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Congrega of tije Untteb H>tatea of 3Repr£áentatíbe¿ BC 20515 Dear Colleague: On May 21, 1985, I (with Mr. Clay, Mr. Fauntroy, and Mr. Mitchell) introduced H.R. 2567, a bill that would prohibit the Smithsonian Institution from making loans and investments in the Republic of South Africa . The Smithsonian Institution receives approximately 90% of its funding from the Federal Government, (directly through appropriations and indirectly through Federal grants and contracts). The Smithsonian Institution has a sizeable investment portfolio, in excess of $140 million. Thirty percent is invested in "global initiatives" while the remainder is invested in stocks, etc. The ten largest common stock holdings reveal significant foreign investment in firms engaged in business in South Africa. Due to the fact that American taxpayers provide the majority of the funding for the Smithsonian and because the Congress is empowered with oversight responsibilities of the Institution, we believe that the Smithsonian has a moral and financial responsibility to reject the anti-democratic system of apartheid in South Africa- Further, the Smithsonian should refrain from any investitures in that country which help support the economy of that country. This bill is in keeping with the current legislation in the House and Senate that would ban and restrict American investments in South Africa since U.S. investments, bank loans and trade play a significant role in the S;outh African economy. At the end of 1983, individual and institutional U.S. investors owned about $13 billion worth of shares in South African companies and about 20% of all shares traded on the Johannesburg Stock Exchange. Ü.S, investors own approx - imately 8% of all South Africa's fixed capital investments. U.S. investors have had an impact on the "pace and direction of social and political change in South Africa". Therefore, we feel that this bill will be a clear message to the Government of South Africa that American taxpayer's dollars, which support the major part of the budget of the Smithsonian Institution, are not utilized to help support the South African economy. On Thursday, June 20, 1985, at 10:30 A.M. in 2257 RHOB, the Task Force on Libraries and Memorials will hold a hearing on^H.R. 2567. We urge your support by cosponsoring this important legislation^ If you need further information, please contact Peggy Mathna at 6-7641. Sincerely, t.^ ¿» -» -^» / ember of* Congress Member of Congress Oaker - Clay Letter June 17, 1985

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