of paragraphs (A), (B), and (C) of section 202 (a) of the National Emergencies Act. (2) The provisions of this section supersede the termination provisions of section 101 (a) and of title II of the National Emergencies Act to the extent that the provisions of this section are inconsistent with these provisions. (d) If the President uses the authority of this section to continue prohibitions on transactions involving foreign property interests, he shall report to the Congress every six months on the use of such authority. Sec. 208. If any provision of this Act is held invalid, the remainder of the Act shall not be affected thereby. TITLE III—AMENDMENTS TO THE EXPORT ADMINISTRATION ACT OF 1969 6. Johnson Act-Financial Transactions With Foreign Governments 1 2 Partial text of Public Law 80-772 [H.R. 3190], 62 Stat. 744; 18 U.S.C. 955, approved June 25, 1948 Whoever, within the United States, purchases or sells the bonds, securities, or other obligations of any foreign government or political subdivision thereof or any organization or association acting for or on behalf of a foreign government or political subdivision thereof, issued after April 13, 1934, or makes any loan to such foreign government, political subdivision, organization or association, except a renewal or adjustment of existing indebtedness, while such government, political subdivision, organization or association, is in default in the payment of its obligations, or any part thereof, to the United States, shall be fined not more than $10,000 or imprisoned for not more than five years, or both. This section is applicable to individuals, partnerships, corporations, or associations other than public corporations created by or pursuant to special authorizations of Congress, or corporations in which the United States has or exercises a controlling interest through stock ownership or otherwise. While any foreign government is a member both of the International Monetary Fund and of the International Bank for Reconstruction and Development, this section shall not apply to the sale or purchase of bonds, securities, or other obligations of such government or any political subdivision thereof or of any organization or association acting for or on behalf of such government or political subdivision, or to making of any loan to such government, political subdivision, organization, or association. 1 For text of Foreign Agents Registration Act of 1938, as amended (Public Law 75-583), see page 648 of text. For text of Logan Act-private correspondence with foreign governments (Public Law 80-722), see page 664. (159) 7. Foreign Investment in the United States a. Foreign Investment Study Act of 1974 Public Law 93-479 [S. 2840], 88 Stat. 1450, approved October 26, 19741 AN ACT To authorize the Secretary of Commerce and the Secretary of the Treasury to conduct a study of foreign direct and portfolio investment in the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Foreign Investment Study Act of 1974". SEC. 2. The Secretary of the Treasury and the Secretary of Commerce are hereby authorized and directed to conduct a comprehensive, overall study of foreign direct and portfolio investments in the United States. SEC. 3. The Departments of Commerce and Treasury, in consultation with appropriate agencies, shall determine the definitions and limitations of direct and portfolio investments for the purposes of the study uthorized in section 2 of this Act. SEC. 4. In carrying out the study described in section 2 of this Act, the Secretary of Commerce and the Secretary of the Treasury shall, respectively and jointly as may be appropriate (1) identify and collect such information as may be required to carry out the study authorized in section 2 of this Act; (2) consult with and secure information from (and where appropriate the views of) representatives of industry, the financial community, labor, agriculture, science and technology, academic institutions, public interest organizations, and such other groups as the Secretaries deem suitable; and (3) consult and cooperate with other government agencies, Federal, State, and local, and, to the extent appropriate, with foreign governments and international organizations. SEC. 5. The Secretary of Commerce shall carry out that part of the study authorized in section 2 of this Act relating to foreign direct investment, and shall, among other things, to the extent he determines feasible, specifically (1) investigate and review the nature, scope, magnitude, and rate of foreign direct investment activities in the United States; (2) survey the reasons foreign firms are undertaking direct investment in the United States; (3) identify the processes and mechanisms through which foreign direct investment flows into the United States, the financing methods used by foreign direct investors, and the effects of such financing on American financial markets; (4) analyze the scope and significance of foreign direct investment in acquisitions and takeovers of existing American enterprises, the significance of such investments in the form of new 115 USC 78b note. facilities or joint ventures with American firms, and the effects thereof on domestic business competition; (5) analyze the concentration and distribution of foreign direct investment in specific geographic areas and economic sectors; (6) analyze the effects of foreign direct investment on United States national security, energy, natural resources, agriculture, environment, real