Mr Speaker, Members of Parliament.

The general election on September the 6th, 1989, placed our country irrevocably on the road of drastic change. Underlying this is the growing realisation by an increasing number of South Africans that only a negotiated understanding among the representative leaders of the entire population is able to ensure lasting peace.

The alternative is growing violence, tension and conflict. That is unacceptable and in nobody's interest. The well-being of all in this country is linked inextricably to the ability of the leaders to come to terms with one another on a new dispensation. No-one can escape this simple truth.

On its part, the Government will accord the process of negotiation the highest priority. The aim is a totally new and just constitutional dispensation in which every inhabitant will enjoy equal rights, treatment and opportunity in every sphere of endeavour - constitutional, social and economic.

I hope that this new Parliament will play a constructive part in both the prelude to negotiations and the negotiating process itself. I wish to ask all of you who identify yourselves with the broad aim of a new South Africa, and that is the overwhelming majority:

* Let us put petty politics aside when we discuss the future during this Session.
* Help us build a broad consensus about the fundamentals of a new, realistic and democratic dispensation.
* Let us work together on a plan that will rid our country of suspicion and steer it away from domination and radicalism of any kind.

During the term of this new Parliament, we shall have to deal, complimentary to one another, with the normal processes of legislation and day-to-day government, as well as with the process of negotiation and renewal.

Within this framework I wish to deal first with several matters more closely concerned with the normal process of government before I turn specifically to negotiation and related issues.

1. FOREIGN RELATIONS

The Government is aware of the important part the world at large has to play in the realisation of our country's national interests.

Without contact and co-operation with the rest of the world we cannot promote the well-being and security of our citizens. The dynamic developments in international politics have created new opportunities for South Africa as well. Important advances have been made, among other things, in our contacts abroad, especially where these were precluded previously by ideological considerations.

I hope this trend will be encouraged by the important change of climate that is taking place in South Africa.

For South Africa, indeed for the whole world, the past year has been one of change and major upheaval. In Eastern Europe and even the Soviet Union itself, political and economic upheaval surge forward in an unstoppable tide. At the same time, Beijing temporarily smothered with brutal violence the yearning of the people of the Chinese mainland for greater freedom.

The year of 1989 will go down in history as the year in which Stalinist Communism expired.

These developments will entail unpredictable consequences for Europe, but they will also be of decisive importance to Africa. Those who seek to force this failure of a system on South Africa, should engage in a total revision of their point of view. It should be clear to all that it is not the answer here either. The new situation in Eastern Europe also shows that foreign intervention is no recipe for domestic change. It never succeeds, regardless of its ideological motivation. The upheaval in Eastern Europe took place without the involvement of the Big Powers or of the United Nations.

The countries of Southern Africa are faced with a particular challenge; Southern Africa now has an historical opportunity to set aside its conflicts and ideological differences and draw up a joint programme of reconstruction. It should be sufficiently attractive to ensure that the Southern African region obtains adequate investment and loan capital from the industrial countries of the world. Unless the countries of Southern Africa achieve stability and a common approach to economic development rapidly, they will be faced by further decline and ruin.

The Government is prepared to enter into discussions with other Southern African countries with the aim of formulating a realistic development plan. The Government believes that the obstacles in the way of a conference of Southern African states have now been removed sufficiently.

Hostile postures have to be replaced by co-operative ones; confrontation by contact; disengagement by engagement; slogans by deliberate debate.

The season of violence is over. The time for reconstruction and reconciliation has arrived.

Recently there have, indeed, been unusually positive results in South Africa's contacts and relations with other African states. During my visits to their countries I was received cordially, both in private and in public, by Presidents Mobutu, Chissano, Houphouet-Boigny and Kaunda. These leaders expressed their sincere concern about the serious economic problems in our part of the world. They agreed that South Africa could and should play a positive part in regional co-operation and development.

