Sanctions against South Africa: Activities of the 99th Congress

SANCTIONS AGAINST SOUTH AFRICA: ACTIVITIES OF THE 9 9 t h CONGRESS MAY 1 1 1988 GENERAL LIBFrnii.,., nconcztnpV Brenda h. Branaman Analyst i n African A f f a i r s F o r e i g n A f f a i r s and N a t i o n a l Defense D i v i s i o n February 13, 1987 T h e Congressional Research Service works exclusivelv for the Congress, conducting research, analyzing iegisiation. and providing information at the request of committees, Members, and their staffs. T h e Service makes such research available, without partisan bias, in many forms including studies, reports, compilations. digests. and background briefings. Upon request, CRS assists committees in analyzing legdative proposals and issues, and in assessing the possible effects ofxhese proposals and their alternatives. T h e Service's senior specialists and subject analysts are also avaiiable for personal consultations in their respective fields of expertise. ABSTRACT Thls paper discusses legislation proposed imposed s a n c t i o n s L ~ g n i n s tS o u t h A f r i c a and of a p a r t h e i d . in provided the 99th Congress which a s s i s t a n c ~t o t h e v i c t i m s I n a d d i t i o n t h e paper g i v e s background on s a n c t i o n s , e s p e c i a l l y t h e issue of disinvestment f o r American c o m p a n i e s i n S o u t h A f r i c a , and on t h e S u l l i v a n P r i n c i p l e s , a s e t o f f a i r employment p r a c t i c e s . ' CONTENTS SUMMARY ................................................................ .................................................................. THE ISSUE OF ECONOMIC SANCTIONS ........................................... 1955 LEGISLATION ...................................................... House Action ......................................................... BACKGROUND I 2 7 7 8 ........................................................... ................................................ LO ACTION ............................................................ 1 2 Senate Action Senate-House Conference EXECUTIVE 1 ............................................................... 14 .....................................................16 ................................. 17 .................................................... 1 7 ..............................................18 ............................................... 18 ..................................... 19 ....................................20 Sanctions Future Sanctions Provision for Termibation of Sanctions Reports to Congress MuLtiLateral Negotiations U.S. Policy o n Apartheid Assistance to Black South Africans State and Local Anti-Apartheid Laws S.4NCTLONS AGAINST SOUTH AFRICA: ACTIVITIES OF THE 9 9 t h CONGRESS L/ I n c r e a s i n g t u r m o i l i n South A f r i c a l e d t o l e g i s l a t i o n i n 1986 ( P . L . 440) t h a t imposed approved of many passage by sanctions of the renewing his Executive o r d e r ambassador t o that against that country. sanctions i n the b i l l Executive would impose l i m i t e d South A f r i c a . and a t t e m p t e d of orders Ptes ident 1985, then s a n c t i o n s , and to Reagan dis- prevent prmising a its new appointing a black t h e s e a c t i o n s , b o t h Houses Despite 99- of Co-ngress o v e r r o d e h i s v e t o and t h e . b i l l became l a w o n October 2 , 1986. BACKGROUND The c a t a l y s t f o r heightened A f r i c a n developments in c o n g r e s s i o n a l i n t e r e s t was a s e r i e s o f 1984-86. The unrest in South A f r i c a since South September 1984 began a s a r e a c t i o n by South A f r i c a n b l a c k s t o t h e e s t a b l i s h m e n t o f a new P a r l i a m e n t where blacks -- I n d i a n and mixed race citizens in South A f r i c a would s h a r e power w i t h w h i t e s on a n a t i o n a l l e v e l . -- but The South A f r i c a n government responded t o v i o l e n c e i n t h e b l a c k t o w n s h i p s b y d e c l a r i n g a o f emergency in spec i f i c although showing numbers o f blacks -I / T h i s archived . restraint areas in in July some was The c a s e s , reacted conducting peaceful report 1985. originally protests prepared state South A f r i c a n government strongly, a s well as not arresting as those Issue Brief large involved 85188, , in now violent clashes with police. Labor union leaders were h a r a s s e d , deaths in d e t e n t i o n h a v e o c c u r r e d , and m a s s i v e s e a r c h e s o f p r i v a t e homes i n t h e t o w n s l ~ i p s were c o n d u c t e d . The government its a l s o continued forced relocat ion policy, a l t h o u g h t h a t p o l i c y had b e e n r e v i e w e d and m o d i f i e d . Although t h e s t a t e o f emergency was l i f t e d i n e a r l y 1 9 8 6 , a new n a t i o n w i d e e m e r g e n c y was d e c l a r e d i n June of t h a t year. p r e s s r e s t r i c t i o n s were i s s u e d detained. and h u n d r e d s Under t h e new e m e r g e n c y , s e v e r e o f . ant i-apartheid activists L a t e r t h e number o f d e t e n t i o n s r o s e t o s e v e r a l t h o u s a n d . t h e townships responded w i t h r e n t and were Blacks i n s c h o o l b o y c o t t s , and bombing i n c i d e n t s increased. THE ISSUE OF ECONOMIC SANCTIONS U. S. d i r e c t investment ' / i n S o u t h A f r i c a t o t a l l e d $.I. 3 b i l l i o n a t t h e e n d o f 1 9 8 5 , a s u b s t a n t i a l d r o p from $ 2 . 