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Direct Investment
in
the United States
by
Foreign Government-owned
Companies
1974-81

U.S. DEPARTMENT OF COMMERCE
International Trade Administration
Office of Trade and Investment Analysis
March 1983

Table of Contents
Page
Acknowledgement

Foreword

vii

Introduction

Methodology and Terminology
Highlights and Findings

1
2

Major Economic and Policy Issues Related to
Foreign Government-owned Investments

The Federal Response to Concern About Foreign
Direct Investment

Specific Issues Related to Foreign Government-owned or . . 6
-controlled Investments
Analysis of Investment Activity

. . . .

Transactions Figures

Principal Source Countries

Modes of Investment

Geographic Distribution of Investment

Industrial Concentration of Investment

Major Investments

Fortune 500 Companies

Three Aborted Investment Transactions

Summary

Foreign Direct Investment Glossary

iii

Page
Appendices
Appendix A -

U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Appendix B -

Direct Investment in the United States . . . . 79
by Foreign Companies Owned or Controlled
by Foreign Governments, 1974-81

Appendix C -

Major Foreign Government-owned Corporate
Investors In the United States, 1974-81

Appendix D -

Direct Investment in the United States by
Foreign Companies Owned or Controlled by
Foreign Governments, January-June 1982

. .

. . ioi

ACKNOWLEDGEMENT
The author of this study wishes to thank Bessie G. Gray, an
international economist in the Investment Analysis Division, who
assisted with the initial preparation of the tables in appendices A
and B and Andree M. Turner, of the International Economics Division,
who typed drafts of tables and text throughout the entire project.

FOREWORD
This report examines direct investments in the United States owned
or controlled either directly or indirectly by foreign governments.
It fulfills, in part, responsibilities assigned to the Secretary of
Commerce by Executive Order 11858 of May 7, 1975.
A significant portion of the data and information contained in this
report was derived from a number of secondary sources—such as
newspapers, magazines, and business and trade journals—and the
public files of the Federal regulatory agencies. While every effort
was made to verify the information herein, the U.S. Department of
Commerce cannot be held responsible for any inaccuracies or gaps in
the source data.
Federal regulatory agencies' data used in this report originated
from report series that differ widely in frequency and content.
These reports are, in most cases, filed in response to the various
agencies' general regulatory responsibilites, rather than for the
specific purpose of providing data on foreign investment. An
additional limiting factor on the scope and availability of foreign
investment information for publication is that some agencies operate
under strict confidentiality requirements that prohibit disclosure
of individual company or transaction data and permit presentation
only on an aggregate basis. The primary Federal agency sources were
the Securities and Exchange Commission (SEC), the Federal Trade
Commission (FTC), and the Federal Reserve Board (FRB).
The data and other information in this report are not based on
reports filed with the Department of Commerce's Bureau of Economic
Analysis (BEA), which has the primary responsibility for collecting
and publishing aggregate data on foreign direct investment in the
United States. Reports are filed with the Bureau on a mandatory
basis and are confidential pursuant to the International Investment
Survey Act of 1976. The BEA data are published in statistical
aggregates only; individual respondent data are not released.
The statistics in this report are not comparable to other
statistical series published by the Federal Government, especially
those published by the Department of Commerce's Bureau of Economic
Analysis. The value data, in particular, do not correspond directly
with BEA data on investment outlays for several reasons. First,
value data for a significant number of transactions identified in
this report are unavailable. Second, in some cases reported values
may differ substantially from BEA figures representing investment
outlays—the cost to investors of the equity interests acquired or
established. Values reported for these transactions may involve
capital from abroad but may also reflect borrowing and other
financing from domestic sources. Or, as in the case of real estate
transactions, real estate values sometimes reflect the ultimate cost

vii

of multiyear developments. Third, the timing (year of transaction)
may differ between the two sources. Fourth, some transactions
reported herein that are engaged in by existing foreign-owned U.S.
companies, such as plant expansions, are not covered by BEA's survey
of new investment, which relates to new equity investments.
Nevertheless, the value data contained herein provide useful
indicators of trends over time and the relative importance of major
investment characteristics—e.g., source country, concentration, and
the ranking of major transactions.
This report was prepared by Michael A. Goodwin, an international
economist, in the Investment Analysis Division in the International
Trade Administration's Office of Trade and Investment Analysis. The
office welcomes inquiries or comments on this report. They should
be addressed to Allen J. Lenz, Director, Office of Trade and
Investment Analysis, International Trade Administration, U.S.
Department of Commerce, Washington, D.C. 20230.

viii

INTRODUCTION
Foreign investment in the United States has tripled in the last
decade, expanding into many sectors of the economy. This has
spawned some concern among some citizens that foreign investment is
changing the complexion of the U.S. economy. One concern is the
issue of government-controlled investment as distinguished from
private investment. While foreign government ownership of U.S.
companies is not a new phenomenon, it is steadily increasing and
highly publicized, raising several potential issues.-'
This report is not intended as an investment policy statement, nor
does it attempt to answer policy questions raised by direct
investments owned or controlled directly or indirectly by foreign
governments. These are questions unlikely to have generic answers,
since individual investment transactions happen under varying
circumstances. Historically, significant investment transactions
have been reviewed and evaluated on an individual basis. That, in
fact, is the function of the Committee on Foreign Investment in the
United States.
This report is intended only as a source of data on individual
direct investments in the United States by foreign government-owned
or -controlled companies from 1974 through 1981. The report should
provide useful background information to those in the public, the
Congress, and other Federal agencies who have an interest in the
subject.
Methodology and Terminology
This report examines some characteristics of foreign direct
investment in the United States by government-owned or -controlled
corporations.
It is limited to an examination of the data collected
on U.S. firms with at least 10 percent foreign equity ownership as
part of the daily monitoring of public information sources by the
Office of Trade and Investment Analysis. Tables in this report are
based on these data.
This study includes foreign direct investment data collected for
1974 through 1981 and provides information on the number and value
of foreign government investment transactions, investment modes,
geographic concentration, industrial concentration, significant
transactions, and unsuccessful investment efforts.
1/

In 1982, the French Government nationalized a number of major
French industrial and banking companies, many of which have
affiliates or subsidiaries in the United States. Appendix A is
a selected list of the nationalized French firms and affected
U.S. companies.

"Foreign direct investment" as used in this report means the direct
or indirect ownership or control by a foreign person or entity of 10
percent or more of the voting securities of an incorporated U.S.
business enterprise or an equivalent interest in an unincorporated
U.S. business enterprise.
"Foreign government investment" refers to the ownership of a U.S.
corporation or U.S. property by a foreign government through its
ownership of a foreign corporation
or through state
governmental control of an agency that has at least 10 percent or
more direct or indirect ownership of the voting securities of the
U.S. firm. The glossary following this report presents a list of
additional key terms used in describing foreign direct investment in
this report.
The two-digit Standard Industrial Classifications (SIC) used in the
tables and appendix B of this report are the best overall indication
of the industrial character of the U.S. investment activity and of
the foreign investor. In cases of single product lines, the SIC
title for that product was used. In cases where firms produce
multiple product lines, the SIC title judged to describe the major
industrial line best was used.
Highlights and Findings
Based on transactions data collected from public sources from 1974
through 1981 as part of a daily monitoring program of foreign direct
investment in the United States, this report concludes the following
about direct investment by foreign companies owned or controlled by
foreign governments:
•

Foreign government investment accounted for a relatively modest
share of total foreign direct investment transactions identified
from 1974 through 1981 (2.5 percent). One hundred twenty-four
transactions were completed; 70 with known values had a total
value of $9.3 billion.

•

Foreign government-owned or -controlled corporations had direct
investments in, with, or through eight U.S. Fortune 500
companies between 1974 and 1981. Four of those companies are
petroleum exploration or petroleum refining companies.

For purposes of this report, foreign government ownership of a
foreign parent corporation is not limited to 10 percent or above.

•

During 1974-81, foreign government-owned or -controlled
investors were more interested in mining than in manufacturing.
Their metal mining, oil and gas extraction, and coal mining
investments totaled more than $7 billion, compared to a
manufacturing total value of just over $1 billion.

•

Major industrial countries were the primary source of foreign
government investment in the United States. Canada, France, the
United Kingdom, and West Germany accounted for about 65 percent
of the number of completed transactions recorded.

•

More than half of the foreign government investment transactions
during 1974-81 were either acquisitions or acquisition/mergers.
Of 64 identified transactions, 44 with available values totaled
$7.5 billion.

Texas, New York, and California, with 51 transactions among
them, were the top ranking states for completed foreign
government transactions identified.

•

More than 10 percent of the completed investments identified,
with individual values of $100 million or more, were deemed to
be of special interest (for reasons of size, industry sector, or
public interest) for the purposes of this report. The two
largest investments, worth a total of $5 billion, involved U.S.
natural resources firms.

•

Potential issues related to foreign government-controlled
investments in the United States have prompted Cabinet-level
review to determine if there are potential problems.

MAJOR ECONOMIC AND POLICY ISSUES RELATED TO
FOREIGN GOVERNMENT-OWNED INVESTMENTS
The rapid growth in recent years of foreign direct investment in the
United States has been highlighted by very large investments
attributed to foreign government-owned or -controlled entities.
Several of these investments occurred in natural resources sectors,
especially energy. Recent developments indicate the need for
consolidating and analyzing the data contained herein and relating
the developments to potential economic and policy issues.
Appropriate responses to these possible issues can only be
formulated once the best and most complete data are available. This
report is intended to provide some of the data necessary for this
policy formulation.
The Federal Response to Concern About Foreign Direct Investment
As concern over foreign direct investment in the United States
mounted and became more widely articulated, Congress considered and
enacted within a decade a variety of measures that affect such
investment in the United States.
Legislation that requires monitoring of foreign investment in the
United States includes the following: (1) the Foreign Investment
Study Act of 1974 (PL 93-479), and the International Investment
Survey Act of 1976 (PL 94-472), which directs the U.S. Commerce and
Treasury Departments to conduct ongoing comprehensive surveys of
foreign direct and portfolio investment in the United States;
(2) the 1977 Amendment to the Securities and Exchange Act (PL
95-213), which requires the Securities and Exchange Commission to
monitor foreign (and domestic) beneficial owners of more than 5
percent of the controlling securities of U.S. corporations; and
(3) the 1978 Agriculture Foreign Investment Disclosure Act (PL
95-460), which directs the U.S. Department of Agriculture to monitor
foreign ownership and purchases of U.S. farmland.
Legislation enacted to equalize the treatment of foreign and
domestic investors includes the International Bank Act of 1978 (PL
95-369), which is designed to ensure that foreign banks operating in
the United States have no advantages over their domestic
competitors. And, in 1980, Congress passed the Foreign Investment
in Real Property Tax Act, which subjects real estate or stock
related to real estate holdings owned by foreign investors to a
capital gains tax.
Other proposed legislation includes bills that would limit foreign
investment by prohibiting or instituting a ceiling on the level of
investment in certain industries, by placing a moratorium on
investment, or by establishing a review board that could reject
investment proposals.

Current Activity—At the end of 1981, new legislation to curb
perceived inequities in the treatment of foreign and domestic
investors began to move through Congress. One major initiative is
the uniform margin requirements bill (H.R. 4145) concerned with
amending Section 7 of the Securities Exchange Act of 1934, which
authorizes the Federal Reserve Board to limit the amount of credit
extended in securities transactions. Currently, domestic investors
are limited to using credit, provided by either domestic or foreign
lenders, up to 50 percent of the value of the securities acquired,
while foreign investors are not so limited. H.R. 4145 would provide
uniform margin requirements in transactions involving the
acquisition of 5 percent or more of the securities of a U.S. firm by
foreign investors financed by foreign lenders. This bill passed
with amendments by voice vote in the House in October 1981 and was
subsequently referred to the Senate Committee on Banking, Housing
and Urban Affairs where it is pending along with two Senate bills
(S. 1429 and S. 1436) concerned with the margin requirements issue.
Additionally, the Cabinet Council on Economic Affairs (CCEA) Working
Group on International Investment Policy is reviewing foreign
investment in the United States and the implications of foreign
government ownership of U.S. enterprises. Findings will be reported
and recommendations made to the full CCEA.
Specific Issues Related to Foreign Government-owned or -controlled
Investments
There are potentially significant issues related to foreign
government-owned or -controlled investments in the United States.
This section lists examples of the concerns raised by those who
question investment by foreign government-owned or -controlled
companies in the United States and also provides a counterview to
each concern.
Identification of Foreign Government-owned or -controlled
Investments—Data on foreign direct investment in the United States
published pursuant to the International Investment Survey Act of
1976 do not currently include information that permits direct
identification of foreign investors owned or controlled by foreign
governments. Data compiled for the 1980 Benchmark Survey of inward
foreign direct investment comprise the first survey that requires
identification of the ultimate beneficial owner, in addition to the
first foreign owner of record. The 1981 Interim Survey requires
information identifying foreign owners that are at least 5 percent
government owned. However, these data are available to the public
only in aggregate form.
Thus, while the information contained in this publication is not
complete, it is the most comprehensive inventory of foreign
government-owned or -controlled investments in the United States
made during 1974-81 on an individual transaction basis, using
publicly available source documents, such as those from the SEC.

Influence on U.S. Policy and National Security—A concern, reported
in the press, is that foreign investors with significant U.S.
holdings may attempt to influence or alter U.S. policy.
Furthermore, it is suggested that large foreign investment holdings
could hinder U.S. efforts in a national emergency. Foreign
government-controlled investments, in particular, it is argued,
could be subject to foreign political pressures designed to support
their governments' foreign policy objectives. The counter argument
is that current laws are adequate to prevent the consequences of
such actions, should they occur.
Domestic Competitive Behavior—Critics claim that U.S. suppliers
will be at a disadvantage because foreign parent companies may
purchase more of their materials from abroad than from U.S.
sources. Further, where state-owned corporations are concerned,
they may be willing to sacrifice U.S. production to ensure full
employment in their home countries during times of adverse domestic
economic conditions. Proponents of foreign investment counter that
long-term economic survival in the U.S. and world markets requires
foreign investors to act on the basis of market forces rather than
political objectives.
Global Monopoly—There is also some concern that foreign
corporations owned or controlled by a foreign government could
create global cartels in such industries as petroleum and banking,
as well as some manufacturing sectors. By acquiring existing U.S.
companies, it is argued, these foreign firms could potentially
reduce effective domestic competition. The counter argument is that
U.S. companies acquired by foreign entities continue to be U.S.
firms and are still subject to U.S. antitrust and SEC regulations.
Therefore, the mere fact of foreign acquisition would not reduce
domestic competitiion.
Tax Loss—Critics of foreign investment in this country note that
some foreign investors enjoy tax advantages that result in lower
U.S. tax liabilities than those of domestic investors.
In large
part these reciprocal advantages stem from tax treaties that include
treatment of interest and dividends as well as capital gains. While
all business income is subject to U.S. tax, certain investment
income of foreign governments and their controlled entities may be
exempt. It also has been pointed out that special problems may
arise in trying to secure information needed to evaluate suspected
tax irregularities or other situations from foreign state-owned
investors. To the extent that investment by foreign
government-owned or -controlled companies, subject to U.S. tax laws,
expands domestic economic activity and employment, tax revenues
increase, offsetting the impact of the tax loss attributed to the
foreign ownership.
Technology Transfer—Some critics charge that foreign investment
could lead to the loss of U.S. technological superiority, which has
accounted for the preeminence of U.S. companies in many industries

and has been a key factor in this nation's economic growth and
military security. With regard to foreign government-controlled
investors, there may be potential problems relating to the
protection of national defense technology and other sensitive
sectors closely linked to basic national interests.

ANALYSIS OF INVESTMENT ACTIVITY
Transaction Figures
The International Trade Administration's Office of Trade and
Investment Analysis (OTIA) has identified 147 cases of direct
investment (both completed and pending) in the United States by
foreign companies wholly or partially controlled by a foreign
government. The complete listing of transactions is included in
appendix B. These investments, from 29 countries, were drawn from
approximately 5,300 foreign direct investment transactions
identified that took place from 1974 through 1981.
One hundred twenty-four transactions were classified as completed
investments. That is, they were confirmed as in process (e.g., the
construction of a new plant had been started) or as having taken
place during the calendar year in which they are listed. Financial
details were available for 70 of the 124 completed transactions.
These 70 had an aggregate value of $9.3 billion. The remaining
transactions either did not disclose financial information or the
information available was not sufficient to determine the foreign
government-owned company's share of participation.
The 23 transactions listed as pending were announced but were not
confirmed as completed during the calendar year in which they are
listed. Ten pending transactions disclosed financial details; these
transactions had a total value of $482.2 million.
Data for direct investment in the United States by foreign
government-owned companies indicate a pattern similar to that of
foreign direct investment in general (see table 1). There was a
steady growth pattern throughout the 1970s, which began to slow in
the 1980s, and a decrease from 1980 to 1981 in the number of
transactions.
Overall, however, the aggregate reported value of foreign direct
investment continued to rise on a year-to-year basis, albeit at a
slower rate, while the value of investment by foreign firms with
government ownership, after declining in 1980, surged ahead in
1981. Two very large transactions—the acquisition of Santa Fe
International Corp. by Kuwait Petroleum Corp. and the acquisition of
Texasgulf Inc. by Societe Nationale Elf Acquitaine S.A.—accounted
for the unusually large 1981 investment value figure. These two
transactions together were worth more than $5 billion, about 54

Data for 1974 and 1975 include only completed acquisitions,
mergers, and equity increases.

