25¢
also oublished by NEW ENGLAND FREE PRESS 791 Tremont St. Boston, Mass. 02118
The Afra R ch GtDup IIelllOllelftMt r-.:b end educetlon· proJect tNt '-on -.IyzIng tile United ~ ImperieIIit penetretlon of Africa The group hopei to pnHnCIte e IlION Informed OD.-mwith and ~"nit the role the US pIeys In the domI- _ion of Africe end to contrbite to ng end extending en enti-imperilllilt end entkIIdIt co...... within rnowmenta for IOCieI ~ The group. wents to e- from people or orgInl8tlo,. llIIith lilnller .-ell Int...... For e lilt of..11Ib1e pubIJce. do.. Including "Armed Struggle In Sout.... Afrftr:tf' (2Oc:) end "How Herverd Ru...• ($1). write P.O. Box 213. Cembrldge. M... 021:11. !5¢ The Republic of South Africa is the industrial giant of the African continent. South Africa produces 80% of the continent's coal output, generates and consumes double tne electrical power of the rest of the continent and posses es half of Africa's motor vehicles. To South Africa go 1/3 of US exports to Africa and over 60% of American foreign investment on the continent. South Africa's e~onomir. prosperity benefits only a small minority of the country's population. The economic development of the Republic resulted not only from exploitation of the country's bountiful natural and mineral resources, but also through the exploitation and subjugation of the great majority of South Africans themselves. The I Eurooean' (white) minority has achieved fantastic'wealth at the expense of the African (and other non-white) ENGLAND FREE PRESS majority. Tremont st. on, Mass. 02118 The white population (19%) owns 87% of the land surface. The non-white majority (com prising 11 million Africans, 1 1/2 million 'Coloureds ' and 500,000 Indians) owns the least productive sections of the land (the remaining 13%). White per capita income is approximately eleven times that'of Africans. The effect of such discrepencies in economic status are reflected in other figures. White infant mortality is 27 per 1000; African infant mortality ranges from 100-200 per 1000 in the cities to 400 per 1000 in the rural areas. These inequities developed from the fountainhead of transplanted. European capital ism and racism. From this developed the pol itical and economic doctrine of apartheid... the institutionalization of white privilege and prosperity maintained through the subjugation and exploitation of the African majority.
1. surplus is removed from Powers behind Apartheid examines the align form of corporate profi1 ment of economic and political forces in the natural resources of thE development of South African fascism. In a commodities in the POSSE straightforward manner Fasulo analyses the national corporatjons. economic and political positions of the two this unequal relationshi major groups in the economy: foreign or early as 1958 domestic ( interryational capital and national-state topped 64% ...the exploi1 capital. Though dated, Powers behind Apartheid resulting in super-prof; provides a sound empirical and historical international capitalisrr background to the political economy of South 87% of net earnings frorr Africa. . Tropi cal Afri ca are repa corporate profits. In S The relationship between national capjtalist between the white minori development and the operations of international capitalism has seen the· imperialism, briefly mentioned by Fasulo, is of the country. central to an understanding of South African economic development. Beginninq in the 20's Beginning in the 50's an and consolidating after the victory of the post-Sharpeville era (in Nationalist Party in 1948 in the general men and women were massa "elect~ons", ~ationa~ist-state capital forged secondary manufacturing a worklng all lance wlth Western imperialist mineral extraction as th interests in the exploitation of the African South African economy. majorit~. 9nce this relationship is recognised, has contributed most to apartheld (In theory and practice) takes on industrialization. For a broader meaning than the usual narrow def government selected moto inition that accompanies it. Rather than a and assembly as the inst ?octrin~ pecul~ar to Afrikaner (Dutch) ex per industrial sophisticatio comi ng decade when gold I ~ence, lts n~tloryalist as~ects can be demyst lfied reveallng ltS organlc connection with decline in significance. the operations of international imperialism. and Chrystl er produce ha' In South Africa national-state capitalist motor vehicles and have' jevelopment, based on white supremacy, was this criti ca 1 economi c '( fostered by imperialism; in Tropical Africa investments foster rapid' ;uch development along capitalist lines is there are now 196 1oca1 ~ )rohibited by imperialist eXPloitation. automotive components mar =oreign capital joined local capital in a the massive injection of lertical and horizontal inteqration of technical expertise is pl 50u~h Africa's economic fabric: in Tropical South African-American a1 ~frl~a enforced economic balkanization, enclaves capture the export marke1 )f mlneral extraction and 'satellite' economies Though outside the scooe ~emain the product of foreign economic penetra-' American-backed South AfT tion. An international 'master-servant' the basis of the racist-; ~elationship is established; the economic stem the growing tide of in Southern Africa. surplus is removed from the neo-colony in the lines the a1ign form of corporate profits while the human and .1 forces in the natural resources of the African states remain fascism. In a commodities in the possession of multi analyses the national corporatjons. For white South Africa ons of the two this unequal relationship does not exist. As foreign or early as 1958 domestic dividend retention ional-state topped 64% ...the exploitation of African labor s behind Apartheid resulting in super-profits to both local and d historical international capitalism. In marked contrast conomy of South 87% of net earnings from US investments in . Tropical Africa are repatriated in the form of corporate profits. In South Africa the alliance !ma1 capitalist between the white minority and international ) of international capitalism has seen the rapid industrialization j by Fasulo, is of the country. F South Afri can inq in the 20's Beginning in the 50's and especially in the ictory of the post-Sharpevi11e era (in March 1960 68 African :he general men and women were massacred at Sharpevi11e) ! capital forged secondary manufacturing has come to replace' on imperi alist mineral extraction as the major sector in the of the African South African economy. It has been the US which hip is recognised, has contributed most to the Republic's advanced lice) takes on industrialization. For example, the South African al narrow def government selected motor vehicle manufacture Rather than a and assembly as the instrument for achieving crucial (Dutch) ex per industrial sophistication and growth in the can be demyst coming decade when gold mining is expected to nnection with decline in significance. General M0tors, Ford 1 imperi ali sm. and Chrystler produce half of South Africa's capitalist motor vehicles and have invested $300 million in Jremacy, was this critical economic 'growth pOle'. Such ~pica1 Africa investments foster rapid industrial qrowth ... ist lines is there are now 196 local South African firms in litation. automotive components manufacture. Furthermore, lpital in a the massive injection of American capital and tti on of technical expertise is playing a major role in in Tropical South African-American attempts to penetrate and ization, enclaves capture the export markets of Tropical Africa. Thou~h outside the SCODe of this reprint, 11ite' economies, Amerlcan-backed South African expansionism forms cdnomic penetra the basis of the racist-imperialist attempt to -servant' stem the growing tide of revolutionary struggle e economi c in Southern Africa. Neither of the two major economic groupings in South Africa envision the development of a multi racial, democratic society. Super-profits and white privilege depend upon the maintenance of The MininA' Empires white domination and the continue~ exploitation ~t is well known that the 0Ppl of black (Africa) labor. The reformist