VETO OF H.R. 4868
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP87B00858R000600890004-9
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K
Document Page Count:
36
Document Creation Date:
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Document Release Date:
April 25, 2011
Sequence Number:
4
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Publication Date:
September 29, 1986
Content Type:
MISC
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VETO OF H.R. 4868
MESSAGE
THE PRESIDENT OF THE UNITED STATES
HIS VETO OF H.R. 4868, A BILL TO PROHIBIT LOANS TO, OTHER
INVESTMENTS IN, AND CERTAIN OTHER ACTIVITIES WITH RE-
SPECT TO, SOUTH AFRICA, AND FOR OTHER PURPOSES
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To the House of Representatives:
I am returning herewith without my approval H.R. 4868, the
Comprehensive Anti-Apartheid Act of 1986. Title III of this bill
would seriously impede the prospects for a peaceful end to apart-
heid and the establishment of a free and open society for all in
South Africa.
This Administration has no quarel with the declared purpose of
this measure. Indeed, we share that purpose: To send a clear signal
to the South African Government that the American people view
with abhorrence its codified system of racial segregation. Apartheid
is an affront to human rights and human dignity. Normal and
friendly relations cannot exist between the United States and
South Africa until it becomes a dead policy. Americans are of one
mind and one heart on this issue.
But while we vigorously support the purpose of this legislation,
declaring economic warfare against the people of South Africa
would be destructive not only of their efforts to peacefully end
apartheid, but also of the opportunity to replace it with a free soci-
ety.
The sweeping and punitive sanctions adopted by the Congress
are targeted directly at the labor intensive industries upon which
the victimized peoples of South Africa depend for their very surviv-
al. Black workers-the first victims of apartheid-would become
the first victims of American sanctions.
Banning the import of sugar, for example, would threaten the
livelihood of 23,000 black farmers. Banning the import of natural
resources is a sanction targeted directly at the mining industries of
South Africa, upon which more than half a million black laborers
depend for their livelihood.
By prohibiting the importation of food and agricultural products,
the measure would invite retaliation by South Africa, which since
June has purchased over 160,000 tons of wheat from the United
States. Denying basic foodstuffs to South Africa-much of which go
to feed the black population-will only lead to privation, unrest,
and violence. It will not advance the goals of peaceful change.
Are we truly helping the black people of South Africa-the life-
long victims of apartheid-when we throw them out of work and
leave them and their families jobless and hungry in those segregat-
ed townships? Or are we simply assuming a moral posture at the
expense of the people in whose name we presume to act?
This, then, is the first and foremost reason I cannot support this
legislation. Punitive economic sanctions would contribute directly
and measurably to the misery of people who already have suffered
enough. Using America's power to deepen the economic crisis in
this tortured country is not the way to reconciliation and peace.
Black South Africans recognize that they would pay with their
lives for the deprivation, chaos, and violence that would follow an
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economic collapse. That is why millions of blacks and numerous
black leaders in South Africa are as firm in their opposition to
sanctions as in their abhorrence of apartheid.
The imposition of punitive sanctions would also deliver a devas-
tating blow to the neighboring states in southern Africa that
depend on Pretoria for transportation, energy, markets, and food.
An estimated million-and-a-half foreign workers, legal and illegal,
now live in South Africa. The number of people, women and chil-
dren especially, outside South Africa who are dependent upon the
remittances of these workers for their survival has been estimated
to be over five million. Do we truly wish to be directly responsible
for increased suffering, and perhaps starvation, in southern Africa?
Do we truly wish our action to be the rationale Pretoria invokes
for expelling these workers? Do we truly wish to trigger a cycle of
economic sanctions and counter-sanctions that end up crippling the
economy of South Africa and devastating the economies of the
frontline states? What sense does it make to send aid to those im-
poverished countries with one hand while squeezing their econo-
mies with the other?
Disrupting the South African economy and creating more unem-
ployment will only fuel the tragic cycle of violence and repression
that has gripped that troubled country. Black unemployment in
South Africa in some areas is over 50 percent-and adding to it
will create more anger, more violence, and more competition
among blacks struggling to survive. It will not improve prospects
for negotiations.
Another feature of the bill would require the Administration to
publicly identify within six months any and all nations that have
chosen not to joifi us in observing the U.N. arms embargo against
South Africa, "with a view of terminating United States military
assistance to those countries." But the United States will not
revert to a single-minded policy of isolationism, with its vast and
unforseen effects on our international security relationships, that
would be dictated by the unilateral decisions of our allies. No
single issue, no matter how important, can be allowed to override
in this way all other considerations in our foreign policy. Our mili-
tary relationships must continue to be based upon a comprehensive
assessment of our national defense needs and the security of the
West.
Not only does this legislation contain sweeping punitive sanc-
tions that would injure most the very people we seek to help, the
legislation discards our economic leverage, constricts our diplomat-
ic freedom, and ties the hands of the President of the United States
in dealing with a gathering crisis in a critical subcontinent where
the Soviet Bloc-with its mounting investment of men and arms-
clearly sees historic opportunity. Therefore, I am also vetoing the
bill because it contains provisions that infringe on the President's
constitutional prerogative to articulate the foreign policy of the
United States.
