Such a settlement would remove Moscow from the restrictive provisions of the Johnson Debt Default Act of 1934, thereby permitting the Soviet issuance of bonds and other debt instruments in the United States and on a dollar-denominated basis.
Worse yet, the balance shifts even more decidedly in the Soviets' favor if, as a result of this settlement, Moscow can begin issuing bonds and other debt instruments in the United States and on a dollar-denominated basis off-shore.