Our positive contribution to the independence process in South West Africa has been recognised internationally. South Africa's good faith and reliability as a negotiator made a significant contribution to the success of the events. This, too, was not unnoticed. Similarly, our efforts to help bring an end to the domestic conflict situations in Mozambique and Angola have received positive acknowledgement.

At present the Government is involved in negotiations concerning our future relations with an independent Namibia and there are no reasons why good relations should not exist between the two countries. Namibia needs South Africa and we are prepared to play a constructive part.

Nearer home I paid fruitful visits to Venda, Transkei and Ciskei and intend visiting Bophuthatswana soon. In recent times there has been an interesting debate about the future relationship of the TBVC countries with South Africa and specifically about whether they should be re-incorporated into our country.

Without rejecting this idea out of hand, it should be borne in mind that it is but one of many possibilities. These countries are constitutionally independent. Any return to South Africa will have to be dealt with, not only by means of legislation in their parliaments, but also through legislation in this Parliament. Naturally this will have to be preceded by talks and agreements.

2. HUMAN RIGHTS

Some time ago the Government referred the question of the protection of fundamental human rights to the South African Law Commission. This resulted in the Law Commission's interim working document on individual and minority rights. It elicited substantial public interest.

I am satisfied that every individual and organisation in the country has had ample opportunity to make representations to the Law Commission, express criticism freely and make suggestions. At present, the Law Commission is considering the representations received. A final report is expected in the course of this year.

In view of the exceptional importance of the subject of human rights to our country and all its people, I wish to ask the Law Commission to accord this task high priority.

The whole question of protecting individual and minority rights, which includes collective rights and the rights of national groups, is still under consideration by the Law Commission. Therefore, it would be inappropriate of the Government to express a view on the details now. However, certain matters of principle have emerged fairly clearly and I wish to devote some remarks to them.

The Government accepts the principle of the recognition and protection of the fundamental individual rights which form the constitutional basis of most Western democracies. We acknowledge, too, that the most practical way of protecting those rights is vested in a declaration of rights justiciable by an independent judiciary. However, it is clear that a system for the protection of the rights of individuals, minorities and national entities has to form a well-rounded and balanced whole. South Africa has its own national composition and our constitutional dispensation has to take this into account. The formal recognition of individual rights does not mean that the problem of a heterogeneous population will simply disappear. Any new constitution which disregards this reality will be inappropriate and even harmful.

Naturally, the protection of collective, minority and national rights may not bring about an imbalance in respect of individual rights. It is neither the Government's policy nor its intention that any group - in whichever way it may be defined - shall be favoured above or in relation to any of the others.

The Government is requesting the Law Commission to undertake a further task and report on it. This task is directed at the balanced protection in a future constitution of the human rights of all our citizens, as well as of collective units, associations, minorities and nations. This investigation will also serve the purpose of supporting negotiations towards a new constitution.

The terms of reference also include:

* the identification of the main types and models of democratic constitutions which deserve consideration in the aforementioned context;
* an analysis of the ways in which the relevant rights are protected in every model; and
* possible methods by means of which such constitutions may be made to succeed and be safeguarded in a legitimate manner.

3. THE DEATH PENALTY

The death penalty has been the subject of intensive discussion in recent months. However, the Government has been giving its attention to this extremely sensitive issue for some time. On April the 27th, 1989, the honourable Minister of Justice indicated that there was merit in suggestions for reform in this area. Since 1988 in fact, my predecessor and I have been taking decisions on reprieves which have led, in proportion , to a drastic decline in executions.

We have now reached the position in which we are able to make concrete proposals for reform. After the Chief Justice was consulted, and he in turn had consulted the Bench, and after the Government had noted the opinions of academics and other interested parties, the Government decided on the following broad principles from a variety of available options:

* that reform in this area is indicated;
* that the death penalty should be limited as an option of sentence to extreme cases, and specifically through broadening judicial discretion in the imposition of sentence; and
* that an automatic right of appeal be granted to those under sentence of death.