thesis helmer ~mpire is very rich and poWI that economic rationality (need for an African ful. It IS more difficult to say jl consumer market etc) urges the polity beyond its how rich and powerful Anglo-Am racial ideology (aRartheid) [an argument favored Ican IS. by apologists for merican corporate investment H we only look at the assets in South Africa] does not recognise that in the the Ang,lo-American Corporation self, we get a figure of about 50 n' process of industrialization countries have lion pounds. A clearer picture II adopted not one, but three broad political forms: given by Newsweek on Novemt communism, fascism and liberal democracy. Needless 24, 1958, in an article which Sl to say neither communism nor liberal democracy that Harry Oppenheimer "presic characterise the South African state. The only over an empire headed by De Bel Consolidated Mines. Anglo-Americ possibility for the creation of a multi-racial Investment Trust, and Anglo-Arne democratic (not to be confused with 'liberal can Corporation of South Africl democracy') state lies in the power of the South Through these corporations and African peoples themselves. The intransigence of subsidiary web of interlocking pa the 'powers behind apartheid' has heightened the nershlps the cartel has assets in t contradictions within the system. It is now clear neighbourhood of 2.5 billion dollI (nearly f. 1000 million), reserves that the road to South African freedom lies only 747 million dollars (abo~,t £ 270 m in the armed struggle of the African people against lion) and a 100 million dollars-a-ye the system that oppresses them. (i 36 million) payroll of 20,000 E ropeans and 136,000 Africans. T That armed struggle against the white regime has cartel controls almost all of the fr been initiated in the entire Southern African world's diamonds. most of its gol region (South Africa, Rhodesia and the Portuguese at least one third of Africa's cOPpl and one fifth of its coal. De Be~ territories). The struggle, embracinq territor alone was l\ble to turn a profit ies stretching from the Atlantic to the Indian 65 million doBars (£ 23 million) b Ocean, is being fought against the military and year." economic might of South Africa and her allies. Sir Ernest Oppenheimer (fath We are part of the struggle in Southern Africa: of Harry Oppenheimer) took ov let us show our solidarity. Orqanize, educate, leadership and later control of tl South African and world diamol act. Raise funds for the armed struggle. Demand industry during the first quarter US disengagment. The contradictions within South ~he twentieth century. By monopol! African society can and will be resolved only mg the world diamond market it h when the African peoples have themselves re claimed that which is their own ... All Power to the People ...Amandla Nqawethu. Ii c groupi ngs in opment of a multi Iper-profi ts and The MininK' Empires been possible to guarantee enormous ! mai ntenance of profits to De Beers Consolidated for ~ed exploitation It is well known that the Oppen decade after decade. This is one of 'eformist thesis heimer empire is very rich and power the chief sources· of Oppenheimer I for an Afri can ful. It is more difficult to say just and South African capital. One of how rich and powerful Anglo-Amer the main De Beers investments is in polity beyond its ican is African ElloPlosives and Chemical In I argument favored If we only look at the assets of dustries (the other half of its shares )orate investment the AngJo-American Corporation it are owned by Imperial Chemical In Inise that in the self, we get a figure of about 50 mil dustries of Britain). A.E. and C.I. is >Untri es have lion pounds. A clearer picture was the world's largest producer of min id political forms: given by Newsweek on November ing explosives, a big producer of fer 24, 1958, in an article which said tilisers and plastics and it is setting democracy. Needless that Harry Oppenheimer "presides up munition works for the govern iberal democracy over an empire headed by De Beers ment. state. The only Consolidated Mines. Anglo-American During the First World War Sir a multi-racial Investment Trust, and Anglo-Ameri Ernest Oppenheimer_ became convinc with I 1i bera1 can Corporation of South Africa... ed of the possibility of a gold mining lower of the South Through these corporations and a industry outside the then known li subsidiary web of interlocking part mits of the Witwatersrand gold field. Ie intrans i gence of nerships the cartel has assets in the He went to America and obtained las heightened the neighbourhood of 2.5 billion dollars the support of the J. P Morgan !Ill. It is now clear (nearly £ 1000 million),. reserves of group, the biggest capitalist group in freedom lies only 747 million dollars (about £. 270 mil the world. The Anglo-American Cor ~rican people against lion) and a 100 million dollars-a-year poration was then set up and has (£ 36 million) payro~l of 20,000 Eu grown into the largest of the mining ropeans and 136,000 Africans. The houses. There is now little American cartel controls almost all of the free capital in the group but strong links white reqime has world's diamonds. most of its gold, with Morgan have been retained. For luthern Afri can at least one third of Africa's copper, example, Kennecott Copper, a Mor and the Portuquese and one fifth of its coal. De Beers gan firm, lent millions of dollars to lbraci nq territor alone was l\ble to turn a profit of help establish Orange Free State mi 'c to the Indian 65 million dollars (£ 23 million) last nes. Anglo-American pioneered the year." Free State' field and invested 120 the military and Sir Ernest Oppenheimer (father million pounds there. and her all i es . of Harry Oppenheimer) took over Later the group began investing Southern Africa: leadership and later control of the heavily in the Northern Rhodesia 'qani ze, educate, South African and world diamond mines and in South African coal and \ struggle. Demand industry during the first quarter of base minerals. especially uranium and 'tions within South the twentieth century. By monopolis titanium. Through Tanganyika Con resolved only ing the world diamond market it has cessions it is believed to have large hemselves re ...All Power to Africa's gold, 24% of her 1 43% of her coal, 51% of I South African Production of Critical Minerals. Rhodesian copper and 41~ value of total world diamOl In addition it had large share in 20 other gold, 2 copper al MINERAL S.A.% (of non-communist mines. The group also inel world production) finance and investment IX of which it controlled 17. uranium It is believed that sevel 25% in 1974 mining houses such as AI asbestos: are virtually controlled by amosite 100% in 1966 heimer, Anglo-Vaal is onl crocidolite 90% in 1966 engaged in lllining. It also chromium 75% in 1-970 a great many manufacturi: vanadium 90% in 1969 panies. Anglo-American in antimony 38% in 1966 ship with the Union Cor platinum another large mining hous€ 40% in 1966 capital and the American E look over the second bi&i diamonds: mining group, Central Mi gem (include SWA) 43% in 1966 prevent Nationalist capital industrial 10% in 1966 hold of it. Today it is do gold 72% in 1966 any of the big mining houses independent of Oppenheimel foreign friends. Oppenheimer's political a investments in Katanga. 