'■■■' .> 7 . Po. »land Observer Business as usual with White South Africa by TtaMtfcy H. Smith Director e( U m lato rfaR k Center en C a rp e n to Respeasibility It seems clear that the prevision of foreign capital to South African govern ment agencies and private concerns re­ sult in support for white minority rule and the preservation of apartheid in South Africa. I t is a tremendous moral boost for white South Africans to feel that the “white anti-communist, Christian West”, as they categorize it, may condemn apartheid in the halls of the United Nations but is willing to do “business as usual” with them in critical economic areas. They know they can still count on U.S., European and Canadian banks to provide capital and that public condem nation of apartheid will not inconvenience essential business relationships. Why then should the South African Govern ment take seriously the protest and opposition of America for example? What incentive is there for the white minority to want to share political and economic power with the Black majority when they know that apartheid is profitable for them and likely to remain so? South Africa can and does point with pride to its solid economic relationships with the United States, Britain and France, etc. as a sign that it is respected and indispensable to the West. We are all aware that the image of stability and economic milk and honey wh^ch was once the picture of South Africa has changed drastically. South Africa is in very difficult economic cir­ cumstances and has an acute balance of payments crisis. The price of gold has fallen considerably. Inflation is escalat ing. During its economic trials South Africa has increasingly turned to inter national banks for capital for its budget and hugh development projects. Such loans give relief tc South Africa in the midst of its balance of payments crisis. Moreover, the fact that major U.S. Banks are ready to make sizeable loans is an indicator of investor confidence which bolsters South Africa's credit rating. To make such loans now is to flash a signal that U.S. banks have faith in South Africa’s economic and social future. If the loans were not forthcoming South Africa would be forced to look elsewhere and the rate it would pay would rise. Moreover, the government backed by these loans does not have to apply unpopular econo­ mic controls at home, thus further con­ solidating its support politically. A keypoint made by South African economic propaganda is that South Africa offers an excellent investment climate based upon the abundant supply of cheap labor (Black). I^et us look at some other implications of an open door loan policy to South Africa to bolster the conclusion that loans to the government strengthens apartheid and majority rule. The machinery of the apartheid system is very expensive to maintain. The intricate complex of racial laws or the passbook system is quite costly. For instance, the recent example of authori­ ties removing 40,000 Africans to be resettled in a “Black area” is but one example of the human and financial costs of apartheid. To remove those people, or to arrest and try hundred of thousands of pasbook offenders the government needs funds. I f foreign funding were not avail­ able to quasi governmental agencies, the government itself would have to finance them thus limiting the cash available for maintaining apartheid. Let us not deceive ourselves that a loan to ESCOM can be simply classified as a loan for electric power. I t is a loan directly to an agency of the apartheid government that helps that government balance its overall budget. Foreign loans insure that the overall budget is in a strong position and the economy is viable. These factors relate directly to the strength of the military and police which are determined to preserve white power. I do not feel that it is an overstatement to say that U.S. bank loans subsidize South Africa's military capability and thus are a direct resourc­ ing of machinery for oppression of the Black majority. Am erica’s Vested Interest Hundreds of millions of dollars of U.S. loans and $1.5 billion in investments create a major American vested interest in South Africa. In a sense the United States becomes mortgaged to South Africa. As in any major mortgage rela­ tionships, the Bank has considerable interest in the financial health and well­ being of the person paying the mortgage. You become a de facto partner in the project. Certainly U.S. banking circles would not be happy if racial strife grew even more extensive in South Africa and economic chaos resulted. They have a vested interest in economic and social stability. Whether such stability is gained at the price of oppression does not seem important. The basic relationship of economic friendship thus develops between the banks and South Africa’s white power structure, not the Black majority. As a result, we see so often in statements by banks sympathetic sentences which try to interpret white South Africa in a positive light. We are told for instance that “things are becoming better" for the Black population because of the loans and investments of U.S. Corporations. A look at the facts plus an alert ear to the political spectrum of Black leadership negates the claim that life is improving The Focus on Change P art IK by J. M. Gatos Two decades ago, Norman Cousins wrote the book Who Speaks for Man. Today, we too need to reflect on the rhetoric. Instead of attacking or remedying inequities of discrimination, public dis­ traction is now involved with the attemp­ ted discounting of the credibility of the accuser. One must recognize that regardless to the standing of the accuser, the fact is an inequitable and indefensible injustice ex­ ists for which change is long overdue. An attempt was also made to discredit Crispus Attucks* motive as that of a “ruffian" and some of that still persists but the fact of the inequitable injustice at the heart of the 1776 confrontation was too much for some to come to grips with. In 1976, can an atmosphere of so-called "ethnic purity” be permitted to persist in the sanctuary to the exclusion of the creativity of God? In 1776, it was easier for some to talk about “the ruffian." In 1976, is it easier to talk about the personality than the discriminatory membership policy. Is there an acceptance of prejudice having priority over doctrine? The question of whether there is validity for a church to have open, inclusive membership is much too impor­ tant to be consigned to oblivion. Is the static, institutional “segregation as usual’’ still relevant for 1976? America would never have been born had not some one challenged the injustice of colonial America. The Reverend Clen- non King's stand