Support for East European Democracy (SEED) Act of 1989
PL 101-179 (H.R.3402), enacted 11/28/1989

103 STAT. 1298 
PUBLIC LAW 101-179—NOV. 28, 1989 
Public Law 101-179 
101st Congress 
An Act 
Nov. 28, 1989 
[H.R. 3402] 
Support for East 
European 
Democracy 
(SEED) Act of 
1989 
22 u s e 5401 
note. 
To promote political democracy and economic pluralism in Poland and Hungary by 
assisting those nations during a critical period of transition and abetting the 
development in those nations of private business sectors, labor market reforms, and 
democratic institutions; to establish, through these steps, the framework for a 
composite program of support for East European Democracy (SEED). 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Support for East 
European Democracy (SEED) Act of 1989". 
(b) TABLE OP CONTENTS.—The table of contents for this Act is as 
follows: 
Sec. 1. Short title and table of contents. 
2. Support for East European Democracy (SEED) Program. 
TITLE I—STRUCTURAL ADJUSTMENT 
Sec. 101. Multilateral support for structural adjustment in Poland and Hungary. 
Sec. 102. Stabilization assistance for Poland. 
Sec. 103. Agricultural assistance. 
Sec. 104. Debt-for-equity swaps and other special techniques. 
TITLE n—PRIVATE SECTOR DEVELOPMENT 
Sec. 201. Enterprise Funds for Poland and Hungary. 
Sec. 202. Labor market transition in Poland and Hungary. 
Sec. 203. Technical training for private sector development in Poland and Himgary. 
Sec. 204. Peace Corps programs in Poland and Hungary. 
Sec. 205. Use of Polish currency generated by figricultural assistance. 
Sec. 206. United States policy of private financial support for Polish and Hungarian 
credit unions. 
TITLE in—TRADE AND INVESTMENT 
Sec. 301. Eligibility of Poland for Generalized System of Preferences. 
Sec. 302. Overseas Private Investment Corporation programs for Poland and Hun-
gary. 
Sec. 303. Export-Import Bank programs for Poland and Hungary. 
Sec. 304. Trade Credit Insurance Program for Poland. 
Sec. 305. Trade and Development Program activities for Poland and Hungary. 
Sec. 306. Bilateral investment treaties with Poland and Hungary. 
Sec. 307. Certain Polish bonds not subject to Internal Revenue Code rules relating 
to below-market loans. 
TITLE IV—EDUCATIONAL, CULTURAL, AND SCIENTIFIC ACnVITIES 
Sec. 401. Educational and cultural exchanges and sister institutions programs with 
Poland and Hungary. 
Sec. 402. Poland-Hungary scholarship partnership. 
Sec. 403. Science and technology exchange with Poland and Hungary. 
TITLE V—OTHER ASSISTANCE PROGRAMS 
Sec. 501. Assistance in support of democratic institutions in Poland and Hungary. 
Sec. 502. Environmental initiatives for Poland and Hungary. 
Sec. 503. Medical supplies, hospital equipment, and medical training for Poland. 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1299 
TITLE VI—ADDITIONAL SEED PROGRAM ACTIONS 
Sec. 601. Policy coordination of SEED Program. 
•; 
Sec. 602. SEED Information Center System. 
Sec. 603. Encouraging voluntary assistance for Poland and Hungary. 
Sec. 604. Economic and commercial officers at United States EmDassies and mis-
sions in Poland and Hungary. 
TITLE VII—REPORTS TO CONGRESS 
Sec. 701. Report on initial steps taken by United States and on Poland's require-
ment for agricultural assistance. 
Sec. 702. Report on confidence building measures by Poland and Hungary. 
Sec. 703. Report on environmental problems in Poland and Hungary. 
Sec. 704. Annual SEED Program report. 
Sec. 705. Reports on certain activities. 
Sec. 706. Notifications to Congress regarding assistance. 
TITLE Vin—MISCELLANEOUS PROVISIONS 
Sec. 801. Suspension of SEED assistance. 
Sec. 802. Declaration of the Republic of Hungary. 
Sec. 803. Administrative expenses of the Agency for International Development. 
Sec. 804. Relation of provisions of this Act to certain provisions of appropriations 
Acts. 
Sec. 805. Certain uses of excess foreign currencies. 
SEC. 2. SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED) PROGRAM. 
22 USC 5401. 
(a) SEED PROGRAM.—The United States shall implement, begin-
ning in fiscal year 1990, a concerted Program of Support for East 
European Democracy (which may also be referred to as the "SEED 
Program"). The SEED Program shall be comprised of diverse under-
takings designed to provide cost-effective assistance to those coun-
tries of Eastern Europe that have taken substantive steps toward 
institutionalizing political democracy and economic pluralism. 
O
t
>
) OBJECTIVES OF SEED ASSISTANCE.—The President should 
ensure that the assistance provided to East European countries 
pursuant to this Act is designed— 
(1) to contribute to the development of democratic institutions 
and political pluralism characterized by— 
(A) the establishment of fully democratic and representa-
tive political systems based on free and fair elections, 
(B) effective recognition of fundamental liberties and 
individual freedoms, including freedom of speech, religion, 
and association, 
(C) termination of all laws and regulations which impede 
the operation of a free press and the formation of political 
parties, 
(D) creation of an independent judiciary, and 
(E) establishment of non-partisan military, security, and 
police forces; 
(2) to promote the development of a free market economic 
system characterized by— 
(A) privatization of economic entities, 
(B) establishment of full rights to acquire and hold pri-
vate property, including land and the benefits of contrac-
tual relations, 
(C) simplification of regulatory controls regarding the 
establishment and operation of businesses, 
(D) dismantlement of all wage and price controls, 
(E) removal of trade restrictions, including on both im-
ports and exports, 
(F) liberalization of investment and capital, including the 
repatriation of profits by foreign investors; 
103 STAT. 1300 
PUBLIC LAW 101-179—NOV. 28, 1989 
(G) tax policies which provide incentives for economic 
activity and investment, 
(H) establishment of rights to own and operate private 
^ 
, banks and other financial service firms, as well as unre-
stricted access to private sources of credit, and 
(I) access to a market for stocks, bonds, and other in-
struments through which individuals may invest in the 
«^i ' ' 
private sector; and 
(3) not to contribute any substantial benefit— 
(A) to Communist or other political parties or organiza-
tions which are not committed to respect for the democratic 
process, or 
(B) to the defense or security forces of any member 
country of the Warsaw Pact. 
(c) SEED ACTIONS.—Assistance and other activities under the 
SEED Program (which may be referred to as "SEED Actions") shall 
include activities such as the following: 
(1) LEADERSHIP IN THE WORLD BANK AND INTERNATIONAL MONE-
TARY FUND.—United States leadership in supporting— 
(A) loans by the International Bank for Reconstruction 
and Development and its affiliated institutions in the 
World Bank group that are designed to modernize industry, 
agriculture, and infrastructure, and 
(B) International Monetary-Fund programs designed to 
stimulate sound economic growth. 
(2) CURRENCY STABILIZATION LOANS.—United States leadership 
in supporting multilateral agreement to provide government-to-
government loans for currency stabilization where such loans 
can reduce inflation and thereby foster conditions necessary for 
the effective implementation of economic reforms. 
(3) DEBT REDUCTION AND RESCHEDULING.—Participation 
in 
multilateral activities aimed at reducing and rescheduling a 
country's international debt, when reduction and deferral of 
debt payments can assist the process of political and economic 
transition. 
(4) AGRICULTURAL ASSISTANCE.—Assistance through the grant 
and concessional sale of food and other agricultural commod-
ities and products when such assistance can eeuse critical short-
ages but not inhibit agricultural production and marketing in 
the recipient country. 
(5) ENTERPRISE FUNDS.—Grants to support private, nonprofit 
"Enterprise Funds", designated by the President pursuant to 
law and governed by a Board of Directors, which undertake 
loans, grants, equity investments, feasibility studies, technical 
assistance, training, and other forms of assistance to private 
enterprise activities in the Eastern European country for which 
the Enterprise Fund so is designated. 
(6) LABOR MARKET-ORIENTED TECHNICAL ASSISTANCE.—Tech-
nical £U3sistance programs directed at promoting labor market 
reforms and facilitating economic adjustment. 
(7) TECHNICAL TRAINING.—Programs to provide technical 
skills to assist in the development of a market economy. 
(8) PEACE CORPS.—Establishment of Peace Corps programs. 
(9) SUPPORT FOR INDIGENOUS CREDFT UNIONS.—Support for the 
establishment of indigenous credit unions. 
(10) 
GENERAUZED SYSTEM OF PREFERENCES.—Eligibility 
for 
trade benefits under the Generalized System of Preferences. 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1301 
(11) MOST FAVORED NATION TRADE STATUS.—The granting of 
temporary or permanent nondiscriminatory treatment (com-
monly referred to as "most favored nation status") to the 
products of an East European country through the application 
of the criteria and procedures established by section 402 of the 
_ 
Trade Act of 1974 (19 U.S.C. 2432; commonly referred to as the 
"Jackson-Vanik amendment"). 
(12) OVERSEAS PRIVATE INVESTMENT CORPORATION.—Programs 
of the Overseas Private Investment Corporation. 
(13) 
EXPORT-IMPORT 
BANK 
PROGRAMS.—Programs 
of 
the 
Export-Import Bank of the United States. 
(14) TRADE AND DEVELOPMENT PROGRAM ACTIVITIES.—Trade 
and Development Program activities under the Foreign Assist-
ance Act of 1961. 
(15) INVESTMENT TREATIES.—Negotiation of bilateral invest-
ment treaties. 
(16) SPECIAL TAX TREATMENT OF BELOW-MARKET 
LOANS.— 
Exempting bonds from Internal Revenue Code rules relating to 
below-market loans. 
(17) EXCHANGE ACTIVITIES.—Expanded exchange 
activities 
under the Fulbright, International Visitors, and other programs 
conducted by the United States Information Agency. 
