II

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.

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

2 This Act may be cited as the ‘‘South African Demo3 cratic Transition Support Act of 1993’’.

4 SEC. 2. FINDINGS.

5 The Congress makes the following findings:

6 (1) After decades of apartheid, South Africa

7 has entered a new era which presents a historic op8 portunity for a transition to a peaceful, stable, and

9 democratic future.

10 (2) The United States policy of economic sanc11 tions toward the apartheid government of South Af12 rica, as expressed in the Comprehensive Anti-Apart13 heid Act of 1986, helped bring about reforms in that

14 system of government and has facilitated the estab15 lishment of a nonracial government.

16 (3) Through broad and open negotiations, the

17 parties in South Africa have reached a landmark

18 agreement on the future of their country. This

19 agreement includes the establishment of a Transi20 tional Executive Council and the setting of a date

21 for nonracial elections.

22 (4) The international community has a vital in23 terest in supporting the transition from apartheid

24 toward nonracial democracy.
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1 (5) The success of the transition in South Afri2 ca is crucial to the stability and economic develop3 ment of the southern African region.

4 (6) Nelson Mandela of the African National

5 Congress and other representative leaders in South

6 Africa have declared that the time has come when

7 the international community should lift all economic

8 sanctions against South Africa.

9 (7) In light of recent developments, the continu10 ation of these economic sanctions is detrimental to

11 persons disadvantaged by apartheid.

12 (8) Those calling for the lifting of economic

13 sanctions against South Africa have made clear that

14 they do not seek the immediate termination of the

15 United Nations-sponsored special sanctions relating

16 to arms transfers, nuclear cooperation, and exports

17 of oil. The Ad Hoc Committee on Southern Africa

18 of the Organization of African Unity, for example,

19 has urged that the oil embargo established pursuant

20 to a 1986 General Assembly resolution be lifted

21 after the establishment and commencement of the

22 work of the Transitional Executive Council.

23 SEC. 3. UNITED STATES POLICY.

24 It is the sense of the Congress that—

25 (1) the United States should—
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1 (A) strongly support the Transitional Ex2 ecutive Council in South Africa,

3 (B) encourage rapid progress toward the

4 establishment of a nonracial democratic govern5 ment in South Africa, and

6 (C) support a consolidation of democracy

7 in South Africa through democratic elections

8 for an interim government and a new nonracial

9 constitution;

10 (2) the United States should continue to pro11 vide assistance to support the transition to a

12 nonracial democracy in South Africa, and should

13 urge international financial institutions and other

14 donors to also provide such assistance;

15 (3) to the maximum extent practicable, the

16 United States should consult closely with inter17 national financial institutions, other donors, and

18 South African entities on a coordinated strategy to

19 support the transition to a nonracial democracy in

20 South Africa;

21 (4) in order to provide ownership and manage22 rial opportunities, professional advancement, train23 ing, and employment for disadvantaged South Afri24 cans and to respond to the historical inequities cre25 ated under apartheid, the United States should—
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1 (A) promote the expansion of private en2 terprise and free markets in South Africa,

3 (B) encourage the South African private

4 sector to take a special responsibility and inter5 est in providing such opportunities, advance6 ment, training, and employment for disadvan7 taged South Africans,

8 (C) encourage United States private sector

9 investment in and trade with South Africa,

10 (D) urge United States investors to de11 velop a working partnership with representative

12 organs of South African civil society, particu13 larly churches and trade unions, in promoting

14 responsible codes of corporate conduct and

15 other measures to address the historical inequi16 ties created under apartheid;

17 (5) the United States should urge the Govern18 ment of South Africa to liberalize its trade and in19 vestment policies to facilitate the expansion of the

20 economy, and to shift resources to meet the needs of

21 disadvantaged South Africans;

22 (6) the United States should promote coopera23 tion between South Africa and other countries in the

24 region to foster regional stability and economic

25 growth; and
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1 (7) the United States should demonstrate its

2 support for an expedited transition to, and should

3 adopt a long term policy beneficial to the establish4 ment and perpetuation of, a nonracial democracy in

5 South Africa.

6 SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND

7 OTHER MEASURES DIRECTED AT SOUTH AF8 RICA.

9 (a) COMPREHENSIVE ANTI-APARTHEID ACT.—

10 (1) IN GENERAL.—All provisions of the Com11 prehensive Anti-Apartheid Act of 1986 (22 U.S.C.

