65° - 01.11.1969, Page 10

dustrial establishment involving real estate in
rural areas, which are dependent on electric power
in large quantities, are subject to a state conces-
sion. It should be pointed out, hoowever, that
Norwegians too are to a large extent subject to
the concessions laws.
Norway’s first concession law was passed in
1888. Other were subsequently added, and amend-
ments to existing laws made on a number of oc-
easions as the official views on concession rules
tended to change. At present eight concession
laws are in force; to a large extent these are sup-
plementary, not least within the framework of
the system of public control of industry and trade
which can at the present day be described as the
chief aim of concession legislation. The most im-
portant of these is the Act of Dec. 14th, 1917,
relating to the acquisition of waterfalls, mines
and other real estate, generally referred to as the
ordinary concession law. At the moment, conces-
sion legislation is undergoing a revision.
Currency regulations are based on the Currency
Act of July 14th, 1950, which is a so-called “enab-
ling law”, and the general provisions issued by
the Ministry of Commerce on July 29th, 1955. In
accordance with the OECD liberalisation code on
capital movements, which Norway too has agreed
to honor, direct investments are in principle to
be exempt from currency regulation provisions.
Norway has, however, made a limited reservation
with regard to this obligation. This reservation
only applies to the extent that Norway limits the
rights of aliens to engage in certain activities or
to acquire, own or lease certain kinds of property.
In all cases where permission is given reservations
may be made limiting the investor’s access to the
Norwegian capital market. The reason for this
reservation is among other things the need to
consider investment policy and the allocation of
national domestic resources. The regulation, how-
ever, is liberal in its application.
As far as aliens’ purchases of Norwegian shares
are concerned, these too are in principle allowed
a large measure of liberalisation, in accordance
with the OECD code. In this case, however, Nor-
way has reserved herself fully, though upon an
application being submitted, aliens are as a rule
allowed to undertake such purchases if their ob-
ject in merely to “place” capital. Investments by
foreigners are regarded somewhat less favourably
if, under the guise of a mere portfolio investment,
they are in fact intended to secure for the pur-
chaser a voice in the running of the Norwegian
share-holding company concerned, especially if
these companies are covered by the laws relating
to concessions. In praotice, however, it is often
difficult to distinguish between transactions that
are “active” investments, made with a view to
obtaining a measure of financial control, and
“passive” investments, made merely with a view
to “placing” money.
To illustrate the development in the 1960’s, the
following table lists the nominal value of shares
held by aliens in Norwegian business enterprises
at the concllusion of the year shown (figures have
been supplied by the Central Statistical Bureau):
Apart from the acquisition of shares there are
other forms of “active” investment, such as
long-term loans granted in return for the right to
exercise a measure of influence on the activities,
composition of the board, etc., of a company.
Since 1965 the balance of payments has listed all
active investments made in Norway by aliens. In
1965 these amounted to 229 million kroner, in
1966 to 257, million, in 1967 to 530 million, and
in 1968, 265 million kr.; 316 million kroner of
1960 mill. kr. 1962 mill. kr. 1965 mill. kr. 1966 mill.kr. 1967 mill. kr.
Basic iron and metal industries 80 86 251 240 290
Chemical industry, coal and mineral processing industries 193 210 176 194 205
Electro-technical industry 13 37 49 55 65
Other industry 24 31 68 78 73
Total for industry 310 364 544 567 642
Commodity trade 137 163 226 294 323
Shipping 28 31 35 35 32
Power and water supplies 17 17 16 16 16
Mining 13 13 13 13 15
Miscellaneous 14 11 23 30 26
519 599 857 955 1054
8
65 DEGREES