(18) CULTURAL CENTERS.—Contributions toward the establish-
ment of reciprocal cultural centers that can facilitate edu-
cational and cultural exchange and expanded understanding of 
Western social democracy. 
(19) SISTER INSTITUTIONS.—Establishment of sister institution 
programs between American and East European schools and 
universities, towns and cities, and other organizations in such 
fields as medicine and health care, business 
management, 
environmental protection, and agriculture. 
(20) SCHOLARSHIPS.—Scholarships to enable students to study 
in the United States. 
(21) SCIENCE AND TECHNOLOGY EXCHANGES.—Grants for the 
• 
, 
implementation of bilateral agreements providing for coopera-
tion in science and technology exchange. 
(22) ASSISTANCE FOR DEMOCRATIC INSTITUTIONS.—Assistance 
designed to support the development of legal, legislative, elec-
toral, journalistic, and other institutions of free, pluralist 
societies. 
(23) ENVIRONMENTAL ASSISTANCE.—Environmental assistance 
directed at overcoming crucial deficiencies in air and water 
quality and other determinants of a healthful society. 
(24) MEDICAL ASSISTANCE.—Medical assistance specifically tar-
geted to overcome severe deficiencies in pharmaceuticals and 
other basic hesdth supplies. 
(25) ENCOURAGEMENT FOR PRIVATE INVESTMENT AND VOL-
UNTARY ASSISTANCE.—Encouraging private investment and vol-
untary private assistance, using a variety of means including a 
SEED Information Center System and the provision by the 
Department of Defense of transportation for private non-
financial contributions. 
103 STAT. 1302 
PUBLIC LAW 101-179—NOV. 28, 1989 
TITLE I—STRUCTURAL ADJUSTMENT 
Banks and 
banking. 
22 use 5411. 
Exports. 
Agriculture and 
agricultured 
commodities. 
International 
organizations. 
SEC. 101. MULTILATERAL SUPPORT FOR STRUCTURAL ADJUSTMENT IN 
POLAND AND HUNGARY. 
(a) MULTILATERAL ASSISTANCE FOR POLAND AND HUNGARY.— 
(1) IN GENERAL.—To the extent that Poland and Hungary 
continue to evolve toward pluralism and democracy and to 
develop and implement comprehensive economic reform pro-
grams, the United States Government shall take the leadership 
in mobilizing international financial institutions, in particular 
the International Monetary Fund and the International Bank 
for Reconstruction and Development and its affiliated institu-
tions in the World Bank group, to provide timely and appro-
priate resources to help Poland and Hungary. 
(2) WORLD BANK STRUCTURAL ADJUSTMENT LOAN FOR POLAND.— 
In furtherance of paragraph (1), the Secretary of the Treasury 
shall direct the United States Executive Director of the Inter-
national Bank for Reconstruction and Development to urge 
expeditious approval and disbursement by the Bank of a struc-
tural adjustment loan to Poland in an appropriate amount in 
time to facilitate the implementation of major economic reforms 
scheduled for early 1990, including the termination of energy, 
export, and agricultural subsidies and wage indexation. 
(b) STABIUZATION ASSISTANCE, DEBT RELIEF, AND AGRICULTURAL 
ASSISTANCE FOR POLAND.—To the extent that Poland continues to 
evolve toward pluralism and democracy and to develop and imple-
ment comprehensive economic reform programs, the United States 
Government shall do the following: 
(1) STABIUZATION ASSISTANCE.—The United States Govern-
ment, in conjunction with other member governments of the 
Organization 
of Economic Cooperation 
and 
Development 
(OECD) and international financial institutions (including the 
International Monetary Fund), shall support the implementa-
tion of a plan of the Government of Poland to attack 
hyperinflation and other structural economic problems, address 
pressing social problems, carry out comprehensive economic 
reform, and relieve immediate and urgent balance of payments 
requirements in Poland, through the use of mechanisms such 
as— 
(A) the Exchange Stabilization Fund pursuant to section 
5302 of title 31, United States Code, and in accordance with 
established Department of the Treasury policies and proce-
dures; and 
(B) the authority provided in section 102(c) of this Act. 
(2) DEBT REUEF.—The United States Government— 
(A) shall urge all members of the "Paris Club" of creditor 
governments and other creditor governments to adopt, and 
participate in, a generous and early rescheduling program 
for debts owed by the Government of Poland; and 
(B) in coordination with other creditor governments, shall 
seek to expedite consultations between the Government of 
Poland and its major private creditors in order to facilitate 
a rescheduling and reduction of payments due on debt owed 
to such creditors in a manner consistent with the inter-
national debt policy announced by the Secretary of the 
Treasury on March 10, 1989. 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1303 
(3) AGRICULTURAL ASSISTANCE.—The United States Govern-
ment shall provide agricultural assistance for Poland in accord-
ance with section 103. 
SEC. 102. STABILIZATION ASSISTANCE FOR POLAND. 
22 USC 5412. 
(a) IMMEDIATE EMERGENCY ASSISTANCE.—To the extent that the 
ongoing International Monetary Fund review of the Polish economy 
projects a probable balance of pajrments shortage for the fourth 
quarter of 1989, the United States Government, in carrying out 
paragraph (1) of section 1010a)— 
(1) should work closely with the European Community and 
' 
international financial institutions to determine the extent of 
( 
emergency assistance required by Poland for the fourth quarter 
of 1989, and 
(2) should consider extending a bridge loan to relieve imme-
diate and urgent balance of pa)rments requirements using the 
Exchange Stabilization Fund in accordance with paragraph 
^ 
(IXA) of section 101(b). 
G
>
) IMMEDIATE, MULTILATERAL RESPONSE TO POLAND'S ECONOMIC 
STABIUZATION NEEDS.—In furtherance of section lOlO^XD, the Presi-
dent, acting in coordination with the European Community, should 
seek to ensure that the industrialized democracies undertake an 
immediate, multilateral effort to respond to Poland's request for 
$1,000,000,000 to support its economic stabilization program. 
(c) ADDITIONAL AUTHORITY TO PROVIDE STABIUZATION ASSIST-
ANCE.— 
(1) AUTHORITY.—In order to carry out paragraph (1) of section 
President of U.S. 
101(b), the President is authorized to furnish eissistance for 
Poland, notwithstanding any other provision of law, to assist in 
the urgent stabilization of the Polish economy and ultimately to 
promote longer-term economic growth and stability, based on 
movement toward free market principles. Such assistance may 
be provided for balance of payments support (including 
commodity import programs), support for private sector devel-
opment, or for other activities to further efforts to develop a 
free market-oriented economy in Poland. 
(2) AUTHORIZATION OF APPROPRIATIONS.—For purposes of 
providing the assistance authorized by this subsection, there are 
authorized to be appropriated $200,000,000 for fiscal year 1990 
to carry out chapter 4 of part II of the Foreign Assistance Act of 
s^; 
1961 (22 U.S.C. 2346 and following; relating to the economic 
support fund), in addition to amounts otherwise available for 
such purposes. 
SEC. 103. AGRICULTURAL ASSISTANCE. 
22 USC 5413. 
(a) AGRICULTURAL ASSISTANCE STRATEGY.— 
(1) UNITED STATES ASSISTANCE.—A principal component of the 
SEED Program shall be the provision by the United States of 
food and other agricultural commodities and products to allevi-
ate crucial shortages that may be created in an East European 
country by the transition from state-directed controls to a free 
market economy. 
(2) ASSISTANCE FROM OTHER COUNTRIES.—In order to ensure 
the necessary quantity and diversity of agricultural assistance 
for that purpose, the United States shall take all appropriate 
steps to encourage parallel efforts by the European Community 
and other eigricultural surplus countries. 
103 STAT. 1304 
PUBLIC LAW 101-179—NOV. 28, 1989 
(3) AVOIDING DISINCENTIVES TO PRIVATE AGRICULTURAL PRODUC-
TION AND MARKETING.—In participating in such multilateral 
agricultural assistance, the United States shall seek to strike a 
V
; 
balance wherein agricultural commodities and products are 
supplied in such quantities as will be effective in overcoming 
severe shortages £ind dampening inflation but without impeding 
the development of incentives for private agricultural produc-
tion and marketing in the recipient country. 
(b) AGRICULTURAL ASSISTANCE FOR POLAND.—Pursuant to section 
101(bX3), the United States Government— 
(1) shall make available to Poland, in coordination with the 
European Community, United States agricultural assistance— 
Hunger. 
(A) to alleviate immediate food shortages (such assistance 
to be specifically targeted toward elements of the Polish 
population most vulnerable to hunger and malnutrition, in 
particular the infirm, the elderly, and children), and 
'•' 
(B) to facilitate the transition from state-directed controls 
to a free market economy, while avoiding disincentives to 
domestic agricultural production and reform; and 
(2) in order to ensure the necessary quantity and diversity of 
such agricultural assistance, shall take all appropriate steps to 
encourage parallel efforts by the European Community and 
other agricultural surplus countries. 
(c) FY 1990 MINIMUM LEVEL OP AGRICULTURAL ASSISTANCE FOR 
POLAND.—In carrying out subsection (b) of this section, the level of 
assistance for Poland for fiscal year 1990 under section 416(b) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)), the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1691 and follow-
ing), and the Food for Progress Act of 1985 (7 U.S.C. 1736o) should 
not be less than $125,000,000. Such sussistance— 
(1) to the maximum extent practicable, shall be provided 
through nongovernmental organizations; and 
(2) shall emphasize feed grains. 
(d) CONSISTENCY WITH BUDGET REQUIREMENTS.—Subsection (c) 
should not be construed to authorize or require any budgetary 
obligations or outlays that are inconsistent with House Concurrent 
Resolution 106 of the 101st Congress (setting forth the congressional 
budget for the United States Government for fiscal year 1990). 
22 use 5414. 
SEC. 104. DEBT-FOR-EQUITY SWAPS AND OTHER SPECIAL TECHNIQUES. 