12 5001 and following) are repealed as of the date of

13 enactment of this Act, except for the sections speci14 fied in paragraph (2).

15 (2) EFFECTIVE DATE OF REPEAL OF CODE OF

16 CONDUCT REQUIREMENTS.—Sections 1, 3, 203(a),

17 203(b), 205, 207, 208, 601, 603, and 604 of the

18 Comprehensive Anti-Apartheid Act of 1986 are re19 pealed as of the date on which the President certifies

20 to the Congress that an interim government, elected

21 on a nonracial basis through free and fair elections,

22 has taken office in South Africa.

23 (3) CONFORMING AMENDMENTS.—(A) Section

24 3 of the Comprehensive Anti-Apartheid Act of 1986

25 is amended by striking paragraphs (2) through (4)
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1 and paragraphs (7) through (9), by inserting ‘‘and’’

2 at the end of paragraph (5), and by striking ‘‘; and’’

3 at the end of paragraph (6) and inserting a period.

4 (B) The following provisions of the Foreign As5 sistance Act of 1961 that were enacted by the Com6 prehensive Anti-Apartheid Act of 1986 are repealed:

7 subsections (e)(2), (f), and (g) of section 116 (22

8 U.S.C. 2151n); section 117 (22 U.S.C. 2151o), re9 lating to assistance for disadvantaged South Afri10 cans; and section 535 (22 U.S.C. 2346d). Section

11 116(e)(1) of the Foreign Assistance Act of 1961 is

12 amended by striking ‘‘(1)’’.

13 (b) OTHER PROVISIONS.—The following provisions

14 are repealed or amended as follows:

15 (1) Subsections (c) and (d) of section 802 of

16 the International Security and Development Co17 operation Act of 1985 (99 Stat. 261) is repealed.

18 (2) Section 211 of the Foreign Relations Au19 thorization Act, Fiscal Years 1986 and 1987 (99

20 Stat. 432) is repealed, and section 1(b) of that Act

21 is amended by striking the item in the table of con22 tents relating to section 211.

23 (3) Sections 1223 and 1224 of the Foreign Re24 lations Authorization Act, Fiscal Years 1988 and

25 1989 (101 Stat. 1415) is repealed, and section 1(b)
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1 of that Act is amended by striking the items in the

2 table of contents relating to sections 1223 and 1224.

3 (4) Section 362 of the Foreign Relations Au4 thorization Act, Fiscal Years 1992 and 1993 (105

5 Stat. 716) is repealed, and section 2 of that Act is

6 amended by striking the item in the table of con7 tents relating to section 362.

8 (5) Section 2(b)(9) of the Export-Import Bank

9 Act of 1945 (12 U.S.C. 635(b)(9)) is repealed.

10 (6) Section 43 of the Bretton Woods Agree11 ments Act (22 U.S.C. 286aa) is amended by repeal12 ing subsection (b) and by striking ‘‘(a)’’.

13 (7) Section 330 of H.R. 5205 of the 99th Con14 gress (Department of Transportation and Related

15 Agencies Appropriations Act, 1987) (22 U.S.C.

16 5056a) as incorporated by reference in section

17 101(l) of Public Law 99–500 and Public Law 99–

18 591, and made effective as if enacted into law by

19 section 106 of Public Law 100–202, is repealed.

20 (8)(A) Section 901(j)(2)(C) of the Internal Rev21 enue Code of 1986 (26 U.S.C. 901(j)(2)(C)) is re22 pealed.

23 (B) Subparagraph (A) shall not be construed as

24 affecting any of the transitional rules contained in

25 Revenue Ruling 92–62 which apply by reason of the
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1 termination of the period for which section 901(j) of

2 the Internal Revenue Code of 1986 was applicable to

3 South Africa.

4 (9) The table in section 502(b) of the Trade

5 Act of 1974 (19 U.S.C. 2462(b)) is amended by

6 striking ‘‘Republic of South Africa’’.

