RECENT TRENDS IN SOUTH AFRICAN ARMS PROCUREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001700040034-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 20
• Document Creation Date: December 20, 2016
• Document Release Date: March 30, 2006
• Sequence Number: 34
• Publication Date: October 1, 1972
• Content Type: IM

 DIRECTORATE OF
INTELLIGENCE
Secret
Intelligence Memorandum
Recent Trends in South African Arms Procurement
Secret
ER IM 72-151
October 1972
copy N2 64
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CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
October 1972
INTELLIGENCE MEMORANDUM
RECENT TRENDS IN SOUTV AFRICAN ARMS PROCUREMENT
Introduction
1. As an aftermath of the indiscriminate killing of black
demonstrators by the South African police, the United Nations imposed
in 1963 an arms embargo against South Africa. The United Kingdom, which
had been South Africa's major supplier of arms, decided to honor the
embargo except for existing commitments. Thus South Africa was faced
with the loss of its traditional sources of supplies at a time the government
was concerned about domestic racial violence and the possibility of
intervention by other African states.
2. Pretoria's reactions were two-pronged: (1) a drive to establish new
foreign sources of arms and (2) an expansion of South Africa's capabilities
to manufacture war materiel. South Africa's countermeasures to the
embargo have proved highly successful. France moved quickly to capture
the market vacated by the British, justifying its ignoring of the embargo
on the grounds that the French arms being supplied were not suitable for
repressing South Africa's blacks. Thus France has provided South Africa
about US $180 million of arms since 1963 (compared with UK deliveries
of some $95 million). In addition, about $40 million of arms have been
obtained from other foreigi sources. With these purchases the South African
military has developed a balanced inventory of advanced weapons, including
jet fighters, helicopters, submarines, and armored vehicles. Furthermore,
South Africa's defense industries have been successfully expanded so that
today they now provide about 70% of the country's overall defense
requirements. This memorandum reports on South Africa's arms
procurement over the past decade and details the success that has been
achieved in developing its munitions industries.
Note: This memorandum was prepared by the Office of Economic Research
and coordinated within CIA.
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Security of the White Redoubt
3. South Africa, bound culturally and historically to the Western
community, found itself increasingly isolated in the early 1960s because
of its policy of apartheid. Threatened internally by racial strife that had
exploded in major clashes at Sharpesville and Paarl, South Africa considered
itself also threatened from without by the African states that had recently
won independence. These nations were calling for blockades and invasion
of white-dominated South Africa. Protracted insurgencies in the neighboring
Portuguese territories and instability in Rhodesia also were viewed as
potential threats to South African security. One reaction was Pretoria's
collaboration with Lisbon and Salisbury, demonstrating its determination
tc maintain buffer areas against a hostile black Africa.
4. Pretoria perceives as its major security problem the need to
control its large, potentially hostile, non-white population and to prevent
its subversion by externally supported forces. Second, Pretoria has long been
concerned about the need to control its strategic coastal waters. To effect
its security policy after the UN embargo, the South African government
devcloped new sources of arms, accelerated its arms purchases, expanded
its own defense industries, and strengthened its armed forces.
Arms Procurement - An Ineffective Embargo
5. South Africa has imported almost $485 million of military
equipment since 1953 (see Table 1). Almost two-thirds of the total was
delivered after 1963, although some $90 million provided by the British
during that period was contracted for earlier. When the British stopped
selling arms to South Africa in 1964, France cornered the market. French
sales of more than $200 million during the past decade enabled South
Africa's military establishment to re-equip by replacing British we^ponry
of World War II vintage with supersonic jet fighters, jet transports,
submarines, and anti-tank and surface-to-air missile systems to achieve a
highly mobile, well-armed modern armed force.
The United Kingdom - Off, Then On Again
6. Until the United Kingdom agreed to honor the UN arms embargo,
it was South Africa's chief source of arms and training. During 1954-63,
South Africa had imported about $125 million of arms from the United
Kingdom, including eight Shackleton reconnaissance aircraft, nine Canberra
bombers, 16 Buccaneer strike jets, three antisubmarine warfare destroyer
pIr
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Deliveries of Military Equipment to South Africa
Million US $
United
United
Year
Total
Kingdom
France
States b
Canada
Italy
Other
1954-71
483.0
219.7
188.8
46.9
14.0
7.3
6.3
1954-63
165.0
124.4
7.8
24.0
3.7
0.2
4.9
1964-71
318.0
95.3
181.0
22.9
10.3
7.1
1.4
1964
16.7
12.5
2.3
1.8
0.1
-
-
1965
66.7
46.0
16.6
2.2
0.5
-
1.4
1966
56.9
29.5
19.7
3.1
1.8
2.8
-
1967
14.5
-
11.0
1.9
1.1
0.5
Negl.
