Growing Debt of Sugar Industry
Port Louis L'EXPRESS in French 21 Jul 83 p 6

[Text] "The sugar industry's debt at its highest level -- that is, in July and
August of each year -- has steadily increased from 170 million rupees in 1976
to 538 million rupees in 1982. These figures reflect the sad fate of the in-
dustry," Yvan Lagesse, acting president of the Mauritius Bankers Association,
said yesterday before the commission investigating the sugar industry. Lagesse
had been invited to address the group.

Lagesse, who is also one of the directors of the Commercial Bank, explained
that if one considers that an average cutting is now worth 2 billion rupees,
one has to realize that the maximum sums borrowed by the sugar industry, com-
pared with income from a normal harvest, have increased from some 8.5 percent
to nearly 27 percent over the past 7 years, without mentioning the fact that
the industry has had to borrow for medium and long periods of time.

Lagesse mentioned the three main types of loans effected by the sugar industry:
crop loans (of which we shall speak further on, generally repaid after a year);
medium- and long-term loans for the purchase of equipment or development invest-
ments; and finally, loans contracted abroad. (All the figures given by Lagesse
are taken from the consolidated statements of 12 commercial banks operating in
Mauritius, as prepared by the Bank of Mauritius, and the figures for crop loans
include advances made to all categories of borrowers in the industry.)

To illustrate the deterioration of the financial situation of the sugar in-
dustry from 1976 to 1982, Lagesse submitted the following picture concerning
the lowest and highest levels of the crop loans:

Advances to the Sugar Industry (in millions of rupees)

Calendar Year Low High
1976 59 170
1977 162 299
1978 193 333
1979 319 400
1980 178 417
1981 224 504
1982 386 538

"This picture shows that the lowest figure of 59 million rupees, going to

386 million rupees, was realized over the past 7 years. It also shows that
despite the fact that the 1979 devaluation reduced loans of 319 million rupees
to 178 million, the different increases in production costs and taxes, when
added to the poor harvests, helped increase the debt of the sugar industry to
386 million rupees in 1982," Lagesse said.

According to the Bankers Association representative, loans of some 25 percent

of the expected receipts are not an alarming factor in most other industries,
put in the sugar industry, they have troubling implications.

4



DE KOCK'S DETERMINATION TO BEAT INFLATION VIEWED

Johannesburg SUNDAY TIMES in English 24 Jul 83 p 31

[Article by Fleur De Villiers]

[Text]

fident, soft-spoken,
with a natural aversion

to inflie pain.
But Gerhard de Kock calls

Fran fa pole fe Dit
icting

Because, as he points out rue-

“fully. if it doesn’t hurt now, the
Sout

African economy is never
going to return to.the health it

-needs if it is to employ, feed,

house, clothe and otherwise sat-
isfy the fast-rising aspirations of
its people. :

Unlike Maggie and Ronnie,
Dr de Kock isn’t a politican, so
he cannot use ‘or-political
‘weapons in his fight against the

disease that is eroding the value

of South Africa’s currency at the
rate of 13 percent a year, that is

reducing pensioners to pemury:
‘sending property | prices ito the
stratosphere and. pricing this
country’s expofts out-of world
market

But he does have one weapon
which makes politicians shake

in their shoes and he is deter-
mined to use it.
He can refuse to print more

“money.

He can refise to
expand South Afri-
ca’s money supply
with Reserve
crWhich ia why

ic a
few months ago he
was able to shake
the business world

\their fingers burned,

why the prime lending rate has
been allowed to rise-and why
mortgage. rates are’ climbing
back to-17 percent and more,

Dessssice ont eam nas
although the US economic re-
covery is well under way, South
ition is going to be stuttering
ony iow for an-
en ee

‘famous phrase, is too ghastly to
| contemplate. 7
<.. -It could, he. warns sombrely,
wean an inflation: rate in the
“very short term of 25 to 30 per-
“cent, a depreciation of the rand,
“the devaluation of South Afri-
‘ ca’s creditworthiness and its re-
duction to the perilous position
of a defaulting Mexico or Brazil.
: . And-South Africa, more than
any other country, has to pay its

SOUTH AFRICA



cso:

dent Sebe to be made
life President for his
contributions to the de-
velopment of Ciskei. The
motion was unanimously
adopted.

President Sebe’s bust
was unveiled in front of
the assembly buildings
at the official opening of
the session.

There was also the
_National Assembly Bill
on the Rules .of Proce-
dure. It gives the assem-
bly powers to sit as a
court of law to punish by
fine or imprison any per-
son who acts in contenapt
of the assembly.

Also important was
the Promotion of Tour-
ism Bill whose object is
to develop and promote
the tourist industry in
Ciskei.

The standard of de-
bates was generally high
and members were en-
thusiastic and moti-
vated. The new Minister
of Justice, Mr D. M.
Takane, and the former
Minister of Internal
Affairs, Mrs F. F.
Matiyase, were impress-
ive. Mr Takane was fac-
tual and brief and to the
Point.

The Deputy Whip,
Chief D. N. Mavuso, con-
tributed more than any
other member.

Although the majority
of members contributed
to the debates some nev-
er opened their mouths
except during the sing-

3400/1738

ing of the Lord’s Prayer

‘during the morning
~prayers. Most of the si-
jent members were
chiefs.

The Cabinet Ministers
came across well except
one or two who had diffi-
culty in reading their
speeches.

Many queries were
\ raised during the discus-
‘sion of the policy
speeches of the Depart-
ment of Agriculture and
the Department of Inter-
nal Affairs and Land Te-
nure, and were not
answered by the respec-
tive ministers.

| A frontbencher and
brother-in-law of the
Sebe brothers, Chief S.
M. Hebe, was one of the
vociferous and fiery con-
tributors. His language
at times was robust. Call-
ing for the silencing of
Radio Xhosa in the Cis-
Kei, he said it should
*“voetsak’.

The chairman of the
Committee on Standing
Rules and Internal Mat-
ters, Chief J. T. Maband-
la, who is Minister of
Posts and Telecom-
munications, was strict
in preserving the proce-
_dure and decorum of the
house. He would stand
up whenever he saw
(something not in keep-
ing with the decorum
and always saw to it that
high standards were
maintained.

Caucus meetings al-
ways took a long time
and sometimes lasted

31

nti] lunch time with re-
‘porters waiting for the -
“proceedings to begin in
\the assembly.

The jocular Speaker,

» Mr C. Ngxwana, amused
the house with his jokes,
terms and English ac-
cent.

Observers lamented
the absence of opposi-
tion in the assembly. The
customary vote of no
confidence in the gov-
ernment was not there
because there is no
opposition in Ciskei.
“There was little critic-
ism of the government.

Mr Xaba criticised the
: Department of Internal
: Affairs during the dis-
cussion of its policy
speech and retracted his
statements the following
day after a long caucus
meeting.

An- opposition and
constructive criticism is
always beneficial to any
goverment. It acts as a
mirror for the govern-
ment to see if everything
is in order.

Discussions in the
assembly took a monoto-
nous direction with
speakers “commending
or praising” the Minis-
ters or the government
for one thing or another.

Observers believe
that, since Ciskei has
only one party, it should
allow self-criticism and
that members should be
free to point out any
wrongs they see.



cso:

3400/1738

terville, where rents
were raised by 30 to 60
percent.
The present black
community councils
have shown vividly that
they lack the popular le-
gitimacy to facilitate the
collection of higher
rates. Percentage polls
of as low as six percent
were registered in the
Soweto elections of

. 1978. When Chief Buthe-

lezi in 1980 and 1981
showed interest in par-
ticipating in the new
Soweto election there
were great hopes that a
credible local black au-

‘thority could be estab-

lished. However, the
new constitutional dis-
pensation, together with
the fact that the govern-
ment has still not spelt
out a financial formula
for the new black local
authorities, has come as
a serious blow.

With Inkatha_boycott-
ing the upcoming elec-

-tions the authority

vacuum in the black
townships seems set to
remain. It will cast a
long shadow over our
politics.

Qualified Western ap-
proval for the constitu-
tion rests on the
assumption that giving
coloured people and In-
dians an enhanced con-
stitutional status is a
step in the right direc-

40

tion — that of a¢commo-

‘dating urban blacks as
well. The setbacks with
the new black local au-
thorities will seriously
put a question mark
over that assumption.

It also raises an im-
portant question about
the future stability of
South Africa. Sam No-
lutshungu, a prominent
black sociologist, argues
in his important new
study Changing South
Africa: Political Consid-
erations (David Philip,
1983), that the accommo-
dation of the black mid-
dle class “presupposes
a black middle class
with considerable ideo-
logical and political in-
fluence over the rest of
their kind, sufficient to
deflect workers and
others less privileged
from the paths of revo-
lution” (p 122), :

Clearly the new sepa-
rate dispensation for ur-
ban blacks makes it all
but impossible for mid-
dle-class blacks to fulfil
that crucial role.

The so-called step in
the right direction of
the proposed new con-
stitution could at the
same time well be one
towards a greater tur-
moil in our black town-
ships. And that’s where
the real heart of South
Africa’s political prob-
lems lies.



83 p 1678]

GAMBIA

BRIEFS

IMPORTS INCREASE--The Gambja imported more goods that it exported in March
this year, according to the Central Statistics department. The department's
summary of external trade figures.for March, 1983, puts The Gambia's visible
trade deficit at D19.41m. during ‘the period under review compared with D6.98m.
in the previous month%and D4.4m.. in March, 1982. According to the department,
The Gambia imported goods worth ‘D31.77m. in March this year, representing an
increase of D13.68m. over thé previous month's imports at D11.0lm. over that
of March last year. Exports, on the other hand, increased slightly from
Dll.11m. in February this year to D12.37m. during the month under review.
This, however, shows a drop of D3.95m. when compared with the export figures
for the corresponding month last year. The bulk of the imports during the
month under review are classified under "food and live animals" group, "bev-
erages and tobacco", machines and transport equipment and manufactured goods.
Shelled groundnuts, groundnut oil and fish and fish products accounted -for
most of The Gambia's exports. [London ‘WEST AFRICA in English No 3440, 18 Jul

LIVER CANCER CAMPAIGN--Efforts are being intensified to raise funds for a vac—
cination campaign to prevent liver cancer. The Gambia's most common cancer,
according to The Gambian News Agency. It said the campaign is against hepa-
titis B virus infection which puts a person at a high risk of having liver
cancer. It is said that liver cancer kills one in 50 Gambian men every year.
The man in charge of the campaign, Dr. Robin Ryder of the Medical Research
Council (MRC), told the agency that the French drug manufacturers, Institute
Pasteur, is donating $3m. (about D7.5m.) towards the campaign, whilst WHO has
agreed to help raise the balance of $3m. He expects the vaccination campaign
to start in January, 1984. He said it will affect 75,000 children in The
Gambi during its five-year, duration. [London WEST AFRICA in English No 3441,

25 Jul &3 p 1733]



LOW PRODUCTIVITY WEAKENS SA'S EXPORT POSITION

Johannesburg THE STAR in English 26 Jul 83 p 20M

[Article by Stan Kennedy]

[Text]

‘South Africa’s high inflation is
being fuelled by. low productivi-
ty — which has failed to keep
pace with wage increases — and
as a result exports are losing
their competitiveness.
‘+ Although salaries and wages
-in the non-farming sectors rose
257 percent from 1975 to 1982,
«workers could buy only 11 per-
“ent more goods and services.
*! Labour productivity in this
period rose 10,4 percent. This
“proves, says Mr RM du Plooy,
i senior product manager (eco-
‘nomics and financial division)
sof the National Productivity In-
vStitute, that “we, as a nation,
cannot buy a higher standard of
«living; we must earn it by pro-
,ducing more goods and ser-
vices”.

. Improvement of productivity
Jshould be seen as a top priority,
_ “because it determines the stan-
“dard of living: of our peoples,
competitiveness of our indus-
“tries in international markets
‘and influences our economic
“growth rate and rate of infla-
tion”.

Labour productivity in manu-
facturing was up only 20 percent
from 1975 while salaries and
wages were 176 percent higher,
highlighting the fact that salary
_and wages increases were not

‘entirely financed by labour pro-
‘ductivity improvements.

In the tobacco industry, for
‘example, labour productivity
“was three percent lower in 1982
than in 1975, while salaries and

wages were 247 percent higher. -

68

Mr du Plooy says: “Demands
“for higher wages are based
largely on cost of living grounds
. .. productivity is neglected as a
bargaining issue in wage deter-
minations.

“On the other hand, product

price increases seem to be the
‘only possible response to any
cost increase and it seems that
the wage-price spiral, which be-
came a reality in the 1970s, will
be present through this decade
as well.”

He says inflation can be
brought down by higher produc-
tivity, which involves more effi-
cient use of all resources — cap-
ital, labour, raw materials and
energy — to ensure maximum
output at minimum cost.

Higher productivity will jus-
tify wage rises that will not
have to be matched by equal or
higher product price increases,
resulting in real wage increases.

Prices of all SA manufactures
rose 140: percent from 1975 and,
1982 and wages in all industries,
except food, leather and foot-
wear, were 176 percent up. Ris-
ing wages and relatively small
labour productivity improve-
ments, pushed up labour costs,
which in the manufacturing sec-
tor rose 131 percent.

Resource price rises that ex-
ceed product price rises tend to
trigger resource substitutions;
for example, capital for labour.

“Workers and labour unions
should realise the danger behind
their actions. It is just possible
that by continuously demanding

SOUTH AFRICA



SOUTH AFRICA

DISCIPLINE THREAT ISSUED BY BROEDERBOND

Johannesburg THE CITIZEN in English 2 Augu 83 p 9

(Text } : DISCIPLINARY ste i ;

7 ‘eps cious people will have
will be taken against ir mil "
members of the Afrika- their minds set at ease”.
ner Broederbond who The purpose of the
use their membership as _ Broederbond, _accord-
influence to get appoint- | ing to Dr de Klerk, was
ed to certain positions. to think and discuss ac-

These were the words tual things and to for-
Dr Wimpie De Klerk, , Mulate a point of view
editor of Rapport, said for the other members.
yesterday. Asked. whether one

‘Addressing the stu- “had to be a member of
dent society, RAU- the Broederbond other-
POLS, at the Rand wise you will not make
Afrikaans University. | it,” Br De Klerk said

Dr De Klerk said that | such a statement was
there were about 13 000 totally against the writ-
registered members of ten constitution of the
the Broederbond. . Broederbond.

‘There was only one _ The split in the Nat-
niain qualification for ional Party had also left
membership, an appli- its mark on the Broe-
cant had to be an Afri- derbond. It was the
kaner in every word, he spectrum of the political
said. debate in the country,

“Because of the ex- . headded.
clusiveness of the Broe- | There were Afrika-
derbond, it is important ners with different pol-
to be more open about itical views in the Broe-
the activities of the or- derbond, Dr De Klerk

_ ganisation so that suspi- _ said.

cso: 3400/1737

50



NEGATIVE GROWTH RATE PREDICTED FOR SECOND YEAR

Johannesburg THE CITIZEN in English 29 Jul 83 p 25

[Text]

ANEGATIVE growth
rate in South Africa
this year for the second
year in succession, is
predicted in an econ-
omic report by the Lib-
erty Life group.

‘And the prospects of a
broadly based recovery
appear to be at least a
year away, the report
states.

cso: 3400/1737

‘premature in the
fourth of 1982
owing to the run up in the
gold price to over $500,
which was ived to be.
permanent.

48

SOUTH AFRICA



SOUTH AFRICA

EAST RAND COUNCILLOR GETS DEATH THREAT
Johannesburg SOWETAN in English 4 Aug 83 p 2

[Article by Mzikayise Edom]

[Text] THE reign of terror Captain S$ Tshabalala, _, said the police were not
against East Rand com- chief of the Daveyton taking this matter
munity councillors conti- police, confirmed - this lightly. They were work-
nued this week when the yesterday and said the, ing around the clock to
chairman of the Davey- police, were investigat- trace the culprits and
ton council; Mr Tom ing. crack the gang. They
Boya, received a letter The letter warned Mr _—- were also still trying to
threatening him and his Boya to have his family _ investigate the killing of
family with death. with him‘ wherever he Mr Ratale.

Mr Boya received the. went because the Mafia- The killer is still: at
letter hardly three style gang after him was _large but the police say
weeks after the: gunning = «paid to kill”. The letter their investigations’ are
down of another coun- —,_aiso warned him to have —_—_bearing fruit.
cillor, Mr Jacob “JR” —* protection for himself ‘Mr Ratale was killed
Ratale, in the township. and his children, at in his shop by an un-
The anonymous writer home and at school, be- known gunman who
of the letter claimed he cause the gang was there pumped seven bullets
was “registered to kill to “kill and not to play”. into him. He was the
and, hired to kill” Mr It-also said: “I would "second Daveyton coun-
Bova. like to tell you not to go cillor to be killed in just

The letter is hand- and ask Mr Tshabalala cover a year. .
written, does not iden- (the chief of the Davey- On July 1, 1982,
tify the author and gives ton police) for protec- Councillor Andrew
a crude address — tion. No more public Nxumalo was killed by
“headquartets, Chica- meetings at night be- . an unknown gunman at
80” —asitssource. cause the Mafia are _| his house. His killer is

there too, to do the | still at large. in D:
job.” e people in Davey-
: POLICE job ton Mio not know what

Mr Boya told The SO- KILLING | the motives are behind
WETAN that he had Captain Tshabalala _,_ these cold-blooded kill-
given it to the police. | ings.

cso: 3400/1737

54



cso:

3400/1741

resented a 28,3 percent
increase against the pre-
vious year’s figure. .

A 32,1 percent growth
in investment income —
from Ri 359-million in
1981 to R1 795-million in
1982 —. is attributed
largely to the general in-
crease in interest rates
and growth in invest-
ments held on behalf of
policyholders.

At Ri 208-million total
benefits paid increased by
29 percent, this figure in-
cluding an amount of
R133-million in surrend-
ers on individual policies.
Commenting on the latter
fact the review states:
“Because of concern for
the loss of benefits which_
occur with surrenders, the
industry has an ongoing
programme of conserva-
tion for policyholders, but
due largely to economic
conditions, surrenders on
individual policies rose by
R40-million for the year.”

Nearly 950000 new
policies were issued dur-
ing the year, representing
recurring annual premi-
um income of R512-mil-
lion and single premium
income of R186-million.

Tables reflecting the
break-down in this area
show that average premi-
ums paid for both individ-
ual ordinary business and
retirement annuities rep-
resented increases over_
the averages for preced-
ing years, regarded as ef-
forts in seeking to com-

58

pensate to some extent
the effects of inflation.

__ This was noticeably so
in relation to retirement
annuities where an ‘in-
crease of more*than 14
percent in average premi-
ums paid per policy was
recorded.

However, while total
premiums for individual
ordinary business rose
from R304-million in 1981
to R414-million (36 per-
cent) there was a down-
turn in income. derived
from retirement-annuities
— from R120-million to
R98-million. .

Commenting ‘on this
aspect, the review says:

. “In view of the pressing
need for the individual to
make adequate provision
for retirement, the indus-
try hopes that this experi-
ence will only be of a tem-
porary nature and will be
reversed in the near fu-
ture.”

An innovation in the
five-yearly statistics in the
review are tables reflect-
ing year on year percent-
age growth in premivm
income, first related to
actual figures reported
_ and then to figures adjust-

ed in terms of the 1982
rand.

The latter table makes
it clear that there has
been growth in real terms
in this source of income
throughout the five-year
period with a 10 percent
increase reflected in the
past year. —Sapa.



SA IN 'PRETTY SERLOUS' RECESSION, SAYS LTA CHAIRMAN

Johannesburg THE CITIZEN in English 29 Jul 83 p 22

[Article by Don Wilkinson]

[Text]

BUILDERS and civil
engineers LTA turned
over more than R1-bil-
lion in their year ended
last March, but it
won't do so this year,
says chairman Zac de
Beer in his review with
the group’s accounts.
There are _ several
reasons which can be en-
capsulated, however, in
the chairman’s remark
that “‘gnerally, South

- Africa is now in a pretty

serious recession”.

The current calendar
year will see a negative
growth rate of around 2
percent im the economy,

with stubbornly high in-

flation which the author-

ities are rightly trying to
cut down via “heavy cut-
backs in Government
spending and tight monet-
ary control”.

Dr De Beer endorses
the view that an upturn
may be expected around
mid-1984 “which suggests
that no real improvement
in (LTA’s) activities can
be looked for until 1985”.

The group’s construc-
tion division, the princi-
pal sector of the business,
has three divisions: earth-
works, civil engineering,
and building. The first

two are heavily depen-
dent on public sector
spending — earthworks,
including roads, getting
about 90 percent of its
work from this source,
and civil engineering,
some 70 percent. -

And while LTA still
has such substantial work
on its books, the cutbacks
in Government spending
mean that there is less
and less such business
available and then only at
highly competitive margin
—-slashing prices.

