Union Calendar No. 205

103D CONGRESS

1ST SESSION H. R. 3225

[Report No. 103–296, Parts I, II, III, and IV]

A BILL

To support the transition to nonracial democracy in

South Africa.

NOVEMBER 17, 1993

Reported from the Committee on Ways and Means, comState of the Union, and ordered to be printed mitted to the Committee of the Whole House on the
IB

Union Calendar No. 205

103D CONGRESS

1ST SESSION H. R. 3225

[Report No. 103–296, Parts I, II, III, and IV]

To support the transition to nonracial democracy in South Africa.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 6, 1993

Mr. JOHNSTON of Florida (for himself, Mr. PAYNE of New Jersey, Mr. HAMILTON, Mr. MFUME, Mr. DELLUMS, Mr. BISHOP, Mr. BLACKWELL, Ms.

BROWN of Florida, Mrs. CLAYTON, Mr. CLYBURN, Miss COLLINS of

Michigan, Mrs. COLLINS of Illinois, Mr. CONYERS, Mr. DIXON, Mr.

FIELDS of Louisiana, Mr. FORD of Tennessee, Mr. FRANKS of Connecticut, Mr. HASTINGS, Mr. HILLIARD, Ms. NORTON, Mr. JEFFERSON, Ms.

EDDIE BERNICE JOHNSON of Texas, Mr. LEWIS of Georgia, Ms. MCKINNEY, Mrs. MEEK, Mr. OWENS, Mr. RANGEL, Mr. RUSH, Mr. SCOTT, Mr.

STOKES, Mr. THOMPSON of Mississippi, Mr. TOWNS, Mr. TUCKER, Ms.

WATERS, Mr. WATT, Mr. WHEAT, Mr. WYNN, Mr. GEJDENSON, Mr.

ACKERMAN, Mr. EDWARDS of California, Mr. ENGEL, Mr. TORRICELLI,

Mr. BURTON of Indiana, and Mr. ROYCE) introduced the following bill;

which was referred jointly to the Committees on Foreign Affairs, Banking, Finance and Urban Affairs, Ways and Means, and Public Works and

Transportation

OCTOBER 15, 1993

Reported from the Committee on Foreign Affairs with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

NOVEMBER 8, 1993

Reported from the Committee on Public Works and Transportation with

amendments

[Insert the part printed in boldface italic]

NOVEMBER 15, 1993

Reported from the Committee on Banking, Finance and Urban Affairs with

an amendment
2

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[Strike out all after the enacting clause and insert the part printed in boldface roman]

NOVEMBER 17, 1993

Reported from the Committee on Ways and Means, committed to the Committee of the Whole House on the State of the Union, and ordered to be

printed

A BILL

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.

12 (2) Through broad and open negotiations, the

13 parties in South Africa have reached a landmark

14 agreement on the future of their country. This

15 agreement includes the establishment of a Transi16 tional Executive Council and the setting of a date

17 for nonracial elections.
3

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1 (3) The international community has a vital in2 terest in supporting the transition from apartheid

3 toward nonracial democracy.

4 (4) The success of the transition in South Afri5 ca is crucial to the stability and economic develop6 ment of the southern African region.

7 (5) Nelson Mandela of the African National

8 Congress and other representative leaders in South

9 Africa have declared that the time has come when

10 the international community should lift all economic

11 sanctions against South Africa.

12 (6) In light of recent developments, the continu13 ation of these economic sanctions is detrimental to

14 persons disadvantaged by apartheid.

15 (7) Those calling for the lifting of economic

16 sanctions against South Africa have made clear that

17 they do not seek the immediate termination of the

18 United Nations-sponsored special sanctions relating

19 to arms transfers, nuclear cooperation, and exports

20 of oil. The Ad Hoc Committee on Southern Africa

21 of the Organization of African Unity, for example,

22 has urged that the oil embargo established pursuant

23 to a 1986 General Assembly resolution be lifted

24 after the establishment and commencement of the

25 work of the Transitional Executive Council.
4

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1 SEC. 3. UNITED STATES POLICY.

2 It is the sense of the Congress that—

3 (1) the United States should—

4 (A) strongly support the Transitional Ex5 ecutive Council in South Africa,

6 (B) encourage rapid progress toward the

7 establishment of a nonracial democratic govern8 ment in South Africa, and

9 (C) support a consolidation of democracy

10 in South Africa through democratic elections

11 for an interim government and a new nonracial

12 constitution;

13 (2) the United States should continue to pro14 vide assistance to support the transition to a

15 nonracial democracy in South Africa, and should

16 urge international financial institutions and other

17 donors to also provide such assistance;

18 (3) to the maximum extent practicable, the

19 United States should consult closely with inter20 national financial institutions, other donors, and

21 South African entities on a coordinated strategy to

22 support the transition to a nonracial democracy in

23 South Africa;

24 (4) in order to provide ownership and manage25 rial opportunities, professional advancement, train26 ing, and employment for disadvantaged South Afri-
5

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1 cans and to respond to the historical inequities cre2 ated under apartheid, the United States should—

3 (A) promote the expansion of private en4 terprise and free markets in South Africa,

5 (B) encourage the South African private

6 sector to take a special responsibility and inter7 est in providing such opportunities, advance8 ment, training, and employment for disadvan9 taged South Africans,

10 (C) encourage United States private sector

11 investment in and trade with South Africa,

12 (D) urge United States investors to de13 velop a working partnership with representative

14 organs of South African civil society, particu15 larly churches and trade unions, in promoting

16 responsible codes of corporate conduct and

17 other measures to address the historical inequi18 ties created under apartheid;

19 (5) the United States should urge the Govern20 ment of South Africa to liberalize its trade and in21 vestment policies to facilitate the expansion of the

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

23 disadvantaged South Africans;

24 (6) the United States should promote coopera25 tion between South Africa and other countries in the
6

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1 region to foster regional stability and economic

2 growth; and

3 (7) The United States should demonstrate its

4 support for an expedited transition to, and should

5 adopt a long term policy beneficial to the establish6 ment and perpetuation of, a nonracial democracy in

7 South Africa.

8 SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND

9 OTHER MEASURES DIRECTED AT SOUTH

10 AFRICA.

11 (a) COMPREHENSIVE ANTI-APARTHEID ACT.—

12 (1) IN GENERAL.—All provisions of the Com13 prehensive Anti-Apartheid Act of 1986 (22 U.S.C.

