UNITED STATES BANK POLICY AND APARTHEID'S FINANCIAL CRISIS
Notes and Documents
by Diana Bratcher, Timothy Smith, Interfaith Center on Corporate Responsibility, United Nations Centre Against Apartheid
with Desmond Tutu, Beyers Naude
New York, New York, United States
Paper, issued at the request of the United Nations Special Committee against Apartheid, contains excerpts from a letter by Bishop Desmond Tutu and the Rev. Beyers Naude on the rescheduling of South Africa’s debt. The report says that, after months in the throes of political and economic crisis, the South African Government is seeking to normalize relations with foreign Governments and creditors. To avoid further isolation and tightened sanctions, South Africa hopes to create the impression with its traditional allies in Western Europe and the U.S. that it has controlled political unrest, that political compromise is underway, and that the foreign debt will be repaid. Reports from South Africa indicate that black South African opposition to apartheid has grown relentlessly during the state of emergency. The report discusses Mr. Fritz Leutwiler, the Swiss mediator for South Africa's foreign debt renegotiations, and Rev. Carol Somplatsky-Jarman. Contents: I. EXCERPTS FROM A LETTER DATED 20 OCTOBER 1985 FROM BISHOP DESMOND TUTU, NOBEL PEACE PRIZE LAUREATE, AND THE REVEREND BEYERS NAUDE, SECRETARY-GENERAL OF THE SOUTH AFRICAN COUNCIL OF CHURCHES, ADDRESSED TO MR. FRITZ LEUTWILER, CO-ORDINATOR OF SOUTH AFRICAN DEBT RENEGOTIATIONS • Rescheduling South Africa's External Debt • Rescheduling Conditional on Political Change • Envisioning a new South African Government • II. UNITED STATES BANK POLICY AND APARTHEID'S FINANCIAL CRISIS, BY DIANE BRATCHER AND TIMOTHY SMITH • The Debt-Rescheduling Negotiations • Political change - a condition for rescheduling and new lending • Loans to the South African Government halted • United States investment in South Africa has changed • Back door lending to the South African Government • Banking crisis • Shifting policy on South African loans • No loans to South Africa • (a) Bank of Boston • (b) Bankers Trust Company • (c) Mellon • (d) Wells Fargo • Short-term lending only • (a) NCNB Corporation • (b) Texas Commerce Bank • Instability a barrier • (a) BankAmerica • (b) Chase Manhattan • (c) Chemical Bank • (d) Citicorp • "Constructive" private sector lending • (a) First Chicago Corporation • (b) Irving Bank Corporation • (c) Manufactures Hanover Trust Company • (d) J. P. Morgan
Used by permission of the Interfaith Center on Corporate Responsibility.