."

Barclays says that average

wages and salaries will increase

by between 10 and 12 percent

next year, while inflation will

average about 13 percent.

Short-term interest rates will

continue dropping, and the bank

foresees that the prime overdraft rate will reach the 13 to 14

percent level by the end of 1986.

Private consumption spending is likely to be sluggish in

gathering momentum next year,

not only because of uncertainty

in the minds of consumers, but

also, and perhaps more fundamentally, because real salaries

and wages are likely to fall.

"This poor performance in

private consumption demand

will in turn impact on fixed investment spending, particularly

private investment spending.

"The manufacturing sector is

at present operating substantially below full capacity, and

63
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this factor, p.)"« widespread wr

certainty and lack of confidence

in the business community, indicates another decline in investment spending in 1986," it says.

Barclays predicts an increase

in real private consumption

spending of only one percent for

1986, while it expects fixed investment spending to decline by

5,5 percent.

Fora number of reasons the

outlook for fixed investment

spending next year was bleak.

"Firstly, the restrictive monetary and fiscal policy of the past

year or so has impacted so severely on domestic demand that

production capacity in the manufacturing sector had fallen to

an average of 84,4 percent by

the second quarter of the year.

CONFIDENCE SHAKEN

"As long as this spare capacity exists, there is little need for

new fixed investment, and since

consumption demand is likely to

increase only moderately next

year, this spare capacity is unlikely to be exhausted at a rapid

rate.

"Secondly, business confidence which is so vital to the

outlay of large sums of money

on fixed investment has, like

consumer confidence, been

badly shaken by the events of

the past eighteen months, and

this factor is likely to offset any

stimulus to investment spending

that might result from the lower

interest rates expected next

year.

"Thirdly, much of fixed investment spending involves the

importation of machinery and

equipment. The costs of importation have risen steeply as the

exchange rate has weakened

anda much greater return on

investment spending is now required to justify the costs involved.

"With the business community at present so uncertain about

the future, the increased costs

involved in this regard will significantly dampen investment

demand."

64
JPRS-SSA-85»112

14 November 1985

SOUTH AFRICA

UIF CASHES INVESTMENTS TO KEEP UP PAYMENTS

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 3

[Article by Amrit Manga]

[Text] THE Unemployment Insurance Fund (UIF)

has been forced to cash in R60-niillion of its

fixed investments to meet growing claims.

The fund's fixed investments are a major

source of financing claims from unemployed

workers, and now stand at about R240-miliion

compared with R300-million early this year.

Claims against the fund have more than

doubled in the first seven months of the year

against the same period last year •- from

K6y-million to RKiOmillion.

The last time fixed investments had to be

cashed was in 19113, when the fund realised

R20-million of its fixed investments to meet

claims. Income for the whole of 1983 stood at

R175-million against a total expenditure of

R200-million.

The spiralling unemployment rate has cut

into the UIF reserves in more ways than one.

Besides having to pay out a record number of

claims, the fund has to cope with significant

losses in potential income as a result of retrenchments.

A survey of some of the major industrial

councils revealed that more than 8 ÜÜ0 workers were losing jobs each month.

Official statistics put total registered unemployment — those workers who have registered with UIF - at around 123 000.

Based on the average combined contribution of employer and employee of about R4 a

month, the fund's losses in potential income

through declining employment could be close

to R500 Out) a month and increasing at a rate

of R32 000 a month.

Though potential income has dropped, UIF

commissioner Jack Scheepers says the fund

is still receiving between RftOOOOO and

RfiOOOOO more a month now than during the

same time last year.

"This increase in the fund's income can be

attributed to the raising of the income ceiling

for contributors' from Kill 000 to 1121600 in

January this year.

"Combined contributions by employers and

workers have fluctuated between R12-million

and R17-million a month.

"We have also been earning an average of

R13,5-million a year in interest on fixed investments.

"This is likely to come under pressure as

investments are cashed in. But it is hoped that

part of the E150-million set aside for unemployment aid will rescue the situation," says

Mr Scheepers.

"Despite spiralling unemployment, the

total number of contributors has not changed

since last year, and we still have more than <!•

million workers on our books,"

Administration costs were also not much

higher than the Rli-rnillion recorded a year

ago.

The UIF employed about 500 permanent

staff in 19(14 along with another 400 agents

authorised to process claims.

According to Mr Scheepers, about 60 additional posts had to be created to cope with

about 40 000 applications for UIF benefits

every month.

"But our administration costs have not

been radically altered."

/12828

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65
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

INCREASE IN COMPUTER CRIME REPORTED

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 1

[Article by Kerry Clarke]

[Text]

FOR the first time the

vulnerability of South

African companies to

that insiduous partner of high technology — computer

crime — has been exposed.

Computer crimes previously hushed up and

pushed under the corporate carpet have been documented in a casebook

which reveals that SA

business faces threats

ranging from trivial,

amateur cases of fraud to

calculated and malicious

sabotage.

Fifty-seven cases which

have occurred over the past

five years have been analysed in the book — compiled

by Jean-Pierre Michels, senior consultant in accounting

firm Aiken & Carter, and

computer-security consultant Paul Credo of Datatime.

Startling

Attempts by Business

Times to verify information

in the book met with little

success, and a Volkskas,,

spokesman summed up reac-'

tion with the comment: "One

of the first rules of the security game is that you do not

talk about it."

One of the most startling

conclusions of the casebook is

that only 13% of computer

criminals were prosecuted or

asked to pay damages. , About a quarter of the

criminals were simply dismissed, while 9% received

only a verbal reprimand. No

action was taken in 12% of

; the cases.

The reason for this reluctance to resort to litigation is

i the fear of losing face. This

means that the crimes docu-

, mented in this book reveal

only the tip of computer

' crime in SA.

Unwilling j

Paul Credo, co-author of i

; the book, says a recent study

in the US shows that, for all

computer crimes which are ;

discovered by the victim,

only 2,2% become public

: knowledge, and more than 20

' cases which he and Mr Mi- •

chels researched had to be'

' left out of the book due to the '

victims' reluctance to pursue

the matter.