President of U.S. 
(a) REDUCTION OF DEBT BURDEN.—The President shall take all 
appropriate actions to explore and encourage innovative approaches 
to the reduction of the government-to-government and commercial 
•
1 
debt burden of East European countries which have taken sub-
stantive steps toward politiced democracy and economic pluralism. 
(b) AUTHORITY FOR DISCOUNTED SALES OF DEBT.—Notwithstanding 
any other provision of law, the President may undertake the dis-
counted sale, to private purchasers, of United States Government 
debt obligations of an East Europeem country which has taken 
substantive steps toward political democracy and economic plural-
ism, subject to subsection (c). 
(c) CONDITION.—An obligation may be sold under subsection (b) 
only if the sale will facilitate so-called debt-for-equity or debt-for-
development swaps wherein such newly privatized debt is ex-
changed by the new holder of the obligation for— 
(1) local currencies, policy commitments, or other assets 
needed for development or other economic activities, or 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1305 
(2) for an equity interest in an enterprise theretofore owned 
by the particular East European government. 
TITLE II—PRIVATE SECTOR DEVELOPMENT 
SEC. 201. ENTERPRISE FUNDS FOR POLAND AND HUNGARY. 
(a) PURPOSES.—The purposes of this section are to promote— 
(1) development of the Polish and Hungarian private sectors, 
including small businesses, the agricultural sector, and joint 
ventures with United States and host country participants, and 
(2) policies and practices conducive to private sector develop-
ment in Poland and Hungary, 
through loans, grants, equity investments, feasibility studies, tech-
nical assistance, training, insurance, guarantees, and other meas-
ures. 
(b) AUTHORIZATION OF APPROPRIATIONS.—To carry out the pur-
poses specified in subsection (a), there are authorized to be appro-
priated to the President— 
(1) $240,000,000 to support the Polish-American Enterprise 
Fund; and 
(2) $60,000,000 to support the Hungarian-American Enter-
prise Fund. 
Such amounts are authorized to be made available until expended. 
(c) NONAPPUCABIUTY OF OTHER LAWS.—The funds appropriated 
under subsection 0)) may be made available to the Polish-American 
Enterprise Fund and the Hungarian-American Enterprise Fund and 
used for the purposes of this section notwithstanding any other 
provision of law. 
(d) DESIGNATION OF ENTERPRISE FUNDS.— 
(1) DESIGNATION.—The President is authorized to designate 
two private, nonprofit organizations as eligible to receive funds 
and support pursuant to this section upon determining that 
such organizations have been established for the purposes speci-
fied in subsection (a). For purposes of this Act, the organizations 
so designated shall be referred to as the Polish-American Enter-
prise Fund and the Hungarian-American Enterprise Fund 
(hereinafter in this section referred to as the "Enterprise 
Funds"). 
(2) CONSULTATION WITH CONGRESS.—The President shall con-
sult with the leadership of each House of Congress before 
designating an organization pursuant to paragraph (1). 
(3) BOARD OF DIRECTORS.—(A) Each Enterprise Fund shall be 
governed by a Board of Directors comprised of private citizens of 
the United States, and citizens of the respective host country, 
who have demonstrated experience and expertise in those areas 
of private sector development in which the Enterprise Fund is 
involved. 
(B) A majority of the members of the Board of Directors of 
each Enterprise Fund shall be United States citizens. 
(C) A host country citizen who is not committed to respect for 
democracy and a free market economy may not serve as a 
member of the Board of Directors of an Enterprise Fund. 
(4) EUGIBIIJTY OF ENTERPRISE FUNDS FOR GRANTS.—Grants 
may be made to an Enterprise Fund under this section only if 
the Enterprise Fund agrees to comply with the requirements 
specified in this section. 
Agriculture and 
agricultural 
commodities. 
Loans. 
Insurance. 
22 u s e 5421. 
President of U.S. 
President of U.S. 
103 STAT. 1306 
PUBLIC LAW 101-179—NOV. 28, 1989 
(5) PRIVATE CHARACTER OF ENTERPRISE FUNDS.—Nothing in 
this section shall be construed to make an Enterprise Fund an 
agency or establishment of the United States Government, or to 
make the officers, employees, or members of the Board of 
Directors of an Enterprise Fund officers or employees of the 
United States for purposes of title 5, United States Code. 
President of U.S. 
(e) GRANTS T
O ENTERPRISE FuNDS.—Funds appropriated to the 
President pursuant to subsection (b) shall be granted to the Enter-
prise Funds by the Agency for International Development to enable 
the Enterprise Funds to carry out the purposes specified in subsec-
tion (a) and for the administrative expenses of each Enterprise 
Fund. 
(f) EuGiBLE PROGRAMS AND PROJECTS.— 
* 
(1) I N GENERAL.—The Enterprise Funds may provide assist-
ance pursuant to this section only for programs and projects 
which are consistent with the purposes set forth in subsection 
(a). 
(2) EMPLOYEE STOCK OWNERSHIP PLANS.—Funds available to 
the Enterprise Funds may be used to encourage the establish-
ment of Employee Stock Ownership Plans (ESOPs) in Poland 
and Hungary. 
(3) INDIGENOUS CREDIT UNIONS.—Funds available to the Enter-
prise Funds may be used for technical and other assistance to 
support the development of indigenous credit unions in Poland 
^ 
and Hungary. As used in this paragraph, the term "credit 
union" means a member-owned, nonprofit, cooperative deposi-
tory institution— 
(A) which is formed to permit individuals in the field of 
membership specified in such institution's charter to pool 
their savings, lend the savings to one another, and own the 
organization where they save, borrow, and obtain related 
financial services; and 
(B) whose members are united by a common bond and 
democratically operate the institution. 
(4) TELECOMMUNICATIONS MODERNIZATION IN POLAND.—The 
Polish-American Enterprise Fund may use up to $25,000,000 for 
grants for projects providing for the early introduction in 
Poland of modern telephone systems and telecommunications 
.A^» 
technology, which are crucial in establishing the conditions for 
successful 
transition to political democracy and economic 
pluralism. 
(5) 
ECONOMIC 
FOUNDATION 
OF NSZZ soLiDARNod6.—Funds 
available to the Polish-American Enterprise Fund may be used 
to support the Elconomic Foundation of NSZZ SolidarnoS6. 
(g) MATTERS TO B E CONSIDERED BY ENTERPRISE FUNDS.—In carry-
^ 
ing out this section, each Enterprise Fund shall take into account 
such considerations as internationally recognized worker rights and 
other internationally recognized human rights, environmental fac-
tors. United States economic and employment effects, and the likeli-
hood of commercial viability of the activity receiving assistance 
from the Enterprise Fund. 
(h) RETENTION OF INTEREST.—An Enterprise Fund may hold funds 
granted to it pursuant to this section in interest-bearing accounts, 
prior to the disbursement of such funds for purposes specified in 
subsection (a), and may retain for such program purposes any 
interest earned on such deposits without returning such interest to 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1307 
the Treasury of the United States and without further appropriation 
by the Congress. 
(i) USE OF UNITED STATES PRIVATE VENTURE CAPITAL.—In order to 
maximize the effectiveness of the activities of the Enterprise Funds, 
each Enterprise Fund may conduct public offerings or private place-
ments for the purpose of soliciting and accepting United States 
venture capital which may be used, separately or together with 
funds made available pursuant to this section, for any lawful invest-
ment purpose that the Board of Directors of the Enterprise Fund 
may determine in carrying out this section. Financial returns on 
Enterprise Fund investments that include a component of private 
venture capital may be distributed, at such times and in such 
£imounts as the Board of Directors of the Enterprise Fund may 
v 
; 
determine, to the investors of such capital. 
(j) 
FINANCIAL 
INSTRUMENTS FOR INDIVIDUAL INVESTMENT 
IN 
POLAND.—In order to maximize the effectiveness of the activities of 
the Polish-American Enterprise Fund, that Enterprise Fund should 
undertake all possible efforts to establish financial instruments that 
will enable individuals to invest in the private sectors of Poland and 
that will thereby have the effect of multiplying the impact of United 
States grants to that Enterprise Fund. 
(k) NoNAPPUCABiUTY OF OTHER LAWS.—Executive branch agen-
cies may conduct programs and activities and provide services in 
support of the activities of the Enterprise Funds notwithstanding 
any other provision of law. 
(1) LIMITATION ON PAYMENTS TO ENTERPRISE FUND PERSONNEL.— 
No part of the funds of either Enterprise Fund shall inure to the 
benefit of any board member, officer, or employee of such Enterprise 
Fund, except as salary or reasonable compensation for services. 
(m) INDEPENDENT PRIVATE AUDITS.—The accounts of each Enter-
prise Fund shall be audited annually in accordance with generally 
accepted auditing standards by independent certified public account-
£ints or independent licensed public accountants certified or licensed 
by a regulatory authority of a State or other political subdivision of 
the United States. The report of each such independent audit shall 
Reports. 
be included in the annual report required by this section. 
(n) GAO AUDITS.—The financial transactions undertaken pursu-
ant to this section by each Enterprise Fund may be audited by the 
General Accounting Office in accordance with such principles and 
procedures and under such rules and regulations as may be pre-
scribed by the Comptroller General of the United States, so long as 
the Enterprise Fund is in receipt of United States Government 
grants. 
(o) RECORDKEEPING REQUIREMENTS.—The Enterprise Funds shall 
ensure— 
(1) that each recipient of assistance provided through the 
Enterprise Funds under this section keeps— 
(A) separate accounts with respect to such assistance; 
(B) such records as may be reasonably necessary to dis-
close fully the amount and the disposition by such recipient 
, 
of the proceeds of such assistance, the total cost of the 
project or undertaking in connection with which such 
^ 
assistance is given or used, and the amount and nature of 
that portion of the cost of the project or undertaking sup-
plied by other sources; and 
s 
t 
I 
(C) such other records as will facilitate an effective audit; 
and 
103 STAT. 1308 
PUBLIC LAW 101-179—NOV. 28, 1989 
(2) that the Enterprise Funds, or any of their duly authorized 
representatives, have access for the purpose of audit and exam-
- 
ination to any books, documents, papers, and records of the 
" recipient that are pertinent to assistance provided through the 
Enterprise Funds under this section, 
(p) ANNUAL REPORTS.—Each Enterprise Fund shall publish an 
annual report, which shall include a comprehensive and detailed 
description of the Enterprise Fund's operations, activities, financial 
condition, and accomplishments under this section for the preceding 
fiscal year. This report shall be published not later than January 31 
each year, beginning in 1991. 