There are, however, several features of the measure that the Ad-
ministration supports. Title II of the bill, for example, mandates af-
firmative measures to eliminate apartheid and provide assistance
to its victims, including support for black participation in business
enterprises as owners, managers, and professionals. It authorizes
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the President to take steps for the purpose of assisting firms to
fight apartheid and extend equal opportunity to blacks in invest-
ment, management, and employment. The bill also contains a
number of other useful and realistic provisions, such as those call-
ing upon the African National Congress (ANC) to reexamine its
Communist ties and mandating a report on the activities of the
Communist Party in South Africa and the extent to which it has
infiltrated South African political organizations. Still other por-
tions of the bill call upon the ANC to condemn the practice of
"necklacing" and terrorism and to state affirmatively that it will
support a free and democratic post-apartheid South Africa. These
provisions, as well as many others in the bill, reflect the agreement
of the Congress and the Administration on important aspects of an
overall anti-apartheid policy.
The Administration has been-and remains-prepared to work
with the Congress to devise measures that manifest the American
people's united opposition to apartheid-without injuring its vic-
tims. We remain ready to work with the Congress in framing meas-
ures that-like the 1962 U.S. embargo of military sales and the
carefully targeted sanctions of my own Executive order of 1985-
keep the United States at arms distance from the South African
regime, while keeping America's beneficent influence at work
bringing about constructive change within that troubled society
and nation.
It remains my hope that the United States can work with its Eu-
ropean allies to fashion a flexible and coordinated policy-consist-
ent with their recent actions-for constructive change inside South
Africa. I believe we should support their measures with similar ex-
ecutive actions of our own, and I will work with the Congress
toward that goal. It remains my hope that, once again, Republicans
and Democrats can come together on the common ground that,
after all, we both share: An unyielding opposition both to the unac-
ceptable doctrine of apartheid as well as the unacceptable alterna-
tive of Marxist tyranny-backed by the firm determination that
the future of South Africa and southern Africa will belong to the
free. To achieve that, we must stay and build, not cut and run.
That Americans should recoil at what their television screens
bring them from South Africa-the violence, the repression, the
terror-speaks well of us as a people. But the historic crisis in
South Africa is not one from which the leading nation of the West
can turn its back and walk away. For the outcome of that crisis
has too great a bearing upon the future of Africa, the future of
NATO, the future of the West.
Throughout the postwar era, we Americans have succeeded when
we left our partisan differences at the water's edge-and perserved;
as we did in the rebuilding of Europe and Japan, as we are doing
today in El Salvador. We have failed when we permitted our exas-
peration and anger and impatience at present conditions to per-
suade us to forfeit the future to the enemies of freedom.
Let us not forget our purpose. It is not to damage or destroy any
economy, but to help the black majority of South Africa and south-
ern Africa enjoy a greater share of the material blessings and
bounties of their labor has helped to produce-as they secure as
well their legitimate political rights. That is why sweeping punitive
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sanctions are the wrong course to follow, and increased American
and Western investment-by firms that are breaking down apart-
heid by providing equal opportunity for the victims of official dis-
crimination-it is the right course to pursue.
Our goal is a democratic system in which the rights of majorities,
minorities, and individuals are protected by a bill of rights and
firm constitutional guarantees.
THE WHITE HOUSE, September 26, 1986.
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Binetpinth (Congress of tht %lnfttd efbtatts of .2mern a
B.gwa and hdd at the City of WashhSton on Tuesday, tho tuwnty-first day of January,
ono thousand nine hundred and eighty+ts
,qn Zct
To prohibit loans to, other investments in, and certain other activities with respect to,
South Africa, and for other purposes
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. This Act may be cited as the "Comprehensive Anti-
Apartheid Act of 1986".
SEC. 2. The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Purpose.
TITLE I-POLICY OF THE UNITED STATES WITH RESPECT TO ENDING
APARTHEID
Sec. 101. Policy toward the Government of South Africa.
Sec. 102. Policy toward the African National Congress, etc.
Sec. 103. Policy toward the victims of apartheid.
Sec. 104. Policy toward other countries in Southern Africa.
Sec. 105. Policy toward "frontline" states.
Sec. 106. Policy toward a negotiated settlement.
Sec. 107. Policy toward international cooperation on measures to end apartheid.
Sec. 108. Policy toward necklacing.
Sec. 109. United States Ambassador to meet with Nelson Mandela.
Sec. 110. Polio' toward the recruitment and training of black South Africans by
United States employers.
TITLE II-MEASURES TO ASSIST VICTIMS OF APARTHEID
Sec. 201. Scholarships for the victims of apartheid.
Sec. 202. Human rights fund.
Sec. 203. Expanding participation in the South African economy.
Sec. 204. Export-Import Bank of the United States.
Sec. 205. Labor practices of the United States Government in South Africa.
