International Trade Law Commons^™

An Evaluation Of The Need For Further Statutory Controls On Foreign Direct Investment In The United States, Gregory E. Andrews

Vanderbilt Journal of Transnational Law

Negative opinions about the expansion of direct foreign participation in the American economy have ranged from xenophobic fears of a foreign economic takeover of the United States to more responsible concerns for the possible need to inhibit foreign penetration of certain critical industries and raw material sectors. These fears and negative reactions have been exacerbated by a paucity of available information to verify or rebut them. A number of congressional committees, therefore, have responded by scheduling investigatory hearings on foreign direct investment, while several members of Congress recently have sponsored legislation in this area. Senator Daniel Inouye (D-Hawaii), has introduced …

International Lending: The Case For Developing Nations, Harold G. Maier

Vanderbilt Journal of Transnational Law

As is peculiarly appropriate for any conference dealing with a rapidly developing and constantly changing area of international economic activity, both the speakers and the participants at this meeting raised more questions than were answered. A principal theme, illustrated by the papers reproduced here, was the need for careful consideration of the problem--legal and commercial-- involved in international lending on the basis of specific information concerning its effect, its promise and the needs involved. Generalizations concerning activities in developing countries are increasingly ineffective as guides to government or business policy or academic inquiry. Recent events in the Middle East confirm …

Recent Treaties And Statutes, Charles H. Manning, Annette Adams, Alan D. Mazer

Vanderbilt Journal of Transnational Law

Foreign Investment--The Canadian Foreign Investment Review Act--An Act to Screen Foreign Investment in Canada--Allowing those Investments of Significant Benefit to Canada

Charles H. Manning

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International Economics--Caribbean Common Market--Caribbean Countries Band together to Promote Regional Cooperation and Achieve Economic Integration

Annette Adams

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Panama Canal Treaty--Statement of Principles provides Guidelines for Negotiation of New Panama Canal Treaty in Complete Abrogation of 1903 Treaty as Amended--Joint Statement of the Honorable Henry A. Kissinger, Secretary of State of the United States of America, and His Excellency Juan Antonio Tack, Minister of Foreign Affairs of the Republic of Panama, on February 7, 1974 …

Changes In The Investment Climate In Developing Nations, Jack Baranson

Vanderbilt Journal of Transnational Law

The changes of the 1960's point to two important trends in the 1970's--the continuing erosion of the foreign investment base and an expanding drive toward technological self-reliance. These tendencies have important implications for future operational modes of multinational corporations and for further adjustments in the world economy. First, developing countries will continue their efforts to eliminate foreign ownership and control of their industries and their preference for licensing arrangements and management services will continue to erode the foreign investment base. Secondly, developing countries will not be satisfied with the transfer of manufacturing techniques and related management systems. They will want …

Tokyo As An International Capital Market--Its Economic And Legal Aspects, Mitsuru Misawa

Vanderbilt Journal of Transnational Law

The internationalization of the Japanese capital market began in 1955, but for a considerable length of time the market served only as a source of foreign capital needed to cover the deficits in the nation's balance of payments. It was not until after 1970, when the Japanese balance of payments showed a steady surplus, that the Japanese market could accommodate the issue and acquisition of foreign securities on a full-fledged scale, and that Tokyo could become a truly international capital market. This trend, however, proved to be short-lived, for the steep rise in the cost of oil imports has recently …

Establishing An International Commercial Arbitration Council: A Preliminary Proposal, Martin Domke

Vanderbilt Journal of Transnational Law

There has been, in recent years, a substantial growth of international trade. This phenomenon has not confined itself to the more economically developed nations of the world. The developing countries, with different economic and social structures, have also participated in the increased trade activity. Moreover, it can be expected that this trend will continue in the coming years, steadily forging more and more links between countries in all parts of the world.

Growth of trade activity is necessarily accompanied by a corresponding increase in the number of disputes between parties to commercial agreements. The business community is in general accord …

Foreign Banking In The United States, James A. Johnson

Vanderbilt Journal of Transnational Law

Foreign banking in the United States is no longer a nominal activity. The assets of foreign bank agencies and branches tripled from 1965 to 1972, increasing to approximately 13 billion dollars. During this same time, assets of United States banks abroad rose to 75 billion dollars-an eight-fold increase.

