103D CONGRESS

1ST SESSION H. R. 3225

AN ACT

To support the transition to nonracial democracy in

South Africa.
103D CONGRESS

1ST SESSION H. R. 3225

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,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘South African Demo5 cratic Transition Support Act of 1993’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) After decades of apartheid, South Africa

9 has entered a new era which presents a historic op10 portunity for a transition to a peaceful, stable, and

11 democratic future.
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1 (2) The United States policy of economic sanc2 tions toward the apartheid government of South Af3 rica, as expressed in the Comprehensive Anti-Apart4 heid Act of 1986, helped bring about reforms in that

5 system of government and has facilitated the estab6 lishment of a nonracial government.

7 (3) Through broad and open negotiations, the

8 parties in South Africa have reached a landmark

9 agreement on the future of their country. This

10 agreement includes the establishment of a Transi11 tional Executive Council and the setting of a date

12 for nonracial elections.

13 (4) The international community has a vital in14 terest in supporting the transition from apartheid

15 toward nonracial democracy.

16 (5) The success of the transition in South Afri17 ca is crucial to the stability and economic develop18 ment of the southern African region.

19 (6) Nelson Mandela of the African National

20 Congress and other representative leaders in South

21 Africa have declared that the time has come when

22 the international community should lift all economic

23 sanctions against South Africa.
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1 (7) In light of recent developments, the continu2 ation of these economic sanctions is detrimental to

3 persons disadvantaged by apartheid.

4 (8) Those calling for the lifting of economic

5 sanctions against South Africa have made clear that

6 they do not seek the immediate termination of the

7 United Nations-sponsored special sanctions relating

8 to arms transfers, nuclear cooperation, and exports

9 of oil. The Ad Hoc Committee on Southern Africa

10 of the Organization of African Unity, for example,

11 has urged that the oil embargo established pursuant

12 to a 1986 General Assembly resolution be lifted

13 after the establishment and commencement of the

14 work of the Transitional Executive Council.

15 SEC. 3. UNITED STATES POLICY.

16 It is the sense of the Congress that—

17 (1) the United States should—

18 (A) strongly support the Transitional Ex19 ecutive Council in South Africa,

20 (B) encourage rapid progress toward the

21 establishment of a nonracial democratic govern22 ment in South Africa, and

23 (C) support a consolidation of democracy

24 in South Africa through democratic elections
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1 for an interim government and a new nonracial

2 constitution;

3 (2) the United States should continue to pro4 vide assistance to support the transition to a

5 nonracial democracy in South Africa, and should

6 urge international financial institutions and other

7 donors to also provide such assistance;

8 (3) to the maximum extent practicable, the

9 United States should consult closely with inter10 national financial institutions, other donors, and

11 South African entities on a coordinated strategy to

12 support the transition to a nonracial democracy in

13 South Africa;

14 (4) in order to provide ownership and manage15 rial opportunities, professional advancement, train16 ing, and employment for disadvantaged South Afri17 cans and to respond to the historical inequities cre18 ated under apartheid, the United States should—

19 (A) promote the expansion of private en20 terprise and free markets in South Africa,

21 (B) encourage the South African private

22 sector to take a special responsibility and inter23 est in providing such opportunities, advance24 ment, training, and employment for disadvan25 taged South Africans,
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1 (C) encourage United States private sector

2 investment in and trade with South Africa,

3 (D) urge United States investors to de4 velop a working partnership with representative

5 organs of South African civil society, particu6 larly churches and trade unions, in promoting

7 responsible codes of corporate conduct and

8 other measures to address the historical inequi9 ties created under apartheid;

10 (5) the United States should urge the Govern11 ment of South Africa to liberalize its trade and in12 vestment policies to facilitate the expansion of the

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

14 disadvantaged South Africans;

15 (6) the United States should promote coopera16 tion between South Africa and other countries in the

17 region to foster regional stability and economic

18 growth; and

19 (7) the United States should demonstrate its

20 support for an expedited transition to, and should

21 adopt a long term policy beneficial to the establish22 ment and perpetuation of, a nonracial democracy in

23 South Africa.
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1 SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND

2 OTHER MEASURES DIRECTED AT SOUTH AF3 RICA.

4 (a) COMPREHENSIVE ANTI-APARTHEID ACT.—

5 (1) IN GENERAL.—All provisions of the Com6 prehensive Anti-Apartheid Act of 1986 (22 U.S.C.

