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JUNE 5, JULY 17, 24, 29, SEPTEMBER 11, 18, AND 30, 1975
Printed for the use of the Committee on International Relations
U.S. GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents U.S. Government Printing Office,
COMMITTEE ON INTERNATIONAL RELATIONS
THOMAS E. MORGAN, Pennsylvania, Chairman
CLEMENT J. ZABLOCKI, Wisconsin
L. H. FOUNTAIN, North Carolina
CHARLES WILSON, Texas
DONALD W. RIEGLE, JR., Michigan
CARDISS COLLINS, Illinois
STEPHEN J. SOLARZ, New York
HELEN S. MEYNER, New Jersey
DON BONKER, Washington
WILLIAM S. BROOMFIELD, Michigan
EDWARD G. BIESTER, JR., Pennsylvania
BENJAMIN A. GILMAN, New York
ROBERT J. LAGOMARSINO, California
THOMAS R. KENNEDY, Subcommittee Staff Consultant
THOMAS E. POPOVICH, Minority Subcommittee Staff Consultant
Butler, Michael F., Vice President and General Counsel, Overseas Pri-
Feldman, Mark B., Deputy Legal Adviser, Department of State----.
Stern, Thomas P., Deputy Director of the Bureau of Politico-Military
MATERIAL SUBMITTED FOR THE RECORD
Statement by Hon. Philip A. Loomis, Commissioner, Securities and Ex-
Assistant Commissioner Burke W. Willsey, on the question of cor-
Donald I. Baker, entitled, "Antitrust and World Trade: Tempest in
THE ACTIVITIES OF AMERICAN MULTINATIONAL
THURSDAY, JUNE 5, 1975
HOUSE OF REPRESENTATIVES,
COMMITTEE ON INTERNATIONAL RELATIONS,
The subcommittee met at 2 p.m. in room H-236 of the Capitol, Hon. Robert N. C. Nix (chairman of the subcommittee) presiding. Mr. Nix. The subcommittee will be in order.
During the last few weeks, charges that American corporations have maintained secret funds for the payment of gratuities to foreign government and political officials have been made and substantiated by the Securities and Exchange Commission and the Civil Aeronautics Board.
Such payments to foreign officials are not a violation of American law at present, although they are very often a violation of foreign law. However, it is a requirement of the United States Code that American corporations make full disclosure of their assets and liabilities to the Securities and Exchange Commission, the Civil Aeronautics Board, and the Internal Revenue Service. It is also true that if the purpose of the payments was anticompetitive in intent, the Antitrust Division of the Department of Justice would have a basis to begin legal proceedings.
The important point to remember as we begin our deliberations is that the American legal system is working. We are here because agencies of the American Government have without fear or favor brought serious charges and backed them up. We may need improvements in our laws. There is always room for improvement. But we can be proud of the actions of our own Government in these cases.
There has been a negative impact on our foreign policy already because of these revelations. Perù has expropriated property of the Gulf Corp. in that country. Costa Rica is considering expropriation legislation and other countries in Latin America may be considering such steps. The interference in democratic elections with corporate gifts undermines everything we are trying to do as a leader of the free world. Bolivia and the Republic of Korea are cases in point.
We will hear today from Congressman Solarz, a member of our subcommittee, who has taken a great interest in this issue and is the author of legislation bearing on this problem.
Mr. Mark Feldman, Deputy Legal Adviser of the Department of State, will discuss with us the broad aspects of international law and our own law which bear on this problem. Mr. Michael Butler, General