Using Films on South Africa:

an activation kIit on investments USING FILMS ON SOUTH AFRICA: AN ACTIVATION KIT ON INVESTMENTS

Written by: With the assistance of:

Larry Adelman Bruce Schmeichen California Newsreel's Southern Africa Media Center Lawrence Daressa

Published by: The Africa Fund Price $3.00 May 1980

TABLE OF CONTENTS

In trod uc tio n ...... 1...... What Do You Do When the Lights Go On? Active Viewing The Handbook Part O ne: P reparation ...... 2...... Step 1: Purposes Step 2: Planning Step 3: Preview Step 4: Film Projection Part Tw o: Procedures ...... 3 Step 1: Media Environment of Concern Step 2: Questionnaire Step 3: Film Introduction & Fact Sheet Step 4: Show Film Step 5: Post Film Discussion Section Discussions & Report Group Discussion Resolution Part T hree: F ollow -U p ...... 6 Step 1: Goal Step 2: Form of Action Step 3: Procedure Investment Reference Guide Investment Inventory Step 4: Outreach

APPENDICES

Appendix A: Questionnaire (Investment Profile & Invest Survey) ...... 8 Appendix B: Fact Sheet and Contrasting Statements ...... 9 Appendix C: Film Synopsis and Evaluations ...... 10 Appendix D: Meaning of Recent Changes in Apartheid: Weihahn Report ...... 13 Appendix E: The Case For and Against U.S. Investment in South Africa ...... 16 Appendix F: Voices for W ithdrawal ...... 23 Appendix G: The Bank Campaign ...... 26 Appendix H : D ivestm ent ...... 29 Appendix I: Alternative Investm ents ...... 32 Appendix J: Investment Reference Guide ...... 33 Appendix K: U.S. Corporations and Banks in South Africa ...... 34 Appendix L: Sam ple Press Release ...... 41 Appendix M : R esources ...... 43

Photo Credit: S.A.L.C., Ann Arbor, Mich. USING FILMS ON SOUTH AFRICA: AN ACTIVATION KIT ON INVESTMENTS Introduction

You're probably reading this handbook because you are about to show a film on apartheid. Every decent American abhors apartheid. That isn't the problem. Rather, they ask, what can they do about it? South Africa is 10,000 miles away and events there seem out of our hands. Once everyone agrees that apartheid is deplorable, then what? What can you do when screening a film to help translate this concern into social action? More and more organizations feel that one answer lies in the use of their investment dollars. It is, afterall, our money which is both invested by corporations and loaned by banks to South Africa. Around the nation, church, student, labor, civic groups, and even municipalities are beginning to look at their bank account, investment, pension fund, and consumer dollars as potential instruments for influencing U.S. government and corporate policy towards South Africa. In a further exciting development, many of these same groups are beginning to examine ways to use these monies of theirs to meet some of the pressing needs-such as jobs and low cost housing-in neglected areas of their own communities. This approach allows for many possibilities of concrete actions, actions which also provide a very real link between the futures of our own com munities and the lives of black South Africans. Films such as Six Days in Soweto and Last Grave at Dimbaza can play an effective role in pro moting such activity. But the effectiveness of these films is limited by the methods you use while presenting them. Making use of questionnaires, simulation games, checklists, a discussion guide, background readings, and a resource guide, this handbook will help you place your film in a context where it will not only inform, but initiate specific action programs. It is intended to help a group develop a sense of itself as investors working together to take responsibility for the social consequences of their invest ment dollars. After first demystifying the role of investment as a social phenomena and helping the group realize that they themselves actually are investors, the kit will then facilitate the re-examination and re-definition of the group's own social role and potential activities with respect to apartheid. What Do You Do When the Lights Go On? Upon the return of one of our films a few months back we asked the booker what he did directly following the screening. "Turned on the lights, of course," he replied somewhat quizzically. Though his complete lack of comprehension of the terms of the question was in itself unusual, practically speaking, the great majority of those who use our films do little more following a screening. We've all had the experience of sitting in a darkened room estranged from our invisible neighbors, staring at a larger than life-size moving ikon up on the screen in front of us. Suddenly, the lights go on and the pupils contract. Perhaps we rub our blood-shot eyes. The group 'facilitator' stands up and ten tatively asks, "Any questions?" A deadening, anxious silence roars across the room. We uncomfor tably squirm in our seats averting our eyes from those of the 'facilitator' hoping that someone will just say something, anything. Whatever discussion is finally elicited then all too often concerns the merits of the film itself. Though the film is over the focus of audience activity remains the film. This is not surprising. Film viewing is generally a passive experience. We go to the movie, turn on the TV, or view a film in class, we expect to be entertained and, at most, informed. We sit back passively and consume the film's information content or story line. But how do we throw attention off the screen and back upon the group itself? How can we use the film not just to learn about what's on the screen, but to give ourselves a new perspective on our own situation? Remember, yours is a non-theatrical film screening. People are not coming to the film as 'film goers' as they would to see Star Wars or Apocalypse Now. Rather, they come as church members, or as trade unionists, as students, or as concerned citizens. They come as members of your class or organization. Their interest in the film is not so much its 'filmness' as its relationship to the 'matter at hand.' In this case, the 'matter at hand' is South Africa and your group's relationship to it. Perhaps you're students whose university endowment is invested in companies in South Africa. Or perhaps you're members of the International Longshoremen and Warehousemen's Union who handle cargo coming from or destined forSouth Africa. Or perhaps you're a member of a church whose funds are deposited in banks that make loans to South Africa. Though reasons for the specific screening vary, all of you are presumably showing our films because you find apartheid abhorrent and you'd like your group to do something about it. But if our aim is to move beyond the generation of concern and sympathy, if ouraim is to encourage actual involvement, then we must develop more effective methods of presenting and utilizing film for this purpose. Simply screening the film and asking "are there any questions" will not do. Active Viewing We at California Newsreel's Southern Africa Media Center feel that education is not simply a means of implanting 'correct ideas' in people's minds. Rather, education should empower people with tools which promote the conscious reflection and action upon their environment in order to transform it. We must develop people's critical capacities, not short-circuit them. Education should help people move from positions of submissiveness and apathy to involvement, activity and self reliance. Our experience suggests that the key to developing the effectiveness of film in organizing and educational situations is the degree to which the film can be integrated into a well-defined context of active inquiry, and into a collective exploration of new paths of social action. We call this method of using films 'active viewing.' We believe that the customary methods of film presentation must be re-conceived for these pur poses. This handbook will help you develop a structured context intended to promote your group's ac tive viewing of the film you are to screen. It will help you develop an integrated program of learning ac tivities centered around the film screening. These activities will help your group understand apartheid and, most importantly, its own potential for involvement in ending it. For, as many organizations are finding out, even apartheid 10,000 miles away is subject to influence by the initiative of their group.

The Handbook This handbook is divided into three sections: Preparation; Procedures, and Follow-Up. At the end comes the Appendices containing the various questionnaires, fact sheets, and other materials refer red to within. You can copy and pass out the appendices to your group when appropriate. There is not yet any one single film that directly addresses the question of the role that our in vestments play in South Africa. However, there are a number of films that implicitly shed light on the issue and can be used with this handbook. Last Grave at Dimbaza, despite being slightly dated, re mains the best film for this purpose. Others you will find useful include Six Days in Soweto, Free Namibia!, and Generations of Resistance. You might also use the kit with the slideshow Banking on South Africa. The kit can be adapted for use with the film on multinational corporations, Controlling Interest.

PART ONE: PREPARATION

The success of your session will probably be determined more by your preparation than by any other single factor. This includes both preparation for: -Your plan of action for the session itself. -The actual mechanics of film projection.

Step #1: Purposes. To begin, of course, you will want to sharpen your purposes. A. What do you want the group to be and do differently? B. What interests, preconceptions, and resistances will people bring to the film screening? Try to answer these questions in writing to help you clarify your thoughts.

Step #2: Planning. Now read through the rest of the handbook. It presents a specific program of learning activities to be used with your film. You may want to follow it closely, or you may want to develop your own original program, perhaps borrowing material from the handbook and from other sources as well. To help you decide, when reading the handbook, look for sections that are either superfluous, irrelevent, insufficient, or contradictory to your written purposes. Then change that section of the program to better reflect your aims. Always remember that whatever program you ultimately follow a guide is just that, a guide. Do not be too rigid. Sometimes the most informative and insightful discussions and suggestions occur at the most unexpected moments. Be flexible, and most importantly, listen. But always be aware of the process becoming pointless, repetitive, or descending into acrimonious debate. Sometimes discussion will be dominated by one or two strong and intimidating personalities. At these moments, do not be afraid to step in, sum up, and move on to the next step.

Step #3: Preview. Preview the film yourself before the screening. How can you lead a discussion if you've never seen the film?

Step #4: Film Projection. Many peole-probably yourself included-associate film screenings with breakdowns, fuzzy pictures, and (most irksome) inaudible sound. Do not learn how to project a film at your group's expense! Here are some points to consider. A. The Hall. 1. Light: Does the room black out? 2. Acoustics: Bad sound is unquestionablythe most serious fault of all film screenings and therefore deserves special attention! High ceilings and concrete floors and walls make for echoey rooms and the boomy, unintelligible sound you've heard so often. The more carpets, drapes, and soft furnishings (including chairs) in the room, the better the sound. Stand in the middle of the empty room and clap your hands. If it echoes and booms, the room is poor. Look for another. B. The Projector: All projectors are simple to operate when you know how. Get the lender to show you how to thread the film. Most projectors have a threading diagram attached. Always have a trial run before the show starts. Points to watch: 1. Is the film correctly threaded around the sound head? If not, the film will sound like it's coming from underwater. 2. Picture size: biggest is not necessarily best. A small bright picture may be better than a large dull one. 3. Place the projector as high as possible so late comers don't cast shadows on the screen. 4. Speakers: If you have external speakers place them high as well (shoulder high is ideal). Otherwise, the sound gets lost in the audience's feet. Place them in front of the room by the screen. 5. Sound: Adjust the volume. A full hall soaks up more sound than an empty one. Check sound quality away from the projector. If the sound is not clear and crisp enough, turning up the volume does not help! Instead, turn the bass control right down and the treble right up! 6. When all this has been done (before the group has arrived), run the film, adjust the focus on the leader or the titles, and adjust the volume. Rewind and relax. C. Don't forget: 1. Proper size take-up reels. 2. Extension cords with the right plugs for the outlets. 3. Fuses, spare bulbs, and a screwdriver.

PART TWO: PROCEDURES

This section consists of an actual five-step program of learning activities to use with the film.

Step 1: Media Environment of Concern Our Media Environment of Concern consists of two parts: a photo exhibit and an audio cassette. The photo exhibit (adapted from one produced by International Defense and Aid) is portable and easily mountable. It con tains scenes from life under apartheid along with a brief descriptive text. The audio cassette contains a recording of freedom songs and music from South Africa interspersed with recordings of Steve Biko and South African poets. It can be played either along with the photo exhibit or by itself as people arrive at the film screening. It is particularly well-suited for setting the mood for the event. If your group meets regularly, you should consider mounting the photo exhibit and playing the cassette in advance of the event. In this manner, people can begin to reflect upon the problems to be considered ahead of time. Well-trafficked places such as a church lobby, a lunchroom or a classroom make good locations. An event that takes over a full day or so-such as a conference- also offers and an excellent opportunity for mounting the exhibit.

(NOTE: The Media Environment of Concern is a separate item from the handbook. It can be rented from the Southern Africa Media Center for $10.00 plus shipping.)

Step 2: Questionnaire As stated in the introduction, this handbook aims first to develop the group's sense of itself as investors, and then to develop its sense of responsibility for the social consequences of its investment decisions. To successfully develop a responsible action program with regards to our investments in South Africa, we must first make conscious the group's own underlying preconceptions of the issue. Filling in and discussing the Questionnaire (Ap pendix A) will help people begin to conceive of themselves as investors, and to re-consider the nature of investment.

Background. We usually don't think of ourselves as investors. Yet, if we have a bank account, contribute to a pension plan, contribute to a university or church endowment, or simply pay taxes (which are then paid into public employees' pension funds), we are. For citizens, as well as organizations and public bodies (such as churches, universities, union pensions, city, county, and state public employee pension systems, etc.) regularly place hundreds of billions of dollars in savings accounts, corporate stocks and bonds, and real estate. The City and County of Los Angeles, for example, has $7 billion in investments, most originating from their public employee pension funds. A good-sized church may have hundreds of thousands of dollars in its building and other funds which it invests; the denomination as a whole, millions. Individuals in the U.S. have a total of $125 billion deposited in savings accounts. The most we usually demand of these billions of dollars is that they bring us a return, in the neighborhood of 5 or 6 % for a savings account. If we place $100 in a savings account, this means we simply hope to have accumulated an extra $6 one year later. But what happens to this money? Most of the group probably won't be conscious that our savings have additional effects upon our lives other than bringing us our 6% return. We don't consciously realize that these monies of ours are used by others-banks and corporations. How they are used determines the very nature of economic development and the quality of life in our society. This is investment. -Why is there a parking garage here but a new factory there? - Why is there old, dilapidated housing in one part of town while new, luxury condominiums go up in another? - Why is one plant filled with old, out-of-date machinery and laying off workers, while another of the same company has recently purchased new machines and is expanding and hiring? - Why has one town been deteriorating for years, the shops boarded up and nothing new being built, while another town is filled with new factories or gleaming office buildings? This never-ending process of economic growth and decay is not 'natural.' Rather it is the result of conscious decisions to invest money in specific ways-decisions made by others with our money which effect all our lives.

- Will there be enough jobs? -What kinds of jobs will there be? - What products will be manufactured? - What forms of energy will be developed? Nuclear? Solar? - What kind of transportation system will we have? - Will there be adaquate housing? Again, all are determined by how investment funds are employed. Out of investment comes the material fabric upon which we live our lives. Investment has always taken place. Indeed, it is because of thousands of years of investments that we can wake up in the morning not in a bed of pine needles in a cave, but in a king-size four-poster. But it has only been upon the recent development of our capitalist economy that investment decision-making power became vested in banks and corporations. At the same time, today, fully one-half of all new investment in this country originates from citizen savings in the form of bank accounts, pension funds, stocks, bonds, endowments, etc. Investment can be said to be truly 'social' both in its source and its effects. Yet it is privately controlled. (The other half of investment funds originates from that portion of corporate earnings which are then re-invested by the company, that is, profit made by the company that was not distributed as dividends to the owners. In Great Brit ain, this portion of the profit is often referred to as the "social wage," i.e. that portion of the workforce's 'unpaid wages' which are invested by the company, thereby having an impact on society. Implicit in the language, social wage, is the notion that this money should be subject to social control.) To summarize, control over the use of investment funds is vested in banks and corporations and separated from both the source and impactee of these funds, the public.

Filling Out the Questionnaire. You can make copies of the Questionnaire from Appendix A in the back of the handbook. Pass it out at the beginning of the event. Often people find it most effective to fill it out as a part of a group process rather than individually. Keep a run ning list of the answers on a black board, a large sheet of butcher paper, or newsprint. If you are pressed for time and your group meets regularly, consider passing out the Questionnaire ahead of time, asking people to fill it out before they arrive at the event. The Questionnaire consists of two parts: A. The Investment Profile will help people realize that they themselves are investors and determine the scope and scale of their investments. B. The Investment Survey will help people look at the consequences of the uses to which investment dollars are ultimately put. It will challenge them to identify what's done with their money, how those decisions are made, and who makes them. Finally, it will ask some open-ended questions such as whether they feel that their monies are in vested in such a way as to best meet social needs and to list other considerations, if any, besides 'rate of return' when looking at investment possibilities. As you take an inventory of the various responses to the Questionnaire, the group should begin developing a sense of the wide range of ways that all of the people in the room are indeed investors. If the group either itself constitutes or is part of a formal organization such as a church, trade union, school, etc., the group-as-a-whole is an investor as well, since it undoubt ably has surplus funds in bank accounts, stocks, bonds, etc. Make this clear. Yet, as the group fills in the Investor Profile, its members will probably come to realize that they have very little idea of how their investment dollars are actually employed. Do they know, for example, that more of the public monies of San Diego are invested in companies which have investments in South Africa than in San Diego? What about their own city? These are good points to bring up while discussing the meaning of the results of the Profile. The Investment Survey attempts to help the group see that the use of these monies determines the shape and direction of economic development, that investments affect us all. Remember also to refer to the degree to which public monies are the source of investments (as noted in the background section above) when answering question #3 in the Survey. Even though investments affect us all and even though public monies are a major source of investment capital, banks and corporations retain sole control over investment decisions. Once they acquire our money (be it through savings accounts, stocks, bonds, pensions, whatever), they use it as they see fit (albeit they must make their investments within the confines of certain laws; if GM, for example, is to invest in new auto production, it must produce autos which meet certain minimum pollution standards). This is brought out in question #7. Does allowing banks and corporations sole control over investment best ensure that investment monies will be employed to meet social needs? Should there be greater social controls over the use of this money? What kinds? Do you feel that you have the right to direct a corporation how to invest? This is the type of discussion the last question should lead to. Since it is so open-ended, you should allow extra time for its discussion.

Step 3: Film Introduction and Fact Sheet A. Now it's time to introduce South Africa. Either pass out copies of the Fact Sheet (Appendix B) or list the facts includ ed in Part One of the Fact Sheet on your blackboard or newsprint. B. Point out that some of the group's investment dollars are no doubt being used in South Africa. Again, you may bring up the example of San Diego (#6 on the Fact Sheet). Investment is one hidden umbilical cord that ties the group to that seemingly remote country. Has your bank loaned money to South Africa? As the Fact Sheet points out, over $2.2 billion of U.S. bank loans were outstanding to South Africa in 1976. Perhaps you may have purchased stocks or bonds that helped companies open or expand their operations in South Africa. By the end of 1976, U.S. firms had almost $1.7 billion invested in South Africa. What role do U.S. corporate investments-and consequently, the billions of dollars of our money-play in South Africa? Do these investments play a socially useful function? In otherwords, do they promote change or do they func tion to prop-up the universally condemned apartheid regime? From both a moral standpoint as well as that of self-interest, it behooves us to determine the answer to this ques tion. Afterall, it is our money. C. Part Two of the Fact Sheet contains two statements. One is by Henry Ford II, Chairman of Ford Motor Co., a large in vestor in South Africa. The other is by the African National Congress (ANC), one of the organizations recognized by the United Nations as the legitimate representatives of the South African people (the South African government was expelled from the General Assembly in 1974). The two statements make contrasting claims as to whether U.S. in vestments are good or bad for black South Africans. Divide the group into two separate viewing teams. Have one team pretend that they are top executives for Ford, the other, members of the ANC. Have them read the respective statements aloud. Then instruct them to watch the upcoming film looking for evidence that supports their own opinion as expressed in the statements.

Step 4: Show Film: Now you may screen the film. Synopsises and evaluations of Six Days in Soweto, Last Grave at Dimbaza, and Free Namibia! are contained in Appendix C.

(Note: If you are usingLast Grave atDimbaza, note that the film was produced in 1974. Consequently, some of the more blatant details of segregation under apartheid have been changed since the film was completed. Most claim that these changes have been generally cosmetic, taken up by the regime in an attempt to placate international opinion and undercut the increasingly militant and dangerous threat of the black majority. Grand Apartheid, the strategy of separate development and bantustans described in the film and the essence of South Africa's racist system, remains. An article describing the implications of the most recent trends and changes can be found in Ap pendix C)

Step 5: Post-Film Discussion A. SECTION DISCUSSIONS AND REPORTS. Have each of the two viewing teams talk amongst themselves for a few minutes. Ask them to draw up a list of evidence from the film that supports their respective positions. Then ask each team to select a spokesperson or two to share their points with the group as a whole. As the spokespeople report, you might list their points on the blackboard or newsprint. B. GROUP DISCUSSION. At this point, dissolve the two teams and let the groups as a whole subject the two contrasting opinions to scrutiny. Try to have the group argue out the question fully and take a firm position either for or against economic withdrawal from South Africa. It is often hard to stimulate discussions, doubly so if those present are strangers to each other. The following ques tions may help you direct and focus the discussion: 1. The last 20 years have seen an extraordinary increase in foreign investment in South Africa and with it an increase of economic growth. a. Have blacks reaped the benefits of this growth? b. Has repression increased or decreased during this period? c. Does there seem to have been any change in the actual structure of apartheid, i.e. that system of legal domina tion of one race over another? 2. You have seen the size and strength of South Africa's military, police force, prison system, pass system, bantustan administration, and other forms of apparatus needed to enforce apartheid and insure continued racial domination. Could South Africa afford these outlays without foreign bank loans and investments? 3. After the Soweto uprisings, Citibank, Morgan, and the Bank of America lent the South African government $110 million to help cover the government deficit caused by increased internal security and military spending necessitated by the crisis. Should this loan have been made? 4. What would be the effect of economic withdrawal upon blacks, both economically and politically? 5. Why do companies so fiercely oppose the idea of economic withdrawal from South Africa? 6. Where does the capital (investment funds) that companies use to invest in South Africa come from? 7. Can you think of better uses for your money than loans to or investments in South Africa? 8. Do citizens have any right or responsibility to control the use of investment funds, or is the prevailing mode of allowing banks and corporations sole determination of the fund's uses adequate in today's world? (This question is similar to question #8 in the Investment Survey. Compare the answers.) 9. Should we as a group attempt to re-assert control over the use of our investment funds? As the moderator, be sure to look for appropriate moments to refer back to the group's original conceptions elucidated in the Questionnarie about the need for social controls over investment. Note which of their conceptions have been either strengthened or changed. Remind the group that they are talking about the use and effects of their own money. Appendix E contains one outline and two articles which present the respective sides of the divestment and economic withdrawal issue. They provide excellent background which you may find useful in moderating the discus sion. In some circumstances you might want to make copies of the articles and hand them out, perhaps after the event as a form of follow-up. The opposing arguments can be summed up as follows: 1. Against Economic Withdrawal: Foreign investment contributes to economic growth which benefits all South Africans. Indeed, multinational corporations, with their progressive hiring practices and need for skilled labor, provide positive influence and pressure and are a moderating force on apartheid. Furthermore, the withdrawal of investment will cause unemployment and hardship among blacks. 2. For Economic Withdrawal: Despite the dramatic increase in foreign investment over the last 20 years, conditions for blacks have actually worsened and the oppressive reigns of apartheid have been strengthened. The very recent changes have only come as a response to the threat of economic withdrawal and rising militance and strength of blacks. Furthermore, apartheid is an elaborate political system of domination which can only be maintained by the coercive power of the police and military which takes billions of dollars to finance. Only foreign loans and invest ment has been able to provide the margin of economic growth necessary to pay for this expensive system of repres sion. C. RESOLUTION Once the group comes to a decision for or against economic withdrawal from South Africa, you might want to pass your own group resolution on the subject. You will probably find that either reading from or passing out copies of Ap pendix F, "Voices for Withdrawal" helpful. This contains similar resolutions by various South African, international and American church, labor, and civic organizations in favor of economic withdrawal.

PART III: FOLLOW UP

How many times have you been to an event where you became concerned, perhaps even enraged, over a matter of social injustice and then went home angry and frustrated asking, "But what can we do?" The investment issue offers a unique opportunity to do something, to move beyond pious sounding resolutions to con crete actons, to transform the concern and outrage into on-going activity.

Step 1: Goal. During Step 1 of the Procedures section, 'Questionnaire,' it probably quickly became apparent that people were generally unaware of how their investment monies were being used and how those decisions were made. Control over their investment funds were 'entrusted' to others: bankers, investment houses, corporations... The group then went on to realize that social needs do not determine the use of these investment funds. On the contrary, we have seen these monies invested in South Africa propping-up apartheid. Implicit in what has been learned so far is the key to developing an action strategy: If allowing banks and corporations sole control over the use of our investment funds results in mis-appropriation of these funds, then it is logical to assume the need for the group to re-assert control over these funds. This is the goal the group should now set for itself and commit itself to achieve, based on its resolution. The challenge now becomes one of the group's taking responsibility for the social consequences of its investments by ac tively intervening in the investment process. Being accustomed to abdicating this responsibility to the banks and corpora tions, most will find this a new and unfamiliar form of social endeavor.