TABLE 1
Foreign Government Investment (FGI) as a Percentage of All Foreign Direct Investment (FDI)
in the United States, Completed Transactions, 1974-81

Total No. of
Transactions

Year
1974 1 ^

Total
No. of Trans- Value of
actions With
Transactions
Known Values ($Millions)

Total
No. of FGI
Transactions

No. of FGI
Transactions
With
Known Values

Total Value
FGI As A % of
of FGI
Total No. of
Transactions
FDI Transactions ($ Millions)

FGI As A
% of Total
FDI Value

122

2,180.5

4.9

75.6

3.5

1975 ^

104

1,118.3

2.9

84.6

7.6

1976

116

2,087.8

6.9

365.9

17.5

1977

428

187

3,250.8

2.8

41.6

1.3

1978

677

334

6,059.2

1.6

85.4

1.4

1979

1035

541

14,727.2

3.2

612.9

4.2

1980

1199

634

14,797.6

2.4

521.0

3.5

1981 2 /

1211

542

20,500.0

1.8

7,481.0

36.9

4892

2479

64,521.4

124

2.5

9,268.0

14.4

TOTAL

1/ Data include only mergers, acquisitions, and equity increases.
2/ Transactions data for 1981 are preliminary figures.
Source:

U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982

percent of all direct investment by foreign companies with foreign
government ownership recorded from 1974 through 1981.
Nevertheless, while direct investment in the United States by
foreign firms with foreign government shareholders is sometimes
highly visible as in the two cases noted above, it still accounts
for a relatively modest portion of total foreign direct investment
in the United States. Transactions involving companies with foreign
government ownership accounted for 2.5 percent of the number of
foreign investment transactions recorded from 1974 through 1981. In
comparison, the value of the transactions completed by these firms
accounted for 14.4 percent of the total foreign direct investment
value during this period. However, this percentage figure reflects
the unusually high value of a few very large transactions by foreign
government-owned or -controlled firms in 1981 ($7.5 billion): almost
40 percent of the aggregate value of all foreign direct investment
for that year.
Principal Source Countries
The major industrial countries were the primary source of direct
investment activity in the United States by foreign government-owned
firms from 1974 through 1981 (see table 2). Four of these
countries, Canada, France, the United Kingdom, and West Germany
accounted for about 65 percent of the completed transactions
recorded. These countries also accounted for almost three-quarters
of the cases with known values, and the aggregate value of their
transactions ($5.5 billion) represented about 62 percent of the
total value for the 8-year period.
The United Kingdom ranked first in the number of completed
transactions recorded. Foreign corporations with British Government
ownership completed 28 transactions, 20 of which had a total value
of $1.7 billion.
Companies with French Government ownership had fewer completed
transactions (24), but 14 had known values that totaled $3.2
billion, the highest dollar value figure attributed to a single
principal source country.
Foreign corporations in which the Governments of West Germany and
Canada had ownership were the next most active investors during
1974-81, with 17 and 11 completed transactions respectively. Based
on aggregate reported values, West Germany ranked fourth as a source
country with a total of $582.5 million, while Canada was fifth with
$388.1 million.

TABLE 2
Foreign Government Source Countries
Completed Transactions, 1974-81

Total No. of
Transactions

Country
TOTAL COUNTRIES

No. of Transactions
Known Value

Total Value of
Transactions
($ Millions)

124

9,268.0

Canada

388.1

France

3,130.2

Japan

The Netherlands

United Kingdom

1,704.0

West Germany

582.5

OPEC *

2,833.2

Other Countries

630.0

The Organization of Petroleum Exporting Countries (OPEC) included
here are Algeria, Iran, Kuwait, Libya, Nigeria, Saudi Arabia,
and Venezuela.

Source:

U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982.

Seven governments from the Organization of Petroleum Exporting
Countries (OPEC) accounted for 13.5 percent of foreign government
direct investment activity from 1974 through 1981 (see table 3).
The seven OPEC countries are Algeria, Iran, Kuwait, Libya, Nigeria,
Saudi Arabia, and Venezuela. The aggregate value of their completed
transactions ($2.8 billion) represented about 30 percent of the
total completed transactions* value.
Companies wholly or partially owned by the Government of Kuwait
accounted for 90 percent ($2.6 billion) of the OPEC share of the
foreign government investment value, most of which is attributed to
its $2.5 billion acquisition of Santa Fe International Corp. last
year. This single transaction, the largest direct investment in the
United States by an OPEC country on record, is the primary reason
that the Government of Kuwait through its corporate holdings had the
second highest dollar value share of all the completed cases with
known values.
Principal Source Companies—The major foreign companies or entities
through which foreign governments invest are not always well known.
The major government-owned companies investing in the United States
include the following: Canada—Canada Development Corp. (CDC);
France—Compagnie Francaise des Petroles (CFP), Entreprise de
Recherches et D'Activites Petrolieres (ERAP), and Regie Nationale
des Usines Renault (Renault); Italy—Ente Nazionale Idrocarburi
(ENI); the United Kingdom—The British Petroleum Co. Ltd, (BP) and
the National Enterprise Board (NEB); and West
Germany—Volkswagenwerke AG (VW) (see table 4). These major
companies each made five or more investments in the United States
during the last 8 years.
Six of the eight companies and one affiliated company
(Elf-Aquitaine) are among the top 12 on the Fortune list of the 500
largest industrial companies outside of the United States. They are
British Petroleum, Canada Development Corp., Compagnie Francaise des
Petroles, Ente Nazionale Idrocarburi, Renault, and Volkswagen.
Three of the entities in table 4 — E n t e Nazionale Idrocarburi,
Entreprise de Recherches et D'Activites Petrolieres, and the
National Enterprise Board—are wholly owned by the Governments of
Italy, France, and the United Kingdom, respectively. Renault, the
largest automobile producer in Europe, is 92 percent held by the
Government of France.

TABLE 3
Direct Investment in the United States by Foreign Companies
with OPEC* Government Ownership or Control, 1974-81

Total No. of
Transactions

No. of
Completed
Transactions

No. of Completed
Transactions With
Known Values

Total Value
of Completed
Transactions
($ Millions)

2,833.2

Algeria

Iran

258.6

Kuwait

2,560.8

Libya

13.0

Nigeria

0.8

Saudi Arabia

Venezuela

TOTAL

Note:

The Organization of Petroleum Exporting Countries (OPEC) member
countries are Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and
Venezuela.

Source: U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982.

TABLE 4
Major Foreign Government-owned or -controlled Companies
Investing in the United States, 1974-81

Government
of

Foreign
Company

Canada

Canada Development
Corp. (COC)

France

Compagnie Francaise
des Petroles (CFP)

% of
Government
Ownership

Assets
($ Millions)

Employees

Total No. of
Transactions

2,017.8

2,885.2

34,114

96.7

23,940.4

16,165.9

48,115

248.5

100

2,611.2

18,979.3

12,299.0

231,700

242.5

100

27,186.9

20,092.0

122,587

380.0

48,035.9

42,378.5

118,200

1,397.4

National Enterprise
Board (NEB)

100

61.8

Volkswagenwerke A.G.
(VW)

18,339.0

453.5

Regie Nationale des
Usines Renault (Renault)
Ente Nazionale
Idrocarburi (ENI)

U1 United
Kingdom

West
Germany

Total Value
of Completed
Transactions
($ Millions)

Sales y
($ Millions)

Enterprise de Recherches 2 /
et D'Activites
Petrolieres (ERAP)

Italy

No. of
Completed
Transactions

No. of
Completed
Transactions With
Known
Values

The British Petroleum
Co. Ltd. (BP)

12,645.6

257,930

Sales, assets, employees figures are for 1980.

Investment activity took place through Societe Nationale Elf Aquitaine SA (SNEA), presently 67 percent owned by the French Government.

Sources:

Fortune, August 10, 1981.
U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982.

Among these foreign industrial investors, British Petroleum, Canada
Development Corp., Compagnie Francaise des Petroles, Ente Nazionale
Idrocarburi, and Entreprise de Recherches et D'Activites Petrolieres
concentrated their investments in natural resources, particularly
energy resources. Two other firms, Renault and Volkswagen, are
automotive vehicle manufacturers, while the National Enterprise Board
has interests in both the automotive and computer industries.
These 8 firms accounted for 59 completed transactions.
Thirty-seven
of these cases had a total value of $5.5 billion, almost 60 percent
of the total foreign government-related investment value recorded for
the period covered in this report.
British Petroleum, with 14, had the largest number of completed
transactions, followed by Volkswagen with 11, and Entreprise de
Recherches et D'Activites Petrolieres with 9. The same three
companies in reverse order also had the highest transaction dollar
value totals. ERAP, the French state oil company, had five values
totaling $2.6 billion. Eleven BP transaction values were worth $1.4
billion, and Volkswagen, in third place, had a $453.5 million total
value for five transactions.
Brief profiles of these major investors are contained in appendix C.
Modes of Investment Transactions
Data collected by the Office of Trade and Investment Analysis
indicate that companies owned or controlled by foreign governments
relied primarily on acquisition as a means of gaining a U.S.
production base. Acquisitions are more numerous than joint ventures,
equity increases, or plant expansions probably because the foreign
firm gains the most. Purchasing an established company, the foreign
parent acquires not only the assets of the U.S. business but also
frequently acquires knowledge of the U.S. market, an established
market share, and any industrial technology used by the firm. Table
5 shows the various modes of investment.
More than half of the direct investment transactions identified from
1974 through 1981 took the form of either an acquisition or an
acquisition/merger. These forms of investment accounted for 64
transactions; 44 values were available in this category. They had a
total value of $7.5 billion, which represents more than 80 percent of
the total value figure.

TABLE 5
Mode of Investment by Foreign Government Source Country
Completed Transactions, 1974-81

Country

Total No.
of Completed
Transactions

No. of
Transactions
Mith Known Values

Total Value
of Transactions
($ Millions

TOTAL ALL COUNTRIES
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

124
64
7
18
8
27

70
44
5
14
3
4

9,268.0
7,509.7
239.6
899.7
626.5
92.5

CANADA
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

11
3
2
4
1
l

9
2
2
4
1
0

388.1
36.0
57.1
293.5
1.5
0

FRANCE
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

24
18
2
2
2
0

14
10
2
2
0
0

3,130.2
2,939.7
172.5
18.0
0
0

JAPAN
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

1
0
0
0
0
1

0
0
0
0
0
0

THE NETHERLANDS
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

1
0
0
0
0
1

0
0
0
0
0
0

TABLE 5 Cont'd.
Mode of Investment by Foreign Government Source Country
Completed Transactions, 1974-81

Country

Total No.
of Completed
Transactions

No. of
Transactions
With Known Values

Total Value of
Transactions
($ Mill ions)

UNITED KINGDOM
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

28
18
2
4
0
4

20
15
0
4
0
1

1,704.0
1,606.8
0
47.2
0
50.0

WEST GERMANY
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

17
7
0
6
0
4

7
3
0
2
0
2

582.5
249.0
0
304.0
0
29.5

OPEC*
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

17
9
1
0
1
6

10
7
1
0
1
1

2,833.2
2,560.2
10.0
0
250.0
13.0

ALL OTHER COUNTRIES
Total
Acquisitions/Mergers
Equity Increases
Plant Constructions/Expansions
Joint Ventures
Other

25
9
0
2
4
10

10
7
0
2
1
0

630.0
118.0
0
137.0
375.0
0

The Organization of Petroleum Exporting Countries (OPEC) members included
here are Algeria, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, and
Venezuela.

Source: U.S. Department of Commerce
Ofice of Trade and Investment Analysis
March 1982

Companies in which the Governments of France and the United Kingdom
hold shares accounted for more than half of the acquisitions and
acquisitions/mergers identified (18 each). Twenty-five of these
completed investments had a total value of about $4.6 billion.
Firms with West German Government ownership had the second largest
number of acquisitions (seven), with three known transaction values
totaling $249 million.
The second most frequent form of investment was in plant
constructions or plant expansions. There were 18 transactions of
this type, and 14 of them had a total value of $899.7 million. West
German companies had the most investments (six), with available
value data for only two of them totaling $304 million.
British firms had the second largest number of plant construction/
expansions, five, with four reported values totaling $47.2 million.
Joint ventures were the third most utilized mode of investment.
There were eight joint ventures identified, three of which had a
total value of $626.5 million. This form of investment was widely
distributed among foreign government investors, as were equity
increases.
Other investment modes such as a new branch, office, outlet,
subsidiary, or real estate construction accounted for 27
transactions, 4 of which had a total value of $92.5 million.
Geographic Distribution of Investment
The availability of labor and location of rail or port facilities
for transporting finished products are some of the factors
influencing foreign firms investing in the United States. Foreign
direct investment is thus widely distributed throughout the
country. This is also true of investments made by foreign companies
owned or controlled by foreign governments.
The geographic distribution of these investments is presented in
table 6. In the case of an acquisition, the headquarters site is
listed since the foreign investor is purchasing either partial or
total ownership of the entire U.S. company. For example, Renault's
1981 acquisition of White Motor Corp. lists Ohio, White Motor
Corp.'s headquarters site as the investment location (see appendix
B). An investment in the establishment of a new bank agency,
office, distribution center or plant, or the expansion of an
existing plant is listed by the site of the new or expanded plant,
office, etc. In 1980 Volkswagen of America Inc., for example, made
three investments in three separate locations: a plant expansion in
West Virginia, a new plant in Texas, and a new office in Georgia.

TABLE 6
Geographic Distribution of Direct Investment
in the United States by Foreign Companies Owned
or Controlled by Foreign Governments, 1974-81
No. of
Completed
Total Value
Transactions of Completed
With
Transactions
Known Values ($ Millions)

Total No- of
Transactions

No. of
Completed
Transactions

147

124

$9,268.0

New England:
Connecticut
Massachusetts

7
6
1

6
6
0

4
4
0

3,495.2
3,495.2
0

Middle Atlantic:
New Jersey
New York
Pennsylvania

30
5
19
6

26
3
17
6

13
2
7
4

217.4
13.3
148.8
55.3

South Atlantic:
District of Columbia
Florida
Georgia
North Carolina
South Carolina
Virginia
West Virginia

33
5
3
6
5
2
6
6

30
5
3
6
5
1
4
6

18
3
3
3
2
1
2
4

531.2
27.0
78.0
21.5
1.2
17.4
5.4
380.7

East North Central:
111inoi s
Indiana
Michigan
Ohio
Wisconsin

14
2
1
2
7
2

11
1
1
2
5
2

5
0
0
2
3
0

555.9
0
0
467.5
88.4
0

West North Central
Kansas
Mi ssouri

2
1
1

1
1
0

245.0
245.0
0

East South Central:
Alabama
Kentucky

4
1
3

3
1
2

751.5
274.0
477.5

West South Central:
Loui si ana
Texas

25
4
21

23
3
20

12
3
9

463.0
379.8
83.2

Region/State
Total

TABLE 6 Cont'd.
Geographic Distribution of Direct Investment
in the United States by Foreign Companies Owned
or Controlled by Foreign Governments, 1974-81

Region/State

Total No. of
Transactions

No. of
Completed
Transactions

No. of
Completed
Total Value
Transactions of Completed
Transactions
With
Known Values ($ Millions)

Total
West/Mountain:
Arizona
Colorado
Wyomi ng

9
1
5
3

West/Pacific:
Alaska
California
Hawaii
Washington

23
4
17
1
1

51.5

19
4
14

12
3
8

Source: U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982

51.5
0

2,957.3
97.1
2,844.8
0

15.4

Table 6 shows direct investments by foreign government-owned
or -controlled firms were located in 29 of the 50 states and in the
District of Columbia at the close of 1981. More than 44 percent of
these investments were concentrated in the South Atlantic area in
some of the Sunbelt states (Georgia, North Carolina, South Carolina)
and in the industrialized states of the Middle Atlantic area (New
York and Pennsylvania.), that have traditionally attracted the
largest number of foreign investments.
States in ranking order by number of transactions were Texas with 20
completed transactions; New York, 17 transactions; and California,
14 transactions. Much of the attraction of Texas and California can
be attributed to the recent interest in minerals exploration,
particularly petroleum, both onshore and offshore in these areas.
New York, a cornerstone of the industrial Northeastern United
States, has drawn foreign investors since colonial times.
The states that attracted the highest dollar amount of investment by
foreign government-owned or -controlled companies were Connecticut
with $3.5 billion and California with $2.8 billion. These very
large figures are explained by the fact that these two states are
headquarters for three companies involved in major transactions.
Connecticut is the headquarters of Texasgulf Inc. (a $2.5
acquisition by the French Government through Elf Aquitaine) and of
Kennecott Corp. (a $938.1 million acquisition by the British
Petroleum Co. Ltd., majority held by the British Government, through
Standard Oil Co. of Ohio). California is the headquarters of Santa
Fe International Corp. (a $2.5 billion acquisition by the Kuwait
Government through Kuwait Petroleum Corp.).
Industrial Concentration of Investment
Direct investment by foreign firms with government ownership or
control occurs in virtually all the broad sectors of the U.S.
economy, but as is the case with foreign direct investment in
general, its role in each is relatively small. Table 7 indicates by
sector the frequency and value of investment by companies owned or
controlled by foreign governments.
Mining—The mining sector attracted the major share (35 percent, 44
cases) of completed investment transactions by foreign
government-controlled companies. Values reported for 30
transactions totaled $7.3 billion, 79 percent of the total recorded
value.

TABLE 7 Cont'd.
Industrial Distribution of Direct Investment in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-61

SIC
Number

Industry

Country

N>
u>

147

124

9,268.0

Mining

7,311.0

Metal Mining

3,499.5

4
5
2

3
4
2

3
1
2

58.6
2,500.0
940.9

Bituminous Coal
& Lignite Mining
France
United Kingdom
West Germany
Other

Oil & Gas
Extraction

Manufacturing

879.0

7.9
333.8
129.0
408.3

2
2

4
21

Canada
France
United Kingdom
West Germany
OPEC 1/
Other

No. of Completed
Transactions

Total Value
of Completed
Transactions
($ Millions)

Total

Canada
France
United Kingdom
12

Total No. of
Transactions

No. of Completed
Transactions With
Known Values

Food & Kindred
Products
West Germany

7
9

6
6

4
5

4
3
48

2,932.5
1.0

328.6
102.1

0
0

3
3

0
1
0

2,500.8

1,295.0

TABLE 7 Cont'd.
Industrial Distribution of Direct Investment in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-61

SIC
Number

Industry

Paper & Allied
Products

Country

274.0
Canada

Chemicals & Allied
Products

Petroleum & Coal
Products

Stone, Clay &
Glass Products

3.2

0
0

10.6

18.9
Canada
France
United Kingdom

0.6

10.6

France
United Kingdom
OPEC

ISJ

274.0
3.8

Canada
France
OPEC
Other
29

Total No. of
Transactions

Total Value
No. of Completed of Completed
No. of Completed Transactions With Transactions
Transactions
($ Millions)
Known Values

Primary Metal
Industries

18.9

0
0

137.0
United Kingdom
OPEC
Other

0
0
137.0

TABLE 7 Cont'd
Industrial Distribution of Direct Investment in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-81

SIC
Number

Industry

Fabricated Metal
Products

Country

Total No. of
Transactions

Total Value
No. of Completed of Completed
No. of Completed Transactions With Transactions
($ Millions)
Transactions
Known Values
0.6

West Germany
OPEC
35

0.6

Machinery, except
Electrical

167.0
35.0

Canada
France
United Kingdom
West Germany
36

8.0

124.0

Electric &
Electronic Equip.

to
ui

50.0
50.0

United Kingdom
West Germany
37

Transportation
Equipment
France
United Kingdom
West Germany
Other

Instruments &
Related Prods.
Other

Misc. Mfg.
Industries
United Kingdom

633.1

5
2

260.5
30.0
329.5
13.1

TABLE 7 Cont'd.
Industrial Distribution of Direct Investment in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-61

SIC
Number

Industry

Country

Total No. of
Transactions

No. of Completed
Transactions

Transportation &
Public Utilities
41

3.8

Local & Interurban
Passenger Transit
The Netherlands

1
1

0
0
3.8

United Kingdom

1
1

Transportation
by Air

Wholesale Trade
50
to

Total Value
No. of Completed of Completed
Transactions With Transactions
Known Values
($ Millions)

3.8
25.0

Wholesale TradeDurable Goods

France
United Kingdom
West Germany
OPEC
Other
51

Wholesale TradeNondurable Goods

25.0
France
OPEC
Other

Retail Trade
55

Automotive Dealers
& Serv. Stations

25.0

0
0

57.0
57.0

TABLE 7 Cont'd.
Industrial Distribution of Direct Investment in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-61

SIC
Number

Industry

Total No. of
Country
Transactions
United Kingdom
1
Other
2

No. of Completed
Transactions

Eating & Drinking
Places

0
0
0
0

526.4

3
3

0
0

526.4

200.0

6
6

311.8
14.6

Other

Banking
Other

Real Estate 2/

United Kingdom
OPEC
Other
Services
70

5
7
6
12

Hotels & Other
Lodging Places

49.8
20.0

France
OPEC
73

3
3

0
0
0
0

Misc. Retail

Finance Insurance
& Real Estate

Total Value
of Completed
Transactions
($ Millions)
57.0

Other
59

No. of Completed
Transactions With
Known Values

Business Servs.

