ouston, a bonanza to foreign investors
STEllita* s note: This is the second in a
ARlWCll eries of three stories on investment
yforeigners in U.S. business.
By KEVIN D. HIGGINBOTHAM
inc|(j(jj| H Battalion Reporter
e r ' S A *§cent U.S. Senate study showed that
ireign investment activity in the United
1 : tates has increased in the last few years.
^ lore and more, foreign businessmen are
Mat's$o the United States to be a protective
WBouj aven for their investments.
^veAnj Much of the reason for investing in the
rsta, ldiil5 ' n ‘t e h States is due to the safety of the
JCServic; l ves,ment > sa id one local real estate
Pan « rokcr who specializes in foreign invest-
arty( *lent in Texas.
Many foreign investors still wish to re-
lain anonymous, though, because they
[reprisals from their homelands, said
le Iroker, who himself first came to the
Inited States after most of his investments
ere'nationalized by his home country.
This is due, in part, to rigid international
Bment laws in many foreign countries.
|ck home they (the authorities) can
^Ize the relatives of an investor,” he
lid lOur children can be harassed and our
g® at home can be taken away. ”
T. Harold Jambers, in an article for
Tierra Grande, a Texas Real Estate Re
search Commission magazine, agreed with
the broker, “Many foreign investors wish to
remain anonymous because of home coun
try restrictions on exportation of capital and
fear of seizure, expropriation or reprisals.
“Ownership status often is obscured by
trusts, corporations, intermediaries and
other devices which mask the true owner. ”
Jambers also agrees that only a small por
tion of foreign land transactions concern
agricultural investments. He found that
commercial investments constituted the
vast majority of foreign investment with
respect to the dollar amount spent.
Jambers said that with the difficulty in
volved in determining the total amount of
land in the state, any attempt to quantify
investments with figures would tend be
misleading and inaccurate.
Jambers, therefore, chose to document
specific purchases he found during his re
search.
Much of Jambers’ research took place in
Houston. He found that as Houston grew
into an international city, the number and
size of foreign investments there also grew.
“Houston provides opportunities for all
types of investments and attracts investors
from most major countries,” said Jambers.
“With its international flair, Houston has
become one of the hot spots for foreign real
estate investment in Texas and the United
States. ”
Some of the larger foreign transactions
Jambers located in Houston include:
—The Pennzoil Place, a $92.9 million
purchase by a West German bank.
—The Saks Center, a $15 million British
purchase.
—The 850-unit Woodway Square
apartment complex, a $16 million Canadian
purchase.
—The 34-story Entex Building, a $40
million Dutch purchase.
“A number of factors are attracting
foreign investors Texas,” Jambers said.
“Texas has a cost of living lower than many
states, and it can boast a healthy economy,
a large energy base, a steady growth rate, a
booming construction industry and a
hard-working labor force.
“General reasons for investment in the
United States include the investor’s con
cern with the political and economic stabil
ity of other countries, the long-run trend
toward socialism, internal reforms and dis-
Russel Myers, in commenting on foreign invest
ment, voiced many American’s opinions on the sub
ject.
The Battalion thanks Russel Myers and the
Chicago Tribune-N.Y. News Syndicate Inc. for
permission to reprint this strip.
orders overseas.
“The United States has the most exten
sive protection for foreign investors of any
nation. Over 40 bilateral treaties of friend
ship, commerce and navigation provide
protection to residents of other nations. ”
Jambers said many foreign investors,
especially the smaller ones, see their in
vestments as a means of immigrating into
the United States, plus there are tax advan
tages that can be enjoyed by the foreign
investor.
One tax advantage which absentee or
nonresident foreign investors presently
enjoy concerns the payment of capital gains
taxes. This is currently under scrutiny by a
Senate committee.
Capital gains tax, a tax paid on the
amount of profit from the sale of capital
investments, such as stocks and real estate,
currently is not applied to absentee owners
who do not live in the United States for
Battalion
News Dept. 845-2611
Business Dept. 845-2611
more an 183 days during the year.
Bob Reynolds, a member of U.S. Sen.
Malcolm Wallop’s, R-Wym., Senate Fi
nance Committee staff, said that efforts are
being made to close this and other tax
loopholes foreign investors now enjoy.
Wallop has introduced a bill which
would require foreign investors to pay the
Please see page 8.
Admissions of Iranians to continue
Admissions and Records Dean
Edwin H. Cooper said because of the
recent turmoil in Iran, Texas A&M is
proceeding with unusual caution in
admitting Iranians — but that they
are being admitted. See page 5.
IT 7 ! Rhodesia vote
called fraud
Battalion photo by Lee Roy Leschper Jr.
AsWeH&l
/, Honey
drps discrimination suit slowed
y red tape; results expected soon
By DIANE BLAKE
Battalion Staff
Sometimes the bureaucracy seems to be
stuck in neutral.