Business Times found that

companies were extremely

unwilling to tell if they had

been victims of computer

crime, and one bank categorically denied it had ever

had a case of computer fraud.

The book concludes that

«• most of the crimes uncovered

occurred because the victims

failed to give adequate attention to the control and auditability of their computer applications, or did not

appreciate the need for proper segregation of duties in

key functions.

"A sophisticated, wellthought-out computer crime

could very well precipitate

any company into bankruptcy," says Mr Michels.

Ed Jurisich, executive director of the Computer Users' Council, which represents some of SA's largest

computer users, says his

members are aware of and

are concerned about the

threat of computer crime,

and it appears that some

companies do place a high

priority on computer security.

Standard Bank has a number of staff members devoted

to research and development

in this area, trying to stay a

jump ahead of criminals.

Involved staff

Jim Shaul, Anglo American Corporation computer

consultant, sums it up: "Total

security costs an infinite

amount. What a company has

to do is look at its computer

systems and try to balance

what the risks might be with

the costs incurred in securing

the system."

66
/12828

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The book shows that companies cannot assume that,

the threat of computer crime

will comö only from outside

the company — about 47% of

computer crimes In South,:

Africa are perpetrated by

computer users, and 40% of

these cases involved computer staff. I . Financial institutions and

industrial corporations arej

the main targets of computer

criminals — of the 57 cases;

18% of the crimes occurred

In the financial sector, 18% in!

industrial corporations, 14%

in distribution companies,

16% in multinationals and

major groups, and 6% in retail businesses.

Software

Money was the target of

34% of perpetrators, theft of

information was second with

20%, and theft of goods third

with 16%. About 19% of cases

were sabotage-related.

Other common crimes are

theft of software and illegal

use of computer time. In one

case nearly all the staff in the

data-processing department

of a major company were

running their own independent bureau overnight on

their employers' computer. '

This illegal business was so

successful that additional

equipment was needed for

the data-processing installation and was exposed only by

the company's unusually

heavy demand for stationery.

Fired

In another case, a data-,

processing manager of a

■■ pharmaceutical company

held the management hostage, threatening to collapse

vital computer systems if

they did not allow him to set

up his own microcomputer

agency to run their business.

As he was the only person

who could run the systems,

the management let him believe his demand would be

met, but he was fired 10

months later after documentation and operating back-up

had been established.

A project manager lined

his pockets to the tune of

several thousand rands at the

expense of his mining-comI pany employer by misusing

his privileged access to the

'payroll system and editing

the personnel database on

payday to increase his

monthly salary by R400.

He covered his tracks by

modifying the system the day

after payday to reflect the

correct salary.'

67
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

SPL PREDICTS TWENTY-FIVE PERCENT GROWTH

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 1

[Article by Kerry Clarke]

SPL, the first South African

[Text] computer software company to be listed on the

JSE, is predicting a 25%

annual compound growth

in pretax profits and earnings of Uc a share for the

year to February.

Tomorrow the company will

offer 1,46-million shares

to the public at 75c a

share.

The prospectus to be released tomorrow says

SPL expects to pay a dividend of 4,5c a share for the

financial year.

This puts SPL on a forecast

earnings yield of 14,8%

and a prospective dividend yield of 6% on the

issue price.

In addition to the 1,46-million

shares offered to the public, an additional 700 000

shares will be issued to

staff and associates. The

company will raise just

over Rl,5-million through

the issue.

Distribution

The company expects to be

listed in the electronics

sector on November 20. -

SPL was formed in 1970

when computers were not

yet in common use In ;

South Africa and there

were few companies ca- ^

tering for the needs of '

computer users.

Since that date, SPL has built

more than 200 computer

systems for clients and acquired distribution rights ;

for a number of foreign- ,

developed mainframe ]

computer software sys- •

terns suitable for IBM and

IBM-compatible computIt is now believed to be the '

largest software house In

<"" SA, employing 180 people

and with a customer base

of 150 organisations. SPL

incorporated subsidiary

Computer Personnel Ltd

in 1969, specialising in

computer personnel recruitment and consulting.

The group's audited consolidated profits before taxation for the six months to

end-August were Rl,5-

million.

Research

The directors predict that

turnover for the year to

February 1986 will be R20-

million while pretax pro-.

fits for the period should

be R3,4-mllllon, which

would be a 26% increase

over the previous year.

Taxed profit should be Rl,7-

million, assuming a tax

rate of 50%.

SPL managing director Lewis Folb says the company

originally planned to seek

a listing on the development-capital market.

"Our research shdwed that

the development-capital

market in the US and UK

had provided a successful

means of listing for companies such as ours, but

we have since found that

the development-capital

market in South Africa

has not performed as well

. as expected and has not

attracted our* type of company.

"We were advised that if we

wanted to attract a

broader spectrum of investors we should go for a

listing on the main board.

We fit comfortably within

the JSE main board requirements, so we elected

to go this route."

Mr Folb says the company's

brokers expect the offer to

be oversubscribed.

"Computer software is a

business that only those

working in the computer

industry really understand. But it is an area

which has shown good

growth even in a recession, and offers an exciting investment opportunity."

SPL is only the second computer company to be listed

on the JSE — the first was

hardware supplier and bureau Computermatic,

which was listed through

the cash shell Eurefln this

year.

; Mr Folb says he sees no reai son why more computer

companies should not seek

a listing and, though there

might not be that many

software services companies that can meet JSE

requirements, several

hardware companies

should be eligible.

Export

SPL did not plan to expand

its business after the listing, and the extra funds

would rather be put to use

68
In the development of

software packages for export, which had been impossible up to now dne to

lack of funds.

Mr Folb says that, if anything, SPL stands to gain

should sanctions become a

real threat to South

Africa.

"At least half our earnings

are generated in the services sector, which Is completely independent of

overseas principals."