22 use 5422. 
SEC. 202. LABOR MARKET TRANSITION IN POLAND AND HUNGARY. 
(a) TECHNICAL ASSISTANCE.—The Secretary of Labor (hereinafter 
in this section referred to as the "Secretary'), in consultation with 
representatives of labor and business in the United States, shall— 
(1) provide technical assistance to Poland and Hungary for 
the implementation of labor market reforms; and 
(2) provide technical assistance to Poland and Hungary to 
facilitate adjustment during the period of economic transition 
and reform. 
(b) TYPES OP TECHNICAL ASSISTANCE AUTHORIZED.—In carrying out 
subsection (a), the Secretary is authorized to provide technical 
assistance regarding policies and programs for training and retrain-
ing, job search and employment services, unemployment insurance, 
occupational safety and health protection, labor-management rela-
tions, labor statistics, analysis of productivity constraints, entre-
preneurial support for small businesses, market-driven systems of 
wage and income determinations, job creation, employment secu-
rity, the observance of internationally recognized worker rights 
(including freedom of association and the right to organize and 
bargain collectively), and other matters that the Secretary may 
deem appropriate regarding free labor markets and labor organiza-
tions. 
(c) ADMINISTRATIVE AUTHORITIES.—In carrying out subsection (a), 
the Secretary is authorized to do the following: 
Gifts and 
(D Solicit and accept in the name of the Department of Labor, 
property. 
and employ or dispose of in furtherance of the purposes of this 
Real property. 
section, any money or property, real, personal, or mixed, tan-
gible or intangible, received by gift, devise, bequest, or other-
wise. Gifts and donations of property which are no longer 
' required for the discharge of the purposes of this section shall 
be reported to the Administrator of General Services for trans-
' fer, donation, or other disposal in accordance with the Federal 
Property jmd Administrative Services Act of 1949 (40 U.S.C. 471 
- 
and following). 
Voluntarism. 
(2) Solicit and accept voluntary and uncompensated services 
' 
notwithstanding section 1342 of title 31, United States Code. A 
volunteer under this paragraph shall not be deemed to be an 
employee of the United States except for the purposes of— 
(A) the tort claims provisions of title 28, United States 
Code, and 
(B) subchapter I of chapter 81 of title 5, United States 
Code, relating to compensation for work injuries. 
International 
(3) Enter into arrangements or agreements with appropriate 
agreements. 
departments, agencies, and establishments of Poland and 
Hungary. 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1309 
(4) Enter into arrangements or agreements with appropriate 
private and public sector United States parties, and inter-
national organizations. 
(d) CONSULTATION WITH APPROPRIATE OFFICERS.—In carrying out 
the responsibilities established by this section, the Secretary shall 
seek information and advice from, and consult with, appropriate 
officers of the United States. 
(e) CONSULTATION WITH LABOR AND BUSINESS REPRESENTATIVES.— 
For purposes of this section, consultation between the Secretary and 
United States labor and business representatives shall not be sub-
ject to the Federal Advisory Committee Act (5 U.S.C. App.). 
(f) DELEGATION OF RESPONSIBIUTIES.—The Secretary shall delegate 
the authority to carry out the progframs authorized by this section to 
the head of the Bureau of International Labor Affairs of the Depart-
ment of Labor. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to the Department of Labor for the 3-year period 
beginning October 1,1989, to carry out this section— 
(1) $4,000,000 for technical assistance to Poland; and 
(2) $1,000,000 for technical assistance to Hungary. 
SEC. 203. TECHNICAL TRAINING FOR PRIVATE SECTOR DEVELOPMENT IN 
POLAND A N D HUNGARY. 
(a) TECHNICAL TRAINING PROGRAM.—The Agency for International 
Development shall develop and implement a program for extending 
basic agribusiness, commercial, entrepreneurial, financial, scientific, 
and technical skills to the people of Poland and Hungary to enable 
them to better meet their needs and develop a market economy. 
This program shall include management training and agricultural 
extension activities. 
(b) PARTICIPATION BY ENTERPRISE FUNDS AND OTHER AGENCIES AND 
ORGANIZATIONS.—In carrying out subsection (a), the Agency for 
International Development may utilize the Polish-American Enter-
prise Fund and the Hungarian-American Enterprise Fund and other 
appropriate Government and private agencies, programs, and 
organizations such as— 
(1) the Department of Agriculture; 
(2) the Farmer-to-Farmer Program under section 406(a) (1) 
and (2) of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736(a) (1) and (2)); 
(3) the International Executive Service Corps; 
(4) the Foundation for the Development of Polish Agriculture; 
(5) the World CJouncil of Credit Unions; and 
(6) other United States, Polish, and Hungarian private and 
voluntary organizations and private sector entities. 
(c) NoNAPPUCABiUTY OF OTHER PROVISIONS OF LAW.—Assistance 
provided pursuant to subsection (a) under the authorities of part I of 
the Foreign Assistance Act of 1961 may be provided notwithstanding 
any other provision of law. 
(d) AUTHORIZATION OF APPROPRIATIONS.—For purposes of im-
plementing this section, there are authorized to be appropriated 
$10,000,000 for the 3-year period beginning October 1, 1989, to carry 
out chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 and following; relating to development assistance), in 
addition to amounts otherwise available for such purposes. 
(e) LIMITATION WITH RESPECT TO FARMER-TO-FARMER PROGRAM.— 
Any activities carried out pursuant to this Act through the Farmer-
Contracts. 
International 
organizations. 
Agriculture and 
agricultural 
commodities. 
22 use 5423. 
103 STAT. 1310 
PUBLIC LAW 101-179—NOV. 28, 1989 
22 use 5424. 
Appropriation 
authorization. 
22 use 5425. 
Banks and 
banking. 
22 u s e 5426. 
to-Farmer Program under section 406(a) (1) and (2) of the Agricul-
tural Trade Development and Assistance Act of 1954 shall be funded 
with funds authorized to be appropriated by this Act and local 
currencies made available under section 205, and shall not be 
funded with funds made available pursuant to section 1107 of the 
Food Security Act of 1985 (7 U.S.C. 1736 note) or a similar, subse-
quent provision of law. 
SEC. 
2
0
4
. 
PEACE 
CORPS 
PROGRAMS 
IN 
POLAND 
AND 
HUNGARY. 
-t 
i 
There are authorized to be appropriated to carry out programs in 
Poland and Hungary under the Peace Corps Act, $6,000,000 for the 
3-year period beginning October 1, 1989, in addition to amounts 
otherwise available for such purposes. Such programs shall include 
the use of Peace Corps volunteers— 
(1) to provide English language training, and 
(2) to extend the technical skills described in section 203(a) to 
the people of Poland and Hungary, using the Associate Volun-
teer Program to the extent practicable. 
SEC. 205. USE OF POLISH CURRENCY GENERATED BY AGRICULTURAL 
ASSISTANCE. 
(a) ADDITIONAL ASSISTANCE FOR POLAND.—A portion of the agricul-
tural commodities described in subsection (c) may be made available 
and sold or bartered in Poland to generate local currencies to be 
used— 
(1) to complement the assistance for Poland authorized by 
sections 103(b), 201, and 203 of this Act, and 
(2) to support the activities of the joint commission estab-
lished pursuant to section 2226 of the American Aid to Poland 
Act of 1988 (7 U.S.C. 1431 note), 
notwithstanding section 416(bX7) of the Agricultural Act of 1949 (7 
U.S.C. 1431(bX7)) or any other provision of law. 
(b) EMPHASIS ON AGRICULTURAL DEVELOPMENT.—The uses of local 
currencies generated under this section should emphasize the devel-
opment of agricultural infrastructure, agriculture-related training, 
and other £ispects of agricultural development in Poland. 
(c) COMMODITIES SUBJECT TO REQUIREMENTS.—Subsection (a) ap-
plies with respect to agricultural commodities made available for 
Poland for fiscal years 1990, 1991, and 1992 under section 4160)) of 
the Agricultural Act of 1949 (7 U.S.C. 1431(b)), the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 and 
following), and the Food for Progress Act of 1985 (7 U.S.C. 1736o). 
(d) OTHER USES NOT PRECLUDED.—The uses of agricultural 
commodities and local currencies specified in subsection (a) are in 
addition to other uses authorized by law. 
SEC. 206. UNITED STATES POLICY OF PRIVATE FINANCIAL SUPPORT FOR 
POLISH AND HUNGARIAN CREDIT UNIONS. 
(a) IN GENERAL.—In order to facilitate the development of indige-
nous credit unions in Poland and Hungary, it is the policy of the 
United States that— 
(1) United States citizens, financial institutions (other than 
federally insured depository institutions), and other persons 
may make contributions and loans to, make capital deposits in, 
and provide other forms of financial and technical assistance to 
credit unions in Poland and Hungary; and 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1311 
(2) federally insured depository institutions may provide tech-
nical assistance to credit unions in Poland and Hungary, to the 
extent that the provision of such assistance is prudent and not 
inconsistent with safe and sound banking practice. 
(b) AMENDMENT TO FEDERAL CREDIT UNION ACT.—Section 107 of 
the Federal Credit Union Act (12 U.S.C. 1757) is amended by re-
designating paragraph (16) as paragraph (17) and by inserting after 
paragraph (15) the following new parsigraph: 
"(16) subject to such regulations as the Board may prescribe, 
to provide technical assistance to credit unions in Poland and 
Hungary; and". 
