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. HAM-
ILTON, 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 Connecti-
cut, Mr. HASTINGS, Mr. HILLIARD, Ms. NORTON, Mr. JEFFERSON, Ms.
EDDIE BERNICE JOHNSON of Texas, Mr. LEWIS of Georgia, Ms. MCKIN-
NEY, 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, Bank-
ing, 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
HR 3225 RH
[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 Commit-
tee 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘South African Demo-
cratic 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 op-
portunity for a transition to a peaceful, stable, and
democratic future.
(2) 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 Transi-
tional Executive Council and the setting of a date
for nonracial elections.
HR 3225 RH
(3) The international community has a vital in-
terest in supporting the transition from apartheid
toward nonracial democracy.
(4) The success of the transition in South Afri-
ca is crucial to the stability and economic develop-
ment of the southern African region.
(5) 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.
(6) In light of recent developments, the continu-
ation of these economic sanctions is detrimental to
persons disadvantaged by apartheid.
(7) 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.
HR 3225 RH
SEC. 3. UNITED STATES POLICY.
It is the sense of the Congress that—
(1) the United States should—
(A) strongly support the Transitional Ex-
ecutive Council in South Africa,
(B) encourage rapid progress toward the
establishment of a nonracial democratic govern-
ment 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 pro-
vide
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 inter-
national 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 manage-
rial opportunities, professional advancement, train-
ing, and employment for disadvantaged South Afri-
HR 3225 RH
cans and to respond to the historical inequities cre-
ated under apartheid, the United States should—
(A) promote the expansion of private en-
terprise and free markets in South Africa,
(B) encourage the South African private
sector to take a special responsibility and inter-
est in providing such opportunities, advance-
ment, training, and employment for disadvan-
taged South Africans,
(C) encourage United States private sector
investment in and trade with South Africa,
(D) urge United States investors to de-
velop a working partnership with representative
organs of South African civil society, particu-
larly churches and trade unions, in promoting
responsible codes of corporate conduct and
other measures to address the historical inequi-
ties created under apartheid;
(5) the United States should urge the Govern-
ment of South Africa to liberalize its trade and in-
vestment 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 coopera-
tion between South Africa and other countries in the
HR 3225 RH
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 establish-
ment 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 Com-
prehensive 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 speci-
fied 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 re-
pealed 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.
HR 3225 RH
(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 As-
sistance Act of 1961 that were enacted by the Com-
prehensive 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), re-
lating to assistance for disadvantaged South Afri-
cans; 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 Co-
operation Act of 1985 (99 Stat. 261) is repealed.
(2) Section 211 of the Foreign Relations Au-
thorization Act, Fiscal Years 1986 and 1987 (99
Stat. 432) is repealed, and section 1(b) of that Act
is amended by the striking the item in the table of
contents relating to section 211.
HR 3225 RH
(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’’.
(10)
The
undesignated
paragraph
entitled
‘‘STATE AND LOCAL ANTI-APARTHEID POLICIES’’ in
chapter IX of the Dire Emergency Supplemental Ap-
propriations and Transfers, Urgent Supplementals,
and Correcting Enrollment Errors Act of 1989 (22
U.S.C. 5117) is repealed effective October 1,
1995.
(11) Section 210 of the Urgent Supplemental
Appropriations Act, 1986 (100 Stat. 749) is re-
pealed effective October 1, 1995.
(c) SANCTIONS MEASURES ADOPTED BY STATE OR
LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—The Con-
gress urges all State or local governments and all private
entities in the United States that have adopted any re-
striction on economic interactions with South Africa, or
HR 3225 RH
any policy discouraging such interaction, to rescind such
restriction or policy.
(d) CONTINUATION OF UN SPECIAL SANCTIONS.—
It is the sense of the Congress that the United States
should continue to respect United Nations Security Coun-
cil 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 co-
operation that would contribute to the manufacture and
development by South Africa of nuclear weapons or nu-
clear 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
the Act (relating to the Economic Support Fund) to sup-
port the transition to nonracial democracy in South
Africa. Such assistance shall—
(1) focus on building the capacity of disadvan-
taged South Africans to take their rightful place in
HR 3225 RH
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 popu-
lation and which have the support of the disadvan-
taged communities being served by such organiza-
tions;
(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 apart-
heid;
(B) emphasize education with South Africa
to the extent the 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 pro-
grams, political party building, and technical elec-
toral assistance;
(5) support activities and entities, such as the
Peace Accord structures, which are working to end
the violence in South Africa; and
HR 3225 RH
(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 ac-
cordance with this section may not be made available
to the Government of South Africa, or organizations
financed and substantially controlled by that govern-
ment, 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 insti-
tutions,
particularly
those
traditionally
dis-
advantaged by apartheid policies; and
(C) any other organization, entity, or activ-
ity if the President determines that the assist-
ance would promote the transition to nonracial
democracy in South Africa.
