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Salient. Victoria University Student Newspaper. Volume 38, Number 26. 1975

The South African Connection . . . . — . . . with Israel . . . with Malaysia

The South [unclear: African] Connection . . . .

. . . with Israel . . . with Malaysia

Military And economic links between the Zionist state of Israel and the apartheid state in South Africa continue to flourish. It is a relationship which the Israelis are proud to display, although when Israel was active in seeking co-operation with, and diplomatic support from, the black Africa states, the relationship between the two racist states was a closely guarded secret.

On July 8th The Guardian published a report from their Cape Town correspondent Stanley Uys in which he revealed 'Senior Israeli officers visit South Africa regularly to lecture South African officers on modern warfare and anti-insurgency techniques, it was disclosed today. This is one of several important military and industrial links that have been established between Israel and South Africa'.

A Mirage jet fighter ... did S.A. fight Israel's battles?

A Mirage jet fighter ... did S.A. fight Israel's battles?

In Israel a rail project is being carried out with participation by the state owned South African railways, while in South Africa an Israeli plant to desalinate seawater for drinking and irrigation is being carried out with Israeli expertise and technicians.

Stanley Uys continued, 'Confirmation of these two projects was given in Johannesburg today by General Mair Amit, formerly Israel's chief of intelligence and at present head of the giant Koor Industries, who is on his second business and lecture tour of South Africa'.

When it was put to General Amit in an interview that apart from major industrial projects Israel and South Africa enjoyed good military relations, he replied: 'That is an understatement'.

Koor Industries comprises of 150 independent companies, 75 of them major manufacturers, and has links with Iscor (the state-owned Iron and Steel Corporation in South Africa) and give other major South African industrial concerns.

General Amit disclosed that a joint Israeli-South African venture in the manufacture of agricultural chemicals, including insecticides, would come into operation in East London, Cape Province, next year. The factory was already being built.

In addition, an oil tank farm for the storage of oil under tight security conditions, was being built in Israel and this was a 'partnership venture' with South Africa, General Amit disclosed. The oil tanks had been made by a South African company and were being assembled in Israel.

Israeli newspapers now openly discuss the common interests of the Israeli and South African Governments. An article in Ma'ariv (29/4/75) by a well-known commentator on world affairs, Shaul Ben-Chaim, claims that Arab commandos are trying to destroy the fruitful dialogue between Pretoria and black Africa as a means of attacking Israel. One remarkable aspect of this article is that it was published after it was already known that the attack on the Israeli Consulate in Johannesburg was carried out by one of its own guards and not by Arabs.

Below are extracts from Ben-Chaim's article which appeared under the heading 'Arabs Aim To Damage Israel-South Africa Relations':

The Arabs have always associated Israel with South Africa in their declarations. Their strategy at the UN was to provide the African extremists with the votes of the Arab bloc aid its friends, in return for African support for their demand that observer status be granted to the organisation of Arafat, the grand assassin.

The attack in the heart of Johannesburg was meant to demonstrate the strong link between Jerusalem and Pretoria. The Arabs can now appear in African eyes as the people who do their work for them. Is it not the extremists in the African states who demand all the time that the black Africans should pass over to the offensive against the South African Government? This has not been done before because of South African strength.

From our point of view, it is right to associate Jerusalem with Pretoria. Both states are surrounded by enemies with more numerous populations and the South Africans are well aware that their very existence is at stake. The Israel-South Africa relationship is on a firm basis. First of all the people of South Africa respect the Bible; they have a special relationship with the Land of the Bible and the people of the Book. Secondly, they have always seen Israel as an example of the ability of a small nation to survive. They followed this people's struggles and they rejoiced in its victories on the battlefield. It seems this attitude is stronger the further one goes into the rural areas and away from the big city centres.

Numerous guests come to South Africa from Israel but in most cases their visits are not publicised. One exception in this respect was Dr Coney Mulder the South African Minister of the Interior and Information, who recently came on an official visit to Israel. Other government officials, who included the commander of the South African secret police, chose to keep their visits secret.

The relationship between Israel and South Africa has not always been idyllic. There were times when the 'African lobby' in Jerusalem claimed that the ties with Pretoria harmed the development of links between Israel and black Africa. This view collapsed when even Israel's best friends in the black continent yielded to the temptation of the Arabs and cut their ties with us.

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The recent squabble between Singapore and Malaysian business interests (supported by the respective regimes) over the plans of the Malaysian Government investment agency Pernas to buy into the Singapore-based multinational Haw Par Brothers International has highlighted investments of the South African owned company Charter Consolidated Ltd in Malaya. Charter Consolidated has a 13% holding in Haw Par.

