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Church of England’s set back on divestment
Updated: 12/Mar/2006 17:58
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The Church of England’s decision to divest from companies whose products are used by the Israeli government in the territories has suffered a set back with the church’s financial advisors voting to reject the call.

The Church’s Ethical Investment Advisory Group yesterday voted unanimously to not divest in Caterpillar after the vote last month by the General Synod. It said it would review the issue “if there are new sales of Caterpillar equipment to the Israeli Defence Forces for use in the demolition of Palestinian houses”.

The EIAG said it “could find no compelling evidence that Caterpillar is or has been complicit in human rights abuses”.

John Reynolds, chairman of the EIAG, acknowledged that divestment “is hugely contentious” and noted it had taken the church’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.

Jewish and Christian leaders in Britain reacted with dismay to last month’s divestment vote that followed a call from the Episcopal Church in Jerusalem for “morally responsible investment in the Palestinian occupied territories” and to disinvest in companies “that profit from the illegal occupation until they change their policies”.

Britain’s chief rabbi, Dr Jonathan Sacks, decried the decision but called on the British Jewish community to remain calm, respond with dignity and work together as a community.

A letter from a group of Conservative Members of Parliament was printed in The Times newspaper last month in support of the Chief Rabbi’s comments.

George Carey, the former archbishop of Canterbury, said that he was “ashamed to be an Anglican” after the motion was passed.

Lord Carey added, “A most regrettable and one-sided statement. It only rebukes one side and displays the church’s propensity to reduce complex issues to black and white.”

The Board of Deputies of British Jews has welcomed the decision to reconfirm the position it adopted last summer regarding its investments in Caterpillar.

Jon Benjamin, Chief Executive of the Board of Deputies, said in a statement, “We are pleased that the EIAG has once again come to the same view that the arguments put forward for divestment cannot fairly be applied in this case. The initial decision followed a detailed investigation of the issues, when the EIAG was at great pains to listen to all sides of the argument. Their approach stands in stark contrast to the superficial and unbalanced debate that took place at the General Synod a few weeks ago, at which a very different decision on divestment was reached.

“There are still important issues to address regarding the facts on the ground and the matters considered in reaching this decision, but the lines of communication are open to pursue those discussions,” he added.

Rev Stephen Sizer, from Virginia Water in Surrey, is a major player in the divestment campaign. He said, “I’m surprised the EIAG acted so precipitously and prematurely as the Synod asked that they visit Palestine and Israel and see the issue first hand then review the situation.”

He added, “It begs the question, who is running the Church of England?”

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