Harvard Counters Rally Criticism

As the Rev. Jesse Jackson's fiery criticism of Harvard's investment policy drew the attention of thousands yesterday. Harvard tried to insure that those reading and watching reports of the pro-divestiture rally got both sides of the story.

At a post-rally press conference, Vice President and General Counsel Daniel Steiner '54 countered charges waged by Jackson and others that Harvard directly supports apartheid by holding onto its investments in companies with South African operations.

Outlining Harvard's policy of extensive dialogue," Steiner said the University believes it can do more to counter oppressive conditions in that country as a shareholder than it could if it severed all its links to companies with operations there.

Steiner said that Harvard is "much in agreement with Mr. Jackson," and that Harvard shares the opposition to apartheid expressed by speakers at yesterday's rally. Harvard disagrees, Steiner said, with Jackson's view that divestiture is the most effective means of combatting apartheid.

"Our goal is not divestment; divestment is a failure for us," Steiner told the dozen or so television, radio, and newspaper reporters in attendance. "There's disagreement, but that's to be expected in a free society."

The Steiner press conference, organized by News Office personnel in a small Science Center classroom, followed a decision among top officials that in light of the pro-divestiture rally, "the University had an obligation to speak its point of view," Harvard Spokesman David M. Rosen said.

Steiner spoke on the University's behalf instead of President Bok because "Bok had a variety of appointments" yesterday in Cambridge, Steiner said. Harvard's top lawyer, Steiner is considered Bok's most trusted aide.

No Rising Tide Seen

Steiner cited a Crimson survey conducted this week, which indicated that 33 percent of Harvard undergraduates support complete divestiture, in saying that opposition to Harvard's policy does not constitute "a rising tide."

"Only one third of students polled favored divestment," Steiner said.

Other results of the Crimson poll--a random telephone survey of 479 students--showed that one third of students favor selective divestiture based on ethical or other considerations, that 14 percent oppose any sale of stock, and that 19 percent are unsure of their position on the controversial divestiture issue.

Steiner did not cite these results.

Facing a group of microphones and tape recorders, Steiner explained at the 15-minute conference that Harvard holds approximately $580 million of stock in about 100 companies which do a "small part"--usually less than 1 percent, he said--of their business in South Africa.

Harvard maintains investments in those companies, Steiner added, "not because of the fact that they do business in South Africa, but despite the fact that they do business in South Africa."

When a company fails to respond to Harvard's ethical urgings, Steiner told reporters, University policy calls for it to consider selling its stock in that company.

That action, he said, had been taken three times: twice, several years back, when two banks refused to stop loaning money to the South African government; and two months ago, when a company failed to respond to Harvard's request for information about its South African operations.

Asked whether additional selective acts of divestiture would be forthcoming, Steiner said Harvard monitors its investments as part of an ongoing process, and that announcements of divestment actions were possible in the coming weeks and months.

He stressed, though, that "the purpose of the Harvard policy is not to divest," but to do what it can to urge companies to "act responsibly."

Harvard had been satisfied with improvements promised by several companies to which it had expressed concerns, Steiner said. He acknowledged that Harvard could not be sure that its communication with those firms was solely responsible for prompting those companies to match Harvard's ethical standards.

But, he said, "There has been no other university in the country that has been more active as a shareholder than Harvard University."

About yesterday's rally, Steiner said that "demonstrations are an important part of University life." He said that officials were not overly concerned about the possibility that the post-rally vigil outside Massachusetts Hall--where Bok and Steiner have their offices--would disrupt normal operations there today.

"We have had vigils before," Steiner said.