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§ 945.6 Agreements for radio and television weather broadcasts.

(a) Radio stations often desire to make special arrangements for the broadcast of daily weather forecasts, special warnings, and other weather information under commercial sponsorship. In such cases the Weather Bureau obtains an agreement setting forth conditions under which the broadcasts are to be made. This agreement specifies the regular time schedules of the broadcast; that the information be given exactly as issued by the Bureau; that while it is permissible to announce immediately before and at the conclusion of the weather broadcast that it is furnished by the courtesy of a sponsor, care must be exercised to avoid the implication that the forecasts are made or paid for by the

advertiser; and that there shall be nothing in the announcement associated with weather broadcasts to indicate that the Weather Bureau or the Government endorses the sponsor or the product advertised.

(b) An agreement is also required between the Weather Bureau and any radio or television station that wishes to install equipment or make other arrangements for direct broadcasts from a Weather Bureau office.

(c) No charge is made to the radio or television stations or the sponsor for weather information intended for public distribution. However, if there are communication tolls or leased wire charges in connection with the delivery of such information to the radio or television stations, such charges are borne by the radio or television stations or the sponsor.

CHAPTER X-OFFICE OF FOREIGN DIRECT INVEST

MENTS, DEPARTMENT OF COMMERCE

Part

1000 Foreign direct investment regulations.

1020 Investigative procedures.

1025 Settlement procedures.

1030 Procedures and rules of practice for formal administrative proceedings. 1035 Rules of practice for appeals in proceedings originating under Part 1030. 1040 Compliance procedures: reports, advisory opinions, and enforcement. 1050 Miscellaneous rules.

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1000.1102 Authorized positive direct investment in Canada.

1000.1103 Net transfer of capital to Schedule B countries.

1000.1104 Reinvested earnings-Schedule B countries.

1000.1105 Foreign balances.

1000.1106 Long-term foreign borrowing. 1000.1107 Canadian program.

Subpart M-Affiliated Foreign Nationals of Air Carriers Engaged in Foreign Air Transportation 1000.1301 Exclusions. 1000.1302 Foreign air transport allowable. 1000.1303 Adjustments to minimum and in

cremental earnings allowables.

AUTHORITY: The provision of this Part 1000 issued under sec. 5, 40 Stat. 415, as amended, 12 U.S.C. 95a; E.O. 11387, Jan. 1, 1968, 33 F.R. 47.

NOTE: For interpretive analysis and statements in reference to Part 1000, see the List of Sections Affected.

Subpart A-Relation of This Part to Other Laws and Regulations

§ 1000.101 Relation of this part to other laws and regulations.

(a) This part is independent of 31 CFR, Chapter V. The prohibitions contained in this part are in addition to the prohibitions contained in said Chapter V. No license contained in or issued pursuant to said Chapter V shall be deemed to authorize any transaction prohibited by this part, nor shall any license or authorization issued pursuant to any other provision of law be deemed to authorize any transaction so prohibited.

(b) No authorization or exemption contained in or issued pursuant to this part shall be deemed to authorize any transaction to the extent that it is prohibited by reason of the provisions of any law or statute other than 12 U.S.C. 95a, as amended, or any proclamation, order, or regulation other than those contained in or issued pursuant to Executive Order 11387 or this part.

(c) No authorization or exemption contained in or issued pursuant to this part shall be deemed to authorize any transaction to the extent that it is prohibited by reason of the provisions of any part of Title 31 CFR. [33 F.R. 49, Jan. 3, 1968]

Subpart B-Prohibitions

§ 1000.201 Prohibited direct investment in affiliated foreign nationals.

(a) Except as provided in this part, and as otherwise permitted by the Secretary of Commerce (hereinafter referred to as the Secretary) by means of rulings, instructions, authorizations, waivers, exemptions or otherwise, positive direct investment by a direct investor in affiliated foreign nationals of such direct investor in Schedule A, B, or C countries is prohibited during any year (as defined in § 1000.321) commencing with the effective date.

(b) (1) All transactions prohibited by section 1 of Executive Order 11387 which are not prohibited by this part are hereby authorized.

(2) To the extent delineated from time to time by. the Board of Governors of the Federal Reserve System nothing in this part shall apply to any bank or other financial institution certified by the Board as being subject to the Fed

eral Reserve Foreign Credit Restraint Program, or to any program instituted by the Board under section 2 of Executive Order 11387.

(c) Nothing contained in this part shall be construed to limit the right of a person within the United States to make a bona fide transfer of capital or earnings in the ordinary course of business to a foreign national in respect of an interest in such person held by such foreign national.

(d) In addition to all other powers reserved to the Secretary in this part, the Secretary may in his discretion, as to any direct investor, amend or revoke the authorizations set forth in this part by reducing the amount of positive direct investment, positive net transfers of capital and reinvestment of earnings authorized in any scheduled area during a year, by limiting the application of such authorizations and exemptions and of § 1000.201 from "during any year" to periods shorter than a year, and by otherwise imposing such conditions as the Secretary shall deem appropriate to carry out the purposes of this part. In exercising his discretion with respect to any direct investor, the Secretary may consider, among other factors, the following:

(1) Whether the positive direct investment, positive net transfers of capital or reinvestment of earnings by such direct investor in any scheduled area during any quarter is, or may reasonably be estimated to be, materially in excess of 25 percent of the amount thereof generally authorized to such direct investor during the year;

(2) Whether the transactions resulting in such excess during such quarter are in accordance with the customary business practices of the direct investor; and

(3) Whether the direct investor has complied with the provisions of Subpart F of this part.