0
20.0

29.8
France
Japan
United Kingdom

5.0

24.8

TABLE 7 Cont'd.
Industrial Distribution of Direct Investment in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-61

SIC
Number

Industry

Country

Total No. of
Transactions

No. of Completed
Transactions

no. of Completed
Transactions With
Known Values

Total Value
of Completed
Transactions
($ Millions)

Misc. Services

West Germany
99

Non-Profit
Organizations
OPEC

1/ The Organization of Petroleum Exporting Countries (OPEC) included in this table are Algeria, Iran, Iraq,
Kuwait, Libya, Nigeria, Saudi Arabia, and Venezuela.
2/

Includes realty companies, property acquisitions, developments, and constructions.

Source:

U.S. Department of Conmerce
Office of Trade and Investment Analysis
March 1982

This unusually large value figure is explained by the fact that two
transactions accounted for $5 billion of the total. However, even
without these two cases, the mining sector is still slightly ahead
of manufacturing, both in terms of the number of transactions
completed and total dollar value. This pattern differs noticeably
from that of foreign direct investment in general, which continues
to have the major share of its transactions in the manufacturing
sector.
The most rapid increase in completed transactions identified during
1974—81 was in the mining sector, primarily in the oil and gas
extraction subsector (SIC 13). Twenty-one transactions had 11 known
values totaling $2.9 billion. The recent increase in investor
interest in this subsector has been encouraged by reduced
regulation, greater investment tax incentives, and the availability
of new lands for exploration and development.
Two companies with substantial British and French Government
ownership accounted for 57 percent of the oil and gas transactions.
The British Government, through its holdings in the British
Petroleum Co. Ltd. (which has the controlling interest in Sohio),
accounted for six transactions with five available values of $102.1
million. The French Government, through its controlling interest in
Societe Nationale Elf Acquitaine S.A. and in Compagnie Francaise des
Petroles, also accounted for six transactions that had known values
of $328.6 million.
The largest recorded transaction in this industry was the Government
of Kuwait's acquisition of California-based Santa Fe International
Corp. through its wholly owned Kuwait Petroleum Corp. for $2.5
billion in 1981. The second largest acquisition was the $245
million purchase of Vickers Petroleum Corp., Wichita, Kansas, by
Total Petroleum (North America) Ltd., a Canada-based member of the
Total Group of Paris, the majority ownership of which is held by
Compagnie Francaise des Petroles.
The metal mining subsector (SIC 10) had the largest total value
recorded for any industry. Companies with foreign government
ownership or control completed nine transactions which had six
available values totaling $3.5 billion. Elf Aquitaine and Canada
Development Corp. were the most visible investors in this industry,
accounting for about 78 percent of the activity, thanks largely to
their holdings in Texasgulf Inc.
The largest transaction recorded was Elf Aquitaine's acquisition of
63.1 percent of Texasgulf Inc. for $2.5 billion.-' The second
largest was the 1981 acquisition of Kennecott Corp. by the British
Petroleum Co. Ltd. through its holdings in Sohio. BP's share of the
transaction amounted to $938.1 million.
4/

The remaining 36.9 percent of Texasgulf was acquired by Elf
Aquitaine from Canada Development Corp. in early 1982.

Foreign companies also expanded their role in the U.S. coal mining
industry (SIC 12). Firms with British, French, and West German
Government ownership accounted for a majority of the nine completed
cases identified, eight of which had a total value of $879 million.
Often these firms took equity positions in U.S. coal companies, or
acquired U.S. coal acreage, or set up U.S. joint ventures with the
objective of exporting the coal produced.
The coal mining industry had several noteworthy transactions. The
largest of these was a 1981 joint venture between Ente Nazionale
Idrocarburi (ENI), Italy's state-owned petroleum company, and
Occidental Petroleum Co. Known as Enoxy, the Kentucky-based
company, is a 50-50 partnership to which ENI contributed $375
million.
A second transaction was Sohio's purchase of the Crystal Block mine
near Williamson, West Virginia, along with coal reserves in
Illinois, Pennsylvania, Utah, and West Virginia from U.S. Steel
Corp. BP's share of this 1981 deal was worth $318 million.
Also in 1981, Ashland Coal Inc. acquired a foreign government-owned
partner when Saarberg Coal International G.m.b.H., a subsidiary of
Saarbergwerke A.G., acquired a 25 percent share in the
Kentucky-based firm. Saarbergwerke, a major West German coal
producer, is held 74 percent by the Government of West Germany and
24 percent by the West German State of Saarland.
Manufacturing—The manufacturing sector had the second largest
number of investments by companies with foreign government
ownership. This sector recorded 42 completed transactions with 23
available values totaling about $1.3 billion.
Investors were most active in the transportation equipment (SIC 37)
subsector, which recorded 13 transactions (all of which were
completed); nine available values totaled $633.1 million. The
leading investor countries were West Germany, France, and the United
Kingdom in that order. Together they accounted for 11 transactions.
Volkswagenwerke A.G., 40 percent owned by the West German
Government, has been extremely active in the U.S. automotive
industry in recent years. The Office of Trade and Investment
Analysis identified five transactions undertaken by its U.S.
subsidiary Volkswagen of America Inc. from 1974 through 1981. Three
of them reported values that totaled $329.5 million. The bulk of
this amount is accounted for by Volkswagen's 1981 investment in a
new, $300 million Michigan plant, the largest transaction in the
entire transportation sector.

Regie Nationale des Usines Renault, 92 percent owned by the French
Government, is another foreign automotive concern that has
established a highly visible profile in the U.S. market within the
last 2 or 3 years. In 1980, Renault increased its equity in
American Motors Corp. to 46.4 percent from 4.7 percent at a cost of
$167.5 million, and in 1981, acquired White Motor Co., an Ohio truck
manufacturer, for $75 million.
In the aircraft industry, the French state-owned Societe Nationale
Industrielle Aerospatiale's U.S. subsidiary, Aerospatiale Helicopter
Corp., opened a new plant in Texas for $17 million in 1979, and last
year had a $1 million expansion of that same plant.
Rolls Royce Ltd., the British state-owned producer of automobiles
and aircraft engines, is active primarily in the U.S. aircraft
industry. Rolls Royce Engineering in Georgia and Rolls Royce
Aerospace Inc. in Florida are two of its subsidiaries involved in
the design and manufacture of aircraft engines in this country.
The machinery industry (SIC 35) was the second most attractive area
in the manufacturing sector. There were six completed transactions
with four known values totaling $167 million. West German companies
were the most active foreign investors with three completed cases,
two of which had a $124 million value. The largest transaction in
this industry was the 1979 acquisition of Pertec Computer Corp. of
California by Volkswagen for $120 million.
The finance, insurance, and real estate sector also attracted a
significant amount of investor interest. Twenty completed cases
were identified from 1974 through 1981.
Fourteen of these cases
had a total value of $526.4 million. The real estate subsector (SIC
65)-' was the most popular both in terms of transaction numbers
and total value with companies beneficially owned by the
Governments of Iran, Kuwait, and the United Kingdom. These
companies accounted for about 65 percent of the transactions. Real
estate had 17 completed cases with 14 available values totaling just
over $526 million. The largest real estate transaction on record
was the 1976 $250 million Canal Place joint venture between Joseph
Canizaro, a Louisiana developer, and Bank Omran of Iran. Second
largest was the 1979 acquisition of California properties by
Britain's National Coal Board for $144.2 million.
Both the wholesale trade and services sectors attracted some
interest from foreign investor companies controlled by the
Governments of France, West Germany, and the United Kingdom. These
two sectors recorded 19 completed cases with 6 values totaling $74.8
million. Activity in these industries appears to be growing, but
financial details are meager.
5/

Includes investments in realty companies, property acquisitions,
developments and constructions.

Major Investments
More than 10 percent of the investments by foreign companies with
government ownership from 1974 through 1981 were judged to be of
special interest for reasons of size, historical importance,
political implications, or public interest. Table 8 shows that all
14 transactions had individual values surpassing $100 million, and
two-thirds of them had values of more than $200 million.
The total value for these transactions was almost $8.2 billion.
They accounted for 90 percent of the total completed case value.
All of these transactions took place from 1976 through 1981.
Thirteen of them occurred from 1979 through 1981, the fact of which
indicates a relatively recent escalation of large direct investments
in the United States by foreign government-owned or controlled firms.
Three major industrial countries were the primary source of these
foreign direct investments between 1974 and 1981. France, the
United Kingdom, and West Germany, with a total of nine transactions
(three each), accounted for almost 70 percent of these investments.
Their total value is $4.8 billion. Three companies with French
Government ownership accounted for the largest amount of investment,
$2.9 billion. Two British entities had three significant
investments worth $1.4 billion.
In more than half of the investments identified (nine), the foreign
government has a majority interest (more than 50 percent) in the
foreign parent. Moreover, five of the foreign owners of record are
wholly government-owned entities. They are the Bank Omran (Iran),
Ente Nazionale Idrocarburi (Italy), Kuwait Petroleum Corp. (Kuwait),
The National Coal Board (United Kingdom), and Voest-Alpine A.G.
(Austria).
Canal Place, a real estate joint venture valued at $250 million, was
the largest foreign direct investment identified in 1976.
Santa Fe International and Texasgulf both evoked public interest and
comment in 1981. They were both $2 billion plus investments, some
of the largest acquisitions of U.S. firms by foreign companies on
record. Moreover, many individuals concerned about U.S. dependence
on foreign energy sources were interested because both firms are in
the minerals sector, as are Vickers Petroleum Corp., Enoxy, the
Crystal Block Mine, Kennecott Corp., and Ashland Coal Inc.
6/

Further details of the Canal Place investment are discussed in
the section of the report on aborted investment transactions.

Table 8 shows that these transactions of special interest followed
the same pattern as other investments made by foreign companies with
government ownershipHalf of them (seven) were in the mining
sector with five of those energy related in either the petroleum or
the coal industry. The mining transactions had a value of almost $7
billion.
There also has been widespread interest and debate about the U.S.
automotive industry; American Motors and Volkswagen of America were
two significant investments in this sector. They accounted for 47
percent of the $990 million total value assigned to the five major
manufacturing transactions. Two real estate industry investments
accounted for $394 million.
Geographically, California accounted for three transactions;
Connecticut, Kentucky, Louisiana, and Michigan had two transactions
each. Regionally, the Western Pacific and Sunbelt areas were
equally as popular and accounted for a total of six major
transactions.
The majority of these transactions (eight) were acquisitions; they
had a total value of about $6.9 billion, 74 percent of the completed
case total value. New plants/plant expansions was the second most
numerous transaction mode (three) and had a total value of $702
million. Joint ventures (two) was the third mode of investment most
frequently utilized in these large investments and carried a total
value of $625 million.
The Governments of Canada, France, and Kuwait participated in the
largest transactions by government-owned or -controlled firms on
record. The partial acquisition of Texasgulf Inc. (a Stamford,
Connecticut mining, oil and gas, and chemicals firm) by Societe
Nationale Elf Aquitaine (SNEA), 67 percent held by the Government of
France, and the purchase of Santa Fe International Corp. (a
California-based oil and gas field services firm) by Kuwait
Petroleum Corp. (KPC), the state-owned oil company, both took place
in 1981.
Several U.S. mining and petroleum companies were being sought by
foreign firms in the summer of 1981. Prominent among these foreign
firms was Elf Aquitaine, which tendered $56 per share for the
publicly held two-thirds of Texasgulf. Canada Development Corp.
(CDC), a Canadian Government-controlled holding company, controlling
the largest block of Texasgulf shares (36.9 percent), agreed to
trade its holdings and pay about $450 million to Elf in exchange for
Texasgulfs Canadian assets. Those assets included the Kidd Creek
mine near Timmons, Ontario, which produces zinc, copper, and silver;
interests in oil and gas, and timber properties; three sulphur

TABLE 8
Major Direct Investment Transactions in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-81

Government
of

U.S. Company

State

Austria

Bayou Steel Corp.

Canada
France

MacMillan Bloedel Inc.
American Motors Corp.

AL
MI

SIC No./
U.S. Industry

Foreign Owner of
Record/% of
Gov.^Ownership

33
Billets & Blooms

Voest-Alpine A.G.
(et al) (100%)

Pulp & Paper

Vickers Petroleum Corp.

Iran
Italy

Canal Place
Enoxy

LA
KY

(1%)

128.0

274.0

Type of
Transaction

Year of
Investment

1979

(100%)

1981

(100%)

EI
(4.7% to
46.4%)

1980

Acq
(63.1%)

1981

Acq

1980

Regie Nationale
des Usines Renault
(92%)

167.5

Societe Nationale
Elf Aquitaine S.A.
(67%)

2,500.0

Mining
13
Oil/Gas
Drilling

Cie Francaise des
Petroles (CFP)
(35%)

245.0

65
Real Estate

Bank Omran

250.0

JV
(50%)

1976

375.0

JV
(50%)

1981

Acq

1981

Motor 37Vehicles
Texasgulf Inc.

MacMillan Bloedel Ltd.

Value of
Transaction
($ Millions)

12
Coal Mining

(100%)

Ente Nazionale
Idrocarburi (ENI)
(100%)

Kuwait

United
Kingdom

Santa Fe International
Corp.

Continental Illinois
Properties

Crystal Block Mine

Kennecott Corp.

13
Oil/Gas
Field Services

Kuwait Petroleum
Corp. (KPC)

65
Real Estate

National Coal Board

12
Coal Mining
10

Copper Mining

2,500.8

(100%)

144.2

(100%)

Acq

1979

(100%)

The British Petroleum Co.
Ltd.
(39%)

318.0

The British Petroleum
Co., Ltd.
(39%)

938.1

Acq

1981

(100%)

Acq
(100%)

1981

TABLE 8 Cont'd.
Major Direct Investment Transactions in the United States
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-81

Government
of

U.S. Company

West Germany

Ashland Coal Inc.

Foreign Owner of
Record/% of
Gov. Ownership

12
Coal Mining

Pertec Computer Corp.

Volkswagen of
America, Inc.

State

Value of
Transaction
($ Millions)

Type of
Transaction

Year of
Investment

Saarbergwerke A.G.
(98%)

102.5

Acq
(25%)

1981

35
Computers

Volkswagenwerke A.G.
(40%)

120.0

Acq
(100%)

1979

37
Motor Vehicles

Volkswagenwerke A.G.
(40%)

300.0

1981

Transaction Type/Status

Key:
Acq
EI
JV
NP
PE

SIC No./
U.S. Industry

Source:

Acquisition
Equity Increase
Joint Venture
New Plant
Plant Expansion
U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982

(100%)

recovery plants; and a 40 percent stake in the Allan potash mines in
Saskatchewan. In addition, Elf agreed to sell all of its holdings
(75 percent) in Aquitaine Co. of Canada, an oil production company,
for about $1 billion to CDC, making the entire transaction worth
almost $5.4 billion when totally completed.
The Committee on Foreign Investment in the United States, an
interagency foreign investment monitoring group, reviewed the
proposed acquisition during the tender offer period. However, a
Committee request to Elf for a delay of the investment until
completion of a review of the acquisition's implications for U.S.
national interests was denied. In addition, Elf filed lawsuits in
Federal courts in Louisiana, Nebraska, and Utah to enjoin the use of
those states' takeover laws to delay its tender offer.
In October 1981, Kuwait Petroleum Corp. and Santa Fe International
Corp. jointly announced that Kuwait had agreed to acquire the
Alhambra, California oil driller and producer for $51 for each of 49
million shares outstanding or $2.5 billion.
Shortly after the tender offer, Rep. Benjamin S. Rosenthal (D-NY),
Chairman of the House Subcommittee on Commerce, Consumer, and
Monetary Affairs of the Government Operations Committee, requested
that the Securities Exchange Commission (SEC) suspend trading in
Santa Fe's stock and options while it investigated charges of
insider trading. He also requested that the Committee on Foreign
Investment in the United States ask Kuwait to hold further action on
the acquisition, pending a review by the Committee. Before the
Santa Fe transaction was completed in December 1981, it was reviewed
by the Committee on Foreign Investment to determine what
implications the acquisition would have for U.S. national interests,
and by the Justice Department for antitrust implications. The SEC,
the Pacific Stock Exchange, and the New York Stock Exchange looked
into charges of insider trading in options.
Moreover, the House Subcommittee on Commerce, Consumer, and Monetary
Affairs held a series of hearings that addressed the issues of
national security, insider trading, and the transfer of nuclear
technology to a foreign power. The latter concern arose because
Santa Fe is the parent company of C.F. Braun and Co., a major
architectural engineering firm that had worked on several
defense-related projects involving nuclear technology.

The total value of the Texasgulf acquisition was $4 billion. As
of yearend 1981, Elf Aquitaine held 63.1 percent of the natural
resources firm.

