They warned that it would discourage foreigners from investing in the United States, where total foreign investment approaches $2 trillion.

"These responses are not based on thorough or detailed studies, and would discourage foreigners from investing in the U.S. at a time when the U.S. needs to continue to attract foreign investment."

Its continuing fall in international markets has discouraged foreigners from buying American securities.

But poor infrastructure and political uncertainty have discouraged foreigners from investing in the self-proclaimed "workers' paradise," although it is endowed with a cheap and disciplined labor force.

The rise came amid concerns about stronger economic growth and fears that the dollar's decline would discourage foreigners from investing in Treasuries.

President Jacques Chirac and Prime Minister Alain Juppe said the conservative Government had no choice but to enforce strict laws intended to discourage foreigners from sneaking into the country.

The F.E.C. also serves to discourage foreigners from exchanging their currency on the street for R.M.B. at black market rates.

Until the dollar stabilizes at a new level, a declining dollar diminishes the value of those investments, and that could discourage foreigners from buying the securities.

In its complaint, the city says the purpose of the provision, according to Congress, was to encourage self-sufficiency among immigrants, and discourage foreigners from entering the country in search of cash benefits.

He is concerned that too-rigid regulations in the United States could discourage foreigners from selling their securities in the domestic markets, making the United States less competitive and increasing the cost of raising capital.