SOUTH AFRICA: THE POLITICS OF RACIAL REFORM

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05629424
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January 1, 1981
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Approved for Release: 2018/06/01 C05629424 Director of Central Intelligence South Africa: The Politics of Racial Reform Interagency Intelligence Memorandum Secre NI JIM 81-10003 January 1981 Copy 237 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 PROPIN� NFIBONLY� ORCON� REL ...� FGI� Warning Notice Sensitive Intelligence Sources and Methods Involved (WNINTEL) NATIONAL SECURITY INFORMATION Unauthorized Disclosure Subject to Criminal Sanctions DISSEMINATION CONTROL ABBREVIATIONS NOFORN� Not Releasable to Foreign Nationals NOCONTRACT� Not Releasable to Contractors or Contractor/Consultants Caution�Proprietary Information Involved NFIB Departments Only Dissemination and Extraction of Information Controlled by Originator This Information Has Been Authorized for Release to ... Foreign Government Information Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN SOUTH AFRICA: THE POLITICS OF RACIAL REFORM Information available as of 28 November 1980 was used in the preparation of this Memorandum. SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN CONTENTS Page FOREWORD v SUMMARY AND KEY JUDGMENTS 1 DISCUSSION 5 The Legacy of Apartheid 5 Forces for Change 6 The Debate Over Reform 7 Reform Under Botha 9 Botha's Commitment 13 Reform and the New Politics 14 Nonwhite Reaction 16 Prospects for Change Through 1982 19 Implications for Stability 21 iii SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN FOREWORD This Interagency Intelligence Memorandum represents the Intel- ligence Community's first in-depth assessment of internal South African political dynamics as they pertain to the process of racial reform. The ruling Afrikaner minority's thinking on the need for reform of the apartheid system is in a state of flux. Hence, the memorandum's projec- tions are limited to a relatively short period of time: the next two years. Follow-on assessments by the Intelligence Community will probably be required within this time frame. The memorandum was prepared under the auspices of the Na- tional Intelligence Officer for Africa. The Bureau of Intelligence and Research of the Department of State, the Defense Intelligence Agency, and the Central Intelligence Agency participated in its drafting. It has been coordinated with Intelligence Community representatives at the working level. Research was completed on 28 November 1980. SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN SUMMARY AND KEY JUDGMENTS The United States has a longstanding interest in the responsiveness of White South Africans to Nonwhite aspirations for political, economic, and social equality. At stake are declared American principles as well as US objectives in preventing racial conflict in South Africa from jeop- ardizing US economic and strategic interests there and from creating openings for the Soviets throughout the region. The pressures for change in South Africa's racial policies are the product of a complex dynamic. The major external forces for reform have been increasingly hostile international opinion and the steady ad- vance of Black nationalism in southern Africa. However, the main ef- fect of foreign criticism and the threat of international sanctions has been to spur the South African regime to greater efforts toward military and economic self-sufficiency. Internal factors have been more telling in their impact: � Apartheid as a doctrine has been seriously undermined by its failure to achieve the physical separation of the races. This goal has become increasingly unrealizable in the face of a growing Black population and the influx of unemployed Blacks to the urban areas. � Blacks are increasing in economic importance as low White birth rates and decreasing immigration make the pool of Black labor the more necessary to maintain economic growth. The Soweto riots of 1976 accelerated the breakdown in the White and particularly Afrikaner consensus on apartheid. The government saw the need for a more coherent strategy to maintain White control. The subsequent relaxation of some of the restrictions of petty apartheid stimulated a debate over the necessity for far-reaching changes in racial policies. As the debate has continued it has become clear that there is virtu- ally no quarrel within the Afrikaner community over the long-term objective�continued White political control and protection of Afrikaner privilege and identity. But three main lines of argument have emerged regarding the strategy and tactics for maintaining this objective: Conservative Afrikaners, the verkramptes, oppose any sig- nificant tinkering with a system they believe has served Whites well. 1 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN � Moderate Afrikaners, the verligtes, would approve a broad lift- ing of restrictions in the economic and labor fields and a vague promise of eventual limited Nonwhite participation in the po- litical realm. � The more progressive among the moderate Afrikaners advocate reshaping the political structure into a confederal system with decisionmaking powers granted to Nonwhites, albeit in very re- stricted areas. The scope and pace of change over the next two to three