131.According toastUdypresented bytheInternational Confederation ofFree TradeUnions(ICFTU) totheInternational LabourConference heldatGenevain June1989.atotalof88SouthAfrican transnRtional corporations control 437 SUbsidiaries in44countries throughout theworld. TheUnitedKingdom. with16 SouthAfrican-owned companies established onitsterritory, takestheleadinwhat thestudydescribed ast1companie~ thatplayanactiveroleinmaintaining and strengthening theApartheid system", Thestudyindicates thattheseSouthAfrican corporations playaroleintheefforts oftheregimetocircumvent sanctions. According tothestudy,SouthAfrican companies havebeennoted.especially in Europe, toacquire sharesinreputable concerna, thereby avoiding sanctions andthe stigmaattached toSouthAfrican firms. SuchSouthAfrican corporations asAnglo, Liberty, Rembrant andBarlowhavebeguntoreducetheirpresence inSouthAfricaby diversifying theiroperations abroad. 1~1 -34-D.Military a~OnucleAL relations 132.SouthAfricacontinued tobuildupitsmilitary strength andtotradein armaments, inspiteofthemandatory arms embar~o. Theofficial defence budgetfor 1989/90, innominal terms, was21.3percentgreater thanthatfor1988/89 and 13.7perce"thigherintermsofactualexpenditures. TheSpecial Defence Acco~at, theSADFsecretaccount usedforclandestine operations andarmspurchases, roseby 26percentfromR4.613billion toR5.816 b~llion. Finance Minister Bar9nd DuPleasis reported inParliament thatthAtotalsumallocated for "protet;tion services" wasaboutR16billion or23percentoftotalexpenditure. How~ver, thisfigureexcludes anumberofsecurity-rel3ted outlayw, suchassecret services anddefence forcehousing, whicharecovered byotherapplopriations. The expenditure allocated to"protection services" reflects thepriority thatcontinues tobeassigned tothesecurity apparatus, developments intheregion notwithstanding. 11/ 133.Observers pointoutthattheincrease ofthedefence budgetwillprobably be usedforSouthAfrica's weapons mOdernization programme. Inamemorandum attached tothebudget, theDepartment ofDefence stressed theneed"toreplace obsolete weapons systems" aslongas"thearmsembargo is&1':.111inforce". Amongthe weapons development programmes likelytobemodernized arethefighter aircraft fleetandtheairdefence system. 134.Inaddition toincreasing itsmilitary andsecurity expenditure, theregime expanded itsarmaments industry, aswellastheexportofmilitary equipment. According toastatement bytheSouthAfrican Minister forDefence~ Lieutenant General MagnuB Malan,overthelast13years,theArmaments Corporation ofSouth Africa (ARM~COP) hasexported weap,ons to39countries, withsalestotalling $800million annually. 11/ 135.Theregimeappears tohaveacquired themilitary technology toupgradeits existing armaments. Loopholes intheexisting armsembargo allowSouthAfricato circwnvent it.Theabsence oflawsandregulationF banning allformsofmilitary co~laboration withSouthAfrica, thenon-enforcement ofcurrent lawsbyspecific Statesthathaveadopted legislation ontheembargo, thethriVing international marketofweapons ~ndmilitary technology andthelackoffirminternational action todetercertain States andindividuals fromviolating theembargoallenhance SouthAfrica's ability tocircumvent it. 136.TheSpecial Committde hasforseveral yearsbeenfollowing developmente relating tothedelivery ofmicrofilms oftheblueprints oftheU-209submarine to SouthAfrica bytwocorporations basedintheFedoral Republic oCGermany, nwmely Howaldswerke-Deutsche Werft AGandIngenieurkontor Lubeck. Itshould berecalled thattheissueoftheblueprints hadappeared intheprevious reportoftheSpecial Committee. li.lItwasalsothesubject ofdetailed consideration bythe Consultations ontheImplementation bytheGovernment oftheFederal Republic of Germany oftheArmsEmbargo against SouthAfrica, organized bytheWorldCampaign against Military andNuclear Collaboration withSouthAfrica, inco-operation with th~Special Committee, atBonn,on27April1989.DuringtheConsultations, itwas shownthattheFederal Republic lackedeffective legislation toimplement thearms
**Analysis**
The text appears to be discussing the economic and military developments in South Africa, specifically focusing on the role of transnational corporations, the country's military strength, and its ability to circumvent international sanctions. The information presented is likely related to the country's economic and political situation, making it difficult to categorize under a single category.

**Category**
Economy, International trade, Industry