THE OIL CONSPIRACY

An investigation into how multinational oil companies provide Rhodesia's oil needs

The entrance to the Mobil Refinery near Durban, South Africa

Center for Social Action of the United Church ofChrist This report is based on information and documents which were passed to the Center for Social Action of the United Church of Christ by an organization called OKHELA. Enclosed with the material was a state­ ment which reads as follows:

"OKHELA is a clandestine organization of white South African patriots who, as militants, are en­ gaged in providing invisible support to the National Liberation struggle, headed by the African N a­ tional Congress of South Africa (ANC). This commitment to the ANC's fight against fascist apartheid, settler colonialism and imperialism includes armed struggle." "The material provided here was gathered by OKHELA during a period of intensive and secret re­ search, with infiltration and intelligence work lasting over a year. The work took place in South Africa, Rhodesia, Mozambique, Britain, the Netherlands and the United States. This is a continu­ ation of an OKHELA program of carrying out clandestine operations both inside and outside South Africa to expose the nature of Western capitalist collaboration with racist minority regimes in Southern Africa."

The Center for Social Action of the United Church of Christ (CSA) was approached by OKHELA to write and publish this report because of the Center's earlier research and activity on the issue 9f Rhodesian sanctions. Prior to the publication of this report, the CSA exposed the illegal sanctions-breaking activities in which the New York office of Air Rhodesia was engaged. That revelation culminated in the closing down of Air Rhodesia's New York office. The CSA further launched a nationwide campaign aimed at trav­ el agencies that were promoting American tourism to Rhodesia. June 21, 1976

Additional copies of this report can be obtained from:

The Center for Social Action 8th Floor 297 Park Avenue South New York, New York 10010 United States of America

Price: $1.00 plus postage. (Special rates for bulk orders.)

The printing of this report has been made possible, in part, by a grant from the Robins Fleming Fund. CONTENTS

Chapter 1: Summary

Chapter 2: Introduction 2.1 Historical background 2.2 Sanctions 2.3 Western ambivalence over sanctions 2.4 Implications for the U.S. government

Chapt.er 3; The background on oil 3.1 The legal background 3.2 Rhodesia's oil needs

Chapter 4: How oil sanctions have been evaded 4.1 Early methods 4.2 Genta 4.3 Mobil 4.4 The gasoline "paper-chase" 4.5 The improved paper-chase 4.6 The diesel paper-chase 4.7 Aviation turbine fuel (Avtur) . 4.8 Aviation gasoline (Avgas) 4.9 Non-fuel oil products

Chapter 5: The evidence 5.1 Origins of the documents 5.2 Selected quotes from the documents 5.3 Letter from Genta to Mobil (Rhodesia); Document #1 5.4 Letter from Mobil (South Africa) to Mobil (Rhodesia); Document #2 5.5 Mobil's imports of non-fuel oil products; Document #3 5.6 Mobil (Rhodesia) and the middle-men; Documents #4, #5, #6 5.7 Two revealing invoices; Documents #7, #8 5.8 Rhodesia's fuel consumption; Documents #9, #10 5.9 Financial links; Document #11 5.10 Mobil's internal finances; Documents #12, #13, #14

Chapter 6: The role of the other oil companies

Chapter 7: The importation routes

Chapter 8: More on Freight Services Ltd.

Chapter 9: Some legal points

Appendix A. List of names B. Document # 15 C. Document # 16 D. Document #17 E. Document # 18

Mp The entrance to Mobil's Johannesburg Office

A storage tank near Mobil's Durban Refinery

2 Chaptr 1 SUMMARY In 1973, Americans learned during the Arab oil embargo, just what a shortage of petroleum could do to their livelihood. Supposedly amuch more serious trade embargo has been in force against Rhodesia's white minority regime for the past decade. But petroleum shipments to Rhodesia have continued almost without disruption, in spite of the mandatory United Nations sanctions which are aimed at achieving majority rule. Today, the tiny white population of Rhodesia hangs onto power with a tenacity few could have foreseen. But no amount of determination by them could have kept their economy and military machine operating if they bad not received a steady flow of oil supplies. This report reveals-for the first time-how oil seems to be getting through and keeping white rule alive in Rhodesia. The Center for Social Action of the United Church of Christ has obtained a series ofrevealing secret documents, which appear to show that Mobil Oil Corporation's subsidiary in South Africa and its subsidiary in Rhodesia have jointly helped to plan and implement a decade-long campaign to provide Rhodesia's oil needs. Mobil has repeatedly denied any sanctions-breaking activity. Mobil's Chairman, Rawleigh Warner, Jr. has said that since U.S. law forbids Mobil and its affiliates from engaging in any transactions involving goods destined for Rhodesia, "the management of Mobil's Internationai Division has gone to considerable effort to make sure that we have complied fully with the restrictions imposed upon us by the U.S. government in this con­ ne~tion." Yet it would appear that if he consulted with his International Division Executive Vice President, who is also a director of Mobil (South Africa), he might learn what is explained in this report-namely, that a highly sophisticated scheme seems to have been operated by Mobil (South Africa) for ten years, whereby the latter has sold oil products to Rhodesia through an agreed chain ofintermediary South African companies, most ofwhich are in fact bogus. These products were ultimately retailed by oil companies within Rhodesia, including Mobil's Rhodesian subsidiary. The intention of the scheme seems to have been to allow oil products to get through this chain without the eventual destination being discovered by outside observers. But even if the destination were discovered, the scheme also seems to have been constructed to concealfrom all but the most diligent researcher, that Mobil (South Africa) had any intention of selling goods which were bound for Rhodesia. We believe that the documents presented herewith and other relevant evidence tends to establish at least on a prima facie basis that: ' • Mobil (Rhodesia) was asked in the mid-sixties by a secret Rhodesian government agency caJled Genta to set up a 'paper-chase' of intermediary companies, through which Genta could import all of Rhodesia's gas­ oline and diesel requirements from Mobil (South Africa); • Other oil companies in South Africa-Shell, B.P., Total and Caltex-have set up similar procedures to get other oil products to Rhodesia; , •A confidential memorandum within Mobil (Rhodesia) stated: "When orders for lubricants and solvents are placed on our South African associates [i.e,. Mobil (South Africa)], a carefully planned 'paper-chase' is used to disguise the final destination ofthese products. This is necessary in order to make sure that there is no link between MOSA [Mobil (South Africa)] and MOSR's [Mobil (Rhodesia)'s] supplies••• "This 'paper-chase' which costs very little to administer, is done primarily to hide the fact that MOSA is in fact supplying MOSR with product in contravention of U.S. Sanctions Regulations•••"

3 Only Portugal and South Africa refused to abide by this Cha er 2 decision. INTRODUCTION The United States voted in the U.N. Security Council to support economic sanctions against Rhodesia, and further­ more the President promulgated two Executive Orders, 2.1 HISTORICAL BACKGROUND numbers 11322 and 11419, prohibiting the trade of any Rhodesia is ruled by one of the two remaining white commodities or products with Rhodesia by any person or minority regimes in souther Africa. Britain began its company subject to the jurisdiction of the United States. colonial rule of Rhodesia betw en the years 1889 and 1896 through treachery and with the aid of its troops stationed in South Africa. This was the first step in an attempt to realize the dream of Cecil John Rhodes-a dream of 2.3 WESTERN AMBIVALENCE OVER "British soil from Cape to Cairo." Political decisions were SANCTIONS made within Rhodesia by a totally white electorate as the Britain, which initiated economic sanctions against franchise was restricted by financial qualification re­ Rhodesia, did so not only ambivalently but primarily to quirements, the intention being to exclude African par­ "save face" with the Afro-Asian nations. Prime Minister ticipation. Although Britain maintained constitutional Wilson went so far as to inform Smith of the kind of sanc­ authority, it never exercised its power to veto dis­ tions Britain would apply, singling out oil and tobacco, in criminatory legislation. the event of a UOI. As a result, when UOI was declared, In 1963 Rhodesian whites began to agitate for in­ Smith was well prepared for sanctions, while Britain had dependence from Britain. In the negotiations, Britain's neither a plan of implementation nor a method of enforce­ condition for the granting of full independence was the ment. Having a favorable balance of trade with, and the guaranteeing of basic African rights. This was unaccep­ largest investment in, South Africa and realizing that table to white Rhodesia. In 1964 Ian Smith became the South Africa would go to the aid of white Rhodesia, Bri­ Prime Minister and immediately began making tain was afraid of disturbing its relations with South preparations for a unilateral declaration of independence Africa. Britain therefore stalled pressures for comprehen­ from Britain. Following the breakdown of talks with Bri­ sive mandatory sanctions for three years, during which tain, the Smith regime declared Rhodesia independent on time Smith was able to diversify and consolidate the November 11, 1965. On March 1, 1970, Rhodesia Rhodesian economy and find new trading partners. proclaimed itself a Republic and announced an election on Britain and other Western countries have another a new constitution in which less than one percent of the reason for their ambivalence on sanctions. Should sanc­ total population (95 percent African) was permitted to tions prove effective in the case of Rhodesia, a precedent vote. would be set for bringing sanctions against South Africa. If that situation were to materialize, the huge financial in­ vestments that the USA, Britain, West Germany, France 2.2 SANCTIONS and others have in South Africa would suffer. When white Rhodesians declared ~unilateral declaration Using the United States as a case study on how sanc­ of independence (UDI), they did so with almost no tions have been evaded, we see the following: diplomatic support. But economically they were not left stranded. In the months before UOI, the government and foreign-owned industry made preparations for the ex­ pected international sanctions. Mining companies like • In the secret National Security Study Memorandum Union Carbide transferred large mineral stockpiles to No. 39 (which was subsequently leaked), option 2, ports in territories neighboring Rhodesia, where country­ which was later adopted, was for the U.S. to "gradu­ of-origin would be more difficult for sanctions enforcers to ally relax sanctions" against Rhodesia; determine. Tobacco stockpiles, too, were set up by the regime to cushion white farmers from severe financial • Union Carbide, which has enormous economic in­ _losses. With no sea coast and no oil wells, the Smith gov­ terests in Rhodesia, put much effort and money into ernment facing UDI saw oil as its weakest link. changing the U.S. law, in order to exempt chrome Britain's punitive measure in response to UDI was the from the sanctions regulations under the guise of its imposition of economic sanctions. Initially these were im­ being a strategic mineral; plemented slowly, voluntarily and selectively. Under much pressure Britain eventually called a meeting of the United • The Center for Social Action of the United Church Nations Security Council in December 1966, and agreed to of Christ disclosed the sanctions-breaking activities the imposition of mandatory sanctions, which were con­ of the Air Rhodesia office in New York, of other fined to oil, asbestos, iron, chrome, sugar, tobacco, copper, travel-related companies such as Hertz and Holiday meat, hides and skins. As selective sanctions proved dif­ Inn, and of hundreds of travel agencies that were set.. ficult to implement, the Afro-Asian states decided in April ting up tours to Rhodesia in violation of U.N. sanc­ 1968 to call for comprehensive sanctions, which covered tions regulations. This information was given to the items such as travel, finances and arms. Britain conceded State Department, the Treasury, the Commerce and Security Council Resolution No. 253 was passed, mak­ Department and the Federal Aviation Agency, but it ing it illegal for any United Nations member-country to ­ was virtually ignored and certainly no prosecutions trade or have any financial transactions with Rhodesia. were made;

4 • Rhodesia has been able to recruit mercenaries in the U.S. Chapt r 3 THE BACKGROUND ON OIL 2.4 IMPLICATIONS FOR THE U.S. GOVE NMENT This report provides the most important single revelation 3.1 THE LEGAL BACKG OUND of apparent sanctions-breaking to have been made in the ten In November 1965, the United Nations Security Council years since un I. It provides highly detailed information on recommended to its member states that sanctions be im­ how hodesia appears to have been importing the one com­ posed against Rhodesia on a voluntary basis. When this modity it cannot do without and cannot obtain within its own proved to be ineffective, the Security Council went on in borders, namely oil, through the cooperative activities of December 1966 to impose selective but mandatory sanc­ Rhodesian and South African subsidiaries of oil companies tions. One of the commodities covered was oil. U.N. whose head offices are in France, Britain, the Netherlands Resolution 232 stated: and the United States. "The Security Council ... decides that all States The evidence produced in this report tends to demonstrate Members of the United Nations shall prevent . .. par­ that Mobil, an American-based company, may have played a ticipation in their territories ... or by their nationals more central role than any other company in enabling ho­ or vessels of their registration in the supply ofoil or oil desia to obtain the oil products it needs, so that its economy products in Southern Rhodesia." and its armed forces can continue to function. The Center for Social Action demands an investigation by the U.S. Admin­ (Our italics. Rhodesia is still sometimes referred to as istration and the Congress to see whether Mobil is g ilty of Southern Rhodesia.) breaking U.N. sanctions and U.S. law. Secretary of State Kissinger said during is speech in In May 1968 the Security Council extended mandatory Zambia on April 27, 1976: sanctions to cover all goods other than certain humanitarian supplies. U.N. Resolution 253 stated: "The United States will take steps to fulfill completely "The Security Council ... decides that ... all States its obligations under international law to [impleme t] Members of the United Nations shall prevent ... the mandatory economic s nctions against R odesia." sale or supply by their nationals or from their t~rritories of any commodities or products ... to any He went on to add: person or body in Southern Rhodesia or to any other person or body for the purpose of any business "In parallel with this effort, we will approach other carried on in or operated from Southern Rhodesia, industrial nations to insure the strictest and broadest and any activities by their nationals or in their international compliance with sanctions." territories which promote or are calculated to promote such sale or supply." It was generally understood that this latter reference allud­ After the passing of these two U.N. resolutions, the ed not only to Western European nations but also to South United States, together with nearly all other U.N. member Africa, and presumably this is one item that will be on the nations, incorporated the essential clauses of the sanctions agenda in the meeting between Kissinger and Vorster in regulations into their own legal statutes. For instance, West Germany on June 23 and 24, 1976. United States Executive Order 11419, signed by President Johnson in July ~968, said in part: The Center for Soci I Action of the United Church of Christ, in publishing this report which highlights the role of Mobil's subsidiaries in ssisting the Smith regime in Rho­ "The following [is] prohibited effective immediate­ desia to continue fu ctioning, calls on the American admin­ ly ... : Sale or supply by any person subject to the istration: jurisdiction of the United States, or any other ac­ tivities by any such person which promote or are calculated to promote the sale or supply, to any per­ • to sta d by the words of its own Secret ry of State; son or body in Southern Rhodesia or to any person or body for the purposes of any business carried on in or .•"To implement U.S. law; to carefully examine the docu­ operated from Southern Rhodesia, of any com­ mentary and factual evidence presented herewith; and modities or products.... The term "person" means to seek further evidence with a view to prosecuting an individual, partnership, association or other unin­ Mobil Oil Corporation, and any Mobil directors and corporated body of individuals, or corporation." "executives in so far as they have engaged in illegal sanc­ tions-breaking activities; Clearly it is illegal for American firms to supply prod­ ucts to Rhodesia; and it is illegal for them to carry out ac­ tivities which "are calculated to promote the supply" to • To press the South African government to prevent Rhodesia of such products. This aspect of the law is cru­ Sout African subsidiaries of American, British, Dutch cial, because it prevents the sale of products to somebody an French oil companies from rranging the provision outside Rhodesia when the intention is that that person will of Rhodesia's oil requirements. resell them to Rhodesia. Thus any American company 5 which enables or allows its subsidiary in Rhodesia to • waxes bypass the sanctions regulations is violating the letter and • solvents spirit of the U.S. law. (Further details and interpretation of • bitumens the sanctions regulations can be found in Chapter 9.) • asphalts • plus various other specialized products. In October 1975, Rev. Robert Powell of the National Council of Churches of Christ and chairperson of the Oil products are needed not only for fueling vehicles, but I.C.C.R.'s Southern Africa project, wrote to Rawleigh also for everything from bonding soles onto shoes to sur­ Warner Jr., Chairman of the Board of the Mobil Oil Cor­ facing the roads along which the shoes will walk. Every poration, asking various questions about the role of Mobil country needs oil products if its economy is not to collapse. in Southern Africa, with particular reference to the supply Rhodesia is no exception. of oil products to Rhodesia. On November 13, 1975, Mr. Shortly before UOI, a pipeline to carry crude oil was Warner replied: built from Beira on the Mozambican coast (see map on in­ side rear cover) to Umtali in Rhodesia. At Umtali an oil .- 6'[After UDI in 1965] the U.S. government im­ refinery was built by a consortium in which the principal posed certain- prohibitions on transactions by com­ partners were Mobil, Caltex, Total, Shell and B.P.; these panies like Mobil and its affiliates with Southern were the five foreign oil companies marketing oil products Rhodesia which had the effect ofprohibiting the Mobil in Rhodesia. This refinery could produce virtually all the group ofcompanies from engaging outside Rhodesia in oil products that Rhodesia needed. However, after the im­ any transactions involving goods ... destined for position of voluntary sanctions in November 1965, the Rhodesia. . .. The management of our International refinery was starved of crude oil. Division has gone to considerable effort to make sure In the spring of 1966, the Smith regime attempted to get that we have complied fully with the restrictions im­ around sanctions regulations by arranging through in­ posed upon us by the u.S. Government in this connec­ termediaries for an oil tanker, the Joanna V, to be purchas­ tion. " ed while on the high seas. It then sailed to Beira with its • "neither Mobil nor its other affiliates engage in any cargo of some 400,000 tons of crude oil, which would be business transactions with [Mobil Rhodesia] and enough to provide Rhodesia's oil needs for about a year. ... has no control over [its] operations. This applies After intensive diplomatic activity, the Joanna V was to Mobil's affiliates in South Africa as well as all other prevented from unloading its cargo and Britain was em­ Mobil affiliates." powered by the United Nations to use force to prevent (Our italics. The letter is shown in full in the Appen­ other tankers from bringing crude oil to Beira. Britain's dix.) naval blockade of Beira continued until 1976, when the newly independent Mozambique declared that it would en­ From the evidence produced in this report, we believe it is force sanctions. (Before independence, Mozambique had fair to deduce that the statements made above by Mobil's been a Portuguese colony, and Portugal under Salazar and Chairman are not in fact correct. Indeed, far from obeying Caetano had refused to implement sanctions.) U.N. regulations and the laws of their respective countries, Unfortunately for Rhodesia, there was no refinery at Mobil, Caltex, Shell, British Petroleum and Total appear to Beira, so it was clear that if any crude oil came to Beira it have been engaged for the last ten years in arranging the sup­ must be intended for the Rhodesian refinery at the other ply to Rhodesia of virtually all its requirements of fuel and end of the Beira pipeline. Since early 1966, the pipeline has other oil products. not been used and the Rhodesian refinery has fallen into disrepair. The oil left in the pipeline-some 14,000 tons of 3.2 RHODESIA'S OIL NEEDS it-has lain dormant, and there has even been a dispute as Crude oil, when it emerges from the ground, is a black, to who owns it. sticky and uninteresting-looking liquid. But its properties Many thought that this represented the beginning of the are remarkable. It can be refined into a large variety of oil end of Rhodesia. It was impossible to import crude oil, and derivatives (collectively known in the oil trade as the only alternative was to import a whole range of "product" or "products"). These include fuels, such as: different oil products over lengthy land routes. This would premium gasoline not only be expensive, but it would also involve evading • regular gasoline sanctions regulations for the importation of each product. • diesel fuel (also known as gas oil and as However, to the consternation of those who maintained A.O.O.-Automotive Diesel Oil) that sanctions regulations would finish the Smith regime • power kerosine "within weeks, not months", it became clear from the • illuminating kerosine reports of visitors to Rhodesia that oil products were still • liquified petroleum gas (such as Butane and Propane, arriving from somewhere. Gas stations operated by the and generally known as L.P.G.) Rhodesian subsidiaries of Mobil, Caltex, Shell, B.P. and •Avtur (aviation turbine fuel) Total continued selling their usual range of products. The Avgas (aviation gasoline) most that the oil companies in Rhodesia would say was that they bought their products from a government agency Also, there are what we will call non-fuel oil products: within Rhodesia; yet their parent companies outside namely: Rhodesia- denied supplying Rhodesia and said that their • lubricants Rhodesian subsidiaries were beyond their control, now be­ greases ing answerable to the Rhodesian government.

