Front Matter Source: Lawyer of the Americas, Vol. 10, No. 2, Symposium Issue: Legal Problems for Multinational Corporations (Summer - Fall, 1978) Published by: University of Miami Inter-American Law Review Stable URL: http://www.jstor.org/stable/40175797 . Accessed: 12/06/2014 15:37 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . University of Miami Inter-American Law Review and Joe Christensen, Inc. are collaborating with JSTOR to digitize, preserve and extend access to Lawyer of the Americas. http://www.jstor.org This content downloaded from 185.2.32.58 on Thu, 12 Jun 2014 15:37:56 PM All use subject to JSTOR Terms and Conditions
Transcript
Front MatterSource: Lawyer of the Americas, Vol. 10, No. 2, Symposium Issue: Legal Problems forMultinational Corporations (Summer - Fall, 1978)Published by: University of Miami Inter-American Law ReviewStable URL: http://www.jstor.org/stable/40175797 .
Accessed: 12/06/2014 15:37
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp
.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].
.
University of Miami Inter-American Law Review and Joe Christensen, Inc. are collaborating with JSTOR todigitize, preserve and extend access to Lawyer of the Americas.
http://www.jstor.org
This content downloaded from 185.2.32.58 on Thu, 12 Jun 2014 15:37:56 PMAll use subject to JSTOR Terms and Conditions
Revision of Transnational Investment Agreements in the Natural Resource Industries - Thomas W. Walde
Special Corporations for Operating Abroad: An Overview of U.S. Tax Planning Alternatives - Robert F. Hudson, Jr.
Haiti: Investment Opportunities for the U.S. Manufacturer - Rodney Nicholas Laham
The Changing Legal Climate for Multinational Investments in Developing Countries - Jamie Alvarez Soberanis
Bribery and the Multinationals in Latin America: Only the Tip of the Iceberg - Mary E. Fabre
Regulating the Multinational: A Comment on the Divestment Myth - Roberto Danino
An Evaluation of the Andean Pact - Rafael Vargas-Hidalgo
REPORTS
Inter-American Legal Developments Latin American Tax Up Date International Banking and Finance Aviation The Oceans Latin American Economic Integration Regional and International Activities
NOTES
The Darien Gap Case Private Actions by Foreign Governments Under U.S. Antitrust Laws
SPECIAL FEATURES
Volume 10 Summer-Fall 1978 Number 2
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The University of Miami School of Law is approved by the American Bar Association and is a member in good standing of the Association of American Law Schools. The Law school emphasizes general theory, and graduates from the school are prepared to take the bar examination in any jurisdiction in the United States.
The graduate program in law provides an opportunity for advanced study and creative research as well as specialization, thus preparing for a more meaningful career in research, teaching, government or private practice. Graduate programs lead to the degrees of Master of Laws in Inter-American Law, International Law, Taxation, Estate Planning, and Ocean Law. Graduates from foreign law schools where the curriculum is not based on the common law may be admitted as candidates for the M.C.L.
The University of Miami has one of the finest law libraries in the country. The library's collection of more than 210,000 volumes contains the statutes, decisions and digests of all the states and the Federal Govern- ment as well as an excellent collection of British Commonwealth materials, and Anglo-American periodicals and texts. The international section of over 10,000 volumes emphasizes Latin American law.
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LAWYER OF THE AMERICAS is published three times a year by University of Miami law students. The U.S. subscription rate is $12.50 per year. The foreign rate is $14.00. Sub- scriptions are renewed automatically upon expiration unless the subscriber sends in a timely notice of termination. All notifications of address changes should include the appropriate zip code.
The LAWYER welcomes submission of articles prepared by scholars and practitioners of private or public international law, or inter-American law. Manuscripts should be submitted in duplicate, typed triple-space with footnotes at the end, and comply with A Uniform System of Citation, published by the Harvard Law Review Association.
All articles represent the opinions of the noted authors and do not necessarily reflect the opinion of the Board of Editors.