Step 2: Form of Action. What type of intervention is most appropriate for your group? To date, organizations are generally pursuing one or more of the following activities: A. BANK ACCOUNT WITHDRAWAL. Bank account withdrawal is the form of action most often taken. Individuals, churches, trade unions, pension funds, universities, and even municipalities are beginning to remove their funds from banks which make loans to South Africa. There is a national campaign to encourage the removal of funds from such banks. It is being coor dinated by the Campaign to Oppose Bank Loans to South Africa (COBLSA). There are a number of regional affiliates. Check with COBLSA for further advice and the affiliate near you (see Appendix M: Resources). An article describing the bank campaign is contained in Appendix G. B. DIVESTMENT. Many organizations have also divested themselves of (sold) all stocks and other securities in corporations which have investments in South Africa. This has been a particularly favorite strategy among student groups since univer sities often have large endowments invested in stocks and bonds. An article on the divestment movement is included in Appendix H. C. ALTERNATIVE INVESTMENTS. Some groups are beginning to take the exciting next logical step of looking at alternative ways their funds can be in vested in order to benefit their own communities. This may include community development corporations, daycare, home solarization, low cost, government-secured housing mortgages and other investments. John Harrington's California Alternative Investment Task Force (see Resources) has done a lot a work in this area. An article on some of the possibilities is included in Appendix H. D. STOCK PROXIES. Rather than sell their stocks, some organizations, notably some churches, have decided to vote their stock proxies at annual meetings in support of resolutions demanding the company's withdrawal from South Africa. Many of these proxy actions are coordinated by the Interfaith Center on Corporate Responsibility (see Resources).

Step 3: Procedure. To determine which form of action your group should take and then carry out will take time. Nonetheless, it is a process which you should begin now. What type of investment monies does your group have at its disposal (General fund, building fund, pensions, etc. see Questionnaire)? Where are they invested (savings accounts, stocks, bonds, etc.)? Which of these monies end up in South Africa? Does the group itself constitute the governing structure of its organization with the power to make financial deci sions, or should you bring the issue up with the Executive Board, Board of Trustees, general membership, City Council, or whatever the governing body of your organization happens to be? These are questions the group must answer before it can take responsibility for the use of its investment funds. If the group has committed itself to this goal, then you can begin by setting tasks and establishing committees to carry them out and a date to get together again to share your new information. To help you research this needed information, we have in cluded an Investment Reference Guide and an Investment Inventory. A. INVESTMENT REFERENCE GUIDE. Different types of organizations will have different types of investments as well as different administrative struc tures governing their investment decisions. In some cases your group will itself constitute the body invested with the power to make binding decisions over the future of your organization's investments. But most likely, you will have to convince a separate Executive Board or other official government body of the value of economic withdrawal. To help you determine your organization's financial governing structure as well as the forms your organization's in vestments most commonly take, we have prepared an Investment Reference Guide in Appendix J. It includes infor mation on churches, trade unions, universities, and municipalities. B. INVESTMENT INVENTORY. Once you determine the process by which your organization's money is invested, then you have to determine just where this money ultimately winds up. This is a two-tiered process. First, you must identify which stocks and bonds you own. Then you must determine which of these companies have investments in South Africa. Likewise, you must determine which bank your money is deposited in and whether this bank is a lender to South Africa. The Investment Inventory (Appendix K) is a list of known banks and corporations with investments in South Africa. Once you identify the stocks, bonds, and bank accounts you have, you can use it to determine which of these firms invest in South Africa. Note that the list is not complete. If your bank, for example, is not on the list, that does not necessarily mean that your bank doesn't make loans to South Africa. Write to the bank yourself and ask if they are in any way involved in lending to South Africa. This would include loans to the government and government-owned agencies (parastatals), as well as trade, interbank, or private sector lending. Ask them if they have any current loans outstanding and also ask if they have a public policy prohibiting all such lending until apartheid has been eliminated. It might be a good idea to take this list of questions to your local bank manager personally. Put them on the spot. (Even if your bank is on the list, you might find that asking these questions anyway provides an excellent exercise for the group, allowing in dividuals an opportunity to involve themselves personally.) (As of 1979, banks are required by federal law to make public both their community lending policy and local loans broken down according to census tract. This information is contained in each branch's Community Re-investment Act Report and by law they must allow you to look at it. In this way you may be able to determine if your bank is with holding capital from areas of need in your community (redlining). As your group eventually expands its concern and area of self-activity from South Africa to that of the role of investment in general, you will probably want to explore alternative investments that meet social needs. Again, you may want to refer to the article in Appendix G as well as a more complete bibliography included in the Resources section.)

Step 4: Outreach. Ultimately more important than any specific action your group ultimately takes, is the extension of your initiative to others. Obviously, the money that you withdraw from let's say the Bank of America will not in and of itself influence the Bank to change its lending policies towards South Africa and your own community. Your actions must be multiplied. In vestment decisions must become subject to public control and not remain the sole perogative of corporations. When you withdraw your money or decide to divest a stock, publicize it. Write a letter to the bank manager explaining that you have withdrawn your account because of the bank's involvement in South Africa. Draw up a press release. Call a press conference. Write letters to the editor of your local newspapers. A sample press release is included in Appendix L. Most importantly, tell your friends and associates about your actions and encourage them to follow suit. No doubt, most if not all members of the group are members of another organization as well. Encourage them to do the same with the organizations they belong to. Almost every organization has some sort of account or pension fund handled by a bank: Women's clubs, political clubs, taxpayer's leagues, the NAACP, the Urban League, the local Ecumenical Council, church stewardship council, local union executive board, local labor council, etc. Consider forming an outreach committee whose task it would be to publicize your actions, link up with others, and systematize attempts to encourage other organizations to follow your lead in your community. This would include leading similar sessions to this one with other organizations. APPENDIX A: QUESTIONNAIRE INVESTOR PROFILE-Identification of Your Personal Investment Funds.

1. Have you placed any of your money in a checking account? __ . A savings account? _ . What does your bank do with these funds until you withdraw them? 2. Do you receive a portion of your wages as a contribution to your pension fund? __ .What happens to this money until you reach retirement and collect it? 3. Have you ever contributed to a university endowment? __ .What happens to this money? 4. Do you pay membership dues to a church or synagogue or other organization? _ . How are those monies (above and beyond what is required to pay expenses) used? 5. Have you ever contributed to a church or synagogue endowment or special fund (e.g. building fund)? __ .What is done with these funds until they are ultimately used for their prescribed purpose?

6. Have you ever purchased a corporate stock or bond issue? . Which ones? 7. Have you ever purchased a govt. bond of any sort? _ .Which ones? 8. Have you ever purchased a mortgage-backed security? _ .Which ones? 9. Portions of your city, state, and federal income taxes, as well as part of the sales and property taxes you pay, go to meet current government expenses. However, some of these public funds are always idle. For example, the City and County of Los Angeles has between $1.5. billion and $3.2 billion of idle funds at any one moment. What is done with all this money? 10. Furthermore, a portion of your tax dollar goes to support public employee pension funds. Money in Los Angeles pen sion funds, for example, came to almost $4 billion in 1978. What is done with all this money?

11. Does this group in which you are now meeting have any funds?_. Identify them and say what is done with each.

INVESTMENT SURVEY 1. What areas of your community has seen significant new investment over the past few years and which areas have not?

2. More specifically, what changes in your community over the past few years have you seen which are the result of in vestment decisions? (Rate each category on a 1-5 basis, with 1 being insignificant and 5 being an extremely significant tendency). a. -Old downtown shopping district decaying. j. __ New senior citizen facilities. b. -New shopping centers. k. __ Increase in number of jobs available. c. __ Low-cost housing construction. 1. __ Decrease in number of jobs available. d. New middle income and luxury housing construction. m. __ Increase in interesting, well-paid jobs. e. -Factories becoming obsolete, worn out, etc. n. __Increase in beginning, entry level jobs. f. __New factories being constructed. o. __ Increase in boring, mechanical jobs. g. -New office buildings being constructed. p. _ Public transportation deteriorating. h. -New community health care facilities. q. -Other (describe: i.__ New private health care facilities. 3. Where do you think the money for investments (such as those noted above) comes from? 4. What portion of your own investment money (identified in Investment Profile) do you estimate is being used to meet

pressing social needs? _. Can you specify? 5. Below are a series of criteria for making investment decisions. Rank each one as to what you think its importance should be on a 1-5 basis, with 1 being of no importance and 5 being of great importance. a. -Will the investment promote job growth in the local area? b. -Will there be no risk that the investment might lose money? c. -_Will the investment add to the amount of adaquate housing available to those with low or moderate incomes? d. __Will the investment promote local public policy goals (e.g. revitalization of the inner city, jobs, public transit, increased housing stock, improved day care, promote equal employment opportunity, conserve energy, etc.)? e. Will the investment bring the most profitable return possible as opposed to a modest return? f. -Will the investment bring capital into areas of local need which are capital deficient (e.g. community economic development, cooperative enterprises, socially useful technology, etc.)? g. -Will the investment strengthen a corporation which practices discrimination, engages in unfair labor prac tices, the environment? h. -Will the investment strengthen the economic viability of a country which denies its citizens basic human rights (e.g. South Africa)? 6. Now go back and rank the importance of these same criteria as if you were the chief executive of the Bank of America or Citibank? 7. Who decides what investments are made in our society? 8. Do you feel that such control over the investment process adequately insures that investment monies wil be allocated in a way to best meet social needs?

APPENDIX B: FACT SHEET

Part One: Scope of U.S. Investments in South Africa. 1. Overseas capital has played an increasing role in South Africa's economy. By 1975, foreign investment constituted almost 1/4 of all investment there. (Source: South Africa Reserve Bank, QuarterlyBulletin, March 1973; June 1976) 2. The U.S. is South Africa's largest trading partner, second largest overseas investor, and supplier of nearly 1/3 of its in ternational credit. ("U.S. Corporate Interests in Africa: Report to the Committee on Foreign Relations of the U.S. Senate," January 1978, p.6) 3. From 1974-1976 international bank lending to South Africa nearly tripled. By the end of 1976, U.S. banks held $2.2 billion in loans and credit to South Africa. (Source: Ibid, p.6) 5. The United Nations has identified 539 U.S. companies which invest money in South Africa. Among the largest are: Mobil Caterpillar Exxon Newmont Mining Standard Oil of Calif. Union Carbide Ford Coca Cola Control Data Goodyear ITT IBM General Electric Fluor Firestone Kodak General Motors U.S. Steel Goodyear Kennecott Copper Texaco 6. Among the largest banks which have been identified making loans to South Africa in 1975 are: Bank of America Continental Illinois Citibank Bankers Trust Chase Manhattan First National Bank of Chicago Manufacturers Hanover Trust Security Pacific Morgan Guaranty Wells Fargo Chemical Bank Crocker (Source: U.S. Senate, op. cit. p. 38) 7. The County of San Diego has invested $20.8 million in companies which are involved in South Africa while it has $18.6 million invested in companies which are involved in San Diego. (Source: Walker, Chris; "Public Investment Practices of the City and County of San Diego; 1978; p. A-i)

Part Two: Contrasting Statements "Our policy is that we are remaining in South Africa. In our opinion, we do more for the people of South Africa by staying here and employing them and having equal opportunity to the extent we can. In the final analysis, only a strong economy -built upon profitable businesses-can pay the bills for social progress." Henry Ford II Chairman,Ford Motor Co. "We demand total isolation of the racist regime-no investment and withdrawal of existing investment... It is our firmly considered view that liberal opinion-however well intentioned it may appear-that opposes our campaign for this withdrawal is, in the long run, only delaying the change that is essential if South Africa is to be rid of apartheid and slave labor. It is not enough to grant higher wages here, better conditions there, for this leaves the apartheid system intact, in fact it props it up for longer-the very source of our misery and degradation." African National Congress (ANC) APPENDIX C SYNOPSIS AND FILM EVALUATIONS (Reprinted fromAn Evaluative Guide to Africa-RelatedAudio Visuals, African Studies Center, Michigan State University)

Key to film ratings: 3min-History of apartheid in Namibia and the 1: Poor, 2: Fair, 3: Average, 4: Very Good, 5: Excellent. designation of "homelands." 1 min-Illegality of South Africa's control of Generations Namibia. of 1 min-Bishop Wood states that the only security Resistance of white rule in Namibia is based upon South African support. Color, 52 minutes 1 min-Namibia's gem wealth. Produced by: Peter Davis & the U.N. 1 min-Comparison of black and white labor Rental: $70 practices and conditions. 3min-History of SWAPO; interviews with SWAPO supporters on the change from In 1906, the African chief Bambata led a guerilla peaceful demonstrations to armed strug uprising in opposition to the hut tax imposed by the gle. British colonial power. But the Africans were not 1 min-Namibia's economic base; farming and match for the Gatling gun. The revolt was savagely cattle. suppressed. The British cut off Bambata's head, then 3 min-Life of an African worker; workers are paid placed its picture on a postcard that British troops in small amounts of food which often sent home to their sweethearts. Today, when Afri yields a poor diet, malnutrition, and cans are again taking up arms to re-claim their coun disease. try, it is in the name of Barnbata. 3min-Interviews with white Namibians defend So begins Generations of Resistance, the drama ing apartheid; examples of law enforce tic story of the rise of black nationalism in South Afri ment procedures; interviews with Na ca. Using rare and illuminating archival footage and mibians who have been detained. the insightful testimony of those who led and partici 1 min-Chances for a peaceful resolution of the pated in the events depicted, Generations of Resis situation. tance sweeps through the hidden history of South 1 min-UN resolution for a free Namibia. Africa. 1 min-Plans for a continued liberation struggle. Among the people and events the film brings to life are Pixley ka Seme and the founding of the African APPROPRIATE USES: National Congress (ANC), the Native Land Act and Secondary, undergraduate, and graduate level disinheritance, the construction of apartheid, Nelson courses in political science, history, sociology, and and Winnie Mandela, Oliver Tambo, the Women's economics. Public groups interested in liberation. campaigns of the 1950s, Roberto Sobukwe and the An update on the current situation in Namibia is founding of the Pan African Congress (PAC), the necessary for all audiences. Sharpeville massacre, the Pondo revolt, the building of the underground resistance, the hunger strikes at ACCURACY: 4 PHOTOGRAPHY: 1 Robben Island prison, Bantustans, Steve Biko and PRESENTATION: 4 SOUND: 2 the Black Consciousness Movement. CAMERA AND EDITING: 1 We feel that Generations of Resistance is the most important film release about South Africa since Six The self-condemnation of the whites by their state Days in Soweto. More than a chronology of events, ments regarding their role in Namibia and the por this film provides an historical framework for under trayal of the Namibian willingness to die for freedom standing the meaning and direction of contemporary are the strengths of this film. Beyond these two point South African developments. Generations of Resis and a few updated facts, COLONIALISM: A CASE tance fills a glaring gap by portraying blacks as STUDY, NAMIBIA, is a much better film. FREE NA makers of their own history and not merely victims of MIBIA suffers not only from ideas beyond a super an inhumane system. In so doing, it provides a ficial level. Although the film does discuss the libera positive counterpoint to the grim mood of Last Grave tion struggle (a weakness of Colonialism), it takes a at Dimbaza. pro-SWAPO viewpoint to the exclusion of other groups. The review of Generations of Resistance is taken from the catalogue of the Southern Africa Media Cen PRICE: $40, $30 ter, a project of California Newsreel. DISTRIBUTORS: California Newsreel, New York University OVERALL RATING: 2 Free Namibia 1978 Color Colonialism: A Case Study, Namibia 27 minutes 1974 Produced by the United Nations 27 minutes Color A study of the effects of South Africa's apartheid Produced by the United Nations policy on Namibia, and the growth of SWAPO (South west African People's Organization). A study of the history of German conquest and African resistance, the establishment of the South MAJOR HEADINGS: Namibia, Apartheid, Liberation, African mandate, and an update on efforts of the South Africa Namibian people to free themselves.

MAJOR CONTENT: MAJOR HEADINGS: Namibia, Liberation, South 1 min-images of white life. Africa, Colonialism, Apartheid 1 min-Geographical location of Namibia; Ger man colonization. MAJOR CONTENT: 1 min-Descendants of German immigrants dis 2 min-lntroduction to the locale and geography cuss their commitment to the land. of Namibia. 3 min-Ovambo and Herero lifestyles compared 2 min-scenes of wealthy South Africa; statistics and contrasted. on the degree of this wealth relative to 3min-History of present-day racial strife in South African blacks and to the world in Namibia. general 7 min-History of German colonization and Afri 2 min-the instability of life in the townships for can resistance. its "temporary sojourners" 3 min-WWI and the initiation of the UN mandate 2 min-the takeover of coloured areas of Cape system. Town for use by whites; squatter housing 3 min-Illegality of South Africa's continuing rule for the displaced coloureds on the Cape in Namibia. flats 2 min-Beginnings of intensive liberation efforts 4min-life for a black worker in the cities; and establishment of SWAPO (Southwest evidence of the "colour bar;" statistics on Africa People's Organization). wages, the contract system, the pass sys 2 min-Karl Waidheim's visit to Namibia. tem, etc. 1 min-Creation of the special UN Council on 5 min-life of a domestic in Johannesburg Namibia. 3min-comparison of educational support and 1 min-Future of Namibia's liberation efforts. opportunities for blacks and whites 4 min-the role of foreign corporations in South APPROPRIATE USES: Africa; their collusion with apartheid Secondary, undergraduate, and graduate level 2 min-life in the townships courses in history, sociology, political science, and 6 min-hope for peaceful change; whites prepar economics. Public groups interested in the liberation ing for a confrontation, arsenal of of Southern Africa. weapons; black workers; strikes An update on the current situation in Namibia is 3min-scenes of Dimbaza in the Transkei; the necessary. children's graveyard; statistics on child hood mortality ACCURACY: 4 PHOTOGRAPHY: 4 PRESENTATION: 5 SOUND: 4 SUGGESTED AUDIENCES: CAMERA AND EDITING: 4 Secondary, undergraduate, and graduate courses in history, political science, sociology; general au One of the few films on the Namibian situation, diences. this film is also valuable for its depiction of the initial For most audiences, a short introduction to the resistance to colonization by the Herero and Ovam history of apartheid and an update on the current bo. Few films on Africa take the time to examine such liberation efforts is necessary. examples of resistance. The film clearly details the process by which Namibia became a League of Na ACCURACY: 5 PHOTOGRAPHY: 5 tions Mandate and a United Nations Trust Territory PRESENTATION: 5 SOUND: 5 under South African dominance. The sequence on CAMERA AND EDITING: 5 liberation efforts is outdated, but still relevant to this overview of the Namibian situation. With the introduc Though there are other more contemporary films tion mentioned above, the film is a very good inktro on South Africa, this film is still one of the best in duction to Namibia; however, the liberation efforts troductions to the country's racially based social, could be discussed in greater detail. political, and economic problems. Shot secretly in side South Africa, it reviews the full impace of apar PRICE: $10 or $25 theid, especially the effects of the system on black DISTRIBUTORS: UW Lutheran Campus Center. family life. Utilizing camera movement, background California Newsreel. music, and editing patterns, the film presents a cohe OVERALL RATING: 4 sive concept moving quickly from scene to scene in newsreel-like fashion. The cumulative effect is of the overpowering might of the regime. The film's major weakness that makes an intro Last Grave at Dimbaza duction imperative is its failure to document any 1974 African liberation organizations at work against apar 52 minutes theid. Color Produced by Morena Films (Nana Mahomo) PRICE: $65, $30.85 DISTRIBUTORS: California Newsreel, University of A systematic investigation of the effects of apar Michigan theid on the day-to-day life of South African blacks. OVERALL RATING: 5

MAJOR HEADINGS: South Africa, apartheid,

MAJOR CONTENT: 3 min-scenes of life in black townships and ban Six Days in Soweto tustans; statistics on the break-up of 1978 black families due to apartheid Color 2 min-scenes of wealthy white areas of Johan 50 minutes nesburg; statistics on apartheid Produced by Anthony Thomas for ITV 2 min-scenes of the Nationalist Party's military strength; statistics on the division of land An in depth study of the June 1976 riots in and between blacks and whites around Soweto, South Africa. 7 min-scenes of life in the bantustans; history of policy of "separate development" and sta MAJOR HEADINGS: South Africa, Apartheid, Con tistics on the poor quality of life in the temporary History, Families, Liberation, Race Rela bantustans tions 2 min-scenes of a cattle auction near the Trans kei; statistics on the wealth of white farm MAJOR CONTENT: ers who exploit black labor 3min-ntroduction; scenes of the British in South Africa; scenes in Soweto; Anglican 2 min-An interview with Gatsha Buthelezi who church; shooting practice for whites in Jo believes the police incited the riots. hannesburg. 2 min-Description of the hostel massacres by 2 min-Scenes of the destruction in Soweto dur victims of the assault. ing the riots. 5 min-Police involvement in the riots, according 2 min-Johannesburg one year after the riots; to witnesses, increased after the first out changes in petty apartheid; continued dis breaks; victims describe the shooting and tance between blacks and whites socially, violence that resulted. politically, and culturally, is contrasted to 3 min-October 24, 1976; witnesses describe the their geographical proximity. so-called "cemetery killings" 3 min-Interviews with blacks lunching at a Holi 2 min-A girl who lost her leg during the riots ex day Inn regarding the meaning of true presses her conviction that the struggle freedom. will continue until liberation is achieved. 2 min-Scenes of Soweto. 3min-Interviews with black families in Soweto APPROPRIATE USES: who discuss the responsibilities of child Secondary, undergraduate, and graduate courses ren in Soweto ("these children are not chil in sociology, anthropology, political science, and ren at all") as a justification for a back history. Also highly recommended for general audi ground to the children's and students' ences and research/archival use. struggles For all audiences, a follow-up discussion of the im 3 min-A definition of "Bantu education;" exam pact of the riots, as well as a brief history of apartheid ples of the overcrowded classrooms and are suggested. curricula oriented toward subservience that are deeply resented by the blacks, es ACCURACY: 4 PHOTOGRAPHY: 5 pecially the students. PRESENTATION: 5 SOUND: 5 1 min-The Johannesburg labor exchange; CAMERA AND EDITING: 5 classes being taught in Afrikaans. 1 min-SSRC (Soweto Student Representatives SIX DAYS IN SOWETO is a carefully detailed study Council) members discuss plans for the of the June riots in 1976 in Soweto and the most pow demonstration that preceded the riots. erful film in current distribution in 1980 on South 4 min-A methodical consideration of the facts of Africa. Beginning with the original intent of the stu the first day of the riots; scenes of Or dents to hold a peaceful demonstration, the film sys lando High School, once the pride of tematically examines each event, allowing students Soweto, now depleted; interview with the and their families who were involved in the ensuing school's headmaster regarding recent violence to describe the events. As the events are ex provocation by the police and how atti plored chronologically, several other major themes tudes toward school have changed since are included: the life of a child in Soweto; the life of a June 1976. worker in a hostel, and the courage of the students 6 min-A description of the events of June 16 by who are struggling for liberation. These interviews students who were there, emphasizing the give the film a strength and view of the reality of life in escalation from a peaceful demonstration Soweto that is missing from films that interview only to a riot; interview with a girl who is para the leaders of the various movements. The extremely lyzed as a result of the violence that high production qualities of the film underscore the occurred. strengths listed above. 1 min-The white upper class response to and The weakness of the film is the lack of even a cur apathy toward the riots. sory introduction to the history of apartheid or an up 3 min-The military comes out in force; interviews date on the effect the riots had on South African soci with students describing the impact of the ety, but this can easily be corrected by an introduc military. tion and follow-up discussion. In essence, the film is 1 min-A man details the destruction of his family a dramatic, powerful, positive counterpoint to the as a result of the riots. somewhat hopeless mood of LAST GRAVE AT DIM 2 min-Other examples of police brutality and de BAZA. struction. 2 min-St. John's Church; the Queen's Silver PRICE: $75.00 Jubilee. DISTRIBUTORS: California Newsreel 1 min-The "hostel massacres;" a decription of OVERALL RATING: 5 life in the hostels. APPENDIX D: RECENT CHANGES IN APARTHEID