Should these proposals be adopted, they should have a significant influence on the imposition of death sentences on the one hand, and on the other, should ensure that every case in which a person has been sentenced to death, will come to the attention of the Appellate Division.

These proposals require that everybody currently awaiting execution, be accorded the benefit of the proposed new approach. Therefore, all executions have been suspended and no executions will take place until Parliament has taken a final decision on the new proposals. In the even of the proposals being adopted, the case of every person involved will be dealt with in accordance with the new guidelines. In the mean time, no executions have taken place since November the 14th, 1989.

New and uncompleted cases will still be adjudicated in terms of the existing law. Only when the death sentence is imposed, will the new proposals be applied, as in the case of those currently awaiting execution.

The legislation concerned also entails other related principles which will be announced and elucidated in due course by the Minister of Justice. It will now be formulated in consultation with experts and be submitted to Parliament as soon as possible.

I wish to urge everybody to join us in dealing with this highly sensitive issue in a responsible manner.

4. SOCIO-ECONOMIC ASPECTS

A changed dispensation implies far more than political and constitutional issues. It cannot be pursued successfully in isolation from problems in other spheres of life which demand practical solutions. Poverty, unemployment, housing shortages, inadequate education and training, illiteracy, health needs and numerous other problems still stand in the way of progress and prosperity and an improved quality of life.

The conservation of the physical and human environment is of cardinal importance to the quality of our existence. For this the Government is developing a strategy with the aid of an investigation by the President's Council.

All of these challenges are being dealt with urgently and comprehensively. The capability for this has to be created in an economically accountable manner. Consequently, existing strategies and aims are undergoing a comprehensive revision.

From this will emanate important policy announcements in the socio-economic sphere by the responsible Ministers during the course of the session. One matter about which it is possible to make a concrete announcement, is the Separate Amenities Act, 1953. Pursuant to my speech before the President's Council late last year, I announce that this Act will be repealed during this Session of Parliament.

The State cannot possibly deal alone with all of the social advancement our circumstances demand. The community at large, and especially the private sector, also have a major responsibility towards the welfare of our country and its people.

5. THE ECONOMY

A new South Africa is possible only if it is bolstered by a sound and growing economy, with particular emphasis on the creation of employment. With a view to this, the Government has taken thorough cognisance of the advice contained in numerous reports by a variety of advisory bodies. The central message is that South Africa, too, will have to make certain structural changes to its economy, just as its major trading partners had to do a decade or so ago.

The period of exceptionally high economic growth experienced by the Western world in the sixties, was brought to an end by the oil crisis in 1973. Drastic structural adaptations became inevitable for these countries, especially after the second oil crisis in 1979, when serious imbalances occurred in their economies. After considerable sacrifices, those countries which persevered with their structural adjustment programmes, recovered economically sot hat lengthy periods of high economic growth and low inflation were possible.

During that particular period, South Africa was protected temporarily by the rising gold price from the necessity of making similar adjustments immediately. In fact, the high gold price even brought prosperity with it for a while. The recovery of the world economy and the decline in the price of gold and other primary products, brought with them unhealthy trends. These included high inflation, a serious weakening in the productivity of capital, stagnation in the economy's ability to generate income and employment opportunities. All of this made a drastic structural adjustment of our economy inevitable.

The Government's basic point of departure is to reduce the role of the public sector in the economy and to give the private sector maximum opportunity for optimal performance. In this process, preference has to be given to allowing the market forces and a sound competitive structure to bring about the necessary adjustments.

Naturally, those who make and implement economic policy have a major responsibility at the same time to promote an environment optimally conducive to investment, job creation and economic growth by means of appropriate and properly co-ordinated fiscal and monetary policy. The Government remains committed to this balanced and practical approach.

By means of restricting capital expenditure in parastatal institutions, privatisation, deregulation and curtailing government expenditure, substantial progress has been made already towards reducing the role of the authorities in the economy. We shall persist with this in a well-considered way.

