Arnold C. Harberger, chairman of the economics department at the University of Chicago, formally turned down President Bok's offer to direct the Harvard Institute of International Development (HIID) in a letter Bok received yesterday.

In the letter addressed to Dean Rosovsky, Harberger stated that he has decided to remain at the University of Chicago, because Chicago's offer was "sufficiently attractive" compared with Harvard's proposal, Bok said.

"The letter didn't go into detail," Bok said, but added that Harberger cited "the guaranteed number of graudate students from South America" that the University of Chicago promised him as one incentive.

Bok added that Harvard could not assure Harberger a quota of Latin American graduate students as he had requested.

The University of Chicago may also have offered Harberger s salary "outside of our scale," Bok said.

Harberger is out of the country until April 11.

D. Gail Johnson, provost of the University of Chicago, said yesterday he understood the university's policy of accepting more doctoral candidates in economics then Harvard does "did have some influence" on Harberger's decision.

Johnson said opposition from Harvard students and faculty to Harberger's possible appointments may have affected Hargerger's choice, but added that in his conversations with Harberger, "we discussed it very, very little."

Robert E. Lucas, vice-chairman of the University of Chicago's economics department, said yesterday he also believed Harberger considered the Chicago post more desirable because the economics doctoral program admits about a dozen Latin American students each year.

Sources within HIID and members of the Students Opposed to Harberger (SOH) say they believe Harberger chose to remain at the University of Chicago largely because of student and faculty opposition to his appointment.

Patty M. Nolan '80, a member of SOH, said yesterday "the opposition from faculty and students, and the controversy it generated, contributed substantially" to discouraging Harberger from accepting the appointment.

Nolan pointed to the support of moderate faculty members in opposing Harberger's appointment as especially influential.

Harberger's proposed appointment met strong resistance from professors and students who questioned both Harberger's association with the Chilean government and his policies which they say stress economic efficiency over social welfare.

Harberger served as both an informal advisor and a paid consultant to military dictatorships in Latin America, particularly in Chile and Uruguay.

Faculty and fellows within HIID have charged that Harberger would damage HIID's reputation in underdeveloped countries.

Lester E. Gordon, present director of the HIID, refused to comment yesterday on Harberger's decision. Gordon plans to leave his post in June and said "my strong preference" is not to remain as director.

Bok said he may hold another search to identify new candidates for the HIID directorship.

David H. Maybury-Lewis, chairman of the Anthropology Department and a member of the HIID Faculty Council, said yesterday he was "pleased" that Harberger turned down the post. "I don't think it would have been a good appointment," he added.

"If he (Harberger) feels he would be better off at the University of Chicago, well, we feel better off at Harvard," he said