§ 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.
Page 1181 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 5401

(8) Peace Corps

Establishment of Peace Corps programs.

(9) Support for indigenous credit unions

Support for the establishment of indigenous

credit unions.

(10) Generalized System of Preferences

Eligibility for trade benefits under the Generalized System of Preferences.

(11) Most favored nation trade status

The granting of temporary or permanent

nondiscriminatory treatment (commonly referred to as ‘‘most favored nation status’’) to

the products of an East European country

through the application of the criteria and

procedures established by section 2432 of title

19 (commonly referred to as the ‘‘JacksonVanik amendment’’).

(12) Overseas Private Investment Corporation

Programs of the Overseas Private Investment Corporation.

(13) Export-Import Bank programs

Programs of the Export-Import Bank of the

United States.

(14) Trade and Development Program activities

Trade and Development Agency activities

under the Foreign Assistance Act of 1961 [22

U.S.C. 2151 et seq.].

(15) Investment treaties

Negotiation of bilateral investment treaties.

(16) Special tax treatment of below-market

loans

Exempting bonds from Internal Revenue

Code [title 26] rules relating to below-market

loans.

(17) Exchange activities

Expanded exchange activities under the Fulbright, International Visitors, and other programs conducted by the United States Information Agency.

(18) Cultural centers

Contributions toward the establishment of

reciprocal cultural centers that can facilitate

educational and cultural exchange and expanded understanding of Western social democracy.

(19) Sister institutions

Establishment of sister institution programs

between American and East European schools

and universities, towns and cities, and other

organizations in such fields as medicine and

health care, business management, environmental protection, and agriculture.

(20) Scholarships

Scholarships to enable students to study in

the United States.

(21) Science and technology exchanges

Grants for the implementation of bilateral

agreements providing for cooperation in

science and technology exchange.

(22) Assistance for democratic institutions

Assistance designed to support the development of legal, legislative, electoral, journalistic, and other institutions of free, pluralist

societies.

(23) Environmental assistance

Environmental assistance directed at overcoming crucial deficiencies in air and water

quality and other determinants of a healthful

society.

(24) Medical assistance

Medical assistance specifically targeted to

overcome severe deficiencies in pharmaceuticals and other basic health supplies.

(25) Encouragement for private investment

and voluntary assistance

Encouraging private investment and voluntary private assistance, using a variety of

means including a SEED Information Center

System and the provision by the Department

of Defense of transportation for private nonfinancial contributions.

(Pub. L. 101–179, §2, Nov. 28, 1989, 103 Stat. 1299;

Pub. L. 102–549, title II, §202(e), Oct. 28, 1992, 106

Stat. 3658.)

REFERENCES IN TEXT

This chapter, referred to in subsec. (b), was in the

original ‘‘this Act’’, meaning Pub. L. 101–179, Nov. 28,

1989, 103 Stat. 1298, which is classified principally to

this chapter. For complete classification of this Act to

the Code, see Short Title note set out below and Tables.

The Foreign Assistance Act of 1961, referred to in subsec. (c)(14), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424,

as amended, which is classified principally to chapter

32 (§2151 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set

out under section 2151 of this title and Tables.

AMENDMENTS

1992—Subsec. (c)(14). Pub. L. 102–549 substituted

‘‘Agency’’ for ‘‘Program’’.

SHORT TITLE

Section 1(a) of Pub. L. 101–179 provided that: ‘‘This

Act [enacting this chapter and section 2185 of this title,

amending sections 2184 and 2199 of this title, section

1757 of Title 12, Banks and Banking, and section 2462 of

Title 19, Customs Duties, enacting provisions set out as

notes under sections 2185, 2199, and 2421 of this title,

section 635 of Title 12, and section 7872 of Title 26, Internal Revenue Code, and amending provisions set out

as a note under section 7872 of Title 26] may be cited as

the ‘Support for East European Democracy (SEED) Act

of 1989’.’’

EX. ORD. NO. 12703. SUPPORT FOR EAST EUROPEAN

DEMOCRACY (SEED) PROGRAM

Ex. Ord. No. 12703, Feb. 20, 1990, 55 F.R. 6351, provided:

By the authority vested in me as President by the

Constitution and laws of the United States of America,

including the Support for East European Democracy

(SEED) Act (P.L. 101–179, hereinafter referred to as the

‘‘Act’’) [22 U.S.C. 5401 et seq.] and section 301 of Title 3

of the United States Code, it is hereby ordered as follows:

SECTION 1. SEED Program Coordinator. The functions

conferred by Title VII of the Act [22 U.S.C. 5471 et seq.]

relating to reports to the Congress are hereby delegated to the Coordinator of the SEED Program. The

Coordinator is authorized to assign responsibility for

particular aspects of the reports to appropriate agencies.

