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SEED Act
Support for East European Democracy (SEED) Act of 1989 (Enrolled Bill (Sent to President))
One Hundred First Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the third day of January, one thousand nine hundred and eighty-nine
An Act
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 OF CONTENTS- The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 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 II--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 Hungary.
Sec. 204. Peace Corps programs in Poland and Hungary.
Sec. 205. Use of Polish currency generated by agricultural assistance.
Sec. 206. United States policy of private financial support for Polish and Hungarian credit unions.
TITLE III--TRADE AND INVESTMENT
Sec. 301. Eligibility of Poland for Generalized System of Preferences.
Sec. 302. Overseas Private Investment Corporation programs for Poland and Hungary.
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 ACTIVITIES
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.
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 Embassies and missions in Poland and Hungary.
TITLE VII--REPORTS TO CONGRESS
Sec. 701. Report on initial steps taken by United States and on Poland's requirement 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 VIII--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.(a) SEED PROGRAM- The United States shall implement, beginning 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 undertakings designed to provide cost-effective assistance to those countries of Eastern Europe that have taken substantive steps toward institutionalizing political democracy and economic pluralism.
(b) 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 representative 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 private property, including land and the benefits of contractual 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 imports and exports,
(F) liberalization of investment and capital, including the repatriation of profits by foreign investors;
(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 unrestricted access to private sources of credit, and
(I) access to a market for stocks, bonds, and other instruments through which individuals may invest in the private sector; and
(3) not to contribute any substantial benefit--
(A) to Communist or other political parties or organizations 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 MONETARY 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 commodities and products when such assistance can ease critical shortages 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- Technical assistance 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 CREDIT UNIONS- Support for the establishment of indigenous credit unions.
(10) GENERALIZED SYSTEM OF PREFERENCES- Eligibility for trade benefits under the Generalized System of Preferences.
(11) MOST FAVORED NATION TRADE STATUS- The granting of temporary or permanent nondiscriminatory treatment (commonly 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 Assistance Act of 1961.
(15) INVESTMENT TREATIES- Negotiation of bilateral investment 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 establishment of reciprocal cultural centers that can facilitate educational 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 cooperation in science and technology exchange.
(22) ASSISTANCE FOR DEMOCRATIC INSTITUTIONS- Assistance designed to support the development of legal, legislative, electoral, 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 targeted to overcome severe deficiencies in pharmaceuticals and other basic health supplies.
(25) ENCOURAGEMENT FOR PRIVATE INVESTMENT AND VOLUNTARY ASSISTANCE- Encouraging private investment and voluntary 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 nonfinancial contributions.
TITLE I--STRUCTURAL ADJUSTMENTSEC. 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 programs, 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 institutions in the World Bank group, to provide timely and appropriate 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 International Bank for Reconstruction and Development to urge expeditious approval and disbursement by the Bank of a structural 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) STABILIZATION ASSISTANCE, DEBT RELIEF, AND AGRICULTURAL ASSISTANCE FOR POLAND- To the extent that Poland continues to evolve toward pluralism and democracy and to develop and implement comprehensive economic reform programs, the United States Government shall do the following:
(1) STABILIZATION ASSISTANCE- The United States Government, 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 implementation 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 procedures; and
(B) the authority provided in section 102(c) of this Act.
(2) DEBT RELIEF- 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 international debt policy announced by the Secretary of the Treasury on March 10, 1989.
(3) AGRICULTURAL ASSISTANCE- The United States Government shall provide agricultural assistance for Poland in accordance with section 103.
SEC. 102. STABILIZATION ASSISTANCE FOR POLAND.(a) IMMEDIATE EMERGENCY ASSISTANCE- To the extent that the ongoing International Monetary Fund review of the Polish economy projects a probable balance of payments shortage for the fourth quarter of 1989, the United States Government, in carrying out paragraph (1) of section 101(b)--
(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 immediate and urgent balance of payments requirements using the Exchange Stabilization Fund in accordance with paragraph (1)(A) of section 101(b).
(b) IMMEDIATE, MULTILATERAL RESPONSE TO POLAND'S ECONOMIC STABILIZATION NEEDS- In furtherance of section 101(b)(1), the President, 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 STABILIZATION ASSISTANCE-
(1) AUTHORITY- In order to carry out paragraph (1) of section 101(b), the President is authorized to furnish assistance 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 development, 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 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.(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 alleviate 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 agricultural surplus countries.
(3) AVOIDING DISINCENTIVES TO PRIVATE AGRICULTURAL PRODUCTION AND MARKETING- In participating in such multilateral agricultural assistance, the United States shall seek to strike a balance wherein agricultural commodities and products are supplied in such quantities as will be effective in overcoming severe shortages and dampening inflation but without impeding the development of incentives for private agricultural production and marketing in the recipient country.
(b) AGRICULTURAL ASSISTANCE FOR POLAND- Pursuant to section 101(b)(3), the United States Government--
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Last Updated on: March 13, 2002 |
