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CONTEMPT PROCEEDINGS AGAINST
SECRETARY OF COMMERCE, ROGERS C. B. MORTON

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FIRST SESSION
INQUIRING INTO THE NATURE AND SCOPE OF THE ARAB
BOYCOTT, ITS IMPACT ON DOMESTIC COMMERCE, AND THE

AVAILABILITY OF INFORMATION TO CONGRESS

SEPTEMBER 22; OCTOBER 21 AND 22; AND NOVEMBER 11, 1975

Serial No. 94-45

Printed for the use of the
Committee on Interstate and Foreign Commerce

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1975

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COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

HARLEY O. STAGGERS, West Virginia, Chairman TORBERT H. MACDONALD, Massachusetts SAMUEL L. DEVINE, Ohio JOHN E. MOSS, California

JAMES T. BROYHILL, North Carolina JOHN D. DINGELL, Michigan

TIM LEE CARTER, Kentucky PAUL G. ROGERS, Florida

CLARENCE J. BROWN, Ohio LIONEL VAN DEERLIN, California

JOE SKUBITZ, Kansas FRED B. ROONEY, Pennsylvania

JAMES F. HASTINGS, New York JOHN M. MURPHY, New York

JAMES M. COLLINS, Texas DAVID E. SATTERFIELD III, Virginia LOUIS FREY, JR., Florida BROCK ADAMS, Washington

JOHN Y. McCOLLISTER, Nebraska W. S. (BILL) STUCKEY, JR., Georgia NORMAN F. LENT, New York BOB ECKHARDT, Texas

H. JOHN HEINZ III, Pennsylvania RICHARDSON PREYER, North Carolina EDWARD R. MADIGAN, Illinois JAMES W. SYMINGTON, Missouri

CARLOS J. MOORHEAD, California CHARLES J. CARNEY, Ohio

MATTHEW J. RINALDO, New Jersey
RALPH H. METCALFE, Illinois
GOODLOE E. BYRON, Maryland
JAMES H. SCHEUER, New York
RICHARD L. OTTINGER, New York
HENRY A. WAXMAN, California
ROBERT (BOB) KRUEGER, Texas
TIMOTHY E. WIRTH, Colorado
PHILIP R. SHARP, Indiana
WILLIAM M. BRODHEAD, Michigan
W. G. (BILL) HEFNER, North Carolina
JAMES J. FLORIO, New Jersey
ANTHONY TOBY MOFFETT, Connecticut
JIM SANTINI, Nevada
ANDREW MAGUIRE, New Jersey

W. E. WILLIAMSON, Clerk
KENNETH J. PAINTER, Assistant Clerk

SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

JOHN E. MOSS, California, Chairman
RICHARD L. OTTINGER, New York JAMES M. COLLINS, Texas
ROBERT KRUEGER, Texas

NORMAN F. LENT, New York
ANTHONY TOBY MOFFETT, Connecticut EDWARD R. MADIGAN, Illinois
JIM SANTINI, Nevada

MATTHEW J. RINALDO, New Jersey
W. S. (BILL) STUCKEY, JR., Georgia SAMUEL L. DEVINE, Ohio (Ex Officio)
JAMES H. SCHEUER, New York
HENRY A. WAXMAN, California
PHILIP R. SHARP, Indiana
ANDREW MAGUIRE, New Jersey
HARLEY O. STAGGERS, West Virginia
(Ex Officio)

MICHAEL R. LEMOV, Chief Counsel
THOMAS GREENE, Counsel to the Chairman

KIRK C. SMITH, Special Assistant
LESTER BROWN, Research Assistant
MICHAEL F. BARRETT, Senior Counsel

ROBERT CLARKE BROWN, Counsel
RICHARD FALKNOR, Special Assistant

LISA C. WILES, Clerk
BERNARD J. WUNDER, Jr., Minority Counsel

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LETTER OF TRANSMITTAL

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C., November 21, 1975.
Hon. HARLEY O. STAGGERS,
Chairman, Committee on Interstate and Foreign Commerce, Wash-

ington, D.C. DEAR MR. CHAIRMAN: I am transmitting herewith hearings and documents concerning the subcommittee's inquiry into the nature and scope of the Arab boycott, its impact on domestic commerce, and the availability of information to Congress. The intent of this document is to serve as necessary background for Members of the Interstate and Foreign Commerce Committee and the House of Representatives in their deliberations on the pending contempt proceedings against Secretary of Commerce, Rogers C. B. Morton.

On November 11, 1975, the Subcommittee found Secretary Morton in contempt of Congress by a vote of 10 to 5 and directed me to forward this information to you for appropriate action by the Committee on Interstate and Foreign Commerce. The subcommittee's action was taken because the Secretary repeatedly refused to comply with a duly authorized subpoena for Arab boycott reports which were compiled by the Department of Commerce pursuant to the Export Administration Act. (50 U.S.C. App. 2401--2413)

The Subcommittee needs the information withheld by Secretary Morton in order to evaluate the impact of the Arab boycott on American commerce, to find out whether Federal laws related to the boycott (such as the Federal Trade Commission Act and the Securities Exchange Act) are being enforced, and to determine whether new law is needed.

Secretary Morton has refused to comply with the subpoena on the grounds that to do so would violate 7(c), the confidentiality section of the Act. In so doing, he has relied on an opinion of the Attorney General.

The Export Administration Act requires that American firms must report to the Department of Commerce all requests to participate in the Arab trade boycott against Israel and firms doing business with Israel. Section 7(c) of the Act (50 U.S.C. App. 2406(c)) provides:

No department, agency, or official exercising any functions under this Act shall publish or disclose information obtained hereunder which is deemed confidential or with ref

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