§ 5401 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 1180

Sec.

5494. Relation of provisions of this chapter to certain provisions of appropriations acts.

5495. Certain uses of excess foreign currencies.

(a) Authority to use.

(b) Purposes for which currency may be

used.

(c) Currencies which may be used.

(d) Where currencies may be used.

(e) Nonapplicability of other provisions

of law.

(f) Requirement for appropriations action.

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 2295b, 2421d of

this title.

§ 5401. Support for East European Democracy

(SEED) Program

(a) SEED Program

The United States shall implement, beginning

in fiscal year 1990, a concerted Program of Support for East European Democracy (which may

also be referred to as the ‘‘SEED Program’’).

The SEED Program shall be comprised of diverse undertakings designed to provide cost-effective assistance to those countries of Eastern

Europe that have taken substantive steps toward institutionalizing political democracy and

economic pluralism.

(b) Objectives of SEED assistance

The President should ensure that the assistance provided to East European countries pursuant to this chapter is designed—

(1) to contribute to the development of

democratic institutions and political pluralism characterized by—

(A) the establishment of fully democratic

and representative political systems based

on free and fair elections,

(B) effective recognition of fundamental

liberties and individual freedoms, including

freedom of speech, religion, and association,

(C) termination of all laws and regulations

which impede the operation of a free press

and the formation of political parties,

(D) creation of an independent judiciary,

and

(E) establishment of non-partisan military, security, and police forces;

(2) to promote the development of a free

market economic system characterized by—

(A) privatization of economic entities,

(B) establishment of full rights to acquire

and hold private property, including land

and the benefits of contractual relations,

(C) simplification of regulatory controls

regarding the establishment and operation

of businesses,

(D) dismantlement of all wage and price

controls,

(E) removal of trade restrictions, including

on both imports and exports,

(F) liberalization of investment and capital, including the repatriation of profits by

foreign investors;

(G) tax policies which provide incentives

for economic activity and investment,

(H) establishment of rights to own and operate private banks and other financial service firms, as well as unrestricted access to

private sources of credit, and

(I) access to a market for stocks, bonds,

and other instruments through which individuals may invest in the private sector; and

(3) not to contribute any substantial benefit—

(A) to Communist or other political parties or organizations which are not committed to respect for the democratic process, or

(B) to the defense or security forces of any

member country of the Warsaw Pact.

(c) SEED Actions

Assistance and other activities under the

SEED Program (which may be referred to as

‘‘SEED Actions’’) shall include activities such

as the following:

(1) Leadership in the World Bank and International Monetary Fund

United States leadership in supporting—

(A) loans by the International Bank for

Reconstruction and Development and its affiliated institutions in the World Bank

group that are designed to modernize industry, agriculture, and infrastructure, and

(B) International Monetary Fund programs

designed to stimulate sound economic

growth.

(2) Currency stabilization loans

United States leadership in supporting

multilateral agreement to provide government-to-government loans for currency stabilization where such loans can reduce inflation and thereby foster conditions necessary

for the effective implementation of economic

reforms.

(3) Debt reduction and rescheduling

Participation in multilateral activities

aimed at reducing and rescheduling a country’s international debt, when reduction and

deferral of debt payments can assist the process of political and economic transition.

(4) Agricultural assistance

Assistance through the grant and

concessional sale of food and other agricultural commodities and products when such assistance can ease critical shortages but not inhibit agricultural production and marketing

in the recipient country.

(5) Enterprise Funds

Grants to support private, nonprofit ‘‘Enterprise Funds’’, designated by the President pursuant to law and governed by a Board of Directors, which undertake loans, grants, equity investments, feasibility studies, technical assistance, training, and other forms of assistance to private enterprise activities in the

Eastern European country for which the Enterprise Fund so is designated.

(6) Labor market-oriented technical assistance

Technical assistance programs directed at

promoting labor market reforms and facilitating economic adjustment.

(7) Technical training

Programs to provide technical skills to assist in the development of a market economy.