Disposition and implications This action was the first injunctive 6. (a) What provisions of Federal laws and regulations govern fundraising activities within the United States of either foreign or American citizens which are for political or related purposes abroad? (a) The provisions of Federal law governing the raising of funds, within the United States by American citizens or foreigners, which are used for political or related purposes abroad include 22 U.S.C. 441(a), 22 U.S.C. 448 and 22 U.S.C. 611 et seq. Solicitation and collection of funds and contributions by persons within the United States which are made on behalf of a foreign government are illegal only if the President has issued a proclamation in accordance with 22 U.S.C. 441(a), naming that foreign state as being in a state of war with another foreign state. 22 U.S.C. 448 (b) allows for solicitation and collection of funds and contributions to be used for medical aid assistance, or for food and clothing to relieve human suffering by any person or organization which is not acting for or on behalf of a "proclaimed" government. Additionally, a person or organization that engages in fund-raising activities within the United States for political or related purposes abroad is required to register under the Foreign Agents Registration Act and disclose the nature of his activities. 22 U.S.C. 611 (c) provides that an agent of a foreign principal is "a person any of whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in major part by a foreign principal, and who directly or through any other person . . . within the United States solicits, collects, disburses, or dispenses contributions, loans, money, or other things of value for or in the interests of such foreign principal." Therefore, such a person would be required to register under the Act, unless the funds and contributions solicited are to be used only for medical aid and assistance, or for food and clothing to relieve human suffering. Id. 117. 15. (a) What steps are taken when propaganda or similar material which is not labeled as required by law is brought to the Department's attention? Two procedures are followed when propaganda or similar material which is not labeled as required by law is brought to the Unit's attention: (1) If this is a first offense, the Unit writes the registrant a letter explaining section 4 of the Act and provides a sample label and/or meets with the registrant to resolve any difficulties. (2) In cases of repeated offenses, the Unit institutes a civil action enjoining the registrant from acting on behalf of the foreign principal until it complies with the requirements of the Act. As a part of this action, the Unit asks for affirmative relief which requires the registrant to place an advertisement stating the prior advertisement should have contained the proper label which is set forth and that this advertisement is being placed as a result of a civil action instituted by the Department of Justice. Id. 120. II. PROBLEMS OF SCOPE OF COVERAGE 1. (a) List the agents of foreign principals whose objective is tourist promotion who are now registered under the Act. The Registration Unit does not maintain a listing of agents by category of activity. However, the Attorney General's Report provides a list of all agents according to geographical area or nationality field which includes the type of activity engaged in on behalf of the foreign principals. (b) What public policy purposes are served by the registration of agents involved in tourist promotion? The public policy purposes served by the registration of agents involved in tourist promotion are: (1) Provides an opportunity to monitor promotional material which on occasion goes beyond mere tourist promotion and actually concerns itself with encouraging investment abroad or political statements. At the present time materials which relate to purely tourist matters are neither labeled nor placed on file; however, copies are requested for periodic review to insure that they do not depart from tourist promotion. Without such registration there would be no effective way to insure compliance with the Act. (2) Similarly such registrations provide the opportunity to monitor the expenditures of these registrants and to locate related support groups who in turn may have incurred an obligation to register. In addition, the figures related to expenditures are utilized by the Department of Commerce in balance of payments computations. Id. 124-125. 3. What problems have arisen concerning the applicability of the commercial exemption to “publicity agent" and "public relations counsel"? Frequently, these categories of registrants are engaged in the promotion of foreign airlines, ship and railroad travel by means of dissemination of promotional materials whereas the government agencies which directly engage in the actual activities of providing the means of travel are exempt from the registration provisions of the Act pursuant to section 3(d) and Rule 304 (b). This appears to be illogical; therefore, it may be appropriate to reconsider the 3(d) exemption for government entities. 4. What investigative powers does the Department of Justice have to inquire into the legitimacy of an attorney's claim to an exemption under section 3 (g)? The Department of Justice prefers, whenever possible, to resolve an attorney's claim for exemption under 3(g) at the administrative level. However, in those instances where this cannot be accomplished, the Department may investigate directly or through the FBI [Federal Bureau of Investigation] the validity of such claim. If such investigation should tend to reveal a willful evasion of the statute then a Grand Jury investigation would be recommended. 5. (a) What types of exemptions are available to agents of a foreign principal whose principal is a foreign government? All exemptions under section 3 are available to agents whose principal is a foreign government. However, difficulty is encountered in applying the 3(d) exemption to individuals and firms which provide support services to government owned airlines, ships and railroads. (b) List the foreign countries which have registered agents and the purpose for which each is registered. See current Report of the Attorney General to the Congress of the United States on the Administration of the Foreign Agents Registration Act of 1938, as amended, for calendar year 1975, which is in print and will be forwarded with a supplemental list of agents who have registered since January 1976. 