January 15, 1992
TO: BOARD OF GOVERNORS NO. 5-92
INTERNATIONAL COMMITTEE NO. 1-92
RE: INSTITUTE LETTER TO TREASURY CONCERNING GATT NEGOTIATIONS
__________________________________________________________
On December 20, 1991 GATT Director General Arthur Dunkel
released a "Draft Final Act Embodying the Results of the Uruguay
Round of Multilateral Trade Negotiations". The Dunkel draft
significantly changes the Framework of the General Agreement on
Trade in Services and the Financial Services Annex. Under one
interpretation of the Agreement, cross-border purchases, sales
and issuances of securities could be authorized without the
application of the federal securities laws.
In the attached letter to Jerry Newman, Director of
Treasury's Office of East-West Economic Policy, the Institute
requests that The Dunkel draft be clarified to provide that
cross-border purchases, sales and issuances of securities are
subject to the federal securities laws, including Section 7(d) of
the Investment Company Act of 1940.
We will keep you informed of our efforts to obtain this
clarification.
Angela C. Goelzer
Assistant Counsel - International
Attachment