Sec. 206. Welfare and protection of the victims of apartheid employed by- the
United States.
Sec. 207. Employment practices of United States nationals in South Africa.
Sec. 208. Code of Conduct.
Sec. 209. Prohibition on assistance.
Sec. 210. Use of the African Emergency Reserve.
Sec. 211. Prohibition on assistance to any person or group engaging in "neck-
Sec. 212. Participation of South Africa in agricultural export credit and promotion
pram.
TITLE III-MEASURES BY THE UNITED STATES TO UNDERMINE
APARTHEID
Sec. 301. Prohibition on the importation of krugerrands.
Sec. 302. Prohibition on the importation of military articles.
Sec. 303. Prohibition on the importation of products from parastatal organizations.
Sec. 304. Prohibition on computer exports to South Africa.
(5)
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Sec. 305. Prohibition on loam to the Government of South Africa.
Sec. 306. Prohibition on air transportation with South Africa.
Sec. 307. Prohibitions on nuclear trade with South Africa.
Sec. 308. Government of South Africa bank accounts.
Sec. 309. Prohibition on importation of uranium and coal from South Africa.
Sec. 310. Prohibition on new investment in South Africa.
Sec. 311. Termination of certain provisions.
Sec. 312. Policy toward violence or terrorism.
Sec. 313. Termination of tax treaty and protocol.
Sec. 314. Prohibition on United States Government procurement from South Africa.
Sec. 315. Prohibition on the promotion of United States tourism in South Africa.
Sec. 316. Prohibition on United States Government assistance to, investment in, or
subsidy for trade with, South Africa.
Sec. 317. Prohibition on sale or export of items on Munition List.
Sec. 318. Munitions list sales, notification.
Sec. 319. Prohibition on importation of South African agricultural products and
food.
Sec. 320. Prohibition on importation of iron and steel.
Sec. 321. Prohibition on exports of crude oil and petroleum products.
Sec. 322. Prohibition on cooperation with the armed forces of South Africa.
Sec. 323. Prohibition on sugar imports.
TITLE N-MULTILATERAL MEASURES TO UNDERMINE APARTHEID
Sec. 401. Negotiating authority.
Sec. 402. Limitation on imports from other countries.
Sec. 403. Private right of action.
TITLE V-FUTURE POLICY TOWARD SOUTH AFRICA
Sec. 501. Additional measures.
Sec. 502. Lifting of prohibitions.
Sec. 503. Study of health conditions in the "homelands" areas of South Africa.
Sec. 504. Reports on South African imports.
Sec. 505. Study and report on the economy of southern Africa.
Sec. 506. Report on relations between other industrialized democracies and South
Africa.
Sec. 507. Study and report on deposit accounts of South African nationals in United
States banks.
Sec. 508. Study and report on the violation of the international embargo on sale
and export of military articles to South Africa.
Sec. 509. Report on Communist activities in South Africa.
Sec. 510. Prohibition on the importation of Soviet gold coins.
Sec. 511. Economic support for disadvantaged South Africans.
Sec. 512. Report on the African National Congress.
TITLE VI-ENFORCEMENT AND ADMINISTRATIVE PROVISIONS
Sec. 601. Regulatory authority.
Sec. 602. Congressional priority procedures.
Sec. 603. Enforcement and penalties.
Sec. 604. Applicability to evasions of Act.
Sec. 605. Construction of Act.
Sec. 606. State or local anti-apartheid laws, enforce.
SEC. 3. As used in this Act-
(1) the term "Code of Conduct" refers to the principles set
forth in section 208(a);
(2) the term "controlled South African entity" means-
(A) a corporation, partnership, or other business associa-
tion or entity organized in South Africa and owned or
controlled, directly or indirectly, by a national of the
United States; or
(B) a branch, office, agency, or sole proprietorship in
South Africa of a national of the United States;
(3) the term "loan"-
(A) means any transfer or extension of funds or credit on
the basis of an obligation to repay, or any assumption or
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guarantee of the obligation of another to repay an exten-
sion of funds or credit, including-
(i) overdrafts,
(ii) currency swaps,
(iii) the purchase of debt or equity securities issued
by the Government of South Africa or a South African
entity on or after the date of enactment of this Act,
(iv) the purchase of a loan made by another person,
(v) the sale of financial assets subject to an agree-
ment to repurchase, and
(vi) a renewal or refinancing whereby funds or cred-
its are transferred or extended to the Government of
South Africa or a South African entity, and
(B) does not include-
(i) normal short-term trade financing, as by letters of
credit or similar trade credits;
(ii) sales on open account in cases where such sales
are normal business practice; or
(iii) rescheduling of existing loans, if no new funds or
credits are thereby extended to a South African entity
or the. Government of South Africa;
(4) the term "new investment"-
(A) means-
(i) a commitment or contribution of funds or other
assets, and
(ii) a loan or other extension of credit, and
(B) does not include-
(i) the reinvestment of profits generated by a con-
trolled South African entity into that same controlled
South African entity or the investment of such profits
in a South African entity;
(ii) contributions of money or other assets where such
contributions are necessary to enable a controlled
South African entity to operate in an economically
sound manner, without expanding its operations; or
(iii) the ownership or control of a share or interest in
a South African entity or a controlled South African
entity or a debt or equity security issued by the Govern-
ment of South Africa or a South African entity before
the date of enactment of this Act, or the transfer or
acquisition of such a share, interest, or debt or equity
