I 

109TH CONGRESS 

2D SESSION H. R. 4885 

To amend the Defense Production Act of 1950 to prohibit acquisitions, 

mergers, or takeovers of persons engaged in interstate commerce in 

the United States by entities controlled by or acting on behalf of foreign 

governments that do not recognize countries that are member states 

of the United Nations, participate in boycotts against countries that 

are friendly to the United States, or provide support for international 

terrorism. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2006 

Ms. BERKLEY introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Energy and Commerce and International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Defense Production Act of 1950 to prohibit 

acquisitions, mergers, or takeovers of persons engaged 

in interstate commerce in the United States by entities 

controlled by or acting on behalf of foreign governments 

that do not recognize countries that are member states 

of the United Nations, participate in boycotts against 

countries that are friendly to the United States, or provide support for international terrorism. 

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


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1 SECTION 1. PROHIBITION ON ACQUISITIONS, MERGERS, OR 

2 TAKEOVERS BY ENTITIES CONTROLLED BY 

3 OR ACTING ON BEHALF OF CERTAIN FOR4 EIGN GOVERNMENTS. 

5 (a) IN GENERAL.—Section 271(d) of the Defense 

6 Production Act of 1950 (50 U.S.C. App. 2170(d)) is 

7 amended— 

8 (1) by striking ‘‘Subject to subsection (d)’’ and 

9 inserting the following: 

10 ‘‘(1) IN GENERAL.—Subject to subsection (e)’’; 

11 (2) by inserting after the first sentence the fol12 lowing new paragraph: 

13 ‘‘(2) PROHIBITION ON ACQUISITIONS, MERGERS, 

14 OR TAKEOVERS BY ENTITIES CONTROLLED BY OR

15 ACTING ON BEHALF OF CERTAIN FOREIGN GOVERN16 MENTS.— 

17 ‘‘(A) PROHIBITION.—The President shall 

18 prohibit any acquisition, merger, or takeover 

19 described in subsection (b) that will result in 

20 control of a person engaged in interstate com21 merce in the United States by an entity con22 trolled by or acting on behalf of a foreign gov23 ernment described in subparagraph (B). 

24 ‘‘(B) FOREIGN GOVERNMENT DE25 SCRIBED.—A foreign government referred to in 


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1 subparagraph (A) is a foreign government 

2 that— 

3 ‘‘(i) does not recognize any country 

4 that is a member state of the United Na5 tions; 

6 ‘‘(ii) takes or knowingly agrees to take 

7 any action to support any boycott against 

8 a country that is friendly to the United 

9 States and that is not itself the object of 

10 any form of boycott pursuant to United 

11 States law or regulation; or 

12 ‘‘(iii) the Secretary of State has deter13 mined, for purposes of section 6(j) of the 

14 Export Administration Act of 1979, sec15 tion 620A of the Foreign Assistance Act of 

16 1961, section 40 of the Arms Export Con17 trol Act, or any other provision of law, is 

18 a government that has repeatedly provided 

19 support for acts of international ter20 rorism.’’; 

21 (3) by striking ‘‘The President shall announce’’ 

22 and inserting the following new paragraph: 

23 ‘‘(3) ANNOUNCEMENT OF DECISION; OTHER AP24 PROPRIATE RELIEF.—The President shall an25 nounce’’; and 


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1 (4) in paragraph (3) (as so added)— 

2 (A) by striking ‘‘pursuant to this sub3 section’’ and inserting ‘‘pursuant to paragraph 

4 (1) or (2) of this subsection’’; and 

5 (B) by striking ‘‘subsection (a)’’ and in6 serting ‘‘subsection (a) or (b), as the case may 

7 be,’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 subsection (a) apply with respect to any written notifica10 tion of a proposed or pending acquisition, merger, or take11 over received pursuant to section 721(b) of the Defense 

12 Production Act of 1950 (50 U.S.C. App. 2170(b)) on or 

13 after the date of the enactment of this Act. 

Æ 


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