years will in large part depend on the attitudes of the Afrikaner community at large. Although Afrikaners as a group appear more receptive to change now than at any time in the past, the conservative Afrikaner establish- ment remains powerful enough to hinder any push for reform under- taken by Prime Minister Botha's government. Botha has categorically rejected a one-man, one-vote formula in a unitary state. He and his supporters believe, however, that apartheid must be modernized in order to assure White survival and have moved in a variety of ways to signal the seriousness and urgency of their push for change. It is clear that Botha is not working from a blueprint and is moving in an ad hoc manner that gives him the flexibility to press or back off from given policies as circumstances require. Nonwhites have grown pessimistic about the prospects for mean- ingful change and have, as a result, rebuffed new government initiatives and rejected most of their leaders who have consulted with White authorities. Urban Blacks, as well as the younger generation of Asians and Coloreds who identify with them, have demonstrated their lack of respect for the government's timid reforms by consumer boycotts, labor unrest, and student demonstrations. The pace of reform over the next two to three years will not be sufficient to satisfy Nonwhite demands, particularly if reforms are un- dertaken without consultation. Racial tensions will rise in urban areas as Nonwhite expectations continue to outpace the ability of government to deliver reforms. Indeed, reforms will likely stimulate more strident Nonwhite demands for change. Prospects, then, are as follows: � An overall pattern of urban unrest, interspersed with sporadic and spontaneous violence, will mark the next few years. Vio- lence will remain at a lower level in rural areas, but the growing poverty of the government-established homelands may result in increasing rural unrest. Rising urban and rural unrest can prob- ably be contained but only at the cost of harsher repression. 2 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN � Black insurgent groups, primarily the African National Congress (ANC), which is backed by the Soviets, will continue to pull off spectacular terrorist operations. The ANC may also expand its activities in rural areas and will increase its efforts to infiltrate Nonwhite student and labor organizations. Government security forces, however, probably will be able to prevent ANC activities from becoming a serious threat to stability. � Faced with racial unrest and conservative resistance to his poli- cies, Botha will be tempted to move away from parliamentary institutions to concentrate power in his own hands. He will be aided by a new elite, dominated by the military but also includ- ing businessmen and technocrats, who see change as the only way to maintain a strong economy and national security. Whites would probably acquiesce, albeit reluctantly, in this shift of power if Botha found it necessary to deal forcefully with rising Nonwhite violence and White obstructionism. � Botha is not likely to find himself under pressure to this degree before the end of 1982, but he appears to be positioning himself to rule South Africa as a strongman at some point in the future. 3 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN DISCUSSION 1. The United States has a longstanding interest in the responsiveness of White South Africans to Non- white aspirations for political, economic, and social equality. At stake are declared American principles as well as US objectives in preventing racial instability in South Africa from jeopardizing US economic and strategic interests there and from creating openings for the Soviets throughout the region. US relations else- where in Africa are also involved. 2. This memorandum will address the question of whether Prime Minister P. W. Botha's administration and the ruling Afrikaner-dominated National Party are willing and able to push reforms far enough and fast enough to keep racial violence from escalating. The Colored riots in mid-1980 near Cape Town, mounting Black labor and student unrest throughout South Africa, and Botha's recent unwillingness to buck the right wing of his party have all given special point to this question.' 3. The memorandum will review Botha's reform policies as they have unfolded since he took office two years ago, discuss his style and strategy, analyze the reaction of Nonwhites and Whites to the program, and draw conclusions about the prospects for change over the next two to three years. Special emphasis will be given to the implications for internal stability. This paper focuses on the domestic South African political scene. It is in many respects a follow-on to IIM 79- 10025, December 1979, which discussed South Africa's overall strategy for survival in an increasingly hostile world. The memorandum's projections are based on assumptions that external pressures for reform will not ' This paper uses conventional terminology in referring to South Africa's racial groups. Specifically, it uses the term -Blacks" when referring to South Africans of tribal lineage and the term -Non- whites- as a collective label for Blacks, Asians (mostly Indians), and Coloreds (persons of mixed race). Usage of these terms among observers of South Africa is changing. The