1968
16.4
-
6.0
3.7
3.7
3.0
Negl.
1969
34.3
-
27.7
4.4
1.9
0.3
Negl.
1970
56.1
4.0
47.6
2.8
1.2
0.5
Negl.
a. Actual deliveries, as opposed to arms sales and aid agreements. Arms manufacturing machinery
W^.d licensing agreements are excluded from this table.
b. US data are for fiscal years and do not include commercial sales prior to 1963.
escorts, and five Wasp helicopters. At least $50 million of the total delivered
was for ships turned over to South Africa as part of the Simonstown accord,
which also provided for South African takeover of the previously
British-owned naval bases at Simonstown.(1)
1. A large share of the arms Pretoria procured from the United Kingdom was obtained
through the 1955 Simonstown agreement under which London agreed to continue
providing arms to South Africa in return for access to the Simonstown naval base.
The base, near Capetown, was established by the British in 1795.
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A Hawker Siddeley Buccaneer Strike Aircraft of the South African Air Force Carrying
Four NGRD AS-30 Air-to-Surface Missiles
A Sout:i African Navy Westland Wasp Helicopter Aboard an Antisubmarine Warfare
Frigate
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7. In late 1963, London notified Pretoria that it planned to abide
by the UN embargo but would honor its outstanding c^mmitments, which
then totaled about $90 million. These deliveries were completed in 15156.
Although Pretoria considered London's action a violation of the 1955
Simonstown agreement, South Afr;ka did it abrogate the accord. Limiter
naval cooperation between the two countries continued, and the agreement
was renegotiated in 1967.
8. After the Conservatives came to power in 1970, the Heath
government relaxed its arms ban and opened negotiations for the sale of
seven Wasp helicopters sought by Pretoria. Later, London agreed to sell
not only the seven helicopters, but also three Hawker Siddeley HS-125 jet
transports and a p:irol rescue boat(2) (see Table 2). The $10 million of
equipment was purchased from private companies and financed
commercially. London claimed that the equipment was not "offensive arms"
and thus did not violate tile UN embargo.
France - A Ready Seller
9. In the decade before the UN embargo, France had sold South
Africa less than $8 million in arms In 1965 alone, deliveries had reached
$17 million and by 1971 had jumped to $50 million.
Recent British Arms Sales to South Africa
Year of
Agreement
Million
US $ Type of Equipm
ent
Total
9.9
1969
4.0 4 HS-125 jet transport air
craft
1970
0.2 1 AGS hydrographic surve
y ship
1971
2.4 7 Westland Wasp maritime
helicopters
1971
3.0 3 HS-125 jet transport air
craft
1971
0.3 1 YP patrol/rescue boa'.
2. Four HS-125 transports and a survey ship were sold in 1969 and 1970, but London
claimed they were for civilian use.
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Year of
Agreement
Million
US $
Type of Equipment
Total
210.2
1963
5.6
14 Mirage III jet fighters
1964-68
N.A.
AS-20, AS-30, Entac, and
1965
44.0
SS-11 missiles
26 Mirage III jet fighter/bombers
1965
0.1
200 Brandt light mortars
1967
44.5
9 C-160 TRANSALL turboprop
1967
0.5
tray sport aircraft
Antiaircraft fir. control units
1967
9.0
96 Matra 530 antiaircraft air-
1967
33.6
'to-air missiles
3 Daphne-class submarines
1967
16.0
16 Super Frelon helicopters
1968
8.0
32 Alouette helicopters
1968
18.0
20 AS-330 Puma helicopters
1968
2.0
ATAR motors and parts
1968
0.9
250 Panhard motors
1969
6.0
120 torpedos
1969
20.0
2 Cactus surface-to-air missile
1970
2.0
batteries
8 Alouette helicopters
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10. Aircraft, including 11CliCOptCIS, have accounted for about 65% of
totai South African purchases from France. The South African air force
received some 40 Mirage III aircraft from France for about $50 million,
the first African nation to acquire supersonic aircraft. Virtually all aircraft
missiles imported by South Africa have been obtained from France. These
include 68-mm and 37-nim SNEB rockets, NORD AS-20 and AS-30
air-to-surface missiles, and Matra R-530 air-to-air missiles.
