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Services of Mead~ Data Central, Inc. LEVEL 1- 51 OF 55 STORIES Copyright (c) 1986 Educational Broadcasting and GWETA; The MacNeil/Lehrer NewsHour September 9, 1986, Tuesday Transcript #2857 LENGTH: 10214 words PAGE . 192 HEADLINE: South Africa: Confronting Apartheid; Holy War; Campaign '85: Senate Sweepstakes; Fumes at Work BYLINE: In New York: CHARLAYNE HUNTER-GAULT, Correspondent; In Washington: JIM• LEHRER, Associate Editor; JUDY WOODRUFF, Correspondent; GUESTS: In Washington: Sen. ORRIN HATCH, Republican, Utah; Sen. FRANK LAUTENBERG, Democrat, New Jersey; ED ROLLINS, Political Consultant; KIRK 0'DONNECL, Political Analyst; In New York: RAGHIDA DERGHAM, Middle East Magazine; REPORTS FROM NEWSHOUR CORRESPflNDENTS: JAMES ROBBINS (BBC), in South Africa; LEE HOCHBERG (KCTS), in Seattle BODY: Intro JIM LEHRER: Good evening. inithe headlines today, another American was kidnapped in Beirut. The Soviet U.N. official was indicted on espionage charges, and the American.reporter jailed in Moscow expressed concern his case was escalating dangerously. We will have the details in the news summary in a moment. Charlayne Hunter-Gault is in New York tonight. Charlayne? CHARLAYNE HUNTER-GAULT: The news summary tonight is followed by three focus segments. We find out about the kidnappers who call themselves Islamic Jihad and why they''re striking now. We'll hear how a first visit to South Africa affected the views of two U.S. senators, followed by a documentary report on how South Africa is planning to get around new sanctions. And finally, a look at just what's at stake in upcomi'ng U.S. elections. News Summary LEHRER: His name is Frank Herbert Reed. He is a 53 year ol6teacher from Maiden, Massachusetts, who is the director of the elementary department of a small, private school in Beirut, Lebanon. This morning his car was stopped by gunmen, and he was taken prisoner. A radical Shi'ite Moslem group called the Islamic Jihad claimed responsibility for the action, as they have for the kidnapping of at least four other Americans believed to be held captive somewhere in Lebanon. In Washingtonj State Department spokesmaniBernard Kaib said this: BERNARD KALB, State Department: The U.S. embassy in Beirut Is In touch with all who could be helpful In verifying Mr. Reed's whereabouts, and, if in fact he has been kidnapped, obtaining his safe release. Once again, I'll do what you're heard me do before and others have done before -- that we call on those who may be holding Mr. Reed, as well as the other foreign hostages in Lebanon, to release their captives immediately. We remind them further that we hold them responsible for the well being of their captives. ~®E~1~®~°Z "M r ~' ~ L ~ ~~I ~® REX ~ ~~Y ~ ®

Senribes of Mead Data Central, Inc. PAGE 193 (c) 1986 EBC & GWETA. All Rights Reserved, September 9, 1986 LEHRER: There is also an apparent Lebanon connection to the bomb yesterday at the Paris post office that killed one person and injured:19. A group called Partisan of Right and Freedom left a:statement in a mailbox in Beirut claiming responsibility for the bombing. And the death toll in the Pan Am hijacking went up two more today. Pakistani officials said 20 people are now dead, and 31 others remain hospi'talized in serious condition. Charlayne? HUNTER-GAULT: A' federal grand jury in New York today i'ndicted 39 year oid~ Soviet physicist Gennady Zakharov on espionage charges. U.S. Attorney General Edwin Meese, who announced the indictment in Washington, said Zakharov woul6be prosecuted vigorously. Zakharov, a:United Nations employee, was charged with conspiracy, obtaining classified documents, and attempting to communicate material to a foreign government. And in Moscow, the wife of jailed American reporter Nicholas Daniloff visited him for the third time today and said that he believes the espionage charges against him won't be resolved soon. Daniloff also said that he fears that U.S.-Soviet tensions over his case are escalating dangerously. In Washington, the White House briefed Congressional leaders on what steps it is considering if Daniloff is not freed. Late today, the Senate unanimously passed a resolution condemning Daniloff's arrest and warned that his continued detention could threaten U.S.