Section 503 required the President to report to the Congress within twelve months of enactment of the Act on the feasibility of expanding the exchange of persons program, ante, into an international cooperative effort to include a "scientific peace corps designed to encourage large numbers of technically trained volunteers to live and work in developing countries for varying periods of time." The corps would engage in projects to aid such countries to meet energy needs by searching for and utilizing indigenous energy resources and applying suitable technology, including renewable and "unconventional" energy technologies. The report was to include discussion of other mechanisms for a coordinated international effort to "develop, demonstrate, and encourage" utilization of such technologies in developing countries. U.N. Conference on Technical Cooperation The United Nations Conference on Technical Cooperation among Developing Countries was held in Buenos Aires from August 30 to September 12, 1978. The national report submitted by the United States prior to the Conference, in response to United Nations General Assembly Resolution 31/179, dated December 21, 1976, described numerous examples of United States-supported cooperation, that, largely in the area of thirdcountry training, had preceded by many years United Nations involvement in similar activities. The report also summarized steps that the United States had taken in more recent times to foster other aspects of technical cooperation, particularly in regard to transfer of technology and in enabling the United States Agency for International Development (AID) to finance procurement of goods and services from developing countries. Excerpts from the United States national report follow: 4. The United States has for many years made available both funds and facilities for nationals of one developing country to be trained in another developing country (see section B below). This opportunity remains at the disposal of countries with which the U.S. has technical co-operation agreements. In addition, the U.S. Government, beginning in 1969, has liberalized its regulations to permit procurement of equipment and commodities financed by AID loans in most developing countries. Since 1977, this provision has also been extended to include grants to the Least Developed Countries. 6. The United States has for many years coordinated its assistance policies and programs with other developed countries through the Development Assistance Committee (DAC) of the OECD. In addition, the U.S. is a member of most assistance consortia and consulta tive groups. At the operational level AID co-ordinates with the UN B. Experience of Supporting Activities of Technical Cooperation 7. Training: As indicated above, the principal contribution of the United States to TCDC has been in the area of training. It lay in the recognition that some types of training could be carried out more effectively in another developing country rather than in the United States. Hence, a "Third Country Training Program" was launched by AID's predecessor agencies on a small scale as early as the mid40's in Latin America ... From Latin America the program spread to Europe during the Marshall Plan period, and to the developing world since the 1950's. It is estimated that since 1958, the U.S. has financed Third Country Training for more than 36,000 participants from over one hundred countries approximately one quarter of the total U.S.-supported training effort. In recent years Third Country Training, along with U.S.-supported training generally, declined somewhat-especially in Asia and Latin America-as other countries' training capacities (both developing and developed) increased. 8. Third Country Training is triangular in nature, involving the trainee's home country, the host country where the training takes place and the United States acting as the intermediary bringing trainers and trainees together. All three parties usually share part of the cost, though there are no firm rules governing these arrangements. The chief contribution of AID, other than financial, is to provide the essential administrative structure. Through its missions in developing countries, appropriate training facilities are found and arrangements for training are negotiated. Often the training facilities involved were originally developed or helped by U.S. assistance to the country of training. 9. When the program began, the basic purpose was to provide for training which could not be obtained as effectively in the United States. Over the years, however, the concept has been broadened as developing countries gained experience and acquired new institutional facilities. The United States sees many advantages to Third Country Training, all of which also support the goals of TCDC: -the technical assistance exchange fosters an expanding network of technical and cultural ties between the countries sharing this experience; -cooperation in development engenders a community of interest and purpose among the participating countries and peoples; -if the exchanges are between countries of a particular region, as they most often are, the pooling of knowledge and the values of a joint approach to common problems are fostered; -attitudinal barriers may crumble if the training is successful, thus allowing broader forms of cooperation to develop; -countries are encouraged to share the burdens as well as the fruits of development; -culture shock may be avoided or at least eased, especially if the cultural milieu is similar; -participants may avoid exposure to overly sophisticated technology which is not relevant in their country. 10. The main focus of Third Country Training is in Agriculture, Education, Health and Family Planning, and Public Administration ... The reduction in U.S. training activities and the termination of USAID Missions in a number of major developing countries... has had the effect of reducing at least temporarily the opportunities for U.S.-supported Third Country Training. However, the over-all effect on TCDC may not be negative, for in many instances leading developing countries have themselves organized training activities for other countries, while new partners... have emerged for U.S.-supported Third Country Training. 11. Examples of Third Country Training range over the full spectrum of U.S. technical programs, from training at regional or international institutions . . . to individual training programs arranged and financed by individual U.S. AID Missions. 