Skinflint's City Diary
There is a sort of bitter irony n the Americans latching on to the sort of economic xenophobia launched in France by Jean-Jacques ServanSchreiber. And his book was, of course, Le Deft Americain. The US has always been happy to see its companies move into other countries, and all but take over quite a few territories. United Fruit, Anaconda, et al are obvious but more insidious has been over half a century of quiet small scale acquisitions and start-ups all over the world. When people grumble about the power of the multinationals, it is nearly always American companies they mean, for only a handful of note stand outside: Shell, Nestle, Unilever, Philips. Not that there is anything necessarily wrong in American companies setting up or buying up in a country. On the contrary, they often bring new technology, aggressive management and marketing, money, and employment opportunities. All of which should be a boon to the host country. But even were it not for all that, free trade and international amity should dictate a readiness to accommodate foreign investment in one's country unless its intentions are clearly hostile.
But while the Americans have for the past half-century been happy to be economic colonists, they started getting increasingly twitchy at any sign the movement was likely to reverse. Nearly every British takeover of a major American company has been greeted with baleful anti-trust scrutiny and obstructive delay. And as the British began to realise that business here was going to get no easier, they started a steady stream of buying into the US. The result has been growing unease across the Atlantic.
But while they were prepared reluctantly to tolerate the British, and perhaps even the French, the latest Arab buying spree has been ,too much. Legislation has now been introduced into the Upper House to protect the US from "over-zealous foreign investors" and obliging foreigners to disclose US holdings of over $10,000. This is just the sort of legislation so many countries talked about for years but only a few underdeveloped ones actually introduced.
And quite apart from that, it seems not unreasonable that the Arabs are more likely to be co-operative and understanding if they identify more closely with economic aspirations of their customers. One way this would be encouraged is by investing where the oil goes. And just think what a marvellous counterthreat to further nationa lisation of oil resources.
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