security, if any such transfer or acquisition does not
result in a payment, contribution of funds or assets, or
credit to a South African entity, a controlled South
African entity, or the Government of South Africa;
(5) the term "national of the United States" means-
(A) a natural person who is a citizen of the United States
or who owes permanent allegiance to the United States or
is an alien lawfully admitted for permanent residence in
the United States, as defined by section 101(aX20) of the
Immigration and Nationality Act (8 U.S.C. 1101(aX20)); or
(B) a corporation, partnership, or other business associa-
tion which is organized under the laws of the United States,
any State or territory thereof, or the District of Columbia;
(6) the term "South Africa" includes-
(A) the Republic of South Africa;
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(B) any territory under the Administration, legal or il-
legal, of South Africa; and
(C) the "bantustans" or "homelands", to which South
African blacks are assigned on the basis of ethnic origin,
including the Transkei, Bophuthatswana Ciskei, and
Venda; and
(7) the term "South African entity" means-
(A) a corporation, partnership, or other business associa-
tion or entity organized in South Africa; or
(B) a branch, office, agency, or sole proprietorship in
South Africa of a person that resides or is organized outside
South Africa; and
(8) the term "United States" includes the States of the United
States, the District of Columbia, the Commonwealth of Puerto
Rico, and any territory or possession of the United States.
SEC. 4. The purpose of this Act is to set forth a comprehensive and
complete framework to guide the efforts of the United States in
helping to bring an end to apartheid in South Africa and lead to the
establishment of a nonracial, democratic form of government. This
Act sets out United States policy toward the Government of South
Africa, the victims of apartheid, and the other states in southern
Africa. It also provides the President with additional authority to
work with the other industrial democracies to help end apartheid
and establish democracy in South Africa.
TITLE I-POLICY OF THE UNITED STATES WITH RESPECT
TO ENDING APARTHEID
SEC. 101. (a) United States policy toward the Government of South
Africa shall be designed to bring about reforms in that system of
government that will lead to the establishment of a nonracial
democracy.
(b) The United States will work toward this goal by encouraging
the Government of South Africa to-
(1) repeal the present state of emergency and respect the
principle of equal justice under law for citizens of all races;
(2) release Nelson Mandela, Govan Mbeki, Walter Sisulu,
black trade union leaders, and all political prisoners;
(3) permit the free exercise by South Africans of all races of
the right to form political parties, express political opinions, and
otherwise participate in the political process;
(4) establish a timetable for the elimination of apartheid laws;
(5) negotiate with representatives of all racial groups in South
Africa the future political system in South Africa; and
(6) end military and paramilitary activities aimed at
neighboring states.
(c) The United States will encourage the actions set forth in
subsection (b) through economic, political, and diplomatic measures
as set forth in this Act. The United States will adjust its actions
toward the Government of South Africa to reflect the progress or
lack of progress made by the Government of South Africa in meet-
ing the goal set forth in subsection (a).
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SEC. 102 (a) United States policy toward the African National
Congress, the Pan African Congress, and their affiliates shall be
designed to bring about a suspension of violence that will lead to the
start of negotiations designed to bring about a nonracial and genu-
ine democracy in South Africa.
(b) The United States shall work toward this goal by encouraging
the African National Congress and the Pan African Congress, and
their affiliates, to-
(1) suspend terrorist activities so that negotiations with the
Government of South Africa and other groups representing
black South Africans will be possible;
(2) make known their commitment to a free and democratic
post-apartheid South Africa;
(3) agree to enter into negotiations with the South African
Government and other groups representing black South Afri-
cans for the peaceful solution of the problems of South Africa;
(4) reexamine their ties to the South African Communist
Party.
(c) The United States will encourage the actions set forth in
subsection (b) through political and diplomatic measures. The
United States will adjust its actions toward the Government of
South Africa not only to reflect progress or lack of progress made by
the Government of South Africa in meeting the goal set forth in
subsection 101(a) but also to reflect progress or lack of progress
made by the ANC and other organizations in meeting the goal set
forth in subsection (a) of this section.
SEC. 103. (a) The United States policy toward the victims of
apartheid is to use economic, political, diplomatic, and other effec-
tive means to achieve the removal of the root cause of their victim-
ization, which is the apartheid system. In anticipation of the
removal of the system of apartheid and as a further means of challeng-
ing that system, it is the policy of the United States to assist these
victims of apartheid as individuals and through organizations to
overcome the handicaps imposed on them by the system of apart-
heid and to help prepare them for their rightful roles as full
participants in the political, social, economic, and intellectual life of
their country in the post-apartheid South Africa envisioned by this
Act.
