ACSR Urges No Vote on Arab Boycott

The Advisory Committee on Shareholder Responsibility (ACSR) recommended this week that the Harvard Corporation abstain from voting on shareholder resolutions that would force corporations to reveal whether they comply with the Arab nations' economic boycott of Israel.

However, the ACSR did recommend that the Corporation notify companies that have been presented with disclosure resolutions that Harvard is "strongly opposed" to compliance with the Arab boycott.

The committee released a statement yesterday saying that although the ACSR views the boycott as "a repugnant effort to foreclose private American trade with a friendly nation," it has concluded that the disclosure resolutions are not "an appropriate method of dealing with the matter at this time."

Donald F. Turner, professor of Law and chairman of the ACSR, said yesterday the committee feels governmental action against the Arab boycott would be more appropriate than any action taken at shareholders' meetings.

House and Senate committees and both the State and Commerce Departments are currently investigating the Arab boycott and the extent to which American corporations are complying with it.

Turner said yesterday the ACSR may reconsider its position against the disclosure resolutions if the government does not take action against the Arab boycott.

Missile Guidance

So far, about 20 corporations have included the boycott disclosure resolutions--authored by the American Jewish Congress--on their proxy ballots, and Harvard holds stock in three of them: General Electric, Union Carbide and U.S. Steel.

The Raytheon Company, in which Harvard owns 90,000 shares, has asked the Securities and Exchange Commission to allow it to omit the disclosure resolution from its proxy ballot, although it manufactures guidance systems for missiles that are sold to Saudi Arabia.

Charles H. Resnick '48, a Raytheon vice president and an alumni representative on the ACSR, abstained from the ACSR vote on the disclosure resolutions because of his affiliation with Raytheon and Harvard's ownership of Raytheon stock.