/12828

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69
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

UNIT TRUSTS SWITCH TO GOLD, MINING

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 8

[Text] SOUTH Africa's 13

unit trusts piled out of

cash and into equities in

the September quarter,

with gold and mining

shares a popular portfolio choice.

Association of Unit Trusts

chairman Peter Polsen says:

"The fund managers had a

busy quarter and committed

considerable funds to the equity market.

"The equity holdings of the

12 equity trusts increased

8.1% during the three months

from Rl 021,1-million at the

end of June to Rl 103,7-million at September 30."

Equities now comprise

81,1% of the unit trusts' portfolios compared with 76,1%

in September last year and

78,9% on June 30 1985.

Encouraged

Liquid assets have declined from 21,3% of total

portfolio in September last

year to 13,8% at the end of

last month.

The record export earnings of the mines due to the

weak rand encouraged the

trend to the mining boards,

and at the end of the quarter

the funds had 37,4%, or

R509,l-million, of their

Rl 391,6-million total assets

in gold, mining finance and

other mining shares.

The Association of Unit

Trusts analysis of the September investment trends

shows that, to accommodate

their increased mining holdings, the 12 equity funds invested new funds and reduced their investment in.,

industrials and liquid assets.

Fell

The funds now hold R164-

million, or 12%, of their portfolios in gold shares, R198.5-

million, or 14,6%, in mining

financials and R146,6-million, or 10,8% of the portfolio,

was held in other mining

shares.

The funds thus had R509.1-

million invested through the

mining boards against

R568,7-million in industrials.

Investment in industrials

fell from the June holding of

R574,9-million, or 44,4%, of

the total portfolio to R568,7-

million, or 41,8%, at September 30.

Simultaneously, liquid assets fell from 14,6% of the

portfolio to 13,8%.

At the end of the quarter,

the 12 equity funds held

R188,4-million in liquid assets, R40-million less than in

the previous quarter. A year

ago liquid assets held by the

trusts totalled R223,9-million.

Mr Polsen says the investing public's increasing interest in unit trusts as an investment medium can be seen

from the R35,6-million net inflow to the industry during

the quarter, with sales reaching a record level of R62.8-

million.

"The net inflow of R35,6-

million for the September

quarter, taken with a net inflow of R28,8-million over the

past three quarters, means

there has been a net new investment of R64,4-million in

the industry over the past

year."

Appreciated

The market value of the

assets managed by the 13

funds appreciated 5,4% during the quarter, from the

June quarter's Rl 320,5-million to Rl 391,6-million at

September 30, while over a

12-month period the value of

the industry's assets has increased by 29,4%.

The unit-trust index, which

measures the market value

of the funds plus the cash

they hold for distribution,

rose 2,2% during the quarter

to stand at 648,96 points.

Over the past five years,

since September 1980, the index has appreciated 55,7%,

while over the same period

the income index has almost

trebled to reach 1 210,43

points at September 30.

/12828

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70
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

PHARMADOR TO STREAMLINE EAST LONDON PLANT

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 4

[Article by Zelda Zaayman]

[Text]

LOCAL drug manufacturer Pharmador,

which has an annual turnover of about R24-

million, is to spend Rl-million on its East

London pharmaceutical plant.

The money will be spent on computerised

manufacturing systems, new equipment, additional plant and extensions to the existing

building.

The work should be completed by June

next year.

The expansions are needed to streamline

production and keep pace with increasing

demand, says managing director Pierre

Greyvensteyn. i

The privately owned company has been

growing at an average rate of 30% a year for

the past three years.

The company is controlled by the Greyvensteyn family, which started in business as the

manufacturer of Ouma Rusks in 1939 in the

Eastern Cape.

This led to the formation of SA Homemade

Foods and later Simba Quix.l

In 1977 the Greyvensteyn family sold out to

Federale Foods, part of industrial conglomerate Federale Volksbeleggings

Pharmador was started in 1978 when a

wide range of pharmaceutical products was

acquired from Caps, the largest independent

pharmaceutical company in Zimbabwe.

The company also branched into electronics at the same time when it started a

component division, Greymatix.

According to Mr Greyvensteyn this division is showing a growth rate of between 30%

and 40% annually.

The electronic interests of the company

were expanded in 1980 when a computer division, Greydata, was added.

This part of the company is active in the

local assembly of IBM PC Compatibles. Mr

Greyvensteyn'says that growth in this division is also satisfactory.

/12828

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71
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

WORK ON LOW-COST URBAN DEVELOPMENT PROJECTS REPORTED

Johannesburg SUNDAY TIMES (Business) in English 13 Oct 85 p 7

[Article by Kerry Clarke]

Text ] THERE is an urgent need to

tacLk t;;e backlog In lowcost «rban development, and

contractors are being called

on tc work ever faster on priority projects.

It is this environment that

is fostering the concept of

building and civil consor- ,

tiiims hi South Africa, and

one of the largest consortium« formed between SA

contractors is already proving its worth on a E15-million

fast-track contract at Khayelitsha outside Cape Town. i

Basil Starke, Besterecta,

Clifford Harris, Concor,

Earthmovers United, Murray and Roberts Civiis, Racec, Rohr Roads, Savage &

Lovcmore and W J M Construction have together

formed a consortium called

Western Cape Contractors,

which is ahead of schedule on

the KSiayelitsha contract.

The contract calls for the

construction of 46km of

roads, installation of 186km

of sewerage, stormwater I

drainage and water reticulation, and the completion of | more than 8 600 toilets within

20 weeks. The project is one

of th» largest of its kind to be

undertaken in the Cape.

Too extensive

Western Cape Contractors'

chairman Ivor Korck, managing director of Rohr

Roads, says most of the underground services will be

complete within the next

week, and he expects the entire contract to be complete

ahead of the stipulated deadline in February 1986.

Mr Korck says the contract was too extensive for

any one contractor to handle

within the 20-week deadline,

but, by pooling manpower,

management and plant resources, the nine civil con- j

tractors and one building

contractor will be able to satisfy time limits at no cost

penalty to the employer.