1954 and 1957 the group raised 11 influence has been exerted il 1 Reasons for the rapid growth of million pounds in Switzerland, £4 /4 ber of ways. Oppenheimer is 1 the group were enterprising and pro million in Germany and £ 2 /2 mil partner with the Tanganyika fitable management, large capital lion in Holland. The group has very ment in the diamond mil resources from De Beers and over good engineering, prospecting and In Swaziland he has large in' seas sources and a policy of con research sections. For example they in timber and is promotin~ centrating on mining and supporting have just become the second group iron mine to export ore t industries and using science and tech in the world to launch the manufac The Oppenheimers used te nology fully. Strong foreign links are ture of synthetic diamonds on a com the United Party (the "pap« one of the most important features mercial scale. sition in Parliament) and tl of Anglo-American. The group in According to a pamphlet entitled Commando (a white or~ cludes a merchant banking house "Mining Enterprise in Southern Afri founded soon after the Nl called Union Acceptances (Zurich) ca" published by Anglo-American, came to power, to defend t A. G. set up in Switzerland. Between it produced in 1957, 25% of,South titution), but now Oppenhei Africa's gold, 24% of her uranium, pons the Progressives, the party 43% of her ooal, 51% of Northern which upholds gradual ~forma to :ical Minerals. Rhodesian copper and 41 % of the bring non-whites into consultation value of total world diamond sales. with the Government. However he is In addition it had large sha~ holdings also a member of the apartheid in 20 other gold, 2 copper and 2 coal whitewashing South African Foun ~ non-communi st mines. The group also included 32 dation, along with Nationalist busi Irld production) finance and investment companies ness men. of which it controlled 17. This ambiguous behaviour is due 174 It is believed that several other panly to a wish to make concessions mining houses such as Anglo-Vaal in time but no more rapidly than are virtually controlled by Oppen necessary and without endangering 66 heimer, Anglo-Vaal is only partly capitalism. Another reason is tbat he 66 engaged in Blining. It also controls is a flPan-African" capitalist Ilnd 70 a great many manufacturing com he is influenced by the social deve-. 69 panies. Anglo-American in partner lopments and forces in the Nonh. 66 ship with the Union Corporation, 66 another large mining house, British Foreign Capital capital and the American Engelhard, took over the second biggest gold The March, 1962, Economic News mining group, Central Mining, to letter issued by the South African 56 prevent Nationalist capital getting Government's Information Service 56 hold of it. Today it is doubtful if reponed a speech by Mr. M. D. Bang 56 any of the big mining houses is really han, vice-president of Newmont independent of Oppenheimer and his Mining Corporatiotl of New York, foreign friends. who said that the economic advan Oppenheimer's political and social tages of South Africa are greater 1957 the group raised 11 influence has been exerted in a num than the risk. An investment pro 1 unds in Switzerland, £4 /4 ber of ways. Oppenheimer is an equal gramme of 9 million pounds for 1 Germany and £2 /! mil partner with the Tanganyika Govern Tsumb Corporation in South West iUand. The group has very ment in the diamond mine there. Africa and 21/! million pounds for ineering, prospecting and In Swaziland he has large investments the O'okiep Copper Company in the ections. For example they in timber and is promoting the big Cape was decided upon. Both of become the second group iron mine to export ore to Japan. these companies are administered by id to launch the manufac The Oppenheimers used to finance Newmont and financially controlled rthetic diamonds on a com the United Pany (the "paper" oppo by Newmont and American Metal ale. sition in Parliament) and the 'forch, Climax Inc. with the Union Corpo 19 to a pamphlet entitled Commando (a white organization ration having a finger in the pie. "We nterprise in Southern Afri founded soon after the NationaLists know the people and the Government bed by Anglo-American, came to power, to defend the Cons and we back our conviction with our 1 in 1957, 25% of,South titution), but now Oppenheimer sup- reputation and our dollars."., Bang- hart also pointed out that American great that in every three month pe "other" investmenl firms that do business in South Afri riod during this time production was 13% increase' in ca make an average profit of. 27% ei.ther maintained or increased. ment. In contrast, j in manufacturing, I on their investments, much higher In December 1961, the South Afri ,. organizati~ than the profits such companies can Reserve Bank published a supple financial could hope to make in America. ment of their Quarterly Bulletin of it decreased in the So long as the rate of profit re Statistics entitled "The Foreign Lia ches of the econOI mains high and the Government bilities and Assets of the Republic 1960. The distrib seems able to keep the people under of South Africa 56-60." This gave capital in 1960 wai control many foreign capitalists will the following figures for foreign ca million, manufactuJ continue to come to South Africa', pital invested in South Africa: lion, commerce £.: However, although the working ca nance £. 255% £. 90% million. pitalists, who are often hard, robber Sterling Area (Brilain. CIC.) £ 935 million £886 million Dollar Area (American. cle.) £252 ,- £J12~ .. Some idea of f baron types, keep their eyes on the O.E.E.C. Area (West Europe) £201 ,. £234 V: -, Other Areas £8 .. £6~ .. profits and do not scare easily, the followed by foreign soft ones, the conservative financiers No other figures are significant Africa can be gail and the small investors, took fright although Japan has begun to be the behaviour of c representati~ at Sharpeville in 1960 and at the important. minent departure of South Africa from the Foreign capital is concentrated in Guingand heads tl British Commonwealth in 1961. None certain sectors of ·the economy. BanI: Foundation and p of the capitalists on-the-spot seems ing and insurance are dominateu by his old chief, Fiell to have withdrawn however. Engel mainly British capital, and foreign gomery, out to pro hard, the precious metals king, for capital is dominant in certain bran to be well. Engelhl example, cannot give up his holdings ches or industry. For example elec reports to share hoi, in platinum and gold mining with trical engineering is dominated by need to adopt poL out losing control of a part of his American, British and Dutch firms. be acceptable to tl taw materiat supplres, and many Transportation equipment, too, is considered to be l Nationalis~ others have similar technical reasons foreign dominated: cars, tyres, pe by the capital into the COl for staying even if things get rough. troleum and railway rolling stock. on the South Afr '!be loss of confidence of many However the state-capitalist firms. which strives to mak overseas investors in the South Afri Sasol and the South African Railways can Government an can Government in 1960 and 1961 and Harbours (S.A.R. & H.), are pear more attracti, caused a major drain on the coun becoming big producers. In mining Bri·tain, America al try's finan.ces. This forced the Gov there are large foreign holdings al rope. ernment to introduce a ban on the though South African capital is be In the meantime withdrawal of foreign shareholder's coming much more important. The growth of cooperati money which seriously damaged the Reserve Bank's figures show a decline eign firms and state credit of the government and business in total foreign investment in mining prises-Sasol and Fi: with private overseas investors. The from £.453 1/! million in 1956 to duction of fertilizel'l economic strength of the government £.435 1/! mi'llion in 1960 due to de· Vecor and Rubery 0 and the economy, however, is so clines In British, American, anc every three month pe "other" investments and despite a duction of car chassis and wheels, IUs time production was 13% increase' in O.E.E.C. invest Vecor and Babcock and Wik:ox for ined or increased. ment. In contrast, foreign investment the 'production of boilers, Sasol and er 1961, the South Afri in manufacturing, commerce and in several tyre companies for the pro financial organizations increased while Jank published a supple duction of synthetic rubber, etc. This r Quarterly Bulletin of it decreased in the remaining bran devek>pment is strengthening the co tied "The Foreign Lia ches of the economy from 1956 to operation between foreign capital and \ssets of the Republic 1960. The distribution of foreign the Nationalists. cap~tal 1 rica 56-60." This gave in 1960 was: mining £435 /2 1 figures for foreign ca million, manufacturing £ 349 /2 mil The State-Supported Farmers in South Africa: lion, commerce £ 185Y2 million, fi nance £ 255 Y2 million, "other" In most capitalist countries the
