The memorandum says the American Committee on Africa has for several years focused attention on the explicit economic and implicit moral, social and political support which American investment in South Africa gives the oppressive Apartheid system; However investment in South Africa is extremely profitable, thus the number of dollars invested has grown every year despite growing world condemnation of South Africa's racial policies; thus it appears important to diversify the strategy of pressure against the maintenance and enlargement of American investment in South Africa and to extend the area of such pressure. The memorandum says students have played an active role in demanding that Universities not invest in Corporations with South African connections; some individual shareholders in Corporations with such connections have protested the connection; there has been a widening campaign against the Banks involved in giving loans or credits to South Africa. The memorandum says growing U.S. investment in the rest of Africa now suggests a new and potentially effective weapon in the fight against American economic involvement in South Africa; as will be seen from the brief outline presented below, American investment in Africa as a percentage of total U.S. foreign direct investment is growing. The memorandum says differentiating between Southern Africa and the rest of Africa, it appears that while total U.S. investment is growing throughout Africa, the relative percentage of such investment in North and Middle Africa has grown. The memorandum says a few countries still absorb the major share of U.S. investment South Africa ($601 million, 1966), Libya ($389 million, 1966), Liberia ($208 million, 1966) but there are significant totals for an increasing number of other countries too, e.g. Kenya (approximately $100 million); U.S. direct investment in North and Middle Africa is heavily concentrated in extractive primary industries, to a much lesser extent in a few manufacturing areas, especially food processing and chemical projects such as fertilizers and pharmaceuticals. The memorandum says investment in South Africa is broader with significant involvement in manufacturing industries such as the auto motive industry, rubber manufacture, steel and metal industry, as well as light industry; nevertheless, despite this divergence in major fields of investment North and South of the Zambezi, there are sufficient cases where U.S. companies are significantly involved in both South Africa and the rest of Africa to make it possible for strong pressure to be exerted on them by African Host Governments. The memorandum direct investment, earning on investment, discusses mining/smelting, Pfizer Products, Singer Sowing Machine, Pan American World Airways, Standard Oil of New Jersey, Esso, Kaiser Corporation, Firestone Tire and Rubber, Olin Mathieson Chemical Corporation, Alcan Aluminum, IBM, National Cash Register, Socony Mobil Oil, Caterpillar Tractor, Coca-Cola, Pepsi, Schering Corp., Caltex, Eastman Kodak, Union Carbide, Chase Manhattan Bank, Chesbrough Pond, Ingersoll Rand, International Harvester, John-Manville, Olin, Ashland Oil, American Kewanse Overseas, Etosha Petroleum, and Esso. • TABLE I. U.S. INVESTMENT WITH AFRICA AND THE WORLD • TABLE II. U.S. DIRECT INVESTMENT IN AFRICA, BY REGION • TABLE III. U.S. DIRECT INVESTMENT IN AFRICA BY TYPE OF ACTIVITY
Used by permission Africa Action (successor to the American Committee on Africa).
Collection: William Minter Southern Africa Papers