SEC. 2. United States Agency for International Development. The functions conferred upon the President by

section 201 of the Act [22 U.S.C. 5421] relating to Enter-
§ 5402 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 1182

prise Funds for Poland and Hungary are hereby delegated to the Administrator of the United States Agency for International Development. The Administrator

shall consult, as appropriate, with other relevant agencies in exercising the functions herein delegated.

SEC. 3. Department of Commerce. The functions conferred upon the President by section 602 of the Act [22

U.S.C. 5462] regarding the establishment of a SEED Information Center System in cooperation with the Governments of Poland and Hungary are hereby delegated

to the Secretary of Commerce. This authority is to be

exercised in consultation with the SEED Program Coordinator and in consultation with other agencies as

appropriate.

SEC. 4. Department of the Treasury. The functions conferred upon the President by section 104 of the Act [22

U.S.C. 5414] regarding debt reduction of certain East

European countries are hereby delegated to the Secretary of the Treasury. The Secretary shall consult, as

appropriate, with other relevant agencies in exercising

the functions herein delegated.

GEORGE BUSH.

§ 5402. Scope of authority

(a) General authorization

The President is authorized to conduct activities for any East European country that are

similar to any activity authorized by this chapter to be conducted in Poland or Hungary (excluding those authorized by section 5412 of this

title or the amendments made by sections 301

and 304) if such similar activities would effectively promote a transition to market-oriented

democracy.

(b) Administration of justice programs

In order to strengthen the administration of

justice in East European countries, the President may exercise the same authorities with respect to those countries as are available under

section 2346c of this title, subject to the limitations and requirements of that section, other

than subsection (c) and the last two sentences of

subsection (e).

(c) ‘‘East European country’’ defined

For purposes of this chapter, the term ‘‘East

European country’’ includes Albania, Bulgaria,

the Czech and Slovak Federal Republic, Estonia,

Hungary, Latvia, Lithuania, Poland, Romania,

and states that were part of the former Socialist

Federal Republic of Yugoslavia.

(Pub. L. 101–179, §3, as added Pub. L. 102–511,

title IX, §903(a), 106 Stat. 3355.)

REFERENCES IN TEXT

This chapter, referred to in subsecs. (a) and (c), was

in the original ‘‘this Act’’, meaning Pub. L. 101–179,

Nov. 28, 1989, 103 Stat. 1298, which is classified principally to this chapter. For complete classification of

this Act to the Code, see Short Title note set out under

section 5401 of this title and Tables.

Sections 301 and 304, referred to in subsec. (a), are

sections 301 and 304 of Pub. L. 101–179, title III, Nov. 28,

1989, 103 Stat. 1311, 1312. Section 301 amended section

2462 of Title 19, Customs Duties. Section 304 enacted

section 2185 of this title, amended section 2184 of this

title, and enacted provisions set out as a note under

section 2185 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 12 section 635.

SUBCHAPTER I—STRUCTURAL

ADJUSTMENT

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 5471 of this

title.

§ 5411. Multilateral support for structural adjustment in Poland and Hungary

(a) Multilateral assistance for Poland and Hungary

(1) In general

To the extent that Poland and Hungary continue to evolve toward pluralism and democracy and to develop and implement comprehensive economic reform programs, the United

States Government shall take the leadership

in mobilizing international financial institutions, in particular the International Monetary Fund and the International Bank for Reconstruction and Development and its affiliated institutions in the World Bank group, to

provide timely and appropriate resources to

help Poland and Hungary.

(2) World Bank structural adjustment loan for

Poland

In furtherance of paragraph (1), the Secretary of the Treasury shall direct the United

States Executive Director of the International

Bank for Reconstruction and Development to

urge expeditious approval and disbursement

by the Bank of a structural adjustment loan

to Poland in an appropriate amount in time to

facilitate the implementation of major economic reforms scheduled for early 1990, including the termination of energy, export, and agricultural subsidies and wage indexation.

(b) Stabilization assistance, debt relief, and agricultural assistance for Poland

To the extent that Poland continues to evolve

toward pluralism and democracy and to develop

and implement comprehensive economic reform

programs, the United States Government shall

do the following:

(1) Stabilization assistance

The United States Government, in conjunction with other member governments of the

Organization of Economic Cooperation and Development (OECD) and international financial

institutions (including the International Monetary Fund), shall support the implementation

of a plan of the Government of Poland to attack hyperinflation and other structural economic problems, address pressing social problems, carry out comprehensive economic reform, and relieve immediate and urgent balance of payments requirements in Poland,

through the use of mechanisms such as—

(A) the Exchange Stabilization Fund pursuant to section 5302 of title 31 and in accordance with established Department of the

Treasury policies and procedures; and

(B) the authority provided in section

5412(c) of this title.

(2) Debt relief

The United States Government—

(A) shall urge all members of the ‘‘Paris

Club’’ of creditor governments and other