(b) The United States will work toward the purposes of subsection
(a) by-
(1) providing assistance to South African victims of apartheid
without discrimination by race, color, sex, religious belief, or
political orientation, to take advantage of educational
opportunities in South Africa and in the United States to
prepare for leadership positions in a post-apartheid South
Africa;
(2) assisting victims of apartheid;
(3) aiding individuals or groups in South Africa whose goals
are to aid victims of apartheid or foster nonviolent legal or
political challenges to the apartheid laws;
(4) furnishing direct financial assistance to those whose non-
violent activities had led to their arrest or detention by the
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South- African authorities and (B) to the families of those killed
by terrorist acts such as "necklacings";
(5) intervening at the highest political levels in South Africa
to express the strong desire of the United States to see the
development in South Africa of a nonracial democratic society;
(6) supporting the rights of the victims of apartheid through
political, economic, or other sanctions in the event the Govern-
ment of South Africa fails to make progress toward the removal
of the apartheid laws and the establishment of such democracy;
and
(7) supporting the rights of all Africans to be free of terrorist
attacks by setting a time limit after which the United States
will pursue diplomatic and political measures against those
promoting terrorism and against those countries harboring such
groups so as to achieve the objectives of this Act.
SEC. 104. (a) The United States policy toward the other countries
in the Southern African region shall be designed to encourage
democratic forms of government, full respect for human rights, an
end to cross-border terrorism, political independence, and economic
development.
(b) The United States will work toward the purposes of subsection
(a) by-
(1) helping to secure the independence of Namibia and the
establishment of Namibia as a nonracial democracy in accord-
ance with appropriate United Nations Security Council
resolutions;
(2) supporting the removal of all foreign military forces from
the region;
(3) encouraging the nations of the region to settle differences
through peaceful means;
(4) promoting economic development through bilateral and
multilateral economic assistance targeted at increasing
opportunities in the productive sectors of national economies,
with a particular emphasis on increasing opportunities for non-
governmental economic activities;
(5) encouraging, and when necessary, strongly demanding,
that all countries of the region respect the human rights of
their citizens and noncitizens residing in the country, and espe-
cially the release of persons persecuted for their political beliefs
or detained without trial;
(6) encouraging, and when necessary, strongly demanding
that all countries of the region take effective action to end cross-
border terrorism; and
(7) providing appropriate assistance, within the limitations of
American responsibilities at home and in other regions, to assist
regional economic cooperation and the development of
interregional transportation and other capital facilities nec-
essary for economic growth.
POLICY TOWARD "FRONTLINE" STATES
SEC. 105. It is the sense of the Congress that the President should
discuss with the governments of the African "frontline" states the
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effects on them of disruptions in transportation or other economic
links through South Africa and of means of reducing those effects.
SEC. 106. (a)(1) United States policy will seek to promote negotia-
tions among representatives of all citizens of South Africa to deter-
mine a future political system that would permit all citizens to be
full participants in the governance of their country. The United
States recognizes that important and legitimate political parties in
South Africa include several organizations that have been banned
and will work for the unbanning of such organizations in order to
permit legitimate political viewpoints to be represented at such
negotiations. The United States also recognizes that some of the
organizations fighting apartheid have become infiltrated by Com-
munists and that Communists serve on the governing boards of such
organizations.
(2) To this end, it is the sense of the Congress that the President,
the Secretary of State, or other appropriate high-level United States
officials should meet with the leaders of opposition organizations of
South Africa, particularly but not limited to those organizations
representing the black majority. Furthermore, the President, in
concert with the major allies of the United States and other in-
terested parties, should seek to bring together opposition political
leaders with leaders of the Government of South Africa for the
purpose of negotiations to achieve a transition to the post-apartheid
democracy envisioned in this Act.
(b) The United States will encourage the Government of South
Africa and all participants to the negotiations to respect the right of
all South Africans to form political parties, express political opin-
ions, and otherwise participate in the political process without fear
of retribution by either governmental or nongovernmental organiza-
tions. It is the sense of the Congress that a suspension of violence is
an essential precondition for the holding of negotiations. The United
States calls upon all parties to the conflict to agree to a suspension
of violence.
(c) The United States will work toward the achievement of
agreement to suspend violence and begin negotiations through coordi-
nated actions with the major Western allies and with the govern-
ments of the countries in the region.
(d) It is the sense of the Congress that the achievement of an
agreement for negotiations could be promoted if the United States
and its major allies, such as Great Britain, Canada, France, Italy,
Japan, and West Germany, would hold a meeting to develop a four-
point plan to discuss with the Government of South Africa a pro-
posal for stages of multilateral assistance to South Africa in return
for the Government of South Africa implementing-
(1) an end to the state of emergency and the release of the
political prisoners, including Nelson Mandela;
(2) the unbanning of the African National Congress, the Pan
African Congress, the Black Consciousness Movement, and all
other groups willing to suspend terrorism and to participate in
negotiations and a democratic process;
(3) a revocation of the Group Areas Act and the Population
Registration Act and the granting of universal citizenship to all
South Africans, including homeland residents; and
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(4) the use of the international offices of a third party as an
intermediary to bring about negotiations with the object of the
establishment of power-sharing with the black majority.
