of comments received, were issued Feb. 15, 1979, and with supplementary information are at Fed. Reg., Vol. 44, No. 43, Mar. 2, 1979, pp. 11764-11768.

The following were "designated foreign countries" under 31 CFR 500.201, Schedule:

Cambodia, eff. Apr. 17, 1975; China (i.e., People's Republic of), eff. Dec. 17, 1950; North Korea, eff. Dec. 17, 1950; North Vietnam, eff. May 5, 1964; and South Vietnam (i.e., Vietnam south of latitude 17 North), eff. Apr. 30, 1975, at 12:00 p.m. E.D.T.

For proposed corresponding amendments to the Cuban Assets Control Regulations (to be added as 31 CFR 515.205 and 515.611) and to the Foreign Funds Control Regulations (to be added as 31 CFR 520.05 and 520.611), see Fed. Reg., Vol. 43, No. 220, Nov. 14, 1978, pp. 53021-53023 and 53023-53025, respectively. The final regulations, some of which were similarly "changed significantly from the proposed version" in each instance, were also issued Feb. 15, 1979, and, with supplementary information, are at Fed. Reg., Vol. 44, No. 43, Mar. 2, 1979, pp. 11768-11771 and 11771-11774, respectively.

The amendments to the Foreign Funds Control Regulations apply to property blocked under 31 CFR 520.101 (a) (General License No. 1), which reads:

$520.101 General License No. 101.

(a) A general license is hereby granted licensing all property now blocked under the order to be regarded as property in which no blocked country or national thereof has, or has had, any interest: Provided, however, That the license granted by this paragraph shall not apply to any property blocked by reason of the interest on or since the effective date of the order of any of the following:

(1) Czechoslovakia, Estonia, Latvia, Lithuania, and Germany (except for any interest of Germany now owned by the Federal Republic of Germany, the city of Berlin (Western Sectors) or the Saar);

(2) Any individual, partnership, association, corporation or other organization which on December 7, 1945, was in Czechoslovakia, Estonia, Latvia, or Lithuania;

(3) Any individual, partnership, association, corporation or other organization which on December 31, 1946, was in any of the areas of Germany under control or administration of the Union of Soviet Socialist Republics; or

(4) Any other partnership, association, corporation, or other organization which was a national of any country designated in paragraph (a)(1) of this section by reason of the interest therein of any such country or by reason of the interest therein of any individual, partnership, association, corporation, or other organization specified in paragraphs (a)(2) or (3) of this section.

31 CFR 520.101 (July 1, 1978).

Family Remittances

On December 22, 1977, the Office of Foreign Assets Control, Department of the Treasury, amended its Cuban Assets Control Regulations (31 CFR Part 515), effective January 4, 1978, by the addition of section 515.563, which authorized persons in the United States to send a maximum of $500 in any 3-month period to close relatives in Cuba. Additional remittances of $500, on a one-time basis per person, were also authorized for the purpose of enabling the payee to emigrate from Cuba. The purpose of permitting these limited remittances was to implement developments in United States Government policy toward Cuba. The amendment did not, however, authorize remittances to be made from blocked accounts.

Fed. Reg., Vol. 43, No. 5, Jan. 9, 1978, p. 1336.

On Oct. 26, 1978, the regulation was further amended, effective the same day, to permit support remittances to be made to Cuban nationals who are residents of third countries in the authorized territory (“authorized trade territory”). Ibid., No. 216, Nov. 7, 1978, pp. 51762–51763.

On Oct. 26, 1978, the Office of Foreign Assets Control also amended section 515.322 of the Cuban Assets Control Regulations, defining “authorized trade territory" and "member of the authorized trade territory," to update it by taking into account the existence of new political entities, changes of official names, and deletion therefrom of certain countries against which embargoes or sanctions were currently maintained. Ibid., p. 51762.

On December 22, 1977, the Office of Foreign Assets Control similarly amended its Foreign Assets Control Regulations (31 CFR Part 500), effective January 4, 1978, by addition of section 500.565, “Family remittances to Vietnam," which authorized persons in the United States to send up to $300 in any 3-month period to close relatives in Vietnam. Additional remittances of $750, on a one-time basis per person, were also authorized for the purpose of enabling the payee to emigrate from Vietnam. Similarly, the purpose of the amendment was to implement developments in United States Government policy toward Vietnam by authorizing these limited remittances. Similarly, also, the amendment did not authorize them to be made from blocked accounts.