-Soviet relations. Sen. ROBERT DOLE, Majority Leader: I'm certain there are some Russian Rambos who think we've bluffing, who tell each other that the Americans are not going to risk the summilt or trade, including sales of wheat, or the SALT agreement -- abiding by the SALT agreement -- or whatever it may be. They may be mistaken. Sen. DANIEL P. MOYNIHAN (DY NewiYork: The Soviets have got to understand that they can not do this and expect our relations to prosper in any way. They cani not expect a summit meeting,, they can not expect an arms control agreement, they can not expect subsidized wheat, and they can not expect expanded trade, they can not expect credits, they can not expect accommodation of the sort whicKwe had hoped for -- which.we do hope for -- if they persist in this foul and detestable, contemptible act of a police state i'n view, of all the world. HUNTER-GAULT: A spokesman for the Soviet foreign ministry told reporte rs today that a mutual solution to the Daniloff case could be found, but declined to be specific. LEHRER: This was primary election day in nine states and the District of Columbia. The mainiattractions were mostly U.S. senate nominations that will set the players for the November general election, when the Republicans' majority control of the Senate goes on the line. President Reaganiused the day to talk about his new drug program with the leaders of Congress. White House spokesmen said the pitcKwas for a plan tha t will be formally unveiled Sunday In a nationally televised speech by President and Mrs. Reagan. The Senate Minority Leader Robert Byrd came out of a White House meeting with less than enthusiastic things toisay. Sen. ROBERT BYRD, Minority Leader: I came away with the impression that the administration doesn't have really any new far reaching proposaSs. I asked a w Ad'

Services of Mead Data Central, Inc. PAGE 194 (c) 1986 EBC & GWETA: A11 Rights Reserved, September 9, 1986 question as to how much the administration's proposals could cost, and the answer was something like a quarter of a billion dollars. It appears to me that's not going to begin to:be enough. LEHRER: A number of congressmen agree the President is not spending enoughh money on the drug war. A House coalition wants to spend $700 million next year. Rep. JIM WRIGHT, House Majority Leader: The bill will approach the job of mobilizing our forces to make an assault on illegal drugs in five separate ways simultaneously. First, to help with tools and equipment to eradicate supplies b©th abroad and'here at home where they exist. Second, to interdict shipments coming into the United States more effectively. Third, better to enforce the laws that exist and some new laws that will help enforcement against laundering of money by drug,dealers. Fourth, and probably here we get the biggest payoff of all, anieducation program. And then, finally, an effort to help rehabilitate those unfortunate individuals who have become addicted to this terrible menace. LEHRER: Afterward, the Senate Republican leader weighed in with a new approach to pay for the war on drugs. Sen. DOLE: One more thing we might do is to have a voluntary checkoff omyour tax return. There's so much interest in the drug problem by people all across the country, we're looking at an optional tax checkoff that we believe woul6 bring in millions and'millions -- hundreds of millions of dollars a year. We certainly are working together. We don't -- we're not throwing any cold water on the House plan. We hope that we can finally get together. HUNTER-GAULT: Under pressure from South African black leaders, Coretta Scott King today cancelled a meeting with that country's president, P. W. Botha. Anti-apartheid activists Alan Boesak and Winnie Mandela had criticized the meeting and said'they would not meet with Mrs. King if it went forward. In a last minute cancellation of the Botha meeting, the w1dow of slain civil rights leader Martin King, Jr., said that she needed more time to acquire a better understanding of the complex problems in South Africa.Meanwhile, the South African government executed three black guerrillas convicted of murder. Chie had been found guilty of the December bombing at a shopping center near Durban in which five people were killed and 48 others wounded. The other two had been convicted of killing a suspected government informant. The men, members of the outlawed African National Congress, were hanged after refusing to seek clemen cy. Archbishop Desmond Tutu said he was surprised by the government's action. Archbishop DESMOND TUTU: I would have thought that with our situation as tense as it is, a conciliatory move on the part of the government would do a great deal to create a climate that would make people a little more responsive to wanting to negotiate. LEHRER: Also overseas today, Chile's President Augusto Pinochet declared war against Marxism. He said, °The war is going to start from our side." Pinoche t spoke before attending the funeral of five bodyguards who died when his motorcade was attacked Sunday. Also, the editor of a magazine banned by the government was found dead today. He was taken from his home yesterday by unidentified men who claimed they were police officers. Police officials today denied involvement in the killing. tct ~ ~r IS 0 REJiIS OLEz IS OUEXES 0

