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FOUR YEAR PHASED DIVESTMENT PLAN Spring, 1985

The Swarthmore Anti-Apartheid Committee proposes the following plan f or

full, phased divestment. Any or all of it is open to amendment by the

South African Advisory Committee, the Board of Managers, or the other

bodies which will be addressing this proposal.

PHASED DIVESTMENT

Beginning in May 1985 the Board of Managers of Swarthmore College will

authorize the sale in specific phases of all South African related

stock until such time as the South African government has committed

itself to ending Apartheid and has taken internationally recognized

steps toward the achievement of majority rule. Full divestment by

Swarthmore College will be achieved in four years--by 1989. College

brokers will be given a grace period of up to six monthes beyond each

stipulated deadline to conclude the sale of the designated stocks.

FIRST PHASE

(May 1985)

Divestment of all holdings from all corporations in violation of the

Sullivan Principles as previously adopted by the Board of Managers and

other companies with directly repressive functions.

SECOND PHASE

(May 1986)

Divestment of all holdings from all corporations supplying stategic

materials and technology to the government or to private industries in

South Africa, such as the automotive industry, computer industry,

nuclear energy, communications, oil production and coal gassification.

THIRD PHASE

(May 1988)

Divestment of all remaining holdings from any other companies doing

business in South Africa.

Respectfully Submitted,

The Swarthmore Anti-Apartheid Committee

I Introduction

Phased Divestment Proposal Swarthmore Anti-Apartheid Committee

This proposal is submitted by the Swarthmore Anti-Apartheid Committee and is an adoption of a proposal submitted at Oberlin College upon agreement that divestment should occur. The Swarthmore Anti-Aparthied Committee acknowledges that there are certain financial decisions which we can not best make, however divestment at other colleges has not been de t rimental to the teaching capacities of those schools.

It should be understood that the listing of corporations may not inc l ude every corporation involved in the South African economy, and that not all companies with military sales to the government or other violators of the existing College policy have necessarily been identified. Along these lines, we are suggesting that before final divestment actions are taken, the appropriate body should contact the corporations from which we intend to divest, or add to a "no-buy" list, confirming our information.

To ensure that our policies remain relevant, we would also ensure that the College retain a part-time staff person to scan all South Africa related materials that are received by the South African Advisory Committee, and propose changes in College policies with regard to s pecific corporations as s/he deems fit. For example, if a company pulls out of South Africa it would be the staff person's responsibility to see that the Trustees removed the company from the "no-buy" list.

II The Proposal Beginning in September, 1985, the Board of Managers of Swarthmore College will authorize the sale in specific phases of all South Afircan related stock until such time as the South Africna government has committed itself to ending Apartheid and has taken internationally recognized steps towards the achievement of majority rule. Full divestment by the College will be achieved within 3 1/2 years, as College brokers will be given a six month grace period beyond each stipulated deadline to conclude the sale of designated stocks. Thus, by March, 1989, the College would no longer hold any South Africa related stocks.

Effective as soon as is feasible after passage of this proposal, the College will refrain from buying stock in any corporation from which it would later be forced to divest under this proposal.

FIRST PHASE OF DIVESTMENT (September,1985)

Continuance of divestment of all holdings form all corporations in violation of the Sullivan Principles.

In addition, specific divestment from all corporations which have refused to endorse, or to work conscientiously towards implementation of the Sullivan Principles; violaters or circumvenors of United States or United Nations embargoes or sanctions pertaining to South Africa; corporations which make sales to the South African police, military, or

other governmental agencies which have direct application to repressive functions, banks or other financial institutions which make loans to the South African government; corporations with operations in and around the Bantustans; corporations with operations in Namibia; and corporations which fail to respond to reasonable requests for disclosure fo non-competitive information regarding their South African operations.

SECOND PHASE OF DIVESTMENT (September, 1986)

Divestment of all holdings from all corporations supplying stategic materials and technology, specifically the automotive, computer, nuclear energy, communications, oil, coal gassification and mining equipment industries.

THIRD PHASE OF DIVESTMENT (September, 1988)

Divestment of all remaining holdings from any other companies doing business in or with South Africa. For the purposes of this proposal, companies "doing business in South Africa" shall be defined as those corporations with employees in South Africa, or with a controlling interest (over 50% of equity) in companies with employees in South Africa. Companies "doing business with South Africa'' shall include institutions which sell Krugerrands, agencies preparing advertising for South African tourism, or other corporations treated on a case-by-case basis which are deemed by the Board of Managers to do siginif icant trade with South Africa.

Companies whose only operations in South Africa are news bureaus shall be exempted from divestment.

Category

Category

SOC~H AF~ICA 1NVES1~~NTS

I. - MAKING GOOD PROGRESS

_ Bur-I'.'oughs - -~OSJ. Coca Cola .t'·· •..

' Control Data Corp. Eastman Kodak Co. General Motors Corp. Goodyear Tire & Rubber Co. IBM Johnson & Johnson Merck & Co. MMM Mobil Corp. Norton Co. Olin Corp. Tenneco Union Carbide Xerox Corp. Citicorp. Pfizer

Also Category Below

!IA

IIA IIA, v

IIB

IIA, IVA

IVA

IIA. - MAKING PROGRESS, BASED ON FULL REPORTING Gillet:te Caterpillar Tractor Cigna Corp. Dow Chemical Co. IVC Grace W.R. & Co. International Minerals & Chemicals IVC Richardson Vicks Standard Oil of Ohio . Sterling Drug Upjohn Co.

IIB Category IIB - MAKING PROGRESS, BASED ON SHORT FOR..'! REPORTING

Firestone Tire & Rubber Co. Chase Manhattan Corp.

Mkt.Value at 3/31/85

$.1,562 , 737 1,820,000

855,000 2,227,962 2.,157,260

201,562 5,245,100 2,356,200 1,678,000 1,184,400

225,000 355,000 152,500 252,500 246,750 216,875

1,416,700 64,312

i47,187 1,413,500

248,750 2,008,000

104,687 287,875 384,375 118,125

79,375 161,000

45,937 687,250

Category IIIA - PASSED BASIC REQUIREMENTS BUT RECEIVED LOW POINT RATING

American International Group Cooper Industries

Category IVA - ENDORSERS - MEETING BASIC REQUIREMENTS

American Express Co.

Category V - NEW SIGNATORIES

Baxter Travenol Dresser Industries, Inc.

183,437 598 ,500

910,250

354,375 163,000

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NON-SIGNATORIES

Comoanies with more than 10 emolovees.

American Hospital Supply Corp. Baker International Corp.

Computer Sciences Corp. International Flavors & A.H. Robins Co., Inc. Timken Co.

Fragrances

Companies with 10 or fewer employees.

Boeing Co. Perkin-Elmer Corp.

Total

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Mk.t. Value at 3/31/85

370,000 177 ,187

75,000 454,000 112,500 206,000

1,250,000 199,000

$32,957,168