All correspondence with reference to this publication should be directed to Lawer of the Americas. School of Law, University of Miami, P.O. Box 8087, Coral Gables, Florida 33124.
®Copyright 1977 by University of Miami.
Cite as: Law. Am.
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Benefactors University of Miami Law Alumni Association Coca-Cola Export Corp. Esso Inter-America, Inc. Paul, Landy, Beiley and Yacos Lee Ruwitch
Patrons Bradford, Williams, McKay, Kimbrel, Hamann & Jennings, P.A. Frank B. Hall & Co., Parker Aviation Division Gulf & Western Food Products Co. Pfizer Latin America Smathers & Thompson Wisehart Foundation
The Lawyer of the Americas gratefully acknowledges the financial support given by these individuals and organizations.
* * *
Information regarding the Benefactor-Patron Program may be obtained
from: Administrative Assistant, Lawyer of the Americas, University of
Miami Law School, P.O. 248087, Coral Gables, Florida 33124.
Published by THE INSTITUTE FOR
INTER-AMERICAN LEGAL STUDIES of the
UNIVERSITY OF MIAMI SCHOOL OF LAW in cooperation with the
INTER-AMERICAN BAR ASSOCIATION
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Henry King Stanford, Ph.D., President of the University Soia Mentschikoff. A.B., LL.B., LL.D., Dean and Distinguished
Professor of Law John Gaubatz, B.S., J.D., Associate Dean and Professor of Law Jeanette F. Hausler, A.B., J.D., Assistant Dean and Dean of Students Clifford C. Alloway. B.A., J.D.. LL.M., Professor of Law Terence J. Anderson, B.A., J.D., Visiting Professor of Law Peter A ran son. B.A., M.A.. M.A.. Ph.D., Special Research Administrator,
Law and Economics Center Benton L. Becker, B.A., J.D., Visiting Professor of Law Walter H. Beckham, Jr., A.B., J.D., Professor of Law Rafael C. Benitez, B.S., J.D., LL.M., Professor of Law
Jacquin Bierman, B.A., LL.B., Visiting Professor of Law Walter J. Blum. J.D., Visiting Professor of Law
Ralph E. Boyer, B.A., LL.B., LL.M., S.J.D., Professor of Law Kenneth Casebeer, A.B., J.D.. Assistant Professor of Law
Seymour A. Casper, B.A/s. J.D., LL.M.. Visiting Professor of Law Kenneth W. Clarkson, A.B., M.A., Ph.D.. Professor of Law, Law and
Economics Center Thomas A. Clingan. Jr., B.S., J.D., Professor of Law Louis De Alessi, B.A., M.A., Ph.D., Professor of Economics, Law and
Economics Center Fred W. Doerner, Jr.. A.B., J.D., Associate Professor of Law Francisco V. Garcia Amador, D.C.L.. Ph.D., LL.M.. Visiting Professor of Law
Michael H. Graham. B.S.E., J.D., Visiting Professor of Law Patrick Owen Gudridge, A.B.. J.D.. Assistant Professor of Law
Stanley Hagendorf, B.S., J.D., LL.M., Associate Professor of Law
Ernest A. Haggard. A.B., M.S.. Ph.D., Professor of Psychology and Co-Director,
Center for Interdisciplinary Study of Law Richard A. Hausler. B.S.L.. LL.B.. LL.M., Professor of Law
Philip E. Heckerling, J.D., LL.M., Professor of Law Thomas C. Heller, A.B., J.D., Visiting Professor of Law Allen Hydan, A.B.. M.A., C. Phil., Ph.D., J.D., Research Professor of Economics,
Law and Economics Center David Ladd, B.A., J.D., Visiting Professor of Law Richard H. Lee, B.A., LL.B., LL.M.. J.S.D.. Professor of Law
