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Fuel for Apartheid 138 Embargo Apartheid's Oil Secrets Revealed Embargo Apartheid's Oil Secrets Revealed Shipping Research Bureau edited by Richard Hengeveld and Jaap Rodenburg x x AMSTERDAM UNIVERSITY PRESS Cover design: Pro Studio, Ferry Lindeman. For counterfeit stamps reproduced on cover, see page 118. Typesetting: A-zet, Leiden ISBN 90 5356 135 8 © Amsterdam University Press, Amsterdam 1995 All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, record ing or otherwise), without the prior written permission of both the copyright owner and the editors of this book. Acknowledgements - We are grateful to the following for their assistance: Martin Bai ley, David Craine, Kevin Davie, Frene Ginwala and ANC Johannesburg Research staff, John van Schaik, Oystein Gudim, H., Tom de Quaasteniet, Paul Gabriner, Huguette Mackay, Iris Maher, Liesbeth Poortman, Peter Sluiter, Erik van den Bergh and Carry van Lakerveld. Special thanks go to Keith Pieterse who assisted the editors and provided translations. We thank the author and Faber and Faber Ltd Publishers (London) for their permission to include a quote from Andr6 Brink's novel States of Emergenc-v on page 106. This publication was made possible through the support of the funding partners of the Shipping Research Bureau (page 375) and the Association of European Parliamentarians for (Southern) Africa (AWEPA). Interviews - The following list includes persons quoted in the first part of this book, except for those who wished to remain anonymous. Members and former members of the Shipping Research Bureau board and staff as well as Martin Bailey (London) and Bernard Rivers (New York) have been quoted on the basis of correspondence and discussions over several years. Interviews were conducted by the SRB in the places listed, unless otherwise indicated. Henrik Berlau, Amsterdam 26 January 1994: Kevin Davie, Johannesburg 6 June 1994, Frene Ginwala, London 8 June 1993, Johannesburg 9 June 1994; Aboobaker Ismail, Johannesburg 7 June 1994, telephone (Pretoria/Johannesburg) 22 December 1994 and 29 January 1995: Brian Lapping, telephone (London) 18 November 1994; Gwen Lister, letter 23 November 1993 and telephone (Windhoek) 3 December 1993: Zolile Magugu, Amsterdam 30 September 1992: John Malcomess, Amsterdam 14 May 1994; David Moisi, November 1993 [Cape Town, by Richard Blake/Carry van Lakerveld], Jo hannesburg II June 1994, telephone (Cape Town) 19 October 1994: Per Anders Nordengen, January 1995 [Oslo, by Oystein Gudim]; Aziz Pahad, Pretoria 9 June 1994: Joe Slovo, written interview (Pretoria) 7 November 1994: Jacob Zuma, Durban 10 June 1994. Tapes/transcripts are kept in the SRB archives (Amsterdam). Copies of the video registration of the Moisi interview by Blake and Van Lakerveld are kept at the Mayibuye Centre (Cape Town) and the Amsterdam Historical Museum. Illustrations and Picture Credits - The responsibility for the selection of illustrations used in this book rests with the editors. Picture credits: American Labor Education Center 331 : Christien Boeles 27, 248; Kare Bondesen/Aftenposten 286; Stefano Cagnoni/Report 107; Financial Times 68; Frank Greiner 23; Hans Hoffmann/FNV Magazine 49; Donna Katzin 328; The Mercury 85, 252; Kok Nam/AIM 236; Richard Hengeveld 133: Mark Peters/The Star 34; Jan Stegeman 46, 108, 317; United Nations/SRB xii; Arend van Dam 19; Ronny Willems 148; Bert Zijlma 58. Contents Preface by President Nelson R. Mandela Ix Glossary and Abbreviations x South African Oil/Fuel Infrastructure xii Introduction I PART A Embargo: Apartheid's Oil Secrets Revealed 6 'The Last Peaceful Weapon' 9 The Spear of the Nation 25 First Steps of the Shipping Research Bureau 56 Secrecy Is Essential 73 South Africa's Lifeline 87 The ANC, the Oil Embargo and the SRB 95 Monitoring Invisible Trade 113 Marc Rich: Fuel for Apartheid 138 Shipping Companies 160 Embargo Politics 175 The Impact of the Oil Embargo 194 Annex: Fifteen Years of Embargo Violations 206 PART B Enforcing Oil Sanctions: A Comparison of the Rhodesian and South African Embargoes 225 Martin Bailey The United Nations and the Oil Embargo against South Africa 234 Amer Araim Viii CONTENTS Apartheid and the Cost of Energy Self-Sufficiency 242 Kevin Davie Drive Now And Pay Forever - The Apartheid Way 254 Clive Scholtz Putting Money over Mouth, Profit over Principle: Arab and Iranian Oil Sales to South Africa 269 Tom de Quaasteniet and Paul Aarts A Defeat for the Shipping Lobby? The Norwegian Experience 280 Oystein Gudim Maritime Unions Against Apartheid 296 Henrik Berlau The Dutch Campaign against Shell 306 Erik van den Bergh Stop Press! 