I

104TH CONGRESS

2D SESSION H. R. 3116

To provide for the phase-out of existing private sector development enterprise

funds for foreign countries and to prohibit the establishment of, or

the support for, new private sector development enterprise funds, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 19, 1996

Mr. TRAFICANT introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on

Banking and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions

as fall within the jurisdiction of the committee concerned

A BILL

To provide for the phase-out of existing private sector development enterprise funds for foreign countries and to

prohibit the establishment of, or the support for, new

private sector development enterprise funds, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. PHASE-OUT OF EXISTING PRIVATE SECTOR DE4 VELOPMENT ENTERPRISE FUNDS.

5 (a) IN GENERAL.—Beginning 2 years after the date

6 of the enactment of this Act, none of the funds appro-
2

•HR 3116 IH

1 priated or otherwise available to the United States Agency

2 for International Development may be obligated or ex3 pended for assistance to the following enterprise funds (or

4 any successor enterprise funds):

5 (1) The Albanian-American Enterprise Fund.

6 (2) The Baltic-American Enterprise Fund.

7 (3) The Bulgarian American Enterprise Fund.

8 (4) The Central Asian-American Enterprise

9 Fund.

10 (5) The Czech and Slovak American Enterprise

11 Fund.

12 (6) The Hungarian-American Enterprise Fund.

13 (7) The Polish-American Enterprise Fund.

14 (8) The Romanian American Enterprise Fund.

15 (9) The Southern Africa Regional Enterprise

16 Fund.

17 (10) The U.S. Russia Investment Fund.

18 (11) The Western NIS Enterprise Fund.

19 (b) TRANSITION.—The President (acting through the

20 Administrator of the United States Agency for Inter21 national Development), in conjunction with the board of

22 directors of each enterprise fund referred to in paragraphs

23 (1) through (11) of subsection (a), shall, as soon as prac24 ticable after the date of the enactment of this Act, take
3

•HR 3116 IH

1 the necessary steps to wind up the affairs of each such

2 enterprise fund.

3 (c) REPEALS.—

4 (1) EXISTING ENTERPRISE FUNDS.—(A) The

5 following provisions of law are hereby repealed:

6 (i) Subsection (c) of section 498B of the

7 Foreign Assistance Act of 1961 (22 U.S.C.

8 2295b(c)).

9 (ii) Section 201 of the Support for East

10 European Democracy (SEED) Act of 1989 (22

11 U.S.C. 5421).

12 (B) The repeals made by subparagraph (A)

13 shall take effect 2 years after the date of the enact14 ment of this Act.

15 (2) TRANS-CAUCASUS ENTERPRISE FUND.—

16 Subsection (t) under the heading ‘‘Assistance for the

17 New Independent States of the Former Soviet

18 Union’’ of the Foreign Operation, Export Financing,

19 and Related Programs Appropriations Act, 1996, is

20 hereby repealed.

21 SEC. 2. PROHIBITION ON NEW PRIVATE SECTOR DEVELOP22 MENT ENTERPRISE FUNDS.

23 (a) IN GENERAL.—Beginning on March 12, 1996,

24 the President may not provide for the establishment of,

25 or the support for, any enterprise fund for the purposes
4

•HR 3116 IH

1 of promoting private sector development, or promoting

2 policies and practices conducive to private sector develop3 ment, in any foreign country.

4 (b) DEFINITION.—For purposes of this section, the

5 term ‘‘enterprise fund’’ means a private, nonprofit organi6 zation designated by the President in accordance with pro7 cedures applicable to the procedures used to designate en8 terprise funds under section 201 of the Support for East

9 European Democracy (SEED) Act of 1989 (22 U.S.C.

10 5421).

11 SEC. 3. PROHIBITION ON ASSISTANCE FOR EUROPEAN

12 BANK FOR RECONSTRUCTION AND DEVELOP13 MENT FUNDS AND OTHER INTERNATIONAL

14 FINANCIAL INSTITUTION FUNDS.

15 (a) PROHIBITION ON UNITED STATES ASSIST16 ANCE.—Beginning 2 years after the date of the enactment

17 of this Act, none of the funds appropriated or otherwise

18 available to the United States Agency for International

19 Development may be obligated or expended for assistance

20 to any private sector development enterprise fund in which

21 the European Bank for Reconstruction and Development

22 (or any other international financial institution of which

23 the United States is a member) participates, or which is

24 financed by that Bank (or international financial institu-
5

•HR 3116 IH

1 tion), including the following enterprise funds (or any suc2 cessor enterprise funds):

3 (1) The Russia Small Business Fund.

4 (2) The Regional Venture Fund for the Lower

5 Volga Region.

6 (3) The Slovenia Development Capital Fund.

7 (b) OPPOSITION TO MULTILATERAL ASSISTANCE.—

8 The President shall instruct the United States Executive

9 Director of the European Bank for Reconstruction and

10 Development and any other international financial institu11 tion of which the United States is a member to use the

12 voice and vote of the United States to oppose the partici13 pation of that Bank or institution in, or financing by that

14 Bank or institution of, any private sector development en15 terprise fund, including any enterprise fund referred to in

16 paragraphs (1) through (3) of subsection (a).

Æ