Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 655]

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BOARD OF TRUSTEES

[June 21

3M and any of its subsidiaries shall (1) cease further investment in the Republic of South Africa and (2) terminate its present operations there as expeditiously as possible unless and until the South African government commits itself to ending the legally enforced form of racism called apartheid and takes meaningful steps toward the achievement of full political, legal, and social rights for the majority population (African, Asian, Coloured). T h e reasons given by the proponents for proposing the resolution were: 3M is one of the major U.S. investors in South Africa. Under apartheid 3M is forced to follow grossly discriminatory laws and customs thus severely compromising our company's commitment to Equal Employment Opportunity. Even though management supports the "Sullivan Six Principles," which are minimal standards of decency for the work place, we believe that 3M is unable to be a force for basic social change so desperately needed in South Africa. As church investors we feel there should be a moratorium on any new capital from our company being invested in South Africa. Any company that invests new funds now gives a signal of confidence and support to the white minority regime. G.M., Control Data, and Gulf & Western have all stated that they won't expand operations in South Africa because of the apartheid system. Numerous banks are limiting or prohibiting loans to South Africa. We request that 3M make a similar commitment. In addition, we believe that 3M should withdraw from South Africa unless that government dismantles apartheid and moves toward majority rule. T o put this condition on its continued presence in South Africa would be a sign of SM's commitment to the struggle for racial justice there. T h e attached letter was sent to Minnesota Mining and Manufacturing Company by the comptroller. J. P. Morgan and Company On April 12, 1978, the stockholders of J. P. Morgan and Company met and, among other matters, considered a Stockholder Proposal Relating to Loans to the Republic of South Africa, No. V I , submitted by T h e Domestic and Foreign Mission Society of the Protestant Episcopal Church in the U.S.A., Sisters of Charity of Nazareth, and Church Women United. T h e proposal was supported by 4.38 percent of the stockholders. The text of the proposal to the stockholders of J. P. Morgan and Company was: Whereas, at hearings of the U.S. Senate Subcommittee on Africa in late 1976 Chairman Clark stated that although we should not attempt to remake other nations in our image, United States corporations should, when operating in South Africa, maintain our own ethical standards; Whereas, at those hearings it was estimated that U.S. banks had extended $2,000,000 in credits in South Africa, twice the 1974 amount; Whereas, Morgan Guaranty has been a major lender in South Africa; Whereas, Chase Manhattan has announced a policy of denying loans which 'tend to support the apartheid policies of the South African government or reinforce discriminatory business practices'; Whereas, two major Dutch banks, previously major lenders, and at least eight previous U.S. bank lenders, have established policies forbidding loans to the South African government;