ABREAKING CANGE THE LIN

with a total membership of 148,000. In 1946 the strongest of these, the African Mine workers Union, took 74,000 men out on strike. Police broke the strike only by kill ing nine and wounding 1200 more. The coming to power of the Nationalist Party brought new forms of repression. After Wiehahn Hundreds of union leaders and members have been harassed and imprisoned under the Suppression of Communism Act of New Forms of Control 1950, which defined communism as any ef fort to bring political, economic, or social change, and under the Bantu Labor Act of 1953, which declared all strikes by African workers as criminal offences. But the union movement had begun to overcome even these measures by 1961. Then, with the Sharpeville massacre and the subsequent banning of all major African political organizations, it too faced new and more severe attacks. Numerpus trade unionists suffered banning, imprisonment, and exile, and the unions were once again far reduced in strength. Yet the 1970's saw another revival of black labor organization. Today the African trade union movement is com prised of some 27 unions with between 50,000 and 70,000 members. Attempts at joint organization have included the recent formation of the Federation of South African Trade Unions (FOSATU) repre AF: senting 12 major black unions and 45,000 workers. Organizers for SACTU (the South African Congress of Trade Unions, linked to the African National Congress) also con Black strikers in 1974 ... protest will still be difficult. tinue to work inside South Africa clandes tinely. The by Michael Shafer The new legislation does not herald the unions still represent only a tiny reform of South Africa's apartheid labor portion of the total black work force of 9.5 million. Their potential When it was first released on May 1, the policies, nor even the beginning of such a for growth, Wiehahn Commission report on labor in process. Rather, it marks the start of a new though, makes it essential to the South South Africa raised hopes that reform was and sophisticated effort to control and, if African regime that they continue to be finally in the offing. At first glance, its possible, to break the black trade union carefully controlled. recommendations that black unions be movement. Like many other recently an The immediate impetus for Wiehahn and recognized and job reservation be ended nounced "reforms," this legislation the new labor legislation lies in the African seemed almost revolutionary against the displays the characteristic features of the strikes of 1973 and the Soweto revolt of back drop of apartheid. Within 24 hours "moderate" apartheid policies of the pres 1976. In 1973 more than 67,000 black the government made known its approval in ent Botha government: cosmetic de-raciali workers participated in 246 strikes across a white paper on the report and announced zation and concessions to a tiny minority of South Africa. Strikers virtually paralyzed that new legislation formalizing the com blacks, combined with substantial tighten the industrial center of Durban by forcing mission's recommendations would soon be ing of the restrictions on most Africans. 120 companies to shut down, idling 70,000 put before parliament. workers. The euphoria did not last long, though, The government responded with minor as the implications of the report's fine print Wiehahn's Roots pay concessions, greatly increased repres became clear. By the time the new Industrial Today's efforts to control the black sion, and an effort to fragment the African Conciliation Amendment Act based upon union movement are but the most recent in unions through the implementation of a its recommendations passed parliament a long history of labor repression that long-ignored measure calling for the crea recently, even those initially encouraged by began at the turn of the century. In the tion of factory-based "works committees" the Wiehahn report had completely re 1920's the African trade union movement with token negotiating powers. Soweto and versed their evaluations. mustered 146,000 members. The depression the active role played by trade unions in the and a special amendment to the Riotous events of 1976 proved these measures insuf Michael Shafer, a PHD candidate in Assemblies Act, originally aimed at white ficient. Faced with revolt at home and political science at Harvard,has been work labor, killed the movement in the early pressure from abroad, the South African ing as a research associate this summer at 1930's. But it soon reappeared. By 1945 the government placed the country on a war the American Committee on Africa in New Council for Non-European Trade Unions, York. footing in 1977 and formed a number of founded in 1942, had 119 affiliated unions study commissions, of which Wiehahn was one, to develop a new strategy for apart any time and without giving reasons there still administered directly by South Africa. heid. fore, [to] withdraw the registration of a Thus, the vast majority of African workers In constituting the Wiehahn Commission trade union." Black unions thus may apply are denied the status of "employee"-a in 1977, the government charged it to make for registration, but it may be denied person eligible for union membership recommendations for "the adjustment of without explanation or granted provisional -because either they fail to meet the the existing system." The commission ly under whatever terms, however arbitrary, residency requirement or, even if they do, found many aspects of the South African that the registrar desires. Registration may they do not work at an approved job. labor system "exemplary" and proceeded in be rescinded without reason. Barred from union membership are its task on the assumption that as much as The new legislation will emasculate the African miners, agricultural workers, and possible of it should be retained or simply presently unregistered black unions. By its domestics, to name just a few, although "modernized." At no point did Wiehahn definition of eligibility, estimates Helen they constitute 90 percent of the work force challenge or even question what has been, Suzman, opposition member of parlia in mining, 75 percent in agriculture, and since the beginning of settler rule, the cen ment, fully 80 percent of their members will virtually 100 percent in domestic service. tral proposition of South African labor not qualify and will consequently be These workers are the potential strength of the black union movement and those most The Wiehahn Commission at a Glance in need of unionization. According to the " The new legislation will provide the means necessary to co-opt the small most recent figures available, a full-time but increasingly essential skilled portion of the black labor force, while agricultural worker receives in cash and further removing the African majority from political, social, and kind the equivalent of just $47 a month, or economic equality.. less than one-third of the amount referred " The registration of African unions will eliminate from their ranks a sub to by the Financial Mail as the "scientific stantial majority of their members through an exclusive definition of measurement of the rock-botton income an eligibility denying the status of "employee" to all but a tiny minority of ordinary African family needs to keep body black workers. and soul together." Similarly, the 666,000 " The effective reservation of skilled jobs for whites will continue to exist, blacks employed in South Africa's $7 although it will be entorced by new and no longer overtly racial means. billion mining industry take home far less in " Unions will be stripped of their important political function in the black wages than their white counterparts who community and of control of labor-relations training. constitute just 10 percent of the mining " All facets of union operations will be opened to direct government work force. scrutiny. No Politics Allowed " The few loop-holes by which international pressure for change in South In order to register, a union will also have Africa's apartheid labor policies have been brought to bear will be to cease all contacts with political or quasi sealed. political organizations as they are defined " Two new institutions, the National Manpower Commission and the In by the government. This measure will break dustrial Court, will greatly improve government surveillance and control the close link between the African unions capacities, not the least because both will be largely exempt from and the black consciousness movement. statutory regulation. Unions will be forced to file detailed reports of membership, revenues, and expend policy: that Africans are not equal citizens stripped of their union rights. The Financial itures, and any other information that the and that black workers do not and Mail points out that as a result of Wiehahn, cannot government may desire. The new legislation "the Durban black union movement, constitute "civilized" labor. strips the black unions, both registered and regarded by many as the backbone of the unregistered, of the right to engage in in entire movement, could be put Registration a New Weapon out of dustrial-relations training. The white paper business." A registered The most often cited "reform" called for union caught with on Wiehahn explains that the government by the Wiehahn Commission is the registra ineligible members will be subject to a fine should assume this essential union function tion, or official recognition, of black of almost $600 per worker and may lose its in order to apply "corrective training" and registration, while unregistered unions seek unions for the first time in the history of "to impart a distinctive character" to labor South Africa. What is overlooked is that ing recognition must purge ineligible relations in South Africa. registration provides the most effective members to qualify. means of controlling unions. The re Job and Skill Limits quirements for registration allow recog Excluding Migratory Work Both Wiehahn and the new labor legisla nition of only those unions directly But the cutting edge of the new legisla tion have been highly praised for the supportive of the government and its defini tion is its exclusive definition of eligibility elimination of laws barring blacks from tion of "the national interest." Unions not for membership in a registered union. Con skilled jobs. This is only partially true and found to be "legitimate," "bona-fide, " trary to the Wiehahn Commission, which very misleading. In fact, the commission and "relevant" will be effectively recommended that in time eligibility be ex recommended the immediate removal of eliminated. tended to migrant laborers, the new law only those job reservation categories no Whether a union fills this description will denies it to all but a small minority of longer in use. As for the remaining five be decided by the industrial registrar in African workers with residency rights in the categories, it suggested that they be secret and without reference to a fixed and white areas and with long-term employ "phased out" over an undetermined period known standard. In the language of the new ment. In South African usage, the term "in cooperation with the parties legislation, a union seeking recognition may "migrant" refers not only to foreign concerned," that is, the white unions at initially be registered "provisionally" by workers, but also to South African blacks whose insistence job reservation was first the registrar "on such conditions as he may from the various bantustans, both those instituted. Among the categories still in determine." The registrar is also free to such as Transkei which Pretoria considers force is that one which regulates the motor amend any of the conditions at will and "at "independent" and those such as KwaZulu assembly industry and the operation of the tion's impact by suggesting that such inte gration should be a matter decided by employers and their employees. It is not a fundamental change. As Foreign Minister Pik Botha once argued, "I am not prepared to die for apartheid signs in a lift." But where foreign actions, whether by governments, companies, or private groups, go further, the commission is ada mant. It emphasizes that it "can certainly not be influenced in its deliberations and recommendations" by outside pressure and flatly rejects what it refers to disparagingly as "alien labor practices." The commis sion's stance exposes the dishonesty of the position taken by American corporations operating in South Africa, many of whose officials testified at its hearings, that their presence is a positive force for change. potentially threatened white workers, the commission also suggested a battery of pro Prospects for the Future tective measures including recourse to the During a recent tour of the United States, minister of labor. The report does not ad Minister of Cooperation and Development dress the Mines and Works Act and the Pieter Koornhof told a Palm Springs au Black Building Workers Act, both of which dience, "If there are any who are still skep still contain job reservation clauses and tical about our real intentions, they need regulate industries employing hundreds of only to study recent developments in South thousands of African workers. Africa." Taking Wiehahn in evidence, Statutory job reservation covers less than those intentions seem to be to break the one-half of one percent of the work force autonomy of the African trade union move and is neither the most common nor the ment, to create a settled, semi-privileged most effective tool used to deny Africans class of blacks in the urban areas to fill skilled jobs. Today access to these positions shortages of skilled labor, and in doing so depends far more on closed shop contracts to strip the African majority of its logical with white unions. Citing the possibility of leaders. Whether South Africa's "labor "labor unrest" if these contracts were out reforms" will achieve their end is an open lawed, the commission sanctioned their question. African unionists' successes in continued use. As a result, overtly racial overcoming past efforts to cripple them job discrimination has been removed from suggest that they may not. El the statute books, but not from practice. Wiehahn Update Wiehahn Didn't Blink The author of a recent Sunday New York Since our press-time, the South Times article on South Africa suggested African government has announced the that the government "winked" at the viola extension of trade union rights to tion of petty apartheid laws by American migrant and commuter black South multinational signatories of the so-called African workers. Sullivan principles. The author does not As reported above, this move was speculate on the government's likely recommended by the Wiehahn Commis sion but rejected by the government response to calls for more fundamental change, but the commission's report sup when it drew up enabling legislation. plies the answer. Bowing to the right wing, Pretoria only Wiehahn's work attempts both to reduce gave union rights to the relatively small growing international pressures against the group of "settled" black workers. regime, such as that brought to bear by the That cost the government dear. Hav divestiture movement and the Campaign to ing aimed at winning international praise Oppose Bank Loans to South Africa, and for its "reforms," the regime instead to block any effect such pressures might found itself widely criticized for the nig have. To achieve the first end, the commis gardliness of its actions. sion's report embraces many of the Responding swiftly, Pretoria an that the legislation had been cosmetic changes demanded by Sullivan nounced "careless" and on September and the other corporate codes-of-conduct 25 in the hope of strengthening the multi Minister of Labor Fanie Botha issued a nationals' hand at home. decree extending union rights to migrant The report recommends, for example, and commuter workers. that statutory segregation of work and rest See the November issue of Southern Africa for a full analysis of the new Reprinted from Southern Africa facilities in the work place be ended, Magazine, September 1979. although it diminishes the recommenda- developments. APPENDIX E: THE CASE FOR AND AGAINST U.S. INVESTMENT IN SOUTH AFRICA. Outline of 'Against' Argument, by Larry Adelman 1. Two conflicting opinions on the relationship between the activities of multinational corporations and South Africa. A. Foreign investment is investment in apartheid and must stop. B. Companies say: 1. Companies contribute to economic growth which benefits all South Africans. 2. Multinational corporations provide a positive influence on apartheid. 3. To disinvest will increase black unemployment. 2. All abhor apartheid-or claim to. 3. But, as the scale of black resistance to apartheid escalates, it becomes ever more crucial to evaluate the contributions of multinationals to South Africa and their effects upon apartheid and to influence such companies' policies accordingly. 4. The corporate claims can be examined empirically, analytically, and by specific example. A. Empirically. 1. Foreign investment has increased dramatically (over 7-fold) in the past 20 years. 2. Despite all this investment, in this same period: a. The income gap (in absolute terms) between black and white has increased b. Black unemployment has reached 2 million. Per capital income of blacks (in the urban areas; lower in Ban tustans) is only the 19th highest in Africa. c. Only 1% of the black workforce employed by U.S. firms. d. The implementation of apartheid has been greatly furthered with the tightening of influx controls and the in stitutionalization and 'independence' of the Bantustans, etc. e. Repression has increased (Soweto, Preventive Detention Act, muzzling of the press, etc.). B. Analytically. 1. Apartheid is essentially an elaborate system of domination by the white minority over the black majority based upon legalized theft and political repression. 2. Apartheid is made possible by the coercive power of the police and military-the biggest and most modern in Africa. 3. The strength of this military and police apparatus is made possible by the strength of the South African economy. a. 20% of budget to police, military, and prisons. 4. Foreign investment has been a 'critical' (FinancialMail, U.S. Senate Foreign Relations Committee Report) com ponent of South African economic growth, and thus contributes to this miltiary and police power necessary to contain internal rebellion and the continued subjugation of blacks. a. Concentrated in strategic sectors of the economy. b. A critical source of capital. 1. From 1975-78 South Africa received $9 billion in foreign loans, as much as was loaned to all the other sub Saharan nations combined. 2. Helped to offset growing deficit caused by defense expenditures and increased cost of oil imports. c. Loans to the parastatals-permanent institutions of the apartheid government. d. If loans were not available to the parastatals, the South African government would have to finance them, thus limiting money available for maintaining apartheid. e. Foreign investment is an important source of irreplaceable new technology-accounts for 40% of growth of GNP between 1957-72). 5. Can any force that has been integrated into and is part of an exploitative and repressive system be anything other than an exploitative and repressive force? C. Examples. 1. After Soweto, Citibank, Morgan and Bank of America lent the South African government $110 million to help cover the growing government deficit caused by increased internal security and defense spending coupled with decreased revenues because of repression. 2. IBM has the computer contract for maintaining the "Book of Life" passbook. 3. Fluor is building SASOL II, the coal-oil conversion plant that will provide South Africa with 25% of its petroleum needs, consequently saving it millions of dollars in foreign exchange and increase the country's capability of withstanding the threat of international oil sanctions. 4. ITT's partially owned subsidiary provides communications equipment to the police and to Simonstown Naval Base. 5. Allis Chalmers helped build the SAFARI I nuclear research reactor which developed South Africa's capacity for enriching uranium, and hence its capability to build nuclear weapons (South Africa has not signed the nuclear non-proliferation treaty). 5. Organizations and groups throughout the world have called for sanctions and disinvestment by transnationals. A. South Africans themselves, including ANC, SASO, Steve Biko, Christian Institutue, 'man-in-the-street,' etc. B. International organizations: the UN, OAU. C. Church and trade unions: e.g. World Council of Churches, AFL-CIO. D. Confirmed by U.S. Ambassador to South Africa Bowdler's confidential report to the State Dept: "Among black youth and more militant groups, as well as some businessmen, any foreign investment is viewed as propping up the South African economy and its social system. They argue that jobs provided are marginal compared to numbers suf fered by apartheid." 6. But investing in apartheid is very profitable. A. 29.9% return in 1975. Though less now, still one of the highest profit rates in the world. Citibank claims that profits are so high "they're embarrassing." B. Ex-President Fbrd in a Houston seminar entitled "South Africa, a Golden Opportunity: A Seminar on Business Op portunities in a Free Enterprise Economy" said that U.S. business "should continue to invest in South Africa." 7. The South Africa government recognizes their need for foreign investments and desperately wants them to continue. A. Under South African law, calling for sanctions is a treasonous offense, and thus can be punishable by death. B. New South African law makes it illegal to publish certain business data. C. The government is spending millions in public relations and lobbying campaigns. 8. Investment funds are citizen monies. A. Individual, church, university, trade union, and municipal bank deposits provide capital for bank loans to South Africa. B. Individuals, churches, universities, and municipalities (especially public employee pension funds) invest in securities of companies making investments in South Africa. C. At the same time that banks loan money to South Africa, they often refuse to place monies in needed projects such as low-cost housing in the impoverished ghettoes of the U.S. 9. Examples of citizen action A. Withdrawals of deposits and trust (including pensions) funds from banks making loans to South Africa. B. Divestment of stocks and other securities (from either union or public employee pension funds, church and universi ty endowments, etc.) from companies with investments in South Africa.

SEYCH[LLESI&..

CDMOlOIS.

MALAGAY REPUBLIC

'LESOTHO Mawtu THE CASE FOR U.S. INVESTMENT IN SOUTH AFRICA. 1978 THE WASHINGTON POST Ford Co. Plans to Stay in S. Africa, Chairman Declares in Johannesburg By Caryle Murphy Faced with the prospect of an inten- Johannesburg's Carlton Hotel today, Special to The Washington Post sified campaign by governments, Ford hinted that such pressures JOHANNESBURG, Jan. 19-The church bodies and the United Nations prompted his visit here at this time. Ford Motor Co., which has done busi- for heightened economic pressures on the"I internalam aware and of external the importance difficulties of ness in South Africa for 55 years, South Africa, many people here cling that face South Africa today. The "intends to stay" because "we do to the belief that private businesses Western world is deeply concerned more for the people of South Africa already deeply involved in South Af- about the pace of social development by staying here," chairman Henry rica will resist pressure to pull out. here. Business firms like Ford are Ford's visit is viewed as an encourag Ford II said today at the end of an ing indication that "financial inter- questioned by various organizations eight-day visit to this country. ests" are "taking an increasingly and government officials about our The decision, which Ford said was strong stand against the political cam- role in your country. We are obliged taken after discussions with the board paign (to disinvest)," said the pro-gov- to be responsive to all such inquiries," of directors, is characteristic of the at- eminent Afrikans language newspa- he said. titude American companies operating per, Die Vaderland. Asked by a South African reporter in this country are adopting in the Foreign Minister Roloef 'Pik' Botha, whether he expected opposition to the face of increasing debate over their who met with Ford for 90 minutes yes- decision to remain here from his mi participation in an economy which terday, said, "I think there can be no nority shareholders, Ford said that at supports apartheid. doubt that (companies that remain in the annual stockholders meeting in Most companies say they intend to remain in South Africa, some are in- South Africa) are making a specific want to raise hell and . . . those who creasing their investment here. Last contribution, not only to the economic swering them today." November they organized a chapter of growth of South Africa, but also to- With a 1977 investment of $110 mil the American Chamber of Commerce wards the improvement of standards lion and sales in 1976 of $288 million, -theFord's only announcement one in subsaharan Africa. of the blacks in this country." Ford ranks among the top ten U.S. con that his com- "It is therefore incomprehensible panies operating here. At its automobile pany will continue its presence can that any right-thinking persons who and truck assembly plant in the coastal only be heartening to the South Afri- insists and wishes that the economic town of Port Elizabeth, Ford employs can government which is anticipating and material standards of the blacks the largest number of South Africans ever-increasing pressures on U.S. com- should improve, insists that these 4,600 in 1976--of any American firm panies to "disinvest" here in protest companies should withdraw from here. against the government's racial poli- South Africa." Although it sells its products in many cies. At his midday press conference at

FORD, From B7 multinational companies in Africa, resents Ford's 14,GOC colored assembly the blacks said they expected U.S. line employees. black-ruled African countries, Ford companies here not only to improve Ford "has taken a positive attitude" has no investments in any other African conditions of black workers on the job towards the unions, said labor union country outside of South Africa. site, but also to assist in positive ac organizer Fred Saules. "It wasn't all During his week-long tour, the 60 tion programs in the community as a that easy. We had to fight. But they year-old automobile manufacturer dis whole. didn't put oostacles in our way," he cussed "general matters in a construc tive sense" with Prime Minister John "In our opinion, we do more for the said. Vorster, tour-ed his assembly plant in people of South Africa by staying Ford's management does not accept Port Elizabeth, met with local Ford here and employing them and having job reservation clauses in its contract car dealers and was the dinner guest equal oppoitunity rights to the extent with the white unions, Ford executive of diamond magnate, Harry J. Oppen we can," Ford said. He admitted that Brian Pitt said, but there are still heimer. his company had no'. paid enough at some positions reserved only for Ford also had an opportunity to talk tention to the piomotion of blacks. whites in the Ford operations here. with black leaders at a private dinner "The progress in this area is not as Management has recommended to the party sponsored by an executive of rapid as it should have been, but government that these statuory job Anglo-Transvaal, a mining and indus hopefully in the future we will do a reservations be scrapped. trial complex. Zulu chief Gatsha Bu better job." For the past four years, Ford's prof thelezi, Soweto leader, Manas Buthe In order to improve promotion op its in South Africa have been lezi, black Cbambei of Commerce offi portunities for blacks, Ford has bud "negligible," the chairman said. Last Pial, Sam Motseryane and colored geted 1.85 million for training and year the company finished as market leader Richird Van Der Ross were development and $208,000 for educa leader in vehicle sales here despite among the guests. tional scholarships in 1978, Ford said. the fact it lost $8 million, he said. Pre Three of Ford'3 top executives also "There must be more training and dicting that t he decline in the market had an unpublicized meeting at the better training," he added. has bottomed out, Ford said he hoped U.S. consulate here with Soweto com In the sensitive area of black labor that car sales in South Africa will be munity leaders, among them were union recognition, Ford's management 6 per cent better in 1978. businesswoman Sally Motlana and last Septembor re-ognized a black un "In the firai analysis, only a strong university p-ofessor Wilke Khambule. ion that now represents its 900 black economy-built uon profitable busi According to sources close to the workers. It alrezdy had recognized nesses-can pay the bills for social talks, which centered on the role of the colored workers union, which rep- progress," he added. ICCR Brief May 1979

THE CASE AGAINST U.S. INVESTMENT IN SOUTH AFRICA

Church groups have long been con government and not to private cor where blacks, the vast majority, earn cerned about U.S. corporate investment porations. about 30 percent of the wages paid in the3 in South Africa and its effects on the nation while whites earn 70 percent. Churches and other groups main black majority. Among the first share tain that the facts fail to support these The government spends approximately 15 holder resolutions ever submitted by arguments, and the documentation is times more for a white student than for a church investors was a proposal in 1971 presented here for each one. black. Black education is so inferior and to General Motors from the Episcopal opportunities so limited that two-thirds Church, asking the company to withdraw of the black students drop out by sixth from South Africa. In the intervening grade, and only 0.3 percent of those who years, church investors have requested I. Foreign investment has not actually begin elementary education com that companies operating in South Africa improved conditions for blacks plete high school. Nearly all whites, on4 take a variety of actions, including dis in South Africa the other hand, finish higher education. closure of information, an end to expan While the South African govern sion and new investment, withdrawal of - Social and political conditions. Social ment does not publish data on the condi operations from South Africa, and an end conditions are hardly better now for tions of health among Africans. it is estit to loans to the Republic of South Africa. blacks than they were decades ago. For mated that about half of the babies born This brief is excerpted from a long eign loans to the South African govern in the bantustans die before the age of er paper by Father Charles Dahm, O.P., ment and investment in private industry one. outlining the reasons why many church wind up supporting the economic and Blacks face rigid barriers not only investors oppose U.S. investment in political system of apartheid - the offi in education and health but also in public South Africa. FatherDahm is chairperson cial policy of racial discrimination and accommodations, transportation, pen of the Illinois Committee for Responsible white supremacy. sion, entertainment, job placement and Investment, whose membership is com Under apartheid, blacks are as promotion and in being able to establish prised of 20 Catholicand Protestant church signed to remote rural reservations called businesses for themselves. Blacks enjoy organizationsin Illinois. bantustans. Although blacks (including no ripht of assembly, organization, and coloreds and Asians) constitute 84 per most importantly, the vote. cent of the population, they are allotted Blacks are kept from exercising Introduction by whites only 13 percent of the land. their human rights by a barrage of repres This land, most of which is of poor qual sive laws and by a notoriously effective A growing number of American in ity, is scattered throughout the country security police. Abuses such as the death stitutions oppose loans to and investment in 81 separate and non-contiguous seg in prison of black leader, Steve Biko, in in South Africa by U.S. corporations. ments. 1 Even in these remote reserva September 1977, resulted in a unanimous Churches, universities, unions, and civic tions, white South Africans control the vote by the United Nations to impose an groups are demonstrating their opposition police, most sources of public funds, and arms embargo against South Africa. But. by, among other things, initiating share most private enterprises. since Biko's death, several additional holder resolutions seeking corporate with During recent years, while private black leaders have died "mysteriously" in drawal, removing funds from banks lend foreign investors argued for their positive government prisons. Virtually all govern ing there, and selling stock in corpora effect on the black majority, the South ment critics, black and white, are banned tions-operating in South Africa. U.S. cor African government has accelerated the or under arrest. The Christian Institute porations, along with the government of program of forcing blacks into these terri and other religious organizations opposed South Africa, have objected to these ac tories. Blacks can enter white areas only to apartheid as well as all major black tions with the following claims. for purposes of work, and their presence publications and several community de there is strictly controlled by police velopment projects in black townships - foreign investment has improved condi through a system of "passbook" identifi have been outlawed. tions for blacks in South Africa; cation. An average of 250,000 Africans are arrested for pass law violations each - Economic conditions. One of the key - the South African economy offers year. 2 arguments of American investors in South good opportunities for sound investment; Apartheid not only guarantees that Africa is that continued investment helps - blacks in South Africa want foreign in blacks and whites are separated, but it as blacks, first economically and thien po vestment; sures white supremacy. Africans are litically. The argument takes two forms: barred from equal access to housing, that benefits "trickle down" to blacks, - U.S. investment in South Africa is not schooling, medical care, job opportunities and that the American presence can set significant; and and the like. an example and create incremental pro - not investing in South Africa is a "po While education for whites is free, gress toward a more just society. litical decision" which belongs to the U.S. blacks must pay - and this in a country Somehow, the alleged trickling

