Aust. warning on U.S. jurisdiction

Press, 3 August 1983, Page 25

Aust. warning on U.S. jurisdiction

NZPA Canberra Australia has warned the United States that it might have to treat United States companies in Australia differently if America persists with the extraterritorial application of United States laws.

The threat is in a Note from the Australian Embassy in Washington to the State Department on May

23 and now made public in a submission to the Joint Committee on Foreign Affairs and Defence in Canberra. The committee has also heard evidence from senior representatives of the Attor-ney-General’s Department and the Department of Foreign Affairs, all expressing serious concern about the implications for Australian laws and policies of the extraterritorial application of United States laws.

Of particular concern in recent years has been the extraterritorial application of United States anti-trust laws through the “effects doctrine.” Jurisdiction has been asserted in relation to activities which have an effect on American commerce, even where those activities occur beyond its boundaries. United States courts have also asserted jurisdiction over companies in which United States nationals have only a minority interest — down to 25 per cent. Private suits brought under anti-trust laws can result in the award of treble damages against foreign companies carrying on activities sanctioned by their own governments. Attention is focused at the present on two issues: © The investigation by the United States Justice Department of the oceanfreight market between Australia, New Zealand, and America. © The review of the

United States Export Administration Act. The former could affect the interests of Australian statutory bodies such as the Australian Meat and Livestock Corporation and the Australian National Line. Mr lan Nicholson, assistant secretary in the Department of Foreign Affairs’ maritime law and treaties branch in Canberra, had expressed concern about the latter. He told the committee it had serious implications for the utilisation by foreign companies of technology and products of United States origin in international trade. Mr Hall said Australia’s interest in developing high technology or "sunrise” industries could be affected and development of exports by Australian companies compromised. “The Australian Government has pointed out to the United States Administration in a recent diplomatic Note that the maintenance through the extraterritorial application of United States laws could have ‘implications for the ability of allies to adhere to the principle of national treatment of multinational enterprises’,” he said.

The Note also gave warning of further “remedial measures” to restrict the impact of unilateral assertion of extraterritorial jurisdiction over enterprises registered and carrying on their business in Australia.