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KRUGERRAND CONNECTION A - KORA

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									                                         a     te   on Mrica

BUYING A PIECE OF APARTHEID:




THE
KRUGERRAND
CONNECTION A




                                "'...The black man had to
                                   be taught that he came
                               second and that he belongs
                                  to the inferior class that
                                               must obey. "

                                                Paul Kruger
Buying A Piece Of Apartheid:
                                                                                              THE KRUGERRAND CONNECTION
   South Africa's Krugerrand is the world's    coin makes it easy for individual investors                                                                                                          andthe injury rateon all mines 25.37
                                                                                                                                                                                                                                       was
best-selling gold coin. Nowhere does it sell   to gauge the value of their investment at      WHOPROFITS FROMSOUTH                           The South African                                      per 1000workers.1i     Black minershada
better than in the United States. The coin     any time. That makes the Krugerrand "the       AFRICA'S GOLD?                                 Government                                                                  per
                                                                                                                                                                                                    deathrateof1.33 1000compared               to
is named for Paul Kruger, an early             world's best way to own gold" according                         about50%of South
                                                                                               Goldsalesprovides                               TheSouthAfrican government   benefits                a 0.56 ratefor their whiteco-workers      in
Afrikaner leader who said that "theblack        to its promoters.                             Africa's foreign exchange.4-foreign ex         greatly fromgoldproduction andKruger                   1982.' Some     8,209 workers  have indied
man had to be taught that he came se                                                          change that buys the oil, computers,                                   and
                                                                                                                                             randsalesthrough taxes profit shares.                                            the
                                                                                                                                                                                                    South Africa's minesin lastten      + years,
cond and that he belongs to the inferior       KRUGERRANDS IN THE US                          airplanes and other material goods South       In 1983,$2,070 million, some14%of all                  andsome      230,000 injured.i
                                                                                                                                                                                                                          were
class that must obey." Todaybuying a              Krugerrands are South Africa's largest      Africa needs to survive. South Africa is the                 tax
                                                                                                                                             government revenues,     came from                        In 1982,whenblackminersat the gold
Krugerrand is a direct way of providing        single export item to the US, and the US is    world's principal gold producer, with 1983     gold,thusproviding the statewith "much                 fieldswonthe right to organize     their own
dollars to South Africa's racist apartheid     the largest Krugerrand market worldwide,       production at 21.8 million troy ounces or      needed  financial andeconomicstabili                   independent    union (National Union  of
regime.                                        accounting for between 30% and 50% of          49.1% of the world's total (excluding the      ty.... Theroleof goldhas neverbeen                     Mineworkers) afterbitter struggle, the
                                               all sales since 1975.i The Krugerrand, first   USSR).Gold exports totalled $9.15 billion      morevital" in the wordsof C.T.Fenton,                  newsmedia              the
                                                                                                                                                                                                                  heralded "democratic"
WHAT IS A KRUGERRAND?                          minted in 1967, wasintroduced into the         out of an $18.6 billion figure for all South   Chairman the Chamber Mines.8
                                                                                                                                                        of            of                                           in
                                                                                                                                                                                                    development South        Africa.Yetwhen
   "More than any other coin, the world        USin 1975 when it became legal for indi        African exports In 1983, So despite inten                                                             40,000 union miners              a
                                                                                                                                                                                                                            declared legal
buys its gold in the form of                   viduals to own gold here. It hasdone well      sive efforts at diversification, South          Not The Black Miners                                                        1984
                                                                                                                                                                                                    strike in September at the gold
Krugerrands."I Although they are legal         for its apartheid sponsors. The gold coins     Africa's white minority rulers remain              Ovea424,539 blackminers the gold dig               minesaround                    the
                                                                                                                                                                                                                    Johannesburg, first such           WHYPROTEST             NOW?
tender in South Africa, these coins are        accounted for almost a quarter of the value    heavily dependent on gold to generate           that makes    South   Africa rich,under     the       strike since1946,therepression im    was              Selling gold is vital for the health the     of
minted primarily for export to foreign in      of all US imports from South Africa in 1983    economic growth and the government                         of
                                                                                                                                              direction 48,389 whiteminers. 1982,       In          mediate. daysafterthe strike declara
                                                                                                                                                                                                                Two                                    SouthAfrican economy the survival of
                                                                                                                                                                                                                                                                                       and
vestors. The value of the coins isdirectly     and 1984. Krugerrand imports in 1983           revenues needed to maintain the repres                             of
                                                                                                                                              monthly wages blackminersat the gold                  tion, owners
                                                                                                                                                                                                          mine                 in
                                                                                                                                                                                                                         called riot police,           the apartheid   state. Bothrelyon goldfor
linked to the daily international price of     were valued at $450.2 million, and totalled    sive apparatus of apartheid.                    minesaveraged       $232,compared       to            resulting in the deathof seven
                                                                                                                                                                                                             Is
                                                                                                                                                                                                                                     blackgold         foreign  exchange.      Now, the goldprice
                                                                                                                                                                                                                                                                                       as
gold. Krugerrands are available in four        $484.7 million in the first ten months of        About 16% of gold produced (3.5                                             or