An ICCR Brief appears in each edition of The Corporate Examiner, a monthly newsletter on corporate social responsibilit,.Each brief highlights a particular social area and focuses on one or more corporations. It also provides information about action options and resourcesfor issues studied. Copies of the ICCR Brief may be obtained from the Interfaith Center on Corporate Responsibility, Room 566, 4 75 Riverside Dr., New York, N.Y. 10027. Telephone: 212 870-2936. Price: 1-10 copies, $.60 each; 11-19 copies, $.40 each: 20-49 copies, $.35 each 50 or more copies, $.15 each. ( 1979 Interfaith Center on Corporate Responsibility, a sponsored related movement of the National Council of Churches of Christ in the U.S.A. down celebrated in the United States has A close look at the claim that U.S. failed to work in South Africa. In its companies provide an American example II. The South African economy most important industry - mining- a shows why it is mistaken. U.S. companies is not a sound investment. study at Capetown University showed in South Africa employ a miniscule Since 1975, South Africa has had that earnings of blacks in South African 70,000 blacks out of a total black labor its worst recession in 40 years. The ac gold mines bought more in 1911 than in force of 8,000,000. Meanwhile, U.S. in 5 companying decline in foreign investment 1970. But much of the current Ameri vestment provides capital and technology during this period further cooled the can expansion in South Africa - a new that benefit the racist government and its economy and aggravated unemployment. S50 million operation by Union Carbide, policies and programs. In 1978, for example, one out of every a new $100 million joint investment by Let us inspect the "better working five machines stood idle, and the automo Phelps Dodge and Consolidated Gold conditions" Americans have provided for tive industy operated at 60 perdent fields, and a new S125 million investment the few South African blacks. These con capacity. by Kennecott Copper - is in mining. ditions, under the so-called "Sullivan In 1977, South Africa had a net Despite 30 years of trickling down, Principles" (equal employment guidelines loss of $1.2 billion in foreign capital due the African wages are miserably low, and proposed by Dr. Leon Sullivan, a black to a variety of factors, such as a drop in they have not gained against inflation. director of General Motors), include: the rate of return to investors, increased The officially reported average wages of non-segregation of facilities; equal and political risk, and ceilings on foreign Africans in all sectors of the economy re fair employment practices; equal pay for credit exposure. Total U.S. investment in work: training programs; an in main below the Poverty Datum Line equal South Africa grew only 5.5 percent in (PDL), the minimum income estimated crease in the number of blacks and other 1976, down from an average of 24 per by the government as essential to survive non-whites in management and supervis cent for the three previous years. In 1967 in South Africa. 6 The Financial Mail ory positions: and improvement in the direct investment accounted for 67.8 per quality of employees' lives outside the commented, "It is generally conceded cent of South Africa's gross foreign liabil work environment in such areas as hous that if any kind of reasonable living ities. By 1977 it had diminished to only ing, transportation, schooling, recreation 17 standard is to be reached, a family's in 45.2 percent. In 1977, South Africa and health facilities. come must be 150 percent of the raised only S33.2 million in the interna PDL ... The litmus test of the effectiveness tional bond and Eurocurrency markets, a 8 In recent of even these drastically limited "prin mere 3 percent of the 1976 figure. The years some blacks have ciples" is whether the American compa advanced in the economy by obtaining South African government devalued the nies are willing, as the principles require, rand twice in 1975, and in January 1979, skilled jobs, but the South African De to defy South African law. Clearly, they responding to a massive flight of capital, partment of Labor says that the propor are not. Borg-Warner, Motorola and Inter set its rand free to float against other cur tion of black Africans in almost every national Harvester, all endorsers of the rencies. 19 skilled category declined between 1975 principles, have stated they have no South Africa now has a new prob and 1977. The proportion of blacks in blacks supervising whites. 13 The compa administrative, executive and managerial lem with the recent political changes in nies are far more afraid of offending the Iran. Sine the fall of the Shah, Iran, positions, for example, dropped from 2.9 powerful "host" government than of of percent to 0.5 percent. Meanwhile. which had been providing about 90 per fending powerless blacks. Their own cent of South Africa's oil, has discontinued black unemployment rose over 25 per 20 racist policies are explaied away as an sales to South Africa. cent in 1978, while that9 for9 whites de observance of proper decorum, as if they clined under 1 percent. rt. The econonnic slowdown has seri themselves had no direct interest at stake. ous political ,mnifications, which in turn Between 1970 and 1976, the aver American companies, however, cannot es have a dampening effect on the invest age real monthly earnings of blacks in cape the fact that their profits derive from ment climate. In 1978. the University of manufacturing increased 52 percent a stability caused by and sustained only by Delaware's political risk index described (from 52 to 70 rand), while that for a system of white oppression against blacks. South Africa as a moderate risk, but pre whites rose only I I percent (from 307 to The U.S. Ambassador to South dicted that by 1980 it would be a pro 340 rand). But the gap between average Africa wrote in a confidential memo to hibitive risk and by 1984, at the top of white and average black wages grew from the State Department in March 1977 that the prohibitive risk list. 225 rand a month to 261.1 In mining, while U.S. affiliates feel they are doing a The state has tried partially to fill according to Business Week, "Whites in good job in South Africa. confidential the vacuum left by private capital and in mines [in 1976] average $1,027 per month, meetings with black workers suggest sulate itself against possible economic compared with $124 for blacks - a gap of otherwise. Ambassador Bowdler wrote, sanctions by increasing investment in gov S903 against 1974's gap of $722 "11 "Most of these workers complained of in ernment corporations. Public (parastatal) Solme U.S. companies, although adequate training, job reservation, lack of corporations accounted for only 6 per they have increased their investment. union status, arbitrary promotions, abuse cent of the new gross domestic fixed in have trickled down unemplo iment. Cal by South African foremen and job inse vestment between 1950 and 1960, 8 per tex is an example. During a period of eco curity. ... Most liaison committee mem cent in 1965, 11 percent in 1970, and 17 nomic expansion between 1962 and bers agreed that [their] company acted percent in 1975. Conversely, the private 1977, Caltex (jointly owned by Texaco basically like a South African creation enterprise share of gross domestic fixed and Standard Oil of California) reduced despite the best intentions of American investment fell from 652percent in 1950 the proportion of blacks in its labor force management." 14 to 49 percent in 1975.2 This growth of from 32.3 percent to 24 percent. Nor was A Senate Foreign Relations sub the public sector reflects South Africa's this change the restt of white expansion. committee reflected this position also staunch commitment to apartheid. The labor force actually dropped 18.6 when it reported in January 1978: "The The uncertainty of South Africa's percent fron 2,400 people to 1,953.2 net effect of American investment has economic future has caused some interna That kind o' reduction is one of the hid been to strengthen the economic and mil tional lenders to limit their investment in den benefits to American companies of itary self-sufficiency of South Africa's South Africa. Some major U.S. banks, increased capital invest ment. apartheid regime." 1 such as Citibank in New York and First National Bank in Chicago, declared in If I said that the only way to bring S1.665 billion of direct investments in early 1978, after a few years of heavy change would be total economic South Africa, comprising 17 percent of lending, that currently they were not sanctions, I would be liable to go to all direct foreign investments there. ao making loans to the South African gov jail. So let's just be cagey. Let's just By 1970, over 50 percent of U.S. ernment or parastatals (even though they say that I support 'pressures,' and 2 5 investment was in manufacturing, 10 per continued to lend to private companies leave it at that. there). In 1979, Merrill Lynch, the largest cent in mining and 25 percent in petrole um. Manufacturing contributed a larger brokerage firm in the world, stated its in Bishop Manas Buthelezi, a leader of tention not to underwrite further govern the Black People's Convention, stated: proportion of South Africa's gross domes ment bonds or make new loans to South tic product (22.1 percent in 1974) than There is no doubt that if South any other sector. Its growth has in part Africa until social and economic condi Africa suffers, the black people will tions changed. These are bad omens for been promoted by American expertise suffer as well. But we must remem and technology.3 At the end of the South Africa, which now needs new long ber that even when a country goes 1960s, the official Fanzen Commission term loans in order to pay back previous to war, it does so knowing that indicated that 40 percent of South loans and support economic expansion. some of its citizens are going to die In June 1978, the London Econo Africa's manufacturing3 2 was controlled by in the process. The same thing ap foreign interests. mist said that without foreign loans, the plies here. We know that there will A relatively few U.S. corporations South African economy will not grow be suffering, but we realize that it is and will not be able to absorb the ex control most of U.S. investment. As of by suffering that something better 1973, three-fourths of U.S. panding black population. South Africa, direct invest may happen. We don't2 6 mind taking ment in South Africa was in the hands of it wrote, "is sitting on a time bomb of the consequences. rising unemployment, hence of discon 12 companies.33 Three of the oil compa nies - Caltex, Mobil, and Exxon - con tent and revolution-fodder." Officials in The Christian Institute in South trol about 44 percent of the country's South Africa estimate a future growth Africa wrote in 1976: petroleum products market. General Mo rate of 5.5 percent in order to absorb the The argument that economic tors, Ford and Chrysler control at least workers coming into the job market. Al growth can produce fundamental one-third of the auto market, and it is though predictions indicate a growth rate change has proven false. Many in 1979 that will surpass the 2.5 percent estimated that 70 percent of the com black organizations have opposed puter market is controlled by U.S. rate of 1978, there is little evidence that firms. foreign investment in South Africa. IBM stands as the single largest supplier 5.5 percent will be reached in the near and this would be the opinion of and servicer of data-processing equipment future. 22 the majority of South African in the country. Estimates of its market blacks if their voices could be 2 7 share range from 38 percent to 50 per heard. cent. At least one-third of all IBM's busi ness in South Africa is with the South III. Blacks in South Africa Even U.S. Ambassador Bowdler do not want foreign investment. African government, and U.S.-marketed wrote to the State Department in 1977: and serviced computers are in use in at To oppose foreign investment in Among black youth and more mili least 18 government agencies, including South Africa is a federal offense punish tant groups, as well as some busi the departments of Defense. Prisons, able by death. Leaders, therefore, must nessmen, any foreign investment is Atomic Energy, and the Interior34 (which state their positions cautiously. Bishop viewed as propping up the South enforces the apartheid laws). Desmond Tutu, General Secretary of the African economy and its social Foreign capital enters South Africa South African Council of Churches said system. They argue that jobs pro through three major paths: direct invest in an interview in 1978: vided are marginal compared to ment, long-term loans, and short-term numbers suffering from apartheid.28 loans and trade credits. Until the late We ask our friends to apply eco 1960s, direct foreign investment ac nomic pressure .... Our last chance The more conservative South counted for two-thirds of South Africa's for peaceful change lies in the inter foreign obligations. This situation national community applying po African Council of Churches, representing some 15 million members, urged foreign changed in the 1970s when foreign loans litical, diplomatic and especially 2 3 firms in July 1978 to "radically revise" became increasingly important. The rising economic pressure. their investment policies since they "have price of oil imports to South Africa, the largely been used to support the prevail declining markets for South African ex Although he did not call for eco 2 9 ing patterns of power and privilege." ports in a world suffering from economic nomic sanctions, he added: recession, and increasing government Any black leader who calls for eco spending on arms required to assure white nomic sanctions is already guilty of supremacy, created even greater demands treason under the Terrorism Act IV. U.S. investment in South Africa for foreign capital. and subject to five years in prison is significant. More than 50 U.S. banks helped to or death. We have said as much as prop up South Africa during this period. we can possibly say. We hope we By the end of 1976, South Africa's debt have reasonably intelligent friends Almost every major U.S. corpora Men- foreignt lenders had reached S7.6 bil overseas who will know what we're tion does business in South Africa. Ap non,' more than double the S2.7 billion saying. 24 proximately 350 U.S. corporations have outstanding in 1974. Loans by U.S. banks operations there, while thousands more provided nearly one-third of these credits When asked about withdrawal of are involved through agents and distribu - $2.27 billion - or nearly triple that 3 5 U.S. corporations, Dr. Nthato Motlana, tors. U.S. direct investment in South supplied by them two years earlier. This chairman of the Soweto Committee of 10 Africa now represents approximately 37 increase was roughly equivalent to the who was recently released from prison, percent of total U.S. investment in all amount of foreign exchange required to carefully stated: Africa. American companies have at least cover South Africa's defense and oil im- 36 port costs for the same years. After 6. Ann and Neva Seidman, South Africa and V. U.S. investment in South Africa U.S. Multinational Corporations, Westport, 1976, foreign long-term lending declined, Conn.: Lawrence is not "apolitical." Hill and Co., 1977, p. 19. largely as a result of economic and polit 7. FinancialMail, (South Africa), May 4, 1973. ical factors explained above. South 8. Investor Responsibility Research Center, Africa, however, compensated for this U.S. investors argue that they are Corporate Activity in South Africa, Analysis J, essentially "apolitical" and as "guests" March 9, 1978, Washington, D.C.: IRRC, p. loss by increasing its reliance on short in 1-15. term trade related loans from foreign a country, they cannot offend the "host 9. In August 1978, the Central Merchant Bank government." In fact, U.S. investors in ot South Africa estimated African unemploy banks. U.S. banks hastened to supply ment in South Africa to be 2.3 million in a these funds, and simultaneously, the U.S. South Africa are immersed in politics work force of approximately 8 million. As of April 1978, non-African unemployment stood replaced Great Britain as South Africa's whether they like it or not. When General at 20,228, down from the December 1977 Motors sells vehicles or Mobil sells petro figure of 34,641. South African Reserve Bank, number one trading partner. June 1978 as quoted in "South Africa Fact Between 1970 and 1976, the aver leum to the police and military, the po Sheet," New York: The Africa Fund, 1979, p. litical consequences are clear. When Citi 3. age net inflow of new capital was about 10. Financial Mail, September 16, 1977, pp. $1 billion per year, an average annual bank makes a loan to the government or 1054-6. Figures have been left in rand for com parison over time, as the exchange rate between contribution of over 13 percent to gross Union Carbide confesses that it would be the dollar and rand has been subiect to several taken over by the government if it tried significant changes since 1971. Quoted in Jenni domestic investment. The average net in fer Davis "LB Dollars in South Africa: Con flow of foreign capital into the United to leave, their political involvement is ob text and tonsequences," New York: The Africa vious. Bishop Tuto, General Secretary of Fund, 1978, p. 2. States, meanwhile, contributes between I 11. Business Week, October 1977. The gap be the South African Council of Churches tween the wages of blacks and whites in the percent and3 72 percent of gross domestic mines is worse than in any other sector of in investment. stated in 1978: dustry, and it has been widening. The ratio was 9 to 1 in 1911, 11 to 1 in 1946, and over 20 to These figures understate the total 1 in 1970. W.J. Busschau as quoted in Counter contribution of foreign business because They know their money is not neu Intelligence Service, Consolidated Gold Fields tral. Wherever Anti-Report, London, 1972. they refer only to new foreign capital their money is 12. Remarks of Neuhauser, p. 9. brought into the country each year. They needed, they have considerable lev 13. Responses made to questions posed by the erage. Even the Chamber of Com author at the annual meetings of these corpora exclude profits foreign corporations make tionsin 1978 and 1979. in South Africa and then reinvest there. merce in South Africa has begun to 14. Ambassador Bowdler, "Confidential DipIo say to the government, matic Cable," reprinted by Southern Africa For example, from 1973 to 1974, the "If you ex Magazine, April 1978. shares, premiums and undistributed prof pect us to operate economically, we 15. U.S. Senate Subcommittee on African Af cannot fairs, U.S. Corporate Interests in South Africa, its from foreign firms in South Africa to continue to work under January 1978. talled more than $5 billion, with most re these regulations." To stand on the 16. IRRC, CorporateActivity, 1979, G-5. fence is as political as jumping 17. South Africa: An Appraisal. Johannesburg: invested there. In many years, these re The Nedbank Group Economic Unit, July tained earnings plowed back into either way because 4 0bou are siding 1977, Tables 95-98. the quo. African economy will equal or ex with the status 18. IRRC, Bank Loans to South Africa, Analy South sis N, March 20, 1979, Washington, D.C.: ceed the amount of new foreign capital IRRC, p. N-7. flowing in from outside the country. In In summary, there is mounting evi 19. "South Africa's Currency is Set Free to dence that U.S. investment in South Float," Wall Street Journal. January 25, 1979. such cases the total foreign contribution 20. IRRC, CorporateActivity, 1978, J-10. Africa acts in a political fashion, consti to gross domestic investment3 8 will be 21. IRRC, Bank Loans, p. N-6. double the figures cited above. tutes a financial risk, and has not measur 22. itRC, Bank Loans, p. N-5. ably improved conditions for the black 23. "South African Council of Churches," Nor do these figures suggest the Ticker Tape, fall 1978, Toronto: Taskforce on special qualitative importance of U.S. in majority. As church organizations, uni the Churches and Corporate Responsibility, versities, and other U.S. investors p.2. vestment, its concentration in major sec contin 24. Ibid. tors of the economy, or its domination ue to pressure companies on these issues, 25. The New York Times, April 4, 1978. by a significant but limited number of it becomes clear that the responsibility 26. Financial Mail, November 18, 1977. for the effects of U.S. corporate involve 27. Christian Institute policy statement, quoted strategic firms. Research by British econ in "U.S. Business in South Africa: Voices for omist John Suckling attempted to quanti ment in South Africa remains in the Withdrawal," New York: The Africa Fund, hands of corporate 1978, p.4. fy the importance of technological in officials and the 28. Bowdler, "Confidential Cable." puts. He estimated that about 60 percent American people. In the words of Steve 29. "South African Council of Churches," p. 2. Biko: 30. John Burns, "Full Sanctions Awkward: of the growth in South Africa's gross South Africa is Big Business," The New York domestic product between 1957 and Times, November 6, 1977, as quoted in Litvak, South Africa, p. 1972 could be ascribed to "technological While it is illegal for us to call for 43. trade boycotts, arms 31. Litvak, South Africa, p. 44. change," two-thirds of which was the re embargoes, or 32. U.N. Commission on Transnational Corpor withdrawal of investments under ations, "Activities of Transnational" Corpora sult of new technology entering the coun tions in Southern Africa and the Extent of try through foreign investment. 39 current South African law, America Their Collaboration with the Illegal Regimes in the Area." April 6, 1977, as quoted in Litvak, In a strongly worded article in No is quite free to decide what price South Africa, p. 41. vember 1977, the Financial Mail asked South Africa must pay for4 1 main 33. Ann and Neva Seidman, "American Multi taining obnoxious policies. nationals in South Africa," Journal of Southern the question "Who Cares about Foreign African Affairs Special Issue, October 1976, p. 133, as quoted in Litvak, South Africa, p. 44. Investment?" and concluded: 34. Litvak, South Africa. pp. 44-50. 35. Senate Subcommittee, US. Corporate In We do. For without it South Afri N otes terests. cans can forget about better living 36. Corporate Data Exchange, U.S. Bank Loans to Soufk Africa, New York: CDE, 1978, p. 6. standards .... It would be highly 1. Lawrence Litvak, Robert DeGrasse and Kathleen MeTigue, South Africa: Foreign 37. Litvak, South Africa, p. 40. unrealistic to expect the Republic Investment and Apartheid, Washington, D.C.: 38. IRRC, U.S. Business and South Africa The to buck the world trend and chalk Institute for Policy Studies, 1978, p. 22. Withdrawal Issue, Special Report 1977-D, No 2. Investor Responsibility Research Center, vember 1977, Washington, D.C.: IRRC, p. 3. up fast growth without the aid of Corporate Activity in South Africa, Analysis G, 39. John Suckling et al., The Economic Factor, fast growth we February 15, 1979, Washington, D.C.: IRRC, p. London: Africa Publications Trust, 1975, p. 23, foreign funds. Yet G-10. as quoted in Litvak, South Africa, p. 42. must have .... We must have 5 per 3. Ibid. p. G-8. 40. "South African Council of Churches," p.2. cent or more. And for that we must 4. Ibid., p. G-13. 41. "Voices for Withdrawal," p.3. have foreign capital. It is really as 5. Remarks of Paul Neuhauser Before the Com mittee on International Relations of the House simple as that. of Representatives on August 16, 1978, p. 7. PPENDIX F: VOICES FOR WITHDRAWAL Voices For Withdrawal "Corporations stress the positive advantages of the the back alleys of the cities. In fact significant U.S. creation of some tens of hundreds of jobs. They boast corporations in South Africa are the heavy of training programs and equal pay, even sometimes weight s-prominent names on Fortune's500 list. They of equal opportunity. THEY USE MICRO frequently dominate the sector of the South African ECONOMICS TO OBSCURE MACRO TRUTHS. economy in which they operate. (e.g.: General Motors, Firstly, they ignore the fact that the whole structure Ford and Chrysler control 60 per cent of the auto of the society is carefully designed to prevent market). They provide a level of the most advanced generalized equal opportunities for black and white. modern technology which small, isolated, domestic At the same time they continue to benefit from the ef companies could not afford. They have access to the fects of that deliberate design by way of a cheap, in capital so desperately needed for the continuing timidated labor force. Their claims as reformers never economic expansion of a white-owned, white speak of the fact that the system of apartheid in South controlled, white-benefit economy. Africa prevents blacks from acquiring education; pro Fourthly the corporations attempt to veil the direct hibits them from organizing effective trade unions; cooperative relationship that often exists between forces them to live in restricted, culturally and them and the South African government, and the very economically deprived areas; denies them any freedom direct role that they play in the maintenance of the of movement; only allows blacks access to factories, South African state by the provision of strategic towns and cities by special permit; denies them any materials, technology and technical services to the right to seek alternative and better employment; government. prevents land ownership; prohibits black en Fifthly, the corporations refuse to deal with the trepreneurs and black business except in the tiny black reality that continuing profitable operations in South bantustans and specifically prohibits any black from Africa require a constant level of stability. Nor do they supervising any white. The complex web of apartheid acknowledge that the well-established links between makes a mockery of individual attempts at "equal op corporations and the United States government must portunity employment." inevitably involve the U.S. government in a similar Secondly, the corporations deliberately ignore quest for the maintenance of "peace and stability," history. The argument that economic growth and in while the black population of South Africa in contrast creasing industrialization automatically create seeks the total destruction of the system as it now ex pressures that will inevitably force whites to allow ists." greater black participatcon in society has been totally * Jennifer Davis, research director of the on Africa. Excerptsfrom disproved by the last 10 years of South African American Committee history. Yet the corporations and their apologists con testimony before the U.S. Senate Subcommit tinue to detect "signs of change." The last ten years tee on African Affairs hearings held 9/29/76. have seen intensifying political oppression and land dispossession, the creation of the bantustans and the THE SOUTH AFRICANS final, total exclusion of the Africans from any right to an identification as South Africans all at the same time "Heavy investments in the South African economy, as there was rapid economic growth. The pressures bilateral trade with South Africa.. .are amongst the were there but they were dealt with by greater control, sins of which America is accused. All these activities not by relaxation of control. relate to whites and their interests and serve to en Even the corporate micro-economics is wrong. trench the position of the minority regime. America Black wages have grown in South Africa, but so have must therefore re-examine her policy toward South white wages and inflation; the wage gap between white Africa drastically... Whilst it is illegal for us to call for and black in absolute terms is still growing. Figures trade boycotts, arms embargo, withdrawal of in released by the Institute for Planning Research of the vestments, etc., America herself is quite free to decide University of Port Elizabeth in May 1976 show that what price South Africa must pay for maintaining ob Africans still earn less than the Poverty Datum Line noxious policies." wage (minimum subsistence) in almost all sectors of * Steve Biko, founder of South Africa's Black the South African economy. The PDL (or Household Consciousness Movement. Excerpt of a Subsistence Level, as it is sometimes called) allows for December, 1976 statement published in the only the barest necessities for an African family of six; New York Times 9/18/77 it comprises the cost of rudimentary diet, clothing, fuel, light, washing materials, rent and the transport "Q. What is the Black community's response-to in of the breadwinner to and from work. It makes no ternational calls for sanctions? provision for any taxes, medical care, education, A. There is no doubt that if South Africa suffers, transport for other members of the family or fur the Black people will suffer as well. But we must niture. The HSL is now approaching R130 ($120.00). remember that even when a country goes to war, it In other words African workers are still, on average, does so knowing that some of its citizens are going to earning well below the poverty datum line. die in the process. The same thing applies here. We Thirdly, the corporations consistently underplay the know that there will be suffering, but we realize that it significance of the particular roles that U.S. corpora-. is by suffering that something better may happen. We tions play within the South African economic and don't mind taking the consequences." political structure. These are not small peripheral cor * Bishop Manas Buthelezi, a leader of the Black porations, creating a few jobs while manufacturing in People's Convention, in an interview in the significant consumer products with simple machines in South African Financial Mail 11/18/77 "Advocates of continued investment claim that if investment is a pillar of the whole system which main foreign investors withdraw this would result in large tains the virtual slavery of the Black workers in South scale unemployment of Blacks. Withdrawal can only Africa." mean the downfall of the Vorster regime. Black people * John Gaetseiwe, General Secretary of the South have pledged themselves to fight for freedom whatever African Congress of Trade Unions, quoted in the cost. Black people have endured much suffering the December, 1977 newsletter of the Madison and cannot suffer beyond this. Black people in general (Wiisc.) Committee on Southern Africa. are prepared to suffer any consequences if this means ultimate Black freedom... "...disengagement might not itself deal lusty Foreign investors claim their presence in this coun economic blows against a very wealthy country such as try contributes toward the development of the Black South Africa, but it will deal a firm psychological blow community. This claim is disputed by the reality of the against the structure and the system of apartheid. The Black experience in this country. We resolve therefore: white government in South Africa is terribly conscious To reject the in .olvement of foreign investors in this of world opinion-it affects not to be, but it is ex exploitative economic system. tremely conscious of it..." To call upon foreign investors to disengage them * Donald Woods, South African editor, in re selves from this white-controlled exploitative sys marks at Yale University reported in the Yale tem." Graduate Professional, 2/3/78 * Statement adopted by the Black People's Con vention Congress, 1972 Black Americans "SASO sees foreign investments as giving stability "The NAACP should call upon US corporations to to South Africa's exploitative regime, with it exten withdraw their investments in South Africa.. .The con sions of the likes of the Bantustans, and committing duct of American firms to date.. .has failed to make a South Africa's trading partners to supporting this significant impact on the elimination of the total con regime. For this reason SASO rejects foreign in cept of apartheid.. .The NAACP should maintain its vestments." call for economic sanctions against South Africa until * Policy statement of the South African Students all vestiges of apartheid are eliminated." Organization (SASO), June, 1977 * NAACP policy proposal adopted by the Board of Directors 1/16/78 "If I said that the only way to bring change would be total economic sanctions, I would be liable to go to International Organizations jail. So let's just be cagey. Let's just say that I support "THE COUNCIL OF MINISTERS... 'pressures,' and leave it at that." Convinced that South Africa's isolation by the strict * Dr. Nthato Motlana, chairman of the Soweto application of sanctions in all fields of activity would Committee of 10, in an interview in the New help to accelerate the elimination of Apartheid in York Times 4/4/78 South Africa and would contribute considerably to the liberation of the South African people... "What we in the ANC want to see is what the people LAUNCHES an appeal to all countries of the of South Africa want to see-our people are not only world, particularly the Western countries, to exert ready and willing to accept the consequences of action pressure on the racist regime of South Africa by totally against the regime on the economic front, but they and completely isolating it through the strict applica have themselves demanded the total political, tion of sanctions..." economic, cultural and military isolation of the racist * Organization of African Unity, Excerpts from regime. We demand total isolation of the racist resolution adopted by the Council of Ministers regime-no investment and withdrawal of existing in meeting in Mauritius, July, 1976. vestment." * Oliver Tamnbo, A cting President-General of the "THE GENERAL ASSEMBLY, African National Congress, South Africa, in an Noting with grave concern that some Governments, interview with the Guardian (US) 3/22/78 in pursuing strategic and economic and other interests, continue to collaborate with the racist regime of South "The economic boycott of South Africa will entail Africa and thereby encourage it to persist in its crimin undoubted hardship for Africans. We do not doubt that. But if it is a method which shortens the day of al policies. Calls upon all Governments to take effective action blood, the suffering to us will be a price we are willing to prohibit all loans to or investments in South Africa to pay. In any case, we suffer already, our children are by banks and corporations within their national juris often undernourished, and, on a small scale (so far), we die at the sshim of a policeman." diction... Requests all agencies within the United Nations * The late Chief Albert J. Luthuli, Nobel Prize winner and President of the African National system to refrain from any dealings with corporations which provide any loans to, or make any investment Congress. in South Africa." "The ending of foreign investment in South Africa e U.N. General Assembly Resolution 31/6H, is, of course, a tactical question; it is a means of under adopted 11/9/76 mining the power of the apartheid regin.'e. But it is of such importance that there can be no compromise \k hatsoeser about it front our point of view. Foreign US Government US Trade Unions