Any determination under subparagraph (C) should
be based on consultations with South African indi-
viduals
and
organizations
representative
of
the
HR 3225 RH
majority population in South Africa (particularly
consultations through the Transitional Executive
Council) and consultations with the appropriate con-
gressional committees.
SEC. 6. UNITED STATES INVESTMENT AND TRADE.
(a) TAX TREATY.—The President should begin im-
mediately to negotiate a tax treaty with South Africa to
facilitate United States investment in that country.
(b) OPIC.—The President should immediately initi-
ate negotiations with the Government of South Africa for
an agreement authorizing the Overseas Private Invest-
ment 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 carry-
ing 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 it activities in
connection with exports to South Africa.
(e) PROMOTING DISADVANTAGED ENTERPRISES.—
(1)
INVESTMENT
AND
TRADE
PROGRAMS.—
Each of the agencies referred to in subsection (b)
HR 3225 RH
through (d) should take active steps to encourage
the use of its programs to promote business enter-
prises in South Africa that are majority-owned by
South Africans disadvantaged by apartheid.
(2) UNITED
STATES
GOVERNMENT
PROCURE-
MENT.—To the extent not inconsistent with the obli-
gations 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 ex-
penditure of funds for, United States Government
contracts.
SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PRO-
GRAMS.
The Director of the United States Information Agen-
cy should use the authorities of the United States Infor-
mation and Educational Exchange Act of 1948 to promote
the development of a nonracial democracy in South Africa.
HR 3225 RH
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 Com-
munity 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 initi-
ate or expand its lending and other financial assistance
activities to South Africa in order to support the transition
to nonracial democracy in South Africa.
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 Exec-
HR 3225 RH
utive Council) and others committed to abolishing the
remnants of apartheid.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘South African Demo-
cratic 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 oppor-
tunity for a transition to a peaceful, stable, and
democratic future.
(2) The United States policy of economic sanc-
tions toward the apartheid government of South Afri-
ca, as expressed in the Comprehensive Anti-Apartheid
Act of 1986, helped bring about reforms in that sys-
tem of government and has facilitated the establish-
ment 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 agree-
ment includes the establishment of a Transitional Ex-
ecutive Council and the setting of a date for nonracial
elections.
HR 3225 RH
(4) The international community has a vital in-
terest in supporting the transition from apartheid to-
ward 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 Con-
gress and other representative leaders in South Africa
have declared that the time has come when the inter-
national community should lift all economic sanc-
tions against South Africa.
(7) In light of recent developments, the continu-
ation of these economic sanctions is detrimental to
persons disadvantaged by apartheid.
(8) Those calling for the lifting of economic sanc-
tions 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 Organi-
zation of African Unity, for example, has urged that
the oil embargo established pursuant to a 1986 Gen-
eral Assembly resolution be lifted after the establish-
ment and commencement of the work of the Transi-
tional Executive Council.
HR 3225 RH
SEC. 3. UNITED STATES POLICY.
It is the sense of the Congress that—
(1) the United States should—
(A) strongly support the Transitional Exec-
utive Council in South Africa,
(B) encourage rapid progress toward the es-
tablishment of a nonracial democratic govern-
ment in South Africa, and
(C) support a consolidation of democracy in
South Africa through democratic elections for an
interim government and a new nonracial con-
stitution;
(2) the United States should continue to provide
assistance to support the transition to a nonracial de-
mocracy in South Africa, and should urge inter-
national financial institutions and other donors to
also provide such assistance;
(3) to the maximum extent practicable, the Unit-
ed States should consult closely with international fi-
nancial institutions, other donors, and South African
entities on a coordinated strategy to support the tran-
sition to a nonracial democracy in South Africa;
(4) in order to provide ownership and manage-
rial opportunities, professional advancement, train-
ing, and employment for disadvantaged South Afri-
HR 3225 RH
cans and to respond to the historical inequities cre-
ated under apartheid, the United States should—
(A) promote the expansion of private enter-
prise and free markets in South Africa,
(B) encourage the South African private
sector to take a special responsibility and inter-
est in providing such opportunities, advance-
ment, training, and employment for disadvan-
taged South Africans,
(C) encourage United States private sector
investment in and trade with South Africa, and
(D) urge United States investors to develop
a working partnership with representative or-
gans of South African civil society, particularly
churches and trade unions, in promoting respon-
sible codes of corporate conduct and other meas-
ures to address the historical inequities created
under apartheid;
(5) the United States should urge the Govern-
ment of South Africa to liberalize its trade and in-
vestment 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 re-
HR 3225 RH
gion to foster regional stability and economic growth;
and
(7) the United States should demonstrate its sup-
port 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 AF-
RICA.