6 b i l l i o n a t i t s peak i n 1 9 8 1 . b a n k l o a n s a t t h e end o f 1985 w e r e $ 3 . 2 b i l l i o n . percent of all American foreign investment, Outstanding T h i s i n v e s t m e n t was a b o u t but it was Africa because i t involves c r i t i c a l technology-intensive valuable to 1 South s e c t o r s o f t h e South African econany such a s t r a n s p o r t a t i o n , c m u n i c a t i o n s , e l e c t r o n i c equipment, c o m p u t e r s , n u c l e a r t e c h n o l o g y , and o i l r e f i n i n g and d i s t r i b u t i o n . I n 1 9 8 5 , U.S. n e r y , were v a l u e d $2.1 b i l l i o n , e x p o r t s t o South A f r i c a , m a i n l y c a p i t a l goods such a s machia t $1.2 b i l l i o n , and imports from were p r i r n a r i l y g o l d c o i n s ( K r u g e r r a n d s ) South A f r i c a , , diamonds, valued a t ferrochrome , and p l a t i n u m g r o u p m e t a l s . 2 1 F o r a d e t a i l e d d i s c u s s i o n o f v a r i o u s economic s a n c t i o n s , t h e i r e f f e c t i v e n e s s , and how t h e y m i g h t a f f e c t t h e U n i t e d S t a t e s , s e e IB85117, S o u t h African-U. S. Economic T i e s : Emerging I s s u e s , b y W i l l l i a m H . C o o p e r . See a l s o 1885078, S o u t h A f r i c a and t h e U.S. Banking Community, b y W a l t e r Eub a n k s . Yrlny o b s e r v e r s have the ef tsct 3rgue [ h a t &American f i n a n c i a l siipport~ng apartheid, of t h e r e E o r e withdraw a l l total disinvestnent investment of in that holdings U.S. and activities that country. there would U.S. in South Africa corporations should They r e a s o n damage the that such a African Ssxth economy and would d i s t a n c e t h e U n i t e d S t a t e s from t h e S o u t h A f r i c a n g o v e r n m e n t . T h i s would force the &ice eliminate discrimination m i n o r i t y g o v e r n m e n t t o move t o w a r d m a j o r i t y against blacks r e d i s t r i b u t e economic power, a c c o r d i n g and other nonwhites, and rule, eventuallv t o t h o s e who t a k e t h i s v i e w . The same a r g u m e n t i s made b y a d v o c a t e s f o r b r o a d e c o n o m i c s a n c t i o n s a g a i n s t S o u t h A f r i c a . It i s f u r t h e r argued t h a t South A f r i c a to change unless s a n c t i o n s a r e used t o n o n v i o l e n t l y p e r s u a d s its apartheid w i l l be i n e v i t a b l e i n South A f r i c a . t o a l l of policies, revolution and race conflict The c o n f l i c t w o u l d , i t i s a r g u e d , s p r e a d s o u t h e r n A f r i c a ; i t would b e i n t e r n a t i o n a l i z e d a n d c o u l d w e l l b e c m e a t h r e a t t o world peace. Many c r i t i c s o f t h e d i s i n v e s t m e n t p r o p o s a l s o r o f e c o n o m i c s a n c t i o n s a r g u e t h a t such a c t i o n s would h u r t would c a u s e a d e c l i n e i n j o b b l a c k s more severely than whites o p p o r t u n i t i e s f o r b l a c k s and would because increase the c o n s e r v a t i s m and r e p r e . s s i o n o f b l a c k s . white South African government's they Such i n t e r n a t i o n a l m e a s u r e s and n e g a t i v e i n t e r n a l c o n s e q u e n c e s w o u l d , i t i s a r g u e d , further p l a r i z e and inflame the s i t u a t i o n , and b l o o d y r e v o l u t i o n damaging t o a l l p a r t i e s . could w e l l stimulate a very S u p p o r t e r s o f s a n c t i o n s a n s w e r with t h e c l a i m t h a t a n y a d v e r s e e f f e c t s on b l a c k s would b e s h o r t - t e r m a n d would b e outweighed by t h e long-term U . S. c o r p o r a t i o n s gains. arguing against p r e s e n c e i n South t l f r i c a c a n be a codes of conduct developed by withdrawal f o r c e f o r change. say that continued They p o i n t t o t h e v a r i o u s internati.ona1 corporations, c o d e known a s t h e S u l l i v a n P r i n c i p l e s . their including tne U.S. There a r e other arguments against withdrawal to owned d i r e c t of investment and trade mbargoes. -- With respect wholly investment, businesses 1J.S. South A f r i c a c a n n o t p h y s i c a l l y remove t h e i r f a c i l i t i e s from t h e c o u n t r y , in but would have t o s e l l them t o o t h e r i n v e s t o r s , e i t h e r Western o r South A f r i c a n , o r t h e y would h e t a k e n o v e r by t h e South A f r i c a n governrne.nt. Vith regard t o i n v e s t m e n t s u c h a s p a r t i a l e q u i t y o w n e r s h i p s o r d e b t s e c u r i t i e s , a b u y e r would a l s o have t o be found. n a t i o n a l buyers With r e s p e c t t o e i t h e r form of i n v e s t m e n t , i f were f o u n d , the effect would n o t a p p e a r t o be g r e a t . imply l a r g e l o s s e s t o U.S. on South A f r i c a n p o l i t i c a l d e c i s i o n s I f b u y e r s were not f o u n d , d i s i n v e s t m e n t firms. inter- would Immediate d i s i n v e s t m e n t would be p o s s i b l e o n l y w i t h r e g a r d t o d r a f t a c c o u n t s i n South A f r i c a n banks. . -- T h e r e is a l a c k o f s u p p o r t f o r s a n c t i o n s from American a l l i e s . s a n c t i o n s would pose s e r i o u s economic problems for Britain, Imposing and t h e r e i s n o t g r e a t e n t h u s i a s m f o r w i t h