§ 5401. Support for East European Democracy (SEED) Program

• (a) 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) The President should ensure that the assistance provided to East European countries pursuant to this chapter is designed—
  • (1) to contribute to the development of democratic institutions and political pluralism characterized by—
    • (A) the establishment of fully democratic and representative political systems based on free and fair elections,
    • (B) effective recognition of fundamental liberties and individual freedoms, including freedom of speech, religion, and association,
    • (C) termination of all laws and regulations which impede the operation of a free press and the formation of political parties,
    • (D) creation of an independent judiciary, and
    • (E) establishment of non-partisan military, security, and police forces;
  • (2) to promote the development of a free market economic system characterized by—
    • (A) privatization of economic entities,
    • (B) establishment of full rights to acquire and hold private property, including land and the benefits of contractual relations,
    • (C) simplification of regulatory controls regarding the establishment and operation of businesses,
    • (D) dismantlement of all wage and price controls,
    • (E) removal of trade restrictions, including on both imports and exports,
    • (F) liberalization of investment and capital, including the repatriation of profits by foreign investors;
    • (G) tax policies which provide incentives for economic activity and investment,
    • (H) establishment of rights to own and operate private banks and other financial service firms, as well as unrestricted access to private sources of credit, and
    • (I) access to a market for stocks, bonds, and other instruments through which individuals may invest in the private sector; and
  • (3) not to contribute any substantial benefit—
    • (A) to Communist or other political parties or organizations which are not committed to respect for the democratic process, or
    • (B) to the defense or security forces of any member country of the Warsaw Pact.
• (c) Assistance and other activities under the SEED Program (which may be referred to as “SEED Actions”) shall include activities such as the following:
  • (1) 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) 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) 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) 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) 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) Technical assistance programs directed at promoting labor market reforms and facilitating economic adjustment.
  • (7) Programs to provide technical skills to assist in the development of a market economy.
  • (8) Establishment of Peace Corps programs.
  • (9) Support for the establishment of indigenous credit unions.
  • (10) Eligibility for trade benefits under the Generalized System of Preferences.
  • (11) The granting of temporary or permanent nondiscriminatory treatment to the products of an East European country through the application of the criteria and procedures established by section 2432 of title 19 (commonly referred to as the “Jackson-Vanik amendment”).
  • (12) Programs of the United States International Development Finance Corporation.
  • (13) Programs of the Export-Import Bank of the United States.
  • (14) Trade and Development Agency activities under the Foreign Assistance Act of 1961 [ 22 U.S.C. 2151 et seq.].
  • (15) Negotiation of bilateral investment treaties.
  • (16) Exempting bonds from Internal Revenue Code [title 26] rules relating to below-market loans.
  • (17) Expanded exchange activities under the Fulbright, International Visitors, and other programs conducted by the United States Information Agency.
  • (18) Contributions toward the establishment of reciprocal cultural centers that can facilitate educational and cultural exchange and expanded understanding of Western social democracy.
  • (19) 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 to enable students to study in the United States.
  • (21) Grants for the implementation of bilateral agreements providing for cooperation in science and technology exchange.
  • (22) Assistance designed to support the development of legal, legislative, electoral, journalistic, and other institutions of free, pluralist societies.
  • (23) Environmental assistance directed at overcoming crucial deficiencies in air and water quality and other determinants of a healthful society.
  • (24) Medical assistance specifically targeted to overcome severe deficiencies in pharmaceuticals and other basic health supplies.
  • (25) 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.

§ 5402. Scope of authority

• (a) The President is authorized to conduct activities for any East European country that are similar to any activity authorized by this chapter to be conducted in Poland or Hungary (excluding those authorized by section 5412 of this title or the amendments made by sections 301 and 304) if such similar activities would effectively promote a transition to market-oriented democracy.
• (b) In order to strengthen the administration of justice in East European countries, the President may exercise the same authorities with respect to those countries as are available under section 2346c of this title , subject to the limitations and requirements of that section, other than subsection (c) and the last two sentences of subsection (e).
• (c) For purposes of this chapter, the term “East European country” includes Albania, Bulgaria, the Czech and Slovak Federal Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and states that were part of the former Socialist Federal Republic of Yugoslavia.

§ 5411. Multilateral support for structural adjustment in Poland and Hungary

• (a)
  • (1) 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) 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) 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) 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 and in accordance with established Department of the Treasury policies and procedures; and
    • (B) the authority provided in section 5412(c) of this title .
  • (2) 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) The United States Government shall provide agricultural assistance for Poland in accordance with section 5413 of this title .

