Executive Order 11211—Exclusion for Original or New Japanese Issues as Required for International Monetary Stability

By virtue of the authority vested in me by section 4917(a) of the Internal Revenue Code of 1954, as added by section 2 of the Interest Equalization Tax Act, approved September 2, 1964 (Public Law 88-563, 78 Stat. 809), by section 301 of title 3 of the-United States Code, and as President of the United States, it is hereby determined that the full application of the tax imposed by section 4911 of the Internal Revenue Code of 1954, as added by section 2 of the Interest Equalization Tax Act, will have such consequences for Japan as to imperil or threaten to imperil the stability of the international monetary system and it is hereby ordered as follows:

Section 1. The tax imposed by section 4911 of the Internal Revenue Code of 1954 shall not apply to an acquisition by a United States person of a debt obligation repayable exclusively in United States currency which is issued or guaranteed as to the payment of principal and interest by the Government of Japan (other than an obligation which by its terms is convertible into stock of the obligor) provided that—

(a) Such debt obligation is acquired as all or part of an original or new issue as to which there is filed such notice of acquisition as the Secretary of the Treasury or his delegate may prescribe by regulations;

(b) The Government of Japan determines and certifies to the acquiring United States person that his acquisition of such debt obligation complies with the criteria set forth in this section; and

(c) Before or as a result of such acquisition, the aggregate amount of all acquisitions by United States persons excluded from interest equalization tax by reason of this order during the calendar year in which the acquisition is made (or, in the case of acquisitions made during the period beginning on the effective date of this order and ending December 31, 1965, during such period) does not exceed $100,000,000.

Sec. 2. The Secretary of the Treasury or his delegate is authorized to prescribe from time to time regulations, rulings, directions, and instructions to carry out the purpose of this order.

Sec. 3. This order shall be effective upon its filing for publication in the Federal Register with respect to acquisitions made during the period beginning on the effective date of this order and ending on the date specified in section 4911(d) of the Internal Revenue Code of 1954.

LYNDON B. JOHNSON

The White House,

April 2, 1965.