Services of Mead Data Central, Inc.. PAGE 195 (c) 1986 EBC & GWETA. All Rights Reserved, September 9, 1986 And in Israel, officials said a summit meeting with Egyptian President Mubarak was cancelled. Mubarak and Israeli Prime Minister Shimon Peres were to meet thils weekend. An Israeli spokesman said i't was called off after a failure to settle a longstanding border dispute. HUNTER-GAULT: And finally in the news, Delta Airlines agreed to acquire Western Airlines for $860 million. If the merger goes through, Delta will become the second largest passenger carrier in the country. Still ahead on the News Hour, who are the Islamic Jihad kidnappers, and~why are they striking now? Two U.S. senators talk about how their first visit to South Africa affected their views. And we find out about the high stakes in the upcoming '86 elections. Sou th Africa: Confronting Apartheid LEHRER: Now a Senate debate about South Africa. Not between two longtime experts on, frequent travellers to or noted cause leaders about South Africa:, but between,two United States senators from different poles of U.S. politics who just returned from their respective first visits to that strife-torn nation t hat has suddenly become so prominent in their worlds as United States senators. They are Senators Frank Lautenberg, Democrat of New Jersey; and Orrin Hatch, Republican of Utah. First, gentlemen, let me establish before we get to the debating, establish where you stood on your views toward South Africa before you left. Senator Hatch, how about you? What was your view on sanctions? How did you vote, etc? Sen. ORRIN HATCH (R) Utah: Well, of course„ something has to be done abou t apartheid. It is a bad practice, and we all admit and agree with that. But I have not been for punitive sanctions, such as advocated by Senators Kennedy and Cranston and congresspeople in the House. But I did vote for the limited sanctions, the modest sanctions, for the purpose of sending a message and, of course, doing what we can do to prod the South African government into making the necessary reforms. LEHRER: That's where your views were before you went. All right, Senator Lautenberg, how did you feel before you went? Sen. FRANK LAUTENBERG, (D) New Jersey: Well, I went with somewhat of a bias, but I was willing to find out, see if what was being said was true. I voted f of sanctions. I even voted for harsher sanctions. And I did it with -- tn ,., LEHRER: For the Kennedy bill. Sen. LAUTENBERG: For the Kennedy, for the Cranston proposal. And I woul& support harsher sanctions. And I did i't with some considerable isgiving, I must tell you. I come from,the corporate world. That was my experience before. And I know:a lot of corporate leadership in the country, particularly in my state, where there are installations in South Africa. And they are good companies. These are companies that are very progressive, that have worked hard to advance the black individual working there and have contributed to schools and so~forth. But after searching for another way to get this message across, which I think is essential for the United States at this point -- the moral message -- there was no other way. And I went to talk to people to see if L '~ ® '~ .r!E X I Z ® L EXI 3 " K EZ" 13

Services of Mead~ Data Central, Inc. PAGE 196 (c) 1986 EBC & GWETA. All Rights Reservedy September 9, 1986 they had anything else to say. LEHRER: All right, now let's -- both of you went. Who did you talk to, Senator Hatch? Sen. HATCH: Well, I chatted witKan awful lot of government leaders, from P. W. Botha to members of his party to the finance minister, the minister of edu cation, to a number of progressive party leaders who, of course, have been fighting apartheid for a long time. I met with black leaders, I met with Chief Buthelezi, who is the chief minister of the Zulu tribe,, the largest black group in all of South Africa -- 7 million of them that he presides over. I met with a number of black businesspeople, eight black union leaders, and very small buslnesspeople, and people who work for -- blacks who work for -- and Indians and coloreds -- who!work for -- as they call them over there -- who work for the American companies. I also met with the people who monitor the Sullivan principles that Americam companies have subscribed to and'learned quite a bit from them. I met with others as well. LEHRER: All right. Now, who did you talk to, Senator Lautenberg? Sen. LAUTENBERG: I met with quite a few people from the black community, including Bishop Tutu!. I attended his last service as a bishop before he was Installed as archbishop. I