"Measures which only relieve hardships like "Since the AFL-CIO has repeatedly called for an marginal raises, subsidized meals, school fee end to the system of apartheid practiced by the govern allowances, and personal loans are seen as panaceas ment of South Africa, it is deplorable that the subjuga which evade question of basic rights of workers. tion and repression of the non-white citizens of South African by a white minority government has escalated Moreover benevolence toward workers which may im ... US corporations should immediately divest them press stockholders at home fails to get at issue of selves of whether presence of foreign firms represents collusion South African affiliates, and sever all ties with South African corporations." with and effort to profit from apartheid... * AFL-CIO Executive Council statement 2/24/78 With radicalization of black attitudes, tendency to call for disinvestment grows stronger. Added to "Apartheid provides a powerful incentive for US heightened expectations from new US administration companies to make South Africa a haven for on South African issues, must be expected that role of runaway plants. It is the interest and obligation of American American firms here will become increasingly con unionists to fight the corporations' immoral support troversial and rationale for continued presence will for the racist South African regime." less and less persuasive to growing number of seem * United Radio, Electrical and Machine Workers blacks." Union, resolution adopted e William Bowler, US Ambassador to South by 1977 national convention. The union withdrew a $4 million Africa, in confidential State Dept. cable of payroll account from Chase Manhattan Bank, March. 1977. a major lender to South Africa.

"We in the UAW don't believe that the hard-earned dues money of our 1.5 million members should wind up being used directly or indirectly to aid a country that practices such racist, repressive and undemocratic policies.'" * Douglas A. Fraser, president, United Auto Workers Union in a statement 3/3/78. He an nounced that the union would withdraw funds from institutions making loans to South Africa.

US Churches "The governing board of the National Council of Churches of Christ in the United States of America, recognizing the grave injustices in Southern Africa and guided by its commitment to Christian principles and its own affirmations of human rights, declares its sup port for the following actions... -Support efforts to end all economic collaboration between South Africa and the United States govern ment and its private institutions involved in banking, commerce and industry until black majority rule is a reality... -Undertake to withdraw all funds and close all ac counts in financial institutions which have investments in South Africa or make loans to the South African government or businesses and urge constituent mem bership to adopt this policy." * National Council of Churches governing board, statement adopted 11/10/77

"Voices for Withdrawal" is available from The Africa Fund for .30¢ ea., over ten .200 ea., "RESOLVED BY THE HOUSE OF REPRESENT over twenty .15t ea. ATIVES (The Senate concurring) That the Michigan Legislature urge the Congress of the United States and the President of the United States to impose immediate sanctions against the South African government in response to that country's disregard for human rights and dignity." * Resolution 462 adopted by the Michigan legislature 2/6/78 APPENDIX G: THE BANK CAMPAIGN Bank Campaign: Planning for the Eighties

by Bill Hartung relative to its total business. Also important college's account to Banque Provinciale du was the careful homework which had Canada, which had no financial dealings The Campaign to Oppose Banks Loans armed campaign representatives with exten with South Africa in five years, on the con to South Africa (COBLSA) gained new im sive information about the bank's opera dition that the bank inform Dawson Col petus in late July as representatives of 12 tions and about the various ways in which lege of any loans to South Africa it makes local committees from the United States, credit could be extended to South Africa in the future. Canada, and England met in Minneapolis and to corporations involved there. This The bank agreed to these terms, to discuss their organizing experiences and helped to impress the bank with the understanding that any future loans it to plan a coordinated strategy for the next seriousness of the campaign demands. might make to South Africa would be met nine months. Activists from California, Finally and most importantly, the bank with action for withdrawal by the Dawson Oregon, Seattle, Minnesota, Chicago, felt threatened by the campaign's growing bank campaign. The move, completed in Rochester (New York), New York City, links with labor unions. Like most banks in May 1979, also saved the college $8000 a Philadelphia, Washington, DC, Toronto, the United States, US National Bank of year in service charges, undercutting the Montreal, and England attended, along Oregon is not unionized, but in addition argument that action against corporate sup with representatives of the American Com Oregon activists had publicized the bank's mittee on Africa and Clergy and Laity Con use of non-union contractors in the con Bank Loans to South Africa, cerned, the two sponsoring organizations struction of one branch and the renovation for the campaign in North America. of another. US National Bank of Oregon's 1972-1978, a study released this May Reports of recent organizing efforts by statement on halting lending to South by the UN Centre Against Apartheid, local committees served as a basis for Africa and on withdrawing from PEFCO documents $5.5 billion of bank loans to discussion of how to strengthen the cam came shortly before a meeting of the Lane South Africa and corporations paign and broaden its base of support. County Labor Council in which bank cam operating there. US institutions ac paign activists had the votes to win pledges counted for $2.8 billion of this total. In New Victories of union withdrawals from the bank. all, 382 banks from 22 countries were "More than $127 million has been Pat Bolland of the Dawson College anti found to be involved in such lending. withdrawn from banks lending to South apartheid bank campaign in Montreal US banks heavily involved in lending Africa," reported Dumisani Kumalo, cam described how his group had pressured the to South Africa include Citibank, Man paign coordinator and exiled black South college into withdrawing a $25 million per ufacturers Hanover, and Bank of Klein, director of the African journalist, in his summary of the year account from Bank of Montreal. This America. Beate of dif campaign's achievements to date. Impor is the largest withdrawal so far in the Cana project, pointed out that because tant new victories for the campaign in dian bank campaign. Unlike many other ficulties in documenting loans to South are conservative Oregon, Montreal, and California were campus-based campaigns, which have been Africa, these figures described in detail by local organizers. initiated by students, members of the estimates of the actual credit flow from Western banks to South Africa. In Oregon, the state's largest bank, US Dawson teachers union took a leading role National Bank of Oregon, pledged to make in this campaign. no further loans of any kind to or in South As in Oregon, the campaign at Dawson port for apartheid is "too costly." Com Africa and to sell its stock in the Private Ex maintained strong momentum from the menting on factors involved in the cam port Funding Corporation (PEFCO), a start. From its inception in early November paign's success, Pat Bolland said that the consortium of banks and corporations that 1978 with a "Canada-Southern Africa college had been concerned about its image has financed trade with South Africa. Week" held on five Dawson campuses with in the community. Also, unlike many col "This action by the bank is clearly a speakers, films, slide shows, classroom leges, Dawson's board of governors is not response to pressure mobilized by the cam presentations, and visual displays, the cam composed of corporate directors with direct paign, and it is the first time that a member paign gained support rapidly. By mid interests in investments in South Africa. bank has ever decided to withdraw from November the Dawson teacher's union had The Dawson committee plans to mobilize PEFCO," stated activist Marion Malcolm passed a resolution transfering its own at other community colleges, at health at the conference. funds out of the Bank of Montreal and call centers, and among non-governmental The Oregon campaign won its victory in ing on the college to do the same. By organizations in the fall. a surprisingly short time. The first major November 17, 2000 students and workers at public action came in early April of this the college had signed a petition asking that California Successes year, when i8 organizations and 100 in Dawson's funds be removed from the Bank Stop Banking on Apartheid ($BOA), the dividuals withdrew accounts worth more of Montreal because of its lending to South California chapter of the campaign, also than $300,000 in protest of the bank's in Africa. reported several recent successes. The volvement in lending to South Africa. By At a college Board of Governors meeting passage of the Berkeley Responsible Invest mid-June the campaign had won its on the same date (to which the Bank of ment Ordinance in April marked the first demands. Montreal refused to send a representative) a time that a city had been required by law to Marion Malcolm noted several key fac motion supporting the petition demand was divest its funds from banks lending to tors leading to the victory. She said that passed ten to zero with one abstention. South Africa, and the action is serving as a because new, competing banks are opening From that point on much of the cam model for other cities. Similar initiatives are in Oregon, the bank was even more con paign involved monitoring the actions of likely to come to a vote in 12 California cerned with the effect of the campaign on the college's finance committee to imple cities on their next ballot. Another impor its public relations than it was with actual ment the motion. The search for a new tant step was taken when the California losses due to withdrawals. A second factor bank revealed the intense competition for Nurses Association committed itself in June was the marginal importance of the bank's institutional accounts among banks in to withdrawing its $10 million dollar retire involvement in lending to South Africa Quebec province, as well as details of finan ment account from Wells Fargo Bank cial dealings with South Africa by two because of its loans to South Africa. Bill Hartung is an active member of banks that had not been previously im The California actions offer an example COBLSA in New York. plicated. A decision was made to move the of a sustained, creative campaign which has 26 to reach new people while also lenders to South Africa, has adopted demands for an end to SeaFirst lending to continued South Africa and Chile along with the home territory of Bank of the demand, "Redline South Africa, Not operating in the union's demands, and weekly pickets out America, the largest bank in the United New York." Until recently anti-redlining side SeaFirst have helped inform customers has sought to serve as a activity had focused exclusively on the ac States. $BOA about bank policies. resource center for the broader movement tivities of savings banks. COBLSA has Mike Young, head of the United Food social change in the US. It has not asked shown that commercial banks are also in for and Commercial Worker's campaign to join it as a coalition but volved. As the campaign progresses more other groups against SeaFirst, has been very receptive to hopes to call on other groups for people are realizing that the same banks rather the linking of the union issue with the at specific times. $BOA that drain much needed funds from com specific support broader question of how the bank uses its distributes alternative investment packets munities in the US also supply funds in the funds. In addition to helping to pass a with positive suggestions for organizations abundance to help maintain some of resolution in the Seattle council of churches funds from banks or most repressive regimes in the world. seeking to divest their to withdraw their and calling on its members corporations involved in South Africa, that lend to South' "special interest" leaflets showing the con funds from banks Africa, he spoke with Oregon trade nections between US corporate support for unionists on the issue at the invitation of apartheid and the nuclear industry, the at 411,V local activists. The latest move against tempts to reinstitute the draft, and other a vote in mid-July by the local issues. SeaFirst was AFL-CIO executive council urging all its its function as a resource center, In members and all SeaFirst customers to has helped women employees of that $BOA withdraw their accounts from the bank. Bank of America contact union organizers, and it has assisted a community health Coordinated Actions Planned Clinica de la Raza, in setting up a center, Several important decisions were made at credit union. In turn, groups that have been the Minneapolis meeting. Campaign in this way will often support the helped members agreed to maintain the current de on a day of leafletting or campaign mand for no more credit of any kind to withdrawals. In $BOA's view the key to its Africa until genuine majority rule continuing growth lies in understanding South has been achieved. It was agreed that the that the demand for an end to US bank campaign should place a high priority on loans to South Africa can arise in a way that bank workers' struggles. It was other domestic and interna supporting complements resolved that wherever possible groups struggles and respects the priorities tional should work with Chile solidarity organiza that particular organizations and com tions on a local basis to raise common munities have set for themselves. demands against bank loans to Chile and South Africa. A commitment was made to Uniting Demands expand outreach among trade unions, black representatives Many local campaign organizations, students, religious organiza the importance of uniting with stressed LNS/Sierakowski tions, and anti-redlining and other com to discriminatory or New York, 1978 other groups opposed munity groups. Representatives oppressive bank practices. To help spread more widely the bank Seattle, and from Washington, DC, Labor Ties campaign's message, plans were made for noted the strength their cam California All the local bank campaign committees national weeks of coordinated action, joining with local two paigns had gained by aim to build ties with the labor movement, November 11-16, and March 16-21. In in Chile chapters of Non-Intervention but the campaign against Seattle First Na February, black history month, local bank an end to loans to South (NICH) to demand tional Bank (SeaFirst) has achieved the campaign groups will sponsor educational of the same US Africa and Chile. Many most direct cooperation to date. The United and cultural activities, and Dumisani in lending banks that have participated Food and Commercial Workers recently coordinator of the national cam dollars to South Africa Kumalo, more than 3 billion formed in a merger of the Retail Clerks In will make a speaking tour. 0 increased paign, in recent years have also greatly ternational Union and the Amalgamated In 1978, their loans to the Chilean junta. Meatcutters, has initiated a withdrawal $927 private bank lending to Chile reached campaign against SeaFirst because of its Reprinted from Southern Africa Magazine, September 1979. million. The D.C. bank campaign has also refusal to bargain with them as the expressed its solidarity with the Sandinista legitimate representative of the bank's 4800 movement in Nicaragua by exposing a $2 clerical employees. SeaFirst had previously million loan by Riggs Bank to the regime of had a company union, but in 1978 union deposed dictator Anastasio Somoza and by members voted to affiliate with the Retail organizing a picket against the bank in con Clerks, partially as a response to attempts junction with Nicaragua support groups. by the bank to break the union. The demand for an end to redlining, the The significance of the campaign from bank practice of denying home mortgage the point of view of the banking community and home improvement loans to specific was stressed by Patrick M. Fahey, SeaFirst neighborhoods (often on a racially vice president for "public responsibility," discriminatory basis) has been an important who told Business Week, "Banking is a issue in many local campaigns. Carolyn D.C. bank campaign said that vast, untapped group of unorganized Long, of the workers." Needless to say, Mr. Fahey and information on Riggs Bank's redlining would like to keep it that had often commanded the most his colleagues practices way. immediate reaction from bank customers. The union has drawn support from the The Minneapolis committee has been work local American Friends Service Committee ing closely with local anti-redlining groups, and groups concerned with and the New York committee, having ex chapter, NICH, funding for conversion from military to ci posed the redlining practices of five New vilian production. These groups have raised York-based commercial banks, which are 27 APPENDIX H: DIVESTMENT

ACOA.American Committee on Africa

South Africa: QDTaking Stock 0of

-. Divestment

'Irp =~r171~

THE NEED FOR ACTION 0 repressive. It is time to end U.S. support for the apartheid system by withdrawing corporate investments and ending Black people in South Africa live under apartheid, a bank loans2 that are so crucial to its survival. tightly meshed system of total dispossession that deprives them of their citizenship, freedom of movement, WHY DIVESTMENT 0 land ownership, organizing rights and education. This system is official policy and exists to maintain the black After years of claiming neutrality or defending apar population as a vast reservoir of powerless, cheap labor to theid, U.S. firms have only recently begun to claim that be used when and where the government and coiporations their investments in South Africa are vital to the prospect decide. of reforming apartheid. But a close look at the corporate For more than forty years, U.S. corporations and banks reformist strategy demonstrates that it is aimed at pacify have been investing in South Africa, not merely aware of ing critics of South Africa in the U.S. The most progressive the repressive system, but clearly defending it. In ex reforms imaginable cannot change apartheid which is bas change for the enormous profits on cheap black labor, U.S. ed on the bantustan system of land distribution. Thirteen corporations and banks have helped provide the capital per cent of the land is all that blacks are allocated and, un and technology for the nuclear, military, police and prison til this is altered, blacks will be slaves in their own country. systems needed by the white minority to maintain control Corporate reforms do not even address this problem nor of the black majority. Continuing U.S. corporate support the problem of political disenfranchisement. for apartheid is evidenced by the tripling of corporate in Only a strategy which considers the need for fundamen vestments in South Africa over the past two decades, mak tal redistribution of wealth and power will suffice. Among ing the U.S. the largest foreign investor next to Britain. U.S. the strategies tried by anti-apartheid groups in the U.S. banks have also bolstered the apartheid economy with have been shareholder resolutions and divestment. more than $2.2 billion in recent loans.' Shareholder resolutions work within the arena of cor The uprisings in the sprawling black township of Soweto porate shareholder meetings. Occasionally the resolutions in 1976, the death in detention of black consciousness have called for corporations to withdraw from South leader, Stephen Biko, in 1977, and numerous reported ban Africa. More often they call for the gathering of informa nings andarrests are a telling sign that apartheid not only tion about operations in South Africa. They have been a continues in South Africa but is becoming even more way of raising the issue among stockholders. However, over the years they have had limited success and when it is Massachusetts, commenting on a strategy for ending clear that corporations will continue their South African in apartheid, recently said; "Divestiture represents the vestments, stronger action is needed. The President of quickest and least violent path to the eradication of apar Brandeis University, Marvin Bernstein, whose administra theid. Without pressure the South African government will tion recently sold its stock in Ford and GM as a result of a remain committed to apartheid as they have for the past divestment campaign, illustrates the point: "Last year a thirty years."' shareholder resolution got 2.7% of the vote at GM's an The South African government has already reacted by nual meeting. This year, despite the increased focus on endorsing studies which are aimed at determining the college campuses regarding divestment, the same resolu status and impact of the divestment campaign. One such tion at GM's meeting got only 1.8% of the vote. That's study, done by Meyer Feldberg, a South African consultant ' 3 when we decided to sell our stock in GM. " to American and South African companies concluded; It is the clear lack of corporate response to ending sup "When an issue such as South Africa becomes significant port for apartheid that makes divestment necessary. among several hundred students at a great university, the Divestment means the sale of stocks and bonds from U.S. policy (makers) and decision-makers in the university, in 7 corporations and banks4 operating in South Africa. Divest government and in business take note." ment represents a clear message to corporations from shareholders that their continued profits from apartheid are morally repugnant. Douglas Fraser, President of the United Auto Workers, addressed the moral issue involved SOME ARGUMENTS AGAINST DIVESTMENT CON when he recently said, "We in the UAW don't believe that SIDERED 0 the hard-earned dues money of our 1.5 million members A successful campaign for divestment necessitates a should wind up being used directly or indirectly to aid a refutation of those arguments used most often against country (South Africa) that practices such racist, repressive divestment, such as the following: and undemocratic policies."5 1) Portfolio resporsibilitywould be violated if financial managers are called upon to divest: Those responsible CAN DIVESTMENT WORK? 0 for investment portfolios are generally bound to invest in Divestment from companies involved in South Africa is the most productive and profitable ways possible. Often not likely to affect the market price of the stocks in the referring to the original "prudent man" ruling by a short term since most U.S. firms have a relatively small Massachusetts judge more than 150 years ago, many in percentage of their overall investments and assets in vestment managers are concerned that if they divested South Africa. However, if enough organizations and in from corporations doing business in South Africa, they dividuals divest from these corporations in a campaign would lose money since many of these corporations are with considerable publicity, a "climate of resistance" can the largest American companies.' be created around the issue of South Africa. Corporations This concern is based on the assumption that stock in are extremely sensitive to bad publicity and are fearful that these large U.S. multinationals is essential to a prudent such a climate will extend to questioning all of their prac portfolio. There is strong evidence to the contrary. A re tices. Continued negative publicity can, in fact, make com cent study which appeared in the Journal of Portfolio panies unattractive investments. For example, the stock of Management concluded that: "the effect on portfolio J.P. Stevens is undervalued today, reflecting the long bat risk of excluding the companies operating in South tle and bad publicity generated by the confrontation bet Africa, the 150 to 200 major U.S. companies, is,contrary ween the firm and organized labor over Stevens' labor to intuition, not particularly important." ' A study done a practices. year ago by Salomon Brothers, a well known Wall Street Corporations must increasingly count the costs of re firm, on the investment returns of the Standard & Poor's maining in South Africa when faced with the possible loss composite index (which includes the majority of firms of investors, loss of future markets for their goods and a operating in South Africa) indicated an average return of decline in stock value. The days when investment returns just 2.8% over the last decade.'" Consequently, Dr. in South Africa were double that of domestic returns are Robert Schwartz, Vice-President of Shearson, Hayden, gone. This dramatic drop in investment returns reflects. Stone, Inc., a New York investment firm, suggests that a among other factors, the increasing political turmoil portfolio, in some cases. 'might even be improved by within South Africa. divestment."" Of course, divestment alone will not bring an end to While it is too early to fully assess whether it has apartheid. Some opposed to divestment see it as a "one meant a loss or gain to those institutions having already shot" stategy which then leaves the institution helpless to divested, it is clear that there are substantial alter work for change. But the strength of divestment is in the natives. At the University of Wisconsin, which recently expanding campaign made possible by the efforts of in divested. Joe Holt. Secretary of the Board of Regents, dividual institutions. explained that "there were a lot of stocks left to invest Freedom in South Africa will ultimately be won by those in,to replace those we sold.'' 2 South Africans struggling for liberation, and divestment Beyond portfolio obligations on financial risk, many can contribute to that struggle by posing a threat to con institutions also have principles written into their foun tinued U.S. investments and support for the white minority ding charters or legislation which include a provision government. The threatened loss of U.S. dollars is far more that the institution's behavior should be consistent with serious to the South African government than any so the Constitution and laws of the United States. Corpora called U.S. corporate influence while continuing to operate tions operating in South Africa violate many of the major in the country. U.S. Senator Paul Tsongas of tenets of American law, including equal rights under the

