Foreign Investment Curbs Are Eased: Balance of Payments Move ...
President Nixon and the ; Federal Reserve Board yesterday eased restrictions on the outflow of American capital going abroad in a move that has political and international as well as economic implications.</br></br>The President said in a statement that he had approved a Commerce Department recommendation that gives companies investing abroad more freedom to plan larger investments overseas.</br></br>The President also signed an executive order reducing the effective rate of the Interest Equalization Tax, which applies to Americans buying foreign securities. But he said he would ask Congress to extend the tax for 18 months after its scheduled expiration in July.</br></br>At the same time, the Fed announced that it has revised credit restraints on banks and other financial institutions to allow them to make foreign loans and to finance U.S. exports more flexibly.</br></br>The President's statement said that ÛÏthese are prudent and limited steps that recognize the realities of our present balance of payments situation.Û