Requirement of national treatment in underwriting government debt instruments

The Congress finds that— United States firms seeking to compete in Japan face or have faced a variety of discriminatory barriers effectively precluding such firms from fairly competing for Japanese business, including— Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, any person of a foreign country as a primary dealer in government debt instruments if such foreign country does not accord to United States companies the same competitive opportunities in the underwriting and distribution of government debt instruments issued by such country as such country accords to domestic companies of such country. Paragraph (1) shall not apply to the continuation of the prior designation of a company as a primary dealer in government debt instruments if— before July 31, 1987— Subsection (b) shall not apply to any person of a foreign country if— For purposes of this section, a person is a “person of a foreign country” if that person, or any other person which directly or indirectly owns or controls that person, is a resident of that country, is organized under the laws of that country, or has its principal place of business in that country. This section shall take effect 12 months after August 23, 1988.