d r a w a l i n F r a n c e , West Germany, and J a p a n . -- S a n c t i o n s t h a t produced a n economic d e c l i n e i n S o u t h A f r i c a would a l s o have a n a d v e r s e effect on South Africa's e c o n o m i c a l l y dependent neighbors. These c o u n t r i e s i n c l u d e Botswana, L e s o t h o , S w a z i l a n d , Namibia, Y o z a a b i q u e , and Zimbabwe. -- Economic s a n c t i o n s i n t h e p a s t have been i n e f f e c t i v e , i n p a r t b e c a u s e o f d i f f i c u l t i e s of enforcement. t i v e n e s s of t h e U.N. Advocates of this argument note the ineffec- s a n c t i o n s a g a i n s t Rhodesia and t h e a b s e n c e o f r e f o r m of a p a r t h e i d i n t h e wake of t h e i n t e r n a t i o n a l arms embargo and U.S. restrictions on bank l o a n s t o South A f r i c a . Despite t h e complexities i n v e s t m e n t o r t r a d e embargo, involved in a general Western withdrawal of c a l l s f o r economic s a n c t i o n s c o n t i n u e w i t h i n t h e United Nati,ons, c h i e f l y by T h i r d World c o u n t r i e s . S p e c i f i c s a n c t i o n s advocated by international anti-apartheid f o r c e s have i n c l u d e d an o i l embargo, a : $ p o r t s b o y c o t t , a c u l t u r a l b o y c o t t i n v o l v i n g e n t e r t a i n e r s , and a ban o n a i r t r a v e l t o S o u t h Afr i c a . I n S o u t h A f r i c a , b l a c k p o l i t i c a l a c t i v i s t s and some w h i ~ el i b e r a l s a d v o c a t e d i s i n v e s t m e n t of chants in the foreign corporation holdings. urban A prominent s u c h a c t i o n would r e s u l t is exception homeland and prominent i n v e s t m e n t on two Chief black Gatsha it (1) grounds: in a loss , Buthelezi activist. a n d mer- are Some f a v o r d i s i n v e s t n e n t , b u t areas a r e ambivalent. more c o n c e r n e d t h a t Black labor l e a d e r s the leader Buthelzzi would o f j o b s and b u s i n e s s . has slow t h e of opposed economic the KwaZulu Western dis- advancement of S o u t h A f r i c a n b l a c k s , a n d ( 2 ) i t would n o t b e e f f e c t i v e l y e n f o r c e d . The S o u t h African government in upgrade i t s . , i n t e r n a t i o n a l image sanctions. business, South African to recent years has actively counteract international represented by SACCOLA attempted pressure (south ' to for African C o n s u l t a t i v e Committee o n L a b o r ) and t h e Urban ~ c u n d a t i o n ,d e v e l o p e d i n 1 9 7 7 a c o d e o f employment p r a c t i c e s i m i l a r t o t h e c o d e s o f c o n d u c t d e v e l o p e d b y o t h e r c o u n t r i e s with businesses has also attempted in South A f r i c a . t o prepare contingency plans, among But t h e South Africarr, government f o r any e v e n t u a l b o y c o t t It o t h e r measures. has by preparing i n t e r n a l a l s o made advocacy o f dis- investment a crime. Anti-apartheid groups w i t h i n t h e United S t a t e s have campaigned v e s t m e n t o f American c o m p a n i e s and " d i v e s t m e n t " veral years, Students a t pri.ss for and the Ainerican movement universities Cives~ment o r doing business with appears have withdrawal South Africa. of to of shareholder stocks have launched grown campus university Similarly, for disin- in the protest holdings stockholder in late f o r se1970s. activities to corporations actions t e m p t e d t o Eorce i n d i v i d u a l c o r p o r a t i o n s t o r e d u c e o r t e r m i n a t e t h e i r have at- a c t i v i t i e s i n South A f r i c a . t i o n proposed i n Congress of supporting South Many a n t i - a p a r t h e i d g r o u p s have s u p p o t e d l e g i s l d - t o d i s t a n c e t h e United Africa's apartheid system. S t a t e s from t h e Other groups appearance have opposed congressional sanctions proposals. The Reagan Administration n e i t h e r encouraging nor has continued discouraging a American longstanding investment U.S. in policy Solith of Xfr i c a . The A d m i n i s t r a t i o n , however, d o e s s u p p o r t t h e S u l l i v a n P r i n c i p l e s , which were adopted i n 1977 on a v o l u n t a r y b a s i s by a number o f ducting business 284 U.S. i n South A f r i c a . corporations (plus one As o f O c t o b e r European U.S. 1985, corporations 178 o f c o r p o r a t i o n ) had con- approximately signed the code which c a l l s f o r : -- Nonsegregated work f a c i l i t i e s ; -- Equal and f a i r employment p r a c t i c e s ; --- -A rating Equal pay f o r e q u a l work; I n c r e a s e d number of b l a c k s , c o l o u r e d s , and A s i a n s i n management and s u p e r v i s o r y p o s i t i o n s ; and Improved q u a l i t y o f employees' l i v e s o u t s i d e t h e work environment. system c o n s i s t i n g of o f each s i g n a t o r y . n i n e s t a n d a r d s measures the r e l a t i v e progress According t o t h e "Ninth Report on t h e S i g n a t o r y Companies t o the Sullivan Principles," companies were making ( A r t h u r D. good p r o g r e s s , Little, Inc., October 25, 19851, 36 89 companies were making p r o g r e s s , and about the 21 needed t o be more a c t i v e . There has been some contoversy the Sullivan Principles and r o l e t h e y p l a y i n h e l p i n g t o j u s t i f y t h e c o n t i n u e d p r e s e n c e of American c o r p o rations in South A f r i c a . Some c r i t i c s p o i n t to the fact that all t h e U.S. f i r m s t o g e t h e r employ fewer workers t h a n many South A f r i c a n companies. c r i t i c s f e e l t h e code i s i n a d e q u a t e because i t Other f a i l s t o a d d r e s s t h e need f o r ix,li;ixil dr-' change. of t h e S u l l i v a n P r i n c i p l e s a r e h o p e f u l t h a t t h e y Dzfend.