6. (a) What are the requirements, if any, for filing a specific claim for exemption under the Act? If no specific claim for exemption is required, how are such cases handled and how can the Department be assured that all those who should register do, in fact, register? (a) Rule 300 provides that the burden of establishing the availability of an exemption from registration rests upon the person for whose benefit the exemption is claimed. In those instances where a potential registrant who has not been solicited for registration independently determines he is exempt, there is no requirement that he secure the concurrence of the Department in this determination. The Registration Unit relies on information from the FBI, other departments and agencies, Congress, media, public source documents and concerned citizens to insure that all agents are registered who should be registered. When it is determined that an agent has failed to register, there is a requirement that he file a report setting forth all activities occurring from the time he initially incurred his obligation to register. Consideration should be given to amending the Act to require that all agents request exemptions in writing and to the imposition of civil fines on those who act on behalf of foreign principals without requesting such exemption. Id. 125–126. 7. Are trade or industrial concerns which are owned or controlled by a foreign government treated differently than privately-owned trade or industrial concerns for the purposes of the section 3(d) commercial exemption? If so, what types of problems are encountered? Give several specific examples. Yes, if a trade or industrial concern is truly private, the 3(d) exemption applies. If the trade or industrial concern is not privately owned then other test factors must be utilized, such as, the major product test, i.e. the extent to which such trade or industrial activity directly promotes the public or political interest of the foreign government. The problems encountered include the difficulty in defining major product vis a vis the Gross National Product of a foreign country (.01%, 10% or 30% of GNP?) and the difficulty of deciding at what point a product is identified as "major" if the ultimate purpose of the enterprise is to increase sales. Another factor to be considered in determining whether a public interest is promoted is the impact of the activity on the balance of payments between the U.S. and the foreign country involved. 8. (a) Does any provision of Federal law require the reporting of the acceptance from a foreign government by U.S. Government personnel of transportation or other expenses for travel abroad? No Federal law directly requires the reporting of the acceptance of transportation or other expenses for travel abroad by U.S. Government personnel from a foreign government. 5 U.S.C. 7342 deals with receipt and disposition of foreign gifts and decorations generally. It should be noted that 22 U.S.C. 611 (c) (1) (iii) defines an agent of a foreign principal as being "a person any of whose activities are directly or indirectly supervised, directed, controlled, financed or subsidized in whole or in major part by a foreign principal and who directly or through any other person within the United States solicits, collects, disburses, or dispenses contributions, loans, money, or other things of value for or in the interest of such foreign principal." While this provision would require an agent of a foreign principal to report the payment of transportation or other expenses abroad for U.S. Government personnel enjoying such a gratuity, it does not obligate the government employee to make a report under the Act. (b) What regulations exist within the executive branch concerning acceptance of such gratuities by U.S. Government personnel? Executive Order 11222 of May 8, 1965, sets forth standards of conduct for government employees. Regulations regarding the acceptance of gifts, entertainment and favors by government personnel can be found at 5 C.F.R. 735.202, 735.203, and 735.305. Specifically, 5 C.F.R. 735.202(f) allows for the receipt of travel expenses where no United States Government payment or reimbursement is made, unless prohibited by law. Reporting requirements by employees are found at 5 C.F.R. 735.401 through 735.411. Each agency has the power to establish its own regulations regarding additional standards of ethical conduct and reporting requirements, and to implement the requirements of law and the Executive order. 5 C.F.R. 735.104. (c) Would a private U.S. organization which exists for the purpose of facilitating and financing travel to a foreign country by Americans to promote good will for the country in the U.S., and whose activities are financed by either the government or a private group in that country, be required to register under the Act? Such an organization would be required to register under the Act because its activities would fall within the definition of an "agent of a foreign principal." 22 U.S.C. 611(c)(1)(iii) provides that an agent of a foreign principal is "a person any of whose activities are directly or indirectly supervised, directed, controlled, financed, or subsidized in whole or in major part by a foreign principal, and who directly or through any person within the United States solicits, collects, disburses, or dispenses contributions, loans, money, or other things of value for or in the interest of such foreign principal." Under this definition, the financing of travel would be considered as an "other thing of value"; hence, an organization of the type described would be required to register. (d) What, if any, requirements are there for disclosure by members of the news media whose travel expenses are paid for by a foreign government or other foreign entity? There are no requirements for disclosure by members of the news media whose travel expenses are paid for by a foreign government or other foreign entity. 9. (a) What statutes are applicable to the recruitment in the U.S. of persons to serve in foreign (non-U.S.) military or paramilitary operations? The principal statute concerning the subject of recruitment within the United States for foreign military or paramilitary operations is contained in title 18, chapter 45 (Foreign Relations), of the United States Code. Specifically, 18 U.S.C. 959 (a) provides in part that: Whoever, within the United States . . . hires or retains another to enlist. . . in the service of any foreign . . . state. . . as a soldier . . . shall be fined not more than $1,000 or imprisoned not more than three years, or both. Thus, Section 959 prohibits the enlistment or recruitment within the United States of any person for service in the armed forces of a foreign country. Section 958 prohibits a United States citizen from accepting and exercising a commission in a foreign service in a war against a foreign nation with which the United States is at peace. Section 960 prohibits the launching of a military or naval expedition from the United States against any nation with which the United States is at peace. 