(a) COMPREHENSIVE ANTI-APARTHEID ACT.—
(1) IN GENERAL.—All provisions of the Com-
prehensive Anti-Apartheid Act of 1986 (22 U.S.C.
5001 and following) are repealed as of the date of en-
actment 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 Com-
prehensive Anti-Apartheid Act of 1986 are repealed as
of the date on which the President certifies to the Con-
gress that an interim government, elected on a
nonracial basis through free and fair elections, has
taken office in South Africa.
HR 3225 RH
(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 As-
sistance Act of 1961 that were enacted by the Com-
prehensive 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), relat-
ing 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 Author-
ization 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.
HR 3225 RH
(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’’.
(10) 
The 
undesignated 
paragraph 
entitled
‘‘STATE AND LOCAL ANTI-APARTHEID POLICIES’’ in
chapter IX of the Dire Emergency Supplemental Ap-
propriations and Transfers, Urgent Supplementals,
and Correcting Enrollment Errors Act of 1989 (22
U.S.C. 5117) is repealed.
(11) Section 210 of the Urgent Supplemental
Appropriations Act, 1986 (100 Stat. 749) is repealed.
(c) SANCTIONS MEASURES ADOPTED BY STATE OR
LOCAL GOVERNMENTS OR PRIVATE ENTITIES.—The Con-
gress urges all State or local governments and all private
entities in the United States that have adopted any restric-
tion on economic interactions with South Africa, or any
policy discouraging such interaction, to rescind such re-
striction or policy.
HR 3225 RH
(d) CONTINUATION OF UN SPECIAL SANCTIONS.—It is
the sense of the Congress that the United States should con-
tinue to respect United Nations Security Council resolu-
tions 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, restrict-
ing 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 en-
couraged to provide assistance under chapter 10 of part I
of the Foreign Assistance Act of 1961 (relating to the Devel-
opment 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 disadvan-
taged 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
HR 3225 RH
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 Afri-
ca 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 pro-
grams, political party building, and technical elec-
toral 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 pro-
vided in paragraph (2), assistance provided in ac-
cordance with this section may not be made available
HR 3225 RH
to the Government of South Africa, or organizations
financed and substantially controlled by that govern-
ment, 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 institu-
tions, particularly those traditionally disadvan-
taged by apartheid policies; and
(C) any other organization, entity, or activ-
ity if the President determines that the assist-
ance would promote the transition to nonracial
democracy in South Africa.
Any determination under subparagraph (C) should be
based on consultations with South African individ-
uals and organizations representative of the majority
population in South Africa (particularly consulta-
tions through the Transitional Executive Council)
and consultations with the appropriate congressional
committees.
(c) INELIGIBLE ORGANIZATIONS.—An organization
that has engaged in armed struggle or other acts of violence
HR 3225 RH
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.
SEC. 6. UNITED STATES INVESTMENT AND TRADE.
(a) TAX TREATY.—The President should begin imme-
diately to negotiate a tax treaty with South Africa to facili-
tate 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 pro-
vide 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
HR 3225 RH
(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
PROCURE-
MENT.—To the extent not inconsistent with the obli-
gations 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 car-
rying out activities in South Africa shall, to the max-
imum extent practicable, in procuring goods or serv-
ices, make affirmative efforts to assist business enter-
prises having more than 50 percent beneficial owner-
ship 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 PRO-
GRAMS.
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 de-
velopment of a nonracial democracy in South Africa.
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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 is-
sues, 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 Com-
munity 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 Recon-
struction and Development and the International Develop-
ment Association, to urge that institution to initiate or ex-
pand its lending and other financial assistance activities
to South Africa in order to support the transition to
nonracial democracy in South Africa.
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 Execu-
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tive Council) and others committed to abolishing the rem-
nants of apartheid.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘South Afri-
can Democratic Transition Support Act of
1993’’.
SEC. 2. FINDINGS.
The Congress makes the following find-
ings:
(1) After decades of apartheid, South
Africa has entered a new era which pre-
sents a historic opportunity for a transi-
tion to a peaceful, stable, and democratic
future.
(2) Through broad and open negotia-
tions, the parties in South Africa have
reached a landmark agreement on the fu-
ture of their country. This agreement in-
cludes the establishment of a Transi-
tional Executive Council and the setting
of a date for nonracial elections.