6 The great unanswered question hanging over the sanctions "P" -part of the "B.P." insignia of the British Petroleum policy of the last ten years has been: how does Rhodesia get Company, in which the British government holds a con­ its oil products? trolling interest. Than s to information and documents supplied by Soon Shell joined in, then the other oil companies. More OKHELA, the Center for Social Action of the United and more trucks were crossing the border, carrying fuel to Church ofChrist believes it is now possible to construct a des­ Rhodesia from the various South African refineries. The cription in considerable detail of how Rhodesia seems to have ownership and origins of the trucks were secret, but by obtained its oil products since UDI, and how the internation­ February 16, according to the Rand Daily Mail, 35,000 al oil companies-especially Mobil-have played what gallons of fuel were crossing the border each day; and the appears to be the central role in arranging for the provision of same amount was coming in from Mozambique. The these products. British government casually dismissed reports that Rhodesia was obtaining nearly enough fuel to satisfy its needs, by saying that these were wild exaggerations and "very clearly highly coloured." (See V.D.!., by Robert C. Chapter 4 Good, published by Faber and Faber, London, 1973.) HOW OIL SANCTIONS The disadvantage to the oil companies of using road HAVE BEEN EVADED transport was that it was expensive and somewhat un­ reliable. Rail transport avoided those problems to a fair degree; but the rail systems of both South Africa and The documents that OKHELA has supplied to the Portuguese-ruled Mozambique were government­ Center for Social Action (CSA) appear for the most part to controlled. The two governments concerned were prepared be confidential Mobil reports, plus letters to and from to condone the freelance activities of the road transport Mobil (Rhodesia) and Mobil (South Africa). Many of companies that the oil companies were using; but political­ these are highly complex and use technical terminology. ly it was a rather more provocative act to allow their own The documents themselves are shown and explained in railway systems to be used. There was always the possibili­ Chapter 5 and the Appendix. ty that Britain would suggest that UN sanctions (at least on Throughout the rest of this report, any information that vital commodities like oil) be extended to apply to South. is provided comes from three sources: Africa, and Portugal if they helped Rhodesia too blatant­ • the documents provided by OKHELA; ly. But Britain, mindful of its extensive investments in, and • further information that was provided to CSA by trade with South Africa, did no such thing. So the oil com­ OKHELA, and which is based on their own in­ panies obtained permission to transfer the transportation vestigations. According to OKHELA, this informa­ of fuel from road to rail. At that time the Beit Bridge rail tion was mostly obtained from strategically-placed link from South Africa to Rhodesia had not been built. sources in South Africa and Rhodesia; This meant that the most economical route for oil in­ • occasional press reports. volved going from the South African refineries to Louren­ It should be understood that the following account con­ co Marques (Mozambique) by ship or rail, and thert by rail tains allegations which we believe should be scrutinized from Lourenco Marques to Rhodesia. No public acknowl­ most carefully by the relevant authorities. Because much of edgment of this was made; but, however much one at­ the evidence comes from sources which cannot be publicly tempts to conceal its ownership and destination, it is hard to disguise the presence of a trainload of oil wagons. By revealed or named, the Center for Social Action does not claim that all of what follows is provable in a court. What mid-1967, the British Granada TV estimated from its own observations that about 140,000 gallons of fuel per day it does say is that the allegations made in OKHELA'S re­ was going by rail to Rhodesia via Mozambique. port require a most careful and thorough investigation so that the facts may be laid open to public scrutiny. If laws 4.2 GENTA have been violated, prosecutions should follow. Once the immediate crisis was over, it became necessary 4.1 EARLY METHODS to rationalize the whole business of oil importation, both to ensure its security and to improve long-term planning. The oil companies in Rhodesia were nervous immediate­ By now the Rhodesian government had set up a secret ly after UDI, and told the government that because of agency called GENTA. Ostensibly a private company, it is sanctions regulations they would be unable to import oil obscurely listed in the Rhodesian telephone book as "Gen­ products. But then it became clear that so long as two of ta (Pvt.) Limited," with an address in central Salisbury. In Rhodesia's neighbors, South Africa and Mozambique, fact, it is 100 percent owned by the Rhodesian government, were prepared to help or to turn a blind eye, ways could be and its chairman (George Atmore) and operations found of evading sanctions without the role of the oil com­ manager (D. Airey) were previously civil servants in the panies being detected. Ministry of Commerce and Industry. Few people in Very rough and ready methods were used at first, mak­ Rhodesia know of Genta's existence, let alone its role. ing use of hastily commandeered road transport. On February 5, 1966, after an intensive surveillance of the Genta's actual role since its establishment has been two­ South African-Rhodesian border at Beit Bridge, the Rand fold: firstly, it serves as a front, to act on behalf of the Daily Mail reported that three to four vehicles per day were government; secondly, it exerts a tight control over the im­ crossing the border with fuel supplies for Rhodesia. A portation into Rhodesia of the principal oil products and photograph of a Rhodesian fuel tanker was published; just over the activities of the Rhodesian subsidiaries of the visible through a thin coat of grey paint was a large various oil companies. Indeed, it was Genta ~hich arrang~

7 ed the purchasing ofthe oil tanker Joanna V, mentioned Chairman Warner, these regulations "had the effect of pro­ earlier. hibiting the Mobil group of companies from engaging out­ Genta's first significant act was to tell the oil com­ side Rhodesia in any transactions involving goods ... des­ panies that it would be responsible for the importation into tined for Rhodesia ..." Thus it seems that in order for Rhodesia of all fuel products. It would then sell these to the Mobil (South Africa) to supply Mobil (Rhodesia), some oil companies within Rhodesia for subsequent marketing way h~d to be found to cloak the transactions so as to get at their respective gas stations. But for non-fuel oil around sanctions regulations. I products, such as lubricants, the oil companies would have It appears that an elaborate scheme was then devised to to arrange their own importation. make it look as if Mobil (South Africa) was not involved in Rhodesia is a land of secrets. Its strict Official Secrets any trade with Rhodesia. The physical transportation ofoil Act makes any talk about the oil industry illegal. The products from the Mobil refinery to Rhodesia posed no photographer who took the pictures of Rhodesian oil in­ real problem, since unmarked railway cars were used. The stallations shown in Chapter 7 would be subject to heavy problem lay in the paperwork, because nowhere in Mobil penalties if apprehended; and several well-known persons, (South Africa)'s accounts department should there be a including two accused of working for the C.I.A., have been copy of an invoice billing a Rhodesian company. jailed for probing the country's sanctions secrets. The scheme consisted of creating what was termed a However, some things are obviously more secret than "paper-chase"-in Watergate parlance it might be called others. And one of the biggest secrets of all is that having "laundering the gasoline". This paper-chase was a system been told that they must buy their fuel products from Genta, whereby sales and payments would be passed through vari­ the oil companies in Rhodesia were then asked to set up ous South African companies which acted as intermediar­ procedures whereby Genta could import the fuel from their ies. Thus Mobil (South Africa) could sell products to a sister companies in South Africa. South African company, knowing that they would be pass­ ed on to other companies, which would eventually sell 4.3 MOBIL them to the required recipient in Rhodesia. If ever Mobil An e lIy remarkable secret is th t the tas of arranging (South Africa) were asked whether they provided oil prod­ the importation of most of Rhodesia's gasoline (both prem­ ucts for Rhodesia, they could evade the question by stat­ ium and regular) and diesel and Avtur was apparently allo­ ing that they sold only to companies in South Africa, and cated by Genta to one comp ny-Mobil. Other companies that they did not know what these companies did with the were allocated the task of importing Rhodesia's re uire­ oil. ments of the other fuels-for instance, Shell imported the " Even if some smart investigator managed to show that Avgas 100/130. • certain Mobil products had found their way to Rhodesia, Mobil was safe-so long as nobody could prove that there Before explaining Mobil's role in providing Rhodesia's was intention on the part of Mobil for the products to reach fuel needs, it is necessary to provide a little information on Rhodesia. For if intent to supply Rhodesia could be proved, some of the companies and subsidiaries involved. The Mobil Oil Corporation-which we will call Mobil Mobil (South Africa)'s parent company in the USAmight be (VSA)-is the world's eighth largest company, with assets liable to heavy penalties under U.S. law, provided it could be, and annual sales both valued at around $9 billion. It is a shown that its Rhodesian subsidiary, or V.S. citizens, or V.S.-registered company, but it has subsidiaries registered goods of V.S. origin, were involved in the scheme. Thus it in qozens of other countries. Its two principal subsidiaries was necessary to set up the paper-chase in great secrecy; in in/South Africa, both wholly-owned, are: particular, it was crucial that very few people within Mobil, a) Mobil Oil Southern Africa (Proprietary) Limited, and none outside, had knowledge of all the companies ac­ which we will refer to as Mobil (South Africa), and which tually involved as intermediaries, or had access to the few internal Mobil documents refer to as MOSA; and highly-incriminating Mobil documents in which the over­ b) The Mobil Refining Company Southern Africa all scheme was described. The paper-chase that was first used was relatively sim­ (Proprietary) Limited, which we will refer to as 'the' Mobil ple; but as we shall show, it was later made much more Refinery (because it runs Mobil's only refinery in the sophisticated. Over the years it has proved such an effective southern half of Africa, at Durban in South Africa), and method of evading sanctions, that the only thing which has which internal Mobil documents refer to as 'Morer. stopped Rhodesia doubling its imports of oil products, has Mobil's principal subsidiary in Rhodesia, also wholly­ been the shortage of foreign exchange. If Rhodesia could owned, is Mobil Oil Southern Rhodesia (Private) Limited. pay for more oil, the companies in South Africa could We will refer to this as Mobil (Rhodesia), and internal provide it. Mobil documents refer to it as MOSR. [When the context is obvious, the word "Mobil" is sometimes used within this report to refer to Mobil (South 4.4 THE GASOLINE PAPER-CHASE Africa) or Mobil (Rhodesia), as appropriate.] The method used until August 1968 for the importation Once the oil refinery in Rhodesia became starved of of most of Rhodesta's gasoline requirements, which is illus­ crude oil, Mobil (Rhodesia) had to obtain nearly all of its trated in Diagram 1, was as follows: On receiving instruc­ oil products from the Mobil Refinery at Durban. All tions concerning the quantities required by Genta, Mobil marketing of Mobil Refinery products is carried out by (South Africa) sold the required amount of gasoline to Mobil (South Africa), so that for Mobil (Rhodesia) to ob­ Sasol. (This is the South African Coal, Oil and Gas Cor­ tain its oil products, it had to purchase them from Mobil poration, all of whose shares are owned by the Industrial (South Africa). But· here there was a problem, brought Development Corporation, itself owned by the South Afri­ about by sanctions regulations. In the words of Mobil can government.) Sasol in turn sold exactly the same

8 Diagram 1

FI w diagram showing how gasoline was apparently sold by Mobil (South Africa) to Genta before September 1968.

C01H AFRrCA)

....~~~IlW'W¥'l....,ASOL 1 .-.-.._....._ry Leon and Hayhoe I ..I r--~ ~'lobil(Rhodesia) ! ...... ~--...---....GENrA

Flow diagram showing how gasoline was apparently sold by Mobil (South Africa) to Genta after September 1968.

[:MOB~:01H AFRICA)

r"....,...,.~~~~~~~~~~:;::i;SASOL------(duplicate invoice)--- ..... " \ \ I 1 Rand Oils W•T. D3velopment I I L l I W.T. ~velopment Rand Oils ,•1 ,,I ~INERAIS EXPLORAr..~ON.------'~ --~::;~ L . 1 '--... for Netherlands Bank statistical Genta account)", purposes only) I : J I I I Mobil(Rhodesia)4 -1------~ I I (copy invoice) ~~~~GENrA4-- -_.J•

------~~. Billing procedure (original invoice)

------. Path taken by copy invoice

~lIW¥I"""""~•• Payments

9 amount of gasoline to a South African company called As illustrated in Diagram 1, consecutive shipments of Parry Leon and Hayhoe, at P.O. Box 1101, Johannesburg. gasoline were handled in different ways. All would be sold Parry Leon and Hayhoe then sent to Mobil (Rhodesia) a first by Mobil (South Africa) to Sasol but then took vary­ copy of the invoice that they had just received from Sasol. ing paths. One shipment would be apparently resold by This was because it was generally agreed that Parry Leon Sasol to Rand Oils Ltd., who would "resell" it to the should avoid writing out any invoice on which Mobil Western Transvaal Development and Exploration Com­ (Rhodesia)'s name was mentioned; so Mobil (Rhodesia) pany (W.T. Development). They, in turn, would "resell" it promised to treat this copy (of an invoice from Sasol to to Minerals Exploration. The next shipment would be sold Parry Leon) as if it were an invoice made out to them. directly by Sasol to Minerals Exploration. The third would Mobil (Rhodesia) then sold the gasoline to Genta. Finally, be sold by Sasol to W.T. Development, who would "resell" Genta sold the gasoline in agreed proportions to the five oil it to Rand Oils, who would "resell" it to Minerals Explora­ companies in Rhodesia (Mobil, Caltex, Total, Shell and tion. The fourth shipment would then take the first route B.P.). This meant that Mobil (Rhodesia) bought back from again and so on. Genta some of the fuel it had imported on Genta's behalf. However, it was not only the companies involved that It also meant that gas stations in Rhodesia belonging to were bogus: at certain stages the very sales were bogus too. Shell, B.P., Total and Caltex were all selling gasoline that Let us take as an example a shipment of 10,000 litres of had been produced at the Mobil refinery. premium gasoline sold along the right hand line, i.e. from The payment scheme then took place in reverse: Genta Mobil (South Africa) to Sasol to W.T. Development to paid Mobil (Rhodesia), who paid Parry Leon and Hayhoe, Rand Oils to Minerals Exploration. The first sale, from who paid Sasol, who paid Mobil (South Africa). Mobil (South Africa) to Sasol, was genuine enough. But Thus a way had been found for getting gasoline from then things became a little more clouded (which was, of Mobil (South Africa) to Genta via Mobil (Rhodesia), with course, the intention). Sasol filled in an invoice (for exam­ the active assistance of a South African state-owned cor­ ple, invoice number 12345), billing W.T. Development for poration (Sasol), and without there being any documentary the sale of 10,000 litres of premium. On receiving this, - evidence of a sale to a Rhodesian company by any of the W.T. Development (i.e. Mr. Oberholzer in his attorney's three companies involved in South Africa. office) filled in an invoice form with the W.T. Development Although this may appear to have been a relatively letter-head (which had been specially printed for this pur­ foolproof method, Genta was still not satisfied that it was pose by Freight Services Ltd.), billing Rand Oils (i.e. David sufficiently safe. There was always the possibility that an D. Patrick) for the sale of 10,000 litres of premium. On it investigation might take place-for instance, the United Mr. Oberholzer put the same date and the same invoice States government might insist that Mobil carry out in­ number as he found on the invoice he had just received vestigative work to check on the ultimate destination of all from Sasol. When M r. Patrick received this invoice, he fill­ its large sales of gasoline. ed in an invoice form with the bogus Rand Oils letter-head, again putting the same date and invoice number and billing 4.5 THE IMPROVED PAPER-CHASE Minerals Exploration for the sale of 10,000 litres of At Genta's insistence, Mobil (Rhodesia) and Mobil premIum. (South Africa) then devised a more sophisticated method Minerals Exploration then filled in an invoice billing a for importing gasoline. By this time Parry Leon and Genta account at the Netherlands Bank (a South African Hayboe had been amalgamated into a large South African bank). The Netherlands Bank had standing instructions to firm called Freight Services Ltd., a shipping and forwarding pay Minerals Exploration out of the Genta account on company based in Johannesburg. Freight Services Ltd. has receiving such an invoice from Minerals Exploration. But from the beginning played an absolutely crucial role as a Minerals Exploration, instead of paying Rand Oils (who middle-man in the evading of Rhodesian sanctions. The had theoretically sold them the consignment of premium), first thing that Freight Services Ltd. did as part of the bypassed both them and W.T. Development, and made a "new" method of sending gasoline to Rhodesia was to rent payment direct to Sasol-despite the fact that Sasol had P.O. Box number 31883 at Braamfontein (in never made out a bill to them. Finally, Sasol paid Mobil Johannesburg), and to use this as the address for a bogus (South Africa). company they invented called Minerals Exploration Ltd. To avoid the delays that sometimes resulted from the Two other bogus companies were also invented. The large number of middle-men involved, Sasol arranged to first was called Rand Oils Ltd; this used the mailing address send directly to Minerals Exploration, in a sealed envelope, P.O. Box 2581, Johannesburg, and was operated by a man a copy of the invoice selling the gasoline to W.T. Develop­ called David D. patrick. The second was named· the ment (if we continue to follow this particular example). Western Transvaal Development and Exploration Company, Thus Minerals Exploration received a copy of invoice and used the address P.O. Box 677, Lichtenburg, number 12345 from Sasol to W.T. Development billing the Transvaal. This was operated by an attorney called Arnold latter for 10,000 litres of premium. Although Minerals Ex­ Jacobus Oberholzer, of the legal firm Oberholzer and Van ploration was not mentioned anywhere on that invoice, Straaten, at P.O. Box 396, Lichtenburg. they then knew that the paper-chase had begun and that The ordering of gasoline was a relatively simple process. some time later they would receive an invoice number Genta specified to Mobil (Rhodesia) how much gasoline 12345 from Rand Oils billing them for the same amount of they wanted from Mobil in South Africa; Mobil premium. The receipt of the duplicate invoice from Sasol (Rhodesia) then passed this request on by letter, telex or to W.T. Development therefore served as an authorization telephone. But the method whereby the gasoline was then for Minerals Exploration to proceed immediately with bill­ sold to Genta via a chain of intermediaries was far more ing the Netherlands Bank (Genta account) for the amount complicated. of premium mentioned in that duplicate. In fact, that

