We also know that conflicts growing out of poverty and disease tend to spill over boundaries, requiring us to engage with the rest of the world to protect our own security. That is why we have made debt relief for the poorest countries part of the overall strategy of promoting U.S. interests abroad and we hope Congress will fund this effort so that we can do our part. There is legislation pending in the Senate, sponsored by Senator Hollings and others, which would bar entry into the U.S. telecom market of companies which have more than 25 percent foreign government ownership. While nations, even in a globalized world, impose restrictions on foreign investment that are necessary to preserve competition in their home market or to protect the national security, the Administration does not feel current law should be changed to bar such participation based purely on an applicant's level of government ownership. We begin with the premise that foreign investment benefits the U.S., even investment by foreign-government owned companies.
Foreign investment is an engine of economic growth.
Like exports, it brings capital into our country, raises national income and supports the balance of payments. With a current account deficit as high as the one we have now, we are intensely aware of the value of foreign investment. The United States has led the way in the worldwide liberalization of telecom markets, producing tangible benefits for both us and our trading partners. Our government has been very successful in identifying and gaining elimination of laws of other nations which restrict the entry of U.S. companies. Proposals to ban government-owned telecom firms from our market would likely diminish our leadership role in this effort and could cause other countries to believe they could limit foreign investment, in telecom and possibly other sectors, either in retaliation or for protectionist goals.