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 Com-
mittee on International Relations, and in addition to the Committee on
Banking and Financial Services, for a period to be subsequently deter-
mined 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 devel-
opment 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PHASE-OUT OF EXISTING PRIVATE SECTOR DE-
VELOPMENT ENTERPRISE FUNDS.
(a) IN GENERAL.—Beginning 2 years after the date
of the enactment of this Act, none of the funds appro-
priated or otherwise available to the United States Agency
for International Development may be obligated or ex-
pended for assistance to the following enterprise funds (or
any successor enterprise funds):
(1) The Albanian-American Enterprise Fund.
(2) The Baltic-American Enterprise Fund.
(3) The Bulgarian American Enterprise Fund.
(4) The Central Asian-American Enterprise
Fund.
(5) The Czech and Slovak American Enterprise
Fund.
(6) The Hungarian-American Enterprise Fund.
(7) The Polish-American Enterprise Fund.
(8) The Romanian American Enterprise Fund.
(9) The Southern Africa Regional Enterprise
Fund.
(10) The U.S. Russia Investment Fund.
(11) The Western NIS Enterprise Fund.
(b) TRANSITION.—The President (acting through the
Administrator of the United States Agency for Inter-
national Development), in conjunction with the board of
directors of each enterprise fund referred to in paragraphs
(1) through (11) of subsection (a), shall, as soon as prac-
ticable after the date of the enactment of this Act, take
the necessary steps to wind up the affairs of each such
enterprise fund.
(c) REPEALS.—
(1) EXISTING
ENTERPRISE
FUNDS.—(A) The
following provisions of law are hereby repealed:
(i) Subsection (c) of section 498B of the
Foreign Assistance Act of 1961 (22 U.S.C.
2295b(c)).
(ii) Section 201 of the Support for East
European Democracy (SEED) Act of 1989 (22
U.S.C. 5421).
(B) The repeals made by subparagraph (A)
shall take effect 2 years after the date of the enact-
ment of this Act.
(2) TRANS-CAUCASUS
ENTERPRISE
FUND.—
Subsection (t) under the heading ‘‘Assistance for the
New Independent States of the Former Soviet
Union’’ of the Foreign Operation, Export Financing,
and Related Programs Appropriations Act, 1996, is
hereby repealed.
SEC. 2. PROHIBITION ON NEW PRIVATE SECTOR DEVELOP-
MENT ENTERPRISE FUNDS.
(a) IN GENERAL.—Beginning on March 12, 1998,
the President may not provide for the establishment of,
or the support for, any enterprise fund for the purposes
of promoting private sector development, or promoting
policies and practices conducive to private sector develop-
ment, in any foreign country.
(b) DEFINITION.—For purposes of this section, the
term ‘‘enterprise fund’’ means a private, nonprofit organi-
zation designated by the President in accordance with pro-
cedures applicable to the procedures used to designate en-
terprise funds under section 201 of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C.
5421).
SEC. 3. PROHIBITION ON ASSISTANCE FOR EUROPEAN
BANK FOR RECONSTRUCTION AND DEVELOP-
MENT FUNDS AND OTHER INTERNATIONAL
FINANCIAL INSTITUTION FUNDS.
(a) PROHIBITION
ON
UNITED
STATES
ASSIST-
ANCE.—Beginning 2 years after the date of the enactment
of this Act, none of the funds appropriated or otherwise
available to the United States Agency for International
Development may be obligated or expended for assistance
to any private sector development enterprise fund in which
the European Bank for Reconstruction and Development
(or any other international financial institution of which
the United States is a member) participates, or which is
financed by that Bank (or international financial institu-
tion), including the following enterprise funds (or any suc-
cessor enterprise funds):
(1) The Russia Small Business Fund.
(2) The Regional Venture Fund for the Lower
Volga Region.
(3) The Slovenia Development Capital Fund.
(b) OPPOSITION TO MULTILATERAL ASSISTANCE.—
The President shall instruct the United States Executive
Director of the European Bank for Reconstruction and
Development and any other international financial institu-
tion of which the United States is a member to use the
voice and vote of the United States to oppose the partici-
pation of that Bank or institution in, or financing by that
Bank or institution of, any private sector development en-
terprise fund, including any enterprise fund referred to in
paragraphs (1) through (3) of subsection (a).
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