22 U.S.C. § 5342 — Requirement of national treatment in un-

Page 1649 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5342 mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. § 5332. Actions to facilitate creation of Authority (a) In general No funds, appropriations, contributions, call- able capital, financial guarantee, or any other financial support or obligation or contingent support or obligation on the part of the United States Government may be used for the cre- ation, operation, or support of the International Debt Management Authority specified in section 5331 of this title, without the express approval of the Congress through subsequent law, nor shall any expenses associated with such authority, ei- ther directly or indirectly, accrue to any United States person without the consent of such per- son. Except as restricted in the preceding sen- tence, the Secretary of the Treasury shall re- view all potential resources available to the multilateral financial institutions which could be used to support the creation of the Inter- national Debt Management Authority. In the course of this review, the Secretary shall di- rect— (1) the United States Executive Director of the International Monetary Fund to deter- mine the amount of, and alternative methods by which, gold stock of the Fund which, sub- ject to action by its Board of Governors, could be pledged as collateral to obtain financing for the activities of the authority specified in sec- tion 5331 of this title; and (2) the United States Executive Director to the International Bank for Reconstruction and Development to determine the amount of, and alternative methods by which, liquid assets controlled by such Bank and not currently committed to any loan program which, subject to action by its Board of Governors, could be pledged as collateral for obtaining financing for the activities of the authority specified in section 5331 of this title. The Secretary of the Treasury shall include a report on the results of the review in the first report submitted under section 5331(c) of this title. (b) Construction of section Subsection (a) shall not be construed to affect any provision of the Articles of Agreement of the International Monetary Fund or of the International Bank for Reconstruction and De- velopment or any agreement entered into under either of such Agreements. (Pub. L. 100–418, title III, § 3112, Aug. 23, 1988, 102 Stat. 1378.) § 5333. IMF-World Bank review (a) IMF review The United States Executive Director of the International Monetary Fund shall request the management of the International Monetary Fund to prepare a review and analysis of the debt burden of the developing countries, with particular attention to alternatives for dealing with the debt problem including new lending in- struments, rescheduling and refinancing of ex- isting debt, securitization and debt conversion techniques, discounted debt repurchases, and the International Debt Management Authority described in section 5331 of this title no later than 1 year after August 23, 1988. (b) World Bank review The United States Executive Director to the International Bank for Reconstruction and De- velopment shall request the management of the International Bank for Reconstruction and De- velopment to prepare a review and analysis of the debt burden of the developing countries, with particular attention to alternatives for dealing with the debt problem including new lending instruments, rescheduling and refi- nancing of existing debt, securitization and debt conversion techniques, discounted debt repur- chases, and the International Debt Management Authority described in section 5331 of this title no later than 1 year after August 23, 1988. (Pub. L. 100–418, title III, § 3113, Aug. 23, 1988, 102 Stat. 1378.) SUBCHAPTER III—PRIMARY DEALERS § 5341. Short title This subchapter may be cited as the ‘‘Primary Dealers Act of 1988’’. (Pub. L. 100–418, title III, § 3501, Aug. 23, 1988, 102 Stat. 1386.) § 5342. Requirement of national treatment in un- derwriting government debt instruments (a) Findings The Congress finds that— (1) United States companies can successfully compete in foreign markets if they are given fair access to such markets; (2) a trade surplus in services could offset the deficit in manufactured goods and help lower the overall trade deficit significantly; (3) in contrast to the barriers faced by United States firms in Japan, Japanese firms generally have enjoyed access to United States financial markets on the same terms as United States firms; and (4) United States firms seeking to compete in Japan face or have faced a variety of dis- criminatory barriers effectively precluding such firms from fairly competing for Japanese business, including— (A) limitations on membership on the Tokyo Stock Exchange; (B) high fixed commission rates (ranging as high as 80 percent) which must be paid to members of the exchange by nonmembers for executing trades; (C) unequal opportunities to participate in and act as lead manager for equity and bond underwritings; (D) restrictions on access to automated teller machines; (E) arbitrarily applied employment re- quirements for opening branch