term -Africans" is being applied increasingly to South Africans of tribal lineage, and the term "Blacks" is used as a collective label for all the Nonwhite ethnic groups�including Coloreds and Asians. Such broad usage of the term -Blacks," however, could be confusing to an American au- dience. Similarly, although the label "Nonwhite" is being increas- ingly avoided because of its possible pejorative connotations, it is arguably the least confusing term to use when referring collectively to Blacks, Asians, and Coloreds. increase dramatically over current levels and that Pre- toria will continue to believe in the efficacy of the economic, military, and foreign policy aspects of this overall strategy. The Legacy of Apartheid 4. The National Party rose to power in South Africa in 1948 on a pledge to extend patterns of White supremacy and racial segregation�both statutory and customary�that had developed over the previous two centuries. The party, in fact, coined the word "apart- heid," meaning "apartness" or "separation," to encap- sulate its pledge and to serve as its campaign slogan. The appeal of that pledge and slogan reflected the rise of Afrikaner identity and the depth even then of White concerns over the impetus that post-World War II forces of industrialization, urbanization, and nationalism gave to pressure from other racial groups for wider political, economic, and social rights. 5. During the 1950s, successive National Party gov- ernments enacted laws that more strictly codified ra- cial separation in the social, economic, and residential spheres. Under Prime Minister Verwoerd, the party embraced as doctrine the concept of -grand apart- heid.- Verwoerd's theory centered on the notion that the tribal reservations that had already been set aside for exclusive use of the main African tribes could be- come nominally independent states where Blacks could fulfill their political aspirations. In essence, the theory proposed that Blacks provide labor for the White areas of South Africa but return to their re- serves or -homelands" upon completion of their con- tract. No plan was offered for even theoretical auton- omy for Coloreds or for Asians, who had no historically or geographically defined territorial bases. 6. Working from Verwoerd's blueprint, successive Nationalist governments by the early 1970s had de- vised the complex and interwoven policies of eco- nomic, political, and social discrimination and control known as -separate development." The main features of apartheid are by now well known: � As the result of the process of enforced territorial segregation, most Blacks have been made legal 5 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN residents of 10 rural and economically deprived tribal homelands. These homelands make up about 13 percent of South Africa's territory. � Blacks are permitted to exercise basic political rights only within the homelands in which they hold citizenship. The government operates sepa- rate and inferior health facilities and educational systems, for Nonwhites, and public transportation is generally segregated. Interracial marriages are prohibited, and mixed social activities are discouraged. -Petty apartheid- regulations nor- mally bar Nonwhites from restaurants, hotels, theaters, and other public facilities. � Within -White areas,- Coloreds and Asians must live in specially zoned residential areas; with a few exceptions, Blacks qualifying for residency outside the homelands must live in designated Black townships. � -Influx control- laws stipulate that Nonwhites can be in White areas only by permission; the burden of proof that they are authorized to be in the areas rests upon them. � Two separate labor markets exist: one for Whites made up largely of skilled and management posi- tions, in which there are personnel shortages; and one for Blacks consisting of unskilled and semiskilled jobs, in which there are massive personnel surpluses. Pay scales for Nonwhites tend to be lower than for Whites, even for com- parable work. The police and a large bureaucracy enforce the repres- sive laws, including sweeping powers of arrest and detention, which shore up the system. Under influx control alone, for example, Nonwhites are subject to more than 2,000 laws and regulations; the government acknowledges having arrested more than 5 million Blacks over the past decade for violating the pass laws. Forces for Change 7. Political Pressures. The pressures for racial re- form that South Africans are feeling today are the product of a complex dynamic. External pressures in the form of increasingly hostile international opinion and the steady advance of Black nationalism in south- ern Africa have helped bring about a reappraisal of racial policy, but they have not by themselves been sufficient to bring about significant change. In fact, one major effect of criticism from abroad and the threat or actual imposition of sanctions has been to spur Pretoria to embark on a program to make South Africa militarily and economically independent�and thus less susceptible to outside leverage.' 