Corporation Will Report Status of S. Africa Policy

The Corporation will issue a report in the upcoming weeks outlining the efforts it has taken since last April in implementing the policy toward investments in companies operating in and lending to South Africa, Hugh Calkins '45, chairman of the Corporation Committee on Shareholder Responsibility, said yesterday.

"Our effort is going to be informative as to what's happened since we issued the (April 27) report," Calkins said yesterday, adding that the upcoming report will also include a discussion of progress made by the Advisory Committee on Shareholder Responsibility (ACSR), which is evaluating the banks and companies in the portfolio on a case-by-case basis.

Henry J. Ameral, assistant treasurer o. the College, said yesterday he believes the report will focus on the Corporation's position towards U.S. banks. "They are considering clarifying their position on banks and as to how the management will evaluate them," Ameral said.

Five Biggies

Ameral said the Corporation presently holds certificates of deposit (short term bonds) in five national banks: $17 million worth in Chemical Bank of N.Y.; $13.5 million in Citibank of N.Y.; $2 million in Continental Illinois; $11 million in Manufacturers Hannover; and $5 million in Wells Fargo Bank of San Francisco.

The Corporation purchased the certificates of deposit in Continental Illinois, Wells Fargo and Manufacturers Hannover earlier this year in an apparent contradiction of the policy outlined it its April 27 report.

The Corporation's report stated the University would not hold debt securities in those banks whose policy is not similar to the ACSR recommendations that "Harvard refrain from investing in banks which make, renew, or extend such loans to the South African government or state-owned companies, or refuse to disclose whether or not they are doing so."

Wells Fargo currently loans one-fourth of one per cent of its portfolio to "entities" in South Africa the bank states are "essentially...trade related and finance the nation's international trade and the purchase of equipment from American suppliers."

In a policy statement on South Africa, Wells Fargo says that although it does not condone the South African government's support of apartheid, "We believe...that the limited volume of loans we have with South African institutions is at a prudent level and serves to help stimulate the trade and economy of that country, which is essential for any long range improvement in the living conditions of all peoples there."

The Corporation, however, stated in its report last April that it agreed with the recommendation of the ACSR that "a general policy of making loans for projects which advance the welfare of the whole population is often too difficult to apply in practice..." The report goes on to recommend that the University refrain from holding debt securities in banks loaning to the South African government.

George F. Caulfeld, vice president for public relations at Wells Fargo, yesterday refused to elaborate on whether one of the "entities" the bank loans go to is the South African government.

Caulfeld also said the bank has not stated that it will refrain from making, extending or renewing loans to those "entities."

George W. Sigular, assistant treasurer of the College could not be reached for comment yesterday.

John N. Bruce, vice president in corporate communications at Continental Illinois, said yesterday his bank has not negotiated a loan to the South African government or state-owned corporations in several years.

However, at their annual meeting, Continental Illinois stockholders, in a management-supported move, voted down a proxy which "sought to prohibit the corporation from making or renewing any loans in South Africa until the government of that country undertook certain enumerated actions to end its apartheid policies."

The bank stated at its annual meeting that "economic isloation" would not in its view eliminate apartheid and concluded that "the promotion of trade and investments and the support of economic development within South Africa will prove to be a most important vehicle for correction of the problem of apartheid."

The bank statement goes on to say. "The corporation will continue to consider financing proposals which support international trade and economic development and will rebound to the benefit of all South Africans.