In December 1981, the Committee on Foreign Investment in the United
States advised the House Subcommittee on Commerce, Consumer, and
Monetary Affairs that Kuwait Petroleum Corp.'s acquisition of Santa
Fe International did not have significant negative implications for
U.S. national interests. The Justice Department found no antitrust
implications in the transaction and waived the remainder of the
required waiting period. The Energy Department retrieved all
sensitive documents from Santa Fe International's C. F. Braun
subsidiary. Shortly thereafter, Braun decided to withdraw from its
defense-related nuclear work. At yearend 1981, the SEC
investigation of alleged insider trading prior to the announcement
of the Santa Fe International acquisition was still continuing.
With the acquisition of Santa Fe International, Kuwait became the
first of the OPEC countries to acquire a major domestic U.S. energy
company,—' an investment that moves Kuwait Petroleum Corp. toward
its stated goal of vertical integration—the capacity to do
everything from exploring for oil through pumping it, refining it,
and selling the refined products.
This transaction is the third in a series of 1981 direct investments
in the U.S. oil industry by Kuwait Petroleum Corp. Kuwait also has
contributed $50 million for a joint U.S. oil exploration venture
with AZL Resources Inc., a Phoenix, Arizona energy firm, and $185
million for a joint venture with Pacific Resources Inc. that will
give Kuwait 50 percent ownership of the Hawaiian company's Hawaiian
Independent Refinery Inc. subsidiary. Neither transaction was
completed at yearend 1981.
Fortune 500 Companies
Foreign corporations owned or controlled by foreign governments are
Inevitably,
active in most economic sectors of the U.S. economy.
some of that investment goes into U.S. Fortune 500 companies or into
ventures with U.S. Fortune 500 companies. Table 9 provides a
listing of foreign investment in or with Fortune 500 companies from
1974 through 1981.

In 1982, the SEC charged several individuals, including some
Santa Fe International employees, with insider trading.

The total acquisition of Aramco (Arabian-American Oil Co.)
(1973-80) is not included here because the transaction was not
foreign direct investment in the United States. The Saudi
Arabian Government acquired only the assets of the U.S.
company's foreign branch.

TABLE 9
Direct Investment Related to U.S. Fortune 500 Companies
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-81
NO.

Government of Foreign Investor
Canada
France

u>
oo Italy

Kuwait

Canada Development
Corp. (CDC)

U.S. Company
Texasgulf Inc.

Ownership/
SIC No./
Participation % Assets
Sales
U.S. Industry of For. Investor ($ Millions) ($ Millions) Employees
10

Transactions/
U.S. Co.
($ Millions)

286

329

7/60.2 2/

$2,010.4

$1,090.1

6,480

1,029.0

2,552.6

21,400

155

109

1/167.5

547.7

800.0

9,685

350

248

1/75.0

63.1

2,010.4

1,090.1

6,480

286

329

1/2,500.0

36.9 1/

Mining

Regie Nationale des American Motors
Usines (Renault)
Corp.

Regie Nationale des White Motor Co.
Usines (Renault)

Automobiles

Entreprise de
Texasgulf Inc.
Recherches et
D'Activites Petrolieres (ERAP) (through
Societe Nationale
Elf-Aquitaine SA)

Trucks

46.4
100.0

10
Mining

Ente Nazionale
Idrocarburi (ENI)

Occidental
13
Petroleum
Oil/Gas Expl.
Co. (through Enoxy Drilling
Joint Venture)

50.0

6,629.9

12,476.1

34,700

Ente Nazionale
Idrocarburi (ENI)

Texaco Inc.
(through
Joint Venture)

13
Oil/Gas Expl.
& Drilling

26,430.4

54,195.8

66,745

Kuwait Petroleum
Corp. (KPC)

Pacific Resources
Inc. (through
Hawaiian
Independent
Refinery
Joint Venture)

29
Petroleum
Refining

50.0

349.1

837.0

707

Fortune
500 Rank
1980
1979

1/375.0

1/NA
341

423

1/185.0 3/

TABLE 9 Cont'd.
Direct Investment Related to U.S. Fortune 500 Companies
by Foreign Companies Owned or Controlled by Foreign Governments, 1974-81
NO.

Government of Foreign Investor
United The British PetroKingdom leum Co. Ltd. (BP)
The British Petroleum Co. Ltd. (BP)

U.S. Company
Kennecott Corp.

Ownership/
SIC No./
Participation %
U.S. Industry of For. Investor
10

Assets
Sales
($ Millions) ($ Millionsj Employees

Standard Oil
Co. (Ohio)

29
Petroleum
Refining

3,231.4

2,255.8

35,000

169

143

2/940.9

53.0

12,080.1

11,023.2

22,938

18/1,590.5 4/

2/ Six transactions were completed and five had values totaling $60.2 million.
3/ This transaction was pending at yearend 1981.
4/ Thirteen transactions were completed and 12 had values totaling $1,590.5 million.
Fortune May 4, 1981
U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982

Transactions/
U.S. Co.
($ Millions)

53.0

Mining

1/ Elf Aquitaine will acquire Canada Development Corp.'s holdings in 1982 when takeover is scheduled for completion.

Source:

Fortune
500 Rank
1980
1979

During this period, the governments of five countries—Canada,
France, Italy, Kuwait, and the United Kingdom—invested through
wholly or majority-owned corporate entities in, undertook joint
ventures with, or had a share of investments made by eight Fortune
500 companies. These companies had total 1980 sales of $85.2
billion and 1980 assets worth $52.3 billion. They employed 197,655
individuals.
Investments by foreign government-owned or -controlled companies in
or with the eight Fortune 500 companies accounted for 33
transactions, about 22 percent of all transactions identified.
Twenty-six of the transactions were completed and 24 of them had a
total value of $5.7 billion.
Two companies—both natural resources firms—accounted for most of
the Fortune 500 transactions on the list. Standard Oil Co. of Ohio
(Sohio) had the most (18). Twelve of them were completed, and 10
had a value of $1.4 billion. Two additional transactions were
shared by Sohio and another Fortune 500 company—Kennecott Corp.
Sohio acquired the copper producer in 1981 and is, therefore, its
U.S. parent company.
Texasgulf Inc. had the second highest transaction tally. This
natural resources company had eight transactions, seven of which
were completed. Five completed values were available; they were
worth $2.6 billion. Moreover, Texasgulf was unique in the data
population because it was the only U.S. company owned by two foreign
governments—Canada and France.
Following the investment pattern described earlier, half of the
companies listed are natural resources companies—Kennecott Corp.,
Occidental Petroleum Co., Texaco Inc., and Texasgulf Inc. Also,
half of the companies are petroleum or petroleum refining
companies—Occidental Peroleum Co., Pacific Resources Inc., Texaco
Inc., and Texasgulf. Two companies—American Motors Corp. and White
Motor C o . — a r e motor vehicle manufacturers.
Six of the eight companies had 1980 sales of more than $1 billion
and rose in the Fortune 500 rank between 1979 and 1980. The two
that lost ground in the ratings were the automotive manufacturing
firms.
These eight Fortune 500 companies accounted for 24 transactions,
about 16 percent of all the transactions identified.

Three Aborted Investment Transactions
Each aborted investment transaction has its own story. So it is
with three prominent examples of uncompleted foreign investment
ventures in which four foreign governments had a role. Table 10
lists these transactions. They are (1) Canal Place/Government of
Iran (1976), (2) Solvent Refined Coal II Process Plant (SRC
ID/Governments of Japan and West Germany (1979),—' and (3) Getty
Oil Co./Government of Kuwait (1980).
These investment failures followed a pattern similar to that of
completed U.S. investments by foreign companies with government
ownership. They were all in industry sectors that attracted
investment by these companies; two were in energy and one was in
real estate. They were all potentially large investments; two
involved more than $500 million each and the third, more than $200
million.
Three of the four governments involved—Iran, Kuwait, and West
Germany—are shareholders in foreign companies that completed
substantial investments or had extensive holdings in the United
States during this 8-year period.
Nevertheless, circumstances were such that a revolution, escalating
costs, and a rejected offer resulted in two cancelled joint ventures
and a rejected acquisition bid.
Canal P l a c e — I n 1976 Bank Omran, at that time wholly owned by the
Pahlavi Foundation (itself controlled by Shah Mohammed Reza Pahlavi
and his family), undertook a 50-50 joint venture real estate
development project (Canal Place) with Louisiana real estate
developer Joseph O. Canizaro. Located in New Orleans, this $500
million project, is a multi-use complex which features hotels,
offices, and stores.
Bank Omran was brought into the project by First National City
Bank. Bank Omran representatives listed the economic stability of
New Orleans and the sound return on their investment as reasons for
choosing to participate in the Canal Place project.

10/

The Solvent Refined Coal II plant transaction, while listed in
the appendix B table, is not included in final data
calculations because the joint venture agreement was cancelled
and the entire project was terminated.

TABLE 10
Aborted Direct Investment Transactions in the
United States by Foreign Companies Owned or Controlled
By Foreign Governments, 1974-81

Government
of

U.S. Company

State

Iran

Canal Place

Foreign Owner of
Record/Bidder/% of
SIC No./
U.S. Industry Gov. Ownership
65
Real Estate

Bank Omran

1979

1981

1979

1981

982.0

EI
(from .01%
to 14.6%)

1980

Kuwait

Getty Oil Co.
CA

13
Kuwait Investment
Organization (KIO)
Oil Expl.
(100%)
& Development

1979

JV
(25%)

29
Coal
Liquefaction

U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982

1976

350.0

Source:

JV
(50%)

Government of
West Germany
(25%)

Solvent Refined
Coal Process
Plant II
SRC II)

250.0

Year of Transaction
Cancel1ati on/Failure

350.0

West
Germany

Coal
Liquefaction

Year of
Transaction

Government of Japan
(25%)

Type of
Transaction

(100%)

Solvent Refined
Coal Process
Plant II
(SRC II)

Japan

Value of
Transaction

JV
(25%)

After the Shah of Iran was deposed in January 1979, the Khomeini
government at first offered to continue the joint venture, but later
it decided to terminate the partnership when difficulties arose over
long-term financing of the project and negotiations with prospective
tenants.
After 6 months of negotiations, Canizaro purchased the Iranian
interest in July 1979 for $50 million, part of which (reportedly
$1.5 million) was financed by the Iranians themselves. According to
the New Orleans developer, the Iranian Government turned its equity
in the project into a financing arrangement.
If so, the Iranian
Government now participates in Canal Place only indirectly, as a
lender.
Solvent Refined Coal II Process Plant (SRC I I ) — I n 1979 the
Governments of Japan and West Germany each agreed to provide 25
percent of the cost of a $1.4 billion plant to produce liquid fuel
directly from coal. The plant was to use a technology developed by
Gulf Oil Corp. and was to have been built near Morgantown, West
Virginia. It would have demonstrated the feasibility of a direct
liquefaction process, solvent refined coal (SRC). Upon its
completion in 1984, the plant would have been able to turn 6,000
tons of coal a day into the equivalent of 20,000 barrels of oil that
could be refined into gasoline, heating oil for homes, or industrial
boiler fuel.
Gulf was scheduled to operate the plant with Rurhkohle A.G. and Veba
A.G., two West German companies, and a Japanese consortium headed by
the Mitsui Group. These companies would have financed up to $100
million of the costs and the U.S. Government was to have paid the
remaining $600 million.
In August 1980 the final agreement for SRC II was signed in
Washington, D.C. by President Carter and the Ambassadors of West
Germany and Japan. However, by December 1980 West Germany began to
express doubts about the rapidly escalating costs of the p r o j e c t —
$3 billion up from $1.4 billion.

11/

This process produces a clean-burning liquid from high sulfur
coal, which, burned in its original state, is a major source of
pollutants.

In an effort to save SRC II, the Japanese Government offered a
proposal that would have reduced the size of the project, but kept
it essentially intact. The three governments also considered and
rejected the idea of paying about $70 million to continue just the
project design work for 2 more years.
Finally, the U.S. Government, which had already spent $100 million
on the plant, decided to end direct government funding of the
project, and in June 1981, Japan and West Germany agreed to end the
cooperative effort. Two months later, Gulf donated the 2,000 acre
plant site and $350,000 in cash to the local county development
authority.
A victim of rapidly escalating costs, the SRC II plant was, at its
inception, widely regarded as the most ambitious international
energy project ever undertaken.
Getty Oil C o m p a n y — I n July 1980 the Government of Kuwait made a
surprise $982 million offer ($82 a share), to purchase the 14.6
percent of Getty Oil Company common shares held by the J. Paul Getty
estate. The offer was made through the London-based Kuwait
Investment Organization (KIO), one of the Kuwaiti Government
agencies that invests the country's oil wealth.
Getty Oil, which lifts about 66,000 barrels of crude a day from a
concession in Kuwait, opposed the offer on the ground that the block
of stock should be more widely distributed.
Had the offer been accepted, the Kuwaiti Government would have had a
block of stock second in size to the block of 31.8 million shares
(38.7 percent) held by the Sarah C. Getty Trust. The Government had
earlier purchased less than 200,000 Getty oil shares as part of a
four million share offering in April 1980. Moreover, this
transaction would have marked the largest OPEC investment in a U.S.
international oil company at that time.
After a week of discussions, the three co-executors rejected the
offer from Kuwait. Reportedly, the major factors in the rejection
were the massive tax complications involved in the sale and
preservation of the future value of the shares for the estate's
beneficiary, the J. Paul Getty Museum, which at the time was having
tax and legal problems with the $300 million raised in the April
share offering.
While the Canal Place, SRC II, and Getty Oil Co. investments did
fail, they nevertheless serve a useful purpose as illustrations that
foreign government investors are subject to the same market forces
that affect private investors, both foreign and domestic.

SUMMARY
Despite the wide publicity devoted to government-controlled direct
investments, they remain less than 5 percent of all foreign direct
investment in the United States. Appendix D lists recent
investments in the United States by foreign government-owned or
controlled companies from January through June 1982.
This report examined direct investment in the United States by
foreign government-owned or -controlled companies and attempted to
develop some information based on transactions data collected from
public sources from 1974 through 1981.
The data in this report indicated that these investments accounted
for a modest number (147) of the approximately 5,300 foreign direct
investment transactions identified during this period. Fewer
investments (124) were actually completed.
The major industrial countries were the primary source of direct
investment by foreign government-owned or -controlled companies in
the United States. Canada, France, the United Kingdom, and West
Germany accounted for about 65 percent of the completed transactions
identified.
While these investments were widespread geographically, they
concentrated primarily in the mining and natural resources sector.
Investments by foreign government-owned or -controlled companies
totaled more than $7 billion as compared to just over $1 billion
invested in the manufacturing sector.
To the extent the information in this report is useful, the public,
the Congress, and other Federal agencies are invited to make use of
it in examining direct investment in the United States by foreign
government-owned or -controlled companies.

Foreign Direct Investment Glossary
Acquisition - A transaction in which title to stock or assets of the
U.S. company is secured by another person or enterprise. The
substantive result is that one party obtains ownership of another.
Agency - A foreign financial intermediary operation in the United
States primarily financing international transactions but prohibited
from accepting domestic deposits.
Branch - A foreign financial intermediary (integral part of the
foreign parent bank) that can accept domestic deposits.
Equity Increase - A rise in the percentage of securities held by a
foreign investor.
Foreign Direct Investment - The direct or indirect ownership or
control by one foreign person or entity of 10 percent or more of the
voting securities of an incorporated U.S. business enterprise or an
equivalent interest in an unincorporated U.S. business enterprise.
Joint Venture - A transaction in which two or more parties may
establish a new U.S. company or participate in a U.S. business
enterprise (e.g., mining, oil drilling) in which each has an equity
interest according to the provisions of the joint venture agreement.
Merger - A transaction that results in the dissolution of the
acquired business enterprise, either into another existing or
reorganized (but not always renamed) company.
New Outlet - A wholesale distribution entity in the United States
for sales and services.
New Plant - A new operating facility established either in
conjunction with an existing foreign-owned productive enterprise or
as a completely new venture in the United States.
Plant Expansion - An addition to the capacity of an existing
foreign-owned operating facility in the United States, established
either in conjunction with an existing foreign-owned productive
enterprise or as a completely new venture.
Standard Industrial Classification (SIC) - A definition of U.S.
industries by numerical classification in accordance with the
composition and structure of the domestic economy.
Subsidiary - A business enterprise in the United States directly or
indirectly owned or controlled by a foreign person or entity to the
extent of 10 percent or more of its voting stock for an incorporated
business enterprise or an equivalent interest in an unincorporated
business enterprise, which is permitted to do business under State
and/or Federal authority.

APPENDIX A
U.S. Affiliates and Subsidiaries of Recently
Nationalized French Companies
France's industrial nationalization bill was signed into law
February 11, 1982. Under this law, 5 major industrial groups, 39
banks, and 2 financial holding companies were nationalized.
Since World War II the French Government has been involved in
industry through partial or total ownership of companies in key
industries such as transportation, energy, and broadcasting.
This
new law has increased government control of the industrial sector
from 12 to 17 percent and put all major domestic financial
institutions and 14 of the 20 largest French industrial firms under
government control.
The five major industrial groups affected by the new law are
Compagnie Generale d'Electricite (electrical products), Compagnie de
Saint-Gobain Pont-A-Mousson S.A. (glass, building materials),
Pechiney Ugine Kuhlmann (aluminum, copper, and chemicals),
Rhone-Poulenc S.A. (synthetic fibers, pharmaceuticals), and
Thomson-Brandt (household appliances, electronic equipment). The
financial holding companies include Compagnie Financiere de Paris et
des Pays Bas (Paribas) and Compagnie Financiere de Suez. Banque
Rothschild is among the 39 nationalized banks, as are three
previously nationalized banks: Banque Nationale de Paris, Credit
Lyonnais, and Societe Generale.
The attached table is a selected list of U.S. affiliates and
subsidiaries of some of the nationalized firms. This list is drawn
from public source material and is based on the best published
material available at the time. Every effort was made to reconcile
data from several different sources and to give as complete a
listing as possible within the time limits of the research project.
This appendix provides some information on the industry and location
of U.S. companies affiliated with or controlled by some nationalized
French companies.

APPENDIX A Cont 1 d.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

AVIONS MARCEL
DASSAULT-BREGUET
AVIATION 1/

U.S. Company/% of
Total Foreign Ownership

State

SIC No. &
Industry

Dassault
International Corp.

67
Holding Co.

50
Wholesale
Aircraft

37
Aircraft
Assembly &
Repair

78
Motion Picture
Distributor

U.S. Alpha Jet 3/
(50%)

50
Wholesale
Aircraft

Banque de L*Union
Europeene

(100%)
Dassault International
USA Inc.
(100%)

Falcon Jet Corp. 2/
(100%)

Falcon Jet France 2/
(100%)

Gaumont SA
(10%)

BANQUE DE L'UNION
EUROPEENE

Gaumont Inc.
(100%)

(100%)

Banking

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

BANQUE NATIONALE
DE PARIS (BNP)

U.S. Company/% of
Total Foreign Ownership

State

SIC No. &
Industry

Banque Nationale
de Paris

CA,
IL
NY

Banking

Bank of the West
(100%)

Banking

French American
Banking Corp.
(100%)

Investment
Banking

French American
Capital Corp.