- Dr De Beer signs his
review as at July 18, not-
ing that LTA had R830-
million of work on its
books, down from the
R878-million at _end-
March, and from R885-
million at end-March,

The end-March 1983
split was about 76 percent
on the building, civil en-

}gineering,, roads and
earthworks side, and the
| balance from the rest of
| the business, including in-
| dustrialised building.
| Public sector spending,
LTA feels, is not likely to
show any rise over the
- next 12 months, and there
' has also been little multi-
discipline tumkey work
available — though the

46

SOUTH AFRICA

group is well placed if
there is any international
revival.

So, while the downturn
has eased the skilled staff
and labour situations, it
has intensified the compe-
tition for what little busi-
ness is available.

On the plus side,
LTA’s liquidity has im-
proved considerably, with
the debt-equity ratio
down to 24 percent from
the previous year’s 43
percent, and to the extent
that there may have been
some  over-conservative
valuations of contracts in
‘progress, a potential pro-
fit cushion.

On the negative side

* again, but not quantified,

is the problem that the
group is having with re-
ticulating Soweto.

The undertaking “re-
mains our largest single
problem, and we are still
carrying a very large pro-
vision against possible
loss . .. we continue to
experience serious diffi-
culties in obtaining agree-
ment on administration
procedures and particu-
larly in establishing rev-
enues to which we are en-
titled”.



thinking only of their profits rather than the higher interests of the
nation.

Nor could the official statements heard in Britannia on Tuesday erase the
memory of the speeches hostile to the sugar industry delivered to the Legis-
lative Assembly by Harish Boodhoo, and taken up again on the front page last
March by his party's organ, LE SOCIALISTE. The former leader of the PSM
[Mauritius Socialist Party] claimed, among other things, at that time, that
racism, the exploitation of man by man and contempt for the little people
still prevailed within a sugar industry whose barons gorge themselves on
"chatini of deer."

And how, moreover, can the threat of expropriation put forth in Belle Rose by
the prime minister after the reestablishment of the 75 percent surcharge on
the tax applicable to the sugar exports be forgotten? How can the announce-
ment by Lutchmeenaraidoo that, the Avramovic Commission notwithstanding,
this 75 percent surcharge would be maintained--doubtless because in the realm
of electoral one-upmanship, the politicians have not as yet invented anything
better--be forgotten? But this will come...

It was very agreeable of Deerpalsingh to make mention of the merciless compe-
tition prevailing on the international sugar market, and to go on to discuss
the urgent need for the Mauritian sugar industry to invest, in order to
finance the technological changes which will guarantee its efficiency and
competitive capacity. However, the reality is different.

The production infrastructure of this sector is hopelessly antiquated, and
the day is not far off when, like a number of other sugar-producing countries
in the Third World, Mauritius will see its sugar production beginning to de-
cline year after year. It is a sign of the times that our last record year
was back in 1973. It has been 10 years now that we have not been capable of
breaking the 700,000-ton barrier again. One must be a politician to have no
fear of these blinking red lights.

A reasonable line must be established. The sugar industry, left to its own
devices and having to row against the current, could never nurture an in-
satiable parasite state, pay better wages to its employees, repay its debts,
reestablish its reserves and invest in ever more costly equipment the price
of which can only be partially deducted from the tax on income, all at the
same time.

For the time being, sugar is not oil, and for it to become like that, re-
searchers and research are needed. Now in the research sector, I would be
very surprised if the cadres at the Mauritius Sugar Industry Research Insti-
tute (MSIRI) still had any heart for their work, after the striptease the
politicians imposed on them a year ago in connection with working conditions.

Deerpalsingh also talked about the need for an atmosphere of political sta-
bility, as if an electorate which gave a 60 to 0 majority to an MM/PSM
alliance could be held responsible for the present political chaos leading up
to early general elections.

18



‘way in a hostile world.

use of sound financial
‘management, its credit rating is
‘still good. But runaway inflation
could spell the end of all that.
“We are the last country in the
world that could ask for a res-
cheduling of debt”, he says.

I. is a sobering thought. So so-
‘bering that South hone has no
lalternative but to ignore those
siren voices, which call for
gewit at all costs, and get its

‘tionary house in order.

For, as he says, it’s no longer
a choice between low inflation
(and . “We have to beat
rinflation to grow.”

It would have been very dif-
ferent, if only Maggie and Ron-
nie had not st led in doing
the impossible: restoring faith in
the dollar and sterling.

In the bad old days it didn’t
‘matter if South Africa, in pur-
‘suit of growth ran an inflation
‘rate of 13 percent — because the
average inflation rate. of its
major trading partners was still
higher. :

- Now, in the course of a few
unlikely years, the whole. ball
game has changed. South Africa

stuck at areund 13 percent,
while the Western average has
‘dwindled to about three percent
swith only the dubious examples

pursue the elusive butterfly of
and hang the conse-

growth
juences. Now if -we the

any don’t see it
that way — and their. nents
evoke a rare display bitter-
ness from this -mannered

‘man: ;
~~ “Psendo-economists, get it
‘wrong where a child in standard
‘six would get it right,” he says.”
jena mn
5 pen. gold price falls ai

- the maize is cut by a third
‘and‘he will tell you that you’re
in trouble, that, you will have to,

lower your expectations.

36

<< “But pséudo-economists _be-
_ lieve that: you can still compen-
‘sate for it — that you can buy.
“your way out of trouble by cre-
, ating. wealth. But that means
‘creating money — and we've
_ done too much of that already.”

F... ‘April 1982 to April 1983
the Reserve Bank allowed the
‘money. supply to rise by 19 per-
‘cent, Over ‘the sare ‘iod
: South Africa’s growth rate was.
* minus two percent and it had an
: inflation rate of 13 tt. The
* gums ost didn't add up — or if
they did it was to a disaster.
‘We ‘didn’t apply the policies
‘we said we would,” Dr de Kock
ssays. “Government spending
‘was down and our tax policy
‘was correct but the money sup-
‘ply remained high”

A. this is why, despite the
Yecession, South Africans are
willing to. pay _half-a-million
rand for a seaside flat — be-
jeause they believe that next
“year, or the year after next, that
itch of real estate will turn
em into millionaires.
Dr de Kock recalls his first
days as Governor in 1981 with
South Africa in the middle of a

heedless : pending binge.

“The interest rate was only
nine percent, half of what it was
in London and New York. The.
gold price was falling like a
stone from $850 to $300.
. “Tt was like being a weather
forecaster and watching the
bathers on Clifton Beach, know-
ing that a cold front was aj
proaching and that they would
soon freeze to death.”

The freeze came when South
African interest. rates climbed
to the more realistic level of 20

(percent.

But it was the recession that
wasn’t. Initially all the indica-
tors were there, the gold price
‘fell, the market began to realise
that South Africa was running a
balance of payments deficit,
shares took a tumble, and De
Beers cut its dividend.



SOUTH AFRICA

MUSLIM LEADERS REJECT NEW DEAL PLANS
Durban THE DAILY NEWS in English 26 Jul 83 p 1

[Text] THE powerful Jamaat-E-Ulema of Natal, a school of Muslim theologians,
today rejected the Government's new constitutional proposals as "un-Islamic".

The Jamaat has 200 000 followers of all races. Its decision means that every
mosque in Natal will tell Muslims not to go along with the proposals, present~
ing the Government with a massive wall of Indian opposition.

The decision is the first by the Jamaat opposing the Government on a major
issue.

Executive member Moulana Ismail Abdul Razack confirmed that the Jamaat had
taken its stand and said a detailed statement would be made later this week
giving its reasons.

"We had a successful meeting with the membership of the Jamaat which is made
up of more than 50 religious leaders, all men of great learning and extremely
high qualifications. Our decision is unanimous and we will not have anything
to do with the proposals," said Moulana Razack.

The decision will come as a shock to those Muslims who have been in favour of
the proposals and said that religion and politics do not mix.

By its stand, the Jamaat has made it clear that religion and politics cannot
be separated and that a common stand had to be made.

Those Muslims such as the members of the Jumma Mosque in Durban and the Syden-
ham Muslim Association, who said that religion and politics did not mix, could
well find themselves without a spiritual home.

For while organisations could turn their backs on the Islamic Council of South
Africa (ICSA), they cannot do the same to the Jamaat, which is the supreme
Muslim organisation on Islamic jurisprudence, religious matters and authority
in Natal.

And unlike ICSA, the Jamaat has a long history which goes back to the arrival
of the first Muslim religious leaders in this country from India more than 120
years ago.

It has strong grassroots support. A Jamaat decree for Muslims is law.

cso: 3400/1738
67



Tshabalala Moves To Oust Top Councillors
(Sam Mabe; SOWETAN, 3 Aug 83)..--eeee.

ANCWL's Legendary President Lillian Ngoyi Honored
(Zwelakhe Sisulu; SOWETAN, 3 Aug 83)..+eseeee

WRAB Claims Implementation of Rikhoto Ruling
(THE CITIZEN, 4 Aug 83)......-

UDF Rally Expected To Attract Thousands
(Sam Mabe; SOWETAN, 2 Aug 83)...+eeee-

SA in 'Pretty Serious' Recession, Says LTA Chairman
(Don Wilkinson; THE CITIZEN, 29 Jul 83).......-

Negative Growth Rate Predicted for Second Year
(THE CITIZEN, 29 Jul 83).

SA Has a Free Press, Minister Claims
(THE CITIZEN, 30 Jul 83).

Discipline Threat Issued by Broederbond
(THE CITIZEN, 2 Aug 83)....

Reform Bill Survey 'Not Surprising,' Says Boraine
(THE CITIZEN, 2 Aug 83) .ceccccccccccvececccvvcseseces

Assocom Suggests Constraints in Planned Reform
(THE CITIZEN, 2 Aug 83) .ccecccccccccccccccceccccceces

East Rand Councillor Gets Death Threat
(Mzikayise Edom; SOWETAN, 4 Aug 83)..cecceceseececeee

First BOPP Plant Nears Completion at Chamdor
(THE CITIZEN, 3 Aug 83) .ccececccccccccccceccccccccces

Massive Civil Defense Test Planned for 4 August
(Marilyn Cohen; THE CITIZEN, 3 Aug 83).cesscececeeces

Life Insurance Industry Earnings Reported
(THE CITIZEN, 4 Aug 83) .ccecceccscccsccccvcrccccccces

Palabora Records Bright First Six Months
(Daan de Kock; THE CITIZEN, 4 Aug 83).ccceecscccecees

Problems Beset Sales of State-Owned Homes
(Editorial; SOWETAN, 4 Aug 83)..ceccccccccccscccccses

41

42

43

44

46

48

49

50

51

52

54

55

56

57

59

60



URBAN FOUNDATION DIRECTOR INTERVIEWED

Johannesburg THE STAR in English 27 Jul 83 p 7

SOUTH AFRICA

[Report of interview by Anthony Duigan with Mr Jan Steyn, executive director
of The Urban Foundation, date and place not given]

[Text] There must be something
we can do! Make a noise
... lest they forget, as the
monument says. I can
still do that. Pll make it
loud, make them stop in
the street, make them
say: People are living
there! — Athol Fugard.

Making a noise. That is
what Urban Foundation
executive director Mr
? Jan Steyn believes has
been one of the major
- successes of the organisa-
tion in its first six years.
Its lobbying efforts in
the corridors, of power
have produced measure-
able results, he says: the
99-year leasehold rights
for urban black house-
holders; real local gov-
ernment power for urban
black councils via the
_new Black Local Authori-
ties Act; a new housing
policy with the emphasis
on home-ownership and
‘self-help; tax concessions
, for private sector invest-
‘ments in education; and
; certain other issues the
* foundation considers too
v'sensitive to talk about
{ openly.
, Three years ago it
reassessed its position
jand committed itself to
ithe promotion of struc-
‘tural reform — “an ac-
icelerated movement

70

away from discrimina-
tion and a rapid imple-
mentation of pro-
grammes designed to im-

* prove the quality of life

of disadvantaged com-
munities”.

The foundation was not
a charitable institution
that gave handouts, but a
developmental agency.
The creation of, and ac-
cordingly part of, the pri-
vate sector, he added,
which must identify
areas where there were
defects in society and
concentrate on putting
these right.

In setting its priorities,
said Mr Steyn, the foun-
dation decided to concen-
trate on achieving what
was politically possible
through structural re-
form.

“Housing seemed to
offer the best opportuni-
ty,” he added. “Except
for the Group Areas as-
pect, ideological consid-
erations surrounding it
were low and it was
quickly identified as a
critical area.

“The State’s capacity

.to build new houses was

‘being seriously eroded by.
the sheer amount of
money needed by the
Treasury to service exist-
ing loans. It meant that
ways had to be found for



higher wages, they might force
industrialists to become less la-
bour-intensive.”

There is some truth in the
view that South Africa should be
considered as having a develop-
ing economy. “But the industri-
alised countries represent South
Africa’s major trading partners
and foreign trade plays a major

Salary and wage rates,
product price and unit I

role in our economy.

" «9 maintain and possibly ex-
pand our trade advantage, South
‘African goods and services must.
be competitive with these coun-
tries.

“Economically speaking,
competition and productivity
‘improvements are synonymous
because it'is impossible for rela-

in manufacturing

Total Manufacturing

tively inefficient producers to
compete profitably without
being protected. Prolonged pro-
tection can discourage efforts to
improve productivity.”

To strengthen its competitive
position in international trade,
SA must strive for a productivi-
ty growth rate.at least equalling
that of its competitors.

labour productivity,
labour cost indices

cso;

3400/1738

Labour Salary Product Unit
productivity and price labour

index wage rates index cost index
1975 100 100 100 100
1981 122 233 210 191
1982 120 276 240 231

Food
1975 100 100 100 100
1981 122 213 237 175
1982 124 256 258 206
Textiles
1975 100 100 100 100
1981 156 233 172 149
1982 145 278 192 191
Clothing

1975 100 100 100 100.’
1981 155 188 156 121
1982 154 233 176 151

; Electrical machinery
1975 100 100 100 100
1981 101 235 180 233
1982 102 279 202 275

: Transport equipment
1975 100 100 100 100
1981 113 | 230 204 204
1982 105 268 242 255
69



SOUTH AFRICA

ALUMINUM VEHICLES SAVE ENERGY
Johannesburg SUNDAY TIMES-BUSINESS TIMES in English 24 Jul 83 p 2]

[Text] ALUMINIUM has the potential to greatly contribute to the total energy
saving of transport vehicles.

So says Fanie Malan, executive director of the Aluminium Federation of South
Africa, which claims to have one of the most signficant exhibits at Itec.

"Taking the car as an example, lkg of aluminium replaces 2,2kg of ferrous
materials resulting in a direct mass saving of 1,2kg," says Mr Malan.

"By virtue of this saving, a re-design of a lighter vehicle structure with
reduced power requirements is possible and this should result in a further 40%
secondary saving, equal to 0,5 kg.

“Thus a total mass saving of 1,7kg can be achieved. The down-sizing of bear-
ings, axles, engine, gearbox, chassis and so on (the knock-on effect) contrib-
utes to the total energy saving."

Mr Malan points out that the present local content requirement for passenger
cars is 66% by mass, and that every car manufactured carries an excise duty
calculated on its mass in tons (M) and its excise value in rands (V).

"Tf the manufacturer betters the prescribed 66%, then certain rebates of the
duty apply for every 0,1% or part thereof above 66%, and these too are based
on M and V," says Mr Malan.

"Por example, the duty for a car with a mass of 1 100kg and an excise value of
R6 500 (with a 66% local content) is R715.

"If the mass was reduced by 100 kg, and the excise value remained at R6 500,
then the duty will be reduced by R130 to R585. (Reduction in duty equals
R1,30 a kilogram reduction in mass.)"

In other words, says Mr Malan, the excise value can be increased appreciably

in order to effect as mass saving and the excise duty will still be much less
than the R715 mentioned.

72



SENEGAL

BRIEFS

FISH EXPORTS INCREASE--The fish harvest in 1982 was 223.371 tonnes, against
214.371 tonnes in 1981, according to the daily Soleil. Exports of fish in
1982 increased by a much larger proportion, however, 28 per cent, to 91.742
tonnes, bringing in nearly 48.000m. CFA. Although small scale fishing re-
mained in 1982 the major method of landing the harvest (140.343 tonnes), in-
dustrial fishing increased its share by 25 per cent, to 83.028 tonnes. Claude
Harel, the new French Ambassador, has arrived in Dakar to take up his post.

As an indication of importance Paris attaches to Dakar representation, M.
Harel was formerly Ambassador to Washington. [London WEST AFRICA in English
No 3441, 25 Jul 83-p 1741]

ROUND TABLE SUGGESTION--Abdoulaye Wade's Parti Democratique Senegalais (PDS)
has suggested a "Round Table" of all the political parties to. discuss the ec-
onomic problems facing the country. The PDS has refused to take up the eight
seats it won in last February's elections because it says there was widespread
cheating. It won eight out of 120 seats, according to official results. The
authorities have sent some of the Niger students who occupied their Dakar Em—
bassy in April back to Niamey, according to the Paris-based Afrique Info-Plus.
The protesting students were acting in solidarity with their col- [Excerpt]
[London WEST AFRICA in English No 3440, 18 Jul 83 p 1686]

CsO: 3400/1726

29



"On the one hand, there is no longer a complete annual repayment of the sum
borrowed and a large balance is left which increases year after year. In
addition, most of the sugar mills have accumulated losses for several conse-
cutive years and the banks are not supposed to finance losses," Lagesse com-
mented.

Going to the medium- and long-term loans, Lagesse said that they amounted to
160 million rupees in 1981, but that they have now totaled 240 million rupees.
There have been no development projects in the meantime and the increase is
partially due to the fact that the crop loans had to be medium- and long-term
loans spread out over as much as 5 years in order to help the sugar industry
and partly because payments on existing loans were postponed.

In some cases, in which repayment possibilities were not foreseeable for sev-
eral years, the banks were forced, to their great regret, to ask customers to
sell non-sugar assets and even to sacrifice some land, which was parceled.

With foreign loans totaling some 30 million rupées, the total debt of the sugar
industry amounts to 808 million rupees maximum and 656 million minimum in

1982 and Lagesse concluded that in banking circles, it is considered that a
debt of 20 to 25 percent of the receipts from a harvest is a.reasonable pro-
portion that should generally not be exceeded.

Sugar Producers Refute Planters
Port Louis L'EXPRESS in French 21 Jul 83 p 6

[Text] Herve Koenig, director of the Mauritius Sugar Producers Association
(MSPA) made a'statement before the Avramovic Commission yesterday concerning
the arguments and figures presented to it on Monday by the Mauritius Planters
Association (MPA), represented by Secretary Jugdish Goburdhun (currently min-
ister of health).

The essential parts of Goburdhun's report were published in the Tuesday edition
of L'EXPRESS under the headline “Harsh Criticism of Sugar Magnates by the MPA."

Among other things, the MPA believes that the sugar industry realized net pro-
fits of 1.8 billion rupees from 1979 to 1982.

Koenig's statement was made yesterday in the absence of Goburdhun. The secre-
tary of the MPA was to continue his report yesterday morning, but was excused
because of illness.

We are publishing Koenig's statement, according to which he and the MSPA are
in total disagreement with the figures of the MPA, figures they cannot recon-
cile with their own. [Original in English]

Mr Chairman:
On the 18th July, the Mauritius Planters Association deponed [sic] before the

Commission of Enquiry and we would like to make a statement on what has been
said before the Commission.

15



MOZAMBIQUE

JOINT COMMISSION COOPERATION PROJECTS
Maputo NOTICIAS in Portuguese 20 Jul 83 p 8

(Text ] The proceedings of the Portugal-Mozambique Joint Commission have broadened
the prospects for cooperation between the two countries; projects were confirmed
which had been under study for several years and actions were undertaken to
determine the feasilility of joint programs in various sectors, to the benefit
of both countries. Prakash Ratilal, governor of the Bank of Mozambique, so
reported to us on his return from Portugal, where he took part in the meeting

of the Joint Commission last week in Lisbon.

The governor of the Bank of Mozambique added that during the commission pro-
ceedings there was agreement on various economic issues, as well as on items
related to the glass manufacturing project in Mozambique, primarily the rehabili-
tation of the factory "Vidreira de Mocambique, with technical and financial
support from Portugal, in association with Italy.

Another point discussed with positive results concerned joint undertakings in
various fields, particularly those of tobacco, cotton, sisal, fishing and grains.

An agreement was signed providing financing amounting to about $10 million
(equal to 1 million Portuguese contos) to cover the transferrable portion of the
salaries of Portuguese cooperants in Mozambique.

Referring in general terms to the proceedings of the Portuguese-Mozambican Joint
Commission, the governor of the Bank of Mozambique described them as going well,
since there was a successful discussion of items on the agenda and useful work
was accomplished toward bringing about excellent bilateral and multilateral
cooperation.

Cooperation agreements were also signed by the National Civil Engineering Labora-
tory and the Institute of Economic Cooperation with the National Engineering Labor-
atory of Mozambique, as well as an agreement in the field of meteorology.

During the commission proceedings, a contract prototype was approved for short-
term cooperation activities, especially in the area of education. In that same
field, there are plans to send more teaching cooperants to Mozambique.

In the health field, it was agreed that various Portuguese specialists would come
here to analyze the "Mozambican Ophthalmological profile," to facilitate treat-
Ment of eye ailments.

