Emad Mekay

WASHINGTON, Aug 5 2005 (IPS) — The U.S. branch of a global church seeking to pressure corporations whose actions support the Israeli military’s occupation of Palestinian land has named five multinational corporations to be the target of its divestment efforts.

The Mission Responsibility through Investment (MRTI) Committee of the Presbyterian Church (U.S.A.) said Friday it will begin the process of what it called "progressive engagement" with five companies it says contribute to the ongoing violence plaguing Israel and Palestine.

The companies are Caterpillar, Citigroup, ITT Industries, Motorola and United Technologies.

"We have chosen these companies because we believe that they can make changes that will increase the possibilities for a just peace in the region," said Carol Hylkema, chairperson of the MRTI committee. "As shareholders of these companies, the Presbyterian Church (U.S.A.) calls on them to act responsibly."

The decision came despite outcry from Israel, some Jewish groups and pro-Israel members of the U.S. Congress.

The church, with a membership of 2.3 million people from 50 U.S. states, has an investment portfolio worth eight billion dollars, which includes many companies that work in Israel.

The church’s actions have reverberated widely despite strong efforts by pro-Israel lobbying groups to contain the move. Since the church initially announced its plans last year, several organisations and other churches said they are taking similar measures.

In February 2005, the Geneva-based World Council of Churches called on its 347 member churches to study using financial pressure in the Middle East. The 77-million member Anglican Communion said in May it could follow the lead of the Presbyterian Church and urged its churches to make similar studies.

In June 2005, the Virginia and New England conferences of the United Methodist Church said they might join the growing faith-based movement, and passed resolutions urging selective divestments from companies that profit from the Israeli occupation.

According to the Presbyterian Church, which has now put itself firmly in the lead by naming the five companies, says that corporate engagement will be a "phased and selective" endeavor. The church says it will use dialogue, shareholder action, and as a last option, divestment, to bring about change in Israeli policy.

"We are initiating a slow, deliberate process, designed to produce opportunities for engaging companies around the social witness policies of the denomination through dialogue, shareholder resolutions and public pressure, so that these corporations might change their business practices which inflict harm on the innocent, and delay movement toward a just peace," said Bill Somplatsky-Jarman of the MRTI Committee.

"If these dialogues fail, we may conclude that our investments are not being used for activities that support the broad mission of the Church. At that point, divestment is an option that the General Assembly may consider," he said.

The church says its resolution was in part a response to calls by Palestinian Christians, who are also suffering under the Israeli occupation, partly aided by the work of the five companies.

The church said that the Illinois-based Caterpillar builds heavy bulldozers that are widely used for demolition of Palestinian homes, the uprooting of olive trees, construction of roads and infrastructure in the occupied territories for exclusive use by Israeli settlers, and facilitating operations by the Israeli military.

Recently, U.S. peace activists, including many Jewish groups, organised a campaign against Caterpillar that was sparked by the 2003 death of 23-year-old U.S. peace activist Rachel Corrie.

Corrie was crushed to death by a Caterpillar machine as she protested demolitions of Palestinian homes.

The company continues to operate in Israel.

The industrial conglomerate ITT Industries, which makes a range of auto and telecommunications products, supplies the Israeli military with communications, electronic and night-vision equipment used by its military in the occupied territories.

Telecom equipment vendor Motorola Inc recently won a contract to develop wireless encrypted communications for the Israeli military in the occupied territories. Motorola is a majority investor in one of Israel’s four cell phone companies, which operate in Palestinian territories without Palestinian permission.

The military contractor, United Technologies, has a subsidiary that provides helicopters to the Israeli military. They have been used in attacks in the occupied territories against suspected Palestinian militants, killing many civilians and bystanders.

Citigroup was targeted by the church for its alleged dealings with Palestinian militant groups.

The church says that the bank has been cited for having moved considerable funds from some charities later determined to be facades for funneling money to fundamentalist organisations. Some of these funds went as payments to the families of Palestinian armed men and bombers.

The move by the church has angered members of the right-wing and supporters of the governing Likud Party in Israel, with some calling it tantamount to declaring a boycott of firms that do business with Israel.

U.S. churches used divestment as part of a successful campaign in the l970s and l980s to help end apartheid in South Africa.

Only two years ago, groups waged a similar scheme against Canadian energy company Talisman. The firm was forced to sell its Sudan operation in March 2003 after a strong divestment campaign by labour unions, human rights and religious groups.

The Swedish company Lundin and Austrian firm OMV later also stopped working in Sudan to protest the civil war in the south of the county.