§ 5412. Stabilization assistance for Poland

• (a) 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 5411(b) of this title —
  • (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 5411(b) of this title .
• (b) In furtherance of section 5411(b)(1) of this title , 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)
  • (1) In order to carry out paragraph (1) of section 5411(b) of this title , 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) 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.

§ 5413. Agricultural assistance

• (a)
  • (1) 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) 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) 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) Pursuant to section 5411(b)(3) of this title , 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) In carrying out subsection (b) of this section, the level of assistance for Poland for fiscal year 1990 under section 1431(b) of title 7 , the Food for Peace Act ( 7 U.S.C. 1691 and following), and section 1736 o of title 7 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) 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).

§ 5414. Debt-for-equity swaps and other special techniques

• (a) 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) 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) 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.

§ 5421. Enterprise Funds for Poland and Hungary

• (a) 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,
• (b) 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.
• (c) 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)
  • (1) 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 chapter, 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) The President shall consult with the leadership of each House of Congress before designating an organization pursuant to paragraph (1).
  • (3)
    • (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.: 1 1 So in original. Provided , That, as to Enterprise Funds established with respect to more than one host country, such Enterprise Fund may, in lieu of the appointment of citizens of the host countries to its Board of Directors, establish an advisory council for the host region comprised of citizens of each of the host countries or establish separate advisory councils for each of the host countries (hereinafter in this section referred to as the “Advisory Councils”), with which the Enterprise Fund’s policies and proposed activities and such host country citizens shall satisfy the experience and expertise requirements of this clause.
    • (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) 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) 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.
• (e) Funds appropriated to the President pursuant to subsection (b) shall be granted to the Enterprise Funds to carry out the purposes specified in subsection (a) and for the administrative expenses of each Enterprise Fund—
  • (1) except as provided in paragraph (2), by the United States Agency for International Development; or
  • (2) if the Enterprise Funds are transferred to the United States International Development Finance Corporation pursuant to section 9683(b) of this title , by the Corporation.
• (f)
  • (1) 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) Funds available to the Enterprise Funds may be used to encourage the establishment of Employee Stock Ownership Plans (ESOPs) in Poland and Hungary.
  • (3) 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) 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) Funds available to the Polish-American Enterprise Fund may be used to support the Economic Foundation of NSZZ Solidarność.
• (g) 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) 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) 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) 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) 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)
  • (1) No part of the funds of an 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 subject to paragraph (2).
  • (2) An Enterprise Fund shall not pay compensation for services to—
    • (A) any board member of the Enterprise Fund, except for services as a board member; or
    • (B) any firm, association, or entity in which a board member of the Enterprise Fund serves as partner, director, officer, or employee.
  • (3) Nothing in paragraph (2) shall preclude payment for services performed before the date of enactment of this subsection nor for arrangements approved by the grantor and notified in writing to the Committees on Appropriations.
• (m) 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) The financial transactions undertaken pursuant to this section by each Enterprise Fund may be audited by the Government Accountability 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) 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) 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.

§ 5422. Labor market transition in Poland and Hungary

• (a) 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) 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) 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 chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41.
  • (2) Solicit and accept voluntary and uncompensated services notwithstanding section 1342 of title 31 . 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, and
    • (B) subchapter I of chapter 81 of title 5, 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) 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) 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) 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) 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.

§ 5423. Technical training for private sector development in Poland and Hungary

• (a) 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) 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 1736(a)(1) and (2) of title 7;
  • (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) Assistance provided pursuant to subsection (a) under the authorities of part I of the Foreign Assistance Act of 1961 [ 22 U.S.C. 2151 et seq.] may be provided notwithstanding any other provision of law.
• (d) 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) Any activities carried out pursuant to this chapter through the Farmer-to-Farmer Program under section 1736(a)(1) and (2) of title 7 shall be funded with funds authorized to be appropriated by this chapter and local currencies made available under section 5425 of this title , 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.

§ 5424. Peace Corps programs in Poland and Hungary

There are authorized to be appropriated to carry out programs in Poland and Hungary under the Peace Corps Act [ 22 U.S.C. 2501 et seq.], $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 5423(a) of this title to the people of Poland and Hungary, using the Associate Volunteer Program to the extent practicable.