21



MAURITIUS

PROBLEMS OF NATIONAL SUGAR INDUSTRY REVIEWED
Port Louis L'EXPRESS in French 3 Jul 83 p 6
[Editorial by Yvan Martial: "Waiting for the Death of the Sugar Industry"]

[Text] On that Sunday, the local moviehouse in a little’ provincial town in
France was showing a documentary pertaining to the island of Mauritius.

After the traditional shots showing Port Louis and the main beach resorts,
the Jardin des Pamplemousses (Grapefruit Garden), the blue mountains dear to
Malcolm de Chazal, and the emerald ocean of the cane fields, the movie camera
focused or the various religions established in Mauritius. The audience fol-
lowed these images with a wandering eye, probably saying to themselves that
this Sunday it was Mauritius, and that the next Sunday it would probably be
the Maldive Islands or Bali.’ Even the firewalkers aroused no special inter-
est until one of the participants in the ceremony, probably due to insuffi-
cient preparation, burned the soles of his feet and limped in haste from the
carpet of glowing coals. The audience began to scream with fright in a
single voice. The shots of the other participants remaining deliberately on
the burning charcoal became intolerable, and the audience screamed with new
vigor. It was necessary for someone to burn himself before the audience took
the reality of this ancestral rite seriously.

This cinematographic recollection came to my mind when I learned of the
speech delivered in Britannia Tuesday by Minister of Agriculture Kishore
Deerpalsingh in connection with the 1983 harvest festival. Like the
spokesman for the preeeding regime, Deerpalsingh in turn intoned the well-
known refrain about "the sugar industry, the spinal column of the island of
Mauritius."

Despite the tidal wave of 11 June 1982, nothing has therefore really changed
for this sector in Mauritius. The year continues to be divided into two
unequal periods: 1 day for singing the praises of the sugar industry (during
the harvest festival) and the other 364, during which it is criticized, slan-
dered, sullied, libeled, attacked, demolished, belittled, vilified, pointed
out, held up to public ridicule and obloquy, in brief, transformed into the
favorite scapegoat.

In Britannia on Tuesday, Deerpalsingh was charming. He behaved most gra-
ciously toward an old lady currently experiencing serious difficulties. But
his statements could not erase the memory of those last year, in which the
sugar industry and the private sector were accused of showing favoritism and

17



CISKEL ASSEMBLY ACCUSES SA OF BREAKING PROMISES

East London DAILY DISPATCH in English 22 Jul 83 p 18

[Article by Owen Vanqua:

[Text]

The Ciskei National
Assembly dug in its
heels during the past
session, more than any
other in the past, on
issues on which it is at
odds with South Africa.

The issues it was most
acid about were land, re-
settlements and the
budget allocated to it by
the South African Gov-
ernment.

On land and resettle-
ment issues South Africa
was accused of breaking
promises in that all the
land which South Africa
had promised to Ciskei
by December last year
was not handed over. It
was also claimed South
Africa had promised not
to do any resettlements
without the knowledge
and consent of the Ciskei
Government and yet a
resettlement area was
being raised at Seymour.

Members were impa-
tient with South Africa
in handing over prom-
ised land and called for
the restoration of all
land that formerly be-
longed to their fore-
fathers from the Indian
Ocean to the Stormberg
mountains and from the
Fish to the Kei Rivers.

They claimed the land
question was aggravated
by the dumping of peo-
ple by South Africa in
land-hungry Ciskei,
causing more conges-

30

tion. -
Ciskei was also bitter
about the leasing of re-
“leased farms to white
farmers while Ciskei
‘veld was overstocked
and bone dry. This led to
threats to impound
white farmers’ cattle on
these farms. The threat,
| however, was never car-
ried out and the matter
was settled amicably,
_ according to the then
head of the Ciskei com-
bined forces, Lieute-
nant-general X. C. Sebe,
who at one time said he
was mobilising his

forces.

This year’s budget of
R300 million was also
slammed as inadequate.
The Vice President, the
Rev W. M. Xaba called it
a disgrace. The shortage
of funds was raised by
all government depart-
ments.

Twenty-three bills
were passed in the
assembly — the first ses-
sion to be held in the

. imposing new buildings

which were presented to
Ciskei by South Africa in
the future capital city of
Bisho.

One was the Tenure of
Office of the President
Bill, which makes Chief
| Sebe life President —

the first and only life

President in Southern

Africa. The bill was in-

troduced by piloting a
| motion calling on Presi-

SOUTH AFRICA

"Ciskei Acid With SA Over Land and Money"]



MAURITIUS

SOUNDNESS OF SUGAR INDUSTRY EXAMINED
Situation Not Alarming
Port Louis LE MAURICIEN in French 20 Jul 83 p 5

[Text] "The sugar industry made profits of some 1.8 billion rupees between

1979 and 1982, thanks to the spectacular increase in prices of sugar and its
by-products during the period, while cane and sugar production costs have ex-
perienced slight increases." This announcement was made before the Avramovic
Commission on Monday by Jugdish Goburdhun, speaking in his capacity as secre-
tary of the Mauritius Planters Association (MPA). According to Goburdhun, "the
financial situation of the sugar industry is not as alarming as sugar ‘magnates’
would have people believe. The figures produced by the industry are exagger-
ated," Goburdhun said.

Accompanied by members of the MPA board and legal adviser Madun Dulloo, the
negotiator for the Planters Association first situated the role of planters
in the sugar industry, a role limited to the production of cane. In 1981,
there were 33,347 planters growing 79,986 arpents [1 arpent = approx. 1 acre]
of cane and producing 1,848,000 tons of cane. The 21 miller-planters harvested
3,455,000 tons of cane from their 105,502 arpents. Goburdhun accused mill
owners of always "exaggerating" their production costs, their objective being
to obtain a greater share of the sugar distributed and urge the government to
lift the export tax. "The sugar magnates have always dominated the sugar in-
dustry with their money and influence, and planters within that industry had
always been badly treated and exploited," he said.

The secretary of the MPA then explained the drop in area planted in cane be-
longing to small planters. From 1959 to 1979, there was a decline of 12,092
arpents, although miller-planters harvested an additional 17,859 arpents.
Planters watched their sugar production increase 5.4 percent, the same rate
recorded by miller-planters. Using figures and giving detailed explanations
of the different items making up the production cost, Goburdhun said that
planters with up to 25 arpents of cane make profits of 63.93 rupees (those
producing under 20 tons of sugar) and 36.17 rupees (those producing over

20 tons of sugar). For planters owning over 25 arpents of cane and whose
sugar production is over 20 tons, the estimated profit is 30.93 rupees per ton
of cane.

12



cso:

people to pay their own

way.”

Before the introduction
in 1978 of 99-year lease-
hold, the housing system
made black people serfs
because of their total re-
liance on the local auth-
orities for accommoda-
tion.

“It has also been my
view that if we want to
move from a position of
confrontation to one of
negotiation, then we must
create structures through
which black leadership
can emerge.

“I saw the Black Local
Authorities Act as the
first, incremental step to-
wards the emergence of
this. At the same time, I
do not see this legislation
as the structure for the
formalisation of the ne-
gotiating process at na-
tional level.”

The first elections for
black councils under the
new powers contained in
the Black Local Authori-
ties Act are scheduled to
take place late this year
— and Mr Steyn believes
it is a make-or-break
issue.

If the council elections
in places like Soweto
draw a poll of six or 10
percent — as they did
first time round in 1977
— it would be a disaster
for the advocates of “ag-
gressive moderation”, Mr
Steyn believes.

But what concerns him
more than anything is the

3400/1738

71

possibility that criticism

| of the Act, on the lines

that it does not actually
give any real power,
would create a psychosis
in the black community
which could push some
community leaders “into
positions where they do
not belong”.

“I don’t mind criticism
of the Act being part of
the apartheid structure.
But what concerns me

, would be totally unfound-

ed criticism that'this new
law does not give real
power to black local
authorities.”

At.the same fime there
was now an onus on the
Government to demon-
strate that it intended to
create the financial
mechanism to make
these local authorities
fully viable.

“The Government must
state clearly that there is
no way Soweto can gen-
erate the income to fi-
nance itself on its own. In
other words, some form
of income, like a share of
GST, is necessary to sup-
plement Soweto’s income
from its own meagre
sources.”

It was also imperative
for the Government to
clear the way for a full
participation of black
leaders in national af-
fairs by stating that the
new local government
dispensation was in no
sense a full answer but
merely a step along the
path for urban blacks.



MASSIVE CIVIL DEFENSE TEST PLANNED FOR 4 AUGUST

Johannesburg THE CITIZEN in English 3 Aug 83 p 10

[Article by Marilyn Cohen]

[Text]

JOHANNESBURG’s
emergency services are
to be tested to the limit
tomorrow when a
number of “man-made
disasters” will occur-
almost simultaneously
in and around the cen-
tral business district.

All these will form part
of the biggest civil de-
fence exercise ever staged
inthe country.

Some 1 100 people will
be involved in the exer-
cise-including members of
the Railway Police, the
South African Police, the
Amy, Air Force and
Medical Corps, as well as
the city’s civil defence,
traffic, fire, ambulance,
transport and health de-
partments.

The provincial hospi-
tals will also be involved,

as there will be 100 “‘cas-
ualties”.

Chief officer of the Jo-
hannesburg Civil Defence
Corps, Mr Henk van Elst,

cso: 3400/1741

appealed to the public to
act responsibly during
the exercises. “We don’t
want any heroes who may
cause genuine casual-
ties.”

He explained that while
the various emergency
services were geared to
deal with disasters, the
overall effectiveness of
emergency planning. was
dependent upon fast and
efficient reaction and co-
ordination of the services
concerned. .

It was this co-ordi-
nation which had to be
tested before it was called
upon one day to deal with
“the real thing”.

While the planners of
the exercise have tried to
ensure that disruption of
normal activities will be
minimised, Mr Van Elst
warned that some disrup-
tion, for example, of traf-
fic, was inevitable.

Letters had already
been sent to commerce
and industry in the CBD
area’ warning them that
the exercises will take

56

SOUTH AFRICA

place.

However, the exact lo-
cations, times and types
of incidents remain a
closely guarded secret to
try and make the exercise
as realistic as possible.

Planning for the exer-
cise has -been going on
since February and it is

| estimated that it will cost

between R30000 and

, R40 000.

Mr Van Elst assured
the public that should
anything else occur while
the exercise was taking
place, there would be suf-
ficient manpower to deal
withit.

“The ‘normal activities
of the city’s emergency

_ services will not come to a

standstill.

“Since our ultimate ob-
jéctive is to ensure that
the riegative after-effects
of disasters in terms of
lives and property are
minimised, the public’s

| forbearance and support

will be highly appre:
ciated.” .



Their knowledge of the Czech language allows the students to establish friend-
ships with the inhabitants of Turnov. Their first friends were their own
teachers, who invite the students often, even into their own homes. Today,

the students have friends among their Czechoslovakian colleagues.

The first 26 foreign students arrived in Turnov in the fall of 1981. During
the 1985-86 academic year, more than 120 foreign students will study in the
secondary professional nursing training course in Turnov. A new internship
facility will be open too, and the students will move from rooms with four
beds to modern cubicles, each containing sanitary facilities and two rooms
with two beds each.

A delegation from the Socialist Republic of Czechoslovakia's Ministry of
Education visited our country from the 18th to the 21st of this month for
studies in the area of cooperation with the National Scholarship Institute.

_ This visit, through contact with the institute, allowed for the study of a
method to select the next Angolan scholarship holders who will soon attend
upper level and intermediate courses in that friendly country.

9927
CSO: 3442/299



PORTUGAL DESIRES STRONGER TIES--Jaime Gama, the new Portuguese foreign affairs
minister, has sent a note to his counterparts in Mozambique, Angola, Cape Verde,
Guinea-Bissau and Sao Tome e Principe, expressing a desire to intensify relations.
Contacted by NOTICIAS, a source in the Mozambican Foreign Affairs Ministry con-
firmed the receipt of the message by Joaquim Chissano, chief of Mozambican diplo-
macy. In the 12-line message, Minister Gama wrote: "The Portuguese Government
will continue to pursue a policy of intensifying and strengthening friendly
relations." The Portuguese minister also stressed the desire to intensify and
broaden relations between his government and the African countries in which
Portuguese is the official language. The message was sent following a luncheon
which Gama gave for the ambassadors of the aforesaid countries last week in
Lisbon. [Text] [Maputo NOTICIAS in Portuguese 1 Jul 83 p1] 6362

CSO: 3442/315

27



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63



RWB OPTIMISTIC ABOUT ATTAINING WATER-SAVING GOAL

SOUTH AFRICA

Johannesburg THE CITIZEN in English 2 Aug 83 pp 1, 2

[Article by Mark Gordon]

[Text]

cso:

3400/1737

‘The Rand Water Board
is now fairly. optimistic
of achieving its target of
20 percent watér saving
before the end of Au-

gust.

“We began by saving
eight percent, and have
so far saved 13,5 per-
cent,” Mr Dale Hobbs,
‘chairman. of -the-RWB
saidyesterday.

He added that 24 per-
cent savings on water
consumption was now
being achieved on a
weekly basis, which, in
effect, meant a saving of
about 12 000 megalitres
aweek.

Mr Hobbs praised
those municipalities

which had, introduced

sliding tariffs.

“This is good. Other
municipalities should do
the same, not only in a
drought situation, but
also in the future.”

He added that the
RWB might have to

implement a sliding tar-
iff system as well, “but
we hope we won’t have
to.”

Mr Wouter van der
Merwe, chief engineer
operations at the Direc-
torate of Water Affairs,
Department of Environ-
ment ‘Affairs, revealed
yesterday that the.
fourth weir in the
Grootdraai Dam
Scheme went into oper-
ation on Saturday.

Mr Van der Merwe
added, that the first
pump would be installed
at the Grootdraai pump
station on August 19.

Meanwhile, the Usu-
tu-Vaal Scheme, is caus-
ing the Electricity Sup-
ply Commission “grave
concern”. Unless action
is taken one of the pow-
er stations drawing
water from the Scheme
may have to close down
before the end of this
year. *

In a bid to prevent
this,  Escom . has

65

dropped power gener-
ation at the Camden sta-
‘tion — which draws
water directly from the
‘Usutu-Vaal Scheme —
‘to two sets, and faces
the possibility of a fur-
ther decrease to one set.

Generate

' The organisation had
even considered shut-
ting down the station
completely during off-
peak periods, only al-
lowing it to generate
power during peak-
hours.

| The Kriel Power Sta-
tion, which also drew
water from the Usutu-
‘Vaal Scheme has trans-
ferred its water require-
iments to the Grootdraai

eme.

“This should help the
{Usutu-Vaal Scheme and
Escom well into next
year, even if there is no
rainfall in the catchment
area,” Mr I S McRae,

general manager opera-
‘tions at Escom, said.



NEW MINERALS IN DIAMOND-BEARING ROCKS DISCOVERED

SOUTH AFRICA

Kimberley DIAMOND FIELDS ADVERTISER in English 20 Jul 83 pl

[Text]
Kimberley which cou.

occur only in very small quantities.

CSO:

Working with colleagues

from other institutions,
scientists at the University
‘of Cape Town's depart-
ment of geochemistry,
“have identified’ the new
minerals by several
methods of sophisticated
analysis.

The university said in a
statement in Cape Town
that Professor Tony
Erlank. the head of UCT’s
geochemistry department,
and Professor Stephen E
Haggerty from the Uni-
versity of Massachusetts,
who is visiting UCT, were
investigating the origin of
she minerals.

One of the new minerals
4s called Mathiasite, after
emeritus Professor Morna
Mathias, a former member
of UCT’s geology depart-
ment. The other is called
Lindsleyite, after Profes-
sor Donald Lindsley of the
State University .of _New
York at Stony Brook,

APPLICATION

- Professor Haggerty told
the DFA yesterday that
‘he new minerals could
have a modern-day and
socially astute application
in the storage of nuclear
waste. However, he «said,
though the indications
were there, much research
would have to be done
before any confirmation
was obtained.

He said that the min-
erals contained a number
of exotic chemical ele-
ments. They were high in
potassium, barium and
frontium content. The
structure of the minerals
allowed not only the inco:

3400/1750

poration of these
materials, _but- others 98
well. he said. —— .
They were ideal model
repositories for radio-ert-
ive nuclear waste disposal.

BY-PRODUCTS

Nuclear. waste could he
fixed into these minerals
forming a_synthetie rock
(synroc) _ Professor Hag-
gerty said.

He said that in this
process radio-active by-
products were. put back
into minerals where they
stabilised rather than cur
rent disposal methods
“where they could be mobi-
jised into the environ
“ment. The stabilisation of
radio-active nuclear waste
in minerals was widely
held to be safer than
current storage methods
Trowever, the merits of
‘his system as opposed te
present system was much
debated and research was
necessary.

Professor Haggerty said
that initial research had
shown the new minerals
were -associated with
armalcolite which was dis-
-eovered in rocks obtained
from the surface of the
moon and named after the
,first lunar - astronauts.
Armstrong, ‘Aldren and
Collins.

We said that the new
minerals were formed at a
depth of 75.to 100 km
below the earth’s crust.
This was a supposition in
the absence of experimen-
tal data, Diamonds were
formed at a greater depth.

66

SCIENTISTS have found two new minerals in diamond-bearing rocks from
id have a bearing on nuclear waste disposal.

The minerals

Mathiasite and Lindsieyite

-were formed, in the
* magma

g beneath- the
earth’s crust, where the
actual volcanic eruption

} Was generated.

TEAM. WORK

The UCT statement said:
that the new minerals
were positively identified
through team work by
Professor Haggerty and
Professor Erlank, Mr R S
Rickard of UCT’s research
laboratories, and Dr R V
Danchin, fomerly of
Anglo American research
laboratories. and Dr J R
Smyth of the University of

: Colorado.

Severai methods of
sophisticated analysis
were necessary to achieve
the positive ‘identification.

The International
Mineralogical Association
has approved the naming
of the two new minerals
and tehe initial results
have just been published
in the prestigious journal

‘of the American Minera-

logical Society. 7”

‘A De Beers -spokesman
~said that the ‘minerals
occurred in very _ small
quantities in waste dumps
from the Kimberley
mines. In fact, the quanti-
ties were so small that
they were not industrially
viable, However. he said
the discovery was import-
ant and perhaps the min-
jeral could be manufac-
tured synthetically for the
\ disposal of radio-active
nuclear waste:



MOZAMBIQUE

YUGOSLAVIA DONATES TELEVISION SETS, RADIOS
Maputo NOTICIAS in Portuguese 8 Jul 83 p 5

[Text] Some 60 radios and 25 television sets will soon be distributed to
Mozambican villages and districts, Information Minister Jose Luis Cabaco announced
yesterday, The equipment is a gift of the Socialist Federal Republic of
Yugoslavia.

Our information minister announced the decision in a symbolic ceremony yesterday
morning in Maputo, honoring the receipt of the radios and television sets.

The ceremony was attended by Murat Agovic, Yugoslav ambassador to Mozambique,
officials of the Ministry of Information and representatives of the national
news organizations and the media.

According to Minister Cabaco. the 60 radios will be distributed to public listening
centers which have been or will be created through the project of the Office of
Public Communication. These public listening centers exist or will exist in
communal villages and districts.

The 25 television sets will go to public aid centers in districts of the capital.

According to the minister, the radios and television sets will give the public
greater access to information, both in the cities and in the interior.

"This gift," said Ambassador Agovic, "is another modest expression of the sym-
pathy, friendship and solidarity which the Yugoslav people have always felt for
the Mozambican people."

Noting that Yugoslavia and Mozambique are socialist, nonaligned and developing
countries, the ambassador declared that his country highly regards and will con-
tinue to support Mozambique's immense efforts to build a new and prosperous
society.

He also assured that Yugoslavia will always be prepared to assist in Mozambique's
efforts to maintain and strengthen its independence despite the continuing
undeclared war waged by the South African racist regime.

Expressing thanks for Yugoslavia's gesture of friendship, the information minister

recalled the disinterested and firm support of that socialist country to the
Mozambican people, dating from the armed struggle for national liberation.

He also noted that some of the first films shown by FRELIMO in the liberated

zones during the armed struggle had been made by Yugoslav cinematographers, and
had enabled broader dissemination of the goals of the Mozambican people's struggle

for liberation.