:1:.) £ 9JS million £886 million £ 90Y2 mi1lion. farmers, that is the agricultural ca ~tc::.) I. 252 .. £312!h .. Some idea of the policies being pitalists, are not a powerful mono rope) £201 ,. f234!iJ £8 .. £6Y2 •. followed by foreign capital in South polistic group within the capitalist figures are significant Africa can be gained by observing class. In South Africa, because of Ian has begun to be the behaviour of certain of its pro their disproportionate political power, minent representatives. Sir Francis de the white farmers have been able pital is concentrated in Guingand heads the South African to organize themselves as a state Foundation and periodicatly brings supported monopolistic group. Mono I of the economy. Bank Mont~ ance are dominateu by his old chief, Field Marshal polies in the selling of agricultural 11 capital, and foreign gomery, out to prono\JlIlce all things produce have been establ>ished through the control boards. The position of ninant in certain bran to be well. Engelhard in his annual farmers as buyers has been strength ;try. For example elec reports to share holders mentions the ,ring is dominated by need to adopt policies which shall ened through the formation of co-ope· ratives and the farmers have freed itish and Dutch firms. be acceptable to the world, but is considered to be a gooq capitalist themselves of any great dependence 1 equipment, too, is by the Nationalists and he brings on finance capital through the Land nated: cars, tyres, pe- capita,l into the country. He too is Bank, and a great variety of forms of railway rolling stock. on the South African Foundation state subsidies and assistance. state-capitalist firms. which strives to make the South Afri Government assistance to white South African Railways can Government and its policies ap farmers takes many forms. Railway s (S.A.R. & H.), are pear more attractive, especially in rates are set so that farmelll pay , producers. In mining Britain, America and Western Eu much less to transport the.r produce ge foreign holdings al- rope. and supplies than do manufacturing African capital is be In the meantime there is a rapid or mining capitalists. High tariffs are I more important. The growth of cooperation between for charged to exclude various types of 's figures show a decline eign firms and state capitalist enter food imports. A great deal of irri investment in mining :n prises--8asol and Fisons for the pro gation, soil erosion control, agricul 2 million in 1956 to duction of fertilizers and chemicals, tural education a·nd research work on in 1960 due to de Vecor and Rubery Owen for the pro- is carried out by the government at ritish, American, am! South African Gold Production. as %of World· (all excluding USSR)
1907 32% Today aU impoI1tant agrioultur 1947 47% ducts are controlled by Ma, 1965 73% Boards acting to exploit COD: for the benefit of the white f~ Gold output of Witwatersrand and Orange As a result of this system, Free State 1887-1965 realized approx. been estimated that about h b 6622 million, while investments in gold all African babies born in mining companies by means of equity capital urban centres die w~thin thl was about b 726.7 million. year of life, basically of stan Yet school feeding has been st by the Government and skim Over the period 1926-61 the rate of return bananas, and other fruits have on US Common Stocks was 6.9%, as compared destroyed by the Control BoaJ with 11.7% in gold mines during the same keep prices up and above what period. Africans can pay. Vast tonna~ maize are persistently exportl Wages paid to African mine workers averaged a severe loss. This process is pa: by the high monopolistic price , 67¢ per day in 1964. tained within South Africa whet main consumers are the rnalnom African people. The fanners do not exploil non-Europeans only as consUl the expense of all taxpayers and for the central·ized sale of products in The way in which they exploit the benefit of the farmers. any area if 66% of the producers as workers is even more impol The most significant thing. how were in favour thereof allld the Mi Labour relations on the farms ever: has been the development of nister of Agriculture approved. the original source of the vir the Co-operatives and Control Boards. The protective tariff on sugar was race hatred and repression \I The first step was taken in 1924 raised from 4/- to 16/- per hundred poisons the whole of South Atl (about the time that the Nationalists pounds between 1926 to 1932. In society. The forms of exploit: first came to power), when an Act 1936 a Sugar Industry Control Board have been various: chattel slaveI of Parliament vested in the Koopera was set up. One result was that in the old Cape; labour tenanc: tiewe Wynbouwers Verenigi,ng full 1938 about half of South Africa's form ·of serfdom-imposed on control over the sale of all distilling sugar production was exported to conquered Africans, indentured -wine or spirits. As a result profits the United Kingdom where. after dian labour in the Natal sugar al have been raised and stabilized. ca paying shippi.ng and other charges. farm jails both private and pu pital accumulated, and exports built it was sold for less than the price shanghaied "volunteer" labour UI up until today K.W.V. is the third charged to consumers in South Afri the influx control legislation, c largest supplier of sherry to Britain. ca. Control of wheat and dairy pro pound labour as for example In 1925 a Co-operative Societies ducts was set up in 1930. of maize Bethal, the tot system in the C Act was passed which provided for in 1931, and of livestock in 1932. whereby labourers dte paid p~ \0 on as % of World'
Today aU impo11tant agrioultural pro in a ration of alcohol, etc. The re ducts are controlled by Marketing lations in agriculture are still of Boards aoting to exploit consumers decisive significance for three reasons. for the benefit of the white farmers. Firstly, one third of the African po j and Orange As a result of this system, it has pulation lives on wh~e farms, and ed approx. been estimated that about half of conditions on the farms tend to set tments in gold all African babies born in large standards of living for the entire non r equity capital urban centres die within the first European population. Secondly, farm year of life, basically of starvation. work was historically the first form Yet school feeding has been stopped and for a very long time the only by the Government and skim milk, form of work imposed on the ori rate of return bananas, and other fruits have been ginal inhabitants of the country. ~, as compared destroyed by the Control Boards to Hence the attitudes and habits ~ing the same keep prices up and above what most corresponding to such relations of Af.ricans can pay. Vast tonnages of production are the most deeply in maize are persistently exported at grained particularly in the customs Torkers averaged a severe loss. This process is paid for and traditions of the Afrikaners. The by the high monopolistic price main farmers have always been the mi tained within South Africa where the litary backbone of white supremacy main consumers are the malnourished within South Africa and a motive African people. force in the conquest of African The farmers do not exploit the lands. non-Europeans only as consumers. FinaUy, agricultural relations are .J.ized sale of products in The way in which they exploit them important because the farmers have if 66'70 of the producers as workers is even more important. used their poh11cal power to pass Lvour thereof and the Mi Labour relations on the farms are legislation, such as pass laws and in \griculture approved. the original source of the virulent flux control, to prevent people from tective tariff on sugar was race hatred and repression which escaping to the towns. Politically. n 4/- to 16/- per hundred poisons the whole of South African farmers were the original basis of tween 1926 to 1932. In society. The forms of exploitation the Nationalist movement. Although ~ar Industry Control Board have been various: chattel slavery in this movement now includes large >. One result was that in the old Cape; labour tenancy-a numbers of civil servants, dependents ~t half of South Africa's I( form of serfdom-imposed on the of state capital, NaJtionalist capital duct ion was exported to conquered Africans, indentured In ists as well as reactionary white :I Kingdom where. after dian labour in the Natal sugar areas, workers and urban middle class ppi,ng and other charges. farm jails both private and publ.ic, elements, the farmers are still pro d for less than the price shanghaied "volunteer" labour under bably the most influential section. consumers in South Afri the influx control legislation, com The unusual monopolistic strength of I of wheat and dairy pro pound labour as for example at the farmers in South Africa has set up in 1930. of maize Bethal, the tQt system in the Cape enabled them to accumulate great md of livestock in 193:!. whereby labourers ate paid partly wealth which provided the original \() 11 "civilized labour policy" of industr colour bar and highly paid jobs j caRital for institutions like the Volks transport and the airlines, and large poor whites at the expense of nc kas Bank and the Sanlam Insurance scale irrigation projects. EventuaHy European workers. These potic: Co. The increasing wealth of the broadcasting was taken over, and were maiqJ.y implemented in the ci" farmers is shown by the rise in the electric power through a nominally service, the Post Office and t number of tractors from 20,000 in independent corporation, Escom. The Railways, and together with the I 1946 to 110,000 in 1960, and by the water supplies to the main industrial dustrial Conciliation Act (which c rise in farm production of 5'70 per and population centres are provided nied trade union registration and t year (compared to a 2';0 rise in the by the Rand Water Board. The Na right to s,trike to African unions al population). tional Roads Board plans and finan imposed apartheid in the trade unil ces the na,tional road system, the movement), the coming into indust South African Reserve Bank controls of the Afrikaner and persistent N State Capital the currency reserves and banking tionalist attempts to capture tl system of the country, and the Land trade unions, have succeeded in tur The role of the State is increasing and Agricultural Bank and the State ing the white workers and especial in all capitalist countries as it is Advances Office give white farmers the state employees into a most ir found increasingly difficult to run financial help. The Public Works De portant social support for the N a modern economy on strictly pri partment builds buildings and brid tionalist movement. vate capitalist lines and as war be ges for the central government and However, in relation to the devl comes the leading form of activity. for some of the provincial adminis opment and nature of state capit, In South Afric~ state economic ac trations and public corporations. the most important thing that happel tivity began very early, developed There is a government printing works ed in this period was the strugg unusually widely and has been used and a mint, which undertook large to establish Iscor, the state ire by the Nationalists to implement scale arms and ammunition manu and steel monopoly. The bill Wi special poliotical aims to strengthen facture during the war. Under the supported with Nationalist argumen and to perpetuate the existing social control of IocaJ authorities and mu about South African industrial iJ system. nicipalities are many local bus servi dependence and the jobs whic In the earliest period, state capi ces, power stations and other utili Iscor would create for whites. . talist activity arose out of simple ties. was bitterly opposed by the 0Ppos necessity. The fif'St form of state State capital became even more tion on the grounds that busine! ownership of productive resources powerful and took on a marked po should be left to the capitalists (thel was that of land and forests (Crown litical character in the second period, were two small iron and steel wod land). State 'postal services were set the period of the first Nationalist in private ownership then). The fe2 up and telegraphs, telephones and Government, the Nationalist-LabQpr that ~t might cost the mines som the Post Office Savings Bank were Pact Government, formed in 1924. money was also behind their oppos added later. The railways too were It adopted protective tariffs in 1925 tion. The bill was finally force state owned because there was not to encourage secondary industry and through at an unprecedented Join enough sure profit in them to attract thereby won recognition as a pro Session of both Houses of Parli2 adequate private capital and similarly industrialization party wi,thin the rul ment on March 30th, 1928. with the harbours, long distance road ing class. They also adopted the This struggle made the Nationalist "civilized labour policy" of industrial the champions of state capital and colour bar and highly paid jobs for made state capital the means for ort and the airlines, and large poor whites at the expense of non turning the poor whi,tes il1lto well irrigation projects. Eventually European workers. These policies paid and influential NationaliS't sup :asting was taken over, and were maiq)y implemented in the civil porters. : power through a nominally service, the Post Office and the Iscor soon swallowed up the two odent corporation, Escom. The Railways, and together with the In private firms Usco (Union Steel Co.) supplies to the main industrial dustrial Conciliation Act (which de which had belonged to Lewis and >pulation centres are provided nied trade union registration and the Marks, the mining magnates. and Rand Water Board. The Na right to S'trike to African unions and Amcor (African Metals Corporation). Roads Board plans and finan imposed apartheid in the trade umion It has also spawned a substantial e national road system, the movement), the coming into industry number of other subsidiaries, includ /\trican Reserve Bank controls of the Afrikaner and persistent Na ing Vecor, by far the biggest en rrency reserves and banking tionalist attempts to capture the gineering firm in the country. which of the country, and the Land trade unions, have succeeded in turn in turn is building a subsidiary car lricultural Bank and the State ing the white workers and especial'ly parts factory in aswciation with the :es Office give white farmers the state employees into a most im British firm Rubery Owens in res 11 help. The Public Works De portant social support for the Na ponse to government measures to 1t builds buildings and brid- tionalist movement. promote the eventual production of the central government and However, in relation to the devel a South African car. Vecor has also Ie of the provincial adminis- opment and nature of state capital, taken over the South African boiler and public corporations. the most important thing that happen making factory of Babcock and Wil ; a government printing works ed in this period was the struggle cox. mint, which undertook large to establish Iscor, the state iron With the depression came the Hert rms and ammunition manu and steel monopoly. The bill was zog (Nationalist)-Smuts (mine during the war. Under the supported wi,th Nationalist arguments backed South African Party) coali of local authorities and mu about South African industrial in tion, and the "purified" (extreme) Na ies are many local bus servi dependence and the jobs which tionalists went into opposition and ....er stations and other utili- !scor would create for whites. It began build:'l!! up their basic net was bitterly opposed by the opposi work of organizations covering all capital became even more tion on the grounds that business aspects of Afrikaans life and working I and took on a marked po should be left to the capitalists (there out and propagating their version laracter in the second period, were two small iron and steel works of fascist ideology. A major role in lod of the first Nationalist in private ownership then). The fear this ideology was played by Mus lent, the Nationalist-LabQpr that ~t might cost the mines some solini's corporate state ioe... This Ivernment, formed in 1924. money was also behind their opposi says that class conflict can be elimi ~d protective tariffs in 1925 tion. The bill was finally forced nated by making the employers and rage secondary industry and through at an unprecedented Joint the employees in a particular branch won recognition as a pro Session of both Houses of Parlia of industry co-operMe in a fascist lization party within the ml ment on March 30th, 1928. dominated "Corporation." These Cor s. They alw adopted the This struggle made the Nationalists porations, covering the entire econo-
