On March 7, 2006, advocates for Israel “divestment” were dealt a setback by the Ethical Investment Advisory Group (EIAG) of the Church of England, when it unanimously voted against divesting the Caterpillar stock held by the church.

While the decision seriously slowed divestment momentum, which is significant in itself, the difference in the way the story was told by those opposed to divestment and those in favor of divestment provides a telling lesson in moral perspective. Jewish news agencies favored inclusion of a quote attributed to the EIAG to the effect that it “could find no compelling evidence that Caterpillar is or has been complicit in human rights abuses.”

By contrast, Christian news services, both in the U.S. and abroad, tended to studiously omit that particular exculpatory quote about Caterpillar. They substituted other statements, including the reported reason that that the EIAG decided to hold onto the Caterpillar stock: “There are no current or projected sales by Caterpillar (of) equipment for use by the Israeli government.” Most church reports also included a statement to the effect that the EIAG reserved the right to revisit its decision if such sales resume.

To note the significance difference in “spin” put on the story, it is important to read the whole original press release provided by the Church of England. This allows one to see exactly which factors were or were not being reported by other news agencies or services.

First, here is the original press release from the Church of England.

Caterpillar: Ethical Investment Advisory Group confirms earlier decision
7 March 2006

The Church of England's Ethical Investment Advisory Group, after careful consideration at a specially convened meeting to discuss Caterpillar Inc ­ the US-based manufacturer of construction and mining equipment ­ has unanimously reaffirmed its previous decision, taken in September 2005.

The decision involved: not recommending disinvestment from Caterpillar; continuing its programme of engagement with Caterpillar; and making clear its intention of revisiting this decision if there are new sales of Caterpillar equipment to the Israeli defence forces for use in the demolition of Palestinian houses.

The EIAG, whose members include some nominated by the three investing bodies of the Church of England (the Church Commissioners, the Central Board of Finance and the Pensions Board) and representatives from the Mission and Public Affairs Council, the Archbishops' Council and the General Synod, is responsible for giving ethical investment advice to the Church's three investing bodies. The bodies alone have the legal authority to make investment decisions.

John Reynolds, chair of the EIAG said: “The EIAG reports regularly to the General Synod, and is gratified by what it sees as the rising level of interest in our work, and in particular by the wish of the General Synod to debate our report and the specific recommendations we make. We fully recognise that sometimes that interest will be critical, and lead to proposals that the EIAG reconsiders recommendations it has made.

“The EIAG recognises that the particular topic debated by Synod is hugely contentious, and EIAG members, like other Christians, have different perceptions of the situation in the Middle East. The Group in general, and its officers in particular, have spent an unusually large amount of time in engagement with Caterpillar and with the various groups representing Palestinian and Israeli, Jewish and Christian opinion seeking to influence its decision.

“The EIAG also well recognises that others will also have spent a great deal of time on this matter and acquired a great deal of knowledge about the situation. For that reason, and as a body which gives account to the General Synod, the EIAG took the resolution very seriously, and at its special meeting considered all the points made in the debate and gave particular weight to the letter it had received from the Bishop in Jerusalem, as well as the one which was quoted in the debate.”

In reaching its decision, the EIAG bore in mind the following considerations: The purpose of the ethical investment policy of the Church of England is to avoid profiting from enterprises engaged in activities which are either wrong or so controversial among Christians as to undermine the credibility and unity of the Church's witness. The EIAG decision was taken in the specific context that there are no current or projected sales of Caterpillar equipment for use by the Israeli government; Caterpillar sold its equipment to a US Government body and had no direct sales to the Israeli Government; and the EIAG could find no compelling evidence that Caterpillar is or has been complicit in human rights abuses.

The purpose of the ethical investment policy is not to engage in punitive action or to make public gestures, however much individuals might in other contexts support such actions.

Disinvestment is by definition a last resort action, ending the possibility of engagement with the company. While engagement carries risks--not least a charge that engagement is only for show--the EIAG concluded that the engagement we have had with this company is productive, and justifies the intensive effort that has been, and will continue to be, expended. In particular, the company is very well aware that if sales were to resume, the matter would immediately have to be brought back to the Group for very active reconsideration, and that the risks to the company's reputation are real.

The EIAG will continue to reach its own conclusions on whether the Church of England is profiting from continuing sales of equipment for purposes contrary to our general ethical investment policy and whether therefore to recommend disinvestment at some future date.