24



form. Full-scale production starts in October, on schedule. [Text] [Johan-
nesburg THE CITIZEN in English 2 Aug 83 p 23]

KRUGERSDORP FISH DYING--FISH in Krugersdorp's Monument Dam are dying because
the water level has dropped by 75 percent. The dam is normally 4 m deep at
its deepest point but now the level has dropped to 1m. A member of the
Monument Fishing Club, Mr Duggie Schmidt, has proposed a rescue operation to
save the fish. He plans to catch them in barrels and take them to a concrete
irrigation dam owned by Mr Bennie Vorster of Oaklands. They would be kept
there until the water level in the dam rises. A Krugersdorp Council spokes-
man said no approach had been made to them to save the fish but he thought it
unlikely that such a proposal would be refused. [Text] [Johannesburg THE
CITIZEN in English 2 Aug 83 p 8]

F.S. SCHOOL ADMITS TAIWANESE--HARRISMITH'S 11-year-old Taiwanese girl, Bibi
Koo, will attend the St Mary's School for Girls in Johannesburg at the end of
August. A spokesman for the school said yesterday Bibi had written the stan-
dard entrance test, had passed, and had automatically been accepted. "Bibi's
mother, Mrs Ywann-Mann Koo-Fang, had originally planned that Bibi attend St
Mary's next year, but because of permit problems in Harrismith Bibi will have
to enroll as from the next term," the spokesman said. "Bibi's application was
treated like any other. The important thing was for her to pass the entrance
test, which she did." The spokesman said Bibi would be a boarder at the
school and that she was not the only non-White pupil at the school. The lit-
tle Taiwanese girl will spend the rest of the month with her mother in Harri-
smith before she moves to Johannesburg. Bibi enrolled at St Mary's after the
control board of the primary school in Harrimsith had decided that she could
attend the Harrismith school if she obtained the necessary permits. The con-
trol board had not wanted to make a decision on Bibi's application at first,
but announced last Friday that she could be accepted, pending the permits.
Other Taiwanese children will now also be able to attend the Harrismith pri-
mary school if they obtain permits. According to the 93-year-old statute
which forbids Asians to live in the Free State, all Taiwanese have to obtain
special permits. [Text] [Johannesburg THE CITIZEN in English 2 Aug 83 p 2]

FARMERS' DROUGHT COSTS--CAPE TOWN--Maize production in South Africa has
dropped by about 10-million tons in the past two years because of the drought,
according to the president of the Western Cape Agricultural Union, Mr E P
Robertson. In his presidential address to the Agricultural Union, meeting in
Cape Town, Mr Robertson said maize production had dropped from 14-million tons
in 1981 to about four-million tons this year. "Added to sugar, meat, sorghum,
beans and wheat, we are looking at R2 500-million less farm income and a loss
to our balance of payments after importing maize, beans and seed for this
year's crop, at a figure in excess of Rl 000-million," he said. In addition
the "very necessary" Government aid to keep farmers on the land amounted to
over R50-million and meant that all sections of the economy would be "feeling
the pinch" soon. Referring to countries with outstanding debts, Mr Robertson
said all Western countries had to help those with vast debts to avert a world
financial crisis. Farmers should ensure that export products were of the
highest quality and best value. Mr Robertson extended sympathy to farmers in
other parts of the country who had been badly affected by one of the most

76



ANGOLA

APA TO INTENSIFY STRUGGLE AGAINST ANTI-ANGOLAN ACTIVITIES IN PORTUGAL
Luanda JORNAL DE ANGOLA in Portuguese 5 Jul 83 pp 1, 2

[fext] Lisbon--The Portugal-People's Republic of Angola Association (APA),
which met for the first time on the national level in Lisbon last weekend,
decided to intensify its struggle against. and its denunciation of anti-
Angolan activities in that country.

The delegates approved a project to continue information-seeking activities
pertaining to subversive actions by Angolan counterrevolutionaries in
Portugal, along with the different parliamentary groups from Portuguese
political parties.

To this end, it was learned that the parliamentary group of the Portuguese
Communist Party has agreed to receive an APA delegation tomorrow.

To the same end, the meeting was pleased with the support the APA received
from the MDP-CDE, whose group in the Assembly of the Republic has already
received Association representatives.

Also within the framework of these efforts, APA decided to request an audience
with the Portuguese minister of foreign affairs, Jaime Gama.. One initiative
that the Portugal-Angola Association decided to take in the near future was

to pursue efforts with the Toponimia committee of the Lisbon Municipal Chamber
to change the site of the street selected to be named after President
Agostinho Neto. This came following a decision by the councilmen's assembly
of the city of Lisbon.

The APA's stand on this comes from its complete disagreement with the
Toponimia committee's choice, a highway unworthy of the Angolan revolutionary
leader's name by virtue both of its location and its size.

Augustinho Neto Street is to be opened next 17 September, also as prescribed
in the same city council decision.

The association also decided to organize a national conference for coopera-
tion with official Lusophone African states, to be held during the first half
of 1984. Its goal would be to analyze the state of collaboration existing
among our countries and to work to increase it.

1



Nation Ready To Stake Billions on Dry-Cooled Answer
to Energy Problems
(Simon Willson; RAND DAILY MAIL, 23 Jul 83)........06

RWB Optimistic About Attaining Water~Saving Goal
(Mark Gordon; THE CITIZEN, 2 Aug 83) ...cccccecccccees

New Minerals in Diamond-Bearing Rocks Discovered
(DIAMOND FIELDS ADVERTISER, 20 Jul 83)....eeveecrcece

Muslim Leaders Reject New Deal Plans
(THE DAILY NEWS, 26 Jul 83). .ccccccccccccccccsccccces

Low Productivity Weakens SA's Export Position
(Stan Kennedy; THE STAR, 26 Jul 83) ..cccccccccscecces

Urban Foundation Director Interviewed
(Anthony Duigan; THE STAR, 27 Jul 83)......ceccceeeee

Aluminum Vehicles Save Energy
(SUNDAY TIMES-BUSINESS TIMES, 24 Jul 83).....cceceoes

Briefs
Coal Price, Output
New Alloy 3CR12
Epoxy Tar Imported
Phalaborwa Rock Tests
Gold Profits
New Safety Fuse Plant
Krugersdorp Fish Dying
F.S. School Admits Taiwanese
Farmers’ Drought Costs
Marine Institute Appointment
Maize Policy
Secret Platinum Coinage
Islamic Council Delegation
Oranjewerkers Condemn Reform
ANC Student Sentenced
AECI Closes Natal Factory

62

65

66

67

68

70



In the memorandum it submitted to the Avramovic Commission, the MPA makes a
detailed analysis, well-supported by figures, of the cane and sugar production
costs of sugar establishments. It observes the following: "It is a well-known
fact that in each factory area, mill owners or companies invest or diversify
their money in other sectors or secondary industries. As the financing of all
these secondary industries is made from the main industry, the profits realized
are never added or computed in the income of the main sugar estate with factory.
As a matter of fact, such investments bring large profits or dividends." In
figuring the cost of producing sugar, it is noted that expenses listed as
overhead are very high, these expenses being made for work having nothing to

do with the manufacture of sugar! For the MPA, certain expenditures represent:
1) the princely salaries paid to upper management personnel; 2) paid vaca-
tions for these same employees; 3) extravagant "gratuities"; 4) luxury
cars; 5) camps; 6) the raising of deer, fish, shrimp and livestock and

the production of vegetables; 7) uncontrolled fuel consumption; 8) luxuri-
ous houses for upper-level management personnel; 9) the “higher staff private
business" paid for by the sugar industry; 10) medical facilities; 11) the
construction of homes for members of the staff; 12) the use of company cars
by staff members; and 13) uncontrolled spending in the shops.

Goburdhun then estimated the profits made by the sugar industry from 1979 to
1982. For this fiscal year, the MPA distinguished between four categories of
plants: Group 1: plants turning out between 15,000 and 25,000 tons of sugar;
Group 2: plants making between 26,000 and 35,000 tons; Group 3: plants
producing between 36,000 and 55,000 tons; and Group 4: those whose production
is between 56,000 and 82,000 tons.

According to the MPA, the average cost of manufacturing sugar per ton of cane
was 44.02 rupees in 1979, 51.58 rupees in 1980, 51.30 rupees in 1981 and 51.30
rupees in 1982. Income and expenditures for the last four years amounted to
1,801,827 ,107.55 rupees and 1,078,343,162.90 rupees respectively, or profits
of 723,483,944.65 rupees. Regarding the cost of producing cane, income and
expenditures amounted to some 3,398,055,876.67 rupees and 2,283,016,094.78
rupees respectively. Total profits amounted to 1,838,523,726.54 rupees.

The MPA recognizes that "the sugar industry is effective" and that the level
it has now reached is due to advanced technology. "If the sugar companies
wish to realize more profits, the solution is not in the reduction of the levy
on the sugar export, but rather, on a substantial decrease in their overhead,
general and town offices expenditures which contain exaggerated and superflu-
ous expenses," it notes.

Goburdhun asked the investigative commission to verify the accounts of the
sugar industry and submitted the names of four plants that should be studied:
Feufac, Belle Vue, Beau Champ and FUEL (or Britannia, Savannah, Medine and
TUEL). The MPA is surprised that the plants belonging to Harel Brothers, Ltd.
(Solitude, Belle Vue and Beau Plan) only realized profits of 1.3 million rupees
in 1979, while nearby plants, Mount and Mon Loisir in particular, declared
profits of 8.8 million and 12 million rupees respectively for the same year.
According to the MPA, Harel Brothers, Ltd. made profits of 26.1 million rupees
in 1979 and 34.9 million rupees in 1980 (instead of losses of 7.6 million, as
it announced).

13



ANGOLA

MEDICAL STUDENTS IN CZECHOSLOVAKIA DESCRIBED
Luanda JORNAL DE ANGOLA in Portuguese 24 Jun 83 p 4

(Excerptg7 Humera, Miguel, Chanhtay, Khalil and many other foreign students
from Laos, Angola, Afghanistan, Ethiopia, Lebanon and other countries are in
Czechoslovakia so that one day they may return to their home countries as
nurses, X-ray laboratory technicians, or skilled retraining specialists.
They are living in Turnov, a city about 100 km north of Prague. There, in
the professional nursing training course, they are attending a year-long
preparatory course. For 3 months they study the Czech language intensively,
then during the rest of the year they concentrate especially on chemistry,
piology, physics and physical education.

The preparatory course must balance the students' levels of knowledge, which
are often quite disparate, with those of the Czech students who have just
finished basic school. If they successfully pass the Czech language tests,
the students continue their studies for 4 years, receiving specialized
professional training which consists of 25 subjects in all.

The students are between 17 and 21 years old, and some of them have already
decided upon their professional plans.

"We want to prepare the students for conditions in their own countries. We
do not teach them what they cannot use there, adding what is necessary. They
must study specialized Latin, the international language of all doctors and
workers in the health field. The students learn about tropical medicine in
the third and fourth years of study," the school's director, Dr Karel Guznar,
told us.

"We do everything to help the foreign students adapt to the environment,
which, from the points of view of climate and life style, is very different.
We partially change the meals, and, in addition to a scholarship, we provide
them a stipend for winter clothes. We organize excursions for them to the
outskirts of the city. For example, we went to see the world ski jump
championship in Harrachov. During summer vacation, the students spent a week
in Prague. They also participate in activities for public benefit," Dr
Guznar said. During part of their summer vacation, the foreign students,
along with their Czech colleagues, worked on an agricultural cooperative near
the city. Representatives. of state organizations often come to talk with
them.



Kimberley, would discuss the hardships facing pilgrims--and South Africans in
particular--who were having visa problems. "We do not have any visa problems
with the Sierra Leone Government and we have been assured that our delegation
will have full rights at the conference," said Sheik Hajaar. He said Sierra
Leone and South Africa did not have diplomatic relations, but that ICSA had
international recognition. "Our delegation will offer solutions which we
think will enable our people not to have the kind of trouble they have been
facing in Saudi Arabia. With international backing from the Muslim world, we
are in a stronger position to sort out the problems imposed on us," said Sheik
Najaar. A delegation from Iran, including a personal representative of the
Ayatollah Khomeini, would also attend the week-long conference. [Text] [Dur-
ban THE DAILY NEWS in English 22 Jul 83 p 15]

ORANJEWERKERS CONDEMN REFORM--A group dedicated to building "white South Afri-
ca" (verblanking) has urged members to speak out against the new constitution.
The Vereniging van Oranjewerkers said in the June issue of its magazine
Orange: “If the Afrikaner nation is to remain free, this law must be rejec-
ted." It gives 10 reasons. These include a contention that the law is being
enacted too quickly and another that a referendum may confuse many people.
Publicity given to the legislation was too partisan and the law was unfair.
The article asks why should the coloured people and Indians should be treated
differently from blacks. Coloured people and Indians would still be inferior
without the potential for self-determination, while whites would no longer
have sole sovereignty over their own country. If the constitution were en-
acted there would be no moral basis for retaining any form of segregation, not
even of the blacks. [Text] [Johannesburg THE STAR in English 26 Jul 83 p 3]

ANC STUDENT SENTENCED--CAPE TOWN--A former student at the University of the
Western Cape, Headley Moses King, was sentenced in the Paarl Regional Court
yesterday to 18 months' imprisonment for participation in the activities of
the banned African National Congress. Six months of the sentence was suspen-
ded for four years on condition that he was not found guilty of a similar
offence. The magistrate said he had taken into account that Kind had been
carried away by the idealism of students and that he was a product of the time
fired by circumstances. [Text] [Johannesburg THE CITIZEN in English 3 Aug 83
p 14)

AECI CLOSES NATAL FACTORY--AECI yesterday announced that it would suspend
operation of its Umbogintwini factory in Natal from September 1. "This deci-
sion has been taken with regret in the face of the very severely depressed
state of agriculture in South Africa," a company spokesman said. The drought
and high interest rates had greatly reduced the demand for fertilizer in South
Africa and this, together with substantial quantities of urea imported last
year, "has created a considerable surplus of nitrogenous fertilizer." The
plants will be "mothballed" to make it possible to restart them in the future,
if conditions are more favourable. The statement said employees would be
redeployed as far as possible, but there would be some redundancies. [Text]
[Johannesburg THE CITIZEN in English 4 Aug 83 p 4]

cso: 3400/1741 - END -
78



It is symptomatic that in this year of drought and fires in the sugar cane
fields, Deerpalsingh should launch into a song about the impossibility of
maintaining the irrigation program of earlier years. But whimpering does not
suffice. It is further necessary for the state to encourage sugar producers
to irrigate their fields as they should. Now, there is not even a shadow of
fiscal incentives in view for those who would like to invest today in this
drip system technique of tomorrow. Moreover, we are still waiting for gov-
ernment aid to those who were eager to irrigate their fields by the tradi-
tional aerial method, but whose enthusiasm was cooled by the exorbitant
electrical energy rates. The sugar producers have no need of words, however
comforting they might be, but need aid and support instead. But there will
be neither. In these days of electoral one-upmanship, I challenge any poli-
tician to propose the least concession to these sugar industry capitalists.
All of the sugar cane fields are likely to perish instead.

Finally, all of this is the fault of the sugar industry itself. Its only
crime derives from the fact that it is not willing to die. It refuses to
play the role of Henrietta Maria of England, of whom Bossuet said, in deliv-
ering her funeral elegy: Madame is dying, Madame is dead!" On the con-
trary, like Mr Seguin's goat, the sugar industry is certainly dying but it

is not dead. Its interminable death throes no longer cause the people of
Mauritius to run hot and cold. As in the documentary mentioned at the begin-
ning of this article, one or more sugar establishments must die a natural
death, with all its train of repercussions for the state before the employees
and the neighboring villages and the entire island of Mauritius, beginning
with the sugar cadres, will finally come to believe in the misfortunes of
this sector, vital though it is. Deerpalsingh has spoken.

Amonth ago, a parliamentary committee provided us with a fine report on the
separation of the Chagos Archipelago from the territory of Mauritius. The
members of the committee adequately demonstrated the extent to which the
politicians in the 1965 era as a whole bypassed this basic problem, because
they were too concerned with the electoral ambitions of the time. The argu-
ments put forward by those responsible for this selloff are pitiful, and
would anger a sixth-form student. But do today's political leaders realize
that in 20 years, they will have to explain why they let the sugar industry
die by inches in the 1980s? Our children and grandchildren will then hear
the same sorrowful lament: "We did not know that what we were doing was so
serious. We did not know that when we killed the goose, we would have no
more golden eggs." But let them be reassured. Until there is proof to the
contrary, we will continue to believe that the sugar industry is immortal,
and that it will always find a way of satisfying the most extravagant whims
of the politicians. Just as in 1965, no one, or almost no one, gave a fig
about what was happening in Diego Garcia, today everyone is unconcerned about
what is happening or is not happening in the sugar industry. For to believe
that 20-some articles in the domestic and international press devoted to the
military base on Diego Garcia sufficed in 1965 to mobilize the people of
Mauritius against the risks of dismemberment of the territory of Mauritius
is to suggest that 20 or so press conferences held by the Mauritius Sugar
Producers Association will suffice today to sensitize the people of Mauritius
to the dangers of the intolerable indebtedness of the sugar industry and its

19



292032
JPRS 84193

25 August 1983

Sub-Saharan Africa Report

No. 2837

FBIS| FOREIGN BROADCAST INFORMATION SERVICE

"REPRODUCED BY |
NATIONAL TECHNICAL
INFORMATION SERVICE |

US. DEPARTMENT OF COMMERCE

SPRINGFIELD, VA. 2216 ga~
AGS

“DTIC QUALITY INSPECTED 3 Ce



ANCWL'S LEGENDARY PRESIDENT LILLIAN NGOYI HONORED

Johannesburg SOWETAN in English 3 Aug 83 p 3

[Article by Zwelakhe Sisulu]

[Text]

cso:

3400/1741

THE TOMBSTONE of
the legendary president
of the banned African
National Congress
Women’s League, \ Lil-
lian Ngoyi, will be un-
veiled on August 14 and
several events have been
organised to coincide
with the unveiling.

The unveiling of Mrs
Ngoyi’s tombstone will
be part of a week’s pro-
gramme organised by

“the Federation of South

African Women (Fed-
saw) to mark the march
by 20 000 women to the
Pretoria Union Build-
ings to protest against
the pass laws.

The organisation will
have a Focus Week
starting on August 7 and

-ending with the unveil-

ing on August 14.

‘A photographic exhi-
bition of the women’s
march and a discussion
on the Women’s Charter
will be some of the high-
lights.

A Women’s Day com-
memoration service will
be held at Glyn Thomas

42

at 7.30 pm on August 9
and a paper on the
Women’s Charter in
perspective will be deliv-
ered at the YWCA at
7.30 pm on August 10.

A statement issued by
Fedsaw highlighted the
plight of women under
the pass laws.

“In South Africa
women do-not have
what is considered basic
rights throughout the
world; the right to live
with their husbands and

lead a normal family
life,” the statement said.
‘Women were used as
a pool of labour with
limited education and
skills and forced into
taking menial jobs.
Women, the state-
ment added, were also
subjected to various
forms of discrimination.
“Besides racial discrimi-
nation African women
in South Africa are sub-
jected to a system of
sexual domination
which is reflected in
many institutions,” it
read. °

SOUTH AFRICA



MINISTER OF FINANCE SHERIFF SISAY'S BUDGET SPEECH

London WEST AFRICA in English 25 Jul 83 p 1704

{Article by Eddie Momoh]

[Text]

IN HIS RECENT budget speech to the
Gambian Parliament, the Minister of Fi-
nance, Mr. Sheriff Sisay, announced a
number of revenue proposals to raise funds
for the country’s development programme,
which is being projected this year at
119,400,000.

In an unusually detailed speech, Mr.
Sisay announced that the Government was
to introduce an annual tax on all profes-
sionals working privately in the country,
with an initial D1,000 tax levied on all
private doctors, lawyers, accountants and
surveyors. This measure, he said would
raise D40,000. Duty on cigarettes and
manufactured tobacco is being raised from
‘D2 per 100 sticks to D3 per 100 sticks. Mr.
Sisay said the revenue yield from this
measure is estimated at D1,200,000. The
duty on sugar is also being increased, from
D116 per metric tonne (or D5.80 per bag
of 50 kg) to D150 per metric tonne (or
7.50 per bag of 50 kg). This is expected to
raise some D1,088,000. An excise duty of
10 bututs per litre will be introduced for
the first time on soft drinks with an
expected yearly revenue of D300,000. Ex-
cise duty on beer, stout and ale is also
being increased from D87 per hectolitre to
D100 per hectolitre while at the same time,
excise duty on whisky, wine, gin and rum
will be revised; both measures, said Mr.
Sisay were expected to raise at least
DS500,000.

The minister said all parastatal organisa-
tions and other government agencies
would henceforth be required to pay cus-
toms duty on all imports and local purch-
ases. The only exceptions would be the fuel
requirements of the Gambia Utilities Cor-
poration and the Gambian Public Trans-
port Corporation.

Thinking Twice About Luxury

Other taxes included a duty on manufac-
tured garments, excluding under-
garments, from.25 per cent to 35 per cent;
duty on automobile batteries from 45 per
cent to 55 per cent, entertainment tax from
10 per cent to 15 per cent and land rent was
to be pushed up from D1.50 per 1,000 sq.
ft. to D3 per 1,000 sq. ft. People with a
taste for luxury are also being tempted to
think twice, because according to Mr.
Sisay, taxes on all luxury items would shoot
up:

C Air conditioners from 30 per cent to 40
per cent.

C Refrigerators from 30 per cent to 40 per
cent.

Ci Radios from 15 per cent to 25 per cent.

Ci TVs from 50 per cent to 60 per cent.

CI Music systems from 35 per cent to 45 per
cent.