Robert M. LeVine. B.A., J.D.. Assistant Professor of Law Frederick D. Lewis, Jr.. A.B., J.D., Distinguished Professor of Law
Dennis O. Lynch, B.A., J.D., LL.M., Associate Professor of Law
Henry G. Manne, B.A., J.D., LL.M., J.S.D.. Director and Distinguished Professor of Law, Law and Economics Center
Donald L. Martin, B.S., M.B.A.. Ph.D., Research Professor of Economics, Law and
Economics Center M. Minnette Massey, B.B.A., J.D., M.A., LL.M., Professor of Law
Roger L. Miller, B.A., Ph.D., Professor of Economics, Law and Economics Center
James S. Mofsky, B.A., LL.B., LL.M., S.J.D., Research Professor of Law, Law and
Economics Center John H. Moore, B.S.E., M.B.A., Ph.D., Associate Director and Research Professor,
Law and Economics Center
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Timothy J. Muris, B.A., J.D., Assistant Professor of Law, Law and Economics Center Daniel E. Murray, J.D., LL.M., J.S.D., Professor of Law Dennis M. O'Connor, A.B., LL.B., Professor of Law George Onoprienko, B.B.A., J.D., Professor of Law John J. Osborn, Jr., B.A., J.D., Associate Professor of Law (on leave of absence,
spring semester, 1978) Bernard H. Oxman, B.A., J.D., Associate Professor of Law Hugh L. Sowards, B.S., J.D., Professor of Law Irwin Stotsky, B.A., J.D., Assistant Professor of Law Alan C. Swan, B.A., J.D., Professor of Law Robert Waters, Ph.B., J.D., Professor of Law Thomas A. Wills, B.S., M.S., J.D., Professor of Law Bruce J. Winick, A.B., J.D., Associate Professor of Law
Emeriti
Leonard J. Emerglick, J.D., Professor Emeritus of Law Harriet L. French, B.A., LL.B., Professor Emeritus of Law Herbert A. Kuvin, B.S., M.E., LL.B., Professor Emeritus of Law George S. Pikar, B.S., J.D., LL.M., Professor Emeritus of Law Jeanette O. Smith, J.D., Professor Emeritus of Law Thomas A. Thomas, B.A., J.D., LL.M., Professor Emeritus of Law
Instructors
M. David Gelfand, B.A., B.Phil., J.D. Michael J. Pugh, A.B., J.D., LL.M. James W. Roth, A.B., J.D. Bradford Swing, B.A., J.D. Elaine F. Weiss, B.S., J.D.
Adjunct Faculty
General
Brenda Abrams, A.B., J.D. Joseph Abrell, J.D. Donald Bierman, A.B., J.D. Jordan Bittell, B.A., J.D. Roy Black, A.B., J.D. Richard Ian Brickman, A.B., LL.B. Talbot D'Alemberte, B.A., J.D. Jacob M. Denaro, A.B., LL.B., LL.M. Tracy Ferguson, A.B., LL.B. Mario P. Goderich, J.D. Paul G. Hyman, B.A., J.D. Rosemary Jones, A.B., J.D. Theodore Klein, B.B.A., J.D., LL.M. George Knox, J.D. Paul J. Levine, B.A., J.D. Michael Masinter, B.A., J.D. Carl E. B. McKenry, Jr., A.B., J.D., LL.M. Thomas Post, A.B., J.D., LL.M. Samuel S. Smith, B.B.A., J.D. Gerald T. Wetherington, B.A., J.D.
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Bennett H. Brummer, A.B., J.D. Terry DeMeo, B.A., J.D. J. V. Eskenazi, B.A., LL.B. John Lazarus, B.A., J.D. Wilbur S. McDuff, J.D. Janet Reno, A.B., LL.B. Joel D. Rosenblatt, B.S., B.A., J.D. Theodore J. Sakowitz, B.A., J.D. Michael J. Satz, B.S., J.D. Alan H. Schreiber, B.S., J.D. Glen Shuman, B.A., J.D. M. Jeffrey Speno, B.A., J.D.
Taxation
Norman J. Benford, B.A., LL.B. John P. Carrigan, Jr., B.B.A., J.D. Lawrence K. Grabb, B.S., J.D., LL.M.
