24 May 1989

15th plenary meeting

Activities of transnational corporations in South Africa and Namibia

The Economic and Social Council,

Recalling its previous resolutions on the activities of transnational corporations in South Africa and Namibia, in particular resolution 1988/56 of 27 July 1988, in which it urged all transnational corporations to stop immediately all forms of collaboration with the racist minority regime in South Africa and called for specific actions by Member States and transnational corporations to end such collaboration,

Noting with grave concern the brutal perpetuation of the inhuman system of apartheid in South Africa and the continued denial of the civil and political rights of the majority of the population in that country,

Bearing in mind the fact that continued investments, trade, technological co-operation and other forms of covert or overt activity by transnational corporations inside and outside South Africa provide sustenance to apartheid,

Noting the current efforts to implement Security Council resolution 435 (1978) and attain the independence of Namibia,

Having examined the reports of the Secretary-General on the activities of transnational corporations in South Africa and Namibia and on the responsibilities of home countries with respect to the transnational corporations operating in South Africa and Namibia in violation of the relevant resolutions and decisions of the United Nations,

1. Reiterates its abhorrence of apartheid, which is a crime against humanity, and condemns the South African regime for its perpetuation of apartheid, for its continued oppression of the majority of the people of South Africa and for its acts of military and economic destabilization of the neighbouring independent States;

2. Condemns those transnational corporations that continue to collaborate with the racist minority regime in South Africa in defiance of United Nations resolutions and international public opinion and, in many cases, in violation of measures adopted by their home countries;

3. Welcomes as an initial step the measures taken by some Governments to impose restrictions on investments, bank loans and other economic activities in South Africa, as well as the divestment by some transnational corporations of their equity investments in South Africa;

4. Deeply regrets that the measures taken so far fall short of the comprehensive and mandatory sanctions against the racist regime in South Africa as called for in relevant resolutions of the General Assembly;

5. Calls upon the Governments of home countries of transnational corporations to fully implement the provisions of Economic and Social Council resolution 1988/56, and to consider adopting further measures to prohibit all forms of collaboration by transnational corporations with the racist minority regime in South Africa, including not only direct investments, but also services, non-equity forms of business arrangements, technology licensing, distribution and franchising agreements and other such activities;

6. Urges all transnational corporations to stop immediately any operations in South Africa and all forms of trade and economic links with the racist minority regime;

7. Calls upon all multilateral financial and development institutions to immediately cease any kind of support or other forms of collaboration with the racist regime in South Africa;

8. Requests the Secretary-General to expedite the implementation of paragraph 9 of Council resolution 1988/56, and to report on the results thereof to the Commission on Transnational Corporations at its sixteenth session;

9. Further requests the Secretary-General:

(a) To continue the useful work of collecting and disseminating information on the activities of transnational corporations in South Africa and in Namibia until the attainment of its independence, including the compiling of a list of transnational corporations still conducting operations there;

(b) To prepare studies on the level and forms of operations by transnational corporations in South Africa and in Namibia until the attainment of its independence, including their non-equity business arrangements and their involvement in particular sectors of the South African and Namibian economies, and an updated study on the responsibilities of home countries with respect to the transnational corporations operating in South Africa and Namibia in violation of the relevant resolutions and decisions of the United Nations;

(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.