The Mail REPLY TO BENNETT

To the Editons of the CRIMSON:

As the issue of Harvard investments in South Africa was raised in your columns, we find it necessary to challenge the statements made by the College treasurer, George F. Bennett.

(1) All companies operating in South Africa are forced by law to actively practice racial discrimination.

(2) Extensive research on American companies has revealed that the labor practices of such companies do not differ from those of "native" ?ompanies and that black South Africans are grossly exploited.

(3) The Nationalist regime in South Africa interprets the growing American investment in South Africa as a vote of confidence in its ability to maintain "stability" In that country and openly scoffs at the rhetoric of the United States in condemning apartheid in the U.N. and other bodies.

(4) Foreign investments in South Africa do more than officer a vote of confidence in the policy of apartheid. In 1960 following the massacre of 69 black South Africans at Sharpeville there was a dramatic flight of capital from South Africa and South Africa's gold and foreignexchange holdings dropped to a critically low point. The Nationalist regime faced a political and economic crisis. United States capital came to the rescue of this racist government. In one year the U.S. contributed almost the entire amount of foreign exchange needed to reverse the economic decline; an improved trade balance with the U.S. furnished $50 million; $150 million of dollar loans were made to the government by U.S. banks and financial institutions. By June 1963 as a result of U.S. help economic stability was ensured and South Africa was launched into a new phase of prosperity.

(5) 21st March, 1970 is the tenth anniversary of Sharpe ville and will be commemorated throughout the world, In the ten years since Sharpeville, South Africa has experienced an unprecedented industrial boom, heavily backed by overseas capital. (U.S. direct investments now total ove??? billion dollars.) Contrary to Mr. Bennett's statement the situation has NOT been improved by this increased investment:

(a) real economic wages of black South Africans have not risen but decreased, and at present the ratio of white to black wages is approximately 16:1.

(b) black South African workers no longer have any rights in the labor ???? and have been rigorously restricted by new ????ation.

(c) South Atrica's fascist machinery has been extended not curtailed. All rights and freedoms have been undermined and opponents of apartheid have been subjected to the ??? inhuman treatment.

In 1970 the position of ???? South Afrioans is infinitely worse than it was a decade ago, while United States corporations continue to reap extensive profits from their investments there. (The present ret?? rate on investments is 27 per cent.)

We find it surprising that Mr. Bennett should continue to defend Harvard investments in South African related corporations as we understand that last Spring he was challenged by a black South African on precisely this subject and admitted at the time that he did not have access to all the facts. It is disturbing, to say the least, that Harvard should continue to benefit financially from any companies which so readily enjoy the fruits of racism and economic exploitation in South Africa.