10 meant that the bank could then pay them for the premium cerned sold the premium to an address in Rhodesia-the before they even received the invoice actually made out to nearest they came to it was when Minerals Exploration them by Rand Oils. In Mobil parlance, Minerals Explora­ sold it to Genta care of their agents in South Africa (i.e. the tion was authorized to use the duplicate invoice from Sasol Netherlands Bank). Secondly, Minerals Exploration was a as their "action document." front behind which the company doing the most crucial Genta was able to keep track of the whole procedure at work (i.e. Freight Services Ltd.) was able to hide. Thirdly, one step removed, because whenever the Netherlands Bank neither Rand Oils nor W.T. Development had to be en­ received an invoice from Minerals Exploration, they sent trusted with actually handling the vast quantities of money to Genta a copy of that invoice, which was their way of tell­ involved in paying for these shipments. Fourthly, neither ing Genta that they had paid Minerals Exploration out of of these two companies was able to compile statistics on the Genta account for the amount of gasoline mentioned the full extent of the traffic, because neither was involved in on that invoice. all of the shipments. Finally, there was nowhere within The only place where Mobil (Rhodesia) featured in the Sasol's sales department any evidence that Minerals Ex­ whole business was when Minerals Exploration sent them, ploration was buying so much gasoline from Sasol-for for statistical purposes, those very same copy invoices that two shipments out of three were apparently sold by Sasol they had received directly from Sasol. to Rand Oils or W.T. Development. This was important, By 1971, the payment procedure had been modified because Sasol is owned by the South African government, slightly, in that the Minerals Exploration bills to Genta and it could have caused embarrassment if it was realised were sent care of the Rhodesian Mission in Johannesburg, that Sasol was selling so much gasoline to a company ac­ rather than care of the Netherlands Bank. ting as a front for Freight Services Ltd., which was in­ The most significant aspect of the whole operation was that volved in a number of other sanctions-breaking activities. Mobil (Rhodesia) could claim that it was not buying gasoline The fact that Sasol was secretly sending duplicate invoices from outside Rhodesia. But what was happening was that directly to Minerals Exploration provides some evidence Mobil (South Africa) was secretly arranging to supply that Sasol was aware of the true nature of the whole opera­ Rhodesia with its ~asoline requirements. The role of. tion. Mobil (Rhodesia) was to help set up the paper-chase, i.e. the chain of intermediaries, whereby Genta could import gaso­ line. Genta then resold this gasoline to all the oil companies 4.6 THE DIESEL PAPER-CHASE in Rhodesia-including Mobil. As with gasoline, the method whereby diesel fuel was Various other objectives were achieved by this apparent­ imported into Rhodesia was rendered considerably more ly laborious procedure,,'Firstly, none of the companies con- sophisticated from September 1968. Again, most of Diagram 2 Flow diagram of how diesel fuel (ADO) is apparently sold by Mobil (South Africa) to Genta. .{' ~ OBIL(S,+AFRICA)--.--

Botswana Botswana Company X I calers ~rnr°rt 1 1

Company X W.T. Development Rand I ~ t 7S j ...... ~~~-~~---.[..-....:-~~:~:NERAIS ErORA~IO\:~,------~

Netherlands Bank \ . ---+(Genta account) ..., (cop! for ~ statistical I purposes only) l , Mobil(Rhodesiar..... --," I (copy: invoice) I ~~~~~GE NT' Af - --.I'

--- • Billing procedure (original invoice)