(100%)

Imetal 4/
(26.9%)

Copperweld Corp.

Imetal
(26.9%)

Copperweld Corp.
and subsidiaries:

(66%)

(1) American Seamless
Tubing

(66%)

OH
PA
TX

33
Steel
Products

33
Seamless Steel
Tubing

33
Specialty
Steel

(66%)

(2) Copperweld Steel Co.

Financial
Services

(100%)

BANQUE ROTHSCHILD

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

Subsidiaries (cont'd):

BANQUE ROTHSCHILD

(3) Copperweld Oil & Gas
Co.

13
Oil & Gas
Exploration &
Development

(4) Guardian Oil Co.
(30.6%)

13
Oil & Gas
Exploration &
Development

(5) Ohio Steel Tube Co.

33
Steel Tube

(66%)

BANQUE WORMS

SIC No. &
Industry

Imetal
(26.9%)

Le Nickel Inc.

50
Wholesale
Nickel

Imetal
(26.9%)

Minemet Inc.

67
Trading Co.

Imetal
(26.9%)

Urania Exploration Inc.

10
Uranium Mining

Banque Worms
(100%)

60
Banking

Permal International
Inc.

62
Securities

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

SIC No. &
Industry

COMPAGNIE FINANCIERE
DE PARIS ET DES
PAYS BAS (PARIBAS)

Banque de Paris et des
Pays Bas

Banque de Paris
et des Pays Bas

CA
NY

Banking

Banque de Paris et
des Pays Bas
International

CO
TX

Banking

Creusot-Loire 5/
(10.7%)

Creusot-Loire International Inc.

Creusot-Loire
(10.7%)

C-L Metals Inc.
(98%)

OH
TX

Creusot-Loire
(10.7%)

C.L. Rail Trucks Inc.

Creusot-Loire
(10.7%)

Creusot-Loire Aerospace
Forge & Foundry Inc.

50
Wholesale
Steel

Creusot-Loire
(10.7%)

Creusot-Loire Philadelphia

33
Steel

(100%)

67
Holding Co.
U.S.
Operations

(100%)

33
Steel Forgings
& Castings
50
Wholesale
Railroad
Trucks

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

SIC NO. &
Industry

PARIBAS

Creusot-Loire
(10.7%)

Creusot-Loire Steel Corp.

33
Steel

Creusot-Loire
(10.7%)

Creusot Marrell
Inc.

Paribas Associates Inc.

(100%)

Production
50
Wholesale
Metals
62

Investment
Banking

(100%)

Paribas North
America Inc.

NY
TX

Banking

Creusot-Loire
(10.7%)

Phoenix Steel Corp. 6/
(56.2%)

DE,IL
OK, PA
TX, WI

33
Steel Plates
& Seamless
Tubes

Creusot-Loire
(10.7%)

Refinement
International Co. V
(65.5%)

IL
RI

33
Metals
Reclamation

Total Group 8/
(22.4%)

Total Petroleum Inc.

13
Oil/Gas
Exploration
& Development

(100%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

PARIBAS

Creusot-Loire
(10.7%)

Valdunes
(100%)

50
Wholesale
Wheels
& Axles

Total Group
(22.4%)

Vickers Petroleum Corp.
(100%)

13
Oil/Gas
Drilling
Services

Banque de Paris et
des Pays Bas

Warburg Paribas 9/
Becker-A.G. Becker Inc.

IL
NY

(100%)

COMPAGNIE FINANCIERE
DE SUEZ

(20%)

Banque de L'Indochine
et de Suez SA
(99.9%)

American Transit
Finances Corp.

Banque de L'Indochine
et de Suez SA
(99.9%)

Banque de L'Indochine
et de Suez

SIC NO. &
Industry

Investment
Banking
61

Financial
Services
IL
NY

Banking

(100%)

Blyth, Eastman,
Paine, Webber Inc.

Securities

(6%)

Compagnie Financiere
de Suez
(100%)

Banking

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

SIC No. &
Industry

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

COMPAGNIE FINANCIERE
DE SUEZ

Banque de L'Indochine
et de Suez SA
(99.9%)

Gardinier Big
River Inc.

14
Phosphate
Mining

Suez American
Corp.

60
Finance

Alcatel Vacuum
Products Inc.

35
Air & Gas
Compressors

NY
LA

50
Wholesale
Transportation
Equipment

COMPAGNIE GENERALE
D'ELECTRICITE (CGE)

CIT-Alcatel
(59%)

(100%)

Alsthom At!antique SA 10/
(68.7%)

Alsthom Atlantic
Inc.
(100%)

CGA-Alcatel U /
(57.2%)

Alta Technology
Inc.
(100%)

CT
TX

35
Automatic
Controls &
Banking
Terminals

Cables de Lyon

Chester Cable Corp. U /

33
Electrical
Cables

Citcom Systems Inc.
(100%)

NY
TX

36
Switchboard,
Switchgear
Apparatus

(100%)

CIT-Alcatel
(59%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

SIC NO. &
Industry

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

CGE

CGE Alsthom International
(59%)

Cogenel Inc.

50
Wholesale
Electrical
Equipmemt

CGEE Alsthom
(54%)

Cornsip Inc.

CA
NJ

37
Aircraft
Parts

CIT-Alcatel
(59%)

Dyneer Corp.

36
Semiconductors

CIT-Alcatel
(59%)

Friden Mailing
Equipment Inc.

35
Postage
Meters

54
Food Stores

CGE

(100%)

(80%)

Generale Occidentale SA U /
(33.7%)

Grand Union Co.

GSI International ]4/
(59%)

GSI-USA Inc.

Intervox-Alcatel V5/
(56.5%)

Intervox U.S.
(100%)

(100%)

73
Computer
Services
36
Intercom
Systems

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

CGE

CIT-Alcatel
(59%)

Lynch Communication
Systems Inc.
(31%)

36
Telecommunications
Equipment

Alsthom At!antique S.A.
(68.7%)

Neyrfor Turbodrilling Co.
Inc.

CA
OK

73
Equipment
Rental &
Leasing

State

(100%)

SIC No. &
Industry

Neyrpic SA ]6/
(28.9%)

Combustion Engineering/
Neyrpic Hydro Inc.
Energy Systems

35
Hydraulic
Turbines

Neyrpic SA
(28.9%)

Hydro Energy Systems

50
Wholesale
Hydroelectric
Turbines

Neyrpic SA
(28.9%)

Neyrpic Inc.
(100%)

NY
WA

89
Engineering
Services

CIT-Alcatel
(59%)

Reliable Communications
Products Co.
(70%)

50
Wholesale
Telephone
Equipment

APPENOIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

CGE

CIT-Alcatel
(59%)

Roneo Alcatel

35
Office
Equipment

Societe Generale
d'Entreprises
(54%)

Sabrice Corp.

NY
VA

15
General
Contractors

Ste. Des Accumulateurs Fixes
et de Traction SA (SAFT)
(71.7%)

SAFT America Inc.

36
Aircraft
Batteries

SAFT
(71.7%)

SAFT Corp. of America

50
Wholesale
Aircraft
Batteries

SAFT
(71.7%)

Score Inc.

MD,NC
OH, OK

36
Thermal
Batteries

Sediver Inc.

36
Insulators

Semi Process Inc.
(25%)

36
Integrated
Circuits

CGE

CIT-Alcatel
(59%)

(100%)

SIC No. &
Industry

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

SIC No. &
Industry

CGE

CIT-Alcatel
(59%)

Sensor Technology Inc. 17/

CA,FL
NV,WA

36
Solar Energy
Equipment

CIT-Alcatel
(59%)

SESA Honeywell 18/
Communications Inc.
(51%)

89
Engineering
Services

CIT-Alcatel
(59%)

SESA Inc. 19/
(51%)

MA
NJ

73
Computer
Program
Services

Societe Generale d'Entreprises
(54%)

SGE Construction
(100%)

15
Construction

Societe Generale d'Entreprises
(54%)

Sogetexas
(100%)

15
Construction

Alsthom Atlantique SA
(68.7%)

Sylvania Unelec
Internati onal
(32%)

36
Electroni c
Equipment

CIT-Alcatel
(59%)

Telecommunications
Switching Systems Inc.
(100%)

36
Electronic
Time Switch
Systems

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

SIC No. &
Industry

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

COMPAGNIE DE SAINTGOBAIN-PONT-A-MOUSSON

Saint Gobain Industries SA

Certain-Teed Corp.
(55%)

50
Wholesale
Construction
Materials

Certain-Teed Corp.
(55%)
and Subsidiaries:

KS
PA

29
Asphalt Felts
& Coatings

(1) Adams Bros. Co.
(55%)

30
Plastic Pipes
& Pumps

(2) Bowles + Edens Co.
(55%)

AR, LA
MI

50
Wholesale
Plumbing +
Heating
Equipment

(3) Certain-Teed Corp1G Group Division
(55%)

42
General
Warehousing

(100%)

Certain-Teed Corp's
Subsidiaries (cont'd.)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

COMPAGNIE DE SAINTGOBAIN-PONT-A-MOUSSON

Saint Gobain Industries SA

Subsidiaries (cont'd.)
(4) Certain-Teed CorpAutomotive Division
(55%)

50
Wholesale
Automotive
Supplies

(5) Certain-Teed Piping
Materials Inc.
(55%)

FL,GA
PA

50
Wholesale
Waterworks
Supplies

(6) Certain-Teed
Technology Center
(55%)

30
Plastic Pipe

(7) Fluid Systems
Hawaii Inc.
(55%)

50
Wholesale
Metal Pipe

(8) SMG Group
(55%)

CA
GA

15
Construction

(9) Southern Meter &
Supply Co.
(55%)

GA,NC
VA

(100%)

SIC No. &
Industry

50
Wholesale
Waterworks
Supplies

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

SIC NO. &
Industry

COMPAGNIE DE SAINTGOBAIN-PONT-A-MOUSSON

Saint Gobain Industries SA

Certain-Teed Daymond
Co. Inc.
(55%)

IN
MI

30
Plastic
Pipes

Certain-Teed Products
Corp.
and Subsidiaries:

50
Wholesale
Waterworks
Supplies

(1) The Rohan Co.

50
Wholesale
Industrial
Equipment

(2) Waterworks Supply
& Manufacturing Co.

50
Wholesale
Plumbing &
Heating Equip

Olivetti International 20/
(30%)

Docutel

CA
TX

36
Telecommunications Equip

Glaceries de Saint Roch 21/
(49.9%)

Franklin Glass Corp.
(40%)

32
Glassware

(100%)

(20.2%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

State

SIC No. &
Industry

A2,CA,CT,GA,MA,
MD,MN,MO,NB,NJ,
NY,OH,OK,PA,PR
TX,VA,WA

36
Office
Equi pment

Precision Meters Inc.
(50%)

38
Water Meters

Saint Gobain International
Glassware Corp.
(100%)

Saint Gobain Inc.

50
Wholesale
G1assware
50
Representative
Office

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

COMPAGNIE DE SAINTGOBAIN-PONT-A-MOUSSON

Olivetti International 22/
(30%)

Olivetti Corp. of America

Pont-a-Mousson 23/
(96.9%)
Saint Gobain Industries SA

(100%)

Saint Gobain Industries SA
(100%)

(100%)

Olivetti International 24/
(30%)

Syntrex Inc.
(25%)

GA,NJ
VA

35
Word Processing Equipment

Glaceries de Saint Roch 25/
(49.9%)

Virginia Glass Products

32
Glassware

(26%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

CREDIT COMMERCIAL DE
FRANCE

U.S. Company/% of
Total Foreign Ownership

State

Credit Commercial
de France

SIC NO. &
Industry
60

Banking

(100%)

CREDIT INDUSTRIEL ET
COMMERCIAL

Credit Industrie! et Commercial

CREDIT LYONNAIS SA

Credit Lyonnais
North America

Banking

(100%)

GA.NY
IL.TX

Banking
27
Book

(100%)

Librarie Hachette SA 26/
(27%)

Arista Corp.
(65%)

Hachette
(27%)

Eurobooks

Europartners Securities Corp.

Publishing
51
Wholesale
Books
62

Investment
Banking
Hachette
(27%)

European Publishers
Representatives Inc.

51
Wholesale
Newspapers
& Magazines

Hachette
(27%)

Hachette Inc.

27
Book
Publishing

(100%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

CREDIT LYONNAIS SA

Hachette
(27%)

Hachette Publications Inc.

27
Book
Publishing

Hachette
(27%)

Regents Publishing Co. Inc.

27
Book
Publishing

Le Carbone-Lorraine SA
(35%)

Carbone Lorraine
Industries Corp. +

35, 36
Carbon
Brushes,
Bearings,
Batteries

(1) Advanced Carbon Products

36
Carbon
Brushes

(2) Carbone USA Corp.

36
Carbon +
Graphite
Products

36
Switchgear

PECHINEY UGINE
KUHLMANN SA
(PUK)

(100%)

Affiliates + Subsidiaries:

(100%)

(3) Carbone Ferraz Corp.

SIC NO. &
Industry

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

PUK

Le Carbone-Lorraine SA
(35%)

SIC No. &
Industry

U.S. Company/% of
Total Foreign Ownership

State

Subsidiaries (cont'd)
(4) Exetron Corp.

50
Wholesale
Movie
Theater
Equipment

(5) Helicoflex Co. 27/

32
Metal Seals
Gaskets

34
Aluminum
Pipe

The D-H Titanium Co. 28/
(50%)

33
Titanium
Sponge

Eastalco Aluminum Co. 29/
(75%)

33
Aluminum

Guggenheim International 30/
Corp.

CT,
NJ

(100%)

Columbia Metal
Culvert Co.
(100%)

(100%)

Hoover Ugine Inc.
(100%)

SO
Wholesale
Precious
Metals
33
Steel Wire

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent
PUK

Foreign Owner of Record/%
of Government Ownership

State

SIC No. &
Industry

AR,CA,CT,IL
MD.MI.QH
PA,SC,TX

33
Aluminum
Products

Howmet Corp.
(100%)

CT,GA,IN
KS.NJ.PA
TX,WI

33
Aluminum,
Steel
Products

Howmet Culver Corp.

NC
NJ

34
Pipe + Pipe
Fittings

CT,IN,MI,NJ
TX,VA, WI

37
Aircraft
Engines +
Parts

U.S. Company/% of
Total Foreign Ownership
Howmet Aluminum Corp. 31/
(100%)

(100%)

Howmet Turbine 32/
Components Corp.
(100%)

33
Fabricated
Metals
Intalco Aluminum Corp. 33/
(50%)

Intalco Tolling Corp. 34/
(50%)

33
Aluminum
Production
34
Heating
Equipment

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

PUK

U.S. Company/% of
Total Foreign Ownership
Intsel Corp.

State
NY

(100%)

Minatome SA 35/
(50%)

Minatome Corp.

SIC No. &
Industry
50
Wholesale
Metals,
Chemicals
10

Uranium
Mining,
Milling

(100%)

New England Aircraft 36/
Products Division
(100%)

37
Aircraft
Parts

Oxychem Co. Inc.

Pechiney Trading Co. SA 37/

51
Wholesale
Chemicals
50
Wholesale
Metals

(100%)

Pechiney Ugine
Kuhlmann Corp.
(100%)

CT
NY

33
Alumi num
Holding Co.

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

PUK

U.S. Company/% of
Total Foreign Ownership

State

Pechiney Ugine
Kuhlmann Development Inc.

(100%)

Ugine Kuhlmann
of America Inc.

Armosig
(50%)

Gardinier
(61%)

50
Wholesale
Metals
28

Chemicals
+ Dyestuffs

(100%)

RHONE-POULENC SA

Chemical,
Nuclear
Technology,
Pharmaceutical
Research

(100%)

PTC Partners 38/

SIC No. &
Industry

Armotek
(50%)

35
Engraving
Equipment

Dysan Corp.
(20.4%)

CA
M0
PA

35
Computer
Equipment

Gardinier Inc.
Delaware US

67
Holding Co.

14
Phosphate
Products

(100%)

Gardinier
(61%)

Gardinier Inc.
Delaware Corp.
(100%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

RHONE-POULENC SA

U.S. Company/% of
Total Foreign Ownership

State

Hospal Medical
Corp.

(100%)

Institut Merieux SA
(51%)

Lincoln Laboratories Inc.

Institut Merieux SA
(51%)

Merieux Institute Inc. 39/

Rhone-Progil SA

Progil Inc.

FL
FL

(100%)

Rhodia Inc.

38
Prosthetic &
Surgical
Devices
28

Pharmaceuticals

(12.1%)

Pharmaceuticals
NY

(100%)

Rhodia AG
(100%)

SIC No. &
Industry

(100%)

Chemicals
22

Rhone-Poulenc Inc.
(100%)

CA
NY

and Subsidiaries:
(1) Agrochemical Division

(100%)

Agricultural
Chemicals
28

Agricultural
Chemicals

(100%)

(2) Ajax Division

Synthetic
Yarns

33
Nonferrous
Metals

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent
RHONE-POULENC SA

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

Rhone-Poulenc
Subsidiaries (cont'd):
(3) Anken Industries

(100%)

(6) Photo Products Group
o

(100%)

(7) Quadrimetal Offset

NJ
NY
GA

(100%)

(8) Rochester Film
Development Inc.

(100%)

50
Wholesale
Photo Products
28

Photographic
Chemicals
35
Machine
Tools
28

Photo
Products

(100%)

(9) Rhone-Poulenc
Chemical Co.

Agricultural
Chemicals

(100%)

(5) General Photo
Products Co. Division

Photographic
Chemicals

(100%)

(4) Chipman Chemical
Division

SIC No. &
Industry

Agricultural
Chemicals

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

RHONE-POULENC SA

U.S. Company/% of
Total Foreign Ownership

State

Subsidiaries (cont'd.)
(10) Rhone-Poulenc
Systems Co.

(100%)

SOCIETE FINANCIERE
USINOR-CHATILLON

SIC No. &
Industry
30
Films
Microfilms

Tac Tannins &
Chemicals Inc.
(25%)

Union Siderurgique du
Nord et de L'Est de la
France (USINOR)
(98%)

Beckley Lick
Run Co.
(90%)

33
Steel
Products

Trefileries et Cableries
Chiers
Chatilion Gorcy
(98%)

Chatillon Gorcy USA

50
Wholesale
Carbon Wire
Products

Usinor

Toledo Pickling &
Steel Service Inc.
(100%)

34
Steel Coating,
Engraving
Solution

Usinor

Usinor Industries Inc.

(100%)

67
Holding Co.

(100%)

Usinor

Usinor Steel Corp.
(100%)

Tanning
Extracts

MI, NY
TX

50
Wholesale
Steel
Products

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

SOCIETE GENERALE

U.S. Company/% of
Total Foreign Ownership

State

SIC No. &
Industry

European-Ameri can
Bancorp. Inc.

