waldron@newport.rutgers.edu (James Waldron) (09/21/89)
$ 7 billion from 1980-87. A major gold miner, its gold reserves have dropped from $ 7.1 billion in 1980 to $ 2.8 billion in 1987. But behind the facade, trade goes on. Japan has banned direct air links to South Africa, has never had an embassy in Pretoria nor permitted South Africa to have one in Tokyo and banned the import of South African uranium. But Japan has become South Africa's largest trading partner at $ 4.2 billion last year as US trade plummeted ( $2.6 billion in 1987, down 56 percent from 1980). The other form is divestment, which became four years ago a major issue of protest on US college campuses. Since the 1984 civil unrest that resulted in the deaths of at least 2,500 and the detentions of nearly 30,000 until a state of emergency was declared in June 1986, at least 201 US firms, 49 British, 12 Canadian, eight French, seven Australian and seven West German firms have withdrawn in some form, according to the Washington-based Investor Responsibility Research Center. But an estimated 1,200 large foreign firms still operate with no plans to depart. The impact of the protests is questionable. International banks have refused loans. At least $ 10 billion in net capital has fled the country since 1985. "Our limited ability to borrow abroad puts a strait-jacket on our ability to handle the cardinal issues of growth and inflation," says Gavin Relly, chairman of Anglo American. But despite the pullout, IBM products still are for sale in South Africa. Eastman Kodak's withdrawal was accompanied by an agreement prohibiting the use of its products in the country. But Kodak film still is for sale widely. Of the 132 US companies that had withdrawn by mid-1987, only 21 completely closed their doors -- and seven managed to keep their products and services available. BCI Holdings, a US firm, sold out its Playtex line in November 1986 to PTX Inc., a firm created specially to take over the unit. But Playtex bras and girdles still are on sale. A company executive has said, "It's business as usual." Marcus Ndlela, who works for the Urban Training Project (UTP), which teaches workers about trade unionism, dismisses not only whites but blacks, such as Mangosuthu Buthelezi, a Zulu leader and chief minister of the Kwa-Zulu tribal homeland, who protests that sanctions injure blacks. "If you take a closer look at blacks who are against sanctions you will find they are the Gatsha Buthelezis who operate within the system," he says. "When it suits them they criticize the South African government but in reality they are employees of the state and are salaried by the state. Millions of rands are wasted on people like the Bantustan leaders and councillors. These are the people who do not consult us. People who are not even popular among their own people. "All black trade unions except the Kwa-Zulu-based UWUSA support sanctions. Most of the companies which pulled out of South Africa were paying poverty wages. Most of them have moved to the Bantustans where trade unions are not allowed to exist. "As a result of sanctions, South African whites have realized that it is time for sharing the wealth of the country. How else can one explain the trips by company directors to the African National Congress offices in Lusaka. Whoever thought that P. W. Both could talk to Mandela?" But fashion designer Ntombi Mdunge still maintains that sanctions will cause more suffering for blacks. "We must engage in other measures because sanctions lead to more unemployment and that leads to the escalation of crime," she says. "When there is hunger and idleness in the community there is a higher crime rate. "I cannot support those who think that sanctions are a worthwhile sacrifice. American companies which pulled out were involved in self-help projects and offered bursaries to black students. "Of course, blacks suffer when big companies who sponsor their small businesses pull out," journalist and supporter-of-sanctions Thabiso Leshoai responds. "But blacks have always survived. They have always looked for alternatives." Business as usual for some Largest international firms still in South Africa show true colors # Employees African Colored White Courtaulds (British) 9,283 8,059 399 707 BTR (British 8,834 5,245 691 1,971 Unilever (British) 7,558 4,173 356 2,186 Royal Dutch Petroleum (Dutch) 7,002 3,717 934 2,902 Volkswagen (German) 6,800 3,190 1,470 2,080 BET (British 6,466 5,333 56 686 The BOC Group (British) 5,718 2,500 461 2,365 Siemens (German) 5,299 2,397 658 3,081 Au Printemps (French) 5,200 NA NA NA British Petroleum (British) 5,178 2,481 443 1,849 Northern Engineering Industries (British) 5,040 2,065 1,039 1,794 Source: Investor Responsibility Research Center, Inc. * Origin: UNITEX --> Toward a United Species (1:107/501) --- Patt Haring | United Nations | FAX: 212-787-1726 patth@sci.ccny.cuny.edu | Information | BBS: 201-795-0733 patth@ccnysci.BITNET | Transfer Exchange | (3/12/24/9600 Baud) -=- Every child smiles in the same language. -=-