20 DECEMBER 1991:

Today the apparently impossible has become possible, the once unthinkable, has indeed become a reality. Two years ago no one could have dreamt that the leaders of the contending and even conflicting parties in South Africa could reach out to each other over the deep divisions in our country to come together to bring about a full democracy on a peaceful basis.

It is a wonder - a wonder for which we must thank God. The wonder is that for the first time in the history of South Africa there is an occasion where the leaders of all South Africa's people can discuss the future together. For the first time these leaders can accept responsibility together for the release of South Africa's full and exciting potential. This creates great opportunities for us:

Firstly, the opportunity for peaceful constitutional changes.

The keys to the future of South Africa are literally in our hands. Unlike the case in so many other countries, it is within our grasp to bring about peaceful constitutional change without the tragedy and destruction of revolution. Peaceful solutions for our problems are within our reach.

Secondly, there now is the opportunity to bring into being a full democracy in South Africa.

Democracy is, however, a fragile institution. In the name of democracy the true principles of democratic government have frequently been violated, and recent history is replete with examples. The National Party has therefore committed itself to voting rights for all but with effective checks and balances which will prevent the abuse of power, which inevitably results in domination and oppression.

A true and a sustainable democracy is based on majority rule but in plural societies that rule is always conditional on the fair treatment of, and meaningful participation by, minorities. This principle should be embodied in our constitution.

Throughout the world, the fear of domination and authoritarian rule has bedevilled relationships in plural societies. In a multi-cultural society it is essential that the system of government should inspire the people with confidence and allay their fears and uncertainties about the future. It should be our objective to build co-operation and a spirit of reconciliation into our constitution.

In a country with diversities such as ours, the concentration of power in an all-powerful central government simply could not serve the best interests of our people.

The National Party strongly feels that government should be close to the people, - that the interaction of the people at local and regional level with those who have been given authority to govern should be as close and direr- as possible.

The National Party therefore feels strongly that there should be three tiers of government, local, regional and national, with the powers and functions of each being entrenched in the constitution.

This fundamental viewpoint also underlies our understanding for and sympathy with the unique Constitutional position of the King of the Zulu nation. We trust that an acceptable solution can be found soon, to enable him as well as other traditional leaders with special status to behoove involved in the negotiation process.

There was a time in the past when the National Party felt that a policy of separation would bring peace to the nation. That did not materialism. The policy did not produce the anticipated peace, but greater conflict: and increasing injustice. It was not the intention to deprive other people of their rights and to contribute to their misery - but eventually it led to just that. Insofar as that occurred we deeply regret it.

Consequently, after profound and honest self-searching we have made fundamental changes to our policies, basing them on premises which, to the best of our convictions, are morally -justifiable. We have committed ourselves o strive for a free and non-racial democracy without any form of domination. To that we are committed and from that we shall not deviate.

We do not intend to repeat the mistakes of the past but we also do not intend to allow the proven mistakes of those systems or policy-guidelines which have failed elsewhere, to be duplicated here.

Thirdly, we have the opportunity to create the basis for economic growth and prosperity. We are all aware that many have high expectations from the new South Africa.

The unemployed expect that there will be employment for them. Those with employment expect better remuneration and faster promotion. Those hindered by backlogs and poverty expect swift relief.

Businessmen penalized by difficult economic circumstances expect to be able to expand their enterprises and to be able to exploit the advantages of growth in South Africa as well as new international markets. All have great expectations.

If these growing expectations are not satisfied to a certain degree, the risks of unrest and instability in our country will be very high - irrespective of who governs the country.

The hard reality is that of all the praiseworthy issues which we have written into the Declaration of Intent, none will be realised if the process is not underpinned by sound economic growth and prosperity.

The new investments necessary for economic growth and job creation will not take place as long as matters such as the possibility of nationalization, increased taxation, labour unrest, consumer boycotts and unrealistic wage demands, continue to undermine the confidence of business and overseas investors in South Africa.

Without business confidence and investment there will be no growth or job creation and there will also not be the tax revenues necessary to address the enormous socio-economic backlogs and social needs of our country effectively.