In all there are more than thirty items,
including telecommunications services on
which the government has increased taxes.
These tax proposals will bring in an extra
D16,118,477, making total revenue
D135,743,710 for 1983/84. This amount
will provide the required funds to finance
operations of the government for the com-
ing year.

Meanwhile, the government’s economic
performance during 1982/83 is said to have
sharply declined due to shortfalls in in-
come tax, customs revenues and the non-
receipt of an amount of D6.5m. in new
loans which may now materialise during
the 1983/84 financial year, according to
Mr, Sheriff Sisay. In particular almost all
the government-controlled parastatal orga-
nisations took a tumble with severe finan-

GAMBIA


GABON

BRIEFS

NUCLEAR POWER STATION STUDIES--Studies are under way in Libreville and Paris
concerning the possibility of France supplying Gabon with a nuclear power sta-
tion, reports AFP from Libreville. President Bongo asked for a nuclear power
station in a surprise request during a dinner last January when President

Mitterrand was on an official vist to Gabon. [London WEST AFRICA in English
No 3440, 18 Jul 83 p 1686]

cso: 3400/1726



FIRST BOPP PLANT NEARS COMPLETION AT CHAMDOR

Johannesburg THE CITIZEN in English 3 Aug 83 p 22

[Text]

cso:

CONSTRUCTION of a
R30-million _biaxially-
orientated polypropylene

(BOPP) plant — the first
in South Africa — is near-

ing completo a of

facility of
Hocthst South Africa at

‘This was revealed to-
day by the managing di-
rector of Hoechst South
Africa— Mr A L Baltzer,
during a visit by leading
figures in the South Afri-
can packaging industry to
see progress at the plant.

3400/1741

The plant is due to go
on stream at the begin-
ning of the second quarter
of 1984 and will have a ca-
pacity of about 5 000 tons
of ine grade plastic pack-

the Kalle company, a div-
ision of Hoechst AG in
Wiesbaden.

ket, with a saving of some
R20-million a year in for-
eign exchange, Mr Baltz-~
ersaid.

“This new venture in
South African industry is

55

in the South African
economy,” Mr Baltzer
said.

“The plant, the most
modern of this kind in the
world, involves the latest
know-

open up about 150 new
job opportunities.”

A vital factor, he
added, was that the plant
would produce no en-
vironmental _ pollution
with far less energy con-
sumption than other tra-
ditional packaging apro-
dution methods.

“We expect production
a Chamdor to continue to
replace the use of cellu-
lose i film,
which is under pressure
world-wide because of en-
vironmenal problems and
the high expense of
counteracting these prob-
lems,” he said.

SOUTH AFRICA



SOUTH AFRICA

GILIOMEE EXAMINES INKATHA ELECTION BOYCOTT PLANS
Cape Town THE CAPE TIMES in English 16 Jul 83 p 10
[Article by Professor Hermann Giliomee]

[Text] In his monthly column, THE PATTERN OF POLITICS, PROFESSOR

HERMANN GILIOMEE today examines Chief Buthelezi’s recent an-
nouncement that Inkatha will not participate in the elections for
the new black local authorities

DURING the past few
months the most over-
used metaphor in de-
bates about the new
constitutional dispensa-
tion is whether it repre-
sented a step in the
right direction.

To a large extent the
question of wrong or
right steps is largely hy-
pothetical for only
future developments
will decide the issue.
However, the issue has
suddenly acquired con-
crete meaning through
Chief Gatsha Buthelezi’s
announcement that In-
katha will not partici-
pate in the elections for
the new black local au-
thorities scheduled to
be held shortly.

In his recent speech,
delivered at the ninth
national conference of
Inkatha, Chief Buthelezi
| firmly linked his deci-
\sion not to participate
‘to the exclusion of
blacks from the new
constitutional dispensa-
tion and the arguments
advanced by its protago-
nists.

Crucial problem

In a letter to Dr Piet
Koornhof, Chief Buthe-
lezi referred to an infor-
mation sheet issued by

the National Party
which rhetorically
posed the question why
lacks have been de-
nied participation in
the President’s Council
and the proposed new
constitutional frame-
work. The answer given
in this sheet is wellk-
nown: Blacks are enjoy-
ing political rights via
the homeland govern-
ments, and the new
black local authorities
in places like Soweto
will be given extended
powers — in some cases
greater than their white
counterparts.

For Chief Buthelezi
the crucial problem
with this argument is
that these new local au-
thorities are being held
up as an adequate sub-
stitute for excluding ur-
ban blacks from the new
constitutional dispensa-
tion. For Inkatha to par-
ticipate in the new
black local authorities
would mean that it
would help to legitimize
the new constitutional
arrangement.

This the chief finds
completely unaccepta-
ble — he now considers
it Inkatha’s prime duty
to ensure that what he
calls “the rot of the new

38

dispensation” does not
permeate to the region-
al and local level.

Chief Buthelezi has of
course been willing to
accept the KwaZulu
homeland structure
thrown up by govern-
ment policy. However,
he could still argue that
it was a step in the right
direction. In his wellk-
nown 1974 federation
speech he proposed that
homelands, together
with white and “multi-
national” political enti-
ties, should eventually
be linked together un-
der a common federal
authority.

More recently he has
made more generally-
Phrased demands for
black representation in
both the central govern-
ment and at the regional
level, where homelands
could either be properly
consolidated or merged
with a contiguous white
regional structure (for
instance, KwaZulu and
Natal) to become future

provinces.

Share power

In 1980 he rejected
the recommendations of

' the Schlebusch Commis-

sion and refused to par-



MOZAMBIQUE

BRIEFS

NORWAY TO FINANCE POWER PLANT--Fernando Juliao, general director of Electricidade
de Mocambique, announced Tuesday that the governments of Norway and the People's
Republic of Mozambique will sign an agreement within days in Maputo, regarding
financing and technical support for the Cuambe power plant. According to the
same source, the construction will be directly supported by NORAD (Norwegian

Aid Organization), with technical supervision by the NVE (expansion unknown],

and should be completed in 3 years. The project is budgeted at 47 million
Norwegian kroners (about 255,000 contos in Mozambican currency). Signing of the
agreement is pending the arrival in our country of a government delegation from
that Nordic country. Juliao added that the Norwegian participation in the con-
struction of the Cuamba hydroelectric plant is within the framework of the cooper-
ation accord between the two countries in the energy field. That accord has been
extended for 5 more years after its expiration date next January. [text] [Maputo
NOTICIAS in Portuguese 7 Jul 83 p 1] 6362

DELEGATION VISITS UZBEK SSR--Soviet-Mozambican Friendship Week is taking place in
the Uzbek SSR (in Central Asia). The Mozambican delegation has gone to Samarkand
and Bukhara, one of the oldest cultural centers of Central Asia. Bukhara is
world famous for its marvelous architectural monuments. Today, however, Bukhara
is also a modern industrial city, whose factories are producing synthetic fibers,
cement, household appliances and pesticides. The Mozambican representatives
were welcomed by the workers at the gold embroidery factory in Bukhara, which
produces the "tiubeteika" (the national headgear), shoes and women's jackets.
Nadia Rakhmanova, director of the factory, told the members of the Mozambican
delegation that most of the employees there are women. The factory was opened
in the 1920's, after the Soviet government was established in the Uzbek repub-
lic. At that time the factory was located in a small house and had a few dozen
workers. Today, the gold embroidery factory is in a modern building, with
hundreds of embroiderers employed in its workrooms, where the work has been
increasingly automated. The Mozambicans visited the workrooms and observed the
embroiderers at work, learning from them about their working and living con-
ditions. Esperanca Machavela, secretary of the Mozambican Association for
Solidarity Among Peoples, discussed the implementatinn of the resolutions of the
Fourth FRELIMO Party Congress. She noted that great attention is given to hand
crafts in Mozambique. "We know that many Uzbek hand crafts have had a rennais-
sance in the Soviet era," Machavela said. "We feel we could share experiences

in this area.” The delegation members signed the guest pook at the factory.
[Text] [Maputo NOTICIAS in Portuguese 2 Jul 83 p 1 6362

26



WRAB CLAIMS IMPLEMENTATION OF RIKHOTO RULING

Johannesburg THE CITIZEN in English 4 Aug 83 p 18

[Text]

cso:

THE WEST Rand Ad-
ministration Board
(WRAB) in Johannes-
burg yesterday said
that it accepted, and
‘was implementing, the
Rikhoto ruling which
gives certain migrant
Black workers rights to
permanent residence
inurbanareas. = -

It denied trying to “de-
lay or frustrate ‘attain-
ment of these rights”.’

Mr John Knoetze,
chairman of WRAB, said
at a Press conference:
“The ruling is accepted by
us and is being imple-
mented in the spirit that
the judgment was given”.

Under the Rikhoto Ap-
peal Court judgment, mi-
grant workers, who have
worked for one employer
for a period of 10 continu-
ous years in a’ prescribed
area, despite the fact that
he returns to his employer
on the call-in card system
on a yearly basis, com-

3400/1741

plies with the provisions
of Section 10 (1) (b) of
the Urban Areas Act,
which gives the worker
the right to permanent
residence in urban areas.

Records

Mr Knoetzé pointed
out that the WRAB was
not qualifying people who
have worked for more
than one employer over a
15-year period.

“We keep a record of
the applications made to
us, and we ‘have’ asked
Pretoria to give us a rul-
ing on the 15-year mi-
grant worker as well,” he
said.

He denied that . the
WRAB had been hearing
only 100 cases a day and
turning othersaway. -\

“Up until last week, we
could handle only 150
cases in an efficient man-
ner daily,” Mr Knoetze
said. “Now that the num-
bers have dropped off, we
can easily handle 130 a

43

SOUTH AFRICA

day”.

A statement read at the -
Press conference also
said:

Query

“Pretoria has been ask-
ed for a ruling on whether
workers from the four in-
dependent states are en-
titled to the rights if the
qualifying periods ended
after the dates of inde-
pendence of these states _
as certain provisions in
the Urban Areas Act ap-

i pear to militate against
this.

“Applications in this
regard are processed and
kepton record”.

So far, the WRAB has
granted endorsements to
2355 workers employed
in the Board’s area of ju-
risdiction.

“The Board is coping
well with the situation,”
Mr Knoetze said.

“A decision. of the Su-
preme Court is law — we
accept it and are anxious
to carry it out,” headed.



Minister Cabaco referred to the contacts and discussions between officials of
the two countries in the information field, specifically during the Conference
of Nonaligned Countries and in UNESCO meetings and visits exchanged within the

framework of a more general cooperation program between Mozambique and Yugoslavia.

6362
CSO: 3442/315

25



SOUTH AFRICA

NATION READY TO STAKE BILLIONS ON DRY-COOLED ANSWER TO ENERGY PROBLEMS

Johannesburg RAND DAILY MAIL in English 23 Jul 83 p 10

[Article by Simon Willson]

[Text]

DEEP in the remote bush of the northwestern
Transvaal, South Africa is again pushing modern
technology to its limits — and maybe beyond.

Just as the Sasol project broke new ground in oil-
from-coal technology, 80 Escom is now striking out

into territory in the unexplored
field of large-scale dry-cooled power generation.

The Matimba power station, being built near
Ellisras, will be the world’s biggest dry-cooled
power station.

Nothing like it has ever been tried before. Ma-
timba be more than 10 times bigger than the
world’s largest existing dry-cooled station. To a
certain extent, therefore, Escom is treading boldly
into the dark.

‘This technological daring is not new to South
Africa’s giant energy corporations.

During the 1960s and 1970s, Sasol perfected the
large-scale sourcing of oil from coal at atime
when the technology involved had never been test-
ed at such a high level of output.

Millions of rands were daringly poured into
three vast plants and, as the real price of crude oil
soared in the late 1970s, the Sasol plants came on
stream with a significant and secure source of fuel.

‘The subsequent oil glut has done nothing to
reduce Sasol’s strategic value, as the real price of
crude is e: to continue to rise later in the
decade. Crude oil is, anyway, a shorter-lived global
energy source than South Africa's huge coal
reserves. :

But now the emphasis has suddenly shifted. Wa-
ter has succeeded crude oil as this country’s most
valuable fluic

Instead of ving energy generation away from

oil, pl

dependence on crude lanners are working on
making energy ition independent of water.

As with the 1 strategy, the move to dry-
cooled is not being done by half-measures.

Matimba, due to start operation in September
1986, will be only the first of Escom’s dry-cooled
mammoths. Another of equal size, Kendal, is
scheduled to come on stream a year later with a
smaller third plant, Majuba, following towards the
end of the decade.

The commission's long-term, triple commit-
ment to dry-cooling indicates its confidence in the
principle’s suitability to South Africa’s conditions
and requirements.

Matimba, however, will still have to show whe-

62

-States and Spain,

ther dry-cooling technology is economically and
mechanically viable on such a gigantic and totally
unprecedented scale in power generation.

m has staked R2 000-million on the calcula-
tion that it is.

For that is Matimba’s development cost. Ken-
dal’s will be higher still after inflation and cost
overruns, with Majuba not far behind.

But Escom’s engineers are confident that their
ever dy. is Sound. Technicians were sent to wisit
smaller dry-cool its in the Unit

and they also examined the tiny
Van Eck dry plant near Windhoek.

‘Two dry generating sets have been in ition
at Grootvlei power station since the early 1970s,
and Escom is satisfied with their performance.

‘The commission has carried out exhaustive re-
search into the principle of large-scale dry-cool-
ing, and is sure that its homework will pay off
handsomely.

‘As they were with the Sasol plants, the rewards
for success in dry-cooling are high. Dry-cooled

er stations use barely a third of the water used
y conventional wet-cooled power stations.

South Africa’s economic security would be
boosted immeasurably by a removal of electric-
ity’s reliance on water. Panicky, expensive water
transfusions from dam to dam would be a thing of

e past.

South Africa’s successful pioneering of large-
scale dry-cooled power would also be an important
milestone for other arid, desert-bound developing
countries with increasing power requirements.

But first Matimba has to vindicate the faith
placed in it. Technology that was previously em-
ployed in relatively tiny installations has to per-
form ictably in a plant of science fiction size.

Matimba will not cool its superheated water in
the familiar cooling towers and wastefully evapo-
rate what is now such a precious resource.

Instead, it will use water in a closed circuit, re-
using it after it has run through a sealed cooling

system.

But what a system. It will comprise, in basic
terms, a car radiator the size of six rugby pitches
laid side by side.

‘The “radiator” is divided into six units. Each
unit comprises 48 electric fans, each 9,14m in
diameter — the size of helicopter rotor blades.

(One senior engineer on the Matimba site confid-



The national APA meeting also approved several motions supporting the popular
struggles in South Africa, and solidarity with the MPLA (Popular Movement
for the Liberation of Angola)-Labor Party and the Angolan revolution.

Another motion was approved protesting the recent excursion of a group of
Portuguese sports enthusiasts to South Africa. The delegates decided to
send a protest to the Portuguese Soccer Federation.

During the course of the work, general approval was also given the draft
agreement between the Association and the African League of Friendship and
Popular Solidarity, which is to be signed in the near future.

9927
CSO: 3442/299



1. Mr Goburdhun said that figures concerning the cost of production of millers
are not available and are "top secret," yet Mr Goburdhun is in possession of
such figures.

We would like to mention that detailed figures relating to costs of production
have always been made to the Government. They are not published because it is
not in the interest of the country that our competitors be aware of our cost
of production.

By the way, we are the only organization who makes available to the authorities
detailed figures concerning the cost of production.

2. As for the comparison between the figures per companies’ audited accounts
and the MSPA's consolidated revenue and expenditure statement, these figures
have been reconciled and the reconciliation has already been submitted to the
Commission of Enquiry. The main reasons for the difference observed are the
treatment of depreciation and the fact that the MSPA consolidated figures deal
with sugar activities only.

3. We observe that the Mauritius Planters' Association has overstated consoli-
dated MSPA members' revenue by 12.6 million rupees in 1979 and 68 million rupees
in 1981, while the consolidated revenue has been understated by 1.6 million
rupees in 1980. We cannot reconcile these figures.

4. On the expenditure side, expenses have been grossly understated and we
totally reject their figures.

The difference between the MSPA figures and those of the Mauritius Planters
Association are as follows:

MSPA MPA Difference

Rs_(M) Rs _(M) Rs_(M)
1977 1,142.5 813.2 329.3
1980 1,379.9 728.6 651.3
1981. 1,561.4 843.2 718.3
Total 4,083.8 2,385.0 1,698.9

The total discrepancy over the above period amounts to 1.7 billion rupees and
we would like to know how the Mauritius Planters Association explains the di-
version of such a huge sum.

To illustrate how frivolous is the.manner in which the MPA has computed its
figures, we would like to make one observation:

The MPA claims that the expenses of sugar estates with factories were 843.2
million rupees in 1981 as compared to 813.2 million rupees in 1979, that is, an
increase of only 3.7 percent, while in the meantime we have had two major deval-
uations (30 percent and 20 percent), coupled with a high rate of inflation.

11,464 16
cso: 3419/1128



cso:

3400/1737

get,” which would consist
of officials from the De-
partment of Finance and
might include other ex-
perts from the public and
private sectors.

It would be chaired by

- the Director-general of

Finance, who should be
directly responsible to
Parliament for the report
of this committee.

Assocom suggests that
the Office of the budget,
as it exists in the United
States could serve as a
model for the structure of
this body.

“The political input
into the’ budgeting pro-
cess up to this stage would
be kept to a minimum but
public involvement in the
broad strategy and selec-
tion of options available
should be included at this
point.

“Tt is suggested that the
public and major private
sector representative bod-
ies should be given an op-
portunity to make an in-

‘ put to this committee.

“Once the committee
of the budget has put for-
ward its report for the
next financial year, the
budget now enters the

. political arena and it will

then be for parliament to
take the final decisions,”
Assocom says.

“Since the economic

53

-and financial process is ul-

timately indivisible, it
may be desirable for a
joint sitting of the Houses
to be held to consider the
national budget.

“This budget will detail
the funds to be made
available to each House
for its ‘own’ affairs bud-
gets and thereby allow a
cohesive approach and
overall control to be exer-
cised by all politicians in
the final allocation of fi-
nances.””

Assocom also recom-
mends that the select
committee on the consti-
tution give consideration
to the following meas-
ures:

That the President

' should give an overview

of proposed legislation or
major problems facing
the country, along the
lines of the “State of the
Nation” address given by
the US. President.

This address should be
delivered at the com-
mencement of every Par-
liamentary session, in the
joint sitting from the
opening ceremony.

“The content of this ad-
dress would _ provide
guidelines for the Presi-
dent as to the further deli-
mitation of ‘own’ and
‘general’ affairs and also
give guidance on budget-

_ ary constraints.”



serious droughts for many years. However, in the Western Cape there had been
a record. wine harvest and more corn, meat, wool and fruit produced than last
year. [Text] [Johannesburg THE CITIZEN in English 29 Jul 83 p 15]

MARINE INSTITUTE APPOINTMENT--CAPE TOWN--Dr C B H Fincham, a University of
Cape Town graduate and former South African Ambassador to Israel, has been
appointed director of the newly established Institute of Marine Law. Dr
Fincham was South Africa's representative in Israel until his retirement from
the SA Foreign Service in 1978. [Text] [Johannesburg THE CITIZEN in English
29 Jul 83 p 4]

MAIZE POLICY--THE Minister of Agriculture, Mr Greyling Wentzel, is to address
maize farmers at an extraordinary congress which could represent a crossroads
in the maize industry in South Africa. At the congress, which is being held
at the Ellis Park stadium in Johannesburg in September, Mr Wentzel is expected
to explain the Government's policy regarding the maize industry to farmers.
Earlier in the year, the National Maize Producers’ Organization (Nampo) held
discussions with the Minister. Nampo set out the critical conditions in the.
maize industry and asked the Minister to take urgent steps to assure the fu-
ture of the industry. Mr Wentzel then nominated four Nampo members to the
Jacobs committee which is to make proposals for policy guidelines for the
maize industry to the Government. [Text] [Johannesburg THE CITIZEN in English
30 Jul 83 p 5]

SECRET PLATINUM COINAGE--LONDON--Secret talks are under way in South Africa
between the major platinum producers, the Chamber of Mines and the Reserve
Bank aimed at establishing a one ounce platinum coin as legal tender on a par
with the Kurger rand. The proposed new coin is provisionally being named the
"Platirand" which has a numismatic ring about it. The South African authori-
ties are unlikely to proceed until they are certain the Platirand will take
none of the shine of the Kruger, which has established a regular international
market of 3-million ounces a year--rarely worth less than R1 000-million. But
the new move could have enormous implications for the platinum industry. For
a start, the substantial premium enjoyed by platinum over gold on the world's
metal markets for most of the 1970s has disappeared since 1980. According to
figures produced by David Hargreaves of a leading trader, the gold/platinum
price ratio reached a peak of 1,37:1 at one time last year, and left platinum
standing when its price took off on the Mekle crisis a year ago. Secondly,
the attempt to market platinum for jewellery is proving only moderately suc-
cessful. Rustenburg and Impala, however, have set up marketing organisations
which could provide the basis for a Platirand marketing body. Today the two
metals are roughly back in line with each other on the world's metal markets
and those in favour of minting a platinum coin argue that it would also help
to promote a speculative build-up of bullion stocks and stimulate awareness of
platinum's strategic value. [Text] [Durban THE DAILY NEWS in English 20 Jul
83 p 19]

ISLAMIC COUNCIL DELEGATION--A 12-MEMBER delegation from the Islamic Council of
South Africa will leave on Monday for Sierra Leone for an international con-
ference on problems for pilgrims in Saudi Arabia. Council president, Sheikh
Abu-Bakr Najaar, said the delegation, led by Imam Ishaak Jarodien of

77



PROBLEMS BESET SALES OF STATE-OWNED HOMES

SOUTH AFRICA

Johannesburg SOWETAN in English 4 Aug 83 p 4

[Editorial]

[Text]

THE SALE of the 500 000 State-
owned houses which has been hailed
by some as a massive breakthrough

affecting the housing logjam in the .

townships, is far from clear if the
kind of responses emanating from
the people are anything to go by.