13. Transfer of Technology: The United States believes that TCDC can play an important role in promoting the development and transfer of technology within the developing world. This can be accomplished in many ways, one of which is the utilization of, and integration into, existing information systems of technological achievements in the developing world. The U.S. Government, through its Department of Commerce, operates the National Technical Information Service (NTIS), which provides easy access by U.S. and foreign participating institutions to a vast fund of U.S. research. The NTIS collection alone contains over 500,000 technical documents, and access to 160 other data bases in the U.S. is available through the NTIS. Recognizing that the technical process through which developing countries advance may often match the particular needs of other developing countries, NTIS has initiated a program to add technical documents produced by technology research institutes in developing countries to its data bank. Thus, by becoming part of the NTIS network, developing countries can exchange and make use not only of industrial country technology, but also of technological innovation within the developing world. The NTIS program publishes a monthly bulletin called AMTID (Application of Modern Technology to International Development), which lists technical documents of particular relevance to development problems. NTIS now has programs in 15 developing countries. . . . The programs have been developed jointly by the respective governments and AID, and are currently being expanded to include additional developing countries. AID and NTIS are also alert for opportunities to assist in establishing regional networks for technological information exchange in the developing world. 14. Procurement of Goods and Services: Beginning in 1969, U.S. Government regulations on procurement of goods and commodityrelated services for AID-funded activities were liberalized to allow increased procurement from developing countries. The process started with a Presidential announcement in October 1969, authorizing the use of development assistance funds in Latin American countries for procurement from Latin America as a whole. A year later, this provision was broadened to include all AID development loans and most developing countries of the world.* In a further move to liberalize the regulations, all U.S. grant assistance to the Least Developed Countries (LLDC's) was opened up to procurement from developing countries in 1977. 15. The impact of these changes in U.S. regulations has not been dramatic, but this is as much due to concrete questions of supply and quality, as it is due to attitudinal problems in the countries concerned. Nevertheless, some procurement through the AID program is taking place in developing countries.... On the multilateral scene, of course, the very substantial U.S. contributions to the World Bank, the regional development banks, UNDP and other multilateral institutions are all open to procurement from developing countries. With increased policy support for TCDC at government levels, it may be expected that procurement of goods and services from developing countries through bilateral and multilateral assistance channels will increase. *Security Supporting Assistance loans are not covered by this regulation and remain tied to U.S. procurement sources. U.N. Doc. A/CONF.79/NR/1/Add. 2, May 3, 1978. U.N. Conference on Science and Technology for Development In section 103 of the Foreign Relations Authorization Act, Fiscal Year 1979, Public Law 95-426, approved October 7, 1978 (92 Stat. 963, 964), the Congress reiterated its support of the United Nations Conference on Science and Technology for Development in a statement of findings and a statement of the sense of the Congress, which read: UNITED NATIONS CONFERENCE ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT Sec. 103. (a) The Congress find that— (1) science and technology are keys to eradicating hunger and poverty in developing countries; (2) the ability of the developing countries to achieve selfsustaining growth has been hindered by the lack of an indigenous scientific and technological base; (3) this scientific and technological base is vital to the emergence of developing countries as full and equal partners in the international system; (4) expanded cooperation with respect to science and technology can significantly contribute to an improved North-South relationship; and (5) the United Nations Conference on Science and Technology for Development offers a valuable forum for the analysis of problems of development that might be alleviated or solved with the aid of scientific and technical expertise. (b) It is therefore the sense of the Congress that the United States should strongly support the purpose of the United Nations Conference on Science and Technology for Development and that the United States delegation to this conference should actively develop and offer proposals which would facilitate an expansion of mutually beneficial cooperation among developed and developing countries with respect to science and technology, including joint education and research and development programs. (c) In addition to amounts otherwise available for such purpose, $945,000 of the amount authorized to be appropriated by section 101 (a) (1) of this Act shall be available only for expenses incurred by the Department of State in connection with the United Nations Conference on Science and Technology for Development, including expenses for preparatory conferences and seminars held in the United States. 84 Transnational Corporations, Foreign Antitrust Laws Transnational Corporations In an address to the American Bar Association's section on international law, on August 9, 1978, John H. Shenefield, Assistant Attorney General, Antitrust Division, Department of Justice, discussed the application of U.S. antitrust laws to foreign transactions in terms of necessity for effective domestic enforcement, desirability in maintaining aggressive, fair competition from abroad for the benefit of the American consumer, and compatibility with principles of international law. In the last mentioned respect, Mr. Shenefield described the policy as constituting an assertion, not of extraterritoriality but of the principles of objective territoriality, accepted by the vast majority of states in certain circumstances. Portions of his address follow: (footnotes selectively omitted) Perhaps a strict territorial view of jurisdiction might have made sense when American antitrust law was in its infancy, but both times and the law have changed. Technological innovation has almost literally made the world smaller, facilitating transportation and |