Doug Bereuter: “Actually, I think it is quite appropriate. The Foreign Corrupt Practices Act does regulate the practices of American…”

“Actually, I think it is quite appropriate. The Foreign Corrupt Practices Act does regulate the practices of American businesses doing business abroad. It requires them to keep accurate books, records and accounts. It requires issuers to register with the Securities and Exchange Commission to maintain a responsible and internal accounting control system, and it prohibits bribery by American corporations of foreign officials. In the way of background, the Foreign Corrupt Practices Act was a U.S. initiative and we have tried very hard, through the Organization for Economic Cooperation and Development in Europe, OECD, to have other countries adopt similar kinds of national legislation. Until recently, many of our west European export competitors have actually permitted their corporations to have their bribes as tax deductible, incredible as that may seem. We have recently had positive action by many of these countries in that respect, but now the proof is in the pudding. That is to say, will they, in fact, have enforcement to make sure that no such bribery is not encouraged or permitted under their tax codes.”