Everybody, it is clear, would like f

to own a house of their own, even
under the suspect 99-year-leasehold
scheme. But there are all kinds of
rumours going the rounds that need
to be cleared if the people are going

~ to be satisfied.

There is talk already that this
kind of leasehold holds no security;
that the payment of site-rent after
buying the house still reverts the sit-
uation to what it was.

There are those who are afraid
that they might lose their homes if
they do not buy. Neighbours are
watching each other suspiciously

and with the housing problem acute~

as it is there is a pervasive air of
uncertainty and unhappiness among
many.

There is fear that the shadow of
the dreadful Movement and Set-
tlement of Black Persons Draft Bill
is still looming over us.

Lastly there is the bothersome
problem of the massive R250-million
electricity bill and how it is going to
be repaid. People feel that they were
not sufficiently cleared about the bill
and how it was going to be met.
Very little information and even

60

confusing elements about the repay-
ment of the electric project persist.
We are afraid even the officials
themselves do not have a clear, or
have rather not given a clear picture
about the repayments.

If we may presume to advise those
who are involved in these matters,
there is need for a lot more inform-
ation and clarification to the people.

We could go even further by sug-
gesting that this should be made a
Council election issue. The candi-
dates contesting these elections
should be able to challenge the in-
cumbents about these worrisome
problems. We believe the present
councillors should be made account-
able for all the various intricacies
surrounding the buying of these
houses.

They should be asked if the deal is
a good one. They should be asked
whether the one year period would
perhaps not be extended. They
should be asked to explain the
anomalies surrounding the repay-

“ment of the electricity project and

numerous other niggling questions
that have still not been cleared.

And yet the seriousness of the is-
sue is so acute that we believe it
transcends politics. We are aware,
however vaguely, that there are pri-
vate organisations that are keen to
help in this regard. We believe this
will be a great time for them to-do
just this, particularly because their
involvement will not be seen as di-



@ It has united the home-
land leaders in a coalition
against the plan, with even

i Transkei’s Matanzima pre-
ipared to abandon some of
the pretensions of
independence.

Right
direction

South Africa has come a
‘long way if a constitution
that alienates’ non-revolu-
tionary Africans can be
considered a step in the
right direction.

Despite this, government
spokesmen and verligte
academics advance the
idea that the constitution
represents a step in the
right direction.

The argument as
‘follows: the races of re-
“form has only just started
and the constitution cannot
‘be judged on the present
plan only. As the process
“unfolds it will become easi-
er to rec the evident
constitutional defects.

Most Afrikaners and
ish-speakers will come
together in a National Par-
,ty-led reform coalition as
whites learn to strike bar-
‘gains with their coloured
:and Asian counterparts.

Good °
intentions

Gradually, it will become
feasible to draw in the Afri-
cans as well. To clinch this
argument it is emphasised
that the P W Botha govern-
ment is imbued with good
intentions to make the con-
stitution work and that all
kinds of unintended good
will follow once the process

ets off to a good start
Gwhile if they are thwarted
a conservative backlash is
the assured, alternative).

All that stands in its way
is the “radical far left” —

resumably the few hard-
iners in the PFP and that
most minute faction, the
oorbeligtes (all three of
them).

This faith in good inten-
tions and unintended conse-

n

quences looks ‘hopelessly
Misguided when measured
‘against the sad facts of
South African political and
teonstitutional history.

The founding fathers of
ithe Union of South Aftica
‘(with the’possible exception
of Onze Jan Hofmeyr) wor-
iried little about the future
simplications of the compro-
mise on the franchise provi-
sions as a blatant act of
political discrimination
against nonwhites.

In the view of Smuts,
Botha and Merriman this
would not be permanent
but would disappear as
whites became better edu-
cated and acquired more
political acumen.

South Africa would be a
white man’s country, but
one imbued with the proper
‘spirit of trusteeship — and
We know what became of

When Africans were re-
_moved from the voters’ roll
in 1936 and given a separ-
ate, inferior citizenship,
Smuts shed few tears.

The “right direction”, in
his words, were separate
native councils, elected by
the Africans coupled with a

per exercise of white
teeship “in harmony
with our religious and poli-

tical ideas”.

The Native Representive
Council finally foundered a
decade later. It helped little
that the second most
powerful man in the cabi-
net was J H_ Hofmeyr,
‘someone with impeccably
liberal good intentions (Mr
*Heunis today is in some re-
spects his verligte
counterpart).

The limited form of self-
government granted in 1959
to Africans in the home-
‘lands, became after 1976
‘the grounds for depriving
them of their South African

citizenship.
- This was held up as the
“logical consequence” of
‘the 1936 provisions grant-
°ing more land to the re-
serves, but it was of course
never intended at that time
‘that this could be consid-
ered as a substitute for
South African citizenship.
Talk of unintended benefi-
cial consequences!

33

The story with respect to

‘coloured political rights is

Tuch the same.

Despite the charges by
General Hertzog of “infi-
delity” and the betrayal of
the trust of the coloured in
the word of the white man,
Malan’s Nationalists event-

ually went ahead and re-

moved the coloured people
from the common roll, in

the 1950s.

“‘Obliged’ to

negotiate

Many Nationalists at the
time expressed their good
intentions of making separ-
ate representation a better
deal for coloured people
than common roll repre-
‘sentation. But separate
representation was abol-
ished in the 1960s to start’a
new “growth point”, the
Coloured Persons’ Repre-
‘sentative Council.

A decade later that too
‘was abolished.

The fact that the.
coloureds are now brought
into Parliament in a junior,
segregated capacity is un-
doubtedly an advance on
that, but few noticed that
the coloured representa-
tives will not have the con-
trol over the executive they
enjo} in the an
enor ney used to good
effect.

When the Labour Party
Jeaders last year insisted on
‘this being built into the new
constitution they were told
by Cabinet Ministers that
the President ' would be
“obliged” to negotiate with
the leader of the coloured
chamber.

Only real
verligtes

Again the process of con-
situtional development will
rest on promises and good
intentions instead of politi-
cal rights and constitution-
al decree,

Some verligte politicians.
and academics will try to
counter with the argument
that reform really only
started with the coming to

; power of Mr P W Botha.



"A car with a 66% local content and a mass of 1 200 kg carries the maximum
excise duty: 13c for every Rl excise value," says Mr Malan.

"At the other end of the scale the excise duty disappears completely if the
mass is reduced to 550 kg."

For a car with more than 66% local content, says Mr Malan, the rebates granted
(at say 68%) are higher for lighter vehicles and become progressively more for
every reduction in mass.

"Lighter cars earn greater rebates when the local content exceeds 66%," he
says.

"For a car with less than 66% local content (subject, however, to the weighted
average nett local content of all car models cleared from a manufacturing
warehouse during the quarter of assessment is more than 66%) will carry a
greater excise duty.

"The lighter car," says Mr Malan," although penalised more severely for being
under content, is still better off than its heavier counterpart if the local
content falls below 66%."

cso: 3400/1738

73



cso:

} Let there be no mistake.
Although he has been far
stronger on rhetoric and
symbolism than actions, Mr
Botha (and Mr Heunis) de-
serves credit for identify-

ing reform as a Prerequl-
site for (white) survival.
They may indeed be the
only real verligtes in the
Cabinet and it could factu-
ally be true that the consti-
tution is the maximum the
could get past their col-
Jeagues in the caucus.

Give them
their way

In view of this, some

le, otherwise 0] to

e constitution, have come
ito believe that the Botha-
Heunis team atleast offers
some hope for reform and
that it is best to give them
their way, lest-the Botha-
Heunis team be deposed, all
constitutional reform be
ditched and the National
party revert to old-style
apartheid under leadership
of Mr F W de Klerk.

i This asseasment looks
like a recipe for a huge poli-
tical hangover. From 1977
onwards the National Par-
ty has tried through various
means to build consensus as
a preliminary to a new
constitution.

Mid-1983 finds the
National Party wholly iso-
lated in this constitutional
quest. The proposals have
been rejected by everyone;
from the Conservative Par-
¥ and Sabra to the PFP,

suthelezi and the alliance
‘of homeland leaders, while
even the Broederbond can-
not come out in clear sup-

rt or give any definite
Feaa to its members.

Even within the party the
Botha-Heunis team has
only lukewarm support: a
large proportion of mem-
bers and even Cabinet Min-
isters appear to be far from
committed to make the
plan work effectively as a
reformist measure.

3400/1738

Everyone with the most
rudimentary grasp of South
! African politics should
know that an Afrikaner Na-
tionalist President, even
with indisputably good in-
tentions, would make it his
highest priority in a period
of reform. to prove to his
Cabinet and caucus that the
consititution will not be
used in any way which
would increase Afrikaner
fragmentation.

Secondly, the new consti-
‘tution will bring a vital ele-
ment of uncertainty into
the Afrikaner political
game. Indeed the constitu-
tion makes it impossible to
remove the President with-
out the approval of all three
houses.

Although unlikely, it is in
theory possible that a refor-
mist President would come
in conflict with the NP
while winning such a mea-
sure of support from the
coloured and Asian Houses
that the white House will be
unable to remove him
should it want to do so. In
the case of a conservative
President, this scenario is
impossible to conceive.

Wide range
of support

For these powerful rea-
sons there will be great
pressure on particularly a
reformist President that he
should do nothing which
will further upset the Afri-
kaner equilibrium.

Otherwise the right win
+ under Dr Treurnicht will
+ simply go to town.

The fundamental defect
* of the constitution is that
\ the President is not popu-
! larly elected but, in effect,
by the NP which will inevi-
- tably mean that he will be
seen as its creature.
We hear much about the
: NP being unable to go any
further than the current
proposals, but this is open
fo doubt.

Experienced pollsters

34

). are convinced that the bulk
of the white electorate, ar”

; even most Nationalists,
support the idea of a popu-
larly elected President,

, particularly in view of the
fact that Mr Botha is able
to draw support from a
wide range o! le out-
side Atrikanerdom.

The real resistance to
Such reformist moves is not
to be sought in the white (or
even Afrikaner electorate)
at large.

More realism
is needed

Rather it is to be found in
the NP bureaucracy which
is reluctant to relinquish
control of its leaders, let
calone a reformist President
with wide popular support.
(Yet at the same time this
NP bureaucracy asks us to
believe that the President
will be allowed to turn the
constitution into an instru-
ment of reform!)

Thave little doubt that if
the NP is not allowed to
introduce this constitution
it will sooner or later have
‘to face up to the need for a
popularly elected Presi-

lent.

South Africa needs fewer
good intentions and more
sober realism, especially in
‘the light of our sad constitu-
tional history.

The fundamental reality
of our politics is ‘that the
current governing part;
does not have a fread
enough base for the kind of
reforms that. will ensure
peace and stability in the

‘ighties and Nineties.

The base of the it
governing party will not be
imptc: ad by iésting it on a
flawed constitution. Politi-
cal priorities demand that
a proper base and consen-
‘sus should first be built be-
fore a. new constitution is
adopted.

{ It simply never works
the other way round.



SA HAS A FREE PRESS, MINISTER CLAIMS

SOUTH AFRICA

Johannesburg THE CITIZEN in English 30 Jul 83 p 9

[Text]

cso:

THE Government “was,
“without a doubt,”
committed to a free
Press in South Africa,
the Deputy Minister of
Foreign Affairs and In-
formation, Mr Barend
du Plessis, said in Pre-
toria yesterday.

Addressing the annual
congress of the Afri-
kaanse Studentepers-
unie (ASPU) at the
University of Pretoria,
he said the Government

* realised there was a de-
gree of cynicism in cer-

7 tain circles — that the

: Government’ only paid

‘lip service to. Press free-

:. dom.

However, it was untrue

* and unfair to create the

; impression the Press
would have “much
more to write about” if
not for the limitations
imposed by the Govern-
ment.

“Only real security issues
are withheld from pub-
lication,” he said.

Mr Du Plessis described a

3400/1737

recent statement by the
editor of The Star, Mr
Harvey Tyson, who said
Press. freedom was
already lost, as “simplis-
ticand unqualified”.

‘An ideal relationship be-
tween the government
and the media would be

“very difficult to achieve

at this stage.

The Opposition Press in
South . Africa could
hardly be objective, im-
partial, or constructive
with regard to the gov-
ernment, Mr Du Plessis
said, and the Govern-
ment had to accept this.

The Opposition Press

_would instead publish
the same “pro’s ‘and
con’s” as the politicians
whose: side they had
taken. wy

Mr’Du Plessis’ said there
was often doubt
amongst “politicians
and others” as ‘to
whether certain sections
of the press _ really
“meant well for South
Africa, its.people and

49

future”.

There could not be an .
ideal relationship be-
tween the Government
and the Press if the
Press:

© presented South Africa
as a country of oppres-
sion.

@did not have a clear
understanding of the
dangers facing South
Africa, and

@ did not accept it was
answerable to the gen-
erallawig»f the country.

nor could their be an ideal
relationship if the Gov-
ernment:

© could not tolerate criti-
cism.

© kept essential informa-
tion secret from the
media.

@ did not have regular
liaison on an organised

“basis and on the highest
level with the media,
and

@ did not have effective
channels for the flow of
information between it-
self and the miedia..—.



There was also some discussion of actions to strengthen the cultural ties
between the two peoples.

At the end of the proceedings of the most recent session of the Joint Commission,
the two delegations agreed that the next meeting would be held next year in
Maputo. The commission met last week in Lisbon for 4 days, at the end of which
the governor of the Bank of Mozambique signed a joint communique with Portuguese
Foreign Affairs Minister Jaime Gama.

6362
C80: 3442/315

22



ASSOCOM SUGGESTS CONSTRAINTS IN PLANNED REFORM

Johannesburg THE CITIZEN in English 2 Aug 83 p 12

[Text]

A CONTROL mech-
anism is needed in the
proposed new consti-
tution to ensure that
the President chooses
between “own” and
“general” affairs “with
some measure of cer-
tainty,” Assocom says.

This is one of the rec-
ommendations Assocom
(the Association of
Chambers of Commerce
of South Africa) has
made in a supplementary
memorandum to the sel-
ect committee on the con-
stitution.

Assocom submitted a
main memorandum to the
committee, amplifying
and supplementing | its
views by oral evidence on
July 12.

At this hearing the
committee requested: As-
socom to give its view on
three further _ issues,
namely:

© The process of de-
termining “own” and
“general” affairs,

© What constraints, if
any, should be placed on
the President’s powers,
and

@ The allocation of
funds between the diffe-
rent Houses of Parlia-
ment.

“Assocom subscribes
to the view that the State
President’s powers to de-
cide whether or not a bill

_is an “own” or a “gener

\al” affair should, be con-
Ltrolled in some or other
fashion,” the supplemen-
tary memorandum says.

In addition to using

Schedule 1 as guidelines”

for deciding, the Associa-
tion recommends the
President should base his
«decision on the advice of
: his Cabinet, the advice of
the relevant Minister’s
Council, and ‘adequate
provision for any necess-
. nditure on the
bill in the relevant “own”
affairs budget of the
House concerned.
Another option in limi-
ting the power of the
| President in respect of
“own” and “general” af-
\ fairs is to permit a form of
appeal to the President’s
Council on the matter.

Such an appeal would
be at the instance of any
one of the Houses, but
the ruling of the Presi-

| dent’s Council need not
necessarily bind the Presi-
dent.

The merit of this pro-
cedure would be to pro-
vide a forum for dis-
cussion and review of the

ident’s decisions, and
the President could find
this a useful supportive
exercise, Assocom says.

“These limits to the
president’s powers would
also serve the purpose of
reducing the risks of con-
troversy surrounding the

52

SOUTH AFRICA

high office of the Presi-

' dent.”

Assocom believes the
distinction betwen “own”
and “general” affairs will
diminish with the passing
of time.

In the interim, where
there is doubt as to
whether a matter falls
into one or the other ca-
tegory, the issue should
be regarded as a ‘general’
rather than an ‘own’ af-
fair.”

In particular, besides
tertiary education, the
provisions of sub-econ-
omic housing and control
of local authorities, es-
pecially financial control,
should be retained as
“general” affairs, and
Schedule 1 of the consti-
tution Act - should be
amended from time to
time to further limit the
scope of “own” affairs,
Assocom recommends.

Turning to the alloca-
tion of funds between the
different houses of parlia-
ment, it is the Associa-
tion’s strongly held opit
ion that a sound, sable
economy which gives the
best conditions for stable
political growth, is best
achieved by a central bud-
geting system.

Its primary recommen-
dation is that the deci-
sion-making process be
institutionalised as a

“committee of the bud-



CSO:

3400/1737

rected by political considerations, in
the main. :

We believe the people would wel-
come outsiders to provide inform-
ation and clear some.of the difficult
things that are above even the most
literate in the black society. Infor-
mation bureaus or centres are
needed in the townships, manned
not by the hated board bureaucrats
or council officials but by disinter-
ested parties.

61



Soundness of Sugar Industry Examined
(LE MAURICIEN, 20 Jul 83; L'EXPRESS, 21 Jul 83)..

Situation Not Alarming
Growing Debt of Sugar Industry
Sugar Producers Refute Planters

Problems of National Sugar Industry Reviewed
(Yvan Martial Editorial; L'EXPRESS, 3 Jul 83)........

MOZAMBIQUE

Joint Commission Cooperation Projects
(NOTICIAS, 20 Jul 83)...

Netherlands Dredging Equipment for Beira Port
(Rogerio Sitoe; NOTICIAS, 20 Jul 83)..

Yugoslavia Donates Television Sets, Radios
(NOTICIAS, 8 Jul 83)..

Briefs
Norway To Finance Power Plant
Delegation Visits Uzbek SSR
Portugal Desires Stronger Ties

NAMIBIA
Briefs
Ovambo Administration Malpractices
SENEGAL
Fish Exports Increase
Round Table Suggestion
SOUTH AFRICA

Ciskei Assembly Accuses SA of Breaking Promises
(Owen Vanqua; DAILY DISPATCH, 22 Jul 83)....

Giliomee Examines Proposed Constitution
(Hermann Giliomee; SUNDAY TIMES, 24 Jul 83)..

De Kock's Determination To Beat Inflation Viewed
(Fleur De Villiers; SUNDAY TIMES, 24 Jul 83).........

Giliomee Examines Inkatha Election Boycott Plans
(Hermann Giliomee; THE CAPE TIMES, 16 Jul 83)........

12

17

21

23

24

26

27

28

29

29

30

32

35

38



TSHABALALA MOVES TO OUST TOP COUNCILLORS

Johannesburg SOWETAN in English 3 Aug 83 p 2

[Article by Sam Mabe]

[Text]

MR EPHRAIM Tshaba-
lala, a Soweto tycoon
and leader of the Sofa-
sonke Party, yesterday
revealed plans to oust
Mr David Thebehali and
Mr Tolika Makhaya as
chairman and vice-
chairman of the Soweto
Community Council.

Claiming that he was
instrumental in the elec-
‘tion of Mr Thebehali
and Mr Makhaya, Mr
Tshabalala held a press
conference yesterday to
disclose that a meeting
of the Sofasonke Party
would be held at the Na-
ledi Hall on Sunday
where a campaign to
oust the Soweto Council
leadership would be
launched.

Mr Tshabalala made a
startling claim that as
leader of the Sofasonke
Party he had declined
the leadership of the
council because: “I did

cso: 3400/1741

not have the expertise
required to run a coun-

cil. Besides I had a lot of
business commitments.”

Mr Thebehali, on be-
ing told of Mr Tshabala- .
la’s claims; ‘threatened
to take legal action. He
said he had nothing to
do with Mr Tshabalala
as far as his election was
concerned.

Attacking the coun-
cil’s electrification
scheme, Mr Tshabalala
said that the millions of
rands spent on electrify-
ing Soweto could have
been used on housing.

“This electricity is to-
day driving many people
out of their houses. Peo-
ple were deceived into
believing that electricity
was going to be cheap
but it is the most expen-
sive commodity used in
any household.”

He also said that the
council leadership had

41

SOUTH AFRICA

been postponing elec-
tions so as to remain in
power forever.

In his statement, he
said the present leader-
ship should be ousted
because:

© they destroyed shacks
and left men and women
exposed to the winter
colds

@ they”put a 20-year
electricity bill around
the necks of Soweto
residents

rent hikes have been
coming one after the
other since they took

wer.