Announcements concerning results of
two studies involving women in the Texas
A&M University Corps of Cadets are still
stalled, but both investigating organiza
tions are gearing up so they can make an-
notacements before the end of the semes
ter.
‘file Brazos Civil Liberties Union has not
yfflmade a decision on whether Melanie
Zentgraf — a junior Air Force scholarship
cadet — has basis for a discrimination suit,
special eight-member Corps com-
itee has completed its part in studying
and finding solutions for female cadets’
problems. But release of the results awaits
editing by military advisers and review by
System lawyers.
Lamar Hankins, cooperating lawyer for
the BCLU, said a press release should be
issued next week. A statement was
scheduled earlier this month concerning
the lawsuit.
In an interview earlier this week, he said
a consulting Houston lawyer, Carol Nelkin,
had not been able to study some of the
materials sent her by the BCLU, causing
the delay.
Col. James R. Woodall, commandant of
the Corps, explained why System lawyers
will look over the Corps study.
“We want to make sure the cadets have
not obligated the University by advising
something not legally correct,” he said
Wednesday afternoon.
Editing is needed because the report will
go to Dr. Jarvis E. Miller, president of the
University. “We want a first class product,
not a piece of amateurish stuff, ” he said.
Bob Kamensky, cadet Corps comman
der, said System lawyers would make sure
the report is a professional paper with no
ambiguities that could be misinterpreted.
The report, which was slated to be com
pleted by Parents’ Day, is “running about a
month behind.” But Woodall explained
that students take longer to conduct inves
tigations when they are carrying a full
academic load plus participating in extra
curricular activities.
He said he hopes the editing and review
will be finished by the end of the semester
so cadets will know about changes before
they leave for the summer.
That way they have all summer to think
over the changes and won’t be surprised
when they return this fall, he said.
United Press International
SALISBURY, Rhodesia — The Patriotic
Front guerrilla alliance dismissed
Rhodesia’s first black majority elections as
the “fraud of the century” and vowed to
step up the six-year war that has claimed
20,000 lives.
Bishop Abel Muzorewa, the diminutive,
U. S.-educated Methodist cleric, swept
aside all rivals in last week’s polling to be
come Rhodesia’s first black prime
minister-designate. Prime Minister Ian
Smith hands over the government to
Muzorewa next month.
In the Zambian capital of Lusaka, a
spokesman for Joshua Nkomo’s wing of the
Patriotic Front said the five-day elections
— the first black majority polling in
Rhodesia’s 88-year history — were “the
fraud of the century.”
“We are left with no alternative but to
pursue the war with a new intensity,” he
said.
Ndabiningi Sithole, Muzorewa’s chief
opponent, also has labeled the elections
fraudulent.
He said the balloting, which ended
Saturday, was marred by “appalling ir
regularities,” including pressure on rural
blacks by militia forces and government
official to vote for Muzorewa.
Muzorewa told a news conference Tues
day Sithole’s charges were unsubstan
tiated.
“It may be surprising to you but it’s not
surprising to me ... all that he (Sithole) is
saying is that, T am the one who should
have won and no other.’”
Muzorewa appealed to the Patriotic
Front’s “boys in the bush” to lay down their
arms and urged Western nations to recog
nize his government and lift trade sanc
tions in force against Smith’s white minori
ty regime since 1965.
“What the population of this country has
done is to strike a resounding blow for de
mocracy and freedom,” he said.
“The people have firmly rejected the
forces of darkness and evil and have dem
onstrated that it is their wish for the ballot
and not the bullet to determine their fu
ture.”
Muzorewa captured 67 percent of the
valid votes cast. According to a complicated
formula worked out as part of the “internal”
majority rule agreement, this translates
into 51 of the 72 black seats in the future
Parliament. Twenty-eight seats are re
served for whites.
Sithole’s party ran a poor second, win
ning only 12 seats.
The biggest surprise of the election was
that the party led by Kayisa Ndiweni, a
chief of the minority Ndebele tribe, won
nine seats. The chief advocates a federal
system in which his people would not be
dominated by the majority Shona tribal
group, and he had not been expected to do
well.
Asked what ministries he planned to give
Smith’s party, Muzorewa said: “Just wait
until the government is formed. Then your
business will be to write about what you
have heard.”
Shuttle buses
have exam week
schedules, too
Transportation Enterprises Inc. has an
nounced its schedule for the finals week
beginning May 7. All off-campus shuttle
buses will run their regular route on
Monday, Tuesday and Wednesday the
buses will run regular hours from 7 a.m.-
10:30 p. m., but there will be a reduction in
the number of buses running. Thursday
the schedule will be the same, but fewer
buses will run. On Friday the last bus run
will be at 5:15 p. m.