(3) The international community has
a vital interest in supporting the transi-
tion from apartheid toward nonracial de-
mocracy.
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(4) The success of the transition in
South Africa is crucial to the stability
and economic development of the south-
ern African region.
(5) Nelson Mandela of the African Na-
tional Congress and other representative
leaders in South Africa have declared
that the time has come when the inter-
national community should lift all eco-
nomic sanctions against South Africa.
(6) In light of recent developments,
the continuation of these economic sanc-
tions is detrimental to persons disadvan-
taged by apartheid.
(7) Those calling for the lifting of eco-
nomic sanctions against South Africa
have made clear that they do not seek the
immediate termination of the United Na-
tions-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 pursu-
ant to a 1986 General Assembly resolu-
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tion be lifted after the establishment and
commencement of the work of the Transi-
tional Executive Council.
SEC. 3. UNITED STATES POLICY.
It is the sense of the Congress that—
(1) the United States should—
(A) strongly support the Transi-
tional Executive Council in South Af-
rica,
(B) encourage rapid progress to-
ward the establishment of a nonracial
democratic government in South Afri-
ca, and
(C) support a consolidation of de-
mocracy in South Africa through
democratic elections for an interim
government and a new nonracial con-
stitution;
(2) the United States should continue
to provide assistance to support the tran-
sition to a nonracial democracy in South
Africa, and should urge international fi-
nancial institutions and other donors to
also provide such assistance;
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(3) to the maximum extent prac-
ticable, the United States should consult
closely with international financial insti-
tutions, other donors, and South African
entities on a coordinated strategy to sup-
port the transition to a nonracial democ-
racy 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 cre-
ated under apartheid, the United States
should—
(A) promote the expansion of pri-
vate enterprise and free markets in
South Africa,
(B) encourage the South African
private sector to take a special re-
sponsibility and interest in providing
such 
opportunities, 
advancement,
training, and employment for dis-
advantaged South Africans,
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(C) encourage United States pri-
vate sector investment in and trade
with South Africa, and
(D) urge United States investors
to develop a working partnership
with representative organs of South
African 
civil 
society, 
particularly
churches and trade unions, in pro-
moting responsible codes of corporate
conduct and other measures to ad-
dress 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 facili-
tate the expansion of the economy, and to
shift resources to meet the needs of dis-
advantaged South Africans;
(6) the United States should promote
cooperation between South Africa and
other countries in the region to foster re-
gional stability and economic growth;
and
(7) The United States should dem-
onstrate its support for an expedited
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transition to, and should adopt a long
term policy beneficial to the establish-
ment and perpetuation of, a nonracial de-
mocracy 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 re-
pealed 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 Con-
gress that an interim government, elected
on a nonracial basis through free and
fair elections, has taken office in South
Africa.
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(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: sub-
sections (e)(2), (f), and (g) of section 116
(22 U.S.C. 2151n); section 117 (22 U.S.C.
2151o), relating to assistance for dis-
advantaged 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 pro-
visions are repealed or amended as follows:
(1) Subsections (c) and (d) of section
802 of the International Security and De-
velopment Cooperation Act of 1985 (99
Stat. 261) is repealed.
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(2) Section 211 of the Foreign Rela-
tions 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 For-
eign Relations Authorization Act, Fiscal
Years 1988 and 1989 (101 Stat. 1415) is re-
pealed, 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 Rela-
tions Authorization Act, Fiscal Years 1992
and 1993 (105 Stat. 716) is repealed, and
section 2 of that Act is amended by strik-
ing the item in the table of contents relat-
ing to section 362.
(5) Section 2(b)(9) of the Export-Im-
port 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
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amended by repealing subsection (b) and
by striking ‘‘(a)’’.
(7) Section 330 of H.R. 5205 of the
99th Congress (Department of Transpor-
tation and Related Agencies Appropria-
tions Act, 1987) (22 U.S.C. 5056a) as incor-
porated 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 Inter-
nal 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 transi-
tional rules contained in Revenue Ruling
92–62 which apply by reason of the termi-
nation 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’’.
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(10) The undesignated paragraph en-
titled ‘‘STATE
AND
LOCAL
ANTI-APARTHEID
POLICIES’’ in chapter IX of the Dire Emer-
gency Supplemental Appropriations and
Transfers, Urgent Supplementals, and
Correcting Enrollment Errors Act of 1989
(22 U.S.C. 5117) is repealed.
(11) Section 210 of the Urgent Supple-
mental Appropriations Act, 1986 (100
Stat. 749) is repealed.