ranks with that of Crispus Attucks. T H E T IM E IS A L ­ W AYS R IG H T TO S TA N D UP A N D W ITN ES S FOR RIGHT!!! I shall never forget the summer of 1946 when the M r. Clennon King was on the summer faculty of West Virginia State College. I t was then that he brought with great fervor to the attention of the college community a lynching at Am eri­ cus, Georgia. Analysis He implored the West Virginia State College campus to take mass action expressing indignation about inhumanity in Georgia. He had the kind of charisma tic appeal which inspired listeners to literally walk the water or move moun tains for greater human dignity. He rallied support for a mammoth protest with petitions including the signature of the Governor of West Virginia to the Governor of Georgia. Three decades ago, M r. King had all the essentials for president of the U.S.A.: for Blacks. Exactly the opposite is true, and the extensive uprisings •'"er elo­ quent testimony to that. Thus the 'mortgaging bank evelops a vested interest which lea»1* to influenc­ ing American public opinion favorably toward white South Africa. Inevitably this vested interest affects U.S. foreign policy. The architects of U.S. policy toward South Africa look at a series of factors - high among them is the economic relationship between these two countries. With such a large economic vested interest our government would be loathe to seriously antagonize a commer cial ally or to jeopardize U.S. business interests in the region. Our loans and investments became a magnet drawing U.S. policy toward a “don't rock the boat took severely" philosophy. Certainly, U.S. policy makers would find it unthink able to openly support the movements for liberation and majority rule in South Africa. As one result, the struggle in South Africa becomes quickly character­ ized as a contest between a white minority which protects U.S. economic and diplomatic interests and a Black majority fighting for liberation which the U.S. deems “unfriendly” or “Communist supported." Thus business supported political positions wind up on the side of white minority-ruled South Africa. Washington, D.C. (PNS) - The number of jobs created by environmental regula lions has vastly offset job losses, accord ing to figures released by Environmental Protection Agency Administrator Russell Train. The EPA figures show that be tween January 1971 and June 1976 pollution control laws were at least partially responsible for the closing of 82 industrial plants resulting in the loss of 17,890 jobs. On the other hand, said Train, the building of municipal sewage treatment plants, mandated by the EPA, has provided more than 100,000 new jobs. In addition, a study by Arthur D. Little Inc. contends that air and water pollution laws passed during the 1970s will create a L ittle Nuclear opposition in Canada Quebec. Canada (PNS) -• A recent national opinion poll on nuclear power in Canada reveals an almost total lack of opposition, in sharp contrast to the heated nuclear power debates in the U.S. and Europe. The survey, conducted by the Institute for Behavioral Research at York University, found that 44 per cent of Canadians don't know that nuclear power can be used to produce electricity. Only about one in three Canadians realize Joe Joseph Naw York Lifo Ins. Co ¿omowuuu, today 281-3680 3933 N. E. Urion H o w to »=«»-»<3 •M U r o t o r s ' ..... ■OOBK.'.-*. Attributions & Accreditation The above is a portion of the testimony delivered by Mr. Smith on September 23rd, 1976 before the Senate Subcommit­ tee on African Affairs of the Committee on Foreign Relations. Mr. Smith has traveled in Africa doing research on the role of U.S. investments there. A copy of his full testimony may be obtained by sending a self-addressed stamped envel­ ope to the American Committee on Africa, 305 East 46th Street, New York, NY 10017. The American Committee on Africa formed in 1953 to support the struggle against apartheid inside of South Africa has over the past twenty three years given active support to independence and liberation movements throughout Africa. DIRECTORY TIP: Some numbers are tough to find in the tele­ phone book. A ll you have to know is where to look. Saint James Hospital probably is St. James. The Brown Store would be listed under "B,” not "T.” For federal agencies, look under United States Government. There are lots of other tips in front o»' your telephone directory. Please check before you call Directory Assistance. Pacific Northwest Beil brilliance, compassion, vision, leadership. How ironic that in 1976 he must challenge the backward bigotry of the Plains Baptist Church, a church which is the church home of a future president. Three decades of brilliantly articulating a dy­ namic dignity to a 1976 response of closed ears and closed minds. History is a matter of time and place. With the right ingredients anybody can be president. Thirty years ago M r. King was challenging injustice but on Sunday, October 31st, 1976 and thereafter bis voice for inclusion was ignored. Yet it was too much to expect the nation to swallow institutional racism which ex­ cluded young and old Afro-Americans from membership whether innocent babies or otherwise. ■ • • Ï-7 - J ... Jss i I ** The ChallengerThe Reverend King, like the prophets of old, crying in the wilder­ ness pointing new directions. I t was inevitable that Plains Baptist Church would have to be “born again" and eliminate religious apartheid. SnKll-time smallness was out of step for national leadership. X X I t was inevitable that Plains Baptist Church must come out of the dark ages of irrationality into a fuller understanding of brotherhood if it were to fulfill its destiny in a multiethnic America. (NEXT WEEK: Final Article of three- X 1 part series) « ,1 J least 75,000 new jobs in pollution control equipment manufacturing. Train said that some 175,000 workers will be en­ gaged in construction activity financed by the EPA by June 1977. Page 3 —------------------ --_------ _______________ — Environmental roundup far U g job gains Thursday. November 18th, 1976 that nuclear power plants exist in Cana­ da. though four major nuclear facilities are in operation and at least 16 new reactors are planned for the near future. Only about 12 per cent of the total population expressed any reservations about nuclear safety. French wines spike with Asbestos Paris, France (PNS) - Americans who can afford to drink imported French wine may be getting more than they bargan for. A recent study published in a French consumer magazine reveals that many rf the less expensive red wines contain up to 40 million asbestos fibers per liter, tn result of asbestos filtering. Dr. Lorenm Tomatis of the International Agency f