met with white businesspeople. There are no black businesspeople to speak of. I met with Dr. Motlana, who is a prominent physician who deals very much with the social issues concerningi the Soweto community. I was in Soweto. I went to church where Tutu preached his last sermon. I was in Crossroads. I've talked to the orginary people, the squatters. I've talked to people from business. I've talked to people from the university, from the Afrikaans University, Stallenbasch. I've talked to the president and director. I've talked to three eminent professors. I've talked to people who were in the progressive party who have resigned'from the party because they felt the parliament was absolutely ineffective. I spoke to Helen Suzman, who has a long!record of opposition of apartheid. I met with the defense minister, who was the only minister they could kind of squeak out for me to see.I wasn't particularly interested in meeting Mr. Botha, because I'd gotten his message very clearly from the South African embassy before we left. LEHRER: All right. Now, what happened to your views, if anything -- Senato r Hatch, to you first -- as a result of your visit? Sen. HATCH: We1L, I was amazed really at how little support the re is f or sanctions, and especially disinvestment, on the part of any black Africans, as ~ well as all Africans -- whites, coloreds, Indians and blacks. As a matter of Q fact,, I did meet with some black small businesspeople who do owrt their own ~ businesses. There aren't very many. I have to admit that. And to a person, N almost all of them were totally against any type of sanctions. They feel that ~ the sanctions approach has been somewhat counterproductive. They kind of have ~ been developing a siege mentality over there in the government, and even:i'n the ~ non-government circles -- that basically they think sanctions are going to come. N They're taking the attitude, "It's us against the world."'And what has really ~ been a remarkable series of reforms -- not enough, but nevertheless significan t ~ reforms for the last number of years -- they've basically been coming to a halt. and it's a very serious problem. So I have real misgivings as to whether sanctions are going to be productive or counterproducti've -- even moderate sanctions. But somethzng has to be done. Apartheid'is an evil practice. It ® ® ® '~ ~ ®

Services of Mead Data Central! Inc. PAGE 197 (c) 1986 EBC & GWETA. All Rights Reserved, September 9, 1986 is something that has to be -- has to be pushed out. LEHRER: Well, are your misgivings such, Senator, that if you had to vo te again, you would not vote even for the limited sanctions that the Senate passed? Sen. HATCH: Well, I do believe something has to be done, but I think to go beyond the limitedy tailored sanctions that we have is a mistake. But I think what really needs to be done is I think -- you know, I had an amendment to the Senate sanctions bill that woul6double the amount of money to g4Q million that would really go to help with vocational education, with free trade unionism, with training black leaders and helping small businesspeople and helping them to grow and progress andito bring about positive change. And one of the things that I found over there, and it was significant to me, is that from P. W. Botha to the very liberal progressive party leaders, they basically said, "Look, we -- LEHRER: The white leaders? Sen. HATCH: White leaders and black leaders. And black leaders. Buthelezi Is totally oppose6to apartheid -- Chief Buthelezi, the chief of the Zulu Indian -- the Zulu tribe, I should say -- but he doesn't want sanctions, because he feels blacks are the people who are going to be hurt. And what they said to me is they said, "l:ook,, you Americans are treating this like an American civi'1 rights controversy. This is very complex." It is complex. It isn't just like an American civil rights controversy. It's a lot more complex than that. And they said, "Look, what we need is we need positive assertions. Tell us what you would like us to do, so that we can at least points towards that, and we'll do something about i't."' Chief Buthelezi, for instance, convened:an Indaba -- an Indaba of all the black leaders and other leaders throughout his area, his province. And what they di6is they came up with a bill of rights that really is remarkable. He's talked about executive power sharing. And he's doing some very constructive things. They're almost completely ignored by the international media in their devotion to Bishop Tutu, Boesak and the African National Congress, which are the more radical sections of South Africa. LEHRER: Senator Lautenberg, what did you find, if anything, that surprised you or caused you to change your views on