                                                                                                                                              $1,267paidto whites, lessthan a                       miners.                                            plunges, big dropin demand the
                                                                                                                                                                                                                                                                  any                               for
sizes (1. , A, , troyounces of fine            1984. Total US imports from South Africa       million troy ounces) is used for making         fifth,' White  wealthandblackpoverty                         the
                                                                                                                                                                                                       So, high priceof goldpaidin New                 Krugerrand wouldhurt evenmore,cutting
gold). The precise content of gold in each     during the same two periods were $2.03         Krugerrands. In 1983, 4,683,149 Kruger                      the
                                                                                                                                              havebeen pattern in SouthAfricaever                   Yorkandother international gold auction            backfurther on what the country cansell
                                               billion and $2.18 billion respectively.,       rands were sold worldwide (in four sizes)       sincethe discovery gold in the 1860s
                                                                                                                                                                       of                           centers             no         for
                                                                                                                                                                                                              produces benefits the black                                        it
                                                                                                                                                                                                                                                       andthus thegoods canpay to import.
                                                                                              generating $1.55 billion.7                                      the
                                                                                                                                              transformed country from a forgotten                  workers    whomineit.                              Goldhasfinanced         "stability" for South
                                                                                                                                              colonial                into
                                                                                                                                                        backwater a centerfor for                                                                      Africa-a stability characterized ex        by
                                                                                              The Mine Owners                                 eign investment economic
                                                                                                                                                                   and             develop          HOWTHE KRUGERRAND                   GOES                                    and
                                                                                                                                                                                                                                                       traordinary wealth privilege a             for
                                                                                                 The Chamber of Mines of South Africa,        ment.It wasthe goldmines'demand               for     TO MARKET                                          whiteminority andinjustice andpoverty
                        eel
                                                                                              the national association of mine owners,        cheap   blacklabor that laid thebasisfor                              the
                                                                                                                                                                                                      Intergold, international marketing               for the majority of South         Africans.    Stabili
                                                                                              directs the production of gold. The Cham        the racismandsocialandeconomic              in                                 of
                                                                                                                                                                                                    armof the Chamber Mines South       of             ty for the current SouthAfrican govern
                                                                                              ber sells its gold bullion to the government    equality later codified     underthelawsof                                                                              the
                                                                                                                                                                                                    Africa,is responsible worldKrugerrand ment means continuation of theapar
                                                                                                                                                                                                                              for
                                                                                              for export. Krugerrands, however, are           apartheid.  Africans    wereforcibly driven     off   sales through its morethan twelve          branch theidsystem,      defined criminal and
                                                                                                                                                                                                                                                                                    as
                                                                                              minted by the government and then                                            into
                                                                                                                                              their landsandforced the labor                        esaroundtheworld(the US           offices   are                by
                                                                                                                                                                                                                                                       abhorrent mostcountries of the world.
                                                                                              returned to the Chamber of Mines. The           market by taxes.Mostblackminerstoday                         in
                                                                                                                                                                                                    based NewYorkandLosAngeles).                 In    Stability for thecurrent regime           means    a
                                                                                              Chamber sells the coins worldwide                           to
                                                                                                                                              are forced migrate to huge          company           the US,   Intergold                                                   life
                                                                                                                                                                                                                         distributes Krugerrands highly unstable for the majority of
                                                                                              through its subsidiary, the International       compounds from their families.
                                                                                                                                                             far                         Black      to a smallnetwork of firms who, in turn,                              one
                                                                                                                                                                                                                                                       South Africans, defined the vio        by
                                                                                              Gold Corporation (Intergold). Earnings          minersliveunder"passlaws" that direct                         the
                                                                                                                                                                                                    supply coin to a vastarrayof banks,                       of
                                                                                                                                                                                                                                                       lence poverty,        illness,   illiteracy, repres
                                                                                              from the coin sales go directly back to the                      the