18 U.S.C. 951 prohibits a person, other than a diplomatic or consular officer or attache, from acting in the United States as an agent of a foreign government unless he gives prior notification to the Secretary of State. A person in violation of this section may be fined not more than $5,000 or imprisoned not more than ten years, or both. The provisions of 22 U.S.C. 611 et seq., the Foreign Agents Registration Act, are applicable to recruiters within the United States of persons for foreign military operations, because one who recruits may fall within the definition of an "agent of a foreign principal." Section 611(c) (i), (ii), (iii). (b) Would a person involved in recruiting in the U.S. for such purposes be required to register under FARA [Foreign Agents Registration Act]? A person who recruits in the United States on behalf of a foreign principal is required to register under the Foreign Agents Registration Act. 22 U.S.C. 611 (c) defines an agent of a foreign principal. There are several ways in which a person involved in recruiting falls within this definition. A recruiter most likely is acting at the order, request, or under the direction of a foreign principal while performing the individual elements involved in recruiting. Therefore, such a person would be considered an agent of a foreign principal, and since he could not qualify for any specified exemption, he would be required to register pursuant to section 2. Specifically, he may be acting as an information-service employee, section 1(c) (1) (ii), or disbursing money or other things of value to recruits within the United States on behalf of his foreign principal, section 1(c) (1) (iii). Additionally, a recruiter may be engaging within the United States in political activities, section 1 (c) (1) (i), on behalf of a foreign principal. (c) If so, are any such agents now registered? Were any such agents registered in connection with the recent civil war in Angola? No persons involved in recruiting within the United States for foreign military operations are now registered under the Foreign Agents Registration Act. It should be noted that there are currently fifty-five cases under investigation by the FBI relating to recruitment within the United States for service in foreign military operations. Most of these investigations are being conducted under the Neutrality Act. It would be inappropriate to comment specifically on any current investigative efforts. 10. Is a person who plans a public relations campaign on behalf of a foreign government or political entity required to register although no action is taken by that person in the actual implementation of such a plan? A person who plans a public relations campaign on behalf of a foreign government or political entity may be required to register although no action is taken by that person in the actual implementation of such a plan. Section 2 of the Act provides that every person who becomes an agent of a foreign principal shall register with the Department. The implementation or success of such activity are not the criteria used to determine whether an obligation to register has been incurred. 11. Is it necessary for an individual or firm to be paid or subsidized by foreign funds in order to be termed a"foreign agent" under section 1 of the FARA? It is not necessary for an individual or firm to be paid or subsidized by foreign funds in order to be termed a foreign agent under section 1 of the Act. However, payment or subsidy are elements which can be used in proving direction or control by a foreign principal. 12. What provisions of law govern political contributions from foreign sources to candidates for office in the U.S. and which office in the Department has the responsibility for enforcement? What changes have been made in the law within the last five years and what was the justification for these changes? Title 2 U.S.C. 441e of the Federal Election Campaign Act amendments, effec tive May 11, 1976, governs political contributions from foreign sources to candidates for office in the United States. This section makes it unlawful for a foreign national to make any contribution in connection with an election for political office, or for any person to solicit or accept any such contribution from a foreign national. "Foreign national" means (1) a foreign principal as defined by section 1(b) of the Foreign Agents Registration Act, excluding citizens of the United States, or (2) an individual not a citizen of the United States and not lawfully admitted for permanent residence, as defined by section 101 (a) (20) of the Immigration and Nationality Act. (S U.S.C. 1101(a) (20).) 2 U.S.C. 411j provides the penalty for violations of section 441e. While section 441e states that it is unlawful for a foreign national to make any contribution, section 441j provides for a fine in an amount which does not exceed the greater of $25,000 or 300 percent of the amount of any contribution or expenditure made, imprisonment of not more than one year, or both, for any knowing and willful violation of a provision of the Federal Election Campaign Act which involves the making, receiving, or reporting of any contribution or expenditures having a value in the aggregate of $1,000 or more during a calendar year. It appears that a foreign national or a recipient is insulated from prosecution as long as he limits his political contributions or the receipt thereof to an aggregate of less than $1,000 per year. As the law stands now, enforcement lies with the Federal Election Commission. It has the power to investigate complaints, enter into conciliation agreements, and institute civil actions. The Commission may refer an apparent knowing and willful violation to the Attorney General. The Attorney General must report within sixty days to the Commission of any action taken by the Department of Justice regarding the apparent violation. The Registration Unit of the Internal Security Section of the Criminal Division would generally have juris |