STATEMENT OF JOHN E. LIND, Ph.D.

Contents: INTERNATIONAL CHURCH COORDINATION • WHY FINANCIAL SANCTIONS? THE CASE FOR FINANCIAL SANCTIONS • IMPLICATIONS OF CHURCH INITIATIVES FOR U.S. CONGRESS • 1. CONVENTIONAL LOANS • 2, SECOND INTERIM AGREEMENT • 3. "RESCHEDULING" FOR 1990 TO REPLACE THE SECOND INTERIM AGREEMENT • 4. TRADE CREDITS • 5. MULTINATIONAL INSTITUTIONS • 6. GOLD SANCTIONS • 7. CORRESPONDENT BANKING AND SOUTH AFRICAN DEPOSITS • 8. UNIFORM TREATMENT OF FOREIGN AND DOMESTIC BANKS • APPENDIX I: LETTER TO MANUFACTURES HANOVER FROM BANK THE PRESBYTERIAN CHURCH (USA) • APPENDIX II: THE INTERIM AGREEMENTS ON SOUTH AFRICA'S DEBT • APPENDIX III: ESTIMATED DEBT REPAYMENT SCHEDULES FOR SOUTH AFRICA • APPENDIX IV: TRADE CREDITS • APPENDIX V: GOLD SANCTIONS AND THE SWISS BANKS • Table I. Exposure of U.S. Banks in South Africa • Table II. PAYMENT SCHEDULE FOR PRINCIPAL AND INTEREST • TABLE III. Foreign Exchange Available for Repayment of Interest and Principal on South Africa's Debt • Statement of John E. Lind for Hearing Concerning the Rescheduling of South Africa's Debt before the Subcommittee on International Development, Finance, Trade and Monetary Policy of the Committee on Banking, Finance and Urban Affairs of the U.S. House of Representatives. Lind says, since 1985, U.S. churches have also focused on U.S. subsidiaries of European banks that support South Africa with trade credits. In August 1988, the President of the Ecumenical Relations Department of the Protestant Federation of Churches in Germany (Evangelische Kirche in Deutschland, EKD) suggested that Lind provide work with the churches in the five countries that have banks on the negotiating committee with South Africa so churches in the U.S., the U.K., Germany, Switzerland and France could coordinate their approach to these banks. In Germany, Bishop Kruse, Chairman of the EKD, led delegations to Deutsche Bank, Dresdner Bank, and Commerzbank. An ecumenical church committee has met with the Bankers Association in Switzerland, and a letter from the churches was sent by the Presidents of the Swiss Protestant Federation and the Swiss Bishops Conference to Union Bank of Switzerland, the Swiss Bank Corporation and Credit Suisse. The British Council of Churches has written to National Westminster Bank, Barclays and Standard Chartered. The French Protestant Federation is discussing the issue with the French government, and the French Peace and Justice Commission (Catholic) has met with a French banks. The heads of Presbyterian Church USA, Evangelical Lutheran Church in America, and United Church of Christ have written J.P. Morgan and Manufacturers Hanover. Canadian churches, through the Taskforce on the Churches and Corporate Responsibility, and several U.S. churches are developing pressure on Swiss banks, especially Union Bank of Switzerland, by contacting their recent North American customers and urging them to seek alternative banks. In the 11 months preceding the moratorium in September 1985, U.S. banks withdrew $1.5 billion from South Africa; about $300 exited South Africa in August 1985 alone. APPENDIX I include a letter to John McGillicuddy, Chairman of the Board, Manufacturers Hanover Bank from James E. Andrews, Stated Clerk of the General Assembly, Presbyterian Church (USA). The statement mentions unrest in black townships, the financial rand, the Comprehensive Anti-Apartheid Act of 1986, Citibank, the South African economy, a stockholder resolution, the American Baptist Home Mission Society, the United Church of Christ Board for World Ministries, the Glenmary Hare Missioners, Public Investment Commissioners (PIC), the South African Reserve Bank and South African entities, credits for trade, loans, swaps, and the Country Exposure Lending Survey.