(c) 
SANCTIONS
MEASURES
ADOPTED
BY
STATE OR LOCAL GOVERNMENTS OR PRIVATE EN-
TITIES.—The Congress urges all State or local
governments and all private entities in the
United States that have adopted any restric-
tion on economic interactions with South Af-
rica, or any policy discouraging such inter-
action, to rescind such restriction or policy.
(d) CONTINUATION
OF UN SPECIAL SANC-
TIONS.—It is the sense of the Congress that the
United States should continue to respect Unit-
ed Nations Security Council resolutions on
South Africa, including the resolution provid-
ing for a mandatory embargo on arms sales to
South Africa and the resolutions relating to
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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 weap-
ons or nuclear devices.
SEC. 5. UNITED STATES ASSISTANCE FOR THE TRANSITION
TO A NONRACIAL DEMOCRACY.
(a) IN GENERAL.—The President is author-
ized and encouraged to provide assistance
under chapter 10 of part I of the Foreign As-
sistance Act of 1961 (relating to the Develop-
ment Fund for Africa) or chapter 4 of part II
of the 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
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which have the support of the disadvan-
taged communities being served by such
organizations;
(3) in the case of education pro-
grams—
(A) be used to increase the capac-
ity of South African institutions to
better serve the needs of individuals
disadvantaged by apartheid;
(B) 
emphasize 
education 
with
South Africa to the extent the assist-
ance takes the form of scholarships
for disadvantaged South African stu-
dents; and
(C) fund nontraditional training
activities;
(4) 
support 
activities 
to 
prepare
South Africa for elections, including
voter and civic education programs, po-
litical party building, and technical elec-
toral assistance;
(5) support activities and entities,
such as the Peace Accord structures,
which are working to end the violence in
South Africa; and
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(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 Govern-
ment of South Africa, or organizations fi-
nanced 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 pro-
vided for—
(A) the Transitional Executive
Council;
(B) South African higher edu-
cation institutions, particularly those
traditionally disadvantaged by apart-
heid policies; and
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(C) any other organization, entity,
or activity if the President deter-
mines that the assistance would pro-
mote the transition to nonracial de-
mocracy in South Africa.
Any determination under subparagraph
(C) should be based on consultations with
South African individuals and organiza-
tions representative of the majority popu-
lation in South Africa (particularly con-
sultations through the Transitional Exec-
utive Council) and consultations with the
appropriate congressional committees.
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 imme-
diately initiate negotiations with the Govern-
ment of South Africa for an agreement au-
thorizing the Overseas Private Investment
Corporation to carry out programs with re-
spect to South Africa in order to expand
United States investment in that country.
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(c) TRADE AND DEVELOPMENT AGENCY.—In
carrying out section 661 of the Foreign Assist-
ance Act of 1961, the Director of the Trade
and Development Agency should provide ad-
ditional funds for activities related to projects
in South Africa.
(d) EXPORT-IMPORT BANK.—The Export-Im-
port Bank of the United States should expand
its activities in connection with exports to
South Africa.
(e) 
PROMOTING
DISADVANTAGED
ENTER-
PRISES.—
(1) 
INVESTMENT
AND
TRADE
PRO-
GRAMS.—Each of the agencies referred to
in subsection (b) through (d) should take
active steps to encourage the use of its
programs to promote business enter-
prises in South Africa that are majority-
owned by South Africans disadvantaged
by apartheid.
(2) UNITED
STATES
GOVERNMENT
PRO-
CUREMENT.—To the extent not inconsist-
ent with the obligations of the United
States under any international agree-
ment, the Secretary of State and the head
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of any other department or agency of the
United States carrying out activities in
South Africa shall, to the maximum ex-
tent practicable, in procuring goods or
services, make affirmative efforts to as-
sist 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 PRO-
GRAMS.
The Director of the United States Infor-
mation Agency should use the authorities of
the United States Information and Edu-
cational 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 agree-
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ments 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 en-
courage other donors, particularly Japan and
the European Community countries, to ex-
pand their activities in support of the transi-
tion to nonracial democracy in South Africa.
(b) 
INTERNATIONAL
FINANCIAL
INSTITU-
TIONS.—The Secretary of the Treasury should
instruct the United States Executive Director
of each relevant international financial insti-
tution, 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 activi-
ties 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
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that institution to fund programs to initiate
or expand technical assistance to South Afri-
ca 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 in-
dividuals and organizations representative of
the majority population in South Africa (par-
ticularly consultations through the Transi-
tional Executive Council) and others commit-
ted to abolishing the remnants of apartheid.