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