countries. Accordingly, I will shortly sign into law the recently passed authorizing legislation for U.S. participation in the international development banks which require that the U.S. representatives to the banks oppose loans to gross violators (except where those loans are directed specifically to programs which serve the basic human needs of citizens of such countries).

Additionally, as we discussed earlier, I shall instruct the U.S. Executive Directors in the banks to oppose and vote against, throughout FY 1978, any loans to the seven countries mentioned in the House amendments. Our representatives will also oppose and vote against loans for the production of the three commodities where such production is for export and could injure producers in the United States. You may be certain that I shall closely watch and review the lending practices of the banks during this fiscal year.

For the longer run, I have directed the Secretary of the Treasury, in consultation with the leadership and appropriate committee of the Congress, to undertake a thorough study of how the whole range of U.S. objectives, including the type envisaged in these amendments, can best be pursued in the banks. I would expect that the results of this appraisal could help guide our efforts for FY 1979 and beyond, in partnership between the Administration and the Congress.

I would hope that these steps would enable the House to avoid adopting any of the restrictive amendments, previously passed, in the final foreign assistance appropriations bill for FY 1978.

I appreciate your support and counsel on these critically important issues confronting our foreign policy.

123 Cong. Rec. H 11191 (daily ed. Oct. 18, 1977).

After representatives of the Senate and House of Representatives met in conference on various provisions in H.R. 7797, Chairman Long recommended to the House of Representatives on October 18, 1977, that the prohibition on "indirect" assistance to the 7 specified countries be omitted and that other restrictions be eliminated in view of the assurances contained in President Carter's October 6, 1977, letter. Portions of Chairman Long's remarks follow:

In view of the willingness of the President to take these very stringent steps and with the cooperation of the Senate, we have been able to work out the following compromise.

First. On the amendments dealing with the prohibition of indirect assistance to Vietnam, Laos, Cambodia, Uganda, Angola, Mozam bique, and Cuba, . . . the "indirect" language has been eliminated. This can now be done because the President, in his letter to me, said in no uncertain terms that he will instruct the U.S. representatives to the international institutions to vote against and oppose loans or other financial assistance to these countries. Language is included in the conference report which states that extensions of assistance to any country by multilateral institutions during fiscal year 1978,

contrary to the opposition of the U.S. representatives as directed by the President, will be the subject of intensive committee oversight. Second. On the provision prohibiting funds to the international financial institutions from being used for the purpose of establishing or expanding production of sugar, palm oil or citrus crops, . . . this language has been deleted. Again, this deletion has been recommended based on the assurances of the President that he will direct the U.S. representatives to oppose and vote against loans for establishing or expanding production for export of palm oil, sugar, or citrus crops if such assistance will cause injury to U.S. producers of the same, similar or competing agricultural commodity. In addition, the authorization bill (Public Law 95-118) also addresses this subject.

123 Cong. Rec. H 11191 (daily ed. Oct. 18, 1977).

Set forth below is the provision concerning the 7 specified countries in H.R. 7797, as approved by President Carter on October 31, 1977, in the Foreign Assistance and Related Programs Appropriations Act, 1978:

Sec. 107. None of the funds appropriated or otherwise made available pursuant to this Act shall be obligated or expended to finance directly any assistance or reparations to Uganda, Cambodia, Laos, or the Socialist Republic of Vietnam.

P.L. 95-148; 91 Stat. 1234.

Sec. 114. None of the funds appropriated or made available pursuant to this Act shall be obligated or expended to finance directly any assistance to Mozambique or Angola.

P.L. 95-148; 91 Stat. 1235.

Sec. 506. None of the funds appropriated in this Act shall be used for any form of aid or trade, either by monetary payment or by the sale or transfer of any goods of any nature, directly to Cuba.

P.L. 95-148; 91 Stat. 1240.

The Foreign Assistance and Related Programs Appropriations Act of 1978 contains the following provisions in section 901 concerning human nutrition in developing countries and assistance by international financial institutions for establishing or expanding production for export of palm oil, sugar, or citrus crops:

Sec. 901. (a) The Congress declares it to be the policy of the United States, in connection with its voice and vote in the International Bank for Reconstruction and Development, the International Development Association. the International Finance Corporation, the Inter-American Development Bank, the African Development Fund, the Asian Development Fund, and the Asian Development Bank, to combat hunger and malnutrition and to encourage economic development in the developing countries, with emphasis on assistance to those countries that are determined to improve their own agricultural production, by seeking to channel assistance for

agriculturally related development to projects that would aid in fulfilling domestic food and nutrition needs and in alleviating hunger and malnutrition in the recipient country. The United States representatives to the institutions named in this section shall oppose any loan or other financial assistance for establishing or expanding production for export of palm oil, sugar, or citrus crops if such loan or assistance will cause injury to United States producers of the same, similar, or competing agricultural commodity.

(b) The Secretaries of State and Treasury shall report annually to the Speaker of the House of Representatives and the President of the Senate on the progress towards achieving the goals of this title. P.L. 95-118; 91 Stat. 1071.

For further information concerning P.L. 95-118, an Act to provide for increased participation by the United States in the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Asian Development Bank and the Asian Development Fund, and for other purposes, and P.L. 95–148, the Foreign Assistance and Related Programs Appropriations Act, 1978, see ante, Ch. 3, § 6, pp. 223-225.

