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Anti-arab Boycott Legislation Action Due in Congress After It Returns from Its 10-day Recess

August 11, 1976
See Original Daily Bulletin From This Date

Both houses of Congress will move on anti-Arab boycott legislation immediately after they return from the 10-day recess that begins tomorrow for the Republican national convention next week. The Congressional actions will center on the extension of the Export Administration Act of 1969 that expires in September unless it is renewed by both houses.

In the Senate, tough new provisions have been added to it by Sens. Adlai Stevenson (D.III.) and J. Harrison Williams (D.NJ). which are expected to be adopted without amendment despite Administration opposition to them.

In the House, the International Relations Committee has seven bills and the Judiciary Committee has another proposal aimed against the boycott. To facilitate consideration and approval. New York Democrats Benjamin Rosenthal and Jonathan Bingham are drafting a single amendment to the act that would encompass all the measures proposed.


The substance, the Jewish Telegraphic Agency was informed, would be to outlaw all compliance by Americans with the Arab boycott demands, especially those concerned with information on personnel of American companies and trade with Israel. The bill will be taken up by the House committees the day after Congress reconvenes.

The Harrison-Stevenson proposals are in two titles of the act. Parts of one title outlaw application of a tertiary boycott, thus prohibiting any American firm that would refuse to do business with a second American firm because it is on the Arab blacklist. This compliance according to its sponsors, incurs unwarranted intrusion in domestic commerce in the United States.

This title also provides stiffer provisions to enforce disclosure by American companies on demands brought to them by Arab boycott elements. If adopted, the new law would fine a company up to $10,000 instead of the maximum of $1000 at present for failure to disclose to the U.S. government Arab demands made upon them.

The other title concerns means to expose buying into American companies by petrodollars. This title does not prohibit foreigners from purchasing securities but it does require disclosing who is actually buying the securities. The sponsors of this title have indicated that Arab oil money can now buy control of key industries or other properties without the American government knowing it.

This title would demand disclosure of the beneficiary owner of securities as well as the recorded owner. At present, ownership could be simply identified on the record as a law, firm or another American company while the real owners remain secret and unknown.


In addition, a series of anti-terrorism resolutions will be taken up by the House shortly after it reconvenes Aug. 23. A total of 107 House members have co-sponsored the resolutions introduced by Reps. Matthew Rinaldo (R.NJ). James Kemp (R.NY), John Ashbrook (R.Ohio), Lester Wolff (D.NY), Edward Koch (D.NY) and Benjamin Gilman (R.NY).

The resolutions broadly divide into two elements. One set emphasizes strong approval by the United States of Israel’s rescue of the hostages held by Arab terrorists at Uganda’s Entebbe Airport while urging U.S. leadership to combat international political terrorism. The other calls specifically on the President to take action to bring about international measures to fight terrorism, including sanctions against countries granting sanctuary to terrorists.

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