14 5001 and following) are repealed as of the date of

15 enactment of this Act, except for the sections speci16 fied in paragraph (2).

17 (2) EFFECTIVE DATE OF REPEAL OF CODE OF

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

19 203(b), 205, 207, 208, 601, 603, and 604 of the

20 Comprehensive Anti-Apartheid Act of 1986 are re21 pealed as of the date on which the President certifies

22 to the Congress that an interim government, elected

23 on a nonracial basis through free and fair elections,

24 has taken office in South Africa.
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1 (3) CONFORMING AMENDMENTS.—(A) Section

2 3 of the Comprehensive Anti-Apartheid Act of 1986

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

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

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

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

7 (B) The following provisions of the Foreign As8 sistance Act of 1961 that were enacted by the Com9 prehensive Anti-Apartheid Act of 1986 are repealed:

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

11 U.S.C. 2151n); section 117 (22 U.S.C. 2151o), re12 lating to assistance for disadvantaged South Afri13 cans; and section 535 (22 U.S.C. 2346d). Section

14 116(e)(1) of the Foreign Assistance Act of 1961 is

15 amended by striking ‘‘(1)’’.

16 (b) OTHER PROVISIONS.—The following provisions

17 are repealed or amended as follows:

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

19 the International Security and Development Co20 operation Act of 1985 (99 Stat. 261) is repealed.

21 (2) Section 211 of the Foreign Relations Au22 thorization Act, Fiscal Years 1986 and 1987 (99

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

24 is amended by the striking the item in the table of

25 contents relating to section 211.
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1 (3) Sections 1223 and 1224 of the Foreign Re2 lations Authorization Act, Fiscal Years 1988 and

3 1989 (101 Stat. 1415) is repealed, and section 1(b)

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

5 table of contents relating to sections 1223 and 1224.

6 (4) Section 362 of the Foreign Relations Au7 thorization Act, Fiscal Years 1992 and 1993 (105

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

9 amended by striking the item in the table of con10 tents relating to section 362.

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

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

13 (6) Section 43 of the Bretton Woods Agree14 ments Act (22 U.S.C. 286aa) is amended by repeal15 ing subsection (b) and by striking ‘‘(a)’’.

16 (7) Section 330 of H.R. 5205 of the 99th Con17 gress (Department of Transportation and Related

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

19 5056a) as incorporated by reference in section

20 101(l) of Public Law 99–500 and Public Law 99–

21 591, and made effective as if enacted into law by

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

23 (8)(A) Section 901(j)(2)(C) of the Internal Rev24 enue Code of 1986 (26 U.S.C. 901(j)(2)(C) is re25 pealed.
9

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

2 affecting any of the transitional rules contained in

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

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

5 the Internal Revenue Code of 1986 was applicable to

6 South Africa.

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

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

9 striking ‘‘Republic of South Africa’’.

10 (10) The undesignated paragraph entitled

11 ‘‘STATE AND LOCAL ANTI-APARTHEID POLICIES’’ in

12 chapter IX of the Dire Emergency Supplemental Ap13 propriations and Transfers, Urgent Supplementals,

14 and Correcting Enrollment Errors Act of 1989 (22

15 U.S.C. 5117) is repealed effective October 1,

16 1995.

17 (11) Section 210 of the Urgent Supplemental

18 Appropriations Act, 1986 (100 Stat. 749) is re19 pealed effective October 1, 1995.

20 (c) SANCTIONS MEASURES ADOPTED BY STATE OR

21 LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—The Con22 gress urges all State or local governments and all private

23 entities in the United States that have adopted any re24 striction on economic interactions with South Africa, or
10

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1 any policy discouraging such interaction, to rescind such

2 restriction or policy.

3 (d) CONTINUATION OF UN SPECIAL SANCTIONS.—

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

5 should continue to respect United Nations Security Coun6 cil resolutions on South Africa, including the resolution

7 providing for a mandatory embargo on arms sales to

8 South Africa and the resolutions relating to the import

9 of arms, restricting exports to the South African military

10 and police, and urging states to refrain from nuclear co11 operation that would contribute to the manufacture and

12 development by South Africa of nuclear weapons or nu13 clear devices.

14 SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION

15 TO A NONRACIAL DEMOCRACY.

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

17 encouraged to provide assistance under chapter 10 of part

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

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

20 the Act (relating to the Economic Support Fund) to sup21 port the transition to nonracial democracy in South

22 Africa. Such assistance shall—

23 (1) focus on building the capacity of disadvan24 taged South Africans to take their rightful place in
11

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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 with South Africa

15 to the extent the assistance takes the form of

16 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
13

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1 majority population in South Africa (particularly

2 consultations through the Transitional Executive

3 Council) and consultations with the appropriate con4 gressional committees.

5 SEC. 6. UNITED STATES INVESTMENT AND TRADE.

6 (a) TAX TREATY.—The President should begin im7 mediately to negotiate a tax treaty with South Africa to

8 facilitate United States investment in that country.

