No official ceremonies marked the second anniversary of the Multi-Party Conference (MPC) administration which was installed in Namibia by Pretoria on 17 June 1985. Even supporters of the unelected 'transitional government' appeared to think that there was little to celebrate.

In its two years in office the MPC has failed in its efforts to achieve credibility as an independent force. The final humiliation occurred when its South African masters rejected the 'independence' constitution it had spent 17 months preparing.

The constitution was drawn up by a council representing the seven political parties appointed to the MPC administration. After failing to reach consensus, the council adopted a constitution by a two-thirds majority. This made no provision for the bantustan and second-tier segregated administrations which currently form the bedrock of apartheid administration in the territory.

Two of the MPC parties submitted an alternative constitution. The white National Party, which controls the second-tier Administration for Whites, together with the Rehoboth Free Democratic Party, which administers the Rehoboth bantustan, sought to entrench the second-tier authorities.

The majority constitution was rejected by the South African Minister of Defence, General Malan, and Minister of Foreign Affairs, R F Botha, on a visit to Windhoek on 19 June. On the insistence of the two ministers, the MPC administration unanimously declared that 'the protection of minority rights is of fundamental importance' - thus signalling that they accepted the continuation of 'ethnic' authority. They undertook to revise the proposed constitution - which has not been made public - over the following three months.

Over 2,000 people, led by the Council of Churches in Namibia, demonstrated outside the meeting between the MPC and the South African government representatives. The protesters demanded the implementation of the UN plan for Namibian independence, Resolution 435, which has been undermined by the installation of the MPC administration.

Statements by South African government representatives have made it clear that while they wish the MPC to survive - if only as a negotiating card in their campaign to stave off Resolution 435 - they will only allow it to continue in Windhoek on South Africa's terms. This was underlined when Pretoria reduced its funding to the client administration by 40 per cent.

As South African grants make up a quarter of the MPC's finances, the cut caused a budgetary crisis. Despite this, the MPC presented a budget for 1987/8 which reflected a 20 per cent increase in spending on the military. A further R4 million was allocated to a newly-established National Intelligence Service. Apart from grants to the bantustan and second-tier authorities, 'security' constituted the largest allocation - 7 per cent of the budget. This expenditure is only a fraction of overall military expenditure, as Pretoria directly bears the costs of equipment and operations and pays the salaries of the thousands of South African troops occupying the territory.

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