host countries, without prejudice to their participation in activities that are permitted by the laws, regulations or established administrative practices of host countries." "17. Transnational corporations shall not engage in activities of a political nature which are not permitted by the laws or established policies and administrative practices of the countries in which they operate." It was felt that the above provisions captured the essence of the basic idea of the prohibition against corporate interference in internal polJtical affairs and that it was impractical to itemize categories oc prohibited activJties. Howev~~, with regard to paragraph 16, it was suggested thc1-t the words "permissible under ,the laws" be substituted for the words "permitted by the laws", since activities which have not been expressly permitted may nevertheless be permissible because they have not been explicitly prohibited. I ••• _EiC .10/1990/5 English Page 31 3. Respect for national sovereignty The main issue which arose with respect of the discussion of paragraph 7 of the Chairman's text was whether the provision _on permanent sovereignty over natural resources would be unequivocally qualified by a reference to international law. Since the basic approach of the Commission was to stipulate one omnibus provision on international law/obligations (para. 49), a clear linkage between paragraph 7 and paragraph 49 was recognized. The text of paragraph 7 (see below) was considered acceptab le if read in conjunction with paragraph 49 on international law and also paragraph 6, which underscores the interrelated nature of all provisions of the code. · · Paragraph 7 states: "Transnational corporations shall respect the national sovereignty of the countries in which they operate and the right of each State to exercise its permanent sovereignty over its natural wealth and resources." 4. Nationalization and compensation The sovereign right of a State to nationalize or expropriate the 
**Analysis**
The text discusses the relationship between transnational corporations and host countries, specifically the obligations of transnational corporations to respect national sovereignty, refrain from political interference, and respect the sovereign right of states to nationalize or expropriate natural resources. This suggests that the text is primarily focused on the economic and political aspects of international relations.

**Category**
International trade, Economic development