Conference 7.286::digital

    There is a gentlemen in Harrisburg, PA by the name of Mark Reynolds who
    is expecting an offer to be a Sales Manager in South Africa.  Mark's
    DTN is 348-4922.  He returned this week from a series of interviews in
    Geneva for the job.  Mark, until the end of this fiscal year, is the
    Account Set Manager for the Public Sector Group in  Harrisburg.  I'm
    sure he could give you any information you need about the Digital
    subsidiary which is being created in South Africa.
    
    Regards,  

    
    	There was a spot on CNN this week about DEC's early re-involvement
    	with SA.
    	/john

    The following contacts were on the original press release:
    
            Mark Fredrickson - DTN 223-4930
            Ken McDonnell - DTN 223-1035
    
    Regards,
    
    Leslie

    Yes, Mark Fredrickson and I handled the May 25 public announcement of
    Digital's entry into South Africa. BTW, the U.S. press has given
    Digital a very positive response to this announcement, based largely on
    what we believe to be an unprecedented endorsement by the African
    National Congress (ANC) under Dr. Nelson Mandela. This endorsement,
    given by a representative of Dr. Mandela at a reception in Johannesburg
    hosted by the U.S. ambassador to SA, Princeton Lyman, before some 200
    of SA's key business leaders, cited the "momentus occasion" of the
    entry of Digital into SA. Among other things, this statement says, the
    "...distribution of Digital materials inside South Africa ... becomes a
    step towards the development of a new economy that we so urgently
    need..."
    
    I will be pleased to enter the entire ANC statement into this
    conference if anyone would like to see it, as well as Digital's press
    release. In addition, I will be happy to FAX or e-mail anyone the
    announcement material.
    
    A key element of this announcement was the introduction of Project
    REACH, an innovative communinity educational development program
    sponsored by Digital and adapted exclusively for SA youth from a
    similar, highly successful program in Boston's inner city. 
    
    Education is a critical need in SA, where very, very few young people
    from the historically disadvantaged communities ever finish their
    schooling. The goal of REACH is to help young people stay in school so
    they may provide the kind of leadership needed to raise SA out of the
    deep recession plaguing the nation.
    
    Suggest your contact the Project REACH director, Vikkee Love, who will
    be relocating from Maynard to Johannesburg to assume a new role as
    Marketing and Business Development Director for the new Digital
    subsidiary. Vikkee is @MLO, DTN 223-2556. She can provide information
    on the question about the university customer who recruits students
    from SA. 
    
    John Sims, Vice President for Strategic Resources, was on hand in SA to
    make this historic announcement for Digital. Our announcement followed
    several years of intensive preparation, including consultation with all
    the key political and anti-apartheid groups both here and in SA,
    including Dr. Mandela. In fact, Alison Cooper of the Washington DC
    based Investor Responsibility Research Center, was quoted in the Boston
    Globe as saying, "They [Digital] clearly have done their homework on
    this issue. I don't know of any other company that the ANC has given
    this kind of endorsement to in a public way." 
    
    
    Ken
    DTN 223-1035

From:	WRKSYS::EXPAT::VNS "The VOGON News Service  16-Aug-1993 0408" 16-AUG-1993 05:00:02.20
To:	VNS-Distribution
CC:	
Subj:	VNS #2893  Mon 16-Aug-1993

