Foreign Bribes

Just a little bit illegal?

For two years U.S. businessmen have complained that their overseas sales are being hurt by the 1977 Foreign Corrupt Practices Act. It made bribery of foreign officials by U.S. firms a crime punishable by jail terms and fines of up to $1 million. Now, according to Justice Department officials, some relief may be in sight. Starting early next year, the department's lawyers will offer advice to businessmen on how far they can go without risking prosecution.

In general, the law permits payoffs to customs officers or other local officials to enable routine business to be conducted smoothly. But bribes to obtain new business deals are illegal. Because distinguishing between the two kinds of bribery is difficult, the department will urge firms to submit details of a questionable transaction to Government lawyers for analysis. The Justice Department promises that the information will be kept secret and that businessmen will receive the department's probable "enforcement action" within 60 days.

The business community reacted favorably to the plan, even though many executives question whether the Government can keep a secret. Others fear that even if the Government can, competitors may be able to gain confidential marketing information from the department under the Freedom of Information Act.

Then too some businessmen suspect that asking for guidance will invite an investigation by the Securities and Exchange Commission, which disagrees strongly with the Justice Department's approach. Says SEC Enforcement Chief Stanley Sporkin, who has long been under fire by businessmen as an overly zealous regulator: "We do not have guidelines for rapists, muggers and embezzlers, and I do not think we need guidelines for corporations who want to bribe foreign officials."

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