S. Africa Curbs Not Ruled Out, Shultz Hints

Secretary of State George P. Shultz said Monday that the Administration expects to complete the review of its South Africa policy within the next 20 days and, in a departure from his usual position, he did not rule out economic sanctions against the white-minority government.

Talking to reporters aboard his airplane on the way home from a 10-day tour of the Far East, Shultz said the Administration is rethinking its policies toward all of southern Africa, including the black-governed states on South Africa’s borders.

Sanctions Tied to Aid

He said any economic sanctions against Pretoria should be coupled with increased financial aid to nearby states that are economically dependent on South Africa.

“I expect that about two-thirds of the way through July, we will be ready to say what we have to say on the subject, possibly in congressional testimony,” Shultz said.

The Senate Foreign Relations Committee has scheduled a hearing on South Africa for July 22. Presumably, that is the target date for the Administration’s policy review.

A senior Administration official with President Reagan in Santa Barbara disclosed Saturday that the reassessment was under way.

Details Not Disclosed

Shultz refused to reveal the nature of the evolving policy. However, when asked if it would include economic sanctions, he declined to answer directly, although he left little doubt that he continues to consider sanctions undesirable. In the past, when faced with such a question, Shultz has ruled out sanctions on the grounds that they would hurt South African blacks and the neighboring black states even more than the Pretoria government.

Shultz said advocates of sanctions against South Africa should consider the economic impact on the rest of the region.

“Those who feel the way to bring about change in South Africa is to bring the South Africa economy down as much as they can should realize that in doing so they bring down the economy of the surrounding states that depend on South Africa, Botswana being a leading example,” Shultz said. “So, I think it is a fair question to people of that persuasion (to ask if they) plan to do anything to help Botswana.”

He continued: “I’d think if you are as concerned about the problem as those who want to wreck South Africa think they are, you would want to address yourself to the problem of southern Africa generally.

“Certainly in our own assessment of what is to take place, we’ll want to look at the southern Africa picture, not just the South Africa picture.”

Policy of Steady Pressure

Talking to reporters on the outbound leg of the trip 10 days ago, Shultz said the Administration was following a policy of steady pressure against South Africa to dismantle apartheid, that country’s system of racial discrimination.

He said House-passed legislation requiring total withdrawal of all U.S. contacts with Pretoria, including business investments, would torpedo this policy and leave Washington without influence. Shultz reiterated his opposition to the House bill on Monday. The legislation is awaiting action in the Senate.

Asked why the Administration launched its current policy review, Shultz said: “The facts on the ground have changed, so we are in the process of looking at what’s happening and reviewing what it is possible for us to do. There is an increased level of violence. We see an interplay of efforts to move substantively away from apartheid, but in a kind of two-steps-forward, 1 3/4-steps-backward way.”

Shultz also predicted that the Administration will have more success in the future in obtaining congressional approval for financial aid to Nicaraguan rebels, known as contras , following passage of legislation providing $100 million in military and economic aid.

“There has come to be a broad consensus on policies in support for the four Central American democracies, and I think there is an increasing recognition that Nicaragua is a force opposed to those democracies,” he said. “There is a much greater readiness to support the opposition to the government in Nicaragua.”