British stake in South Africa

Press, Volume CXII, Issue 33037, 3 October 1972, Page 15

British stake in South Africa

IN Z Press Assn. —Copyright) LONDON, October 2.

Britain has a stake of more than 5NZ20.30 million in South Africa and receives more than one-third of its exports, a book just published reveals.

“The South African Connection” examines apartheid

through the economic spectrum and points to South Africa’s dependence on Western and especially British capitalism. The book reveals that nearly 60 per cent of all foreign investment in South Africa is from the sterling area and lists more than 500 British companies which own subsidiaries there. The authors are Ruth First, Jonathon Steele, and Christable Guemey, who say that despite a steady growth rate of 5 per cent to 7 per cent, the economic position of the black had worsened.

The wage-gap had widened rather than narrowed. In mining the ratio of white to black wages was 11:1 in 1911, 17.6:1 in 1966, and 20.3:1 in 1971.

National income given to African education was .49 per cent—lower than in 1953, although the African population had grown by more than half. The book said that British business reconciled the profitability from South Africa by expounding the theory of “evolutionary” South African development. But British business was having a serious and bad effect on the black’s position.

The authors said that businessmen would have to admit their profitability was being derived from South Africa's apartheid policies.