4 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 possible return. 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- poration. 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 decisions. 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 said. 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 Broomfield. 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. IN BRIEF 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 ' '84 budget 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 on defense. 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 WEDNESDA Y A T SECOND CH ANCE All Ladies Amte re 516 E. Liberty 994-5350 recession six months -ago when Congress passed $99 billion in tax in- creases. 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 spending. "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- ployed. 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. Regan .. . rattled in Congress IT'S NOT TOO LATE! ORDER YOUR 1983 Weather forecasts shaky IINS /_1 (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 Johnson. TODAY AND SQ'J $s p 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. Ark may,.be landmark, (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. Daily Classifieds, Bring Results 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 retirement program. 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' shortfall. 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 medical personnel. 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 -=- - ---------=- - - - - -=- m Please reserve my copy of the $15.00. I will pick it up in April. please add $2.00.) 1983 ENSIAN, at the price of (To have the ENSIAN mailed, Name Ann Arbor Address Mailing Address HURRY-RESERVE YOUR COPY NOW! 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. 4 Name _ SMO V/NC OUT? IAddress_ Why not Subleft Your Lease Phone I through i e + IU i Summer Sublet Supplement Mail or Bring in Person with payment to i 420 MAYNA RD STREET L MAKE CHECKS PAYABLE TO: TH E MICHIGAN DAILY 1 ONLY $14 before 5:40 pm March 2, 1983 . j .. uJbe Ahaidp!3n 1ttg Vol. XCIII, No. 101 Wednesday, February 2, 1983 The Michigan Daily is ea.ted and managed by students at The University of Michigan. Published daily Tuesday through Sunday mornings during the' University year at 420 Maynard Street, Ann Arbor, Michigan, 48109. Sub- scription rates: $13 September through April (2 semesters); $14 by mail out- side Ann Arbor. Summer session published Tuesday through Saturday mor- nings. Subscription dates: $7.50 in Ann Arbor; $8 by mail outside Ann Arbor. Second class postage paid at Ann Arbor, Michigan. POSTMASTER: Send address changes to THE MICHIGAN DAILY, 420 Maynard Street, Ann Ar- bor, MI. 48109. 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