Australia Imposes Sanctions on S. Africa for Stance on Reforms

The government Monday announced limited economic sanctions against South Africa, accusing the white minority government of refusing to move toward reforms of its racial policies.

The sanctions, announced by Foreign Affairs Minister Bill Hayden, will block all security-related exports to South Africa. All Australian banks and other financiers are asked to refrain from making new loans to South African borrowers.

Australia will maintain its embassy in Pretoria but will close the Australian Trade Commission in Johannesburg at the end of September, he said.

Hayden said the government will prohibit exports to South Africa of petroleum and petroleum products, computer hardware equipment and any other products known to be of use to South African security forces.

The moves followed a major policy address Thursday in which South African President Pieter W. Botha renewed his commitment to apartheid, the nation’s system of strict racial segregation.

The Cabinet finalized the sanctions a week ago but delayed announcing them or putting them into action in the hope that Botha might make some concessions to blacks in his speech.

“The South African president’s statement was unlikely to bring about significant early reforms,” said Hayden, who added that “effective action in the form of mandatory and comprehensive economic sanctions imposed by the U.N. Security Council are unlikely to be achieved in the near future.”

Hayden said Australia will “develop a strategy to seek positive action in the U.N. context” for effective sanctions against South Africa for presentation by Prime Minister Bob Hawke at an upcoming meeting in Nassau, Bahamas, of the heads of government of the Commonwealth nations.

‘Ready to Work With U.N.’

“Australia is conscious of the inadequacy of unilateral sanctions but reaffirms its preparedness to work at the U.N. for the imposition of effective, mandatory, economic sanctions against South Africa,” Hayden said.

South African-Australian trade was worth about $240 million in the year ending June 30. About 70 Australian companies have interests in South Africa, according to official figures.

France has also announced sanctions against Pretoria, ordering suspension of all new French investments in South Africa and declaring it will respect any U.N. sanctions against it.