A Pahad: International Relations, Peace and Security Cluster media
briefing

23 November 2006

Peace, security, stability and post-conflict reconstruction

As you are aware, the IRPS is continuously seized with the issue of peace
and security.

This year we have had regular briefings on issues of peace and security in
Africa and internationally. In this regard, we briefed the media extensively
on, inter alia:
* the Democratic Republic of Congo (DRC)
* Darfur
* Burundi
* Côte d'Ivoire
* the Middle East.

Today I will only mention new developments since the briefing on Tuesday, 21
November 2006.

Africa
DRC

The second round of presidential elections was held in the DRC, on 29
October 2006, with an electoral run-off between Transitional President, Joseph
Kabila, and Transitional Vice-President, Jean-Pierre Bemba. Sixty five percent
of the DRC's 25,4 million registered voters participated in the elections. The
provisional elections results gave 58,05 percent of the votes to Kabila,
against 41,95 percent for Bemba. Bemba won a majority of votes in six of the
DRC's eleven provinces. The 108-member South African Observer Mission to the
DRC declared the elections democratic and credible. Head of the Observer
Mission, Deputy Minister of Defence, Mluleki George, stated that voting took
place in a peaceful environment and that the counting was transparent. The
Observer Mission has called on all Congolese to accept the outcome of
elections.

On 16 November, Bemba filed a formal challenge to the Supreme Court against
the provisional results, alleging "systematic cheating", falsified results,
blocking of party representatives at polling stations, and stuffing of ballot
boxes. The Supreme Court had seven days in which to consider the challenge.
Violence subsequently erupted in Kinshasa, capital of the DRC, on 21 November,
when the Supreme Court began studying Bemba's legal challenge. Judge Kalonda
Kele was presiding over a public session that was studying the challenge,
clashes between the police and 200 Bemba supporters, who were conducting a
protest outside the court. Fire broke out at the Supreme Court. Local fire
brigades supported by the United Nations Mission in the DRC (MONUC), responded
to the situation. Judges and civilian staff were evacuated from the court.
MONUC peacekeepers and the European Union Peacekeeping Force (EUFOR) are
monitoring the situation. Troops from the Congolese National Army have been
brought into the capital.

This was the first serious incident of violence since the Independent
Electoral Commission (IEC) announced results on 15 November 2006. Kabila has
urged the Congolese to remain calm. He has ordered Bemba's coalition out of
Kinshasa. There is concern that Bemba does not have full control over all
elements of his Metropolitan Local Council (MLC) officers. The vast majority of
Kinshasa's population support Bemba; he received more that two-thirds of the
vote in the capital. South Africa has urged Bemba to accept the results
verified by the Supreme Court. An outcome to the challenge is expected from the
Supreme Court by 27 November 2006. It is likely, however, that this incident of
violence will delay the Supreme Court's announcement.

Sudan
On 28 November 2006, President Mbeki will hold discussions with Vice President
of the Sudan and President of Southern Sudan, Salva Kiir Mayardit, in his
capacity as the President of the GOSS for political and economic discussions at
the Union Buildings, in Pretoria.

President Kiir will be accompanied by the Minister of Regional Co-operation,
Dr Barnaba Marial Benjamin, Minister of Labour, Public Service and Human
Resource Development, David Deng Athorbei, Minister of Information and
Broadcasting, Dr Samson Lukare Kwaje, Minister of Education, Dr Michael Milli
Hussein, Minister of Trade and Commerce, Anthony Lino Makana, Minister of
Telecommunications and Postal Services, Gier Chuang Aluong, Minister of
Industry and Mining, Albino Akol Akol and other senior officials.

The scheduled Summit of the African Union Peace and Security Council to
discuss troop deployment in Darfur was schedule to be held in Congo
Brazzaville, on 24 November 2006. This Summit will now be held in Abuja,
Nigeria on Wednesday, 29 November 2006, ahead of the Africa-South America
Summit.

Israel - Palestine

National Unity Government in Palestine

Prior to leaving for Saudi Arabia, President Abbas announced that the
dialogue between Fatah and Hamas on the formation of a National Unity
Government will be maintained, describing the dialogue to be successful.
Following his meeting with King Abdullah Ben Aziz and senior Saudi Arabian
officials, President Abbas said, "Today I will return to Gaza to continue the
dialogue with Hamas, the rest of the Palestinian factions, representatives of
civil society organisations, and the private sector on the formation of the
Palestinian government." Palestinian Foreign Minister Zahar confirmed in
Damascus that negotiations on the formation of a National Unity Government had
been postponed for several days. Zahar announced his rejection to the new
proposition, that being a technocratic government. Foreign Minister Zahar said
that negotiations between Fatah and Hamas have been postponed for several days
to look into the new propositions.

Following a meeting between former Prime Minister Ahmed Qurei and Khaled
Mashal on Sunday, 19 November 2006, the leader of Hamas, Mashal, said that an
agreement had been forged between Fatah and Hamas on the basics of the unity
government, and the focus was on "detailed points while following up on
guarantees". The basics centre on Hamas getting nine portfolios, along with the
position of Prime Minister, and Fatah getting four portfolios, independents
getting five portfolios and other parliamentary blocks getting four
portfolios.

Assassination of Lebanese Minister of Industry and Petroleum

Tensions in Lebanon continue to grow. The assassination of Lebanese Minister
for Industry, Pierre Gemayel, on Tuesday, 21 November 2006, unfolded amid
threats by Hezbollah of bringing their supporters to the street if their call
for a cabinet reshuffle is not met with approval.

The South African government reiterated its condemnation of all forms of
terrorism, and maintains that military solutions cannot lead to the resolution
of political problems.

The United Nations (UN) Security Council has meanwhile agreed to extend the
probe into the assassination of former Lebanese Prime Minister Rafik Hariri to
include the assassination of Mr Gemayel.

Iraq

We remain deeply concerned about the continuing escalation of violence in
Iraq, which is in a state of civil war. It is estimated that at least 100
people a day are being killed since the coalition forces went into Iraq.