8. External pressures have been accompanied by in- ternal unrest. Indeed, as Blacks have become urban- ized and consequently less divided along tribal lines, they have also become more aware of the world be- yond South Africa's borders. The decolonization proc- ess in Africa in the late 1950s and early 1960s encour- aged many Nonwhites in South Africa to believe that historical trends improved the prospects for the even- tual destruction of the apartheid system. During this period the African National Congress (ANC) and the Pan-Africanist Congress (PAC) organized large-scale antiapartheid demonstrations which culminated in the Sharpeville massacre of 1960. Subsequently both or- ganizations were banned, and Black political activity in general was suppressed. A long period of quiescence ended with the Soweto riots of 1976, which were par- tially linked to the coming to power of Black majority governments in Angola and Mozambique. 9. Apartheid has also been undermined by its fail- ure to meet its own goals, particularly the physical separation of the races. An annual growth rate of al- most 3 percent in the Black population and the meager job opportunities in the homelands have resulted in increased migration of Blacks to urban areas�a rever- sal of the flow Verwoerd envisioned. Blacks out- number Whites in almost all urban centers, and the relative numerical position of Whites continues to de- cline. (See population estimates in figure 1.) 10. Economic Pressures. When the National Party came to power in 1948, agriculture and mining contributed more to the economy than did manufac- turing and commercial interests. In 1979, the situation had reversed: industry and commerce were respon- sible for more than half of the national product. This has created a demand for Black skilled labor that can- not be filled within the constraints of apartheid. Low White birth rates and a decline in White immigration have significantly slowed the expansion of the White labor pool. In 1975, 41,000 new White jobseekers en- tered the labor market; in 1979, there were only 26,000 new White workers. The increasingly acute shortage of skilled labor has resulted in the elimination of job reservations in all but two sectors of the econo- 'See IIM 79-10025 for a detailed discussion of South Africa's ef- forts to make itself more immune to foreign economic pressures and to enable it to act with greater independence in the political and military fields. 6 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN Figure 1 SOUTH AFRICA: Population Estimates by Percent, 1 July 1980 Total: 28,468,000 Black tribes 71.5 583402 1.81 Blacks: 20,351,000 South Sothos 6.9 Xhosas(Ciskei) 4.1 Shangaans 3.5 Swazis 2.4 Others 5.1 Afrikaans speakers 9.8 English speakers 6.5 Coloreds 9.4 Asians 2.8 The figure for the total population is derived from a projection by the US Department of Commerce Foreign Demographic Analysis Division. Figures for the individual ethnic groups were calculated from official South African percentages for each group. The figures for the Afrikaans-speaking and English-speaking communities were calculated from the generally used ratio of 3:2 for Afrikaans speakers to English speakers. Differing natural growth rates among South Africa's racial communities, accompanied by likely changes in emigration and immigration patterns, will produce a change in racial composition of the country's population in the decades ahead. The South African Department of Statistics projects an overall population of about 47,000,000 by the year 2000, of which 14 percent would be Whites, 73.4 percent Blacks, 9.9 percent Coloreds, and 2.7 percent Asians. The South African Blacks are currently about evenly divided between those living in the homelands and those in the White areas (not counting about 1,500,000 migrant workers who take temporary employment in the White areas) . Of those living in the White sector, 55 percent are in the towns and cities, 45 percent in rural areas. my and has led businessmen to work around many of the codified apartheid restrictions on Black labor. 11. The growing economic importance of Blacks� who now comprise 80 percent of the new entrants into the labor market and 64 percent of the labor force in the industrial heartland around Johannesburg�is beginning to give some skilled Black workers leverage. Since 1973, when traditionally docile Black labor shocked the White community by engaging in more than 200 strikes nationwide, urban Blacks have been making use of this leverage to demand better working conditions, higher pay, union recognition, and, in- creasingly, a general easing of apartheid restrictions. 12. Moreover, one of the major lessons the govern- ment drew from the riots in 1976 was that high levels of unemployment pose a serious danger to internal stability. Pretoria currently estimates that the econo- my needs to maintain an annual growth rate of 5.5 percent' just to hold unemployment at the current level. Thus, continued economic expansion, once deemed important largely because of the material benefits derived by the White community, has now become vital in helping to keep Nonwhite frustrations in check. 