101st CONGRESS
1st Session
H. R. 3402
AMENDMENT
TO
SENATE AMENDMENT
HR 3402 EAH
In the House of Representatives, U.S.,
November 16, 1989.
Resolved, That the House agree to the amendment of the Senate to the
text of the bill (H.R. 3402) entitled `An Act to promote political and
economic democracy in Poland and Hungary as those countries develop and
implement programs of comprehensive economic reform', with the following
AMENDMENT:
In lieu of the matter proposed to be inserted by said amendment, insert:

cc51ac653b64382d622c7ad1f876e8992fe7e6679c7275e4c0605cabe795dcaf

(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:

68be989a5c0a939e66376ed453d95a456e497172c94b8b787af21b114b90ef15

282993d0ac97500f9e0f4349abfc6cbc4dddd99525d5975e5652551e608f858c

TITLE II

-PRIVATE SECTOR DEVELOPMENT

523c9f6eb1b1214554ea6fa651c0bd9df3b0f2709b6cd1df83cf5a87c9914d66

TITLE III

-TRADE AND INVESTMENT

7e2d37fb4c7b4a93a269f0db10c7e1bc6617724a58ea0bf8fd6aa7dccb01ab28

63d670ed742f4787f837559cf4d058a7e0f5d3f8f1341c7be30acce17b91aeb5

TITLE IV

-EDUCATIONAL, CULTURAL, AND SCIENTIFIC ACTIVITIES

TITLE V

-OTHER ASSISTANCE PROGRAMS

5fd36dbc837023b78cf361a6c0bb15c4bf8cd42d4423f7ae2bb670480e2f4967

ec9a1039b1443639648338b632f4ed819b7b79c98164004da62171c2526c2577

TITLE VI

-ADDITIONAL SEED PROGRAM ACTIONS

ee230cf9a6d5e1e068d1474266bedaf1c59c9ea158772d9f002bf2a29e99dc98

TITLE VII

-REPORTS TO CONGRESS

c7b069f7b60bf7b0120391384c137328d7c0f0ce3d1d37701a4784c25cf1b484

TITLE VIII

-MISCELLANEOUS PROVISIONS

(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, and
(F) liberalization of investment and capital, including the repatriation
of profits by foreign investors; 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.

5c5aab6f85d1f2fe290cd204225aa16662d0ec7e71110ddcdd16a7d1c8eda537

(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.

cb282357caaa2c1d412a159178b9e277041e12d3f51f97e937587840fa1b6dca

TITLE I

-STRUCTURAL ADJUSTMENT

(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.

e5e82bf0730785a2b2d22345b0903da332604ef56e0c1dd20f505f7fa4526c7c

(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--
(1) shall make available to Poland, in coordination with the European
Community, United States agricultural assistance--
(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 OF 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 following), and the Food for Progress Act of 1985
(7 U.S.C. 1736o) should not be less than $125,000,000. Such assistance--
(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).

e44c37b4675fa830b4f737eb503e43df42bd876212d8ab160b41010ed562ccca

(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 debt burden of East European
countries which have taken substantive steps toward political democracy
and economic pluralism.
(b) AUTHORITY FOR DISCOUNTED SALES OF DEBT- Notwithstanding any other
provision of law, the President may undertake the discounted sale, to
private purchasers, of United States Government debt obligations of an
East European country which has taken substantive steps toward political
democracy and economic pluralism, 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 exchanged by the new holder
of the obligation for--
(1) local currencies, policy commitments, or other assets needed for
development or other economic activities, or
(2) for an equity interest in an enterprise theretofore owned by the
particular East European government.