The Iraq Study Group (aka The Baker report)

The Iraq Study Group (ISG) was launched on 15 March 2006 by the United
States (US) Congress. The group is co-chaired by James Baker, a former
Secretary of State for President Bush Sr, and Lee Hamilton, a former
chairperson of the House International Relations Committee and vice-chairperson
of the 9/11 Commission. The report is expected to be released in December 2006.
The remaining ISG principals are a group of bipartisan senior individuals who
have had distinguished careers in public service.

Under the direction of the ISG co-chairs, four broad topics will be
examined:
* the strategic environment in and around Iraq
* the security of Iraq and key challenges to enhancing security within the
country
* political developments within Iraq following the elections and formation of
the new government
* the economy and reconstruction.

The panel's many interviewees include US President George W Bush and British
Prime Minister Tony Blair. A spokesperson for Mr Blair highlighted that he (Mr
Blair) told the ISG in his 14 November interview that the most decisive steps
the US could take to end the violence in Iraq would be to work for an end to
the Israeli-Palestinian conflict, and to help the Iraqi government improve its
army, end sectarianism in its security forces and distribute revenue more
fairly across the country.

The ISG has also met with Iranian and Syrian officials, including Syrian
Ambassador to the US, Mr Imad Moustapha. The report is expected to recommend
that the US open talks with Iran and Syria over Iraq. On 15 November 2006, a
Senior Adviser to US Secretary of State Condoleeza Rice indicated that the US
was ready "in principle" for talks with Iran on Iran's role in Iraq.

The ISG is also expected to recommend the setting of a timetable in harmony
with the present Iraqi Government, backed by the coalition, for the withdrawal
of armed forces.

Reported this week that the Pentagon has dropped plans they dubbed "Go Big"
and "Go Home", and have instead recommended one called "Go Long". "Go Long"
which would see a decrease in the number of combat troops, but would increase
US efforts to train and advise Iraqi security officials. The Washington Post
reports that under the plan, an initial boost of 20 000 to 30 000 soldiers to
the 140 000 already on the ground would be followed by longer-term cuts, to as
few as 60 000 troops.

Iraqi relations with Iran and Syria

In October 2006, Iraqi President Jalal Talabani suggested that violence in
Iraq could end "within months" if Iran and Syria joined efforts to stabilise
the country.

Iraqi dialogue with Syria and Iran over security is showing some promise. In
late November 2006, President Talabani accepted an invitation from his Iranian
counterpart, President Mahmoud Ahmadinijad, to discuss ways of tackling
violence in Iraq. This visit is expected to happen over the last weekend of
November. There are reports that Syrian President Bashar Al-Assad may also
attend the talks.

The Foreign Ministers of Iraq, Mr Hoshyar Zebari, and Syria, Mr Walid
Moualem, met in Baghdad on 21 November 2006 and agreed to restore diplomatic
relations between the two countries for the first time since 1980. Mr Zebari
also indicated that the two countries had agreed to "co-operate on security
matters". Mr Moualem, however, also called for a timetable for the withdrawal
of foreign troops from Iraq, saying such withdrawal would reduce violence.

Nuclear Non-Proliferation

North Korea

UN Security Council Resolution 1718 (2006) on the imposition of sanctions on
the Democratic People's Republic of Korea (DPRK)

On 14 October 2006, the United Nations Security Council (UNSC), acting under
Article 41 of Chapter VII of the UN Charter, unanimously adopted resolution
1718 in response to a nuclear test conducted by the DPRK. The Security Council
also established a committee to monitor the sanctions and take action against
violations. The resolution imposes a wide range of sanctions against the DPRK,
including an asset freeze, a travel ban against some officials in the country.
It condemns the 9 October 2006 test by the DPRK and demands that the DPRK
should not conduct any further nuclear tests of launch of a ballistic missile.
The resolution also demands that the DPRK retract its announced withdrawal from
the Non-Proliferation of Nuclear Weapons (NPT) treaty and accepts safeguards
through the International Atomic Energy Agency (IAEA) and implement
transparency measures including access to individuals, documentation, equipment
and facilities. The resolution also mandates all Members of the UN to take
specific actions against the DPRK and report on these to the Security Council
within 30 days, following the adoption of this resolution.

All council members welcomed its adoption and hoped that the DPRK would
abide by its terms. Although it voted in favour of the resolution, China has
expressed reservations about the provisions in the resolution calling for
inspections of all goods going in and out of the DPRK. China has stated that
these provisions are provocative and could lead to an escalation of
tensions.

In summary, the sanctions immediately imposed on the DPRK include the
following:
* An embargo (supply, sale or transfer) on weapons or materials that are
contained in the UN Register on Conventional Arms. Furthermore, the embargo
includes all arms/ technology that are contained in the lists that would be
devised by the newly created Security Council Sanctions Committee. (Mission
Comment: These lists would apparently be devised utilising lists prepared by
the Nuclear Supplier's Group, the Missile Technology Control Regime (MTCR) and
the Australia Group. Russia, who is not a member of the Australia Group, has
objected to this list being used. The Council Committee has 14 days from the
adoption of resolution 1718 to finalise discussions on the list. France has
circulated, to the rest of the Council, the lists that would be utilised.
* An embargo on luxury goods.
* Targeted financial (asset freeze) and travel sanctions against individuals
who would be designated on a list prepared by the Sanctions Committee.
* Member states are called on to inspect all cargo to and from the DPRK.

The US warned the DPRK that there would be serious repercussions if there
were non-compliance with the resolution. Speaking to the press after the
meeting, the US Ambassador, John Bolton, stated that the unanimous adoption of
this resolution is a signal to Iran that the Council will not tolerate the
proliferation of weapons of mass destruction.

South Africa urges that the six-party talks should be restarted as soon as
possible.

Iran

Indications are that talks between Iran and the P5+Germany seem to not have
made much progress.

On 14 November 2006, the Director-General of the IAEA issued a further
report on the implementation of NPT safeguards in Iran. Similar to the last
report issued on 14 September 2006, no further substantial developments have
been reported, neither has any significant progress been made in finalising the
outstanding safeguards issues. The report confirms that Iran has been providing
the agency with access to declared nuclear material and facilities, and has
provided the required nuclear material accountancy reports in connection with
such material and facilities. However, Iran has not provided the agency with
full access to operating records at certain facilities.

