Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 653]

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640

BOARD OF TRUSTEES

[June 21

Citicorp O n April 18, 1978, the stockholders of Citicorp met and, among other matters, considered Stockholder Proposal, No. IV, that was submitted by the Premonstratensian Fathers, T h e Presbyterian Church in the United States General Assembly Mission Board, T h e Sisters of Charity, T h e Board of Global Ministries of the United Methodist Church, and the United Church Board of World Ministries. T h e proposal was supported by 4.58 percent of the stockholders. T h e text of the proposal to the stockholders of Citicorp was: Whereas we believe loans to the South African government undergird that regime and facilitate its repression of the black majority which represents 82 percent of the population; Whereas many international, national, and regional banks, including European-American Banking Corporation, Algemene Bank Nederland, Chase Manhattan, First Bank of Pennsylvania, and Maryland National Bank, for a variety of social and financial reasons, have stopped making loans to South Africa or greatly restricted the types of loans being m a d e ; Whereas continuing loans from U.S. banks create a sizable economic interest in South Africa; Whereas such an economic interest has serious implications for U.S. foreign policy in the area; Whereas accounts are being withdrawn from such banks by individuals and organizations, including the National Council of Churches and a number of trade unions; Whereas we believe Citibank shareholders should have information about our bank's current exposure in South Africa; Therefore Be It Resolved that the shareholders request the Board to provide to all shareholders by September 1978 a report on the bank's current commitments in South Africa including the following information. Information directly affecting the corporation's competitive position may be omitted and funds for preparation of the report be limited to reasonable amounts. (a) For the years 1970-78, a designation, by category, of each loan made to the South African government and its state-owned corporations and to private corporations for their operations within that country; (b) A description of the process by which such loan decisions are made; (c) A description of any South African loan requests which were rejected; (d) A statement of current policy regarding future South African loans; (e) T h e bank's evaluation of how each loan described above contributed to the well-being of the black majority and their struggle for full political, social, and economical equality. T h e reasons given by the church investors for proposing the resolution were: As church investors we feel that loans by U.S. banks to South Africa strengthen white minority rule and apartheid there. T h e black majority is involved in nationwide demonstrations against apartheid. T h e South African government's response has been bannings, arrests, and the shooting of protesting school children and others. T h e result is massive repression on a national scale. Consequently, many banks throughout