CA
NY

67
Banking

(20%)

European American
Bank & Trust Co.

Banking

(20%)

THOMSON-BRANDT

Hudson Securities
Inc.

Societe Generale

CA.IL
NY.TX

Thomson-CSF
(45.1%)

Auxilec Inc.

Thomson-CSF
(45.1%)

Burtek Inc.

Thomson-CSF
(45.1%)

California Computer 40/
Products Inc.

Investment
Banking
60

Banking

36
Military &
Industrial
Electronic
Equipment

36
Military
Training
Simulation
Systems

CA, IL
KS,NA

35
Computer
Software

(100%)

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

SIC No. &
Industry

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

THOMSON-BRANDT

Thomson-CSF
(45.1%)

Cameca Instrument
Inc.

50
Wholesale
Scientific
Instruments

Compagnie Generale de
Radiation
(100%)

CGR Medical Corp.

36
Medical
Equipment

Thomson-CSF
(45.1%)

CGT Corp.

36
Electronic
Simulators

Thomson-CSF
(45.1%)

Codela Lighting Inc.

36
Lighting
Equipment

Thomson-CSF
(45.1%)

Dumont Electronics Corp.

36
Electronics
Products

Thomson-CSF
(45.1%)

Tubes Devices Corp.
(100%)

Thomson-CSF
(45.1%)

Intercontinental
Electronics Co.

(100%)

36
Radio & TV
Receiving
Tubes
NY

36
Power &
Distribution
Transformers

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

THOMSON-BRANDT

Thomson-CSF
(45.1%)

Nucleonic Products Co.

Sodeteg
(100%)

Sodeteg Inc.

Thomson-CSF
(45.1%)

Solid State
Scientific Inc.

(100%)

SIC NO. &
Industry
36
Electronic
Components
89
Industrial
Consulting
Engineers

(100%)

FL
PA

36
Semiconductors

67
Holding Co.

(100%)

Thomson-CSF
(45.1%)

Thomson Corp. of America

Thomson-CSF
(45.1%)

Thomson-CSF
Broadcast Inc.
(100%)

Thomson-CSF
(45.1%)

Thomson-CSF
Components Corp.
(100%)

Thomson-CSF
(45.1%)

Thomson-CSF
Electron Tubes Inc.
(100%)

(100%)

36
Radio & TV
Broadcast
Equipment
36
Electronic
Tubes &
Components
36
Electron
Tubes

APPENDIX A Cont'd.
U.S. Affiliates and Subsidiaries of
Recently Nationalized French Companies

Nationalized Foreign
Corporate Parent

Foreign Owner of Record/%
of Government Ownership

U.S. Company/% of
Total Foreign Ownership

State

THOMSON-BRANDT

Thomson-CSF
(45.1%)

Thomson-CSF Inc.
(100%)

CA
NY

36
Electrical
& Electronic
Products

Thomson-CSF
(45.1%)

Thomson-CSF
Laboratories

36
Radio & TV
Transmitting
Equipment

36
Special
Purpose
Elec. Tubes

(100%)

Thomson-CSF
(45.1%)

Warnecke Electron
Tubes Inc.
(100%)

Source:

U.S. Department of Commerce
Office of Trade and Investment Analysis
July 1982

SIC No. &
Industry

Footnotes to Table
1.

The French Government plans to increase its current holdings of
46 percent to 100 percent within the next few years.

Falcon Jet Corp., formerly a 50-50 joint venture with Pan
American World Airways for marketing and servicing Falcon
Aircraft in the United States and other North and South American
countries, is now wholly owned by Dassault.

U.S. Alpha Jet, a 50-50 joint venture with Lockheed Corp.,
markets the Alpha Jet in the United States.

Imetal, 20 percent owned by Banque Rothschild, 5.8 percent owned
by the Suez group and 1.1 percent owned by Banque Worms, holds
66 percent of Copperweld Corp. Imetal is a Paris-based holding
company with interests in exploration, refining, and marketing
of base metals, particularly lead, nickel, and zinc.

Creusot-Loire is 50 percent owned by Compagnie Financiere
Creusot-Loire, itself managed and half-owned by Schneider S.A.
and Compagnie Generale d'Industrie et de Participations.
Paribas with a 15.4 percent interest in Schneider S.A. has
approximately a 4 to 8 percent interest in Creusot-Loire.
Usinor, another recently nationalized company, has a *3 percent
interest in Creusot-Loire.

Creusot-Loire owns 11 percent of Phoenix Steel Corp. directly
and 45.2 percent through UCL Securities.

Creusot-Loire owns 65.5 percent of Refinement International
Co.'s common shares and 98.4 percent on conversion of
debentures, notes, and preferred stock.

Compagnie Francaise des Petroles (CFP) is 35 percent owned by
the French Government, which also has 39.8 percent of the voting
rights. It is also 2.7 percent owned by Paribas and 1.8 percent
owned by Suez. CFP owns 50.6 percent of the Total Group.

Paribas and S.G. Warburg & Co., a British merchant bank, have
recently announced (7/82) they will exercise options to increase
their joint holdings to more than 50 percent. Each company
currently holds a 20 percent share in Warburg-Paribas
Becker-A.G. Becker Inc.

10. Alsthom
by CGE,
Paribas
percent

Atlantique S.A. of France is 65 percent owned directly
and 2 percent owned by Suez, and 1.7 percent owned by
through their holdings in Penhoet, which owns 10.6
of Alsthom.

11. CGA Alcatel is 96.9 percent owned by CIT Alcatel, which is 59
percent owned by CGE.

In 1980 Cables de Lyons, a CGE subsidiary, acquired a
"substantial interest" in Chester Cable Corp., but percentage
of ownership is unknown.

Generale Occidentale, a French holding company 33.7 percent
owned by Trocedero Participations, is controlled by Alphalec,
which is itelf controlled by CGE. The majority stockholder in
Generale Occidentale is Sir James Goldsmith, an Anglo-French
businessman who holds 63.7 percent of the company.

GSI International of Belgium is a wholly owned subsidiary of
CIT-Alcatel.

Intervox-Alcatel is 95.8 percent held by CIT-Alcatel.

Neyrpic S.A. is 35 percent owned by Alsthom Atlantique S.A.
(see footnote 9) and 64 percent by Creusot-Loire.

Sensor Technology is a subsidiary of Dyneer Corp.

SESA-Honeywell and SESA Inc. are 51 percent owned by
CIT-Alcatel and 49 percent owned by Honeywell Inc.

See footnote 18.

Saint Gobain holds 30 percent of Ing. C. Olivetti & C. S.p.A.
of Italy (which holds through its wholly owned Luxembourg
subsidiary Olivetti International, Olivetti Corp. of America
and shares of Docutel and Syntrex). As of July 1982, Olivetti
was seeking to increase its holdings in Docutel to 46 percent
from 20.2 percent.

Glaceries de Saint Roch of Belgium is 49.9 percent owned by
Saint-Gobain and its affiliates and holds stock in Franklin
Glass Corp. and Virginia Glass Products.

See footnote 20.

Pont-a-Mousson S.A. is 95.5 percent held by Compagnie de Saint
Gobain S.A. and 2.8 percent held by Saint Gobain.

See footnote 20.

See footnote 21.

Credit Lyonnais S.A. holds 27 percent of Marlis, a Paris-based
holding company, which controls (54 percent) Librarie Hachette
S.A., a major publishing group.

Helicoflex Co. is a Carbone Lorraine joint venture with
Cefilac, which is 100 percent owned by PUK.

The D-H Titanium Co. is an equally held joint venture between
Howmet Turbine Components Corp. (100 percent owned by PUK) and
Dow Chemical Co.

29.

Eastalco Aluminum Co. is a 50-50 joint venture between Howmet
Aluminum Corp. (50 percent) and Alumax—jointly owned by AMAX
(50 percent), Mitsui and Co. Ltd. (45 percent), and Nippon
Steel Corp. (5 percent).

30.

Guggenheim International Corp. is a wholly owned subsidiary of
Instel Corp.

31.

Howmet Aluminum Corp. is a subsidiary of Pechiney Ugine
Kuhlmann Corp.

32.

Howmet Turbine Components Corp. is a wholly owned subsidiary of
Pechiney Ugine Kuhlmann Corp.

33.

Intalco Aluminum Corp. is 50 percent owned by Howmet Aluminum
Corp. The remaining 50 percent is held by AMAX.

34.

Intalco Tolling Corp. is 50 percent owned by Howmet Aluminum
Corp. The remaining 50 percent is held by AMAX.

35.

Minatome S.A. is 50 percent owned by Pechiney Ugine Kuhlmann
and 50 percent owned by Compagnie FRancaise des Petroles,
itself 39.5 percent owned by the French Government (see
footnote 7).

36.

New England Aircraft Products Division is a wholly owned
subsidiary of Howmet Turbine Components Corp.

37.

Pechiney Trading Co. S.A. is a wholly owned subsidiary of
Instel Corp.

38.

PTC Partners is a wholly owned subsidiary of Instel Corp.

39.

Merieux Institute Inc. is 90 percent owned by Rhone-Poulenc and
10 percent owned by Dassault.

40.

California Computer Products Inc. is a joint venture with
Calcomp.

APPENDIX B
Direct Investment in the United States by Foreign Companies
Owned or Controlled BY Foreign Governments, 1974-81
1981/
SIC No./
Government of

U.S. Company

Canada

MacMillan Bloedel Inc.

China
(PRC)

New York Bank of China

France

Aerospatiale
Helicopter Corp.

State
AL

U.S.
Industry
26
Pulp/Paper

Foreign Owner/
% of Government
Ownership
British Columbia 1/
Resources Investment
Corp. (BCRIC)
(5%)
Bank of China

37
Aircraft

274.0

Type of
Transaction
PE

N. A.

1.0

(100%)

Banking
TX

Value of
Transaction
({Millions)

Societe Nationale
Industrielle Aerospatiale
(100%)

Bitucote Products Co.

29
Entreprise de 2/
Recherches et
Asphalt
Sealers Mfg. D'Activites
Petrolieres (ERAP)

N. A.

ACQ
(100%)

(100%)

DASD Corp.

Geoconsult Inc. 3/

Meridien Hotels
Oil Leases- 17 Tracts

Pathfinder Mining
Corp.
*

CA
CA

73
Business
Services

Credit Lyonnais

13
Oil/Gas
Field
Exploration
Services

ERAP

70
Hotels

Air France

13
Oil/Gas
Exploration
Development
10

Uranium
Mining

See end of list for key to type and status codes.

N. A.

(100%)

ACQ
(100%)

N.A.

CON

(100%)

ERAP

26.6

(100%)

French Atomic 4/
Energy Commission
(100%)

N.A.

ACQ
(14%)

ACQ
(100%)

Status of*
Transaction

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled BY Foreign Governments, 1974-81
1981/
Government of

U.S. Company

France

Texasgulf Inc. 5/
White Motor Co.

State
CT

SIC No./
U.S.
industry
10

Mining
OH

37
Trucks

Italy

Enoxy

Foreign Owner/
% of Government
Ownership
ERAP

Value of
Transaction
(SMillions)
2,500.0

(100%)

Regie Nationale des
Usines Renault
(92%)
Ente Nazionale
Idrocarburi (ENI)

75.0

Type of
Transaction
ACQ
(63.1%)
ACQ
(100%)

375.0

JV
(50%)

(100%)

Japan

Kuwait
co
o

Manufacturing Imports
Promotion Programs
(MIPRO)

AZL Resources Inc.Kuwait Petroleum
Corp.
Joint Venture

Pacific Resources Inc. - HI
KPC
Joint Venture

Libya

Santa Fe International
Corp.

People's Committee for
Libyan Students and
Arab Jamahariya

Coal Mining

Manufacturing Imports
Promotion Programs
(MIPRO)

73
(100%)
Business
Services
13
Kuwait Petroleum
Oil/Gas
Corp. (KPC)
(100%)
Exploration
& Development
29
Oil
Refining
13
Oil/Gas
Field
Services
99
Nonprofit
Organization

KPC

N. A.

50.0

JV
(50%)

185.0

JV
(50%)

(100%)

2,500.8

KPC
(100%)

ACQ
(100%)

N.A.
(100%)

Status of
Transaction
C

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1981/
SIC No./
U.S.

Government of

U.S. Company

State

Industry

Malaysia Page Airways Inc.

55
Aircraft
Dealers

Spain

Coal Mine Port Complex

Crystal Block Mine

United
Kingdom

Foreign Owner/
% of Government
Ownership
Permodolan 6/
Nasional Bhd
(50%)

57.0

Instituto de Industria

N.A.

(100%)

Coal Mining

Gibbs Oil Co.'s
Assets

Joslyn Manufacturing
& Supply Co.'s Assets

Kennecott Corp.

Coal12 Mining

The British Petroleum 7/
Co. Ltd. (BP)
(39%)
BP

33
Metals
Refiner

British Steel Corp.
Ltd. (100%)

Oil Gas LeaseContinental
Shelf Tract 112

(N.
Short USA
Ireland)

ACQ
(82.5%)
JV
(25%)
ACQ
(100%)

30.0

ACQ

(39%)
BP

ACQ
(100%)

938.1

Copper
Mining
Lazare Kaplan
International Inc.

Type of
Transaction

(46%)

Copper
Mining
Kennecott Corp.

318.0

N.A.

55
Gasoline
Stations

Value of
Transaction
($Millions)

ACQ
(100%)

2.8

(46%)
N.A.

EI
(11.6% to
19.6%)

BP
13
(39%)
Oil/Gas
Expl. & Dev.

0.2

ACQ
(13.3%)

50
Equip. &
Supplies
Distribution

N.A.

NOT

39
Diamond
Cutting

BP
(46%)

Short Brothers
Ltd.

Status of
Transaction
C

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1981/
SIC No./
U.S.

Government^

U.S. Company

State

United
Kingdom

Sohio Industrial
Products Co.

Standard Oil
Co. (Ohio)

Systems Control Inc.

West
Germany

Ashland Coal Inc.

Lockwood Greene
Engineering Inc.

Industry
32
Abrasive
Oil 29
Refining
73
Computer
Services
12
Coal Mining

Volkswagen of America
Inc.

Domtar Gypsum America
Inc.

Golden Cycle Corp.Texasgulf Inc.
Joint Venture

89
Engineering
Services
37
Automobiles

Foreign Owner/
% of Government
Ownership

Value of
Transaction
($Millions)

N.A.

Type of
~
Transaction
NS

(46%)
BP

106.0

(46%)
BP

10.0

ACQ
(100%)

102.5

ACQ
(25%)

ACQ
(70%)

(46%)
Saarbergwerke A.G. 8/
(98%)
Westdeutsche Landesbank
Girozentrale

N.A.

(66.6%)

Volkswagenwerke A.G. 9/
(VW)
(40%)

300.0

32
Gypsum
Wall board

Caisse de Depot et 10/
Placement du Quebec
(100%)

15.4

10
Gold Mining

Canada Development
Corp. (CDC)
(48.6%)

1980/
Canada

Status of
Transaction

1.5

JV
(21%)

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1980/
Government of

U.S. Company

Canada

Freeport Mineral Co.'s
Lead Properties

State
VA

SIC No./
U.S.
Industry

10
Lead Ores

Foreign Owner/
% of Government
Ownership

Value of
Transaction
($Millions)
N. A.

CDC
(48.6%)

China
(PRC)

Shu-Mei

58
Restaurants

Sichuan Provincial
Vegetables Food Service
Co. (100%)

France

American Motors Corp.

37
Automobiles

Renault
(92%)

Coal Mine

Greece

N. A.

167.5

ACQ
(50%)

Renault
(92%)

N. A.

JV
(49%)

Oil Leases

13
CFP
(35%)
Oil/Gas
Expl. & Dev.

0.6

CFP
32
(35%)
Glass Prods.
CFP
13
(35%)
Oil/Gas
Drilling
60
National Bank of
Banking
Greece

3.6

Atlantic Bank of
NY
New York's Edge Act Co.

EI
(4.7% to
46.4%)

N. A.

35
Industrial
Machinery

Vickers Petrpleum
Corp.

JV
(50%)

Cie Francaise des
Petroles (CFP)
(35%)

ACQ
(32.9%)

Coal Mining
Cybotech Inc.

Photon Power Inc.

Type of
Transaction

ACQ
(100%)

245.0

JV
(54.0%)
ACQ
(100%)

N. A.

(100%)

Italy

Agusta Aviation Inc.

37
Aircraft
Pts.

Construzioni
Aeronautiche
Agusta
(52%)

N. A.

Agusta Aviation Inc.

55
Aircraft
Dealers

Construzioni
Aeronautiche
Agusta
(52%)

N. A.

Status of
Transaction
P
P

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1980/
SIC No./
U.S.

Government of

U.S. Company

Italy

Commercial Trading
Center

Texaco Inc. - AGIP SpA

Calvary Church of the
Nazarene Building

Libya

State

Romania

Amrochem Inc.

United
Kingdom

Decision Data
Computer Corp.

Foremost McKesson
Bldg.

Industry

Foreign Owner/
% of Government
Ownership

Value of
Transaction
({Millions)

Type of
Transaction

N.A.

NOT

Trade Center Ente Nazionale
Idrocarburi (ENI)
13
(100%)
Oil/Gas
Expl. &
Dev.65
(100%)
Real Estate
ICE Danubiana
51
(100%)
Wholesale
Chemicals
35
National Enterprise
Board
Elec. Com(100%)
puter Equip.

N.A.

65
Real Estate

N.A.

Status of
Transaction
C

(100%)

Pension Funds - British
Air & British Rail et al

1.5

ACQ

P 11/

(100%)

N.A.

8.0

NS/JV

ACQ
(43%)
ACQ
(100%)

(100%)

Martin Exploration
Co.-Sohio
Joint Venture

13
BP
(43%)
Oil/Gas
Expl. & Dev.

Pompano Fashions
Shopping Center

65
Real Estate

National Coal Board
Pension Fund
(100%)

39.0

Rolls Royce Engineering GA

37
Aircraft
Engines &
Pts.

National Enterprise
Board
(100%)

Snyder Oil Co. Leases

13
BP
(46%)
Oil/Gas
Expl. & Dev.

Standard Oil Co.
(Ohio)

29
BP
(46%)
Oil Refining

N.A.

ACQ/JV

ACQ
(100%)

N.A.

10.6

NOF

ACQ
(75%)
PE

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1980/
SIC NO./
U.S.

Government of

U.S. Company

State

United
Kingdom

Oil/Gas Leases (14
Tracts)
Prudhoe Bay

Oil Leases

CO
Ln

Venezuela

Bariven Corp.