7 (c) SANCTIONS MEASURES ADOPTED BY STATE OR

8 LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—

9 (1) POLICY REGARDING RECISSION.—The Con10 gress urges all State or local governments and all

11 private entities in the United States that have

12 adopted any restriction on economic interactions

13 with South Africa, or any policy discouraging such

14 interaction, to rescind such restriction or policy.

15 (2) REPEAL OF PROVISIONS RELATING TO

16 WITHHOLDING FEDERAL FUNDS.—Effective October

17 1, 1995, the following provisions are repealed:

18 (A) The undesignated paragraph entitled

19 ‘‘STATE AND LOCAL ANTI-APARTHEID POLI20 CIES’’ in chapter IX of the Dire Emergency

21 Supplemental Appropriations and Transfers,

22 Urgent Supplementals, and Correcting Enroll23 ment Errors Act of 1989 (22 U.S.C. 5117).
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1 (B) Section 210 of the Urgent Supple2 mental Appropriations Act, 1986 (100 Stat.

3 749).

4 (d) CONTINUATION OF UN SPECIAL SANCTIONS.—

5 It is the sense of the Congress that the United States

6 should continue to respect United Nations Security Coun7 cil resolutions on South Africa, including the resolution

8 providing for a mandatory embargo on arms sales to

9 South Africa and the resolutions relating to the import

10 of arms, restricting exports to the South African military

11 and police, and urging states to refrain from nuclear co12 operation that would contribute to the manufacture and

13 development by South Africa of nuclear weapons or nu14 clear devices.

15 SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION

16 TO A NONRACIAL DEMOCRACY.

17 (a) IN GENERAL.—The President is authorized and

18 encouraged to provide assistance under chapter 10 of part

19 I of the Foreign Assistance Act of 1961 (relating to the

20 Development Fund for Africa) or chapter 4 of part II of

21 that Act (relating to the Economic Support Fund) to sup22 port the transition to nonracial democracy in South Afri23 ca. Such assistance shall—

24 (1) focus on building the capacity of disadvan25 taged South Africans to take their rightful place in
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1 the political, social, and economic systems of their

2 country;

3 (2) give priority to working with and through

4 South African nongovernmental organizations whose

5 leadership and staff represent the majority popu6 lation and which have the support of the disadvan7 taged communities being served by such organiza8 tions;

9 (3) in the case of education programs—

10 (A) be used to increase the capacity of

11 South African institutions to better serve the

12 needs of individuals disadvantaged by apart13 heid;

14 (B) emphasize education within South Af15 rica to the extent that assistance takes the form

16 of scholarships for disadvantaged South African

17 students; and

18 (C) fund nontraditional training activities;

19 (4) support activities to prepare South Africa

20 for elections, including voter and civic education pro21 grams, political party building, and technical elec22 toral assistance;

23 (5) support activities and entities, such as the

24 Peace Accord structures, which are working to end

25 the violence in South Africa; and
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1 (6) support activities to promote human rights,

2 democratization, and a civil society.

3 (b) GOVERNMENT OF SOUTH AFRICA.—

4 (1) LIMITATION ON ASSISTANCE.—Except as

5 provided in paragraph (2), assistance provided in ac6 cordance with this section may not be made available

7 to the Government of South Africa, or organizations

8 financed and substantially controlled by that govern9 ment, unless the President certifies to the Congress

10 that an interim government that was elected on a

11 nonracial basis through free and fair elections has

12 taken office in South Africa.

13 (2) EXCEPTIONS.—Notwithstanding paragraph

14 (1), assistance may be provided for—

15 (A) the Transitional Executive Council;

16 (B) South African higher education insti17 tutions, particularly those traditionally dis18 advantaged by apartheid policies; and

19 (C) any other organization, entity, or activ20 ity if the President determines that the assist21 ance would promote the transition to nonracial

22 democracy in South Africa.

23 Any determination under subparagraph (C) should

24 be based on consultations with South African indi25 viduals and organizations representative of the ma-
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1 jority population in South Africa (particularly con2 sultations through the Transitional Executive Coun3 cil) and consultations with the appropriate congres4 sional committees.

