Page 2-Wednesday, February 2, 1983-The Michigan Daily
'U' panel to oppose divestment
By JIM SPARKS
A faculty and student advisory com-
mittee may soon recommend that the
University retain its stocks in com-
panies with South African affiliates, the
group's chairman said yesterday.
Finance Prof. Thomas Gies, chair-
man of the faculty senate's Financial
Affairs Committee, said the group is
"pretty close to agreement" on his
proposal that the University not sell its
stock, valued at more than $42 million.
IN HIS PROPOSAL, Gies says the
University's investment strategy
"should be aimed clearly and
unequivocally toward achievement of
optimum returns," and says divest-
ment would violate the University's
responsibility to give investors the best
Gies also said divesting would hurt
Michigan's economy by pulling money
out of such critical firms as Ford Motor
Company and General Motors Cor-
Divestment advocates believe that
holding stock in companies with South
African affiliates supports the coun-
try's policy of segregation and
discrimination againts blacks.
THE ISSUE, a divisive one at the
University for some years, has heated
up since December, when the state
legislature passed a law requiring
educational institutions to sell off all
stock connected to South Africa.
The state claims it can enforce the
law through its civil rights power, but
University General Counsel Roderick
Daane called the law "uncon-
stitutional" because it interferes with
the Regents' power to make investment
Since 1978, the University has
operated under a policy called the
Sullivan Principles, which require
companies in South Africa to work
toward greater equality for black
workers. The policy requires the
University to divest if companies are
not complying with the principles. The
Regents have divested from one com-
pany since the policy was adopted.
IN HIS PROPOSAL, Gies recom-
mends keeping the Sullivan Principles
as a general policy. Complete
divestiture would be only a "one-time
shock" to the apartheid government of
South Africa without bringing about
real change, he said.
Advocates of divestment, who say the
Sullivan Principles are not working, in-
sist such arguments are a way of
escaping a moral decision to fight
racism in South Africa.
"There are varying degrees of sin-
cerity, but it's essentially a justification
to continue operating there," said state
Rep. Perry Bullard (D-Ann Arbor),
who sponsored the new divestiture law.
GIES SAID THAT divesting would be
singling out South Africa for special
punishment. "We need to recognize
that the world has a lot of other
repressive places. I mentioned Argen-
tina as one and Brazil as another," he
Bullard and others say this reasoning
would hamper any progress at all.
"Just because immorality is commit-
ted in more than one place is no reason
for continuing to be involved in a place
like that," said History Prof. John
Gies said he expects the committee to
make its final recommendation on the
issue next week. Afterward, the debate
will move to the Rackham Am-
phitheatre where the faculty senate will
discuss the issue at its Feb. 14 meeting.
Compiled from Associated Press and
United Press international reports
Bush calls for Western Unity
THE HAGUE, Netherlands - Vice President George Bush called yester-
day for unity in the Western alliance and told the Dutch "guard dogs and
watchtowers" are the mark of the Soviet system.
"This morning in Berlin, I stood before the wall that separates our alliance
from the one that begins on the other side, amid barbed wire, and land
mines, and guard dogs and watchtowers," said Bush.
Bush spoke at a glittering royal banquet given by Queen Beatrix at the
Huisten Borsch palace after arriving from West Berlin. The Netherlands is
his second stop on a seven-nation tour to promote among America's jittery
allies the North Atlantic Treaty Organization's plan to deploy new medium 4
range nuclear missiles in Western Europe.
Bush is to meet today with Premier Ruud Lubbers and Foreign Minister
Hans van den Broek, who support President Reagan's "zero option." That
would cancel the scheduled deployment this year of 572 NATO nuclear
missiles in Western Europe if the Soviet Union eliminates its medium-range.
missile force aimed at Western Europe.
There has been strong resistance here on the plan to place 48 of the NATO
missiles on Dutch soil and four successive governments have postponed a
decision on the issue.
Congress pounces on Reagan
Greenspan urges Congress to
From AP and UPI
WASHINGTON - Members of
Congress pounced yesterday on ad-
ministration officials making their first
journey to Capitol Hill to sell the 1984
Reagan budget, accusing them of
huring the poor and spending too much
Treasury Secretary Donald Regan
became rattled during one round of
questioning in the House Ap-
propriations Committee, saying "No
one knew" the economy was in a
SECOND CH ANCE
All Ladies Amte re
516 E. Liberty 994-5350
recession six months -ago when
Congress passed $99 billion in tax in-
THE AUDIENCE laughed loudly, to
Regan's chagrin. ,
On the other side of the Capitol,
Defense Secretary Caspar Weinberger
wasassailed even by conservative
Republican members of the Senate
Armed Services Committee for his
proposed $30 billion increase in military
"The battleground is going to be the
deficit of nearly $200 billion and the
defense budget," Sen. John Warner (R-
Va.) told Weinberger. "There is a con-
sensus among the members of
Congress that if there is going to be fur-
ther cuts, defense cannot be exempt."
In other business, House Democratic
leaders vowed yesterday to push a
program of "relief, recovery and rec-
onstruction" to combat the recession,
beginning with emergency bills to
create jobs and provide food and shelter
for the needy.