<r.s a pos i r ive m e a n s towar:i pe:lct?ful c h a n g e . 1955 LEGISLATION House A c t i o n The A n t i - A p a r t h e i d t h e United States to certain steps against Act the of 1460) e x p r e s s e d 1985 ( H . R . system of Pretoria. apartheid in the opposition South A f r i c a S p e c i f i c a l l y , banned bank and loans calls to and of for new i n v e s t m e n t i n South A f r i c a , banned t h e s a l e of South A f r i c a n K r u g e r r a n d s i n t h e U n i t a d S t a t e s , and b a n n e d e x p o r t s a l e s t o S o u t h A f r i c a o f c o m p u t e r s , s o f t w a r e , and g o o d s o r t e c h n o l o g y i n t e n d e d t o s e r v i c e computers. R e s t r i c t i o n s on bank l o a n s and. c o m p u t e r s a l e s would t a k e e f f e c t upon e n a c . t m e n t and r e m a i n i n f o r c e . until the c a p l e t e elimination s a l e s c o u l d b e waived were met b y t h e of apartheid. by t h e P r e s i d e n t if South A f r i c a n government. New i n v e s t m e n t one o f The eight waiver . and Krugerrand specified conditions would b e for one year b u t c o u l d b e e x t e n d e d f o r G-month p e r i o d s t h e r e a f t e r e a c h t i m e t h e s o u t h A f r i c a n government meets an a d d i t i o n a l c o n d i t i o n . W a i v e r s would r e q u i r e a p p r o v a l o f b o t h Houses o f C o n g r e s s . On t h e f l o o r two amendments w e r e a g r e e d t o : by R e p r e s e n t a t i v e Zschau, encouraged the H. President Arndt. No. 6 3 , to consult introduced with other c o u n t r i e s o n t h e i m p l e m e n t a t i o n o f f u t u r e a n t i - a p a r t h e i d m e a s u r e s and r e q u i t e s annual r e p o r t s from t h e P r e s i d e n t t o human r i g h t s i n C o n y e r s , would South A f r i c a . prohibit all H. Amdt nuclear e q u i p n e n t , m a t e r i a l , and t e c h n o l o g y . on t h e floor but e r e rejected. Congress . No. on t h e status o f a p a r t h e i d and 66, introduced by Representative assistance to South Africa, including S e v e r a l o t h e r amendments w e r e i n t r o d u c e d These i n c l u d e d m a n d a t o r y S u l l i v a n p r i n c i p l e s , i n v i o l a t i o n o f thnE ! u t were r e j e c t & . of t l i e section. S e v e r a l amendments were i n t r o d u c e d on t h e f l o o r T h e s e i n c l u d e d ( 1 ) i m p o s i t i o n o f s a n c t i o n s \>n s i g n a t o r i e s 1975 H e l s i n k i a c c o r d s , s u c h a s t h e S o v i e t U n i o n , i f t h e y d i d n o t crxnply w i t h H e l s i n k i ' s human r i g h t s s t a n d a r d s , ( 2 ) p r o h i b i t i o n a g a i n s t e c o n o m i c s a n c f o r South A f r i c a n b l a c k s , ( 3 ) exten- t i o n s i f t h e y would r e s u l t i n unemployment sion of sanctions to rights violations, the and and ( 4 ) d e c l a r a t i o n Soviet Union, countries that other encouraging the African countries terrorist National with serious a t t a c k s on himan Americans, C o n g r e s s (ANC) i s a terrorist o r g a n i z a t i o n and i m p o s i t i o n o f r e s t r i c t i o n s on i t s members. S. 995 was i n t r o d u c e d o n A p r i l 2 4 , 1 9 8 5 ; i t was r e f e r r e d t o t h e C o m m i t t e e on Foreign June 28, l i e u of Relations. (s. 1985 The Canmittee r e p o r t e d t h e b i l l On J u l y 1 1 , 1 9 8 5 , S e n a t e p a s s e d H . R . Rept. 99-99). t h i s measure, but with a n cnendment, substittlted the language of S. 995 Eor on 1460 i n the House language. Senate-House conference I n t h e S e n a t e - H o u s e c o n f e r e n c e o n H.R. were a c c e p t e d . on the export of The first was i m m e d i a t e c o m p u t e r s and 1460, t h r e e c a t e g o r i e s o f s a n c t i o n s sanctions which i n c l u d e d : (1) a ban. s o f t w a r e t o t h e South A f r i c a n p o l i c e o r o t h e r a g e n c i e s t h a t a d m i n i s t e r a p a r t h e i d ; ( 2 ) a b a n on t h e s a l e o f n u c l e a r e q u i p m e n t and t e c h n o l o g y u n t i l and ( 3 ) South Africa s i g n s t h e Nuclear Non-Proliferation Treaty; a b a n o n most new l o a n s t o t h e S o u t h ~ f r i c a ng o v e r n m e n t , e x c e p t l o a n s for educational, housing, o r health facilities available to all races would be allowed. The s e c o n d c a t e g o r y o f s a n c t i o n s was a n i m m e d i a t e b a n o n s a l e ' ~ fK r u g e r r a n d s which t h e P r e s i d e n t c o u l d made o n e of eight specified waive reforms. i f he determined t h a t Ttie waiver could S o u t h A f r i c a had only be applied if Congress approved it with a joint resolution. Every 6 months additional w a i v e r s c o u l d b e made with c o n g r e s s i o n a l a p p r o v a l i f more of t h e e i g h t r e f c - m s were i m p l e m e n t e d by South A f r i c a . The t h i r d c a t e g o r y of s a n c t i o n s would be imposed 12 months a f t e r e n a c t m e n t o f t h e b i l l i E t h e P r e s i d e n