9 (b) OPIC.—The President should immediately initi10 ate negotiations with the Government of South Africa for

11 an agreement authorizing the Overseas Private Invest12 ment Corporation to carry out programs with respect to

13 South Africa in order to expand United States investment

14 in that country.

15 (c) TRADE AND DEVELOPMENT AGENCY.—In carry16 ing out section 661 of the Foreign Assistance Act of 1961,

17 the Director of the Trade and Development Agency should

18 provide additional funds for activities related to projects

19 in South Africa.

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

21 Bank of the United States should expand it activities in

22 connection with exports to South Africa.

23 (e) PROMOTING DISADVANTAGED ENTERPRISES.—

24 (1) INVESTMENT AND TRADE PROGRAMS.—

25 Each of the agencies referred to in subsection (b)
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1 through (d) should take active steps to encourage

2 the use of its programs to promote business enter3 prises in South Africa that are majority-owned by

4 South Africans disadvantaged by apartheid.

5 (2) UNITED STATES GOVERNMENT PROCURE6 MENT.—To the extent not inconsistent with the obli7 gations of the United States under any international

8 agreement, the Secretary of State and the head of

9 any other department or agency of the United States

10 carrying out activities in South Africa shall, to the

11 maximum extent practicable, in procuring goods or

12 services, make affirmative efforts to assist business

13 enterprises having more than 50 percent beneficial

14 ownership by South African blacks or other

15 nonwhite South Africans, notwithstanding any law

16 relating to the making or performance of, or the ex17 penditure of funds for, United States Government

18 contracts.

19 SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO20 GRAMS.

21 The Director of the United States Information Agen22 cy should use the authorities of the United States Infor23 mation and Educational Exchange Act of 1948 to promote

24 the development of a nonracial democracy in South Africa.
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1 SEC. 8. OTHER COOPERATIVE AGREEMENTS.

2 In addition to the actions specified in the preceding

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

4 cooperative agreements with South Africa on a range of

5 issues, including cultural and scientific issues.

6 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND

7 OTHER DONORS.

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

9 other donors, particularly Japan and the European Com10 munity countries, to expand their activities in support of

11 the transition to nonracial democracy in South Africa.

12 (b) INTERNATIONAL FINANCIAL INSTITUTIONS.—

13 The Secretary of the Treasury should instruct the United

14 States Executive Director of each relevant international

15 financial institution, including the International Bank for

16 Reconstruction and Development and the International

17 Development Association, to urge that institution to initi18 ate or expand its lending and other financial assistance

19 activities to South Africa in order to support the transition

20 to nonracial democracy in South Africa.

21 SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

22 In carrying out this Act, the President should consult

23 closely with South African individuals and organizations

24 representative of the majority population in South Africa

25 (particularly consultations through the Transitional Exec-
16

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1 utive Council) and others committed to abolishing the

2 remnants of apartheid.

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 has

9 entered a new era which presents a historic oppor10 tunity for a transition to a peaceful, stable, and

11 democratic future.

12 (2) The United States policy of economic sanc13 tions toward the apartheid government of South Afri14 ca, as expressed in the Comprehensive Anti-Apartheid

15 Act of 1986, helped bring about reforms in that sys16 tem of government and has facilitated the establish17 ment of a nonracial government.

18 (3) Through broad and open negotiations, the

19 parties in South Africa have reached a landmark

20 agreement on the future of their country. This agree21 ment includes the establishment of a Transitional Ex22 ecutive Council and the setting of a date for nonracial

23 elections.
17

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1 (4) The international community has a vital in2 terest in supporting the transition from apartheid to3 ward nonracial democracy.

4 (5) The success of the transition in South Africa

5 is crucial to the stability and economic development

6 of the southern African region.

7 (6) Nelson Mandela of the African National Con8 gress and other representative leaders in South Africa

9 have declared that the time has come when the inter10 national community should lift all economic sanc11 tions against South Africa.

12 (7) In light of recent developments, the continu13 ation of these economic sanctions is detrimental to

14 persons disadvantaged by apartheid.

15 (8) Those calling for the lifting of economic sanc16 tions against South Africa have made clear that they

17 do not seek the immediate termination of the United

18 Nations-sponsored special sanctions relating to arms

19 transfers, nuclear cooperation, and exports of oil. The

20 Ad Hoc Committee on Southern Africa of the Organi21 zation of African Unity, for example, has urged that

22 the oil embargo established pursuant to a 1986 Gen23 eral Assembly resolution be lifted after the establish24 ment and commencement of the work of the Transi25 tional Executive Council.
18

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1 SEC. 3. UNITED STATES POLICY.

