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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3225 Received in Senate (RDS)]

103d CONGRESS
  1st Session
                                H. R. 3225

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            November 19 (legislative day, November 2), 1993

                                Received

_______________________________________________________________________

                                 AN ACT

 
   To support the transition to nonracial democracy in South Africa.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``South African Democratic Transition 
Support Act of 1993''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) After decades of apartheid, South Africa has entered a 
        new era which presents a historic opportunity for a transition 
        to a peaceful, stable, and democratic future.
            (2) The United States policy of economic sanctions toward 
        the apartheid government of South Africa, as expressed in the 
        Comprehensive Anti-Apartheid Act of 1986, helped bring about 
        reforms in that system of government and has facilitated the 
        establishment of a nonracial government.
            (3) Through broad and open negotiations, the parties in 
        South Africa have reached a landmark agreement on the future of 
        their country. This agreement includes the establishment of a 
        Transitional Executive Council and the setting of a date for 
        nonracial elections.
            (4) The international community has a vital interest in 
        supporting the transition from apartheid toward nonracial 
        democracy.
            (5) The success of the transition in South Africa is 
        crucial to the stability and economic development of the 
        southern African region.
            (6) Nelson Mandela of the African National Congress and 
        other representative leaders in South Africa have declared that 
        the time has come when the international community should lift 
        all economic sanctions against South Africa.
            (7) In light of recent developments, the continuation of 
        these economic sanctions is detrimental to persons 
        disadvantaged by apartheid.
            (8) Those calling for the lifting of economic sanctions 
        against South Africa have made clear that they do not seek the 
        immediate termination of the United Nations-sponsored special 
        sanctions relating to arms transfers, nuclear cooperation, and 
        exports of oil. The Ad Hoc Committee on Southern Africa of the 
        Organization of African Unity, for example, has urged that the 
        oil embargo established pursuant to a 1986 General Assembly 
        resolution be lifted after the establishment and commencement 
        of the work of the Transitional Executive Council.

SEC. 3. UNITED STATES POLICY.

    It is the sense of the Congress that--
            (1) the United States should--
                    (A) strongly support the Transitional Executive 
                Council in South Africa,
                    (B) encourage rapid progress toward the 
                establishment of a nonracial democratic government in 
                South Africa, and
                    (C) support a consolidation of democracy in South 
                Africa through democratic elections for an interim 
                government and a new nonracial constitution;
            (2) the United States should continue to provide assistance 
        to support the transition to a nonracial democracy in South 
        Africa, and should urge international financial institutions 
        and other donors to also provide such assistance;
            (3) to the maximum extent practicable, the United States 
        should consult closely with international financial 
        institutions, other donors, and South African entities on a 
        coordinated strategy to support the transition to a nonracial 
        democracy in South Africa;
            (4) in order to provide ownership and managerial 
        opportunities, professional advancement, training, and 
        employment for disadvantaged South Africans and to respond to 
        the historical inequities created under apartheid, the United 
        States should--
                    (A) promote the expansion of private enterprise and 
                free markets in South Africa,
                    (B) encourage the South African private sector to 
                take a special responsibility and interest in providing 
                such opportunities, advancement, training, and 
                employment for disadvantaged South Africans,
                    (C) encourage United States private sector 
                investment in and trade with South Africa,
                    (D) urge United States investors to develop a 
                working partnership with representative organs of South 
                African civil society, particularly churches and trade 
                unions, in promoting responsible codes of corporate 
                conduct and other measures to address the historical 
                inequities created under apartheid;
            (5) the United States should urge the Government of South 
        Africa to liberalize its trade and investment policies to 
        facilitate the expansion of the economy, and to shift resources 
        to meet the needs of disadvantaged South Africans;
            (6) the United States should promote cooperation between 
        South Africa and other countries in the region to foster 
        regional stability and economic growth; and
            (7) the United States should demonstrate its support for an 
        expedited transition to, and should adopt a long term policy 
        beneficial to the establishment and perpetuation of, a 
        nonracial democracy in South Africa.

SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND OTHER MEASURES DIRECTED 
              AT SOUTH AFRICA.