The blue route intra-campus shuttle bus
will run from 7:30 a.m. until 5:30 p.m. all
week, making stops at the agriculture
school. The red and green routes will run
from 7:00 a.m. until 5:00 p.m. from
Krueger dormitory to the veterinary
school, but will not stop at the agricultural
school.
fo keep university funds
Carolina sues HEW
ditor’s Note: Texas colleges and uni-
sities have been investigated by the
■W for charges similar to those facing
the North Carolina schools. Earlier this
wonth, Texas Attorney General Mark
Bite warned Texas A&M officials that
BW Secretary Joseph Califano is “se-
Ipusly contemplating” a suit against the
ytem because of its spending policy to
ward Prairie View A&M. According to an
■stin source, the HEW report on Texas
Ittsbeen sent to Washington, but it has not
been released.
I United Press International
BlALEIGH, N.C. — Claiming inconsis-
tent enforcement of the 1964 Civil Rights
w, the state of North Carolina has sued
Sr Department of Health, Education and
Jldfare to block a planned May 2 cutoff of
Beral funds to the 16-campus University
BNorth Carolina system.
Bn a suit filed Tuesday in U.S. District
Burt in Raleigh, the state and UNC
Brged HEW with “misdirection, malfea-
Sipce and abuse” in enforcement of the law
Bd asked that the university be declared in
B pliance with the law.
ut at the same time, a spokesman for
®v. James B. Hunt Jr. said the university
submit a request to implement its
;*est desegregation proposal — the ex-
Bnditure of an additional $41 million for
instruction and new academic programs
at the five predominantly black campuses
in the university system — despite HEW’s
rejection of the proposal this week.
HEW Secretary Joseph Califano said
Tuesday in a statement issued in Washing
ton he hoped the $41 million request would
not be “held hostage to protracted litiga
tion” and urged officials on both sides “to
keep the interests of the students upper
most in our minds. ”
The funding request was part of the uni
versity’s last proposal to HEW on a de
segregation plan, but Califano said Monday
he was rejecting it because of failure to
reach agreement over the issue of reopen
ing consideration of a HEW request to
close or merge duplicate programs at
neighboring black and white campuses.
The university suit charges HEW with
inconsistent application of the civil rights
law in different regions of the country and
contends the agency’s actions violated the
state’s equal rights protections in the Con
stitution and the rights of university faculty
members and students to academic free
dom under the First Amendment.
In the nine years since North Carolina
was brought into an NAACP lawsuit charg
ing discrimination in higher education,
“the only standard to be issued by the de
partment is contained in a newspaper
interview,” the court documents state, and
describe the standard as “enough” black
students at white shools and “enough”
white students at black schools.
Senator says blacks must fight attitudes
By LORI SHULER
Battalion Reporter
Black Americans are in danger of losing the biggest battle they have left to fight —
one against attitudes and emotions, a national civil rights leader said Wednesday night.
Julian Bond, first elected to the Georgia House of Representatives in 1965 and then
to the Senate in 1974, spoke to a crowd of 250 in Rudder Theater, sponsored by the
MSC Black Awareness Committee.
“Many Americans find it impossible to believe that some American blacks still sit at
the bottom of a long ladder,” Bond said. “They think that now that we’ve fought legal
battles, we have our civil rights. But, we still can’t move freely in society,” the 39-year-
old senator said.
Bond said the civil rights legislation that has been passed since the 1950s has lifted
most black Americans from “permanent peonage,” but that progress has been at a
snail’s pace.
“The parade of paper promises that give blacks the right to vote, that prohibits school
desegregation and eliminates job discrimination seems impressive,” Bond said. “But
in 1971 the Civil Rights Commission issued a study that said these laws have not
accomplished all they were intended to. Discrimination has continued to fester and
grow. ’
Bond listed two steps he feels should be taken to alleviate the continuing problems of
racial discrimination.
“First of all, we need to have a vigorous enforcement of existing laws. Next, we need
the kind of leadership that the human-hearted Texan in Washington (President Lyn
don Johnson) gave.
“LBJ used to say, ‘Come, let us reason together.’
“We don’t have people of that caliber now, ” he said.
Bond, who was nominated for vice president of the United States at the National
Democratic Convention in 1968 but was disqualified because of his age, referred to
both former President Nixon and President Carter in his speech.
President Carter in his speech.
Bond called Nixon’s 1968 election to the presidency a “resurrection from political
death” and said Nixon’s administration “rolled back the gains made by the civil rights
movement. ”
“It cut down the progress of the war on poverty and became the protector of the
privileged and powerful,” Bond said.
“Two years after Nixon’s resignation in 1974, once again the dashed hoped of the
American poor were raised.
“I have now decided that we have voted for a man who knew the words to our hymns
but not the numbers on our paychecks. ”
Battalion photo by day Cockrill
Julian Bond, a national civil rights leader, spoke to a crowd of 250 in
Rudder Theater, sponsored by the MSC Black Awareness Committee.
He stressed the need for blacks to fight their biggest battle — one against
attitudes and emotions. Bond was first elected to the Georgia House of
Representatives in 1965 and then to the Senate in 1974.