South Africa seeks $1.1 billion IMF loan

South Africa has applied for a $1.1 billion loan from the international Monetary Fund, which it most likely will receive-in spite of strong protests from the U.N. and from the U.S. black community.

The United Nations general assembly voted resoundingly on October 21, urging the IMF to reject South Africa's loan application. The resolution, brought by Black African nation, won the approval of 121 countries; only three nations voted against it: England, West Germany, and the U.S.

The U.S. Congressional Black Caucus, claiming that the loan will help South Africa continue to pursue its discriminatory policy of apartheid, announced in mid-October that it would propose legislation to block the loan.

Nicaragua threatens to halt debt payments

Claiming that Western banks have blacklisted Nicaragua, one of the country's three governing junta members announced on September 19 that Nicaragua may halt payments on its foreign debt, Latin American Weekly Report noted.

Texaco pays Nigeria for oil spill

Texaco has handed over $17.8 million to the Nigerian government for a 1980 oil spill that caused extensive damage. The Nigerian national and state governments conducted lengthy negotiations to obtain the settlement, reports the African Economic Digest.

Malaysia bans clioquinol

The Malaysia government on August 7 banned the import, supply and sale of clioquinol, a drug manufactured by the Swiss company, Ciba-Geigy. More than 10,000 people-mostly in Japan-have suffered from the side effects of clioquinol, which include paralysis of the feet and legs, blindness, and death.

The Malaysian government's decision came in response to pressure from local consumer groups and the International Organization of Consumers Unions.

Ecuador austerity measures spark strikes

A doubling of gas and flour prices caused an uproar in Ecuador during late October. Despite a state of emergency and curfew imposed by the president, the United Workers Front called a general strike October 21. Workers blocked traffic and clashed with police. Five were killed, over 200 arrested.

Ecuador's President Oswaldo Hurtado had announced the removal of food and gasoline subsidies and a devaluation of currency October 15. Hurtado termed the measures necessary to decrease the $4.7 billion foreign debt.

Ecuador is currently negotiating a loan with the International Monetary Fund. The IMF typically demands such austerity measures as the Ecuadoran government has undertaken "voluntarily."

Squibb gets China contract

The New York-based Squibb Corporation announced on October 26 that it had signed a 15-year contract with the Chinese government to jointly manufacture and sell pharmaceuticals in the one billion-person Chinese market.

The 50-50 venture will build a plant outside Shanghai to produce antibiotics, vitamins and eventually a full line of drugs.

"We will share the profits equally and sell under the Squibb label," says Michael W. Percopo, president of Squibb International.

Meanwhile, the Bank of China said it was seeking a total of $1 billion in foreign investment to modernize China's industrial base.

Browne & Sharpe vs. IAM

The International Association of Machinists still find themselves out on the picket lines at Browne & Sharpe's Rhode Island headquarters. The nation's longest current strike (see MM, August 1982), the action has now passed the one year mark. In September, the Machinist union, which represents the 1600 striking machine tool workers, surprised the picketers by failing to rehire Ray Rogers, the innovative labor strategist who had raised hopes that his "corporate campaign" would bring management to the bargaining table.

Currently, the Machinists face a decertification drive by some of the "scabs" that management hired to replace the strikers.