                                                                                                                                              andregulate flow of their labor,pre                                firms
                                                                                                                                                                                                    brokerage and retailcoin and               jewelry sionanddiscrimination.
                                                                                              Chamber and so to the mine owners.              venting themfromseeking           workfreely.         dealers                The
                                                                                                                                                                                                             nationwide. company              also
                                                                                                                                                 Blackminersareprevented lawfrom  by                operates "Krugerrand Information Ser
                                                                                                                                                                                                               a                                       TAKING      ACTION
                                                                                                                                              occupying    highly skilledandhighly paid             vice" with a toll-free   number     whichwill        Therevenues      from Krugerrand sales           In
                                                                                                                                             jobs suchas blasting. Evencompensation                 supply  listings of "your nearest      Kruger      the US  directly support the apartheid
                                                                                                                                              for occupational     disability is determined    by   randdealer"anywhere the US.  in                             of
                                                                                                                                                                                                                                                       regime SouthAfrica.Blocking sale            the
                                                                                                                                              race.A whiteminerwhocontracts tuber                     US                of                 is
                                                                                                                                                                                                          promotion Krugerrands handled of Krugerrands                   couldmaketheUSthe
                                                                                                                                                                         is
                                                                                                                                              culosis,for example, eligible for a lump              by the New     Yorkfirm of Doyle     Dane    Bern  poorest           for
                                                                                                                                                                                                                                                                 market the coinin the world.
                                                                                                                                                                of
                                                                                                                                              sum payment $6,858. A blackminer                      bach  through a multi-million dollar ad            It is unlikely that South       Africa wouldeasi
                                                                                                                                               with the same     disease            only
                                                                                                                                                                           receives $823.           campaign.    Advertisements the coinap
                                                                                                                                                                                                                                    for                lyfind  alternative markets its gold for
                                                                                                                                                                       paid
                                                                                                                                              Totalcompensation to whiteminers                      pearin majornewspapers,         national   jour                                  a
                                                                                                                                                                                                                                                       either as bullion or as coin. European
                                                                                                                                                            that
                                                                                                                                               wasdouble paidto blackseven                          nals,even"filmads"on airliners. Rubins             countries suchasHolland already     are            in
                                                                                                                                               though   blacksoutnumber whites10 to 1                                &
                                                                                                                                                                                                    tein,Wolfson Co.of NYare Intergold's                       in
                                                                                                                                                                                                                                                       volved lively boycott campaigns.
                                                                                                                                               at themines.10                                       publicrelations             in
                                                                                                                                                                                                                       agents theUS.                                 in
                                                                                                                                                                                                                                                          In the US recent          years,local     cam
                                                                                                                                                 Safetyandhealth       conditions at the              Although mostgoldcoinssoldcurrently                      to
                                                                                                                                                                                                                                                       paigns protest Krugerrand saleshave
                                                                                                                                                      in
                                                                                                                                               mines SouthAfricaareamong               the          areKrugerrands,      thereare alternatives.        scored  successes.                     of
                                                                                                                                                                                                                                                                              Coalitions church
                                                                                                                                               worstin theworld.In 1982,onlyoneper                  Coins  suchas the Canadian        Maple   Leaf,    groups,   community organizers,           political
                                                                                                                                                                        for
                                                                                                                                               sonwasresponsible theoccupational                    anda Mexican      coin, areavailable     from      activists, human     rights advocates stu    and
                                                                                                                                                      of
                                                                                                                                               safety some700,000 working on the                    other gold-producing      countries other than dent groups,among              others,havewonim
                                                                                                                                               mines.l In 1983,831 minerswerekilled,                apartheid   SouthAfrica.                           portant victories.
                                                                                                   Footnotes