t d e t e r m i n e d t h a t South A f r i c a had n o t made s i g n i f i - c a n t p r o g r z s s t o w a r d e l irninat i n g a p a r t h e i d . choose from ( 1 ) a ban on new i n v e s t m e n t ; At that t irne t h e P r e s i d e n t (2) denial could of most-favored-nation t r a d i n g s t a t u s ; ( 3 ) p r o h i b i t i o n a g a i n s t i m p o r t i n g S o u t h A f r i c a n c o a l o r uranium into the United States; and ( 4 ) any o t h e r economic o r ~ o l i t i c a l s a n c t i o n s . Any a d d i t i o n a l s a n c t i o n s would resolution. on j o i n t have t o be approved by a c o n g r e s s i o n a l The P r e s i d e n t was a l s o r e q u i r e d t o n e g o t i a t e w i t h o t h e r c o u n t r i e s sanctions a g a i n s t South A f r i c a . Other p r o v i s i o n s of t h e conference version of the b i l l : -- -- A u t h o r i z e d t h e m i n t i n g o f new U.S. gold coins; Required t h a t a l l U.S. companies d o i n g b u s i n e s s i n S o u t h A f r i c a implement t h e S u l l i v a n P r i n c i p l e s o f f a i r l a b o r practices ; -- S e t p e n a l t i e s f o r v i o l a t i o n s of s a n c t i o n s ; -- A u t h o r i z e d $ 1 . 5 m i l l i o n a n n u a l l y f o r human r i g h t s o r g a n i z a t i o n s i n South A f r i c a , $350,000 o f t h e funds t o be used f o r l e g a l a s s i s t a n c e f o r p o l i t i c a l p r i s o n e r s ; -- Earmarked funds f o r s c h o l a r s h i p s f o r S o u t h A f r i c a n b l a c k s i n South A f r i c a ( $ 8 m i l l i o n i n FY86, $11 m i l l i o n i n FY87, $15 m i l l i o n e a c h y e a r t h e r e a f t e r ) ; -- D i r e c t e d t h e U.S. Export-Import Bank t o e n c o u r a g e t h e use of i t s f a c i l i t i e s by South A f r i c a n b l a c k owned b u s i n e s s e s ; -- D i r e c t e d t h e S e c r e t a r y o f S t a t e t o r e p o r t t o Cong r e s s on t h e h e a l t h c o n d i t i o n s i n South A f r i c a ' s home l a n d s ; and -- joint Directed t h e S e c r e t a r y o f S t a t e t o apply t h e Sull i v a n P r i n c i p l e s o f f a i r employment t o t h e U.S. Embassy i n South A f r i c a ' and t o c o n t r a c t s f o r employment s e r v i c e s o f South A f r i c a n s . The c o n f e r e n c e v e r s i o n o f t h e b i l l was c i t e d a s t h e A n t i - A p a r t h 2 i d Act of 1985. However, t o head off the passage of Aztisn t h e l e g i s l a t i o n , PrGsiclent Reagan s i g n e d an E x e c ~ i t i v eo r d e r , w i t h more l i m i t e d s a n c t i o n s . - EXECUTIVE ACTION 3 / 3n S e p t e m b e r 9 , i m p o s i n g 1i m i t e d 1985, P r e s i d e n t Reagan s i g n e d E x e c u t i v e O r d e r s a n c t i o n s a g a i n s t South A f r i c a . L2532 No. The E x e c u t i v e o r d e r h a s t h e following provisions : -- It bans new loans except those for education, housing, or health f a c i l i t i e s open t o a l l r a c e s ; --It bans the export of computers, computer software, and computer t e c h n o l o g y t o a p a r t h e i d implementing o f f i c e s o f t h e South A f r i c a n government ; -- It bans n u c l e a r - r e l a t ed exports defined as goods and would b e u s e d i n n u c l e a r p r o d u c t i o n o r u t i l i z a t i o n f a c i l i t i e s . technology that Export o f such g o o d s would b e a l l o w e d i f t h e y a r e n e e d e d f o r h e a l t h and s a f e t y o r i n t e r n a t i o n a l s a f e g u a r d programs ; -- It i m p l e m e n t s U.N. S e c u r i t y C o u n c i l R e s o l u t i o n 558 b a n n i n g t h e i m p o r t o f arms, ammunition, o r m i l i t a r y v e h i c l e s .produced i n South A s r i c a ; -- It orders a n end t o t r a d e a s s i s t a n c e t o U . S . companies d o i n g b u s i n e s s i n South A f r i c a i f t h e y do n o t a p p l y t h e S u l l i v a n P r i n c i p l e s ; -- I t d i r e c t s a l l U.S. a g e n c i e s with a c t i v i t i e s i n South A f r i c a t o a s s i s t black-owned b u s i n e s s e s ; 3 / F o r . an a n a l y s i s o f how U.S. p o l i c y a n d p r a c t i c e s h a v e b e e n a f f e c t e d b y p r e s i d e n t R e a g a n ' s s a n c t i o n s , s e e CRS R e p o r t No. 85-955 E , The Reagan A d m i n i s t r a t i o n Sanctions Against South A f r i c a : T h e i r P o t e n t i a l Economic I m p a c t , b y William H. Cooper. -- It .>r,ders U.S. Agr*emznt on o f f i c i a l s to consult Tariffs and Trade study of (GATT) on with o t h e r p a r t i e s a U.S., t o the General prohibition of Krugerrand .isles ; -- It orders -- It e s t a b l i s h e s an " a d v i s o r y a the feasibility committee" of minting t o recommend U.S. gold coins; ways t o e n c o u r a g e p e a c e f u l change i n South A f r i c a ; -- It p r o v i d e s f o r i n c r e a s e d funds f o r s c h o l a r s h i p s t o b l a c k South A f r i c a n s and f o r g r a n t s t o human r i g h t s o r g a n i z a t i o n s i n S o u t h A f r i c a , including legal assistance for p o l i t i c a l prisoners. On O c t o b e r 1, 1985, the President signed a second Executive order on S o u t h A f r i c a ( E x e c u t i v e O r d e r No. 12535) t h a t p r o h i b i t s t h e i m p o r t o f K r u g e r r a n d s i n t o t h e United States. President Reagan e x t e n d e d both Executive o r d e r s of 1385 on S e p t e m b e r 4 , 1986. F e e l i n g t h a t t h e s a n c t i o n s imposed b y t h e P r e s i d e n t ' s E x e c u t i v e o r d e r s w e r e not s u f f i c i e n t l y s t r i n g e n t , Congress responded t o r e c e n t e v e n t s i n South A f r i c a with l e g i s l a t i o n (P.L. 99-440) t h a t imposed s t r o n g e r s a n c t i o n s . 