This issue starts off with Director’s notes on SAIIA Institute’s functions, branch activities and the Transkei’s Conference. Current trends in South African foreign policy looks at the different views on détente and South Africa's foreign policy towards her neighbours. The political outlook in Southern Africa discusses the political outlook of South Africa and how economic stability can influence economic development. The following two articles United States policy towards Southern Africa and The role of South Africa in future US foreign and defence policy covers the foreign policy of the United States under the Carter Administration and Transkei: the question of recognition looks at the future of Transkei as an independent state. Brief reports follow, a list of recent acquisitions in the library at Jan Smuts House and some recent institute publications.