3 Key Groups Back Foreign Investment Monitoring Plan

Three of the nation’s largest business groups Wednesday threw their support behind a Bush Administration proposal to improve monitoring of foreign investments and impose tough criminal penalties for wrongful disclosure or fraud.

The U.S. Chamber of Commerce, the National Assn. of Manufacturers and the Assn. for International Investment said they supported the bill, introduced by Reps. Norman Lent (R-N.Y.) and Sen. James Exon (D-Neb.).

The groups testified before the House subcommittee on commerce, consumer protection and competitiveness. The subcommittee sought views concerning the Lent-Exon bill, one of four legislative proposals aimed at improving surveillance of foreign investments.

Pressure is mounting for Congress to pass a law that will monitor foreign investments because some business officials and politicians are concerned that Japanese and foreign investors are gobbling up U.S. real estate, businesses and other assets.

“The average citizen in Hometown, U.S.A. wants to know if anyone in Washington knows what’s going on--and what is the federal government doing to guard against unacceptable foreign control and domination,” said subcommittee Chairman Doug Walgren.