An Act to authorize the Secretary of Commerce and the Secretary of the Treasury to conduct a study of foreign direct and portfolio investment in the United States, and for other purposes.
PL 93-479 (S.2840), enacted 10/26/1974

1450 
PUBLIC LAW 93-479-OCT. 26, 1974 
[88 STAT. 
October 26, 1974 
[S.2840] 
Public Law 93-479 
AN ACT 
To authorize the Secretary of Commerce and the Secretary of the Treasury to 
conduct a study of foreign direct aind portfolio investment in the United 
States, and for other purposes. 
Foreign Invest-
ment Study Act 
of 1974. 
15 use 
note. 
Study. 
15 use 
note. 
15 use 
note. 
15 use 
note. 
78b 
78b 
78b 
78b 
Foreign direct 
investment, 
study. 
15 u s e 78b 
note. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may be 
cited as the "Foreign Investment Study Act of 1974". 
SEC. 2. The Secretary of the Treasury and the Secretary of Com-
merce are hereby authorized and directed to conduct a comprehensive, 
overall study of foreign direct and portfolio investments in the United 
States. 
SEC. 3. The Departments of Commerce and Treasury, in consultation 
with appropriate agencies, shall determine the definitions and limita-
tions of direct and portfolio investments for the purposes of the study 
authorized in section 2 of this Act. 
SEC. 4. In carrying out the study described in section 2 of this Act, 
the Secretary of Commerce and the Secretary of the Treasury shall, 
respectively and jointly as may be appropriate— 
(1) identify and collect such information as may be required 
to carry out the study authorized in section 2 of this Act; 
(2) consult with and secure information from (and where 
appropriate the views of) representatives of industry, the financial 
community, labor, agriculture, science and technology, academic 
institutions, public interest organizations, and such other groups 
as the Secretaries deem suitable; and 
(3) consult and cooperate with other government agencies. 
Federal, State, and local, and, to the extent appropriate, with 
foreign governments and international organizations. 
SEC. 5. The Secretary of Commerce shall carry out that part of the 
study authorized in section 2 of this Act relating to foreign direct 
investment, and shall, among other things, to the extent he determines 
feasible, specifically— 
(1) investigate and review the nature, scope, magnitude, and 
rate of foreign direct investment activities in the United States; 
(2) survey the reasons foreign firms are undertaking direct 
investment in the United States; 
(3) identify the processes and mechanisms through which for-
eign direct investment flows into the United States, the financing 
methods used by foreign direct investors, and the effects of such 
financing on American financial markets; 
(4) analyze the scope and significance of foreign direct invest-
ment in acquisitions and takeovers of existing American enter-
prises, the significance of such investments in the form of new 
facilities or joint ventures with American firms, and the effects 
thereof on domestic business competition; 
(5) analyze the concentration and distribution of foreign 
direct investment in specific geographic areas and economic 
sector's; 
(6) analyze the effects of foreign direct investment on United 
States national security, energy, natural resources, agriculture, 
environment, real property holdings, balance of payments, balance 
of trade, the United States international economic position, and 
various significant American product markets; 
(7) analyze the effect of foreign direct investment in terms of 
employment opportunities and practices and the activities and 
influence of foreign and American management executives 
employed by foreign firms; 
88 STAT. ] 
PUBLIC LAW 93-479-OCT. 26, 1974 
1451 
(8) analyze the ettect of Federal, regional, State, and local laws, 
rules, regulations, controls, and policies on foreign direct invest-
ment activities in the LTnited States; 
(9) compare the purpose and effect of United States, State, 
and local laws, rules, regulations, programs, and policies on for-
eign direct investment in the United States with laws, rules, 
regulations, programs, and policies of selected nations and areas 
where such comparison may be informative; 
(10) compare and contrast the foreign direct investment activi-
ties in the United States with the investment activities of Ameri-
can investors abroad and appraise the impact of such American 
activities abroad on the investment activities and policies of 
foreign firms in the LTnited States; 
(11) study the adequacy of information, disclosure, and report-
ing requirements and procedures; 
(12) determine the effects of variations between accounting, 
financial reporting, and other business practices of xlmerican 
and foreign investoi-s on foreign investment activities in the 
United States; and 
(13) study and recommend means whereby information and 
statistics on foreign direct investment activities can be kept 
current. 