offices; Page 1650 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5351 (F) long delays in processing applications and granting approvals for licenses to oper- ate; and (G) restrictions on foreign institutions’ participation in Ministry of Finance policy advisory councils. (b) Designation of certain persons as primary dealers prohibited (1) General rule Neither the Board of Governors of the Fed- eral Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, any person of a foreign country as a primary dealer in government debt instruments if such foreign country does not accord to United States companies the same competitive oppor- tunities in the underwriting and distribution of government debt instruments issued by such country as such country accords to do- mestic companies of such country. (2) Certain prior acquisitions excepted Paragraph (1) shall not apply to the continu- ation of the prior designation of a company as a primary dealer in government debt instru- ments if— (A) such designation occurred before July 31, 1987; and (B) before July 31, 1987— (i) control of such company was acquired from a person (other than a person of a for- eign country) by a person of a foreign country; or (ii) in conjunction with a person of a for- eign country, such company informed the Federal Reserve Bank of New York of the intention of such person to acquire control of such company. (c) Exception for countries having or negotiating bilateral agreements with United States Subsection (b) shall not apply to any person of a foreign country if— (1) that country, as of January 1, 1987, was negotiating a bilateral agreement with the United States under the authority of section 2112(b)(4)(A) of title 19; or (2) that country has a bilateral free trade area agreement with the United States which entered into force before January 1, 1987. (d) ‘‘Person of a foreign country’’ defined For purposes of this section, a person is a ‘‘person of a foreign country’’ if that person, or any other person which directly or indirectly owns or controls that person, is a resident of that country, is organized under the laws of that country, or has its principal place of business in that country. (e) Effective date This section shall take effect 12 months after August 23, 1988. (Pub. L. 100–418, title III, § 3502, Aug. 23, 1988, 102 Stat. 1386.) SUBCHAPTER IV—FINANCIAL REPORTS § 5351. Short title This subchapter may be cited as the ‘‘Finan- cial Reports Act of 1988’’. (Pub. L. 100–418, title III, § 3601, Aug. 23, 1988, 102 Stat. 1387.) § 5352. Quadrennial reports on foreign treatment of United States financial institutions Not less frequently than every 4 years, begin- ning December 1, 1990, the Secretary of the Treasury, in conjunction with the Secretary of State, the Board of Governors of the Federal Re- serve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Department of Commerce, shall report to the Congress on (1) the foreign countries from which foreign financial services institutions have en- tered into the business of providing financial services in the United States, (2) the kinds of fi- nancial services which are being offered, (3) the extent to which foreign countries deny national treatment to United States banking organiza- tions and securities companies, and (4) the ef- forts undertaken by the United States to elimi- nate such discrimination. The report shall focus on those countries in which there are significant denials of national treatment which impact United States financial firms. The report shall also describe the progress of discussions pursu- ant to section 5353 of this title. (Pub. L. 100–418, title III, § 3602, Aug. 23, 1988, 102 Stat. 1387.) § 5353. Fair trade in financial services (a) Discussions When advantageous the President or his des- ignee shall conduct discussions with the govern- ments of countries that are major financial cen- ters, aimed at: (1) ensuring that United States banking or- ganizations and securities companies have ac- cess to foreign markets and receive national treatment in those markets; (2) reducing or eliminating barriers to, and other distortions of, international trade in fi- nancial services; (3) achieving reasonable comparability in the types of financial services permissible for financial service companies; and (4) developing uniform supervisory standards for banking organizations and securities com- panies, including uniform capital standards. (b) Consultation before discussions Before entering into those discussions, the President or his designee shall consult with the committees of jurisdiction in the Senate and the House of Representatives. (c) Recommendations After completing those discussions and after consultation with the committees of jurisdic- tion, the President shall transmit to the Con- gress any recommendations that have emerged from those discussions. Any recommendations for changes in United States financial laws or practices shall be accompanied by a description of the changes in foreign financial laws or prac- tices that would accompany action by the Con- gress, and by an explanation of the benefits that would accrue to the United States from adop- tion of the recommendations.