South African Air Force Mirage III Jet Fighters
I1. Pretoria has procured about $42 million of naval vessels and
equipment from France since 1966. About $8 million worth of Alouette
helicopters were obtained in 1968 for search and rescue operations. Three
Daphne-class submarines purchased in 1967 for about $34 million were
delivered in 1971-72. French-designed radar equipment is being fitted to
British-built warships, wid Pretoria is negotiating for as many as 12 French
Brequet Atlantic twin-turboprop maritime patrol aircraft.
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A South African Naval Daphne-Class, Diesel-Electric Powered Medium-Range Submarine
12. More than W70 million in ground forces equipment was procured
during 1968-71. The South African army used French Panhard armored
cars; TRANSALL transport aircraft; and Puma, Super Frelon, and Alouette
helicopters and is armed with French-designed mortars, rifles, and NORD
SS-11 and Entac wire-guided antitank missile systems. The two countries
maintain a personnel exchange program, and a few senior military personnel
attend the French military staff college in Paris.
Other Sources of Arms
14. South Africa has purchased nearly $100 million worth of military
equipment from other countries since 1963 (see Table 4). The terms of
repayment me believed to be similar to those of the French, about seven
years at 4%-7% interest. Purchases have consisted largely of electronic
equipment, spare parts, support equipment, motors, and some aircraft.
8
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Other Arms Sales to South Africa
Year of
Agreement
Country
of Origin
Million
US $
Type of Equipment
Total
99.9
1964-70
Canada
10.3
Spare parts and ammunition
1964-71
United States
22.9
Primar'ly commercial sales
1967
Italy
1.2
of spare parts
Parts for Viper motors
1967
Italy
2.1
Parts for jet transports
1968
Italy
1.4
9 Piaggio 166M tactical
1970
Italy
1.5
transport aircraft
11 Piaggio 166M tactical
1971
Italy
0.5
transport aircraft
40 Aerfer-Aermachi AM-3C
i 972
Portugal
60.0
spotter aircraft
6 guided missile corvettes
(light frigates)
Entac Antitank Missile Leaving Its Container-Launchers on a Jeep
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15. Although the US government has honored the embargo - there
have been no official US sales o" weapons since 1963 - almost $23 million
worth of US equipment has been sold since 1963. Some 90% has been
obtained from private arms dealers, primarily spare parts, aircraft engines,
and support equipment. Prior to the embargo, seven C-130 transport :nd
200 AIM Sidewinder missiles were purchased.
South African Naval Torpedo Recovery Launch
An Impala Jet Trainer Aircraft of the South African Air Force
Manufactured in South Africa
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16. Canada has provided some $10 million of arms, mostly spare parts
for F-86 Sabre jets, and ammunition. Although Canada officially adheres
to the embargo, it has sanctioned these private sales. Italy has sold some
$7 million, mainly 20 Piaggio 166M reconnaissance/transport aircraft and
40 AM-3C light spotter aircraft. Six guided missile corvettes have been
purchased from Portugal for some $60 million, and West Germany, Belgium,
and Switzerland have provided small quantities of vehicles, small arms, and
ammunition.
Domestic Arms Production
17. The arms embargo spurred South Africa into a rapid expansion
and diversification of its arms production facilities to reduce its dependence
on foreign procurement. Producing little more than small arms and
quartermaster supplies in the early 1960s, South Africa's arms industry now
meets most military needs. The precise magnitude of domestic arms
procurement cannot be ascertained, but Pretoria indicates that domestic
procurement in 1971 accounted for about 70% of total military
procurement, compared with 20% in 1966.
18. The industry produces a wide range of communications and
ground forces equipment - including cannon of 20-mm to 260-mm
caliber - ammunition, bombs, armored cars, subsonic jet aircraft, radars,
missiles, and some naval craft. Pretoria's nascent aerospace industry meets
about half of the country's needs for civil and military aircraft and
eventually will produce supersonic aircraft and surface-to-air missiles. The
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main center of ordnance production is the factory at Tythelton near
Pretoria. The Sustral Engineering Works at Bohsburg assembles all armored
vehicles, and most aircraft are produced at the Alias aircraft plant near
Johannesburg.
