The Arab financial boycott of certain American businesses has resulted in the formulation of Senate legislation that would require disclosure and authorize control of foreign investment in American companies.
The Senate Subcommittee on Securities drafted the legislation which has received “unanimous approval” from its members, the Sub-Committee’s chairman, Sen. Harrison A. Williams, Jr. (D, NJ) said in a statement last Thursday. The measure is now before the group’s parent committee on Banking, Housing and Urban Affairs, which is expected to have another of its subcommittee’s, the panel on international finance, give it additional consideration.
According to the Williams statement “the bill would require disclosure of the beneficial ownership of all publicly traded U.S. corporations, thereby assuring effective monitoring of foreign investment in business. It would also require prior notification to the Securities and Exchange Commission when any foreign investor seeks to acquire five percent or more of a U.S. company. The President could prohibit such a transaction if he deemed it to be injurious to the national interest.”
“The Arab financial boycott and the record of the hearings we held on this legislation in March make clear that at least certain foreign investors are willing to exploit their influence and manipulate our economy and citizenry to achieve political gains” Williams said.
He also pointed out that the need for the legislation is underscored by reports that “the newly rich Mideast oil countries have invested far more money in the United States than the government officially acknowledges by funnelling billions of dollars through the anonymity of Swiss banks.
JTA has documented Jewish history in real-time for over a century. Keep our journalism strong by joining us in supporting independent, award-winning reporting.
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.