POLICY TOWARD INTERNATIONAL COOPERATION ON MEASURES TO END
APARTHEID
SEC. 107. (a) The Congress finds that.-
(1) international cooperation is a prerequisite to an effective
anti-apartheid policy and to the suspension of terrorism in
South Africa; and
(2) the situation in South Africa constitutes an emergency in
international relations and that action is necessary for the
protection of the essential security interests of the United
States.
(b) Accordingly, the Congress urges the President to seek such
cooperation among all individuals, groups, and nations.
POLICY TOWARD NECKLACING
SEC. 108. It is the sense of the Congress that the African National
Congress should strongly condemn and take effective actions against
the execution by fire, commonly known as "necklacing", of any
person in any country.
UNITED STATES AMBASSADOR TO MEET WITH NELSON MANDELA
SEC. 109. It is the sense of the Senate that the United States
Ambassador should promptly make a formal request to the South
African Government for the United States Ambassador to meet with
Nelson Mandela.
POLICY TOWARD THE RECRUITMENT AND TRAINING OF BLACK SOUTH
AFRICANS BY UNITED STATES EMPLOYERS
SEC. 110. (a) The Congress finds that-
(1) the policy of apartheid is abhorrent and morally
repugnant;
(2) the United States believes strongly in the principles of
democracy and individual freedoms;
(3) the United States, endorses the policy of political participa-
tion of all citizens;
(4) a free, open, and vital economy is a primary means for
achieving social equality and economic advancement for all
citizens; and
(5) the United States is committed to a policy of securing and
enhancing human rights and individual dignity throughout the
world.
(b) It is the sense of the Congress that United States employers
operating in South Africa are obliged both generally to actively
oppose the policy and practices of apartheid and specifically to
engage in recruitment and training of black and colored South
Africans for management responsibilities.
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TITLE II-MEASURES TO ASSIST VICTIMS OF APARTHEID
SCHOLARSHIPS FOR THE VICTIMS OF APARTHEID
SEC. 201. (a) Section 105(b) of the Foreign Assistance Act of 1961 is
amended-
(1) by inserting "(1)" after "(b)"; and
(2) by adding at the end thereof the following new paragraph:
"(2)(A)(i) Of the amounts authorized to be appropriated to carry
out this section for the fiscal years 1987, 1988, and 1989, not less
than $4,000,000 shall be used in each such fiscal year to finance
education, training, and scholarships for the victims of apartheid,
including teachers and other educational professionals, who are
attending universities and colleges in South Africa. Amounts avail-
able to carry out this subparagraph shall be provided in accordance
with the provisions of section 802(c) of the International Security
and Development Cooperation Act of 1985.
"(ii) Funds made available for each such fiscal year for purposes of
chapter 4 of part II of this Act may be used to finance such
education, training, and scholarships in lieu of an equal amount
made available under this subparagraph.
"(B)(i) In addition to amounts used for purposes of subparagraph
(A), the agency primarily responsible for administering this part, in
collaboration with other appropriate departments or agencies of the
United States, shall use assistance provided under this section or
chapter 4 of part II of this Act to finance scholarships for students
pursuing secondary school education in South Africa. The selection
of scholarship recipients shall be by a nationwide panel or by
regional panels appointed by the United States chief of diplomatic
mission to South Africa.
"(ii) Of the amounts authorized to be appropriated to carry out
this section and chapter 4 of part II of this Act for the fiscal years
1987, 1988, and 1989, up to an aggregate of $1,000,000 may be u,.;zd in
each such fiscal year for purposes of this subparagraph.
"(C)(i) In addition to the assistance authorized in subparagraph
(A), the agency primarily responsible for administering this part
shall provide assistance for inservice teacher training programs in
South Africa through such nongovernmental organizations as TOPS
or teachers' unions.
"(ii) Of the amounts authorized to be appropriated to carry out
this section and chapter 4 of part II of this Act, up to an aggregate of
$500,000 for the fiscal year 1987 and up to an aggregate of $1,000,000
for the fiscal year 1988 may be used for purposes of this subpara-
graph, subject to standard procedures for project review and
approval.".
(b) The Foreign Assistance Act of 1961 is amended by inserting
after section 116 the following new section:
"SEC. 117. ASSISTANCE FOR DISADVANTAGED SOUTH AFRICANS.-In
providing assistance under this chapter or under chapter 4 of part II
of this Act for disadvantaged South Africans, priority shall be given
to working with and through South African nongovernmental
organizations whose leadership and staff are selected on a nonracial
basis, and which have the support of the disadvantaged communities
being served. The measure of this community support shall be the
willingness of a substantial number of disadvantaged persons to
participate in activities sponsored by these organizations. Such
organizations to which such assistance may be provided include the
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Educational Opportunities Council, the South African Institute of
Race Relations, READ, professional teachers' unions, the Outreach
Program of the University of the Western Cape, the Funda Center
in Soweto, SACHED, UPP Trust, TOPS, the Wilgespruit Fellowship
Center (WFC), and civic and other organizations working at the
community level which do not receive funds from the Government
of South Africa.".