------. Path taken by copy invoice

~~~~•• Payments

11 Rhodesia's requirements were provided by Mobil (South Africa), and Minerals Exploration was the key link Ch tar 5 betw en them and Genta. The middle-men between Mobil THE EVIDENCE (South Africa) and Minerals Exploration (see Diagram 2) were the bogus companies, Rand Oils and W.T. Develop­ 5.1 ORIGINS OF THE DOCUMENTS ment, plus two more (probably bogus) called Botswana One way in which Mobil and the other oil companies in Carriers and Botswana Transport, plus one whose name Southern Africa have been protected from being exposed we do not know and we will call company X. The payment as sanctions-busters, is that anything to do with oil in procedures and the use of copy invoices were the same as Rhodesia is covered by the Rhodesian Official Secrets Act, for gasoline importation. and the secrecy surrounding the industry is almost as in­ However, by 1971, the procedure had been somewhat tense in South Africa. But the oil companies have also been simplified, in that the number of middle-men between protected, as intended, by the sophistication of their im­ Mobil (South Africa) and Minerals Exploration were portation scheme. Firstly, it is a scheme in which very few reduced to one, namely, the Motor and Industrial people indeed know exactly what is happening-though a Transport Corporation, a subsidiary of a large South number of people have knowledge about certain aspects of African company called Bonuskor Ltd. When Mobil the scheme, without necessarily knowing the names of the (South Africa) sent an invoice to Motor and Industrial, companies involved. Secondly, even for those who do have they sent it not to their official address, but to Box 31883 in a good idea of what is happening, it is impossible to prove it Braamfontein-which happens to be the address of unless documentary evidence can be produced. And the Minerals Exploration, itself a front for Freight Services very essence of the scheme is that hardly any incriminating Ltd. Thus there was no need for Motor and Industrial to documentation gets created; for if the scheme is that Com­ make out an invoice to Minerals Exploration; the Freight pany A sell oil to B, who sell it to C, who sell it to D, then Services employee who handled the mail coming into Box there is no single document proving that A intended it to be 31883 opened the letters containing invoices addressed to sold to D. Motor and Industrial, and then made out similar invoices OKHELA has informed the Center for Social Action of to Genta on Minerals Exploration paper as before. the United Church of Christ that this problem became very clear to them after their investigations reached a certain stage. The public would only be convinced of what they 4.7 AVIATION TURBINE FUEL (AVTUR) had discovered if they could obtain documentation which conclusively proved what was happening. But it was This, again, was imported by Genta from Mobil (South already clear that the only incriminating documentation Africa), who provided all of Rhodesia's requirements. This that would exist was of two types: time the paper-chase was relatively simple; Freight Services bought the Avtur from Mobil (South Africa) and sold it (a) Letters which short-circuited the carefully-planned directly to Genta. paper-chase, thereby proving that there was a business relationship between, say, Mobil (South Africa) and Mobil 4.8 AVIATION GASOLINE (A VGAS) (Rhodesia), or between Mobil (Rhodesia) and Rand Oils Ltd. This was imported in two ways, according to the type of Avgas. All Rhodesia's requirements of Avgas 100/130 (b) Secret policy documents, in which the whole concept were imported by Genta from Shell (South Africa). Avgas I of the importation operation was explained to the very few 115/145 and Avgas 80 were imported by Genta from . people who needed to know it. Mobil (South Africa) using two alternative middle-men: Trek (a haulage company, not the better-known Trek Fortunately, OKHELA has succeeded in obtaining Petroleum Company) and Caritas (a firm of clearing copies of both types of documentation. These documents agents). have been passed on to the Center for Social Action, When Mobil (Rhodesia), acting for Genta, ordered together with additional background information. Avgas 115/145 by telex from Mobil (South Africa), the In this report, the Center for Social Action of the United code word "pineapples" was used; and the word "paw­ Church of Christ is publishing over 30 pages of the paws" was used for Avtur. documentation, omitting only a few of the pages which it has. It seems worth-while at this stage to quote a few of the 4.9 NON-FUEL OIL PRODUCTS more incriminating paragraphs from these documents. Mobil also used the paper-chase concept for importing into Rhodesia various non-fuel oil products such as 5.2 SELECTED QUOTES FROM THE lubricants. Different intermediaries were used for different DOCUMENTS products, just as with fuels. Again, as with fuels, the Mobil • From Genta to the Managing Director of Mobil refinery in South Africa was almost always the source of (Rhodesia): the products. But with these non-fuel products, Genta did ". .. we attach a statement detailing estimated re­ not feature in the buying chain; as has already been stated, quirements of Petroleum Fuels for the period Genta left it to the various oil companies to arrange their January/April, 1974. (...) we shall be obliged if you own importation of these products. will also pass this information to your associates [Le. Some of the methods used by Mobil for importing non­ Mobil (South Africa)]" fuel products are described in section 5.5 below. (Quote taken from Document #1; see Section 5.3)

12 • From Mobil (South Africa) to Mobil (Rhodesia): guise the final destination of these products. This is ". .. we should be able to supply your initial re­ necessary in order to make sure that there is no link q irements [of Hexane] without too much trouble. between MOSA [Mobil (South Africa)] and MOSR's (...)I think you can tell Rhodesian Industries that we [Mobil (Rhodesia)'s] supplies... will be able to supply them during 1974 ... " "This paper-chase which costs very little to administer, is (Quote taken from Document #2; see Section 5.4) done primarily to hide the fact that MOSA is in fact supplying MOSR with product in contravention of U.S. • From Mobil (Rhodesia) to Mobil (South Africa), con­ Sa ctions regulations ..." cerning the flow-diagram for the paper-chase for im­ porting diesel fuel (see Diagram 2): "Genta allocates to Mobil the importation of "The important feature of this plan is that the original Premium, Regular, ADO [diesel fuel], and Avtur billings by MOSA [Mobil (South Africa)] to the two or [Aviation turbine fuel]. Avtur is imported on behalf of three organizations in the top line and the subsequent Industry despite frequent attempts by Shell to stop this re-billing by those organizations to the second line and ... While Mobil imports Avtur, other companies im- ultimately the third re-billings by the second line to the port kerosene, avgas etc.." . third line are, to all intents and purposes, meaningless (Quotes taken from Document # 17; see Appendix) and are merely our false trail being laid ... • From another internal Mobil (Rho~esia) report: "You might consider that the procedure that we have "With V.D.I., it became necessary to impose certain adopted is unduly complicatep and unnecessary, but as security restrictions so as not to link Mobil South was conveyed to you when you were here, it is the wish Africa with Mobil Rhodesia. The East Coast route[i.e. of George's people [a reference to Genta, whose Chair­ by ship from South Africa to Mozambique, and thence man is George Atmore] that we involve and com­ by rail to Rhodesia]was, therefore, overlooked for the plicate this matter to a far greater degree than pertains following reasons: (...) With the East Coast being un­ at present in the hope that it will discourage an in­ der heavy surveillance it was considered undesirable to vestigation." have Mobil drums stacked at Mozambique ports, even (Quote taken from Document # 16; see Appendix) though the names on the drums had been painted out. " • From an internal Mobil (Rhodesia) report: (Quote taken from Document # 18; see Appendix) "When orders for lubricants and solvents are placed A number of the documents are reproduced in full over on our South African associates [j.e. Mobil (South the next few pages. Three of the longer and more detailed Africa)], a carefully planned paper-chase is used to dis- ones, all highly secret, are shown in the Appendix.

A Mobil gas station in Salisbury, Rhodesia.

13 5.3 LETTER FROM GENTA TO MOBIL (RHODESIA)

DOCUMENT #1

/ IMPORTERS AND {EXPORTERS (PVT.) LIMITED

FIRST FLOOR LlNQUENDA HOUSE SALISBURY TELEPHONES 25113-4-7-9-0 TELEGRAMS 'GENTA· P.O. BOX 8442 CAUSEWAY RHODESIA TELEX RH2228

Our Ref DA/EY/8135

3rd December, 1973.

Mobil Oil Rhodesia (Pvt) Ltd., P. O. Box 791, SALISBtJRY

For attention Mr. J. B. Nicol

Qear Sir,

l~- Referring to our letter 7852 of 31st July, 1973, we attach a statement detailing estimated requirements of Petroleum n Fuels for the period January/April, 1974. These again are expressed in cubic metres.

Mr. Atmore has taken a copy of ,this statement with him· on his present visit to Capetown, but we shall be obliged if you will also pass this information to your associates. The same " details have been supplied to our Agents in Lourenco Marques.

Yours faithfully,

Encl.

14 DOCUMENT #1 (coot)

..~ " !. .. ~ " , '..•. '- ~ , ~ ....

MOBIL 011.1 RHODESIA (PVT) LTD.

ES'1'TMAT~D "REqlJIR~MENTS

. t' ., JANUARY - APRIL, 1974 \ ::' . CURIe ME'rRES . ,.f

January February March April

Premium 4200 4000 3900 4400

Diesel 6790 6570 6490 6570

Avtur 2?()O 2170 2~580 2390

Document # 1 is a letter from D. Airey, who is the head office of Mobil (South Africa). "Your associates" Operations Manager of Genta, the semi-secret Rhodesian refers to Mobil (South Africa). The identity of Genta's government agency controlling fuel imports. It is addressed "Agents in Lourenco Marques" is not known; it could be to Berwick Nicol, Managing Director of Mobil . the Lourenco Marques branch of Freight Services Ltd. The (Rhodesia). reference to Lourenco Marques makes it fairly clear that Every four months, Genta instructs Mobil (Rhodesia) to this fuel was intended to come via Mozambique on its way arrange the importation to Rhodesia of specified quantities from South Africa to Rhodesia. of Premium gasoline, Regular gasoline, Diesel fuel, and Further analysis of the quantities specified is given in Avtur (Aviation turbine fuel), to come from the Mobil Section 5.8. The fact that Mobil was not asked to import refinery in South Africa, via the paper-chase referred to in any Regular gasoline at this time suggests that Rhodesian Sections 4.5 and 4.6. reserves were already considered adequate; or possibly that The "Mr. Atmore" referred to is George Atmore, Chair­ for a while all the importation of Regular was being carried man of Genta. The "visit to ·Capetown" refers to visiting out by another oil company. 15 5.4 LETTER FROM MOBIL P.o. BOX 35, (SOUTH AFRICA) TO MOBIL CAPE TOWN (RHODESIA) DOCUMENT #2 Document #2 is a letter from M.H.W. Gubb of Mobil (South Mr. ~.J.R. Jackson, Africa), to Bill Jackson of Mobil ~i·I.LI:";dul({ • 3 December, 1973. (Rhodesia). One thing that Bill Beck, Chairman of Mobil (South Africa), apparently insists on is that Dear ilill, when correspondence takes place between Mobil (South Africa) and Mobil (Rhodesia) on the question of the supply of oil products from the former to the latter, people should IIlunedia te l-'uture write on a personal basis. Thus the letter-head used here gives only the Our next bulk 3hipment is due in Durban in late December, and, P.O. Box number of Mobil (South althoutrh our original order for 700 mettons may be reduced Cthrout;h a force majeure claim by the suppliers - 8sso in Africa), and the letter is addressed Rotteruarn) to 560 metton~, our bulk tank in Durban will be fairly to Jackson personally, rather than full, after arrival of this shipment. to his department and company. Sometimes letters and phone calls \. between the two Mobil subsidiaries The bulk tacic, capacity 1 400 mettons, s~ould have i 100 mettons in it Li.~ th€W~nd of December, aGainst~~ average monthly offtake are sent to home addresses rather of 280 (:let tons, givin!; 3,9 mon ths cover" or ~early 3,1 months than to the office address. including the c.HfJ.i tional 20 mettons/month you will require. This letter, which is only shown in part because of shortage of space, concerns detailed aspects of the ~he next bulk import after December will be in ~arch/~pril. ~here(ore, with your requirement of up to 60 mettons by March, supply to Rhodesia of certain 1974, \'/0 ,·/ill hav~ to \'/ork on a bulk import arriving oefore mid- solvents. The quantity "metton" April to inBure against run-out. . - referred to is a metric ton. Note the marked sections, including: (a) the Prom this picture, you can see that we should be able to supply crucial reference to supplying Mobil YOU1" initial·requireU1ent~ .of uu h'll without too much trouble •. (Rhodesia) with some Hexane ap­ II parently originating in the U.S.A.; (b) the reference to the possibility of an embargo being imposed by the ~le have got cover for 4 050 mettons from a U~ Gulf source for American government on oil ex­ 1974 a t going UJ market price~. 'l'his is in excess of current ports from USA to South Africa, or Jf offtake and can easily take care of your 20 mettons/month. by the South African government on HO\Jevcr, the price will b~ negotiated quarterly. tie hl;Lve already exports to Rhodesia. go t the firs c quarter price, i.hich is up on our current p'rice but In Document # 16 (see Appendix), thi~ is already taken care of in our latest pr~ce to ~emco. there is a letter going the other way, .fter Lne first quarter.. prices v/ill almost I..:ertainly escalate Le. from Mobil (Rhodesia) to Mobil bu:.; ',II.: uQ net; ~:now to Wh.:.&.l exte~lt and ~'/ill only knO~1 in l\ia~'ch/ (South Africa). Thus we have ;I.pl'il fur' t.nc June/July ~hiprl':el1 t. documentary evidence of a two-way correspondence between subsidiar­ In theory, thC:l.'efore, ~\C .:ill h::. ve udequate supplies for the ies of Mobil concerning the expor­ :;/11010 ut' l,:j'{(~, U'l.4t 'v/0 ~annot ui~regarJ. the possibility of an , :. tation of oil products to Rhodesia cu;uarG'o of expol:t~:.; fl'vlu the Lo.J_L, 01.' from ..:>outh Africa to hhod~sia; by Mobil (South Africa). o~' our ,,:,upl)lier cnlliIl6 fo~.'ce fJJ.jeure becau~e of feedsto~k :..;tl0rtrtt:es. 5.5 MOBIL'S IMPORTS OF " NON-FUEL OIL PRODUCTS ...Jhe;:11 ~..tr[.\·/ their Hexane fro!:~ ':I.lw,dan and are probably !!lore As has already been made clear, vulnel'.:lole than \/e are to GuppliQ5 being cut off. I think you Genta does not involve its'elf in the can t01':' l~hoJ..asiti.n Iuau5tri23 that viC will be aule to ~upply them importation into Rhodesia of non­ II uurin.; 1~i74 barring any :Jcvere crisi~, but natural.Ly i.e can not c$i vo :.... (1,:.' ~::u~u·~n ti~e of CO 1-. 1.:i:'1l;,i cy of ~u~Jpli~~. fuel oil products. Subject to limita­ tions of foreign exchange, the oil companies in Rhodesia make their .·jishiag you ul~ a Happy XUlt1.S! own arrangements for importing these products. There are a large number of different products under this , . category, and when Mobil

16 (South Africa) and from occasional 17.5 percent owned by Shell chases). other sources, they tend to use a (South Africa), and 17.5 per­ • Village Main Distributors, (Rhodesia) import them from Mobil cent owned by B.P. (South operated by Mrs. Anne Beard different paper-chase for each Africa). But in their letter in from P.O. Box 67324, product. Summarised details on Document # 16, Mobil Bryanston, Transvaal. these different methods are given in (Rhodesia) says: "We have ob­ • Recom of Rhodesia Ltd., a Document 17 (see Appendix). Sec­ tained Semco's agreement to # front for Mobil (Rhodesia) tion IX of that report deals with the our opening a number 3 ac­ operated out of Box ST39, importation of lubricants and count in their name at the ad­ Southerton, Salisbury, greases. This is also covered (under dress of their Attorneys ... " Rhodesia. "Lubricating Products") in Docu­ The attorneys in question are ment # 16 (see Appendix). The Mooney, Ford and Partners, of The paper-chase illustrated in paper-chase used until recently for Box 442, Durban. The man Document #3 worked as follows: on these two products is particularly in­ handling the bogus Semco ac­ receiving requests from Mobil teresting, and is explained in the count on behalf of Mobil was (Rhodesia) for consignments of flow diagram shown in Document Mr. Dugmore. lubricants or grease~, Mobil (South Africa) sold them to what looked #3. (That document was orginally • Rand Oils Ltd., operated by appended to the report in Document David D. Patrick from P.O. like a frequent customer, namely, # 17). Box 2581 , Johannesburg. Semco. But, in fact, they were sold The paper-chase for lubricants to something quite different, name­ • Western Transvaal Develop­ and greases was remarkable in that ly, Semco No. 3 Account, over ment and Exploration Co., it made use of no fewer than six which the legitimate Semco had no operated by the lawyer A.J. bogus' organizations. These are: control. Instead, it was controlled Oberholzer from P.O. Box 396, by the attorney, Mr. Dugmore. He • Semco No.3 Account, of P.O. Lichtenburg. then sold the consignment in rota­ Box 442, Durban. This is • Minerals Exploration Ltd., a tion to Rand Oils, Village Main similarly-named to a legitimate front for Freight Services Ltd. Distributors, and W.T. Develop­ company called Semco operated from P.O. Box 31883, ment; each then sold them to Lubricants and Chemicals (Pty) Braamfontein. (This organiza­ another middleman (see flow Ltd, which is a part of Chemico tion and the previous two have diagram in Document #3), who sold (Pty) Ltd. Chemico is a wholly­ already been mentioned in con­ them to Minerals Exploration, who owned subsidiary of Trek nection with the role they play sold them to Recom of Rhodesia, Beleggings Ltd., which itself is in the gasoline and diesel paper- which was a front for Mobil