He says consortiums are

not new, and have been successfully deployed in major

power station contracts and

other building contracts before, but Western Cape Contractors is probably the most

powerful consortium yet

formed in SA.

"There has not been a consortium with so many participants before."

Mr Korck says the consortium is not a loose partnership but is based on a precisely worded agreement which

proposes a carefully developed management structure.

Promising

"Whether we make use of

this format for future contracts will depend on the circumstances. One of the necessary circumstances is

that the contract time is very

short.

"Under normal circumstances, the companies within the consortium would

compete with each other on

such contracts, and they will

continue to do so in future.

Mr Korck believes consortiums have a promising

future in SA in fast-track

contract work.

"There is a high socio-pol:-

tical priority to provide

accommodation for people at

the low end of the income

scale, and this kind of work

must be completed quickly,

considering the backlog that

exists. Consortiums can play

an important part in speeding up such contracts."

/12828

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72
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

SLUMP HITS THE GAS INDUSTRY

Johannesburg BUSINESS DAY in English 15 Oct 85 p 5

[Article by Linda Ensor]

[Text] THE industrial gas industry, bedevilled by over-capacity and a slack

demand, has been characterised by

severe competition and price-cutting

practices over the past year.

However, none of the four main

competitors — Afrox, Air Products,

Fedgas and Union Liquid Air — have

any intention of pulling out of a market estimated at R160m a year in

retail terms.

The industry supplies gas to a

broad spectrum of the manufacturing

sector and is seen as being a barometer of the economic climate.

"The economic environment is

tough, competition is intense and

there is no great activity," says Afrox

MD Peter Joubert.

Air Products MD Geoff Prevett

agrees: "We are quieter now than we

have been for a number of years. The

market is very competitive and

prices have plummeted.

"We are not able to pass on cost

escalations in transport, labour, electric power and capital costs. Profit

margins have moved down consistently since a peak year in 1981."

The market is over-supplied and

volumes have shrunk. The metal fabrication industry — a major consumer of industrial gas — is down by

about 20% over last year. Gas consumption by the car industry has fallen off by as much as 50%.

"My perception of the industrial

gas industry this year is that volumes

will be down by 10%" says Colin Kennedy, MD of Union Liquid Air.

As the industry is capital-intensive,

operating with large fixed overheads,

it has been hard hit by rising interest

rates on borrowings for imported

capital goods.

/12828

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73
JPRS-SSA-85-112

14 November 1985

SOUTH AFRICA

BRIEFS

HOME-COMPUTER MARKET—South Africa's home-computer market is alive and

well despite the recent hiccups experienced in many overseas computer

markets. By overseas standards the SA market is nowhere near saturation

point. Some home-computer vendors say it is still in its infancy. Only

1,7% of white households have a computer, they add. It is generally

believed that when computers become more widely used in school environments

there will be a spin-off into homes of every nationality. Brenda Solomon,

MD of Spectravideo International's SA agents, James Ralph, says: "While

there is the problem of price, I still believe the market has good

growth potential." She points out that prices have fallen overseas, but

this has been negated by the rand's decline against other currencies.

"Some of the losses made on lower rand values must be absorbed to maintain

a good position in the industry. "I believe that consumer resistance

could be growing — especially among the less wealthy — so distributors

are forced to help," she says. The SA market has traditionally followed

closely on the trends of major overseas markets, with Japanese computers

leading the field. IExcerpt] [Johannesburg SUNDAY TIMES (Business) in

English 13 Oct 85 p 6]

STEEL INDUSTRY SAGS—The steel industry is suffering from lack of specialisation. Effects of the 42% drop-off in steel castings over the past

five years are aggravated by undercutting, cashflow problems and reluctance

to modernise. A root cause is small volume demand for specific products,

and foundries rely on jobbing instead of tooling up to specialise. "There

is uncertainty as to where the industry is going," says a spokesman

for a medium-sized foundry. "The trend overseas is to modernise or close

down," he says. But right now modernisation is pushed towards the back of

the programme, as many foundries suffer from cashflow problems. Forest

Engineering foundry division manager John Aubin says the industry is

shrinking because of foundries running uneconomically. There are also

several substitutes for castings, particularly plastics. It is felt import

replacement will soften the drop in overall demand, and some hope is built

on a growing tendency among overseas buyers to source from SA. But no

real recovery in the metal industry is seen before mid-1986. [Text]

[Johannesburg BUSINESS DAY in English 14 Oct 85 p 3]

74
JPRS-SSA-85-112

14 November 1985

SRI LANKAN TEA—COLOMBO—The Sri Lankan government will not impose any

fresh sanctions against South Africa and will continue to export tea to

that country, says Sri Lankan Foreign Minister Shaul Hameed. He was

replying to Communist Party parliamentarian Sarath Muttetuwegame during

a debate yesterday. Muttetuwegame demanded that the Sri Lankan government

suspend trade with South Africa. Hamseed said Sri Lanka had already

associated itself with the demand for the release of Nelson Mandela and

stated its opposition to apartheid. "I do not know what other action we

could take," he said.—Sapa. [Text] [Johannesburg BUSINESS DAY in English

10 Oct 85 p 2]

FIRST FOOD AID FOR QWAQWA—About 5 000 undernourished QwaQwa children under the

age of five are to benefit from a food-aid programme that is being carried out

by the Department of Development Aid with the first consignment of food delivered yesterday. A scientific study conducted by QwaQwa's Department of Health

and Welfare showed that 12 percent of the local children are under the age of

five, and that 20 percent of this group is undernourished. When the results

of the study were released, the QwaQwa Government appealed to the Department

of Development Aid for assistance. The Department responded to this call, and

the first consignment of food, consisting of 7 500 kg of powdered milk, and

1 500 bags of potatoes arrived in Witsieshoek yesterday. The Department of Development Aid in Pretoria has announced its intention of continuing with this

food-aid programme on a monthly basis until March 1986. [Text] [Johannesburg

THE CITIZEN in English 24 Oct 85 p 12]