[33 F.R. 8659, June 13, 1968, as amended at 33 F.R. 11070, Aug. 17, 1968; 34 F.R. 9067, June 7, 1969]

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deposits of such a bank, negotiable instruments, nonnegotiable instruments acquired after June 30, 1968 and commercial paper of an unaffiliated foreign national (other than negotiable instruments, nonnegotiable instruments or commercial paper arising from the export by the direct investor of goods or services from the United States to foreign nationals) and securities issued or guaranteed by a foreign country.

(2) The term "liquid foreign balances" means foreign balances (as defined in subparagraph (1) of this paragraph) other than (i) those negotiable instruments, nonnegotiable instruments, commercial paper and securities which are acquired on or before June 30, 1968, and which are not redeemable at the option of the direct investor and are not transferable and readily marketable; (ii) bank deposits, negotiable instruments, nonnegotiable instruments, commercial paper and securities with a period of more than 1 year remaining to maturity when acquired by the direct investor and which are not redeemable in full at the option of the direct investor within a period of 1 year after such acquisition; (iii) foreign balances which are subject to restrictions of a foreign country on liquidation and transfer; and (iv) foreign balances which have been pledged or hypothecated in connection with borrowings by a direct investor or its affiliated foreign nationals.

(3) [Reserved]

(4) Foreign balances shall be deemed to be held by a direct investor if title to such balances is held (i) by any person (including an affiliated foreign national of the direct investor) principally formed or availed of for the purpose of holding title to such balances; or (ii) by any person (including an affiliated foreign national of the direct investor), if such balances are returnable to the direct investor on its demand without material conditions and if the holding of such balances is unrelated to the business needs of such person.

(5) Negotiable instruments, non-negotiable instruments, commercial paper and securities constituting foreign balances shall be valued at their respective fair market values or, if evidence of fair market value is not readily available, at the cost to the direct investor.

(b) Each direct investor shall maintain books and records that identify separately all proceeds of long-term foreign

borrowing received with respect to each long-term foreign borrowing made by the direct investor and the uses to which such proceeds have been put.

(c) Except as provided in paragraph (e) (1) of this section or as permitted by the Secretary by means of authorizations, exemptions or otherwise, each direct investor is hereby required, on or before June 30, 1968, to reduce the amount of liquid foreign balances (other than available proceeds, as defined in § 1000.324 (d), held in the form of liquid foreign balances) held by such direct investor to an amount not in excess of the average end-of-month amounts of such balances held by such direct investor during 1965 and 1966 (whether or not a direct investor at that time); and, thereafter, to limit the amount of such balances held by such direct investor at the end of any month to such reduced amount.

(d) (1) Except as provided in paragraph (e) (2) of this section, or as permitted by the Secretary by means of authorizations, exemptions or otherwise, a direct investor which holds available proceeds, as defined in § 1000.324(d), in the form of foreign balances or in the form of securities (including debt obligations, equity interests and any other type of investment contract) of foreign nationals or in the form of any other foreign property as of the end of any year commencing with the year 1969 shall be prohibited from making a positive net transfer of capital to any scheduled area for such year, but only to the extent such positive net transfer of capital results in positive direct investment in such scheduled area for such year that is not authorized by § 1000.1002: Provided, That this subparagraph shall not apply to a direct investor which elects to be governed by § 1000.503 for such year: And provided further, That for purposes of this subparagraph, allocations to positive direct investment under § 1000.306 (e) or subparagraph (2) of this paragraph and reallocations under subparagraph (3) of this paragraph shall be deemed to reduce any positive net transfer of capital to a scheduled area and thereafter to reduce any reinvested earnings in such scheduled area.

(2) A direct investor which, during 1968 or any succeeding year, expends proceeds of long-term foreign borrowing and makes a deduction from net transfer of capital to a scheduled area under

§ 1000.313 (d) (1), may thereafter deduct, during 1969 or any succeeding year, from positive direct investment in a different scheduled area, an amount equal to all or a part of such expended proceeds as are allocated pursuant to this subparagraph. Proceeds shall be allocated in a different scheduled area pursuant to this subparagraph if (i) an entry is made in the books and records maintained by the direct investor under paragraph (b) of this section and § 1000.601; (ii) the allocation and the deduction from positive direct investment in a different scheduled area are reported on the next annual report of the direct investor (Form FDI-102F) filed for the year for which the deduction is made; and (iii) the proceeds with respect to which such deduction is made, as of the end of the year for which the deduction is made and thereafter, are not held, directly or indirectly, in the form of foreign balances or in the form of securities (including debt obligations, equity interests and any other type of investment contract) of foreign nationals or in the form of any other foreign property: Provided, That such proceeds may remain expended in an affiliated foreign national or again be expended at any time in making transfers of capital to affiliated foreign nationals, but if so again expended, §1000.313 (d) (1) shall not apply. The direct investor shall be deemed at the time of such deduction from positive direct investment in a different scheduled area to have made a transfer of capital equal to the amount of such deduction to the scheduled area in which the deduction from net transfer of capital under § 1000.313 (d) (1) was previously made. The direct investor may thereafter continue to change the scheduled area in which a deduction from positive direct investment is made, up to the amount of proceeds of long-term foreign borrowing expended in making the original transfer of capital for which a deduction under § 1000.313 (d) (1) was made: Provided, That each time such change occurs, the direct investor shall be deemed to have made a transfer of capital to the immediately previous scheduled area in the amount of the deduction from positive direct investment in the subsequent scheduled area.

(3) A direct investor which, during 1968 or any succeeding year, allocates proceeds of long-term foreign borrowing and deducts the amount of such proceeds from positive direct investment in a

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