unitex@rubbs.fidonet.org (unitex) (09/12/89)
PUBLIC HEARINGS ON ACTIVITIES OF TRANSNATIONAL CORPORATIONS
IN SOUTH AFRICA AND NAMIBIA BEGIN IN GENEVA
GENEVA, 4 September -- Three days of public hearings on the role
of transnational corporations in South Africa and Namibia began
this morning in Geneva.
Participating in the hearings are experts on a range of vital
issues affecting the region. They are testifying before a panel
of eminent persons appointed in their personal capacities by
Secretary-General Javier P|rez de Cu|llar. (The panelists are
listed at the end of this Press Release).
At the conclusion of the hearings, the panelists will assess the
testimony presented and review the implementation of past
recommendations on how to enlist transnational corporations in
efforts to end the system of apartheid. It will consider
current trends, the implications of changes so far, and study
proposals for further action. The panel's recommendations will
then be submitted to the Secretary-General.
Speaking this morning on sanctions and disinvestment trends were
Joseph N. Garba (Nigeria), Chairman of the United Nations
Special Committee against Apartheid; Merle Lipton, of the
Investor Responsibility Research Centre; Jenifer Kibbe, of the
South African Review Service; Eugene Nyati, of the Centre for
African Studies, Johannesburg; John Vanderverken, General
Secretary of the International Confederation of Free Trade Unions
(ICFTU); and Marion Grafin Donhoff, Editor and Publisher of Die
Zeit, Federal Republic of Germany.
Statements
JOSEPH N. GARBA (Nigeria), Chairman of United Nations Special
Committee against Apartheid, said the Committee had greatly
benefited from the work of the Commission and the Centre on
Transnational Corporations on the activities of transnational
corporations in South Africa.
He said that people's sanctions and governmental measures, as
well as the voluntary policies of some transnational
corporations had contributed to an unfavourable business climate
in South Africa. As South Africa's economic performance became
sluggish, and business uncertainty was heightened because of
political instability and structural constraints -- exacerbated
by sanctions, several other transnational corporations had
decided to withdraw. And although much of that withdrawal was
cosmetic or partial, since many of the transnational
corporations continued to maintain non-equity links, the
disinvestment campaign had succeeded in stemming the flow of new
capital to South Africa. That had proven very costly for the
guardians of apartheid. Deprived of foreign capital needed to
finance its growth, South Africa now depended on short-term
loans and on a trade surplus; that exacted a high cost on its
growth possibilities, especially in view of a number of sanctions
that South African exports faced in several countries.
Yet from another point of view, the disinvestment campaign had
failed, particularly with regard to the supply of technology, he
said. In addition to transnational corporations that still had
equity in South Africa, there were also companies that
maintained non-equity ties which were instrumental in the
transfer of technology. In some cases, non-equity ties had
replaced equity links after disinvestment. In other cases,
companies had originally entered the South African market
through licensing, know-how purchase or the flow of human
resources. Therefore, not only large transnational corporations,
but also small, specialized, privately owned technology-bearing
transnational corporations were involved in the supply of
technology, and they were usually immune from public methods of
pressure for disengagement.
In the face of the strident efforts of Pretoria to protect its
technology life-line, he said, the international community
should take effective steps to frustrate those efforts,
particularly in sensitive areas such as arms, oil, energy,
electronics and computer technology.
Transnationals had also played an important role in loans and
financing, he said. In June of next year, the major portion of
South Africa's debt was to come up for rescheduling. It was
doubtful that Pretoria would be able to pay the due amounts on
schedule because that would further slow down its economy. Thus,
negotiations with the transnational banks would assume critical
significance at that time. Banks based in the United Kingdom,
France and Switzerland, which appeared to have recently
increased their lending to South Africa, as well as other banks
with exposure, should be seriously cautioned about the
implications that their negotiations would have on the future of
the apartheid r|gime. He hoped the Panel would thoroughly
consider this matter and come up with appropriate
recommendations.
He said that as sanctions were beginning to have an effect, even
though they were neither co-ordinated nor strictly monitored,
and as the end of apartheid began to appear on the horizon, the
international community should take this opportunity to restate
the purpose of its sanctions strategy, and when it would be
prepared to lift them. The goal was not to destroy the South
African economy, but to raise the cost of apartheid. Pretoria
should be convinced that it will not be able to turn its economy
around without negotiating an end to apartheid.
Asked if the events of last week in South Africa had affected his
views, Mr. Garba replied that "we were told that because of the
eminent independence of Namibia, we should go easy on South
Africa". He said he was pleased that the mass democratic
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