2 It is the sense of the Congress that—

3 (1) the United States should—

4 (A) strongly support the Transitional Exec5 utive Council in South Africa,

6 (B) encourage rapid progress toward the es7 tablishment of a nonracial democratic govern8 ment in South Africa, and

9 (C) support a consolidation of democracy in

10 South Africa through democratic elections for an

11 interim government and a new nonracial con12 stitution;

13 (2) the United States should continue to provide

14 assistance to support the transition to a nonracial de15 mocracy in South Africa, and should urge inter16 national financial institutions and other donors to

17 also provide such assistance;

18 (3) to the maximum extent practicable, the Unit19 ed States should consult closely with international fi20 nancial institutions, other donors, and South African

21 entities on a coordinated strategy to support the tran22 sition to a nonracial democracy in South Africa;

23 (4) in order to provide ownership and manage24 rial opportunities, professional advancement, train25 ing, and employment for disadvantaged South Afri-
19

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1 cans and to respond to the historical inequities cre2 ated under apartheid, the United States should—

3 (A) promote the expansion of private enter4 prise and free markets in South Africa,

5 (B) encourage the South African private

6 sector to take a special responsibility and inter7 est in providing such opportunities, advance8 ment, training, and employment for disadvan9 taged South Africans,

10 (C) encourage United States private sector

11 investment in and trade with South Africa, and

12 (D) urge United States investors to develop

13 a working partnership with representative or14 gans of South African civil society, particularly

15 churches and trade unions, in promoting respon16 sible codes of corporate conduct and other meas17 ures to address the historical inequities created

18 under apartheid;

19 (5) the United States should urge the Govern20 ment of South Africa to liberalize its trade and in21 vestment policies to facilitate the expansion of the

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

23 disadvantaged South Africans;

24 (6) the United States should promote cooperation

25 between South Africa and other countries in the re-
20

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1 gion to foster regional stability and economic growth;

2 and

3 (7) the United States should demonstrate its sup4 port for an expedited transition to, and should adopt

5 a long term policy beneficial to the establishment and

6 perpetuation of, a nonracial democracy in South

7 Africa.

8 SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND

9 OTHER MEASURES DIRECTED AT SOUTH AF10 RICA.

11 (a) COMPREHENSIVE ANTI-APARTHEID ACT.—

12 (1) IN GENERAL.—All provisions of the Com13 prehensive Anti-Apartheid Act of 1986 (22 U.S.C.

14 5001 and following) are repealed as of the date of en15 actment of this Act, except for the sections specified

16 in paragraph (2).

17 (2) EFFECTIVE DATE OF REPEAL OF CODE OF

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

19 203(b), 205, 207, 208, 601, 603, and 604 of the Com20 prehensive Anti-Apartheid Act of 1986 are repealed as

21 of the date on which the President certifies to the Con22 gress that an interim government, elected on a

23 nonracial basis through free and fair elections, has

24 taken office in South Africa.
21

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

2 of the Comprehensive Anti-Apartheid Act of 1986 is

3 amended by striking paragraphs (2) through (4) and

4 paragraphs (7) through (9), by inserting ‘‘and’’ at the

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

6 end of paragraph (6) and inserting a period.

7 (B) The following provisions of the Foreign As8 sistance Act of 1961 that were enacted by the Com9 prehensive Anti-Apartheid Act of 1986 are repealed:

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

11 U.S.C. 2151n); section 117 (22 U.S.C. 2151o), relat12 ing to assistance for disadvantaged South Africans;

13 and section 535 (22 U.S.C. 2346d). Section 116(e)(1)

14 of the Foreign Assistance Act of 1961 is amended by

15 striking ‘‘(1)’’.

16 (b) OTHER PROVISIONS.—The following provisions are

17 repealed or amended as follows:

18 (1) Subsections (c) and (d) of section 802 of the

19 International Security and Development Cooperation

20 Act of 1985 (99 Stat. 261) is repealed.

21 (2) Section 211 of the Foreign Relations Author22 ization Act, Fiscal Years 1986 and 1987 (99 Stat.

23 432) is repealed, and section 1(b) of that Act is

24 amended by striking the item in the table of contents

25 relating to section 211.
22

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1 (3) Sections 1223 and 1224 of the Foreign Rela2 tions Authorization Act, Fiscal Years 1988 and 1989

3 (101 Stat. 1415) is repealed, and section 1(b) of that

4 Act is amended by striking the items in the table of

5 contents relating to sections 1223 and 1224.

6 (4) Section 362 of the Foreign Relations Author7 ization Act, Fiscal Years 1992 and 1993 (105 Stat.

8 716) is repealed, and section 2 of that Act is amended

9 by striking the item in the table of contents relating

10 to section 362.

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

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

13 (6) Section 43 of the Bretton Woods Agreements

14 Act (22 U.S.C. 286aa) is amended by repealing sub15 section (b) and by striking ‘‘(a)’’.

16 (7) Section 330 of H.R. 5205 of the 99th Con17 gress (Department of Transportation and Related

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

19 5056a) as incorporated by reference in section 101(l)

20 of Public Law 99–500 and Public Law 99–591, and

21 made effective as if enacted into law by section 106

22 of Public Law 100–202, is repealed.

23 (8)(A) Section 901(j)(2)(C) of the Internal Reve24 nue Code of 1986 (26 U.S.C. 901(j)(2)(C)) is repealed.
23

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

2 affecting any of the transitional rules contained in

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

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

5 the Internal Revenue Code of 1986 was applicable to

6 South Africa.

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

8 of 1974 (19 U.S.C. 2462(b)) is amended by striking

9 ‘‘Republic of South Africa’’.

