Page 1177 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5352

lending instruments, rescheduling and refinancing of existing debt, securitization and debt conversion techniques, discounted debt repurchases,

and the International Debt Management Authority described in section 5331 of this title no

later than 1 year after August 23, 1988.

(Pub. L. 100–418, title III, §3113, Aug. 23, 1988, 102

Stat. 1378.)

SUBCHAPTER III—PRIMARY DEALERS

§ 5341. Short title

This subchapter may be cited as the ‘‘Primary

Dealers Act of 1988’’.

(Pub. L. 100–418, title III, §3501, Aug. 23, 1988, 102

Stat. 1386.)

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle F (§§3501, 3502) of

title III of Pub. L. 100–418, which enacted this subchapter.

§ 5342. Requirement of national treatment in underwriting government debt instruments

(a) Findings

The Congress finds that—

(1) United States companies can successfully

compete in foreign markets if they are given

fair access to such markets;

(2) a trade surplus in services could offset

the deficit in manufactured goods and help

lower the overall trade deficit significantly;

(3) in contrast to the barriers faced by

United States firms in Japan, Japanese firms

generally have enjoyed access to United

States financial markets on the same terms as

United States firms; and

(4) United States firms seeking to compete

in Japan face or have faced a variety of discriminatory barriers effectively precluding

such firms from fairly competing for Japanese

business, including—

(A) limitations on membership on the

Tokyo Stock Exchange;

(B) high fixed commission rates (ranging

as high as 80 percent) which must be paid to

members of the exchange by nonmembers for

executing trades;

(C) unequal opportunities to participate in

and act as lead manager for equity and bond

underwritings;

(D) restrictions on access to automated

teller machines;

(E) arbitrarily applied employment requirements for opening branch offices;

(F) long delays in processing applications

and granting approvals for licenses to operate; and

(G) restrictions on foreign institutions’

participation in Ministry of Finance policy

advisory councils.

(b) Designation of certain persons as primary

dealers prohibited

(1) General rule

Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve

Bank of New York may designate, or permit

the continuation of any prior designation of,

any person of a foreign country as a primary

dealer in government debt instruments if such

foreign country does not accord to United

States companies the same competitive opportunities in the underwriting and distribution

of government debt instruments issued by

such country as such country accords to domestic companies of such country.

(2) Certain prior acquisitions excepted

Paragraph (1) shall not apply to the continuation of the prior designation of a company as

a primary dealer in government debt instruments if—

(A) such designation occurred before July

31, 1987; and

(B) before July 31, 1987—

(i) control of such company was acquired

from a person (other than a person of a foreign country) by a person of a foreign

country; or

(ii) in conjunction with a person of a foreign country, such company informed the

Federal Reserve Bank of New York of the

intention of such person to acquire control

of such company.

(c) Exception for countries having or negotiating

bilateral agreements with United States

Subsection (b) of this section shall not apply

to any person of a foreign country if—

(1) that country, as of January 1, 1987, was

negotiating a bilateral agreement with the

United States under the authority of section

2112(b)(4)(A) of title 19; or

(2) that country has a bilateral free trade

area agreement with the United States which

entered into force before January 1, 1987.

(d) ‘‘Person of a foreign country’’ defined

For purposes of this section, a person is a

‘‘person of a foreign country’’ if that person, or

any other person which directly or indirectly

owns or controls that person, is a resident of

that country, is organized under the laws of that

country, or has its principal place of business in

that country.

(e) Effective date

This section shall take effect 12 months after

August 23, 1988.

(Pub. L. 100–418, title III, §3502, Aug. 23, 1988, 102

Stat. 1386.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 10 section 2500.

SUBCHAPTER IV—FINANCIAL REPORTS

§ 5351. Short title

This subchapter may be cited as the ‘‘Financial Reports Act of 1988’’.

(Pub. L. 100–418, title III, §3601, Aug. 23, 1988, 102

Stat. 1387.)

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle G (§§3601–3604) of

title III of Pub. L. 100–418, which enacted this subchapter.

§ 5352. Quadrennial reports on foreign treatment

of United States financial institutions

Not less frequently than every 4 years, beginning December 1, 1990, the Secretary of the