WIDE BACKING FOR EMERGENCY—There is wide scale support for the State President's decision to declare a partial state of emergency in South Africa, according to a nationwide omnipoll conducted by Market Research Africa. Of urban White adults, 98 percent were found to be aware that a partial state of

emergency is in force, with 69 percent "strongly" agreeing with its introduction, 26 percent partly agreeing and five percent disagreeing. Afrikaans

speakers came out as the strongest supporters (82 percent) compared to 54 percent of English speakers. Those in the higher income group, where household

incomes exceeded R3 000 a month, were less supportive—although 57 percent

strongly agreed with the decision, and six percent disagreed. "The urgent need

to establish law and order and to restore normal living and working conditions

has support throughout the country," said Miss Sue Scott, manager of Market

Research Africa's omnibus division. "The fact that the majority of all sections of the community are in favour of the State President's action indicates

that this is not just a political matter, but reflects an almost universal desire for the restoration of peace and harmony in South Africa."—Sapa. [Text]

[Johannesburg THE CITIZEN in English 24 Oct 85 p 18]

UCT PRINCIPAL WARNS OF UNEDUCATED GENERATION—Cape Town.—The principal of the

University of Cape Town, Dr Stuart Saunders, says if children do not go back to

school, there is the danger that a generation like the Red Guard in Communist

China could develop in South Africa, it was reported yesterday. Dr Saunders

told pupils of Westerford High School in Cape Town on Monday night that nothing

could be more dangerous than uneducated, ill-disciplined mobs in the streets

and South Africa had to see that it did not happen. He believed the children

would have ended their boycott if their demands had been met.—Sapa. [Text]

[Johannesburg THE CITIZEN in English 24 Oct 85 p 10]

75
JPRS-SSA~85-112

14 November 1985

UDF CHIEF DETAINED--Cape Town—United Democratic Front executive, Mr Trevor

Manuel, was taken from the UDF's Cape Town offices yesterday by Security

Police. Mr Manuel, the Western Cape secretary of the UDF and a member of its

national executive, recently emerged after several weeks in hiding. According to a UDF office worker, Mrs Veronica Simmers, four Security Policemen

entered the UDF's Corporation Street offices at 12.50pm and told Mr Manuel

he was being detained under Section 29 of the Internal Security Act. Mrs

Simmers said the police did not search the offices before detaining him.

"They just walked straight up to him, handcuffed him and took him away," she

said. Mr Manuel has been a key figure in the UDF since its inception in 1983.

Soon after the state of emergency was declared in other parts of the country

Mr Manuel went into hiding. After the release of other local UDF executive

members, about three years ago, Mr Manuel made cautious public appearances.

[Text] [Johannesburg THE CITIZEN in English 23 Oct 85 p 9]

BOYCOTT KILLS CLOTHES CHAIN—Hepworths, South Africa's national clothing

chain with 62 stores and 12 factories, and an annual turnover of 24.4

million rand, is in provisional liquidation as a result of the black

consumer boycott and the poor economic situation. It is believed to be

the first major retailer to close because of the boycott. The company

could not meet the demands of a consortium of seven major banks for

immediate repayment of debts of more than six million rand. A total of

400 people are expected to lose their jobs as a result of the closure,

which Hepworths chairman Irwin Rudick blamed on the depressed state of

the economy and "the extremely effective boycott exercised by black

buyers against the group's trading outlets." [Text] [Paris INDIAN OCEAN

NEWSLETTER in English 12 Oct 85 p 7]

GERMAN FEARS—The South African-German Chamber of Commerce and Industry

says West Geman companies operating in South Africa are going through

their worst crisis in 40 years. Although most firms have indicated their

intention to stay in the country in spite of adverse economic conditions,

the chamber says many have been forced to reduce operations with resultant

cutbacks in staff. Further job losses and plant closures could be prevented

only if the government acts urgently to resolve social and political problems which the chamber blames for South Africa's economic ills. [Text]

[Paris INDIAN OCEAN NEWSLETTER in English 12 Oct 85 p 7]

MORE THAN ENTERED—South Africa lost 299 people in July according to figures released in Pretoria yesterday the Central Statistical Services. The number of

immigrants totalled 894, of which 409 were people who had arrived as visitors

at one time or another and since become approved immigrants, while immigrants

totalled 1 193. The number of visitors from other countries who arrived in

South Africa in July totalled 55 223. During the same month the number of

South Africans who departed for visits to other countries totalled 48 085.—

Sapa. [Text] [Johannesburg THE CITIZEN in English 24 Oct 85 p 10]

WHITE AREA IN EAST LONDON FOR INDIANS—A portion of the White group area

of Amalinda at East London will be converted to an Indian group area,

the Minister of Constitutional Development and Planning, Mr Chris Heunis,

said in Pretoria yesterday. The relevant area, which was investigated by

the Group Areas Board in January this year, would be proclaimed in the

Government Gazette after it had been surveyed, he said in a statement.

He warned, however, that proclamation for the approved Indian area would

still take "a considerable time."—Sapa [Text] [Johannesburg THE CITIZEN

in English 25 Oct 85 p 5]

76
TEACHER UNIONS AGAINST LABOR INVESTIGATIONS—Cape Town—Teachers' organisations

in the Western Cape have warned of action if steps are taken against members of

the profession in the wake of the Labour Party's decision to investigate the

actions of 42 teachers and principals. The 19 000-strong Cape Teachers' Professional Association (CTPA) said it "would not hesitate" to take "the required

action" when there were signs that the profession was being assailed. The

newly formed 1 800-strong Western Cape Teachers' Union (WECTU) said its members "would react to any action taken against the teachers" alleged to have