    (a) Comprehensive Anti-Apartheid Act.--
            (1) In general.--All provisions of the Comprehensive Anti-
        Apartheid Act of 1986 (22 U.S.C. 5001 and following) are 
        repealed as of the date of enactment of this Act, except for 
        the sections specified in paragraph (2).
            (2) Effective date of repeal of code of conduct 
        requirements.--Sections 1, 3, 203(a), 203(b), 205, 207, 208, 
        601, 603, and 604 of the Comprehensive Anti-Apartheid Act of 
        1986 are repealed as of the date on which the President 
        certifies to the Congress that an interim government, elected 
        on a nonracial basis through free and fair elections, has taken 
        office in South Africa.
            (3) Conforming amendments.--(A) Section 3 of the 
        Comprehensive Anti-Apartheid Act of 1986 is amended by striking 
        paragraphs (2) through (4) and paragraphs (7) through (9), by 
        inserting ``and'' at the end of paragraph (5), and by striking 
        ``; and'' at the end of paragraph (6) and inserting a period.
            (B) The following provisions of the Foreign Assistance Act 
        of 1961 that were enacted by the Comprehensive Anti-Apartheid 
        Act of 1986 are repealed: subsections (e)(2), (f), and (g) of 
        section 116 (22 U.S.C. 2151n); section 117 (22 U.S.C. 2151o), 
        relating to assistance for disadvantaged South Africans; and 
        section 535 (22 U.S.C. 2346d). Section 116(e)(1) of the Foreign 
        Assistance Act of 1961 is amended by striking ``(1)''.
    (b) Other Provisions.--The following provisions are repealed or 
amended as follows:
            (1) Subsections (c) and (d) of section 802 of the 
        International Security and Development Cooperation Act of 1985 
        (99 Stat. 261) is repealed.
            (2) Section 211 of the Foreign Relations Authorization Act, 
        Fiscal Years 1986 and 1987 (99 Stat. 432) is repealed, and 
        section 1(b) of that Act is amended by striking the item in the 
        table of contents relating to section 211.
            (3) Sections 1223 and 1224 of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989 (101 Stat. 1415) 
        is repealed, and section 1(b) of that Act is amended by 
        striking the items in the table of contents relating to 
        sections 1223 and 1224.
            (4) Section 362 of the Foreign Relations Authorization Act, 
        Fiscal Years 1992 and 1993 (105 Stat. 716) is repealed, and 
        section 2 of that Act is amended by striking the item in the 
        table of contents relating to section 362.
            (5) Section 2(b)(9) of the Export-Import Bank Act of 1945 
        (12 U.S.C. 635(b)(9)) is repealed.
            (6) Section 43 of the Bretton Woods Agreements Act (22 
        U.S.C. 286aa) is amended by repealing subsection (b) and by 
        striking ``(a)''.
            (7) Section 330 of H.R. 5205 of the 99th Congress 
        (Department of Transportation and Related Agencies 
        Appropriations Act, 1987) (22 U.S.C. 5056a) as incorporated by 
        reference in section 101(l) of Public Law 99-500 and Public Law 
        99-591, and made effective as if enacted into law by section 
        106 of Public Law 100-202, is repealed.
            (8)(A) Section 901(j)(2)(C) of the Internal Revenue Code of 
        1986 (26 U.S.C. 901(j)(2)(C)) is repealed.
            (B) Subparagraph (A) shall not be construed as affecting 
        any of the transitional rules contained in Revenue Ruling 92-62 
        which apply by reason of the termination of the period for 
        which section 901(j) of the Internal Revenue Code of 1986 was 
        applicable to South Africa.
            (9) The table in section 502(b) of the Trade Act of 1974 
        (19 U.S.C. 2462(b)) is amended by striking ``Republic of South 
        Africa''.
    (c) Sanctions Measures Adopted by State or Local Governments or 
Private Entities.--
            (1) Policy regarding recission.--The Congress urges all 
        State or local governments and all private entities in the 
        United States that have adopted any restriction on economic 
        interactions with South Africa, or any policy discouraging such 
        interaction, to rescind such restriction or policy.
            (2) Repeal of provisions relating to withholding federal 
        funds.--Effective October 1, 1995, the following provisions are 
        repealed:
                    (A) The undesignated paragraph entitled ``state and 
                local anti-apartheid policies'' in chapter IX of the 
                Dire Emergency Supplemental Appropriations and 
                Transfers, Urgent Supplementals, and Correcting 
                Enrollment Errors Act of 1989 (22 U.S.C. 5117).
                    (B) Section 210 of the Urgent Supplemental 
                Appropriations Act, 1986 (100 Stat. 749).
    (d) Continuation of UN Special Sanctions.--It is the sense of the 
Congress that the United States should continue to respect United 
Nations Security Council resolutions on South Africa, including the 
resolution providing for a mandatory embargo on arms sales to South 
Africa and the resolutions relating to the import of arms, restricting 
exports to the South African military and police, and urging states to 
refrain from nuclear cooperation that would contribute to the 
manufacture and development by South Africa of nuclear weapons or 
nuclear devices.

SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION TO A NONRACIAL 
              DEMOCRACY.