1959aee88be7012b945cbde7e207beaf500bc771a2bd3ccc6cf4d36f90507b24

(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 development in
Poland and Hungary,
through loans, grants, equity investments, feasibility studies, technical
assistance, training, insurance, guarantees, and other measures.
(b) AUTHORIZATION OF APPROPRIATIONS- To carry out the purposes specified
in subsection (a), there are authorized to be appropriated to the President--
(1) $240,000,000 to support the Polish-American Enterprise Fund; and
(2) $60,000,000 to support the Hungarian-American Enterprise Fund.
Such amounts are authorized to be made available until expended.
(c) NONAPPLICABILITY OF OTHER LAWS- The funds appropriated under subsection
(b) 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 specified in subsection (a). For purposes of this Act,
the organizations so designated shall be referred to as the Polish-American
Enterprise Fund and the Hungarian-American Enterprise Fund (hereinafter
in this section referred to as the `Enterprise Funds').
(2) CONSULTATION WITH CONGRESS- The President shall consult 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) ELIGIBILITY 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.
(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.
(e) GRANTS TO ENTERPRISE FUNDS- Funds appropriated to the President pursuant
to subsection (b) shall be granted to the Enterprise Funds by the Agency
for International Development to enable the Enterprise Funds to carry
out the purposes specified in subsection (a) and for the administrative
expenses of each Enterprise Fund.
(f) ELIGIBLE PROGRAMS AND PROJECTS-
(1) IN GENERAL- The Enterprise Funds may provide assistance 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 establishment of Employee Stock Ownership Plans
(ESOPs) in Poland and Hungary.
(3) INDIGENOUS CREDIT UNIONS- Funds available to the Enterprise 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
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 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 technology, which are crucial in establishing the
conditions for successful transition to political democracy and economic
pluralism.
(5) ECONOMIC FOUNDATION OF NSZZ SOLIDARNOSC- Funds available to the
Polish-American Enterprise Fund may be used to support the Economic
Foundation of NSZZ Solidarnosc.
(g) MATTERS TO BE CONSIDERED BY ENTERPRISE FUNDS- In carrying out this
section, each Enterprise Fund shall take into account such considerations
as internationally recognized worker rights and other internationally
recognized human rights, environmental factors, United States economic
and employment effects, and the likelihood 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 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 placements 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 investment 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 amounts
as the Board of Directors of the Enterprise Fund may 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) NONAPPLICABILITY OF OTHER LAWS- Executive branch agencies may conduct
programs and activities and provide services in support of the activities
of the Enterprise Funds notwithstanding any other provision of law.
(l) 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 Enterprise Fund shall
be audited annually in accordance with generally accepted auditing standards
by independent certified public accountants 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 be included in the annual report required by
this section.
(n) GAO AUDITS- The financial transactions undertaken pursuant 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 prescribed 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 disclose 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 supplied by other sources; and
(C) such other records as will facilitate an effective audit; and
(2) that the Enterprise Funds, or any of their duly authorized
representatives, have access for the purpose of audit and examination 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.

3e0eee2af2e6a81fee9b2b25cc7fb92345464ce8015ae86d2806971310fc2a13

(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 OF TECHNICAL ASSISTANCE AUTHORIZED- In carrying out subsection
(a), the Secretary is authorized to provide technical assistance regarding
policies and programs for training and retraining, job search and employment
services, unemployment insurance, occupational safety and health protection,
labor-management relations, labor statistics, analysis of productivity
constraints, entrepreneurial support for small businesses, market-driven
systems of wage and income determinations, job creation, employment
security, 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 organizations.
(c) ADMINISTRATIVE AUTHORITIES- In carrying out subsection (a), the
Secretary is authorized to do the following:
(1) Solicit and accept in the name of the Department of Labor, and employ
or dispose of in furtherance of the purposes of this section, any money
or property, real, personal, or mixed, tangible or intangible, received by
gift, devise, bequest, or otherwise. 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 transfer,
donation, or other disposal in accordance with the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 471 and following).
(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.
(3) Enter into arrangements or agreements with appropriate departments,
agencies, and establishments of Poland and Hungary.
(4) Enter into arrangements or agreements with appropriate private and
public sector United States parties, and international 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 subject to the Federal Advisory
Committee Act (5 U.S.C. App.).
(f) DELEGATION OF RESPONSIBILITIES- The Secretary shall delegate the
authority to carry out the programs authorized by this section to the head
of the Bureau of International Labor Affairs of the Department 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.

36e1081aab3311002e3d6d8b4cc0f8cac540292104497254be3029a27cdffcb7

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 Enterprise 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 Council of Credit Unions; and
(6) other United States, Polish, and Hungarian private and voluntary
organizations and private sector entities.
(c) NONAPPLICABILITY 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 implementing 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-to-Farmer Program
under section 406(a) (1) and (2) of the Agricultural 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,
subsequent provision of law.