13. When the National Party first came to power, these economic problems would have been mainly the concern of English speakers, who then owned most industries. By 1975, Afrikaner private business owner- ship, excluding agriculture, had grown from less than 10 percent in 1946 to almost 30 percent. Furthermore, the National Party, to counter English domination of the economy, has created or expanded 22 public cor- porations that control, among other sectors, the iron, steel, and coal industries, electrical production, and the manufacture of armaments and synthetic fuels. Afrikaner commercial and industrial leaders, who rep- resent an increasingly significant segment of the Afrikaner elite, now comprehend that the continued adherence to separate development hampers economic growth. The Debate Over Reform 14. Despite the steady erosion of apartheid's foundations, the broad Afrikaner consensus against any significant modification of the system did not start to break down until after the Soweto riots of 1976. The upheaval in this large Black township outside Johan- nesburg contributed to the undercurrent of unease set in motion by the emergence of hostile Black regimes 7 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN in Angola and Mozambique with close ties to the USSR, the onset of the worst recession since the 1930s, and increased Western activism against apartheid. 15. Viewing itself threatened by a -total onslaught" of hostile external and internal forces, Prime Minister Vorster's government sought to rationalize and or- chestrate domestic and foreign policies in order to de- vise a more coherent strategy for maintaining White control. As part of this effort, the government allowed a relaxation of apartheid restrictions in such areas as sports, urban home leaseholds by Blacks, penalties for passbook violations, job discrimination, and segrega- tion of public facilities. These measures were a prag- matic response to the rising external and internal pres- sures and to the prospect of increasing isolation from the West. The main impact, however, was to stimulate a debate, conducted until then largely within intellec- tual circles, over the necessity of more far-reaching changes in racial policies. 16. As the debate has intensified and spread within Afrikaner elites during the past few years, it has be- come clear that the quarrel is not over long-term objectives; Afrikaners remain collectively committed to maintaining White political dominance and protect- ing their privileges and identity. Progressive and con- servative Afrikaners alike rule out any one-man, one- vote formula in a unitary state, believing that Whites would quickly lose control regardless of any guar- antees. Three main lines of argument have developed, however, over issues of strategy and tactics. � Conservative Afrikaners, popularly labeled ver- kramptes (literally, cramped ones) oppose any significant tinkering with apartheid. Ver- kramptes contend that even minor modifications in the principles of separate development will eventually undermine the entire system. Even among the verkramptes there are gradations. Some of them believe that certain aspects of petty apartheid can and should be eased to pla- cate international critics. Others would improve the livelihood and general well-being of Non- whites but strictly within the dogma of separate development. If the Verwoerdian model proves unattainable, there are verkramptes who believe that Afrikaners should retreat to a White home- land rather than experiment with modifications of the present system. � The more politically moderate members of the Afrikaner elite, called verligtes (enlightened ones), recognize that the Verwoerdian model is seriously flawed and that domestic and interna- tional pressures for change will continue to build. They are prepared to throw up various facades of reform and of consultation and collaboration with Nonwhite elites but refuse any compromise on the fundamental principle of maintaining the White political monopoly. Their program in- cludes not only a rollback of much of petty apartheid and a broad lifting of restrictions in the economic and labor fields, but also vague prom- ises of eventual political concessions in return for the cooperation and collaboration of Nonwhite leaders. Reforms, the mainstream verligte ar- gument goes, should be dispensed on a tactical basis to maximize their political impact interna- tionally and within the Nonwhite communities while minimizing the practical effect on White power and on National Party unity. � Progressives in the verligte camp�who can be termed the verligte vanguard and who are mainly journalists and academics�are prepared to experiment cautiously in the political realm. They would reshape the South African political structure by involving Coloreds and Asians in a limited form of decisionmaking and would in- clude urban and homeland Blacks in a broader political confederation with consensus decision- making powers over certain matters. Whites would maintain authority over the great bulk of national resources and a veto over any policy that might adversely affect White interests. 17. The verligtes seek to co-opt Coloreds, Asians, and limited numbers of urban Blacks into a new Non- white middle class that would act as a buffer against a Black revolution. Verligte arguments, or at least the mainstream strategies, have found sympathetic au- diences within important sectors of the Afrikaner community. Businessmen want freedom from govern- ment regulations that hamper industrial efficiency, including apartheid restrictions on the mobility, train- ing, and employment of Black labor. 