Advisory Committee Continues Nuke Investment Consideration

The Advisory Committee to Shareholder Responsibility (ACSR) yesterday formed a special four-man subcommittee to draw up a preliminary position on Harvard investments in companies manufacturing nuclear weapons.

The subcommittee hopes to finish its report by January for consideration by the whole ACSR, which advises the policy-making Corporation on ethical issues at must face in managing Harvard's $1.6 billion endowment, Committee Secretary Candace R. Corvey said yesterday.

She added that the advisory committee plants to present its recommendation to the Corporation before the spring proxy season, when Harvard is expected to leave the opportunity to vote on several shareholder revolutions concerning nuclear weapons production in firms in the University stock portfolio.

The subcommittee members are ACSR chairman Walter J. Salmon, Roth Professor of Retailing at the Business School; law student Frederick T. Smith; Boston lawyer Herbert P. Cleason '50, and Paul S. Russeff. Homans Professor of Surgery at the Medical School.

Yesterday's closed breakfast meeting marked the first gathering for the committee since last week's rare open meeting, when the ACSR solicited Harvard community opinion on the subject before a crowd of about 150.

At just incepting, the committee heard widely differing views on the nature of the arms race and what Harvard should do about its investments in nuclear arms-producing companies.

While some speakers urged Harvard to take every step it could in the corporate would to oppose nuclear weapons others cited national security considerations as reasons for Harvard not to support anti-nuclear resolution.

The debate over nuclear investment emerged at Harvard last term paralleling the increased concern nationwide over the arms race.

The Corporation last spring abstained on three nuclear-weapon related resolutions before companies in the University portfolio.

Corporation members at the time said they did not want to switch abruptly from past opposition to such anti-nuclear messages.

Harvard has more than $50 million invested in the three companies--General Electric. Du pont. and American Telephone and Telegraph--according to the most recent University financial report.

Despite the input of the open meeting the ACSR did not give the subcommittee any specific guideline Corey said.