§ 5401. — Support for East European Democracy (SEED) Program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC5401]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 63--SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED)
Sec. 5401. Support for East European Democracy (SEED) Program
(a) SEED Program
The United States shall implement, beginning in fiscal year 1990, a
concerted Program of Support for East European Democracy (which may also
be referred to as the ``SEED Program''). The SEED Program shall be
comprised of diverse undertakings designed to provide cost-effective
assistance to those countries of Eastern Europe that have taken
substantive steps toward institutionalizing political democracy and
economic pluralism.
(b) Objectives of SEED assistance
The President should ensure that the assistance provided to East
European countries pursuant to this 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) 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) Normal trade relations
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) 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 Agency activities under the Foreign
Assistance Act of 1961 [22 U.S.C. 2151 et seq.].
(15) Investment treaties
Negotiation of bilateral investment treaties.
(16) Special tax treatment of below-market loans
Exempting bonds from Internal Revenue Code [title 26] 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.
(Pub. L. 101-179, Sec. 2, Nov. 28, 1989, 103 Stat. 1299; Pub. L. 102-
549, title II, Sec. 202(e), Oct. 28, 1992, 106 Stat. 3658; Pub. L. 105-
206, title V, Sec. 5003(b)(6), July 22, 1998, 112 Stat. 790.)
References in Text
This chapter, referred to in subsec. (b), was in the original ``this
Act'', meaning Pub. L. 101-179, Nov. 28, 1989, 103 Stat. 1298, which is
classified principally to this chapter. For complete classification of
this Act to the Code, see Short Title note set out below and Tables.
The Foreign Assistance Act of 1961, referred to in subsec. (c)(14),
is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended, which is
classified principally to chapter 32 (Sec. 2151 et seq.) of this title.
For complete classification of this Act to the Code, see Short Title
note set out under section 2151 of this title and Tables.
Amendments
1998--Subsec. (c)(11). Pub. L. 105-206 in heading substituted
``Normal trade relations'' for ``Most favored nation trade status'' and
in text struck out ``(commonly referred to as `most favored nation
status')'' after ``nondiscriminatory treatment''.
1992--Subsec. (c)(14). Pub. L. 102-549 substituted ``Agency'' for
``Program''.
Short Title
Section 1(a) of Pub. L. 101-179 provided that: ``This Act [enacting
this chapter and section 2185 of this title, amending sections 2184 and
2199 of this title, section 1757 of Title 12, Banks and Banking, and
section 2462 of Title 19, Customs Duties, enacting provisions set out as
notes under sections 2185, 2199, and 2421 of this title, section 635 of
Title 12, and section 7872 of Title 26, Internal Revenue Code, and
amending provisions set out as a note under section 7872 of Title 26]
may be cited as the `Support for East European Democracy (SEED) Act of
1989'.''
Transfer of Functions
United States Information Agency (other than Broadcasting Board of
Governors and International Broadcasting Bureau) abolished and functions
transferred to Secretary of State, see sections 6531 and 6532 of this
title.
Ex. Ord. No. 12703. Support for East European Democracy (SEED) Program
Ex. Ord. No. 12703, Feb. 20, 1990, 55 F.R. 6351, as amended by Ex.
Ord. No. 13118, Sec. 10(2), Mar. 31, 1999, 64 F.R. 16598, provided:
By the authority vested in me as President by the Constitution and
laws of the United States of America, including the Support for East
European Democracy (SEED) Act (P.L. 101-179, hereinafter referred to as
the ``Act'') [22 U.S.C. 5401 et seq.] and section 301 of Title 3 of the
United States Code, it is hereby ordered as follows:
Section 1. SEED Program Coordinator. The functions conferred by
Title VII of the Act [22 U.S.C. 5471 et seq.] relating to reports to the
Congress are hereby delegated to the Coordinator of the SEED Program.
The Coordinator is authorized to assign responsibility for particular
aspects of the reports to appropriate agencies.
Sec. 2. Department of State. The functions conferred upon the
President by section 201 of the Act [22 U.S.C. 5421] relating to
Enterprise Funds for Poland and Hungary are hereby delegated to the
Secretary of State.
Sec. 3. Department of Commerce. The functions conferred upon the
President by section 602 of the Act [22 U.S.C. 5462] regarding the
establishment of a SEED Information Center System in cooperation with
the Governments of Poland and Hungary are hereby delegated to the
Secretary of Commerce. This authority is to be exercised in consultation
with the SEED Program Coordinator and in consultation with other
agencies as appropriate.
Sec. 4. Department of the Treasury. The functions conferred upon the
President by section 104 of the Act [22 U.S.C. 5414] regarding debt
reduction of certain East European countries are hereby delegated to the
Secretary of the Treasury. The Secretary shall consult, as appropriate,
with other relevant agencies in exercising the functions herein
delegated.
George Bush.
