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3
South Africa's Strategic
Mineral Exports: An Analysis
of the Feasibility of a United
States Embargo

Sanford Wright

The perception that the United States is dependent upon South
Africa's strategic mineral exports is continually being promoted by
South Africans and U.S. officials who are supportive of South Africa.
In 1988, anti-sanctions efforts by the Reagan administration and
legislative officials intensified. Deputy Secretary of State John C.
Whitehead stated before the Senate Foreign Relations Committee that
"according to the U.S. Bureau of Mines, the direct economic costs
to this nation resulting from a decision to embargo South African
strategic and critical minerals imports are estimated at $1.85 billion
per year." 1

Robert Wilson, the former executive director of the National
Critical Materials Council, also spoke before this committee, stating:
"Recently, the Bureau of Mines has estimated that a cutoff of these
metals would cost the U.S. economy almost $2 billion per year, and
that figure does not even take into consideration the multiplier
effect." 2

Congressman Dan Burton held a press conference on August 9,
1988, at which he stated: "Embargoing South African Rhodium sup-
plies alone would result in 34 billion dollars in GNP losses in the sec-
ond year of the embargo and 27 billion dollars in the third year even
if U.S. manufacturers have adequate rhodium stocks to carry them
through the first year. Furthermore, 572,000 jobs would be lost in

-55-

Questia, a part of Gale, Cengage Learning. www.questia.com

Publication Information: Book Title: Effective Sanctions on South Africa: The Cutting Edge of Economic Intervention. Contributors: George W. Shepherd Jr. - editor. Publisher: Praeger. Place of Publication: New York. Publication Year: 1991. Page Number: 55.
    
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