`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3225 Enrolled Bill (ENR)]

        H.R.3225
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act


 
    To support the transition to nonracial democracy in South Africa.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS.

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

SEC. 3. UNITED STATES POLICY.

    It is the sense of the Congress that--
        (1) the United States should--
            (A) strongly support the Transitional Executive Council in 
        South Africa,
            (B) encourage rapid progress toward the establishment of a 
        nonracial democratic government in South Africa, and
            (C) support a consolidation of democracy in South Africa 
        through democratic elections for an interim government and a new 
        nonracial constitution;
        (2) the United States should continue to provide assistance to 
    support the transition to a nonracial democracy in South Africa, and 
    should urge international financial institutions and other donors to 
    also provide such assistance;
        (3) to the maximum extent practicable, the United States should 
    consult closely with international financial institutions, other 
    donors, and South African entities on a coordinated strategy to 
    support the transition to a nonracial democracy in South Africa;
        (4) in order to provide ownership and managerial opportunities, 
    professional advancement, training, and employment for disadvantaged 
    South Africans and to respond to the historical inequities created 
    under apartheid, the United States should--
            (A) promote the expansion of private enterprise and free 
        markets in South Africa,
            (B) encourage the South African private sector to take a 
        special responsibility and interest in providing such 
        opportunities, advancement, training, and employment for 
        disadvantaged South Africans,
            (C) encourage United States private sector investment in and 
        trade with South Africa,
            (D) urge United States investors to develop a working 
        partnership with representative organs of South African civil 
        society, particularly churches and trade unions, in promoting 
        responsible codes of corporate conduct and other measures to 
        address the historical inequities created under apartheid;
        (5) the United States should urge the Government of South Africa 
    to liberalize its trade and investment policies to facilitate the 
    expansion of the economy, and to shift resources to meet the needs 
    of disadvantaged South Africans;
        (6) the United States should promote cooperation between South 
    Africa and other countries in the region to foster regional 
    stability and economic growth; and
        (7) the United States should demonstrate its support for an 
    expedited transition to, and should adopt a long term policy 
    beneficial to the establishment and perpetuation of, a nonracial 
    democracy in South Africa.
SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND OTHER MEASURES DIRECTED 
AT SOUTH AFRICA.
    (a) Comprehensive Anti-Apartheid Act.--
        (1) In general.--All provisions of the Comprehensive Anti-
    Apartheid Act of 1986 (22 U.S.C. 5001 and following) are repealed as 
    of the date of enactment of this Act, except for the sections 
    specified in paragraph (2).
        (2) Effective date of repeal of code of conduct requirements.--
    Sections 1, 3, 203(a), 203(b), 205, 207, 208, 601, 603, and 604 of 
    the Comprehensive Anti-Apartheid Act of 1986 are repealed as of the 
    date on which the President certifies to the Congress that an 
    interim government, elected on a nonracial basis through free and 
    fair elections, has taken office in South Africa.
        (3) Conforming amendments.--(A) Section 3 of the Comprehensive 
    Anti-Apartheid Act of 1986 is amended by striking paragraphs (2) 
    through (4) and paragraphs (7) through (9), by inserting ``and'' at 
    the end of paragraph (5), and by striking ``; and'' at the end of 
    paragraph (6) and inserting a period.
        (B) The following provisions of the Foreign Assistance Act of 
    1961 that were enacted by the Comprehensive Anti-Apartheid Act of 
    1986 are repealed: subsections (e)(2), (f), and (g) of section 116 
    (22 U.S.C. 2151n); section 117 (22 U.S.C. 2151o), relating to 
    assistance for disadvantaged South Africans; and section 535 (22 
    U.S.C. 2346d). Section 116(e)(1) of the Foreign Assistance Act of 
    1961 is amended by striking ``(1)''.
    (b) Other Provisions.--The following provisions are repealed or 
amended as follows:
        (1) Subsections (c) and (d) of section 802 of the International 
    Security and Development Cooperation Act of 1985 (99 Stat. 261) is 
    repealed.
        (2) Section 211 of the Foreign Relations Authorization Act, 
    Fiscal Years 1986 and 1987 (99 Stat. 432) is repealed, and section 
    1(b) of that Act is amended by striking the item in the table of 
    contents relating to section 211.
        (3) Sections 1223 and 1224 of the Foreign Relations 
    Authorization Act, Fiscal Years 1988 and 1989 (101 Stat. 1415) is 
    repealed, and section 1(b) of that Act is amended by striking the 
    items in the table of contents relating to sections 1223 and 1224.
        (4) Section 362 of the Foreign Relations Authorization Act, 
    Fiscal Years 1992 and 1993 (105 Stat. 716) is repealed, and section 
    2 of that Act is amended by striking the item in the table of 
    contents relating to section 362.
        (5) Section 2(b)(9) of the Export-Import Bank Act of 1945 (12 
    U.S.C. 635(b)(9)) is repealed.
        (6) Section 43 of the Bretton Woods Agreements Act (22 U.S.C. 
    286aa) is amended by repealing subsection (b) and by striking 
    ``(a)''.
        (7) Section 330 of H.R. 5205 of the 99th Congress (Department of 
    Transportation and Related Agencies Appropriations Act, 1987) (22 
    U.S.C. 5056a) as incorporated by reference in section 101(l) of 
    Public Law 99-500 and Public Law 99-591, and made effective as if 
    enacted into law by section 106 of Public Law 100-202, is repealed.
        (8)(A) Section 901(j)(2)(C) of the Internal Revenue Code of 1986 
    (26 U.S.C. 901(j)(2)(C)) is repealed.
        (B) Subparagraph (A) shall not be construed as affecting any of 
    the transitional rules contained in Revenue Ruling 92-62 which apply 
    by reason of the termination of the period for which section 901(j) 
    of the Internal Revenue Code of 1986 was applicable to South Africa.
        (9) The table in section 502(b) of the Trade Act of 1974 (19 
    U.S.C. 2462(b)) is amended by striking ``Republic of South Africa''.
    (c) Sanctions Measures Adopted by State or Local Governments or 
Private Entities.--
        (1) Policy regarding rescission.--The Congress urges all State 
    or local governments and all private entities in the United States 