1986 LEGISLATION The C o m p r e h e n s i v e A n t i - A p a r t h e i d Act of 1986 ( P . L . was v e t o e d b y t h e P r e s i d e n t o n S e p t e m b e r 2 6 , 1 9 8 6 . 99-440, H.R. 4868) &/ The House o v e r r o d e h i s v e t o 4 8 6 8 was i n t r o d u c e d May 21, 1 9 8 6 ; i t was r e f e r r e d t o t h e 4/ H.R. c o m m i t t e e s on B a n k i n g , F i n a n c e and Urban ~ f f a i r s , o n F o r e i g n A f f a i r s , on P u b l i c Works and T r a n s p o r t a t i o n , and on Ways a n d Means. The House p a s s e d t h e Dellums Amendment on J u n e 1 8 , 1 9 8 6 , a s a s u b s t i t u t e f o r t h e l a n g u a g e o f H . R . 4868, a s o r i g i n a l l y i n t r o d u c e d . The Dellums amendment would h a v e p r o h i b i t e d a l l i n v e s t m e n t i n S o u t h A f r i c a and c u t o f f most t r a d e w i t h t h a t c o u n t r v , e x c e p t f o r i m p o r t o f s t r a t e g i c m i n e r a l s u n a v a i l a b l e from o t h e r s o u r c e s and e x p o r t t o S o u t h A f r i c a o f m e d i c i n e s , m e d i c a l s u p p l i e s , and f o o d . Two o t h e r s e c t i o n s o f t h e amendment b a n n i n g K r u g e r r a n d i m p o r t s and a i r t r a v e l w e r e i n c o r p o r a t e d i n t o t h e f i n a l A c t . - ( T e x t o f t h e Dellums amendment i s i n C o n g r e s s i o n a l R e c o r d , H3908.) On J u l y 30, 1 9 8 6 , t h e S e n a t e i n t r o d u c e d i t s v e r s i o n J u n e 1 8 , 1 9 8 6 , p. ( c o n t iriued) CRS- 1 4 313 t o 83; t h e S e n a t e o v e r r o d e t h e v e t o o n Octo- o n September 29 by a v o t e o f ber 2 , 1956, b y a v o t e of 7 8 t o 2 1 ; t h e b i l l became a l a w o n t h e same d a y . Tl-n_ Act h a s t h r e e m a j o r p r o v i s i o n s . i t p u t i n t o l a w U.S. South Africans. It imposed s a n c t i o n s a g a i n s t S o u t h A f r i c a , p o l i c y o n a p a r t h e i d , and i t p r o v i d e d a s s i " t a n c e F o l l o w i n g is a summary of t h e f i n a l p r o v i s i o n s of t o black the b i l l . Sanctions T i t l e 111 c o n t a i n s these codify ber 9 and the immediate provisions October 1, of 1985. sanctions against the President's There are 14 South Executive other Africa. orders in sanctions Five of of Septem- addition to these. S e c t i o n 301 bans t h e i m p o r t a t i o n of Krugerrands o t h e r South A f r i c a n g o l d c o i n s i n t o t h e United States. The i m p o r t a t i o n o f Soviet gold coins i n t o the U n i t e d S t a t e s i s banned by t i t l e V , s e c t i o n 510. S e c t i o n 302 b a n s t h e i m p o r t i n t o t h e United S t a t e s of arms, ammunition, m i l i t a r y v e h i c l e s , and t h e m a n u f a c t u r i n g d a t a f o r t h e s e weapons. S e c t i o n 303 b a n s t h e i m p o r t i n t o t h e U n i t e d African parastatals except for agricultural e n a c t m e n t and e x c e p t , f o r s t r a t e g i c m a t e r i a l s S t a t e s of p r o d u c t s products for 12 of South months after f o r which t h e r e a r e no r e l i a b l e suppliers. S e c t i o n 304 b a n s t h e e x p o r t of c o m p u t e r s , c o m p u t e r s o f t w a r e , and g o o d s and t e c h n o l o g y t o t h e S o u t h A f r i c a n m i l i t a r y , p o l i c e , and o t h e r a p a r t h e i d e n f o r c i n g ( c o n t i n u e d ) of t h e Comprehensive A n t i - A p a r t h e i d Act ( S . 2 7 0 1 ) ; i t was r e f e r r e d t o t h e Committee on F o r e i g n R e l a t i o n s . The S e n a t e b i l l was r e p o r t e d t o t h e S e n a t e ( S . R e p t . 99-370) on August 6 , 1986. The t e x t of S. 2701 was i n s e r t e d i n H.R. 4868 a s i t p a s s e d t h e S e n a t e on August 1 5 , 1 9 8 6 . The August 1 5 v e r s i o n o f S . 2701/H.R. 4868 c o n t a i n e d a number of a d d i t i o n a l s a n c t t o n s t h a t were n o t i n S. 2701 a s i t was i n t r o d u c e d . C a n p u t r r s may b e e x p o r t e d o n l y i f t h e r e i s an end u s e v e r i f i c a ~ i o n agencies. t h a t t h e y w i l l not b e d i v e r t e d t o p r o h i b i t e d a g e n c i e s . S e c t i o n 305 b a n s l o a n s t o t h e South A f r i c a n government o r g o v e r n m e n t - c . n e d e n t i t i e s unless purposes. the Loans loans to the ace private for educational, sector are housing, banned under and hmanitsrian section 310, which S t a t e s and South p r o h i b i t s new i n v e s t m e n t s i n South A f r i c a . S e c t i o n 306 b a n s a i r t r a n s p o r t a t i o n b e t w e n t h e A f r i c a v i a U.S. and 1947 a i r minates a South A f r i c a n travel aircraft agreement Uriiced 10 d a y s a f t e r between the two enactment countries. and t e r Fnergency landings are allowed. S e c t i o n 307 bans t h e e x p o r t t o South A f r i c a of n u c l e a r m a t e r i a l , component parts, items, substances, safety-related i t e m s such a s pacemakers which c o n t a i n s m a l l amounts o f p l u t o - nim. or This s e c t i o n provides a party to the technical data, The exception f