Fed. Reg., Vol. 43, No. 5, Jan. 9, 1978, p. 1335.

On October 26, 1978, section 500.565, "Family remittances to nationals of Vietnam, and certain Cambodian nationals," was amended to authorize such remittances to a close relative who is a Vietnamese national and a resident of Vietnam, of a country in the authorized trade territory, or of the People's Republic of China (notwithstanding the provisions of 31 CFR 500.303, "Nationals of more than one foreign country") and who is not a specially designated national (defined in 31 CFR 500.306), and to a close relative who is a Cambodian national and a resident of Vietnam or of a country in the authorized trade territory and who is not a specially designated national. The amendment did not authorize remittances from blocked accounts or to persons in Cambodia.

Ibid., No. 216, Nov. 7, 1978, p. 51763.

Transactions Incident to United States Travel

On April 25, 1978, the Office of Foreign Assets Control, Department of the Treasury, amended the Cuban Assets Control Regulations (31 CFR Part 515), effective May 4, 1978, by the addition of sections 515.564, "Certain transactions incident to travel to, from and within the United States by certain Cuban nationals," and 515.565, "Transactions in connection with public exhibitions or performances.”

The Supplementary Information issued with the final rule explained the amendments in part:

The new general license (Section 515.564) is being added to authorize transactions incident to U.S. travel by Cuban nationals holding U.S. visas... between the United States and points outside of Cuba. travel within the United States, and maintenance of Cuban nationals while in the United States. It also permits U.S. nationals (such as travel agents or sponsors of exhibitions or performances) to arrange or assist in transactions by or on behalf of Cuban nationals incident to their travel to, from and within the United States. A similar general license for travel by U.S. nationals to, from and within Cuba was issued on March 29, 1977, 42 FR 16621 and amended on May 18, 1977, 42 FR 25499.

The new statement of licensing policy (section 515.565) will facilitate cultural exchanges between the United States and Cuba. Specific licenses will be issued to cover transactions involving Cuban performances in the United States and performances by U.S. persons in Cuba. While travel for cultural exchanges is covered by sections 515.560 and 515.564, other transactions involving public exhibitions or performances require individual licensing, such as performance contracts, importation of props and equipment, hiring of local employees, and the like.

The statement of licensing policy announces that licenses will be denied for such payments to Cubans as payments for television rights, appearance fees, royalties, or for preperformance expenses in Cuba of Cubans coming to the United States for a public performance. Similarly, payments to persons in Cuba for these purposes in connection with performances or exhibitions of U.S. persons in Cuba will not be licensed. However, as stated in section 515.546, specific licenses are issued to bona fide U.S. news-gathering organizations for payments in Cuba for news coverage or such events, as distinguished from payments for performance rights, royalties, etc.

These amendments do not authorize any debits to blocked accounts. Fed. Reg., Vol. 43, No. 90, May 9, 1978, pp. 19851-19852.

U.S.-Turkey

86

Debt Rescheduling

Bilateral Agreements

On September 21, 1978, the United States entered into an agreement with Turkey, rescheduling (and deferring) certain debts owed to, guaranteed, or insured by the United States or its agencies, and amounting to approximately $191 million.

The agreement established categories of debt, whether "consolidated" (80 percent of the dollar amount) or "nonconsolidated" (the remaining 20 percent), and terms of rescheduling in accordance with original maturities, whether "long term" (more than one year) or "short term" (one year or less), falling due between January 1, 1977,

and June 30, 1979. In these respects, it followed the recommendation of an Agreed Minute on the Consolidation of Turkey's Debts, negotiated and signed ad referendum on May 20, 1978, at Paris, by a Working Party of the Organization for Economic Cooperation and Development (OECD) Consortium for Turkey.

The agreement also provided for conclusion of further separate agreements (the "implementing agreements"): (1) between the United States and Turkey in regard to Public Law 480 agreements and the 1972 arrangement consolidating credits granted to Turkey by the European Fund of the European Monetary Agreement (assigned to the United States upon liquidation of the Fund, as reimbursement for the original United States contribution to the European Payments Union); and (2) between Turkey and each of the following United States agencies-the Agency for International Development, the Export-Import Bank of the United States, and the Department of Defense.

