27 July 1990

37th Plenary Meeting

1990/70. Activities of transnational corporations in South Africa

The Economic and Social Council,

Recalling its previous resolutions on the activities of transnational corporations in South Africa, 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,

Welcoming the Declaration on Apartheid and its Destructive Consequences in Southern Africa, adopted by the General Assembly at its sixteenth special session, which contains guidelines on how to end apartheid in a peaceful manner,

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 sustain apartheid,

Noting with deep regret the unfriendly decision of the Government of the United Kingdom of Great Britain and Northern Ireland to lift unilaterally the ban of the Commission of the European Communities on new investments in South Africa, contrary to the political consensus in the Declaration on Apartheid and its Destructive Consequences in Southern Africa that existing measures aimed at encouraging the South African regime to eradicate apartheid should not be relaxed until there was clear evidence of profound and irreversible change,

Also noting with deep regret the unprincipled decision of the Government of Hungary, a founding member of the Special Committee against Apartheid, to initiate commercial and economic contacts with the apartheid regime of South Africa,

Recalling that some transnational banks and other international financial institutions have rescheduled South African loans in contemptuous disregard for the overwhelming interest of the international community in dismantling apartheid peacefully and speedily,

Also recalling that some transnational companies that have supposedly departed from South Africa have actually maintained non-equity links, such as franchises, licences and royalty agreements, with former subsidiaries,

Having examined the report of the Secretary-General concerning the resonsibilities of home countries with respect to the transnational corporations operating in South Africa 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 and its direct and indirect acts of military and economic destabilization of the neighbouring independent States;

2. Welcomes the emerging political climate in South Africa, which has the potential to create an atmosphere conducive to negotiations aimed at the eradication of apartheid and at the creation of a non-racial, democratic and united South Africa;

3. Urges the Government of South Africa to work speedily to create the conditions necessary for the establishment of genuine democracy in South Africa, based on the guidelines provided in the Declaration on Apartheid and its Destructive Consequences in Southern Africa;

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

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

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

7. Calls upon the Governments of the home countries of transnational corporations to implement fully 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;

8. Condemns the decision of the Government of the United Kingdom of Great Britain and Northern Ireland to lift unilaterally the ban of the Commission of the European Communities on new investments in South Africa, which serves to embolden the apartheid regime to entrench apartheid at this critical moment in the struggle for democratic change in South Africa;

9. Calls upon the Government of the United Kingdom of Great Britain and Northern Ireland to rescind its decision without delay;

10. Condemns the reprehensible decision of the Government of Hungary to initiate commercial, economic and political links with the apartheid regime, a move completely inconsistent with the principled stand that Government has been known to take in such matters;

11. Calls upon the Government of Hungary to return to its traditional position of opposing racism and to abandon any links with the apartheid regime that would serve to sustain that regime;

12. 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;

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

14. Takes note with appreciation of the report and recommendations of the Panel of Eminent Persons established to conduct the second public hearings on the activities of transnational corporations in South Africa;

15. 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, including the list of transnational corporations still conducting operations there;

(b) To prepare studies on the level and form of operation by transnational corporations in South Africa, including their non-equity business arrangements and their involvement in particular sectors of the South African economy, and an updated study on the responsibilities of home countries with respect to the transnational corporations operating in South Africa in violation of 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.