U U U U S
Page 2 - The Michigan Daily - Friday, September 20, 1985
By NANCY DRISCOLL
and KERY MURAKAMI
University President Harold
Shapiro was given a $10,000 raise this
afternoon as the University's Board of
Regents voted unanimously to raise
his salary from $107,000 to $117,000 a
"I think we all know the many,
many hours he has put in above and
beyond the call of duty to this Univer-
sity," said Regent Paul Brown (D-
Petoskeyl, in proposing the raise.
SHAPIRO said that the regents
usually consider a salary increase for
the president in their September or
He said that he "quasi-expected it,"
though he had no idea how much. "I
certainly am pleased," he said.
Regents were full of praise for
Shapiro after the vote. "Harold
Shapiro has done an exceptionally
fine job as President of the Univer-
sity," said Regent Deane Baker (R-
Ann Arbor). "He has carried the
University through very callous times
with the reduction of state support in
the past couple of years."
"GIVEN THE enormous com-
plexities that face a University
Laughing all the
way to the bank
U.S. to divest
The Michigan Daily
Friday, September 20, 1985
Edited and managed by students at The University of Michigan
Star Wars co
40 -0 %f
Oct. Jan. Sept. Nov. Sept.
1981 1983 1983 1984 1985
Daily Chart by BILL MARSH
president, we are very fortunate to
have Harold Shapiro," added Regent
Sarah Power (D-Ann Arbor). "The
salary is just one expression of our
support and appreciation. We have
without qualification the finest
president," she said.
Power said that on a recent trip to
the west coast, she was told "all the
time" that we "have one of a small
group of exceptional presidents."
The two regents said that Shapiro
has overseen a couple of maior
initiates by the University, such as.
an effort to raise $160 million in its
"Campaign for Michigan" program.
Shapiro last received a raise last
November, when the regents raised
his salary 10.8 percent to $107,000
By MIKE AVOLIO
South Africa's system of racial
inequality is as strong today as it
was when it was established, ac-
cording to an exiled official of the
South African Congress of Trade
Only the removal of all
American multinational cor-
porations doing business in South
Africa will force the South African
government to end its
discriminatory ways, said
Thozamite Botha, administrative
secretary of the South African
Congress of Trade Unions.
BOTHA, who currently resides
in Zambia, spoke to a crowd of
about 25 gathered at Guild House
this afternoon. He is on a nation-
wide tour, hoping to present the
perspective of South African
blacks to Americans.
When the news was announced
that the University's Board of
Regents had decided to divest of an
additional $4.5 million in invest-
ments in companies doing business
in South Africa, most at the forum
reacted with disappointment that
the regents hadn't divested of 100
percent of their investments.
Botha refuted the arguments of
those who say divestment from
U.S. companies is wrong. He said
South African blacks will not suffer
any more than they already are if
U.S. companies are forced out of
"THE ILL effects are not going
to be worse than what blacks are
suffering today," Botha said.
"Millions of blacks sleep without
food or shelter or care . . . These
companies' profits are used to
strengthen apartheid. The
economy of the country will be
strong as long as they are there.
"(The companies) will continue
to assist the regime (as the
regime) continues the oppression
of blacks," he continued.
Botha said he does not believe
that U.S. companies who follow the
Sullivan Principles - guidelines
designed to promote racial
equality in therworkplace-are
acting as a force for positive
change. Discrimination exists
regardless of equality-minded U.S.
companies, he said.
"THE QUESTION is not so much
the desegregation of the work-
place, but demanding the end of
apartheid in the workplace,"
Botha said. "As long as apartheid
is there, equality will not exist.
Blacks do not qualify for these
jobs. They don't have priviledges
that the white workers enjoy."
Botha cited his own experience
with a U.S. company that sup-
posedly had signed the Sullivan
Principles. He said when he and a
friend, who was white, began
working at a South African Ford
Motor Company plant there were
two blacks who had been working
far longer than they had. Yet the
white man was quickly promoted
to supervisor over the black men,
Ann Arbor City Councilman
Larry Hunter (D-First Ward), who
also spoke at today's forum, said
Oct. 7 he will once again call upon
the city to divest of $4 million in
pension fund investments it has in
Last March, Hunter proposed a
similar resolution but it drew a tie
vote, and a majority of council is
needed to approve a measure.