Article III of the agreement set out the terms and conditions of payment, specified, first, as to whether the debt were consolidated or nonconsolidated, and, second, under each category, as to whether it were long or short term.

Long term consolidated debt, amounting to $140.6 million, was to be repaid in 10 equal semiannual installments of $14.06 million, commencing on June 30, 1981 (thus allowing a grace period of nearly 3 years), with the final installment payable on December 31, 1985. Short term consolidated debt, amounting to $12 million, was to be repaid in 8 equal semiannual installments of $1.50 million, commencing on June 30, 1980 (thus allowing a grace period of nearly 2 years), with the final installment payable on December 31, 1983.

On nonconsolidated debt, the long term amount, totalling $35.3 million, was to be repaid in four equal semiannual installments of $8.82 million, commencing on December 31, 1978, with the final installment payable on June 30, 1980. The short term debt, amounting to $3.0 million, was to be repaid in 4 equal semiannual installments of $0.75 million, commencing on September 30, 1978, with the final installment payable on March 31, 1980.

Under the interest provisions of article III, the United States was to receive 2.7 percent on the $47.7 million of AID and Public Law 480 debt rescheduled; 3.0 percent on the $11.9 million of Treasury credits received from the European Fund; and 8.0 percent on the $131.3 million of Export-Import Bank and Department of Defense debt rescheduled. The weighted average interest rate was 6.36 percent for all United States Government debt.

Separate implementing agreements were concluded on Dec. 5, 1978, covering (1) consolidation and rescheduling of payments due under P.L. 480, Title I,

Agricultural Commodity Agreements, and (2) consolidation and rescheduling of certain debts owed to AID.

TIAS 9361; 30 UST 2723; entered into force Dec. 7, 1978.

The Agreed Minute of the OECD Consortium on Turkey, dated May 20, 1978, may be found at Dept. of State File No. P80 0066–1319.

87

Intellectual Property

Patent Cooperation Treaty

Patents

During 1978 the Patent and Trademark Office, Department of Commerce, promulgated two sets of changes to the rules of practice in patent cases, occasioned by the coming into force, on January 24, 1978, of the Patent Croperation Treaty (1970), in regard to which, see, further, the 1977 Digest, pp. 785–788.

The first set, issued January 12, 1978, effective January 24, 1978, conformed the rules in title 37, Code of Federal Regulations, Part 1, "Rules of Practice in Patent Cases", sections 1.75, 1.81, and 1.83 to statutory changes in title 35, United States Code, sections 41, 112, and 113, made by sections 3, 7, and 8 of Public Law 94-131, November 14, 1975 (89 Stat. 685; 35 U.S.C. 351 et seq., effective January 24, 1978), concerning which, see, further, the 1975 Digest, pages 646–647. They permitted the use of multiple dependent claims and prescribed when, and in what circumstances, drawings or additional drawings needed to be furnished.

Fed. Reg., Vol. 43, No. 21, Jan. 31, 1978, pp. 4014-4015.

The second set, issued April 25/May 5, 1978, and effective June 1, 1978, adopted rule changes to permit the filing of United States national patent applications in the format required by the Treaty (which is also the format required by the European Patent Convention). They included further revisions (and also additions) to the rules of practice, ante, under Subpart A, "General Provisions," and Subpart B, "National Processing Provisions," and the addition of new Subpart C, "International Processing Provisions." New sections were also added to 37 CFR, Part 3, "Forms for Patent Cases": section 3.56, "Oath to be filed with United States Designated Office [i.e., the United States Patent and Trademark Office] under 35 U.S.C. 371 (c) (4)," and section 3.57, "Declaration to be filed with United States Designated Office under 35 U.S.C. 371 (c) (4)." Revisions were also made to 37 CFR, Part 5, "Secrecy of Certain Inventions and Licenses to File Applications in Foreign Countries."

Fed. Reg., Vol. 43, No. 92, May 11, 1978, pp. 20458-20471 (to be codified to 37 CFR, revised as of July 1, 1978).