The latest report again reiterates that while the agency is able to verify
the non-diversion of declared nuclear material in Iran, the agency will remain
unable to make further progress in its efforts to verify the absence of
undeclared nuclear material and activities in Iran unless Iran addresses the
long outstanding verification issues, including through the implementation of
the additional protocol, and provides the necessary transparency. According to
the agency, progress in this regard is a prerequisite for the agency to be able
to confirm the peaceful nature of Iran's nuclear programme. The IAEA board is
considering the report during its last regular session for 2006 on 23 and 24
November 2006.

UN Security Council consultations among the P5 are continuing on a new
resolution on Iran. However, there appears to be a number of serious
differences between the major players that continue to prevent agreement on the
elements of such a resolution, as well as the scope of possible measures to be
adopted by the Security Council.

We call on all parties to initiate confidence building measures; Iran to
resolve all outstanding issues with the IAEA; and that a solution is found
within the IAEA framework.

Economic diplomacy

This is one of the main cornerstones of the IRPS Cluster. This year, while
consolidating our relations with our traditional economic partners, we have
given special attention to South-South co-operation. Let me highlight some
important developments:

Africa-South America Summit

Inaugural Africa-South America Summit in Abuja, Nigeria on Thursday, 30
November 2006. President Mbeki and Deputy Minister Pahad will attend this
Summit which will be preceded by a Ministerial meeting.

The Summit will provide an excellent opportunity for discussion seeing that
both continents are at very crucial stages of their development.

Accordingly, the Summit provides a good opportunity for both continents to
reach a clear understanding of areas of common interest and prospects for
co-operation and enhanced collaboration to foster a stronger strategic
partnership on a South-South axis that would provide the context for
consolidating and invigorating relations.

The decision to convene this Summit was adopted at the African Union Summit
held in Khartoum, Sudan in January 2006 on the Africa-Diaspora process and
reiterated at the Summit in Banjul, the Gambia in July 2006.

The agenda for discussions is expected to be very wide reaching:
* peace and security
* democracy, governance, human rights and other political issues
* agriculture and agribusiness, water resources and the environment
* trade and investment between both continents including market access,
investment projects and financial resources
* the fight against poverty and underdevelopment
* infrastructure development
* energy and social materials
* social and cultural co-operation, tourism and sports
* health and education
* Science, technology and Information and Communications Technology (ICT)
* co-operation in multilateral fora.

Asia-Africa Summit (New Africa Asia Strategic Partnership) "we believe this
is a very important platform to consolidate South-South relations as Asia has
some of the world's fastest growing economies" India and China to name a
few.

Political solidarity

UN reform: Africa would support an Asian candidate for the position of
United Nationa Secretary-General (UNSG); the New Asian-African Strategic
Partnership (NAASP) committed itself to UN reform, the strengthening of
multilateralism and greater representivity. Law enforcement: training in
counter-terrorism was offered by the Jakarta Centre for Law Enforcement and the
African Centre for Studies and Research on Terrorism, Combating transnational
crime; Indonesia offered training to combat Illicit Drug Trafficking.

Co-operation in other international for a

It was recommended that an open-ended Bandung Group be created in New York,
Geneva, Vienna and Nairobi as a mechanism to promote the co-ordination of
positions on global issues:

* Palestine/ Middle East: NAASP called for the implementation of all UN
resolutions on Palestine; Indonesia' proposal for convening a conference on
Palestine capacity building, co-chaired by South Africa, was endorsed.
* Democracy: the sharing of experiences/ best practices in conducting
democratic elections were discussed and the terms of reference on convening an
inter-regional dialogue on human rights in 2007/08 was endorsed.

* Peace-building: Partnerships to promote support to the UN Peace-building
Commission were explored.

* African conflicts: Members countries committed themselves to providing
technical support, Overseas Development Assistance (ODA) and capacity building
to post-conflict African countries, as well as to strengthen early warning
mechanisms; peace initiatives on Somalia were supported; the implementation of
all UN resolutions on conflicts in Africa was called for.

Economic co-operation

* Agricultural co-operation: Training research and capacity building in
agriculture production and irrigation was offered by India and Tunisia (Sudan
to co-operate); Mali, Libya, Vietnam and Thailand to explore trilateral
co-operation with Northern countries; South Africa and Morocco to co-operate on
the promotion of market access in key markets; Asian-African product
diversification to be promoted.

* Small, medium and micro-enterprises (SMME) co-operation and promotion:
Member countries agreed to share experiences and best practices: India and
Cameroon to co-operate on credit funding for SMMEs.

* Trade and investment promotion: the NAASP Business Summit is to be held in
Egypt in 2007; the need to create an Asian African Business Forum/ Council to
promote trade facilitation, as well as to co-ordinate positions on global trade
issues, was identified - a task force, consisting of South Africa, Indonesia,
India, Pakistan, Mauritius, Egypt, Cameroon, Nigeria, DRC and Uganda would
participate in a feasibility study; co-operation between India and Tunisia on
e-commerce was agreed upon; the promotion of fish farming, fish production and
value adding was agreed upon between Madagascar, India, Tunisia, Uganda and
Eritrea.

* Funding: it was agreed to create the Asian African Trust Fund to promote
economic co-operation - a feasibility study would be undertaken by Morocco to
prepare recommendations for the Ministerial, India and Cameroon would
investigate credit funding for SMMEs.

* Eradication of poverty: NAASP committed itself to sustained support to the
World Solidarity Fund.

* Tourism promotion: Indonesia and Senegal, supported by a task team, would
facilitate the Asian African Visit Year; Libya, Kenya, Madagascar, Tunisia,
Nigeria and Egypt would create and African Asian Tourism Forum (Gabon to
investigate tourism potential).

* Energy co-operation: Member countries agreed that an expert meeting should
be held on energy co-operation and alternative sources of energy; Pakistan,
Cameroon, Nigeria, Eritrea and Gabon would champion the promotion of
alternative sources of energy.