West
Germany

Bahlsen of America Inc. NC
Pertec Computer Corp.

Industry

Foreign Owner/
% of Government
Ownershi p

Value of
Transaction
(SMillions)

BP
13
(46%)
Oil/Gas
Expl. & Dev.
BP
13
(46%)
Oil/Gas
Expl. & Dev.

2.1

BP
13
(46%)
Oil/Gas
Expl. & Dev.

28.1

Type of
Transaction
ACQ

1.7

ACQ
(26%)

N.A.

20
Bahlsens Keksfabrik
Cookies Mfg. KGH

N.A.

36
Elec.

N.A.

ACQ

N.A.

1.5

NOF

128.0

NOF

Volkswagen of America
Inc.

Bayou Steel Corp.

50
Wholesale
Machines
34
Metal
Stampings

(40%)

37
Auto Mfr.
37
Automobiles

VW
(40%)
VW
(40%)
VW
(40%)
VW
(40%)

1979/
Austria

33
Billets &
Blooms

Voest-Alpine A.G. ]!/
(100%)

(100%)

Components
Royal Typewriter
Division

(100%)

13
Petroleos de
Venezuela
Oil/Gas
(100%)
Expl. & Dev.

Status of
Transaction

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1979/
Government of

U.S. Company

Canada

Domtar Inc.'s
Lime Plant

State
PA

SIC No./
U.S.
Industry

Foreign Owner/
% of Government
Ownership

32
Lime

Caisse de Depot et
Placement du Quebec

Value of
Transaction
($Mi11i ons)
13/

3.5

Type of
Transaction
NP

Status of
Transaction
C

(100%)

Texasgulf Inc.

(48.6%)

Texasgulf Inc.'s
Chemical Division

China
(PRC)

Sheraton Hotel Bldg.

Cuba

Cuban Diplomatic
Mission Building

Aerospatiale Helicopter Corp.

Real Estate

Elf-Aquitaine Inc.

37
Aircraft
ERAP
13
(100%)
Oil/Gas
Expl. & Dev.

Poso Creek Land

France

cr\

7.1

CDC

Mining

Proprietary Software
Systems Inc.

Chemicals

CDC
'(48.6%)

8.0

(100%)

Real Estate

N.A.
(100%)

Ridgecrest Energy Corp. WV

Societe Nationale
Industrielle Aerospatiale
(100%)

Iran

Baldwin Steel Co.

17.0

N.A.

73
Computer
Services

Cie Internationale de
Services en Informatique
(CISI)

5.0

CFP

2.9

Uranium
Mining
50
Steel Serv.
Centers

ACQ

ACQ
(100%)

ACQ

(60%)

N.A.
(35%)

Deutsche Babcock &
Wilcox AG
(33.9%)

ACQ
(100%

(100%)

(35%)
CFP

(100%)

ERAP
13
(100%)
Oil/Gas
Expl. & Dev.

Coal Mining
Uranium Leases

0.6

EI
(30.7% to
32.9%)

ACQ
(100%)

N.A.

ACQ
(100%)

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1979/
SIC No./
U.S.

Government of

U.S. Company

Italy

AGIP Petroleum Co. Inc. NY

Texaco Inc. - AGIP SpA
Joint Venture
Japan

State

Solvent Refined Coal J4/ WV
II Process Plant
(SRC II)

Industry

Foreign Owner/
% of Government
Ownership

Value of
Transaction
($Millions)

ENI
13
(100%)
Oil/Gas
Expl. & Dev.
ENI
13
(100%)
Oil/Gas
Expl. & Dev.
29
Coal Liquefaction

Govt, of Japan
(25%)
and

Type of
~Transaction

N.A.

700.0

JV
(50%)

Govt, of West Germany
(25%)
Kuwait

Colonial Steel Corp. 15/ NC

Tasco 16/

Libya

Libyan Diplomatic
Mission Building

Netherlands

KLM Royal Dutch
Airlines

Norway

Norsk Hydro Aluminum
Co.

34
Steel
Products

Kuwait Investment Co.
(KIC)
(50%)

0.6

33
Steel

KIC

N.A.

65
Real Estate
41
Airlines
33
Aluminum
Tubes

ACQ
(100%)

aCQ
(100%)

(50%)
(100%)
KLM Royal Dutch Airlines
(75.5%)
Norsk Hydro A/S
(50%)

13.0
N.A.
9.0

CONS
NOF
NP

Status of
Transaction

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1979/
SIC No./
U.S.

Government of U.S. Company

State

Saudi
Arabia

Petronal

United
Kingdom

Beaufort Sea Oil
Leases

Continental Illinois
Properties

Global Data Corp.

Inmos Ltd.

West
Germany

Industry

Foreign Owner/
% of Government
Ownership

Petromin
51
(100%)
Wholesale
Petroleum
Products
13
BP
(51%)
Oil/Gas
Expl. & Dev.
65
Real Estate

National Coal Board

73
Computer
Services
36
Silicon
Chips

National Enterprise
Board

Value of
Transaction
(SMillions)
N.A.

70.0

Type of
Transaction
NO

ACQ

N.A.

ACQ

N.A.

ACQ
(100%)

50.0

(100%)

Newco Exploration Co.

13
BP
Oil/Gas
(51%)
Expl. & Dev.

24.0

ACQ

Rolls Royce Aerospace
Inc.

37
Aircraft
Engines

30.0

(100%)

Standard Oil Co. (Ohio) OH

29
BP
Oil Refining
(51%)

Webb Resources Inc.

13
Oil Field
Services

Creslenn Oil Co.

Pertec Computer Corp.

35
Computers

N.A.

73.1

EI
(52.0% to
53.1%)
ACQ

(51%)

13
Veba AG
(43.8%)
Oil/Gas
Expl. & Dev.
VW

N.A.

ACQ
(100%)

120.0

(40%)

(100%)

National Enterprise
Board

(100%)

National Enterprise
Board

Status of
Transaction

ACQ
(100%)

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1979/
Government of

SIC No./
U.S.
U.S. Company

State

West
Volkswagen of America
Germany Inc.

Volkswagen of America
Inc.

Volkswagen Products
Corp.

Central Corp. Ltd.

Yugoslavia

Industry
50
Wholesale
Autos
37
Automobiles
35
Air Conditioning
Equipment
50
Wholesale
Furniture

Foreign Owner/
% of Government
Ownership
VW

Value of
Transaction
({Millions)

Type of
Transaction

Status of
Transaction

N.A.

NOT

N.A.

4.0

N.A.

NOT

N.A

NOF

N.A

1.0

ACQ

(40%)
VW
(40%)
VW
(40%)

(100%)

1978/
00

Algeria

Sonatrach

Austria
Canada

Chemray Fibers Inc.
Brazos Block Oil
Field Leases

NY
TX

Texasgulf Oil
& Gas Co.

Wordplex Co.

Chemicals
28

Italy

Classic Mining Corp.WY
AGIP SpA Mining Venture

Rayon Fibers

Societe Nationale
Sonatrach

(100%)
Osterreichische
Landerbank AG

CDC
13
(68.1%)
Oil/Gas
Expl. & Dev.
13
CDC
(68.1%)
Oil/Gas
Expl. & Dev.
35
Elec.
Computer
Equipment

CDC

ENI

Coal Mining

(10.2%)

N.A

35.0

ACQ/MER

(68.1%)

(100%)

5.0
(100%)

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1978/
SIC No./
U.S.

Government^

U.S. Company

Sweden

A!nor Instruments Co.

KABI Co.

United
Kingdom

State
It

38
Measuring
Instruments
51
Wholesale
Pharmaceuticals

Statsforetag AB

Cable & Wireless Ltd.

California Computer
Products-INSAC
Joint Venture

73
Computer
Software

National Enterprise
Board

Coal Property
(13,204 Acres)

Rolls Royce Aero
Engines Inc.

Saks Fifth Avenue
Center

Embassy Building

50
Wholesale
Automobiles
45
Pdt. Support
Facility
65
Shopping
Center
65
Real Estate

N.A.

ACQ

N.A.

Status of
Transaction

(100%)

73
Equipment
Leasing
Service

Coal Mining

Type of
Transaction

(100%)

Value of
Transaction
($Millions)

Studsvik Energiteknik
AB

Carterphone Communications Corp.

Rolls Royce Motors Inc. NJ

USSR

Industry

Foreign Owner/
% of Government
Ownership

14.8

N.A.

ACQ
(99%)

(100%)

15.8
(51%)

National Enterprise
Board

ACQ

(100%)

4.0

3.8

(100%)

Nationale Enterprise
Board

(100%)
British Airways Pension
Fund

15.0

ACQ
(100%)

(100%)

N.A.

CON

(100%)

1977/
Austria

A.T. Massey Co.'s 3
Subsidiaries

Coal Mining

Voest-Alpine AG
(100%)

33.3

ACQ
(100%)

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1977/
SIC No./
U.S.

Government of

U.S. Company

State

France

Hawley Coal Mining
Corp.

Industry
Coal12 Mining

Foreign Owner/
% of Government
Ownership

Value of
Transaction
({Millions)

Charbonnages de France
et al

5.0

ERAP

Industrial
Organic
Chemicals
Uranium Leases

Uranium
Mining
Uranium Leases

10
Uranium
Mining

India
Nigeria
Peru
United
Kingdom
USSR

State Bank of India
Embassy Residence
Embassy Residence
Xerox Building

CA
NY
DC
LA

French Atomic Energy
Commission
French Atomic Energy
Conroission

ACQ

ACQ
(100%)

N.A

ACQ
(100%)

(100%)

State Bank of India

65
Real Estate

(100%)

N.A
0.8

(100%)
British Airways Pension
Fund

NB
ACQ
(100%)

0.7

50
Wholesale
Farm

N.A.

(100%)

Real65 Estate
Belaurus Machinery
of USA Inc.

N.A.
(100%)

Banking

Real Estate

EI
(80% to
100%)

(100%)

M & T Chemicals Inc.

Type of
Transaction

ACQ
(100%)

) .8

ACQ
(100%)

(100%)

Traktoroeksport

N.A.

(100%)

Equipment
Venezuela
West
Germany

Petroleos de Venezuela
USA Corp.
American Motors' Metal
Stamping Plant

13
Crude
Petroleum
34
Metal
Forgings

Petroleos de Venezuela
SA

(100%)
VW

N.A.
(40%)

ACQ
(100%)

Status of
Transaction

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1976/
SIC No./
U.S.

Government of

U.S. Company

Canada

E. Helman (Division of
U.S. Industries Inc.)

State
OH

Industry
28

Foreign Owner/
% of Government
Ownership

Value of
Transaction
($Millions)
N.A.

CDC
(48.6%)

50.0

CDC

Mining
VA

East
Germany

Windsor Park Towers

France

Generic Pharmaceuticals & Western
Research Labs Inc.

Canal Place 18/

Iran
Italy

Firenze Estate

(48.6%)
1.6

65
Real Estate
28

Pharmaceuticals
65
Real Estate

(100%)

ERAP

Kuwait

Atlanta Center Ltd.

250.0

(100%)

Kuwait Investment Co.
(KIC)

West
Germany

Volkswagen Manufacturing Corp.
of America

65
Real Estate

KIC

37
Motor
Vehicles

51
Wholesale
Petroleum

Elf-ERAP

ACQ
ACQ

Pruet & Hughes Co.'s
Oil & Gas Properties

Towne Paulsen & Co.

Pharmaceuticals

10.0

ACQ

EI
(50% to
100%)

22.0

ACQ

(100%)

(100%)
28.0

(40%)

NS
(100%)

25.0

(100%)

JV
(50%)

1975/
France

(100%)

Columbia Plaza Office
Building

EI 17/
(20.6% to
30.7%)

(100%)

4.3

70
Hotels

N.A.

(100%)

Private
Households

ACQ

(100%)

Pahlavi Foundation

Status of
Transaction

(100%)

Plastics
Materials
Texasgulf Inc.

Type of
Transaction

ACQ
(100%)

3.2

ACQ
(100%)

C
C

APPENDIX B Cont'd.
Direct Investment in the United States by Foreign Companies
Owned or Controlled by Foreign Governments, 1974-81
1975/
SIC No./
U.S.

Government of U.S. Company
France

State

Industry

Foreign Owner/
% of Government
Ownership

Value of
Transaction
({Millions)

Elf-ERAP

56.4

Westrans Industries
Inc.

Iran

De Pinna Building

65
Real Estate

Pahlevi Foundation

Italy

Ronson Corp.

37
Flame
Products

Liquifin SA
(40%)

13.1

Kuwait

Atlanta Hilton

70
Hotels

KIC

10.0

13
Oil/Gas
Expl. & Dev.

Type of
Transaction
ACQ

Status of
Transaction
C

(100%)

1974/

Kiawah Island

West
Appalachian Resources
Germany Co.
Rotamist Corp.

65
Real Estate
Coal12

Mining
35
General
Industrial
Machinery

8.6

(100%)

17.4

KIC
(100%)

Veba AG
(40%)
Veba AG
(40%)

26.5

U.S. Department of Commerce
Office of Trade and Investment Analysis
March 1982

ACQ
(50%)
ACQ

ACQ

(100%)

N.A.

NOT - New Outlet
NP - New Plant
NS - New Subsidiary
PE - Plant Expansion
C - Complete
P - Pending

Industries listed by Standard Industrial Classification numbers.
Source:

ACQ
(36.4%)

(100%)

KEY: - Transaction Type/Status
ACQ - Acquisition
CON - Construction
EI - Equity Increase
JV - Joint Venture
NB - New Branch
NOF - New Office

ACQ
(100%)

ACQ

(100%)

Footnotes to Appendix B
1.

The Government of British Columbia has about a 5 percent
interest in British Columbia Resources Corp.
(BCRIC) which
holds a 13.4 percent interest in MacMillan Bloedel Ltd.

ERAP (formerly Elf-ERAP) stand for Entreprise de Recherches et
D'Activites Petrolieres. It is owned 100 percent by the state
and presently holds 67 percent of the shares of SNEA, Societe
Nationale Elf-Aquitaine S.A., which is the owner of record for
all ERAP transactions in this table.

Geoconsult Inc. will be 60 percent owned by Elf Aquitaine
(SNEA) and 40 percent by Geoconsult S.A.

Ownership for all French Atomic Energy Commission transactions
are through Compagnie Generale des Matieres Nucleaires (COGEMA)
which has operated as a separate subsidiary of the French
Atomic Energy Commission since January 1976.

The total tender offer for 100 percent of Texasgulf Inc. was
worth about $4.0 billion. Since the remaining 36.9 percent of
Texasgulf shares will be acquired (scheduled for 1982) from
Canada Development Corp., a Canadian investment company
controlled by the Government of Canada, this investment is
recorded as a 1981 acquisition of 63.1 percent of.the company.
When the remaining 36.9 percent of Texagulf was acquired by Elf
Aquitaine in early 1982, the transaction was recorded as a
transfer of assets between foreign owners.

Permodolan Nasional Bhd of Malaysia owns 50 percent of Guthrie
Corp. Ltd. of the United Kingdom, which owns 82.5 percent of
Page Airways Inc.

The Government of the United Kingdom held 25 percent of the
British Petroleum Co. Ltd. (BP)directly and 21 percent of the
company indirectly through the Bank of England until mid-year
1981. At that time the Government's share of BP was reduced to
39 percent. Transactions in 1981 that show government
ownership at 46 percent were completed prior to the reduction
of government ownership. The British Petroleum Co. Ltd. owns
53 percent of Standard Oil Co. (Ohio).

Saarbergwerke A.G. is 74 percent held by the Government of the
Federal Republic of Germany and 24 percent held by the West
German State of Saarland.

The* Government of the Federal Republic of Germany and the West
German State of Lower Saxony hold a 40 percent interest in
Volkswagenwerke A.G.

10.

The Government of Quebec is the beneficial owner of Caisse de
Depot et Placement du Quebec and Societe Generale de
Financement du Quebec, which hold a 42 percent interest in
Domtar Ltd. of Montreal.

11.

The transaction was cancelled in 1981.

12.

Voest-Alpine is a joint venture partner in Bayou Steel Corp.,
a U.S. company formed in 1975 by a group of overseas investors
headed by Zaki Honen, a Paris-based steel trader. The
percentage of Voest-Alpine's holdings in Bayou Steel Corp. is
unknown.

13.

See footnote 10. In 1979 Caisse de Depot had a 23 percent
interest in Domtar Ltd.

14.

This transaction, cancelled in June 1981, is listed only for
information purposes.
It has not been included in the data
analysis.

15.

Kuwait Investment Co. (KIC) owns 30 percent of Korf Industries
Und Handel GmbH & Co. K.G. of West Germany which is the owner of
record and which is 70 percent held by Willy Korf, a West
German citizen.

16.

See footnote 15.

17.

Canada Development Corp. (CDC) made its original investment in
Texasgulf Inc. in 1973, prior to the establishment of the ITA
foreign direct investment monitoring program.

18.

In July 1979 the joint venture partner purchased the Iranian
interest for $50 million from the Khomeini government. While
the Iranian Government reportedly retains an interest in the
commercial and residential complex through a $1.5 million loan,
its status is no longer that of direct investor.