325 Anatomy of a Boycott: The Royal Dutch/Shell Campaign in the US 327 Donna Katzin The Oil Embargo and the Intellectual: The Academic Debate on Economic Sanctions against South Africa 338 Peter van Bergeijk Notes 347 Annex: Shipping Research Bureau 1980-1995 373 Select Bibliography on the Oil Embargo against South Africa 377 Index 391 Preface by President Nelson Mandela The awareness of history is critical in managing the present and in building the future. The year 1994 witnessed the end of the evil system of apartheid, institutional racism and white minority rule. South Africans have embarked on a course towards the reconstruction of a damaged society and national reconciliation. However, to heal the wounds of the past, that past has to be known. Apartheid has gone, but its legacy is still with us. The authors of this book help us to address one aspect of our past. Oil is a strategic commodity, and the ability to import crude oil was vital for the survival of apartheid. Without adequate supplies, apartheid's aggressive and repressive military and security system could not function. Imports of oil were also necessary to maintain the South African economy. Rich as South Africa is in natural resources, the failure to find local oil deposits was the Achilles heel of apartheid: The oil embargo was thus one of the most important sanctions against the apartheid re gime. This book is the first one to bring out the seminal role of the ANC and particularly the late President Oliver Tambo in promoting this campaign. At the height of the sanctions movement in 1986, Tambo said in a speech to the Royal Commonwealth Society in Lon don: 'We believe that the time has come for an end to the interminable debate about the effectiveness or non-effectiveness of sanctions. Practice itself has answered this ques tion.' The book before us comes straight from the heart of the international campaign for the oil embargo, with contributions from the Shipping Research Bureau, the United Nations and several other quarters that have for many years been dedicated to the embargo. It proves that oil sanctions helped tremendously in the efforts to end apartheid. It also allows an insight into the detrimental effects of decades of apartheid management of the energy sector. I believe that this book is a useful input to the 'interminable debate' on sanctions as an instrument of peaceful international pressure. This experience, therefore, has had an impact beyond the boundaries of South Africa. But I do not regard this as merely a scholarly exercise. It is my firm conviction that a book such as this is important. For it tells the story of the tireless efforts to expose the clandes tine oil trade to South Africa, and of the sacrifices by South African combatants in their missions against strategic oil installations - a story that has hitherto remained largely untold. It is also a good story. Nelson Mandela President of the Republic of South Africa Glossary and Abbreviations I billion = 1,000 million $ = US dollar, unless otherwise stated R = South African rand; RI (commercial rate) dropped from $1.28 in 1980 to $0.45 in 1985 and below $0.40 in 1989 ton = metric ton (1,000 kilos or 2,205 Ibs); I long ton = 1.016 mt; I mt of crude oil (average gravity) = 7.33 barrels of 159 litres AAPSO Afro-Asian People's Solidarity Organisation AFL-CIO American Federation of Labor and Congress of Industrial Organizations ANC African National Congress of South Africa AVU Afrikaner Volksunie AWEPAA Association of West European Parliamentarians for Action Against Apart heid - now AWEPA European Parliamentarians for (Southern) Africa b/d barrels per day B/L Bill of Lading: receipt for goods shipped on board a vessel b/o bulk/oil carrier (see OBO) BOSS Bureau of State Security CEF Central Energy Fund COCOM Co-ordinating Committee (regarding export restrictions on strategic goods to East bloc countries) COSATU Congress of South African Trade Unions CP Communist Party CWIU Chemical Workers Industrial Union DP Democratic Party dwt deadweight tonnage: weight in metric tons that a ship can carry; 90-95 per cent of this is the actual cargo capacity, the remainder is accounted for by bunker fuel, stores, etc. EC European Community ECOSOC United Nations Economic and Social Council ETA expected time of arrival Foc flag of convenience FRELIMO Frente da Libertagdo de Moqambique: Mozambican Liberation Front GATT General Agreement on Tariffs and Trade HCSA Holland Committee on Southern Africa (Komitee Zuidelijk Afrika, KZA) ICCR Interfaith Center on Corporate Responsibility ICFTU International Confederation of Free Trade Unions lEA International Energy Agency ILO International Labour Organisation ITF International Transport Workers' Federation GLOSSARY AND ABBREVIATIONS LO Landsorganisasjonen
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