SEC. 6. The Secretary of the Treasury shall carry out that part of ^^f °''^'ent''°stud"° 
the study authorized in section 2 of this Act relating to foreign port- 
1
5 use v'sb 
folio investment, and shall, to the extent he determines feasible, "°te. 
specifically—• 
(1) investigate and review the nature, scope, and magnitude 
of foreign portfolio investment activities in the United States; 
(2) survey the reasons for foreign portfolio investment in the 
United States; 
(3) identify the processes and mechanisms through which 
foreign portfolio investment is made in the LTnited States, the 
financing methods used, and the effects of foreign portfolio invest-
ment on American financial markets; 
(4) analyze the effects of foieign portfolio investment on the 
United States balance of payments and the United States inter-
national investment position; 
(5) study and analyze the concentration and distribution of 
foreign portfolio investment in specific United States economic 
sectors; 
(6) study the effect of Federal securities laws, rules, regula-
tions, and policies on foreign portfolio investment activities in 
the United States; 
(7) compare the purpose and effect of United States, State, 
and local laws, rules, regulations, programs, and policies on 
foreign portfolio investment in the United States with laws, rules, 
regulations, programs, and policies of selected nations and areas 
where such comparison may be informative; 
(8) compare the foreign portfolio investment activities in the 
United States with information available on the portfolio invest-
ment activities of American investors abroad; 
(9) study adequacy of information, disclosures, and reporting 
requirements and procedures; and 
(10) study and recommend means w'hereby information and 
statistics on foreign portfolio investment activities can be kept 
current. 
1452 
Rules and reg-
ulations. 
IS u s e 78b 
note. 
Records, main-
tenance and 
availability. 
Notice. 
Expiration of 
authority. 
Information, 
restrictions on 
accessibility. 
PUBLIC LAW 93-479-OCT. 26, 1974 
POWERS 
[88 STAT. 
SEC. 7. (a) The Secretary of Commerce and the Secretary of the 
Treasury may each by regulation establish whatever rules each deems 
necessary to carry out each of his functions under this Act. 
(b) Each such Secretary may require any person subject to the juris-
diction of the United States— 
(1) to maintain a complete record of any information (includ-
ing journals or other books of original entry, minute books, stock 
transfer records, lists of shareholders, or financial statements) 
which such Secretary determines is germane to his functions in 
the foreign direct investment and foreign portfolio investment 
studies to be conducted pursuant to this Act; and 
(2) to furnish under oath any report containing whatever infor-
mation such Secretary determines is necessary to carry out his 
functions in such studies. Whenever an order under clause (2) 
of this subsection requires a person to produce information which 
can be specifically identified as being part of the records of its 
customers, the Secretary shall, upon being provided the names 
and addresses of such customers, send a notice to such customers 
that information from their records will be disclosed pursuant 
to this Act; Provided^ That this requirement shall not apply when 
such person is directly involved in the ownership or management 
of assets for the customer as nominee, agent, partner, fiduciary, 
trustee, or in a similar relationship. 
The authority of each Secretary under this subsection shall expire on 
the date provided under section 10 of this Act for the Secretary of 
Commerce and the Secretary of the Treasury to submit a full and com-
plete report to the Congress. 
(c) In addition to the Secretary of Commerce and the Secretary 
of the Treasury, the only individuals who may have access to informa-
tion furnished under subsection (b) (2) are those sworn employees, 
including consultants, of the Department of Commerce or Depart-
ment of the Treasury designated by the Secretary of either such 
Department. Neither such Secretary nor any such employee may— 
(1) use any information furnished under subsection (b) (2) 
except for analytical or statistical purposes within the United 
States Government; or 
(2) publish, or make available to any other person in any man-
ner, any such information in a manner that the information 
furnished under subsection (b) (2) by any person can be spe-
cifically identified, except for the purposes of a proceeding under 
section 8. 
