Sullivan Opposes Loans to S. Africa

The Rev. Leon Sullivan, creator of the fair employment guidelines known as the Sullivan Principles, called on United States banks this week to refuse loans to the South African government, associates said yesterday.

Daniel Parnell, executive director of the Sullivan committee, said yesterday the committee sent letters to 46 U.S. banks asking them to adopt a policy of not lending to the government of South Africa, or its agencies.

Although some U.S. banks lend to corporations that benefit blacks in South Africa, the Sullivan Committee believes loans to the government or its agencies support a system that is against the interests of blacks, Parnell said.

Big Brother

The Sullivan Committee monitors the employment practices of U.S. corporations in South Africa according to the Sullivan Principles, which set guidelines for equal facilities and fair employment practices.

George W. Siguler, assistant treasurer, said yesterday Harvard does not hold investments in banks that lend to the government of South Africa, in accordance with a policy laid down by the University in the spring of 1978.

Harvard holds approximately $25 million in certificates of deposit from Chemical Bank, Citibank, First National Bank of Dallas, and Continental Illinois and roughly $200,000 worth of equity shares in Republic of Texas, Siguler said.

John N. DeBoice, vice-president of Continental Illinois' corporate communication division, said yesterday Continental, although reluctant to rule out making loans to the South African government, has not lended to the government "for quite a while."

Keeping Options Open

Continental does not want to establish a policy that may restrict it from benefiting South Africans in the future, DeBoice said.

Harvard holds certificates in Continental despite its unrestrictive policy because the bank is not currently lending to the South African government, Siguler said. "Once we find that it is making loans, we'll let the investment mature or immediately sell it," he said.

The Harvard treasurer's office regularly asks banks if they have altered their loan practices, Sigular said.

The Corporation's Advisory Committee on Shareholder Responsibility receives information on the practices of U.S. corporations from the Sullivan Committee.

Sullivan is pastor of the Zion Baptist Church in Philadelphia, Pa., and a member of the board of directors of General Motors Corporation.