Fortnight Publications Ltd.

Ethical Investors Learn to Flex Their MusclesAuthor(s): Leonard DoyleSource: Fortnight, No. 274 (Jun., 1989), pp. 6-7Published by: Fortnight Publications Ltd.Stable URL: http://www.jstor.org/stable/25551976 .

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COVER STORY

In the last few years, Ireland has become much bigger news in US politics. From the relentless campaign in support of the MacBride fair employment principles to

controversy over the American contribution to the International Fund for Ireland, from difficulties over extradition to arguments over illegal immigration, what

happens there has come to matter a lot more to what happens over here. In this

special report, Fortnight surveys the US and us.

E^PJEthical investors learn

Ugf^ to flex their muscles

California may be the next domino to fall in the MacBride principles campaign. LEONARD DOYLE reports that, despite the Fair Employment Bill, the lobby will keep pushing ahead.

NEW YORK: During his recent tour of the US, Tom King gave New York City a wide berth until the last day of his visit?concerned no doubt

that Harrison 'Jay' Goldin, the chief promoter of the MacBride principles in the US, was going to draw him into the rough and tumble of New York

city politics in an election year. Mr King had no intention of tangling with Mr Goldin. It suited the

secretary of state to snub the American politician most closely associated

with the principles, rather than sit down with him to thrash out some of the

issues which divide them.

During his visit Mr King complained to a local journalist that one of

the problems about Northern Ireland was that there had been no serious

dialogue between the parties in 14 years. Discussions between the British

and proponents of the MacBride principles are not very popular either.

Nor, since Britain likes to lump MacBride supporters in with Noraid

and Sinn Fein, is there much likelihood of talks any time soon. Brian Fall, a diplomat assigned to Washington, put Britain's position succinctly when he wrote recently that the principles ran the risk of aggravating tension in Northern Ireland, because they were "named after a former

chief of staff of the IRA" and supported only by Sinn Fein among the northern political parties.

But it remains ironic that officials should attack the MacBride cam

paign?saying that its backers are IRA propagandists?while incorporat

ing many of its aims into the legislation on fair employment. Affirmative

action is in?though there are still arguments about its extent?as are

goals and timetables, and penalties for employers who flout the bill.

Why then did Mr King bristle when asked whether he would meet Mr Goldin to discuss the issues? The answer seems to be that Britain hopes to stab the campaign in its cot, while denying that the legislation has

anything to do with pressure from America. By characterising the

MacBride campaigners as Irish-American hotheads who would see the

economy of Northern Ireland crumble, the government has tried to avoid

any suggestion that it has caved in to American pressure. But the force being exerted against it via the the MacBride campaign?

now endorsed by 12 states and half a dozen cities?is quite different from

anything Britain has experienced in the past in north America. Relatively small pressure groups in this country have learned that by combining the

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6 June Fortnight

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strength of stock owned by pension funds and foundations they can wield

enough power to undermine US foreign policy. Local policy initiatives

can no longer be dismissed as symbolic acts when, like the MacBride

principles, they represent some $4 billion invested in Northern Ireland.

Exxon, the largest oil company in the world, recently discovered the

effectiveness of institutional shareholders after the Exxon Valdez oil spill. Once again it was Mr Goldin who rallied a block of institutional investors

with $88 million in company stock and forced Exxon to agree to the

appointment of an environmentalist to its board of directors. The Exxon

decision marked a shift in policy by the loose coalition of activist

institutional investors led by Mr Goldin, which is that change may better

be brought about through negotiation than disinvestment.

The British government is not about to negotiate with the backers of

the MacBride campaign, so it seems inevitable that it will continue to

work its way through state legislatures and city councils. Britain's side

will certainly get a better hearing in America when the legislation is

passed, but MacBride activisits are so convinced that it will be ineffective

they are confident their campaign will continue to gather steam.

As long as Catholic unemployment remains significantly higher than

the rate for Protestants, the MacBride campaigners can expect to be busy.

And from Britain's perspective a key danger is that for the first time an

Irish lobby is taking shape in the US focused on shaping events overseas.

In the heyday of Irish-American political power domestic issues were the

priority and politicians paid lip-service to events in Ireland.

All that has changed, and in the same way asthe Jewish lobby is active

over Israel, second- and third-generation Irish-Americans are getting stirred up about events in Northern Ireland. These activists, many sophist icated professionals, present Catholic unemployment in Northern Ireland

as a human rights rather than a nationalist issue, with the result that they are forming alliances with other political pressure groups.

Jay Goldin, a Jewish politician born in New York, is not the sort of

person typically to espouse a nationalist cause. But American politicians like him have no trouble in subscribing to a campaign to end discriminat

ion in employment, if it earns them political support at home. As a

candidate in the race for mayor of New York (where some 8 per cent of

the electorate is ethnic Irish) he will need all the support he can get if he

is to dislodge the incumbent, Ed Koch. Even if he loses, however, the

MacBride campaign can be expected to rumble on, as local action

committees spring up in states like Utah, Texas, the Carolinas and

Oklahoma.

HP International Fund

sf^may run out of friends

The Friends of Ireland have a tough battle to keep the US contributing to the International Fluid, SEAN CRONIN writes. For the administration Ireland is a small chip on the board.

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Brian Donnelly hopes he can keep those dollars flowing P

WASHINGTON DC: A bill proposing a US contribution to the International Fund for Ire

land is before Congress again this year. The

legislative process is complicated and unpre dictable. Anything could happen. The bill may die in committee. But it has powerful sponsors to

send it on its way and will probably survive. The

size of the contribution, however, is uncertain.

The sponsors are hard pressed to demon

strate some return on the money spent so far?

measured by such abstract yardsticks as 'recon

cilation' between nationalists and unionists in

Northern Ireland, and 'co-operation' between

the two parts of Ireland. And there is article

10(a) of the Hillsborough accord. In a time of

austerity budgets to reduce massive deficits,

every dollar counts and the US has higher priori ties than Ireland.

Last year the Reagan administration re

quested "zero money" for Ireland, as they say in

Congress. The administration made clear that

the US had met its three-year, $120 million, commitment to the Anglo-Irish Agreement and

peace in Ireland, and would give no more. The

US contributed $50 million to the International

Fund in 1986, and $35 million in each of the fiscal years 1987 and 1988.

It is sometimes said that the contribution to

the fund is a sign of US commitment to peace in

Ireland. More accurately, it is a sign of the com

mitment of the Friends of Ireland in Congress to

the Anglo-Irish Agreement?and to the govern ment in Dublin. The Friends sponsor US aid.

The Friends consist of powerful politicians in the Senate and the House of Representatives, such as Senators Edward Kennedy and Pat

Moynihan, and Tom Foley, the majority Leader

in the House. All are Democrats and the Demo

crats control Congress. Congressman Foley will

be the next speaker of the House. Congressman

Brian Donnelly, a rising figure in Massachusetts

politics, is chairman of the Friends.

Last year the Friends managed to salvage

only $ 10 million for the fund when preparing the 1989 budget. The fiscal year ends on September 30th. (Congress appropriated "up to $35 million but not less than $ 10 million", but ended up with the low figure.) Despite the drop in the contri

bution, its continuity was assured even though the administration opposed it.

That $ 10 million for Ireland had to come out of some other country's foreign aid request. All

such requests?except from Israel and Egypt? have been cut back because of the deficit, which

even the Friends cannot ignore. Pushing one's

favourite programme is understood in Congress but can lead to bruised feelings all the same.

Some members wonder why any American aid

goes to a part of the UK. The Friends say it's the

only hope for peace in Ireland.

Fortnight June 7

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