G.M. Trading Corporation - Page 12

                                       - 12 -                                         
          opportunity for petitioner in Mexico (i.e., as a reduction in or            
          elimination of restrictions that otherwise would have prohibited            
          petitioner's investment in Mexico).  Viewed in this light, the              
          1,736,694,000 bargained-for Mexican pesos received in this                  
          transaction may be regarded, in some respects, as more valuable             
          to petitioner than pesos that petitioner could have obtained on             
          the open market because there were attached to these pesos                  
          special, pre-approved business opportunities for petitioner in              
          Mexico and because the pesos carried with them an interest rate             
          that protected petitioner from risks associated with inflation in           
          Mexico and with fluctuations in the US$/Mex$ exchange rate.  The            
          so-called "restrictions" attached to the pesos involved in this             
          transaction, therefore, in this respect served as enhancements to           
          the value of the pesos.                                                     

          Ownership of US$1,200,000 Mexican Government Debt                           
               Petitioner and the amici curiae argue that only banks could            
          legally own the US$1,200,000 Mexican Government debt and that               
          petitioner, therefore, should not be treated as having acquired             
          the debt and as having transferred the debt to petitioner.                  
          Petitioner and the amici curiae also argue that if petitioner is            
          to be regarded as having acquired the debt, petitioner's interest           
          therein should be treated as so fleeting and momentary that it              
          should be disregarded.                                                      
               Respondent acknowledges provisions of the Restructure                  
          Agreement that place some limitations on assignment of Mexican              
          Government debt, but respondent notes that none of these                    




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011