Members of the Media,
Members of the Diplomatic Corps,
Ladies and Gentleman

We are approaching the end of five years of our first democratic government and, in that time, as the President pointed out in his opening address to Parliament, there have been momentous changes - not least in Defence where we have had a steep hill to climb.

Taking the President's speech as our benchmark, I intend to show that we have laid firm foundations for the defence of our country, and have constructed an institution that is proving its worth and is continuing to improve.

Looking at our achievements, I would like to start by reminding everybody of what was perhaps one of the key anxieties in the run-up to the elections in 1994.

That was whether the defence force would show loyalty and commitment to democratic change, and whether we would be able to unite former adversarial forces into a unified defence force that would be capable and disciplined - and enjoy the respect of our people.

Although there is always a need for improvement, the answer has been a resounding Yes!

Whatever the tensions and problems, these have been secondary compared to the fact that the military are stable, loyal and professional, and have shown that they can get on with the job.

This was achieved even though the defence force had to undergo perhaps the greatest transformation of any state institution in our country. Eight formerly adversarial forces had to be brought together and integrated - on a scale unprecedented in the world. Furthermore, we had to achieve that integration and the creation of a new defence force within the context of major and necessary Defence cuts.

To have an idea of the enormity of this change:

ln 1994, we ended apartheid's conscript-based defence system which had reached 600 000.  We inherited a full time component of 100 000 to which was added 36 000 Liberation force fighters.  Today we have an all-volunteer professional force downsized to 87 000, and which is set to drop further to 70 000.

In 1994, less than 1% of officers in the old SADF were black. That figure, in our new defence force, stands at 31.62% and is a testament to the reduction of the inequalities of the past which - as the President has stressed - is a guiding imperative of our society. Numerous black officers - together with whites - have been appointed to the most senior positions. To date, we have appointed 18 black generals from major-general up - of which 14 are currently serving. Today we have a defence force that is coming to represent the demography of our country - and in which approximately 72% of the members are black, and 28% white. With Government's focus on socio-economic upliftment, our move from apartheid militarism has created a tremendous peace dividend.

In 1989, Defence spending was 4.5% of Gross Domestic Product - it is 1.5% of GDP now. As a percentage of total Government expenditure, it is down from 15.64% in 1989, to around 7% now - the Defence budget having been reduced by over 60% in that period. This shows the extent to which scarce resources have been diverted to essential development projects.

Apart from the successful integration and downsizing programme to meet our budget, there have been major changes in Defence policy and in the culture and values of the defence force. In this respect, our policy milestones were spelt out in our White Paper and Defence Review - which has been hailed as the most consultative, inclusive and transparent in the world.

To implement our policy and to effect greater civil control over the military, a Defence Secretariat was created. This policy has been further implemented through our Civic Education and Equal Opportunity programmes which are substantially changing the ethos of Defence to conform to the principles and values of our new democracy.

We can proudly claim that much of our policy has been implemented. We now have a defence force that is legitimate and credible in the eyes of all our people. In addition, the success of the implementation of our policy has been borne out by other key achievements some of which we will briefly cite.

As the President has pointed out, the defence force made a major contribution to resolving the internal problem in Lesotho. This was the first time the SANDF saw action beyond our borders - and they honourably passed that first baptism of fire. Those who fell reflected the diversity of our population, and the unity of our defence force was sealed with their blood.

This unity had already been put to the test by the early retirement of General Meiring after a flawed intelligence report - which reflected the last ditch attempts by remnants of the old guard to slow down transformation. The smooth succession of the new Chief, General Nyanda, has shown a defence force - and, indeed, a country ready to accept the changing of the old guard. This new leadership of black and white officers has been an outstanding example to the country of partnership and reconciliation, is a tribute to the example President Mandela, and underlines the claims he made in his parliamentary address.

The defence force has also managed to expand its humanitarian support operations by providing much needed assistance to our neighbours in times of crisis or natural disaster - as we have seen in:

• Shipments and airlifts of food and medicines to Rwandan refugees;
• Assistance to flood victims in Mozambique and Tanzania;
• Assistance in the ferry disaster on Lake Victoria;
• De-mining in Angola and Mozambique;
• And many more such instances.

We have been amongst the world leaders in the ban on anti-personnel mines, and have enhanced regional co-operation through the Southern African Development Community's Inter-State Defence and Security Committee.

We have completed successful joint exercises with neighbouring defence forces and others further afield, and stand ready to assist in international peacekeeping - if and when called upon

A significant area where the defence force is daily proving its loyalty and commitment to our new democracy is the fight against crime. Operations in support of the police have brought success to key flashpoints such as the Cape Flats, Richmond, Tsolo and Xunu, to name but a few.

Over the last weeks, 1 000 defence force personnel were deployed to help the Independent Electoral Commission and impressed the public with their professional efficiency and courtesy. A far cry from the aggression of the apartheid years.

Within this major transformation we had to deal with the problem of replacing obsolete equipment within a reduced budget. We have resolved this, through the Defence procurement package agreements with key international trading partners - which will enable the acquisition of quality equipment at competitive prices and under favourable conditions.

Such strategic partnerships will be of immense value to our economy through significant investment, expanding our industrial base, enhancing our high-tech manufacturing capacity, ensuring job creation, and eliciting greater access to international markets. As our President stated "We remain as committed as ever to equip the Force in a manner that ensures its effectiveness and adds value to the economy". In addition to the national economic benefits it is also a major boost to morale in the defence force - which can now look forward to operating first rate equipment.

This brings me to the question of whether there is a discernable threat to justify the purchase of such equipment.

Just over four years ago, with apartheid dead and the cold war over, some questioned the need for Defence. But we maintained that the world was unpredictable and volatile and that, in such times of uncertainty, we must be prepared to defend our hard-won freedom and sacred sovereignty. We, therefore, emphasised that there was a constitutional imperative for a defence force capable of preserving the peace. The need for such insurance has been borne out both by events in our region and beyond - as pointed out by the President.

Throughout these momentous and historic changes, the Department of Defence managed to maintain morale, motivation and discipline. Necessary to improving discipline in the defence force within the context of fairness and justice, is a new Defence Act and Military Discipline Code. This is a key concern as progress has been slow. And I would say that the attempts to impose an outmoded disciplinary code has, indeed, caused many of the strains we have experienced. This is a most complex Act to re-write and we have had to wait for the completion of the Defence Review. We have a team of experts from the Department of Defence and Justice, Civil Society, and the legal profession assisting us. The aim is to complete the work before the end of the year.

Which brings me to the needs of the ordinary soldier. Much more has to be done to make our ordinary serviceman and woman feel that they are central to the defence of our country, and that we have their interests and wellbeing uppermost in our hearts. This is a theme we are stressing. Similarly, we will focus more on veterans and, in the course of this year, will see the passing of a Veterans Bill and the creation of a Directorate of veterans Affairs.

Obviously I will focus on the key areas of the Defence budget at the appropriate time, next month, in Parliament.

I believe that w e have succeeded in laying a firm foundation, that we have delivered in Defence terms, that we are building further, and that we are creating a Defence force fit for the 21st Century - indeed, a defence force that is becoming the pride of our nation.

I thank you and would now like to invite questions.