OPEC Financial Holdings in the United States

The Organization of Petroleum Exporting Countries' (OPEC) finanical holdings in the United States had caused concern that these investments might give the OPEC nations a "money" weapon to accompany their near monopoly control of the supply of oil. On the other hand, these investments may work to benefit the United States by giving OPEC nations a stake in U.S. economic well being, providing needed investment capital for the United States, and providing additional strengths in U.S. relations with the oil producing nations. Although data on individual OPEC countries are not always reported, the collection systems for U.S. banking and trade data are adequate. The Department of Treasury offers foreign governments and official institutions certain nonmarketable securities called "market-based specials." OPEC countries have not purchased any of these securities. The possible impact of the liquidation by OPEC nations of their deposits in U.S. banks and their holdings of U.S. Government securities would disrupt U.S. financial markets only temporarily. Information on OPEC deposits and loans in U.S. banks by country has been confidential. The information has been restricted on the ground that legislation barred the disclosure of confidential information unless the head of the appropriate executive agency or department determined that withholding of the information is contrary to the national interest. Two recent cases established that providing confidential information to Congress as a rule is not a disclosure to the public. The purpose of most statutory provisions regulating access to confidential information is to avoid public disclosure.