NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.
| The State Department web site below is a permanent electronic archive of information released prior to January 20, 2001. Please see www.state.gov for material released since President George W. Bush took office on that date. This site is not updated so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein. |
South Africa: U.S. Policy and Bilateral Relations Introduction Mr. Chairman, Committee Members, thank you for the opportunity to testify on South Africa, a nation whose remarkable transformation continues to command the world's attention and admiration. Some 5 years ago, South Africa stood at the threshold of a new era when its people went to the polls to elect their first democratic parliament. It, in turn, chose Nelson Mandela to lead a government of national unity. The 1994 elections were a watershed in the 20th century, bringing an end to the vicious apartheid regime and South Africa's international isolation. It also opened the promise of new hope for the southern African region. Now, South Africa has entered a new and equally critical phase, and its resilient people again have put their best foot forward. The country's second democratic election on June 2 marked a smooth and routine transfer of power--a critical indication of sustained progress in South Africa. Concerns about violence, apathy, disorganization, and fraud proved unfounded as 86% of registered voters peacefully and efficiently cast their ballots. In returning the African National Congress (ANC) to power, voters underscored their desire that the ANC continue to deliver genuine change. More fundamentally, the elections also demonstrated that South Africa's people, many of whom are still divided and uncertain about the future, are committed to the country's peaceful evolution under a democratic system of government. Our stake in South Africa's success is significant. For the United States, South Africa's leadership as a pluralistic, market-oriented democracy is critical to the achievement of our goals in Africa, especially integrating Africa into the global economy and combating transnational threats to our mutual security. The country is the destination of 54% of U.S. exports to Africa and our largest trading partner on the continent. It is an anchor in the Southern African Development Community (SADC)--one of Africa's most important sub-regional economic and security organizations. South Africa's leaders have played a key role in foreign affairs--helping broker peace in the Congo and bring calm to Lesotho, and serving as Chair of the Non-Aligned Movement. South Africa works in tandem with us to prevent global proliferation of weapons of mass destruction, and to counter corruption, environmental degradation and international terrorism. In this regard, Mr. Chairman, let me take the opportunity to thank the government today for its extraordinary cooperation with U.S. law enforcement that led to the capture last week of a suspect involved in the Dar Es Salaam terrorist embassy bombing. In the context of this evolving U.S.-South Africa partnership, we are working to solidify our already excellent relations with the "new" South Africa and to strengthen long-term cooperation on bilateral and multilateral issues of mutual importance. Underlining all our objectives is the desire to help South Africa consolidate its already remarkable progress in achieving a political transformation and bringing opportunity and well-being to all its people. The New South Africa Yet, South Africa's future depends on the continued strong commitment of its government and its people to fostering lasting democracy and economic growth. The continued assistance of the United States and South Africa's many friends around the world through development cooperation, trade, and investment will also be crucial. A half-decade after the end of apartheid, there is a general recognition, both inside and outside of South Africa, that the government of President Nelson Mandela and Deputy President Thabo Mbeki performed extremely well. The ANC-led government has fostered the difficult and lengthy process of national reconciliation, laid the groundwork for long-term democratic tradition, established a sound economic policy framework, and begun to deliver essential social services to the previously disadvantaged majority. President Thabo Mbeki's government now faces the difficult task of fulfilling his promise to accelerate the pace of the transition. Since taking office on June 16, President Mbeki has taken decisive steps to address the pressing issues of crime, economic growth and job creation, as well as improved delivery of social services and programs. In public forums, he has taken a tough line against military governments, corruption, and misrule--statements we applaud. At the same time, he has stood by the government's macro-economic policies--embodied in the Growth, Employment, and Redistribution (GEAR) program--that emphasize fiscal discipline, removal of capital controls, lower tariffs, and privatization of the parastatal sector. The faithful implementation of the GEAR program, even in the face of some domestic opposition, shows signs of paying off. South Africa weathered last year's Asian financial crisis better than most other emerging markets, in large part due to the government's prudent fiscal management and the soundness of its banking system. The budget deficit as a percentage of GDP has been cut nearly in half since 1994, consistent with GEAR's targets. Inflation, which had run into double-digits for more than 20 years, fell below 3.5% annually last month. Interest rates are declining and investor confidence is increasing. The Johannesburg Stock Exchange has gained 25% so far in 1999, and