Foreign Policy Export Controls and American Multinational Corporations

Caporaso James , “What is the New Nationalism,” in Link Werner Feld Werner , eds., The New Nationalism: Implications for Transatlantic Relations (New York, NY: Pergamon, 1979), p. 11.

See the testimony given by the Emergency Committee on American Trade in U.S. Senate, Use of Export Controls and Export Credits for Foreign Policy Purposes, Hearings, Committee on Banking, Housing, and Urban Affairs, 1978.

Cited in Barnet Richard , Global Reach: The Power of the Multinational Corporation (New York, NY: Simon and Schuster, 1974), p. 16.

Kindleberger Charles , American Business Abroad: Six Lectures on Direct Investment (New Haven, CT: Yale University Press, 1969), p. 184.

American companies also contend that the information sought by the Commerce Department before issuing a validated license, information concerning their foreign customers and the end–uses to which these customers will direct the goods and technology bought from an American supplier, makes it appear as if these U.S. exporters are instruments of American extraterritorial controls. Clarizio Lynda Woolcock Stephen , “America Weighs Export Controls: Security versus Economic Interests,” World Today, March 1985, p. 59.

Speech of Mr. Dan Huber, Vice–President of Cargill, Inc., Atlanta, Georgia, January 26, 1980.

In U.S. Senate, Agricultural Embargoes and the Sanctity of Contracts, Hearings, Committee on Banking, Housing, and Urban Affairs, 1982, p. 3.

On the issue of extraterritoriality see U.S. Senate, Export Administration Act, Hearings, Committee on Foreign Relations, June 1983, especially the testimony of Stanley Marcuss and Kenneth Abbott.

Statement of Mr. Robert Coyle, Manager of Sales, Caterpillar Tractor, in House of Representatives, Export Controls on Oil and Gas Equipment, Committee on Foreign Affairs, 1982, p. 75.

Congressional Quarterly Weekly Report, March 9, 1985, p. 445. The Reagan Administration's alterations in the South African controls (see Table 1, first footnote) lessened the impact on U.S. computer exporters.

Congressional Quarterly Weekly Report, January 11, 1986, p. 60.

Industry Week, September 15, 1980, p. 36.

Many Western European electronics firms have indicated that they will reduce their dependence on U.S. sources of technology for this reason. Financial Times, February 17, 1984.

See the testimony of Kenneth Abbott in Export Administration Act, Hearings.

There is also the problem for American MNCs of supplying subsidiaries located within the embargoed country. Chevron, Texaco, and Xerox subsidiaries in Nicaragua have expressed concern over their access to parts and components. Fortune, May 27, 1985, p. 8.

Olmer Lionel Mr. , Undersecretary for International Trade, Commerce Department, in Export Controls on Oil and Gas Equipment, Hearings, p. 94.

U.S. Code, Export Administration Act 1979 (PL 96–72).

See Congressional Digest, June–July 1983, p. 178–180.

Renwick Robin , Economic Sanctions (Cambridge, MA: Center for International Affairs, 1981), p. 78.

Cited in U.S. Senate, Transfer of U.S. High–Technology to the Soviet Union and Soviet Bloc Nations, Report of the Committee on Governmental Affairs, 1982, p. 38.

See General Accounting Office, Suspension of Grain Sales to the Soviet Union, Unclassified Digest, March 3, 1981, p. 11.

Gladwin Thomas Walter Ingo , Multinationals Under Fire: Lessons in the Management of Conflict (New York, NY: Wiley, 1980), p. 179.

American Friends Service Committee, Automating Apartheid: U.S. Computer Exports to South Africa and the Arms Embargo (Philadelphia, PA: Narmic, 1982), p. 9.

Ibid., p. 29.

Export Controls on Oil and Gas Equipment, Hearings, p. 93.

Economist, July 10, 1982, p. 59.

Stein Jonathan , “U.S. Controls and the Soviet Pipeline,” The Washington Quarterly (Autumn 1982), p. 35.

As another example, the French Government once forced the French subsidiary of an American MNC (Fruehauf) to ignore U.S. export directives and fulfill contract obligations with the Soviets. See Behrman Jack , National Interests and the Multinational Enterprise (Englewood Cliffs, NJ: Prentice–Hall, 1970), p. 108–111.

Statement of Lionel Olmer, Export Controls on Oil and Gas Equipment, Hearings, p. 95.

Lindell Erik , “U.S.–Soviet Grain Embargoes: Regulating the Multinational Corporations,” Food Policy (August 1982), p. 244.

Economist, October 25, 1980, p. 98.

New York Times, January 29, 1986, p. A5.

New York Times, January 8, 1986, p. A7.

U.S. Code, Export Administration Act 1979 (PL 96–72).

On the failures of Presidential compliance, see Export Administration Act, Hearings, pp. 13–15.

U.S. Code, Export Administration Act of 1979, Reauthorization (July 12, 1985), (PL 99–64).

Ibid.

Ibid.