ALFONSE M. D'AMATO, New York, Chairman

PAUL S. SARBANES, Maryland
DONALD W. RIEGLE, JR., Michigan
CHRISTOPHER J. DODD, Connecticut

MEV 1100

Present law is burdensome upon U.S. firms.........

International treaty outlawing bribery.....

Jurisdictional questions.......

John Chafee, U.S. Senator from the State of Rhode Island

Changes in law to remove export disincentatives..

Small businesses likely to suffer

Lionel Olmer, Under Secretary, Department of Commerce

Jonathan Rose, Assistant Attorney General for Legal Policy, Department of

Justice......

Prepared statement of Lionel Olmer.........

Introduction......

"Reason to Know" standard

Accounting provisions...............

Defining permissible payments...........

Alternatives to S. 414.

Conclusion.....

John Shad, Chairman, Securities and Exchange Commission

FCPA complaints costs greater than benefits............

Antibribery responsibilities

Prepared statement

Introduction

Accounting provisions........

Antibribery provisions....

Conclusion...

Panel discussion:

SEC primary responsibility....

S. 414 reduces ambiguous section of present law.

Foreign competitors using FCPA as a promotion

Industry at the peril of prosecutional discretion

Issues of controversy.

Companies under investigation..........

Enforcement of S. 414 accounting provisions

Denis Lamb, Department of State

Prepared statement...........

John Subak, group vice president and general counsel, Rohn & Haas Co.; on

behalf of Emergency Committee for American Trade....

Shooting ourselves in the foot..........

Prepared statement

(III)

John Subak, group vice president and general counsel, Rohn & Haas Co.; on

behalf of Emergency Committee for American Trade-Continued

Prepared statement-Continued

Summary...

Rohn & Haas Co...............

Accounting standards

Antibribery provisions.

The reason to know test..

Grease payments..............

Conclusion......

John M. Finch, partner, office of the chairman, Arthur Young & Co., chair-

man, Subcommittee on Securities, National Association of Manufacturers

William Blasier, general counsel, National Association of Manufacturers..

Prepared statement..........

Deteriorating trade balance increases need for FCPA reform

NAM supports S. 414.

Antibribery provisions of FCPA.........

Accounting provisions...............

Legitimate export businesses discouraged

Booklet entitled "U.S. Trade: Record of the 1970's-Challenge of the 1980's"

Michael A. Samuels, vice president, International, U.S. Chamber of Com-

merce.........

American business welcomes competition........

Prepared statement.......

Panel discussion:

Merchandise trade deficit..

Increase in service exports

Conduct businesses without fear of criminal prosecution