ule B affiliates of the direct investor during such period.

(b) In determining the direct investor's share in the total reinvested earnings of all incorporated Non-Canadian Schedule B affiliates during any period pursuant to § 1000.306(b), all incorporated and unincorporated Canadian affiliates of the direct investor shall be deemed to be in a scheduled area other than Schedule B.

[33 F.R. 8665, June 13, 1968]

§ 1000.1105 Foreign balances.

foreign

(a) The term "Canadian balances" means (1) money on deposit in a Canadian bank (including fixed interest deposits of a Canadian bank); (2) negotiable instruments, nonnegotiable instruments or commercial paper of Canadian persons; and (3) securities issued or guaranteed by the Government of Canada or any political subdivision thereof or by any agency or instrumentality of the Government of Canada or any such political subdivision.

(b) For purposes of § 1000.203 (c), the average end-of-month amounts of liquid foreign balances (other than direct investment liquid foreign balances) held by a direct investor during 1965 and 1966 and as of the end of any month commencing June 1968 shall be calculated by excluding all such liquid foreign balances then held by the direct investor which constitute Canadian foreign balances.

(c) For purposes of § 1000.203 (d), the amount of direct investment liquid foreign balances held by a direct investor as of the end of any year commencing 1968 shall be calculated by including all direct investment liquid foreign balances then held by the direct investor which constitute Canadian foreign balances. [33 F.R. 8776, June 15, 1968]

For all purposes of this part, a borrowing by a direct investor from a Canadian person, whether before or after the effective date, shall not be deemed a "longterm foreign borrowing": Provided, That, a borrowing involving the public offering, prior to April 1, 1968, of instruments of indebtedness of a direct investor, shall be considered a long-term foreign borrowing in its entirety if less than 25 percent of the aggregate principal amount of such instruments was sold to Canadian persons, or, if 25 per

cent or more of the aggregate principal amount of such instruments was sold to Canadian persons, the borrowing shall be considered a long-term foreign borrowing to the extent of the aggregate principal amount which the direct investor proves, to the satisfaction of the Secretary, to have been sold to persons other than Canadian persons: And provided further, That, a borrowing involving the public offering, on or after April 1, 1968, of instruments of indebtedness of a direct investor, shall be considered a long-term foreign borrowing in its entirety if such instruments are sold through underwriters in accordance with agreements limiting such sales to persons other than Canadian persons (other than sales to underwriters or securities dealers who are Canadian persons but who agree that they are purchasing such instruments as principals for resale to persons who are not Canadian persons and sales to agents or fiduciaries who are Canadian persons but who are acting for the benefit of persons who are not Canadian persons). [33 F.R. 8666, June 13, 1968]

§ 1000.1107 Canadian

program.

If a program for governing transfers of capital to foreign countries or the nationals thereof by Canadian affiliates and other Canadian business ventures shall hereafter be instituted by the Canadian Government or by any department or agency thereof (which program is consistent with the purposes of the regulations), the regulations will be amended appropriately with respect to transfers of capital to or from Canadian affiliates of a direct investor certified as subject to or participating in such program by the Canadian Government or such department or agency.

[33 F.R. 8666, June 13, 1968]

Subpart M-Affiliated Foreign Nationals of Air Carriers Engaged in Foreign Air Transportation

§ 1000.1301 Exclusions.

(a) For purposes of determining transfers of capital to incorporated or unincorporated affiliated foreign nationals, for any period (including the years 1965 and 1966), a direct investor who is an "air carrier" or "supplemental air carrier", engaged in "foreign air transportation" as those terms are defined in the Federal Aviation Act of 1958 as amended, 49 U.S.C. § 1301 (3), (21), and (32), may elect to exclude from such

transfers (1) flight equipment expendable parts described in Civil Aeronautics Board asset account number ("CAB No.") 1310, (ii) aircraft engines described in CAB No. 1602, and (iii) flight equipment rotable parts and assemblies described in CAB No. 1608; Provided, That if such assets are so excluded, the direct investor shall also exclude, in calculating the amount of such transfers, reserves for depreciation or obsolescence or like reserves associated with such assets, and shall exclude all charges to depreciation expense or any other charges against earnings associated with such assets; And provided further, That such assets are reasonably necessary to the direct investor's operations in foreign air transportation.

(b) The election provided under this section shall be made as to any compliance year commencing with 1968 by stating that a § 1000.1301 election is made on the cover page of the last quarterly report for such year on Form FDI-102 timely filed by the direct investor pursuant to § 1000.602(b) (2) and by filing with said Form FDI-102, if not previ

ously filed, an appropriately revised base period report on Form FDI-101. An election made pursuant to this section shall be binding and effective as to all assets meeting the requirements of paragraph (a) of this section and shall be binding and effective as to the year for which the election is made and for all succeeding years. Such an election may not thereafter be changed without the consent of the Secretary.

(Sec. 5, Act of Oct. 6, 1917, 40 Stat. 415, as amended, 12 U.S.C. 95a; E.O. 11387, Jan. 1, 1968, 33 F.R. 47) [33 F.R. 20036, Dec. 31, 1968]

99-133-6930

Part

AUTHORITY: The provisions of this Part 1101 issued under sec. 401, 76 Stat. 902; 19 U.S.C. 1802. E.O. 11075, as amended (Part 1 of this title).

