§ 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.

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.

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 Title 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 §§ 1000.503 and 1000.504, 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, all of the following are prohibited during any year (as defined in § 1000.321) commencing with the effective date:

(1) Positive direct investment (as defined in § 1000.306(a)) by a direct investor in affiliated foreign nationals of such direct investor in Schedule A or B countries;

(2) A positive net transfer of capital (as defined in § 1000.313(c)) by a direct investor to affiliated foreign nationals of such direct investor in Schedule C countries; and

(3) Reinvestment by a direct investor of any portion of its share in the total earnings of incorporated affiliated foreign nationals of such direct investor in Schedule C countries (calculated in accordance with § 1000.306).

(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 Federal 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 §§ 1000.503 and 1000.504 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]

§ 1000.203 Liquid foreign balances.

(a) For purposes of this section:

(1) The term "foreign balances" means money on deposit in a foreign bank (as defined in § 1000.317), including certificates of deposit and fixed interest 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) The term "direct investment liquid foreign balances" means liquid foreign balances (as defined in subparagraph (2) of this paragraph) which represent the proceeds of long-term foreign borrowings by a direct investor (as defined in § 1000.324) and which are held by the direct investor primarily in anticipation of making transfers of capital to affiliated foreign nationals of the direct investor.

(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 which identify separately all proceeds of long-term foreign borrowings which it receives, the amounts thereof held as foreign balances, liquid foreign balances and direct investment foreign balances, the uses to which the remainder of such proceeds have been put, and the income and profits earned by the direct investor from the investment and reinvestment of such proceeds in affiliated foreign nationals.

(c) Except as provided in paragraph (e) (1) of this section and as otherwise provided by the Secretary by means of rulings, instructions, authorizations, waivers, 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 direct investment liquid foreign balances) held by such direct investor to an amount not in excess of the average end-of-month amounts of the same so held by such direct investor (whether or not a direct investor at that time) during 1965 and 1966; and, thereafter, to limit the amount of such balances held by the direct investor at the end of any month to such reduced amount.

(d) (1) Except as provided in subparagraph (2) of this paragraph (d) and in paragraph (e) (2) of this section, and as otherwise permitted by the Secretary by means of rulings, instructions, authorizations, waivers, exemptions or otherwise, each direct investor which holds direct investment liquid foreign balances as of the end of any year commencing with the year 1968 shall be prohibited from making a positive net transfer of capital to any scheduled area during such year pursuant to the authorizations contained in § 1000.503 or § 1000.504.

(2) Any direct investor affected by the provisions of subparagraph (1) of this paragraph during any year may deliver to the Secretary, within 45 days after the end of such year, a certificate executed by the direct investor or a duly authorized representative stating the amount of direct investment liquid foreign balances held by the direct investor as of the end of such year and certifying that the expenditure thereof in making the positive net transfers of capital which were actually made by the direct investor during such year, and the liquidation and return of such direct investment liquid foreign balances to the United States, would have contravened express representations made by the direct investor to, or restrictions imposed on the direct investor by, persons from whom the relevant long-term foreign borrowings were obtained (as conditions to obtaining such borrowings) or would have created a substantial probability of material adverse United States or foreign tax consequences to the direct investor. The certificate shall set forth all facts supporting the certification made therein. The provisions of subparagraph (1) of this paragraph (d) shall not apply to a direct investor with respect to any year for which a certificate has been filed as provided herein.

(3) For purposes of § 1000.313 (d) (1), any proceeds of long-term foreign borrowings which, because of the provisions of subparagraph (1) of this paragraph (d), are expended by a direct investor in making transfers of capital to any scheduled area, may, at the option of the direct investor, be reallocated to subsequent transfers of capital made by the direct investor to other scheduled areas, regardless of when such subsequent transfers of capital are made. A direct investor which makes a reallocation under this subparagraph (3) shall be deemed, at the time of such reallocation, to have made a transfer of capital (equal to the amount so reallocated) to the scheduled area in which the proceeds of the long-term foreign borrowings were invested immediately prior to the reallocation.

(e) (1) A direct investor shall not be required to comply with the provisions of paragraph (c) of this section at any time when the total foreign balances of the direct investor do not exceed $25,000.

(2) A direct investor which, as of the end of any year, has total foreign balances not exceeding $25,000, shall not be subject to the provisions of paragraph (d) (1) of this section with respect to such year.

[33 F.R. 8660, June 13, 1968, as amended at 33 F.R. 11271, Aug. 8, 1968; 33 F.R. 11708, Aug. 17, 1968]

Anything in this part to the contrary notwithstanding, any transaction for the purpose of, or which has the effect of, evading or avoiding any of the provisions set forth in this part may be disregarded in whole or in part for purposes of measuring compliance with the provisions of this part.

[33 F.R. 50, Jan. 3, 1968]

Subpart C-General Definitions § 1000.301 Foreign country.

The term "foreign country" includes, but not by way of limitation:

(a) The state and the government of any foreign country as well as any political subdivision, agency, or instrumentality thereof or any territory, dependency, colony, protectorate, mandate, dominion, possession or place subject to the jurisdiction thereof.

(b) Any other government (including any political subdivision, agency, or instrumentality thereof) to the extent and