things? Sen. LAUTENBERG: Obviously, I differed with my distinguished colleague's view on things. I hardly spoke to a black person, including Bishop Tutu -- I'm talking;about people in responsible positions of leadership -- who didn't cry out for sanctions -- cried out for something to make a difference. Yes, I met Buthelezi too, and he was opposed to sanctions. But there's a question about what his role is in this whole thing. And though he's purported to represent 6 million people in the Zulu tribe, there's a question of how deep his support is. He i's a lovely gentleman. I didn't hear him offer any solutions. As a matte r of fact,, when I spoke to responsible businessmen, including the chairman and chief executive of Anglo American and other high level businesspeople, they said, "Well, we disapprove of sanctions." Then I'd say, "Well, what's the alternative? What do you offer?" There's nothing. Just silence. "Well, give this thing a chance to work out." An6they talked, as Senator Hatch said, about the remarkable progress. All you have to do i;s look at how people are required to live. I don't care how successful a black person is; he goes back into that dungeon when his day's work is done. fmell I ~°!EJ2S :"'LEXIS'A''E MEES

Servicss of Mead Data CentralJ Inc: PAGE 198 (c) 1986 EBC & GWETA. All Rights Reserved, September 9, 1986 LEHRER: Was that worse than you expected? Sen. LAUTENBERG: Far worse. LEHRER: Was it? Sen. LAUTENBER6: Far worse. It's inhuman. It truly is. Where people are, if they live in a so-called house, it might be a two room house or a four room house. Whatever size it is, it's totally inadequate. No plumbing, with rare exception, no electric, no heat, no sanitation facilities. It's disgraceful. And I was with people who were willing to squat under the very nose of the administration, because they said, "They have to understand -- they the white government - that we are going to stay here, and we're going to live here, and we're going to resist." And these are not vengeful nor violence-bent people.` ' LEHRER: Senator Hatch, how about you? You clearly must have had something in your mind, as we all would, as to what you expected to see about what the lif e of a black is in South Africa. How didlit strike you? Sen. HaTCH: Well, I actually went into the worst war-torn part of all South Africa, according to them, and that was Alexandra. It was -- it was pathetic. It was a very -- they were very hard living conditions. We went out to Chief Buthelezi's region, and I differ with my good friend Frank Lautenberg, because he has done some very positive things.He not only presides over 7 million Zulus, but he did:convene an indaba -- or a convention. He did'bring these people together. He did come up with a bill of rights. He has made a suggestion on how to power share. He is a remarkable leader. But before him, since he's beenn against apartheid', before he was the most publicized man in many ways in Sout h Africa, but when he came out against sanctions, he's been basically ignored, even though he probably represents the biggest constituency. Now, one thing I did find that was amazing to me is that I -- you know, I admire Bishop Tutu as a human being. He's humorous, he's articulate, he's bright. There are a lot of good things about him. But I found very little support -- constituent support -- for Bishop Tutu over there. LEHRER: And -- Sen. HATCH: Let me just say this. LEHRER: Sure. Sen. HATCH: Bishop Tutu has an international media constituency, but he did not have among black religious leaders that we met wi'th, among; many other leaders throughout the country, he did not have the support within the country that the, I think, international press leaves the impression that he has. LEHRER: Did you find that to be the case? t2t Sen. LAUTENBERG: No, not at all. Sure, there are some doubters. But basically, through the black community, Bishop Tutu, among other leaders -- it's not a monolithic community. There is no single person that has a command -- Buthelezi included. There's Mandela, respected, by the way, I must tell you, among many whites as well as the blacks -- a leader who is rotting in jail and doing the white cause more harmithan good. The ANC will be driven to full communism i'f we continue our resistance to it. We had one of our ambassadors ® ® ®® ~~ LEi ~Ig `~~ ~ ~ ~ Tr~, . ~ iV ~i~~ Il~ii~~Y~~ ®