19. South Africa also is developing most of its defense installations
and has begun building small naval craft. A $64 million Northern Air
Defense Sector early warning radar facility being built at Devon is linked
by computers to radar stations along the Botswana border. A $16 miiilio;,
naval commr,iications system is under construction near Capetown.
Pretoria recently produced ts first medium-size operational ship, a 122-foot
torpedo recovery launch. Srr aller naval vessels have been built or refitted,
such as harbor tugs and a 53-foot training craft. Some ship conversions
also have been completed such as the conversion of a tanker to a
replenishment oiler of some 18,000 tons.
20. South Africa has developed a number of weapons of indigenous
design, including the world's largest tank recovery vehicle, an armored
personnel carrier, an antitank mine, canister-shot mines, napalm bombs made
entirely from domestic ri~w materials, a new lightweight transmitter/receiver
communications assembly, a radio beacon for paratroops, and a night sight
for rifles. An advanced system for identifying aircraft is being developed
along with a ground support aircraft.
21. The development of Pretoria's defense industries has been
facilitated by licensing arrangements with West European suppliers.(3) By
1966, Pretoria had acquired 127 licenses under which it w:'.s producing 140
different types of ammunition, bombs, rockets, infantry weapons, and
armored vehicles. Most of the military aircraft being produced are
Italian-licensed Impala Iis, a subsonic jet trainer which can be fitted with
light armament for tactical use. About 175 of these have been produced,
including 66 purchased as major components. Pretoria is manufacturing an
improved version of the NATO, 7.62-mm FN automatic rifle under Belgian
license.
22. France, however, is the primary licensor and is assisting South
Africa to develop sophisticated equipment. The first accord was signed in
1961 to assemble Panhard armored vehicles. A modified version - the
Eland - subsequently was developed by South Africa.
23. Under some $120 million of accords signed during 1964-69, Paris
assisted Pretoria to develop the Cactus/Crotale surface-to-air missile system.
3. Licensing may involve merely assembly rights of components or the provision of
technology, the sale of plant and equipment to manufacture the components, or
development of a weapons system in the licensor country.
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The Cactus Air D~-fensc Missile, Originally Developed as the French Crotale
System, an Effective, Mobile, MI-Weather Surface-to-Air Missile
South Africa initiated the design specifications for the system and financed
a large part of the development and initial production in France. Pretoria
held an option to buy the first ten batteries produced, but may order only
three because of their high costs. Each battery costs some $10 million to
$12 million and includes three acquisition radar units, nine firing units,
72-120 missiles, loading vehicles, and related support equipment.
Furthermore, South African requirements probably will be met by local
assembly with components imported from France. Current French plans
call for this system to be integrated with French :i, defense units. The
United States and Switzerland are testing the Cactus/Crotale, and a number
of other European countries have expressed interest in the system.
24. In 1971, Pretoria signed a $41-78 million licensing agreement with
Paris to manufacture the Mirage III and the newly developed Mach II
Mirage F-1 supersonic aircraft. The agreement calls for the French to build
a facility in South Africa. Pretoria will produce the basic components, but
the aircraft engines and various sophisticated elements will continue to be
imported from France for some years. The French have sent technical
advisers to South Africa and are providing training for local technicians.
Initial South African production of the Mirage III is not expected until
1973. The terms of repayment for this and the Cactus agreements are not
known, but may involve some credits.
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Exports
i5. South African arms exports are still small, and, except for the
arms supplied to r,ther southern African countries, the only other known
deliveries are three T-6 aircraft :n Gabon. In 1971, Pretoria disclosed that
a "substantial foreign order" for about $1.4 million had been received and
that negotiations are and r?r way for an additional $10 million. It is not
known which countries will be supplied, but they probably are Rhodesia
and the Portuguese colonies. It is likely, however, that as South African
production facilities expand Pretoria will seek markets to make the industry
viable.
Impact of South African Defense Spending on the Budget
26. The UN embargo had an immediate impact on South Africa's
defense budget. Defense allocations rose from an average of about
$80 million a year during 1954-63 to $375 million in 1964 (see Table 5).
They also rose in subsequent years, reaching a peak of nearly ;n470 million
in 1972.
