Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 298]

EXTRACTED TEXT FROM PAGE:

1985]

UNIVERSITY OF ILLINOIS

287

perpetuating apartheid, and to the social responsibility left to this body to shoulder regarding this extraordinary global challenge. I hope we respond by demonstrating the creativity for which this University is renowned, the leadership our community expects of us, and the courage to draw a line beyond which our financial relationships will not compromise our integrity. I therefore recommend that we immediately seek prudent ways to divest our portfolio of these companies that do business in South Africa and that we establish a reasonable time frame within which divestment be carried out. There followed extensive discussion by the trustees on the motions, including a suggested amendment of Mr. Howard's motion by Mr. H a h n , viz., to substitute in no. 5 under "Stock Divestiture," the figure 10 percent for 25 percent. (Mr. Howard accepted the suggestion as an amendment to his motion.) Mr. Pittman then offered what he described as a compromise motion as follows: That the Board of Trustees make no more investments in corporations doing business in South Africa until January 1, 1987. If at that time, apartheid in South Africa has not ended, the Board of Trustees should proceed to divest any investments still held in corporations doing business in South Africa. The board will be allowed up to two years to accomplish divestment. The end of apartheid will be defined by: an end of the "pass" law; one-personone-vote democratic system; workers and their families should be allowed to live near their place of employment. That the University's primary bank abide by the following: no new loans to the South African government or its agencies; no outstanding loans to the government of South Africa or its agencies; and the bank should not sell Krugerrands. That in the intervening time to January 1, 1987, the University should vote "yes" on all shareholder resolutions to withdraw from South Africa. T h e board then acted upon the business before it as follows: O n the substitute motion of Mr. Logan: the motion was defeated by a vote of 7 to 2, the roll-call vote being as follows: Aye, Mr. Logan, Miss Smith; no, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, Mr. H a h n , Mr. Howard, Mr. Madden, Mrs. Shepherd; absent, Governor Thompson. (The student advisory vote was: Aye, Mr. Lamm, Mr. Pittman.) On the motion of Mr. Pittman: the motion was defeated by a vote of 6 to 3, the roll-call vote being: Aye, Mr. Logan, Mr. Madden, Miss Smith; no, Mrs. Day, Mr. Forsyth, Mrs. Gravenhorst, Mr. H a h n , Mr. Howard, Mrs. Shepherd; absent, Governor Thompson. ( T h e student advisory vote was: Aye, Mr. Lamm, Mr. Pittman.) At this point, the meeting was disrupted by a number of individuals in the audience. By direction of the chair, the meeting was recessed for fifteen minutes while security officers cleared die room. Upon reconvening, the board men considered Mr. Howard's motion. T h e trustees expressed various views in support of it, e.g., the primary responsibility of the board to the citizens of Illinois for the administration of the University's financial assets; skepticism as to the ultimate effectiveness of divestiture as compared with enhancements proposed in Mr. Howard's motion; the view that an appropriate role for the University