Reagan Plans Limited Curbs on South Africa : Hopes to Head Off Stiffer Sanctions by Congress

President Reagan has decided to order a package of limited U.S. actions against South Africa this week in hopes of heading off Congress’ move toward tougher economic sanctions, White House officials said Saturday.

The proposed actions, which one aide described as “providing inducements for South Africa to move rapidly away from apartheid,” will be announced as theSenate debates a bill that includes such measures as banning most U.S. bank loans to the Pretoria government and outlawing the importation of South African gold coins.

Reagan has strongly resisted proposals to impose such sanctions against South Africa for its official policy of racial separation and its tough crackdown on dissent. But after Republican congressional leaders warned that the bill is certain to pass, the President agreed to take executive action first, aides said.

White House officials refused to divulge any details of the measures but indicated that they will include some features of the Senate bill.

“Our whole approach is basically to provide inducements for the government of South Africa to move rapidly away from apartheid,” said one official who refused to be quoted by name. “Whatever we do will be fully compatible with the President’s position against punitive sanctions.”

The White House has firmly opposed the ban on South African gold coins, for example, and is unlikely to impose that sanction on its own, one source said. And instead of halting a broad range of computer exports to the South African government and military, as the pending bill does, Reagan may simply prohibit sales to those agencies that directly administer the apartheid system.

Senate Republicans remain skeptical that any White House action can stop the Senate from approving the bill. A similar measure passed the GOP-led Senate by a vote of 80 to 12 in July, and several Republicans have said that South Africa’s repression of black protest during August increased the sentiment for sanctions.

“Maybe if the Administration had taken action in the first week of August, you’d have a different situation, but it’s too late now,” an aide to Senate Foreign Relations Committee Chairman Richard G. Lugar (R-Ind.) said.

Instead, Reagan appears to be planning to veto the bill after it passes and to be hoping that his milder moves to discipline South Africa will satisfy enough senators to forestall the two-thirds majority needed to override a veto.

Dole Suggested Strategy

Senate Majority Leader Bob Dole (R-Kan.) suggested such a strategy on Friday, when he said that he told White House Chief of Staff Donald T. Regan, “If the President would implement some of the proposals in the bill, perhaps a veto might be sustained.”

But the Lugar aide said that it will be difficult to persuade senators to switch their votes on the issue. “It will take a lot of political capital and some heartache,” he said.

Senate leaders have scheduled a vote Monday to break a conservative filibuster against the bill, and they expect to bring up the measure for a final vote later in the week. The bill has already passed the Democratic-led House.

Attempt to Nudge Pretoria

Reagan has argued against sanctions because he contends that they will hurt South African blacks. Instead, he has maintained a policy of “constructive engagement,” attempting to nudge Pretoria gently toward granting civil rights to the country’s black majority.

Asked on Friday if he was having second thoughts about constructive engagement because of the rising violence in South Africa, Reagan said, “I think it’s the only thing that’s shown any signs of improvement in that whole situation as yet.”

Senate Bill’s Provisions

The bill before the Senate this week would:

--Ban imports of South African gold coins, known as Krugerrands, unless the President and Congress determine that reforms are under way.

--Prohibit exports of U.S.-made computer equipment worth $100,000 or more to South Africa’s military and police, its arms industry and any agencies which administer apartheid.

--Halt new U.S. government loans to the Pretoria government, except for educational, housing or health facilities that are non-discriminatory.

--Ban the sale of U.S. nuclear technology unless South Africa signs the Nuclear Non-Proliferation Treaty.

--Require all U.S. firms employing more than 25 persons in South Africa to eliminate discrimination in employment and living conditions.

--Require the President to impose additional sanctions in 12 months unless he determines that South Africa has made “significant progress” toward eliminating apartheid.

--Provide for U.S. grants to South African human rights organizations, scholarships for South African blacks and trade loans for businesses owned by nonwhites.