Such Secretaries may exchange any such information furnished under 
subsection (b) (2) in order to prevent any duplication or omission in 
the studies conducted by each such Secretary pursuant to this Act. 
(d) Except for the requirement under subsection (b) (2), no agency 
of the United States or employee thereof may compel (1) the Secre-
tary of Commerce or the Secretary of the Treasury, (2) any individual 
designated by either such Secretary under the first sentence of subsec-
tion (c), or (3) any person which maintained or furnished any report 
under subsection (b), to submit any such report or constituent part 
thereof to that agency or any other agency of the United States. 
Without the prior written consent of the person which maintained or 
furnished any report under subsection (b) and without the prior writ-
ten consent of the customer, where the person maintained or furnished 
any such report which included information identifiable as being 
88 STAT. ] 
PUBLIC LAW 93-479-OCT. 26, 1974 
1453 
derived from the records of such customer, such report or any such 
constituent part may not be produced for any judicial or administra-
tive proceeding, except for a proceeding under section 8(b) of this 
Act. 
ENFORCEMENT 
SEC. 8. (a) Whoever fails to furnish any information required pur-
suant to the authority of this Act, whether required to be furnished 
in the form of a report or otherwise, or to comply with any rule, regu-
lation, order, or instruction promulgated pursuant to the authority of 
this Act may be assessed a civil penalty not exceeding $10,000 in a 
proceeding brought under subsection (b) of this section. 
(b) Whenever it appears to either the Secretary of the Treasury 
or the Secretary of Commerce that any person has failed to furnish 
any information required pursuant to the provisions of this Act, 
whether required to be furnished in the form of a report or otherwise, 
or has failed to comply with any rule, regulation, order, or instruction 
promulgated pursuant to the authority of this Act, such Secretary 
may in his discretion bring an action, m the proper district court of 
the United States or the proper United States court of any territory or 
other place subject to the jurisdiction of the United States, seeking a 
mandatory injunction commanding such person to comply with such 
rule, regulation, order, or instruction, and upon a proper showing by 
such Secretary of the relevance to the purposes of the Act of such rule, 
regulation, order, or instruction, a permanent or temporary injunction 
or restraining order shall be granted without bond, and such person 
may also be subject to the civil penalty provided in subsection (a) of 
this section if the judge finds that such penalty is necessary to obtain 
compliance with such injunction or restraining order. 
(c) Whoever willfully fails to submit any information required 
pursuant to this Act, whether required to be furnished in the form of 
a report or otherwise, or willfully violates any rule, regulation, order, 
or instruction promulgated pursuant to the authority of this Act shall, 
upon conviction, be fined not more than $10,000 or, if a natural person, 
may be imprisoned for not more than one year or both; and any 
officer, director, or agent of any corporation who knowingly partici-
pates in such violation may be punished by a like fine, imprisonment, 
or both. 
SEC. 9. (a) The Secretary of Commerce and the Secretary of the 
Treasury may procure the temporary or intermittent services of 
experts and consultants in accordance with the provisions of section 
3109 of title 5, United States Code. Persons so employed shall receive 
compensation at a rate to be fixed by the Secretaries concerned but not 
in excess of the maximum amount payable under such section. While 
away from his home or regular place of business and engaged in the 
performance of services for the Department of Commerce or the 
Department of the Treasury in conjunction with the provisions of this 
Act, any such person may be allowed travel expenses, including per 
diem in lieu of subsistence, as authorized by section 5703(b) of title 5, 
United States Code, for persons in the Government service employed 
intermittently. 
(b) The Secretary of Commerce and the Secretary of the Treasury 
are authorized, on a reimbursable basis when appropriate, to use the 
available services, equipment, personnel, and facilities of any agency 
or instrumentality of the Federal Government in conjunction with the 
study authorized in this Act. 
