[Congressional Record Volume 142, Number 120 (Thursday, September 5, 1996)]
[Senate]
[Pages S9959-S9960]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              PROTECTING U.S. BUSINESSES OPERATING ABROAD

  Mr. SHELBY. Mr. President, I rise today to inform my colleagues in 
the Senate of another case where a foreign government is punishing an 
American company for no legitimate reason. The United States must stand 
up against such actions by foreign governments and end such unfair and 
unwarranted treatment of our citizens.
  Some years ago, two of my constituents, Bill and Allan MacDonald, 
respected businessmen in Alabama and the United States, invested in 
Bermuda's struggling cable television system. The MacDonalds were 
encouraged to make their initial investment by the Bermudian Government 
because of the poor state of the cable television system. The 
MacDonalds devoted not only sizeable amounts of time and energy to this 
effort, but they also invested sizeable amounts of their own money to 
upgrade the cable television system.
  Contrary to the expectations of some Bermudians, the MacDonalds 
turned the company around and the company began making money. As soon 
as the business began to do well, some Bermudians began to try to wrest 
the business away from the MacDonalds. These Bermudian citizens, with 
the help of their Government, are determined to take control of the 
company away from the MacDonalds now that the company is doing well. My 
question to the Senate today is: Will the U.S. Government let this 
happen?
  Mr. President, the U.S. Government and the State Department in 
particular must do a better job of protecting U.S. businesses operating 
abroad. We must make sure that foreign countries know that we will not 
tolerate unfair trade practices against American companies or citizens.
  Mr. President, I do not know if we can get the Bermudian Government 
to treat the MacDonalds fairly, but one thing we can do is make sure 
that Bermudian companies do not receive more favorable treatment in the 
United States than United States companies receive in Bermuda. It is my 
understanding that a Bermudian company, Telebermuda, has applied for a 
general landing license to the Federal Communications Commission [FCC]. 
Under U.S. law the FCC may not grant such a license without the 
approval of the

[[Page S9960]]

Secretary of State. In addition, this same law states that ``the 
President [FCC] may withhold * * * such license when he shall be 
satisfied after notice and hearings that such action will assist . . . 
in maintaining the rights or interests of the United States or of its 
citizens in foreign countries * * * .'' I have requested the Secretary 
of State to withhold his approval of Telebermuda's license application, 
until the case involving my constituents is resolved.
  Mr. President, this case is not only important to my constituents, it 
is important for all businesses who operate overseas. It is our duty to 
ensure that they are treated fairly. We cannot allow foreign 
governments to take advantage of U.S. businesses. If the Bermudian 
telephone monopoly or other Bermudian interests want to buy the 
MacDonalds interest in Bermuda Cable they should pay the fair market 
price for the MacDonalds interest in the company. Mr. President, I am 
not asking for special treatment for the MacDonalds, but I believe they 
are entitled to receive justice.
  Mr. President, I hope that the Bermudian Government will reexamine 
this situation involving my constituents and determine that it is in 
their best interest to treat all businesses fairly and not punish 
people because they are from the United States or other foreign 
countries.

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