property holdings, balance of payments, balance of trade, the United States international economic position, and various significant American product markets; (7) analyze the effect of foreign direct investment in terms of employment opportunities and practices and the activities and influence of foreign and American management executives employed by foreign firms; (8) analyze the effect of Federal, regional, State, and local laws, rules, regulations, controls, and policies on foreign direct investment activities in the United States; (9) compare the purpose and effect of United States, State, and local laws, rules, regulations, programs, and policies on foreign direct investment in the United States with laws, rules, regulations, programs, and policies of selected nations and areas where such comparison may be informative; (10) compare and contrast the foreign direct investment activities in the United States with the investment activities of American investors abroad and appraise the impact of such American activities abroad on the investment activities and policies of foreign firms in the United States; (11) study the adequacy of information, disclosure, and reporting requirements and procedures; (12) determine the effects of variations between accounting, financial reporting, and other business practices of American and foreign investors on foreign investment activities in the United States; and (13) study and recommend means whereby information and statistics on foreign direct investment activities can be kept current. SEC. 6. The Secretary of the Treasury shall carry out that part of the study authorized in section 2 of this Act relating to foreign portfolio investment, and shall, to the extent he determines feasible, specifically (1) investigate and review the nature, scope, and magnitude of foreign portfolio investment activities in the United States; (2) survey the reasons for foreign portfolio investment in the United States: (3) identify the processes and mechanisms through which foreign portfolio investment is made in the United States, the financing methods used, and the effects of foreign portfolio investment on American financial markets: (4) analyze the effects of foreign portfolio investment on the United States balance of payments and the United States international investment position: (5) study and analyze the concentration and distribution of foreign portfolio investment in specific United States economic sectors; (6) study the effect of Federal securities laws, rules, regulations, and policies on foreign portfolio investment activities in the United States; (7) compare the purpose and effect of United States, State, and local laws, rules, regulations, programs, and policies on foreign portfolio investment in the United States with laws, rules, regulations, programs, and policies of selected nations and areas where such comparison may be informative; (8) compare the foreign portfolio investment activities in the United States with information available on the portfolio investment activities of American investors abroad; (9) study adequacy of information, disclosures, and reporting requirements and procedures; and (10) study and recommend means whereby information and statistics on foreign portfolio investment activities can be kept current. POWERS SEC. 7. (a) The Secretary of Commerce and the Secretary of the Treasury may each by regulation establish whatever rules each deems necessary to carry out each of his functions under this Act. (b) Each such Secretary may require any person subject to the jurisdiction of the United States (1) to maintain a complete record of any information (including journals or other books of original entry, minute books, stock transfer records, lists of shareholders, or financial statements) which such Secretary determines is germane to his functions in the foreign direct investment and foreign portfolio investment studies to be conducted pursuant to this Act; and (2) to furnish under oath any report containing whatever information such Secretary determines is necessary to carry out his functions in such studies. Whenever an order under clause (2) of this subsection requires a person to produce information which can be specifically identified as being part of the records of its customers, the Secretary shall, upon being provided the names and addresses of such customers, send a notice to such customers that information from their records will be disclosed pursuant to this Act; Provided, That this requirement shall not apply when such person is directly involved in the ownership or management of assets for the customer as nominee, agent, partner, fiduciary. trustee, or in a similar relationship. The authority of each Secretary under this subsection shall expire on the date provided under section 10 of this Act for the Secretary of Commerce and the Secretary of the Treasury to submit a full and complete report to the Congress. (c) In addition to the Secretary of Commerce and the Secretary of the Treasury, the only individuals who may have access to information furnished under subsection (b) (2) are those sworn employees, including consultants, of the Department of Commerce or Department of the Treasury designated by the Secretary of either such Department. Neither such Secretary nor any such employee may (1) use any information furnished under subsection (b) (2) except for analytical or statistical purposes within the United States Government; or |