Services of Mead Data Central; Inc. PAGE 199 (c) 1986 EBC & 6WETA. All Rights Reserved, September 9, 1986 meet with these people. They want to make change. They want to make it at a reasonable pace. The white community is absolutely resisting any change. And i'f you saw~the emergency rules that they have -- you can be arrested for now cause at all, not charged, withheld typically in solitary confinement. I have a newspaper here. It said, "Children jailed for public violence." The judge said these people are, for the purposes of sentencing, are first time offenders, a nd they sentenced 13 year olds to ten years In jail. LEHRER: Finally, in a word, Senator Hatch, do you want to go back sometime? Sen. HATCH: I think it's worthwhile for us to go back. I think i'f more members of Congress were to go back, they would realize how counterproductive these calls for punitive sanctions really are. And I think -- I think really we can do many more constructive things that would help there and get rid of apartheid. LEHRER: Senator Lautenberg? Sen. LAUTENBERG: I was totally depressed by the circumstance iniwhich 22 million or 24 million blacks are asked to live. I don't want to go back to t hat country'until there is positive change being made. Right now it's an animal house. These people are caged. They're kept under wraps, and it's not a pla ce for us to be visiting. LEHRER: Gentlemen, thank you both very much. South Africa: Skirting Sanctions HUNTER-GAULT: As politicians around the world debate what sanctions their governments should apply to South Africa, South! Africans themselves a re figu ring out ways to get around any new sanctions that may be imposed. James Robbins of the BBC tells the story of these sanctions-busters. JAMES ROBBINS (voice-over): The story of Armscor is becoming well known -- Armscor, the state arms corporation which reacted to the United Nations eeba rgo an weapons sales to this country nine years ago by going it alone. (clip from Armscor film) Announcer: It's been a long, hard slog countering external pressures and a United Nations imposed arms embargo. And though much of what we use along ou r borders still comes from abroad, a great deal i's now being manufactured or assembled locally. ROBBINS (voice-over): And the story of Armscor is the best clue how South Africa means to beat wider trade sanctions.Before the 1977 arms embargo, South Africa was genuinely self-sufficient only in small arms and ammunition; reliant on the outside world. Now Armscor is a major weapons exporter. Research, adaptation of foreign product and secret deals overseas have pushed Armscor into the big~league, now considered among the top ten arms producers in the world. State President P. W. Botha was proud to unveil a fighter to match Soviet aircraft in the region -- South Africa's update of the French Mirage, the Cheetah, a fierce, hybri6animal born of adversity, bearing~its own message to the world. L I ED 2 9 " ~ ,~ e r ~ Z * L E r 13-

Services of Mead~ Data Central, Ina PAGE 200 (c) 1986 EBC & GWETA. All Rights Reserved, September 9, 1986 P. W. BOTHA, president, South Africa: The Cheetah demonstrates, once again, our response to the imposition of sanctions against us. If it is expected of us to forego other essential goods which we can not manufacture or build, let us obtain it by exploiting the self-interests of others. ROBBINS (voice-over): Self-interest. Conventional businessmen know if they are forced to give up a deal under pressure of sanctions, someone else is always waiting to step in. KEN OWEN, editor, Business Day: I do believe that we are going into~an era of surreptitious trade, of smuggling, of dummy companies and false bills of lading, false certificates of origin. I think a great many people, and most of them. crooked, are going to make an enormous amount of money out of it. ROBBINS (voice-over): And they are the sanction-busters, trading in the shadow of international disapproval, secrecy their great protection. This little man works from home and reckons there are 100 others like him, buying and selling for clients worldwide, disguising the true origins of South Afi rica's exports, the true destination of her imports. This promises to be a booming, high tech, cottage industry. All you need: a computer linked to a telephone, a range of offshore bank accounts, and':perhaps a map of the world. South African trader: Traders are not politicians. Their job is to buy goods and supply goods to everybody's advantage. How else do we eat? ROBBINS (voice-over): Working, in favor of the sanction-busters, dozens of South African ports, large and'small, scattered along 2,000 miles of coast. T& most, a naval blockade i's unthinkable. Add to that the hunger of shipping companies in recession saddled1with massive over-capacity, and business -- any business -- is welcome. Shippers find it easy to cover their tracks. Cargos can be sold'between nations several times while still at sea. South African~trader: Probably the goods would be sent to, let's say, the likes of Russia, Madeira, transshipped, put onto different vessels. Letterheads, Invoices