Statement of Administration Policy: H.R. 3763 - Foreign Sovereign Immunity Act Amendments

(House)
(Berman (D) California and 5 others)

The Administration opposes House passage of H.R. 3763 because of provisions that are overly broad or that would create significant foreign relations problems.

In particular, the Administration opposes sunending current law to remove the prohibition on executing judgments against property owned by foreign countries that are unrelated to the underlying cause of action. The need for such a change has not been demonstrated, and the problems that would likely result could be significant. Such a provision would subject foreign countries to stricter requirements than faced by U.S. corporations and may lead to reciprocal treatment of U.S. assets by foreign countries.

In addition, the Administration opposes the definition of "commercial activity" contained in H.R. 3763 as being overly broad, because it would inappropriately subject wholly "governmental" actions of a foreign country, without its consent, to the jurisdiction of the courts of another country.

Consequently, the Administration urges that H.R. 3763 not be considered under suspension of the rules, and that the bill be amended to delete the above objectionable provisions.