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Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''South African Democratic 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 opportunity for a transition
to a peaceful, stable, and democratic future.
(2) Through broad and open negotiations, the parties in
South Africa have reached a landmark agreement on the future of
their country. This agreement includes the establishment of a
Transitional Executive Council and the setting of a date for
nonracial elections.
(3) The international community has a vital interest in
supporting the transition from apartheid toward nonracial
democracy.
(4) The success of the transition in South Africa is
crucial to the stability and economic development of the
southern African region.
(5) Representative leaders in South Africa, including
Nelson Mandela of the African National Congress, have called
for an end to all remaining measures limiting economic contacts
with South Africa.
(6) In light of recent developments, the continuation of
such measures is detrimental to persons disadvantaged by
apartheid.

SEC. 3. UNITED STATES POLICY.

It is the sense of the Congress that--
(1) the United States should--
(A) strongly support the Transitional Executive
Council in South Africa,
(B) encourage rapid progress toward the
establishment of a nonracial democratic government 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 provide 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 international 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 managerial
opportunities, professional advancement, training, and
employment for disadvantaged South Africans and to respond to
the historical inequities created under apartheid, the United
States should--
(A) promote the expansion of private enterprise and
free markets in South Africa,
(B) encourage the South African private sector to
take a special responsibility and interest in providing
such opportunities, advancement, training, and
employment for disadvantaged South Africans, and
(C) encourage United States private sector
investment in and trade with South Africa;
(5) the United States should urge the Government of South
Africa to liberalize its trade and investment policies to
facilitate the expansion of the economy, and to shift resources
to meet the needs of disadvantaged South Africans;
(6) the United States should promote cooperation between
South Africa and other countries in the 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 establishment and perpetuation of, a
nonracial democracy in South Africa.

SEC. 4. REPEAL OF APARTHEID SANCTIONS LAWS AND OTHER PROVISIONS
DIRECTED AT SOUTH AFRICA.

(a) Comprehensive Anti-Apartheid Act.--
(1) In general.--All provisions of the Comprehensive Anti-
Apartheid Act of 1986 (22 U.S.C. 5001 and following) are
repealed as of the date of enactment of this Act, except for
the sections specified in paragraph (2).
(2) Effective date of repeal of code of conduct
requirements.--Sections 1, 3, 203(a), 203(b), 205, 207, 208,
601, 603, and 604 of the Comprehensive Anti-Apartheid Act of
1986 are repealed as of the date on which the President
certifies to the Congress that an interim government that was
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 Assistance Act
of 1961 that were enacted by the Comprehensive 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),
relating to assistance for disadvantaged South Africans; and
section 535 (22 U.S.C. 2346d). Section 116(e)(1) of the Foreign
Assistance Act of 1961 is amended by striking ''(1)''.
(b) Other Provisions.--The following provisions are repealed or
amended as follows:
(1) Subsections (c) and (d) of section 802 of the
International Security and Development Cooperation Act of 1985
(99 Stat. 261) is repealed.
(2) Section 211 of the Foreign Relations Authorization Act,
Fiscal Years 1986 and 1987 (99 Stat. 432) is repealed, and
section 1(b) of that Act is amended by striking the item in the
table of contents relating to section 211.
(3) Sections 1223 and 1224 of the Foreign Relations
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 Authorization 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 contents 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 Agreements Act (22
U.S.C. 286aa) is amended by repealing subsection (b) and by
striking ''(a)''.
(7) Section 330 of H.R. 5205 of the 99th Congress
(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.
(c) Sanctions Measures Adopted by State or Local Governments or
Private Entities.--The Congress 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.

