In return for its payments, Gulf is guaranteed "protection" by the Portuguese army. The exact nature of the protection and of Gulf's payments form the heart of the controversy.

Gulf Builds Barracks

The Committee of Returned Volunteers (CRV)-a group of former Peace Corps workers-claims that Portugal is using the Gulf royalties to finance a war against Angolan rebels. CRV says that Gulf has built barracks for Portuguese soldiers, and that Gulf's $20 million annual royalties make up more than half of Portugal's budget for military operations in Angola.

An official in the State Department's West African division confirmed yesterday that Gulf's agreement requires the company to finance barracks "if necessary to guard the oil fields." He said that whatever troops and barracks might be in Cabinda "are there to protect the area, not just Gulf."

He added-as did several Harvard authorities on Africa-that there has been little military activity in the Cabinda region. Neither the State Department nor Gulf's public information officer, however, had any comment on the reported $20 million figure for the royalty payments.

During the Dow demonstrations in 1967, Harvard breathed a sigh of relief when it discovered that it owned no stock in the company holding the government napalm contract.

Public Service

Last year, Dow lost the contract bidding to other competing companies. A Dow executive explainel that the company had produced napalm with a minimal profit as a public service but last year decided the contract was not worth the trouble and bid according to regular profit scales.

United Aircraft Corp now holds a $4.3 million Department of Defense contract for producing a small portion of the DOD's napalm supply. The company produces airplanes for most major commercial airlines, but in addition does 55, per cent of its business with the Defense Department.

Unaware of the napalm contract, Harvard owns 10,229 shares of common stock worth $624.000 and another $1.5 million in United Aircraft bonds. This amount is a minute percentage of the company's total stock, having more symbolic than real value.