"assisted" with the schools boycott. A statement issued after an emergency

meeting of the CTPA executive on Monday said pupils, teachers and the broad

community were "in deep turmoil as a result of the profound agony and rage

imposed over a long period by the scourge of apartheid". When they protested

peacefully the anguish was compounded when children were shot in the streets,

the statement said. To add insult to injury, Ministers "responded with threats

and bully tactics by making cheap politics of our profession". The CTPA rejected this and would not be deterred from acting as watchdog over the profession and its members. It sent a "calculated signal" to the Minister (of Education and culture, Mr Carter Ebrahim), that it would not hesitate to take required action when there were signs that the profession was assailed. [Text]

[Johannesburg THE CITIZEN in English 23 Oct 85 p 9]

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14 November 1985

SWAZILAND

BRIEFS

MAIZE BAN LIFTED—Mbabane—The Swaziland Government has lifted a ban on the

importation of the maize products from South Africa, it was reported yesterday. The ban was imposed two months ago to protect local maize farmers from

what the government said was "unfair competition" from South African maize

producers. Swazi maize farmers had complained their stocks of maize were lying

rotting as local wholesalers perferred to buy South African maize products because they were of better quality and cheaper. [Text] [Johannesburg THE

CITIZEN in English 24 Oct 85 p 4]

ILLEGALS ARRESTED—Mbabane—Swazi police said yesterday about 300 illegal

Mozambican immigrants had been arrested in a country-wide sweep and said an

armed man killed resisting arrest earlier this week was a Mozambican soldier

named Mr Raphael Fazuda Masinga. Police spokesman, Superintendent Solly

Mkhonta said Mr Masinga opened fire when police arrived at a house in the

central town of Manzini, wounding a constable in the thigh. Mr Mkhonta said

documents found on Mr Masinga's body showed he was stationed at the town of

Namaacha, just over Swaziland's northern border with Mozambique, and had

been on leave from his unit since last month. Police have blamed an upsurge

in violent crime during the past 18 months on Mozambicans who have entered

Swaziland illegally. Mr Mkhonta said the intensive police sweep to counter

the growing crime wave was launched on Monday after a South African tourist

was murdered by two armed men at the weekend. [Text] [Johannesburg THE

CITIZEN in English 18 Oct 85 p 12]

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ZIMBABWE

DEFENCE SECRETARY SAYS MNR MUST BE CRUSHED

Harare THE HERALD in English 16 Oct 85 p 1

[Text] Crushing the dissident scourge of the Mozambique National Resistance

will bring great relief to Zambia and Malawi, who like Zimbabwe, have

suffered from bandit activities, the Secretary for Defence, Cde James

Chitauro, said in Nyanga yesterday.

Reviewing a pass-out parade of 13 Infantry Battalion at the Battle

School, Cde Chitauro said Zimbabwe's army and air force were fighting

side by side with the Mozambican forces at the invitation of President

Maehe1.

Zimbabwe was pleased at the call for assistance because that country gave

Zimbabwe generous and vital support and encouragement during the liberation struggle. Rail and road routes for Zimbabwe's imports and exports

as well as the oil pipeline would also be secured and dependence on South

African routes would fall away.

Cde Chitauro said the MNR's aim was destroying for the sake of destroying

and not from any altruistic desire to liberate anybody.

"The task may take some time to complete and battalions such as yourself

will undoubtedly be called upon in turn to play a part in the battle for

freedom from the destructive forces in Mozambique."

The 11-week training the soldiers had undergone required every officer

and man to be 100 percent fit for the rigours of bush warfare and conventional combat.

The defence secretary told the soldiers that the enemy had to be faced by

a confident and professional force.

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14 November 1985

ZIMBABWE

LOCAL COMPANY WILL BUILD NEW HOUSES OF PARLIAMENT

Johannesburg SUNDAY TIMES (BUSINESS Supplement) in English 13 Oct 85 p 24

[Article by Ciaran Ryan]

[Text]

THE Zimbabwean Government intends awarding the

contract for building its new

Houses of Parliament to a

Zimbabwean company.

The move is aimed at disarming criticism from local

construction companies,

which claim that the government has awarded the contracts for all major capital

projects to foreign companies.

The building industry in

Zimbabwe is running at 30%

capacity, but staff lay-offs

have been kept to a minimum

because of laws which make

it difficult to dismiss staff.

As a result only 10 000

workers have been laid off in

an industry that normally

employs 50 000.

The cost of the Houses of

Parliament is estimated at

Z$100-mlllion (R154-million

at an exchange rate of Z$0,65

to the rand), though how it

will be financed is not yet

certain.

The government is hoping

that private donations will go

some way to paying for the

new building. However,

many Zimbabweans argue

the present parliament is

adequate and that the money

would be better spent elsewhere.

Zimbabwean contractors

have been forced to search

for work in neighbouring

states while riding out the

slump in the building industry.

The contract for the

Houses of Parliament will

mollify opposition from

builders. There was consternation when the contract for

the Harare Sheraton Hotel,

due to open next month, was

awarded to a Yugoslav company, Energoprojekt, at a

cost of Z$100-million.

Conferences

The Yugoslavs were able

to offer financing in the form

of a soft loan to the Zimbabwean Government. Local

builders are adamant that

they could have built the

hotel at a lower price, but

could not compete with the

Yugoslavian financial package.

The cost of the Harare

Sheraton, which boasts the

largest and most modern

conference facilities in

Africa, was originally estimated at Z$65-milIion.

Contractors have pointed

out that the exclusive Monomatapa Hotel in Harare was

built 10 years ago at a cost of

only Z$6-million. At current

prices it would cost only

Z$20-million to build. However, conference facilities in

the Harare Sheraton are

booked up for the next 18

months.

Next year Prime Minister

Robert Mugabe becomes

head of the non-aligned

movement, and Zimbabwe

will host international conferences at the hotel for the

duration of his three-year

tenure.

A giant sports stadium outside Harare is being built for

an undisclosed sum by the

People's Republic of China.

The Chinese were also able to

offer financing in the form of

a soft loan, which ruled out

local participation.

The housing market has

lifted for the first time since

the start of the bush war in

1972. House prices have risen

by up to 100% in exclusive

suburbs of Harare, and by

about 30% in cheaper areas,

over the past 18 months.