    (a) In General.--The President is authorized and encouraged to 
provide assistance under chapter 10 of part I of the Foreign Assistance 
Act of 1961 (relating to the Development Fund for Africa) or chapter 4 
of part II of that Act (relating to the Economic Support Fund) to 
support the transition to nonracial democracy in South Africa. Such 
assistance shall--
            (1) focus on building the capacity of disadvantaged South 
        Africans to take their rightful place in the political, social, 
        and economic systems of their country;
            (2) give priority to working with and through South African 
        nongovernmental organizations whose leadership and staff 
        represent the majority population and which have the support of 
        the disadvantaged communities being served by such 
        organizations;
            (3) in the case of education programs--
                    (A) be used to increase the capacity of South 
                African institutions to better serve the needs of 
                individuals disadvantaged by apartheid;
                    (B) emphasize education within South Africa to the 
                extent that assistance takes the form of scholarships 
                for disadvantaged South African students; and
                    (C) fund nontraditional training activities;
            (4) support activities to prepare South Africa for 
        elections, including voter and civic education programs, 
        political party building, and technical electoral assistance;
            (5) support activities and entities, such as the Peace 
        Accord structures, which are working to end the violence in 
        South Africa; and
            (6) support activities to promote human rights, 
        democratization, and a civil society.
    (b) Government of South Africa.--
            (1) Limitation on assistance.--Except as provided in 
        paragraph (2), assistance provided in accordance with this 
        section may not be made available to the Government of South 
        Africa, or organizations financed and substantially controlled 
        by that government, unless the President certifies to the 
        Congress that an interim government that was elected on a 
        nonracial basis through free and fair elections has taken 
        office in South Africa.
            (2) Exceptions.--Notwithstanding paragraph (1), assistance 
        may be provided for--
                    (A) the Transitional Executive Council;
                    (B) South African higher education institutions, 
                particularly those traditionally disadvantaged by 
                apartheid policies; and
                    (C) any other organization, entity, or activity if 
                the President determines that the assistance would 
                promote the transition to nonracial democracy in South 
                Africa.
        Any determination under subparagraph (C) should be based on 
        consultations with South African individuals and organizations 
        representative of the majority population in South Africa 
        (particularly consultations through the Transitional Executive 
        Council) and consultations with the appropriate congressional 
        committees.
    (c) Ineligible Organizations.--
            (1) Acts of violence.--An organization that has engaged in 
        armed struggle or other acts of violence shall not be eligible 
        for assistance provided in accordance with this section unless 
        that organization is committed to a suspension of violence in 
        the context of progress toward nonracial democracy.
            (2) Views inconsistent with democracy and free 
        enterprise.--Assistance provided in accordance with this 
        section may not be made available to any organization that has 
        espoused views inconsistent with democracy and free enterprise 
        unless such organization is engaged actively and positively in 
        the process of transition to a nonracial democracy and such 
        assistance would advance the United States objective of 
        promoting democracy and free enterprise in South Africa.

SEC. 6. UNITED STATES INVESTMENT AND TRADE.

    (a) Tax Treaty.--The President should begin immediately to 
negotiate a tax treaty with South Africa to facilitate United States 
investment in that country.
    (b) OPIC.--The President should immediately initiate negotiations 
with the Government of South Africa for an agreement authorizing the 
Overseas Private Investment Corporation to carry out programs with 
respect to South Africa in order to expand United States investment in 
that country.
    (c) Trade and Development Agency.--In carrying out section 661 of 
the Foreign Assistance Act of 1961, the Director of the Trade and 
Development Agency should provide additional funds for activities 
related to projects in South Africa.
    (d) Export-Import Bank.--The Export-Import Bank of the United 
States should expand its activities in connection with exports to South 
Africa.
    (e) Promoting Disadvantaged Enterprises.--
            (1) Investment and trade programs.--Each of the agencies 
        referred to in subsections (b) through (d) should take active 
        steps to encourage the use of its programs to promote business 
        enterprises in South Africa that are majority-owned by South 
        Africans disadvantaged by apartheid.
            (2) United states government procurement.--To the extent 
        not inconsistent with the obligations of the United States 
        under any international agreement, the Secretary of State and 
        the head of any other department or agency of the United States 
        carrying out activities in South Africa shall, to the maximum 
        extent practicable, in procuring goods or services, make 
        affirmative efforts to assist business enterprises having more 
        than 50 percent beneficial ownership by South African blacks or 
        other nonwhite South Africans, notwithstanding any law relating 
        to the making or performance of, or the expenditure of funds 
        for, United States Government contracts.

SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PROGRAMS.

    The Director of the United States Information Agency should use the 
authorities of the United States Information and Educational Exchange 
Act of 1948 to promote the development of a nonracial democracy in 
South Africa.

SEC. 8. OTHER COOPERATIVE AGREEMENTS.

    In addition to the actions specified in the preceding sections of 
this Act, the President should seek to conclude cooperative agreements 
with South Africa on a range of issues, including cultural and 
scientific issues.

SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND OTHER DONORS.

    (a) In General.--The President should encourage other donors, 
particularly Japan and the European Community countries, to expand 
their activities in support of the transition to nonracial democracy in 
South Africa.
    (b) International Financial Institutions.--The Secretary of the 
Treasury should instruct the United States Executive Director of each 
relevant international financial institution, including the 
International Bank for Reconstruction and Development and the 
International Development Association, to urge that institution to 
initiate or expand its lending and other financial assistance 
activities to South Africa in order to support the transition to 
nonracial democracy in South Africa.
    (c) Technical Assistance.--The Secretary of the Treasury should 
instruct the United States Executive Director of each relevant 
international financial institution to urge that institution to fund 
programs to initiate or expand technical assistance to South Africa for 
the purpose of training the people of South Africa in government 
management techniques.

SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

    In carrying out this Act, the President should consult closely with 
South African individuals and organizations representative of the 
majority population in South Africa (particularly consultations through 
the Transitional Executive Council) and others committed to abolishing 
the remnants of apartheid.

            Passed the House of Representatives November 19, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.

                      By Dallas L. Dendy, Jr.,

                                                Assistant to the Clerk.
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