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 * Origin: UNITEX --> Toward a United Species (1:107/501) --- Patt Haring | UNITEX : United Nations patth@sci.ccny.cuny.edu | Information patth@ccnysci.BITNET | Transfer Exchange -=- Every child smiles in the same language. -=-