In addition to the emergency jobs and
relief effort, O'Neill mentioned steps to
help homeowners and farmers subject
to mortgage foreclosure and provide
health insurance benefits to the unem-
The White House has promised to
submit its own jobs bill, but it is not ex-
pected to include the public service or
public works employment under con-
sideration by the Democrats.
the bill is expected to include exten-
sion of jobless benefits, a program to
subsidize businesses hiring the unem-
ployed, and money to retrain workers.
.. . rattled in Congress
IT'S NOT TOO LATE!
ORDER YOUR 1983
Weather forecasts shaky
(Continued from Page 1)
Dingle, who used a series of air flow
pattern transparencies to demonstrate
why the weather has been so warm.
THE MAPS illustrated cool air in the
west, with warmer air in the East. "In
accordance with current trends, when
California has bad storms, we (Ann Ar-
bor) get warm weather. The tail end of
Three United States presidents came
from the state of Tennessee: Andrew
Jackson, James K. Polk and Andrew
this pattern is a characteristic cold
wave which recently seems to be quite
minor," he said.
But Dingle warned the patterns can
be deceptive. "These patterns, though,
can be useful and misleading. The
regular pattern that the forecast will be .
using to predict the weather may break
down into another pattern and throw
the entire prediction off," he said.
Even though he had earlier warned
against it, Dingle attempted to forecast
this summer's weather. "If my predic-
tions are right, this summer could be
cooler," he said, citing the reappearan-
ce of missing volcanic ash.
(Continued from Page 1)
The Ark moved into the house in 1968,
Dannemiller said. In 1970, the church
voted to stop allocating money for its
maintenance. As a result, the house is
badly in need of repairs which could
cost as much as $250,000, she said.
The historical commission will make
a formal recommendation within the
next four months that the city council
designate the house part of the district.
bail out Social Security
WASHINGTON - Economist Alan Greenspan, chairman of the
president's Social Security commission, warned Congress yesterday of dirk
consequences for world financial markets if lawmakers fail bail out thg
The House Ways and Means Committee opened hearings on a rescue
package patterned after the commission's $168 billion plan. Committee
chairman Dan Rostenkowski (D-Ill.) said compromise "demands that conT
cessions be made on all sides."
The commission's plan, adopted 12-3, proposes payroll tax hikes, a six',
month benefits freeze, a first-ever benefits tax, and requiring new federal
workers to join the Social Security system next year. It would bail out Social
Security through the decade and erase two-thirds of its projected 75-year'
President R eagan and House Speaker Thomas O'Neill (D-Mass.) already
have pledged their support to the pact that commission leaders hammered
out with White House negotiators on Jan. 15.
Former defense leaders urge
build up of conventional forces
WASHINGTON - Former defense leaders of the United States, Britain,
and West Germany called yesterday for the Western Alliance to build up
conventional forces and then renounce the first use of nuclear weapons.
They argued that a $100 billion strengthening of non-nuclear power in
Europe over six years would keep the Soviets from launching an attack and
allow an American president to make the no-first-use pledge.
The idea, endorsed by 41 American winners of the Nobel Prize, was rejec-
ted immediately by the Reagan administration.
Alan Romberg, spokesman at the State Department, said the ad
ministration doubts that a simple pledge would restrain the Soviet bloc
during times of crisis.
"Indeed, we believe that a nuclear no-first-strike pledge would undermine
deterrence and increase the risk of Soviet conventional aggression against
our European allies," Romberg said.
Vietnamese army presses
offensive against guerrillas
NONG CHAN, Thailand - Vietnamese mortars and artillery drove 30,000
Cambodian refugees farther westward and burned much of their camp on
the Thai border as Hanoi's occupation army pressed a dry-season offensive
against anti-Communist guerrillas.
A spokesman for the International Red Cross said a number of dead were
presumed left in the charred camp 140 miles east of Bangkok, but it was im-
possible to estimate the number. The Thai military command said about 70
refugees were wounded in the attack Monday.
At least two Thais were killed and several were wounded by shells that
landed in Thailand.
Thai troops blocked the fleeing Cambodians at an anti-tank ditch Thailand
claims is on its side of the border. Foreign relief agencies rushed food,
water, and other relief supplies to the scene, and the Red Cross sent more
Western sources said an estimated 2,000 to 3,000 Vietnamese were trying to
wipe out guerrillas of former Prime Minister Sonn Sann's Khmer People's
National Liberation Front.
174,000 GM cars recalled
UNTIL FEB. 14, 1983
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WASHINGTON - The Environmental Protection Agency ordered General
Motors yesterday to recall 174,000 automobiles made in 1980 that are
violating federal standards for nitrogen oxides emissions.
The models affected by the recall are the eight-cylinder Buick Regal,
Buick Century station wagon, Buick LaSabre, Pontiac LeMans, Pontiac
Grand Am, Pontiac Safari station wagon, Pontiac Grand Prix, Pontiac
Catalina, Pontiac Bonneville, and Pontiac Firebird.
They're equipped with 4.9 liter engines.
California model vehicles are not included in the recall, the EPA said.
Under recall provisions of the act, General Motors has 45 days to submit a
plan to remedy the pollution problem on the car, or to request a hearing.
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Vol. XCIII, No. 101
Wednesday, February 2, 1983
The Michigan Daily is ea.ted and managed by students at The University
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Opinion Page Editors.............KENT REDOING McGraw, Larry Mishkin, Lisa Noferi, Rob Pollard, Dan
OpoEoRDAVIPrice. Jeff Quicksilver, Poul Resnick. Wendy Rocho,
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