John Reynolds explained: “Up to this point it has been apparent that on both sides of this very difficult argument there has been a recognition of the quality of engagement that has characterised the work of the EIAG and especially of its officers, and that it has engaged in a serious process of listening and research before reaching its conclusion; we hope that this note of explanation will be received in the same vein.” (http://www.cofe.anglican.org/news/pr29cat06.html)

Anglican advisors reject divestment
By George Conger Mar. 7, 2006 21:34 | Updated Mar. 7, 2006 23:44

LONDON - Divestment activists in the UK were handed a defeat today after the Church of England's financial advisors voted unanimously to reject the Church's call to divest from Caterpillar Inc.

The Ethical Investment Advisory Group [EIAG] voted unanimously on March 7 not to divest from Caterpillar, and said it would review the issue “if there are new sales of Caterpillar equipment to the Israeli Defense Forces for use in the demolition of Palestinian houses.”

The recommendation repudiates a February 6 vote by the General Synod, the Church's parliament, to divest from Caterpillar and other companies whose products are used by the Israeli government in the territories. The vote sparked widespread opprobrium from Jewish and Christian leaders led by the Chief Rabbi of Britain, Jonathan Sacks, and the former Archbishop of Canterbury, Lord Carey, who denounced the divestment vote as feckless and ill-considered.

John Reynolds, chairman of the EIAG, acknowledged that divestment “is hugely contentious” and noted it had taken General Synod's call to divest “very seriously”. He added that at its special meeting, EIAG “had considered all the points made in the debate and given particular weight to the letter it had received” from the Jerusalem-based Anglican Bishop Riah Abu al-Assal in support of divestment. However, EIAG stated on March 7 it “could find no compelling evidence that Caterpillar is or has been complicit in human rights abuses.”

Nick Dearden, a spokesman for the charity War On Want, which spearheaded the divestment campaign, told The Jerusalem Post they were “extremely disappointed,” as the Church “should not have its money in companies that destroy houses and violate international law.” Dearden said divestment campaigners would not give up and would try to persuade the Church to reject the advice of its financial advisors and “honor the synod vote.”

Jon Benjamin, chief executive officer of the Board of Deputies of British Jews, told the Post he “welcomed the decision” which “contrasted handily to the debate in Synod.” The EIAG had “sat down with both sides” hearing all the evidence, before reaching its conclusions, he said. Benjamin noted that “by being able to contribute” to the debate, the Board's presentation of the facts on the ground in Israel had helped to persuade the EIAG to stand down. (http://www.jpost.com )

March 14, 2006

Anglicans retreat on Israel divestment, but U.S. Jewish group isn't satisfied
by Al Webb, Religion News Service

LONDON - The Church of England appears to be backing away from a proposal to sell its stake in companies that do business with Israel.

However, the shift hasn't mollified the American Jewish Congress.

In a Feb. 6 vote, the Church of England's General Synod targeted the church's $4.4 million holding in U.S. machinery giant Caterpillar Inc., whose bulldozers allegedly have been used by Israel's army to destroy Palestinian homes in the occupied territories.

However, the church's powerful Ethical Investment Advisory Group recommended on March 7 that the church hold onto its Caterpillar stock, because “there are no current or projected sales by Caterpillar (of) equipment for use by the Israeli government.”

The group reserved the right to “revisit” its decision if such sales resume.

That failed to smooth ruffled feathers at the American Jewish Congress, which said in a March 8 statement that the advisory panel's action smacked of “half a loaf (being) better than none.”

“But this is a stale loaf indeed,” said American Jewish Congress President Paul S. Miller.

Neil Goldstein, the group's executive director, said, “The concept that cooperation in Israel's war against terrorism is morally repugnant shows that the Anglican Church has lost its moral compass.”

The general synod's vote, which was backed by Archbishop of Canterbury Rowan Williams, came in response to a call by the Episcopal Church in Jerusalem and the Middle East for the Church of England “to disinvest from companies profiting from the illegal occupation, such as Caterpillar Inc., until they change their policies.”

A spokesman for Caterpillar told the British Broadcasting Corp. that its products were sold to the U.S. government, which in turn sold them to Israel.

“We clearly have neither the legal right nor the tangible ability to regulate how customers use their machines,” the spokesman said. (http://www.pcusa.org/pcnews/2006/06160.htm)