    that have adopted any restriction on economic interactions with 
    South Africa, or any policy discouraging such interaction, to 
    rescind such restriction or policy.
        (2) Repeal of provisions relating to withholding federal 
    funds.--Effective October 1, 1995, the following provisions are 
    repealed:
            (A) The undesignated paragraph entitled ``state and local 
        anti-apartheid policies'' in chapter IX of the Dire Emergency 
        Supplemental Appropriations and Transfers, Urgent Supplementals, 
        and Correcting Enrollment Errors Act of 1989 (22 U.S.C. 5117).
            (B) Section 210 of the Urgent Supplemental Appropriations 
        Act, 1986 (100 Stat. 749).
    (d) Continuation of UN Special Sanctions.--It is the sense of the 
Congress that the United States should continue to respect United 
Nations Security Council resolutions on South Africa, including the 
resolution providing for a mandatory embargo on arms sales to South 
Africa and the resolutions relating to the import of arms, restricting 
exports to the South African military and police, and urging states to 
refrain from nuclear cooperation that would contribute to the 
manufacture and development by South Africa of nuclear weapons or 
nuclear devices.
SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION TO A NONRACIAL 
DEMOCRACY.
    (a) In General.--The President is authorized and encouraged to 
provide assistance under chapter 10 of part I of the Foreign Assistance 
Act of 1961 (relating to the Development Fund for Africa) or chapter 4 
of part II of that Act (relating to the Economic Support Fund) to 
support the transition to nonracial democracy in South Africa. Such 
assistance shall--
        (1) focus on building the capacity of disadvantaged South 
    Africans to take their rightful place in the political, social, and 
    economic systems of their country;
        (2) give priority to working with and through South African 
    nongovernmental organizations whose leadership and staff represent 
    the majority population and which have the support of the 
    disadvantaged communities being served by such organizations;
        (3) in the case of education programs--
            (A) be used to increase the capacity of South African 
        institutions to better serve the needs of individuals 
        disadvantaged by apartheid;
            (B) emphasize education within South Africa to the extent 
        that assistance takes the form of scholarships for disadvantaged 
        South African students; and
            (C) fund nontraditional training activities;
        (4) support activities to prepare South Africa for elections, 
    including voter and civic education programs, political party 
    building, and technical electoral assistance;
        (5) support activities and entities, such as the Peace Accord 
    structures, which are working to end the violence in South Africa; 
    and
        (6) support activities to promote human rights, democratization, 
    and a civil society.
    (b) Government of South Africa.--
        (1) Limitation on assistance.--Except as provided in paragraph 
    (2), assistance provided in accordance with this section may not be 
    made available to the Government of South Africa, or organizations 
    financed and substantially controlled by that government, unless the 
    President certifies to the Congress that an interim government that 
    was elected on a nonracial basis through free and fair elections has 
    taken office in South Africa.
        (2) Exceptions.--Notwithstanding paragraph (1), assistance may 
    be provided for--
            (A) the Transitional Executive Council;
            (B) South African higher education institutions, 
        particularly those traditionally disadvantaged by apartheid 
        policies; and
            (C) any other organization, entity, or activity if the 
        President determines that the assistance would promote the 
        transition to nonracial democracy in South Africa.
    Any determination under subparagraph (C) should be based on 
    consultations with South African individuals and organizations 
    representative of the majority population in South Africa 
    (particularly consultations through the Transitional Executive 
    Council) and consultations with the appropriate congressional 
    committees.
    (c) Ineligible Organizations.--
        (1) Acts of violence.--An organization that has engaged in armed 
    struggle or other acts of violence shall not be eligible for 
    assistance provided in accordance with this section unless that 
    organization is committed to a suspension of violence in the context 
    of progress toward nonracial democracy.
        (2) Views inconsistent with democracy and free enterprise.--
    Assistance provided in accordance with this section may not be made 
    available to any organization that has espoused views inconsistent 
    with democracy and free enterprise unless such organization is 
    engaged actively and positively in the process of transition to a 
    nonracial democracy and such assistance would advance the United 
    States objective of promoting democracy and free enterprise in South 
    Africa.

SEC. 6. UNITED STATES INVESTMENT AND TRADE.

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

SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PROGRAMS.

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

SEC. 8. OTHER COOPERATIVE AGREEMENTS.

    In addition to the actions specified in the preceding sections of 
this Act, the President should seek to conclude cooperative agreements 
with South Africa on a range of issues, including cultural and 
scientific issues.
SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND OTHER DONORS.
    (a) In General.--The President should encourage other donors, 
particularly Japan and the European Community countries, to expand their 
activities in support of the transition to nonracial democracy in South 
Africa.
    (b) International Financial Institutions.--The Secretary of the 
Treasury should instruct the United States Executive Director of each 
relevant international financial institution, including the 
International Bank for Reconstruction and Development and the 
International Development Association, to urge that institution to 
initiate or expand its lending and other financial assistance activities 
to South Africa in order to support the transition to nonracial 
democracy in South Africa.
    (c) Technical Assistance.--The Secretary of the Treasury should 
instruct the United States Executive Director of each relevant 
international financial institution to urge that institution to fund 
programs to initiate or expand technical assistance to South Africa for 
the purpose of training the people of South Africa in government 
management techniques.

SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

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







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.`