Murray A. Greenberg, B.A., J.D. Gerald T. Hart, B.A., J.D., LL.M. Martin Kalb, B.S., J.D., LL.M.
Sheppard King, B.S., B.A., J.D., LL.M.
Stanley H. Kuperstein, B.B.A., J.D., LL.M. Sheldon C. Kurland, B.B.A., J.D., LL.M. Martin J. Kurzer, B.A., J.D. Robert D. W. Landon, II, B.A., LL.B. Norman H. Lipoff, B.S., B.A., J.D., LL.M. Paul P. Lipton, B.A., LL.B., LL.M. Martin J. Nash, B.B.A., J.D., LL.M. Herbert Odell, J.D., LL.M.
Henry H. Raattama, Jr., B.B.A., J.D., LL.M. David M. Richardson, B.S., LL.B., LL.M.
Benjamin S. Schwartz, B.S., LL.B., LL.M. Donald R. Tescher, B.S., B.A., J.D., LL.M.
Sydney Traum, B.B.A., J.D., LL.M. Samuel Ullman, B.S., J.D.
Visiting Adjunct Faculty
Estate Planning
JohnButala, A.B., LL.B. Mortimer M. Caplin, B.S., LL.B. Harrison K. Chauncey, Jr., A.B., LL.B. John R. Cohan, B.S., LL.B. Sheldon S. Cohen, A.B., J.D. Earl M. Colson, B.S., LL.B. Richard B. Covey, A.B., LL.B. Austin Fleming, A.B., J.D. Edward C. Halback, Jr., B.A., J.D., LL.M. Dan Hastings, B.A., J.D. Albert Kalter, B.B.A., J.D., LL.M. Frederick R. Keydel, B.A., J.D.
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Arthur L. Kroll, B.A., LL.B.. LL.M. Malcolm Moore, B.A., J.D. John H. Myers, A.B., J.D., LL.M. Lawrence Newman, A.B., LL.B., J.J.D. John C. O'Byrne, M.S., LL.B. David M. Richardson, B.S., LL.B., LL.M. Leo L. Schmolka, A.B., LL.B. Thomas L. Shaffer, B.A., J.D. Lloyd George Soil, B.S., LL.B., LL.M. Norman A. Sugarman, A.B., LL.B. Theodore Tannewald, A.B., LL.B. Stefen Tucker, B.B.A., J.D. Stanley S. Weithorn, B.S., J.D., LL.M. Rene A. Wormser, B.S., LL.B., LL.D.
Law Library Staff
Richard G. Hutchins, A.B., A.M., J.D., A.M.L.S., Associate Professor of Law and Law Librarian
William J. Beintema, B.B.A., J.D., M.S.L.S., Assistant Law Librarian Eduardo LeRiverend, D.C.L., Assistant Professor for Law and Foreign
Law Librarian Mary J. Hutchins, A.B., A.M.L.S., Administrative Assistant
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The publication of the Summer 1978 issue of the LAWYER marks a rapid stage of growth for the journal. The LAWYER is proud to present its first symposium issue treating an ever-present concern of international jurists - the multinational corporation. The issue offers coverage of a broad spectrum of contemporary issues in the field which are of interest to both the lawyer and businessman.
The staff of the journal is also preparing for the release, in fall, 1978, of a symposium dealing with ocean law developments. In light of the recent United Nations Conferences on the Law of the Sea (UNCLOS), a group of distinguished authors shall treat this controversial area, covering such topics as the seabeds, fisheries, whales, and coastal law. The LAWYER OF THE AMERICAS welcomes the comments of its readers regarding these two symposium issues so that we may continue to serve efficiently in the role of reporter and commentator on international legal subjects.
Finally, in a development of immeasureable importance to the journal, the LAWYER is happy to announce that the Inter-American Bar Associa- tion (IABA) and the LAWYER have strengthened their relationship in light of the common goals of both. The LAWYER has been named the official journal of the IABA. The support of the IABA will strengthen our ability to meet the challenge of reporting on new legal developments and dis- seminating new ideas concerning this dynamic region of the globe. The LAWYER OF THE AMERICAS looks forward to this important associa- tion and we wish to express our appreciation for the support offered in our behalf.
