Business Roundtable and Other Key U.S. Business Organizations Outline Key Amendments Needed to Improve CFIUS Reform Legislation

Washington, D.C. - In a letter delivered today to members of the Senate Banking Committee, and co-signed by four other U.S. business organizations, Business Roundtable reiterated its call for national security interests to remain the number one priority as Senators consider proposed reforms to the U.S. government's review process for foreign investment in the United States.

In the letter, the business groups expressed concerns over measures in the draft legislation under consideration in the Senate Banking Committee that would unnecessarily increase the Committee on Foreign Investment in the United States (CFIUS) review time for non-controversial foreign acquisitions, hindering foreign investment and potentially stifling economic growth.

Business Roundtable, the Financial Services Roundtable, the Organization for International Investment, the Securities Industry Association and the U.S. Chamber of Commerce cite concerns that the draft legislation "requires CFIUS to spend considerable resources on CFIUS filings where national security issues either do not exist or have been mitigated."

In the letter, the groups outlined the amendments they support to improve the current CFIUS reform draft scheduled for mark up tomorrow by the Senate Banking Committee.

1. Mandatory 45-day investigation for filings affecting critical infrastructure - to be introduced by Senator Hagel.

• This amendment would not change the requirement in the discussion draft that all acquisitions by foreign governments would be required to undergo the 45-day investigation.
• The amendment would require acquisitions affecting critical infrastructure to undergo the 45-day investigation only if there are outstanding security issues.

2. Extending the 30-day review period to 60 days - to be introduced by Senator Bunning.

• This amendment would strike the ability for any agency to extend the 30-day review period without cause.

3. Country ranking - to be introduced by Senator Dodd

• This amendment would remove the ranking requirement but require the CFIUS chair and vice chair to consult with the Secretary of State on national security matters.

For a complete copy of business community letter to Congress, visit click here.

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Business Roundtable (www.businessroundtable.org) is an association of chief executive officers of leading U.S. companies with over $4.5 trillion in annual revenues and more than 10 million employees. Member companies comprise nearly a third of the total value of the U.S. stock market and represent nearly a third of all corporate income taxes paid to the federal government. Collectively, they returned more than $98 billion in dividends to shareholders and the economy in 2004.

Roundtable companies give more than $7 billion a year in combined charitable contributions, representing nearly 60 percent of total corporate giving. They are technology innovation leaders, with $86 billion in annual research and development spending -- nearly half of the total private R&D spending in the U.S.

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