I

103D CONGRESS

2D SESSION S. 1493

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 7, 1994

Referred jointly to the Committees on Foreign Affairs, Banking, Finance and

Urban Affairs, Ways and Means, Public Works and Transportation, and

Government Operations

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’’.
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1 SEC. 2. FINDINGS.

2 The Congress makes the following findings:

3 (1) After decades of apartheid, South Africa

4 has entered a new era which presents a historic op5 portunity for a transition to a peaceful, stable, and

6 democratic future.

7 (2) 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 (3) The international community has a vital in14 terest in supporting the transition from apartheid

15 toward nonracial democracy.

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

19 (5) Representative leaders in South Africa, in20 cluding Nelson Mandela of the African National

21 Congress, have called for an end to all remaining

22 measures limiting economic contacts with South Af23 rica.

24 (6) In light of recent developments, the continu25 ation of such measures is detrimental to persons dis26 advantaged by apartheid.
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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-
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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, and

10 (C) encourage United States private sector

11 investment in and trade with South Africa;

12 (5) the United States should urge the Govern13 ment of South Africa to liberalize its trade and in14 vestment policies to facilitate the expansion of the

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

16 disadvantaged South Africans;

17 (6) the United States should promote coopera18 tion between South Africa and other countries in the

19 region to foster regional stability and economic

20 growth; and

21 (7) the United States should demonstrate its

22 support for an expedited transition to, and should

23 adopt a long term policy beneficial to the establish24 ment and perpetuation of, a nonracial democracy in

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

2 OTHER PROVISIONS 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 that

16 was elected on a nonracial basis through free and

17 fair elections 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 (c) SANCTIONS MEASURES ADOPTED BY STATE OR

16 LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—The Con17 gress urges all State or local governments and all private

18 entities in the United States that have adopted any re19 striction on economic interactions with South Africa, or

20 any policy discouraging such interaction, to rescind such

21 restriction or policy.

22 SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION

23 TO A NONRACIAL DEMOCRACY.

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

25 encouraged to provide assistance under chapter 10 of part
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1 I of the Foreign Assistance Act of 1961 (relating to the

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

3 that Act (relating to the Economic Support Fund) to sup4 port the transition to nonracial democracy in South Afri5 ca. Such assistance shall—

6 (1) focus on building the capacity of disadvan7 taged South Africans to take their rightful place in

8 the political, social, and economic systems of their

9 country;

10 (2) give priority to working with and through

11 South African nongovernmental organizations whose

12 leadership and staff represent the majority popu13 lation and which have the support of the disadvan14 taged communities being served by such organiza15 tions;

16 (3) in the case of education programs—

17 (A) be used to increase the capacity of

18 South African institutions to better serve the

19 needs of individuals disadvantaged by apart20 heid;

21 (B) emphasize education within South Af22 rica to the extent that assistance takes the form

23 of scholarships for disadvantaged South African

24 students; and

25 (C) fund nontraditional training activities;
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1 (4) support activities to prepare South Africa

2 for elections, including voter and civic education pro3 grams, political party building, and technical elec4 toral assistance;

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

6 Peace Accord structures, which are working to end

7 the violence in South Africa; and

8 (6) support activities to promote human rights,

9 democratization, and a civil society.

10 (b) GOVERNMENT OF SOUTH AFRICA.—

11 (1) LIMITATION ON ASSISTANCE.—Except as

12 provided in paragraph (2), assistance provided in ac13 cordance with this section may not be made available

14 to the Government of South Africa, or organizations

15 financed and substantially controlled by that govern16 ment, unless the President certifies to the Congress

17 that an interim government that was elected on a

18 nonracial basis through free and fair elections has

19 taken office in South Africa.

20 (2) EXCEPTIONS.—Notwithstanding paragraph

21 (1), assistance may be provided for—

22 (A) the Transitional Executive Council;

23 (B) South African higher education insti24 tutions, particularly those traditionally dis25 advantaged by apartheid policies; and
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1 (C) any other organization, entity, or activ2 ity if the President determines that the assist3 ance would promote the transition to nonracial

4 democracy in South Africa.

5 Any determination under subparagraph (C) shall be

6 based on consultations with South African individ7 uals and organizations representative of the majority

8 population in South Africa (particularly consulta9 tions through the Transitional Executive Council)

10 and consultations with the appropriate congressional

11 committees.

12 SEC. 6. UNITED STATES INVESTMENT AND TRADE.

13 (a) TAX TREATY.—The President should begin im14 mediately to negotiate a tax treaty with South Africa to

15 facilitate United States investment in that country.

16 (b) OPIC.—The President should immediately initi17 ate negotiations with the Government of South Africa for

18 an agreement authorizing the Overseas Private Invest19 ment Corporation to carry out programs with respect to

20 South Africa in order to expand United States investment

21 in that country.

22 (c) TRADE AND DEVELOPMENT AGENCY.—In carry23 ing out section 661 of the Foreign Assistance Act of 1961,

24 the Director of the Trade and Development Agency should
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1 provide additional funds for activities related to projects

2 in South Africa.

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

4 Bank of the United States should expand its activities in

5 connection with exports to South Africa.

6 (e) PROMOTING DISADVANTAGED ENTERPRISES.—

7 (1) INVESTMENT AND TRADE PROGRAMS.—

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

9 through (d) should take active steps to encourage

10 the use of its programs to promote business enter11 prises in South Africa that are majority-owned by

12 South Africans disadvantaged by apartheid.

13 (2) UNITED STATES GOVERNMENT PROCURE14 MENT.—Notwithstanding any law relating to the

15 making or performance of, or the expenditure of

16 funds for, United States Government contracts, the

17 Secretary of State and the head of any other depart18 ment or agency of the United States carrying out

19 activities in South Africa shall, to the maximum ex20 tent practicable, in procuring goods or services,

21 make affirmative efforts to assist business enter22 prises having more than 50 percent beneficial owner23 ship by South African blacks or other nonwhite

24 South Africans.
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1 SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO2 GRAMS.

3 The Director of the United States Information Agen4 cy should use the authorities of the United States Infor5 mation and Educational Exchange Act of 1948 to promote

6 the development of a nonracial democracy in South Africa.

7 SEC. 8. OTHER COOPERATIVE AGREEMENTS.

8 In addition to the actions specified in the preceding

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

10 cooperative agreements with South Africa on a range of

11 issues, including cultural and scientific issues.

12 SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS AND

13 OTHER DONORS.

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

15 other donors, particularly Japan and the European Com16 munity countries, to expand their activities in support of

17 the transition to nonracial democracy in South Africa.

18 (b) INTERNATIONAL FINANCIAL INSTITUTIONS.—

19 The Secretary of the Treasury shall instruct the United

20 States Executive Director of each relevant international

21 financial institution, including the International Bank for

22 Reconstruction and Development and the International

23 Development Association, to urge that institution to initi24 ate or expand its lending and other financial assistance

25 activities to South Africa in order to support the transition

26 to nonracial democracy in South Africa.
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1 SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

2 In carrying out this Act, the President shall consult

3 closely with South African individuals and organizations

4 representative of the majority population in South Africa

5 (particularly consultations through the Transitional Exec6 utive Council) and others committed to abolishing the

7 remnants of apartheid.

Passed the Senate September 24 (legislative day,

September 7), 1993.

Attest: MARTHA S. POPE,

Secretary.