1'3 my, are then united with the State over they had very clear ideas about high wages). and certain other for the aggrandissement of the State the State. they promptly purged the tures of apartheid. and its' empire. Inspired by these army, the police and the civil service The size of the state capil ideas the Nationalists set out to build of anyone likely to interfere with sector is indicated below, the I up Nationalist capital and to capture their plans, promoted "broeders" and the trade unions and to make use of began using the State to enrich them stit'te capital for their purposes as selves. One of the main was the Type soon as they could gain power. award of state contracts to National In ,the meantime the United Party ist firms. controUed the State and the Second The important thing in the present Transport : South Africa and Hal World War led to further extensions context, however, is that the idea of Post Office of state economic activity. Thus by llutarky came to the fore during and Communications: South Afric: the time the Na,tionalists came to after the war. This is the idea. pop Compan power in 1948 state capital was al ular with the Nazis, that "the ndtion" Escom (elect ready a major factor in the economy can and should be self-sufficient power) and the main prop for the white economically. As a result Sasol' was labour policy. founded to gi.ve South Africa "her The Nationalists of the fourth pe own" gas, oil, and chemical·s, Vecor Utilities: Rand Water riod were a very different social force was founded to give her "her own" Steel & Iscor (iron from what they had been in 1924 heavy machinery, Foskor to give her Engineering: Usco (Unio) when they had first come into power. "her own" superphosphate fertilizer Vecor (heav: Then they had been an ordinary supplies, the National Finance Cor Amcor (Afri reactionary nationalistic party. In poration to give her "her own" short Chemicals: Sasol (coal j 1948 they were a totalitarian social term money market, the Fisheries Kop lKlipfol movement, run by the Broederbond, Development Corporation to give her Foscor (sup< a secret society saturated with fascist "her own" modern fishing industry. Financial: National Fin ideology, and embracing (1) "cul At present plans are well advanced Reserve Ban tural" organizations like the F.A.K. for developing the automobile in Land Bank (Federation of Afrikaans Cultural dl.liStry, and the Board of Trade is P. O. Savini Organizations), (2) an economic wing investigating the possibility of estab Industrial D which had fostered a small but lishing a tractor industry. State fisheries De aggressive group of Nationalist ca firms, especially the Industrial De pitalist firms and captured a number velopment Corporation, and National of important ~rade unions, (3) an ist capital have been particularly ac Despite the fact that the ab01 efficient and ruthless political party, tive, but many non-Nationalist ca gures are incomplete, ·the total rl (4) youth movements, (5) vi-rtually pitalists have also benefited. Thus es £ 1,458.35 million. For com the entire Afrikaans press and pub the support of an important section son, it may be remembered tha lishing industry, (6) the Dutch Re of capitalists had been maintained Oppenheimer empire is worth j formed Church, (7) the Afrikaans despite the wide-spread dislike of *' 1.000 million. Thus state capi medium universities and schools (8) job reservation (which forces certain already much the largest singlr. professional organizations, etc. More- industries to employ only Whites, at Ire of power in-'the economy. n ley had very clear ideas about ate. they promptly purged the high wages). and certain other fea- res being taken from the South Afri the police and the civil service tures of apartheid. can Financial Year Book 1962, the yone likely to interfere with The size of the state capitalist State of the Union 1962, and the llans, promoted "broeders" and sector is indicated below, the figu- Official Year Book No. 30. 1960. using the State to enrich them- One of the main was the Year A.ssets Type Organization of state contracts to National (million pounds) ns. important thing in the present Transport : South African Railways t, however, is that the idea of and Harbours 1959-60 664.8 y came to the fore during and Communications: Post Office 1960 ? he war. This is the idea. pop South African Broadcasting ? ith the Nazis, that "the ndtion" Company nd should be self-sufficient Escom (electric and pneumatic 1960 245.75 nically. As a result Sasol· was power) d to gi,ve South Afrioa "her gas, oil, and chemicals, Vecor Rand Water Board 1959 23.75 lunded to give her "her own" Utilities: Iscor (iron and steel) 1961 172.25 machinery, Foskor to give her Steel & Engineering: Usco (Union Steel Co.) 1960 9.5 Iwn" superphosphate fertilizer Vecor (heavy engineering) 1961 11.1 s, the National Finance Cor Amcor (African Metals Corp.) 1961 4.25 In to give her "her own" short Chemicals: Sagol (coal and oil) 1961 48 money market, the Fisheries Kop (Klipfontein Organic products) 1959 2.75 Ipment Corporation 'to give her Foscor (superphosphate fertilizers) 1961 3.2 Iwn" modern fishing industry. Financial: National Finance Corporation 1958 80.05 :sent plans are well advanced Reserve Bank 1 :veloping the automobile in- Land Bank 1961 133.25 and the Board of Trade is P. O. Savings Bank ? lating the possibility of estab- Industrial Development Corporation 1959 58.2 a tractor industry. State fisheries Development Corporation 1961 0.5 especially the Industrial De lent Corporation, and National ital have been particularly ac Despite the fact that the above fi tal of foreign economy is greater 'ut many non-Nationalist ca gures are incomplete, ·the total reach (£ 1,538.5 million in 1960) but the l have also benefited. Thus es £ 1,458.35 million. For compari largest single foreign investment, that ?port of an important section son, it may be remembered that the of the British· capitalists, was only litalists had been maintained Oppenheimer empire is worth about £ 886 milion in 1960 (now nearly , the wide-spread dislike of f 1.000 million. Thus state capital is £ 1,000 million). ,ervation (which forces certain already much the largest singl.., l:en State capital is one of the chief ies to employ only Whites, at tre of power in-'the economy. The to- sources of Nationalist power, and 1'\ not economic power alone. Civil development. This may be the start servants and employees of state ca of a new period of "separate dev pital probably number about one fifth elopment" in the life of state capital of the white population, and together in South Africa. with their families are probably a The approching exhaustion of the near majority of the electorate. All water resources of the Vaal River the Nationalis,ts have to do is keep makes it necessary in any case to the dependents of the State happy and plan development in other river ba they can remain in power indefi sins, and the NationaJists are taking netely, so long as there is no major the opportunity to plan the Orange extension of the franchise. River Scheme and the Tugela Even more important, perhaps, is Basin on apartheid lines. There is the fact that today the state firms no reason ,to doubt that the resources are engaged in vast expansion sche of the State and of state capital will mes, whilst private investment has be used to construct water, power aJmost ceased. These schemes began and transport services to make "bor to be announced not long after Shar der area industry" developments on peviHe and it is clear that they are the edge of the Bantustans profitable, part of a successful effort to keep and once they are profitable all sorts the economy going despite world dis of capi,talists with Nationalist capi approval of the Nationalists, and at tal will move in. 