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CONCLUSION

We cannot ignore nor fail to correct the growing power of these giant multinational concerns. They feel no allegiance to any national entity. They support no government on ideological grounds. They have no qualms about investing in democratic or totalitarian, capitalistic or socialistic, civilian or military governments as long as their profit goals can be realized.

Let me conclude with a reference to public opinion. Sentiment against multinationals runs so high, that the public—by a margin of almost two to one-currently thinks that the Federal government should discourage, rather than encourage, the international expansion of U.S. companies. Many more simply do not buy the idea that corporate growth abroad has increased employment at home. Seven Americans out of ten are convinced that the main reason U.S. firms go abroad is “to take advantage of cheap foreign labor and that this costs jobs here."

Here are the results of a nationwide public opinion survey conducted by the Opinion Research Corporation for businessmen. Forty-two percent of total public opinion is strongly opposed to expansion of U.S. companies abroad. Even a majority of the managers are opposed to expansion (37 percent opposed against only 30 percent in favor of expansion). Perhaps most surprising are the results when broken do by party preference. Even the majority of Republican voters are on my side in this controversy. Republicans strongly oppose expansion 40 percent opposed to 30 percent in favor.

The Foreign Trade and Investment Act of 1973 is designed to put our industry on an even footing with foreign competition and make domestic investment just as attractive as investment abroad. By controlling predatory trade practices and regulating the American based transnational firm, the Hartke approach to trade policy will put America back on the path to a world of free and fair trade.

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Overall, the Public Favors Curtailment of U.S. Companies'
Expansion Abroad by Almost a Two-to-One Margin.
"In
your opinion, do

you think the federal government should encourage the expansion of U.S.
companies abroad, or discourage their expansion?"

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"Take no action," "No opinion" omitted.

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WORLD'S 15 LARGEST MANUFACTURING CORPORATIONS RANKED BY ASSETS IN 1972

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11 Exxon.
12 Royal Dutch/Shell Group--

3 General Motors. 14 Texaco.

5 Ford Motor. 6 IBM. 17 Gulf Oil.. 18 Mobil Oil. 9 Nippon Steel

$21, 558, 257

20,066, 802 18, 273, 382 12, 032, 174 11,634,000 10, 792, 402 9, 324,000 9, 216, 713 8,622, 916 8,617,897 8, 161, 413 8,084, 193 7, 401, 800 7, 264, 272 7, 088, 636

$20, 309, 753
14,060, 307
30, 435, 231
8, 692, 991
20, 194, 400
9,532, 593
6, 243, 000
9, 166, 332
5, 364, 332
8,556, 826
5, 711, 555
5,829, 487
10, 239, 500
3, 980, 559
2, 747, 973

12

10 I.T.T. 111 British Petroleum 112 Standard Oil (Calif.)

13 General Electric. 14 Mitsubishi Ind. 15 END

8 17 11 15 14

22 25

1 Indicates one of the "Seven Sisters".
Source: Fortune Magazine, May and September, 1973.

30-229--74--Pt. 4-27

U.S. DIRECT FOREIGN INVESTMENT AND RATES OF RETURN, 1972 AND 1971

1971

Rate of return 8

Total 1 2

Rate of
return 3

Manufac

turing

Rate of
return 3

Petroleum

Rate of
return 3

9.0 10.3 11.6

7.2 12. 1 Loss

5, 311
4,267
6,992.
2,469
2, 346
1, 807

887

8.5
6. 9

1.7
21.3
10.2
133.9

9.8

24, 105 15, 789 27, 740 3,836 4,857 1,661 3, 939

8. 1
9.5
9.7
17.5
13.0
113. 1

9.4

10,590

4,999
19, 820

611
1, 748

92
1, 973

5, 149
4, 195
6, 192
2, 283
2,033
1,464

791

14.0

7.6 10.7

8.1 126.8

8.6

26, 399

17.2

86. 198

11.9

35, 632

10.8

24, 152

16.0

1972

Total 12

Rate of
return 3

Manufac

turing

Rate of return 3

Petroleum

Canada
Latin America
Europe 15
Africa
Asia (without Middle East).
Middle East
Australasia.

25, 784
16,644
30, 714
4,111
3, 309
2,053
4,368

8.7
9.2
12.0
16.6
11.0
119.4
10.0

11,587

5, 565
17, 462

605
2,043

104
2,112

10.0
11.8
14.6

7.3
16.0

7.7
11.1

Total (free world minus United

States).

94,631

13. 2

39, 478

12.7

1 Book value of all foreign direct investment at end of year (this B1 table does not report "mining
and smelting" and other industries" separately as does Department of Commerce, but B1 does
include such investments in columns representing totals. 1972 figures are preliminary and will be
revised next year.

2 1972 data is preliminary; 1971 data differs from that published a year ago in B1 since Department
of Commerce this year reports revised 1971 data.

: Definitions: Direct foreign investment total (dollar figures) represent year-end book values
(i.e., assets less debts or "net assets"). Rate of return (percent figures) represent net earnings (ie
parent share of foreign subsidiary plus branch earnings) divided by book values. Net earnings of
foreign subsidiaries equal parent equity in earnings after provision for foreign income taxes, perferred
dividends, and interest payments; while net earnings of foreign branches are after foreign income

taxes but before depletion charges and U.S. taxes. n.a.--Not available (i.e., either less than $500,000
plus or minus or combined in other accounts).

4 Sum of country figures not equal to area total since some 12 smaller West European countries
such as Austria and Portugal (all representing end-1972 book value of $1,318,000,000) are included
in total.

5 Direct investment figures for Europe do not include any investments in Eastern European (Come-
con) countries.

Sum of country figures not equal to area total since some smaller African countries are included
in total.
Source: Business Internatoinal, Nov. 23 1973.

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1963 1964 1965 1966, 1967 1968 1969 1970 : 1971 1972 1973 1973 1974

Jan. Oct. Jan.. thru

thru Sept. Dec.

Mar.

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