text: Inanufactured goodsandchemicals persist. Violators ofthearmsembargo find willing transporters. Stronger co-operation onthepartofnational Statesinthe formofincreased vigilance, stronger legislation andstiffer penalties onthose shippers whichviolate sanctions isrequired. 119.SouthAfrica's airlinkstotherestoftheworldhavebeenreduced but f"rther curtailment ispossible. Bansonlanding rightsofSouthAfrican aircraft andtheintorruption ofdirectairlinksofforeign airlines withSouthAfrica would b~afinancial burden onPretoria but,moreimportant, wouldsendastron~ potlUcalsignaltoBUi?porters ofUllL~. -31------------_~ 120.Pro9re••isbeingmadewithregardtolessening thedependency ofsouthern AfricanState.ontransport linksbywayofSouthAfrica. Twothirdsofthe estimated'6billiontotalcostoftheProgramme ofActionofSADCCisfor strengthening thetransport andcommunications linksofmemberStates(se. ~/4U.ti2) • 2.LQlnsandgredits 121.Th.StalsAccord, reached in1987between SouthAfricaanditscreditors following the1985freeaeimposed bySouthAfricaonrepayment ofitsshort-term debt,expire. inJune1990.Withanestimated $9billion technically duefor repayment atthattime,1990/91 hadbeenregarded byobservers asaperiodof looming debtcrishforthecountry.HI 122.Already, however, thereisevidence ofactionbytheinto~national banking community tolessenthedebt-related financial pressures onSouthAfrica. Before thecloseof1988,someSwissbankshadagrftedtotlrolloverusomeofSouth Africa's short-term debt.Inearly1989,itwasreported thatSouthAfricB's foreign cr~'~itor bankshadtakenupanoptioninthefinancing arrangements agr.ed toin198"thatallowsthemtoescapefromnegotiations onthesedebtsandtocease beingalendertoSouthAfricaby1997.According tobankers. bankshaveexchanged lame$3.5billion inloansforspecialexitsecurities whichallowforagrace periodofprincipal in1990and1991andforrepayment ofthebondsoverfiveyears beginnJng in1992,inequal.emi-annual instalments. AjlAmongthe~an~8that a9r~~dtosuchconversion areCitibank, withoutstanding loanstotalling '660 mill~on, andManufacturer~ Hanover, whichillApril\989announced anextension on'230millionofSouthAfrican debt.AllThUB,inMay1989,SouthAfrica's Finance Minister wasabletoannounce thatinaperiodoftwomonths, $1.1billion ofshort-term debthadbeenconverted intolong-term d~bt,allowing SouthAfricato makerepayments of$1.3billion in1989,$1.9billion in1990and$1billion in 1991.Twomonthsearl\er, thebUdgethadforeseen debt repay~.nts totalling $1.7billion in1989,$2.1billion in1990and$1.5billion in1991. ~I 123.WIthforeign bankslooking toprotect existing loanstoSouthAfricaandwith theapplication ofsanctions onnewloans,virtually theonlysourceofnewforeign financing available toSouthAfricaistradecredit. It18estimated thatSouth Africamaintains anoutstanding tradedebtofover'3billion. SouthAfrican ofUcials haveacknowledged thattherehasbeena"gratifying" incne.de intrade credits, serving toeasebalance-of-payment constraints. While sev~ralState.have bannedsometypesoftradecredits toSouthAfrica, thebanisf~rfromcomplete. InBornecases,buyers' credits (bankloans)arebannedbutnots~ppliers' credits (delayed payment termsoffered bythesupplier). Aconcern oftho~eStateswhich prohibit tradecredits toSouthAfricacould ~ethattradewillbelosttothose Statesthatcontinue toallowtradecredits. Retaliatory measures shouldbe imposed onthoseStateswhichtakeadvantage ofthetr~deopportunities created by theBanction9 imposed byotherStates. -32-3.Disinyestment andSouthAfrican foreign iny§stmvnt 124.Withdrawal oftransnationa1 corporations fromSouth Africl~anddisinvestment bypeopleandorganizations ofsharesincorporations withtiostoSouthAfrica constitute oneofthemosteffective formsofeconomic pressure onther~gimA outslde ofgovernment sanctions. Areported 500transnationa1 corporations have soldtheirholdinCjJs inSouthAfricaL:incecorporations heg'!D\tiithdrawiug inthe 19101. TheUnitedNations CentreonTrt~snatian81 Corporations rdports that,in t$rmsofnumbers ofcorporations withdrawing, disinvftstment hasbeeumost pronounced intheCBseoftheUnitedStates. Between 1January 1984and 14April1989,atotalof155companies fromthePnitedStatesand122fromother countries dislnvested fromSouthAfrica. ~/Inthefirstsixmonthsof1989, 3Unite~Statescompanies withdrew fromSouthAfricaandafurther 10announced their inte~tion toleave.§I/ 125.OfUnitedStates-based transnationsl corporations withsubsidiariep, inSouth Africa, 60percenthave disinvest~d Bince1985.InthecaseofUnite{, Kingdom-based corporations WIthinvestments inSouthAfrica, about20percenthave withdrawn since1985.TheUnited Kingdom pro~ortion, ho~ev6r, represents a significant volumeofdiainvestment, sinceanestimated 40petcentofallforeign investmont inSouthAfricaisUnited Kingdom based. Companies basedintheFederal
analysis: The text appears to be discussing the economic situation of South Africa, specifically the impact of international sanctions and the country's efforts to manage its debt and foreign investment. It also touches on the issue of trade credits and the disinvestment of transnational corporations from South Africa. The text does not seem to be focused on any specific sector such as agriculture, forestry, or fishing, nor does it discuss health, education, employment, humanitarian aid, culture, or science and technology.