SOURCE: The provisions of this Part 1101 contained in Directive No. 1, 28 F.R. 3974, Apr. 23, 1963, unless otherwise noted. Redesignated at 33 F.R. 20037, Dec. 31, 1968.

§ 1101.0 Scope and purpose.

This chapter sets out the basic terms of reference of the Office of the Special Representative for Trade Negotiations and the procedures whereby it carries out its general responsibilities under the trade agreements program. One of the primary purposes of this chapter is to inform the public of the unit in the Office known as the Trade Information Committee, the function of which is to afford an opportunity to interested parties to present oral and written statements concerning the trade agreements program and related matters.

sentative for Trade Negotiations is located at 1800 G Street NW., Washington, D.C., 20506.

[Directive No. 1, 28 F.R. 3974, Apr. 23, 1963, as amended by Amdt. 2, 30 F.R. 7754, June 16, 1965]

§ 1101.2 Organization.

(a) The Office of the Special Representative for Trade Negotiations is headed by the Special Representative for Trade Negotiations provided for in section 241 of the Trade Expansion Act of 1962 (76 Stat. 878; 19 U.S.C. 1871), who is directly responsible to the President. In addition, the Office consists of two Deputy Special Representatives for Trade Negotiations provided for in § 1.2 of this title, and a professional staff.

(b) Established by, and under the direction and control of, the Special Representative for Trade Negotiations are three interagency committees, the Trade Executive Committee, the Trade Staff Committee, and the Trade Information Committee, provided for in Part 1102 of this chapter.

[Direction No. 1, 28 F.R. 3974, Apr. 23, 1963, as amended by Amdt. 1, 30 F.R. 648, Jan. 20, 1965]

§ 1101.3 Functions.

(a) The Special Representative for Trade Negotiations (1) advises and assists the President in the administration of, and facilitates the carrying out of, the trade agreements program, and (2) advises the President with respect to

1102.1 Trade Executive Committee.
1102.2 Trade Staff Committee.
1102.3 Trade Information Committee.
1102.4 Participation by other agencies.
1102.5 Transfers.

AUTHORITY: The provisions of this Part 1102 issued under sec. 401, 76 Stat. 902; 19 U.S.C. 1802. §§ 1102.1 to 1102.4 also issued under secs. 9 and 11 of E.O. 11075, as amended (§§ 1.9 and 1.11 of this title), unless otherwise noted.

SOURCE: The provisions of this Part 1102 contained in Directive No. 1, 28 F.R. 3974, Apr. 23, 1963. Redesignated at 33 F.R. 20037, Dec. 31, 1968.

§ 1102.1 Trade Executive Committee.

(a) There is hereby established the Trade Executive Committee, which shall consist of the Deputy Special Representative for Trade Negotiations, as chairman, and of officials, who are each in status not below that of an assistant Secretary, designated from their respective agencies by the Secretaries of Agriculture, Commerce, Defense, Interior, Labor, State, and Treasury. The Special Representative for Trade Negotiations and each Secretary may designate from his respective agency an official, who is in status not below that of a Deputy Assistant Secretary, to serve as a member of the Trade Executive Committee in lieu of the regular member when the latter is unable to attend any meeting of the Committee.

(b) The Trade Executive Committee shall

(1) Plan, direct, and coordinate interagency activities concerning the trade agreements program and related matters;

(2) Recommend policies and actions, and transmit appropriate materials, to the Special Representative for Trade Negotiations concerning the trade agreements program and related matters, or, when appropriate, approve such policies and actions;

(3) Supervise and direct the activities of the Trade Staff Committee and the Trade Information Committee, established by §§ 1102.2 and 1102.3, respectively; and

(4) Perform such other functions as the Special Representative for Trade Negotiations may from time to time determine.

§ 1102.2 Trade Staff Committee.

(a) There is hereby established the Trade Staff Committee, which shall consist of a chairman designated from his Office by the Special Representative for Trade Negotiations and of officials designated from their respective agencies by the Secretaries of Agriculture, Commerce, Defense, Interior, Labor, State, and Treasury, and by the Chairman of the Tariff Commission. The Special Representative for Trade Negotiations, each Secretary, and the Chairman of the Tariff Commission may designate from his respective agency an official to serve as a member of the Trade Staff Committee in lieu of the regular member when the latter is unable to attend any meeting of the Committee. The official from the Tariff Commission will be a nonvoting member of the Trade Staff Committee, and will not participate in the discussion of any policy matter or in the consideration of any report submitted by the Tariff Commission.

(b) The Trade Staff Committee shall(1) Obtain information and advice from agencies and other sources concerning any proposed trade agreement, and furnish summaries of such information and advice, together with recommendations of action with respect thereto, to the Trade Executive Committee; (Sec. 222, 76 Stat. 875; 19 U.S.C. 1842)

(2) Review summaries of information concerning any proposed trade agreement furnished by the Trade Informa. tion Committee, and transmit such summaries, together with recommendations of action with respect thereto, to the Trade Executive Committee;

(3) Review summaries of information concerning foreign import restrictions furnished by the Trade Information Committee, and transmit recommendations of action with respect thereto, through the Trade Executive Committee to the Trade Expansion Act Advisory Committee established by 1.4 of this title;

(4) Review reports concerning tariff