'Already Escom and the same time to strengthen the Na the LD.C. are committed to these SOUTHEI tionalists' control of the economy. schemes and £ 38 million of the Dales ifldicale year government's £ 57 .minion five-year Organiz.tion E:s:pansion e_ penditure Period Bantustan development plan has been Iscor £ 270 m. 1960-72 allocated to building African urban founded. The latter insurance Escom 80.2 1961 housing in the resetves for peasants panies were founded as a resl P.O. telephone services 50 1961-66 to be taken off the land and made in appeals by the Dutch Refl Orange River Scheme 225 1962-92 to border industry workers. Church to open new avenul Sasol 30 1961- employment for Afrikaners il towns and so rescue the "pOOl In addition f 78 million are now Nationalist Capital tes" from poverty (and the being spent annual'ly on army, navy bility that they might k>se the and air forces and this is acting as Nationalist writers distinguish cialism and become militant). an important stimulus to pep up the 'three successive "economic move During the period from 19 economy. A most important bit of ments" in the "Afrikaner's economic 1939 numbers of individual A autarky is that South Af,rica is geH struggle." In the first, prior to 1919 ners went into business, and in ing "her own" armaments industry. little occurred except appeals to oust the Volkskas bank was found, Probably the most significant re the "English" from business. Only in the Broederbond. This was th cent development has been expendi 1918 were Ko-opera,tiewe Wynbouers riod of the spread of fascist id ture on Bantustan and "Border Area" Vereeniging, Sanlam and Santam the ranks of the new "pw Nationalists and of the drive I \~ :velopment. This may be the start a new period of "separate dev- )pment" in the life of state capital South Africa. The approching exhaustion of the iter resources of the Vaal River akes it necessary in any case to m development in other river ba IS, and the Nationalists are taking • e opportunity to plan the Orange I I I n Id a n ver Scheme and the Tugela i o c e a II lsin on apartheid lines. There is , I reason to doubt thM the resources the Sta'te and of state capital will ! used to construct water, power \ White-ruled d transport services to make "bor D countnes Black-ruled r area industry" developments on countries ~ edge of the Bantustans profitable, \0 c e an White-ruled • countries with d once they are profitable all sorts \ armed liberation capitalists with Nationalist capi • strugates will move in. Akeady Escom and \ : I.D.C. are committed to these SOUTHERN AFRICA ~emes and £. 38 million of the Dates indicate year armed struggle began. vemment's £ 57 .minion five-year ntustan development plan has been ocated to building African urban founded. The latter insurance com Broederbond to organize all aspects using in the resetves for peasants panies were founded as a result of of Afrikaans life under their control. be taken off the land and made in appeals by the Dutch Reformed In 1938 at ,the Centena,ry of the border industry workers. Church to open new avenues of Great Trek, it was suggested tha't an employment for Afrikaners in the important way of honouring the towns and so rescue the "poor whi Trekkers was to rescue their descen ltionalist Capital tes" from poverty (and the possi dants from poor whiteism. A good bility that they might lose their ra deal of money was raised and a wel ~ationalist writers distinguish cialism and become militant). fare organization called the Red :ee successive "economic move During the period from 1918 to dingsdaadbond was set up. nts" in the "Afrikaner's economic 1939 numbers of individual Afrika "What weapons are available to Jggle." In the first, prior to 1919 ners went into business, and in 1934 the Afrikaner in this struggle? State Ie occurred except appeals to oust the Vo1kskas bank was founded by power... Purchasing power... Capital "English" from business. Only in the Broederbond. This was the pe power..." Dr. Verwoerd summed up 18 were Ko-operatiewe Wynbouers riod of the spread of fascist ideas in the view of the ~roeders. It was reeniging, Sanlam and Santam the ranks of the new "purified" decided that monel jJe collected from Nationalists and of the drive by the Afrikaners for a fihancial company \~ ('1 to fina'nce Afrikaner business. San tionalist hands. They give themselves ~am and Santam came forward to contracts. For exampk Verwoerd's organize this company, named Fe publishing houses (Dagbreekpers and derale Volksbeleggings. The Red Hayne and Gibson) have been given An idea of the size of Nati, dingsdaadbond was transformed government cOlltracts worth 1V2 mil capital can be gained from th from a welfare organization into lion since 1960. One of Escom's gazine Tegniek, in July 1962, the economic front organization of biggest power stations is built next lists the ten biggest Afrikaans the Nationalist drive to totalitarian to a Federale Mynbou coal mine, cial institutions and their assets power. and a second even bigger power as being: All this spelt opportunity to the station near Ermelo is to be built Volksas £.99,4~ new Nationalist ideologists and ca next to another Federale Mynbou Sanlam £, 90,()( pitalists. colliery. This of course gives Fede Trust Bank £41,5~ Previously we have been dealing rale Mynbou, which is a Sanlam firm, Saambou £32,51 with capital owned and managed a monopoly market for its COlli for Santam £. 12,6~ by Afrikaners and little different from the next thirty years or so while these Sentral Finans- other capital, but now there emerges power stations continue to function. Korporasie £ 1O,O~ National capital. Volksas founded by Federale Volsbeleggings is to fi Bonuskor £ 8,2: the Broederbund, and Federale VOlks nance a synthetic rubber plant using African Homes Trust £. 7,9: beleggings which was intended to gain raw materials from the state firm Federale Volsbeleggings £ 7,3( economic power for the fascis-tic new Sawl, and the rubber factory has full ~ederale Mynbou £4,ili Nationalists as part of the building government backing to guarantee it and having total assets of of the totalitarian social movement, a market. This assistance from public £. 313 Y2 million. All the firms are not ordinary businesses. They call funds is made easier by the system except Volksas are in the S to mind Volkswagen, the firm estab of interlocking directorates which has group, and co-operation betweel lished by the Nazi Labour Front and been built up between Nationalist lam and Volkskas is extremely the Hermallll1 Goering Works. capital and state capital. For example,. All the firms listed therefore : Before 1948, only two of Ver Dr. H. J. van Esk of the state firm be regarded as forming a woerd's three "weapons" were avail l.D.C. is a director of SanJam, and group: Nationalist capital. Thl able. Purchasing power was mobilized Dr. M. S. Louw of Sanlam has been assets of the group are far ! by means of nationalistic campaigns appointed head of the Government's than £. 313 Y2 milion since no the industrial or commercial to buy, bank and insure Afrikaans and new Coloured Development Corpo diaries of the group are liste of course not to trade with Indians, ration. In addition, the state capitalist are the smaller financial undert: Jews or Jingoes. The fat wartime firms and state departments are used in the group. incomes of the farmers made this an as a training ground for Nationalist The size of the group is ( important source of economic power. business managers. An indication of still a good deal less than the C Capital power in the shape of the how greatly this state aid assisted heimer group with about £, 1,00 profits of the Nationalist capitalists' Nationalist capital is provided by San lion, British capital with the existing investments was also avail lam which had assets of £. 3 V2 mil and state capital with more able. lion in 1939 and £. 18 million in £. 1,500 million. On the other This was greatly augmented when 1949 which rocketed to £. 90 million Nationalist capital is growing the resources of the State fell into Na- by 1961.