APPENDIX C
Major Foreign Government-owned Corporate
Investors in the United States, 1974-81

The following provides a brief background profile of major foreign
government-owned corporate investors in the United States from 1974
through 1981.
Canada Development Corp. (CDC), established in 1971 by Canada's
Federal Government, is a hybrid holding corporation for the
Government and about 50,000 private Canadian investors who own the
company's 35 million common shares outstanding. Originally
conceived as a means of halting foreign takeovers of Canadian
industry, CDC's objective was to develop and expand Canadian
enterprises. The company gradually sold stock to broaden public
ownership, and the Government's ownership fell to the present 48.6
percent level. By law it can decline to 10 percent, but no other
single shareholder may have more than 3 percent. The second largest
shareholder is the Toronto Dominion Bank with a 2.9 percent
holding. Foreigners may not own shares. In 1982 the Canadian
Government announced it would sell its remaining interest in Canada
Development Corp. when market conditions improved because the
company had fulfilled its original goal of enhancing Canadian
ownership in key economic sectors.
Thanks to the fact that CDC's investments are not restricted to
Canadian markets, the firm has more than doubled its assets in the
first decade of its existence. CDC's holdings are in three major
divisions: mining, which produces about 50 percent of its total
earnings, while oil and gas, and petrochemicals each accounts for
about 24 percent of the earnings. The remaining 2 percent comes
from miscellaneous holdings in industries such as fisheries and
office machines.
Compagnie Francaise des Petroles (CFP) was established in March 1924
with a life of 99 years as a French corporation. The company was
founded by a syndicate of industrialists and financiers on the
initiative of the French Government.
In May 1924 CFP entered into an agreement with the Government under
which it was authorized to acquire the Government's 23.8 percent
interest in the capital of Iraq Petroleum Co. Ltd., and a profit
sharing arrangement was worked out. A subsequent 1930 agreement
called for the French Government to take a 25 percent equity
interest (later increased to 35 percent) in CFP.
CFP and its subsidiaries operate on a worldwide basis as the Total
Group in the exploration for and production and marketing of crude
oil and natural gas, and the manufacture and marketing of refined

petroleum products, petrochemicals, and plastics. The Total Group
also has subsidiaries active in the finance and trade sector and in
nuclear energy and solar energy. Total subsidiaries operating in
the United States include Total Petroleum (North America) Ltd. (50.3
percent),-' which is based in Canada in oil exploration and
development; Minatome Corp. U.S. (50 percent), mining uranium ore;
and Photon Power Inc. (54 percent), producer of photovoltaic cells.
Entreprise de Recherches et D'Activites Petrolieres (ERAP), wholly
owned by the French Government, is the parent company of Societe
Nationale Elf Aquitaine (SNEA) or the Aquitaine Group, which is
France's second largest oil company and the largest French producer
of natural gas. ERAP currently holds 67 percent of Elf's stock.
Under French law ERAP is required to maintain its shareholding in
the company at a level in above 50 percent.
Elf Aquitaine was established in July 1976 when the French
Government merged its wholly owned oil company Elf-ERAP with the
semiprivate gas, nickel, and chemical concern Societe Nationale des
Petroles d'Aquitaine (SNPA), 54 percent owned by Elf-ERAP. Later
that year, SNPA was reorganized and ERAP increased its holdings to
70 percent from 54 percent, and the company name was changed to its
present form. After a second reorganization in 1980, ERAP reduced
its holdings in Elf to 67 percent.
Today, Elf produces about a quarter of France's oil and gas needs
from gas fields in Southwest Franch and oil wells in Gabon, Nigeria,
the North Sea, and the United States. In addition, the company is
engaged in the production, purchase, transport and sale of crude oil
and natural gas worldwide, and of derivative products, including
petrochemicals and sulphur products. The Aquitaine Group, a major
factor in the international oil industry, also has interests in fuel
and non-fuel minerals and has diversified into other industrial
activities—pharmaceuticals, cosmetics, veterinary products, and
building materials.
The Aquitaine Group is active in the United States primarily through
Elf Acquitaine Inc. (100 percent) in oil and gas exploration and
development. Aquitaine Pennsylvania Inc. (100 percent), a coal
mining firm, and M & T Chemicals Inc. (100 percent), a specialty
chemicals producer, are also U.S. subsidiaries of Elf.

Percentage of subsidiary and affiliate ownership is shown in
parentheses.

Regie Nationale des Usines Renault (Renault), was established in
France by ordinance in 1945. The company is currently 92 percent
owned by the French Government.
Renault is the largest manufacturer and exporter of French motor
vehicles. It has fabrication and assembly plants in 160 countries
and territories. Besides manufacturing and assembling private
commercial vehicles, Renault manufactures directly or through its
subsidiaries agricultural equipment, marine and industrial engines,
machine tools, roller bearings, and specialty steel.
Renault is active in the U.S. automotive industry through Renault
Inc. (100 Percent), White Motor Co. (100 percent), and American
Motors Corp. (AMC) (46.4 percent). In 1979, AMC and Renault signed
a long-term agreement under which the Michigan-based company will
begin manufacturing Renault-designed cars beginning in 1982 at AMC's
Kenosha, Wisconsin facilities.
Ente Nazionale Idrocarburi (ENI), based in Rome, was created in 1953
by an act of the Italian parliament as the national authority for
the development of oil and natural gas resources of Italy and to
operate in all sectors of the petroleum industry on an international
basis in the chemical industry and in nuclear energy.
The ENI Group operates approximately 250 subsidiaries and affiliates
through four major companies: AGIP S.p.A. (100 percent) engages in
oil exploration, production, and marketing; AGIP NUCLEARE (100
percent) handles government activity in the nuclear industry; ANIC
S.p.A. (73 percent) is active in refining and petrochemical
operations, and SNAM S.p.A. (100 percent) is engaged in
transportation of oil products and natural gas by pipelines and
tankers.
ENI is active in the United States in oil and gas exploration
primarily through AGIP S.p.A.
The British Petroleum Co. Ltd. (BP) was established in the United
Kingdom in April 1909 as Anglo-Persian Oil Co. Ltd. to develop oil
resources in Persia. The company became Anglo-Iranian Oil Co. Ltd.
in 1935 and adopted its present name in 1954. One of the seven
sister oil companies, BP ranked as the sixth largest industrial
company in the world and the fourth largest oil company (behind
Exxon, the Royal Dutch/Shell group and Mobil) on Fortune's 1980 list
of the world's 50 largest industrial companies. The British
Government held 46 percent of BP until June 1981 at which time the
Government reduced its holdings to 39 percent.
BP, operating in 67 countries, is engaged in all phases of the oil
industry and has important chemical interests mainly in the United
Kingdom and Europe. The company also has substantial interests in
minerals and major investments in coal and copper.

BP entered the U.S. market in 1968 through the acquisition of
certain marketing and refining assets formerly held by Sinclair Oil
and Atlantic Richfield. In 1970 these U.S. interests were merged
into Standard Oil Co. (Ohio) (Sohio) in which BP currently holds a
53 percent interest. BP 1 s interests in the United States consist
primarily of its majority holding in Sohio and its separate interest
in the trans-Alaska pipeline. Approximately 32 percent of the BP
Group's properties and operating assets (in balance sheet terms) are
located in the United States.
In addition to the Sohio presence, BP has several other U.S.
subsidiaries and affiliates, among them: Amselco Natural Resources
(99 percent), BP Alaska Exploration (100 percent), BP Chemicals
Americas (100 percent), BP North America (100 percent), BP North
America Finance (100 percent), BP North America Trading (100
percent), BP Pipelines (100 percent), and Sohio/BP Trans Alaska
Pipeline Capital (68 percent).
The National Enterprise Board (NEB), formed in 1974, is Britain's
state holding company for the manufacturing sector. In the United
States, the NEB is active through its holdings in Rolls-Royce Ltd.
(100 percent), manufacturer of automobiles and aircraft engines;
Decision Data Computer Corp. (43 percent), and Global Data Corp.
(100 percent) among others.
Volkswagenwerke AG (VW), headquartered in Wolfsburg, West Germany,
was established by the German Government in the 1930s. The company,
operated under a trusteeship from the end of 1945 to 1961 when it
became a publicly owned corporation through the sale of 60 percent
of its common stock. The remaining 40 percent of VW is equally held
by the Government of West Germany and the State of Lower Saxony in
which Wolfsburg is located. Dividends paid on these shares go to
the Volkswagenwerke Foundation, established to further science and
technology through the provision of grants for education and
research.
Volkswagen has manufacturing, assembling, and sales subsidiaries in
about 12 countries. They produce about 1.3 million vehicles per
year.
Volkswagen of America Inc., the German firm's U.S. subsidiary, was
established in October 1955. Its principal office is in Warren,
Michigan. Originally established as the official importer of VW
vehicles into the United States, the company has also been the
official importer of Porsche and Audi automobiles since the
establishment of its Porsche Audi-Division in 1969.
In addition to its executive offices in Michigan, Volkswagen of
America also has manufacturing plants in Pennsylvania and West
Virginia, sales and marketing offices in New Jersey and regional
offices in California, Colorado, Florida, Georgia, Hawaii, Illinois,
Maryland, Massachusetts, Ohio, Pennsylvania, and Texas.

100

APPENDIX D
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982
Government of

U.S. Company

State

Canada

Savin Corp.

France

Aerospatiale Inc.

Copperweld Corp. '
Copperweld Corp. 2 /
Guardian Oil Corp. 3 /

SIC No./
U.S. Industry

Foreign Owner/%
of Government Ownership

50
Wholesale
Office Machines

Canada Development Corp. (CDC)
(49%)

55
Retail
Aircraft Parts

Societe Nationale
Industrielle Aeorspatiale

33 Tubing
Steel

Banque Rothschild

33
Steel

Banque Rothschild

13
Oil/Gas'
Exploration &
Development

Banque Rothschild

TX
OH
TX

Value of
Transaction
75.0

Type of
Transaction

Status of
Transaction

ACQ
(57.2%)

18.5

21.1

(100%)

EI
(From 13.3%
to 30.6%)

APPENDIX D Cont'd.
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982
Government of

U.S. Company

France

Inspiration Coal
Inc. 4/

State
TN

SIC No./
U.S. Industry

Foreign Owner/%
of Government Ownership

50
Wholesale
Coal

Compagnie Francaise des Petroles
(35%)
Charbonnages de France

Value of
Transaction

Type of
Transaction

T0A
(50%)

NOT

ACQ

Status of
Transaction

(100%)

Worth American
Tradimpex Corp. USA

Pathfinder Mines
Corp. 5/

Pathfinder Mines
Corp. 6/

Refinemet International Co.

51
Wholesale
Bicycle Parts

Compagnie Financiere de
Paris et des Pays Bas (Paribas)

10
Uranium Mining

French Atomic Energy Commission

10
Uranium Mining

France Atomic Energy Commission

33
Metals Refining

Compagnie Financiere
de Paris et des Pays

(100%)

(80%)

EI
(From 65.5%
to 65.7%)

(100%)

Santa Barbara
Oil/Gas Leases (6)

13
Oil/Gas
Exploration &
Development

ERAP
(100%)

2.7

Acq
(33.3%)

APPENDIX D Cont'd.
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982

o
to

Government of

U.S. Company

France

Teleco Oilfield
Services 7/

India
Indonesi a

Iran

Ireland
Italy

State
CT

Teleco Oilfield
Services 8/

White Motor
Credit Corp.

State Bank
of India (Calif.)

Investment
Coordinating Board

Foreign Owner/%
of Government Ownership

35
Drilling
Equipment

Entreprise de Recherches et
D'Activites Petrolieres (ERAP)

35
Drilling
Equipment

ERAP

Finance
60

Banking

Kurt Orban
Inc.

Ambassador East 10/

Litco Bancorporation
of New York Inc.

SIC No./
U.S. Industry

Value of
Transaction

Type of
Transaction

4.8

NO
(50%)

2.0

PE
(50%)

Status of
Transaction

(100%)

(100%)
Renault
(92%)

33.0

ACQ
(100%)

Reserve Bank of India

(100%)

73
Business
Services

Investment Coordinating
Board (BKPM)

50
Wholesale
Metals

Deutsche Babcock AG 9/
(25%)

70
Hotels

Aer Lingus

67
Bank Holding
Company

Banca Conmerciale Italiana

(100%)

ACQ
(80%)

ACQ

P 11/

(100%)

20.0

(100%)

APPENDIX D Cont'd.
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982
Government of
Japan

Kuwait

i—1
o

U.S. Company

State

Tosco Corp.-Japan
National Oil Corp.
Joint Venture

Corporate Property

Netherlands

Scott's Branch 12/
Coal Mine

Spain

Ashland Coal Inc. 13/

KY
KY

SIC No./
U.S. Industry

Foreign Owner/%
of Government Ownership

Value of
Transaction

13
Oil/Gas
Explorations &
Development

Japan National Oil Corp.

ACQ

Coal Mining
United
Kingdom

Status of
Transaction

(100%)

67
Real Estate
Investment Trust
12
Coal Mining

Type of
Transaction

(12%)

Dutch State Mines et al.

ACQ
(59%)

44.3

EI
(From 25%
to 35%)

ACQ
(53%)

(100%)

Instituto de Industria
(100%)

Alaska National 14/
Petroleum Reserve
Oil/Gas Leases

13
Oil/Gas
Exploration &
Development

The British Petroleum Co. Ltd. (BP)
(39%)

1.9

American Quasar Co.Conquest Exploration
Co.Sohio Joint Venture

Unknown

13
Oil/Gas
Exploration &
Development

The British Petroleum Co. Ltd. (BP)
(39%)

53.0

JV
(26.5%)

APPENDIX D Cont'd.
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982
Government of
United
Kingdom

U.S. Company
Amoco Tower 15/
Anadromus Inc. 16/

State
CO
OR

Beaufort Sea
Oil/Gas Leases 17/

Beaufort Sea
Oil/Gas Leases 18/

Clevetrust

Copper Exploration
Lease 19/

First Union Real
Estate Equity &
Mortgage Investments

SIC No./
U.S. Industry

Foreign Owner/%
of Government Ownership

65
Real Estate

09
Fish Hatchery

13
Oil/Gas
Exploration &
Development
13
Oil/Gas
Exploration &
Development
67
Real Estate
Investment Trust
10

Copper
Mining
67
Realty Investment
Trust

Value of
Transaction

Type of
Transaction

50.9

ACQ
(50%)

(39%)
NA
(39%)
BP

11.9

ACQ
(76.5%)

1.7

ACQ
(34.3%)

11.9

EI
(To 30%)

(39%)

Merchant Navy Officers' Pension Fund
(100%)
The British Petroleum Co. Ltd. (BP)
(39%)
Merchant Navy Officers' Pension Fund
(100%)

ACQ
(100%)

(39%)

Status of
Transaction

NA
46.0

ACQ
(53%)
EI
(From 5.5%
to 31.0%)

APPENDIX D Cont'd.
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982
Government of
United
Kingdom

U.S. Company

State

Industrial BuildingMoonachie 20/

Kitt Energy Corp. 21/

New Plan Realty

Ocean Data Systems 22/ MD
o
a\

Office BuildingMontvale

Office BuildingPars ippany

Office BuildingPi scataway

Oil Leases

SIC NO./
U.S. Industry

Foreign Owner/%
of Government Ownership

65
Real Estate

National Coal Board

Coal Mining
67
Real Investment
Trust
73
Data Processing
Services
65
Real Estate
65
Real Estate

13
Oil/Gas
Exploration &
Development

14.6

ACQ
(21.5%)

7.5

National Coal Board
(100%)

National Coal Board

ACQ

(100%)

ACQ

(100%)

7.4
39%)

ACQ
(100%)

(100%)

ACQ
(60%)

(100%)

National Coal Board

ACQ
(53%)

(100%)

British Airways

ACQ

Status of
Transaction

55.7
(39%)

Merchant Navy Officers' Pension Fund

Type of
Transaction
(100%)

(100%)

65
Real Estate

Value of
Transaction

ACQ
(37.1%)

APPENDIX D Cont'd.
Direct Investment in the United States by
Foreign Companies Owned or Controlled by Foreign Governments
January-June 1982
Government of

U.S. Company

State

United
Kingdom

Pan American
Properties

West
Germany

Pfaudler Processing
Equipment Business

Rampak

Volkswagen of
America

Westmoreland Coal Co.

SIC No./
U.S. Industry

Foreign Owner/%
of Government Ownership

67
Real Estate
Investment Trust

National Coal Board

35
Processing
Equipment

67
Real Estate
Investment Trust

National Coal Board

34
Metal Stampings

Volkswagenwerke AG
(40%)

Coal Mining

ACQ
CON
EI
JV
NB
NOF

Value of
Transaction

U.S. Department of Commerce
Office of Trade and Investment Analysis
July 1982

NS
(100%)

100%)

43.0
(39%)
NA

(10%)

ACQ
(53%)
EI
(5.5% to
10.0%)

Veba AG
(40%)
KEY: - Transaction Type/Status
NOT - New Outlet
Acquisition
NP - New Plant
Construction
Equity Increase
NS - New Subsidiary
PE - Plant Expansion
Joint Venture
New Branch
C - Complete
P - Pending
New Office

Industries listed by Standard Industrial Classification numbers.
Source:

Type of
Transaction

125.0
32.5

PE
ACQ
(15%)

status of
Transaction

Footnotes to Appendix D
1.

Banque Rothschild holds a 20 percent interest in Imetal, a
Paris-based metals holding company which owns 66 percent of
Copperweld Corp. The French Government also has equity in
Imetal through two other recently nationalized firms: Banque
Worms with 1.1 percent of Imetal and Compagnie Financiere de
Suez with 5.8 percent. Total French Government ownership in
Imetal through these companies is 26.9 percent.

See footnote 1.

Ownership is held through Copperweld Corp.

This transaction is a transfer of U.S. assets between foreign
parent firms. As such, it is not included in the transaction
data but is included here for purposes of information only.
Inspiration Coal Inc. is owned equally by Hudson Bay Mining &
Smelting Co. Ltd., Toronto, Canada, and Minerals and Resources
Corp. Ltd. (Minorco), Hamilton, Bermuda. Both companies are
units of Anglo-American Corp. of South Africa. Ltd.

Ownership is held through Compagnie Generale des Matieres
Nucleaires (COGEMA), which has operated as a separatfe
subsidiary of the French Atomic Energy Commission since January
1976.

See footnote 5.

Ownership is held through Societe Nationale Elf-Aquitaine S.A.,
which is 67 percent held by ERAP. Teleco Oilfield Services is
an equal joint venture with Raymond Industries, Middletown,
Connecticut.

See footnote 7.

The Government of Iran acquired 25 percent of Deutsche Babcock
in 1975.

10.

Ownership is held through Dunfey Hotel Corp., Hampton, New
Hampshire.

11.

Transaction was completed in July 1982.

12.

The equity in Scott's Branch Coal Mine is owned by Dutch State
Mines (DSM), the Minerals Division of Hoogovens NV, and the
Association of Dutch Electricity Producers (SEP).

13.

In 1981 Saarbergwerke A.G., which is 74 percent held by the
Government of the Federal Republic of Germany and 24 percent
held by the West German State of Saarland, acquired 25 percent
of Ashland Coal Inc. for $102.5 million.

108

14.

Ownership is held through Standard Oil Co. (Ohio) (Sohio) which
is 53 percent owned by the British Petroleum Co. Ltd.

15.

Ownership is held through the British Petroleum Pension Trust.
This acquisition was a joint venture of Aetna Life and Casualty
Co. and the British Petroleum Pension Trust.

16.

Ownership is held through BP Nutrition, a food production
subsidiary of BP.

17.

Ownership is through Sohio and BP Alaska Exploration Inc.

18.

See footnote 17.
bidding group.

19.

See footnote 14. Kennecott Corp., a subsidiary of Sohio, will
develop the mine.

20.

Ownership is held through the National Coal Board Pension Fund,
one of the largest pension funds in Europe, as are all National
Coal Board transactions in this table.

21.

See footnote 14.

22.

Ownership is held through International Aeradio Ltd., which is
98 percent owned by British Airways.

Exxon also had a 50 percent interest in this

109

Full text of Direct Investment in the United States by Foreign Government-Owned Companies 1974-1981

FRASER