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A MBASSADOR AN D F E R G U SO N F R O M B U R G E R A N D E V A N S

VISI T O F " S"

F ollowing fo r your in fo rmat ion on how v i sit of S b e i n g

h andl e d .

1. F i r s t o b j e c t iv e o f t h e v i s i t i s t o p e r m i t b u s i n e s s
community elements plus ourselves to e va l u a t e
desirability, practicality and cost effectiveness o f S
proposal. I n i t ially you reported that S envisaged
p roposal w h ic h w o u l d cost more than $50 million.
Ferguson informs now that S would be happy with $1,2
million. T h e se vastly different sums oblige the
businessmen and ourselves to evaluate S's proposals
comprehensively and critically.

2. We a gree that early meeting with the Minister is

essential this has been arranged.

3. We h a v e sp o k e n w it h RONNIE L U B N E R , B ERTI E L UB N E R a n d
others. S o m e businessmen are prepared to commit
significant funds to improvement of RSA image

committed to S's proposal(s) which must first be

evaluated in situ. I n a n y e v e n t , sum s of t h e or d e r o f
$ 50 mil l ion w i l l a l m o s t c e r t a i n l y n o t b e c ommitted t o
o ne p r o j e c t a l o n e . P relimin ary i n d i c a t i o n s a r e t h a t
around $15 million may be forthcoming for a variety of
pro j e c t s .

4. Yo u should appreciate that financial committments of

this order (+$15 m) are highly exceptional in the

o bt a i n i n g such o r de r o f funds i s l a r g e l y d u e t o
p ersonal c o m m i t t m en t a n d i n i t i a t iv e o f L U B N E R S , G E R R Y
 c l os e f r i end s and
MULLER a n d a c ircle o f t h e i r
. ' asso c i a t e s .
w e woul d
5. G i ven potential interest of the latter,
u ndermine th e p o s s i b i l it y o f g e t t i n g s u b s t a n t i v e
p riv a t esector funding by going behind the backs of the
w here e x p e r i e n c e
LUBNERS et a l t o o t h e r b u s i n e s s e s Reasons
s hows tha t th e p r o s p e c t s are severely limited.
i nclude th e following:

5.1 A ttitude o f m a n y b u s i n e s s me n i s t h a t e x t e r n a l
as
image-building is u seless u n t i l s u c h t i m e
g overnmen t e f f e c t s m a j o r c oncr e t e c h a n g e s
a ddre s s
domestically. Many leading businessmen
t heir mos t s e v e r e criticism a t Gove r nm e n t .
" Government go t u s i n t o t h i s m ess, they m u s t get
u s out o f i t " G R E L L Y .

5 .2 A b o v e m e n t i o n e d p e r c e p t i o n s explain inclination of
s ome bu s i n e s s me n t o e xplore a l t e r n a t i v e o pt i o n s e g
d iscuss i ons w i t h A N C .

5.3 Ab ov e p h e n o m e n o n u nde r l y c as h c r i s i s at
SA
Foundation. M a n y of names you propose r e S A F ' s a
pr i n c i p l e b ac k e r s . S OROUR i s R E L L Y ' s p r o t e g e .
F red du P l e s s i s i s P r e s i d e n t . Thes e a n d o t h e r
parties have yet to provide R2 million to c ove r
c urrent SA F d e f i c i t .

b . I n t h e s e a n d o t h e r c ircumst a n c e s , f u n d s c anno t he
r ai se d o n t h e b a s i s o f a p pr o a ch i n g bu s i n e s s m e n s i mp l y
b ec a u s e t h e i r c o m p a n i e s a re l i s t e d a m o n g s t t h e top 10
o r 20 . W e h av e h a d c o n t a c t w i t h m o r e t h a n 2 0 0 dom es tic
a nd fo r e ig n c o m p a n i e s , n ational an d r e g i o n a l c h a m b e r s
a nd othe r i n s t i t u t i on s a n d h a v e y e t t o o b t a i n
committment of the sort LUBNER et al may provide.

7. I n su m - we p r o c e e d a s f o l l o ws :

7 .1 M e e t ing with L U BNER and his g r oup on F r iday af ter

pre-briefing of these persons by us . ( L U B N ER
g oing ov e r s ea s o n F r i d a y n i g h t - u nfortun a t e l y
s ome mem b er s o f t h i s g r o u p a r e a b r o a d a t p r e s e n t ) .

7.2 M e e ting with Minister o n Monday .

7 .3 E v a l ut ion . I f a p r a c t i cal and a f fordable plan of

action can be agreed, we have to inform S of
p ositive d e c i s io n a t that time . If a d d i t i o n a l
funding is the only outstanding element, w e sh a l l
a rrange a d d i t i o na l a p p o i n t m e n t s with business in
cooperation with LUBNER et al.
w~NtMENT:

D uring a p r e l i m i n ar y d i s c u s s i o n o n t h e e ve n i n g o f St o n e ' s
arr rival in Johannesburg he demonstrated a s er i o II
us l a ck o f
understanding of the situation "on t h e
II
gr ou n d i n RSA.

In suggesting how the embanning of Winnie Mandela migh t

h ave b e e n ( b e) h an d l e d , St on e s tated it w o u l d h a v e b e e n
preferable for Mrs Botha to convey the message to Mrs
Mandela personally in Soweto rather than having the message
conveyed by telephone to Mrs Mandela's lawyer.

Th e "b'i ggi e " a ccor d i n g t o St o ne I would be affecting the

'

r e 1e a s e o f Mrss Ma n d e l a . Thi s h e w ould do b y l i a s i n g w w iit h

i n Guu l f
the Angolan Government, through personal contacts in
Oil , t o obt ai n t he release of Capt Du Toit and by liasing
"internal" release
wi'th thee Soviet Government to obtain the
o ne i in d i c a t e d
S tone
o f SAKHA R OV , i e h i s r e l e a s e t o Mo sc ow . w it h
that he would arrange the timing of this to coincicle
n an d Goorr b a c h e v .
the next summit meeting between Reagan