umRICATING PROD~Ts DOCUMENT #3

______~ Billing rrocedure - Original Invoice

_____ - -...... Copy Invoice.

~---tI!!I"''''' PaYment

_II_~ __-,!-', Loading note for assessing handling charges. \ ~

~SAJ

, Semco No.3 Ale ....---v-v-~ "--""-"\..·~l ,'------fl---P• Oe Box 442, Durban.-.--;--- - -.------.... ·-----·--w.~~evetopment Semco Lubricants. RanfOilS Villa! Main I I P.O. Box 95, I Distributors I I\ ~ Jacobi· t.,. ~~;i:~u~~~ .~.~~~~~o~me~~. ~d . w __ .. Oils I i

Minerals Exploration ~ ------J

'--'------'"11~.. Recom• Of•Rhodesia I I • I M.O.S.R~ ....-.,'J'~ \"'- ·.w·•.. · •._- ,------...... -...------~

17 (Rhodesia). The general concept is very similar to that of the paper­ chases already described in more detail. In fact the procedure described above is the third of four procedures that have been used over the years. The first method, used until August, 1968, was for Mobil (South Africa) to sell to the legitimate Semco, who sold. direct to Recom of Rhodesia, fronting for Mobil (Rhodesia). This was changed partly because Genta insisted that more sophisticated methods be used, and partly because there were accounting problems in­ volved in using the legitimate Semco (see Document # 16). The second method used was as described in Document #3, except that payment from Mobil (Rhodesia) to Semco No. 3 Account went via Minerals Exploration rather than direct. This was replaced in about 1970 with the method shown in Document #3. Then, finally, in early 1975, a com­ pletely new method was made use of, which is described later in Sec­ tion 6.2.

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18 5.6 MO IL (RHODESIA) AND DOCUMENT #5 THE MI LE-MEN FREIGHT SERVICES LIMITED So far as outward appearances were concerned, the "middle-men" ~':=~~::,thL'M'TED MUSGROVE & WATSON L'MITED @---.,'. such as Rand Oils (see Document #3) had nothing to do with Mobil FOR COMPLETE SHIPPING· STEVEDORING . AIRC'ARGO (Rhodesia), and there should be no TRAVEL SERVICE Telephones 838-2011,838-3622 8r 838-7124 Telex 43-7162 JH, 43-77CO JH. & C3-7041 JH reason for any contact between Tel. a c.bIe Add. "Frei"'1I" them and Mobil in Rhodesia or Mr. A. Bat-es, South Africa. Such contact only P.O. Box 791, took place when something went SALISBURY. wrong-and the contact provides PI••,. reply to: highly incriminating evidence. CITIBANK CENTRE From September 1968, David 60 MARKET STREET P.O. BOX 1101 Patrick operated the bogus "Rand au, m-ettee: - Your refwence: JOHANNESBURG Oils" as a part of the paper-chase for lubricants described above in 5.5. ARMIMAF On 21 September 1968 he wrote to 31st October, 1972. Peter Faure, of Mobil (Rhodesia), enclosing some invoices. His note,' Dear Sit-, shown in Document # 4, was query­ ing whether these invoices for VILLAGE MAIN DISTRIBUTORS: lubricants, made out to Rand Oils We acknowledge receipt of your letter of 25th October and by Semco No.3 Account, should be will accordingly supply the above with a further set of re-invoiced by him to Village Main invoices. _~' Distributors. The "Richard" Please note attd1advise atl' concerned that any correspondence referred to is Richard van Niekerk, sent to this office must be addressed to the undersigned and no one else. Your above letter was addressed to Mr. Meier author of the letter in Document who has had nothing to do with this operation at any time. # 16. We. would suggeetiyou delete his name from your records to avoid Faure replied on 30th September any .confu~ion. saying that Mr. Patrick was right, and that van Niekerk, had given Yours faithfully, FREIGHT SERVICES LIMcrTED, confusing instructions. He ended: "I As Agents.! ... attach ... the invoices for your / /J'~". onward transmission to Village ~~ Main Distributors". In other words, Faure was sending back to Mr. A.R. MORRIS MANAGER : FOREIGN TRADE DIVISION Patrick some invoices -made out by Semco No.3 Account to Rand Oils, so that Mr. Patrick could write out similar invoices from Rand Oils to Village Main Distributors. Even­ tually, Faure received invoices for the same lubricants, made out this time by Minerals Exploration to

Recom of Rhodesia. BRANCHES AT ALL PORTS AND MAIN CENTRES IN SOUTHERN AfRICA. . Oi'~tor1: W.J.O. MU~QrOvfO fr,h;1irmlWl), L.B. Knch IMllnlM,JlnCJI. R.B. L." •.,.,.... P.I.F. MIICnah, W.H P~",n!nn, a.E. 5<:hwtkkard. P.J. Tonkin. On October 18th 1972, Anne Alternetft: C.D. Andr". A.E. [)~Id~n. I.B. Kenq. J.G. riO! Sant':)! IP!"rtuQUI!I@I. A.J.R. Watt.

Beard, who operated "Village Main All business it Unde"aIt.ttl ~uhl~t to the S,.,dard TrBrjing Condition~ of the South Alrie., ShiQpinq 8nd Fnrw;trrli"q A9l""U' Anociation IPrintf'd O~I~an. Distributors" as part of the lubricants paper-chase, wrote to Stephen Phear of Mobil (Rhodesia)-an organiza­ are mentioned in the list of contacts senior position. It seems clear that tion with which she officially had no in Document # 17. He passed on to very few people at Freight Services connection. She said t at she had Meier the request to get the Village were allowed to know about the in­ run out of blank '-'Villa Main Main invoices printed. On October volvement with Mobil. Distributors" invoices, and would 31st, A.R. Morris, the other Freight Mrs. Beard had run out of in­ be glad if he could arrange to have Services contact person, replied to voices again by October 1973, as her some more printed for her. (This, if Bates with the letter shown in Docu­ le~ter in Document # 6 indicates. nothing else, helps to prove that ment # 5. He agreed to provide Mrs. These letters suggest the exis- Village Main was not a real com­ beard with her invoice forms, but he tence of highly irregular links pany). Tony ates, acting on behalf went on to criticise Bates for dealing between Freight Services, Mobil of Phear, then W ote on 25 October with the wrong person at Freight (Rhodesia), Rand Oils, and Village to Mr. Meier, one ofthe two contact Services. Morris was Manager ofthe Main Distributors.. people at Freight Services Ltd., that Foreign Trade Division, which is a 19 5.7 TWO REVEALING Partners, whose address is P.O. Box Shown in Document #7 is a rail I VOICES 442, Durban. (It will be remembered advice note (similar but not identical The paper-chase used for solvents that the same attorneys operate the to an invoice) for a consignment of such as Pegasol-3040 operates as Semco No.3 Account, as part ofthe 36,746 litres of Pegasol-3040, sold follows: Mobil (South Africa) first lubricants paper-chase.) by Mobil (South Africa) to Plascon sell it to "Plascon Evans Paints On receiving the invoice made out Evans o. 3 Account on August 7, Natal Ltd. Non. Rep. No.3 Ac­ to Plascon Evans No. 3 Account, 1973; the price is 1,260 Rands and count", at P.O. Box 442, Durban. Mr. Dugmore in the attorneys' of­ the invoice number is 134977. On Plascon Evans Paints is a large and fice takes out a blank "Minerals Ex­ receiving this, a Minerals Explora­ well-known firm, which could often ploration" invoice, and uses it to ,. tion invoice was made out giving not be expected to buy solvents in large "sell" the same quantity of the same only similar details concerning the quantities. But Plascon Evans No. 3 product to "Recom of Rhodesia", commodity, quantity and price, but Account is nothing to do with the which of course is a front for Mobil also giving the same date and in­ legitimate Plascon Evans company; (Rhodesia). The latter then collect voice number; this invoice is shown it is operated on behalf of Mobil by that invoice from P.O. Box ST39, in Document #8. the attorneys Mooney Ford and Southerton, in Salisbury.

DOCUMENT #7

l"O Toe S I 01 lOC ~ nON COOl S33:L

N\okt!;6. N' 134977 \1

1 TA:r~=C"R "~jz6,\sci:":: '~~4~:': ·,:,c .': J JJ~.•', ~.:/ ,~~~cj.·r!~.;,c~:? ,::.' ~ ADD ~. ~ '~!lTE SPIRIT' •• ,1.TA::':·:c:\!t, P!G,\~CL :SC40 -... ~ ': . ".,:.~ '~~~1~C~:~"~;: ~;:'.: 'I 1. ' •• ~. .... _~_r.Qn4~.QOO- ~(,7t1(,' ~., ' ~ . . . .. "'. Rb t 7)'3 . ,. "l":~"43 I. '.' '. :~.' (Jt .:. ,: ...•.. ,'1 "of' DSN accl>S

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20 DOCUMENT #8 rvlli\~ER lS NY ~. .' ~OX -INVOice No. .13l1977 P.O. 31883 I,' #." , BA~MFO~TEJN· j\.', '.} '" .j' • t # ~.! '.1 • IN "..0 ICE .. r, I • I,' \' ; lLcc(J~ Rhodcsi~, d: ", !.' -> 0 f ~~~ \ , l~'.).x :~S), I. \ 1 Sotd to : s·r \IurkCJ( 'i I Uc.1l :, ;;dl ~-rH!~:~' ~ '.J ~ 10 t'" .1" 0' ;".' '

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21 5.8 RHODESIA'S FUEL CONSUMPTION DOCUMENT #9 The information given in the top two tables of Document # 9 represents an important Rhodesian nilOD.s~lIA state secret. The first table shows how Rhodesia's total consumption of gasoline (Premium plus Regular) OASeLlIII:: U"::~u~~L TRhlH'; COUT1L~C'r 'lRJ'"lli~ 'l'Ol'J,L 'l'P~I.DE has changed over the years since ~ ~ 'UJ...utIB IUlJ~':'~ ~~ UDI. The "General Trade" column 100 refers to gasoline sold through nor­ 1965 l300 100 107 100 1407 mal retail outlets. The "Contract 1967 1056 01 71 66 1127 eo Trade" column ref~rs to bulk orders 1969 J2G9 90 62 58 1331- 95 of gasoline sold by contract. The 1970 1378 106 61 57 14'9 102 "Total Trade" column is the sum of 1~t1 1541 119 70 ·65 1611 1U these two. 1972 1751 135 75 7Q 1826 130 Thus at the time of UDI, when 1973 :tlun 1040 142 ~ 67 19l2. 136 there were no political problems in­ 197' .:.roJ. 1796 133 T1 7i 1873 1'3 volved in importing fuel, Rhodesia 1~4 ~;lA.~. lU~9 143 80 75 1939 ' l}a consumed 1,407,000 barrels of gas­ oline, or about 165,000 tons. Two ~. years later, consumption was only 1965 OD1 100 316 lOQ 1197 100 20 percent down, despite supposedly rigorous sanctions. By' 1974 (the 1967 963 10') 64 20 1027 66· year after this summary was written 1969 1096 125 4-'6 ·2i 1164 en in Mobil (Rhodesia)'s head office), 1970 1249 142 69 . 22 1;18 110 gasoline consumption was an­ 1971 13~ 158 70 22 1465 ·122 ticipated to be 1,939,000 barrels 1972 1525 173 73 23 15~ l34"

(about 230,000 tons), 38 percent 197".J l'lan 1GV7 191 76 <- 24 1763 147 above the UDI level. 1973 lToj. 1665 lb9 73 2' ,1730 145 The equivalent figures for Rhode­ 1974 l~ 1793 204 76 24 1.869 156 sian consumption of diesel fuel (A.D.O.), shown in the second table, 1IU~Aj, TRADE AAFJC ~ll SHJU.~~ ( MUi>H.) are as follows: 1965, 1,197,000 G;~~()mlE . A.ll.O. IIJ.ucr!~·,TnIG. ?c· .... m L.l'.G. barrels (about 140,000 tons); 1967, Ki'~10.:Hln.: i:d:l1:.::J; r'~ 14 percent down; 1974 planned 1965 20.7 2C.l 24.1 2}.5 00.0 level, 1,869,000 barrels (about 220,­ 1~7 19.4 22.9 21.8 20.9 75.0 000 tons); that is, 56 percent above 1909 lB.1 21.'" 25.0 .: 19.9 74.3 UDI level. 1970 13.3 :1.3 23.6 19.J 73.0 We know from the Genta letter to 1~'71 18.3 22.2 23.7 16.G 73.3 Mobil shown in Document # 1, that 1972 18.4' ·23.0 23.7 14.9 71.5 ..... Genta estimated that it would re­ quire Mobil (South Africa) to pro­ 1973 lJJAn 10.7 :?~.2 23.2 16.3 69.1 vide Rhodesia with 26,420 cubic 171, Proj. In.; 22,9 23.7 1G.3 n.G metres of diesel fuel during the first 1974 I'ltm lU.5 22.9 23.0 11.0 n.7 four months of 1974. That is roughly equivalent to an annual provision of 500,000 barrels, which is 26 percent of Rhodesia's planned 1974 diesel consumption. During at DOCUMENT #10 least the late sixties, Mobil appar­ le. Total Tr&-.do ently provided most of Rhodesia's consumption of diesel, Regular, 1.. t,~arklj't ~1~'U"'O 'l.'reude - 'l.·ota1 'Ganaling Premium and Avtur. But by the early W2~i'lIAL seventies, the other oil compan­ ~ l!. .Q. l!.:!. ~ :':CVE ies-not just Mobil-were exporting 1967 19,4 34,6 '22,1 15,9 7,5 ... 13,2'~ fuel from South Africa to Rhodesia. 1960 19,1 }4,4 22.2 15,4 0,9 + 10,,~ , That is why Mobil provided only 1969 lBtl :;6,0 22,1 . 15,5 u,2 ... 7,Z~ about a quarter of Rhodesia's djesel 197(; lB,' 36,5 21.2 15,5 6,5 ... a,~ needs in 1974. 1971 18,4 '37,2 21,0 15,5 7.9 ... 12tO~ The third table in Document #9 1972 13,4 35,8 22,3 15,3 8.2 ... 13,3"1 shows how Mobil's market share within Rhodesia has varied since

22 UDI for five different fuel products. In 1972, for instance, Mobil DOCUMENT #11 (Rhodesia) sold 18.4 percent of the FnlAl~CIJt.L DATA _ gasoline and 23 percent of the diesel MODIL OIL SOUTHERn lUIOD~IA (PIT.) LTD. in Rhodesia. It is very important to appreciate that this does not mean that Mobil imported 18.4 percent of the gasoline imported in 1972. Gen­ ta makes its own arrangements for 1. stmPLtID CASH. the importation of fuels; Genta then Cash' on oall w1th Merchant Bankers at present amounts to'RSl 000 000. sells to the five oil companies in It 18 not onv1Baged that it Will be possible to remit any ot thea. Rhodesia the fuel which it has im­ funds 1n the medium tam, 1.e. w1t~ 3 years. ported, for them to retail through­ out the country. The third table thus refers to Mobil's market share of Overdraft tuc111t1ea are at present BZ620 000. Those are not required tor normal day to day b~1ne8e opera.tiona but are available what was sold within Rhodesia, and to~ speoiAl projeots. The ourrent ~te ot overdre.ti. intereot is 7~:. does not tell us how much Mobil im­ ported. 3. CASH Cli2U1flATIOlI, We know from Document #9 that It is env1sa£;ed that ourplus caoh will be generated at the re.ta ot the projected Rhodesian consump­ na30 000 p)r month 1n 1973, reault1Dg in an end-year proJeoted cash balance of U~l 360 000 betore doducting spec1al investment oppor­ tion of gasoline in 1973 was 1,873,­ tunities tot&lling ~l 014 OO~. 000 barrels, of which Mobil ex­ pected to sell 18.3 percent, or 343,­ 4 SERVICE CHARGES I 000 barrels. Likewise, Mobil's pro­ 11 • AnIIUal aerv1ce chargee pnyable to L10bll Ou· Southern Ardon (pty.) jected 1973 sale of diesel fuel was Ltd. Q1X)unt to RZ140 000. I 22.9 percent of 1,738,000 barrels, i.e. 5. SALARIES AUD }U::I.J~/rED E.XPl::11SE. 398,000 barrels. The two together total 741,000' barrels. We do not ProJ ected 1973 Salaries and Related 8DX:lunt to Rt686 000 out ot a total expenditure ot R~l 685 000. Thin ropreaents 42.8%. know what Mobil's sales were that year for other fuel and non-fuel space shows that at about that time products, but we can calculate it 5.9 FINANCIAL LINKS from the fact that Document # 12 the price charged by Genta to the oil shows Mobil's projected 1973 sales Document # 11 is part of a 1973 companies in Rhodesia was: within Rhodesia of all products was Mobil (Rhodesia) report. Paragraph Premium-15..394 U.S. cents per 942,000 barrels. Thus it is possible four is very important. It suggests litre; Diesel-ll.555 U.S. cents per to derive the following table: that there was a direct payment from litre; Avtur-13.679 U.S. cents per Mobil (Rhodesia) to Mobil (South litre. (By the time these were sold at Africa), which would be a particu­ the pumps, however, duty and profit Mobil's projected 1973 sales within larly blatant evasion of sanctions margins had been added and the Rhodesia: regulations. This payment was for prices of Premium and diesel were Gasoline 343,000 barrels the relatively insignificant sum of 30.09 and 18.408 U.S. cents per litre Diesel 398,000 barrels 140,000 Rhodesian dollars; and was respectively.) Estimating that Genta All other to pay for items such as the use of charged the oil companies in oil products 201,000 barrels the Mobil (South Africa) computer Rhodesia, before duty, about 10 Total sales 942,000 barrels and a share of the costs of develop­ percent more than they paid Mobil ing certain Mobil graphics. (South Africa) for the imports, and Again, it should be emphasized that Much larger sums of money were assuming that importation rates and these figures represent Mobil's sales of course paid by Mobil (Rhodesia) prices remained steady during 1974, within Rhodesia, not its imports into and by Genta to Mobil (South we find that during that year, the Rhodesia. Africa) via the intermediaries made sum of money paid via intermedi­ The table in Document # 10, taken use of in the various paper chases. It aries by Genta to Mobil (South from a different Mobil (Rhodesia) is possible to calculate roughly how Africa) for fuel products was about report, shows Mobil's estimate of much Genta paid Mobil (South U.S. $18.6 million. In addition, how the market shares in the gas­ Africa) in 1974 as follows. Docu­ Mohil (South Africa) sold a range of oline market have varied from 1967 ment # 1 shows that Mobil (South non-fuel products to Mobil to 1972 for the five oil companies in Africa) provided .the following for (Rhodesia) without going through Rhodesia (Mobil, Shell, Caltex, B.P. Genta during the first four months Genta. We cannot calculate the and the French company, Total). In of 1974: 16,500,000 litres of value of these, but it seems fair to es­ 1972, Mobil had 18.4 percent of the Premium, 26,420,000 litres of diesel timate that in 1974 Mobil (South gasoline market, Shell had 35.8 per- and 9,400,000 litres ofAvtur. One of Africa) apparently provided oil cent and so on. Shell is by far the the documents that CSA is not in­ products for Rhodesia worth at least largest oil company in Rhodesia. cluding in this report for reasons of U.S. $20 million.