SEC. 202. (a) Section 116(e)(2)(A) of the Foreign Assistance Act of
1961 is amended-
(1) by striking out "1984 and" and inserting in lieu thereof
"1984,"; and
(2) by inserting after "1985" a comma and the following: "and
$1,500,000 for the fiscal year 1986 and for each fiscal year
thereafter".
(b) Section 116 of such Act is amended by adding at the end
thereof the following new subsection:
"(f)(1) Of the funds made available to carry out subsection (e)(2)(A)
for each fiscal year, not less than $500,000 shall be used for direct
legal and other assistance to political detainees and prisoners and
their families, including the investigation of the killing of protesters
and prisoners, and for support for actions of black-led community
organizations to resist, through nonviolent means, the enforcement
of apartheid policies such as-
"(A) removal of black populations from certain geographic
areas on account of race or ethnic origin,
"(B) denationalization of blacks, including any distinctions
between the South African citizenships of blacks and whites,
"(C) residence restrictions based on race or ethnic origin,
"(D) restrictions on the rights of blacks to seek employment in
South Africa and to live wherever they find employment in
South Africa, and
"(E) restrictions which make it impossible for black em-
ployees and their families to be housed in family accommoda-
tions near their place of employment.
"(2)(A) No grant under this subsection may exceed $100,000.
"(B) The average of all grants under this paragraph made in any
fiscal year shall not exceed $70,000.
"(g) Of the funds made available to carry out subsection (e)(2)(A)
for each fiscal year, $175,000 shall be used for direct assistance to
families of victims of violence such as `necklacing' and other such
inhumane acts. An additional $175,000 shall be made available to.
black groups in South Africa which are actively working toward a
multi-racial solution to the sharing of political power in that coun-
try through nonviolent, constructive means.".
EXPANDING PARTICIPATION IN THE SOUTH AFRICAN ECONOMY
SEC. 203. (a) The Congress declares that-
(1) the denial under the apartheid laws of South Africa of the
rights of South African blacks and other nonwhites to have the
opportunity to participate equitably in the South African econ-
omy as managers or owners of, or professionals in, business
enterprises, and
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(2) the policy of confining South African blacks and other
nonwhites to the status of employees in minority-dominated
businesses,
is an affront to the values of a free society.
(b) The Congress hereby-
(1) applauds the commitment of nationals of the United States
adhering to the Code of Conduct to assure that South African
blacks and other nonwhites are given assistance in gaining their
rightful place in the South African economy; and
(2) urges the United States Government to assist in all appro-
priate ways the realization by South African blacks and other
nonwhites of their rightful place in the South African economy.
(c) Notwithstanding any other provision of law, the Secretary of
State and any other head of a department or agency of the United
States carrying out activities in South Africa shall, to the maximum
extent practicable, in procuring goods or services, make affirmative
efforts to assist business enterprises having more than 50 percent
beneficial ownership by South African blacks or other nonwhite
South Africans.
SEC. 204. Section 2(b)(9) of the Export-Import Bank Act of 1945 is
amended-
(1) by striking out "(9) In" and inserting in lieu thereof "(9)(A)
Except as provided in subparagraph (B), in"; and
(2) by adding at the end thereof the following:
"(B) The Bank shall take active steps to encourage the use of its
facilities to guarantee, insure, extend credit, or participate in the
extension of credit to business enterprises in South Africa that are
majority owned by South African blacks or other nonwhite South
Africans. The certification requirement contained in clause (c) of
subparagraph (A) shall not apply to exports to or purchases from
business enterprises which are majority owned by South African
blacks or other nonwhite South Africans.".
LABOR PRACTICES OF THE UNITED STATES GOVERNMENT IN SOUTH
AFRICA
SEC. 205. (a) It is the sense of the Congress that the labor practices
used by the United States Government-
(1) for the direct hire of South Africans,
(2) for the reimbursement out of official residence funds of
South Africans and employees of South African organizations
for their long-term employment services on behalf of the United
States Government, and
(3) for the employment services of South Africans arranged by
contract,
should represent the best of labor practices in the United States and
should serve as a model for the labor practices of nationals of the
United States in South Africa.
(b) The Secretary of State and any other head of a department or
agency of the United States carrying out activities in South Africa
shall promptly take, without regard to any provision of law, the
necessary steps to ensure that the labor practices applied to the
employment services described in paragraphs (1) through (3) of
subsection ta) are governed by the Code of Conduct. Nothing in this
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section shall be construed to grant any employee of the United
States the right to strike.