Mr Tshabalala also
said that with the Black
Local Authorities Act
having become effective
this week, community
councils should be dis-
solved so that all coun-
cillors could start cam-
paigning for election
from the same platform.



ticipate in the proposed
separate black advisory
council because it was a
_ step in the wrong direc-
‘tion.

He envisages a uni-
ttary state in which all
ithe races share power
: within one political sys-
“tem which guarantees
the political rights of all
national groups and de-
fends minority rights.

Chief Buthelezi would
risk losing all credibil-
ity if his Inkatha would
now participate in the
black local authorities
after the new constitu-
tion has drawn the line
so firmly between Afri-
cans and non-Africans.
Indeed the new Promo-
tion of Local Govern-
ment Affairs Act is a
distinct step backward
relative to the Presi-
dent’s Council recom-
mendation that there
should be co-ordination
on a regional level of
black, white, coloured
and Indian local govern-
ment.

In terms of the new
Act blacks are specifi-
cally excluded from the
terms of reference of
the South African Co-or-
dinating Council for
Local Authorities which
is to recommend new
local government struc-
tures accommodating
the mutual interests of
the various racial com-
munities.

The government’s
answer is that it is still
.— to continue with the
metaphor — watching
its step with respect to
blacks living in so-
called white South
Africa, which is the sub-
ject of study by a spe-
cial cabinet committee.
However, in the mean-
time the new dispensa-
tion, which leaves
blacks out on a limb
with respect to local
and regional co-ordina-
tion, is unfolding.

According to Dr Piet
Koornhof the preparato-
ry work on the conver-
sion of community
councils into proper
black local authorities
has,nearly been com-
pleted with respect to 25

townships (among
others Soweto, Mame-
lodi, Atteridgeville and
Port Elizabeth). These
communities could, in
the minister’s words,
“hold elections during
September, October or
November, should they
wish to do so”. No won-
der that Chief Buthelezi
has thrown up his hands
in horror and has re-
fused to walk any fur-
ther steps in whatever
direction.

Nothing of course
stands quite still and
the pace of South Afri-
can politics is accelerat-
ing in_a disconcerting
way. Could it be that
Chief Buthelezi’s step is
a fatal blunder? The La-
bour Party has decided

‘to participate in the
“new dispensation be-

cause it is above all in-
terested in capturing |
local government and

' from this base (rather,

than from the coloured
chamber in Parliament)
try to negotiate a better
deal.
For Chief Buthelezi,
control over the town-
ships on the Witwaters-
rand is vital if he is to
extend his rural base
_and truly become a
national leader. For
Chief Buthelezi the de-
cision to pull out from
| the new black local au-
| thorities must be a par-
‘ticularly painful
decision in view of the
| fact that his post-Soweto
| strategy has run into dif-
ficulty on several fronts.
Firstly, his effort to
build up a Black Alli-
‘ance to forge black uni-
ty is in trouble after the
decision of the Labour
Party to pull out.
Secondly, Chief
Buthelezi has since the
Soweto disturbances
tried to promote In-
katha as the internal
wing to the ANC. This is
no longer credible after
the ANC repudiation of
the Chief, the recent
ANC attack on Ulundi
and the stepped-up ANC
violence while Inkatha
still holds out for a ne-
gotiated settlement.
Thirdly, Chief Buthe-

39

| lezi has, in Roger South-
 all’s words, sought to

present itself as a po-
tential third force medi-
ating between opposing
white and black nation-
alism. However, the new.

| constitutional dispensa-

tion will make such a
role infinitely more dif-
ficult.

And now Chief Buthe-
lezi has rejected the
chance to get a base on
the. | Witwatersrand
through the new local
authorities. Even with a
membership of nearly
three-quarters of a mil-
lion, Inkatha’s opportu-
nities for action seem
limited.

While there may be
some leedvermaak in
certain circles about
Chief Buthelezi’s trou-
bles, the government
and the business com-
munity have reason to
be worried about In-
katha’s decision not to
participate in the elec-
tions of the new black
local authorities.

From the Nationalist
point of view the
coloured people and In-
dians‘are an ideological
problem; however,
these communities do
not at the moment con-
stitute any real political
problem in terms of
maintaining stability.

The position with re-
spect to the urban Afri-
cans is different. Here-a
major crisis can build
up if the authority vacu-
um in the townships re-
mains. Rents will simply
have to be raised if ser-
vices and amenities are
to be improved. (“It is
up to the Soweto Coun-
cil to find ways of get-
ting the money either
from employers or from
the residents but defi-
nitely not from us, as

|Our resources are now

dry,” the chairman of
the West Rand Admini-
stration Board said in
1980).

But raising of rents is
an explosive issue, as
shown by the distur-
bances of 1976 and the
current nasty turmoil in
the Durban townships,
Lamontville and Ches-



cso:

3400/1738

ed privately that his main concern was that the
whole radiator structure did not take off!

‘The water will be cooled by passing through the
radiator fins and being blown by the fans — the

same principle as that employed under a car bon-
net, but unimaginably bigger.

‘It is calculated that’the process will consume
only 0,7-0,8 litres of water per unit of electricity,
compared to the 2,5-2,8 litres of water per unit
consumed by wet-cooled stations.

But in achieving this saving, virtually every step
in developing Matimba will be a new frontier.

It will be Escom’s only power station north of
Pretoria. Sited barely 30km from the Botswana
border, the multi-million rand installation will
also become a major security headache.

With South Africa’s power supply ‘suddenly
made vulnerable by the drought, such a plant could
be a key target for insurgents bent on economic
disruption.

__ With that in mind, Escom has thrown up 9,5km of
“double, barbed wire-topped ‘security fencing
around Matimba’s 100ha site, with patrol roads on
the perimeter and para-military guards at all
access points.

‘The plant's sensitivity can also be gauged by the
fact that Escom regards the Matimba security
budget as secret.

The drought has shown the value of investing in
power generation that consumes less water. A
new, conservationist morality has swept the coun~
try, under which the carefree evaporation of mil-
lions of litres of this essential but dwindling re-
source may shortly become unacceptable. .

‘The coming months may show Escom’s strategy
in developing Matimba to have been inspired, and
the bold R2000-million stake to have n well
worthwhile.

64



MOFELI CALLS FOR DIPLOMATIC TIES WITH SOUTH AFRICA

Johannesburg THE CITIZEN in English 3 Aug 83 p 14

[Text]

cso:

3400/1741

MASERU. — The leader
of Lesotho’s opposition
Democratic Party, Mr C
D Mofeli, is to address
the Pretoria Press Club
on his party’s policy of es-
tablishing diplomatic
links between .Lesotho
and South Africa.

Mr Mofeli told a Press
conference in Maseru yes-
terday he had accepted
the club’s invitation and
would be travelling to
Pretoria on a date still to
be fixed.

He said it was import-
ant for Lesotho to estab-
lish diplomatic relations
with South Africa be-
cause of numerous ties
between the two coun-
tries in economic, labour
and tourism fields.

Lesotho would benefit
in many ways through
consultation with South
Africa if diplomatic re-
lations were established.

He said Lesotho’s tour-
ist. industry was on the
verge: of collapse because
the bulk of the tourists to

“the country were South

‘Africans who had “run
away” from Lesotho and

now. spent their holidays
in South Africa’s home-
lands.

Mr Mofeli said he had
announced the invitation
by the Pretoria Press Club
because” I have nothing
to hide as I have nothing
sinister against anybody
in my advocating the es-
tablishment of diplomatic
relations between the two
countries.” “

On the presence of
African National Con-
gress refugees in Lesotho,
Mr Mofeli said Lesotho
should request the OAU
to take all ANC refugees
out of Lesotho and re-set-
tle them elsewhere in
Africa, because Lesotho
was weak and could not
face attacks on her terri-
tory through their pres-
ence.

“We are committing |

national suicide by allow-
ing ANC refugees to set-
tle in Lesotho,” he said.

Mr Mofeli was expelled
recently from the Lesotho
National Assembly be-
cause of his pro-South
Africaattitude”  ~

LESOTHO



REFORM BILL SURVEY 'NOT SURPRISING,' SAYS BORAINE

Johannesburg THE CITIZEN in English 2 Aug 83 p 4

[Text]

cso:

3400/1737

CAPE TOWN. — The
chairman of the Progres-
sive Federal Party's Fed-
eral Executive, Dr Alex
Boraine, said yesterday
he was not surprised that
more and more people
were changing their
minds about the Govern-
ment’s constitutional
plan.

He was commenting on
the results of an opinion
poll indicating a drop in
support of almost five
percent for the proposals
since April.

The poll conducted for
the Nationalist Sunday
newspaper, Rapport,
showed that more than 60
percent of White South
African voters would sup-
port the ‘constitutional
plan if a referendum were
held now, compared to

64,8 percentin April.

‘Among PFP members,
46,2 percent would say

“yes” now —a 13 percent

‘drop sitice April.
‘Among National Party

“voters, 90,9 percent now

supported the plan — a
1,8 percent drop since
‘April.

Dr Boraine said the
more people knew about
the contents of the Con-
stitution Bill the less they
likedit.

51

He had no doubt this
trend would continue and
that opposition to the

| Nationalist plan would

grow.

“Bearing in mind that
this survey was undertak-
en before the PFP’s pub-
lic meeting campaign

, throughout South Africa,

the percentage of PFP
supporters who will op-
pose the proposals will
undoubtedly increase
substantially,” he said.

“It is a pity that the sur-

vey was confined to

White voters.

“Afterall, the

| Coloured and Asian com-

munities are as much in-
volved as Whites, and I
am convinced that any
survey of their attitudes
will show a hardening of
opinion against the con-
stitutional plan.”

Having just spoken at
14 public meetings in the
Natal Midlands, Dr Bo-
raine said it was clear to
him most people were
horrified as soon as the
main principles of the
plan were outlined to
them.

“I have no doubt there
will be a growing consen-
sus that the Government
must go back to the draw-
ing board,” he said. —

SOUTH AFRICA



LIFE INSURANCE INDUSTRY EARNINGS REPORTED

Johannesburg THE CITIZEN in English 4 Aug 83 p 27

[Text]

CAPE TOWN. — The
South African life in-
surance industry pro-
vided. © protection
through an estimated
5,5-million policies in
force to policyholders
or their beneficiaries
last year. Total income
grew to R5 246-mil-
lion.

About 2,5-million pen-
sion fund members were
covered by pension funds
administered by the in-
dustry, according to the
Life Offices’ Association
annual ‘review released
yesterday.

It ‘also estimated the
number of annuitants in
receipt of benefits during
the past year as being in
excess of 100 000.

In addition, says the re-

“view, many members of

other ‘pension funds,
which . had funds en-
trusted to various life of-
fices for investment, ben-
efited from the expertise
of these offices.

Funds set aside during
the year to meet future
obligations rose by
R3 192-million to
R18 028-million. _ This,
says the review, was
achieved in a period
where total personal sav-
ings in South Africa
dwindled to a figure of
only 4,6 percent of per-
sonal disposable income,

57

against the longer term
average of 10 percent.

The increasing role the
industry is playing in the
underwriting of group
schemes, and pension
funds is shown by the fact
that almost 45 percent of
premium income came
from these sources. This
income -source- represen-
ted a 33,5 percent in-
crease on the previous
year’s figure.

“A specially important
task has therefore rested
on the life insurance in-
dustry and particularly
those" responsible for its
investments, as the indus-
try has to ensure that the
savings of the policy-
holder — the small man
— are canalised into pro-
ductive investments with
maximum possible secur-
ity,” comments the re-
view.

The review, as is, cus-
tomary, deals with statis-
tical information and,
commenting on the

‘growth of total income to

R5 246-million (of which
R3 451-million came from
premiums and R1795-
million from investment
income), points out that
total income surpassed
the figure for total assets
held by the industry six
years ago.

The R1 200-million
growth in recurring pre-
mium income for other
‘individual policies’ rep-

SOUTH AFRICA



people only become communalistic as a result of this manipulation. "When the
politicians leave the people alone, there is no communalism," added Mr Ollivry,
who cited as an example the village elections recently where an independent
candidate came in at the head of the list in Triolet.

According to Mr Ollivry, voters "on both sides who fall into the snare of:
communalism" will come to realize quite soon after the elections that communalism
does not pay and that “austerity should apply to all Mauritians." "Whichever
of the two blocs wins, it is going to be necessary to establish a great national
party, a truly Mauritian party, and this is where the UDM, with its credibility
and its center-left program, will have a role to play. All this of course
depends on finding new party workers and the means necessary to carry out this
work of national reconciliation to a successful conclusion," said Mr Ollivry,
who thinks that by running in next month's elections "the UDM would permanently
disqualify itself from becoming the rallying point for those who, after the
elections, will be seeking a new party of change to bring reform."

The UDM leader also criticized Mr Berenger for describing the prime minister
and some MSM members as incompetents, while at the same time wondering whether
the candidates running under the MMM banner today are not potential "turncoats
and incompetents." But neither was he holding a brief for the MSM, which he
criticized for trying to make the voters believe that all the austerity measures
were solely the work of Mr Berenger, and that they themselves bore no respon-
sibility. "Is it not time the politicians treated us as adults?’ asked Mr
Ollivry, before calling on political leaders to hide nothing from the people.

9516
cso: 3419/1115

11



JPRS 84193

25 August 1983

SUB-SAHARAN AFRICA REPORT

No, 2837

CoNTENTS

ANGOLA

APA To Intensify Struggle Against Anti-Angolan Activities
in Portugal

(JORNAL DE ANGOLA, 5 Jul 83) .ccceseccccceccccscvcece 1
Medical Students in Czechoslovakia Described :
(JORNAL DE ANGOLA, 24 Jun 83) .ceecceesecccccccececes 3
GABON
Briefs
Nuclear Power Station Studies 5
GAMBIA
Minister of Finance Sheriff Sisay's Budget Speech
(Eddie Momoh; WEST AFRICA, 25 Jul 83)..ccecesccsceees 6
Briefs
Imports Increase 8
Liver Cancer Campaign 8
LESOTHO
Mofeli Calls for Diplomatic Ties With South Africa
(THE CITIZEN, 3 Aug 83). .cccccccccccccccsccscccncccces 9

MAURITIUS

UDM Hits Role of Communalism in Elections
(LI EXPRESS, 15 Jul 83) .ccccccccecccccccccceccccccccees 10

-a- (III - NE & A - 120)



GILIOMEE EXAMINES PROPOSED CONSTITUTION

Johannesburg SUNDAY TIMES in English 24 Jul 83 p 30

[Article by Hermann Giliomee:

Intentions"]

[Text]

‘CONSTITUTIONAL debates tend either
sto bore one stiff or frighten one to death.
‘The debate on the proposed new constitu-

tion Kas the rare distinction of doing both.
On the one hand, it is almost a non-debate:

almost all the partici

its agree that the pro-

posed constitution is deeply flawed.

On the other hand, this
may be the last chance

‘South Africa has to seek

greater. stability by broad-
ening the democratic
process.

Instead, the absence in

fhe proposed consitution of
trie

institutions and demo-
cratic procedures to re-
solve conflict, and the fail-
ure to provide a popular
base for the key office, the

dency, raise real fears
about the direction the con-
stitution will take our
country.

There is little sense in
exchanging a white semi-
democracy for a dictator-
ship decorated with a few

of colour.

The main .
defects.

The main defects of the
constitution can briefly be
restated:

@ The constitution rests

sulpheoa dos

— the surest way of
perpetuating racial
conflict.

@ The fixed 4:2:1 numeri-
cal ratio of white, coloured,
and Indian representation
in Parliament makes it im-
possible for genuine cross-
iracial coalitions to develop.

*) @It introduces coloured
and Indian representatives
sinto Parliament in such a
{manner that they will be
-unable to change the apart-
‘heid structures built into
‘thee constitution itself, but
will be held responsible for
“whatever Parliament de-
| cides. They could thus be
jout-radicalised by their
“own communities.

@it excludes Africans
and thus destroys the mid-
dle ground in our urban
:townships. Already Chief
‘Buthelezi has decided that
Inkatha, the only credible
internal black alternative
to the,ANC, will not contest
the elections for the new.
black local authorities.

‘The authority crisis
‘building up in our black
‘townships, where South Af-
irica’s real problems lie, can
idirectly be linked to the po-
“Tarising effects of the new
constitution.

32

SOUTH AFRICA

"The Road to Dictatorship Is Paved With Good



SOUTH AFRICA

BRIEFS

COAL PRICE, OUTPUT--THE lower-than-expected domestic coal price increase and
the intense pressure on export prices are reflected in the June quarter re-
sults of Rand Mines producers Witbank and Welgedacht. Both were able only to
maintain their after tax profits--even though tonnages sold were higher. Wit-
bank sold 3,7 million tons--21 percent more than the 3,1 million tons sold in
the March quarter. Working profil rose from R21,7 million to R24,6 million
which, after sundry expenditure of R448 000 (revenue of R249 000 in the previ-
ous quarter) left profit before tax of R24,2 million, compared with R21,9 mil-
lion previously. Because capital expenditure increased from R17,5 million to
R20,5 million, the tax man took only R2,8 million (nil in the March quarter)
leaving profits after tax more or less unchanged at R21,4 million. Welge-
dacht's tonnage sold rose from 465 956 tons to 504 795 tons but working profit
fell from R2,3 million to R1,65 million as a result of reduced export prices
which were only partially offset by the disappointing domestic price increase.
Although capital expenditure fell from R3,4 million to R1,8 million, there was
still no tax liability and profits after tax were thus R2,2 million--virtually
unchanged from the March quarter. [Text] [Johannesburg MINING NEWS in English
20 Jul 83 p 1]

NEW ALLOY 3CR12--RESEARCHERS in the Department of Metallurgy at the University
of the Witwatersrand, in collaboration with Afrox and Middelburg Steel and
Alloys, have invented a new type of welding rod which it is claimed will be of
"enormous" benefit to industry. The invention is connected with the recent
development of a new alloy called 3CR12 which is now used in the mining,
transport and paper and pulp industries. This alloy, which has recently been
licensed overseas, is a high-chromium, corrosion-resistant steel. Until the
invention by Wits, however, there were problems in welding since a suitable
filler metal was unavailable. The research team worked for 18 months to per-
fect a special welding rod which has solved these problems. Professor Paul
Robinson of the Wits Department of Metallurgy and his post-graduate student
assistant, Mr Serge Pagani, said the invention would make the alloy far
cheaper to use. The material that was previously used for welding cost R12 a
kilo but the new welding rods cost R4 a kilo. [Text] [Johannesburg MINING
NEWS in English 20 Jul 83 p 16]

EPOXY TAR IMPORTED--FOSROC has decided to introduce a number of new products

locally following the takover of HIM Chemie, the leading Dutch coatings com-
pany, by Fosroc International. The first of these to be made available in

74



asphyxiation due to the export tax. The sugar industry is still alive, and
thus must be in good health. When it dies and then only will anyone believe
in the authenticity of its cries for help.

Thus one should see no gleam of hope in Deerpalsingh's speech. Visibly, it
was drafted at the Ministry of Agriculture. The sugar industry should be
pleased, for it might well have been drafted at the general headquarters of
the MSM [Mauritius Socialist Movement].

The diagnosis set forth by Deerpalsingh is not a bad one, and is similar in
its main aspects to numerous others set forth earlier along the same lines.
But we still have our doubts that the present politicians are sincerely
desirous of guaranteeing the progress in development of the sugar industries.
In a few years we will be the impotent witnesses to the rush for the spoils
of sugar-producing countries which are more competitive than Mauritius. They
will compete for the hundreds of thousands of tons of sugar which we will no
longer be able to supply to the EEC. Just a bit more patience, and in a few
years the island of Mauritius can offer for auction 500,000 tons of sugar,
sharing in a privileged quota, etc.

But while waiting for the politicians to finish killing off an industry 2
centuries old, Deerpalsingh is not far short of his supreme goal: ensuring
that "agriculture regains its place as the Achilles' heel (sic) of the
national economy" (LE SOCIALISTE, 1 February 1982).

5157
CSO: 3419/1076

20



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transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.

Headlines, editorial reports, and material enclosed in brackets
[] are supplied by JPRS. Processing indicators such as [Text]
or [Excerpt] in the first line of each item, or following the
last line of a brief, indicate how the original information was
processed. Where no processing indicator is given, -the infor-
mation was summarized or extracted.

Unfamiliar names rendered phonetically or transliterated are
enclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
original but have been supplied as appropriate in context.
Other unattributed parenthetical notes within the body of an
item originate with the source. Times within items are as
given by source.

The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.

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20402.

Correspondence pertaining to matters other than procurement
may be addressed to Joint Publications Research Service,
1000 North Glebe Road, Arlington, Virginia 22201.



UDF RALLY EXPECTED TO ATTRACT THOUSANDS

Johannesburg SOWETAN in English 2 Aug 83 pp 2, 4

[Article by Sam Mabe]

[Text]

A MASS rally expected
to attract thousands of
people from all over the
country is to be held in
Cape Town later this
month at the launching
of the United Democratic
Front (UDF).