" Ilist hands. They give themselves racts. For example Verwoerd's ishing houses (Dagbreekpers and De and Gibson) have been given An idea of the size of Nationalist rapidly and it is strengthened by its mment contracts worth 1V2 mil- capital can be gained from the ma close links with the other two eco since 1960. One of Escom's gazine Tegniek, in July 1962, which nomic bases of Nationalist power, est power stations is built next lists the ten biggest Afrikaans finan namely state capital and state-sup port~d, organized farmers' capital. I Federale Mynbou coal mine, cial institutions and their assets today a second even bigger power as being: The structure of Nationalist capi on near Ermelo is to be built Volksas f. 99,490,590 tal has evolved on the basis of its to another Federale Mynbou Sanlam £ 90,000,000 traditional fields of experience: fi ery. This of course gives Fede Trust Bank £41,550,231 nance and farming, plus those fields Mynbou, which is a Sanlam firm, Saambou £ 32,583,609 in which the aid of the State plays onopoly market for its cOlil for Santam f. 12,650,500 a decisive role. It has invested heavilv lext thirty years or so while these Sentral Finans- in fishing, farm machinery and fe; er stations continue to function. Korporasie £ 10,051,830 tilizers. Nationalist capital is to fi ~derale Volsbeleggings is to fi Bonuskor f. 8,227,100 nance a synthetic rubber works using :e a synthetic rubber plant using African Homes Trust £ 7,935,346 Sasol raw materials and promoted materials from the state firm Federale Volsbeleggings f. 7,309,257 by the government as part of their ~ederale I, and the rubber factory has full Mynbou £4,090,812 drive to make South Africa econo ,roment backing to guarantee it aitd having total assets of over mically self-sufficient. They are uke!. This assistance from public £ 313 V2 million. All the firms listed breaking into mining through coal Is is made easier by the system except Volksas are in the Sanlam mining with the help of big contracts group, and cCH>peration between San Iterlocking directorates which has wi·th Escom. lam and Volkskas is extremely close. Two important incidents in the I built up between Nationalist All the firms listed therefore are to tal and state capital. For example,. history of Nationalist capital show be regarded as forming a single H. J. van Esk of the state firm how politically important and strong group: Nationalist capital The total they are becoming. In 1957 they tried C. is a director of Sanbm, and assets of the group are far greater to take over Central Mining and In M. S. Louw of SanI.am has been than £ 313 Y2 milion since none of vestments, the second largest mining tinted head of the Government's the industrial or commercial subsi house in South Africa. The combined Coloured Development Corpo diaries of the group are listed nor efforts of Oppenheimer, Engelhard In. In addition, the state capitalist are the smaller financial undertakings (backed by Wall Street's Dillon Read s and state departments are used in the group. & Co.) and several of London's banks training ground for Nationalist The size of the group is clearly were required to defeat this takeover Gess managers. An indication of still a good deal less than the Oppen bid. Its defeat was followed by loud greatly this state aid assisted heimer group with about £ 1,000 mil complaints by a number of prominent onalist capital is provided by San lion, British capital with the same, Nationalist politicians against foreign which had assets of £ 3 mil V2 and state capital with more than capital, and even talk of nationali in 1939 and £ 18 million in £. 1,500 million. On the other hand zation. Apparenlly as an appeasement , which rocketed to £ 90 million Nationalist capital is growing very gesture, Federale Mynbou was ad- 961.
" mitted as an investor in Anglo-Ame kor shares can payoff great divid ciaI and political developments there. rican's Zandpan Gold Mine. ends in the future," and it ended by Oppenheimer has indicated that he After SharpeviHe many foreign quoting a verse of "Die Stem", the would like to end the migratory la investors withdrew their capital from national anthem, God, reactionary hour system for at least part of his South Africa. Prices fell heavily on politics and big profits all for the labour force in order to obtain higher the Stock Exchange and an economic price of one. productivity from a settled working crisis threatened the government and class. Concessions to the Africans led to considerable dissatisfaction a The Pattern of Power are a necessary part of the economic mong businessmen. Sanlam (and the tal and the economic activities of the It seems certain that the political govelJ1ment departments. This will struggles leading to democracy will give a democratic government con involve some nationalization as well trol of most of heavy industry, the and so increase the economic power whole of the transport system and a of a democratic government. It will great deal of other indU8try. Through be impossible to break the power of the control boards and C ~I~c 0; o • > 0 CHART 1 INTERLOCKING DIRECfOIlATES AT THE HUB OF THE MINERAL INDUSTRY OF SoUTHERN AFRICA· Soci.t. Union Mini.,.. lriti.h S...... hod ... General. du Haut TANGANYIKA Africa "",IeA....ric... D.Ie_ .w.-...... _ Selecti.... d. 1.I,iqu. Katanso Cone.nion, Compa..y CO'l'. of S. A. Co.... Mi_ C..... I..v.... C"",orotlM T..... Gill.t Gill.t Oppenheime" Oppenheimer, Oppenheim.r, Opp.nh.i...... , H. H. H. H. Von de, StrCM'en Von de, SItae'", Van de, 5',0.'.n Wilson, A. Wilson, A. Wil$On, A. .'alr .awl""d_ HachIChild. H. HachlChild. H. Hach....i1d. H. Deville! Waf.rhouse Waf.rhouse Acutl------Acutl Watson Wallan Sey. Iradf....d Iradf....d Irodf....d lonvoilin S.lborne S.lborne Annan Clark Cla,k Clark Clark Moor. Dean Robilio,' Robiliort Robiliort Emryl·Evanl Emry••Ev"". Joel Jaol NewlOn New"", Coolbaugh Coolbaugh Qubois·'.I.,ln Guillaume Guillaume d'E,lang.. Hagart Haga,t rlagart Taylor Tayl.... finn Child. d. Spid.t ------d-.-S-p-i'-I.-.- Ie,ry ------Wilson. W. Wilson. W. Gaudi. Gaudi. Gaudi. Oppenheim.r, Oppenheimer, Ma,tha. Ma,thaa Hudlon G,.nf.1I P. P. Findlay LaIC.II•• laIC.II.. lunk.. o. Me". Paulus Mal....r" Albu Campton Richa,d"", Richard"", Irwin Irwin Wall.f Wall.f Strachan Hamb,a Cault.r Rudd Fralt Prain lu,d.n Smits Ilai.. Cach,an .ablan I.ckingham leckingham leckingham Ki,kpatrick Mudd Nakin T.,....09n • Dickinson C,awfard Brownrigg Irownrigg 'et.r$Oft Tham"", Read lampert AI..on.... AI..and.. Smith Fanyth HorrilOn Mu,phy Mu,phy d. Noufvill. R.nd.n Sengi., Pinto losto Koch McHa,dy lCiu_ Maclar.n MocLar." loeb Cousin Tu,ne, Harrison l ••per Thoma. luch luch MacGtOOCN" Gorlia Baring d. Villi... Christie Tuck., Searl. RUlh C,akoart Harris Saald Brown Rathochild Eg.l""d T"-"", Engelha,d Vuill_. "'"y eData as of 1962. from "The African Mineral Industry," by Alvin W. Wolfe, in Social Problems, #2, 1963.