Case Filed Contesting of States and

[RANGOONP@xxxxxxx]

Test Case Filed Contesting Validity of State and Local Sanctions Laws

WASHINGTON, April 30 /PRNewswire/ -- The National Foreign Trade Council (NFTC)
today filed suit in the United States District Court in Boston, Massachusetts
to enjoin Commonwealth of Massachusetts officials from enforcing the
"Massachusetts Burma Law," (7 M.G.L.A. 22G-M).  The law effectively prohibits
companies that do business in the Union of Myanmar (formerly Burma) -- or
whose parent companies have business dealings in that nation -- from providing
goods and services to Massachusetts state agencies. 

"We regard this law suit to be an important test case that will determine the
very significant, perplexing and continuing issue concerning the
constitutionality of state and local sanctions," said Frank Kittredge,
President of the National Foreign Trade Council and Vice Chairman of
USA*ENGAGE.  "We believe the interests of all affected parties, including the
Commonwealth and its citizens, will be served by an authoritative and prompt
resolution of this issue." 

"The Massachusetts Burma Law directly intrudes on the exclusive power of the
national government to determine foreign policy, discriminates against
companies engaged in foreign commerce, and conflicts with the policies and
objectives of the federal statute imposing sanctions on the Union of Myanmar,"
Kittredge continued.  "This is a clear constitutional issue, and we believe
there are strong grounds to overturn the law." 

The NFTC legal challenge is based on three premises:  

1. The United States Constitution vests complete responsibility for the   

conduct of foreign relations with the federal government. 

2. The Massachusetts Burma Law violates the Foreign Commerce Clause of the   

U.S. Constitution, which prohibits state laws that discriminate against   

foreign commerce, burden foreign commerce, or impede the federal   

government's ability to speak with one voice when regulating commercial   

relations with foreign governments. 

3. The Massachusetts Burma Law conflicts with the sanctions enacted by   

Congress and the President to implement a federal strategy for   

encouraging political change in the Union of Myanmar. 

"The constitutional problem created by the Massachusetts Burma Law is a
serious one, and the proliferation of similar laws in states and cities
throughout the country creates a problem not only for business, but for the
ability of the United States to conduct a coherent foreign policy," Kittredge
continued.  "We share concerns over reported human rights abuses in the Union
of Myanmar, and encourage the United States to seek multilateral solutions to
problems that exist throughout the world.  However, our system of government
was not designed to allow the fifty states and hundreds of municipalities to
conduct their own individual foreign policies." 

The NFTC has, for most of this century, represented the interests of hundreds
of companies in free international trade.  NFTC has filed the suit on behalf
of its 580 members because the law establishes a "restricted purchase list"
which currently includes over 30 of the NFTC's member companies -- preventing
these companies from competing on an equal basis for contracts with
Massachusetts state agencies or require that they cease doing business in the
Union of Myanmar. 

SOURCE  National Foreign Trade Council, Inc. 

CO:  National Foreign Trade Council, Inc. 

ST:  District of Columbia, Massachusetts 

IN: 

SU:  LEG 

04/30/98 10:50 EDT http://www.prnewswire.com