At the beginning of the World Summit on Sustainable Development Heads of Government meeting, the SACC General Secretary presented the Swedish Prime Minister's Senior Policy Advisor, Mr. Roger Hällhag, with a memorandum concerning South Africa's option to purchase 19 JAS 39 Gripen fighter jets. A Swedish translation of the following letter, based on the SACC memorandum, was published in the Swedish newspaper, Göteborgsposten, on 3 September 2002.

You have a special place in our hearts. Throughout the terrible years of apartheid oppression, Sweden’s people stood in solidarity with South African churches, labour and other civil society organisations, giving moral and material support to those who were struggling for liberation. You joined us in celebrating South Africa’s transition to democracy and have invested generously in the reconstruction and development of a new South Africa.

With the demise of apartheid, we have had to face new challenges to our security and well-being. The economic violence of apartheid policies left a vast gulf between rich and poor, making South Africa one of the most inequitable nations on earth. A majority of our population lives in poverty. The HIV/AIDS pandemic is killing our people at an alarming rate. Today, these crises constitute the greatest threats to the survival of our young and still fragile democracy.

In 1999, the South African government signed contracts with European armament manufacturers to purchase a range of sophisticated new weapons, including 28 Saab JAS 39 Gripen fighter jets. The national governments of the tendering firms played a pivotal role in securing the contracts. They promoted the weapons, arranged trade and investment offsets to act as incentives, and extended the loans and export credit guarantees necessary to enable South Africa to finance the deal.

In the three years since the deal was completed, a dramatic depreciation in the value of South Africa’s currency together with cost escalation clauses in the contracts have combined to nearly double the cost of the package. According to the South African government team that originally assessed the impact of the purchases, only about 30 per cent of the deal can be financed from the national defence budget. The rest must come from other departments. There is thus a real danger that the acquisition of these weapons will further strain our capacity to combat poverty and HIV/AIDS.

Fortunately, portions of the weapons package were optional. In particular, the contract for the Saab JAS 39 Gripen fighters allows the South African government to cancel its order for 19 of the 28 jets until 2004, supposedly without penalty. However, the price of the nine Gripens in the initial batch has been inflated considerably. As a result, the South African government would be faced with the dilemma of justifying the very high unit cost of the fighters if it decides to decline the discounted weapons in the second tranche. Furthermore, given South Africa’s desperate need for jobs and investment, the government may be reluctant to lose the countertrade and investment incentives attached to the arms purchases.

We therefore appeal to the government of Sweden to ensure that the people of South Africa will not be penalised if the South African government declines its option to purchase additional Saab fighters. We urge the Swedish government to work with the vendors to find a way to refund the premium paid by South Africa on the first nine fighters if it decides not to make further purchases. We would also ask Sweden’s government and industry to demonstrate their continued commitment to South Africa’s development by honouring the civilian trade and investment agreements associated with the arms deal, regardless of what decision is made concerning the optional purchases.

We are eternally indebted to the Swedish people for their solidarity with us during the darkest hour of our history. We shall remain always your most valued friends and partners in the global struggle for a just, peaceful and more humane world.

Rev. Dr. Molefe TSELE
General Secretary
South African Council of Churches

Cde. Zwelinzima VAVI
General Secretary
Congress of South African Trade Unions

Cde. Abie DITLHAKE
Executive Director
South African NGO Coalition