(c) DEFINITIONS.—For purposes of subsection (a)— 
(1) the term "credit union" means a member-owned, non-
profit, cooperative depository institution— 
(A) which is formed to permit individuals in the field of 
membership specified in such institution's charter to pool 
\ 
their savings, lend the savings to one another, and own the 
organization where they save, borrow, and obtain related 
financial services; and 
(B) whose members are united by a common bond and 
j
^ 
democratically operate the institution; and 
(2) the term "federally insured depository institution" 
. i 
means— 
(A) any insured depository institution (as defined in sec-
tion 3(cX2) of the Federal Deposit Insurance Act); and 
(B) any insured credit union (as defined in section 101(7) 
of the Federal Credit Union Act). 
TITLE III—TRADE AND INVESTMENT 
SEC. 301. ELIGIBILITY OF POLAND FOR GENERALIZED SYSTEM OF 
PREFERENCES. 
Subsection (b) of section 502 of the Trade Act of 1974 (19 U.S.C. 
2462(b)) is amended by striking out "Poland" in the table within 
such subsection. 
SEC. 302. OVERSEAS PRIVATE INVESTMENT CORPORATION PROGRAMS 
FOR POLAND AND HUNGARY. 
(a) EUGIBIUTY OF POLAND AND HUNGARY FOR O P I C PROGRAMS.— 
^ 
Section 239(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2199(f)) is amended by inserting ", Poland, Hungary," 
after 
"Yugoslavia". 
(b) ENHANCEMENT OF NONGOVERNMENTAL SECTOR.—In accordance 
22 USC 2199 
with its mandate to foster private initiative and competition and 
note-
enhance the ability of private enterprise to make its full contribu-
tion to the development process, the Overseas Private Investment 
Corporation shall support projects in Poland and Hungary which 
will result in enhancement of the nongovernmental sector and 
reduction of state involvement in the economy. 
(c) AVOIDANCE OF DUPUCATIVE AMENDMENTS.—If the Foreign 
22 use 2199 
Operations, Export Financing, and Related Programs Appropria- 
note. 
tions Act, 1990, contains the same amendment that is made by 
subsection (a) of this section, the amendment made by that Act shall 
not be effective. 
103 STAT. 1312 
PUBLIC LAW 101-179—NOV. 28, 1989 
12 u s e 635 note. 
SEC. 303. EXPORT-IMPORT BANK PROGRAMS FOR POLAND AND HUNGARY. 
(a) AUTHORITY TO EXTEND CREDIT TO POLAND AND HUNGARY.— 
Notwithstanding section 2(bX2) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635(bX2)), the Export-Import Bank of the United 
States may guarantee, insure, finance, extend credit, and participate 
in the extension of credit in connection with the purchase or lease of 
any product by the Repubhc of Hungary or any agency or national 
thereof or by the Polish People's Republic or any agency or national 
thereof. 
(b) PRIVATE FINANCIAL INTERMEDIARIES TO FACILITATE EXPORTS TO 
POLAND.—Consistent with the provisions of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635 and following), the Export-Import Bank of 
the United States shall work with private financial intermediaries 
in Poland to facilitate the export of goods and services to Poland. 
SEC. 304. TRADE CREDIT INSURANCE PROGRAM FOR POLAND. 
(a) EsTABUSHMENT OF PROGRAM.—Chapter 2 of part I of the 
Foreign Assistance Act of 1961 is amended by inserting after section 
224 (22 U.S.C 2184) the following new section: 
22 use 2185. 
"SEC. 225. TRADE CREDIT INSURANCE PROGRAM FOR POLAND. 
"(a) GENERAL AUTHORITY.— 
President of U.S. 
"(1) ASSURANCE TO EXPORT-IMPORT BANK OF REPAYMENT.—The 
President is authorized to provide guarantees to the Bank for 
liabilities described in paragraph (2) in order to satisfy the 
requirement of section 2(bXlXB) of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635(bXlXB)) that the Bank have reasonable 
] 
assurance of repayment. 
"(2) LiABiUTiES WHICH M
A
Y BE GUARANTEED.—The liabilities 
that may be guaranteed under paragraph (1) are liabilities 
incurred by the Bank in connection with guarantees or insur-
ance provided under the Export-Import Bank Act of 1945 for 
financing for transactions involving the export of goods and 
I 
services for the use of the private sector in Poland. 
"(b) GUARANTEES AVAILABLE ONLY FOR SHORT-TERM GUARANTEES 
AND INSURANCE.—Guarantees provided under subsection (a) shall be 
for short-term guarantees and insurance extended by the Bank 
which shall be repayable within a period not to exceed one year 
from the date of arrival at the port of importation of the goods and 
services covered by such guarantees or insurance. 
"(c) AGREEMENT ON CRITERIA AND PROCEDURES.—Guarantees or 
insursmce extended by the Bank and guaranteed pursuant to subsec-
tion (a) shall be provided by the Bank in accordance with criteria 
and procedures agreed to by the Administrator and the Bank. 
' 
"(d) RESERVE FUND.—The agreement referred to in subsection (c) 
shall also provide for the establishment of a reserve fund by the 
administering agency, with such funds made available to the reserve 
as the Administrator deems necessary to discharge liabilities under 
guarantees provided under subsection (a). 
"(e) DISCHARGE OF LIABILITIES.— 
"(1) FUNDS WHICH MAY BE USED.—Such amounts of the funds 
made available to carry out chapter 4 of part II of this Act 
(relating to the economic support fund) as the President deter-
mines are necessary may be made available to discharge liabil-
ities under guarantees entered into under subsection (a). 
Claims. 
"(2) CREDITING OF SUBSEQUENT PAYMENTS.—To the extent that 
any of the funds made available pursuant to paragraph (1) are 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1313 
paid out for a claim arising out of liabilities guaranteed under 
subsection (a), amounts received after the date of such payment, 
with respect to such claim, shall be credited to the reserve fund 
established pursuant to subsection (d), shall be merged with the 
funds in such reserve, and shall be available for the purpose of 
payments by the Administrator to the Bank for guarantees 
under subsection (a). 
"(f) APPROPRIATIONS ACTION REQUIRED.—Commitments to guaran-
tee under subsection (a) are authorized only to the extent and in the 
amounts provided in advance in appropriations Acts. 
"(g) LIMITATION ON OUTSTANDING COMMITMENTS.—The aggregate 
amount of outstanding commitments under subsection (a) may not 
exceed $200,000,000 of contingent liability for loan principal during 
any fiscal year. 
"(h) BIANNUAL REPORTS TO CONGRESS.—Every 6 months, the 
Administrator and the President of the Bank shall prepare and 
transmit to the Speaker of the House of Representatives and the 
Chairman of the Committee on Foreign Relations of the Senate a 
report on the amount and extension of guarantees and insurance 
provided by the Bank and guaranteed under this section during the 
preceding 6-month period. 
"(i) ADMINISTRATIVE AND TECHNICAL ASSISTANCE.—The Bank shall 
provide, without reimbursement, such administrative and technical 
assistance to the administering agency as the Bank and the 
Administrator determine appropriate to assist the administering 
agency in carrying out this section. 
"(j) FEES AND PREMIUMS.—The Bank is authorized to charge fees 
and premiums, in connection with guarantees or insurance guaran-
teed by the administering agency under subsection (a), that are 
commensurate (in the judgment of the Bank) with the Bank's 
administrative costs and the risks covered by the agency's guaran-
tees. Any amounts received by the Bank in excess of the estimated 
costs incurred by the Bank in administering such guarantees or 
insurance— 
"(1) shall be credited to the reserve fund established pursuant 
to subsection (d), 
"(2) shall be merged with the funds in such reserve, and 
"(3) shall be available for the purpose of payments by the 
administering agency to the Bank for guarantees under subsec-
tion (a), 
"(k) RESTRICTIONS NOT APPUCABLE.—Prohibitions on the use of 
foreign assistance funds for assistance for Poland shall not apply 
with respect to the funds made available to carry out this section. 
"(1) EXPIRATION OF AUTHORITY.—The President may not enter into 
any commitments to guarantee under subsection (a) after Septem-
ber 30, 1992. 
"(m) DEFINITIONS.—For purposes of this section— 
"(1) the term 'administering agency' means the Agency for 
International Development; 
"(2) the term 'Administrator' means the Administrator of the 
Agency for International Development; and 
"(3) the term 'Bank' means the Export-Import Bank of the 
United States.", 
(b) CONFORMING AMENDMENT.—Section 224 of that Act is amended 
by inserting "FOR CENTRAL AMERICA" after "PROGRAM" in the 
section caption. 
Banks and 
banking. 
Banks and 
banking. 
22 u s e 2184. 
103 STAT. 1314 
PUBLIC LAW 101-179—NOV. 28, 1989 
22 use 2185 
(c) CONFORMING REFERENCE.—With respect to Poland, any ref-
^°^- 
erence in the Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1990, to section 224 of the Foreign 
Assistance Act of 1961 shall be deemed to be a reference to section 
225 of that Act (as enacted by this section). 
22 u s e 2421 
SEC. 305. TRADE AND DEVELOPMENT PROGRAM 
ACTIVITIES FOR 
note. 
POLAND AND HUNGARY. 
Appropriation 
In order to permit expansion of the Trade and Development 
authorization. 
Program into Poland and Hungary, there are authorized to be 
appropriated $6,000,000 for the 3-year period beginning October 1, 
1989, to carry out section 661 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2241), in addition to amounts otherwise available for such 
purpose. 
SEC. 306. BILATERAL 
INVESTMENT TREATIES 
WITH 
POLAND AND 
HUNGARY. 
The (Dongress urges the President to seek bilateral investment 
treaties with Poland and Hungary in order to establish a more 
stable legal framework for United States investment in those 
countries. 
Taxes. 
SEC. 307. CERTAIN POLISH BONDS NOT SUBJECT TO INTERNAL REVENUE 
CODE RULES RELATING TO BELOW-MARKET LOANS. 
