I

105TH CONGRESS

1ST SESSION H. R. 564

To provide for the phase-out of existing private sector development enterprise

funds for foreign countries and to prohibit the establishment of, or

the support for, new private sector development enterprise funds, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1997

Mr. TRAFICANT introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on

Banking and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions

as fall within the jurisdiction of the committee concerned

A BILL

To provide for the phase-out of existing private sector development enterprise funds for foreign countries and to

prohibit the establishment of, or the support for, new

private sector development enterprise funds, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. PHASE-OUT OF EXISTING PRIVATE SECTOR DE2 VELOPMENT ENTERPRISE FUNDS.

3 (a) IN GENERAL.—Beginning 2 years after the date

4 of the enactment of this Act, none of the funds appro5 priated or otherwise available to the United States Agency

6 for International Development may be obligated or ex7 pended for assistance to the following enterprise funds (or

8 any successor enterprise funds):

9 (1) The Albanian-American Enterprise Fund.

10 (2) The Baltic-American Enterprise Fund.

11 (3) The Bulgarian American Enterprise Fund.

12 (4) The Central Asian-American Enterprise

13 Fund.

14 (5) The Czech and Slovak American Enterprise

15 Fund.

16 (6) The Hungarian-American Enterprise Fund.

17 (7) The Polish-American Enterprise Fund.

18 (8) The Romanian American Enterprise Fund.

19 (9) The Southern Africa Regional Enterprise

20 Fund.

21 (10) The U.S. Russia Investment Fund.

22 (11) The Western NIS Enterprise Fund.

23 (b) TRANSITION.—The President (acting through the

24 Administrator of the United States Agency for Inter25 national Development), in conjunction with the board of

26 directors of each enterprise fund referred to in paragraphs
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1 (1) through (11) of subsection (a), shall, as soon as prac2 ticable after the date of the enactment of this Act, take

3 the necessary steps to wind up the affairs of each such

4 enterprise fund.

5 (c) REPEALS.—

6 (1) EXISTING ENTERPRISE FUNDS.—(A) The

7 following provisions of law are hereby repealed:

8 (i) Subsection (c) of section 498B of the

9 Foreign Assistance Act of 1961 (22 U.S.C.

10 2295b(c)).

11 (ii) Section 201 of the Support for East

12 European Democracy (SEED) Act of 1989 (22

13 U.S.C. 5421).

14 (B) The repeals made by subparagraph (A)

15 shall take effect 2 years after the date of the enact16 ment of this Act.

17 (2) TRANS-CAUCASUS ENTERPRISE FUND.—

18 Subsection (t) under the heading ‘‘Assistance for the

19 New Independent States of the Former Soviet

20 Union’’ of the Foreign Operation, Export Financing,

21 and Related Programs Appropriations Act, 1996, is

22 hereby repealed.
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1 SEC. 2. PROHIBITION ON NEW PRIVATE SECTOR DEVELOP2 MENT ENTERPRISE FUNDS.

3 (a) IN GENERAL.—Beginning on March 12, 1998,

4 the President may not provide for the establishment of,

5 or the support for, any enterprise fund for the purposes

6 of promoting private sector development, or promoting

7 policies and practices conducive to private sector develop8 ment, in any foreign country.

9 (b) DEFINITION.—For purposes of this section, the

10 term ‘‘enterprise fund’’ means a private, nonprofit organi11 zation designated by the President in accordance with pro12 cedures applicable to the procedures used to designate en13 terprise funds under section 201 of the Support for East

14 European Democracy (SEED) Act of 1989 (22 U.S.C.

15 5421).

16 SEC. 3. PROHIBITION ON ASSISTANCE FOR EUROPEAN

17 BANK FOR RECONSTRUCTION AND DEVELOP18 MENT FUNDS AND OTHER INTERNATIONAL

19 FINANCIAL INSTITUTION FUNDS.

20 (a) PROHIBITION ON UNITED STATES ASSIST21 ANCE.—Beginning 2 years after the date of the enactment

22 of this Act, none of the funds appropriated or otherwise

23 available to the United States Agency for International

24 Development may be obligated or expended for assistance

25 to any private sector development enterprise fund in which

26 the European Bank for Reconstruction and Development
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1 (or any other international financial institution of which

2 the United States is a member) participates, or which is

3 financed by that Bank (or international financial institu4 tion), including the following enterprise funds (or any suc5 cessor enterprise funds):

6 (1) The Russia Small Business Fund.

7 (2) The Regional Venture Fund for the Lower

8 Volga Region.

9 (3) The Slovenia Development Capital Fund.

10 (b) OPPOSITION TO MULTILATERAL ASSISTANCE.—

11 The President shall instruct the United States Executive

12 Director of the European Bank for Reconstruction and

13 Development and any other international financial institu14 tion of which the United States is a member to use the

15 voice and vote of the United States to oppose the partici16 pation of that Bank or institution in, or financing by that

17 Bank or institution of, any private sector development en18 terprise fund, including any enterprise fund referred to in

19 paragraphs (1) through (3) of subsection (a).

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