10 (10) The undesignated paragraph entitled

11 ‘‘STATE AND LOCAL ANTI-APARTHEID POLICIES’’ in

12 chapter IX of the Dire Emergency Supplemental Ap13 propriations and Transfers, Urgent Supplementals,

14 and Correcting Enrollment Errors Act of 1989 (22

15 U.S.C. 5117) is repealed.

16 (11) Section 210 of the Urgent Supplemental

17 Appropriations Act, 1986 (100 Stat. 749) is repealed.

18 (c) SANCTIONS MEASURES ADOPTED BY STATE OR

19 LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—The Con20 gress urges all State or local governments and all private

21 entities in the United States that have adopted any restric22 tion on economic interactions with South Africa, or any

23 policy discouraging such interaction, to rescind such re24 striction or policy.
24

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1 (d) CONTINUATION OF UN SPECIAL SANCTIONS.—It is

2 the sense of the Congress that the United States should con3 tinue to respect United Nations Security Council resolu4 tions on South Africa, including the resolution providing

5 for a mandatory embargo on arms sales to South Africa

6 and the resolutions relating to the import of arms, restrict7 ing exports to the South African military and police, and

8 urging states to refrain from nuclear cooperation that

9 would contribute to the manufacture and development by

10 South Africa of nuclear weapons or nuclear devices.

11 SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION

12 TO A NONRACIAL DEMOCRACY.

13 (a) IN GENERAL.—The President is authorized and en14 couraged to provide assistance under chapter 10 of part I

15 of the Foreign Assistance Act of 1961 (relating to the Devel16 opment Fund for Africa) or chapter 4 of part II of that

17 Act (relating to the Economic Support Fund) to support

18 the transition to nonracial democracy in South Africa.

19 Such assistance shall—

20 (1) focus on building the capacity of disadvan21 taged South Africans to take their rightful place in

22 the political, social, and economic systems of their

23 country;

24 (2) give priority to working with and through

25 South African nongovernmental organizations whose
25

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1 leadership and staff represent the majority population

2 and which have the support of the disadvantaged

3 communities being served by such organizations;

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 apartheid;

8 (B) emphasize education within South Afri9 ca to the extent that assistance takes the form of

10 scholarships for disadvantaged South African

11 students; and

12 (C) fund nontraditional training activities;

13 (4) support activities to prepare South Africa for

14 elections, including voter and civic education pro15 grams, political party building, and technical elec16 toral assistance;

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

18 Peace Accord structures, which are working to end the

19 violence in South Africa; and

20 (6) support activities to promote human rights,

21 democratization, and a civil society.

22 (b) GOVERNMENT OF SOUTH AFRICA.—

23 (1) LIMITATION ON ASSISTANCE.—Except as pro24 vided in paragraph (2), assistance provided in ac25 cordance with this section may not be made available
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1 to the Government of South Africa, or organizations

2 financed and substantially controlled by that govern3 ment, unless the President certifies to the Congress

4 that an interim government that was elected on a

5 nonracial basis through free and fair elections has

6 taken office in South Africa.

7 (2) EXCEPTIONS.—Notwithstanding paragraph

8 (1), assistance may be provided for—

9 (A) the Transitional Executive Council;

10 (B) South African higher education institu11 tions, particularly those traditionally disadvan12 taged by apartheid policies; and

13 (C) any other organization, entity, or activ14 ity if the President determines that the assist15 ance would promote the transition to nonracial

16 democracy in South Africa.

17 Any determination under subparagraph (C) should be

18 based on consultations with South African individ19 uals and organizations representative of the majority

20 population in South Africa (particularly consulta21 tions through the Transitional Executive Council)

22 and consultations with the appropriate congressional

23 committees.

24 (c) INELIGIBLE ORGANIZATIONS.—An organization

25 that has engaged in armed struggle or other acts of violence
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1 shall not be eligible for assistance provided in accordance

2 with this section unless that organization is committed to

3 a suspension of violence in the context of progress toward

4 nonracial democracy.

5 SEC. 6. UNITED STATES INVESTMENT AND TRADE.

6 (a) TAX TREATY.—The President should begin imme7 diately to negotiate a tax treaty with South Africa to facili8 tate United States investment in that country.

9 (b) OPIC.—The President should immediately initiate

10 negotiations with the Government of South Africa for an

11 agreement authorizing the Overseas Private Investment

12 Corporation to carry out programs with respect to South

13 Africa in order to expand United States investment in that

14 country.

15 (c) TRADE AND DEVELOPMENT AGENCY.—In carrying

16 out section 661 of the Foreign Assistance Act of 1961, the

17 Director of the Trade and Development Agency should pro18 vide additional funds for activities related to projects in

19 South Africa.

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

21 Bank of the United States should expand its activities in

22 connection with exports to South Africa.

23 (e) PROMOTING DISADVANTAGED ENTERPRISES.—

24 (1) INVESTMENT AND TRADE PROGRAMS.—Each

25 of the agencies referred to in subsections (b) through
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1 (d) should take active steps to encourage the use of its

2 programs to promote business enterprises in South

3 Africa that are majority-owned by South Africans

4 disadvantaged by apartheid.

5 (2) UNITED STATES GOVERNMENT PROCURE6 MENT.—To the extent not inconsistent with the obli7 gations of the United States under any international

8 agreement, the Secretary of State and the head of any

9 other department or agency of the United States car10 rying out activities in South Africa shall, to the max11 imum extent practicable, in procuring goods or serv12 ices, make affirmative efforts to assist business enter13 prises having more than 50 percent beneficial owner14 ship by South African blacks or other nonwhite South

15 Africans, notwithstanding any law relating to the

16 making or performance of, or the expenditure of funds

17 for, United States Government contracts.

18 SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO19 GRAMS.

20 The Director of the United States Information Agency

21 should use the authorities of the United States Information

22 and Educational Exchange Act of 1948 to promote the de23 velopment of a nonracial democracy in South Africa.
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1 SEC. 8. OTHER COOPERATIVE AGREEMENTS.

2 In addition to the actions specified in the preceding

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

4 cooperative agreements with South Africa on a range of is5 sues, including cultural and scientific issues.

6 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND

7 OTHER DONORS.

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

9 other donors, particularly Japan and the European Com10 munity countries, to expand their activities in support of

11 the transition to nonracial democracy in South Africa.