and so on would be prepared. A Mickey Mouse country of origin would'be devised, and it's safe and away. ROBBINS {voice-over}: But working against the sanction-busters, some commodities har6toadisguise, like coal. Laboratory analysis can quickly isolate Its true country of origin. Last year's coal exports, 44 million tons -- almost a billion pounds in foreign exchange -- could be cut in half, threatening the jobs of 30,000 to 40,000 mine workers. ~ 0 ~ {on cameral Some boycotts will be hard to beat and will do South Africa real this country knows how Rhodesia weathered sanctions over 14' harm. But still N ~ , years -- as long as it enjoyed South African support. And now the Rhodesian ~ experience can be put to work here. Pat Corbin was Ian Smith's big ~. cynical about the choice now ready and waiting in Johannesburg sanction-buster ~ , , of commodities targeted by the West. CAI ~Z PAT CORBIN, chamber of commerce: And there's a matter of trading advantages in the sanction business. You must question the reasons, particularly Australian and Canada. I mean, they aren't the front there, but they're going to benefit., But of course, they play very low key when they're trying to sel l us wheat shipments. You prabably understand that, don't you. nE ~rX ^P 7 2.'6S,'L I_T rrj-C 'F.!'1, ~ WE ?,'ES' iirr

Services of Mead Data Central, Ina PAGE 201 (c) 1986 EBC & GWETA. All Rights Reserved, September 9, 1986 ROBBINS:' No, I don't. Mr. CORBIN: Oh, yes. If they've got a cargo that they want to sell to us, they make perfectly sure that sanctions don't apply to that particular commodity. ROBBINS {voice-over}: The sanction-busters both enjoy and despise politics, believing their first law, supply and demand, will triumph i'n the end. A shadowy trader cites one of his recent deals: a shipment of South African sorghum seed for the Marxist government of Ethiopia, ravaged by famine, but ideologically dead set against such a trade. It was done like this: the money from a North American relief agency was laundered through Europe and sent to South Africa.The grain was shipped direct from the South African port of Durban, only the paperwork was doctored to make it look as though it came from Marxis t• Mozambique. Did the relief agency know what,was going on? Of course, says the trader. South African trader: They were aware of the truth, but they wanted'to get this seed to Ethiopia, and therefore they went along with the slight bending of the rules. Most of them, thank God, are pragmatists and not politicians. Mr. CORBIN: We will not have any difficulty at all. I have no doubt about that. And we will be able to select the origin of the goods, the type of the goods, exactly what we want. If one's got money, one can buy anything. Holy War HUNTER-GAULT: Terrorism~and kidnappings continue to dominate the news today. Frank Reed, that American kidnapped in Beirut, was abducted as he was drivingm from his home in Moslem West Beirut to play golf. A group calling itself the Islamic Jihad or Holy War has claimed responsibility. Calling Reed a new agent for American intelligence, the group said he was arrested in West Beirut withh documents that indict him. That brings to five the number of Americans believed held'by the Islamic Jihad. The others include journalist Terry Anderson, American University Hospital director David Jacobsen, and American Unilversity agriculture dean, Thomas Sutherland,. The Islamic Jihad'has claimed that they executed a fifth American captive, diplomat William Buckley. The body has ne ver been found. Today's kidnapping brings back into focus questions that we pursue now with a Middle East watcher. She is Raghida Dergham, a New York correspondent for the London-based Middle East magazine. Raghida, just who is the Islamic Jihad? RAGHIDA DERGHAM, Middle East Magazine: That is the question everybody is trying to answer. It is a shadowy organization, after all, and we don't know the identify of this Islamic Jihad organizati'on. It could be sub-organizations, It could be front for other organizations. And It's widely associated with t he Shi'ites of Lebanon, but it does not represent all the Shi''ites of Lebanon. There are other organizations, amongst which Amal Is probably the most famous to you. Dnsofar as they do have a relationship with the Shd'ites of Lebanon, I'd like to point out a little bit -- a very short history of the fact that the Shi"ites had been underdogs in Lebanon, and they had suffered a lack of recognition. They looked for identify in other places, such as Iran, because they lacked it in Lebanon. They have -- a majority or a great number of the Shi'ites lived in Southern Lebanon, whereby they'd been exposed to consistent L LEK-, 13 ®k- rEZIS ®LEJiiS ®KEl U