the South African rand has regained strength against the dollar. Economists are forecasting that GDP growth, stagnant last year, will again turn positive in 1999/2000. Finally, progress also has been made in the government's efforts to empower the majority. On the Johannesburg Stock Exchange, the value of business transactions conducted by majority firms has grown tenfold since 1995, from 2 to 20 billion rand. Looking ahead, South Africa's progress will rest in large measure on the government's ability to continue implementing its economic and social programs fairly, openly, and effectively. It also will depend on a commitment to continue promoting racial and social reconciliation--convincing all South Africans that their future lies in one peaceful nation. And it will depend on the commitment of the government, all political parties, interest groups, and individual citizens to continue strengthening the beliefs, practices, and institutions essential to democracy. U.S. Policy Our policy seeks both to help South Africa meet these challenges and to strengthen our partnership and cooperation in key areas of mutual interest. The most important of these areas include:
To help us achieve these goals, USAID, the Defense Department, Peace Corps, the State Department, law enforcement agencies, and many other USG departments and agencies provide support or training. A variety of law enforcement and International Narcotics and Law Enforcement Affairs bureau programs bolster the country's judicial system and police force. In South Africa, we have worked together to build housing, to bring electricity and potable water to remote rural areas, to promote joint research on disease, and to expand public awareness of the HIV/AIDS crisis. The largest component of U.S. assistance to South Africa is USAID's effort to promote economic, social, and political development. Our current strategy, being implemented under a 10-year $435 million program, was developed in close cooperation with the South African Government, civil society, universities, and the private sector. Our aim is to ensure a sustainable transition--helping South Africa institutionalize democracy and put in place policies and systems for social service delivery. Emphasis is on empowerment and increasing the participation of the majority population in six areas: democracy and governance; education; health; economic policymaking; private sector development; and housing and urban services. In addition, South Africa has been designated a key country for USAID's Global Climate Change Program (GCC). In close consultation with the South African Government, we have concluded that significant U.S. assistance will be required well into the new century to meet our mutual economic and political objectives in the country. Accordingly, after consultations with the Congress and strong support from the State Department, USAID has formally approved a 5-year extension of its program, through 2010. This decision will enable us to continue working closely with South Africa on its development priorities. Bilateral Relations The United States and South Africa have much in common: diverse and open societies, deep respect for democratic ideals and human rights, and a shared vision of a peaceful and prospering international community. When apartheid ended, our relations were essentially moribund in a wide range of important areas. Yet in a little over 5 years, business and personal links between the two countries are burgeoning and we have made great progress in establishing a strong, mature, and long-lasting U.S.-South Africa partnership. Regular, high-level contacts have been critical to this process. President Mandela's State visit to Washington in October 1994 produced agreement to establish the U.S.-South Africa Binational Commission (BNC). This, in turn, resulted in the development of highly productive working relations between Vice President Gore and then-Deputy President Mbeki, as well as between many U.S. cabinet officials and their counterparts. President Clinton's March 1998 visit lent additional momentum. The U.S.-SADC forum in April in Botswana, helped move forward a range of important issues with this critical regional organization as well. Most recently, last month in New York, the President, Vice President, and Secretary of State met with President Mbeki and his key advisers for highly constructive talks. There is every indication that the new Mbeki government intends to pursue closer ties with the U.S. in the coming years. The high degree of continuity in the new government--both in personnel and policies--buttresses this view. The U.S.-South Africa Binational Commission The Binational Commission, meeting six times since 1994 and now comprising nine committees, has been central to the process of renewing and strengthening our cooperation in many areas. Under its auspices, we have worked to open our markets, and signed a Trade and Investment Framework Agreement that established a Trade and Investment Council chaired by Ambassador Barshefsky and Minister Alec Erwin. We have negotiated a bilateral tax treaty and new pacts on taxation, civil aviation, extradition, and mutual legal assistance. The BNC, through the U.S.