SEC. 10. The Secretary of Commerce and the Secretary of the Treas-
ury shall submit to the Congress an interim report twelve months 
after the date of enactment of this Act, and not later than one and one-
Civil penalty. 
15 u s e 78b 
note. 
Criminal penalty. 
Experts and 
consultants. 
15 u s e 78b 
note. 
Compensation. 
Federal govern-
ment facilities. 
Report to Con-
gress. 
15 u s e 78b 
note. 
1454 
PUBLIC LAW 93-480-OCT. 26, 1974 
[88 STAT. 
Appropriation. 
15 use 78b 
note. 
half years after enactment of this Act, a full and complete report of 
the findings made under the study authorized by this Act, together 
with such recommendations as they consider appropriate. 
SEC. 11. There is authorized to be appropriated a sum not to exceed 
$3,000,000 to carry out the purposes of this Act. Any funds so appro-
priated shall remain available until expended. 
Approved October 26, 1974. 
October 26, 1974 
[H. R.11452] 
Public Law 93-480 
AN ACT 
To correct an anomaly in the rate of duty applicable to crude feathers and downs, 
and for other purposes. 
Crude feathers 
and downs, duty 
rate; personal 
holding company, 
income exclusion; 
health insurance 
for the aged. 
Effective date. 
19 u s e 1202 
note. 
Corporations, 
consolidated 
returns. 
26 u s e 542. 
26 u s e 542 
note. 
Health insur-
ance for the aged, 
coverage, exclu-
sion. 
42 u s e 1395y. 
Report to con-
gressional com-
mittees. 
42 u s e 1395y 
note. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress a^sembled^ That subpart B of 
part 1 of the Appendix to the Tariff Schedules of the United States 
(19 U.S.C. 1202) is amended by inserting immediately before item 
903.90 the following new items: 
903.80 
Feathers and downs, whether or not on the 
skin, crude, sorted (including feathers 
simply strung for convenience in handling 
or transportation), treated, or both sorted 
and treated, but not otherwise processed 
(provided for in item 186.15, part 15D, 
schedule 1): 
Meeting both test methods 4 and 10.1 of 
Federal Standard 148a promulgated by 
the General Services Administration.. 
Other 
Free 
Free 
No change 
Free 
On or before 
6/30/79 
On or before 
6/30/79 
SEC. 2. The amendment made by the first section of this Act shall 
apply with respect to articles entered, or withdrawn from warehouse, 
for consumption on or after the 180th day after the date of the 
enactment of this Act. 
SEC. 3. (a) Section 542(b) of the Internal Revenue Code of 1954 
(relating to corporations filing consolidated returns) is amended by 
adding at the end thereof the following new paragraph: 
" (5) CERTAIN DIVIDEND INCOME RECEIVED FROM A NONINCLUDIBLE LIFE 
INSURANCE COMPANY.—In the case of an affiliated group of corpora-
tions filing or required to file a consolidated return under section 1501 
for any taxable year, there shall be excluded from consolidated per-
sonal holding company income and consolidated adjusted ordinary 
gross income for purposes of this part dividends received by a member 
of the affiliated group from a life insurance company taxable under 
section 802 that is not a member of the affiliated group solely by reason 
of the application of paragraph (2) of subsection (b) of section 1504.". 
(b) The amendment made by this section shall apply to taxable 
years beginning after December 31,1973. 
SEC 4. (a) Section 1862(c) of the Social Security Act is amended 
by striking out "January 1, 1975" and inserting in lieu thereof 
"January 1,1976". 
(b) The Civil Service Commission and the Secretary of Health, 
Education, and Welfare shall submit to the Committee on Post Office 
and Civil Service and the Committee on Ways and Means of the House 
of Representatives, and to the Committee on Post Office and Civil 
Service and the Committee on Finance of the Senate, on or before 
March 1, 1975, a report on the steps which have been taken, and the