23 5.10 MOBIL'S INTERNAL Document # 13 is a summary of sidiaries in Rhodesia, who state that FI ANCES the December 1972 profit figures for because of VOl, they have no con­ Documents # 12, # 13 and # 14 five Mobil subsidiaries: Mobil trol over the activities of these sub­ provide a wealth of financial and (South Africa), Mobil (Rhodesia), sidiaries and indeed receive no infor­ other detail that we can hardly begin Mobil (Malawi), the Mobil refinery mation concerning their operations. to analyse in the space available. All in South Africa and the Westchester Document # 14 is a similar finan­ three documents are extremely con­ Insurance Company (Pvt.) Ltd. The cial report for 1973, although it is fidential internal reports. particular value of the document is constructed slightly differently. By A key is given below to explain that it gives cumulative figures, so it comparing these two tables, it is some of the terms .and symbols. is possible to obtain annual figures possible to see that between 1972 Document # 12 summarises how from the column entitled and 1973, pre-tax profits rose as· Mobil (Rhodesia)'s performance "Cumulative Reported." follows: Mobil (Rhode ia), from improved between VOl and 1973. The figures are in thousands of $1.6 million to $2.7 million; Mobil During eight years of sanctions, V .S. dollars; so from the row (South Africa), from $13.2 million Mobil's operations in Rhodesia "P.B.T." (profit before tax) in the to $32~7 million; Mobil Refinery, went from reasonably profitable to MOSR section, it is possible to see from $9.7 milliof.l to $26.3 million. highly profitable. For instance: that Mobil (Rhodesia)'s pre-tax The increases were remarkable, profit in 1972 was $1.614 million. though much of it could represent • After-tax return on investment (This varies somewhat from the the increase in value of fuel stocks, rose steadily from 9.8 percent figure given in the later-dated docu­ caused by the "oil crisis" price rises. to 18.3 percent; ment # 12, because certain outstan­ ding debits and credits had not been Key: $'000 thousands of V.S. • After-tax profit per barrel tripl­ taken into account when Document dollars ed, while marketing expense per # 13 was compiled.) BBL'OOO thousands of barrel remained steady; The row' entitled "New York barrels Profit" probably refers to the profit $/BBL dollars per barrel Proj. projected figures • Sales rose from 763,000 barrels figure that was reported to the New to 966,000 barrels; York head office of Mobil; the fact (for a year not yet completed) • The value of sales doubled, that such a figure was reported for Mobil (Rhodesia)'s operations Variance difference between from V.S. $12.8 million to reported figure $24.8 million; suggests that the head office was at least given a reasonable amount of and planned figure P and (L) Profit and loss • The cash position went from a information about the activities of M.I.S. Management deficit of nearly a million the Rhodesian subsidiary. This con­ Information dollars to a surplus of $2.3 flicts with the claims of many Euro­ Services million. pean and V.S. companies, with sub- DOCUME T #12

I'M .970 1971 Iq;} UNIT '91' '912 '91' ~ ~ iQJJAI. 5nW. ~ ~ p..c..!J:!!L SHARI-HOLDERS 'Nii 5'D4lNl $'000 , N. )~ . ~ 466 , '87 62S8 7400 8 C\~, :_, &~F' T UlfOCti TAX *'000 67' 7 941 t 2)0 " 6'4' 2 2 I,). ;''2,") I [S EFGtI TAX ~ ON 'WES1')IE!iT -It 17.S7 18,12 tl.2O 22,Q ! 25.' . .9 l":t1 30.:\ i' . rm'IT AlTfR TM .'.xlO ,n ,... 501 . 670 I 16. ' t ," "It y.~~ Inm TAX f':!TlJAN CN" "V ES1M ENr 9,74 12,2' 13.3 'It 9,1' It.'7 t • .,.a . II "." i • LN T""O£ YOLtalts BDL'OOO 76, G2, 69) 18' 911 9U i ql~, GnQS3 P IT ,fOJQ , °5' 2 OS) , 20' , 68. . 4'.2J '456 :~t:I~)":' "GROSS PROFIT ., ~.51 . ~'fBal 00 ••62 .,70 4,86 '.'79 ; b,'1, ;'~"I: DPENSi $'000 2)72 2 129 2%59 2 551 2 811 , ,68 :3 ~;i . j .. b : lo'ARKETI IXPENSl ~lrmt '.11 ),4' '.26 '.27 ,.og ,.~ ! ~) lJ.. I inoFlT BffOnE TAX $,tBL 0.80 2,~1 i I." 1.'7 '.57 '.17 2,4' ; II, i-llo, IT AFTt~R TAX $,4lLlL 0,49 0,6, ~"l) 0,86 O.9S 1.2. l,~l TnAD£ ACCoutll'S RfC£IVAOLE . 9.6 .'000 984 141' . 983 • S21 • 580 i 1 ~l"~, rr

24 DOCUME T #13 rnuL tAX"· tl)JmI OPt .... ~.~ ••••• ~. ~!~~•.••••.. tAmr rlWHE 1U!l0tB gtwlTDS . I 000'... fOuo.sr YAI.llHa aEPOlTED nOK rt.AJI

lHaSA - Oro.. Prot., 32 721 4 245 12 0)6 12 51) ( 5)1) •• 7~7 I 97" ( 7~1i' - (£Kpe ••) ( 195) (J Oi4' ( 8 ])6) ( 1 808) ( 528) lJI 891J ( 72)) tJl 547) I 17)} - P. (L) It. I 5161 526 1M 162 ( 1'4) 296 ( )))] INEW ~KusfR~n~ \ (1'147) 1 321 .. 226 4 929 ( 703) (I 850) 1) 683 (1 5(2) ( 26', 61 I. 471 ( 53) ( 28) ( 25) ( 79) J6 . 80 - othu •• L 601 . 1 ·215 ( 29) { 7G71 :( 234) ( 473) ( l06) 802 )1 919 P.B.f. 9 684 . 189 1 24' 3 466 4 6~1 (l 2~>1) . 1) 150 (1 012). 1) 619 ( 483) IMOS - Oro•• Prot.' 3 20) 197 45) 1 222 . 1 086 1)6 4 425 ))) 272 - h.-a•• I 2 140) ( 201 t )14J "l I 802' ( 729) ( 7)} ( 2 942J ( 9)1 ( 26) -P•L It. 15 ( 8) ( 61 ( 10) 17 I " NEW OPIT 1 078 182 131 )61 5) 1 492 1 5Q6 249 - ot. .r P. L ( 5) .( 18) 124 121 122 122 ( 5) ( 2)) P.8.I. 1 07) 16-4 255 '41 366 175 1 614 ))9 1 501 226 ,. - Gro•• Protl' 597 ( 3) 11 185 190 ( 5) 782 (. 8) 713 ( ~7) I- Esp.a•• ( 515) ( 14) ( 821 I 188) ( 161) ( 21) ( 1231 , )5' , 6941 paL lte.., .- ( 20) ( 20) ( )6) ( )5) ( )5) ( 55) .( 55) ( 2)) ~ 2JT "'" JORK fROPI! 42 ( )7) ( 47) ( 38) 2) ( 61) ( 98) 56 ( 46) I - uses/P. L 4 ( 2) )' 9 ( U ,P.B.t. 42 .( 3) ( 4) ( 35) 21 ( 56) 1 ( 89) ( 41) t TOTAL HlRIB1'IHG P.I.! 5' 10 799 )20 1 457 3 912 , 054' (l (82) 14 711 ( 762) ( 298) ,K>R.EP - Gro.. Protl ' 16 00) (2 58)) 1 762 6 lB4 12~ , 9201 22 281 (J 503) 22 8)4 12 956) - Expea•• ( 9 214) 42 { 2 825) I 7)) (12 112) ( J1) H2 217) (76) - P. L It. 816 224 )88 194 194 1 2O.t 738 1 112 IND 10 It PROfIT.. • ... 1 54~ : (l 991) 942 ] 114 4 57). ( 199) 11 ]19 (2 796) (2 )86) 11 129 , '- usc! . ( '25) ( 11) .( 13) ( 190) ( 171) ( 19) ( 715) ( )0) ( 700) ( 15) ; - Ot.her P • L , 1 4581 U 2511 , J4J 525 ( 66) 591 f 9]]) ( 666) ( 1 , ..... P.I.!. , 562 (J 265) 8)' .. 109 ( 227) 9 671 (J 492) 9 885 () 278) ~. tau:; 628 ( 148) 140 39J. 278 11) ~ 019 ( 35) 84) ( 138) I .!OTAL noPII UX 16 989 () 09]) 2 432 8 472· 9668, .(1 196) 2,. 461. (ot 289) 2' 96)

2/-Ul).

DOCUMENT #14

surquJlJ or n"lns I!roRE TAX roB 12 "0 T!lS 10 DECEMBER, 1973 .,. COMULATl" LArEST IIfCc..i roREC15T • 000'. UPOITD 'WAIICS .~ OTREll .EPOa~D Y&Jll~CB CUUElCf OTIEI I MOSl - Oro.. Proil' 70,285 1@,629 19,808 (1,119) 61~190 110 1:54 ! 16,981 i (6,847) (b"De~) ~(J7 - 1(37 (62) .l. ,739 l'J.Q6lil (774) 135) I (4 812) I (3 747): (1 065} -• 84 (L) it . 1 151 570 181 389 1 128 547 I 78 ! 469 I 1I.I.S.UPOIU.8L1 Plont '4,'74 14 460 16.024 (1 564) 25,78' I 5,869 t 1','12· (7,44')

-11..0 it•• (1 680) (947 'Tl 129) 182 (1 1 502) (169) . (796)1 27 Plont IElOU m 32.694 13 ,iii' 14.89e; . h.382) .2.4,281.1 '..5... 100 I 12.516: (7.416 MOSR - Oro.. Protl' Ii .71i1i 1.178 l' 227 l.q\ Ii .4~O I 8r;'J : q481 (qr; - (lzpell••) : (, '4') (474 (1520) 46 (3,324) (455) (480)1 ~ -, aD4 (L) Ue 8 1 .2 (I) 5 (2) i .1 ' (", 11.1.5. Ul'OITI.BtI nonl 2420 705 709 (4) 2 III .. '96 469 ! (73) - lIe1lO It•• 2SJ 228 199 29 '50 :;25 ! 299 : 26 Plont BEl'OU '!AX r2 67f ) 93' 90s ( 25 I) 2 461·, 721 I ~ (47) 11011 - Oro•• Prot!t ----eo 80 i8 ~ 815 52 i 23 I 29 - (hpell••) (777) (1211 (10) (Ill) (7'9) (8') I (25)i (58) -, u4 (L) li••• 4 4 - 4 4 4 I - 11.1.5. UPOITlBLI Plonl 70 (37 12• (49) 80 (27) 2;~ - 11••0 it•• (25) (2' 119) JAl. 2' 25 '1 : ( 6) Plont IUOU !a (41i ) (60 (1) ~ (2) . (5') 10' "I I',) lIour - Cro.. Prot!t 36 190 10 264 11~ q.iYi 34 600 8 674 1 036 I 7638 - (EzpeD••) (16 071) (1 660 (1 24'Jl -(417) 1(16 085) (1 674) (1 149)! (525) -, e4 (L) It... , 0'9 709 600 109 2 941 611 545 I 66 1I.I.S. UPOB!.lBU nonl 23 158 9313 486 8 827 21 456 7,611 (47~ 7,658' - IIno it~. 3 127 4 046 4 Olil (Ii) '\.127 4.04() 4 045 ~ ( nOn! IUOU In 26 28e; 13,3li9 4,537 8 822 24.'i83 11.657 3,998 I 7 659 - Croes ?rot!t ; _. ; - (£lP!ns~) .- -P ed (L) It••• I I . 11.1.5. ~:'OB!ULE Plont ! I , - 11••0 ltea. .! i ,- non! B:::T01tB rn I ! I I ;~'!.~-:tU ! to'tlJ. 11.1.5. PRon! 60 022 i 24 .••1 i 17 231 I 7.2J.0 .9,430 i l' 849 1'7}6 11' 'l'OTIJ. nOFlt RI Til 61 697 ! 27.741i i 20.'" ! 7.412 ~·17.475 17.'15 16~ ~I V"..5TC!:::1"£I ':'.!. I I 2 893 I 1898J 840 I 1.0'i8 ...... ,.T.I:~.:!.!::!=!.~.:-.!..a.T, _ ,,_!~~j __ (194); (14) ! J.?08)' ------. -_ ...

25 this scheme. This probably makes Rhodesia the only coun­ Chapter 6 try in the world where unsuspecting motorists, responding THE ROLE OF THE OTHER to sophisticated advertisements, can go and buy their favorite lubricant, only to end up pouring the same old OIL COMPANIES Shell product into their car engines.

Most of the documentation presented in this report relates to the activities of Mobil, although there are certain Chapter 7 references to other oil companies. Shell, for instance, im­ THE IMPORTATION ROUTES ports all of Rhodesia's Avgas 100/130, which is made con­ The map on the inside back cover shows the different siderable use of by Rhodesia's air force. routes which have been available at different times for the OKHELA has passed over to the CSA some of the importation of Rhodesia's oil. results of its investigations into companies other than Immediately after UDI, road transport was used to cross Mobil. These suggest that after the years when Mobil was the South African-Rhodesian border at Beit Bridge. But as importing most of the principal oil products (gasoline, was explained in Section 4.1, road transport is an expensive diesel and Avtur) into Rhodesia, the other companies way of bringing in most oil products. The most economical became more involved in the early seventies. This was in route used to be to take the products by ship from South addition to their ongoing activities in the importation of Africa to Lourenco Marques in Mozambique, and then to non-fuel products. Furthermore, it seems that all ofthe com­ take them by train to Rhodesia. Sometimes the stage from panies of interest (Mobil, Caltex, Shell, D.P. and Total) are South Africa to Lourenco Marques was done by train too. still importing oil products right up to this very month. Occasionally, oil products were taken to Beira by ship, We have been particularly well informed on the role of either from South Africa (this was unusual) or from the Shell. When Shell (South Africa) plan their future sales, Persian Gulf. From Beira they were taken by rail to Umtali they include in their planning tables a special category in Rhodesia, and usually on to Salisbury. However, in enigmatically entitled 'FS'. This stands for Freight Services March 1976, the Frelimo government in Mozambique im­ Ltd.-a name which is becoming rather familiar-and is to posed sanctions, and closed its border with Rhodesia, cover purchases made by Freight Services for subsequent thereby ending Rhodesia's use of all these routes. resale to or in Mozambique, Malawi-and Rhodesia. In supplying oil products to Rhodesia, Shell operates Until shortly before that time, the only other rail route through Freight Services and five other middle-men. This from South Africa to Rhodesia involved going via system has been operating for several years. Every three Botswana, which was a particularly circuitous route for months Freight Services, acting on behalf of themselves products from the two refineries in Durban. But in and the other middle-men, send to Shell their requirements September 1974, a single-track rail link was completed in for a variety of oil products, specifying how much they es­ Rhodesia between Beit Bridge and Rutenga, making it timate will be needed over the next 3 and 12 months. Their possible for the first time for trains to cross straight from requirements for Rhodesia have averaged a fairly steady South Africa to Rhodesia. rate over the years. The Shell companies in Southern Africa are subsidiaries This is now the most economical route for sanctions­ of Royal-Dutch Shell, which is 40 percent British. In­ busting traffic. However, there is still a transportation formed sources say the British government is quite aware problem for Rhodesia's minority government: the railway of the fact that Shell (South Africa) is providing oil prod­ system in South Africa comes under government control, ucts for Rhodesia. But nothing has been done about this. and does not have much slack capacity. If Vorster should Shell have also been involved in a fascinating develop- . want to force Smith to respond more to his will, he only ment in Rhodesia itself. Shell (Rhodesia) have built a lubri­ has to say that the South African Railways system is get­ cant blending plant at Willowvale, an industrial site in ting somewhat overburdened, and might not in future be Salisbury. They import rail-wagons full of what is called able to carryall of Rhodesia's requirements-especially its 'base stock'-semi-processed crude-together with certain exports, which are bulkier than its imports. key additives. The base stock comes from South Africa, all or nearly all from the Shell refinery there. The stock is then The documents which we have shown do not specify mixed with the additives at the blending plant, to produce a which of the above routes was used for the principal fuel variety of lubricants for road vehicles, factory machinery, products, although Document # 18 (see Appendix) does etc. discuss the routing of some of Mobil (Rhodesia)'s non-fuel The plant started operating in late 1974, and provided all imports. In fact the route used for most fuel imports before of Shell's needs in Rhodesia. But there was still spare Mozambican independence was via Lourenco Marques. capacity available at the plant, and from early 1975 the According to Document #9, Rhodesia's projected 1973 plant has also been used to blend lubricants according to consumption of gasoline was 1,873,000 barrels, and of Shell specifications, which is then put into cans marked diesel fuel was 1,738,000 barrels. These two total 3,611,000 with the trademarks of Mobil, Caltex, Total and B.P. This barrels, or approximately 425,000 tons (at 8.5 barrels per process is cheaper than importing all the different com­ ton). Assuming that the Rhodesian importation rate and panies' lubricants in cans or drums from South Africa, and consumption rate were approximately equal at that time, saves on foreign exchange. For this reason the Rhodesian and that gasoline and diesel between them constitute two government has forbidden the importation of lubricants, thirds of Rhodesia's total consumption of fuel products, and the companies have had no option but to go along with we find that Rhodesia imported very approximately

26 The tanker 'Mobil Durban' unloading fuel at Lourenco Marques, Mozambique, in the fall of 1974. (Note the 'Mobil' sign on the ship's funnel.) Most fuel unloaded here came from South Africa and was destined for Rhodesia.

Moving 50 yards further back, we see the same ship, and the entrance to a Freight Ser­ vices Ltd. 'tank farm' on the left.

Moving another 100 yards further back, we see also a wagon belonging to Rhodesian Railways (note the sign 'R.R.'), waiting to pick up sanctions-evading imports.

27 An unmarked railway wagon at Lourenco Marques, in the fall of 1974. The only documentation carried on the wagon was found in the small box under the number '474225'.

t/ car no" .f!..7..c/.2..Z.S- cap t/!.(~..:?~

litres @ 20°C ¥.O' .. 7.7.7 , In that small box was found this card, reveal­ ing that the wagon contained 40777 litres of premium gasoline. Nothing indicated to temperat"re: 4 ..6: . whom the gasoline belonged or where it was destined for. However, the fact that the card was in English rather than Portuguese SG @ 200C Z3.. ~~.Q ,., , ,.. suggests that the -gasoline was destined for South Africa or Rhodesia. product.E, ,.,l':-- U ~'1, ,.

~. M. 176 - Sogra - 28888

The wagon was of a type used in Rhodesia rather than South Africa. And this close-up photograph shows the give-away "R.R." (Rhodesian Railways) embossed on the bogie. The Rhodesians had obliterated all other identification marks, but had forgotten to remove this more durable one.

28 Rhodesian fuel wagons unloading at the Htank farms" belonging to HTotal", in Salisbury, Rhodesia. Note the similarity between these wagons and the one photographed at Lourenco Marques.

More modern fuel wagons, again unloading into the Total storage tanks in Salisbury. Note the signs in English and Portuguese, making it clear that the wagons frequently go through Mozambique.

A "Freight Services" storage depot in Salisbury, Rhodesia.

29 650,000 tons of fuel products in 1973. Ltd. Control of this larger company is jointly exercised by According to information given in the Observer (Lon­ the Anglo American Investment Corporation and the don) on 14 March 1976, the total quantity of oil products South African Marine Corporation Ltd. (Safmarine). At carried up the rail line from Lourenco Marques to around that time, a new director was appointed to the Rhodesia in 1973 was 589,213 tons. Our figures strongly board of Safmarine, namely, William Francois de la Harpe suggest that this flow constituted the great majority of Beck-who is also Chairman and Managing Director of Rhodesia's fuel imports at that time. Mobil (South Africa), and ·Chairman of Mobil (Rhodesia) ... This caused quite a stir ~ It was apparently the first time that the head of a Mobil subsidiary hadjoined the board of Chapter 8 a company outside the Mobil empire. It was alleged by some that there was a risk of conflict of interest; Safmarine MORE ON FREIGHT SERVICES LTD. buys vast quantities of bunker fuel for its ships, and Mobil We have already shown how Freight Services Ltd., one competes with others to provide it. of South Africa's largest shipping and forwarding com­ But what was not publicly appreciated at the time was a panies, plays a central role in arranging the exportation to much more subtle irony, namely that Mr. Beck was and is Rhodesia of oil products provided by Mobil (South not only Chairman of both Mobil (South Africa) and Africa). Usually hiding behind the name "Minerals Ex­ Mobil (Rhodesia), but he is also on the board of the com­ ploration Ltd.", it is the only intermediary company to pany which jointly controls Freight Services, which is the appear in practically all of Mobil's paper-chases. It also company that enables him to evade sanctions and get oil acts as a sort of coordinator ofthe other intermediary com­ products from the one company he chairs to the other one. panies, arranging to do things like printing bogus invoice forms for them. Finally, it is one of the few intermediaries which is entrusted with handling the money, not just the in­ voices. And the quantities it deals with are impressive: the value of the oil products it buys and sells for Mobil each Chapter 9 year would seem to run to tens of millions of dollars. SOME LEGAL POINTS We have also shown that Freight Services plays a similar We do not attempt here to carry out a definitive inter­ role for Shell, handling all their oil supplies for Rhodesia, pretation of the law as it applies to sanctions; we leave that and coordinating the other intermediaries. to Mobil's Chairman, whom we have already quoted. The But we can go further. We showed in the previous main purpose of this report is to present the facts, so that chapter how the great majority of Rhodesia's fuel supplies others can take them up and make use ofthem as seems ap­ was sent from South Africa via Mozambique, prior to propriate. In this regard, it is appropriate here to quote Mozambican independence. And investigations in Mozam­ some sections from U.S. Treasury regulations: bique around that time suggested that all the oil