7 5001 and following) are repealed as of the date of

8 enactment of this Act, except for the sections speci9 fied in paragraph (2).

10 (2) EFFECTIVE DATE OF REPEAL OF CODE OF

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

12 203(b), 205, 207, 208, 601, 603, and 604 of the

13 Comprehensive Anti-Apartheid Act of 1986 are re14 pealed as of the date on which the President certifies

15 to the Congress that an interim government, elected

16 on a nonracial basis through free and fair elections,

17 has taken office in South Africa.

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

19 3 of the Comprehensive Anti-Apartheid Act of 1986

20 is amended by striking paragraphs (2) through (4)

21 and paragraphs (7) through (9), by inserting ‘‘and’’

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

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

24 (B) The following provisions of the Foreign As25 sistance Act of 1961 that were enacted by the Com26 prehensive Anti-Apartheid Act of 1986 are repealed:
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1 subsections (e)(2), (f), and (g) of section 116 (22

2 U.S.C. 2151n); section 117 (22 U.S.C. 2151o), re3 lating to assistance for disadvantaged South Afri4 cans; and section 535 (22 U.S.C. 2346d). Section

5 116(e)(1) of the Foreign Assistance Act of 1961 is

6 amended by striking ‘‘(1)’’.

7 (b) OTHER PROVISIONS.—The following provisions

8 are repealed or amended as follows:

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

10 the International Security and Development Co11 operation Act of 1985 (99 Stat. 261) is repealed.

12 (2) Section 211 of the Foreign Relations Au13 thorization Act, Fiscal Years 1986 and 1987 (99

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

15 is amended by striking the item in the table of con16 tents relating to section 211.

17 (3) Sections 1223 and 1224 of the Foreign Re18 lations Authorization Act, Fiscal Years 1988 and

19 1989 (101 Stat. 1415) is repealed, and section 1(b)

20 of that Act is amended by striking the items in the

21 table of contents relating to sections 1223 and 1224.

22 (4) Section 362 of the Foreign Relations Au23 thorization Act, Fiscal Years 1992 and 1993 (105

24 Stat. 716) is repealed, and section 2 of that Act is
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1 amended by striking the item in the table of con2 tents relating to section 362.

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

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

5 (6) Section 43 of the Bretton Woods Agree6 ments Act (22 U.S.C. 286aa) is amended by repeal7 ing subsection (b) and by striking ‘‘(a)’’.

8 (7) Section 330 of H.R. 5205 of the 99th Con9 gress (Department of Transportation and Related

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

11 5056a) as incorporated by reference in section

12 101(l) of Public Law 99–500 and Public Law 99–

13 591, and made effective as if enacted into law by

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

15 (8)(A) Section 901(j)(2)(C) of the Internal Rev16 enue Code of 1986 (26 U.S.C. 901(j)(2)(C)) is re17 pealed.

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

19 affecting any of the transitional rules contained in

20 Revenue Ruling 92–62 which apply by reason of the

21 termination of the period for which section 901(j) of

22 the Internal Revenue Code of 1986 was applicable to

23 South Africa.
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1 (9) The table in section 502(b) of the Trade

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

3 striking ‘‘Republic of South Africa’’.