Yet, despite this dramatic growth--which surely will continue--the United States remains the only major country in which foreign banking is not supervised at the national level. No valid constitutional or practical reasons exist to support state control. Although New York and California, which share the major portion of foreign banking at the …

Legal And Institutional Barriers To United States--Soviet Trade: Soviet Perspective, Christopher Osakwe

Vanderbilt Journal of Transnational Law

Traditionally, law, economics, and politics have always been interrelated elements. Within this interaction economics and politics have often alternated as the leading determinant of future development, whereas law has acted as an appendage of both or, at least, as a catalyst for future political and economic changes in the given society. This analysis of the close interaction between law, economics, and politics applies not only domestically but also internationally. If foreign policy is nothing but a continuation of domestic policy by other means, it follows that the foreign policy of a particular nation is shaped by a variety of factors …

Recent Developments, Craig G. Christensen

Vanderbilt Journal of Transnational Law

The debacle of the Nationalist regime in China and the subsequent United States trade embargo on the People's Republic of China (China) from 1949 to 1970, resulted in the deletion or obsolescence of United States federal income tax incentives previously applicable to Sino-American trade. The benefits of these tax provisions were transferred, with the Nationalist government, to the Taiwan-based Republic of China (Taiwan). Moreover, foreign trade tax measures enacted during the economic stalemate were largely inapplicable to China, but enhanced existing trade with Taiwan and Hong Kong. Initial United States responses to the current detente with China portend increasingly significant …

Exports And Antitrust: Must Competition Stop At The Water's Edge?, Dudley H. Chapman

Vanderbilt Journal of Transnational Law

The ground rules governing competition in international trade rank high among current issues of economic policy. The President's pending Trade Bill and its companion bill on competitive practices place a new emphasis on issues of unfair competition. These issues were prominent during the early 1900's and the interwar years but have rested in abeyance through the long post-war transition. The economic predominance of the United States characterized the post-war period. Now that Europe and Japan are once again formidable competitors in the world marketplace, the rules governing competition on the international level have regained their prior importance. As may be …

International Transactions In A Cold Climate; Or Whatever Became Of The Law Merchant?, Henry Harfield

Vanderbilt Journal of Transnational Law

International trade can be conducted only under the rule of law. There is no rule of law that governs international trade. These statements form a paradox, and the beginning of two possible syllogisms. One construction is that since there is no rule of law governing international trade, and international trade is dependent upon the rule of law, international trade must perish. The other and more hopeful construction is that international trade does exist, it must exist, and because it is dependent upon the rule of law, a rule of law must be devised.

I believe in the latter formulation, but …

Book Reviews, Werner Baer, John B. Marshall, Justin P. Wilson, Emmanuel Bello

Vanderbilt Journal of Transnational Law

INDIRECT TAXATION IN DEVELOPING ECONOMIES: THE ROLE AND STRUCTURE OF CUSTOMS DUTIES, EXCISES, AND SALES TAXES

By John F. Due

Baltimore: The Johns Hopkins Press, 1970. Pp. viii, 201. .$9.00

reviewer: Werner Baer

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THE INTERNATIONAL LAW OF CIVIL WAR

Edited by Richard A. Falk

Baltimore: Johns Hopkins Press, 1971. Pp. xix, 452. $15.00

reviewer: John B. Marshall

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NATIONAL INTERESTS AND THE MULTI-NATIONAL ENTERPRISE

By Jack N. Behrman

Englewood Cliffs, New Jersey: Prentice-Hall, 1970. Pp. 194. $4.95

reviewer: Justin P. Wilson

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TRANSNATIONAL BUSINESS COLLABORATION AMONG COMMON MARKET COUNTRIES: ITS IMPLICATIONS FOR POLITICAL INTEGRATION

By Werner J. Feld

New …

Toward Greater Flexibility In The Exchange Rate Regime Of The International Monetary Fund: The Widening Of The Band, Swadesh S. Kalsi

Vanderbilt Journal of Transnational Law

It is a commendable achievement that, in the atmosphere of a war shattered world, it was at all possible to fashion an international currency system at the Bretton Woods Conference in 1944. Indeed, the International Monetary Fund represents a historic milestone in international cooperation. Since its inception at Bretton Woods, however, the international monetary system has been plagued by two major problems. First, the expanded use of trade constraints by countries following policies of full employment and internal price stability tends to foster a balance of payments disequilibrium; consequently, the present mechanism for adjustment is not satisfactory. Events after May …

Recent Developments, Law Review Staff

Vanderbilt Law Review

The doctrine of sovereign immunity' prohibits the courts from assuming jurisdiction of a foreign sovereign without that sovereign's voluntary acquiescence, and the act of state doctrine prohibits the courts from assuming jurisdiction to judge the acts of a foreign sovereign performed within the geographical borders of its own country. In the United States, a judicial determination of self-restraint under either of these two doctrines effectively operates to bar further litigation on complaints brought against foreign governments or their instrumentalities and on complaints brought against private individuals, but based on the acts of their sovereigns. Despite the common policy foundations of …

