Israel to End Defense Pacts With S. Africa, Cut Back Other Ties

The Israeli government announced Thursday that it will forgo new defense contracts with South Africa and take other measures to scale back its relations with the white-minority government in Pretoria.

The action was seen here as a preemptive one intended to appease the United States and prevent a new controversy that could put further pressure on relations already strained by the Iranian arms affair and the Jonathan Jay Pollard spy scandal.

While a senior Israeli official called the government’s decision a “point of no return” in Jerusalem’s complex and controversial ties with South Africa, it is not expected to have any immediate practical impact.

Time to Work Out Policy

It allows the leadership two additional months to work out specifics of the new policy--enough time to assess reaction to a U.S. State Department report, due April 1, outlining arms sales to Pretoria by other governments. Nations found to be selling military equipment to South Africa face a possible cutoff of U.S. military aid--which, in Israel’s case, amounts to $1.8 billion annually.

A senior Western diplomat who has been following the situation closely described the Israeli action as “pretty minimalist,” although U.S. State Department spokesman Charles Redman welcomed it as “a positive development.”

Foreign Minister Shimon Peres said the decision in principle to cut back ties with South Africa followed six months of internal discussions capped on Wednesday by a five-hour debate among the so-called “inner Cabinet” of 10 senior government ministers.

Announcement Postponed

The formal announcement was postponed in order to allow Israel’s ambassador to Pretoria to transmit the decision to the South African Foreign Ministry at a meeting Thursday morning, Peres said.

The Los Angeles Times reported on Feb. 12 that Peres, Prime Minister Yitzhak Shamir and Defense Minister Yitzhak Rabin had agreed to phase out existing agreements on arms sales and the transfer of military technology to South Africa. It was that basic decision that was confirmed by the senior ministers Wednesday and publicly announced Thursday.

Peres told American Jewish leaders here Thursday that while Israel cannot lead world policy toward South Africa, “we are not going to remain outside a world policy as it is formulated by free countries.”

In announcing the action later before the Knesset, Israel’s Parliament, he said Israel deplores any sort of discrimination, “whether it is called apartheid or any other name.”

Decides Upon 4 Actions

He said the inner Cabinet has decided to do four things: reiterate Israel’s condemnation of apartheid; continue a phased reduction of Israel’s economic, cultural and other civilian ties with South Africa; refuse “unequivocally” to sign new contracts “in the sphere of defense,” and commission a “select team” to examine the situation and recommend within two months specific steps to implement the new policy.

The decision means that existing military contracts, some of which were apparently signed in violation of a 1977 U.N. embargo on arms sales to South Africa, will be honored.

Peres refused Thursday to disclose the value of those contracts, although they have been estimated to total at least $500 million. Most are scheduled to expire within the next three or four years, although “very few” extend into the early 1990s, according to government sources.

Some of the ongoing ties reportedly stem from a memorandum on scientific and technological cooperation dating from a 1976 exchange of high-level visits between then-Defense Minister Peres and former South African Prime Minister John Vorster.

Nuclear Exchanges

The Israeli press has reported that the two countries exchange nuclear information and physicist study programs, and South Africa sells uranium to Israel. South Africa helps fund development of new Israeli weapons systems and in return receives production licenses and technology under other military cooperation programs.

Peres denounced as “baseless slanders” an accusation Thursday by Meir Vilner, a member of Parliament from the Communist Party, that Israel and South Africa are cooperating in the production of atomic weapons.

Israeli leaders are loathe to renege on existing military contracts because of both the economic effect and the possible adverse impact such a decision could have on South Africa’s estimated 115,000 Jews. They are also concerned that Pretoria might reverse its policy of allowing South African Jews to transfer money out of the country for investment here.

Livelihood for Thousands

Altogether, the military contracts and South African investments are said to provide the economic support for thousands of Israelis.

The members of the special committee to implement the new policy have not yet been chosen, according to government sources. One candidate is reportedly Yossi Beilin, a Peres intimate and director general of the Foreign Ministry, who has been a prime mover in the campaign to take stronger action against the South African regime.

Noting that the upcoming U.S. State Department report is expected to name Israel prominently among South Africa’s arms suppliers, a government source said Thursday that the implementation plan will no doubt depend on congressional and public reaction to the document.

Two-Way Trade

“The idea is that once we have a look at the report, we’ll be able to consider decisions on the specifics (of the new policy) based on the report,” this source said.

In addition to the countries’ military ties, two-way Israeli-South African trade amounted to nearly $240 million in 1985, the last year for which complete figures are available. That included about $65-million worth of Israeli exports to South Africa and $175-million worth of imports.

By far Israel’s most important civilian import from South Africa is coal, accounting for nearly 60% of 1985 purchases. Peres said last weekend that Israel could easily shift its coal purchases to Australia or China. Poland, with which Israel is in the process of renewing relations after a 20-year break, is also a major coal exporter.

The special committee will presumably recommend rules for cultural, scientific, sports and other exchanges with the Pretoria regime as well.

Ill-Timed Trip

Israeli officials have said they are already cutting back on such contacts, although the Hebrew-language newspaper Hadashot reported Wednesday that the chairman of the country’s Broadcast Authority and his legal adviser left on an official visit to South Africa this week. The newspaper quoted Foreign Ministry sources as saying they are “outraged” at what they described as the ill-timed trip.

In the Knesset on Thursday, leftist legislators branded the government’s action “too little, too late,” while critics on the right were disturbed by what they saw as Israel’s “capitulation” to the United States on the issue.

Responding to the criticism, Peres said that Israel has to export in order to keep its own vital arms industry viable. “Your fine words will not protect us against embargoes or maintain our security,” he told the leftists.

And replying to a right-wing critic, he said: “All your talk about keeping a straight back and standing up to the Americans is nonsense. As long as the Soviet Union continues to pour arms into the Arab world, Israel will need another power to supply her with arms. Of course we must take America’s views into account, because no other nation shows more consideration for Israel.”