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Show The Daily Page Twenty I'uh Chronicle. Thursday. December 7, 1978 Black leader says liberals wrong about divestiture by MARTHA WICKELHAUS Chronicle staff It is morally imperative for American firms to remain in South Africa, according to Catsha Buthelezi, popular black leader of that country . "Some of your superliberals in America have got the whole issue exactly upside down." said Buthelezi in an interview for Forbes magazine. "They seem to think it is immoral for American companies to invest here, but irresistably profitable. The truth is the opposite. It is morally imperative that American firms remain active here and support us in our struggle. . . " Buthelezi is the elected chief minister of KwaZulu. the Zulu homeland. He is found of the National Cultural Liberation Movement. That organization's bulletin was seized by South African police last year. Speaking in the United States last summer. Buthelezi said of the racist regime, "You know that apartheid is so ugly that it can only survive if it is enforced with the barrel of a gun." Buthelezi stressed the importance of American firms' presence in South Africa as a catalyst for change. ". . . Foreign investment creates jobs. Jobs brine money to Rnihieri aitl nn ssure must be keut on the government. however. "Pressures in sports have had good results, and I the blacks, who make up by far the majority ot industrial labor. . . And working in industiy also gives the black man the training and experience he will need to assume his rightful place in our country just as he did in yours." Activists argue that the threat of divestiture of stock held in American companies doing business in South Africa will force those companies to pull out. The threat of economic disaster will, they hope, force the racist government to change its policy of racial oppression. Buthelezi had little respect for American activists, who he said are acting without knowledge of the situation. "When I hear them (activists) calling, with more enthusiasm than wisdom, for an end to American investment, I tell them the same thing I say to people in Pretoria who want to prescribe at a distance what's best for KwaZulu. 'To hell with you,' I say." He said industrial expansion because of foreign investment has created a shortage of qualified people, enabling blacks to advance to more responsible positions by necessity. "As the process continues, the role of blacks in South African industrial management will become critical, which will give us more and more economic and political leverage." applauded the (United Nations) arms embargo as a meaningful bit of symbolism. But the pressure to divest, which brings misery to my people, slows development and may lead to the loss of all we are achieving." Divestiture aggravates conditions blacks are trying to fight. What blacks want is a larger share of the benefits of foreign investment. . . "education, jobs, human dignity," he said.Buthelezi said he is not in favor of just any investors, but is in favor of those who abide by the Sullivan Code of Conduct. This code, developed by American businessman Leon Sullivan, provides for equal and fair treatment of all employees. It sets up nonsegregated training, eating, school and health facilities. American companies "must take an active role, not just a passive one. They should have a commitment to peaceful change in South Africa, w hich means more than being model employers, more than giving a good example useful though that is. It means exercising influence wherever they can to promote peaceful change. If we don't have peaceful change here, we're all to likely to have violent change. . . - Federal policy, consumer demand creating oil shortage by SHELLEY WEYFORTH Chronicle staff slowing down the manufacture of gasoline and has increased its production of fuel oil, he said. Increased consumer for gasoline demand combined with uncertain federal energy policies have led to a rising shortage of crude oil and gasoline, a University professor said earlier this week. According to D. Alex G. Currently the U.S. gasoline inventory is about 215 million barrels of crude oil per day, about 25 million below the normal level, he said. "People are using more gasoline than what is being Professor of Metallurgy and Fuels Oblad, produced," he added. 7.337 United Engineering, States did not experience its normal drop-of- f for demand during fall of 1978. Instead, demand remained on par with that of heavy use during the summer months. This could be due to the relatively nice weather we were experiencing during the fall, he said. The production industry has followed its pattern of the During October 1978, million barrels of gasoline were being produced every day, but production was at 7.241 million barrels per day, Oblad said. Earlier this week, Shell, Mobil and Texaco warned that gasoline supplies were "extremely tight nationally" and that shortages of gasoline, especially the unleaded varieties, may occur. Oblad said that Utah was refining more than what is needed within the state, and expressed concern about the amount being refined at the national level. Oblad said, "a bottleneck exists at the refinery level. Environmental protection laws and unclear direction for the federal government regarding price levels have combined to discourage refinery construction." He said only three American refineries have been constructed in the last decade, while demand for crude oil has resumed its growth rate comparable to levels of four to five percent annually. "No one knows how the new national energy bill for regulation will be interpret- pre-embar- go cd" and as a consequence no one wants to invest when they question the uncertainty of getting their money back out," he said. "Most refineries already are at peak levels of production. They are 92 currently operating at percent of capacity. The norm is about 85 percent and anything above that begins to cost extra in maintenance and equipment failure," he said. "If demand increased only two percent at 300,000 barrels a day, it would take three new refineries constructed annually each producing 100,000 barrels per day. "A refinery that would produce 100,000 barrels a day would cost 1400 million to develop," he said. Oblad also said refinery construction has been f 1 THE SIDE TRACK. 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