At a Press conference
held in Johannesburg
‘yesterday, the UDF’s in-
terim Publicity Secre-
tary, Mr Zak Yacoob,
-announced that the
launching would take
place on August 20.

The decision to
launch the UDF nation-
ally was taken at a mect-
ing held at the weekend
by African and Indian
leaders from various
parts of South Africa.

The leaders included,
among others, veteran
worker and Cape Town
community leader Mr
Oscar Mphetha, who is
currently out on R1 bail
pending the outcome of
‘an appeal against a five-

year jail sentence passed
on him under the Ter-
Torism Act.

The formation of the
UDF, whose regional
branches in the Trans-
vaal, Natal and Western
Cape were launched
over the past few
months, was a direct re-
sult of the controversial
constitutional proposals
and the-Koornhof Bills
against which. the UDF
is rallying.

“It is a united front in
which all organisations

‘will keep their identity_

and independence but
co-operate in opposing
the President’s Council,
the new parliament and

*Koornhof plans,” said a

UDF press statement.
“The conscience and
the moral impulses of all
freedom-loving people
of South Affica have
been aroused. People
have been moved to re-

Let Real Leaders Emerge

THERE IS JUST no doubt that the
stirring of extra-parliamentary op-
position politics is gaining momen-
tum and unprecedented impetus in

the last few weeks.

SOUTH AFRICA

ject these pernicious
and evil laws which
consolidate the heresy
of apartheid.

“Whilst the UDF arti-
culates the viewpoint of
the broad cross-section
of people, we accept as
fundamental that the
main burden of exploit-
ation and discrimination
falls on the poor.

“Accordingly, the
main thrust of the orga-
nisation is directed to-
wards the participation
of working people in the
workplace, in communi-
ties and wherever they
may be.

“The grand design of
apartheid is to fragment
our people’s unity. And

} those who deliberately

refrain from helping us
to maximise this unity,
advance the cause of the
encmy. and delay the
cause of democracy,”
added the statement.

There are two political national
fronts, which should ideally have
been welded into one, but which to-
gether form the kind of massive po-

litical machine prevalent in South

44



NAMIBIA

BRIEFS

OVAMBO ADMINISTRATION MALPRACTICES--WINDHOEK--The Attorney-General of South
West Africa, Mr Don Brunette, has instructed police to investigate alleged
malpractices in the Owambo administration. The decision follows the release
of an interim report of the Thirion Commission of Inquiry into alleged mal-
administration in SWA. The Commission, chaired by Mr Justice P W Thirion of
Natal, has dealt to date with the second-tier ethnic authorities of the Owam—
bos, Hereros and Damaras. Interim findings have not been released for publi-
cation. In a statement published in Windhoek yesterday, Mr Brunette said he
had decided to instruct the police to take action where evidence led before
the Commission indicated the possibility of criminal liability. "It is my
duty to warn all interested parties--that is to say, public officials, poli-
ticians and the private sector--that the type of conduct exposed by the Com-
mission will not be tolerated," he said. "No-one is beyond the law. It is
the duty of all people charged with the control and expenditure of public
funds to ensure that they comply with the laws and stipulations regulating
their positions of trust." [Johannesburg THE CITIZEN in English 3 Jul 83 p 15]

csO: 3400/1741

28



cso:

B. before it could really sink
in, the Mexicans had tossed
their begging bowl into the in-
ternational arena, the gold price
rose,-South Africa, by cutting its
imports, had turned a payments
deficit into a surplus, money be-
gan to flow back onto the JSE,
interest rates fell and property
prices tock off once again.

And suddenly South Africans
prepared to meet their boom.

he jubilation was
premature.

“We have got to kill off infla-
tionary expectations and the
only way we can do that is to kill
inflation itself,” Dr de Kock

“We will just have to accept

high interest rates. And interest
rates which are only three per-
cent above the inflation rate
-still mean cheap money”.

H. is also determined to
block his ears to the Govern-
ment’s costly decentralisation
plans, homeland consolidation
and all the other causes plead-
ing for aid, despite the enorm-
ous financial demands for
drought relief.

“Drought relief will have to
be financed through taxes, long-
term loans and a cutback on al

-non-essential expenditure.

“But it will not be financed

through the Reserve Bank”.

3400/1738

37

South Africans, he says wryly,
tend to believe that charity
comes out of ‘someone else’s
pocket. This time around they
are going to learn that charity
begins in their own cheque book.

if it hadn’t been for the
drought and its effect on food
prices we may, through Dr de

‘ock’s medicine, have been able
to bring inflation down to single
digits by Christmas.

Now he is aiming for the first
quarter of next year. And then
and only then — “this time next
year perhaps” — will South
Africa begin to reap the benefits
‘of the world recovery. :

T.. recovery, he says, is
written in the stars, with the
upturn in the American and
British economies, an improve-"
ment in world prices for South
African minerals and eventual-
ly a higher fold price.

‘The only factors which could
destroy that forecast would be a
“calamitous fall in the gold
price and no rains next
summer”.

Nevertheless, he remains an
optimist. And a sadist, if unlike

e Marquis of unhappy mem-
ory, Dr de Kock is determined to
be cruel only’ to be kind.

And so, before South Africa
can begin to bask in the warmth
of that delayed economic recov-
ery, it could. get very cold
indeed.



MOZAMBIQUE

NETHERLANDS DREDGING EQUIPMENT FOR BEIRA PORT
Maputo NOTICIAS in Portuguese 20 Jul 83 p 8
[article by Rogerio Sitoe]

[Text] The possibility of improving dredging operations at the port of Beira

has now been assured, with the arrival in the Sofala Province capital, on 30 June,
of a modern dredge. Our country acquired the dredge from the Netherlands in con-
nection with the port projects of the SADCC [Southern African Development Coordi-
nation Conference ].

NOTICIAS learned from the director of EMODRAGA [Mozambican State Dredging Enter-

prise] in Beira that the dredge, named "Sofala," can operate to a depth of 15.5
meters. Its scoop can take up 4.5 cubic meters of sea and river impurities, 6
times the capacity of the dredge "Anjeje," which is currently being repaired.

The "Sofala" will be used primarily to dredge the silt from along the quays, the
Chiveve dock and the fishing quays, where major silting occurs regularly, often
forcing vessels to anchor at some distance from the port when the tide is low.

The “Sofala" is 35.6 meters long, 11.4 meters wide and 2.45 meters high. It has
cabins, a refrigerator and other items for the workers’ comfort, as well as
modern equipment making it possible to dredge about 10,500 cubic meters per week.

According to the EMODRAGA official in Sofala, when it is in full operation, the
dredge must be accompanied by two barges, on which to deposit the silt, sand,
rubble and other impurities dredged from the sea floor, and also a tugboat.

A team of Mozambican workers from EMODRAGA returned recently from the Netherlands,

where they were specually trained in the use of the modern dredging equipment
aboard the "Sofala," which should go into operation within the next few days.

In the opinion of the EMODRAGA director, although the "Sofala" cannot be used to
dredge the channel, "“biecause it will enable us to keep the port cleaner and hence
improve the anchorage for both fishing vessels and cargo ships, it is certainly

a valuable purchase, considering the strategic importance of the port of Beira,
not only for our country but for the SADCC."

6362
CSO: 3442/315

23



cso:

cial losses during the year.

For example, despite an increase in
turn-over from D9,991,593 to
D12,685,254, the Gambia Utilities Cor-
poration sustained another terrible operat-
ing loss of D6,341,054 last year. This was
an increase of 125.5 per cent over the
previous year’s loss of D2,811,193. The
cumulative losses to date amount to

124,182,843. Mr. Sisay has attributed |
these severe economic cracks to “an in-’

crease in production costs, interest charges
and head office costs.”

The same economic mess has continued
to eat up other state organisations, like the
Gambia Public Transport Corporation
(PTC), the Gambia Produce Marketing
Board (GPMB) and the Gambia National
Trading Corporation (GNTC). Last year's
PTC loss alone amounted to more than
D2m., an increase on the previous year’s
loss of D1¥am,

In the case of the GPMB, although its
turn-over had increased to D86.9m. in
1981/2, compared to D64m. for the pre-
vious year, the Board increased its operat-
ing loss to D20.6m. up to September last
year, compared to a loss of D4.3m. for the
previous year. Mrs. Sisay said that the
losses were owing to the fact that there
“was a large volume of produce on which
the differential between the producer price
(purchase cost) and world market price
(selling price) was substantial.” He said in
addition to these problems, there was “the
cost of servicing increased bank loans and
overdrafts and also the rise in operating
costs.” Financial considerations aside, the
evidence shows that these unprofitable
state controlled organisations are misman-
aged.

The minister’s budget revealed that even,
the once-profitable Gambia Ports Author-
ity was in severe financial difficulties. For
the first time since its inception, the Au-
thority recorded a net loss of over. D4m.
compared to a net profit of D142,982 for
1981. Mr. Sisay blamed this decline: in
earnings “as a result of a drop in both
cargo and ferry traffic. - 7

On trade, the Minister revealed a ba-
lance of trade deficit of D132.7m during
the 1982/83 financial year. This, he said,
indicated an improvement of D14.1m. in
the country’s balance of trade deficit when
compared with the 1981/82 deficit of
D146.8m. External trade, he revealed, also
dropped from D312.5m. the previous year
to D305m. this year. The Minister blamed
the decline in the country’s external trade
situation on “decreases in exports”.

On the domestic economy, Mr. Sisay
told Parliament that although 1981/82 reg-

3400/1726

istered some improvements in agricultural
production, 1982/83 was a better year in
that the country had a good and evenly
distributed rainfall which had had a con-
siderable impact on agricultural produc-
tion. Overall, he said, there was an upward
movement of Gross Domestic Product
(GDP) with D594.4m. estimated for 1982/
83. Groundnut production, said the Minis-
ter, was the highest for five years, with at
least 128,000 tonnes in 1982/83. But, said
Mr. Sisay, “unfortunately, the world mar-
ket price, over which we have no-control,
fell to very low-levels.” On rice produc-
tion, the Minister of Finance said that
milled rice dropped in 1982/83 when com-
pared with the 1981/82 figure of 25,610
tonnes. He attributed the fall in production
to unfavourable weather conditions. “Out-
breaks of pests such as grasshoppers, army
worms and stem borers only exacerbated
the situation,” reported the minister.

The country’s second cash crop, cotton,
also took a severe knocking with an aver-
age decline of 873 kilograms for the 1982/
83 season as against 1,000 kilograms per
hectare in the previous season. Nonethe-
less, said the minister, “efforts will be
intensified for the rapid expansion of cot-
ton production for the greater benefit of
our farmers and the economy as a whole.”

The Minister of Finance said that the
Livestock Marketing Board (LMB) made
an overall trading turnover of D2.6m.
during the 1982/83 financial year, repre-
senting an increase of 13 per cent over the
previous year’s figures. He mentioned the
Livestock Development project to be
started soon, adding that it will aim at
improving the Ndama Cattle production
for export as breeding stock and for the
local market for meat and drought works.

On the fishing industry, Mr. Sisay
announced that the EEC funded fisheries
project will soon be ready and construction
of feeder roads leading to fishing centres
along the coast will be completed in the
1983/84 fiscal year. “All government can
do is to provide the necessary infrastruc-
ture and incentives in order to encourage
increased production, and Gambian fisher-
men must use these,” he said. Mr. Sisay
mentioned the government’s renewed
negotiations with the African Develop-
ment Bank and the Government of Nor-
way to finance the industrial fisheries
project, This project when completed will
provide a processing and storage facility,
fishing pier and trawlers. “The positive
effect this project will have on the eco-
nomy both in terms of foreign exchange
earnings and creation of job opportunities
will be quite substantial,” Mr. Sisay noted.



PALABORA RECORDS BRIGHT FIRST SIX MONTHS

Johannesburg THE CITIZEN in English 4 Aug 83 p 25

[Article by Daan de Kock]

[Text]

cso:

HIGHER copper sales
, and firmer prices seem to
“be the two main factors
that contributed to Pala-
bora Mining’s better re-
sults for the six months
ended June 1983.

The company showed a
tumover of R153,8-mil-
lion compared with
R128,5-million the corre-
sponding Period the pre-
vious year. This is an in-
crease of about 20 per-
cent.

" After deductions have
been made for costs the '

net . operating profit
amounted to R42378
(R32 984). The adjust-
ment for Lifo. was sub-

“stantially higher at R2-

million (R675 000) but in-
terest charges were more
or less maintained at the
same level. (R4,1-miltion
against R4,3-million).

Deductions for taxation

3400/1741

and lease consideration*
was _—-R18,4-million .
(R13,1-million) and the
tax deduction on the Lifo
portion R968 000
(R312 000).

Net profit after taxa-
tion amounted to R18,9-
million (R15,2-million)
which is equivalent to
earnings of 67c (54c) a
share.

Average copper price
realised in the six months
amounted to RI 805
(Ri 604) a ton. A big

portion of the higher av-
‘erage price could be attri-

per
showed a healthy increase
and amounted to 63 968
(49 966) tons, while sales
were also higher at 65 784
(60 037) tons.

The ore milled during

59

SOUTH AFRICA

the period amounted to
14-246 534 (14 829 548)

“tons with an average

grade of 0,52% (0,49%)..

Sales of other products,
with the figures of the
corresponding period the
previous year in brackets
were:

Magnetite 30 835
(51106) tons; sulphuric
acids 54 332 (46 916) tons;
vermiculite 59 761
(64.023) tons; uranium
concentrates 161 296
(157 572) kg; and_pre-
cious metals contents of

half of the year. If copper
prices and the exchange
Yate remain at their pres-
ent levels, it is unlikely
that the results for the
second half of the year
will be as good as in the
first half.



South Africa is HIM Chemie's Epoxytar. Fosroc has investigated locally manu-
factured tars and found that to ensure consistency of the product, it will be
necessary to import tars from Europe. Epoxytar will however be available at a
competitive price. HIM Epoxytar is a high build material at a competitive
price. HIM Epoxytar is a high build material designed for the coating of
steel and concrete. The product has a list of successful applications in the
Middle East, Europe and the UK. [Text] [Johannesburg MINING NEWS in English
20 Jul 83 p 13]

PHALABORWA ROCK TESTS--TWO short porcessing test runs involving some 15 000
tons of Phalaborwa rock have shown that good results could be achieved util-
ising the Rhone Poulenc single tank dedydrate process. According to a recent-
ly released review of their experience of processing Phalaborwa phosphate,
Rhone Poulenc says the tests, which examined the production of phosphoric acid
from Palaborwa phosphate, took place at Rhone Poulenc's pilot plant and its
own commercial plants in France. Babcock Woodall-Duckham, part of the Babcock
International group has built eight plants using this process, including the
Triomf plant at Modderfontein which has been operating on Phalaborwa rock for
18 years and last year produced its millionth ton of acid. [Text] [Johannes-
burg MINING NEWS in English 20 Jul 83 p 3]

GOLD PROFITS--THE four gold producers in the Rand Mines group--Harmony, Bly-
voor, Durban Deep, and ERPM--chalked up higher tonnages and lower costs during
the June quarter, thus more than offsetting the effects of 41 dollars an ounce
drop in the average gold price received. As a result, the mines increased
their total after-tax profit by 8,4 percent from R64,4 million to R69,8 mil-
lion. In spite of a small increase in costs at Durban Deep, the average costs
of the group fell by 3,4 percent from R54,09 to R52,24 a ton. Although grade
was down at all four mines, tonnage was five percent up at 3,9 million tons
thus enabling the group to increase gold production by 2,5 percent--from

15 563 kg to 18 002 kg. Profit before tax fell from R130,1 million to just
under R110 million, but because capital expenditure almost doubled from R17
million to R32 million, the tax man took a far smaller bite (R39,9 million
against R65,7 million in the March quarter). The average dollar gold price
received during the quarter was 8,7 percent down at 430 dollars an ounce,
while the rand receipts were 8,3 percent lower at R15 021 a kg. None of the
mines engaged in gold hedging transactions during the quarter. The only mine
which did not have a bright quarter was Durban Deep. [Text] [Johannesburg
MINING NEWS in English 20 Jul 83 p 1]

NEW SAFETY FUSE PLANT--AECL's new R27,3-million safety fuse plant at Mankwe
factory in Bophuthatswana came on line at the beginning of July. The new
plant has an annual production capacity of 144-million metres of safety fuse
and will enable the company to supply the needs of the mining industry for the
next 10 years. Most of the safety fuse is to be used for the manufacture of
capped fuse, produced at the factory since it was opened in August last year,
though to date the factory has relied on safety fuse from Modderfontein. The
capped fuse plant has a capacity of 200-million units a year, based on a three
shift operation. The manufacturing technology is entirely new and was devel-
oped by AECI's own research and development departments. It is known as the
"wet spun" process, and the fuse is manufactured using black powder in paste

75



cso:

Africa only a number of decades
ago.

The two organisations have
amassed to themselves scores of
community and other bodies, across
a very wide-spread base, if their fig-
ures are to be believed. And there is
no reason to disbelieve them, be-
cause the kind of meetings and con-
ferences these people are able to
marshall these days is impressive to
say the least.

The two hational organisations
are split by what seems to be an irre-
concilable ideological rift. This is
not a new thing nor should it be re-
garded as something necessarily di-
sastrous. It is bothersome, there is
just no doubt about that, as it tends
to slow down progress.

Our view is if the people of South
Africa who claim they are fighting
fora non-racial or anti-racist future
are honest and committed enough,
they should be able to spring the
kind of mind to bring together the
perplexing elements of race and
class as affecting our peculiar posi-
tion.

The United Democratic Front
(UDF), the one of these nationally
organised bodies launched a very
successful youth group called the So-
weto Youth Congress at the week-
end. Most reports say the launch
was an unqualified success. There

3400/1737

45

was plain sailing in the organisation
of the meeting, and the kind of pro-
fessionalism that could have been
the envy of the most respected politi-
cal guru. “ ‘

The UDF is in the meantime mak-
ing ground in other directions. It
has chosen the Constitutional Bill
and the three Koornhof Bills — now
Acts — as targets for mobilising
widespread support. There is no
doubt this will be successful unless
the organisation meets casualties en-
route.

The UDF seems to have other
strengths including wide-base mem-
bership from trade unions, com-

~ munity, women’s, religious, youth,

sports, political, professional and
business organisations and interest
groups.

While there may be some who are
unhappy about the UDF’s ideologi-
cal stance, we believe this is not the
time for ideological ni
necessary, we realise this, that the
two factions reach a reconciliation
or at the worst a compromise on
race and class as dictates for the
overall struggle. It is not an impossi-
ble situation and can do a number

' of things in one fell swoop. Those

people who are on their ideological
planks for self interest or self ag-
grandizement will be flushed out
and the true leaders will emerge.



cso:

3400/1737

When the preliminary

“figures were announced

around end-June the
shares stood around 485c,
to return about 7,2 per-
cent on the repeated 35c a
share paid, covered 2,3
(2,9) times by earnings.

There have since been
buyers around at 400c,
while last night’s buyer's
Price was 420c where the
Prospective yield — on
the somewhat dangerous
assumption, perhaps, that
35c will again be paid —is
8,3 percent.

47



MAURITIUS

UDM HITS ROLE OF COMMUNALISM IN ELECTIONS
Port Louis L'EXPRESS in French 15 Jul 83 p 7

/Text/ “It is becoming increasingly clear that the upcoming
21 August elections are assuming a communalistic aspect for
both sides (MMM /Mauritian Militant Movement/ and MSM
/Mauritius Socialist Movement/), and unless we too exploit

communalism, it will be impossible for UDM /Mauritian
Democratic Union/ to make an impact in these elections."

In these words Mr Guy Ollivry, head of the UDM, explained to a press conference
yesterday why his party will not be participating in the 21 August electoral
contest. According to Mr Ollivry, the UDM's role in the campaign will be to
"help Mauritians insist that the political parties involved in the contest
explain their immediate and long-term policy positions."

The UDM, with Ollivry as its spokesman, us urging that the prospective finance
ministers for each of the two principal parties engaged in the 21 August
contest--namely, Mr Paul Berenger and Mr Vishnu Lutchmeenaraidoo—-engage in a
one-on-one televised debate to "tell the people what kind of budget they should
expect after the elections."

"We will refuse to vote unless we know what awaits us 2 or 3 weeks after the
elections," said Mr Ollivry, who added that "these elections cannot be won by
appealing to the worst in people." The UDM, moreover, is not presently
instructing its members how to vote--it will closely follow the evolution of the
campaign in order to find out which party "will tell the truth"--but it is
urging those who do not intend to vote to betake themselves to the voting
centers and cast a blank ballot so "no one votes in their place."

The UDM intended to run 15 candidates in 5 districts in the upcoming elections,
but after studying the way the campaign has unfolded, UDM thinks that the elections
have assumed more the character of a "settling of accounts between two wings of
the MMM" rather than an opportunity for the people to take a real choice.

Mr Ollivry noted that the UDM has always rejected communalism and consequently
refuses to play the communal game.

The UDM leader believes most Mauritians are not communalistic, but are being
manipulated by certain political leaders who are out to win the elections. The

10