(a) IN GENERAL.—Paragraph (5) of section 1812(b) of the Tax 
26 use 7872 
Reform Act of 1986 is amended— 
note. 
(1) by inserting "or Poland" after "Israel" in the text thereof, 
and 
* 
(2) by inserting "OR POUSH" after "ISRAEL" in the heading 
thereof. 
26 use 7872 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
apply to obligations issued after the date of the enactment of this 
Act. 
TITLE IV—EDUCATIONAL, CULTURAL, AND SCIENTIFIC 
ACTIVITIES 
22 u s e 5441. 
SEC. 40L EDUCATIONAL AND CULTURAL EXCHANGES AND SISTER 
INSTITUTIONS PROGRAMS WITH POLAND AND HUNGARY. 
(a) EDUCATIONAL AND CULTURAL EXCHANGES.— 
(1) SUPPORT FOR EXPANDED U.S. PARTICIPATION.—The United 
States should expand its participation in educational and cul-
tural exchange activities with Poland and Hungary, using the 
full array of existing government-funded and privately-funded 
programs, with particular emphasis on the J. William Fulbright 
Educational Exchange Program, the International Visitors Pro-
gram, the Samantha Smith Memorial Exchange Program, the 
exchange programs of the National Academy of Sciences, youth 
and student exchanges through such private organizations as 
The Experiment in International Living, The American Field 
Service (Dommittee, and Youth for Understanding, and research 
exchanges sponsored by the International Research and Ex-
changes Board (IREX). 
(2) EMPHASIS ON SKILLS IN BUSINESS AND ECONOMICS.—The 
J 
1 
United States should place particular emphasis on expanding 
• 
its participation in educational exchange activities that will 
assist in developing the skills in business and economics that 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1315 
are necessary for the development of a free market economy in 
Pdlaftd and Hungary. 
0>) BiNATiONAL FuLBRiGHT COMMISSIONS.—The United States 
should take all appropriate action to establish binational Fulbright 
commissions with Poland and Hungary in order to facilitate and 
enhance academic and scholarly exchanges with those countries. 
(c) RECIPROCAL CULTURAL CENTERS.—The President should con-
sider the establishment of reciproced cultural centers in Poland and 
the United States and in Hungary and the United States to facili-
tate government-funded and privately-funded cultural exchanges. 
(d) SISTER INSTITUTIONS PROGRAMS.—The President shall act to 
encourage the establishment of "sister institution" programs be-
tween American and Polish organizations and between American 
and Hungarian organizations, including such organizations as 
institutions of higher education, cities and towns, and organizations 
in such fields as medicine and health care, business management, 
environmental protection, and eigricultural research and marketing. 
(e) AUTHORIZATION OF APPROPRIATIONS.—To enable the United 
States Information Agency to support the activities described in this 
section, there are authorized to be appropriated $12,000,000 for the 
3-year period beginning October 1, 1989, in addition to amounts 
otherwise available for such purposes. 
SEC. 402. POLAND-HUNGARY SCHOLARSHIP PARTNERSHIP. 
(a) 
ESTABLISHMENT OF SCHOLARSHIP PROGRAM.—The Adminis-
trator of the Agency for International Development is authorized to 
establish and administer a program of scholarship assistance, in 
cooperation with State governments, universities, community col-
leges, and businesses, to provide scholarships to enable students 
from Poland and Hungary to study in the United States. 
0)) EMPHASIS ON BUSINESS AND ECONOMICS.—The scholarship pro-
gram provided for in this section shall emphasize scholarships to 
enable students from Poland and Hungary to study business and 
economics in the United States. Such scholarships may be provided 
for study in programs that range from the standard management 
courses to more specialized assistance in commercial banking and 
the creation of a stock market. 
(c) GRANTS TO STATES.—In carrying out this section, the Adminis-
trator may make grants to States to provide scholarship assistance 
for undergraduate or graduate degree programs, and training pro-
grams of one year or longer, in study areas related to the critical 
development needs of Poland and Hungary. 
(d) CONSULTATION WITH STATES.—The Administrator shall consult 
with the participating States with regard to the educational 
opportunities available within each State and on the assignment of 
scholarship recipients. 
(e) FEDERAL SHARE.—The Federal share for each year for which a 
State receives payments under this section shall not be more than 
50 percent. 
(f) NON-FEDERAL SHARE.—The non-Federal share of payments 
under this section may be in cash, including the waiver of tuition or 
the offering of in-State tuition or housing waivers or subsidies, or in-
kind fairly evaluated, including the provision of books or supplies. 
(g) FORGIVENESS OF SCHOLARSHIP ASSISTANCE.—The obligation of 
any recipient to reimburse any entity for any or all scholarship 
assistance provided under this section shall be forgiven upon the 
recipient's prompt return to Poland or Hungary, as the case may be. 
President of U.S. 
State and local 
governments. 
Schools and 
colleges. 
22 u s e 5442. 
103 STAT. 1316 
PUBLIC LAW 101-179—NOV. 28, 1989 
Appropriation 
authorization. 
Appropriation 
authorizations. 
22 use 5443. 
for a period which is at least one year longer than the period spent 
studying in the United States with scholarship assistance. 
(h) PRIVATE SECTOR PARTICIPATION.—To the maximum extent 
practicable, each participating State shall enlist the assistance of 
the private sector to enable the State to meet the non-Federal share 
of payments under this section. Wherever appropriate, each partici-
pating State shall encourage the private sector to offer internships 
or other opportunities consistent with the purposes of this section to 
students receiving scholarships under this section. 
(i) FUNDING.—Grants to States pursuant to this section shall be 
made with funds made available to carry out chapter 1 of part I of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2151 and following; 
relating to development assistance) or chapter 4 of part II of that 
Act (22 U.S.C. 2346 and following; relating to the economic support-
fund). In addition to amounts otherwise available for such purpose 
under those chapters, there are authorized to be appropriated 
$10,000,000 for the 3-year period beginning October 1, 1989, for use 
in carrying out this section. 
(j) RESTRICTIONS NOT APPUCABLE.—Prohibitions on the use of for-
eign assistance funds for assistance for Poland and Hungary shall 
not apply with respect to the funds made available to carry out this 
section. 
(k) DEFINITION OF STATE.—As used in this section, the term 
"State" means each of the several States, the District of Columbia, 
the (Dommonwealth of Puerto Rico, Guam, American Samoa, the 
Virgin Islands, the Trust Territory of the Pacific Islands, and the 
Commonwealth of the Northern Mariana Islands. 
SEC. 403. SCIENCE AND TECHNOLOGY EXCHANGE WITH POLAND AND 
HUNGARY. 
(a) AGREEMENT WITH POLAND.—There are authorized to be appro-
priated to the Secretary of State for purposes of continuing to 
implement the 1987 United States-Polish science and technology 
agreement— 
(1) $1,500,000 for fiscal year 1990, 
(2) $2,000,000 for fiscal year 1991, and 
(3) $2,000,000 for fiscal year 1992. 
; 
(b) AGREEMENT WITH HUNGARY.—There are authorized to be 
appropriated to the Secretary of State for purposes of implementing 
the 
1989 
United 
States-Hungarian 
science 
and 
technology 
agreement— 
(1) $500,000 for fiscal year 1990, 
(2) $1,000,000 for fiscal year 1991, and 
(3) $1,000,000 for fiscal year 1992. 
(c) DEFINITION OF AGREEMENTS BEING FUNDED.—For purposes of 
this section— 
(1) the term "1987 United States-Polish science and tech-
nology agreement" refers to the agreement concluded in 1987 by 
the United States and Poland, entitled "Agreement Between 
the Government of the United States of America and the Polish 
" People's Republic on Cooperation in Science and Technology 
and Its Funding", together with annexes relating thereto; and 
(2) the term '^989 United States-Hungarian science and tech-
nology agreement" refers to the agreement concluded in 1989 by 
the United States and Hungary, entitled "Agreement Between 
the Government of the United States of America and the 
Government of the Hungarian People's Republic for Scientific 
PUBLIC LAW 101-179—NOV. 28,1989 
103 STAT. 1317 
and Technology Cooperation' 
thereto. 
together with annexes relating 
TITLE V—OTHER ASSISTANCE PROGRAMS 
SEC. 501. ASSISTANCE IN SUPPORT OF DEMOCRATIC INSTITUTIONS IN 
22 USC 5451. 
POLAND AND HUNGARY. 
(a) AUTHORIZATION OF ASSISTANCE.—In addition to amounts other-
wise available for such purposes, there are authorized to be appro-
priated to carry out chapter 4 of part II of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2346 and following; relating to the economic 
support fund) $12,000,000 for the 3-year period beginning October 1, 
1989, which shall be available only for the support of democratic 
institutions and activities in Poland and Hungary. 
(b) NoNAPPUCABiLiTY OF OTHER LAWS.—Assistance may be pro-
vided under this section notwithstanding any other provision of law. 
SEC. 502. ENVIRONMENTAL INITIATIVES FOR POLAND A
N
D HUNGARY. 
22 USC 5452. 
(a) PRIORITY FOR THE CONTROL OF POLLUTION.—The Congress rec-
ognizes the severe pollution problems affecting Poland and Hungary 
and the serious health problems which ensue from such pollution. 
The Congress therefore directs that a high priority be given in the 
implementation of assistance to Poland and Hungary to the control 
of pollution and the restoration of the natural resource base on 
which a sustainable, healthy economy depends. 
(b) EPA ACTIVITIES GENERALLY.—^In addition to specific authori-
ties contained in any of the environmental statutes administered by 
the Environmental Protection Agency, the Administrator of that 
Agency (hereinafter in this section referred to as the "Adminis-
trator ') is authorized to undertake such educational, policy training, 
research, and technical and financial assistance, monitoring, coordi-
nating, and other activities as the Administrator may deem appro-
priate, either alone or in cooperation with other United States or 
foreign agencies, governments, or public or private institutions, in 
protecting the environment in Poland and Hungary. 
