News Report on Anti-Apartheid Movement in California (1985)

It is a public issue. It's not simply a student issue. This is of course an issue of conscience and the University of California Regents are a body that's supposedly accountable to the whole of California. [Farnsworth] During his visit to California, Bishop Tutu recognized that the divestment issue has reached far beyond the campuses. He addressed a joint session of the California legislature. [Tutu] You have an enormous responsibility. And we call on the international community of which you are such an important constituent. Please, please for goodness sake, help us. Help us exert pressure. Political pressure, diplomatic pressure, but above all, economic pressure. Help us bring about this tremendous new society. [Farnsworth] Bishop Tutu's speech spurred efforts in the legislature to do something about the state's $10.2 billion investment in companies doing business in South Africa. On May 14th, a legislative subcommittee voted to withhold more than $1 billion until state pension systems adopt plans to divest.

State Legislator Maxine Waters of Los Angeles, who has pressed the issue for the past six years, says it will be difficult but not impossible to get enough votes for the divestment bill to become law. [Waters] It's wonderful to see what has taken place in the past few months just since November. And I think having Bishop Tutu here, all of the news articles that's been done, the national attention that's been given to it, even those who see their role as protecting business now understand something about what apartheid is, how dehumanizing it is. [Farnsworth] As the divestment movement gains popular support, a growing number of city governments are changing their investment priorities. The city of Berkeley voted to divest in 1979. Berkeley now invests up to $30 million in nine banks and 25 savings and loans, which have signed agreements saying they will not make loans to South Africa. In Oakland, the city council has banned any new investments in South Africa-related institutions.

And City Councilman Wilson Riles, Jr. is pressing a more radical measure. [Riles] That we place in our bid proposals language which would indicate that whenever possible, this city would refrain from purchasing goods that were made by companies that do business with South Africa. [Farnsworth] Last month, San Francisco's retirement board voted for full divestment, removing from its portfolio $360 million in stocks and bonds and companies with operations in South Africa. The board's action came after San Francisco voters overwhelmingly adopted a pro-divestment referendum. And on May 7 in Los Angeles, Mayor Tom Bradley announced that he would press for divestment of $400 million in city pension funds there. As the numbers get larger, so do the risks. [Dewitt Bowman] The actual percentage of U.S. participation within the world economy has actually been shrinking. Investment opportunities are opening up worldwide. In order to obtain the optimal rate of return, I think you have to have the opportunities to invest worldwide.

As more and more groups seek to divest, money market funds offering so-called clean stocks are in demand. John Harrington's working assets fund handles investments for some 6,000 depositors who don't want their money going to South Africa. [Harrington] We have found no problem in meeting all of our fiduciary standards, our fiduciary role, as well as maximizing financial return, and as well as having plenty of opportunities to make other investments. I mean, there are just a lot of companies out there, a lot of financial institutions out there that don't do business in South Africa. [Farnsworth] Just about everyone involved in the divestment issue has an opinion on how the movement got this far. Veteran organizers credit the long and patient work of a loose network of churches, labor unions, and civil rights groups. Students say the issue gives them a target that is close to home and a cause that is conveniently far away.