Socio-Cultural Relations

Human Resource Development (HRD)

* Creation of Asian African Development University Network (AADUN): the
results of this study on a University co-operative network by Japan and Algeria
would be made available to NAASP members.
* Scholarships and academic exchange: South Africa suggested that the
University Mobility in the Indian Ocean Rim (UMIOR) initiative (IOR-ARC) be
linked to AADUN; Indonesia offered a Non-Degree Darmasiswa Scholarship
Programme to study the Indonesian language, arts, music and crafts, as well as
a Developing Countries Partnership Scholarship Programme (DCPS).

* Capacity building and training: India will continue to champion the
Pan-African e-network for tele-education and tele-medicine; Malaysia provides
continued assistance to developing countries from the two regions via its
Technical Co-operation Programme in sectors such as oil, gas and fisheries;
Singapore continuously provide HRD to developing countries via its Co-operation
Programme; Morocco proposed an African Asian Network of Diplomatic Academies;
Indonesia invited member countries to participate in its training course for
Mid-Career and Senior Diplomats; Nigeria offered training for cultural and
tourism workers; Malaysia offered training courses for diplomats under the
Malaysian Technical Co-operation Programme (MTCP).

* Information and Communication Technology (ICT) co-operation for
development: Indonesia proposed training in Satellite Communication System
Engineering and training in Satellite Communications of Satellite for
non-technical manager; an International Training course on Television Education
Programme Production Using Digital Technology and an International Training
course on Information Technology and Education Methodology; India offered
training to NAASP members under its Intergovernmental Committee on Trade and
Economic Co-operation (ITEC) and State Criminal Alien Assistance Programme
(SCAAP); Tunis requested re-commitment to the decisions of the 2005 World
Summit on the Information Society (WSIS).

* Co-operation in area of mass media: Indonesia, supported by South Africa,
Nigeria, India and Morocco, undertook to facilitate an Asian African Journalist
Visit in 2007; India offered annual slots in studies in mass communication to
journalists.

Culture and sport

* People to people contact: Morocco, supported by Singapore and the
Philippines, proposed the Convening of an Asian-African Conference on Tolerance
and Dialogue.
* Asian African cultural exchange: Nigeria offered to hold a Culture
Stakeholders Seminar to promote cross-cultural exchange.

* Protection of Genetic Resources, Traditional Knowledge and Folklore
(GRTKF): Indonesia offered to facilitate an Asian African forum on GRTKF,
together with South Africa and the World Intellectual Property Organisation
(WIPO).

* Youth and sports: China proposed to increased the number of participants
from Asia and Africa at the Olympic Youth Camp in 2008; South Africa would
explore the possibility of an Asian African Youth camp on the sidelines of the
2010 Soccer World Cup; Japan proposed the creation of an Asia Africa Young
Volunteers Programme

Disaster management

Health and environment

* Disaster management: Malaysia offered training in this area under their
MTCP; Japan announced to offer US$2,5 billion over the next five years to
assistance in this area.

* Health: International training courses on Information Education and
Communication for Family Planning/ Reproductive Health were offered by
Indonesia, Malaysia and India.

* Environment: Indonesia offered to host the following events: Workshop on
Asia Africa Environmental Law and Policy; Training Workshop on Vulnerability
and Assessing Adaptability and a Climate Change Workshop on capacity
building.

The NAASP Ministerial meeting will be held in Egypt in 2007, together with
the Business Summit. South Africa and Indonesia will remain the NAASP co-chairs
up to the Summit that is to be held in South Africa in 2008/09, even though
Egypt would provide the venue for the Ministerial meeting.

India-Brazil-South Africa (IBSA)

The first IBSA Summit intended to deepen existing trilateral relations and
was the culmination of three IBSA Ministerial Trilateral Joint Commission
meetings that have taken place in New Delhi (2004), Cape Town (2005) and Rio de
Janeiro (2006), respectively.

President Mbeki was accompanied to the Summit on 13 September by Ministers
Dlamini Zuma, Department of Foreign Affairs (DFA), Mpahlwa, Department of Trade
and Industry (the dti), Radebe, Department of Transport (DoT) and Sonjica,
Department of Minerals and Energy (DME). Two parliamentary representatives also
attended. Government Departments that were represented at the Focal Point/
Senior Officials Meeting that took place on 11 September 2006 in Brasilia to
finalise preparations for the Summit, included the following: DFA, the dti,
DoT, DME, Communications, Department of Public Service and Administration
(DPSA), South African Secret Service (SASS) Embassy representatives and Social
Development.

Business Unity South Africa (BUSA) and the dti facilitated attendance at the
Summit by selected, top Chief Executive Officers (CEOs) from large South
African companies, as well as the participation of other South African business
representatives in the IBSA Business Council's Business meeting that took place
on 12 September 2006. A large number of South African academics, representative
of South African non-governmental "think tanks" and South African tertiary
academic institutions, participated in the discussions of the Academic Seminar
that also took place on 12 September 2006. In addition to the Academic Seminar
and Business meeting, a trilateral Ministerial meeting between Foreign
Ministers Dlamini Zuma, Sharma and Amorim also took place on the same day to
finalise preparations and outstanding issues for the Summit.

South Africa is in an excellent position to be bridge between Africa, Asia
and South America.

China-Africa Forum

The Forum on China-Africa Cooperation (FOCAC) was established with the view
to strengthening friendly co-operation between China and Africa. It developed
into a platform where Africa and China could jointly address the challenges of
economic globalisation and to promote common development.

The 2006 Summit adopted two outcome documents:
1. Declaration of the Beijing Summit of the Forum on China-Africa
Co-operation
The Summit adopted a Declaration, which is a political statement of
co-operation and friendly relations between Africa and China. A major shift
from the Chinese side was to accept that Africa should have full participation
in the UN Security Council.

2. Beijing Action Plan (2007 to 2009)
The Summit also adopted the Beijing Action Plan (2007 to 2009). The Action Plan
reflects what cooperation between Africa and China would entail for the
following three years. The highlights under each chapter for co-operation
are:

Political co-operation:
Chinese and African leaders agreed to continue high-level visits and to set up
a mechanism of regular political dialogue between Foreign Ministers to promote
political co-operation.

Resolved to expand co-operation in the UN, the World Trade Organisation
(WTO) and other international and regional organisations.

In order to promote mutual respect, deepen understanding and enhance
co-operation, the two sides will strengthen friendly contacts in various forms
between the National People's Congress of China and parliaments of African
countries as well as the Pan-African Parliament.