96368d5931061a46e56d70e402cc73c83a0d57bd30ab58c8ba3f8d0e2ab51875

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 Volunteer Program to
the extent practicable.

1b3f35abfb5f14f1640c4881a147b04224344926a04fa1162e9535033994ca2f

(a) ADDITIONAL ASSISTANCE FOR POLAND- A portion of the agricultural
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 established pursuant to
section 2226 of the American Aid to Poland Act of 1988 (7 U.S.C. 1431 note),
notwithstanding section 416(b)(7) of the Agricultural Act of 1949 (7
U.S.C. 1431(b)(7)) or any other provision of law.
(b) EMPHASIS ON AGRICULTURAL DEVELOPMENT- The uses of local currencies
generated under this section should emphasize the development of
agricultural infrastructure, agriculture-related training, and other
aspects of agricultural development in Poland.
(c) COMMODITIES SUBJECT TO REQUIREMENTS- Subsection (a) applies with respect
to agricultural commodities made available for Poland for fiscal years
1990, 1991, and 1992 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 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.

87a9c5c0fd202c4226ebcf9e838b3c52e0e7462eb4d51a6fdac841a70598228c

HUNGARIAN CREDIT UNIONS.
(a) IN GENERAL- In order to facilitate the development of indigenous 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
(2) federally insured depository institutions may provide technical
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 redesignating paragraph
(16) as paragraph (17) and by inserting after paragraph (15) the following
new paragraph:
`(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, nonprofit, 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 democratically operate
the institution; and
(2) the term `federally insured depository institution' means--
(A) any insured depository institution (as defined in section 3(c)(2)
of the Federal Deposit Insurance Act); and
(B) any insured credit union (as defined in section 101(7) of the Federal
Credit Union Act).

96efcf80780b7e35c824a18a9c28fb30c438589ca299498f28875ead70feda58

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.

80c5a95cf74c081039dfe4abc47a0593ffed97365ddaadcb9d036644e6e4abd1

HUNGARY.
(a) ELIGIBILITY OF POLAND AND HUNGARY FOR OPIC 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 with its mandate
to foster private initiative and competition and enhance the ability of
private enterprise to make its full contribution 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 DUPLICATIVE AMENDMENTS- If the Foreign Operations, Export
Financing, and Related Programs Appropriations 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.

25fdfd22951d4a55cbd777bfaf597f7c7a4071b95504d9e349f0ec7ba251837b

(a) AUTHORITY TO EXTEND CREDIT TO POLAND AND HUNGARY- Notwithstanding section
2(b)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(2)), 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 Republic 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.

0c7929e042000fef6f4cb9109b3312bd4d595f42d9e9b0680e74cfa97973f040

(a) ESTABLISHMENT 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:
`SEC. 225. TRADE CREDIT INSURANCE PROGRAM FOR POLAND.
`(a) GENERAL AUTHORITY-
`(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(b)(1)(B)
of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(B)) that the
Bank have reasonable assurance of repayment.
`(2) LIABILITIES WHICH MAY BE GUARANTEED- The liabilities that may be
guaranteed under paragraph (1) are liabilities incurred by the Bank in
connection with guarantees or insurance provided under the Export-Import
Bank Act of 1945 for financing for transactions involving the export of
goods and 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 insurance extended
by the Bank and guaranteed pursuant to subsection (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 determines are necessary may be made available to
discharge liabilities under guarantees entered into under subsection (a).
`(2) CREDITING OF SUBSEQUENT PAYMENTS- To the extent that any of the funds
made available pursuant to paragraph (1) are 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 guarantee 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 guaranteed 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 guarantees. 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 subsection (a).
`(k) RESTRICTIONS NOT APPLICABLE- 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.
`(l) EXPIRATION OF AUTHORITY- The President may not enter into any
commitments to guarantee under subsection (a) after September 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.
(c) CONFORMING REFERENCE- With respect to Poland, any reference 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).

f789287fdff943d5a134eb50d51b21b5011cb688f9a835bc815d35fb1ab460d7

In order to permit expansion of the Trade and Development 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.

c5f27a9c5185122e843a93d034d8f283cf5ac8034b044c01d523da19d296a71e

The Congress 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.

cc89fba819a4a87d39de62c4bf8052e0fb61505773242eea59504c1f298f3c68

RELATING TO BELOW-MARKET LOANS.
(a) IN GENERAL- Paragraph (5) of section 1812(b) of the Tax Reform Act of
1986 is amended--
(1) by inserting `or Poland' after `Israel' in the text thereof, and
(2) by inserting `OR POLISH' after `ISRAEL' in the heading thereof.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.

