This newsletter contains several articles and brief reports. W.B. Vosloo’s article describes external challenges to the South African political system and discusses the major ones, which are independent Africa, the Communist powers, the United Nations, and the Western Powers. Wynand van Graan’s article discusses the development of Lesotho. Its agriculture is in poor condition and nearly half of the population are unemployed. A massive effort is required to improve the situation. The brief reports consider the following: The foreign policy of the People’s Republic of China, President Felix Houphouet-Boigny’s propositions for dialogue with South Africa, the difference between Arab and African military regimes, Salvador Allende winning the election in Chile, Argentina’s new president, and relations between the United States and South Africa.