(c) EPA ACTIVITIES IN POLAND.—The Administrator shall co-
operate with Polish officials and experts to— 
(1) establish an air quality monitoring network in the Krakow 
metropolitan area as a part of Poland's national air monitoring 
network; and 
(2) improve both water quality and the availability of drink- 
Water. 
ing water in the Kreikow metropolitan area. 
(d) EPA ACTIVITIES IN HUNGARY.—The Administrator shall work 
with other United States and Hungarian officials and private par-
ties to establish and support a regional center in Budapest for 
facilitating cooperative environmental activities between govern-
mental experts and public and private organizations from the 
United States and Eastern and Western Europe. 
(e) FUNDING OF EPA ACTIVITIES.—To enable the Environmental 
Appropriation 
Protection Agency to carry out subsections (b), (c), and (d), there are 
authorization. 
authorized to be appropriated $10,000,000 for the 3-year period 
beginning October 1, 1989, to carry out chapter 1 of part I of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2151 and following; relat-
ing to development assistance) or chapter 4 of Part II of that Act (22 
U.S.C. 2346 and following; relating to the economic support fund). 
These funds may be used to carry out those sufausections notwith-
103 STAT. 1318 
PUBLIC LAW 101-179—NOV. 28, 1989 
standing any provision of law relating to the use of foreign assist-
ance funds. 
(f) 
DEPARTMENT OF ENERGY ACTIVITIES RELATING TO FOSSIL 
FUELS.— 
(1) CLEAN COAL.—The Secretary of Energy shall cooperate 
with Polish officials and experts to retrofit a coal-fired commer-
cial powerplant in the Krakow, Poland, region with advanced 
clean coal technology that has been successfully demonstrated 
^^ 
at a comparably scaled powerplant in the United States. Such 
retrofit shall be carried out by one or more United States 
companies using United States technology and equipment 
manufactured in the United States. The Secretary may vest 
title in any property acquired under this paragraph in an entity 
other than the United States. 
(2) EJQUIPMENT ASSESSMENT.—The Secretary of Energy shall 
cooperate with Polish officials and experts and companies 
within the United States to assess and develop the capability 
within Poland to manufacture or modify boilers, furnaces, 
smelters, or other equipment that will enable industrial facili-
ties within Poland to use fossil fuels cleanly. The Secretary may 
vest title in any property acquired under this paragraph in an 
entity other than the United States. 
(3) AUTHORIZATION OF APPROPRIATIONS.—To carry out para-
graphs (1) and (2) of this subsection, there are authorized to be 
appropriated $30,000,000 for the 3-year period beginning Octo-
ber 1, 1989. Not more than $10,000,000 of the funds appro-
priated under this paragraph may be used to carry out the 
requirements of paragraph (1). 
Conservation. 
(g) PRIORITY FOR EFFICIENT ENERGY USE.—In view of t h e high 
energy usage per unit of output in Hungary and Poland, the Sec-
retary of Energy shall give high priority to assisting officials of 
Poland and Hungary in improving the efficiency of their energy use, 
through emphasis on such measures as efficient motors, lights, 
gears, and appliances and improvements in building insulation and 
design. 
(h) ALTERNATIVE INVESTMENTS IN ENERGY IN HUNGARY.—It is the 
sense of the Congress that the Executive branch should work with 
the Government of Hungary to achieve environmentally safe alter-
native investments in energy efficiency, particularly Math regard to 
projects along the Danube River. 
22 u s e 5453. 
SEC. 503. MEDICAL SUPPLIES, HOSPITAL EQUIPMENT, AND MEDICAL 
TRAINING FOR POLAND. 
(a) AUTHORIZATION OF ASSISTANCE.—In addition to amounts other-
wise available for such purposes, there are authorized to be appro-
priated to carry out chapter 4 of part II of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2346 and following; relating to the economic 
support fund) $4,000,000 for the 3-year period beginning October 1, 
1989, which shall be available only— 
(1) for providing medical supplies and hospital equipment to 
Poland through private and voluntary organizations, including 
for the expenses of purchasing, transporting, and distributing 
such supplies and equipment, and 
. . 
(2) for training of Polish medical personnel. 
Abortion. 
(b) NoNAPPLiCABiUTY OF OTHER LAWS.—Assistance may be pro-
vided under this section notwithstanding any other provision of law, 
) 
other than— --.': 
^ • -< 
^ • - . . . : . • -. 
, 
-,- 
.- . -
«
.
- « 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1319 
" (1) section 104(f) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151b(f); relating to the prohibition on the use of funds 
for abortions and involuntary sterilizations), and 
(2) any provision of the annual Foreign Operations, Export 
Financing, and Related Programs Appropriations Act that re-
lates to abortion. 
TITLE VI—ADDITIONAL SEED PROGRAM ACTIONS 
SEC. 
601. 
POLICY 
COORDINATION 
OF 
SEED 
PROGRAM. 
The President shall designate, within the Department of State, a 
SEED Program coordinator who shall be directly responsible for 
overseeing and coordinating all programs described in this Act and 
all other activities that the United States Government conducts in 
furtherance of the purposes of this Act. 
SEC. 602. SEED INFORMATION CENTER SYSTEM. 
(a) ESTABLISHMENT.—The President shall establish a SEED 
Information Center System, using existing Executive branch agen-
cies and acting in cooperation with the Government of Poland and 
the Government of Hungary. 
(b) FUNCTIONS.— 
(1) IN GENERAL.—The SEED Information Center System shall 
'^ 
serve as a central clearinghouse mechanism for information 
relating to— 
(A) business needs and opportunities in Eastern Europe, 
,5ij. 
a n d 
(B) voluntary assistance to countries in Eastern Europe, 
(2) PRIVATE ENTERPRISE DEVELOPMENT.—The SEED Informa-
tion Center System shall be organized, among other purposes, to 
encourage— 
(A) the submission of economically sound proposals to the 
Polish-American Enterprise Fund and Hungarian-Amer-
ican Enterprise Fund, and 
(B) other sources of finance for the development of pri-
vate enterprise in Eastern Europe. 
(c) LOCATION.—The SEED Information Center System shall be 
based jointly in Washington, District of Columbia; Warsaw, Poland; 
and Budapest, Hungary; and should it become appropriate, the 
capitals of other East European countries. 
SEC. 603. ENCOURAGING VOLUNTARY ASSISTANCE FOR POLAND AND 
HUNGARY. 
(a) ENCOURAGING PRIVATE CONTRIBUTIONS.—It is the sense of the 
Congress that the President should take all possible steps to encour-
age across the Nation a massive outpouring of private contributions 
of money and nonperishable foods, to be collected by civic, religious, 
school, and youth organizations, for assistance to Poland and to 
refugees from Romania who are in Hungary. 
(b) TRANSPORTATION TO POLAND OF PRIVATE CONTRIBUTIONS.—In 
further of subsection (a), the President— 
(1) using all available authorities, including section 402 of 
title 10, United States Code (relating to transportation of 
< 
humanitarian relief supplies), should use resources of the 
* 
Department of Defense (including the National Guard) to trans-
port nonflnancial private contributions to Poland, 
President of U.S. 
22 u s e 5461. 
22 u s e 5462. 
President of U.S. 
District of 
Columbia. 
22 u s e 5463. 
Romania. 
Armed Forces. 
103 STAT. 1320 
PUBLIC LAW 101-179—NOV. 28, 1989 
22 use 5464. 
«, 
(2) should request additional authorities as needed for the use 
-
• 
of those resources for that purpose; and 
(3) should encourage maximum participation by such recog-
nized private and voluntary organizations as the Polish-Amer-
ican Congress in the transportation of nonfinancial private 
contributions to Poland. 
SEC. 604. ECONOMIC AND COMMERCIAL OFFICERS AT UNITED STATES 
EMBASSIES AND MISSIONS IN POLAND AND HUNGARY. 
It is the sense of the Congress that, to the extent practicable— 
(1) the United States Embassy in Budapest, Hungary, should 
be eissigned one additional economic and commercial officer; 
(2) the United States Embassy in Warsaw, Poland, should be 
assigned one additional economic officer and one additional 
commercial officer; 
(3) the United States Trade Center in Warsaw, Poland, should 
be assigned one additional economic and commercial officer; 
and 
(4) the United States mission in Krakow, Poland, should be 
-^ 
assigned one additional economic and commercial officer. 
TITLE VII—REPORTS TO CONGRESS 
President of U.S. 
22 use 5471. 
President of U.S. 
22 use 5472. 
SEC. 70L REPORT ON INITIAL STEPS TAKEN BY UNITED STATES AND ON 
POLAND'S REQUIREMENT FOR AGRICULTURAL ASSISTANCE. 
(a) INITIAL REPORT.—Not later than 60 days after the date of 
enactment of this Act, the President shall submit a report to the 
Congress— 
(1) describing the steps taken by the United States Govern-
ment pursuant to title I, in particular sections 102 (a) and (b); 
(2) assessing Poland's requirements for additional agricultural 
assistance during fiscal year 1990 and its requirements for 
agricultural assistance during fiscal years 1991 and 1992; and 
(3) specif)dng how much agricultural assistance the President 
proposes be provided by the United States to meet those 
requirements. 
O
b
>
) UPDATING ASSESSMENTS.—As additional information becomes 
available, the President shall provide to the Congress revised assess-
ments of Poland's requirements for agricultur^ gissistance during 
fiscal years 1991 and 1992, specifying how much agricultural assist-
ance the President proposes be provided by the United States to 
meet those requirements. 
SEC. 
7
0
2
. 
REPORT ON CONFIDENCE BUILDING MEASURES BY POLAND 
AND 
HUNGARY. 