12 (b) INTERNATIONAL FINANCIAL INSTITUTIONS.—The

13 Secretary of the Treasury should instruct the United States

14 Executive Director of each relevant international financial

15 institution, including the International Bank for Recon16 struction and Development and the International Develop17 ment Association, to urge that institution to initiate or ex18 pand its lending and other financial assistance activities

19 to South Africa in order to support the transition to

20 nonracial democracy in South Africa.

21 SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

22 In carrying out this Act, the President should consult

23 closely with South African individuals and organizations

24 representative of the majority population in South Africa

25 (particularly consultations through the Transitional Execu-
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1 tive Council) and others committed to abolishing the rem2 nants of apartheid.

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘South Afri5 can Democratic Transition Support Act of

6 1993’’.

7 SEC. 2. FINDINGS.

8 The Congress makes the following find9 ings:

10 (1) After decades of apartheid, South

11 Africa has entered a new era which pre12 sents a historic opportunity for a transi13 tion to a peaceful, stable, and democratic

14 future.

15 (2) Through broad and open negotia16 tions, the parties in South Africa have

17 reached a landmark agreement on the fu18 ture of their country. This agreement in19 cludes the establishment of a Transi20 tional Executive Council and the setting

21 of a date for nonracial elections.

22 (3) The international community has

23 a vital interest in supporting the transi24 tion from apartheid toward nonracial de25 mocracy.
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1 (4) The success of the transition in

2 South Africa is crucial to the stability

3 and economic development of the south4 ern African region.

5 (5) Nelson Mandela of the African Na6 tional Congress and other representative

7 leaders in South Africa have declared

8 that the time has come when the inter9 national community should lift all eco10 nomic sanctions against South Africa.

11 (6) In light of recent developments,

12 the continuation of these economic sanc13 tions is detrimental to persons disadvan14 taged by apartheid.

15 (7) Those calling for the lifting of eco16 nomic sanctions against South Africa

17 have made clear that they do not seek the

18 immediate termination of the United Na19 tions-sponsored special sanctions relating

20 to arms transfers, nuclear cooperation,

21 and exports of oil. The Ad Hoc Committee

22 on Southern Africa of the Organization of

23 African Unity, for example, has urged

24 that the oil embargo established pursu25 ant to a 1986 General Assembly resolu-
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1 tion be lifted after the establishment and

2 commencement of the work of the Transi3 tional Executive Council.

4 SEC. 3. UNITED STATES POLICY.

5 It is the sense of the Congress that—

6 (1) the United States should—

7 (A) strongly support the Transi8 tional Executive Council in South Af9 rica,

10 (B) encourage rapid progress to11 ward the establishment of a nonracial

12 democratic government in South Afri13 ca, and

14 (C) support a consolidation of de15 mocracy in South Africa through

16 democratic elections for an interim

17 government and a new nonracial con18 stitution;

19 (2) the United States should continue

20 to provide assistance to support the tran21 sition to a nonracial democracy in South

22 Africa, and should urge international fi23 nancial institutions and other donors to

24 also provide such assistance;
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1 (3) to the maximum extent prac2 ticable, the United States should consult

3 closely with international financial insti4 tutions, other donors, and South African

5 entities on a coordinated strategy to sup6 port the transition to a nonracial democ7 racy in South Africa;

8 (4) in order to provide ownership and

9 managerial opportunities, professional

10 advancement, training, and employment

11 for disadvantaged South Africans and to

12 respond to the historical inequities cre13 ated under apartheid, the United States

14 should—

15 (A) promote the expansion of pri16 vate enterprise and free markets in

17 South Africa,

18 (B) encourage the South African

19 private sector to take a special re20 sponsibility and interest in providing

21 such opportunities, advancement,

22 training, and employment for dis23 advantaged South Africans,
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1 (C) encourage United States pri2 vate sector investment in and trade

3 with South Africa, and

4 (D) urge United States investors

5 to develop a working partnership

6 with representative organs of South

7 African civil society, particularly

8 churches and trade unions, in pro9 moting responsible codes of corporate

10 conduct and other measures to ad11 dress the historical inequities created

12 under apartheid;

13 (5) the United States should urge the

14 Government of South Africa to liberalize

15 its trade and investment policies to facili16 tate the expansion of the economy, and to

17 shift resources to meet the needs of dis18 advantaged South Africans;

19 (6) the United States should promote

20 cooperation between South Africa and

21 other countries in the region to foster re22 gional stability and economic growth;

23 and

24 (7) The United States should dem25 onstrate its support for an expedited
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1 transition to, and should adopt a long

2 term policy beneficial to the establish3 ment and perpetuation of, a nonracial de4 mocracy in South Africa.

5 SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND

6 OTHER MEASURES DIRECTED AT SOUTH

7 AFRICA.

8 (a) COMPREHENSIVE ANTI-APARTHEID ACT.—

9 (1) IN GENERAL.—All provisions of the

10 Comprehensive Anti-Apartheid Act of

11 1986 (22 U.S.C. 5001 and following) are re12 pealed as of the date of enactment of this

13 Act, except for the sections specified in

14 paragraph (2).

15 (2) EFFECTIVE DATE OF REPEAL OF CODE

16 OF CONDUCT REQUIREMENTS.—Sections 1, 3,

17 203(a), 203(b), 205, 207, 208, 601, 603, and

18 604 of the Comprehensive Anti-Apartheid

19 Act of 1986 are repealed as of the date on

20 which the President certifies to the Con21 gress that an interim government, elected

22 on a nonracial basis through free and

23 fair elections, has taken office in South

24 Africa.
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1 (3) CONFORMING AMENDMENTS.—(A)

2 Section 3 of the Comprehensive Anti3 Apartheid Act of 1986 is amended by

4 striking paragraphs (2) through (4) and

5 paragraphs (7) through (9), by inserting

6 ‘‘and’’ at the end of paragraph (5), and by

7 striking ‘‘; and’’ at the end of paragraph

8 (6) and inserting a period.