29 SThe following isa list of some institutions and organizations in the U.S. that have adopted a policy to divest from corporations and banks do- \ ing business in South Africa:

Total Divestment Partial Divestment* Antioch College Amherst College Hampshire College Boston University Michigan State University Brandeis University Ohio University Columbia University Stanford University Chapter, YWCA State University of New York, Oneonta University of Massachusetts Smith College University of Oregon Tufts University University of Wisconsin University of Michigan Sisters of Notre Dame de Namur, Connecticut Vassar College District Council 1199, National Union of Hospitals Yale University & Health Care Employees Retail, Wholesale and Department Workers Union

Alternative Investment Resources

These organizations can be contacted regarding alternative investments for portfolios which have been divested of stocks and bonds of firms operating in South Africa:

California Alternative Investment Task Force Community Investment Fund 1932 Fourth Avenue 120 Boylston Street Sacramento, California 95818 Boston, Massachusetts 02116 Telephone: 916-442-3838 Telephone: 617-542-1060

Community Economics Associates Strategic Investments Advisers 6529 Telegraph Avenue 1320 Campus Drive Oakland, California 94609 Berkeley, California 94709 Telephone: 415-653-6555 Telephone: 415-548-1320

California Public Policy Center Wisconsin Center for Public Policy 304 South Broadway, Room 224 1605 Monroe Street Los Angeles, California 9001 Madison, Wisconsin 53711 Telephone: 213-628-8888 Telephone: 608-257-4414

law, voting rights and equal protection under the law. Many of the stocks probably would have been sold For institutions to hold stock in these corporations anyway."'' 3 Most institutions calculate general transac under such circumstances can have possible legal con tion costs into their estimate of expenses for the year, sequences. For example, in February 1978, the Universi meaning that only any additional costs over what the in ty of Wisconsin totally divested $11 million worth of stitution would normally spend is a realistic figure for stock in U.S. corporations operating in South Africa on costs. the basis of a legal opinion from the State Attorney Institutions, particularly colleges and universities, General that holding such stock violated a 1973 state and some religious institutions, also cite the possible law prohibiting investment in corporations that practice loss of donations to the institution by individuals and or condone racism. corporations upon divesting. This argument is difficult to assess and raises questions about the interconnec 2) The costs involved in divesting making it a prohibitive tions between these institutions and the corporate risk: The costs most frequently cited by those opposing world, suggesting economic black mail and interlocking divestment are the transaction fees charged by the port directorates at the very least. Such an argument also folio management to divest and also the possible loss of challenges those such as the President of Harvard donors to an institution. Both the Massy Report from University, Derek Bok, who maintain that universities Stanford and the Eckland Report from Yale emphasized must be politically neutral. 4 Many institutions who de the high brokerage fees involved in their recommenda pend upon donations have long taken moral stands not tions against divestment. This argument appears to be limited by the corporate ethics of the day. more rationalization than fact. Portfolio managers turn over stock regularly, perhaps an average of 15% annual ly. Estimated at between .27% and .6%, these fees are 3) We feel we can be more effective by working within of little consequence when managers buy or sell stocks the system in South Africa by encouraging U.S. corpora and bonds. The change ol a percentage point in the tions to sign the Sullivan Principles and to institute price of a stock swamps these transaction costs. Com reforms in the workplace: This claim assumes that what menting on the costs involved in the recent $7.5 million U.S. corporations can do for the 70,000 blacks they divestment at Michigan State University, Nancy Elliot, employ is more important than the repression of the 22 Director of Investments and Trusts, said that "the fees million blacks they do not employ, whose repression involved were not significant enough to be of concern. their very presence helps to maintain. While petty 30 reforms in the workplace may mean improvements in the shed in the struggle for liberation in South Africa, it can lives of a few blacks, the vast majority only know the make a significant contribution to this struggle, by U.S. computers and police vehicles used to enforce eliminating much of the fuel that feeds the violent fires of apartheid. apartheid. E The Sullivan Principles have been endorsed by more than 100 U.S. companies and call for measures such as non-segregation of work and eating facilities and equal Dominique Colon pay for equal work. Truman Dunn Rather than contributing to genuine change in South October 1979 Africa, the Sullivan principles are a public relations suc cess that helps to secure U.S. corporate presence in a basically unchanged system. The Sullivan Principles are dangerous because they give the impression that South Africa can be reformed by U.S. corporations. In fact, U.S. corporations have neither the will nor the power to bring about fundamental change. They support the South African government and are allied with it against the 0 FOOTNOTES 0 struggle for freedom of the majority of South Africans.5 1 Extensive information on U.S. investments in South Africa is available from the American Committee on Africa/Africa Fund. 2 For further information on bank loans to South Africa, contact the Cam THE BENEFITS OF DIVESTMENT 0 paign to Oppose Bank Loans to South Africa, 198 Broadway, N.Y., N.Y. Much of the time divestment campaigns are put on the 10038, telephone: 212-962-1210 defensive by the many counter-arguments and rarely is 3 "The Divestiture Issue Hangs on for Colleges", The Boston Globe June there serious consideration of the benefits of divesting 24, 1979. 4 To divest from a bank would be the sale of stocks or bonds held in a stocks and bonds from corporations and banks operating bank as a corporation. Personal and institutional accounts held in banks in South Africa. can be withdrawn, which is the strategy of the Campaign to Oppose First, divestment of the portfolio can end an institution's Bank Loans to South Africa. direct support for U.S. funding of apartheid. Secondly, 5 UAW Press Release, March 3, 1978 although much of what is loaned to South Africa is in the 6 "The Divestiture Issue Hangs on for Colleges", The Boston Globe June form of Eurodollars, the extension of loans to South Africa 24, 1979 lessens funds available in the U.S. for mortgages, home 7 Feldberg, Meyer. American Universities: Divestment of Stock in US improvement loans, low-interest student loans, small Corporations with South AfricanAffiliates, University of Cape Town, business loans, community improvements and the like. 1978 8 Charles Pillsbury, a pension lawyer in New Haven, Connecticut told us Money can only be spent in one place and there are better that no Federal, State, or local "prudent person" statute would be things to invest in than apartheid. An example is the prac violated by divesting stock from corporations operating in South Africa. tice of redlining, whereby banks draw a line around poorer 9 Rudd, Andrew. "Divestment of South African equities: How risky?", jour neighborhoods and virtually cut off funds to these com nal of Portfolio Management, Spring 1979, p.9 munities which they perceive as high risks.16 While the in 10 "Growth by Stocks Trailed Other Investments During the Past 10 Years ner cities decay, the apartheid government of South Africa Accordipg to Study", Wall Street Journal, July 6, 1978 has enjoyed almost unlimited credit. The divestment 11 Telephone interview, August 24, 1979 strategy not only calls for an end to the financing of apar 12 Telephone interview, August 24, 1979 theid, but also for a return of such deposits to com 13 Telephone interview, August 24, 1979 munities at home. 14 In response to the divestment campaign, President Bok issued a series of letters to the campus community, maintaining that institutions of higher U.S. corporations with operations in South Africa con learning are, and should continue to be, outside the political arena. tinue to profit from cheap black labor there while plants at 15 For further information on the Sullivan Principles see, "The Sullivan Prin home are being closed. Paying blacks near starvation ciples: A Critical Look at the U.S. Corporate Code of Conduct in South wages in South Africa means increased unemployment in Africa", Africa Fund, 1979. the United States. This is not to suggest an end to all 16 For further information on redlining, contact the NY Committee to Op multinational operations, but that American workers can pose Bank Loans to South Africa, 313 W. 78th Street, 4R, N.Y.,N.Y. not compete with the wages of apartheid labor. 10024, telephone: 212-865-8972 or the National Training and Informa Perhaps the most significant benefit of divestment is tion Center, 1123 W. Washington Boulevard, Chicago, Illinois, 60607, the contribution it can make in the ongoing struggle for telephone: 312-243-3035. liberation in South Africa. In response to increasing inter 17 "Wiehahn-Exposing the Contradictions", National Union of South national pressure, Prime Minister P.W. Botha has declared African Students, 1979, p.5 7 18 See "General Motors in South Africa: Secret Contingency Plans In the that South Africa has adopted a "total war strategy.' Part Event of Civil Unrest", Africa Fund, 1978 of this strategy is the National Supplies Procurement Act which authorizes the South African government to order any U.S. company to supply the government with goods "South Africw Taking Stock of Divestment" is determined to be necessary for national security. General available from The Africa Fund for .25¢ ea., Motors, for example, has already been designated a key in over ten, .15¢ ea., over twenty, .10 ea. dustry which would undoubtedly be seized in the event of "civil unrest."' 8 While divestment cannot prevent blood- APPENDIX I: ALTERNATIVE INVESTMENTS

(From Hagelberg, Public Capital and Community Needs, Center for New Corporate Priorities, 1979)

"Retirement funds should be used as much as reasonably possible to benefit and expand the business and economic climate within the State of California, so long as such use would be consistent with sound in vestment policy." (In part. California Government Code: Section 31595.3; amendment added 1974.) I. INTRODUCTION The City and County of Los Angeles have under their control "quasi-public" funds which total, de pending on the time of year, between 5.5 and 7 Billion Dollars. This sum represents the assets of public employee retirement systems and the temporary idle surplus operating funds of the City and County. Managers of these funds are charged with investing these monies, in accordance with State law, City Charter and Federal banking regulations. Prudent management of these funds directly benefits the pre sent and future recipients of public pensions and the City and County treasuries. Proper investment of idle surplus funds also benefits the City or County that would suffer the losses from mismanagement (or no investment at all). Thus, proper investment benefits the taxpayers and residents of the City or County who receive the services paid for by generated income. The various laws and regulations which govern the investment of these funds are quite clear as to the fiduciary responsibility of fund managers: they are required to seek safety and reasonably high rate of return. Most of the these funds, when not needed for disbursement, are placed in 'conventional' investments which include corporate, industrial and utility stocks and bonds. While such investments are not con sidered imprudent from the perspective of the fund managers, the impact, or lack of it, of such in vestments on the economy of Los Angeles or California can and should be considered. When such monies leave the state, those funds are no longer available for California's needs. Further, investment in out-of-state corporations can frequently mean jobs created somewhere else, perhaps at the expense of (or in competition with) jobs in the local economy. Not only are there negative impacts from some investments (in terms of lost economic development), there are tremendous potential impacts from certain alternative investments which can directly or in directly increase the amount of capital invested in the City or County in housing (construction, rehabilitation, weatherization, solarization), business and industrial development (construction or ex pansion of commercial properties), job creation (guaranteed loans to small, innovative, labor intensive businesses), community economic development (community cooperatives for food, housing, health care and other services), and other areas of local need. What makes many of these positive benefits possible is the recent development of a large number of programs (public and private) which offer the public fund investment manager reasonable yields, a high degree of safety and some amount of positive community economic impact. Many of these investment mechanisms or options fulfill the public fund's requirements for safety (by carrying the "faith and credit" of the federal government as guarantee), for yield (7% to 9% return is typical) and all provide capital for areas of local economic need. These considerations are of pressing importance in a period of economic difficulty in which most City and County residents are feeling the financial pressures generated by a slowed economy and by in flation. While the overall inflation rate hovers near 9 %, the inflation rate for necessities-food, energy, housing, health care-are much higher. Nationally, the costs of housing (as reflected in the increase in the cost of a new house) have risen by 109% between 1970 and 1977; the annual inflation rate for food for 1978 was 11.8%; rates charged for natural gas use by Southern California Gas Company have risen, on the average, 14.4% per year between 1975 and 1979; the costs of health care rose 68% from 1970 to 1977. Unemployment has become a national concern, with California somewhat better off than the na 2 tional average. Still, lack of jobs in urban areas for minorities is serious, upwards of 15% to 0% and higher. In many urban centers in which the level of unemployment is high and the level of provided ser vices is very low, there is a vital need for economic development and community revitalization. The purpose of this study is to examine the current investment practices of the City and County of Los Angeles, in the context of the various capital needs (housing, jobs, energy, food, community economic development) of the area; to discuss model alternative investment programs and options of other state and local governments; to analyze investment options and mechanisms (some immediately available, some proposed, some soon to be operational) which can be used to address the problems and needs presented and, finally, to make some recommendations for the City and County to act upon. Given the existence of a number of local needs (economic and social), it is time to examine the role of the public fund manager as a public servant; it is time to examine the role of the fund manager in an enlarged social and economic context; it is time to request of the fund manager a finer sense of com munity or social economic responsibility in the decision-making process. An additional purpose of this study is to pose the following question to fund managers and invest ment advisors (and to provide most of what is necessary to answer the question): "If rates of return and safety can be shown to be comparable, why would managers of public funds choose not to invest such as to increase housing, jobs and community economic development within the City and County?" APPENDIX J: INVESTMENT REFERENCE GUIDE

This is a guide. It is by no means complete. Research your own situation specifically. This Guide is only intended to set you off in the right direction.

CHURCHES MUNICIPALITIES Governing Body: Usually a Board of Trustees, occa Governing Body: The legislative body of the region, sionally in larger churches financial decisions are e.g. City Council, Board of Supervisors, State Legisla vested in a special Stewardship Council. ture, etc. Can be superseded by a public referendum. FUNDS INVESTMENT CATEGORY FUNDS INVESTMENT CATEGORY General Fund: 1. Checking Account Pension Fund:1', 1. Govt. bonds and securities (current 2. Savings account, Certificates of 2. Real estate and mortgages accounts) Deposit, Bankers Acceptances 3. Corporate stocks Building Fund:, 1. Savings account, Certificates of 4. Corporate bonds Deposit, Bankers Acceptances General Fund: 1. Checking account 2. Govt. bonds and securities (current 2. Savings account, certificates of 3. Real estate and mortgages accounts) deposit, bankers acceptance 4. Corporate stocks 3. Govt. bonds. 5. Corporate bonds Endowment:, 1. Savings account, Certificates of Deposit, Bankers Acceptances 2. Govt. bonds and securities 3. Real estate and mortgages TRADE UNIONS 4. Corporate stocks Governing Body: The Executive Board. However, in 5. Corporate bonds the case of pension funds, the union does not have ex clusive control. It may share control with either man agement or control may be vested in an outside body. Note, though, that even in these cases, the nature of the fund can be subject to collective bargaining. UNIVERSITIES FUNDS INVESTMENT CATEGORY Governing Body: The Board of Trustees for private colleges. Public schools are tied into the state system Pension Fund:1,' 1. Govt. bonds and securities -often a special state Board of Regents or the 2. Real estate and mortgages Treasurer (controlled by the State Legislature) 3. Corporate stocks 4. Corporate bonds FUNDS INVESTMENT CATEGORY Strike Fund: 1. Savings account, certificates of Pension Fund:', 1. Govt. bonds and securities deposit, bankers acceptances 2. Real estate and mortgages 2. Govt. bonds and securities. 3. Corporate stocks General Fund: 1. Checking account 4. Corporate bonds 2. Savings account, certificates of Endowment:' 1. Govt. bonds and securities deposit, bankers acceptances 2. Real estate and mortgages 3. Corporate stocks 4. Corporate bonds 'Often managed by a bank, sometimes a special invest ment company. General Fund: 1. Checking Account 'May be more than one pension fund. (current 2. Savings account, Certificates of accounts) Deposit, Bankers Acceptances APPENDIX K: U.S. CORPORATIONS AND BANKS IN SOUTH AFRICA

AMERICAN FIRMS. SU13SIDIARIE-S AND AFFILIATES OPERATING IN THE REPUBLIC OF SOUTH AFRICA

The following symbols have been used: (S) American parent controls 50 percent or more of capital (A) American parent controls less than 50 percent of capital (B) Branch (primarily sevice organization)

fAbivi of Lowt No. of No". & Addridut0Of 1 Nffo010011.00 No. of Aftinio & Ao*n of Alarri"of Lo004 No, of AngularA Ad -ran. of

IS) AAP.All. 104 AAO.I.1kTE1AT. IS) Altn.' 65 Am., Anorlbo6 IS' JILACK 5The Siack C-eo.. IONAL . 0 . . ANDERSE16N Co.. so9well wirin Cho.n,10 2000.11o A.... 1100 1"1) L1. 1100. L-0i0111 & Co St9005..ChNOISO IS.A.) to,,) York. N.Y. K111140201 M.... 00602 IS) ANDOERSON iS) BLACK & Co_ P.O. T44. 2524 0.000.a 50510h Mr0*9. Ce.. T-.'. IS) A BS World. "010. o. Mwyyim 21204 77001 I.- 45 B,000 S. (S) ANIKEM 93 No.se Chrioaol 11110.York. N.YV iF-W) L1. 2901 B.olelldi I 0001 Ad". * 9.. 4iI, I.. oole IS11,W 11 Wle. N.C. 12 wein-0ilgailai liart 4052 1 ... Corp.. *101.09 notni 451.il.m1. 32 Adeola Porro livi., G_1'~ Conlo.. P.O- 90.3100 Is) BOEING IS) AETNA. P.-ioinigh. P. iS) APPLI 50,11 Ah-S 15222 1701. A.C.E.C. 3707. 400.10i. 10.01. 1III. 1. tha Mull. & Phillips .. Own094124 USA) ,0 A FIA, 1700 Voile ,11ii-notio-lI C. Ad. V*irll. Plin I Park Al-.. N-w 1S) The. DOREN iS) AUTO . M-.1 IA.. 240a Vork. N.Y. C.lneol IS.A.) I1,* York. N.Y 10017 Asonfivol0 S.14109 22 1.1101104 IS) ABBOTT 13 AFIA. 1700 Vil0* C_ _0.t. Ink.. Rd.. *0*110 #40. 41100101 P.. to. 59-2037 IS) B0ORG .10 A M a Misin, Florida 01.141, S.A. ",atIO. 200 50o1* iSA) 101*)j II)v Los.1 IOIV) L1.4 mic1w.94 A-.. CONige 12 Accovt 1.4010O140 141 Sl*00 L Sho.01. (A) AVIS ft-, 240 A.. Inta00,*100o IS) ABBOTT 110.. No-11 C...",. . CaI SYS, I fiaoaod~rloo. P.O. B.. 201. S.A.1010Ld minin,011 .0.0100 145 440011et 1.040r010 Gordon. Chly. kain Yolk 11430 144inew£001U 101 141 BUCKMANi Ply') 1.10 f01 ^YEA1ST LO.e*-AA1 ilk.. 1296 tw0111 I~10. 694 2'0 A-l. iPlyl 1.14 IS) ABBOTTS 1011v)1t.1 Man,0York, N.Y. coll. S.d.. Voi C.,. Co.. 101 41..1

IA) AST iS) The a.. 6011"M IS) BUCYRUS -- I1.0.cro. 3,44 lAf~mv.) Pelt A-l. hoor York. 1100 M*--0 Ale.. IP0Lei. U.-0llPf Corp. SI AIO &ow N.Y. 10022 P.0 Oa... 01 0.00.00.0iko.100. 53172 Cuonlidd. on. .0.0 4..,i.0. Co.. IS) ADDRESS 425 T.1105k

1.1. IS)SULOVA. M11,.11011 30 swli- 100101 Co. Im1.. likticil) 01110A~e. Co.01) . d. Pa. 6M Nife 11) Lt.14 Yawk Cliy. N.Y.

(A) AMERICAN 4A? RUMMY 100 slarall, 1rl0ars"1r.

iS) BARLOW la).,1190.C W.I."-0. CO. 0.140,. Mila. 2 A-,-*. 4.1.11 in. T-41l. 100111910 401,1 Afica 0.10111of walorhlnr 9402 YorkN.Y, 10017 Il) BATTIN. 142 4.1o.0 .10 IA) BURLING 1.420 4511.n1m thatiatr.01 Baron. 0.010 & 0~001.. IS) AMERICAN TON Ma0*01* Inc0.. 134S A-1, 0I 10 A-4-OC &b. .1 1-s., 342 Madison MiD.11 A.) thi0 A0111110. hoorw A-_. N-~ Yolk. York. N.Y. 10014 Sa-,, Ntoo Volt. N.Y. 10017 N.Y. 10004 IS) SU1111U0144 400 *s*... Cwoo A--. 110011leO,. I4) AMERICAN 120 IS) BICI4TI1 110 4.1onvo C.lpolralen. 110.' 4001o.40 -V. kan, York, 1.1l10 Pl..B. 396.loo N-01.0P.O. a.. Ala. N.Y. 94119ce c4te. 0.1,011t. 0.1011.011 4622 iS) IIEcCKMAN IS) AMERI1CAN (S) BUTTERPk 42 Anwinic.00Can Co., In., 2400 Harlow7 nalro011 G-"s. 102 Pont. Anavic~n Lane, 1t.1 W01) 4110. .,o. Co. GNP~ol~,". CoI.. York 10004 Co. (SA.) 06630

(A) 40.4RICAN -on0a. Geese In.. IS) BEGCMi.Nut A1lft- lfl 102 Miridl0rLI-. 400 00001..Ito Sonrs Lit. S.o-, A.-0 Yolk. N.Y. 11111101011. 0*w 10000 57" St.. Newo Volt 10019 IS) Cal IS) AMEXIA Arroarca MOW%01 Corporation 14S20 1104,loCll~el. (S) BE RK.ICSNE P.1fro10511110.. 40101.0.s nnawroinatria c011.11. 0.101.90 Core.. 11a.s,9 Pe. IA)AMEriA (S.A. I Ltd0 00"4.00. II) 44122 151COS. 7Thai loll, IOIY). moiylInnim Arragol i-lorni41o'.nl 19) BIG 011101 Uri.. Stores I0001 101*) 1t.1 Al111l00 Pl1140001. 0001C1140 a.. -eS A n-o 250 Park A.. CISC.PC. 4000. nagivoi00 city. 01) 1.1d k-O York. N.Y. Caif... 4"04 10017 & a IS) CALTEX * C.Ia portic*.,,,r IS) TN. COCA. 3000 Tn. CuCold E.cor IS) CIS WITT 120 Do will Inrlwt.O,1. oil (S.A.) Caloo-ton, 380 COL.A Noroory CoIrporlitlon,P.O Iwn oo (PrILtd. M"-.01 At... Nolo C-orton~, Drwm 56437. IA)lw Se. 6327. Starkoll9 York. N V. 10017 Alfh.0.0... Ltd. Growwlo. S.C. 30344 IA) DINERS Dotwoi Club Ilk. 1O 49) CAM T.R.W. TAW 1n-. 23565 Club &A. Cliliniall Crew. E-10* A-. Chm Nall York, N.Y. Afticd) IS) COLGATE IPIVI Ltd. :5001, allW. Ohio "117 650ao Co~e.b-CI-~l. 10019 010y Ltd pucrOinko C..11a..t,,. 300 Park1 1n-o A -n, ft- York. IS) DIVERSEY 20 TN5 Drwo.,, Cero N.Y 10022 Sou.h Africk IS) CARS*Om ISO 'Tso Corboru. hl cur0ci10000Wt UNOJM. Co-wSRO. Now Ill") LtM Chicrgo Etroor. U.wera poll., Now York S.A. (PsrI LWd 14=0 (I DODGE 0 XM World Tram. S...., Inc.. Oh. World IS)IP C COLLIER 30 Udarnlikin. Inc.. (PIV) Ltd. Tnod.I Coner. I-0' EGOThird A-.. N.Y. York . N.Y.