o r t h e ban t o b e l i f t e d i f Non-Proliferation Treaty or maintains Energy Agency s a f e g u a r d s on a l l n u c l e a r a c t i v i t i e s is health and South A f r i c a becomes International ~tomic . S e c t i o n 308 p r o h i b i t s U.S. banks from h o l d i n g d e p o s i t s o f t h e S o u t h A f r i c a n government o r parastatals except for diplomatic o r consular purposes. This p r o v i s i o n i s e f f e c t i v e 4 5 days a f t e r enactment. S e c t i o n 309 b a n s t h e import of South A f r i c a n uranium o r e , uranium o x i d e , c o a l , and t e x t i l e s , e f E e c t i v e 90 d a y s a f t e r e n a c t m e n t . S e c t i o n 310 p r o h i b i t s new i n v e s t m e n t a f t e r enactment, Africans but this does not i n South A f r i c a , apply to firms owned e f f e c t i v e 45 d a y s by black South . Section 313 t e r m i n a t e s t h e 1946 U.S.-South African t r e a t y t h a t prevents b u s i n e s s e s from paying t a x e s on t h e same income t o b o t h c o u n t r i e s . S e c r i o n 314 p r o h i b i t s U.S. .?fri c a n p a r a s l a t a l s purposes f o r goods Government a g e n c i e s from c o n t r a c t i n g w i t h S o u t n or services except f o r d i p l o m a t i c and consular . S e c t i o n s 315 and 316 b a n t h e u s e o f U.S. Govermnent f u n d s t o p r o m o t e t o u r i s m i n o r t o s u b s i d i z e t r a d e with South A f r i c a . S e c t i o n s 317 and 3 1 8 b a n t h e e x p o r t t o S o u t h A f r i c a o f .nunitions list except for items t h e President determines i t e m s an t h e U.S. are being exported o n l y f o r c m m e r c i a l p u r p o s e s and w i l l n o t b e used b y t h e S o u t h A f r i c a n m i l i t a r y and p o l i c e . The P r e s i d e n t i s r e q u i r e d t o n o t i f y C o n g r e s s o f a n y s a l e s a l l o w e d and C o n g r s s s h a s 30 d a y s t o d i s a p p r o v e b y j o i n t r e s o l u t i o n . S e c t i o n 319 b a n s t h e i m p a r t a t i o n i n t o t h e U n i t e d agricultural products, but title XI, section S t a t e s of 2 1 2 aLlows the South A f r i c a n export of U.S. a g r i c u l t u r a l goods t o South A f r i c a . S e c t i o n 3 2 0 b a n s t h e i m p o r t a t i o n o f S o u t h A f r i c a n i r o n and s t e e l i n t o t h e United S t a t e s . S e c t i o n 3 2 1 b a n s t h e e x p o r t o f o i l and p e t r o l e u m p r o d u c t s t o S o u t h A f r i c a . S e c t i o n 3 2 2 p r o h i b i t s U.S. t l y , with the agencies fran cooperating, d i r e c t l y o r indirec- S o u t h A f r i c a armed forces except a c t i v i t i e s f o r t h e purpose of c o l l e c t i n g i n t e l l i g e n c e are allowed. S e c t i o n 3 2 3 b a n s t h e i m p o r t a t i o n o f S o u t h A f r i c a n s u g a r and p r o d u c t s and t r a n s f e r s S o u t h ~ f r i c a ' sp a r t o f t h e U.S. sugar-rllated sugar import q u o t a t o Title V, s e c t i o n 501 r e - the Philippines. Future Sanctions T i t l e V provides for possible quires that the President report future sanctions. to Congress one year after enactment and e v e r y 3 , a r ~ h e r e a f t + ron t h e p r o g r e s s o f t h e S o u t h A f r i c a n g o v e r r ~ m e x t i n e n d i n g a p a r t h e i d and est..lb!isiiing a nonracial d e m o c r a ~ y . If s i g n i f i c a n t progress has n o t b e e n m a d e , he m a y recornmend o n e o r more o f t h e f o l l o w i n g s a n c t i o n s : ;! >an o n t h e i m p o r t a t i o n o f d i a m o n d s from S o u t h A f r i c a ; a b a n o n t h e i m p o r t a t i o n o f s t r a t e g i c m i n e r a l s ; and a p r o h i b i t i o n o n U.S. m i l i t a r y a s s i s t a n c e Lo c o u n t r i e s v i o l a t i n g t h e i n t e r n a t i o n a l anns e m b a r g o a g a i n s t S o u t h A f r i c a . Provision f o r Termination of Sanctions S e c t i o n 311 p r o v i d e s f o r t h e t e r m i n a t i o n o f t h e i m m e d i a t e s a n c t i o n s ( u n d e r t i t l e L I T ) o r f u t u r e s a n c t i o n s ( u n d e r t i t l e V) i f : ( 1 ) N e l s o n Mandela and o t h e r p o l i t i c a l p r i s o n e r s a r e r e l e a s e d , ( 2 ) t h e s t a t e o f e m e r g e n c y i s l i f t e d and a l l d e t a i n e e s u n d e r t h e emergency a r e r e l e a s e d , ( 3 ) d e m o c r a t i c p o l i t i c a l p a r t i e s a r e unbanned, ( 4 ) t h e Group A r e a s and P o p u l a t i o n R e g i s t r a t i o n A c t s a r e r e p e a l e d , and ( 5 ) t h e S o u t h A f r i c a n g o v e r n m e n t p u b l i c l y c o m m i t s i t s e l f t o good f a i t h n e g o t i a t i o n s w i t h t r u l y r e p r e s e n t a t i v e members o f t h e b l a c k m a j o r i t y without preconditions. The P r e s i d e n t may suspend o r modify any of the sanctions i f Nelson Xandela and o t h e r p o l i t i c a l p r i s o n e r s a r e r e l e a s e d and any t h r e e o f t h e f o u r r e m a i n i n g c o n d i t i o n s a r e met. C o n g r e s s may d i s a p p r o v e o f a n y P r e s i d e n t i a l m o d i f i c a t i o n by joint resolution. R e p o r t s To C o n g r e s s Title V, sections 502-509 requires the fo1lowing reports -- H e a l t h c o n d i t i o n s i n t h e " h o m e l a n d s " o f S o u t h A f r i c a , -- S t r a t e g i c m i n e r a l s impcxrted from S o u t h A f r i c a , to