9 (B) The following provisions of the

10 Foreign Assistance Act of 1961 that were

11 enacted by the Comprehensive Anti12 Apartheid Act of 1986 are repealed: sub13 sections (e)(2), (f), and (g) of section 116

14 (22 U.S.C. 2151n); section 117 (22 U.S.C.

15 2151o), relating to assistance for dis16 advantaged South Africans; and section

17 535 (22 U.S.C. 2346d). Section 116(e)(1) of

18 the Foreign Assistance Act of 1961 is

19 amended by striking ‘‘(1)’’.

20 (b) OTHER PROVISIONS.—The following pro21 visions are repealed or amended as follows:

22 (1) Subsections (c) and (d) of section

23 802 of the International Security and De24 velopment Cooperation Act of 1985 (99

25 Stat. 261) is repealed.
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1 (2) Section 211 of the Foreign Rela2 tions Authorization Act, Fiscal Years 1986

3 and 1987 (99 Stat. 432) is repealed, and

4 section 1(b) of that Act is amended by

5 striking the item in the table of contents

6 relating to section 211.

7 (3) Sections 1223 and 1224 of the For8 eign Relations Authorization Act, Fiscal

9 Years 1988 and 1989 (101 Stat. 1415) is re10 pealed, and section 1(b) of that Act is

11 amended by striking the items in the

12 table of contents relating to sections 1223

13 and 1224.

14 (4) Section 362 of the Foreign Rela15 tions Authorization Act, Fiscal Years 1992

16 and 1993 (105 Stat. 716) is repealed, and

17 section 2 of that Act is amended by strik18 ing the item in the table of contents relat19 ing to section 362.

20 (5) Section 2(b)(9) of the Export-Im21 port Bank Act of 1945 (12 U.S.C. 635(b)(9))

22 is repealed.

23 (6) Section 43 of the Bretton Woods

24 Agreements Act (22 U.S.C. 286aa) is
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1 amended by repealing subsection (b) and

2 by striking ‘‘(a)’’.

3 (7) Section 330 of H.R. 5205 of the

4 99th Congress (Department of Transpor5 tation and Related Agencies Appropria6 tions Act, 1987) (22 U.S.C. 5056a) as incor7 porated by reference in section 101(l) of

8 Public Law 99–500 and Public Law 99–

9 591, and made effective as if enacted into

10 law by section 106 of Public Law 100–202,

11 is repealed.

12 (8)(A) Section 901(j)(2)(C) of the Inter13 nal Revenue Code of 1986 (26 U.S.C.

14 901(j)(2)(C)) is repealed.

15 (B) Subparagraph (A) shall not be

16 construed as affecting any of the transi17 tional rules contained in Revenue Ruling

18 92–62 which apply by reason of the termi19 nation of the period for which section

20 901(j) of the Internal Revenue Code of

21 1986 was applicable to South Africa.

22 (9) The table in section 502(b) of the

23 Trade Act of 1974 (19 U.S.C. 2462(b)) is

24 amended by striking ‘‘Republic of South

25 Africa’’.
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1 (10) The undesignated paragraph en2 titled ‘‘STATE AND LOCAL ANTI-APARTHEID

3 POLICIES’’ in chapter IX of the Dire Emer4 gency Supplemental Appropriations and

5 Transfers, Urgent Supplementals, and

6 Correcting Enrollment Errors Act of 1989

7 (22 U.S.C. 5117) is repealed.

8 (11) Section 210 of the Urgent Supple9 mental Appropriations Act, 1986 (100

10 Stat. 749) is repealed.

11 (c) SANCTIONS MEASURES ADOPTED BY

12 STATE OR LOCAL GOVERNMENTS OR PRIVATE EN13 TITIES.—The Congress urges all State or local

14 governments and all private entities in the

15 United States that have adopted any restric16 tion on economic interactions with South Af17 rica, or any policy discouraging such inter18 action, to rescind such restriction or policy.

19 (d) CONTINUATION OF UN SPECIAL SANC20 TIONS.—It is the sense of the Congress that the

21 United States should continue to respect Unit22 ed Nations Security Council resolutions on

23 South Africa, including the resolution provid24 ing for a mandatory embargo on arms sales to

25 South Africa and the resolutions relating to
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1 the import of arms, restricting exports to the

2 South African military and police, and urging

3 states to refrain from nuclear cooperation

4 that would contribute to the manufacture and

5 development by South Africa of nuclear weap6 ons or nuclear devices.

7 SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION

8 TO A NONRACIAL DEMOCRACY.

9 (a) IN GENERAL.—The President is author10 ized and encouraged to provide assistance

11 under chapter 10 of part I of the Foreign As12 sistance Act of 1961 (relating to the Develop13 ment Fund for Africa) or chapter 4 of part II

14 of the Act (relating to the Economic Support

15 Fund) to support the transition to nonracial

16 democracy in South Africa. Such assistance

17 shall—

18 (1) focus on building the capacity of

19 disadvantaged South Africans to take

20 their rightful place in the political, social,

21 and economic systems of their country;

22 (2) give priority to working with and

23 through South African nongovernmental

24 organizations whose leadership and staff

25 represent the majority population and
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1 which have the support of the disadvan2 taged communities being served by such

3 organizations;

4 (3) in the case of education pro5 grams—

6 (A) be used to increase the capac7 ity of South African institutions to

8 better serve the needs of individuals

9 disadvantaged by apartheid;

10 (B) emphasize education with

11 South Africa to the extent the assist12 ance takes the form of scholarships

13 for disadvantaged South African stu14 dents; and

15 (C) fund nontraditional training

16 activities;

17 (4) support activities to prepare

18 South Africa for elections, including

19 voter and civic education programs, po20 litical party building, and technical elec21 toral assistance;

22 (5) support activities and entities,

23 such as the Peace Accord structures,

24 which are working to end the violence in

25 South Africa; and
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1 (6) support activities to promote

2 human rights, democratization, and a

3 civil society.

