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"Cosatu is sadly confusing its role with that of the Government."

"The second letter received by my Office from Cosatu on 21 May 2001 is clearly a continuance of its destructive and rather hysterical rant. It is also a clear indication of Cosatu's obstinate persistence in threatening to cause destruction to the economy of the Western Cape - firstly by threatening to apply for official permission to strike, and secondly by demanding the cancellation of an extremely positive co-operation agreement between the Western Cape and the American State of California.

Cosatu is obviously unwilling to see the crucial difference between itself and the government. Although Cosatu is a legitimate body representing labour interests, the Western Cape Government is the elected representatives of ALL the people of this province, including the unemployed. It has a constitutional mandate to do everything in its power to deliver an outstanding service to its entire people and improve their living standards. This includes promoting the involvement of foreign investors and developers in the Western Cape.

It is on this basis that the Western Cape Government signed the sister-state agreement with California - a tremendous economic breakthrough for our province that will lead to investment, trade, tourism and the transfer of technology and skills into the Western Cape. Like any other role-player, Cosatu will be invited to take part in discussions concerning the implementation of this agreement.

Cosatu's stance in this matter is evidently inspired by its desire to position itself politically. It is definitely not acting in the best interest of the people of this province. In its letter, Cosatu makes all kinds of allegations about the integrity of the Western Cape Government, without providing any basis for its attacks. If Cosatu wants to start playing a positive role, it should halt its counter-productive conduct and begin to participate actively and without a hidden agenda in our common striving to make this province run smoothly for the benefit of all its people."

PREMIER MORKEL'S LETTER TO COSATU REGIONAL SECRETARY TONY EHRENREICH:

Mr Tony Ehrenreich
Regional Secretary
Cosatu
PO Box 471
Salt River
8001

Fax 448 0047

Dear Mr Ehrenreich

Your letter dated 20 May 2001 refers.

The contents of your letter have been noted and I hereby furnish my reply. I note with utter dismay the negative and destructive approach in your correspondence regarding the positive developments vis-à-vis the co-operative agreement between the Western Cape Provincial Government and the State of California. Provinces have a constitutional responsibility to manage a variety of functional areas such as education, social services and tourism in addition to promoting sound intergovernmental relations. Against the constitutional mandate of the Western Cape Provincial Government, the development of co-operative relations with the State of California should be regarded as a positive step in fulfilling that mandate which is aimed to benefit all the people of this province.

You refer in your letter to the Western Cape Californian Trade Agreement. This is in fact not correct since a trade agreement, which is often entered into by national governments, includes matters concerning promotion of trade such as tariff regulations, product descriptions and trade incentives. The Memorandum of Understanding between the Western Cape Provincial Government and the State of California concerning co-operation between the two regions is not a trade agreement, but has a much wider brief. It includes functional areas such as agriculture, education and social services. A copy of the agreement is attached hereto for your information and ease of reference.

The formalising of relations with the State of California is an important part of promoting the Western Cape as a region internationally. It is the view of the Provincial Government that all relevant role players should be included in the implementation of this agreement in order to maximise the benefits to the people of this province. Shortly after the return of the Premier from California, the Provincial Cabinet discussed the implementation of this Memorandum of Understanding and, in fact, has decided to invite a whole range of role players within the Western Cape who could play a significant role in the implementation of the agreement as well as the further development of relations with California. These role players, including trade unions such as Cosatu, will be notified thereof in due course. Should you, however, wish to discuss in detail the issues relating to trade and tourism in the Western Cape, you are most welcome to contact Dr Laurine Platzky, Deputy Director-General of Economic Affairs, who is in fact responsible for both trade and tourism in the province and who will be assisted in this matter by the Chief Directorate for Intergovernmental Relations and Provincial Planning. Dr Platzky also manages the implementation of the Western Cape Provincial Government's policy papers on tourism and the knowledge economy of the 21st century.

Yours sincerely
G N Morkel PREMIER

Enquiries: Riana Geldenhuys (082) 376 4709

Issued by: Office of the Premier, Western Cape, 22 May 2001