18. The largely Afrikaner officer corps in the De- fense Force also has embraced verligte views. The Soweto riots, coupled with the disappearance of friendly White buffer states, have created the specter of what South African defense planners fear most�a combination of internal revolt and external attack. Having embarked on a program of force expansion that involves increasing recruitment of Nonwhites and progressive elimination of petty apartheid within the 8 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN services, the military has made plain its concern that civilians are lagging behind in making changes to dampen domestic and international discontent. 19. Verligte views have also found a sympathetic audience in the increasing numbers of urbanized and educated Afrikaners. This growing upper middle class has drifted away from traditional culture and values into an increasingly affluent and more relaxed lifestyle. These Afrikaners are willing�even anx- ious�to have the government devise more flexible and pragmatic approaches to race relations. Verligte views are also making inroads among some younger clergymen in the Dutch Reformed Church, hitherto a bastion of verkrampte doctrine, as well as on campuses of the traditionally conservative Afrikaner universities. 20. The verkrampte argument appeals to a power- ful quarter in the Afrikaner community: lower-level civil servants, including the police; blue-collar work- ers, primarily in the mining sector; and farmers. These groups, which feel most intensely the need for either job protection or the supply of cheap Black labor that apartheid has assured, once formed the dominant strand of the National Party, although their influence is declining. Led by Transvaal party chief Andries Treurnicht (see figure 2), the verkrampte faction in the party�estimated to command the loyalty of up to 40 of the 135 Nationalist members of Parliament�has been able to block some verligte initiatives by cap- italizing on Afrikaner traditions of consensus de- cisionmaking and the party's historic fear of a split. In addition, the Treurnicht faction could probably count on the support of as many as 40 other members of the party caucus on some issues. Reform Under Botha 21. When he took office two years ago, P. W. Botha (see figure 3) had been in the public eye for more than 12 years as Defense Minister and head of the National Party's Cape Province branch. Cape politicians have a relatively moderate tradition within the National Par- ty, and during the years Botha held the defense portfo- lio the military had begun to drop racial barriers in the defense forces. But Botha was generally regarded as a hardliner because of his role as architect of South Af- rica's intervention in Angola in 1975 and because of his clashes with government leaders over this and other issues, and most observers placed him on the ver- krampte side of the debate over racial reform. 22. His previous reputation notwithstanding, Botha has led the way in changing the style and tone of gov- 9 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN ernment dealings with the Nonwhite community, adopting the rhetoric of change, and becoming the first South African prime minister to visit a Black township�Soweto�and a homeland. He has con- sulted with some Blacks�homeland leaders and mod- erate urban spokesmen�and has introduced a series of reform proposals with considerable fanfare. 23. New Constitutional Structures. Efforts at constitutional reform began in 1976 under Prime Min- ister Vorster when Botha, then Minister of Defense, chaired a Cabinet committee that drew up a plan to create separate Colored and Asian parliaments at the national level that would have limited autonomy in local affairs. This plan was endorsed by the National Party but rejected by Coloreds and Indians on the grounds that it ignored the political aspirations of Blacks. 24. After moving up to the prime ministership in 1978, Botha scrapped this plan and set up a commis- sion under then Interior Minister Schlebusch to find alternative solutions. Botha's new plan for constitu- tional reform was revealed early in 1980 in an interim report by the Schlebusch commission and given legal life in a constitutional amendment passed by Par- liament last May. The principal institutional innova- tion was the President's Council, a deliberative body of 60 Whites, Coloreds, and Asians under the chair- manship of State Vice President Schlebusch, whose new post was created by the amendment. 25. The Council, whose members are appointed for five-year terms, was officially installed on 6 October 1980, with 44 Whites, 10 Coloreds, five Asians, and one Chinese South African agreeing to serve on it; most of the Nonwhite members are not recognized leaders of their communities. Botha appears intent on making the Council an important component of the government. To enhance their prestige, Council mem- bers will receive the same salaries as members of Par- liament and will be housed in new, impressive offices in Cape Town, the country's legislative capital. The Council has five subcommittees�constitutional, sci- entific, economic, planning, and community re- lations�in which specific problems between the races are to be discussed. 26. The Schlebusch proposal also envisioned a Black advisory council of urban representatives and home- land leaders, on which the President's Council could call at its discretion for advice and consultation. Botha dropped the concept altogether after major Black leaders objected to the secondary status it conferred on Blacks. Blacks still have no representation on the na- tional level. 