Accession Number : ADA314840

Title :   Foreign Ownership Restrictions in Communications and 'Cultural' Trade: National Security Implications.

Descriptive Note : Research rept. Aug 95-Apr 96,

Corporate Author : INDUSTRIAL COLL OF THE ARMED FORCES WASHINGTON DC

Personal Author(s) : DiPaolo, Donna M.

PDF Url : ADA314840

Report Date : APR 1996

Pagination or Media Count : 40

Abstract : The controversy surrounding massive legislative opening and reform of the domestic U.S. telecommunications market in 1996 all but obscured a subsidiary -- and uncompleted - debate over whether also to remove the last remaining international barriers, that is, foreign ownership restrictions in communications. Even if Congress had acted on foreign ownership restrictions, any relaxation would likely have been strictly limited because of traditional political concerns about foreign influence in the American broadcast industry. Nonetheless, a reexamination of foreign ownership restrictions is both important and timely. As we enter the 'information age', we need not merely to review whether these restrictions are anachronisms with respect to protecting our national security, but to ask whether their continued existence is harmful to broader Amercan interests. Do they affect the ability of U.S. firms to compete globally and of U.S. consumers to receive a complete and truly competitive range of services? Many analysts would say yes. In a world where global alliances are increasing and trade disputes are more and more likely to revolve around governmental notions of protecting 'cultural identity', keeping the U.S. communications market closed to foreigners may harm rather than help U.S. efforts to open foreign markets to our own exports and business interests. This paper looks at the original national se%urity concerns giving rise to foreign ownership restrictions, and presents the case that information technologies have long since outstripped any effectiveness section 310 -- a licensing tool -- may have had in preventing foreign agents from transmitting radio messages (whether espionage or propaganda) during wartime.

Descriptors :   *UNITED STATES, *NATIONAL SECURITY, *FOREIGN, *LIMITATIONS, *TELECOMMUNICATIONS, CONGRESS, ESPIONAGE, INDUSTRIES, COMMERCE, COMPETITION, MARKETING, EXPORTS, RADIO BROADCASTING, BARRIERS, COMMUNICATION AND RADIO SYSTEMS, INTERNATIONAL, MESSAGE PROCESSING, RADIO SIGNALS, CONSUMERS, LEGISLATION, RADIO TRANSMITTERS, CULTURE, PROPAGANDA.

Subject Categories : Economics and Cost Analysis

Distribution Statement : APPROVED FOR PUBLIC RELEASE