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
support the transition to nonracial democracy in South Africa. Such
assistance shall--
(1) focus on building the capacity of disadvantaged South
Africans to take their rightful place in the political, social,
and economic systems of their country;
(2) give priority to working with and through South African
nongovernmental organizations whose leadership and staff
represent the majority population and which have the support of
the disadvantaged communities being served by such
organizations;
(3) in the case of education programs--
(A) be used to increase the capacity of South
African institutions to better serve the needs of
individuals disadvantaged by apartheid;
(B) emphasize education within South Africa 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 programs,
political party building, and technical electoral 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 accordance with this
section may not be made available to the Government of South
Africa, or organizations financed and substantially controlled
by that government, unless the President certifies to the
Congress that an interim government that was elected on a
nonracial basis through free and fair elections has taken
office in South Africa.
(2) Exceptions.--Notwithstanding paragraph (1), assistance
may be provided for--
(A) the Transitional Executive Council;
(B) South African higher education institutions,
particularly those traditionally disadvantaged by
apartheid policies; and
(C) any other organization, entity, or activity if
the President determines that the assistance would
promote the transition to nonracial democracy in South
Africa.
Any determination under subparagraph (C) shall be based on
consultations with South African individuals and organizations
representative of the majority population in South Africa
(particularly consultations through the Transitional Executive
Council) and consultations with the appropriate congressional
committees.

SEC. 6. UNITED STATES INVESTMENT AND TRADE.

(a) Tax Treaty.--The President should begin immediately to
negotiate a tax treaty with South Africa to facilitate United States
investment in that country.
(b) OPIC.--The President should immediately initiate negotiations
with the Government of South Africa for an agreement authorizing the
Overseas Private Investment Corporation to carry out programs with
respect to South Africa in order to expand United States investment in
that country.
(c) Trade and Development Agency.--In carrying out section 661 of
the Foreign Assistance Act of 1961, the Director of the Trade and
Development Agency should 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
enterprises in South Africa that are majority-owned by South
Africans disadvantaged by apartheid.
(2) United states government procurement.--Notwithstanding
any law relating to the making or performance of, or the
expenditure of funds for, United States Government contracts,
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.

SEC. 7. INFORMATION AND EDUCATIONAL EXCHANGE PROGRAMS.

The Director of the United States Information Agency should use the
authorities of the United States Information and Educational Exchange
Act of 1948 to promote the 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 Community 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 shall 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
initiate or expand its lending and other financial assistance
activities to South Africa in order to support the transition to
nonracial democracy in South Africa.

SEC. 10. CONSULTATION WITH SOUTH AFRICANS.

In carrying out this Act, the President shall consult closely with
South African individuals and organizations representative of the
majority population in South Africa (particularly consultations through
the Transitional Executive Council) and others committed to abolishing
the remnants of apartheid.

Passed the Senate September 24 (legislative day, September
7), 1993.

Attest:

MARTHA S. POPE,

Secretary.
A:
South African Democratic Transition Support Act of 1993 - Expresses the sense of the Congress with respect to U.S. policy towards South Africa.
Repeals specified provisions of the Comprehensive Anti-Apartheid Act of 1986, providing for a total repeal of such Act when 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.
Urges all State or local governments and private entities in the United States to rescind any restrictions on economic interactions with South Africa.
Authorizes the President to provide development and economic support fund assistance to support the transition to nonracial democracy in South Africa. Prohibits such assistance to the Government of South Africa unless the President certifies to the Congress that an interim government elected on a nonracial basis through free and fair elections has taken office. Exempts from such prohibition assistance to the Transitional Executive Council, South African higher education institutions, and any other entity that would promote the transition to nonracial democracy.
Declares that the President should: (1) negotiate a tax treaty with South Africa; (2) initiate negotiations with the South African Government to provide for Overseas Private Investment Corporation programs in such country; (3) conclude cooperative agreements with South Africa on various issues; and (4) encourage other donors to expand their activities in support of the transition to nonracial democracy.
States that: (1) the Director of the Trade and Development Agency should provide additional funds for projects in South Africa; (2) the Export-Import Bank should expand its activities in connection with exports to South Africa; and (3) the Director of the U.S. Information Agency should use his authorities to promote the transition to nonracial democracy.
Requires the heads of Federal Government agencies, in procuring goods or services, to make affirmative efforts to assist business enterprises having more than 50 percent ownership by nonwhite South Africans.
Directs the Secretary of the Treasury to instruct the U.S. executive directors of international financial institutions to urge financial assistance to South Africa to support the transition to democracy.