text: Standards ofAccounting andReporting onitsseventh session andprovisional agenda anddocumentation fortheeighthsession oftheGroup" and"Intergovernmental Working GroupofExperts onInternational Standards ofAccounting andReporting" (seechap.I,sect.C,decisions 1989/1 and1989/2). -34- rt :ing Ina ~to nal ndaChapter VI TRANSNATIONAL CORPORATIONS INSOUTHAFRICA ANDNAMIBIA 81.TheCommission considered item7ofitsagendaatits8th,9th,12thand 13thmeetings, on11,13and14April1989.Ithadbeforeitthefollowing docwnents: (a)ReportoftheSecretary-General onthefollow-up totherecommendations ofthePanelofEminent Persons established toconduct thepublichearings onthe activities oftransnational corporations inSouthAfrica andNamibia (E/1989/11); (b)ReportoftheSecretary-General ontheactivities oftransnational corporations inSouthAfrica andNamibia andcollaboration ofsuchcorporations withtheracistminority regimeinthatarea(E/C.10/1989/8 andCorr.1); (c)ReportoftheSecretary-General ontheresponsibilities ofhomecountries withrespect tothetransnational corporations operating inSouthAfrica and Namibia inviolation oftherelevant resolutions anddecisions oftheUnited Nations (E/C.IO/1989/9). 82.Inintroducing theitem,theExecutive Director oftheCentre notedthatthe paceofdisinvestment oftransnational corporations inSouthAfrica hadslowed, and atleastinthecaseoftwomajorhomecountries, mostofthefirmsdisinvesting maintained licensing ornon-equity agreements withSouthAfrican firms. A cessation ofinternational tradewithSouthAfrica andthecutting offofforeign finance intheformofnewloansandtradecredits, andthenon-rolling overof existing loanscouldhaveapotentially larger impact ontheeconomy ofSouth Africa. Currently, SouthAfrica owedforeign lenders about$US22billion in long-term debt,repaYment ofwhichhadbecomethecountry's principal economic constraint. Atthesametime,SouthAfrica depended largely oninternational trade, andinthatrespect several ofSouthAfrica's majortrading partners had recently increased theirtradewithSouthAfrica. 83.Concerning theresponsibilities ofhomecountries offirmsoperating inSouth Africa andNamibia, hesaidraising awareness ofexisting gapsmighthelpin devising co-ordinated actions tostrengthen theeffectofsanctions. lieexpressed concern thatthecurrent content ofthelistofcompanies operating inSouthAfrica andNamibia mightnotgiveasufficiently accurate andcomplete picture ofthe increasingly sophisticated investment strategies adopted byfirmsinthose countries. Inthatcontext, theCommission mightconsider thefeasibility of havingfuturereports include dataonvarious formsofbusiness linksretained by transnational corporations thatnolonger hadequityinterests inthecountries concerned, themethod ofdisposal ofequityinterests andtheindustrial sectorin whichthecompany operated. Regarding thepublichearings, theCentre was attempting toobtain thewidestpossible representation within thelimited time available. Apublicity programme forthepublichearings formulated in co-operation withtheDepartment ofPublicInformation hadbegunwiththeissuance ofthefirstofeightmonthly newsletters. 84.Manydelegations stressed thattheinternational community hadajoint responsibility toimplement theresolutions anddecisions adopted bytheGeneral Assembly andtheSecurity Council withaviewtohelping dismantle thesystemof -35- t I­ I, Lr I' I'[: [ I! III f r I r- I!!\, ! I 1 liI, ii !apartheid inSouthAfrica andending theillegal occupation ofNamibia. Theyalso notedtheimportance oftheimplementation ofSecurity Council resolution 435(1978). Theystressed theneedforNamibia tohavelargeamounts ofinvestment tobuilditseconomy. Theyreiterated theviewthatmandatory comprehensive economic sanctions werethemosteffective formofpressure against SouthAfrica. Theresponsibilities ofhomecountries wentbeyond passing legislation monitoring theimplementation ofmeasures assuring thattheyhadthedesired effect. Actions
analysis: The text appears to be discussing the economic and political implications of transnational corporations operating in South Africa and Namibia, particularly in the context of international sanctions and economic development. The focus is on the economic constraints faced by South Africa, the role of home countries in regulating the activities of their corporations, and the need for international cooperation to address the situation.