27. Despite its growth, defense spenuing has not had any perceptible
adverse effects on South Africa's economy. Defense expenditures have never
exceeded 20% of the total budget and their share has declined sharply since
1966. As a percent of gross national product (GNP) they have averaged
2.7% during 1964-71, well below the peak of 3.6% in 1964.
28. Direct military procurements during 1966-72 total more than
$1.5 billion and innually have accounted for some 50%-60% of total
military expenditures (see Table 6). During these years the share of foreign
arms procurement declined sharply from about 80% to about 30% as South
Africa's domestic facilities were expanded.
29. Military expenditures are likely to continue to increase over the
next few years. An official white paper in 1969 announced planned defense
outlays over the next five years of about $2.1 billion, or an average of
$429 million a year. The total or the previous five years was about
$1.8 billion, or an average of $358 million a year.
30. The UN arms embargo imposed against South Africa in 1963 has
not adversely affected Pretoria's arms acquisitions. Instead the embargo
spurred Pretoria to accelerate its purchases abroad and rapidly expand and
diversify its domestic production facilities. South Africa now is stronger
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South African Defense Budgets
Defense Budget
(Million US $
As a Share of the
National Budget
(Percent)
As a Share of GNP
(Percent)
Annual
Average
1954.63
81
8.0
3.0
1964
375
19.0
3.6
1965
326
15.3
3.0
1966
358
20.0
3.1
1967
373
19.1
2.8
1968
356
16.3
2.6
1969
380
16.5
2.5
19';0
360
13.6
2.1
1971
443
12.7
2.4
1972
469
12.2
2.5 b
a. Data are for fiscal years beginning 1 April of the year stated.
b. Estimated.
militarily than at any time in the past and less dependent on external sources
of arms.
31. Since 1953, South Africa has imported nearly $485 million of
arms, of which almost two-thirds has been received since the embargo. Most
of the military equipment imported since 1963 has come from France,
which replaced the United Kingdom as Pretoria's primary foreign source
of arms when the United Kingdom decided to adhere to the UN resolution
and provide only equipment for whit :i commitments had already been made.
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South African Defence Expenditures'
Total defense budget
358.1
372.9
355.7
380.1
359.9
443.1
469.4
Total military equip-
ment procurementb
220.6
198.4
179.3
195.1
215.4
241.6
253.6
Armaments Board arms
procurements 44.8
46.8
48.3
122.5
154.7
157.5
178.5
Defense Force pro-
curement
175.8
151.6
131.0
72.6
60.7
84.1
75.1
Maintenance, technical
services, and the like
22.7
46.0
36.8
28.9
40.2
40.8
48.5
Personnel-related
expenditure
96.6
98.0
119.0
145.6
91.0
147.4
155.4
Capital and current
expenditure of the
Armaments Board
18.2
30.5
20.6
10.5
13.3
13.3
11.9
a. Data are for fiscal years beginning 1 April of the year stated.
b. Includes domestic and foreign procurement of arms and ammunition and support, radar,
communication, and navigation equipment.
c. The Armaments Board, ~ which was established in 1964, procures primarily main forces equipment and
other items that are difficult to obtain. Normal procurement such as spare parts and easily obtainable
requirements are procured by the logistic organization of the Defense Force. The Board exercises control
over domestic arms pro. 'ction and attempts to stimulate domestic manufacture whenever it is feasible so
as to make the country self-sificient in arms production.
32. Domestic production facilities have been developed rapidly, and
South Africa now produces some 70% of its own requirements. Paris also
has played an important role in this expansion and now is assisting Pretoria
in developing a capability for producing sophisticated weaponry. Licensing
agreements signed in recent years to produce French-designed weapons total
some $600 million.
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33. The growth of arms procurement has caused South Africa's
defense budget to jump sharply. It rose from an average of some $80 million
during 1954-63 to $375 million in 1964 and about $470 million in 1972.
This rapid growth has not adversely affected the South African economy,
however. Defense allocations in 1972 represent less than 3% of the GNP
and some 12% of the total national budget.
34. South African arms procurement will continue to incr1 ,e over
the next few years as Pretoria begins to meet less sales resistance from
Western sources and its domestic arms industry continues to expand.
Moreover, as it grows, South Africa will begin to seek export markets to
keep its arms industry economically viable.
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