27 July 1988

39th plenary meeting

Activities of transnational corporations in South Africa and Namibia

The Economic and Social Council,

Recalling its resolutions concerning the activities of transnational corporations in South Africa and Namibia, in particular resolution 1981/86 of 2 November 1981, in which it requested the Secretary-General to make arrangements for the organization of public hearings on the activities of transnational corporations in South Africa and Namibia,

Noting with grave concern the continued deterioration of the situation in South Africa and Namibia, as evidenced by the escalating brutality, indiscrimate killing and mass arrest of innocent persons, including women and children, by the authorities of the racist minority regime,

Noting with concern that the deadline of 1 January 1987, proposed by the Panel of Eminent Persons established to conduct the public hearings on the activities of transnational corporations in South Africa and Namibia, for effecting significant changes in the operations of transnational corporations in South Africa and Namibia has not been met,

1. Reiterates its condemnation of the racist minority regime in South Africa and its brutal perpetuation of the inhuman system of apartheid and the illegal occuption of Namibia;

2. Condemns those transnational corporations that, through covert and overt activities in South Africa and Namibia, continue their systematic and clandestine circumventing of laws and measures imposed by the Governments of their home countries, as well as the disinvestment programmes of some transnational corporations that are aimed at retaining profitable economic links with South Africa;

3. Welcomes as an initial step the measures taken by some Governments of home countries of transnational corporations to impose restrictions on further investments in South Africa and on bank loans to the racist oppressive regime, and, in the light of new investments and contractual arrangements by which South Africa continues to have access to investment, technologies and resources, calls upon home countries to ensure full and effective compliance with the measures adopted, such as those prescribing disinvestment;

4. Appeals to Governments of home countries of transnational corporations to impose similar and additional measures on transnational corporations operating in Namibia;

5. Reiterates that continued collaboration, especially of transnational corporations, with the racist regime in South Africa, through trade and various traditional and innovative investments and contractual arrangements, helps perpetuate and strengthen the apartheid regime in its war of aggression and acts of destabilization against front-line States and other neighbourng countries and in its illegal occupation of Namibia, and urges all countries to desist from such collaboration;

6. Urges the Governments of home countries of transnational corporations that have not yet done so to adopt measures aimed at ensuring that transnational corporations cease to contribute to maintaining the policies of apartheid of South Africa and its illegal occupation of Namibia;

7. Urges all transnational corporations, in accordance with the provisions of General Assembly resolutions, to stop immediately all forms of collaboration with the racist regime in South Africa as a measure to force the racist regime to abandon apartheid, which constitutes a crime against humanity and an affront to human dignity, and to terminate its illegal occupation of Namibia;

8. Reaffirms that the elimination of apartheid and the termination of the illegal occupation of Namibia by the racist regime will require an effective, concerted programme of international action, endorsed and supervised in a systematic manner by the United Nations, Governments and other relevant bodies and supported by monitoring and follow-up activities;

9. Requests the Secretary-General to take all necessary steps to establish by 1989 a panel of eminent persons to conduct public hearings in Europe on the activities of transnational corporations in South Africa and Namibia, with a view to further mobilizing public opinion to induce home Governments and transnational corporations to cease any kind of collaboration with the South African regime;

10. Further requests the Secretary-General:

(a) To continue the useful work carried out by the Secretariat in collecting and disseminating information on the activities of transnational corporations in South Africa and Namibia;

(b) To take all necessary measures to publicize the list contained in the report of the Secretary-General on the follow-up to the recommendations of the Panel of Eminent Persons established to conduct the public hearings on the activities of transnational corporations in South Africa and Namibia, with a view to mobilizing public opinion in home countries of transnational corporations still operating in South Africa and Namibia;

(c) To report annually to the Commission on Transnational Corporations, the Economic and Social Council, the General Assembly and the Security Council on the implementation of the present resolution, until the abolition of apartheid and the termination of South Africa's illegal occupation of Namibia have been achieved;

(d) To prepare an updated study on the activities of transnational corporations in South Africa and Namibia, dealing in particular with the impact of their disinvestment programmes and the replacement of investment by non-equity links, and on the responsibilities of home countries with respect to transnational corporations operating in South Africa and Namibia in violation of the relevant United Nations resolutions and decisions, bearing in mind the recommendations made by the Panel of Eminent Persons;

(e) To include in this updated study an examination of which countries have become the main home countries of transnational corporations operating in South Africa and Namibia;

(f) To take all necessary steps to ensure the immediate implementation of the recommendations of the Panel of Eminent Persons.