Friday, April 27, 1979
3
KU not alone in S. Africa issue
By LAURIE WOLKEY
Staff Reporter
The pros and cons of university investments in South Africa became a topic of discussion and dispute at the University of Kansas this semester.
But KU is only one of many universities that recently have questioned the effects of their investments on the apartheid system in South Africa.
There has been little disagreement between university administrators and students that apartheid, a system of racial segregation, does exist in South Africa.
The major issue has been whether American companies with South African subsidiaries could benefit from investment on the apartheid system. More specifically, some universities with investments in those companies have questions about the influence in South Africa in the racial system.
ALTHOUGH THE Kansas University Endowment Association recently decided to continue investing in South Africa based campuses at KU for some time. Several student organizations have protested the Endowment Association's decision and some have indicated they would continue to push for the divestiture of KU stocks in the country.
Among the other universities that have looked at the issue are Amherst College,
But their responses to the issue varied.
Miami University of Ohio, Smith College,
the University of Illinois and the University
In an article about university response to the South African problem, it was reported that the board of trustees at the Miami University of Ohio had voted to sell university stocks in two corporations with operations in South Africa.
But, Kay Irwin, administrative assistant at the Miami University of Ohio, said yesterday that the stocks in those two corporations, Union Carbide Corp. and Warren-Lambert Co., were not sold because of the companies' South African operations.
"It was just time to start over and we invested in other companies instead. Iwin
"They have decided not to divest. They are inclined to go along with the Sullivan命题."
The Sullivan Principles, established in 1977 by the Rev. Leon Sullivan, provide an example of how a moral law can be
According to Irwin, the university board of trustees had discussed divesting from South African based companies but had decided not to do so.
Instead of withdrawal from South Africa, the principles call for American companies to follow anti-apartheid guidelines that emphasize positive impact on South African workers.
MEMBERS of the University of Illinois board of trustees said the board was keeping a watchful eye on all the companies and banks in which the university had invested.
According to Earl Porter, secretary of the board of trustees at IU, board members think the university can influence corporations.
"The board will support divestiture only when a corporation fails to implement the Sullivan Principles or when the corp is insolvent in South Africa is strengthenme." Porter said.
"We have written a stockholder proposal to the companies. We voted for the proposal."
THE PROPOSAL includes a list of the improvements to which the university expects the South African based companies to adhere. The spokesman said the board of trustees responded differently to each corruption.
A spokesman for the board of trustees at Amherst College said board members there had voted to remove the chairman.
Porter said that although divisive would be considered "only as a last resort," the board had informed all companies and made sure they were confident their support of the Sylvan Principles.
At least two universities have made
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decisions to divest all stocks in corporations with South African subsidiaries.
Alen Torrey, university treasurer at Hampshire College, said that after numerous student protests, the university agreed to stock in South Africa based companies.
Torrey said the university administration established a campus-based committee on investment responsibility to examine the issue. The committee was split on a solution, Torrey said, "but two months ago we sold the stocks in the three companies."
Howard White, director of public relations at the University of Massachusetts, said the university had divested all holdings in corporations in South Africa.
"The divestiture involved about $620,000 of stock in 20 companies. We simply bought shares of other companies without bases in South Africa," White said.
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