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) The United States policy of economic sanc-
tions toward the apartheid government of South Af-
rica, as expressed in the Comprehensive Anti-Apart-
heid Act of 1986, helped bring about reforms in that
system of government and has facilitated the estab-
lishment 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 Transi-
tional Executive Council and the setting of a date
for nonracial elections.
(4) The international community has a vital in-
terest in supporting the transition from apartheid
toward nonracial democracy.
(5) The success of the transition in South Afri-
ca is crucial to the stability and economic develop-
ment 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 continu-
ation 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 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-
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
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 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
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.
(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 striking the item in the table of con-
tents relating to section 211.
(3) Sections 1223 and 1224 of the Foreign Re-
lations 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 Au-
thorization 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 con-
tents 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 Agree-
ments Act (22 U.S.C. 286aa) is amended by repeal-
ing subsection (b) and by striking ‘‘(a)’’.
(7) Section 330 of H.R. 5205 of the 99th Con-
gress (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 Rev-
enue Code of 1986 (26 U.S.C. 901(j)(2)(C)) is re-
pealed.
(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 RECISSION.—The Con-
gress 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
POLI-
CIES’’ in chapter IX of the Dire Emergency
Supplemental Appropriations and Transfers,
Urgent Supplementals, and Correcting Enroll-
ment Errors Act of 1989 (22 U.S.C. 5117).
(B) Section 210 of the Urgent Supple-
mental 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 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
that Act (relating to the Economic Support Fund) to sup-
port the transition to nonracial democracy in South Afri-
ca. 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
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 within South Af-
rica 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
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 ma-
jority population in South Africa (particularly con-
sultations through the Transitional Executive Coun-
cil) and consultations with the appropriate congres-
sional committees.
(c) INELIGIBLE ORGANIZATIONS.—
(1) ACTS OF VIOLENCE.—An organization that
has engaged in armed struggle or other acts of vio-
lence shall not be eligible for assistance provided in
accordance with this section unless that organization
is committed to a suspension of violence in the con-
text of progress toward nonracial democracy.
(2) VIEWS
INCONSISTENT
WITH
DEMOCRACY
AND FREE ENTERPRISE.—Assistance provided in ac-
cordance with this section may not be made available
to any organization that has espoused views incon-
sistent 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 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 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 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.
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.
(c) TECHNICAL ASSISTANCE.—The Secretary of the
Treasury should instruct the United States Executive Di-
rector of each relevant international financial institution
to urge that institution to fund programs to initiate or
expand technical assistance to South Africa for the pur-
pose 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 Exec-
utive Council) and others committed to abolishing the
remnants of apartheid.
Passed the House of Representatives November 19,
1993.
Attest:
DONNALD K. ANDERSON,
Clerk.
By DALLAS L. DENDY, Jr.,
Assistant to the Clerk.