The two sides will promote exchanges and consultation between judiciaries,
police and other law enforcement authorities, improve their capability to
jointly prevent, investigate and combat crimes, enhance co-operation in legal
assistance, extradition and repatriation of criminal suspects and management of
emigrants, and work to resolve the issue of illegal migration through
consultation.

The Chinese Government will continue to strengthen its co-operation with the
African Union (AU) and sub-regional organisations and institutions in Africa,
support the AU's leading role in resolving African issues, and take an active
part in UN peacekeeping operations in Africa.

Economic co-operation

It was agreed that New Partnership for Africa’s Development (NEPAD) was the
overall framework through which China-Africa relations would be developed.

The two sides agreed to create favourable conditions to grow China-Africa
trade in a more balanced manner. Chinese leadership have indicated that while
depending on their national interests, they would ensure that a colonial type
of relationship does not develop between China and Africa.

The two sides agreed to enhance co-operation in areas ranging from
agriculture, investment, trade, finance, infrastructure construction, energy,
natural resources, science and technology and information.

The two sides will give encouragement and support to their enterprises in
conducting joint exploration and rational exploitation of energy and other
resources based on the principle of mutual benefit and common development.

China and its African partners will improve information sharing and
pragmatic co-operation in these sectors to serve the long-term interests of
both sides. The Chinese will send 100 senior experts on agricultural
technologies to Africa to set up ten demonstration centres.

China will increase from 190 to 440 the number of exports items eligible for
zero-tariff treatment from Least Developed Countries (LDCs) to China. By 2009
China will double the size of its assistance to Africa.

China will provide US$3 billion in preferential loans and US$2 billion
preferential export's buyer's credit to African countries.

China will cancel government interest free loans that have become due in
2005 by Heavily Indebted Poor Countries (HIPCs) and LDCs in Africa with
diplomatic ties with China.

China will train 15 000 professionals for African countries in the next
three years. China will set up 100 rural schools, increase the number of
scholarships from 2 000 to 4 000 by 2009, build more Confucius Institutes in
African countries to meet the needs in Chinese language teaching.

China will assist African countries to build 30 hospitals and provide grants
for ant-malarial drugs and send additional medical teams to Africa.

China extended Approved Destination Status (ADS) to a further nine African
countries (Algeria, Cape Verde, Cameroon, Gabon, Rwanda, Mali, Mozambique,
Benin and Nigeria), bringing the total to 26 African countries with ADS
status.

Co-operation in international affairs

The two sides agreed that in reforming of the UN Security Council, priority
should be given to increasing the representation of developing countries. The
two sides will also work to strengthen consultation and co-operation in
international affairs, serving the common interests of both sides and other
developing countries.

China and Africa welcomed the establishment of the Human Rights Council
(HRC) by the UN.

China and Africa will strengthen co-operation in countering terrorism and
promoting nuclear disarmament. China and Africa condemn and oppose terrorism in
whatever form and will explore methods of counter-terrorism co-operation.

The next Ministerial FOCAC will take place in Egypt in 2009.

Global governance: socio-economic

WTO negotiations

Negotiations in the WTO's Doha Round remain suspended. Significant
differences in the agricultural negotiations persist. Intensive technical work,
in addition to diplomatic/ political efforts would be required to close
existing gaps.

During a meeting of the WTO General Council (9 to 10 October 2006) now new
indications were given that the Director-General of the WTO (Mr Pascal Lamy)
was in a position to lift the suspension on negotiations. A critical mass of
differences remained.

Mr Lamy indicated that the onus was on key domestic constituencies and that
he personally had little manoeuvrability to achieve a re-launch of the round.
The crux of Mr Lamy's message was that key stakeholders had displayed
insufficient movement to enable him to lift the suspension on the re-opening
the current round of negotiations.

Mr Lamy has clearly placed the political onus on key players, namely the US
and the EU to provide significant incentives for him to re-open the round. He
pointed out that he was planning to engage Washington and Brussels more
intensively.

He reiterated the wide-ranging concern that the cost of failure to re-start
the Round promptly would affect developing countries the worst. Despite the
prevailing stalemate he indicated that in his ongoing consultations with
different negotiating groups there appeared to be a general desire to resume
the round.

Calls for a speedy restart were for instance made at the Ministerial
meetings of the Group of 20 (G-20) and the Cairns Group during September 2006
and the most recent being the Asia-Pacific Economic Co-operation (APEC)
Ministers who agreed on 16 November 2006 at the 18th APEC Ministerial Summit to
propose prompt action to re-start the Doha round and were willing to make
higher commitments with specific flexibilities to create momentum for the
negotiations.

At the APEC Summit Mr Lamy reiterated that for negotiations to succeed, each
one of the major players must take a decisive step forward and bring with them
the extra flexibility in negotiating positions.

Mr Lamy also expanded on why agriculture, which represents less than 8% of
world trade, keeps the entire Doha Round agenda off track? The answer is
simple: because food production remains a very sensitive sector for both rich
and poor countries. And since the current round is a development one and since
more than 70% of the world's poor live in rural areas, there is no way the
negotiation can succeed if the existing agriculture bias against developing
countries is not properly addressed. This means an effective reduction in farm
subsidies by rich WTO members as well as a reduction of agriculture tariffs
providing for substantial improvements in market access. Obviously the
reduction in tariffs should be modulated with the necessary flexibilities for
developing countries. In July we could not reach agreement on these points
because, on the one hand, what was offered in reduction in subsidies was not
perceived as enough by developing countries, and because, on the other hand,
the insistence on flexibilities which could negate the principle of market
access, was unacceptable to some developed and developing countries.

For this negotiation to succeed, each one of the major players in this round
must take a decisive step forward. When they do, they must bring with them the
extra flexibility in their negotiating positions so that we can close the gap
on the very substantial trade agreement that is now clearly within our
reach.

In another important development during the APEC Summit in Hanoi, the United
States and Russia signed a bilateral agreement that paves the way for Moscow to
join the WTO after more than a decade of tough negotiations. Russia is the only
major economy not yet a member of the WTO.