This does not mean that the State will forsake its indispensable development role, especially in our particular circumstances. On the contrary, it is the precise intention of the Government to concentrate an equitable portion of its capacity on these aims by means of the meticulous determination of priorities.

Following the progress that has been made in other areas of the economy in recent years, it is now opportune to give particular attention to the supply side of the economy.

Fundamental factors which will contribute to the success of this restructuring are:

* the gradual reduction of inflation to levels comparable to those of our principal trading partners;
* the encouragement of personal initiative and savings;
* the subjection of all economic decisions by the authorities to stringent financial measures and discipline;
* rapid progress with the reform of our system of taxation; and
* the encouragement of exports as the impetus for industrialisation and earning foreign exchange.

These and other adjustments, which will require sacrifices, have to be seen as prerequisites for a new period of sustained growth in productive employment in the nineties.

The Government is very much aware of the necessity of proper co-ordination and consistent implementation of its economic policy. For this reason, the establishment of the necessary structures and expertise to ensure this co-ordination is being given preference. This applies both to the various functions within the Government and to the interaction between the authorities and the private sector.

This is obviously not the occasion for me to deal in greater detail with our total economic strategy or with the recent course of the economy.

I shall confine myself to a few specific remarks on one aspects of fiscal policy that has been a source of criticism of the Government for some time, namely State expenditure.

The Government's financial year ends only in two month's time and several other important economic indicators for the 1989 calendar year are still subject to refinements at this stage. Nonetheless, several important trends are becoming increasingly clear. I am grateful to be able to say that we have apparently succeeded to a substantial degree in achieving most of our economic aims in the past year.

In respect of Government expenditure, the budget for the current financial year will be the most accurate in many years. The financial figures will show:

* that Government expenditure is thoroughly under control;
* that our normal financing programme has not exerted any significant upward pressure on rates of interest; and
* that we will close the year with a surplus, even without taking the income from the privatisation of Iscor into account.

Without pre-empting this year's main budget, I wish to emphasise that it is also our intention to co-ordinate fiscal and monetary policy in the coming financial year in a way that will enable us to achieve the ensuing goals - namely: -

* that the present downturn will take the form of a soft landing which will help to make adjustments as easy as possible;
* that our economy will consolidate before the next upward phase so that we will be able to grow from a sound base; and
* that we shall persist with the implementation of the required structural adaptations in respect, among other things, of the following: easing the tax burden, especially on individuals; sustained and adequate generation of surpluses on the current account of the balance of payments; and the reconstruction of our gold and foreign exchange reserves.

It is a matter of considerable seriousness to the Government, especially in this particular period of our history, to promote a dynamic economy which will make it possible for increasing numbers of people to be employed and share in rising standards of living.

6. NEGOTIATION

In conclusion, I wish to focus the spotlight on the process of negotiation and related issues. At the stage I am refraining deliberately from discussing the merits of numerous political questions which undoubtedly will be debated during the next few weeks. The focus, now, has to fall on negotiation.

Practically every leader agrees that negotiation is the key to reconciliation, peace and a new and just dispensation. However, numerous excuses for refusing to take part, are advanced. Some of the reasons being advanced are valid. Others are merely part of a political chess game. And while the game of chess proceeds, valuable time is being lost.

Against this background I committed the Government during my inauguration to giving active attention to the most important obstacles in the way of negotiation. Today I am able to announce far-reaching decisions in this connection.

I believe that these decisions will shape a new phase in which there will be a movement away from measures which have been seized upon as a justification for confrontation and violence. The emphasis has to move, and will more now, to a debate and discussion of political and economic points of view as part of the process of negotiation.

I wish to urge every political and community leader, in and outside Parliament, to approach the new opportunities which are being created, constructively. There is no time left for advancing all manner of new conditions that will delay the negotiating process.

