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 defence-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 defence 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 programmes 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 normalised defence 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 programmes that met the criteria of both governments.
Mr Pahad indicated that this announcement had removed the final impediment
in the defence industry relations between the two countries.
He encouraged Denel, Fuchs, Armscor and the South African Defence 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