former executive of General Motors. It is widely assumed that the contract, none of the details of which are known, includes a buy-back clause which would allow the parent to return openly when circumstances permit. (c) Salg to a trust 25. In a trust arrangement, the departing company transfers its assets to the specially created trust, which pays for these assets out of future company earnings. The often complicated and confidential nature of trusts facilitates the position of those corporations that seek to keep open the option of re-entering the South African market. United States corporations that have utilized trust arrangements include Exxon, International Business Machines, Johnson Controls and the Ford Motor Company. The Swedish engineering group, Alfa Laval, announced in 1987 that it was transferring ownership of its South African subsidiary to a trust located outside South Africa. General Motors (United States) also combined disinvestment in a management buy-out and an employee trust when it decided to leave South Africa in 1986. Trusts are established in conjunction with management buy-out arrangements, and the terms of the trust give the parent corporation an option to buy back the company. 26. Disinvestments by transnational companies do not necessarily mean an end to business ties with South Africa. The companies find new ways of doing business there which may even be more profitable. Non-equity links pursued by TNCs allow them to do business more profitably than before in South Africa through licensing agreements and contracts with local companies without the political implication of direct investment. This method is euphemistically known as the "Japanese model", since several Western nations which are disinvesting in South Africa are following a model that has been well tested by Japan. Japanese economic interests have been represented by their companies having sales and representative offices in South Africa as well as 
**Analysis**
The text discusses the strategies used by transnational companies (TNCs) to disinvest from South Africa, including the use of trusts, buy-back clauses, and non-equity links. The focus is on the economic and business aspects of these disinvestments, rather than their social, environmental, or humanitarian implications.

**Category**
Industry, International trade