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104TH CONGRESS

1ST SESSION H. R. 2042

To authorize the Secretaries of State, Treasury, and Commerce to jointly

conduct a comprehensive investigation of business practices by the State

of Kuwait relating to the financial and commercial treatment of United

States persons and of the Kuwait system for the resolution of commercial

disputes.

IN THE HOUSE OF REPRESENTATIVES

JULY 13, 1995

Mr. MCINTOSH introduced the following bill; which was referred to the

Committee on International Relations

A BILL

To authorize the Secretaries of State, Treasury, and Commerce to jointly conduct a comprehensive investigation

of business practices by the State of Kuwait relating

to the financial and commercial treatment of United

States persons and of the Kuwait system for the resolution of commercial disputes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Kuwait Business Prac5 tices Review Act of 1995’’.
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1 SEC. 2. CONGRESSIONAL FINDINGS.

2 The Congress makes the following findings with re3 spect to United States commercial relations with the State

4 of Kuwait:

5 (1) United States companies or companies oper6 ated or owned in whole or in part by United States

7 persons maintain a major presence in the State of

8 Kuwait, the result of projects undertaken prior to

9 the Gulf War as well as significant Kuwaiti rebuild10 ing projects resulting directly from the Gulf War.

11 (2) The volume of United States business par12 ticipation in Kuwait at the present time is of suffi13 cient magnitude to require congressional oversight

14 as part of Congress’ overall foreign policy respon15 sibilities.

16 (3) A number of United States persons have

17 brought to Congress’ attention recent serious dif18 ficulties in their financial and commercial relations

19 with Kuwait, and in resolving these disputes both

20 within and without the State of Kuwait.

21 (4) As a result of the United States determina22 tion, sacrifice, and support of the Kuwaiti State dur23 ing operations Desert Shield and Desert Storm, the

24 Kuwaiti Government should be particularly sensitive

25 to provide fundamental fairness to American persons

26 involved in financial and commercial transactions in
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1 or involving Kuwait, including with respect to the

2 settlement of disputes.

3 (5) It is in the interests of both the United

4 States and the State of Kuwait that any financial

5 and commercial practices which threaten continued

6 good relations be examined and resolved as quickly

7 as possible.

8 SEC. 3. INVESTIGATION AND REPORT.

9 (a) INVESTIGATION.—The Secretaries of State, Com10 merce, and Treasury are hereby directed to conduct a joint

11 investigation of financial and commercial practices by the

12 State of Kuwait and its departments and agencies with

13 respect to—

14 (1) the commercial and financial treatment of

15 entities doing business in or with Kuwait which are

16 operated or owned in whole or in part by United

17 States persons, with specific reference to the nature

18 of current disputes and the system now in effect to

19 resolve such disputes; and

20 (2) whether the Government of Kuwait has en21 gaged in conduct which would be considered an

22 abuse of established legal norms in its own country

23 or elsewhere as a means to conceal inappropriate

24 commercial and financial practices.
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1 (b) REPORT.—Not later than 180 days after the date

2 of enactment, the Secretaries shall submit a joint report

3 to the Congress with respect to the results of the investiga4 tion authorized under section 3 of this Act, such report

5 to include—

6 (1) specific proposals on actions which the

7 United States should take to improve the treatment

8 of entities doing business in or with Kuwait which

9 are operated or owned in whole or in part by United

10 States persons, and making recommendations to im11 prove whatever mechanisms are now in place for

12 commercial dispute resolution; and

13 (2) recommendations regarding whether the fi14 nancial and commercial practices of the Government

15 of Kuwait are so violative of international and do16 mestic law and generally accepted principles of good

17 faith and comity that the United States should con18 sider restrictive economic measures against Kuwait,

19 such measures to take into account Kuwaiti assets

20 in the United States.

21 SEC. 4. DIPLOMATIC REMEDIES.

22 Not later than 180 days after the report which is

23 mandated by this section has been submitted, the Sec24 retary of State shall recommend to Congress appropriate

25 modifications of the relationship between the United
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1 States and the State of Kuwait if such State has failed

2 to remedy any improper financial, commercial, or legal

3 practices found to exist under this Act.

4 SEC. 5. EFFECTIVE DATE.

5 This Act shall become effective on the date of enact6 ment.

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