Section 11 of the 1974 Amendments amends Section 3 of the Export Administration Act of 1969 by adding at the end thereof the following new paragraph:

(7) It is the policy of the United States to use export controls, including license fees, to secure the removal by foreign countries of restrictions on access to supplies where such restrictions have or may have a serious domestic inflationary impact, have caused or may cause a serious domestic shortage, or have been imposed for purposes of influencing the foreign policy of the United States. In effecting this policy, the President shall make every reasonable effort to secure the removal or reduction of such restrictions, policies, or actions through international cooperation and agreement before resorting to the imposition of controls on the export of materials from the United States: Provided, That no action taken in fulfillment of the policy set forth in this paragraph shall apply to the export of medicine or medical supplies.

Senate Rept. No. 93–1024, 93d Cong., 2d Sess., July 22, 1974, pp. 5-6.

Export Licenses

On July 19, 1974, Secretary of Commerce Frederick B. Dent, announced that effective at 12:00 noon that day validated export licenses would be required for each shipment of any instruments and equipment particularly useful in crime control and detection to the following destinations: Albania, Bulgaria, Czechoslovakia, East Germany, Estonia, Hungary, Latvia, Lithuania, Outer Mongolia, the People's Republic of China, Poland, Romania, and the Soviet Union.

Mr. Dent stated that the new licensing requirements were being imposed under the foreign policy provisions of the Export Administration Act of 1969, as amended (P.L. 91-184, 83 Stat. 841). He emphasized the government's concern with potential uses to which such equipment could be put, as well as continuing interest in the welfare of persons who seek to exercise their fundamental rights. He stated that the new controls were instituted in consultation with the Department of State and other agencies and had the express concurrence of Secretary of State Kissinger.

Dept. of Commerce News, No. G 74–136, July 19, 1974; also Export Administration Bulletin, No. 119, July 19, 1974. The new license requirement applies, but is not limited to, such equipment as: voice print identification or analysis equipment; psychological stress analysis equipment; mobile crime science laboratories; nonmilitary gas masks and bullet-proof vests, helmets and shields; nonmilitary arms such as shotguns, stun guns, dart guns and riot guns; infrared and ultraviolet ray film, plates and filters; photographic equipment especially designed for crime control and detection; equipment for reading, fixing, removing, preserving, processing and coding fingerprints; ballistics laboratory equipment;

document authentication equipment; metal detecting and other special purpose searching equipment and devices; identification document production and authentication equipment; and restraint devices.

The regulations are found in a new § 376.14 of the Export Administration Regulations at 15 CFR § 376.

On December 30, 1974, Secretary Dent announced the removal, effective midnight December 31, 1974, of all ferrous scrap export control quotas and licensing requirements. He stated that shortages and serious inflationary impact caused by foreign demand were required in order to impose or retain export controls in short supply situations. He noted that the current world and domestic economic downturn had resulted in reduced domestic and foreign demand.

Dept. of Commerce News, No. G 74-213, Dec. 30, 1974.

Export-Import Bank

Export-Import Bank Amendments of 1974

The Export-Import Bank Amendments of 1974 (P.L. 93-646; 88 Stat. 2333; approved January 4, 1975) amend the Export-Import Bank Act of 1945 (12 U.S.C. 635). The Amendments extend the life of the Export-Import Bank for four years, increase its overall commitment authority, provide an opportunity for congressional review of major transactions, permit regular reassessment of the Bank's authority to extend credits to Communist countries, and make changes in the law governing the Bank's policies and practices. The Amendments are as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE

Section 1. This Act may be cited as the "Export-Import Bank Amendments of 1974."

CHARTER AMENDMENTS

Sec. 2. Section 2(a) (1) of the Export-Import Bank Act of 1945 is amended

(1) by inserting in the third sentence immediately after "other evidences of indebtedness:" the following: "to guarantee, insure, coinsure, and reinsure against political and credit risks of loss;"; (2) by inserting in the third sentence immediately after "competent jurisdiction;" the following: "to represent itself or to contract for representation in all legal and arbitral proceedings outside the United States:"; and

(3) by inserting after the fourth sentence the following new sentence: "The Bank is authorized to publish or arrange for the publication of any documents, reports, contracts, or other material necessary in connection with or in furtherance of its objects and purposes without regard to the provisions of section 501 of title

44, United States Code, whenever the Bank determines that publication in accordance with the provisions of such section would not be practicable.".

POLICY

Sec. 3. Section 2(b)(1) of the Export-Import Bank Act of 1945 is amended to read as follows:

"(b) (1) (A) It is the policy of the United States to foster expansion of exports of goods and related services, thereby contributing to the promotion and maintenance of high levels of employment and real income and to the increased development of the productive resources of the United States. To meet this objective, the ExportImport Bank is directed, in the exercise of its functions, to provide guarantees, insurance, and extensions of credit at rates and on terms and other conditions which are competitive with the Governmentsupported rates and terms and other conditions available for the financing of exports from the principal countries whose exporters compete with United States exporters. The Bank shall, in cooperation with the export financing instrumentalities of other governments, seek to minimize competition in Government-supported export financing. The Bank shall, on a semiannual basis, report to the appropriate committees of Congress its actions in complying with these directives. In this report the Bank shall include a survey of all other major export-financing facilities available from other governments and government-related agencies through which foreign exporters compete with the United States exporters and indicate in specific terms the ways in which the Bank's rates, terms, and other conditions compare with those offered from such other governments directly or indirectly. Further, the Bank shall at the same time survey a representative number of United States exporters and United States commercial lending institutions which provide export credit to determine their experience in meeting financial competition from other countries whose exporters compete with United States exporters. The results of this survey shall be included as part of the semiannual report required by this subparagraph. The Bank shall also include in the semiannual report a description of each loan by the Bank involving the export of any product or service related to the production, refining or transportation of any type of energy or the development of any energy resource with a statement assessing the impact, if any, on the availability of such products, services, or energy supplies thus developed for use within the United States.

