65° - 01.11.1969, Síða 9

Officially Speaking
Foreign Investments in Norway
Norwegian Ambassador to Iceland
CHRISTIAN MOHR
Especially during the years following the se-
cond world war, Norway had made use of foreign
capital, among other things in the form of direct
foreign investment. However, as far back as the
turn of the century, at a time of great industrial
expansion and right up to the first world war,
foreign firms and capital interests were to a large
extent involved. During the inter-war years, too,
foreign capital investment took place, though in
a somewhat different form, primarily in the guise
of acquiring previously established concerns.
There is hardly any doubt that the participation
of foreign capital in Norway’s economic growth
has mainly constituted an expansive factor, and
that in a great many fields it has helped to pro-
mote the industrial and technological develop-
ment. During the entire post-war period this pro-
motion of economic growth has been a declared
aim, and in order to achieve it, large investments
have been considered necessary. As the extent of
domestic savings has not been sufficient in scope,
foreign capital—especially loan capital—has of
necessity constituted a vital factor in the actual
planning of economic policy. In the decade 1957
—1967, Norway’s net debt to foreign countries
has grown from some 9,000 million Norwegian
crowns to 10,700 million Norwegian crowns. The
bulk of thi sincrease comes in shipping, which in-
creased its net debt to foreign countries from
7,300 millian to 8,200 million Norwegian crowns.
Considerable foreign capital has also been im-
ported for the building of power stations, while
state and municipal organs have also made use
of foreign capital.
Capital imports have assumed various forms,
but in this resume we shall deal mainly with direct
investment from abroad.
During the first decade after the war only a
few new concerns were established in Norway
with the help of foreign capital investments. Un-
like several other countries, Norwegian authorities
made no effort to attract foreign firms to Norway.
On account of the severe restrictions imposed on
the economy both externally and internally, such
as dividend restraint etc. foreign firms and in-
vestors were not particularly keen to make any
direct investment in Norway. Increased foreign
participation during the 1960’s can in part be
ascribed to a more liberal attitude all round on
the part of the Norwegian authorities, and to a
change in attitude toward foreign investments,
e.g. with the introduction of information and
contact activity aimed at attracting foreign indus-
try to this country. In 1959 a committee was set
up, with former UN secretary-general Trygve Lie
as its chairman, with a view to encouraging for-
eign investment in Norway. Government circles,
moreover, expressed the wish that foreign capital
and know-how might help to promote the con-
tinued economic growth of the country. For her
part Norway could point to a comparatively rapid-
ly expanding economy with scope for profitable
investment, especially in spheres where the coun-
try enjoyed certain natural advantages. Foreign
trade had been liberalised, and the restrictions on
international transfer of capital somewhat relaxed.
A number of laws and provisions determine
direct foreign investments in Norway. Apart from
the concessions laws (laws restricting the aquisi-
tion of property in Norway) may be mentioned the
Trading Act, the Currency Control Act, the Money
Credit Act, the Building and Construction Trades
Act, and the Companies Act. In this brief account
a few words will be said on the concession laws
and the currency regulations.
The concession laws are of fundamental im-
portance to aliens setting up business in Norway.
As a general rule all forms of business or in-
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