supplies § 530.201 going up the railway line from Lourenco Marques to "All of the following direct or indirect transactions by Rhodesia were handled by Freight Services. For instance, any person subject to the jurisdiction of the United 83 fuel-filled railway wagons went up the line on the 23rd States are prohibited ... : October 1974; and the fuel in everyone belonged to Freight "Transfers of property which involve merchandise Services, according to the files in an appropriate railway destined to Southern Rhodesia or to or for the account office. of business nationals thereof; Given that Freight Services seem to have been the inter­ "Other transfers of property to or on behalf of or for mediary used for all the oil supplies sent to Rhodesia via the benefit of any person in Southern Rhodesia Mozambique, and given that nearly all of Rhodesia's oil (including the authorities thereof) ... " came via Mozambique at that time, and given that Freight § 530.301 _ Services handled all the Mobil and Shell oil products sent "The term "person" means an individual, partnership, to Rhodesia, we have to conclude that Freight Services association, corporation, or other organization." were also the principal intermediary used by Caltex, Total §530.307 and B.P. when they sent their own sanctions-busting oil "The term "person subject to the jurisdiction of the products to Rhodesia. United States" includes: This leads one to ask who owns Freight Services Ltd. It (1) Any person, wheresoever located, who is a citi­ turns out that before July 1975, 23.9 percent of the Freight zen or resident of the United States; Services shares were held by Charter Consolidated Ltd. (a (2) Any person actually within the United States; British company which is part of the huge South African­ (3) Any corporation organized under the laws of the based Anglo American empire); and 56 percent of the United States or of any State, territory, possession, or shares were held by the Anglo American Industrial Cor­ district of the United States; and poration Ltd. Thus the Anglo American empire, headed by (4) Any partnership, association, corporation, or Harry Oppenheimer, held almost 90 percent of the shares other organization organized under' the laws of, or in a company which has, in great secrecy, acted as a cru­ having its principal place of business in, Southern cial facilitator in enabling the oil companies to evade sanc­ Rhodesia which is owned or controlled by persons tions and provide the Smith regime with its life blood. specified in subparagraph (1), (2), or (3) of this para­ In July 1975 the Freight Services parent company, graph." Freight Services Holdings Ltd., was merged with two other § 530.404 companies to form Aero Marine Freight Services Holdings "Section 530.201 prohibits persons subject to the 30 jurisdiction of the United States who are officers, He is also Executive Vice President (second only to the directors, or principal managerial personnel of President) of the International Division of Mobil Oil business enterprises in foreign countries from being in­ Corporation, which owns Mobil (South Africa). One volved in any transaction subject to §530.201. Such per­ of the countries he is responsible for within the Mobil sons are involved in transactions when they authorize empire is South Africa. It is to him that William Beck, or permit the foreign business enterprise to engage in a Chairman of Mobil (South Africa), has to report. transaction subject to § 530.201, even if they do not In November 1975, the Chairman of Mobil wrote the themselves actively engage in the transaction." letter we have already quoted, in which he said: "The § 530.405 management of our International Division has gone to "Section 530.201 prohibits persons who directly or in­ considerable effort to make sure that we have complied ful­ directly own or control any person in Southern ly with the restrictions imposed upon us by the U.S. Rhodesia from authorizing or permitting the latter to government [in connection with sanctions regulations.]" engage in any transfer of property prohibited by § 530.201." • Charles E. Solomon is an American citizen. At the It will be noted that subsidiaries of U.S. corporations time when almost all of the documents we have quoted which are not organized under the laws of Rhodesia or in this report were written, he was a member of the which have their principal place of business outside board of Mobil (South Africa). He was also President Rhodesia-for example, a South African subsidiary- are of the International Division of Mobil Oil Corpora­ not listed as "included" in this administrative interpreta­ tion, and a member of its board. tion of the Executive Order. This constitutes a major ap­ • Faneuil Adams Jr. is an American citizen. He is Vice parent loophole which is not found in parallel regulations President of Planning in the International Division of dealing with trading with other "enemies." However, the Mobil Oil Corporation. From 1972 to 1975 he was sanctions regulations do cover Rhodesian subsidiaries, and President of Mobil South Inc. At that time he was goods of U.S. origin and U.S. citizens. The Mobil case also on the board of Mobil (South Africa), and it was would seem to involve all of these. It must be presumed to him that William Beck then reported. that Mobil (U.S.A.) and/or its officers and managers had reason to know of the activities which Mobil Rhodesia was It is hard to imagine that the sanctions-breaking acti­ carrying on with Mobil's South African subsidiary. vities of Mobil (South Africa) were unknown to its board; Bearing "in mind the evidence on sanctions-evasion that after all, they involved business worth tens of millions of we have presented, it would appear that Section 530.404 dollars, which would normally be reported on and evalu­ applies to any American citizen who is a director of Mobil ated at board meetings. And with three U.S. citizens who (South Africa) and who has knowledge of an illegal tran­ are or have been directors of Mobil (South Africa) and very saction. senior executives within Mobil (USA), it is difficult to see • Everett S. Checket is an American citizen. He is a how Mobil (USA) could be said not to know of th~ sanc­ member of board of directors of Mobil (South Africa). tions-breaking activities of its subsidiary.

Oil is the one import without which the white minority regime in Rhodesia would be unable to survive. The material presented in this report, concerning the means whereby Rhodesia's oil needs have been provided, reveals the existence of a Southern African corporate Watergate. The involvement in this whole operation by subsidiaries of Mobil, one of America's ten lar­ gest corporations, completely undermines Dr. Kissinger's stated commitment to the enforce­ ment of United Nations sanctions as a means of bringing about majority rule in Rhodesia.

31 ~1".""_""IIII"_•

. ~ fitO\'e it (by land, seaandair).

\Ve store it . (in\varehouses .andtankfarms].

We containeriseit. • )J

)1

. ":"ith over 7. OOOpe6ple in 92 centres across S6uthernAfricaalone, outs is by far the biggest group inireight. . .'Vhich gives us a number of useful advantages. For instance. the means to handle the entire gamut offreightoperations under one rooL Thatwaywe never lose track ofashipment's . progress; and the risk of itgoing astray is greatly lessened. . . ,j) JustoneofthQmanywa~~sourfriendlyoctopus / can lend you a hand.'· . .@ FREIGHT SERVICES DeL IIthere anyfreightservicewedon'tprovide? .

An advertisement for Freight Services Ltd., from' the (Rhodesian) Business Herald, 24 July 1975. Note the reference to their ability to store 'freight' in tank farms. There are not many commodities other than oil products that one needs to store in tank farms... As for their final question: "Is there any freight service we don't supply?"; the answer would appear, from the evidence contained in this report, to be no.

32 APPENDIX

PERSONALITIES MENTIONED IN THE DOCUMENTS Documents where Name mentioned Company Airey, D. 1,16 Genta: Operations Manager Atmore, E. George 1 Genta: Chairman Baker, E.M. 16 Mobil (South Africa): board member Bates, Tony 5,18 Mobil (Rhodesia): in charge of product procurement, early seventies Beard, Anne 6,17 Village Main Distributors Bedford, Eric, 17 Mobil (South Africa) Buys, B.R. 17 Sasol Cairn, T. 17 Mobil Refinery (South Africa) Camp, R. 17 Mobil (South Africa) Coley 16 Coley Hall, transporters Darby 1,18 Mobil (Rhodesia) Dickenson 17 Semco Dryer, T. 17 Mobil Refinery (South Africa) Dugmore 17 Mooney Ford and Partners: attorney Faure, Peter 4,16 Mobil (Rhodesia) Gallagher, C. 17 Mobil (Rhodesia) Glover, Ron 17 Mobil (South Africa) Gray, J. 17 Mobil (Rhodesia) Gubb, M.H.W. 2 Mobil (South Africa) Halamandaris, G.C. 17 Mobil (Mozambique) Hilliard, Jack 17 Mobil (South Africa) Isherwood, R. 17 Semco Jackson, WJ.R. 2,17 Mobil (Rhodesia) Jasper, J .K. 17 Cliffe Dekker & Todd: attorney Legge, C. 17 Mobil (Rhodesia) Mackenzie 1 Mobil (Rhodesia) Maskew, R.H. 16 Mobil (South Africa) Meier, R.G. 5,17 Freight Services Ltd. Milne,E. 17 Mobil Refinery (South Africa) . Morris, Arthur R. 5,17 Freight Services Ltd.: Manager, Foreign Trade Division Nicol, J. Berwick 1,18 Mobil (Rhodesia): ManagingDirector Oberholzer, AJ. 17 W.T. Development; and Oberholzer & van Straaten: lawyer Oxenham, R. 17 Mobil (South Africa) Patrick, David D. 4,17 Rand Oils Phear, Stephen C. 6 Mobil (Rhodesia) Preston, F. 17 Mobil (Rhodesia) Russell, G. 17 Mobil (Rhodesia) Soloman, G. 17 Caritas Steyn, M.C. 17 Sasol van Niekerk, 4,16 Mobil (Rhodesia): in charge of product Richard procurement before Bates Ward, Ralph 16 Wards Transport Ward, Warrick 17 Mobil (South Africa) Wilsen, F.T. 18 Mobil (Rhodesia) Winkleman, R. 17 Consolidated Stevadoring & Forwarding Agency Wyeth, K.A. 18 Mobil (South Africa) and Mobil (Rhodesia), at different times.

33 Letter from Chairman Warner of Mobil Oil Corporation

DOCUMENT #15 ...... -,....~ .... l . ",p

Mobil Oil Corporation 150 EAST 42ND STREET NEW YORK. NEW YORK 10017 til. RAWLEIGH WARNER. JR. CHAIRMAN OF THE BOARD

" November 13, 1975

Fr. Robert C.S. Powell Director National Council of the Churches of Christ 475 Riverside Drive New York, N. Y. 10027 Dear Father Powell: This will acknowledge your letter of October 29, 1975, inquiring about Mobil's operations in Rhodesia. I am happy to provide you with the information that you have requested. Affiliates of Mobil have been marketing products in Southern Rhodesia since prior to World War II. Our present Rhodesian affiliate, Mobil Rhodesia, was incorp­ orated there in 1963. At the time Rhodesia declared its independence in 1965, Mobil Rhodesia was marketing principally automotive gasoline, kerosene and automotive diesel oils, together with small quantities of other re­ lated petroleum products. Total sales at that time were considerably less than one million barrels per annum. The source.of the fuel products sold by Mobil Rhodesia at that tim~ was the Central African Petroleum Refineries (CAPREF) ~t Umtali, in which Mobil had a 17.75% interest. Following the declaration of independence., two unrelated sets of governmental regulations brought about a radical change in the method of operation. Within Rhodesia, the Rhodesian Government subjected all petroleum companies operating within the country to a stringent set of controls which required them to secure all of their product requirements solely from a government agency. At about the same time, the U. S. Government imposed certain prohibitions on transactions by companies like Mobil and its affiliates with Southern Rhodesia which had the effect of prohibiting the Mobil group of companies from engaging /1 outside Rhodesia in any transactions involving goods originating in Rhodesia or goods destined for Rhodesia or from engaging in any transactions in which Rhodesians had an interest. The U. S. Government regulations very 'I carefully did not prevent us from continuing our ownership of our Rhodesian affiliate so long as we observed the restrictions which I have described above. These two sets of governmental restrictions have continued to the present time. As a result, Mobil continues to own the stock of Mobil Rhodesia and its interest in the 'CAPREF Refinery. However, neither Mobil nor its other affiliates engage in any business transactions with either of these. companies and, as a practical matter, has no control over their operations. This applies to Mobil's affiliates in South Africa as well as all other Mobil affiliates. The manage­ ment of our International Division has gone to considerable effort to make sure that we have complied fully with the restrictions imposed upon us by the U. S. Government in this connection.

I hope the foregoing information will be of assistance to you. Very truly yours,

tfi~~/:-;r~h-

34 Letter from iehar v n Nieker of Mo it ( esi ) t ' ..H. M sk of M iI (5 th Afrie )

DOCUMENT #16

c •c. Mr. P. Fa. ure • c.c. Gents File.

2 •

ke.t E q., II

.• J4askew,

11 ADO.

35 DOCUMENT #16 (coot)

Paj'!enta

Gents. will haft autbor1aed the Netberlanda Bank to pay tr their revolrln& ~tter at Credit. in'foice rendered to them by K1JJero.la ExplaratiOD Co. in respect ~ S pl1 a f4 Mobil Diesel. OD payment at such inyoice. by the Bank, they will forward the iDYoioea '.. to Genta who will couduct their Q rea U1ation at witbdra 1a tr their re'folviDg Letter t4 Cred1~, ! dupl1cate at KUaftla Exploration imo1c. will b4t 1le4".C MOSR tar a't&t1:ltical purpoae••

Tbia pa.YJl8Dt prac.dure rill greatly ap..d up the ult1l&ate ip' by your soodaelYea ot p~nta aDd _ t ... therefore, a aubataDt1&l r tio in the 1'..t.R••• pre ntly retl.ctect aiDa" ~lo Amer1c&A' n er t 1 nt t.

ople that _ • thaD aD

Gasoline

The priDCiple aa %pounded 1.D detail ~r A..D.O. abov ppliea to G••oline. and. haye r 1ved Sa 01'. ooocurrence hereto.

They will fr. the c nt ot their Sept. r Account!D& Month o n t e t ocounta. one ch 1D the of Rand Oila. M1Derala Exploration and W.atern Tr nayaal De'f 10 nt and F.xl)larat1on Cc.~, billing •• thre arsani3at1ona on a rotational b sia. I turn the !lOCO t bill d 11 re-bill a 1.s depicted on the d.1Agraa and ultimately Minerala Exploration will r 1... a billing tor the gaaoline which paaa.a Saaol to ua.

Suol Qave agre d to oreate as an acti dOC\88Dt a duplicate at tblir original billing 1ng thia direct to II rala Exploration•. Jl1neral Exploration will then bill Gent& 0/ the tberland~ Bank and pas a copy ot Sa 01' iDvoic to ua tor atatiatic 1 purpoae3. The p~ent route will be a tor A.D.O. reby 11.ne l~ Exploration will be p&id by the Net rl nd.s Bank tr- tUDda 14 UDder a revolviDI letter of credit" i ued by Genta; auo nt to Sasol will~. . II&da at aore frequent 1Il~ 18 thaD hitherto aDd in turn pa nta troll Sa.ol to Y .bould b.. dad up.

Lubricatin5 Producta

W. have obtained S IICO'. Agree nt to our op.n1n& a nlaber 3' acoount in their nam at the addreas ot their Attor ya. The Attorneya will rea iv the original bUUD& MOSA to ther with a copy ot a loading Dote. On receipt at thea. d nu they will type onto & o invoice p da aiaplit1ed yarai of content. ot MOSA' a original invoice. billing on a rotational bu1a.-RaDd oUa, V11lap MaiD Diatr1butara &Dd Western TraDaft&1 De 10 At. The MOSA iIl'fo1ce will then b Ued in a e&led eDyel pe to ll1Derala Exploration. This latter argania.t1OD will th n their in.o1 pad bill ieee. at Bhodeaia extr ctiDa the detailed iAtonaation troll the Mobil invoice, and td oouru, giYiDa their invoice the D her u KOSA's. In the SaD way.~ _ deacribe4tor A.D.O. ultillately aD invoice ~ o to Yinerala Exploration tr one or the other r4 the intermedi&r1ea quoting the s n\.Dber aa the invoice that baa c to Minerals Exploration alone the diroct route but th!a will be 19J1ared by MiDarala Exploration :s~.. the.r ,11111 baY a~ b1~~ Re

Se o'a bandling charg•• will be raiaed QD a separate debit by the legitiJaate S co or~5atioD troa the 1DtorMtl0 contai.De4 aD the 1 d112& note which will baye paa..4 rrc- the co er 3 • ~p to S o.

36 DOCUMENT #16 (coot) Payment

One ot the d1aadYantagea which both youraelYe. and oursely a bay. had to contend with UDder the old .et--up a t delay 1D the receipt ot payment S 0 by yom-aely and the O~oWlt1n&'dis neu. which occurred en Semco n-invo1c d ua. UDder prop 4 ••thod it will b who conduct th recoao1l1ation of t Son r 3 ccount and will bay. a db- t control oy r the Dt b 1ng de gainet that ecount. UDder the pre.ent &rr&J1& nu _ pay Se co receipt at ooda. ut .. know. that they delay up to 90 da.Ya t pasalAS pa enta to 7 • Under 0 propos d an:-angeaaenta will contiDwt to y ria II ral.a Exploration to t Durb Att Y 0 the receipt r4 gooda, a thi~ yment will b de into the AttarDey's truat account and ace p Died. by tull de 11. ot t 1a being 14 w1ll be obUe;ed to pus the tunda t MOSA pr pUy. Thia prop 1 therefore, excludes So·sacco ting orgaD1a tioD 8ntir 1y trom this procure t pr • but does DOt 1A _y alter the procedure as applied to the phyai 1 ap t ot the transactio~. ~emco in Jacoba will continue to re iy conaignment detaila t4 trucb, they will be reapon:sible tor ~ 0 t. clearing ot same and oona1gniDg; they will alao' C01ltlD to·b responsible tor 1ling to ua p pUy uch c toea' doc.. t. a are Deceaaary to facilitate eta olear c. at t deatiDat1 • ID y1e. at wbat Mr. Bale r d 5a14 about th ocmt1nued satisfa.ctory relationah1p b t en S 0 and yourselv s did Dot broach ubJect at ndl1JJc 0 rs•• but lett thU tter ~ the a b.ai. as hitherto.

SerTice ChargeS

It baa be n DOceaaary to ca.ait aurael., a to II&ka payment to certain ot the organiaatiOM who are aot1n& .a intermediariaa and 11 t.b low the reaU.,. c • that .,. incurred: Rand 01la R20p nt w tern Tranaft&1 D ., lopaent 126 • .. ad ~plorat1oD C pany. p.O. Box 6n. L1ohteDburS. K1Deral.a Explarat101l. To &dY1aed. Bota Carri rae 10 char • Bot. TraDaport. o abu-p. Semco N er 3 Aocount, To adYi.aed. coDdu.oted by Mooney. Pord aDd PartDen, Durban.

Aa Keasn. M1Derala Exploration aad 1I00De)' Ford. 1D that order will bav. the greateat amoUDt at retyptDg aDd re-directing to do xpect their char • to be rather .ore than the n 1 tigur • quoted to by .ten Tranaft&1 Develop nt and Rand 01la.

:ben li haye bad aD oppartUDity at a .alDg our annual fnvolv nt 1A rv1ce char a we 1d.U U we oonaidar it cesaary. II&ka repres atat10n to c;..~ tor.. n.liet.

