Sanctioning Apartheid - KORA

The second issue relates to the high proportion of companies
which have maintained non-equity and technological ties and
agreements with the new companies h t have been formed.
While these arrangements have certainly put some pressure on
the balance of payments, h u e of far higher royalty payments
being piud to the parent cornpanis, it has also meant that the
crucial techarologi0]1, servicing and market links have not been
severed. In additionI the trade legislation dm not appear to
prevent parent companies with subsidbies located in countries
which do not have an export ban to South Africa from using
those subsidiaries to supply former South African subsidiaries.
FinallyI reports suggests that whereas US legislation prevents US
computer and related companies from supplying equipment to
~tutions of the South African state, where disinvestment has
ommed the new companies are now bidding for government
contracts. To the extent h t equipment and parts origkting
from the parent company are still supplied to South Africa, the
potential for a subsbntid expansion in trade to assist the efficient
operation of the apartheid state is enhand
Specrfic actions to address these and other anomalies would
include the following
1. Mending current US legislation to include a ban on
the reinv&ment of profits of U5 companies within
South Ahim and a ban on subsidiaries in third coun-
tries from supplying restricted company products to
South Africa;
2 Putting pressure on other munhies to tighten their
investment bans. In this regard spedal attention
should be given to the case of Taiwan, as some 120
Taiwanese factories have been set up in South M a ' s
homelands in recent years with total investment of $100
million, Additionally a number of mc countries, which
have only a volmtwy ban on new investments into
South Africa, should be persuaded to adopt US. a@
norms.
Tr& Sanctions--South African Exports
Over the last four years South Africa's exports have
averaged some 27% of ps domestic product. Recent trends in