Doctrines Of Sovereign Immunity And Act Of State--Conflicting Consequences Of State Department Intervention, Law Review Staff

Vanderbilt Law Review

The doctrine of sovereign immunity' prohibits the courts from assuming jurisdiction of a foreign sovereign without that sovereign's voluntary acquiescence, and the act of state doctrine prohibits the courts from assuming jurisdiction to judge the acts of a foreign sovereign performed within the geographical borders of its own country. In the United States, a judicial determination of self-restraint under either of these two doctrines effectively operates to bar further litigation on complaints brought against foreign governments or their instrumentalities and on complaints brought against private individuals, but based on the acts of their sovereigns. Despite the common policy foundations of …

Foreign Income In The Music Industry, Leo Strauss, Jr.

Vanderbilt Journal of Transnational Law

The record and music industries have grown tremendously and have become much more sophisticated in recent years. At one time a music publisher merely listened to a song and if he liked it he acquired the copyright. A recording artist or a recording A & R man would record those songs that he happened to like. Those who were lucky had their share of hits. This normally does not work any more, although it does in certain localized contexts. The record industry is big business and spans national borders as well as continents, affecting and bringing into contact with each …

Book Review, Jason G. Reynolds

Vanderbilt Journal of Transnational Law

In this book author Michael Tanzer focuses upon the familiar and prolific theme of oil's impact upon the under-developed countries (UDC's). Tanzer does, however, approach the subject from a different angle: he concentrates upon oil's effects on the oil-importing UDC's rather than its effects upon the oil-exporting UDC's. One expects at first that this change in emphasis would produce a vastly different account of the plight of the UDC's. It turns out, however, that despite the basic dissimilarity between importing and exporting of oil, the problems facing the importing UDC's are quite similar to the well-known problems long experienced by …

The Multinational Corporation As A Challenge To The Nation-State: A Need To Coordinate National Competition Policies, G. Philip Nowak

Vanderbilt Law Review

The recent growth and development of the multinational corporation presents the international community with a unique challenge. For the first time man has an instrument which enables him to use the world's resources with maximum efficiency. He is no longer restricted by national boundaries, but is able to allocate resources on a world wide basis. In addition, the multinational enterprise provides a means for linking the developing countries to an international productive scheme. These countries are now able to undertake production of goods in which they have a comparative advantage and more rapidly increase their rate of economic development.Since the …

Communist China's Foreign Trade Contracts And Means Of Settling Disputes, Gene T. Hsiao

Vanderbilt Law Review

International trade involves a host of legal problems. Basic among these are the institution of contracts and the principles of settling disputes. Nations may enter into trade treaties and agreements to define and regulate their commercial relations, but actual transactions are always concluded on the basis of contracts. In the case of disputes arising from these contracts, the parties often resort to conciliatory or arbitrary means instead of court litigation. Communist China has over the course of the past eighteen years established trade relations with more than 120 countries and regions. In so doing, the Peking regime has relied upon …

International Security Markets, Robert L. Knauss

Vanderbilt Journal of Transnational Law

I would like to concentrate on what we might call the international aspects of the European securities markets and, if nothing else, to define a couple of terms. What I want to do first is to look at the question of integration of capital markets, and what we mean by that term. Is it really easier for a French company to raise capital in Belgium than a company from the United States? Has there been any integration in the Common Market? Do foreign issuers raise capital on national securities markets in the currency of that market? I think we have …

International Agencies And The Capital Formation Process, Lester Nurick

Vanderbilt Journal of Transnational Law

The theme of my address will be (a) the principal means by which the international public lending institutions (principally the International Bank for Reconstruction and Development--the World Bank), the International Development Association (IDA), the International Finance Corporation (IFC), and the Inter-American Development Bank (IADB)) join with others in the channeling of funds from private, governmental and other international sources for development projects, and (b) some of the main legal problems which arise.

An operation of this kind is usually called a joint financing operation. However, it should be noted that in a sense every loan by an international organization for …

Headnotes, Journal Staff

Vanderbilt Journal of Transnational Law

On April 4, 1969, the American Society of International Law (ASIL) and the Vanderbilt International Law Society held a Conference on Legal Problems of International Capital Formation. The Symposium appearing in this issue of the International directly results from this Conference.