<><><><><><><><>  T h e   V O G O N   N e w s   S e r v i c e  <><><><><><><><>

 Edition : 2893               Monday 16-Aug-1993            Circulation :  6653 

 Digital - Massachusetts to penalize Digital for South Africa unit
	{The Boston Globe, 12-Aug-93, p. 1}
   When Digital announced in May that it was opening a marketing subsidiary in
 South Africa, the Maynard-based company stressed that it was working in close
 cooperation with antiapartheid forces.  It even released the text of a speech,
 in which the treasurer-general of the African National Congress termed
 Digital's arrival cause for "celebration."
   But even the ANC's endorsement isn't enough for the state of Massachusetts.
   Under a 1990 executive order, the state must add a 10% penalty to bids
 submitted from Digital because it operates in South Africa.  And according to
 the law, state pension funds that invest in Digital must dump their stock.
   Bruce Holbein, assistant general counsel for the computer maker, said that
 Digital has asked the state to waive the 10% penalty because it "followed the
 spirit of the executive order" aimed at ending apartheid.  But Susan Beck,
 general counsel for the executive office of administration and finance,
 contents that no such waiver exists.
   While saying that "issue is under advisement," Beck pointed out that the
 original order, signed by Gov. Michael Dukakis, sets forth specific conditions
 under which the state can exempt companies.  But the regulations "don't
 forsee this kind of situation," she said.
   Although he declined to provide numbers, Holbein described the state as a
 "significant customer, and we value their business."  He added that "it is
 very frustrating for us.  We took the risk to do what we thought was the right
 thing.  We were responding to the ANC's calls for foreign investment."
   After shunning South Africa for two decades, Digital announced in May that
 it would set up a marketing unit just outside of Johannesburg.  Both Digital
 officials and other observers had been expecting the US government to lift
 trade sanctions with South Africa around July 1, when Digital planned to open
 its doors.  It hasn't yet happened.  "Digital broke out of the block too
 fast," said state Rep. Byron Rushing (D-South End).  "They made a mistake."
   The company first began appealing to the Weld administration to make an
 exception in late June, Rushing said.  He said that the Digital lobbyist who
 called him earlier this week received an unsympathetic ear.  "Digital should
 just live with it," Rushing said yesterday.  "They should just take their
 lumps."
   About a year and a half ago, Cambridge-based Lotus Development similarly
 began doing business in South Africa.  But Rebecca Steel, a spokeswoman for
 the $900 million software company, said that Lotus does not sell directly to
 the state, but uses resellers.  Rushing said that the "numbers are much
 smaller for Lotus, anyway."
   But Holbein said that Digital - which has recently turned a quarterly
 profit for the first time in two years - wants to be included in the state's
 pending "blanket procurement," a catalog for state agencies looking for
 products and services.  "If our price in the catalog was increased by 10%,
 that would be very detrimental," Holbein said.  "What we are doing now is
 supporting and accelerating the end of apartheid so it is consistent with the
 underlying intend [sic - TT] of the executive order."
   According to Holbein, the state must make a decision by Sept. 3.  "We
 believe that they are taking it under serious consideration," Holbein said.
 "We have an open and active dialog with them."
   If Digital were to receive some sort of exemption, it would not affect
 pension investments in the company's stock.  By law, public pension funds must
 divest their Digital stock within three months of Digital's entry into South
 Africa.  Paul Doane, executive director of the Pension Reserve Management
 Board, said that "by the end of this month, I would anticipate we would be
 fully divested from Digital."
   While Holbein said that Digital had not anticipated the state's reaction,
 Rushing said that Digital "knew what was going to happen.  This is not a
 surprise to them."  Rushing said that John L. Sims, the Digital VP who shaped
 the company's South Africa strategy, sent him a note last week asking for his
 support.
   Sims, who retired from Digital last week, did not return two messages left
 at his home.
   When it announced its plans to enter South Africa, Digital said that it had
 worked with several officials over two years, including ANC president Nelson
 Mandela.  Digital's approach involved setting up a black-owned computer
 company to serve as its partner in South Africa, as well as starting a branch
 of Project Reach, a youth leadership program.
   The executive order states that companies can be exempted from the 10%
 penalty only if they are providing parts or service for existing equipment,
 offering medical supplies for which there is no substitute, have pre-existing
 contractual agreements with the state, or are operating in South Africa for
 news-gathering purposes.  "We're sympathetic to what Digital is saying, but it
 doesn't fit with the waiver provisions that exist," said Beck.
   She said that "we cannot lightly grant wavers of this important executive
 order before we are satisfied that the circumstances which led to the
 promulgation of the order have been resolved."

<><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>
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<><><><><><><><>   VNS Edition : 2893      Monday 16-Aug-1993   <><><><><><><><>

    Sounds like TAXachusetts is trying to be a dictator.  If we are moving
    out of the Mill, there is nothing left to hold us there.  I say get the
    H^&&*^ out of there.  Move Corporate headquarters to another place...
    with less taxes and fewer dictator laws.
    
    

    re .7
    
      Spend a lot of time on that entry I bet.  
    
    >out of the Mill, there is nothing left to hold us there.
                      ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
    
    Briefly, Digital in MA consists of:
    	33 sites in 22 communities
    	20,051 employees
    	over 7 million sqft of building space
    	employees donated (with corp match) over $1.25m t nonprofit orgs
    	another $1.5m went to various United Ways
    	just under 20,000 employees live in MA
    
    
    Maybe I'm wrong but it kinda looks like there is a lot keeping Digital
    in MA.  Did I miss something?  Something that makes sense that is.
    
    Respectfully,
    
    Marv
     

    
    re .7 & .8
    
    Was the author of .7 possibly suggesting that Digital change the stae
    in which it is ioncorporated? (Probably a long and involved process) 
    

    
    I used to live in New Hampshire, and work in Mass.  So, I paid Mass 
    (high) income tax and New Hampshire (high) property tax. 
    
    Although I am out of both states now, you won't get my vote to stay
    in Mass.  
    
    I would also "guess" that your figures are not quite right.  If there
    ***are*** 20,051 employees in Mass. then I would bet that less than
    20,000 live there.  I (used to be able to) name more than 51 employees
    who lived in another state, and worked in Mass.
    
    The point is, that Mass is trying to get companies every which way they
    can.  

    Marv's figures may *not* be wrong.  There are *many* Massachusetts
    residents who work in NH for example (talk about the worst of both
    worlds - you get to pay the high MA taxes, but if you get laid off, you
    get NH's lousy unemployment).
    
