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 Com-
mittee on Financial Services, and in addition to the Committees on En-
ergy and Commerce and International Relations, for a period to be subse-
quently 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 pro-
vide support for international terrorism. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. PROHIBITION ON ACQUISITIONS, MERGERS, OR 
TAKEOVERS BY ENTITIES CONTROLLED BY 
OR ACTING ON BEHALF OF CERTAIN FOR-
EIGN GOVERNMENTS. 
(a) IN GENERAL.—Section 271(d) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2170(d)) is 
amended— 
(1) by striking ‘‘Subject to subsection (d)’’ and 
inserting the following: 
‘‘(1) IN GENERAL.—Subject to subsection (e)’’; 
(2) by inserting after the first sentence the fol-
lowing new paragraph: 
‘‘(2) PROHIBITION ON ACQUISITIONS, MERGERS, 
OR TAKEOVERS BY ENTITIES CONTROLLED BY OR 
ACTING ON BEHALF OF CERTAIN FOREIGN GOVERN-
MENTS.— 
‘‘(A) PROHIBITION.—The President shall 
prohibit any acquisition, merger, or takeover 
described in subsection (b) that will result in 
control of a person engaged in interstate com-
merce in the United States by an entity con-
trolled by or acting on behalf of a foreign gov-
ernment described in subparagraph (B). 
‘‘(B) 
FOREIGN
GOVERNMENT
DE-
SCRIBED.—A foreign government referred to in 
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subparagraph (A) is a foreign government 
that— 
‘‘(i) does not recognize any country 
that is a member state of the United Na-
tions; 
‘‘(ii) takes or knowingly agrees to take 
any action to support any boycott against 
a country that is friendly to the United 
States and that is not itself the object of 
any form of boycott pursuant to United 
States law or regulation; or 
‘‘(iii) the Secretary of State has deter-
mined, for purposes of section 6(j) of the 
Export Administration Act of 1979, sec-
tion 620A of the Foreign Assistance Act of 
1961, section 40 of the Arms Export Con-
trol Act, or any other provision of law, is 
a government that has repeatedly provided 
support for acts of international ter-
rorism.’’; 
(3) by striking ‘‘The President shall announce’’ 
and inserting the following new paragraph: 
‘‘(3) ANNOUNCEMENT OF DECISION; OTHER AP-
PROPRIATE
RELIEF.—The 
President 
shall 
an-
nounce’’; and 
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(4) in paragraph (3) (as so added)— 
(A) by striking ‘‘pursuant to this sub-
section’’ and inserting ‘‘pursuant to paragraph 
(1) or (2) of this subsection’’; and 
(B) by striking ‘‘subsection (a)’’ and in-
serting ‘‘subsection (a) or (b), as the case may 
be,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply with respect to any written notifica-
tion of a proposed or pending acquisition, merger, or take-
over received pursuant to section 721(b) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2170(b)) on or 
after the date of the enactment of this Act. 
Æ 
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