The steps that have been decided, are the following:

* The prohibition of the African National Congress, the Pan Africanist Congress, the South African Communist Party and a number of subsidiary organisations is being rescinded.

* People serving prison sentences merely because they were members of one of these organisations or because they committed another offence which was merely an offence because a prohibition on one of the organisations was in force, will be identified and released. Prisoners who have been sentenced for other offences such as murder, terrorism or arson are not affected by this.

* The media emergency regulations as well as the education emergency regulations are being abolished in their entirety.

* The security emergency regulations will be amended to still make provision for effective control over visual material pertaining to scenes of unrest.

* The restrictions in terms of the emergency regulations on 33 organisations are being rescinded. The organisations include the following:

National Education Crisis Committee
South African National Students Congress
United Democratic Front
Cosatu
Die Blanke Bevrydingsbeweging van Suid-Afrika.

* The conditions imposed in terms of the security emergency regulations on 374 people on their release, are being rescinded and the regulations which provide for such conditions are being abolished.

* The period of detention in terms of the security emergency regulations will be limited henceforth to six months. Detainees also acquire the right to legal representation and a medical practitioner of their own choosing.

These decisions by the Cabinet are in accordance with the Government's declared intention to normalise the political process in South Africa without jeopardising the maintenance of the good order. They were preceded by thorough and anonymous advice by a group of officials which included members of the security community.

Implementation will be immediate and, where necessary, notices will appear in the Government Gazette from tomorrow.

The most important facets of the advice the Government received in this connection; are the following:

* The events in the Soviet Union and Eastern Europe, to which I have referred already, weaken the capability of organisations which were previously supported strongly from those quarters.

* The activities of the organisations from which the prohibitions are now being lifted, no longer entail the same degree of threat to internal security which initially necessitated the imposition of the prohibition.

* There have been important shifts of emphasis in the statements and points of view of the most important of the organisations concerned, which indicate a new approach and a preference for peaceful solutions.

* The South African Police is convinced that it is able, in the present circumstances, to combat violence and other crimes perpetrated also by members of these organisations and to bring offenders to justice without the aid of prohibitions on organisations.

About one matter there should be not doubt. The lifting of the prohibition on the said organisations does not signify in the least the approval or condonation of terrorism or crimes of violence committed under their banner or which may be perpetrated in the future. Equally, it should not be interpreted as a deviation from the Government's principles, among other things, against their economic policy and aspects of their constitutional policy. This will be dealt with in debate and negotiation.

At the same time I wish to emphasise that the maintenance of law and order dare not be jeopardised. The Government will not forsake its duty in this connection. Violence from whichever source, will be fought with all available might. Peaceful protest may not become the springboard for lawlessness, violence and intimidation. No democratic country can tolerate that.

Strong emphasis will be placed as well on even more effective law enforcement. Proper provision of manpower and means for the police and all who are involved with the enforcement of the law, will be ensured. In fact, the budget for the coming financial year will already begin to give effect to this.

I wish to thank the members of our security forces and related services for the dedicated service they have rendered the Republic of South Africa. Their dedication makes reform in a stable climate possible.

On the state of emergency I have been advised that an emergency situation, which justifies these special measures which have been retained, still exists. There is still conflict which is manifesting itself mainly in Natal, but as a consequence of the country-wide political power struggle. In addition, there are indications that radicals are still trying to disrupt the possibilities of negotiations by means of mass violence.

It is my intention to terminate the state of emergency completely as soon as circumstances justify it and I request the co-operation of everybody towards this end. Those responsible for unrest and conflict have to bear the blame for the continuing state of emergency. In the mean time, the state of emergency is inhibiting only those who use chaos and disorder as political instruments. Otherwise the rules of the game under the state of emergency are the same for everybody.

Against this background the Government is convinced that the decisions I have announced are justified from the security point of view. However, these decisions are justified from a political point of view as well.

Our country and all its people have been embroiled in conflict, tension and violent struggle for decades. It is time for us to break out of the cycle of violence and break through the peace and reconciliation. The silent majority is yearning for this. The youth deserve it.