28dcba51f68cb3418464af6beee3ddc4c7d4107f6739c85bbed306c5aca94003

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 cultural 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 Program,
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 Committee, and Youth for Understanding, and research
exchanges sponsored by the International Research and Exchanges Board (IREX).
(2) EMPHASIS ON SKILLS IN BUSINESS AND ECONOMICS- The 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 are necessary for the development of a free market
economy in Poland and Hungary.
(b) 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 consider the
establishment of reciprocal cultural centers in Poland and the United States
and in Hungary and the United States to facilitate government-funded and
privately-funded cultural exchanges.
(d) SISTER INSTITUTIONS PROGRAMS- The President shall act to encourage
the establishment of `sister institution' programs between 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 agricultural 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.

149759a42c765b14f3ed03201edae4b5be7d5b3debe3ff4493a1522421e706a4

(a) ESTABLISHMENT OF SCHOLARSHIP PROGRAM- The Administrator of the Agency
for International Development is authorized to establish and administer a
program of scholarship assistance, in cooperation with State governments,
universities, community colleges, and businesses, to provide scholarships
to enable students from Poland and Hungary to study in the United States.
(b) EMPHASIS ON BUSINESS AND ECONOMICS- The scholarship program 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 Administrator may
make grants to States to provide scholarship assistance for undergraduate
or graduate degree programs, and training programs 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, 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 participating 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 APPLICABLE- Prohibitions on the use of foreign
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 Commonwealth of
Puerto Rico, Guam, American Samoa, the Virgin Islands, the Trust Territory
of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands.

bd530d02f562a70ccd3bd63cd972f634f8656b4b95ebc5a291f5986e3deae9bf

(a) AGREEMENT WITH POLAND- There are authorized to be appropriated 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 technology 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 `1989 United States-Hungarian science and technology 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 and
Technology Cooperation', together with annexes relating thereto.

928c49415dbba4a89def1a11a1e0d593db382ba071904fdbe835a0e59df944d3

HUNGARY.
(a) AUTHORIZATION OF ASSISTANCE- In addition to amounts otherwise available
for such purposes, there are authorized to be appropriated 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) NONAPPLICABILITY OF OTHER LAWS- Assistance may be provided under this
section notwithstanding any other provision of law.

606554f9b28e016b9921b371b1eee164f2f8da6cf058d987e70bc53a5d4dd91f

(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
(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 alternative investments in energy
efficiency, particularly with regard to projects along the Danube River.

e2e0d8801fb7d008c78088e1db8a5f77e6ef833455bb6cd2a2893dcc32065147

POLAND.
(a) AUTHORIZATION OF ASSISTANCE- In addition to amounts otherwise available
for such purposes, there are authorized to be appropriated 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.
(b) NONAPPLICABILITY OF OTHER LAWS- Assistance may be provided under this
section notwithstanding any other provision of law, other than--
(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 relates to abortion.

0a110764112654e99d1a167d324d1cb2f1044821c0c6d6edacf70f78bd15a52d

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.

12bb24e1ccc323fe4a1f37c4cbe92da6260958e4104964f65e022b01a7eff9bd

(a) ESTABLISHMENT- The President shall establish a SEED Information Center
System, using existing Executive branch agencies 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, and
(B) voluntary assistance to countries in Eastern Europe.
(2) PRIVATE ENTERPRISE DEVELOPMENT- The SEED Information 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-American Enterprise Fund, and
(B) other sources of finance for the development of private 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.