IS) DONALD IS) CAR LTON Ko0.ly.Clor (S) COLLIER 143. I1.- $400 W- al 1, Cpok Corol to North SON A. Sou~th Africk Third Av.N.. C:.-o. 04t,) SI.. M-nnamocil. 1041) Ltd. N.Y. 10022 Ltd. .. n.-.W54431

IS) COLLINS Ce." n.pRod.. Oreio Rod. Iht Rlockwell I0lhfnlOls Colo.. 1200 North, IS) DOW 0ow Chorilldl AaRoaRcNord 31 Thil C -1o~ Cormolon,.2020 A"'.e 101,1 D0- Cohoo. id IS) CARNA. . 1.537 Car-.t~, Lld. TION Conn. IA) COMUTERA 330 Coro.,~50.,0. Ionic. 1.011.9.0 We~to. ald. ~ C-ororlion 650 Ltd. ARBoIoS . 30036 S.,ord CflI IS) 01 Dow C.-t ...... -,Ord IA) CONSOIi. 4000 AoI1- i IS) CASCADE DATED 0-111-aI~t, Inc4. 7C.te." C.rso' P.0. Corp. lt,,) alon GIoo Work. acil 1036 lPOt)Ltd P.O. 500 Toledo. ONl. Ltd. 20157. Cartlond LI-tnod

(S) J. I CASE IS) CONSOLI 220 CNia.oo Phillurrot011 IS) DRESSER 1120 On1.,lneti ,1 170 . . Cola 10101l. Tee), Coaniy. 4 South AWtioa nertolut. 700 sto DATED 0110,1. Soln An.. lIty) Ltd St. Rlacio. W~c -,,.l Tool (01Y) Ltd. Tos-75221 Ceiato,ilS.A. Non York 10017 fPT0, Ltd (S) DREW 15 Ultad Star"eF0,1tri IS) CATERA )Intor-io~nk To. IS) CONTACT APtorld Cort'oslirO, 522 ClIlt PILLAR SA. P.. aoo 405 pr0,1.& Tilorkph Eloor-le So.,. Air A7voflet N- Y.11. IAll 1 211 Gath. 2, I-) L. low, It,,) N . 10034 1011,I Ltd. Ltd. Solloorlod lib lkrr Lld. Pill. A--.. N Y. .0.11Y, _Nod0 III 10022 Cetorpl..o Trao ISI COINTROL Celoot,, 100 154 Coi.) Doo Corp, IS) OLISOIS 31 05, iti1t~lI 001 . 100 34,", Nollrillill AdoowkSt. Chernss. 77w. C,tc~t A. . South. ICTI)Ltd. 0D0, 81629

(S) CENTRAL IA)OULMISON IS, CORAN 729 COC Iotorhrlla " 3 C'llfr,ra LIi1oCroducts firce'norr." r oi-m Inc,.rioru1t-eno Co., 80. 0 1124. C-.o Work. low,) Link, Prod0 illd Ohio 4410I W M77Weroea.. lc'ts Sooth ISA) 10,, Clint. N.J. 07632 IC) CNAMSER Afr- ICIVI. LAIN*S Counso't, , 201 ;.o, Ltd. lowrI Ltd Now50., 091 IS) DUN6 430 Dut & Brodot Inc4.. Oka-lie, 99 Chuith Strool. Nan fCf,) Lt. Yell. Y 10007 IS) C.AMCION S5ar 01.9 Comratn, TOiledr IS) COTY P.O. Zoe 910. Non York. N.Y South AhrS Tomd On. 43661 (0t,,) Ltd1 l(P,,) LWd. IS) ECrILIN 125 Thk Eon-,, rkl.a -Irilt (s) on, tl IS) CROWN 302 Crio,, Cork & S.., Caro ConoIany U.S. Rouit. 1 CCIASI 6 Tw Chat. AllEON),,, Road, Eroltor. Bonk4, N.A 19:0.9. Cors Con, Co. Inc. .9300 M~noil, ovil, , . AWco. i No. Cinl. teit Coriei04406 0-woo Coroor..tion. CPTY)Ltd. d0100 C., 19136 1oa, Rodrotl IS) ELECTRODE 550 Union C-rb-a Core, Co. IS. A. 270 Cork A-. Noin BAD. 01.. Vork, N.Y. S CNhoomorof om (S) CUTLER 290 C -~c,, :-Ita11,) Ltd. 4201 N Em.1) Ito..33 .1100,11 co'gille7 Place, Gnkr,twC. 2 1h,S",.., 1 ...... Wis. 63214 IS) ELIZABE TH IS) CmA=S Conn. 100 El, Lilly & Comro.,,, 307 Eat, McCsrthy SI. A-rea ISt~) 46206 Y Ol.CkN IS) DAMES IS 10 Do- Ill Mo. mod'. USA (S) ENCY C LO 43 4,,cYvslooodlo 5i'lthris. CAEDIA 11.25 Nort,, M..hlplY IS) C -eRYSLER 2000 Croela, Coroorsuon A... Ch'saOr ""no.01 All-W C O ao. 19i9 (S.A. IPW ) Sot10, IS) DE'SiII4R 1 40011 -c"O11.04823i tll, Lt. C-oodt. Oll1~ S.A (lt,) Buildoin Ctakiingn. (A) EicGEL 22 Enoll1.hol M-tiI. & Lld Cil. 15222 Chim-sel. Corpr-tlo, 161 DERSY 6 Co. IS)CITIBANK ifndua~rkil Ltd. LU.K.) 212 C11tcl.4 N. A, 399 Aftieal Po.4 Alanee Now (South 4lj, Ltd. Ydrk N"V 10022 Chamola Cold. IS) ENGEL 299 Cr4 40 NOW so E:.I 111.1l.0-11-£ .A RD You N.Y 1017 IS) COASTAL so Ph -11*Broth.,. 01. and Stor Chimical. Coroorto,, IS) DEIRBY 50 ohl,lwp slrorear 299 Car. An N-w 011,,0, .r eng..l 401,) Ltd Cork. 299 C.1r, AY Minor... holdIarl & IS) ENVIRO New Vork NYV C-lo,,l.. CrP. 632 EortcCredih 15.1,1 A r-oo TECII l(t, 3000 Sa d MIIIRlod, 10017 Phil, LW. 79 CoilkA-a N M-011 Cl1ikC.II Yolk NV '0017 94025, of Nkof**0 Lo No. Of *411*6&00Ad". of Aimthli,Of 1.ociP No, of N., & Add-.. 7 ft-00of Lomt 'a. of f40tn & Addle o I F-, Enoov. AreelOO1 Pint, P,-t Enokiril, A.0.n ft.,yl F- Ehntr Arnbleto A.-I

IS) 100Val 300 T*0 10000 Conver0t'. (S) GENERAL O ,,0M.or~o~t 1SO9 -0 ^*,. %,n-C so Is 1, SoI.l SVo. .... 111rd 767 Fifth1 Alm.. 0hl, 44720 S.A. IPtp Larndon 5*1 AN1S, Cormition Nev, Y Wk. N.Y. 10022 SouIth 4*000, LIA. IS) OWING J.A. E.. , MeODnoW 'PWy) IS) HYDOO 0.000 M4.0,1 Co-p Inc Neer York. N Y. IS) GENERAL 6600 A*IO0,Sout L-mitod. Ir L-eIs. Mo. MeDonidica GoW. mote"1 SOoth -r.,on, Motor. 6InS. WOO, (PtY)LOG. 00.00d 61001.

Cotpor-o,or. 200 (SI POACSouth F0MC IS) 1YSTEA 150 Y-101 Colvll., E. mehoolp* Ott Ch..".. Ill,00,. S060, IPt ) L. 0 010t 4*4,00 (Pt') IM Th. Oil*466. 211 AinOI00d *426 3M Or 4. Tim a S.A. G-V.. Too LkO-1.0 AL *1 U. 646oo C.o 1*0.04fl00t comp~nv 0000il Coroonio'on. 200 228 FMC (South0Aftl.0 M.ofl*011 E. 6000l. * D-. MIS)SM sou"* Coro. 0..... 0,00,00 Ch. 00 0hn. 60651 Aft-0 (P11I 821 Un.=l Nho* P,-.. TrS)OMCl5,1* Ner, York. NVY 10017 aom0 Pt,) Derr .0 MSItFARREL 40 -- _rnOCohmm.y 0*0,0,,n. G-pn. 0* Nortr Am... Ic.1602WopOre Ax.., P.O. D0. 7728. $-Inotor 6r...Pe. 16512 3 PF.I Lenwe1. 101 On.o h~l St.. Nor0, York. N.Y. 10004 IS) ITT 50 *ln.t,.Onolar0.. J. Grbor & Cohmnpony C.-hux In_..*40e York. C-orOa,-ti, 320 Fork (Otyl Ltd. N.Y. 10001 4001*00. Now York, (SI PIANOL 40 Peol01.m09111 cot, IF" I L.W. V..~. P.0. a.. 1986. N Y Detroit. MIchre90 44225 IS' GILBAACO 190 0100*7l& 606. JA) INDUSTRIAL, 150 Ahohen,P0401 Sooth A-r Menlo. CO.. P.O. Chenioe, Antiwar, P.- 19002 lit,) Ltd. 200 P.roC- pro0 n lot,) Ltd. Box 22067. G,-.. P,04-t Inhw1.re1nI 0,0,0,00 born NorthCoI.**4 S4 IPryl On 61o a. 020 27420 ColeVd. 0*,. "I IF (S) GILLETTE 381 'The 0,110.0.Croono IS) INGERSOLL B0oo gr~l-60 Con, South Alie P--,n~k T . A.04 Coon oerl. 200 Chw.0u, 00011South AgO" Ro. ' 000011*1 Alfl. C0001Vu01,O (A) FIA-Ali.. 000 MINA.0219 1.0kw.N.. 07675 4040, Turin. Melninery Inc.. 1.01, P.O. Sox 602. Milewnukm. Wi. IS) The 000D. 2"16 T*he Oooover Tw. (S) INMONS 260 InOIC.tC,,flP,Vl. YEAR Tpr. 6Rubber toonolnt. 5.uk Aftr. 1123 A*..., .1 . A-i-.,k. Neeo York, GLASS Co. (S.A.) Sro,, Akron. N.Y. 10036 South Africk Pt,") LW 0O,044316 (Pty), Ltd. IS) W.A. GORACE W.A. Oros & Co.tpO*, Greco Punis.11I14 40.. (aI FIRESTONE 2370 P10001 TIVo & 6460. 10,1 Ltd. Cotnooeny. 1200 roq York. NVY 10036 (A) *PJT&A Ltd. Akron. NATIONAL Is.m, of Sons.. P.O. IFre) ton P~oWky. COS .- ternet,lon- I-*.. 0hio 44317 60, 1816, al.101 NulhwYork.N.Y. PHONE (5011* Aoweo Moe. 02107 (S) PISCO48AC10 120 9 OrM SnVotno Ccwot., Record _*0 Moo. 0.0 lo. 20778. 0.1.. T. IS) GROLIER 40 Orol., I.ntOOtionli IPFol LW. Ine.. 576 Lemin8100 Ane.. N-W York. N.Y. 10022 (S) INTER6 1IS *000,*. Flenore IS) FO0 MI0 5000 Ford Mo-tCnOt NATIONAL A Proa..- inoolr Tn.rn m..h R & Few4. 521 Woel 6711* 010.0, S.A IPIt) IS) "AMMON D tlO**Ohd CoOp.. S, . Now, York, N.Y. 48 121 Chre060. III. I. .P. (South, 10010 fPlyl LWd

,S) INJTSR. 1066 Io.nne.OlI 1001101 4A) "FINE4. NATIONAL Cornp,p1y.401 North Cornpirny. Snonoon. Mich0190 An.. tt.1I IS) 0060040 28 W.11. E. choslgo. Ill. 60611I O... Coroorllot. F -lre MA.-) Ltd. (Pry) IA) ELENA SA.n.r 300 Pink1 Ane.. PC.OO.. R1ood. Abt, N-W York,.NY. 10022 IS) 06RAM IS) JON" Dea. 400 0o.00and* Conainv. ,~t. IS.). 10*,) Ltd. Jon 00.00. Ra.. IPty) Lta Mon.Illino, 61265

1*00U.K.) (S) JOHNS .lo*n.-Ollo Corp.. .ELLER 'r*OrhO. COOP, Greom-od Plan., M.OttC-oronto IS) GABRIEL 105 West Ad~It Av.. DenoorColoro S.. (Pty) 200 Elmoifl OOp C. Chicago. 1I1160690 80217 L-Il"0 0*00 cheer III 60601 IS) HEWVLETT 120 N0onkin Pi.6000 ale Joroa , joron'ton ln.tlonl. 3200 501 Go.rge St., So.lt Ato IPty) LW Syrn Corp.,1 100 IS) GAMLEN IPIYI Ltd. P.:l. Alto. CII N40 JV. 0002 Mouth*0 Ml,dlIwf 500 94309 ^*1,0; tftY) R1100*0.400N.Y. IS) S C. JOHNSON 100 S.C. Jo*,,on & So, Ic. LIM 14604 INYSE SYS) IA) HOCH & Son Of South 1525--10. SI. R-.00. IS) GARNER*46 313 G.on., On10t METALS Wneo-,n 63403 P 1r0A.,NOW York. 0.11, Comt Alt .. lII) Lld pony A~r 47114Dl.. lPt) L.W .... _.75247 IS, JOY5M.-e 650 J~r Mony0 Ce. IS) HONEYWELL P-Rto,rgtP.l 15222 loot) LW. M-mem.pol,0. M,n.-. is) GATES 61 The Gotes ReSO. IPt11)Lld 0.1.I1 A*ro C niculni, 999 So,, 55442 (gO Ltd ColoVto 80217 IS) HONEYWELL 20 Mnv~ll*r0t~ Into no~tion Ploew. In..01. SY wom D. P001,001o M.h pol406 15.4.) Int. S..I'll)

______I I 1 Aletn of Loce N~o.o N.-n & Adoes of fierne. of Lo--l I-..' to.In-- Add,-. of A-.1 -o,.y -_o A AO&.. Of F-Em. in Aftielan Pill1 A-n, Fmploo Alanfie rc n F, Entoyers AfrI' 10.51P0,0fl

4A) 68*00*0.5 B7 (S; MASONITE 2630 M--ol COo0101y'n IS) NCR Cor. 1000 NCRkColocat. 1 ntOId, Plomo. 29 N-InPWt0 0101000ODoyt-on. 45479 9-41.0.,0, . 0"n'a Cotogo. II, 60606 Lid. 60015

IS) KELLOGG0 Keogg Contemny Be~11 Clee0&."'Ch1 161 MAX Factor Mo ",,'0 H.00

(PIoI L Id mood. Calfi IS) KELLY 125 K0Il-5-110001d Tx* (SI NASHUA IO Nat..- IoTlo Como*,,. P.0o S . So,nlo 0. IS) MoOOAO 39 MtG-.p14-10 (South Aftsod) Ali~ok, Tyto Cc. 300 Ca.,il..d, IPtywLP NOOo N-. Herne .A (Ptlo

IS) Tn. K EN T.. Kline.1 C-lOO (Ply) Ltd. N V 10020 IS) NATIONAL * NOpa)Cltooaw 0*0.0 Cmaa,., Corot ral~n. 2727 (SAl) lyr) Cheno,eitn 6(00. C-mao pI. 211 ConralS'.. (S) McKINNON 400 Col.fn..~ M.K,00n Soot *11,0 8-.t.n Ment Corporti'moo P.O. Looo. (1-0 70 062 CAon Scapw (Ply) Ltd. Bo. 72, ToyameaO. N-. York 1.10 IA) NATIONAL 122 N01,000I5.0 Standilrd Com'peny.0,1.MO IS) MEASIOASK 30 M00.0 CoIOO.1,0 (5) l4J_.I In100,f. IS.^) fiv) K ENTUCKY 350 S.A. IPl On. Ab-,,' Way Fixed Chscoon I1 POei..-oi Per.. Capaneo. CeliI (S.A.) (Ply) F._mnooon. Conn. IS) NBWMONT . 0.001Moo L.0 SOoty ^I.,. CdorIi-. NO. IS) METRO L.mhad York. N. IS) K ID8E p K1,0001, Peabo"y & Co., Pelloo0, 0010100. 10202 W~ (0) A-. NIELSEN 130 A.C. Noloan Ine, (Ply) LOP. .. 00.., So..r* NO. ISA) 10) Yo0k. NY. 10005 C.,.. Cl.y. CeliI IIPly) Ltd P(000. NO~hlO-k. 90230 IS) KODAK 078 Esamop K-0.. COpnY I(10000,60002 343 Stel Sre.. IS) Gao. . (Soul, An-1) 0 (PIo) L0.0 Rooo.in., . N.V. 14650 oo Maa'0 Mo (S) NOMOOBMOG .. 00.00 Box 383. 452. M.lsaO-a WI M.no.ano M.louka W IPill LIP. 53201 C~mpably 3201 (A) LANTOR Well Pool peepeonII .00. .. 0,0, (S-on AI,,o.( of S.A. 11110 .- 0 Inter (SI MIDDLE IPlyl LIPd (Ply) 0.00 nalitOna.. U.K. We.1 Sirooc Core .69 W. Wlrenm, IS) NORTON .. NorO C-opaoy. Compony -0061..Ch~ceago 11. Conny "p.l.M.x IA) LARAL P,... 20 2911030 (Ppy)Ltd IPl") 0.0 P'... Dan' let, I 0.0 (S) MIOCOOPUL Flour 25 UnstoP St-n. IS) OAK 000, n000.0.. S10,V ,o 0-00.ny (S. A. , (Plp) Colocranso 022 Ltd. (Scaly *f1. N.Y. 10036 (S) LAV -NO Ily) Ltd SoalO Air,_0 IS) MILES 120 M-bL~~I~0 TM (Plyl LlO. l..1127 yrl Cn-o,00 Corp.. & 3 WINy)Ltd. SIlas, 1.1i. IS) 006(80P 3136 Nawloco Comep, Penp Center P. .. 465 14 100.009 Cilp", solln. 300 Park Ap-. Pfl,00p105 Pit. C-dtany N-t Ylk. N.Y.

(SI MINE Saloly 564 MO Bfo.1AoI IA) 0OSHK0SH 326 001000*1hTIck Cola. (5) LEOBOLE 115 Cyl-~llidOOO,0I 40PlC.ol""' At1,0 op orOn. 00O Bdo Bette, Al.. Wey0-. 4~00 ... P."" ' (Poy) LIP296.066. *0~ai. (PIy) Ltd8 10235 94901

(S) LILLY 129 El.Lilly a00 Comeany, (5) OTIS 1500 010081.0.10 C"" Leo --loO. rr.01 p-y 750 Thnd *A.. (S.A.) MPry) (S) MOBIL O.1 3300 MOb.l Ol Cilmorto-n. C mpaoy N_ t o. N.Y. Lifnao 150SBoa42nd St., 0.001010 10017 ISI LININGS ISO Nex, Yolk. N. (PIl Lt. IS) 07TE6A 120 OtllolM 000010900 (0.1e)' 13.5 A00 10017 0" 9 MI L L 0.010 -to SO. FPly)0.0 Af1tw. %O_ YOl. N.Y. 10019 5.01000900 Mar. Daoo 0.11 (Si MOPHAWK S.A (Ply) 1*6 . E.Oe00 ((0 80 MOS En00,0POt .. "e, ,~ 1599* *I IS) LION 1 0. - C-Po.-llon. AdI~00 Boso. Corp.. 120; Long A.V.. Re.. (S.A. (Pt') Pa N.O1 J (Plyr) LOP. Surnfl0o,. Co-n Lto 0705. 06904 IS) MONSANTO Mamtmin- CO.y., (SI LOCK 40,01 700 I.1,. e C.ro00lmao. IA) BO001o_ L -Oberpm PALA Notampol1 Moo,.6 Cop.. 260 C-or, Hill AO., S00** a-n . $1 '0"t MO 3000.er0Axe. NO. PoPS,Opo". N.J. 63160 (Ply) 0.0 07064

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IS) SMTH Swllh. K Il- I~OPO~ (5) PH.ILLIPS is) RMPIM 294 Ro.It,~.lO Klinte~ South Atr-o 747 CIl, A-o. P,.h Solng OOOen S%_. Oktaro. 74004 (OtW Ltd N- Y.,k, N V (PTY) Ltd, PhltmmP-a, P.. (PtyI LW. 10022 is) SOUTH 342 CyohtId IttOOa~~ Aft-p Stroto Ane.. wolt. RubdP' IA) PIOS Gppoi Tr- & IS) A... ROBINS 1,0 A.t. Rob.. Co. In. Cysnmno C-Pa~PnV. Asron Co. MSA.)Roop Varnao (Ply) Ltd. 1Ply) Ltd (S) SOUTH 192 C6-~n1 Ron'li "PLACID 5 P'.oid 0." Coal-tn. Afrt-n 1600 Fro- N-dla~ N. olk N-V 715202 IS-u Aftr,-) 7.. (sI The. ROBBS T-.. 50.0 Co. Compt-, 12345 INS Coml 6505S. 0'.. St.. (Pol Ltd. pony, (Alr,,. S-4.tb W-nnvn (Ply) 98109 (S) PLAYTE X 250 IPP.t-,at-I PIsy Lto O S In An. (S) SOUTHM T.-po -tP.r1l.1-a N Y. A*-O~ nO. YePn... NP. Yolk. 009 IS) ... ROB 700 M.M. Rodorotoo P.O. PFITSON Co.nyv I7o G-t,. Pbr. P., IS) PLOUGH :All.. ) Cen~ts, (P1y) Ltd AVuht...32 (PWy Ltd. 15222

(S) ROBERT 729 CPC Int-no.t.rI In,. SONS lnttnItonI C... DeI Mont. C-rPlOW IS) POTTER f20 D. W-1I, ntlt.Pnel (Ply) Ltd, Pttonood Cl..s Na SERVaING ISS One MoP ... Son Cn CO.Ca 6627, 5100B., .. V 07632 Co, (Py) Soono L.A (Ply) Gr.PnlalaP. S.C. 2"606 LIO. 1228

IS) ROCKWELL 25 Ross- I I-ntmnstW is) SPERRY 16 Soonro Rood Coto (5) I-RECISION 70 ftrisll.. VI.- Cord Corp., 600 We-0 Stv.. POal.1260An 01 VtlIP Sooth Oln-. P.O a..~ Soolo-r 01 Sout *I Pae.P 306, VOIP-rO N As-ao LWd. York. NYV 10019 Led. Y.lk 10702

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IS) ROYAL 300 Ston1ord ,ntp PRICE O.k flU 625 Modltwn Ave.. howdo'N-w YOrk. N.Y. , Co. A, C. 12.51,An 01 (Pty) Lvl (S) SOLIARLO

Volk, N.Y 100201 ISI ROYTON MIstt P AI.l'h...... 114d0 tdo 627 PNtboc Inc *"rd E.1-tr, C:=ar, .oIO

IPtyl Ltd (Ply) Ltd. E. I So. oo A Soot 0796 S) A.S RUPFEL. Sloth K110 & Cl-n, Ilk P.O. a.-4000, (Ply) Ltd .ltolo 1500 P,,fon New Jet , 065.40 (5) OUADRIANT Trap Intopubha Gr.o S."", Co.,, St. *hP.Ias.S P.. 01CP.ono o. LPrydL. 19101 (Soot Altic) iTen. A Life OolaOino. Illat.let.Sol (Ply) Ltd. 1271 An_ 0 tep on ATOOIO Alneraoet. NP. Yofk. (SI SAC POLA 115 :Poific O Itsop. Inc. Corpl N.d ok N V 10020 Seesl 0 So. 1006 N.Y. (e11) Lto Wopolon, C." (5A-M Pott,, Atenio.O.n.MmrlI (S) STANLEY 22 T0 . -Iq W.1. It.... 122 Ew 42 a NP. 9rae'n, Con, (Pty ) Ltd. 5,L. Now Ylk N.Y. Aftk I (Ply) Ltd. ISI SCMP0RAG 160 Sch.n".o-P9u1 IPty Ltd. Co11.DoI K-0 (SI STE IN, Melt 2 Cel00P.P C.---o'O IS) RtAMSEY %1f.y BInoonet S A Ply1) 1211 Aol Of the 1o.nsetig Cnpa.n 1653W.., A^7--n N_ w00,0 Alnaos (Pty) Cpuny- AsC',0. 1 '0 1003c. S' P-uI, Mnt. IS) SCMOLL so t"l011 nk . 1t 01t 55113 IS.A) SoyIP Sn . IyLIP Cft.kllo. 11160410

______Is Ailine of NO o N,,m.IS A00rs of Nim. of NO of NO,,,. & Addilrc Of Nirni, of No. of liorA & Add,=o of F-ff Efirioyoi Arnori.r Ani:im 1 .€t o~ Ar.n Pill~ r Fr, FnVA,," A-1,Con Airitf

IS) STIERLING boo i.1.0 Product .t (SI TWIN DO Twin D Innorod, IS) WI LLARD Airlt. tilly) 260 :SG li 09 '"0' M.9in(SA) it.. e0 P.,., A-., ISoith Aftro) livid 1328 Riclnu 80. 8108 Pc IPtry Ltd Nw YOrk. N.Y. Li-Low 10016 iPrl) Ltd. St.. Recn. W"i. 53,403

isi srOWE St wwodw d Co. iS) WYETi 234 wlkith tttrttl WooowrlO Nonot. Mol iS)UCAR L.-Pu. P+O.slo. IITR IS.A. Citrt, 133 Unionio'Cwia Cor., 270 Port A,. NOW tow) Ltd. 116. Ptiftil i. lw) Ltd. COPe ny Vork. N.Y. 10017 Pc. 1i101t/tA-. (S.A.I (o") Nevtii Pr.CuO Lid. (S)SUP* R ,inor- n T741nm Titod ,i. Now Y k. SONiC ottor.. Raid. & warp320 IS) UCAA 3" Unro. Cur~rt Corp.. N.Y. I017 T.V. C.wt Park A-.. Nw York. M.ItO 270 Poi A-i.. Nw d-no I(tr N.Y. Clor"Oitt.o York. N .y 10017 Ltd. IA) Atur 350 A 'n-tt, : YOUNG & Arttur YutNq & IS) UNPRAKO St.alnerd Preed Stat Comoiny Cornl.',. 277 Pril I "') LTO A.. NOWYork. (S) TAMPA X Tont". 1.... S N.Y. 10017 S.A. (Pty) D"*coe Or.. L..t Loiied Suess N Y. IA) Artih,, 310 Arttr Youna & YOUNG & Conkoen. 485 Leku is) TAiIATEX 10 Tnen Cit,. i n Canto n, -tIon A-. New S0uth Aft Coroori on, P.O. IS) UNION 82 UnO CrbCiW. Co,.. York. N.Y. 10017 So. 388, Lotditurtt. C.rbtOu 270 Pt. At-. Now N.J. 07071 South Afro York. N.Y 10017 NOiSn Corneny: (ott) Ltd. Sytoc COrdial O-. I 10OMid'o,.r Too, Ronhostn. N.w York 14404 FIRMS NOT SEPARATELY