Not later than 180 days after the date of enactment of this Act, 
the President shall submit a report to the Congress identifying— 
(1) the confidence building measures Poland and Hungary 
could undertake to facilitate the negotiation of agreements, 
including bilateral customs and technology transfer agree-
ments, that would encourage greater direct private sector 
investment in that country; and 
(2) the confidence building measures Poland and Hungary 
could undertake with respect to the treatment accorded those 
countries under the Export Administration Act of 1979. 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1321 
SEC. 703. REPORT ON ENVIRONMENTAL PROBLEMS IN POLAND AND 
22 USC 5473. 
HUNGARY. 
The first report submitted pursuant to section 704 shall include 
the following: 
(1) ASSESSMENT OF PROBLEMS.—An overall assessment of the 
environmental problems facing Poland and Hungary, includ-
ing— 
(A) a relative ranking of the severity of the problems and 
their effects on both human health and the general 
environment; 
(B) a listing of the geographical areas of each country 
that have suffered the heaviest environmental damage, and 
a description of the source and scope of the damage; and 
(C) an assessment of the environmental performance of 
, 
leading industrial polluters in those countries and the ex-
pected effect on pollution levels of industrial moderniza-
tion. 
(2) PRIORITIES AND COSTS FOR ACTION.—An analysis of 
the 
priorities that Poland and Hungary should each assign in 
addressing its environmental problems, and an estimate of the 
capital and human resources required to undertake a com-
prehensive program of environmental protection in that 
country. 
(3) ROLE OF UNITED STATES AND MULTILATERAL ASSISTANCE.—A 
statement of strategy for United States assistance for the next 5 
years to address environmental problems in Poland and Hun-
gary, including— 
(A) recommendations for appropriate levels and forms of 
-'-'^ 
bilateral financial and technical assistance; 
(B) recommendations concerning United States participa-
tion in cooperative multilateral undertakings; 
(C) an assessment of the feasibility of debt-for-nature 
swaps as a technique of environmental protection in each 
country; and 
(D) recommendations for minimizing further environ-
mental damage to Krakow, and for the protection and 
; 
restoration of historic sites in that city. 
SEC. 704. ANNUAL SEED PROGRAM REPORT. 
22 USC 5474. 
(a) FINDINGS.—The Congress finds that— 
(1) in order to provide the President with maximum flexibility 
and opportunity for innovation in implementation of the SEED 
Program, this Act sets forth general goals and modalities for the 
support of democracy and economic pluralism in Eastern 
* 
Europe; 
(2) prompt United States action in devising specific measures 
to achieve the goals outlined in this Act will be crucial in 
generating the public awareness, and the international commit-
ment, necessary for United States leadership of a successful 
multilateral program of assistance in Eastern Europe; and 
(3) clear-cut delineation of such United States actions at an 
. •; 
if 
early date is integral to United States leadership of this effort. 
0)) INITIAL SEED PROGRAM REPORT.—Accordingly, the first report 
pursuant to subsection (c) shall be a comprehensive report that 
includes a full description of all SEED Actions taken pursuant to 
each provision of this Act since the enactment of this Act. 
103 STAT. 1322 
PUBLIC LAW 101-179—NOV. 28, 1989 
President of U.S. 
(c) ANNUAL SEED I*ROGRAM REPORT.—Not later than January 31 of 
each year (beginning in 1991), the President shall submit to the 
Congress a "Report on the United States Program of Support for 
East European Democracy (the SEED Progrgim)". Each such report 
shall describe the assistance provided to each East European coun-
try under this Act during the preceding fiscal year. In addition, each 
such report shall contain £in assessment of the progress made by 
each such recipient country in— 
(1) implementing economic policies designed to promote sus-
tained economic growth, develop economic freedom, and in-
crease opportunities for the people of that country; and 
y 
' 
(2) adopting and implementing constitutionsd, legal, and 
administrative measures that— 
(A) affect the powers of the executive and legislative 
authorities and the independence of the judiciary, 
(B) affect the formation and operation of independent 
• ' political parties, groups, associations, or organizations, or 
(C) affect fundamental human rights and civil liberties. 
SEC. 705. REPORTS ON CERTAIN ACTIVITIES. 
At the same time each report is submitted pursuant to section 
704(c), the President shall submit to the appropriate committees of 
the Congress a report on the extent of espionage activities against 
the United States and other member countries of the North Atlantic 
Treaty Organization by operatives of the government of any East 
European country that is receiving assistance under this Act. Such 
reports may be submitted in classified form. 
22 use 5476. 
SEC. 706. NOTIFICATIONS TO CONGRESS REGARDING ASSISTANCE. 
Section 634A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2394-1; relating to reprogramming notifications) applies with re-
spect to obligations of funds made available under that Act to carry 
out this Act, notwithstanding any other provision of this Act. 
President of U.S. 
22 use 5475. 
TITLE VIII—MISCELLANEOUS PROVISIONS 
22 use 5491. 
SEC. 801. SUSPENSION OF SEED ASSISTANCE. 
The President should suspend all assistance to £m East European 
country pursuant to this Act if the President determines, and 
reports to the Congress, that— 
(1) that country is engsiged in international activities directly 
and fundamentally contrary to United States national security 
interests; 
(2) the president or any other government official of that 
country initiates martial law or a state of emergency for rea-
, sons other than to respond to a natural disaster or a foreign 
invasion; or 
(3) any member who was elected to that country's parliament 
has been removed from that office or arrested through 
extraconstitutional processes. 
22 u s e 5492. 
SEC. 802. DECLARATION OF THE REPUBLIC OF HUNGARY. 
(a) FINDINGS.—The Congress finds that— 
(1) on October 23, 1989, in a public ceremony in Budapest, the 
acting President of Hungary declared the Hungarian state to be 
an independent, democratic Republic of Hungary; 
PUBLIC LAW 101-179—NOV. 28, 1989 
103 STAT. 1323 
(2) this public ceremony was held on the 33d anniversary of 
Hungary's 1956 revolution that was bloodily suppressed by 
Soviet troops; 
(3) this public ceremony was held in the same Kossuth Square 
where the first mass rally of the 1956 revolution was held; 
(4) as a further symbol of Hungary's faithfulness to the legacy 
of the revolution of 1956, the declaration by the acting President 
was made from the same balcony from which Imre Nagy, the 
mart)n"ed Prime Minister of the revolutionary government of 
1956, addressed the citizens of Budapest 33 years before; 
(5) the heroic revolt and freedom fight of the Hungarian 
people in 1956 was an inspirational event, reminding a genera-
tion of Americans of the sacrifices people are willing to under-
take as the price of liberty; and 
(6) the present efforts of the Hungarian people to validate the 
legacy of the revolution of 1956 by establishing a free, independ-
ent, and prosperous Hungary have gained the S)anpathy and 
admiration of the American people. 
(b) CONGRESSIONAL DECLARATIONS.—The Congress— 
(1) congratulates the people of Hungary on the declaration of 
a Republic of Hungary committed to democratic principles; and 
(2) expresses its desire to enhance the friendly relations be-
tween the people of Hungary and the people of the United 
States and between their respective governments. 
SEC. 803. ADMINISTRATIVE EXPENSES OF THE AGENCY FOR INTER- 
22 USC 5493. 
NATIONAL DEVELOPMENT. 
For the purpose of paying administrative expenses incurred in 
-
connection with carr3dng out its functions under this Act, the 
Agency for International Development may use up to $500,000 each 
fiscal year of the funds made available to the Agency under this Act. 
SEC. 804. RELATION OF PROVISIONS OF THIS ACT TO CERTAIN PROVI- 
22 USC 5494. 
SIONS OF APPROPRIATIONS ACTS. 
Any provision of the annual Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act that provides that 
--
assistance for Poland or Hungary under that Act may be provided 
"notwithstanding any other provision of law" shall not supersede 
any otherwise applicable provision of this Act. This section shall not, 
however, be construed to apply with respect to section 599C(b) of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1990 (or a corresponding provision of a subse-
quent such appropriations Act). 
SEC. 805. CERTAIN USES OF EXCESS FOREIGN CURRENCIES. 
22 USC 5495. 
(a) AUTHORITY TO USE.—During fiscal year 1990, the Adminis-
trator of the Agency for International Development may use, for the 
purposes described in subsection (b), such sums of foreign currencies 
described in subsection (c) as the Administrator may determine, 
subject to subsection (f). 
(b) PURPOSES FOR WHICH CURRENCY MAY BE USED.—Foreign cur-
rencies may be used under this section— 
(1) for the same purposes for which assistance may be pro-
vided under part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 and following; relating to economic assistance), and 
(2) for the support of any institution providing education for a 
significant number of United States nationals (who may include 
103 STAT. 1324 
PUBLIC LAW 101-179—NOV. 28, 1989 
members of the United States Armed Forces or the Foreign 
Service or dependents of such members). 
(c) CURRENCIES WHICH MAY BE USED.—The foreign currencies 
which may be used under this section are United States-owned 
excess foreign currencies that are in excess of amounts necessary for 
satisfaction of preexisting commitments to use such currencies for 
other purposes specified by law. 
(d) WHERE CURRENCIES MAY BE USED.—Foreign currencies may be 
used under this section in the country where such currencies are 
held or in other foreign countries. 
(e) NoNAPPUCABiLiTY O
P OTHER PROVISIONS O
P LAW.—Foreign 
currencies may be used under this section notwithstanding section 
1806 of title 31, United States Code, or any other provision of law. 
(f) REQUIREMENT POR APPROPRIATIONS ACTION.—The authority of 
^ 
this section may be exercised only to such extent or in such amount 
as may be provided in advance in an appropriation Act. 
Approved November 28, 1989. 
LEGISLATIVE HISTORY—H.R. 3402: 
HOUSE REPORTS: No. 101-278, Pt. 1 (Cbmm. on Ways and Means), Ft. 2 (Ck)mm. on 
Foreign Affairs), and Pt. 3 (Comm. on Public Works and 
Transportation); and No. 101-377 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Oct. 19, considered and passed House. 
Nov. 14, considered and passed Senate, amended. 
yi 
Nov. 16, House concurred in Senate amendments with an amendment. 
Nbv. 17, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
Nov. 28, Presidential statement.