53decc86afb618a5454584509bac0e2248acc00a07804feb1e73489227e506a3

(a) ENCOURAGING PRIVATE CONTRIBUTIONS- It is the sense of the Congress that
the President should take all possible steps to encourage 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 transport nonfinancial private contributions to Poland,
(2) should request additional authorities as needed for the use of those
resources for that purpose; and
(3) should encourage maximum participation by such recognized private and
voluntary organizations as the Polish-American Congress in the transportation
of nonfinancial private contributions to Poland.

742c6284d5901804ee65ed69a622ff8b9b40dc06730d18a9dc4878306e6a472a

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 assigned
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.

8e33125dc1b75a81540f01d0a48577bb7d8fdc329345511e976cc7bb3f5f1ad5

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 Government 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) specifying how much agricultural assistance the President proposes be
provided by the United States to meet those requirements.
(b) UPDATING ASSESSMENTS- As additional information becomes available, the
President shall provide to the Congress revised assessments of Poland's
requirements for agricultural assistance during fiscal years 1991 and
1992, specifying how much agricultural assistance the President proposes
be provided by the United States to meet those requirements.

bff45d423327526a71a5ba3894a3c613982d444bab52f2f8d54829f53b192004

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 agreements, 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.

d7ad51be635d40c04727ef7214aa09f43a9b04c04f11acbcef1e2437d377a276

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.

d80a951fd87fc93288cc8905a2812c2d2df8cd082366bd8761b8f7e5f0fd0b5f

(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 commitment, 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 early date
is integral to United States leadership of this effort.
(b) 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.
(c) ANNUAL SEED PROGRAM 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 Program)'. Each such report shall describe the assistance provided
to each East European country under this Act during the preceding fiscal
year. In addition, each such report shall contain an assessment of the
progress made by each such recipient country in--
(1) implementing economic policies designed to promote sustained economic
growth, develop economic freedom, and increase opportunities for the people
of that country; and
(2) adopting and implementing constitutional, 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.

5e97d3b5234e435960413e00686dc3e430b29d6124099ef53f503cc890ab9402

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.

e5b97c59344036960de9227af86d69b5a918b6cc78ab4cb87be82db176f19456

Section 634A of the Foreign Assistance Act of 1961 (22 U.S.C. 2394-1;
relating to reprogramming notifications) applies with respect to obligations
of funds made available under that Act to carry out this Act, notwithstanding
any other provision of this Act.

8a6f67d921a39bbfba3ba8025674c72adc1070f0691f5e9388fb45b2acc6a9f9

The President should suspend all assistance to an East European country
pursuant to this Act if the President determines, and reports to the
Congress, that--
(1) that country is engaged in international activities that directly
threaten 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 reasons 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.

4373424839b29f66670c8b0f189747f60d8440fbcce874fe5a6ace5a37b81d12

(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;
(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 martyred 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 generation of Americans of the
sacrifices people are willing to undertake 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, independent, and prosperous
Hungary have gained the sympathy 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 between the
people of Hungary and the people of the United States and between their
respective governments.

1577d0c58d112d0c93c6befd9f590938ffbb1a9d402910f56589c67434ab96ad

For the purpose of paying administrative expenses incurred in connection with
carrying 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.

6a2b07ab8cb9ce7b530e31dbef563d947a85204d1aba4a0df4a3dd19fedbd668

APPROPRIATIONS ACT.
Any provision of the annual Foreign Operations, Export Financing, 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 requirement of this Act.

0f7aac8de8530fbd429ee489c5f21073e99796b98b6832d4fe7a9e12bef12027

(a) AUTHORITY TO USE- During fiscal year 1990, the Administrator 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 currencies may be
used under this section--
(1) for the same purposes for which assistance may be provided 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 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) NONAPPLICABILITY OF OTHER PROVISIONS OF LAW- Foreign currencies may
be used under this section notwithstanding section 1306 of title 31,
United States Code, or any other provision of law.
(f) REQUIREMENT FOR 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.
Resolved, That the House agree to the amendment of the Senate to the title
of the aforesaid bill.
Attest:
Clerk.

f93a1c4ec0401f8c572ce630b5615abbd66a437d42541093a6b3df81b0b466c6

Support for East European Democracy (SEED) Act of 1989

Other Sections