§ 5425. Use of Polish currency generated by agricultural assistance

• (a) 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 5413(b), 5421, and 5423 of this title, 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),
• (b) 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) Subsection (a) applies with respect to agricultural commodities made available for Poland for fiscal years 1990, 1991, and 1992 under section 1431(b) of title 7 , the Food for Peace Act ( 7 U.S.C. 1691 and following), and section 1736 o of title 7.
• (d) The uses of agricultural commodities and local currencies specified in subsection (a) are in addition to other uses authorized by law.

§ 5426. United States policy of private financial support for Polish and Hungarian credit unions

• (a) 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)
• (c) 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 1813(c)(2) of title 12 ); and
    • (B) any insured credit union (as defined in section 1752(7) of title 12 ).

§ 5441. Educational and cultural exchanges and sister institutions programs with Poland and Hungary

• (a)
  • (1) 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) 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) 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) 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) 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) 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.

§ 5442. Poland-Hungary scholarship partnership

• (a) 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) 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) 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) 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) The Federal share for each year for which a State receives payments under this section shall not be more than 50 percent.
• (f) 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) 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) 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) 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) 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) 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.

§ 5443. Science and technology exchange with Poland and Hungary

• (a) 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) 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) 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.

§ 5451. Assistance in support of democratic institutions in Poland and Hungary

• (a) 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) Assistance may be provided under this section notwithstanding any other provision of law.

§ 5452. Environmental initiatives for Poland and Hungary

• (a) 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) 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) 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) 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) 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 1 1 So in original. Probably should not be capitalized. 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)
  • (1) 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) 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) 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) 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) 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.

§ 5453. Medical supplies, hospital equipment, and medical training for Poland

• (a) 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) 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.

§ 5461. Policy coordination of SEED Program

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 chapter and all other activities that the United States Government conducts in furtherance of the purposes of this chapter.

§ 5462. SEED Information Center System

• (a) 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)
  • (1) 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) 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) 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.

§ 5463. Encouraging voluntary assistance for Poland and Hungary

• (a) 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) In further 1 1 So in original. Probably should be “furtherance”. of subsection (a), the President—
  • (1) using all available authorities, including section 402 of title 10 (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 2 So in original. The comma probably should be a semicolon.
  • (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.

§ 5464. Economic and commercial officers at United States embassies and 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.

§ 5471. Report on initial steps taken by United States and on Poland’s requirement for agricultural assistance

• (a) Not later than 60 days after November 28, 1989 , the President shall submit a report to the Congress—
  • (1) describing the steps taken by the United States Government pursuant to subchapter I, in particular sections 1 1 So in original. Probably should be “section”. 5412(a) and (b) of this title;
  • (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) 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.

§ 5472. Report on confidence building measures by Poland and Hungary

Not later than 180 days after November 28, 1989 , 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.

§ 5473. Report on environmental problems in Poland and Hungary

The first report submitted pursuant to section 5474 of this title shall include the following:

• (1) 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) 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) 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.

§ 5474. Annual SEED Program report

• (a) 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 chapter 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 chapter 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) Accordingly, the first report pursuant to subsection (c) 1 1 See References in Text note below. shall be a comprehensive report that includes a full description of all SEED Actions taken pursuant to each provision of this chapter since November 28, 1989 .

§ 5476. Notifications to Congress regarding assistance

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 [ 22 U.S.C. 2151 et seq.] to carry out this chapter, notwithstanding any other provision of this chapter.

§ 5491. Suspension of SEED assistance

The President should suspend all assistance to an East European country pursuant to this chapter if the President determines, and reports to the Congress, that—

• (1) that country is engaged in international activities directly and fundamentally contrary to 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.

§ 5492. Declaration of the Republic of Hungary

• (a) 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) 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.

§ 5493. Administrative expenses of Agency for International Development

For the purpose of paying administrative expenses incurred in connection with carrying out its functions under this chapter, the Agency for International Development may use up to $500,000 each fiscal year of the funds made available to the Agency under this chapter.

§ 5494. Relation of provisions of this chapter to certain provisions of appropriations acts

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 otherwise applicable provision of this chapter. This section shall not, however, be construed to apply with respect to section 599C(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (or a corresponding provision of a subsequent such appropriations Act.

§ 5495. Certain uses of excess foreign currencies

• (a) 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) 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) 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) Foreign currencies may be used under this section in the country where such currencies are held or in other foreign countries.
• (e) Foreign currencies may be used under this section notwithstanding section 1306 of title 31 or any other provision of law.
• (f) 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.