IS) UNIROYAL Unilrl inh., 1230 IS)TAY LOP IN SOUTH AFRICA I.nrt-vritir OIt) LiO INCORPORATED Rocktioir Cnote. St R Co. iS A.) IYttn'N ri, iPt,1 Ltd. N- -. N. V 10020 BUT HAVING DIRECT FACTORY OR COMPANY REPRESENTATIVE

ISIUNITED 22 Uni ti Art-t C . IS: TECNI 30 N.1,O0- St-.h eno Artttt CAL Cut. Cdl Ctoor.i-O 729 7th A. t Nrk BOEING Company SA.) Yok. N.Y. AO,- & P . o 4800 Corp. IPty) Ltd. Seattle. Washington PrOuCt, jarile 08876 (S)UPJO.N **- Thi, ULPit Cdnitthv. li LItd. (ty) Ltd. Kitoleoo. Md. CUMMINS Diesel IS) TSC.NNl TItr, Oon Cn.orN. t International Limited CON ~T.,,v-. N.Y Airibirl~r IPIV) Ltd. Co. IS) VALVO Oil Cornny. ESSEX Minerals 1120 V.ol~ieI O.lllDMon, IS) TO 6XPOR T1tonault nc 200 LINE Oil Subsidiary of AT ION LW. Park A - Yok P.O. a.. 391. Aioal. 10017 U.S. Steel Corp.. Pittsburgh, S.A. lw) Ltd. Kentt ky 41101 Pa. (S)VALENTE T"4 Vaiwon M ,fr Leh0o~0t~oti Cor. (SI TIOER-Mi.c Molc low01 atiOo. 221S0OGr-. INTERNATIONAL Harvester Pret.in Inc., ElkhoIol-lt, Pmw, Ltd. t11d Rd., S.- 300. Export Company, Illinois Ii00ttrt OP. Pork. Mie. Z837 UNITED States Steel IS)VAN ODn IC Vet, Danec A, itt IS) TIMKEN Th. T.nkon Cornin. A .- er 2oortd801 a-t International. Siutit Afr C-.ton On.. 78th St.. MttOOik. Pitutburgh. Pa. IPIy)Ltd. Minn. 58420

Technologes (A) TITAN Tt-, Ittuttl T CO. UNITED PottOt, .77 ttrod iS)WARNSR War.. are. t0. International Inc. AN.. ow York. 4000 Wtr Sl. 52) IA*IMJ (1l!I t. N.Y. 10017 suiontk CI. Hartford. Conn. 0-1, 1 Ltd. "WI)Ltd. M. R.S. Manufacturing Co. iSI TOKNE 40 Tok he.n'. Corploretlo . IM I WESTERN Wolton AI- in'. South Afr 1602 W.O An Fiora, Mississipp Ahis Intnc. COO irion Dro. IV) Ld. FOrt Mar.. I1.0 4480t iS.., O0to) L- Anilik. Cl. 90009

ISITRANS 57 Tre Tritt. COrni. So, Attica L& Crot. W,, IS) WETiNG W..tlh- El.to il w) Ltd. 64601 -OUSE Corp.. Wittint'nou. elotoic S.A, Culdtint. GOOotey Cot... Pttttorsh. P.. 15222 "American Firms in South Africa" is IS) G.J. WEVELL 36 MAT ColonIai Inc.. available Awriuan L.-. from The Africa Fund for .30¢ ea., i) TRANS 7Tr-. Pty) Ltd. World A.lsnt Grollnuit. Conn. World over ten .200 ea., over twenty .15¢ ea. Inc.. 605 3rd An. 06830 too York, N.Y. Inc. tSin"Wo O; €;i Reprinted from a list compiled by the IA) WiINNEY Whn Murroy *Itt American Consulate General. Johan (A) TSUMES Sa,, Ne~ntttn t Mtttlhg M.". fir ett Et. 1300 Unon Com. -. r dg nesburg, South Africa- May 1976. ChrDOrtOn, 121t 0100r 300 Prk An 925 Sucit A.ottu. Ciaotrd. Ohlo 44115 Now YOrk. NY Note: This 10022 is not a complete list, but ap pears to include the majority of (S) Ti" TUlpER. 200 Oar,InuWIe inc. (SI WPOITENALL *. Atirtn oe Prod. U.S. investors. According to the WARE Co P.O. CO. 3157. Product uht Corp.. 8S 3r U.S. Department of Commerce lony Tartvrn.) An.e, Lot S.A. qP,) A-.. Now York. N.Y, Ab.II. 90051 il,,~l publication Survey of Current Busi Cdrn. ,ttv) ness (August 1976) total U.S. in is) WILBUR So W li ur- Ii Connt nay. (Si) TWENTIETH * • 20th Centurv.Fot InlL 32$ C.ll-torn St.. vestment In South Africa at the Clotury FOK for, Corp . 4.04 Convoonv S.. POult.ac Cidf. (PTY) Ltd. 0Pi# S.A. Waat eth S.,Nw r4104 end of 1975 was $1,578 million IPt', 0 Ltd. York. N.Y. (over $1.5 billion).

a I HERE ARE THE BIG LENDERS Here is a state by state listing of banks making loans to South Africa. OREGON ALABAMA ILLINOIS NEBRASKA First National Bank City National Bank Central National Bank First National Bank Bank of California Merchants National Bank Continental Bank Northwestern Bank United States National Bank ARIZONA First National Bank United States National Bank PENNSYLVANIA The Arizona Bank Harris Trust and Savings Center Bank Fidelity Bank First National Bank Northern Trust First Northwestern Trust First Pennsylvania Bank Northern Trust American National Bank NEVADA Girard Trust Bank Northwestern Trust INDIANA Bank of Nevada Philadelphia National Bank CALIFORNIA Indiana National Bank First National Bank Mellon Bank Security Pacific National Bank Merchants National Bank and NEW JERSEY Pittsburgh Bank United California Trust New Jersey Bank Provident National Bank Bank of America KENTUCKY NEW MEXICO RHODE ISLAND Crocker National Bank First National Bank Bank of New Mexico Industrial National Bank Wells Fargo Kentucky Trust First State Bank SOUTH DAKOTA COLORADO LOUISIANA New Mexico Bank and Trust First National Bank American National Bank First National Bank of Roswell State Bank Northwestern Bank Continental National Bank Commerce Santa Fe National Bank First Northwestern Trust First National Bank MARYLAND NEW YORK TENNESSEE CONNECTICUT Equitable Trust Manufacturers Hanover Commerce Union Bank Connecticut Bank and Trust Columbia Bank and Trust Citibank Citizens Bank Union Trust Farmers and Merchants Bank Chemical Bank TEXAS Hartford National Corp. Truckers and Savings Bank Bankers Trust First National Bank DISTRICT OF COLUMBIA University National Bank Bank of New York Republic National Bank Riggs Bank Maryland National Bank Chase Manhattan Houston National Bank FLORIDA MASSACHUSETTS Morgan Guaranty UTAH Southeast First National Bank First National Bank Irving Trust Walker Bank and Trust Security Trust MICHIGAN NORTH CAROLINA WASHINGTON STATE GEORGIA City National Bank North Carolina Bank Pacific National Bank Citizens and Southern Bank Bank of Lansing Wachovia Bank and Trust Bank of California First National Bank First Citizens Bank NORTH CAROLINA Peoples Bank Trust Company Bank First National Bank First Northwestern Trust Rainer Bank IDAHO National Bank of Rochester OHIO Seattle First National Bank Bank of Idaho Union National Bank and Central National Bank VIRGINIA IOWA Trust Cleveland Trust United Virginia Bank Merchants National Bank MINNESOTA National City Bank WISCONSIN Union Bank and Trust First National Bank Huntington National Bank First Wisconsin Bank Council Bluffs Bank Northwestern Bank Winters National Bank WYOMING First National Bank MISSOURI Sutton State Bank First National Bank Key City Bank and Trust Mercantile Trust Euclid National Bank First Trust and Savings Bank MONTANA Farmers and Savings Bank Bank of Glacier County Conrad National Bank Montana Bank Northwestern Union Trust U The brokerage houses are also among the big lenders. These include: MERRILL LYNCH KIDDER PEABODY DEAN WITTER LAZARD FRERES DILLION READ & CO LEHMAN BROS FIRST BOSTON INC LOEB RHOADES GOLDMAN SACHS MORGAN STANLEY BLYTH EASTMAN DILLION PAINE WEBBER INC J.HENRY SCHRODER SALOMON BROTHERS BROWN BROTHERS HARRIMAN & CO SMITH BARNEY HARRIS & CO

Campaign to Oppose Bank Loans to South Africa APPENDIX L: SAMPLE PRESS RELEASE

National Union of Hospital and Health Care Employees II RWDSU/AFL/CIO 310 West 43 Street New York, N.Y. 10036 JU 2-1890 For further information contact... Nes

ruor Aeledsu ulluay 1 - oU"11ald Z7,

NATIONAL HOSPITAL UNION PENSION FUND TRUSTEES BAN SOUTH AFRICA INVESTMENTS

The pension fund of the National Union of Hospital and Health Care Employ ees, AFL-CIO, has become the first national labor-management pension fund to ban investments that aid South Africa.

The National Pension Fund for Hospital and Health Care Employees covers 70,000 workers. The majority of them are members of District 1199 in voluntary hospitals, nursing homes and retail drug stores in the New York metropolitan area.

The Fund has assets of $236,000,000.

In a resolution adopted at its January meeting, the labor and management trustees of the Fund declared that:

"no pension funds should be invested in any manner that wculd financially assist or aid or support the present government or economy of South Africa."

National Hospital Union Pres. Leon Davis, who is chairman of the National Pension Fund Board of trustees, commented on the South Africa policy:

"Loans and investments from the United States that prop up South Africa's repressive regime are an insult to all Americans who believe in justice and fair play."

Montefiore Hospital and Medical Center Deputy Director for Human Resources Allen C. Abramson, first vice-chairman of the National Pension Fund, added:

"The Fund management trustees feel it would be totally unacceptable for pension monies contributed by manage ment on behalf of their employees to be used for invest ments that help perpetuate racism in South Africa or anywhere else." 41 The American Committee on Africa, a leader in rallying support for the South African movement, reports the following additional organizations have acted or begun to prevent investment in South Africa of funds they control: National Council of Churches, New York Conference of United Methodist Church, National Conference of Christians and Jews, United Auto Workers, United Steel Workers District 31, California Nurses Association, International Association of Machinists, United Electrical Workers, In ternational Longshoremen's and Warehousemen's Union Locals 6 and 10, the Joint Board of the Fur, Leather and Machine Workers Union and the Furriers Joint Council.

At the same January meeting, the labor-management trustees also adopted a policy that

"...a reasonable ratio of the assets of our Pension Fund should be invested to support socially useful and desir able programs..."

Afonday. ]an. 30,1978 THE W SISHINGTON POST National Hospital Union Bars S. African Funding NEW YORK (AP)-Trustees of the $236 million nelsion fund of the National Union of Hospital and Thoalth Care Employes have barred any use of the money for investments that aid South Africa. Some other unions and some religious groups have put similar restrictions on their funds, but a im,n spokesman said yesterday this is the first tirme a labor-management pension fund has taken such an action. The National Pension Fund for Hospital and Health Care Employes is the fourth largest labor manaaement pension fund in the nation. It covers 70.000 employes, most of them members of District 1199 who work in voluntary hospitals, nursing homes and retail drug stores in the New York met ropnlitan area. The union spokesman said it was not known what invstments, if any, the fund has had in South Af rica but the new policy means corporate trustees who invest the fund is money now are under in struction to get rid of present, and refrain from fu. ture. investment in any company doing business in South Africa. APPENDIX M: RESOURCES

A. Bank Campaign International Defense and Aid Fund for Southern Africa Campaign to Oppose Bank Loans to South Africa P.O. Box 17 (COBLSA), 198 Broadway, New York, NY 10038 Cambridge, MA 02138 (617) 495-4940 Affiliates (partial list): IDAF is an international organization providing legal and Boston Coalition for the Liberation of Southern Africa, P.O. material aid to victims of apartheid. In addition, it produces Box 8791, Boston MA 02114 excellent publications dealing with southern Africa, a number of good pictorial exhibitions and a film and slide Chicago Coalition on Southern Africa, 22 East Van Buren show. Write for a publications list. St., Chicago, IL 60605 Liberation District of Columbia Support Movement Bank Campaign, 110 Maryland P.O. Box 2077 Avenue, N.E., Washington, D.C. 20002 Oakland, CA 94604 Minnesota Clergy and Laity Concerned, 122 W. Franklin Distributes publications and literature on African Libera Avenue, Minneapolis, MN 55404 tion struggles. New York Committee to Oppose Bank Loans to South TransAfrica Africa, 313 W. 78th St. #4R, New York, NY 10024 1325 18th Street, N.W. People for Southern African Freedom, 1414 Kincaid St., Suite 202 Eugene, OR 97401 Washington, DC 20036 (202) 223-9666 Rochester Coalition for Justice in Southern Africa, 713 A black lobbying organization that monitors current US Montroe Avenue, Rochester, NY 14607 policy towards Africa and provides information on recent Seattle Committee to Oppose Bank Loans to South Africa, policy and legislative developments related to Africa and 814 NE 40th St., Seattle, WA 98105 the Caribbean. TransAfrica distributes regular mailings and also a quarterly bulletin. Write for details. Southern Africa Support Committee, P.O. Box 3453, Pasadena, CA 91103 Washington Office on Africa 110 Maryland Ave., N.E. $top Banking on Apartheid, 2160 Lake Street, San Fran Washington, DC 20002 cisco, CA 94122 (202) 546-7961 United Peoples Campaign Against Apartheid and Racism, Provides information on Africa with special reference to c/o Third World Coalition, 1501 Cherry St., Philadelphia, PA the US government policy towards Africa. WOA also 19102 publishes a quarterly newsletter entitled "Washington Notes on Africa." Write them for details. B. General Information and Support for African Freedom C. Religious Organizations Africa Resource Center Coalition for Responsible Investment 464 19th Street 20 Washington Square North Oakland, CA 94612 New York, NY 10011 (415) 763-8011 Episcopal Churchmen for South Africa The Center maintains extensive information files and 853 Broadway, #1005 periodicals on Africa and distributes publications. Source of New York, NY 10003 speakers. (212) 477-0066 American Committee on Africa/Africa Fund Interfaith Center on Corporate Responsibility 198 Broadway 475 Riverside Drive, #566 New York, NY 10038 New York, NY 10027 (212) 962-1210 The Africa Fund distributes literature on southern Africa, International Freedom Mobilization serves as a source of speakers, films, and information on 777 U.N. Plaza African liberation struggles. Currently in preparation are New York, NY 10017 five new pamphlets on topics such as the Wiehahn Commis (212) 697-2115 sion, the Sullivan principles, and Fluor Corporation. Write Lutheran Coalition on Southern Africa for a publications list. 202 South State Street, #600 Campaign to Oppose Bank Loans to South Africa (COBLSA) Chicago, IL 60604 Dumisani Kumalo (312) 663-0703 198 Broadway Northern California Interfaith Committee for Corporate New York, NY 10038 Responsibility (212) 962-1210 3410 19th Street This is the national body responsible for coordinating the ac San Francisco, CA 94110 tivities of the local bank loan committees (see related article (415) 863-8060 this issue). COBLSA publishes a quarterly newsletter which is available on request. D. Academic Organizations Centre Against Apartheid African Studies Center United Nations Michigan State University New York, NY 10017 East Lansing, MI 48824 The center publishes a series of free papers, entitled Have a well established outreach program to help teachers "Notes and Documents," which deal with foreign invest teach about Africa. Can put you in touch with similar pro ment in South Africa, trade-union actions and other grams in your area. aspects of the struggle against apartheid. Write to be put on the mailing list for "Notes and Documents." Association of Concerned African Scholars development, agriculture and transportation, and provide P.O. Box 791 consulting services to organizations seeking to adapt this East Lansing, MI 48823 research to their educational programs and activist cam To formulate and articulate alternatives to U.S. Africa paigns. policies. Council on Economic Priorities 84 Fifth Avenue E. Trade Union Organizations New York, NY 10011, 691-8550 Coalition of Black Trade Unionists Provides institutional and individual subscribers with 2550 'M' Street, NW #300 documented analyses comparing the social performance of Washington, D.C. 20037 publicly held U.S. corporations. (202) 293-3812 Inform Trade Union South Africa Committee 25 Broad Street c/o ILWU Local 6 New York, NY 10004 255 9th Street (212) 425-3550 San Francisco, CA 94103 Concentrates research in areas where private sector activi (415) 621-7326 ty is a cause of social concern. It looks at corporate perfor mance and the effectiveness of the relevant regulatory structure. F. Investor Resource Organizations Interfaith Center on Corporate Responsibility Alternative Investment Task Force 475 Riverside Drive, Room 566 1932 Fourth Ave. New York, NY 10027 Sacramento, CA 95818 (212 870-2293 A California coalition of civic, community, and labor NC/ICCR organizations which have pioneered the development of 3410 19th St. alternative investment strategies. San Francisco, CA 94110 Center for Community Change (415) 863-8060 1000 Wisconsin Ave., N.W. An ecumenical agency actively pursuing issues of social Washington, DC 20007 and economic justice through shareholder activity. The Center has information about banking issues in Membership provides information on how to vote Common general. It has also done extensive work in the area of the Stock for changes in corporate policy and on socially Community Reinvestment Act (national), neighborhood responsible investment. reinvestment and mortgage banking. Investor Responsibility Research Center The Center for New Corporate Priorities 1552 K Street, N.W. 1516 Westwood Boulevard, Suite 202 Washington, DC 20005 Los Angeles, CA 90024 (202) 833-3727 (213) 475-5856 Nonprofit corporation which conducts research publishes A public interest research organization which specializes in impartial reports on contemporary public policy and social the examination of banking issues from the consumer issues with respect to their impact on major corporations viewpoint. and institutional investors. Coalition for Responsible Investment Strategic Investment Advisors 20 Washington Square North 1320 Campus Drive New York, NY 10011 Berkeley, CA 94709 Will help you in educating your group to the need for (415W548-1320 economic withdrawal and alternative investment. Community Economics, Inc. 6529 Telegraph Ave. G. Official Liberation Movement Representives Oakland, CA 94609 Theo Ben Gurirab (914) 653-6555 SWAPO Observer Mission to the UN A non-profit corporation providing economic analysis, 801 Second Ave. financial feasibility studies, and other technical assistance New York, NY 10017 to community groups and local public agencies regarding (212) 986-7863 community based economic development and cooperative housing. J.M. Makatini African National Congress of South Africa Conference on Alternative State and Local Policy 801 Second Ave. Q 1901 Street, N.W. New York, NY 10017 Washington, DC 20009 (202) 234-9382 Tirivafi Kangai A national organization of progressive state and local ZANU (The Patriotic Front) public officials and community leaders. It serves as a clear 211 East 43rd Street No. 902 inghouse for those interested in redirecting public New York, NY 10017 employee pension funds in more socially useful directions. (212) 697-7910 Corporate Data Exchange L.S. Makhanda 198 Broadway, Room 706-7 Pan Africanist Congress of Azania New York, NY 10038 211 East 43rd Street, Suite 506 (212) 962-2980 New York, NY 10017 CDE staff members research and publish data on current (212) 986-7378 and alternative practices in the fields of banking, energy

H. Research DistributorslResource Africa Resource Center Note: There are a number of local and regional Trade Union Committees similar to the above in different areas of the country. Check for the one nearest 464 19th Street you. Oakland, CA 94612 African Studies Center J. Selected Bibliography Michigan State University East Lansing, MI 48824 If You Want to Know Me: Reflections of Life in Southern Africa, poetry compiled by Peggy Halsey, et al, Friendship American Committee on Africa/African Fund Press 1976, 48 pp.' 198 Broadway New York, Anti-Apartheid Organizing: On Campus2 and Beyond, South NY 10038 1979, 80 pp. (largest single source of literature and publications) Africa Catalyst Project South Africa and U.S. Multinational Corporations, Anne Centre Against Apartheid 2 United Nations and Nena Seidman, Lawrence Hill 1978, 251 pp. New York, NY 10017 South Africa: Foreign Investment and Apartheid, Lawrence 2 Ellen Mark-Distributor Litvak, et aL Institute for Policy Studies 1979, 100 pp. 6719 N. Lakewood Ave. U.S. Bank Loans to South Africa, Corporate Data Exchange Chicago, IL 60626 1978, 46 pp. "South Africa Fact Sheet", Joan Harrell and Karen Institute for Policy Studies-Africa Project 2 1901 Q Street, N.W. Rothmyer, Africa Fund 1979, 4 pp. Washington, DC 20009 "U.S. Dollars in South Africa: Context and Consequence", (202) 234-9382 Jennifer Davis, Africa Fund 1978, 6 pp.2 The Africa Project specializes in publication and research on Africa and US government "American Firms, Subsidiaries and Affiliates Operating in and corporate involvement in 2 Africa. Special publications coming this fall will include a the Republic of South Africa," Africa Fund 1977, 6 pp. follow-up study on the Sullivan principles and a new study "The Sullivan Principles: A Critical Look at the U.S. Cor on US intervention in Zaire. porate Code in South Africa," TerriAnn2 Lowenthal and Karen Rothmyer, Africa Fund 1979, 4 pp. International Defense and Aid Fund P.O. Box 17 "Our Town Out of South Africa", Stop Banking on Apar Cambridge, MA 02138 theid 1979 New World Resource Center "Alternative Investment Packet", Stop Banking on South 1476 West Irving Park Road Africa 1979 Chicago, IL 60613 Torment to Triumph in Southern Africa, Louise Stack and Southern Africa Media Center (films) Don Morton, Friendship Press 1976, 142 pp. California Newsreel "Divide and Rule: South Africa's Bantustans, Barbara 630 Natoma Street Rogers, International Defense and Aid Fund 1976, 86 pp.2 San Francisco, CA 94103 The North Will Rise Again: Pensions, Power and Politics in '80's, Randy Barber and Jeremy Rifkin, Beacon Press, 1976. I. Periodicals With a Southern Africa Focus Socially Responsible Investing: Criteria and Proxy Voting (Note: Many of the organizations listed above have their Guidelines, California State Senate Select Committee on In own newsletters. Write for details.) vestment Priorities, 19781 Africa News The California Connection: California Public Investments P.O. Box 3851 and Social Repsonsibility, John Harrington, 1977 ($26.50)' Durham, NC 27702 California State and Local Investments: A Guide for Africa Today Responsible Ownership, John Harrington, 1975.' c/o Graduate School of International Studies "Pension Funds as a Part of a Movement for the Public Con University of Denver trol of Capital," John Harrington, 1978' Denver, CO 80208 "Readings on Pension Journal of Southern Funds," 1978 selections, compiled by African Affairs John Harrington, 1978' Room 413 Art/Sociology Building Strategic Investment: An Alternative for Public Funds, University of Maryland Richard Parker and Tamsin Taylor, 1978 College Park, MD 20742 Public Investment Practices of the City and County of San Southern Africa Magazine Diego, Chris Walker, 1978. 17 West 17th Street The Politcal Economy of Race and Class in South Africa, New York, NY 10011 Bernard Magubane, Monthly Review Press 1979 UFAHAMU, African Activists Association "U.S. Corporate Interests in Africa," US Senate Committee African Studies Center on Foreign Relations, Subcommittee on African Affairs, University of California Report of the 95th Congress. Los Angeles, CA 90024 Facts and Reports 'Available only from the California Alternative Investment Task Force. Holland Committee on Southern Africa 'Available from The African Fund. Da Costastraat 88 Amsterdam, Holland California Newsreel 630 Natoma Street, San Francisco, California, 94103 (415)621-6196

(Associated with The American Committee on Africa) • 198 Broadway • N.Y., N.Y. • 10038 1 '4.