~e truat that the 'Flow D1asr &Del the foregoing ia·autf1c1.ntl~ xplicit. but it tMr. ar &r13 poiAta which you require clArit1catiOD pleaae ".,art. Bil1in6s to Genta

You rill recall that 1D JUDe I aade repre.entaUou to you with the req\MIat that the ab 1 freight.18 at b. iAoluc1ecl in thly bi1~. to Gent. ratbez- thaD • tbe. Je,t at ...pant.

~bit. I

On the 27th Juaa your people wrote to ll00aab1que, reterence MGVWr.x: Code MG8-5600c. advia1n& Moc&Abique that with ert.at tr the . July aCQount1n« onth t~ billinga to tbe .,arioua argani tiona would be u tollo & .'

37 DOCUMENT #16,(cont)

Jet 10.6 Sa Atrican c nta per pll. Die 8.3 • • • • • Ga oU 10.3 • • • • • H.~·'U..IlJlP Guol 8.6 •• •• • •

o d Genta at the July char ­ oub and it a 0' :f a later that th8 Sa 01 Ul1nga tarted c n'\ than had t101 ted. ration far n included appUcable charge­ % ichc tr

·09309 09951 FO VAN EXERX AUGUS! CHARGE ours PREMIUM 10.3 REGULAR 8.5 JET 10.7 A.D.O. 8~ ALL S.A. CE PER IMPERIAL GALLO 5600c·

Th1 s into ti s c - c ring.1 c nt p r 11

The upshot ot all thia 18 t t. baye ' bUlings to the ext nt or 565.90 Rand, arq aerrlce char ' write to ale t '1

.iDee this would

'he you bave g1 with full detail 01 invoice•• Su

Aa e d to the telep Frlday aorniDg have held further diae alona with Genta ben QA th1. aatter and the)' are a 1'8 that are goiD& ba to Shell i~ aD otter to ace odata th at L.Y. tor sular. It S U h.M 1a tt r there will II • J t1t1cat100 t Centa la'9o P a1 at our expeDM.

Airey baa teDta~1 q agreed aclJuated in Ootober to re-all ace odation arrang Il' can b. iap Deal1Dg briet1y with the queatiOD at our, and othan, being unable to supply Preai troll L.... tor a peri ot, eka, Airey baa aaid that hia people 1D Lourenco Marquea are, to • larS- extent. 18DOriDg the pr at pro aDd purchaaing Prea1 where they are able to ,et 1t beea tM baa faUea tb&D U 1I11110D U ~ arrear. Kay _ aug at tha~ yo , it your replea.1ahment p CAn pD1a to cater t ad41t1oaa1 otttake, lAatruct your Louz-eDQO Jlarquea people to aD offer to the appropriate orpA1aera 1D LoureDOo Muq~a tor tenr yolLae ;you can .pare in 8%0... at 1 0 At. TnoJdnl t to ar-iDI traa lOU, witb k1D4 penoDal regarcla. ,., Youra aiDeen1¥.

Richard Y&A N1.kerk.

38 Mobil (Rhodesia) Memorandum describing importation p per-chases.

DOCUMENT #17

PRODUCT PROOUR.EMF.llT

Situation. When orders tor lubrioants and solvents are placed on our South Atr10an aaBo­

oates, & o~:tullj- plAnuad "PLlper chase" 18 uaed 'to d1&gui.ae tha t1.Dal desi1.. W't1on ot thseo products. Th1a is neoeaear.r 1n order W make sun tba~ ihan I 18 no link ~otween L10SA aDd MOSR's suppl1ss.

V41at happen.a 18 th1a 1-

MOSR placea ordertJ tor lubes and greases on Chem100 thro~ Vla.rr1ck ia.:U 1n O~tral Region. MOSA 'then sell to Chemioo who 1n turn suP9l1 WSli,

Tho order 18 bllled aDd oona1gD.ed oy MOS.A. ~ Chem1ao Ho, 3 Acoount w1th iha Durban attorn6yu, Moanel lord, and Par~' ~ JJUmber, 14)Oll8:r lord Wl4 Pan­ non then uE.a.ka out tv,o deb1.~aJ the f1rot at these 18 '\0 J.U.n.ex-eJ. Explorai1on (lro1ghi Servioes) aDd the other to either ,..

Rand 0i.lG v~~ Ma1n D1atnbuiora, O~ \f, ~. Development who in turn c1roulate it to thQ other (e.g. VUlaGo Maj.n D1str1buion deb1~a RaDd oUa) before it t1nall.y aga1n QOme8 to l41neroJ. ExplDrat1on. 1aI:1neral Exillorat1on act on the nrat adv1se and debit Recom ot Bhode.,1& (msa). ~i U Dade bl lJ05R 'to ChomiDo No.· 3 aoC0W11 tln-o~ Moone1 Rom aDd I>arineru.

A 8~ aei UP. 'tNt ua1nG d1Uereni partie. 18 uaed tor tlw ··proQ~i ot lolnnia,

Th1a "paper ohase" vtl10h oosta Tery U~tlfl to 4ld m1 n1oter. 1e dODe ~ to h14e 'the tact tba1i MOSA l& 01n tact supp~ wan nth prod\lOl in QOAiraYeni1oA 11\ ot U.8. Sanctions Regu].al1ona. Reoommend tionl It 1.8 reoommanded that no attemp", be made to ~o the present procurement se' up, beoau.ee1- ::.) The coat 18 m1 pi mal 2) Ii 18 not too oumbersome 3) I t is vaOrlc1ng efficiently, and 4) AJ:J¥ risks raoult1ng trom a oh.an8e 1n 'the system v.ould b. bourne 'b1 lDSA and we should therefore leave it up 'to ihem to reduce ills exteni ot the "paper chase" if' they deem fit.

39 DOCUMENT #17 (coot)

'PRODUCT PROCURBMENT

aON'l'ACTS !!2.2!! Northern Region & Ron Glover

OOJ1t~ Region I Warr10k ward J aok Hilllatd Oape Town I E. Bedford R. Oamp Ro:t1n817 • (onlT approached tlu-Qugh Central Region) E. l.11lne T. Drrer T. Oa1rn I G. O. Ha18[ffuldarU "(tl'mJugh R. Glonr. B. Bed!ord~ :a. Oamp)

~ 1) he1ght Servio.a, F.O. Box 1101, JOHANNESBURG 2) Village lJa1n Distributors, P.O. Box ~24, ryanatOll Mra. Am1e Board • .,#- 3) Rand 01l.a, P.O. Box 2581, JOHAlill~URG I DaY14 D. Patnok 4) ·Weot.rn TransvaAl Dovelopmoni, 2.0. »ox 396, LIOmEUBURG I A.J. Oberholze.-. who 18 & lawyer 5) aomeG I B. IaherM)od &D4 D10kana0n, the coloured truok 4.spatohe~ 6) OU1i&a, P.O. Box 8873, JOlLum~URG , G. Solomn 7) Oonaol1dated S'toTedor1ng " l'orV4rd1ng Afj0lllJ1. P.O. Box ;5 POU1, NA~ I li. Winkleman a) Ol1tta Deokor & ~Qddt P.o. Box 3382, I A'ttornoye oontaol Mr. J .X. JOH.ium~URG l pe~ 9) Mooney, Ford & Partners, DUHlWl I Attorneya oontaot Mr. ~re 10) 6&801 I K.O. St8yn or B.R. BlqW 11) M1nerala Exploration • ~ ~18hi Sel'T1oea.

40 DOCUMENT #17 (coot)

- 2 -

:h8 abaTo .plu.e others, aa applloable, an sent Ultte17 i1oket. at Ohrtatmaa with & leiter of appreo1at1on.

I. REPINED rnODUCTS (axolud1ng solvents and aome av1at1on) On the taos ot it, it 18 a 8t~' irena80tion boiween ouraeln. aDd Gen-ta. Produoi 18 reoe1vod ~m ~m based on our aieok tram our Depol etook - l.vela aa proY1ded by %4r. J. Gral he l1aaea with Cienta on Produoi )10...... mont. 1'he produoi 18 reoo1v d by Depo~ at 20°0 and thee. quant1i! are \.USed tor paymont purpose. .~here are, ho er, adcU.'t1onal poota 10 th1a ... (a) . Genta Allooation .. Genta &lJ.i,oaiee to rDobU ~ 1mponai1on ot Prem11.1.mt Regular, ADO, and Aviur. Art.u- 18 1mpor~ad on bohAlr ot Industry desp1to t'requent attempte by Shell to atop th1a. ~ol c~ product oontam1nAt1on eta. This 1.& reaolved by a sample to 'them ::om eaoh \latah. '.lb1le 1:ob11 1J:lporte Avtur, other oompuU.e 1m..,ri klraaene aVgaB otQ. G nta makea theoo allooi.t1ona OTerj' four months and sand our alloaat10n t1gl..lres to Mr. E. B tori, who informs S a: D who 1n 'tlU"D l1aae8 \~th the Genta agent. (1) ~ .. The ttaohed. e0ha3.ule abo the method wilerebl Genta 1& l debited by Mont. Y.ou '6111 DO" that the.re are three 'agents ... .A. RaD4 01la B. w.~. Dovelopment o. M1norala Exploration. RaD4 01lll and W.~. DeTolopmeni are punll' ~ "paper-ohaae" aDd M1nerala Explorat1on deb1ts Gent at Rhodla1al1 M1a lon, Kar1t1m8 Howse, Johannesburg.

(2) lulo _ I40nt debits 'tho 11oior and Industrtal ~1"fW8port using the !41n rala Exploration box ~lIrl ~~ ~rat1on 1n 'tlU"D deb! Gonta 1n tho same _y aa potl"Ol. (3) ~ .. Genta 1& oUlad cUre 1 by he18ht Bernela.

II AVIATION REPINED (a) Aygt1a 115/145 tor Air 1~ana Atr10a ordered bj" telex on Ron Glover ot ft - l1orthorn Region!* tor oiiiward t~81on to L.!4. Glover adT1aoa deta1la on availability oto. to Maar. MAs debita oither ~rek or Qar1tol' wbo debits Genta 10 Johann~8burS. Paymeut bl UOs~ to G9u~a 18 done on the same baa1a as Refined above.

3/ •••••••

41 DOCUMENT #17 (coot)

- 3 -

(0) ATgaa eo as per .

III SOLVEU'.L'S

These are obtained trom 1- (a) Toluol and Xylol Ex IaCOH and pa1d tor v1& ISOQn, Bulay&¥o. (b) :Petrop1ne and Wh1te Spirit Ex Ha1be'i Evans Durgan aDd pa1d tor bl ~auk Dran. (0) Others Ex Nonhero Region V1a ~18ht Sen10ea l'laacon AOaouni.

h'oduot... 1a ma1nl1 1n bulk.

IV ~ .AJID PETROL ATtr~ Indenta are dependant uponl­ (a) Imr:ort allooations (b) ForvA.."'U requ1r8IDDnta as deie~ by Oommaro1Al Depa.r'tmeni. Orde~ arb 1n1t1ated aga1nat. Richard Dagg1t . AGL (Alan wack &: Sluaphord) H1gh!1eld Agencies D.L. Petroleum

Tho aboft are asked tor px-1oea. avaUabU1ty, teobn1oal d.~aUa eto. &nil in tho CaDO ot AGL, dopend1ng on agenia reapons0 • 'they are asked to oontao" their e.t;euLs. Should a quote ba acoepiabl , an Agreement ot Sale 18 ente~ into and tho agent 1natr\40ted, 1n8~e taken outa import pend.t aDd order 1aaued eWe All 1h. aboTe agente an pa1d loo&ll¥ exaepl AGL on & Letter ot Cndit and Somoo on a Bank Dran.

, ASPHAILrS (a) Industrial • 1'hes8 are obta1ned Ex Moret b1 Samoa. A t lex or phoma oall i.e mad" .~ W. V,ard giv1ng p&rt1oulare and a.old.n8 tor d.ia1la. (b) Road t~1n,'{, Theae are 0 bta1ned Ex Genia 1n 'th& normal 'NfJ.1 1n vG1ah Genta is deall with.

41 •••••••

42 DOCUMENT #17 (coot)

- 4 -

VI BPEOL\.L PRODUCTS Examples VAX amu.le1oDB. wb.1te 0118 oto. ~o 1.n1i1al approaoh U mad. bl letter or tolephone to Northern Region (Glover), Central Region (iaN) or Capo To\'.n (OxenhAm) for prioes and avaUabU1"tl. A perm1i 1a applied tor, it neQ~saary. dependent on produat aDd an order 18 p&aaed on e1'ther h\l1&b·t SOl~ce~ or C&r1tea. Hr. Leget) is responsible tor plao1ng tho 0~~er8 wh10h are 1n1't1a'ted on the adv1so of Mr. JaalaJon.

VII LIQUID PRrnOL1W GAS L.E. Gw1 1a obtained rrom Genta (wba obta1n it Ex 50narop and Basol), lab: Legge 18 reapona1\)la tor the ordera Y4l1ah are made aooord1l18 to lIiook leYOla.

VIII .L,P. Gi~ gUIPUENT

These can be div1ded into I. (a) looal Manuto.oture e.g. la10aaruh

(b) Imponed items whioh &.rQ ourrentl¥ Oa.da.c equ1~t, aDd Borthern 1ieg1on (via Carttaa) tor XoS~aB reguaiore. ~h1a tunotion ia Qont1"01led by Mr. ~her. OrdBr8 tor L.I>.G4a equ1~l reqU1re 1mport l1oen.ats and tb.e volWDII ot aport 18 thereto~ regulated. Mr. p.. Prealcm 19 reapona1ble tor koep1.n& 1n~.reoteC parties 1n.tormed ot the level ot currencl ~Qat1ona.

IX OIL9. AIID GRFAS~ (!Jorot ~aoture) Tho indent tor these 18 dono by Mr. Legge. ~h8 prooedure 18 'to do a tUm 11K bl prodUQ~,. paok and dosi1n&t1on DXUlthl7 acd ~i ih1a 8Upplomen~al7 1MIJ oan be made •. In ~d1t1on ani101pated tuture DJntha 1ndeni 18 done ~~ tOl nfinerr plAnn1.ng pu.%1Osea. Th1a 1ndeni 1a OQllt~UtKi 01 Mr. :Legge 1n ool-­ laborat1on with W. Ward (Central Reg1on). .~ 1Ddent 18 billed aud ooua1gwK by Mosa 'to Bamco No. 3 AQoount w1th the DurbeA Aiiome18. J.k)0l181 Joxd, box DWDDer. In regard to tho b1lJJ.nB Moonel roN wrJ.te oui '510 debita) ihe Un' ot these 18 to J41nerala Explora't1Qn (lre1&hi atn1aea). a.nd the oiher e1thir to .- Rand Olla VUlage Main D1atr1buiorB W.T. De~B1QpmaDi who in turn oirculate it to the other ( e.g. VUlage Ma1n D1atr1bu~re debit.

5/ •••••••

43 DOCUMENT #17 (coot)

Rac4 oUa) batore it t1.Dally aga1,n 00 • to M1nezala Explon.i1on. JU.nusla ~plorn"tlon act on ~e f1rBt adrtae aDd d b11 lleooJll ot Rhod e1&. :h1.e 11 e1th r addreoood to P.o. Box 39, 50utherton or alternat1v l.y dallYered io Moor by hand, marked tor the att nt10n ot the wntar. ~n-; 18 made W . SeD»o 110. , Aocount (Mooney -lord) duo to prev10Wl c1alaJ8 tmCouniend y.i:).e11 he~t Bon1o 8 r pa14 aDd then l&)one1 Jori-. Mr. Legaa 18 reepona1ble to~ aU orden.

I AVIA~ION OILS The atock polllt1on ia rena d by a. Legge aD4 Q. iu.aeell. G. Bwlaa;ll then. decides on order cjuaIlt1t1Q and \fri.-to io E. B tQ~ ~uast1ng .~b1l1~1, pr10tla eto. On reoo1pt at ih1a 1nto i10n tho ne~ otJ&17 dooumanta't1on 111 pr8pa:'tld and the produot obta1ned ~ Oar1tN.

XI BRAlCE proms AND DF1rERGE1lTS Those are objJa1ned looall.1 D1 M:-. a. asge. !ho tormtsr Ex Pt1zo, and t1w latter nom. Ohom1o 1 Sorv1cos.

XII HYDRAULIt:' PT11IDB Th • Ex ~nt na Oarttae.

44 Mobil (Rhodesia) Memorandum concerning importation routes - selected pages only DOCUMENT #18

STHICTLY CON.l·"IUl::NTIAL 14th June, 1971.

Hr. Nicol Hr. liy th Hr. Darby Mr. Wi~.8n Hr. Bat••

PROCUllLt-iliNT ROUTES

1. ODJl:;CTIVl:: To cona1der the alt rnative lJrocurem t rout a available to u. with a view to ..certain.1ng which 1. the mo.t ecoDDa1ca1. aDd wldch une to uil11. should tU .-oat eooDO oal I'VU~. b. o~o••d to us.

2. ROUTES There are three rou~. wMoh" W. oou.ld utili.. at pntaeut.

Road tnuuapon 1.0 bulk to BuJ.&".yo and SaJ.:1.~. Uail via Dot.wan to deat1Dat1ona in lU1oda.1a. ~..t eoaat ah:1pping to Lourenco Marque. aDd Bej.ra. and rail to deat1Dat10Aa 111 WJode.l •

Por the purpos•• o~ thi.. study BuJ.awayo aDd tialisbury ah&U. b the only d ••t1Dat1ona to be OODddenMl' .. they .... \UMI&l1y the bea depot. ~ w~re produo.'1. re-~ut.d ·to otb8~ de.t1Dat~on.. ..

No aoCOWlt 1. takaa or the pla.nAeCI Dew nJ.l link vla BeJ. * Brida and Kutenga .. any ••tilla'. o~ nU. ....*•• OD tbj.. J.Uw wou14 ~. pur. CODJ.O~.

,. ASSUMPTIONS Xt 18 aumed that there 11111 be no c~. in the CUlT8At .anct1oAa position in the .toreeeeable tutuh, aDd that the '.1Uka a.~1n8Z-Y will reaaain out o~ action. 4. Lubric ting 011a At proaont lubric i1ng 01.1. are trUab.1ppe4 ~rwa DurbaD to d••tination 111 !lbo4eala by ro in ~ (.51~) t and by ra:1~ (ria Dot8wana) 1A drum. (4~).· OAly the '-••t.r .oviD« lubricatUIB 011. are tranabipped in bulk, bu' tMy do 0 pri•• the "JQrity o~ our puroha••••

I •••

45 DOCUMENT #18 (coot)

- 2 -

4.1. ttoad Transpor't in buJ.k to BulawRlo W'ld Sa..li.sbury (a8. ttacblDent 2). o 4.1.1. The pre.ant coat or aoYiDg lUbrtcatlDc oil. in tlU. manner 1 ••• DuJi)an/SalJ.abury 3.76" cent. per Utre D\Ui>aa!Bulaw&y'Q a.89~ OeAta per Utn. 4.1.2. Our road t.r&ll.PO~ operatgra have. bgwev.,.. indicated to ua tha~ lhey nab 'to 1ncn... th8.. pric•• in t~ near future. Tbe propoaed new price. arel- Durbaa/SalJ..bury 3.959' oaat. ~r 11t~ Durban/Dulav.yo 3.1IQ96 c t. p.z- Utn.

4.2. Rul ria Bot.vana in druua. to Bulawayo and Sa1.1.abu£y. 4.2.1. Durbaa/SaJ.1.~ '.7107 oent. peza litre. 4.2.2. Durb8alDu1.awayo '.O~7 oent. p... Utn. 4.,. Coast ahJ.ppins to L.H. and Beira, and rail por~ to d ••tination in Rhod••ia• • tea Dt 1)•. 4.:).1. .Durbaa/L.N./Brfi: OoeaA 'rei ••to 1.70~ ceIlt. per 1itn" Rail... . ,'. 2.76~9 0 •• pe~ lit" . ,.4682 08A'. pe.- Utn

DlU'baa/DeJ.ra/ Sall.bury. • Oceua 'niP.".0 2.1~9 ceDt. p... Utn KaiJ.ac. ' 2.9912, 0 __'_ pew 11'" 5.1]81 caa.t. ~.. 11i...

To Uw.. price. DlLUI' be addecl aDY Bgtmcy· r••• which ...,e vou1.cl have k 1DOU&t $broug,b u.~ $.bie route. '.~,.'." .. \' I 4.~. Recomaaend tioll ~or Pro~~~t':' R~ut. o~ Lubricating Olla.

Dt;STDlATIQN RO.ul JlUL EAST OOAST tHUU) (Ollml ). (DRUM) .. DURBAN/SALISBURY 3.76:J' . , (3.9595) '.7107 '.1381 DUWJAN/nUUWAYO 2.8990 '.0567 ,.4682 ('.4096) ". (PROPOSED nW HATES Df BRACKETS)

46 DOCUMENT #18 (coot)

- 1 -

4.4.1. Lubricating 011. at Pre••nt tranahJ.pped in Bulk. A. can be a ••n ~ro. the abov•• 'nmahipplDc coat. ar. lowe.t whaD lubr1cat~ o1~. aze tnuuJportad. by road. tank wagon. 1.D 'bulk. ' Thi.. 1. our pre.eDt route or aupply toa- tM · majority o~ our lu.bricating oi~a aocl' 1~ 1.8 r.co....nd.e4 ihat W. CQAti.Du.e wa.1D« ~. rout. ~or a. 10118 .a ".. aze abl. to aacure the . nac•••ary 110-.4 Tnnapon Carri.r~__~!!!:~!1cate-:...!.

xr at .om. tiAe 111 the 1\& ture W. QZ8 unable to utill•• th:1. %Out. due to the rithcln.w&l or our c.nJ..tlcat••, ~be ra:11 rout. Yia Botawana sho&&1.d be u••c1 to aupply Bul.wa70, and ~w. Eaat Coa.t rout. via B.ira to aupp.1y SuJ..bury. (The u•• o~ the -ut co.., renat. i. or cour.. dependent OD there belDc no ' adver•• a.curtty or pubUcJ.ty ri_ javolve4.)'

LubricatinG 011. at Present imported in Drum•• We at pre.-ac 1apon tba .lower .oYiDc olU ~ dnaaaa by rail. vi.a UGtawaua. We recolJllMDd ~t thi. ~t. be re'ta1ned ro~-, euppll•• con.~"ped .to Bula"ayo. but halley. that .uppU•• d ••t1D4td ~or Sa.l1.buzy 8boulQ ua. tlw Eaa' Coaat. z-o~t. (i.~ ••curity cou.lderat~~ ~~ow ~a).

5. wnnIcATISG GREASES At present all l ....bricating gr.•••• are t-ran.ported by nUl·vi.a BotaW1m& to SaU..buq aocl Bu1Awayo. (G~....· CaD only be tnYlah:1pped ill d.l\aa). , '.. .:.... ,.:. ..

TM alt.ZOD&'l.... ~ut•• aDd co.,. ~Qr ta-aDlIlUpp1.nC p-e..... an...

'.1. By Nail via Dot.waIlA to Dulavayo and Sui.burr_ 5.1J..Durban/Sal1abury 6.6625 cent. par kg. nurbaD/nulawayo .. ! :.'. :, '.8'9.5 C8D~. p.~ q • '.1.2. . : .. :- ... ,.2. East Co.at Shipp1.ng to LeN, and neira, and ~l to de8t~ tion in Rhod••ia. '.2.1. Durbaa/L.M./Bu.lavayo 6.3796 c.nt. per kg. ,.2.2. DurblUl/n.ira/Sal1,abau7 '.99~' cent, pezt q • ••• DOCUMENT #18 (coot)

N ~N-FrNANCIAL CONSIDERATIONS.

1. LubricatinG 011. and Gre 88. In tho rly 1960-. the Ea.t Co t route via Lourenco Marques and Daira va. uaod to .ufply point. 1.D RhQcle81.a• .Thia wa. changed ~rior to U.D.X.) ror the to~lo"lDc'-' on•• 1.1. Thora vere oouaiderable delay. on th1. route. 4el y. w~cb are Dot .~riQnc.G vh n thft rail rout 1. u. cl.

1.2. The inQ1denco o£ d • to pl'Oduoi 011 th1. route va. h1~.

·~.3. For auppli. d••tine4 ~or B~aw yo t .rail route va. ore eco~ al.

With U.D.I•• it b c n8c•••~ to ~poa. certa1n a.~~ "striation. 80 a. not to link Mobi~ "O'lth Urica rith Mob11 Hhod ia. The It.., Co.at X'Out. va., Uwa-e1"ore, overlooked roJ' the tollovug re..OIl.1-

:1 t " a - •••i.r to have Owt puroha.:lng agent' 1D South A~r1o. (SEMCO) ."ioth whom to ·deal. rather than bav1.n4: a purcba.~ac.A' 111 South Uno. JUlc1 ~onardJ.ng agent. 1A Lo~co Marque. aD4 a.ira. (Note. The adAUtlona1 811ey charge. would Dot a1gn1r1c tly ~ at t co~c. o~ ~h8 £ .t Co.at ro-.&ie).'

W1th the Eaat Coaat beLng UDd.~ heavy .~.il~&Dc. it W&~ conaid red UD4ea1rable to V8 HQb~ ~• • t ex d at Mo b1 na, eve tbouah • OD ihe ~~ had be ~s.d·out.

1.6. Mobil 1A Lourenco Marque. aDd I).ira wou14 bay. ·n~th.1Dc to do with MAoh an-ance eAta.

The point. mantioned above at~l pertaiD today aDd abo~d b. OOAai~red w dec1d1n& ~n ....p~~l l'Out••• . . ~ - ~ ... -.., , .; a. en. Until. .fairly h~4IIltly the .upply ute tor 1nc1uatrial . blt n. vi Lountnco Marquee. Thi. v.. becau.. our ~rcha.J.ng agent waa Ur1can Bii z.uaioD who wen iAvolced Li Lourenco Marqu... rre1ght S.~o•• in L.H.' ul tb8 take oyor on tw.. invoice and ra11 u.. prodllot to Sa.liabu&T 0,- Du.lawayo. . •

48 SOUTHERN AFRICA

NAMIBIA

Windhoek•

enco Marques

Principal foreign oil refineries: [!) Mobil CY Shell and B.P. rn Caltex Routes whereby oil products have reached Rhodesia: • by ship from South Africa to Lourenco Marques (and occasionally Beira), and then by train to Rhodesia • by train from South Africa via -Lourenco Marques to Rhodesia • by train from South Africa through Botswana to Rhodesia • by train from South Africa direct to Rhodesia (since 1974 only) • by road from South Africa direct to Rhodesia • from the Persian Gulf to Beira, and then by train to Rhodesia An aircraft belonging to Air hodesia, powered by aviafon Ii el prob bly imported by Mobil.