5 (c) INELIGIBLE ORGANIZATIONS.—

6 (1) ACTS OF VIOLENCE.—An organization that

7 has engaged in armed struggle or other acts of vio8 lence shall not be eligible for assistance provided in

9 accordance with this section unless that organization

10 is committed to a suspension of violence in the con11 text of progress toward nonracial democracy.

12 (2) VIEWS INCONSISTENT WITH DEMOCRACY

13 AND FREE ENTERPRISE.—Assistance provided in ac14 cordance with this section may not be made available

15 to any organization that has espoused views incon16 sistent with democracy and free enterprise unless

17 such organization is engaged actively and positively

18 in the process of transition to a nonracial democracy

19 and such assistance would advance the United

20 States objective of promoting democracy and free

21 enterprise in South Africa.

22 SEC. 6. UNITED STATES INVESTMENT AND TRADE.

23 (a) TAX TREATY.—The President should begin im24 mediately to negotiate a tax treaty with South Africa to

25 facilitate United States investment in that country.
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1 (b) OPIC.—The President should immediately initi2 ate negotiations with the Government of South Africa for

3 an agreement authorizing the Overseas Private Invest4 ment Corporation to carry out programs with respect to

5 South Africa in order to expand United States investment

6 in that country.

7 (c) TRADE AND DEVELOPMENT AGENCY.—In carry8 ing out section 661 of the Foreign Assistance Act of 1961,

9 the Director of the Trade and Development Agency should

10 provide additional funds for activities related to projects

11 in South Africa.

12 (d) EXPORT-IMPORT BANK.—The Export-Import

13 Bank of the United States should expand its activities in

14 connection with exports to South Africa.

15 (e) PROMOTING DISADVANTAGED ENTERPRISES.—

16 (1) INVESTMENT AND TRADE PROGRAMS.—

17 Each of the agencies referred to in subsections (b)

18 through (d) should take active steps to encourage

19 the use of its programs to promote business enter20 prises in South Africa that are majority-owned by

21 South Africans disadvantaged by apartheid.

22 (2) UNITED STATES GOVERNMENT PROCURE23 MENT.—To the extent not inconsistent with the obli24 gations of the United States under any international

25 agreement, the Secretary of State and the head of
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1 any other department or agency of the United States

2 carrying out activities in South Africa shall, to the

3 maximum extent practicable, in procuring goods or

4 services, make affirmative efforts to assist business

5 enterprises having more than 50 percent beneficial

6 ownership by South African blacks or other

7 nonwhite South Africans, notwithstanding any law

8 relating to the making or performance of, or the ex9 penditure of funds for, United States Government

10 contracts.

11 SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO12 GRAMS.

13 The Director of the United States Information Agen14 cy should use the authorities of the United States Infor15 mation and Educational Exchange Act of 1948 to promote

16 the development of a nonracial democracy in South Africa.

17 SEC. 8. OTHER COOPERATIVE AGREEMENTS.

18 In addition to the actions specified in the preceding

19 sections of this Act, the President should seek to conclude

20 cooperative agreements with South Africa on a range of

21 issues, including cultural and scientific issues.

22 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND

23 OTHER DONORS.

24 (a) IN GENERAL.—The President should encourage

25 other donors, particularly Japan and the European Com-
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1 munity countries, to expand their activities in support of

2 the transition to nonracial democracy in South Africa.

3 (b) INTERNATIONAL FINANCIAL INSTITUTIONS.—

4 The Secretary of the Treasury should instruct the United

5 States Executive Director of each relevant international

6 financial institution, including the International Bank for

7 Reconstruction and Development and the International

8 Development Association, to urge that institution to initi9 ate or expand its lending and other financial assistance

10 activities to South Africa in order to support the transition

11 to nonracial democracy in South Africa.

12 (c) TECHNICAL ASSISTANCE.—The Secretary of the

13 Treasury should instruct the United States Executive Di14 rector of each relevant international financial institution

15 to urge that institution to fund programs to initiate or

16 expand technical assistance to South Africa for the pur17 pose of training the people of South Africa in government

18 management techniques.

19 SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

20 In carrying out this Act, the President should consult

21 closely with South African individuals and organizations

22 representative of the majority population in South Africa

23 (particularly consultations through the Transitional Exec-
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1 utive Council) and others committed to abolishing the

2 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.