  Among recent developments:                       9 In 1983, the U.S. House of Represen           1. Promotional pamphlet, International
                                                                                                   Gold Corporation, 1980.
* In ongoing Free South Africa Movement            tatives passed a bill calling for a ban on      2. Business Week, January 17, 1983.
demonstrations, groups in many cities are          sales of Krugerrands. The bill died for lack    3. Trade Information Service, US Bureau
targeting Deak-Perera, and other Kruger            of Senate support, but has been intro           of the Census, phone interview,
rand distributors. After some weeks of             duced again, in 1985.                           December 6, 1984.
picketing, outlets in Pittsburgh and Min                                                           4. 1983 figures, The Citizen,
                                                   BUILDING THE CAMPAIGN                           April 3, 1984.
neapolis agreed to discontinue sales.                                                              5, Bureau of Mines, US Deparment of the
* In February 1985, New York City passed           e Lobby your Congressional Represen             Interior, phone interview, December 7,
an ordinance banning the deposit of city           tatives to support legislation to ban the       1984.
funds in banks which promote the Kruger            sale of Krugerrands pending in Congress.        6. Ibid.
rand.                                              Get your city to refuse to deposit funds in     7. Hansard
                                                                                                   8. From excerpts of address by C.T. Fen
9 Shearson/American Express halted                 banks that sell Krugerrands.                    ton, 94th Annual General Meeting of the
Krugerrand promotions in 1983.                     e Investigate Krugerrand outlets; they in       Chamber of Mines of South Africa on June
* Dean Witter Reynolds dropped the coin            clude banks, jewelry stores and coin deal       26, 1984. Reprinted in FinancialMail,
under the strict anti-discrimination policies      ers. Call Intergold's "Kruggerrand Informa      June 29, 1984.
of its new parent company, Sears                                                                   9. Survey of Race Relations 1983. Johan
                                                   tion Service"-(800) 356-4653-to find            nesburg: South African Institute of Race
Roebuck.                                           your nearest Krugerrand dealer. Check           Relations, 1984, pp. 152-154.
* Anti-Krugerrand resolutions were                 publications for ads.                           10. Rand Daily Mail, May 20, 1983.
passed in Atlanta, Austin, Boston,                 * Build informed community support for          11 Aziza Seedat, Crippling A Nation.
Chicago, Denver, Portland, Detroit,                demonstrations through talks, letters to        London: International Defence and Aid
                                                                                                   Fund for Southern Africa, 1984.
Oakland and San Antonio.                           your newspapers and local radio stations.       12. Data collected from: C.T. Fenton's
* The First National Bank of Chicago               Set up a picket line and distribute leaflets    address op. cit.; Star, May 7, 1984.
agreed to suspend sales.                           in public places and transportation             13. Survey of Race Relations, op. cit. pp.
* The flagship television stations of ABC,         facilities.                                     156-157.
CBS, and NBC in New York and several                                                               14. Star, September 13, 1983.
                                                                                                   15. Wall Street Journal, September 19,
other cities dropped Krugerrand                                                     David Brooks   1984 and The New York Times,
advertising.                                                                       February 1985   September 20, 1984.




                  The American Committee on Africa * 198 Broadway * New York NY 10038
                                                                                                                     (212) 962-1210
Individual copies are available for 30t each, 150 each in bulk orders of twenty or more.

								
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