3. <u>Govern</u> nt Guarantees

The guarantees to be made by the government cover the
following sectors:

3.1 Entry and Exit Permit (Visa)

Distribution of visas without reservation to all officials,
players and media representatives who have been accredited
by FIFA, regardless of their nationality, race and religion.
This shall also apply to foreign spectators.

3.2 Customs

Free import and export:

a) of personal equipment;

b) of technical equipment of players and officials;

c) of the media representatives' technical equipment
 cameras, video recorders, lighting material etc.);

d) of medical apparatus and pharmaceutical products

e) of food;

f) of all other technical accessories for the organisation
of the World Cup (copying machines, typewriters, photofax,
telex etc.)

3.3 Security

Security is a matter for the State.

General security and personal protection are the No.1
commandment of a worldwide competition, particularly at
airports, hotels, training grounds and in the stadia.
This also includes the personal protection of all players,
officials, media representatives and spectators before,
during and after the matches as well as guaranteeing
security and protection during domestic travel.

### 3.4 Bar and Foreign Exchange Operations

This is an important point because it directly concerns the financial value of the FIFA World Cup. The Government must - either directly or through the national bank - make a declaration guaranteeing the free import and export of all foreign exchange in the organising country as well as the exchange and re-conversion of this foreign exchange into hard currency (US$ or Swiss francs). A re-conversion of the different currencies should equally be possible within the country under the internationally recognized conditions on the foreign exchange market. Moreover, a written authorization must be given by the respective governmental authorities enabling all payments abroad at the official rate.

If other laws are in force, these shall be repealed or modified for the duration of the World Cup.

### 3.5 Telecommunications

The government shall guarantee the existence (or the measures to be taken for the construction) of an international-telecommunications network for telephone, telex, radio and television. Moreover, it shall see that a specific centre be set up for the World Cup where these communications media can be concentrated (Telecommunications Centre).

The description of such a centre is enclosed with this report.

ENCLOSURE

### 3.6 Transportation

One shall have to determine whether the domestic transport system and the national transport network are capable of preparing the necessary installations and means on time for the technical staging of a World Cup.

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[LC]

3.6.1 Each subseat must have an airport, the construction and security of which must answer IATA specifications. Moreover, it must have landing capacity for jet traffic.

3.6.2 Existing rail connections between the subseats.

3.6.3 Existing road connections between the subseats

## 3.7 Price Politics

Prices for hotels and other accommodation for all people accredited by FIFA shall be frozen as from 1.1.86. It shall equally be established by governmental decision that rooms must only be paid for the number of days of effective use.

3.8 Guarantee for the playing of national anthems of the participating teams and the hoisting of the respective national flags.

## 3.9 State Taxes

Guarantees that state, provincial and municipal taxes on gate receipts must not exceed a total of maximum 15%...

3.10 Guarantee that organisations in charge of domestic sales shall not demand more than a 10% commission on ticket sales.

These 10 points show that prior to a FIFA World Cup, a country's government must take a series of decisions of national importance. Thus, special laws, orders or decrees must be promulgated to guarantee the basis for the organisation and execution of a football World Cup.

Page 6.

There are, of course, sources of income additional to those directly related to staging the games. In view of the tremendous potential for increased business within the community from these other sources, such as tourism, trade fairs, etc., local authorities recognize that considerable additional financial and public relations benefits will inure to the nation and each location involved.

## GOVERNMENT GUARANTEES

In the documents entitled "Terms of Reference" distributed by FIFA in January 1983 to the countries seeking to become host for World Cup '86, reference is made in various sections to the degree of participation required by the government of the country selected. All relevant segments of those documents are attached to this statement.

As all stadia, roads, airports, etc., as required in the "Terms of Reference", already exist in the United States, the main concern of FIFA is that no problems arise in regard to visas, customs, security and monetary exchange.

The Federal government will be responsible for satisfying the requirements for Visas (3.1), Customs (3.2), and Bank and Foreign Exchange (3.4). The United States already meets the requirement for Telecommunications (3.5) and Transportation (3.6). Security (3.3) will be the joint responsibility of the Federal government (airports), the State and/or Local governments (transportation between airports, hotels, training facilities, and stadia) and private security organizations (hotels). The requirements for

Page 7.

Price Politics (3.7), National Anthems and Flags (3.8) and State Taxes (3.9) will be the responsibility of State and/or Local governments. The USSF World Cup Organizing Committee will be responsible for Ticket Sales (3.10) and for insuring that commissions will be limited to a maximum of 10%. State and Local governments have already been requested to provide the guarantees for those items listed above for which they will be responsible.

Satisfactory arrangements have been made in regard to all such matters for the 1984 Olympic Games in Los Angeles. The USSF would, therefore, appreciate the same support from the appropriate departments of the United States Government so that FIFA can be given the same assurances as those given to the International Olympic Organizing Committee (IOC) for 1984.

## IMPACT OF WORLD CUP

The World Cup '82 final game was viewed in 92 countries throughout the world by 1.3 billion people. This is the largest audience to date for any television program including the landing on the moon. It is expected that if World Cup '86 is awarded to the United States, well over 100,000 visitors will be attracted to this country from throughout the world. Not only will soccer enthusiasts from our neighboring countries welcome the opportunity to attend games at locations close to our borders, but also tens of thousands of visitors are expected from European and South American countries in particular. For example, approximately 20,000 fans travelled to Spain, from Brazil alone for World Cup '82. All locations where games would be played have been encouraged to schedule