4 (b) GOVERNMENT OF SOUTH AFRICA.—

5 (1) LIMITATION ON ASSISTANCE.—Except

6 as provided in paragraph (2), assistance

7 provided in accordance with this section

8 may not be made available to the Govern9 ment of South Africa, or organizations fi10 nanced and substantially controlled by

11 that government, unless the President

12 certifies to the Congress that an interim

13 government that was elected on a

14 nonracial basis through free and fair

15 elections has taken office in South Africa.

16 (2) EXCEPTIONS.—Notwithstanding

17 paragraph (1), assistance may be pro18 vided for—

19 (A) the Transitional Executive

20 Council;

21 (B) South African higher edu22 cation institutions, particularly those

23 traditionally disadvantaged by apart24 heid policies; and
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1 (C) any other organization, entity,

2 or activity if the President deter3 mines that the assistance would pro4 mote the transition to nonracial de5 mocracy in South Africa.

6 Any determination under subparagraph

7 (C) should be based on consultations with

8 South African individuals and organiza9 tions representative of the majority popu10 lation in South Africa (particularly con11 sultations through the Transitional Exec12 utive Council) and consultations with the

13 appropriate congressional committees.

14 SEC. 6. UNITED STATES INVESTMENT AND TRADE.

15 (a) TAX TREATY.—The President should

16 begin immediately to negotiate a tax treaty

17 with South Africa to facilitate United States

18 investment in that country.

19 (b) OPIC.—The President should imme20 diately initiate negotiations with the Govern21 ment of South Africa for an agreement au22 thorizing the Overseas Private Investment

23 Corporation to carry out programs with re24 spect to South Africa in order to expand

25 United States investment in that country.
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1 (c) TRADE AND DEVELOPMENT AGENCY.—In

2 carrying out section 661 of the Foreign Assist3 ance Act of 1961, the Director of the Trade

4 and Development Agency should provide ad5 ditional funds for activities related to projects

6 in South Africa.

7 (d) EXPORT-IMPORT BANK.—The Export-Im8 port Bank of the United States should expand

9 its activities in connection with exports to

10 South Africa.

11 (e) PROMOTING DISADVANTAGED ENTER12 PRISES.—

13 (1) INVESTMENT AND TRADE PRO14 GRAMS.—Each of the agencies referred to

15 in subsection (b) through (d) should take

16 active steps to encourage the use of its

17 programs to promote business enter18 prises in South Africa that are majority19 owned by South Africans disadvantaged

20 by apartheid.

21 (2) UNITED STATES GOVERNMENT PRO22 CUREMENT.—To the extent not inconsist23 ent with the obligations of the United

24 States under any international agree25 ment, the Secretary of State and the head
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1 of any other department or agency of the

2 United States carrying out activities in

3 South Africa shall, to the maximum ex4 tent practicable, in procuring goods or

5 services, make affirmative efforts to as6 sist business enterprises having more

7 than 50 percent beneficial ownership by

8 South African blacks or other nonwhite

9 South Africans, notwithstanding any law

10 relating to the making or performance of,

11 or the expenditure of funds for, United

12 States Government contracts.

13 SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO14 GRAMS.

15 The Director of the United States Infor16 mation Agency should use the authorities of

17 the United States Information and Edu18 cational Exchange Act of 1948 to promote the

19 development of a nonracial democracy in

20 South Africa.

21 SEC. 8. OTHER COOPERATIVE AGREEMENTS.

22 In addition to the actions specified in the

23 preceding sections of this Act, the President

24 should seek to conclude cooperative agree-
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1 ments with South Africa on a range of issues,

2 including cultural and scientific issues.

3 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND

4 OTHER DONORS.

5 (a) IN GENERAL.—The President should en6 courage other donors, particularly Japan and

7 the European Community countries, to ex8 pand their activities in support of the transi9 tion to nonracial democracy in South Africa.

10 (b) INTERNATIONAL FINANCIAL INSTITU11 TIONS.—The Secretary of the Treasury should

12 instruct the United States Executive Director

13 of each relevant international financial insti14 tution, including the International Bank for

15 Reconstruction and Development and the

16 International Development Association, to

17 urge that institution to initiate or expand its

18 lending and other financial assistance activi19 ties to South Africa in order to support the

20 transition to nonracial democracy in South

21 Africa.

22 (c) TECHNICAL ASSISTANCE.—The Secretary

23 of the Treasury should instruct the United

24 States Executive Director of each relevant

25 international financial institution to urge
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1 that institution to fund programs to initiate

2 or expand technical assistance to South Afri3 ca for the purpose of training the people of

4 South Africa in government management

5 techniques.

6 SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

7 In carrying out this Act, the President

8 should consult closely with South African in9 dividuals and organizations representative of

10 the majority population in South Africa (par11 ticularly consultations through the Transi12 tional Executive Council) and others commit13 ted to abolishing the remnants of apartheid.