Although Charter Consolidated is based in London, it is a member of the notorious Anglo-American group of companies, one of the largest exploiters of cheap Black labour in southern Africa. Charter Consolidated, with its London base, is a useful 'cover' for investment by the racist Anglo-American Corporation in the Third World: as "The Bulletin" noted (3.12.66), "it is mainly through Charter that the Anglo group hopes to diversify into other parts of the world". The British "Investors' Chronicle" (26.11.71) commented on Anglo-American's international diversification: "Its shares are proof against all but the most far-reaching economic trends. They are really an investment in the Western capitalist system".

In 1973 the Oppenheimer family—the largest shareholders in the Anglo-American empire—received over A$4.2 million from its share holdings. The Anglo-American group's direct holdings in Charter Consolidated total 36% of its share stock. Harry Oppenheimer, Chairman of Anglo-American, personally owns 5% of the shares, 11 of the 20 directors of Charter Consolidated are also on the Anglo-American Board, including prominent members of the Oppenheimer family.

Charter Consolidated has investments totalling A$8.8 million in South East Asia. The bulk of these are in the Malayan tin industry, principally the Tronoh group of companies—Tronoh Mines Ltd, Bidor Malaya Tin Sdn Bhd, Ayer Hitam Tin Dredging Ltd, and the Sungei Besi Mines Ltd.

The living conditions of apartheid. A process of exploitation, accumulation of capital and re-exploitation in another place.

The living conditions of apartheid. A process of exploitation, accumulation of capital and re-exploitation in another place.

"Profits of these companies showed satisfactory increases in 1974", according to Charter Consolidated's 1974 Annual Report. The benefit of a 77% jump in tin prices went not to the Malayan people, but to greedy and openly racist mining companies like Charter Consolidated. Most of the mines were actually producing less tin than in 1973 (with a resultant loss of employment for Malayans) while 'earning' greater profits.

For example, production by Tronoh Mines and its subsidiaries fell by 11% since 1973, but profits were about 3.5 times as great—A$2.51 million. Production at Ayer Hitam fell by 25%, but profits were still more than 1.5 times as great—A$1.68 million. Sungei Besi revealed a similar trend. In Selangor a major new tin discovery is to be developed jointly by Charter Consolidated and the Selangor State Development Corporation.

The De Beers Mining Corporation—another member of the Anglo-American group—shares ownership with a US company in Ocean Mining Co., an offshore tin mining concern. In 1971 an Anglo-American executive—a South African - told me that he visits Malaysia frequently to inspect his company's investments there, travelling on a British passport.

It is interesting to note that the rate of return on British investments in Malaysia is only slightly lower than the rate for South Africa itself—11.3% p.a. compared with 11.7%.(1).

Had the recent attempt by Pernas to but into Haw Par Brothers not been disallowed by the Singapore authorities, the South African-controlled Charter Consolidated would have become a business partner with an agency of the Malaysian Government. The 1975 Charter Consolidated Annual Report looked forward to partnership with the Razak regime as "likely to be in the best interests of shareholders". The shareholders of course include Harry Oppenheimer and his empire: they benefit The owners of the mineral wealth of Malaya are the Malayan people: they lose, thanks to the Malaysian Government's cooperation with the most despicable of foreign capitalists.

Michael Little

(1) Official British statistics quoted in Ruth First et al: "The South African Connection" (London, 1972) p.333. Although these figures refer only to Britain and are somewhat out of date (1968), the ratio is unlikely to have changed greatly in the meantime.

Malaya and southern Africa: some notes
1.The Singapore regime is apparently continuing to trade with South Africa. Singapore trade statistics attempt to disguise this fact by lumping South Africa, Zimbabwe and Namibia with a large group of relatively minor African States—e.g. Comoro Is., Liberia, etc. Singapore imported a total of S$12 million worth of goods from this group in 1973—4. Prominent among the goods imported are many of South Africa's major export items—manufactured fertilizers, minerals, canned and prepared fish products, paper and paper board. In 1964 and 1965 Lee Kuan Yew was insisting that certain chemical products imported from South Africa were essential to Singapore industry. It is widely suspected that goods imported by Singapore from southern Africa are re-exported to Malaysia. Singapore exported S$201 million worth of goods to the "other African nations" group in 1973—4.
2.Earlier this year the Victorian division of Care attempted to investigate which South East Asian nations are permitting South African Airways to use their airspace on Saa's new Johannesburg—Seychelles—Hong Kong service. Care enquired whether negotiations had been entered into with White South African officials. While both the Thai and Indonesian Embassies vigorously denied that SAA flew into their countries' airspace, and declared their regimes' intention to uphold UN General Assembly resolutions, there was no reply whatsoever from the Malaysian High Commission.
3.Malaysian Government statistics show that South African investors are even being induced to Malaya with benefits such as tax holidays. For example, 1972 statistics quoted by "Asia Research Bulletin" (May 1973) show that companies with 'pioneer industry status' at that time had a total South African investment of M$1900.