-South Africa Business Development Committee, has been particularly effective in strengthening our bilateral economic ties. I cannot overestimate the importance of this aspect of our relationship, for either the United States' or for South Africa's long-term prosperity. Since sanctions on South Africa were lifted, U.S. corporate presence in South Africa has expanded from about 150 companies to nearly 400--which is the equivalent to the U.S. corporate presence in Russia, Turkey, or Israel. The United States is the largest source of new foreign direct investment in South Africa since the end of apartheid in 1994. U.S. FDI stock was $2.7 billion at the end of 1997, 15% of South Africa's total. Through the Trade and Investment Council, we are developing mechanisms and channels for resolving the disputes that inevitably arise between close trading partners. Two recently established BNC committees--one on Defense and another on Justice and Anti-Crime Cooperation--have led in short order to rapidly expanding collaboration in these critical areas. Our relations in the sensitive area of security and defense were virtually nonexistent before 1994. But now, Defense Secretary Cohen and his counterpart have exchanged visits and the International Military Education and Training (IMET) program is the largest in Sub-Saharan Africa. The U.S. provided assistance to the South African-hosted regional peacekeeping exercise ("Blue Crane") in April 1999. Through the Defense Committee, we are working with South Africa in such key areas as force rationalization and the environment. Finally, the settlement of the "Armscor" case in February 1998 has resulted in the normalization of defense trade between the two countries. The new Justice and Anti-Crime Cooperation Committee (JACC), formally established under the BNC in February 1999 and chaired on the U.S. side by Attorney General Janet Reno, seeks to augment our cooperation on anti-crime strategies. South Africa's rate of violent crime remains among the highest in the world. Illegal immigration, money laundering, drug trafficking, financial crimes, and illegal arms trafficking are most prevalent. Transnational drug traffickers and criminal organizations take advantage of South Africa's porous borders, developed infrastructure, and convenient location between Asia and South America. At the February BNC, the JACC agreed on a package of training proposals (financed by the State Department's Bureau of International Narcotics and Law Enforcement and run by U.S. law enforcement agencies) and is beginning to implement some of these programs. Foreign Policy In the area of foreign policy, South Africa has quickly emerged as one of Africa's leading political and diplomatic actors. Its global objectives--preventing conflicts and promoting peaceful resolution of disputes; promoting democratization, disarmament, and respect for human rights; and advancing environmentally sound, sustainable development and poverty alleviation--are consistent with broad U.S. policies and ideals. President Mandela began South Africa's increasingly active role in the international arena with his many visits abroad. President Mbeki has followed suit with an impressive agenda in the region and elsewhere. The South African Government assumed the chairmanship of the Non-Aligned Movement (NAM) in 1998, conducted a high-profile campaign to ban landmines, and played a dynamic role to promote a cease-fire agreement between combatants in the Democratic Republic of the Congo (DROC). Indeed, President Mbeki, days into his administration, confirmed his personal commitment to help secure a resolution of the war in the Congo. He dispatched his Foreign Minister on an exhaustive shuttle-diplomacy mission to convince the Rally for Congolese Democracy (RCD) rebel factions to sign the Lusaka cease-fire accord, which they did on August 31. Both Foreign Minister Zuma and President Mbeki played key roles in moving forward the Lusaka accord's implementation, including their recent efforts to persuade the RCD to come to an agreement regarding its representation on the Joint Military Commission (JMC), the body responsible for monitoring the peace. Still, we anticipate continued occasional differences with South Africa on some foreign policy issues. Its friendships with Libya and Cuba, for example, have been of intermittent concern in our relationship. With the suspension of UN sanctions, South Africa is one of a number of countries moving to strengthen diplomatic and trade ties with the Qadhafi regime. In May, Trade and Industry Minister Erwin signed a bilateral trade agreement during a visit to Libya. The global scope of South African foreign policy notwithstanding, much of the government's focus is closer to home with the Southern African Development Community (SADC) and the Organization of African Unity (OAU). South Africa appears determined to make both SADC and the OAU more relevant and effective. We strongly support its efforts in this regard. Conclusion Mr. Chairman, we consider our relationship with South Africa to be one of our highest priorities. A reconciled, dynamic South Africa is key to peace, prosperity, and security throughout Africa. But we must all be cognizant of the tremendous challenges still facing the country and its people. As President Mbeki said at his inauguration, South Africa is "at the dawning of the dawn, when only the tips of the horns of cattle can be seen etched against the morning sky." In many ways the task of democratic institution-building in this country is only just beginning. As well, crime, HIV/AIDS, and economic disparity all threaten South Africa--just as our social problems and violence threaten U.S. progress--in the next century. We are committed to supporting not only South Africa's domestic strides, but its strong role in the region, and its positive contribution worldwide. We look forward to strengthening and deepening our engagement with the new South Africa and its people. The South African people have set a tremendous example for all throughout the world who yearn for democracy and the right to determine their own destiny. We believe their strength will ensure the success of their transition and the emergence of South Africa as one of the world's greatest powers and most respected leaders. Thank you. [end of document] |
