Issued by: Government Communications (GCIS)
DECLARATION OF INTENT BETWEEN THE GOVERNMENTS OF THE REPUBLIC OF SOUTH AFRICA AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND
Whereas the Government of the Republic of South Africa and the Government of the United Kingdom of Great Britain and Northern Ireland wish to strengthen and develop industrial cooperation, including through the trade promotion campaign "Britain and South Africa - Partners in Opportunity" launched in London and Cape Town on 27 May 1998 by the British and South African Departments of Trade and Industry;
Recognising the significant potential for broadly-based British civil inward investment arising out of major South African defence procurement programmes where British contractors have been selected as "preferred suppliers").
THE PARTIES HEREBY DECLARE THEIR INTENTION
1. To promote investment sectors which may be agreed between the British and South African Departments of Trade and Industry and the British Overseas Trade Board's Committee on South Africa Trade (COSAT).
2. That the British Department of Trade and Industry and the Defence Export Services Organisation of the Ministry of Defence together with the Export Credit Guarantee Department, through a joint steering committee, and the South African Department of Trade and Industry through the Industrial Participation Directorate, meet on a regular basis to monitor, report and oversee the fulfilment of the civil industrial participation commitments resulting from defence equipment contracts between British contractors and the South African Government.
3. That industrial participation objectives should be met through inward investment, technology and skills transfer, sustained job creation and new export opportunities according to South African priorities.
4. To work together for mutual benefit, seeking wherever possible to maximise the socio-economic benefits arising from defence procurement.
5. For the British joint steering committee, in consultation with the Industrial Participation Directorate, to make available an official for secondment to the South African Department of Trade and Industry to oversee the Industrial participation arrangements relating to contracts reached with British companies, with the aim of building capacity and improving skills in the South African Department of Trade and Industry.
6. That, noting the South African Government's fiscal capacity and the question of affordability, the British Department of Trade and Industry and the British Ministry of Defence, through the joint steering committee mentioned in 2 above will enter discussions with the South African negotiation team to explore coordination of the the finance arrangements between the successful bidders for the defence equipment contracts from Britain, Germany, Sweden, and Italy (subject to agreement of the Parties)
Signed in Pretoria on 7th of January 1999 by
Thabo Mbeki For the Government of the Republic of South Africa
Tony Blair For Her Majesty's Government