U.S. firms frequently claim they are a force for progress in South Africa, pointing to wages that are slightly higher than the country's average--at or just above the PDL. But in their search for higher profits, these companies ask only that South African wages be lower than wages they would have to pay Americans--and their black workers earn, on average, less than a quarter of their U.S. counterparts' wages. In addition, the companies cite average pay, glossing over big differences between a handful of relatively well-paid Africans and the other black workers. Most U.S. companies do not recognize unions for their African employees. Finally, no matter what their intentions, U.S. firms cannot provide the basic rights denied South African blacks. But they do provide the technological and financial base that the apartheid regime desperately needs. The South African operations of a few companies in which Harvard has major holdings illustrate this support for apartheid.

Auto industry: General Motors (G.M.), Ford and Chrysler together control almost a third of the South African motor vehicle market, and provide cars and trucks to the South African government, police and army. The regime has required that 66 per cent, by weight, of all cars made in South Africa come from local plants. To meet this requirement, U.S. auto firms have established extensive production facilities in South Africa. Now, they even export parts from those plants to Europe and America.

In 1976, G.M. South Africa employed 3573 workers, one-fifth African, half Coloured, the rest white. Only 61 Africans employed by G.M. earned over $1.07 an hour that year. Most of the other Africans earned less. All but 57 Coloureds earned less than $1.46 an hour. The average monthly wage for whites was well over twice the average wage for blacks.

Harvard owns $30 million of G.M. stocks and bonds.

In 1972, Ford South Africa had 4000 workers, 65 per cent Coloured and 8 per cent African. It paid most of its black employees less than 84 cents an hour.

Harvard owns $56 million of Ford's bonds.

Oil: An oil boycott would seriously damage the South African minority regime as the country has no known oil deposits. U.S. firms have played an important role in enabling this regime to overcome this vulnerability, by helping it set up plants to extract oil from coal, and look for oil. Most important, U.S. firms have invested heavily in South African oil refineries--more than doubling their investments in recent years--giving South Africa a hold over other countries in the region, which depend on South Africa for refined oil.

One Mobil subsidiary in South Africa runs a refinery near Durban; another handles marketing. Mobil recently bought 32.9 per cent of a lubricating-oil refinery. It is prospecting for off-shore oil. There is evidence that Mobil South Africa has exported oil to Southern Rhodesia (Zimbabwe), breaking U.N. sanctions that are binding on U.S. companies.

The average African monthly wage at Mobil's Durban refinery was $137 without Christmas bonus in 1972. Between 1962 and 1972. Mobil trained 19 Africans (mostly in heavy-vehicle driving) and 992 whites.

Harvard holds $53 million in Mobil stocks and bonds.

Caltex is owned jointly by Texaco and Standard Oil of California. It operates a refinery in Cape Town, and markets petroleum products throughout the country. It also owns shares in two Southern Rhodesian marketing and refining companies. Caltex employs about 2000 workers in South Africa, about a third of them black. The average African wage in 1972 was $139 a month; the minimum was $111.

Harvard owns $22 million in Standard's stocks and bonds, and $11 million of Texaco's.

Electricity and Electronics: Like the auto companies, U.S. electrical and electronics companies have established major plants in South Africa. They produce and market sophisticated equipment, much of it used by the regime's utilities, military forces and police. For example, IBM computers are used by the South African army and the regime's Atomic Energy Board. The West German company. AEG-Telefunken--of which General Electric (G.E.) owns about 15 per cent--supplied the regime's Simonstown military tracking system with sophisticated electronic equipment. ITT also provided equipment and recruited and trained engineers for the base.

G.E. employed almost 2000 workers in South Africa in 1976, 1306 of them black. More than 1240 held unsalaries posts. Only one was at the "professional and management" level, compared to 262 whites. In 1972, blacks at G.E. earned between $73 and $213 a month, with most at the lower rates. ITT's main subsidiary paid its African employees an average of $125 a month in 1972, and whites, $546.

Harvard owns $6.3 million in ITT shares, and $15 million in G.E. stocks and bonds.