"(B) It is further the policy of the United States that loans made by the Bank shall bear interest at rates determined by the Board of Directors of the Bank, taking into consideration the average cost of money to the Bank as well as the Bank's mandate to support United States exports at rates and on terms and conditions which are competitive with exports of other countries; that the Bank in the exercise of its functions should supplement and encourage, and not compete with, private capital; that the Bank shall accord equal opportunity to export agents and managers, independent export firms, and small commercial banks in the formulation and imple

mentation of its programs; that the Bank shall give due recognition to the policy stated in section 2(a) of the Small Business Act that 'the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns in order to preserve free competitive enterprise' and that in furtherance of this policy the Board of Directors shall designate an officer of the Bank who shall be responsible to the President of the Bank for all matters concerning or affecting small business concerns and who, among other duties, shall be responsible for advising small businessmen of the opportunities for small business concerns in the functions of the Bank and for maintaining liaison with the Small Business Administration and other departments and agencies in matters affecting small business concerns; that loans, so far as possible consistent with the carrying out of the purposes of subsection (a) of this section, shall generally be for specific purposes, and, in the judgment of the Board of Directors, offer reasonable assurance of repayment; and that in authorizing any loan or guarantee, the Board of Directors shall take into account any serious adverse effect of such loan or guarantee on the competitive position of United States industry, the availability of materials which are in short supply in the United States, and employment in the United States.”.

NATIONAL INTEREST DETERMINATIONS

Sec. 4. Section 2(b) (2) of the Export-Import Bank Act of 1945 is amended to read as follows:

"(2) The Bank in the exercise of its functions shall not guarantee, insure, or extend credit, or participate in any extension of credit—

"(A) in connection with the purchase or lease of any product by a Communist country (as defined in section 620 (f) of the Foreign Assistance Act of 1961), or agency, or national thereof, or

"(B) in connection with the purchase or lease of any product by any other foreign country, or agency or national thereof, if the product to be purchased or leased by such other country, agency, or national is, to the knowledge of the Bank, principally for use in, or sale or lease to, a Communist country (as so defined), unless the President determines that guarantees, insurance, or extensions of credit in connection therewith to such Communist or such other country or agency or national thereof would be in the national interest. The President shall make a separate determination with respect to each transaction in which the Bank would extend a loan to such Communist or such other country, or agency, or national thereof an amount of $50,000,000 or more. Any determination required under the first sentence of this paragraph shall be reported to the Congress not later than the earlier of thirty days following the date of such determination, or the date on which the Bank takes final action on a transaction which is the first transaction involving such country or agency or national after the date of enactment of the Export-Import Bank Amendments of 1974, unless a determination with respect to such country or agency or national has been made and reported prior to such date of enactment. Any determination required to be made under the second sentence of this paragraph shall be reported to the

Congress not later than the earlier of thirty days following the date of such determination or the date on which the Bank takes final action on the transaction involved."

CONGRESSIONAL NOTIFICATION

Sec. 5. Section 2(b) of the Export-Import Bank Act of 1945 is amended

(1) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6) respectively; and

(2) by inserting after paragraph (2) the following new paragraph:

(3) No loan or financial guarantee or combination thereof in an amount which equals or exceeds $60,000,000 shall be finally approved by the Board of Directors of the Bank, and no loan or financial guarantee or combination thereof which equals or exceeds $25,000,000 for the export of goods or services involving research, exploration, or production of fossil fuel energy resources in the Union of Soviet Socialist Republics shall be finally approved by the Board of Directors of the Bank, unless in each case the Bank has submitted to the Congress with respect to such loan, financial guarantee, or combination thereof, a detailed statement describing and explaining the transaction, at least 25 days of continuous session of the Congress prior to the date of final approval. For the purpose of the preceding sentence, continuity of a session of the Congress shall be considered as broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain shall be excluded in the computation of the 25 day period referred to in such sentence. Such statement shall contain

"(A) a brief description of the purposes of the transaction, the identity of the party or parties requesting the loan or financial guarantee, the nature of the goods or services to be exported, and the use for which the goods or services are to be exported; and

"(B) a full explanation of the reasons for Bank financing of the transaction, the amount of the loan to be provided by the Bank, the approximate rate and repayment terms at which such loan will be made available and the approximate amount of the financial guarantee."

FRACTIONAL CHARGE OF GUARANTEES AND INSURANCE

Sec. 6. Section 2(c) (1) of the Export-Import Bank Act of 1945 is amended to read as follows:

"(c) (1) The Bank is authorized and empowered to charge against the limitations imposed by section 7 of this Act, not less than 25 per centum of the related contractual liability which the Bank incurs for guarantees, insurance, coinsurance, and reinsurance against political and credit risks of loss. The aggregate amount of guarantees, insurance, coinsurance, and reinsurance which may be charged on this fractional basis pursuant to this section shall not exceed $20,000,