The General Assembly of the Presbyterian Church (U.S.A.) adopted a policy of "phased, selective divestment" from certain American corporations operating in Israel beginning in 2004, as a means of influencing the government of Israel. This policy has been controversial both within and outside of the denomination, even resulting in charges of antisemitism. The policy was changed in 2006 by another vote of the General Assembly.
Divestment
The church stated in 1971 (UPCUSA) and 1976 (PCUS) that it has a responsibility to ensure that its funds (such as the Pension Trust for Retired Church Workers) be invested responsibly and consistent with the church's mission. The reunited church formed the Committee for Mission Responsibility Through Investing (MRTI) in 1986. The MRTI Committee carried out the General Assembly's wish to engage in shareholder activism and as a last resort, divest itself of companies which contravened the GA's position. Divestment follows a phased process that starts with attempted dialog and shareholder resolutions and ultimately the total sale of and future ban on the church's holdings in a company. The church did so with companies cooperating with the apartheid regime in South Africa. As of 2007, the PC(USA) has divested itself from nineteen companies involved in military-related production (large contractors, manufacturers of anti-personnel landmines and weapons of mass destruction), tobacco companies, and companies engaged in or supporting governments in human rights violations. In the latter category, the church most recently divested itself from Talisman Energy, which was accused of collaboration with the Sudanese government. After Talisman withdrew from Sudan, the General Assembly voted to remove it from the divestment list.
Early communications with Israel
In March 2002, General Assembly Clerk Clifton Kilpatrick sent a letter to Israeli prime minister Ariel Sharon stating in part, "While we do not condone the acts of violence by certain Palestinian extremists, we are appalled that Israel, in response, has continued to punish the entire Palestinian population and its leaders who have been your government's partners in the peace process."
2004 General Assembly resolution
In June 2004, the PC(USA) General Assembly met in Richmond, Virginia, and adopted by a vote of 431–62 a resolution that called on the church's committee on Mission Responsibility Through Investment "to initiate a process of phased, selective divestment in multinational corporations operating in Israel". The resolution expressed the church's support of the Geneva Accord, said that "the occupation ... has proven to be at the root of evil acts committed against innocent people on both sides of the conflict", "the security of Israel and the Israeli people is inexorably dependent on making peace with their Palestinian neighbors", "horrific acts of violence and deadly attacks on innocent people, whether carried out by Palestinian suicide bombers or by the Israeli military, are abhorrent and inexcusable by all measures, and are a dead-end alternative to a negotiated settlement", that the United States government needed to be "honest, even-handed broker for peace", supported the idea of a United Nations peacekeeping force to ensure security in Palestinian territory, and urged "the U.S. government, the government of Israel, and the Palestinian leadership to move swiftly, and with resolve, to recognize that the only way out of this chronic and vicious impasse is to abandon all approaches that exacerbate further strife, lay aside arrogant political posturing, and get on with forging negotiated compromises that open a path to peace". A second resolution passed "Calling for an End to the Construction of a Wall by the State of Israel". The resolution opposed the construction of the Israeli West Bank barrier, regardless of its location, and opposed the United States government making monetary contribution to the construction. In separate votes, the General Assembly also adopted policies rejecting Christian Zionism as being incompatible with Presbyterian theology on the grounds of it being an offshoot of premillennial dispensationalism.
Criticism of resolution
Together, the resolutions caused dissent within the church and some friction with the Jewish community. Leaders of several American Jewish groups communicated to the church their concerns about the use of economic leverages that apply specifically to companies operating in Israel. Other critics of the divestment policy accused church leaders of antisemitism.