10 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN 27. Homelands Policy. Under Botha, the govern- ment has continued to push the homelands (see figure 4) toward political -independence." Botha recently admitted that the homelands are not economically vi- able, thereby tacitly acknowledging that for all prac- tical purposes the classic homelands policy of apart- heid has failed. The homelands, however, are central to Botha's revamped -constellation of states" plan�a concept devised originally to strengthen and reinforce existing economic links and to create a system of alli- ances and informal arrangements for military cooperation between South Africa and its relatively dependent neighbors in southern and eastern Africa. Following Robert Mugabe's victory in Zimbabwe, Pre- toria scaled down the plan's geographical limits to the Republic and its homelands. 28. In 1979 Venda became the third nominally in- dependent homeland. Ciskei will probably soon be- come the fourth. The government has failed, however, to persuade the vast majority of Blacks that there are political and economic benefits to be derived from res- idence in the homelands. 29. Politically, one major sticking point has been the question of citizenship. As Transkei, Bophu- thatswana, and Venda have become independent, their residents along with tribally related urban Blacks have lost South African citizenship and attendant rights. This has aroused bitter opposition among Blacks, who contend that the government is trying to make them aliens within their own country. 30. The issues of land consolidation and economic aid have been equally contentious. The consolidation of the geographically disparate homelands�the non- independent homeland of KwaZulu alone is made up of at least 30 fragments of land�would require the acquisition of large amounts of White-owned prop- erty. Aside from commissioning new studies of the problem, the Botha administration is unwilling to ac- cept the considerable economic and political costs that a serious consolidation program would incur. 31. Botha's economic aid program for the home- lands has not differed significantly from Vorster's. Pretoria continues to provide operating expenses�and seconded White bureaucrats�for the homelands administrations, but development aid remains scanty. Botha's efforts to persuade the South African private sector to assume some of the burden for improving economic conditions in the impoverished homelands have been unproductive so far. 32. Limited Autonomy for Urban Black Commu- nities. Despite his unwillingness to countenance a di- rect consultative role for Blacks in the new constitu- tional machinery, Botha has continued Vorster's cautious program for extending limited autonomy to some Black townships. In October 1980 the govern- ment published legislation it intends to submit to Par- liament which would establish municipal authorities that would replace the 312 existing community coun- cils. These new local Black authorities would have le- gal status equivalent to that of local White govern- ments. The decisions of the Black municipalities would, however, be subject to the veto of the Depart- ment of Cooperation and Development. Unless the government wins the approval of key Black leaders, its new legislation will suffer the fate of past solutions proposed from above: it will be made meaningless and unworkable by the suspicions and passive resistance of the township residents. 33. Family Housing. An acute shortage of Non- white housing throughout South Africa has led the government to relax enforcement of the Group Areas Act for Coloreds and Asians. The Act requires segrega- tion of residential areas and is one of the most impor- tant pillars of apartheid. Estimates of the shortfall in housing are now around 4,300 units for Asians, 10,000 for Coloreds, and perhaps as many as 400,000 for Blacks. In the Black township of Soweto alone, there is a shortage of at least 32,000 units. 34. The 1980 budget, which reflected the dramatic increase in gold prices, provided for a 20-percent cap- ital increase for the national housing fund, but this does not begin to meet the pressing needs of Nonwhite communities. While admitting the need for the diver- sion of greater resources to housing, government of- ficials have expressed hope that much of the slack will be taken up by the private sector�for example, by employers underwriting the mortgages of their work- ers. Botha's administration has tried to ease Black frustrations by following through on Vorster's promise to extend 99-year leaseholds to those few Blacks who qualify for -permanent residence" in the townships. If legislation proposed for the 1981 parliamentary session passes, more Blacks would Qualify for leaseholds. In addition some inheritance rights for qualified depend- ents could be strengthened, making home ownership more attractive. 35. Education. In 1980, the government has in- creased spending on Black education and training pro- 11 SECRET Approved for Release: 2018/06/01 C05629424 Approved for Release: 2018/06/01 C05629424 SECRET NOFORN South Africa: Homelands *Windhoek NAMIBIA .Keetmanshoop ATLANTIC OCEAN Cape To 628804 12-80 ington .Bitterfontein Figure 4