    
    Susan

    
    that's the risk you take to avoid the Mass income tax.

    Say wha'? If you live in MA and work in NH, you *pay* MA income tax.

    RE a few notes back - I'm not clear on how moving the company out of MA
    would cause us to get more favorable contracts with the state. The note
    describing the sanctions were with respect to business done with the
    state itself, not in general, and I'd assume the same sanctions would
    apply to out-of-state companies who were "guilty" of the same "crimes".
    

    There is more then the 50K peoples incmoe taxes involved.  There are
    also business taxes, property taxes, service industry support.  Digital
    is still (I think) the number 1 employer in MA.  Now if we move
    engineering to Texas, Michigan or Oregon (3 states that are very
    aggressive about recruiting new industry) MA would lose big time.
    
    Maybe we don't have to move, just threaten to.
    
    Larry
    

    Digital is the # 2 employer in Mass., Raytheon is # 1.

    
    
        O.K., I'll plug New Mexico for the location, Land Of Enchantment,
    	and it won't take much to be number one at anything..........
    	except nuclear fision.
    
    			Pablo
    
    

    re: .16
    
    That's fission Pablo, fission. :)
    
    --- Gavin

    Re: .6, readers may want to refer to the editorials that appeared in
    the August 14 issue of the Boston Globe ["A misplaced penalty on
    Digital"] and the August 16 issue of the Quincy, MA, Patriot Ledger
    ["Lift sanctions on South Africa"]. Both are supportive of Digital's
    entry into South Africa and our much-needed investment in the new South
    Africa. Both are critical of "onerous and misguided state sanctions,"
    as the Globe opined.
    
    I'll be pleased to input the full text of these pieces if readers would
    like to see them.
    
    Ken
    
    

    Isn't it "Digital is the #2 Industrial Private Employer in Massachusetts"?
    
    "The telephone company" is usually the number 1 non-public employer
    in any state, thaough that may have chenged after the breakup of Ma
    Bell.  Then, of course, Massachusetts might even have more employees
    than DEC.
    
    ed

    Digital South Africa:        Primary Language: English.
    
    For VTX ELF; Location: JHB,  Node: JOBURG.
    
    For locations in South Africa, See VTX Sites.  Location: JHB
                                                   Mailstop: JHB/02
    
    DTN:7-756     Operator: Directline:*27-11-884-6283.
                  Afterhrs: Directline:*27-11-320-4380.
                  Operator:        DTN:     7-756-4380.
    
    

        Digital South Africa:        Primary Language: English.
    
        For VTX ELF; Location: JHB,  Node: JOBURG.
    
        For locations in South Africa, See VTX Sites.  Location: JHB
                                                       Mailstop: JHB/02
    
        DTN:7-756     Switchboard: Directline:*27-11-320-4300
                      Operator:    Directline:*27-11-884-6283.
                      Afterhrs:    Directline:*27-11-320-4380.
                      Operator:           DTN:     7-756-4380.
                      Fax:                    *27-11-320-4342
    
                                                         

      Digital South Africa: 
                     
      Physical Address 
      
      Digital South Africa
      Digital House
      Norwich Park, Park Lane
      Sandton, Johannesburg
      South Africa
    
      Postal Address
    
      Digital South Africa
      P.O.Box 651042
      Benmore 2010
      South Africa.

    re -: last two
    
    Hello Ivan,
    
    	Strange where you crop up every so often.
    
    Ian

    Big Bro' is WATCHIN!!!!

    Digital South Africa - 
    
    For those who have companies with Branches/Subsiduaries in South Africa...
    
    Service Calls (Multivendor Customer Services) in South Africa 
    call Tollfree 0-800-115-339  or Direct [*27] (0)11 320 4300
    
    -------------------------------------------------------------------------
    

    Digital South Africa Cape Town Branch Office. - Primary Language: English.
    
    For locations in South Africa, See VTX Sites.  Location: CPT
    Mailstop: CPT/01
    
                DTN:none      Directline:*27-21-419-3730.
                              Directline:*27-21-419-3729.
                              Fax:       *27-21-419-3601
    
                                                        

    re .28
    Addional info : Cape Town, South Africa.
    Digital Sales & Services SA PTY (Ltd)
        Suite 2F, 2nd Floor
        Nautica, The Water Club,
        Granger Bay, Mouille Point,
        Cape Town, South Africa
    
        Telephone: *21 21 4193730
        Telephone: *21 21 4193729
        Fax      : *27 21 4173601
    

      re .28
        Addional info : Cape Town, South Africa.
        Digital Sales & Services SA PTY (Ltd)
            Suite 2F, 2nd Floor
            Nautica, The Water Club,
            Granger Bay, Mouille Point,
            Cape Town, South Africa
    
            Telephone: *21 21 419-3730
            Telephone: *21 21 419-3729
            Fax      : *27 21 419-3601