Mr.
Warren E. Buffett
Chairman
of the Board
Berkshire
Hathaway Inc.
1440
Kiewit Plaza
Omaha,
NE 68131
Dear
Mr. Buffett,
Your
company, Berkshire Hathaway Inc., was recently named one of America’s “Most
Admired” companies of 2007. We ask you to live up to that reputation by
changing your stated policy relating to your $3 billion investment in
PetroChina Company Limited (PetroChina), a Chinese oil company that helps to
fund the genocide in Darfur. This genocide has already claimed 400,000 lives
and displaced 2.5 million more people. Berkshire Hathaway is the largest US
investor in PetroChina.
The
statement Berkshire Hathaway issued on February 21 claims that divestment
advocates are “wrong” about the relevance of your PetroChina holdings to the
genocide. However, a closer and more thoughtful review of the facts shows that
you have reached the wrong conclusions regarding your role in this tragic
humanitarian crisis.
Here
are the facts in brief:
- PetroChina’s
government-owned parent company, China National Petroleum Corporation (CNPC),
is a major enabler of the genocide in Darfur because 70-80 percent of the
income generated from Sudan’s lucrative revenue sharing agreement with CNPC is
funneled into Sudan’s military.
- The notion that PetroChina is
not implicated in CNPC’s tainted relationship with Khartoum is incorrect.PetroChina is linked to CNPC through a
collaborative and reciprocal relationship. This close relationship includes
ongoing transfers of assets between parent and subsidiary and significant
management overlap. Therefore, it is quite appropriate and important to
pressure the subsidiary, PetroChina, as a tactic to influence the parent, CNPC.
This relationship has been clear at least since Harvard University announced
divestment from PetroChina on April 4, 2005, citing the “extensive role of
PetroChina’s closely affiliated parent.” At that time, Harvard’s president,
Lawrence Summers, noted the “compelling case for action.” Harvard has since
been joined by a growing number of
institutions and individuals, including Yale University and the state of
California and its Governor Arnold Schwarzenegger, who have also determined
that the ties between PetroChina and CNPC are so intimate that divestment is
warranted.
Contrary to your assertions otherwise, economic pressure on CNPC through US holdings in PetroChina can be an important and effective factor to change China’ s approach towards Sudan diplomacy, especially given how highly China prizes its Sudan oil assets. This belief is widely supported by academic and policy experts with extensive knowledge regarding Sudan and its government.
Given these facts, we ask that Berkshire Hathaway, as well as other financial institutions with extensive holdings in PetroChina, take immediate and decisive action. The acceptable options are either to strenuously and publicly engage PetroChina to effect a change in the behavior of the government of Sudan or to divest. The moral imperative is clear. In the face of genocide, there are limits to business as usual. Would you have invested in firms that sought to make a profit by selling Zyklon-B gas to the Nazis or machetes for the genocide in Rwanda?
Mr.
Buffett, you are one of the most generous individuals in the world, and your
company, Berkshire Hathaway, is one of America’s most admired. We ask that you
live up to this reputation by taking responsible action to confront the
genocide in Darfur. This genocide is ongoing, authoritatively documented,
widely and publicly discussed, and formally recognized by Congress, two
Secretaries of State, and the President of the United States. Berkshire
Hathaway’s large holdings in PetroChina provide you with a unique opportunity
to take action that will make a difference. We hope that you will step forward
and do so.
Eric Cohen
Chair,
Fidelity Out Of Sudan campaign