A two-pronged legislative measure to counter the Arab boycott and curtail the possibilities of a takeover by oilrich Arabs of American companies is to go before the Senate early next year with prospects of overwhelming approval, the Jewish Telegraphic Agency has been informed. Action in the House is to take place following the Senate’s consideration when Congress, which recessed last Friday for the year-end holidays, returns to resume its sessions.
This developed following the approval last week by a near unanimous vote by the 13-member Senate Banking Committee of the Stevenson-Williams measure dealing with the boycott and investments. Sen. Jake Garn (D.Utah), who voted against its investment section, expressed the only opposition to the legislation.
Under the measure, U.S. companies must disclose publicly whether foreign governments have asked them to participate in boycotts and whether they intend to comply. The Arab boycott strikes at companies that trade with Israel or whose principal owners or managers are Jewish.
PROVISIONS AND PENALTIES
The bill makes it illegal for U.S. companies, pursuant to a boycott request, to refuse to deal with another U.S. company or file boycott requests with the Department of Commerce. The bill also makes it unlawful to disclose the race, religion or national origin of its employes, stockholders, directors or officers to abide by a boycott request. Violations of these provisions entail fines of up to $10,000 and possible loss of their export licences.
The investment section of the bill directs corporations to disclose the names of all their stockholders. Holders of two percent or more of a company’s shares are required to report such holding to the U.S. Securities and Exchange Commission. In addition, the bill reduces over the next two years the threshold of the holdings, subject to disclosure, from two percent to one-half of one percent, Holding of five percent of a company’s stock is frequently sufficient to control a company whose stock is widely distributed.
Sen. Adlai Stevenson (D.III.) authored the measure’s boycott provision while Sen. Harrison Williams (D.NJ) wrote the investment disclosure section, Sen. William Proxmire (D.Wis.) is the committee’s chairman.
Help ensure Jewish news remains accessible to all. Your donation to the Jewish Telegraphic Agency powers the trusted journalism that has connected Jewish communities worldwide for more than 100 years. With your help, JTA can continue to deliver vital news and insights. Donate today.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
