Anglican advisors reject divestment
By GEORGE CONGER
LONDON
Mar. 7, 2006 21:34

Divestment activists in the UK were handed a defeat today after the Church of England's financial advisors voted unanimously to reject the Church's call to divest from Caterpillar Inc.

The Ethical Investment Advisory Group [EIAG] voted unanimously on March 7 not to divest from Caterpillar, and said it would review the issue "if there are new sales of Caterpillar equipment to the Israeli Defense Forces for use in the demolition of Palestinian houses".

The recommendation repudiates a February 6 vote by the General Synod, the Church's parliament, to divest from Caterpillar and other companies whose products are used by the Israeli government in the territories. The vote sparked widespread opprobrium from Jewish and Christian leaders led by the Chief Rabbi of Britain, Jonathan Sacks, and the former Archbishop of Canterbury, Lord Carey, who denounced the divestment vote as feckless and ill-considered.

John Reynolds, chairman of the EIAG, acknowledged that divestment "is hugely contentious" and noted it had taken General Synod's call to divest "very seriously. He added that at its special meeting, EIAG had considered all the points made in the debate and given particular weight to the letter it had received" from the Jerusalem-based Anglican Bishop Riah Abu al-Assal in support of divestment.However, EIAG stated on March 7 it "could find no compelling evidence that Caterpillar is or has been complicit in human rights abuses." The rest