South Africa has welcomed the announcement by the US State Department of rescinding a ban against Armscor, Fuchs Electronics and Denel.

The three are South Africa's defense-related companies.

The debarment was originally instituted in 1994 as a result of activities undertaken in the US by these companies during the pre-1994 arms embargo era.

The three had been prohibited from participating in transactions involving US origin defense articles, services and related technology because of actions undertaken during apartheid.

The move was subsequently suspended in 1998 as a result of an agreement reached in this regard between South Africa and the US Administration.

Then, President Thabo Mbeki and former US Vice President Al Gore agreed to a framework, including the establishment of export compliance programs in each company.

In a joint statement in 1996, the two said South African companies would no longer be subjected to a presumption of denial.

"Instead, they will be evaluated on a case-by-case basis, in accordance with foreign policy and national security criteria."

The suspension of debarment opened the door for normalized defense trade between the two countries.

Foreign Affairs Deputy Minister Aziz Pahad furthermore welcomed the US' statement that, "the South African Government instituted concrete and far-reaching measures to establish a comprehensive and effective national export control regime".

He confirmed that South Africa was in agreement with the US' position that the previously debarred companies had since developed effective export compliance programs that met the criteria of both governments.

Mr. Pahad indicated that this announcement had removed the final impediment in the defense industry relations between the two countries.

He encouraged Denel, Fuchs, Armscor and the South African Defense industry at large to use this opportunity to actively pursue business opportunities in the US.

Mr. Pahad expressed his appreciation towards the officials of the US State Department and the companies' representatives for the "positive and co-operative" manner in which they approached the discussions that were held in order to find a mutually acceptable outcome to this issue.

By Veronica Mohapeloa, tel: (012) 314-2401
Issued by: GCIS (Government Communication and Information System)- BuaNews