4 (c) SANCTIONS MEASURES ADOPTED BY STATE OR

5 LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—

6 (1) POLICY REGARDING RECISSION.—The Con7 gress urges all State or local governments and all

8 private entities in the United States that have

9 adopted any restriction on economic interactions

10 with South Africa, or any policy discouraging such

11 interaction, to rescind such restriction or policy.

12 (2) REPEAL OF PROVISIONS RELATING TO

13 WITHHOLDING FEDERAL FUNDS.—Effective October

14 1, 1995, the following provisions are repealed:

15 (A) The undesignated paragraph entitled

16 ‘‘STATE AND LOCAL ANTI-APARTHEID POLI17 CIES’’ in chapter IX of the Dire Emergency

18 Supplemental Appropriations and Transfers,

19 Urgent Supplementals, and Correcting Enroll20 ment Errors Act of 1989 (22 U.S.C. 5117).

21 (B) Section 210 of the Urgent Supple22 mental Appropriations Act, 1986 (100 Stat.

23 749).

24 (d) CONTINUATION OF UN SPECIAL SANCTIONS.—

25 It is the sense of the Congress that the United States
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1 should continue to respect United Nations Security Coun2 cil resolutions on South Africa, including the resolution

3 providing for a mandatory embargo on arms sales to

4 South Africa and the resolutions relating to the import

5 of arms, restricting exports to the South African military

6 and police, and urging states to refrain from nuclear co7 operation that would contribute to the manufacture and

8 development by South Africa of nuclear weapons or nu9 clear devices.

10 SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION

11 TO A NONRACIAL DEMOCRACY.

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

13 encouraged to provide assistance under chapter 10 of part

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

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

16 that Act (relating to the Economic Support Fund) to sup17 port the transition to nonracial democracy in South Afri18 ca. Such assistance shall—

19 (1) focus on building the capacity of disadvan20 taged South Africans to take their rightful place in

21 the political, social, and economic systems of their

22 country;

23 (2) give priority to working with and through

24 South African nongovernmental organizations whose

25 leadership and staff represent the majority popu-
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1 lation and which have the support of the disadvan2 taged communities being served by such organiza3 tions;

4 (3) in the case of education programs—

5 (A) be used to increase the capacity of

6 South African institutions to better serve the

7 needs of individuals disadvantaged by apart8 heid;

9 (B) emphasize education within South Af10 rica to the extent that assistance takes the form

11 of scholarships for disadvantaged South African

12 students; and

13 (C) fund nontraditional training activities;

14 (4) support activities to prepare South Africa

15 for elections, including voter and civic education pro16 grams, political party building, and technical elec17 toral assistance;

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

19 Peace Accord structures, which are working to end

20 the violence in South Africa; and

21 (6) support activities to promote human rights,

22 democratization, and a civil society.

23 (b) GOVERNMENT OF SOUTH AFRICA.—

24 (1) LIMITATION ON ASSISTANCE.—Except as

25 provided in paragraph (2), assistance provided in ac-
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1 cordance with this section may not be made available

2 to the Government of South Africa, or organizations

3 financed and substantially controlled by that govern4 ment, unless the President certifies to the Congress

5 that an interim government that was elected on a

6 nonracial basis through free and fair elections has

7 taken office in South Africa.

8 (2) EXCEPTIONS.—Notwithstanding paragraph

9 (1), assistance may be provided for—

10 (A) the Transitional Executive Council;

11 (B) South African higher education insti12 tutions, particularly those traditionally dis13 advantaged by apartheid policies; and

14 (C) any other organization, entity, or activ15 ity if the President determines that the assist16 ance would promote the transition to nonracial

17 democracy in South Africa.

18 Any determination under subparagraph (C) should

19 be based on consultations with South African indi20 viduals and organizations representative of the ma21 jority population in South Africa (particularly con22 sultations through the Transitional Executive Coun23 cil) and consultations with the appropriate congres24 sional committees.