Manuel F. Cohen, former Chairman of the Securities and Exchange Commission, begins the Symposium with a brief overview of the development of international securities markets in Europe. Mark S. Massel then suggests the questions a businessman or lawyer should ask before making foreign investment. Lester Nurick shows how international organizations, especially the World Bank, join with private parties in …

Legal Problems Of International Capital Formation, Manuel F. Cohen

Vanderbilt Journal of Transnational Law

In the past ten or fifteen years, a revolution has been going on in the financial and securities field. This phenomenon is only an aspect of a wider revolution which is occurring throughout our society. To understand these revolutions, one must understand not only the economic issues but also the national interests and prejudices that affect governmental action. For example, securities law is moving in a slightly different direction in Canada from that in the United States. This introduction sets forth what I sense is going on in Western Europe.

Unless the people whose savings the market wishes to tap …

The Common Market Twenty-First Century (With An International Franchising Assist), Bernard Goodwin

Vanderbilt Journal of Transnational Law

The development of a supranational economy calls for novel legal approaches to bridge the gaps created by national boundaries. These barriers are now too artificial with the increasingly accelerated pace of an ever-shrinking world of speedy, even instantaneous, communications, much more so than they were in the pre-Industrial Revolution era ending with the close of the eighteenth century.

To understand the possibilities of a supranational economy, it will be helpful to look briefly at history, because some intergroup action or economy has always existed among neighboring groups. It was usually the power of one group over another that controlled their …

Communist China's Trade Treaties And Agreements (1949-1964), Gene T. Hsiao

Vanderbilt Law Review

Utilizing material gathered by extensive research, the author examines Communist China's trade treaties and agreements, with some emphasis upon their economic and political implications. Also, he analyzes the Communist Chinese use of establishment provisions and national and most-favored-nation treatment. The author has selected the period from 1949 to 1964 due to the existence of an official collection of treaties compiled by the Peking government for this period. Although the collection has not been available since 1964, the authors examination of secondary official source materials has revealed no significant change in the regime's attitude, and therefore, the materials contained in the …

Some Legal Problems Of State Trading In Southeast Asia, Chittharanjan F. Amerasinghe

Vanderbilt Law Review

State trading-trade conducted internationally by a state or public agency-has become a feature of the mixed economies of southeast Asia. With the growing importance of economic planning and the increase of state intervention (often tantamount to absolute control)in areas of the economy of individual southeast Asian countries, there has been an expansion of international trading functions by states or public agencies. Much of this trade is conducted at a state to state level, i.e., on a bilateral basis. This kind of infrastructure is attributable in part to the fact that the Communist bloc countries generally either have no place for …

Communist China's Foreign Trade Organization, Gene T. Hsiao

Vanderbilt Law Review

Although as of October 1966 Communist China has been diplomatically recognized by only fifty countries' and thus still remains outside the world legal community, it has trade relations with more than 120 countries and regions. The annual volume of Peking's foreign trade has been estimated at 2.96 billion dollars in 1963 and 4.5 billion dollars in 1966. The latest Western reports from Peking indicate that foreign buyers and sellers see in "China's 700 million people a market with dazzling prospects and a potential source "of supply of goods they can market profitably in their countries." The official organ of the …

Possible Effects Of The Proposed East-West Trade Relations Act Upon U.S. Import, Export,And Credit Controls, Harold J. Berman, John R. Garson

Vanderbilt Law Review

In 1966, and again in the President's State of the Union message in January 1967, the Administration announced that it would ask Congress to pass an "East-West Trade Relations Act." The immediate effect of such legislation would be to permit the President to abolish existing discriminatory restrictions upon imports from the Soviet Union or other Communist countries of Eastern Europe (excluding East Germany), in the context of bilateral commercial agreements designed to "provide a framework helpful to private United States firms conducting business relations with Communist state trading agencies."' Such agreements, it is contemplated, would be reached" by instituting regular …

A Symposium On State Trading, William W. Bishop, Jr., Edwin D. Dickinson

Vanderbilt Law Review

It is a privilege and an honor to be invited to introduce the following collection of articles on State Trading. In planning and organizing this symposium, the Vanderbilt Law Review has chosen to deal with an important factor in contemporary economic life--a factor which has widespread ramifications in both domestic and international law. The included articles cover a wide variety of subjects, and represent view-points which differ considerably. They have the common quality of clear and full presentation of information about current problems, while at the same time suggesting further lines for investigation. Each article offers much of interest and …

State Trading Monopolies In The European Economic Community, Ernst-Joachim Mestmacker

Vanderbilt Law Review

Governments have long recognized state trading monopolies as convenient devices to achieve political and commercial objectives concurrently, using the leverage of their economic power to political ends and vice versa. The effectiveness of the Boston Tea Party, and its aftermath, in adjusting state trading monopolies to the requirements of free trade settled the problem for the United States only. Thus, when the parties to the Treaty of Rome' agreed to divest themselves of their control over intra-Community trade by the establishment of a customs union, they were faced with the problems posed by their trading monopolies as well. The state …