South Africa urges the developed countries to work towards the common good
and not seek to protect narrow self-interests. They must display the necessary
political will to break the impasse.

G-20

An element of South Africa's programme for next year comprises of a seminar
of the reform of the International Monetary Fund (IMF) and World Bank that
would be convened in Brazil in March; financial stability would be discussed
around April and May 2007 in the United States and fiscal space would be
discussed in Turkey in June. Meetings are also scheduled to take place in
Pretoria and Durban next year as part of the build-up to the November meeting.
As the only African country in the G20 and as a representative of Africa, South
Africa will also endeavour to bring in some of countries of the African
continent in next year's engagements.

Transforming world governance

AU government

The January 2005, AU Summit reaffirmed the ultimate goal of the AU of a full
political and economic integration of the African Continent. In that regard,
the Summit established a Committee of seven Heads of State chaired by President
Obasanjo to consider all the ideas on this goal, including the structure,
process and timeframes to achieve this objective, as well as measures to be
undertaken in the interim to strengthen the Commission's ability to fulfil its
mandate effectively.

The outcomes of the consultations by the Heads of State were released at the
Banjul Summit in July 2006 in a document entitled "A Study on an African Union
Government: Towards the United States of Africa". The Banjul Summit decided to
refer the document to an Extraordinary Session of the Executive Council for
further deliberation. The Extraordinary Session took place on 17 to 18 November
2006, and its findings would be submitted at the January 2007 Summit.

Southern African Development Community (SADC) integration agenda:
Closely linked to the issue of continental integration as conceptualised in the
study on the AU Government is the need for the integration at regional level.
In terms of the Abuja Treaty, one of the key milestones for the attainment of
the African Economic Community is the rationalisation and harmonisation of the
Regional Economic Communities (RECs) in full as its building blocks.

The August 2006 Maseru SADC Summit of Heads of State and Government reviewed
the lack or slow pace of deeper economic integration within SADC, especially
since the dates for the attainment of two critical milestones, i.e. a Free
Trade Area (FTA) and Customs Union are imminent.

In light of this, the Maseru Summit appointed a Task Force of Ministers of
Finance, Investment and Economic Development, Trade and Industry and the SADC
Secretariat to review the regional economic integration agenda, assess progress
and propose measures for up-scaling implementation. The Task Force was mandated
to submit its report to an Extraordinary SADC Summit in October 2006.

In this regard South Africa hosted an Extraordinary SADC Summit on Regional
Integration on Monday 23 October 2006, which was preceded by a meeting of the
Ministerial Task Force on Regional Integration from 21 to 22 October 2006.

The Summit reviewed the status of regional economic integration and to
propose measures to accelerate the implementation of the SADC economic
integration agenda, particularly in achieving the FTA by 2008 and a Customs
Union by 2010.

Regional economic integration

The Summit was chaired by the Lesotho Prime Minister, Right Honourable
Pakalitha Mosisili, and was preceded by a meeting of Senior Officials from 19
to 20 October 2006, and the Ministerial Task Force of SADC Ministers of
Finance, Investment and Economic Development and Trade and Industry and the
SADC Secretariat, from 21 to 22 October 2006. In preparation for the Summit,
briefing meetings were held for Ministers of Finance and Trade on 15 September
2006 (on the margins of the IMF World Bank annual meetings in Singapore) and on
29 September 2006, in Johannesburg. A Joint Ministerial Task Force meeting was
also held on 13 October 2006 in Johannesburg.

The Extraordinary Summit considered the report and recommendations of the
Ministerial Task Force, particularly the following:
* status of regional integration
* Free Trade Area
* preparations for a Customs Union
* macro-economic convergence
* SADC Development Fund
* institutional framework to implement the integration agenda

The Summit acknowledged that intra-regional trade was estimated at
approximately 20% of total trade in 1997 and this had risen to 25% by 2003.
However, despite this statistic, Heads of State and Government recognised that
the status of regional economic integration was not as advanced as it should
be.

On the FTA, the Summit noted progress made in attaining this milestone and
concluded that the organisation is on track to meet the target of 2008 for
establishing the FTA. The point was made repeatedly that the establishment of
the FTA should take cognisance of developmental integration elements such as
infrastructure, poverty alleviation and sustainable development so as to
recognise the realities in individual member states.

With regard to the establishment of a SADC Customs Union, the Summit
reaffirmed its commitment to the Regional Indicative Strategic Plan (RISDP)
target of 2010, and directed the Ministerial Task Force to undertake and
finalise a study evaluating an appropriate model for such a Customs Union.
Heads of State and Government further directed that an activity map be
developed to facilitate implementation towards both the FTA and Customs
Union.

We believe that economic integration must be achieved in the context of a
broader development agenda. Complementary instruments and policies are needed
to support regional economic integration within the context of sustainable
economic growth and development to eradicate poverty. The principle of equity,
balanced development and mutual benefit between member states in deepening
integration was reiterated.

South Africa as the strongest economic power has the responsibility to
ensure that all benefit from the integration process.

The Extraordinary Summit underlined the need to mobilise resources to
address issues of infrastructure, food security and other supply side
challenges within the region. Heads of State and Government called for the
establishment of a Development Fund to be expedited.

Global governance: politics and security

UN Secretariat and management reform

The atmosphere at the UN has been sharply polarised over the past year
between the developed and developing world due to efforts to force through
controversial reforms that would inter alia deny all countries the right to
participate in the UN budgetary process.

Despite this polarisation, significant progress has been made. In December
2005 an ethics office was established, a whistleblowers' policy and financial
disclosure policies were adopted, the Independent Audit Advisory Committee was
established and approved additional resources aimed at strengthening the
auditing and investigations functions of the Office of International Oversight
(OIOS).

