Congress scrutinises

Press, 24 March 1988, Page 31

Congress scrutinises

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GLENN SOMERVILLE,

(through NZPA) NZPA-Reuter Washington In spite of dire warnings from Reagan Administration off cials. Congress is considering proposals’ requiring foreign[ investors | in the) j United j States; to identify themselves and their; holdings. .. | | House and Senate trade negotiators; were ineeting yesterday to discuss the disclosure measure, which has generated cdnsider-) able support from those) who fear' the .1 United States, ) now ) a [ debtpij nation, Is sell ng its assets abroad.?: | I [ “You; have :o wonder iff iri some sectors, we are becoming‘a clone of old .Singapore, wjere Atneri-

cans do [the piece work; other) ’ nations] reap thd profit; and keep the high-! skill, good-pay jobs foy themselves,” said Senatoi] Lawton [Chiles (Democrat), 1 Florida.) H I I The [ White House wants to head off trie proposal,; calling it) contradictory to) American tradition [and a! threat[ to the) inflow! of foreign ) that could [ hurt |he) I United States [ economy. ; [ I ) [ “If) [we decide we are somehow going to [limit) foreign investment; one of) the potential (results) will be liighe)r interest rates, no [doubt labour | lit,”) warned [ the) Treasury Secretary, Mr I James' Baker) iri Capitol Hill testimony al wee[k ago) I [ [ | The principal sponsor of the measure is [Con]

gressman ' IJohn Bryant (Democrat)! Texas, whose proposal was approved by the House jin its version of a trade bill) last! year. It would I require registration with the Commerce Department of any foreign purchase of a 5 fier cent or larger interest in a United States company with )SUSS million or more in assets. )l I Foreign) buyers of a 25 per cent or larger interest In an American I firm with assets or’ sales greater than S2OM would have to supply more information including a balance sheet and the names of all officers involved.. The Senate version does not include . these provisions, but its committees were hearing i testimony on the issue this week.