With the steps the Government has taken it has proven its good faith and the table is laid for sensible leaders to begin talking about a new dispensation, to reach an understanding by way of dialogue and discussion.

The agenda is open and the overall aims to which we are aspiring should be acceptable to all reasonable South Africans.

Among other things, those aims include a new, democratic constitution; universal franchise; no domination; equally before an independent judiciary; the protection of minorities as well as of individual rights; freedom of religion; a sound economy based on proven economic principles and private enterprise; dynamic programmes directed at better education, health services, housing and social conditions for all.

In this connection Mr Nelson Mandela could play an important part. The Government has noted that he has declared himself to be willing to make a constructive contribution to the peaceful political process in South Africa.

I wish to put it plainly that the Government has taken a firm decision to release Mr Mandela unconditionally. I am serious about bringing this matter to finality without delay. The Government will take a decision soon on the date of his release. Unfortunately, a further short passage of time is unavoidable.

Normally there is a certain passage of time between the decision to release and the actual release because of logistical and administrative requirements. In the case of Mr Mandela there are factors in the way of his immediate release, of which his personal circumstances and safety are not the least. He has not been an ordinary prisoner for quite some time. Because of that, his case requires particular circumspection.

Today's announcements, in particular, go to the heart of what Black leaders - also Mr Mandela - have been advancing over the years as their reason for having resorted to violence. The allegation has been that the Government did not wish to talk to them and that they were deprived of their right to normal political activity by the prohibition of their organisations.

Without conceding that violence has ever been justified, I wish to say today to those who argued in this manner: -

* The Government wishes to talk to all leaders who seek peace.
* The unconditional lifting of the prohibition on the said organisations places everybody in a position to pursue politics freely.
* The justification for violence which was always advanced, no longer exists.

These facts place everybody in South Africa before a fait accompli. On the basis of numerous previous statements there is no longer any reasonable excuse for the continuation of violence. The time for talking has arrived and whoever still makes excuses does not really wish to talk.

Therefore, I repeat my invitation with greater conviction than ever: -

Walk through the open door, take your place at the negotiating table together with the Government and other leaders who have important power bases inside and outside of Parliament.

Henceforth, everybody's political points of view will be tested against their realism, their workability and their fairness. The time for negotiation has arrived.

To those political leaders who have always resisted violence I say thank you for your principled stands. This includes all the leaders of parliamentary parties, leaders of important organisations and movements, such as Chief Minister Buthelezi, all of the other Chief Ministers and urban community leaders.

Through their participation and discussion they have made an important contribution to this moment in which the process of free political participation is able to be restored. Their places in the negotiating process are assured.

CONCLUSION

In my inaugural address I said the following:

"All reasonable people in this country - by far the majority - anxiously await a message of hope. It is our responsibility as leaders in all spheres to provide that message realistically, with courage and conviction. If we fail in that, the ensuing chaos, the demise of stability and progress, will for ever be held against us.

"History has thrust upon the leadership of this country the tremendous responsibility to turn our country away from its present direction of conflict and confrontation. Only we, the leaders of our peoples, can do it.

"The eyes of responsible governments across the world are focused on us. The hopes of millions of South Africans are centred around us. The future of Southern Africa depends on us. We dare not falter or fail."

This is where we stand:

* Deeply under the impression of our responsibility.
* Humble in the face of the tremendous challenges ahead.
* Determined to move forward in faith and with conviction.

I ask of Parliament to assist me on the road ahead. There is much to be done.

I call on the international community to re-evaluate its position and to adopt a positive attitude towards the dynamic evolution which is taking place in South Africa.

I pray that the Almighty Lord will guide and sustain us on our course through unchartered waters and will bless your labours and deliberations.

Mr Speaker, Members of Parliament.

I now declare this Second Session of the Ninth Parliament of the Republic of South Africa to be duly opened.

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