JONATHAN R. FRANK Editor-in-Chief
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ADOPTED IN BUENOS AIRES, ARGENTINA, ON MAY 20, 1978
CONSIDERING:
1. That the Lawyer of the Americas has been associated with the Inter- American Bar Association since 1969, and in recognition of the outstanding value of this publication to the Lawyers of the Americas, a resolution was passed at the Atlanta Conference, recommending a closer relationship with the Lawyer.
2. That until the Inter-American Bar Association establishes its own publication, it is in the best interest of the Inter-American Bar Association to adopt the Lawyer for its official publication.
3. That it is the understanding that the Lawyer presents a fine oppor- tunity to inform members of the Inter-American Bar Association as to the continuing activities of the Association and for its members to submit arti- cles on legal topics to the Lawyer for publication.
RESOLVED:
1. That Inter-American Bar Association adopt the Lawyer of the Americas as the vehicle for its official publication, with the specific understanding that both the economic and editorial responsibility remains with the University of Miami School of Law.
2. That subscriptions to the Lawyer at reduced rates as set by the Lawyer's Board be made available on an optional basis to all mem- bers of the Inter-American Bar Association, and that the applica- tion for membership, brochures, and dues statements so provide.
3. That the Inter-American Bar Association and the Lawyer con- tinue to explore the possibilities of printing in Spanish, Portuguese and French, in whole or in part, or extracts and condensations thereof, future editions of the Lawyer.
4. That the Inter-American Bar Association appoint a member of the Council and an alternate (member of the Inter- American Bar Association), to serve as a liaison between the Inter-American Bar Association and the Editorial Board of the Lawyer.
5. That Burton A. Landy be appointed as liaison, and Rafael C. Benitez, as alternate between the Inter-American Bar Association and the Editorial Board of the Lawyer of the Americas, to serve un- til their successors have been duly appointed.
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LAWYER OF THE AMERICAS University of Miami Journal of International Law
Volume 10 Summer-Fall 1978 Number 2 CONTENTS
SYMPOSIUM ISSUE: LEGAL PROBLEMS FOR MULTINATIONAL CORPORATIONS
Revision of Transnational Investment Agreements in the Natural Resource Industries 265 THOMAS W. WALDE
Special Vehicles for Operating Abroad: An Overview of U.S. Tax Planning Alternatives 299 ROBERT F. HUDSON, JR.
Haiti: Investment Opportunities for the U.S. Manufacturer 355 RODNEY NICHOLAS LAHAM
The Changing Legal Climate for Mul- tinational Investments in Develop- ing Countries 365 JAMIE ALVAREZ SOBERANIS
Bribery and the Multinationals in Latin America: Only the Tip of the Iceberg 371 MARY E. FABRE
Regulating the Multinational: A Com- ment on the Divestment Myth .... 385 ROBERTO DANINO
An Evaluation of the Andean Pact: ... 401 RAFAEL VARGAS-HIDALGO
REPORTS Inter-American Legal Developments . 425 RAFAEL C. BENITEZ Latin American Tax Up Date 448 MARY MERCEDES MARTI International Banking and Finance ... 510 DEBRA L. BOWEN Aviation 530 SUZANNE PINKERTON The Oceans 540 WM. STANLEY SNEATH Latin American Economic Integration 549 GEORGE LOTT
Regional and International Activities . 576 ISIDORO I. ZANOTTI
NOTES
The Darien Gap Case: Can Mere Words Interfere with the Sovereignty of a Foreign Nation?: Sierra Club v. Adams, No. 76-2158 (D.C. Cir. Mar. 14, 1978) 589
Private Actions by Foreign Govern- ments Under U.S. Antitrust Laws.
Pfizer v. Government of India, U.S 98 S.CT. 584 (1978) 609
