with particular emphasis on monitoring commodity import programs and cash transfers for balance of payments and budget support programs;

(B) in cooperation with the governments and nongovernmental organizations receiving such assistance, establish appropriate administrative systems and controls to ensure that the assistance is being used for its intended purposes; (2) the Inspector General of the Agency for International Development shall, at least semiannually beginning six months from the date of enactment of this Act, audit the Economic Support Fund programs provided under this Act for Nicaragua and Panama to assess the financial management and administrative systems established by the Agency to control such programs, and to report to the Committees on Appropriations, the Senate Committee on Foreign Relations and the House Committee on Foreign Affairs and the Administrator its findings; and

(3) the General Accounting Office shall submit a report to the Committees on Appropriations, the Senate Committee on Foreign Relations and the House Committee on Foreign Af fairs not later than January 15, 1992, assessing the effective ness of the Economic Support Fund assistance provided under this Act for Panama and Nicaragua, emphasizing commodity import programs and cash transfers used for balance of payments and budget support, in meeting stated objectives, the effectiveness of fiscal and administrative controls, and the application of lessons learned from the implementation of these programs to other similar programs administered by the Agency.

WAIVERS AND AUTHORITIES

(a) Funds appropriated by this chapter for the "Economic Support Fund" for Panama shall be available as follows: (1) up to $1,200,000 may be provided to carry out the purposes of section 534(b)(3) of the Foreign Assistance Act of 1961 for countries in Latin America and the Caribbean other than Panama; (2) assistance may be provided for technical assistance, training, and commodities with the objective of creating a professional civilian police force notwithstanding section 660 of the Foreign Assistance Act of 1961, except that such assistance shall not include more than $5,000,000 for the procurement of equipment for law enforcement purposes in Panama, and shall not include lethal equipment; and (3) the limitations contained in the second sentence of section 534(e) of the Foreign Assistance Act of 1961 and the second sentence of 599G(c) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990,1 shall not be applicable to assistance provided under this subsection.

1 The second sentence of sec. 599G(c) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, stated, “Not less than $7,000,000 of the funds made available to carry out the provisions of chapter 4 of part II of the Foreign Assistance Act of 1961 for fiscal year 1990 shall be made available for the purposes of subsection 534(b)3) of the Foreign Assistance Act of 1961.".

(b) Funds appropriated under this chapter for Panama and Nicaragua, as well as during fiscal year 1990 funds otherwise available for economic assistance under other provisions of law and assistance under chapter 8 of part II of the Foreign Assistance Act of 1961, may be made available for Panama and Nicaragua notwithstanding section 518 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, section 620(q) of the Foreign Assistance Act of 1961, or any similar provision of law relating to foreign assistance repayments.

(5) Support for East European Democracy (SEED) Act of 1989 1

Partial text of Public Law 101-179 [H.R. 3402], 103 Stat. 1298, approved November 28, 1989

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 1.2 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".

TITLE V-OTHER ASSISTANCE PROGRAMS

SEC. 502.3 ENVIRONMENTAL INITIATIVES FOR POLAND AND HUNGARY. (a) PRIORITY FOR THE CONTROL OF POLLUTION.-The Congress recognizes 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 authorities 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 "Administrator") is authorized to undertake such educational, policy training, research, and technical and financial assistance, monitoring, coordinating, and other activities as the Administrator may deem appropriate, 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 cooperate 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

1 For complete text, see Legislation on Foreign Relations Through 1990, vol. I, beginning at page 803. 2 22 U.S.C. 5401 note.

3 22 U.S.C. 5452.

(2) improve both water quality and the availability of drinking water in the Krakow metropolitan area.

(d) EPA ACTIVITIES IN HUNGARY.-The Administrator shall work with other United States and Hungarian officials and private parties to establish and support a regional center in Budapest for facilitating cooperative environmental activities between governmental experts and public and private organizations from the United States and Eastern and Western Europe.

(e) FUNDING OF EPA ACTIVITIES.-To enable the Environmental Protection Agency to carry out subsections (b), (c), and (d), 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) 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 subsections notwithstanding any provision of law relating to the use of foreign assistance 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 commercial 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) EQUIPMENT 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 facilities 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 paragraphs (1) and (2) of this subsection, there are authorized to be appropriated $30,000,000 for the 3-year period beginning October 1, 1989. Not more than $10,000,000 of the funds appropriated under this paragraph may be used to carry out the requirements of paragraph (1).

(g) PRIORITY FOR EFFICIENT ENERGY USE.-In view of the high energy usage per unit of output in Hungary and Poland, the Secretary 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 with regard to projects along the Danube River.

TITLE VII-REPORTS TO CONGRESS

SEC. 703.4 REPORT ON ENVIRONMENTAL PROBLEMS IN POLAND AND 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, including—

(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 expected effect on pollution levels of industrial modernization.

(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 comprehensive 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 Hungary, including

(A) recommendations for appropriate levels and forms of bilateral financial and technical assistance;

(B) recommendations concerning United States participation 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 environmental damage to Krakow, and for the protection and restoration of historic sites in that city.

4 22 U.S.C. 5473.