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14 November 1985

ZIMBABWE

SOUTH AFRICAN ECONOMY CRISIS MIXED BLESSING

Johannesburg SUNDAY TIMES (BUSINESS Supplement) in English 13 Oct 85 p 4

[Article by Ciaran Ryan]

[Text]

SOUTH Africa's floundering economy has'

brought mixed blessings for Zimbabwe, which

has been basking in economic prosperity for the

past year.

The Zimbabwe dollar has j[

appreciated by 22% against

the rand over the past year, i

bringing a welcome reduc- ;

tion In the country's import ;

bill.

The strength of the Zim- '

babwe dollar is in contrast to

previous years when it depreciated steadily against the

rand.

This has enabled Zimbabwe to conserve its scarce

foreign-currency reserves.

About 18% of Zimbabwe's

imports come from South

Africa.

But there is considerable

fear in Zimbabwe's business

community that the imposition of a 10% import surcharge by South Africa will

strangle those industries dependent on the South African

market.

A number of textile manufacturers, among them the

well-known David Whitehead

label, are in danger of being

squeezed out of the South

African market by the surcharge.

Almost 80% of Zimbabwe's

manufacturing exports find

their way to South Africa,

and the potential loss to the

economy in foreign-exchange.

terms is incalculable.

Enraged

There are also fears that

the economic boom may be

shortlived due to a combination of inflation and recent

increases in minimum wage

levels.

Farmers are enraged that

the government, without consultation, doubled the minimum wage for certain categories of farm workers to

Z$143 a month.

The increase in minimum

wages has benefited the domestic market, which may go

some way to compensating

manufacturers for any loss of

business brought about by

South Africa's import surcharge.

On the credit side Zimbabwe recently secured a

European Economic Community beef-import quota of

8 100 tons, worth Z$65-milIion

(at an exchange rate of 65c to

the rand) in foreign exchange.

Buoyed by this recent success, exporters are likely to

move their marketing efforts

away from South Africa to

Europe and other overseas

markets.

Zimbabwe's civil service

employs 80 000 workers and a

similar number in the armed

forces at a cost to the country

of Z$l-billion a year, which is

a staggering 30% of the budget.

The budget deficit in 1985

is expected to be about Z$lbillion after revenues of

Z?2,5-billion have been cöl*

lected. The deficit will be financed, by government borfrowings.

Alienate

This, together with the new

minimum wage levels, will

jack up the rate of inflation,

currently running at 167o, to

27% next year, according to

one economist.

The inflationary spiral will

be difficult to stop once in

motion, and is certain to

alienate the poor, who are the

Intended beneficiaries of

minimum-wage regulations.

The news from the agricultural sector continues to surpass even the most optimistic

predictions. The value of

crops grown by peasant farmers is expected to double to

Z$205-milhon this year compared with 1984.

Peasant farmers will grow

40% of the country's maize

crop this year. More than 2-

million tons, valued at Z$300-

million, will be delivered to

the Grain Marketing Board

by farmers and a further 1-

million tons will be consumed on the land.

Zimbabwe normally consumes 1-million tons of maize

a year, leaving more than

half the maize crop available

for export.

Record prices for tobacco

will push export earnings

from last year's level of

Z$350-million to more than

Z$400-million. Tobacco

prices at the start of the season averaged 220c a kg, but

quickly rose to 280c.

This year's tobacco crop is

expected to be 113 000 tons, a

little below last year's

119 000 tons.

The cotton crop is expected to be about 300 000 tons

this year, almost 17% more

than last year's 250 000 tons,

again largely due to the efforts of the peasant farmer,

w' .. now grows about 40% of

th: iTop. About 80% is exported and foreign-exchange

earnings are likely to exceed

Z$140-million.

Kidnapping

Gold exports, the secondlargest earner of foreign exchange in Zimbabwe, will net

about Z$200-mlllion for the

treasury.

Tourism, worth Z?100-million, has become one of the

largest earners of foreign exchange in Zimbabwe. The

country has only recently'

overcome fears about the security situation after the kidnapping of six tourists in

Matabeleland in 1982.

Emigration has slowed to

a trickle. In July this year

only 630 people left the country compared with an average of 1 300 a month in 1984.

Political unrest in South

Africa has ruled out this

country as a destination for

Zimbabweans. The number

of ex-Zimbabweans returning home is impossible to

quantify because many did

not formally emigrate In the

first place.

One estimate puts the

number returning at 90 families a month. But the government has closed the door on

many former residents and

appears willing to take only

those who have skills.

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ZIMBABWE

CANADIANS PINPOINT 32 AREAS WHICH MAY HAVE MINERALS

Harare THE HERALD in English 17 Oct 85 p 5

[Text] A Canadian mineral exploration team which is making surveys in

Zimbabwe has identified 32 areas which potentially have mineral deposits.

The Minister of Mines, Cde Richard Hove, who made a tour of the site under

survey about 30 km north-west of Gweru was told by the senior geo-physicist

Mr Keith Standing that they were looking for gold, nickel, copper and zinc.

Mr Standing said the first phase of the programme started with aerial

surveys which covered a third of the country and the second phase included

a detached electro-magnetic survey in four areas between Gweru and Nkayi,

Shangani, Fort Rixon and Lonely Mine.

Commenting on the results of the survey, Cde Hove noted that mining was

an expensive venture which required substantial capital. Nevertheless,

he was convinced that the surveys taken would boost mining expansion in

the country.

The Zimbabwe Mining Development Corporation was not yet prepared to

undertake such a large expansion programme. "Although there are large

mining corporations, such as Anglo American, they have been reluctant

to undertake such mining ventures," Cde Hove said.

Drilling tests would be started in a few weeks after negotiations with a

local drilling company.