Congress on: CRS -1 8 - - 1J.S. assistance in southern Africa and what steps n ie tiken t s e x p a n d t h e t r a d e , p r i v a t e i n v e s t m e n t and t r a n s p o r t n e t m r k o f landlocked c o u n t r i e s in t h a t a r e a , o t h e r i n d u s t r i a l i z e d democrac i e s , -- Deposit a c c o u n t s i n 3 . S . b a n k s h e l d by S o u t h A f r i c a n nationals -- , V i o l a t i o n s o f t h e i n t e r n a t i o n a l arms embargo on South A f r i c a imposed b y U . N . S e c u r i t y C o u n c i l R e s o l u t i o n 4 1 8 , -- Communist a c t i v i t i e s i n S o u t h A f r i c a , and -- U.S. investigation of allegations that o p p o s i t i o n g r o u p s may h a v e v i o l a t e d t h e Act. t h e ANC o r o t h e r A f r c c a n F o r e i g n Agents R e g i s t r a t i o n X u l t i l a t e r a l Neeot i a t i o n s s e c t i o n 401 g i v e s t h e P r e s i d e n t a u t h o r i t y t o n e g o t i a t e Title IV, interna- t i o n a l a g r e e m e n t s i m p o s i n g s a n c t i o n s on S o u t h A f r i c a w i t h o t h e r c o u n t r i e s , and h e i s r e q u i r e d t o r e p o r t t o Congress on t h e on t h e n e g o t i a t i o n s . i s a l s o g i v e n t h e power t o m o d i f y U.S. f o r e i g n governments i f their policies commercial a d v a n t a g e of p r o h i b i t i o n s i n South A f r i c a . o f U.S. a g a i n s t U.S. allow t h e i r firms t o take firms s e l l i n g t h e i r products S e c t i o n 4 0 3 p r o v i d e s t h a t a n y f o r e i g n company t a k i n g a d v a n t a g e s a n c t i o n s t o s u p p l a n t U.S. f o r damages i n U.S. U.S. such i n t e r n a - S e c t i o n 4 0 2 p r o v i d e s t h e P r e s i d e n t w i t h t h e power t o r e t a l - t i o n a l agreements. i a t e against s a n c t i o n s t o conEorm w i t h The P r e s i d e n t businesses i n S o u t h A f r i c a would b e l i a b l e courts. P o l i c y on A p a r t h e i d Tirle 1 s e t s f o r t h U.S. p l a i n s U.S. p o l i c y on a p a r t h e i d . p o l i c y toward v i o l e n c e o r t e r r o r i s m , of the p r a c t i c e of "necklacing," T i t l e 111, s e c t i o n 312 exi n c l u d i n g c o n g r e s s i o n a l views a method by w h i c h some t o w n s h i p b l a c k s e x e c u t e 4Lacks '1,;iniis :I , 3.LLeged t o llave c o o p e r a t e d w i t h S o u t h A f r i c a n a u t h o r i t i e s . . ~ n d Eeec are then a houui; grlsoline-filled tire The v i c t i s ' s is placed around :'?'c :k ~ n , j s ? L : ? f i r e . A s s i s t a n c e t o Black South A f r i c a n s T i t l e 11 p r o v i d e s f o r a s s i s t a n c e t o v i c t i m s o f a p a r t h e i d . S e c t i o n 201 e a r x a r k s $ 4 m i l l i o n a n n u a l l y for FY87, FY88, and FY89 for s c h o l a r s h i p s f o r bLsck S o u t h A f r i c a n s . S e c t i o n 202 p r o v i d e s $ 1 . 5 each year thereaEter For m i l l i o n of nongovernmental n o t i n g an e n d t o a p a r t h e i d . Of t h e Human R i g h t s Fund organizations i n i n FY86 a n d S o u t h A f r i c a pro- t h a t amount $ 5 0 0 , 0 0 0 i s t o b e u s e d f o r d i r e c t l e ~ a la s ' s i s t a n c e and o t h e r a c t i v i t i e s w h i c h h e l p p o l i t i c a l d e t a i n e e s , p o l i t i c a l p r i s o n e r s and t h e i r f a m i l i e s . S e c t i o n 2 0 3 p r o v i d e s t h a t 1J.S. Government a g e n c i e s a s s i s t black-owned busi- nesses i n South Africa. S e c t i o n 2 0 4 r e q u i r e s t h e E x p o r t - I m p o r t Bank t o e n c o u r a g e t h e u s e o f i t s f a c i l i t i e s by b l a c k S o u t h A f r i c a n b u s i n e s s e s . S e c t i o n 205 r e q u i r e s U.S. Government a g e n c i e s e m p l o y i n g S o u t h A f r i c a n s t o follow th* S u l l i v a n P r i n c i p l e s . S e c t i o n 206 p r o v i d e s t h a t t h e U.S. b l a c k South African employees and Government l e a s e o r buy h o u s i n g f o r i t s provides $10 million for FY87 for the program. S e c t i o n 2 0 7 r e q u i r e s a 1 1 U.S. c o a p a n i e s w i t h 25 o r n o r e e m p l o y e e s i n S o u t h A f r i c a t o i a p l e m e n t t h e S u l l i v a n P r i n c i p l e s and p r o v i d e s t h a t no U.S. assist- a n c e i n e x p o r t m a r k e t i n g be g i v e n t o c o m p a n i e s who d o n o t i m p l e q e n t t h e p r i n c i ples. S e c t i o n 205 l i s t s t h e seven Sullivan Principles which U.S. companies and ?he U.S. Government must follow and provides that the President nay conwith private groups to assist him in aonitocing the cornpli,3nce with the !:r.:t ~ 7 l - ip l e s . i ~ Section prohibits assistance to groups which have meqbers ~ h ohave violated human rights. Section 2 l f 3 authorizes the use of the African Emerqency Reserve to aeet f a o d shortages in southern Africa. -: . : - I , section 511 earmarks $40 million for FY87 and each f iscai year thereafter for economic aid to disadvantaged South Africans. $ 3 million each year would Of that amount be used for training of trade unionists. funds cannot be used by organizations These financed or controlled by the Sout'n African government. State and Lccal Anti-Aoartheid Laws Title VZ, section 606 gives state and local governrnents 90 days to bring their anti-apartheid laws into conformity with whatever the Federal Government does, or face the possible loss of Federal Funds.