development, the UK will be reviewing its attitude towards co-operation with the US in antitrust questions and on the enforcement in the UK of US antitrust judgments. Meanwhile I hope that it will be possible for the case to be settled as soon as possible. For the future the UK looks to the US to adopt a flexible and responsive approach to further discussions with a view to reaching long-term agreement between us on shipping matters".
4
Mr Nott's Los Angeles Speech
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On 14 September in a speech to the British-American Chamber of Commerce in Los Angeles, the Secretary of State for Trade said the following:
"The problem arises from the manner in which the laws of the United States are encroaching on other nations' sover- eignty. I have not come here to knock your law. How could I when it is founded on the laws of England? I do not question the absolute right of the US to enact and enforce within its own territory whatever laws it chooses. But I do want to take this chance of highlighting a few cases in which good relations between our countries are being impaired by the extent to which the laws of the United States, whether as a result of the intentions of Congress or the interpretation of the courts, are applied in practice beyond your own frontiers. This is not a new problem; it has been a matter for contention with some of your overseas partners and friends for decades. Preminently this happens in the complex field of antitrust law. We understand and respect your antitrust laws - although not all of you may do so! Certainly we acknowledge their purpose and I am speaking here, as I have already explained, as a member of a govern- ment which is determined to restore the primacy of competition and enterprise in the economy of the United Kingdom. But what is discouraged or illegal in one country may be legal or positively encouraged in another. And the so-called "effects" doctrine of US law is leading to many instances where United States authorities are seeking to exercise their regulatory or investigatory powers over individuals or companies situated and operating outside the United States in ways which appear thoroughly objectionable in the countries concerned.
A second major area in which the application of US law gives concern is the so-called principle of enterprise entity. This is of course where US law is applied not only to US companies and to companies carrying on business in the USA, but also to related companies in particular overseas subsidiaries or affiliates which are not trading in the USA. In effect this is an attempt to impose US economic policies on the citizens and companies of other countries.
I understand and support the need to prevent the evasion of US laws by US subjects. Nevertheless a company which is registered, situated, operating and employing people in the United Kingdom is subject to the laws of the United Kingdom company and not of the United States. This is the case even if it is American controlled. Yet there are