Hunter said he is optimistic with
the Democratic majority elected to
the Council in the last election that
he will now be able to pass the
This is "a good opportunity for
this community, for the people of
Ann Arbor, to support divest-
ment," Hunter said. "There is
more understanding in this coun-
try about the issues in South
Editorials represent a majority opinion of the Daily's Editorial Board
U' to continue divestment appeal
(Continued from Page 1).
voting for the resolution put forth by
Regent Neal Nielsen (R-Brighton).
Baker also said that autonomy is an
important issue that affects the
University's "right to make its own
judgements. We must proceed to
another level of appeal."
The appeal of Judge Stell's decision
was filed in the Michigan Court of Ap-
peals last week because the Univer-
sity's deadline to appeal came before
the regents met to discuss the matter.
According to the regents' decision
yesterday, the University will con-
tinue to hold investments only on
companies that are based in Michigan
or have a large number of workers in
the state. Norm Herbert, the Univer-
sity's chied investment officer, said
yesterday he doesn't know how he will
redistribute the University's invest-
THE UNIVERSITY currently holds
South Africa-related investments in
Dow Chemical, General Electric,
General Motors, IBM, and Minnesota
Mining and Manufacturing.
Baker also said that he considered
not divesting completely to be a show
of support for "theahard work
Michigan companies are doing in
South Africa to bring about racial
Baker said that companies such as
General Motors, which have pledged
to follow the Sullivan Principle, set a
good example for other companies in
SOuth Africa. They also apply
Vol. XCVI, No. 12-A
420 Maynard St.
Ann Arbor, MI 48109
N VOTING unanimously to divest
the bulk of University holdings in
South Africa, the regents have added
the powerful voice of the University
to the chorus condemning that coun-
try's racist apartheid government.
The regents' decision this morning
directs the Chief Financial Office to
sell 90 percent of the remaining $5
million that it holds in companies that
do business in South Africa.
As recently as three years ago, the
University held over $50 million in
South African companies, but
following the passage of a bill in the
Michigan legislature which required
all state universities o divest such
holdings, the University began to sell
off its holdings.
It stopped, however, at ap-
proximately 10 percent of its original
holdings, and argued that the state
legislature did have the jurisdic-
tion to tell it how to spend its resour-
ces. On behalf of the Regents,
University attorneys brought suit
against the state.
A month ago, the University lost
that suit, but announced that it inten-
ded to file an appeal.
Now that the Regents have finally
agreed to do away with all Univer-
sity holdings in South African com-
panies, there can be no ambiguity
over their feelings on apartheid. For
many years they have taken the
position that Apartheid is immoral
and unconscionable, but they have
thus far taken no action without
prodding from the state.
The act of divesting from com-
panies doing business in South Africa
is not in itself a terribly direct form of
pressure on the South African gover-
nment. Any stocks that the Univer-
sity sells will pass on to other share
holders. The companies themselves
will not begin to feel an economic
impact until divestment becomes
such a common practice that it
devalues the worth of those shares.
The South African government it-
self will be far less affected by a
single large investor divesting its
holdings than it will be by the san-
ctions recently imposed by President
Reagan under pressure from
And yet, divestment is still an im-
Apartheid is, fundamentally, a
moral issue. It is unarguably wrong to
determine basic human rights on the
basis of skin color. Within the context
of that moral argument, symbolism is
In deciding to divest, the Regents
have made it clear both to the South
African government and to concer-
ned members of the University com-
munity that thev will not condone
racism in any of its forms.
Apartheid itself will certainly not
crumble as a result of the Regents'
decision to divest, but the University
community as a whole is free from
the hypocrisy that condeming apar-
theid yet simultaneously holding
stock in South African companies
FIVE MINUTES after their courageous
decision to divest all significant holdings
from companies that do business in South
Africa, the Regents passed a contrastingly
galling resolution encouraging University
professors to engage in research related to the
Strategic Defense Initiative Project, better
known as Star Wars.
The fact that the Regents took such a stand is
disheartening, but the method they used to take
it reeks of conspiracy.
The first public mention of any proposal
related to Star Wars came only yesterday when
Regent Dean Baker announced it at the first
session of the Regents' meeting.