The ZMDC, an arm of the Government responsible for public investment

in the mining sector, will also be responsible for establishing and advising

mining corporations on small-scale mining.—ZIS

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14 November 1985

ZIMBABWE

HOT ROLLING MILL PROJECT MAJOR STEP FOR INDUSTRIALIZATION

Harare THE HERALD in English 12 Oct 85 p 2

[Text] Tube and Pipe Industries yesterday took a major step in industrialisation when .it'commissioned a $3,5 million hot rolling mill project at

its Willowvale factory.

The mill will enable the company to roll hot-rolled strip for the first

time in Zimbabwe using 100 percent local input. A cold rolling mill is

expected to be commissioned next year resulting in a foreign exchange

saving of about $1,5 million a year.

Over the past two years TPI has installed a second-hand Sezimir hot

rolling mill and a high reduction mill from Britain. Ancillary parts

such as a billet heater, traveling furnace, cooling system and electronic

equipment were locally manufactured said a statement issued by the company

yesterday.

Officially commissioning the mill yesterday the Minister of Industry and

Technology, Cde Callistus Ndlovu said the mill would help Zimbabwe meet

its demand for hot-rolled strip and plate.

"This is the line of industrialisation the Government is encouraging in

the country—import-substitution industrialisation coupled with the

capacity to export."

Cde Ndlovu commended the company for launching an export drive.

TPI is manufacturing a specialised exhaust system, partly for export

to neighbouring countries, and for domestic supply based on a 100 percent

local content.

With the commissioning of the cold rolling mill next year, he said, the

company would strengthen its position as the major supplier and manufacturer of steel piping for furniture tubing, irrigation pipes, piping

for the mining industry and galvanised water pipes—all important inputs

in the country's economy.

83
The minister also commended the company for building up a strong workers

committee which had been able to facilitate "excellent" labour/management

relations.

During the commissioning yesterday, a draw was conducted by the Speaker

of the House, Cde Didymus Mutasa, in which three lucky workers won trips

for two to Victoria Falls, Kariba and around Harare.

Cde Mutasa also congratulated the management of TPI for creating happy

relationships between employers and employees "that we are beginning to

see in industries today."

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14 November 1985

ZIMBABWE

NATION NEEDS OWN RESEARCH FOR TECHNOLOGY SAYS PROFESSOR

Harare THE HERALD in English 12 Oct 85 p 2

[Text] There is a need for Zimbabwean scientists to put more emphasis on

general scientific research to ensure that there is adequate information

to solve technological problems, says the chairman of Scientific Council

of Zimbabwe, Professor Henry Dzinotyiweyi.

Professor Dzinotyiweyi, who is associate professor of mathematics at the

University of Zimbabwe, told the annual meeting of the Zimbabwe Scientific

Association on Thursday night that the scientific community had a double

role.

Scientists had to look at technological problems and apply already-known

results as solutions. The Government understood this role which included

transfer of technology1, import substitution and the promotion of labourintensive technologies in various productive sectors.

But if there was to be long-term development there was a need for

scientific research, to find new results that could later be applied.

But Zimbabwe, like many developing countries, was short of resources for

this sort of work and the Science Council had to identify the priorities.

Professor Dzinotyiweyi said there was also a need to bring in social

scientists to research such problems as diseases associated with industrialisation.

The scientific council believed its role was not just advising the Prime

Minister's Office on scientific matters but also to transform itself

into a platform for science and technology.

For this reason a consultative meeting of scientists had been held last

year. The recommendations made at that meeting had been discussed with

the Prime Minister, Cde Mugabe, and considered by him and the council was

now compiling a report on their implementation.

85
Next month another consultative meeting would be held to present this

report.

The council also had to promote the effectiveness of scientific associations

and was looking into the possibility of a science fair so these associations

could show the public what they were doing.

Since the beginning of this year a committee of the council had been

looking into the quality and circulation of Zimbabwe's scientific publications and the council wanted to improve both, and maintain high standards.

The council was concerned at the number of seminars and workshops that

simply repeated the work of similar gatherings in Zimbabwe and outside

and there was a need for more co-ordination to prevent this.

The Zimbabwe council had been a member of the Commonwealth Science Council

for some time and had, through this contact, been able to support a number

of projects and send scientists—10 alone since the middle of last yearto relevant meetings.

The council, said Professor Dzinotyiweyi, wanted to encourage participation

in the international community and with other national associations in the

East and West and in Africa. There was a problem in the Southern African

region because of the apartheid system in South Africa and the effect it

had on work in that country. Zimbabwe could have nothing to do with such

a system.

Science and technology were the main weapons to fight underdevelopment in

Zimbabwe and this was a challenge to all the country's scientists.

Earlier in the evening the association elected Dr Charles Goromonzi as

new president to replace Dr David Cumming. Dr Goromonzi, an engineer with

the Industrial Development Corporation, was vice-president in the last

year.

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14 November 1985

ZIMBABWE

BRIEFS

NORWEGIANS PLEDGE RED CROSS AID—The Norwegian Red Cross has pledged more

than $19 000 to help the Zimbabwe Red Cross build Blair toilets and

protected wells in Kagore area, Nyanga, the ZRC under-secretary for

projects, Cde Pascal Midzi, said in Harare yesterday. "The project will

cover 173 families who will be grouped 10 people for a well. Already

the well sites have been selected and bricks for the Blair toilets have

been moulded by the local people," he said. The project is being carried

out with the help of the Ministry of Health, Agritex, the Red Cross and

other volunteers. "If funds permit we would like to spread the exercise

throughout the country," Cde Midzi said. The Red Cross was also starting

tree planting projects in badly deforested areas throughout the country.

The project, which started last year, is being funded by the Swedish Red

Cross at a cost of $24 000. Last year, with the help of the Forestry

Commission, more than 15 000 trees were planted in several parts of the

country. The exercise covered eight woodlots in the country's eight

provinces. "This year, with the help of our Swedish and Danish counterparts, we hope to plant more than 36 000 trees. The aim is to initiate

environmental conservation awareness," Cde Midzi said. [Text] [Harare

THE HERALD in English 17 Oct 85 p 5]

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