During the June 2006 negotiations in the 5th Committee, the Group of 77
(G-77), EU, United States of America (USA) and Japan were able to agree on most
of the reform proposals of the Secretary-General. Most Member States were able
to support establishing the post of Chief Information Technology Officer,
adopting new accounting standards (IPSAS), and replacing the ICT system with an
enterprise resource planning system (ERPS). However, the USA, Japan and CANZ
wanted to finance the ICT enhancements from within existing resource levels,
whilst the G-77, EU and Norway were willing to provide additional resources.
The G-77 and Norway were able to support increasing the level of the Working
Capital Fund to $250 million, while the EU and Japan, United States, Canada,
Australia, and New Zealand (JUSCANZ) wanted to increase it to only $150
million. The G-77 supported the proposal to use budgetary surpluses to finance
the increase in the Fund level, which the EU and JUSCANZ did not have a
position on. The G-77 was ready to approve the additional resource requirements
that the implementation of the reform proposals would necessitate, while the
JUSCANZ wanted to meet the costs from within existing resources or through
so-called savings that could be realised through the mandate review
exercise.

More recently, the US has broken the 20-year practice of adopting decisions
on budgetary matters by consensus. The US called for a vote on the funding of
US$131,200 required for the deployment of a fact-finding mission to examine
recent Israeli attacks at Beit Hanoun, as mandated by the Emergency Special
Session of the General Assembly. This will have serious implications for future
discussions on budgetary matters at the UN. (The US lost the vote by a margin
of 143 votes to five, with two abstentions).

HRC

The HRC was established on 15 March 2006. South Africa is a member of the
HRC. It replaces the Commission on Human Rights and it remains to be decided
(in ongoing discussions) whether it should assume the same stature of a council
such as Economic and Social Council of the United Nations (ECOSOC), the
Security Council etc (however this as yet to be realised). The General Assembly
resolution does not provide specifics on how the agenda of the HRC should be
determined. Several issues, both procedural and substantive, currently remain
open-ended for which constructive, common positions remain crucial. These
include;
* finalisation of the modalities for the Universal Periodic Review Mechanism
which has been introduced ostensibly to reduce politicisation and
double-standards in regard to the international human rights agenda
* the revision and rationalization of the Council's mechanisms (special
mandates, working groups and the sub-commission) which were inherited from the
Commission
* the methods of work of the Council
* scheduling or the determination of the sessions of the Council throughout the
year

Peacebuilding Commission (PBC)

The PBC was established in December 2005. South Africa is not a member yet,
but will replace Tanzania as one of the Security Council's representatives to
the Peace and Security Council (PSC) in 2007. South Africa already participates
on country-specific discussions in the PBC on Burundi due to its intense
involvement with the Burundi peace process.

The PBC will fill in a previous void in dealing with post-conflict
situations. It could provide a coherent and longer-term focus on development of
countries emerging from conflicts, in order to prevent a relapse into such
conflict. This may involve peacebuilding, reconstruction and development in
order to achieve sustainable peace. South Africa's interest lies in ensuring
that the work of the PBC dovetails with or supports similar initiatives and
policy approaches at the level of the African Union. It is therefore important
for South Africa and like-minded countries to ensure that the PBC has a
balanced agenda whose work should be based on the priorities and needs of the
countries emerging from conflict, many of which are in Africa.

UN Security Council: Non Permanent Seat

On 16 October 2006 the General Assembly of the UN elected South Africa to
serve as non-permanent member of the UN Security Council for a two-year term,
starting on 1 January 2007.

South Africa will join the DRC and Ghana as the third African non-permanent
member of the Security Council.

South Africa received the support of 186 countries, with no country voting
against or abstaining. South Africa is greatly privileged and honoured by its
election.

The UNSC occupies an important and unique place in this multilateral system
with its tasks defined in the UN Charter.
The Charter says, "In order to ensure prompt and effective action by the UN,
its members confer on the Security Council primary responsibility for the
maintenance of international peace and security, and agree that in carrying out
its duties under this responsibility, the Security Council acts on their
behalf. In discharging these duties the Security Council shall act in
accordance with the Purposes and Principles of the UN".

Currently for instance, the African issues of which the UNSC remains seized
include Western Sahara, Liberia, Sierra Leone, Côte d'Ivoire, the DRC, Burundi,
Sudan, Somalia, and Ethiopia and Eritrea with regard to their border
dispute.

Other important issues:
Palestine and Israel
Lebanon and Israel
Iraq
Iran
The Democratic Peoples Republic of Korea
Haiti
Cyprus

As we take our seat on the Security Council we are acutely conscious
* of fundamental importance to the tasks that face the UNSC is the need to
respect the principles reflected in the Preamble of the UN Charter. This
Preamble says, "We the peoples of the UN determined:
* to save succeeding generations from the scourge of war, which twice in our
lifetime has brought untold sorrow to mankind
* to reaffirm faith in fundamental human rights, in the dignity and worth of
the human person, in the equal rights of men and women and of nations large and
small
* to establish conditions under which justice and respect for the obligations
arising from treaties and other sources of international law can be
maintained
* to promote social progress and better standards of life in larger
freedom".

These are fundamental elements that drive our foreign policy perspectives
and will guide our actions in the Security Council.

President Mbeki said, "The responsibility facing our government as a member
of the UNSC is a national task to which we must respond in unity, inspired in
the spirit of ubuntu, that with regard to all humanity, we are truly one
another's brothers and sisters' keepers.

A shared and new patriotism must surely tell all of us, regardless of any
political or other affiliation and identity, that when we end our privileged
tour of duty as a member of the 15-member UNSC on 31 December 2008, we will be
immensely honoured to hear all humanity saying that, thank you South Africa for
everything you did to strive to make ours a better and safer world for
all."

Annual Meetings of the World Bank and International Monetary Fund
(IMF)
The Annual Meetings of the World Bank and IMF were held in Singapore on the 19
to 20 September 2006. South Africa represented the Africa Group one
Constituency at the Development Committee, whilst Nigeria represented the
constituency at the International Monetary and Finance Committee (IMFC).

IMFC

The IMFC considered the global economy and the IMF's Medium Term Strategy,
which included the central issue of IMF quotas and voice. IMF member states
voted in favour of the proposals to increase the voice and representation of
developing nations in the IMF.

The IMF has clearly realised that it is needs to reform, in order to remain
relevant to the global economy. The package of reforms comprises an initial
limited increase in quotas for four emerging market countries, namely; China,
South Korea, Mexico and Turkey, and a work programme of more fundamental
reforms, including a revision of the quota formula, to be completed by
2008.