If we wish to grow, we will have to compete with Eastern Europe and other developing countries in order to get a reasonable share of the world's available investment capital. This will require that we lower the rate of taxation, ensure the stability of the work force and guarantee the repatriation of capital interest and dividends. Unrest and violence must also be brought under control and the safety of our people and the protection of their possessions must be addressed with conviction by our collective leadership. In order to achieve this aim, a well-prepared defence force and a highly professional police force are of the utmost importance - the National Party is committed to this.

Despite the adverse effect which certain aspects of former National Party political policies undoubtedly had on the economy, it is nevertheless very significant that the resources of this country have already been developed to such an extent that South Africa is today recognized as a major economic force on our continent and even beyond. Several indisputable statistics substantiate this reality and it is a fact that there are countries in Africa with comparable resources.

The singular resilience and inherent strength of our economy was dramatically illustrated inter alia by its capacity to withstand the effect of wide-ranging sanctions applied over many years.

During this time we not only survived sanctions, but regularly registered positive real grows h, albeit at a lower rate than would otherwise have been possible.

At the same time, we also embarked on a major on-going restructuring of our economy. The result is that today our economy is poised for a resumption of sound growth, with fundamental parameters wel1-placed to support the imminent upswing.

The abolition of trade sanctions has boosted our export potential especially our already significant trade with Africa. Our increasing access to international financial markets where we have very high standing, will further support higher and more sustainable economic growth than was possible in recent years.

The removal of discriminatory and other inhibiting legislation will make a further contribution in this regard.

It is against this background that the National Party again commits itself to promoting an economic system in which, inter alia:

• All people will be free to sell their labour and market their products;
• property rights will be accessible to all and will be protected by a Bill of Fundamental Rights;
• the maintenance of fiscal and monetary discipline which will protect and maintain the internal and external value of the Rand;
• the resources of the State will be available on an equitable basis, for the welfare of all, with a view to eliminating the socio-economic backlogs which prevail in our country as rapidly as possible;

It is our opportunity and challenge to build a nation; to rise above the bitterness and divisions of the past and to find each other in a new loyalty to our fatherland.

It is not possible to talk of nation-building without making reference to those groups who have chosen to stay away from this Convention. So long as they exclude themselves, our nation will not be complete and South Africa's children will not find each other to make peace and arrive at a suitable constitutional home.

I address myself in particular to members of the Conservative Party and other organizations on the right. CODESA offers you an opportunity to put forward your convictions and standpoints. In the declaration of intent which will be signed by all the representatives today, the opportunity is being created for you. There it is clearly stated that "current and future participants will be offered the free opportunity to place before the Convention any suggestions based on democratic principles".

How sad it would be if those parties who claim that also they represent people whose predecessors made such great sacrifices for this country declined this opportunity to come and state their case. Not only the debates, but also the conclusions of our deliberations may be incomplete without their contributions. The National Party will therefore endeavour to have the principle of self-determination for nations placed on the agenda of CODE SA.

I conclude: the future of South Africa is in a particular sense, in our hands. It is a heavy responsibility. It is within our grasp to engineer true freedom and a lasting democracy in our country.

Just as shadows can be seen only where there is light, so too, will we resolve what divides us only if we remember how much more unites us. There are the burdens of our country's contemporary history. But if we use our time at the conference table to catalogue the wrongs and injustices that our people have endured, it will be narrow and shortsighted.

What is required at this moment in our history is the courage and the daring and the deeds of the builders and the doers at this Convention. These are the things to which we would want to relate and pass on to our children. Our fondest hope remains peace and human dignity. These are the values that permit us to dream of a future without the antagonisms of the past.

If there is one motto - one approach to life necessary now - then it is to put South Africa first. A powerful message could emerge from this convention if all of us unite our forces to truly seek to build a new nation in a spirit of genuine reconciliation and tolerance. That is the exciting challenge which stands before us - the historic opportunity which we have but also the responsibility which rests upon us.

May God give us strength, mercy and direction.