25 (c) INELIGIBLE ORGANIZATIONS.—
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1 (1) ACTS OF VIOLENCE.—An organization that

2 has engaged in armed struggle or other acts of vio3 lence shall not be eligible for assistance provided in

4 accordance with this section unless that organization

5 is committed to a suspension of violence in the con6 text of progress toward nonracial democracy.

7 (2) VIEWS INCONSISTENT WITH DEMOCRACY

8 AND FREE ENTERPRISE.—Assistance provided in ac9 cordance with this section may not be made available

10 to any organization that has espoused views incon11 sistent with democracy and free enterprise unless

12 such organization is engaged actively and positively

13 in the process of transition to a nonracial democracy

14 and such assistance would advance the United

15 States objective of promoting democracy and free

16 enterprise in South Africa.

17 SEC. 6. UNITED STATES INVESTMENT AND TRADE.

18 (a) TAX TREATY.—The President should begin im19 mediately to negotiate a tax treaty with South Africa to

20 facilitate United States investment in that country.

21 (b) OPIC.—The President should immediately initi22 ate negotiations with the Government of South Africa for

23 an agreement authorizing the Overseas Private Invest24 ment Corporation to carry out programs with respect to
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1 South Africa in order to expand United States investment

2 in that country.

3 (c) TRADE AND DEVELOPMENT AGENCY.—In carry4 ing out section 661 of the Foreign Assistance Act of 1961,

5 the Director of the Trade and Development Agency should

6 provide additional funds for activities related to projects

7 in South Africa.

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

9 Bank of the United States should expand its activities in

10 connection with exports to South Africa.

11 (e) PROMOTING DISADVANTAGED ENTERPRISES.—

12 (1) INVESTMENT AND TRADE PROGRAMS.—

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

14 through (d) should take active steps to encourage

15 the use of its programs to promote business enter16 prises in South Africa that are majority-owned by

17 South Africans disadvantaged by apartheid.

18 (2) UNITED STATES GOVERNMENT PROCURE19 MENT.—To the extent not inconsistent with the obli20 gations of the United States under any international

21 agreement, the Secretary of State and the head of

22 any other department or agency of the United States

23 carrying out activities in South Africa shall, to the

24 maximum extent practicable, in procuring goods or

25 services, make affirmative efforts to assist business
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1 enterprises having more than 50 percent beneficial

2 ownership by South African blacks or other

3 nonwhite South Africans, notwithstanding any law

4 relating to the making or performance of, or the ex5 penditure of funds for, United States Government

6 contracts.

7 SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO8 GRAMS.

9 The Director of the United States Information Agen10 cy should use the authorities of the United States Infor11 mation and Educational Exchange Act of 1948 to promote

12 the development of a nonracial democracy in South Africa.

13 SEC. 8. OTHER COOPERATIVE AGREEMENTS.

14 In addition to the actions specified in the preceding

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

16 cooperative agreements with South Africa on a range of

17 issues, including cultural and scientific issues.

18 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND

19 OTHER DONORS.

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

21 other donors, particularly Japan and the European Com22 munity countries, to expand their activities in support of

23 the transition to nonracial democracy in South Africa.

24 (b) INTERNATIONAL FINANCIAL INSTITUTIONS.—

25 The Secretary of the Treasury should instruct the United
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1 States Executive Director of each relevant international

2 financial institution, including the International Bank for

3 Reconstruction and Development and the International

4 Development Association, to urge that institution to initi5 ate or expand its lending and other financial assistance

6 activities to South Africa in order to support the transition

7 to nonracial democracy in South Africa.

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

9 Treasury should instruct the United States Executive Di10 rector of each relevant international financial institution

11 to urge that institution to fund programs to initiate or

12 expand technical assistance to South Africa for the pur13 pose of training the people of South Africa in government

14 management techniques.

15 SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

16 In carrying out this Act, the President should consult

17 closely with South African individuals and organizations

18 representative of the majority population in South Africa

19 (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:

Clerk.

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