800.51 Johnson Act/160

The Director of the Registration Division, Securities and Exchange Commission ( Bane ), to the Secretary of State

Sir: Public Act No. 151 of the 73rd Congress, popularly known as the Johnson Act, provides that “it shall be unlawful within the United States or any place subject to the jurisdiction of the United States for any person to purchase or sell the bonds, securities, or other obligations of, any foreign government or political subdivision thereof or any organization or association acting for or on behalf of a foreign government or political subdivision thereof, issued after the passage of this Act, or to make any loan to such foreign government, political subdivision, organization, or association, except a renewal or adjustment of existing indebtedness while such government, political subdivision, organization or association, is in default in the payment of its obligations, or any part thereof, to the Government of the United States.”

Accordingly it becomes important to this Commission when considering the applications of foreign governments or political subdivisions thereof for registration of securities under the Securities Act of 19337 or the Securities Exchange Act of 19348 to know whether or not such governments or political subdivisions are in default in the payment of their obligations or any part thereof to this government.

We would, therefore, appreciate the receipt of a list of the names of such countries as are in default in their payments on obligations to this government.

Yours very truly,

Baldwin B. Bane
  1. 48 Stat. 74.
  2. 48 Stat. 881.