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(8) Assistance to Eastern Europe and Yugoslavia

Partial text of Public Law 101-243 [Urgent Assistance for Democracy in Panama Act of 1990; H.R. 3952], 104 Stat. 7, approved February 14, 1990 AN ACT To authorize certain United States assistance and trade benefits for Panama and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE

This Act may be cited as the "Urgent Assistance for Democracy in Panama Act of 1990".

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TITLE II-EASTERN EUROPE AND YUGOSLAVIA

SEC. 201. ASSISTANCE TO SUPPORT TRANSITION TO DEMOCRACY. (a) AUTHORITY.-Notwithstanding any other provision of law, the President may use up to $10,000,000 of the funds appropriated 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) to support the process of democratic transition in East European countries and Yugoslavia, in addition to amounts otherwise available for such purposes.

(b) LIMITATION.-Funds provided under this section shall be made available only—

(1) after the President has certified to the Congress that the country where funds are being expended has had, or is scheduled to have, open and free multiparty national or regional elections; and

(2) in such a manner so as to benefit substantially a full range of non-Communist political parties in the countries in which such funds are used.

1Title I may be found at page 266.

(9) Support for East European Democracy (SEED) Act of 1989

Public Law 101–179 [H.R. 3402], 103 Stat. 1298, approved November 28, 1989; amended by Public Law 102-511 [FREEDOM Support Act; S. 2532], 106 Stat. 3320, approved October 24, 1992; Public Law 102-549 [Jobs Through Exports Act of 1992; H.R. 4996], 106 Stat. 3651, approved October 28, 1992; Public Law 104–99 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996, H.R. 1868, enacted by reference in sec. 301 of Public Law 104-99; H.R. 2880], 110 Stat. 26, approved January 26, 1996, enacted again as Public Law 104-107 [H.R. 1868], 110 Stat. 704, approved February 12, 1996; Public Law 105-118 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998; H.R. 2159], 111 Stat. 2386, approved November 26, 1997; and by Public Law 105-206 [Internal Revenue Service Restructuring and Reform Act of 1998; H.R. 2676], 112 Stat. 685, approved July 22, 1998

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 1.1 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

Page

120

Sec. 2. Support for East European Democracy (SEED) Program

121

Sec. 3. Scope of Authority

125

TITLE I-STRUCTURAL ADJUSTMENT

Sec. 101. Multilateral support for structural adjustment in Poland and Hungary

125

Sec. 102. Stabilization assistance for Poland

126

Sec. 103. Agricultural assistance

127

Sec. 104. Debt-for-equity swaps and other special techniques

128

TITLE II-PRIVATE SECTOR DEVELOPMENT

Sec. 201. Enterprise Funds for Poland and Hungary

129

Sec. 202. Labor market transition in Poland and Hungary

133

Sec. 203. Technical training for private sector development in Poland and
Hungary

134

Sec. 204. Peace Corps programs in Poland and Hungary

135

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

135

136

122 U.S.C. 5401 note.

2 Sec. 202(e) of Public Law 102-549 (106 Stat. 3658) provided that any reference in any law to the Trade and Development Program shall be deemed to be a reference to the Trade and Development Agency.

TITLE III-TRADE AND INVESTMENT

Sec. 301. Eligibility of Poland for Generalized System of Preferences

136

Sec. 303. Export-Import Bank programs for Poland and Hungary
Sec. 304. Trade Credit Insurance Program for Poland

Sec. 302. Overseas Private Investment Corporation programs for Poland and Hungary

137

137

137

Sec. 305. Trade and Development Agency 2 activities for Poland and Hungary

138

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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

138

138

TITLE IV-EDUCATIONAL, CULTURAL, AND SCIENTIFIC ACTIVITIES Sec. 401. Educational and cultural exchanges and sister institutions programs with Poland and Hungary

138

Sec. 402. Poland-Hungary scholarship partnership
Sec. 403. Science and technology exchange with Poland and Hungary

139

140

TITLE V-OTHER ASSISTANCE PROGRAMS

Sec. 501. Assistance in support of democratic institutions in Poland and
Hungary

141

Sec. 502. Environmental initiatives for Poland and Hungary
Sec. 503. Medical supplies, hospital equipment, and medical training for Po-
land

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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

144

144

TITLE VII-REPORTS TO CONGRESS

Sec. 701. Report on initial steps taken by United States and on Poland's requirement for agricultural assistance

145

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

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Sec. 803. Administrative expenses of the Agency for International Development

148

Sec. 804. Relation of provisions of this Act to certain provisions of appropriations Acts

148

Sec. 805. Certain uses of excess foreign currencies

148

SEC. 2.3 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

322 U.S.C. 5401. Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following:

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

"(a) For necessary expenses to carry out the provisions of the Foreign Assistance Act of 1961 and the Support for East European Democracy (SEED) Act of 1989, $396,600,000, to remain available until September 30, 2006, which shall be available, notwithstanding any other provision of law, for assistance and for related programs for Eastern Europe and the Baltic States: Provided, That of the funds appropriated under this heading that are made available for assistance for Bulgaria, $2,000,000 should be made available to enhance safety at nuclear power plants.

Continued

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

"(b) Funds appropriated under this heading shall be considered to be economic assistance under the Foreign Assistance Act of 1961 for purposes of making available the administrative authorities contained in that Act for the use of economic assistance.

"(c) The provisions of section 529 of this Act shall apply to funds appropriated under this heading: Provided, That notwithstanding any provision of this or any other Act, including provisions in this subsection regarding the application of section 529 of this Act, local currencies generated by, or converted from, funds appropriated by this Act and by previous appropriations Acts and made available for the economic revitalization program in Bosnia may be used in Eastern Europe and the Baltic States to carry out the provisions of the Foreign Assistance Act of 1961 and the Support for East European Democracy (SEED) Act of 1989.

"(d) The President is authorized to withhold funds appropriated under this heading made available for economic revitalization programs in Bosnia and Herzegovina, if he determines and certifies to the Committees on Appropriations that the Federation of Bosnia and Herzegovina has not complied with article III of annex 1-A of the General Framework Agreement for Peace in Bosnia and Herzegovina concerning the withdrawal of foreign forces, and that intelligence cooperation on training, investigations, and related activities between state sponsors of terrorism and terrorist organizations and Bosnian officials has not been terminated.".

(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.

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