Document Type

Article

Disciplines

International Law

Abstract

Foreign investment, direct and indirect, has been of great importance to the South African economy. After World War II, South Africa's cheap labor system attracted billions of dollars in direct foreign investment.' Although the apartheid system of cheap labor was largely responsible for the favorable investment climate,2 the United States government adopted a neutral policy on South African investment by United States companies.' Even the Carter Administration with its foreign policy emphasis on North/South and human rights issues reiterated this position stressing that "[t]he Government should therefore normally avoid measures which would give special incentives or disincentives to investment flows or activities, and should not normally intervene in the activities of individual companies regarding international investment."4 President Carter's Assistant Secretary of the Treasury C. Fred Bergsten emphasized that South African investments were not exempt from this policy of avoiding conflict with business interests.! However, despite the official position of neutrality, several government agencies assisted investors and exporters interested in South Africa. According to the former Assistant Secretary of State for African Affairs Nathaniel Davis the United States Mission served to brief American businessmen on economic, political and social affairs, major economic developments, reported on major South African projects with substantial export potential, and aided American businessmen in making contact with possible South African customers.

Accessibility Requirements

1

Download

Share

COinS