With no further public discussion on the mat-
ter, the Regents proceeded to conduct their
other scheduled business, until this morning's
session when they adjourned to a closed session
allegedly to discuss divesting South African
When they returned from the private session,
they promptly passed both the South Africa and
Star Wars resolutions.
Aside from the general considerations of
military research that have occupied the
University community for several years, Star
Wars, as one aspect of that controversy, has
generated a great deal of debate both on scien-
tific and ethical fronts.
First proposed by President Reagan in 1983,
Star Wars is the largest crash development
program for any weapons system in history. As
envisioned by Reagan, Star Wars will create a
"weapons shield" in space that will destroy
any enemy missiles as they approach their U.S.
targets. Its most optimistic supporters claim
that it will make nuclear weapons obsolete.
Unfortunately, respected members of the
scientific community, and even some scientists
engaged by the government to research Star
Wars, claim that the system cannot work.
David Parnas, a University of Victoria
professor and member of the government
panel overseeing the computer aspects of Star
Wars, resigned his position saying, "I am
willing to s
a vocal rol
well as at o
nell, have bi
both on the
bound by 1
the goal of
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and the Un
ded to the ]
of the Un
tific and po
political pressure on the South
African government to stop its
policies of apartheid, he said.
The Sullivan Principle are a set of
guidelines for racial equality in pay
and advancement in the workplace.
Regent nellie Varner (D-Detroit),
howeverm said companies doing
business in South Africa support the
South African government, show
noted that, as in 1983, she still favors
com plete divestiture.
The board made its decision that af-
ternoon after holding an hour-long
closed door meeting in Shapiro's con-
ference room. They also held a
closed-door meeting last night for
over an hour.
The regents' decision yeaterday
seems to be a compromise between
Varner felt that the University
should divest completely and drop the
appeal, while regents such as Baker
felt the University should continue the
appeal and not divest any further.
VARNER yesterday said that the
University "made a very important
moral decision" when it decided to
divest in 1983 to "turn around and ap-
peal the ruling would be taking
something away from our moral
Baker has said that he viewsthe
question- of whether to appeal as a
question of the University's
autonomy, not one about South
Regents refused to comment
yesterday on what happened in the
REACTIONS FROM campus anti-
apartheid activists were mixed. Bar-
bara Ransby, a leader of the pro-
divestment Free Aouth Africa Coor-
dinating Committee, said the decision
was a "step in the right direction."
But she added that "the full symbolic
impact will be felt when (the regents)
She said "to link autonomy to
divestment confuses the main issue.
To appeal this issue now reflects a
gross insensitivity to the issue in
South Africa. (This) situation
warrants an uncompromising-
,arvin Woods, President of the
University's Black Student Union,
agreed, saying that "the fact that
they've divested more of their
holdings is a good step, but the appeal
detracts from the gesture."
Political science Prof. Ernest
Wilson, who is teaching a course this
term on the situation in South Africa,
said the regent's decision "is a vic-
tory for people pressing for divest-
He said however that the greatest
change would come from the struggle
within South Africa.
Daily staff writers Laura
Bischoff and Lillien Waller filed a
reports for this story.
Frye to take job at Emory
(Continued from Page 1)
University's five-year plan to
reallocate $20 million in general
The plan, which began in 1982,
will shift funds away from low-
priority areas such as the art
school to high priority areas, such
as the business school.
Frye has also been responsible
for recommending the Univer-
sity's decisions about tuition in-
"EMORY IS my alma mater and
I'm from Northern Georgia," Frye
said in explaining his decision to go
to the private university in Atlan-
He said that his decision to leave
had nothing to do with the Univer-
sity of Michigan or the state.
"That's the hardest part," Frye
said, "I've been in this place for 25
Palms said that Frye has been
considered for the job since Emory
began its search last spring. He
declined to say who recommended
his for the job.
"I'VE KNOWN Billy Frye for a
long time," Palms said. "When he
came down to visit last spring, he
captured everybody's imagination
with his leadership ability.
"Emory is beginning a major
push in the area of graduate
studies and research, and we are
absolutely delighted that he has
agreed to come here," he said.
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AuS BG, KENNY A\ND
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