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firms have withdrawn in some form, according to the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Of the 132 US companies that had withdrawn by mid-1987, only 21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)
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