Harvard Likely to Keep Hydro-Quebec Bonds

Although Dartmouth College has divested itself of $6.8 million in bond holdings in a controversial hydroelectric company, a Harvard committee appears unlikely to recommend similar action for Harvard's holdings.

In December, Dartmouth divested itself of all its holdings in the company, Hydro-Quebec. Environmental activists from the Sierra Club and other organizations have charged that several Hydro-Quebec projects in Canada's James Bay Region are harmful to the environment and the 20,000 members of local Native American tribes.

This week's Boston Business Journal, in a report attributed to unnamed sources, said Harvard owns about $4 million worth of Hydro-Quebec bonds. But Harvard would not confirm that figure, and one University official said Harvard's Hydro-Quebec holdings may already have been sold.

Massive flooding caused by the projects has released poisons into area waters, according to a letter to President Neil L. Rudenstine from members of the James Bay subcommittee of Harvard's Environmental Action Committee.

Local Cree children now have levels of mercury in their blood that are five or six times the "safe" level determined by the World Health Organization, according to the letter.

Subcommittee members met with Rudenstine last February, requesting that Harvard divest itself of its holdings in Hydro-Quebec.

Rudenstine referred the request to the Advisory Committee on Shareholder Responsibility. The Committee advises the Harvard Corporation on how to vote on shareholder proposals.

Rather than divesting itself of its bond holdings, the committee planned to address Hydro-Quebec's environmental policies through its influence as a shareholder in Consolidated Edison, a New York utility company using Hydro-Quebec electricity, according to committee members.

The University lost that opportunity, however,when Consolidated Edison decided last March towithdraw their participation in the secondproposed phase of the Hydro-Quebec projects.

Goldston Professor of Law William D. Andrews,chair of the shareholder responsibility committee,said that after Consolidated Edison withdrew fromthe second phase, the Corporation's bond holdingsin Hydro-Quebec dwindled.

Andrews said he thought the Corporation hadsold all its bonds by the end of the summer. TheHarvard Management Company would not release afigure for the total bond investment inHydro-Quebec.

Andrews explained that Harvard has a policy ofnon-ownership for the stocks of the large tobaccocompanies but has not recommended the same policyfor Hydro-Quebec.

"Harvard has to consider how far they shouldcomplicate their investment practices," Andrewssaid.

Dartmouth College, however, divested itself ofall its Hydro-Quebec bond holdings, nearly tenpercent of its total endowment, after a petitionof more than 2,300 signatures urged Dartmouth'sBoard of Trustees to consider ending the college'sownership of project bonds.

In a news release, Dartmouth administratorsattempted to downplay the political nature oftheir action.

"The college ... makes no moral judgment aboutprojects being built by Hydro-Quebec," said VicePresident and Treasurer Lyn Hutton. "This decisionis made for reasons specific to our community."

Still, some Boston-area students have seen theDartmouth action as a springboard for divestmentin this area. At Tufts, the EnvironmentalConsciousness Outreach, a student organization,has started circulating petitions and hasscheduled a meeting with Tufts President John A.DiBiaggio for the end of January, according to JimCoate, a leader of the student group.

Members of the Harvard Environmental Networkheld an organizational meeting last Thursday wherethey discussed taking action on the issue ofHydro-Quebec bonds. Michael Wall '93, the group'shead, said the network has no immediate plans toact on the matter, but will discuss it further

The University lost that opportunity, however,when Consolidated Edison decided last March towithdraw their participation in the secondproposed phase of the Hydro-Quebec projects.

Goldston Professor of Law William D. Andrews,chair of the shareholder responsibility committee,said that after Consolidated Edison withdrew fromthe second phase, the Corporation's bond holdingsin Hydro-Quebec dwindled.

Andrews said he thought the Corporation hadsold all its bonds by the end of the summer. TheHarvard Management Company would not release afigure for the total bond investment inHydro-Quebec.

Andrews explained that Harvard has a policy ofnon-ownership for the stocks of the large tobaccocompanies but has not recommended the same policyfor Hydro-Quebec.

"Harvard has to consider how far they shouldcomplicate their investment practices," Andrewssaid.

Dartmouth College, however, divested itself ofall its Hydro-Quebec bond holdings, nearly tenpercent of its total endowment, after a petitionof more than 2,300 signatures urged Dartmouth'sBoard of Trustees to consider ending the college'sownership of project bonds.

In a news release, Dartmouth administratorsattempted to downplay the political nature oftheir action.

"The college ... makes no moral judgment aboutprojects being built by Hydro-Quebec," said VicePresident and Treasurer Lyn Hutton. "This decisionis made for reasons specific to our community."

Still, some Boston-area students have seen theDartmouth action as a springboard for divestmentin this area. At Tufts, the EnvironmentalConsciousness Outreach, a student organization,has started circulating petitions and hasscheduled a meeting with Tufts President John A.DiBiaggio for the end of January, according to JimCoate, a leader of the student group.

Members of the Harvard Environmental Networkheld an organizational meeting last Thursday wherethey discussed taking action on the issue ofHydro-Quebec bonds. Michael Wall '93, the group'shead, said the network has no immediate plans toact on the matter, but will discuss it further