South Africa voted in favour of the reforms, and is committed to ensuring
that the second stage of reform will be beneficial to Africa. South Africa
would like to see at least a tripling of basic votes, to ensure that smaller
developing countries do not lose out from the quota rebalancing exercise.
Sub-Saharan Africa is represented at the fund by just two chairs. South Africa
would like to see better representation of Africans at all levels of the Bank
and Fund.

Development Committee (DC)

The DC of the World Bank focussed its discussion on Governance and
Corruption and the Bank's lending to Middle Income Countries. South Africa
indicated its discomfort with the Bank's recent emphasis on governance
particularly because of the risk that policy conditionality of this type makes
it difficult for borrowing governments to have a clear sense of what is
required of them. South Africa stressed the need to engage with existing
initiatives to ensure governance, such as the African Peer Review Mechanism
(APRM) and noted the asymmetry of response where insufficient attention is
given to the activities and sanctions on the corruptor. Many countries shared
this view, including the UK.

The September 2006 Communiqué stressed that the Bretton Woods Institutions
(BWIs) should focus on their institutional responsibilities and continue to
cover all the critical issues relating to reaching the Managing
Director-Generals (MDGs) within their mandates, and this will continue to be a
critical component of BWI reform. It is important that the BWIs create more
room for diversity of economic policy-making, in particular by allowing program
countries to tailor policies to address their unique "binding constraints" and
this should be reflected in the policy advice and surveillance. It is also
important that conditionality is not arbitrarily devised, but supports
government owned reform efforts, and not be a form of long distance
micromanagement.

Federation Internationale de Football Association (FIFA) 2010 Soccer World
Cup

As you know preparations are underway for South Africa to host the 2010
Soccer World Cup.

Yesterday, the Local Organising Committee (LOC) instructed Danny Jordaan,
the CEO, to write to all countries that may still believe we are not capable of
organising the event.

Questions and answers

Question:
Deputy Minister Pahad, regarding Africa-China relations: you said that the
Chinese government had given an undertaking to not develop relations that a
reflective of the old colonial ones, but isn't this precisely how the Chinese
relationship with Africa has been modelled?

Answer:
China's involvement in Africa is relatively new. In all our discussions, at the
Summit and during the working visit immediately after the Summit, the Chinese
leadership made it clear that they could not sustain a relationship that
resembled the traditional colonial one. If you look at the agreements reached
at the Summit, you will see that the Chinese do desire a sustainable
relationship with Africa. But only time will tell, we have only now emerged
from the Summit; China does play a key role in the New Africa Asia Strategic
Partnership and has given South Africa the title of Strategic Partner. We will
also endeavour to increase reciprocal bilateral visits to both countries. China
has also given the preferential tourist destination to more African countries
where South Africa was the only one given this title previously. I want to
believe that the Chinese government realises that the relationship cannot just
consist of receiving our raw materials, there must also be an element of
beneficiation to ensure the sustainability of the relationship.

Question:
Deputy Minister, you did not say much about the relations with the world's only
super-power. Can you comment on such relations?

Answer:
We have what I call some traditional partners consisting of members of the EU
and the US. In this regard, the EU is in discussions with South Africa
regarding the bestowal of a "Strategic Partner" label on our relations. In
fact, the French Prime Minister will pay a one-day working visit to South
Africa early next month.

There is no antagonism in our relations with the US. President Mbeki is
expected to hold discussions with President Bush in Washington, on 8 December
2006, the agenda of which is not quite finalised. I expect he will also hold
discussions with new political players since the recent elections.

We do have differences on the tactical approach to many issues; the WTO, the
Middle East, unilateralism vs multilateralism, the analysis on how to proceed
on the matter of international terrorism. In this regard, I believe the Middle
East is a primary contributor to international terrorism and terrorism must be
tackled holistically. Iraq is a very good example; Afghanistan is beginning to
reflect this. The Palestinian cause is a very strong contributor to terrorism.
As you know, South Africans are also being increasingly unceremoniously
deported from some countries although they hold the relevant travel
documents.

Question:
Deputy Minister Pahad, will the issue of the US refusal to discuss a
developmental agenda in the US-South African Customs Union (SACU) FTA
negotiations be on the agenda of discussions between Presidents Mbeki and Bush
next month?

Answer:
Yes, this matter will be on the agenda since economic diplomacy is very
important in our relations. The DTI has indicated the differences over
symmetrical and asymmetrical positions in the discussions and negotiations in
this regard are continuing. We do not have as strong an economy as is necessary
to withstand an asymmetrical arrangement. We do not have this with the EU, I do
not believe we will have it with India or China.

Question:
Deputy Minister Pahad, where will President Mbeki meet President Bush and why
will they be meeting?

Answer:
They will meet in Washington; this is part of their regular interaction. They
will review developments since their last meeting in May 2005.

Question:
Deputy Minister Pahad, what is South Africa's position on Zimbabwe seeing that
matters are only deteriorating?

Answer:
We remain seized with this matter considering its importance to South Africa.
We are in consultations with the US, EU and other international partners to
assess what can be done collectively, in Africa and beyond.

There is also talk of convening the next Africa-EU Summit; as you know, we
did not meet after the first one in Cairo in 2000 due to differences over
Zimbabwe. It is now realised that such discussions must continue. We must plan
for the Summit since the issues we have to discuss are much larger than any
differences over Zimbabwe including matters of climate change, illegal
immigration, etc.

There is no Chinese wall between Africa and Europe; if African challenges
are not tackled comprehensively, then issues in Europe including illegal
immigration will not be solved.

Question:
Deputy Minister Pahad, will South Africa use its influence in the UN Security
Council to put Zimbabwe on the agenda?

Answer:
The Security Council puts on the agenda only matters that are a threat to
international peace and security. Thus far, whatever the opinion on Zimbabwe,
it has not been deemed a threat to international peace and security. There is
one school of thought that says quiet diplomacy has failed. However, we must
realise that we must work together if we are to address this matter
effectively.

Question:
Deputy Minister Pahad, can you comment on the suggestion that the government of
Swaziland wants to take South Africa to court?

Answer:
I think this must be dealt with differently. Perhaps the government of
Swaziland can use its resources more effectively than to take us to court over
this matter.

Issued by: Department of Foreign Affairs
23 November 2006
Source: SAPA