[misc.headlines.unitex] <2/3> ACTIVITIES OF TRANSNATIONAL CORPORATIONS IN SOUTH AFRICA

unitex@rubbs.fidonet.org (unitex) (09/12/89)

     the continued collaboration of certain States and transnational
     corporations with the racist regime of South Africa in the
     political, economic, military and other fields as an
     encouragement to the intensification of its odious policy of
     apartheid.  It also urged the States that had not yet done so to
     ratify or acceed to the Convention, particularly those States
     which had jurisdiction over transnational corporations operating
     in South Africa.

     He said the Commission also requested an examination by the group
     of the extent and the nature of the responsibility of
     transnational corporations for the continued existence of the
     system of apartheid in South Africa, including legal action that
     could be taken under the Convention against transnational
     corporations whose operations in South Africa came under the
     crime of apartheid.

     MANFRED VON ROON, representing the International Chamber of
     Commerce (ICC), said the ICC and the international business
     community which it represented was firmly opposed to apartheid
     and had expressed that opposition in a number of public
     statements over a period of many years.

     He said the ICC was entirely in agreement with the United Nations
     over the need to abolish apartheid -- but, out of very sincere
     motives, it differed strongly over the means of doing so.
     Disinvestment and sanctions were not effective instruments for
     breaking down apartheid;  their effects were
     counter-productive;  and they retarded the process of economic
     empowerment of black South Africans which was an important
     element in their political liberation.

     He said that a number of opinion polls had suggested that an
     overwhelming majority of the blacks in South Africa were opposed
     to foreign economic measures which harmed their jobs and
     livelihoods.  They favoured the continued presence of foreign
     companies in South Africa.  The ICC hoped that members of the
     panel would give due consideration to these and other findings.

     The ICC believed that it was a particularly inopportune time for
     the present hearings to be contemplating the intensification of
     disinvestment and sanctions.  The whole of southern Africa --
     including South Africa -- was currently in a state of political
     flux with a number of positive elements.  It was certainly not
     the time to seek to weaken the economy in South Africa further
     and thus played into the hands of that country's right-wing
     extremists


     He said that many very poor countries in southern Africa were
     heavily dependent on South Africa for imports, export markets,
     supply routes, and foreign exchange earned by their workers in
     South Africa.  Mozambique relied on electrical power generated
     in South Africa, Zambia received aviation fuel from the same
     source, and Zimbabwe required South African locomotives and
     wagons to supplement its own railway rolling stock.  Further
     measures to damage the economy of South Africa would thus
     inevitably have a harmful ripple effect on the livelihoods of
     millions of already impoverished people outside South Africa. On
     the other hand, the ICC welcomed recent events that showed that
     there were mutual interests between many southern African States
     and South Africa in deeper regional economic co-operation and
     development.

     Asked why the speaker was defending the status quo, rather than
     contributing to the international pressure against South Africa,
     he said the business community was warning the Government of the
     consequences of the continuance of apartheid.

     SALVATORE MARZULLO, of the ICC, said the business community was
     also developing coalitions of blacks and whites pressuring the
     Government for change.

     Asked if the ICC was prepared to take action to set up, within a
     month, a monitoring system on the activities of transnational
     corporations operating in South Africa and to report to the
     United Nations, he said he would be prepared to set up a
     committee to explore this issue.

     Mr. VON ROON was asked to comment on the suggestion that the
     South African business community exert collective pressure on
     the Government directly by means of one-day "job actions", for
     example.

     He replied that such action could shift the electorate towards
     stronger support of right-wing groups.

     He said the ICC was not happy with progress to date, but there
     was hope that such progress would be accelerated soon.

     Asked about how the ICC viewed co-operation between South Africa
     and certain Western countries in the nuclear field, and about
     specific recommendations that could be made to put an end to the

 * Origin: UNITEX --> Toward a United Species (1:107/501)

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