Postwar Assistance to Vietnam

Section 505 of the Foreign Relations Authorization Act, Fiscal Year 1978, Public Law 95-105, 91 Stat. 858, approved August 17, 1977, prohibited, as stated below, the authorization of funds for the Socialist Republic of Vietnam:

(a) None of the funds authorized to be appropriated in this Act shall be used for the purpose of reparations, aid, or any other form of payment to the Socialist Republic of Vietnam.

(b) The President shall continue to take all possible steps to obtain a final accounting of all Americans missing in action in Vietnam.

Romania

Disaster Relief

On March 14, 1977, the U.S. Senate passed Senate Concurrent Resolution 12, which called for all possible U.S. assistance to Romania following the earthquake disaster of March 4, 1977. The resolution was introduced by Senator Jacob K. Javits. On March 17, 1977, the U.S. House of Representatives agreed by voice vote to the concurrent resolution. Senate Concurrent Resolution 12 reads as follows:

S. CON. RES. 12

Whereas Romania has suffered a disastrous earthquake which resulted in a significant loss of life, much human suffering, enormous physical destruction, and major economic disruption; and

Whereas it is in the tradition of the United States to provide humanitarian assistance to the victims of such disasters: Now, therefore, be it

Resolved by the Senate (the House of Representatives concurring), That the United States should do all that is possible to assist the people of Romania in their hour of need following the terrible natural disaster which has just afflicted them; and should join with other nations and international organizations and with public and private organizations for that purpose; and that the people of the United States express their deepest sympathy to the victims and to

their bereaved families.

123 Cong. Rec. H 2236–2237 (daily ed. Mar. 17, 1977).

On April 18, 1977, President Carter approved an Act to "provide for relief and rehabilitation assistance to the victims of the recent earthquakes in Romania" (Public Law 95-21; 91 Stat. 48). The Act amended chapter 9 of part I of the Foreign Assistance Act of 1961, as amended, to provide a new section 495D authorizing "the President to furnish assistance, on such terms and conditions as he may determine, for the relief and rehabilitation of refugees and other earthquake victims in Romania." On October 31, 1977, President Carter approved the Foreign Assistance and Related Programs Appropriations Act, 1978 (Public Law 95-148), which appropriated in Title VI (91 Stat. 1241) $13 million "for Romanian relief and rehabilitation assistance" pursuant to the provisions of section 495D of the Foreign Assistance Act of 1961, as amended.

Subsec. (f) of sec. 495D of P.L. 95-21 contained the following statement concerning human rights as defined in the Helsinki Final Act, the U.N. Declaration on Human Rights, and future U.S. policy on development assistance for Romania :

(f) Nothing in this section shall be interpreted as endorsing any measure undertaken by the Government of Romania which would suppress human' rights as defined in the Conference on Security and Cooperation in Europe (Helsinki) Final Act and the United Nations Declaration on Human Rights, or as constituting a precedent for or commitment to provide United States development assistance to Romania, and the Romanian Government shall be so notified when aid is furnished under this section.

U.N. Conference on Science and Technology for
Development

Section 507 of the Foreign Relations Authorization Act, Fiscal Year 1978, Public Law 95-105, 91 Stat. 859, approved August 17, 1977, requires the President to take appropriate steps to ensure that U.S. representatives to the U.N. Conference on Science and Technology for Development emphasize the development and use of light capital technologies. Section 507 appears below:

(a) The President shall take appropriate steps to ensure that, at all stages of the United Nations Conference on Science and Technology for Development, representatives of the United States place important emphasis, in both official statements and informal discussions, on the development and use of light capital technologies in

agriculture, in industry, and in the production and conservation of energy.

(b) As used in this section, the term "light capital technologies" means those means of production which economize on capital wherever capital is scarce and expensive and labor abundant and cheap. the purposes being to insure that the increasingly scarce capital in the world can be stretched to help all, rather than a small minority. of the worlds poor; that workers will not be displaced by sophisticated labor-saving devices where there is already much unemployment; and further, that poor nations can be encouraged eventually to produce their own capital from surplus labor time, thus enhancing their chances of developing independently of outside help.

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Transnational Corporations, Foreign Investment, and Tax Law

Antitrust Laws

Transnational Corporations

On January 26, 1977, the Department of Justice issued an "Antitrust Guide for International Operations," which sets forth its views on enforcement with respect to common international antitrust questions. The Guide contains a general discussion of the Department's policy and also a more detailed discussion of fourteen representative case situations and how antitrust principles of enforcement would be applied to them. Assistant Attorney General Donald I. Baker, in charge of the Antitrust Division, said the Guide is intended to be a statement of the Department of Justice's current enforcement policy. The Guide is designed to help businesses comply with U.S. antitrust law as it applies to their international activities.

In his remarks, entitled "Antitrust in the Sunshine," before the Antitrust Law Section of the New York State Bar Association on January 26, 1977, Mr. Baker described the first segment of the Guide, which explains U.S. antitrust enforcement policy, in these terms:

[T]here are two cornerstones to the Antitrust Division's enforcement policy in the area of international commerce: (1) the protection of the American consuming public by assuring it the benefit of competitive products and ideas produced by foreign competitors as well as domestic competitors, and (2) the protection of American export and investment opportunities against privately imposed restrictions. In protecting these interests, our enforcement policy is primarily concerned with price fixing, market allocation and cartel activities affecting the U.S. market, and is not concerned with foreign transactions that do not have a substantial and intended effect on U.S. commerce.

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