WELFARE AND PROTECTION OF VICTIMS OF APARTHEID BY THE UNITED
STATES
SEC. 206. (a) The Secretary of State shall acquire, through lease or
purchase, residential properties in the Republic of South Africa that
shall be made available, at rents that are equitable, to assist victims
of apartheid who are employees of the United States Government in
obtaining adequate housing. Such properties shall be acquired only
in neighborhoods which would be open to occupancy by other
employees of the United States Government in South Africa.
(b) There are authorized to be appropriated $10,000,000 for the
fiscal year 1987 to carry out the -purposes of this section.
EMPLOYMENT PRACTICES OF UNITED STATES NATIONALS IN SOUTH
AFRICA
SEC. 207. (a) Any national of the United States that employs more
than 25 persons in South Africa shall take the necessary steps to
insure that the Code of Conduct is implemented.
(b) No department or agency of the United States may intercede
with any foreign government or foreign national regarding the
export marketing activities in any country of any national of the
United States employing more than 25 persons in South Africa that
is not implementing the Code of Conduct.
SEC. 208. (a) The Code of Conduct referred to in sections 203, 205,
207, and 603 of this Act is as follows:
(1) desegregating the races in each employment facility;
(2) providing equal employment opportunity for all employees
without regard to race or ethnic origin;
(3) assuring that the pay system is applied to all employees
without regard to race or ethnic origin;
(4) establishing a minimum wage and salary structure based
on the appropriate local minimum economic level which takes
into account the needs of employees and their families;
(5) increasing by appropriate means the number of persons in
managerial, supervisory, administrative, clerical, and technical
jobs who are disadvantaged by the apartheid system for the
purpose of significantly increasing their representation in such
jobs;
(6) taking reasonable steps to improve the quality of employ-
ees' lives outside the work environment with respect to housing,
transportation, schooling, recreation, and health; and
(7) implementing fair labor practices by recognizing the right
of all employees, regardless of racial or other distinctions, to
self-organization and to form, join, or assist labor organizations,
freely and without penalty or reprisal, and recognizing the right
to refrain from any such activity.
(b) It is the sense of the Congress that in addition to the principles
enumerated in subsection (a), nationals of the United States subject
to section 207 should seek to comply with the following principle:
taking reasonable measures to extend the scope of influence on
activities outside the workplace, including-
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(1) supporting the unrestricted rights of black businesses to
locate in urban areas;
(2) influencing other companies in South Africa to follow the
standards of equal rights principles;
(3) supporting the freedom of mobility of black workers to
seek employment opportunities wherever they exist, and make
provision for adequate housing for families of employees within
the proximity of workers' employment; and
(4) supporting the rescission of all apartheid laws.
(c) The President may issue additional guidelines and criteria to
assist persons who are or may be subject to section 207 in complying
with the principles set forth in subsection (a) of this section. The
President may, upon request, give an advisory opinion to any person
who is or may be subject to this section as to whether that person is
subject to this section or would be considered to be in compliance
with the principles set forth in subsection (a).
(d) The President may require all nationals of the United States
referred to in section 207 to register with the United States Govern-
ment.
(e) Notwithstanding any other provision of law, the President may
enter into contracts with one or more private organizations or
individuals to assist in implementing this section.
SEC. 209. No assistance may be provided under this Act to any
group which maintains within its ranks any individual who has
been found to engage in gross violations of internationally recog.?
nized human rights (as defined in section 502B(d)(1) of the Foreign
Assistance Act of 1961).
SEC. 210. Whenever the President determines that such action is
necessary or appropriate to meet food shortages in southern Africa,
the President is authorized to utilize the existing, authorized, and
funded reserve entitled the "Emergency Reserve for African Famine
Relief"' to provide food assistance and transportation for that
assistance.
PROHIBITION ON ASSISTANCE TO ANY PERSON OR GROUP ENGAGING IN
"NECKLACING"
SEC. 211. No assistance may be provided under this Act, the
Foreign Assistance Act of 1961, or any other provision of law to any
individual, group, organization, or member thereof, or ' entity that
directly or indirectly engages in, advocates, supports, or approves
the practice of execution by fire, commonly known as "necklacing".
PARTICIPATION OF SOUTH AFRICA IN AGRICULTURAL EXPORT CREDIT
AND PROMOTION PROGRAMS
SEC. 212. Notwithstanding any other provision of this Act or any
other provision of law, the Secretary of Agriculture may permit
South Africa to participate in agricultural export credit and pro-
motion programs conducted by the Secretary at similar levels, and
under similar terms and conditions, as other countries that have
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traditionally purchased United States agricultural commodities and
the products thereof.
TITLE III-MEASURES BY THE UNITED STATES TO
UNDERMINE APARTHEID
SEC. 301. No person, including a bank, may import into the United
States any South African krugerrand or any other gold coin minted
in South Africa or offered for sale by the Government of South
Africa.
PROHIBITION ON THE IMPORTATION OF MILITARY ARTICLES
SEC. 302. No arms, ammunition, or military vehicles produced in
South Africa or any manufacturing data for such articles may be
imported into the United States.
PROHIBITION ON THE IMPORTATION OF PRODUCTS FROM PARASTATAL
ORGANIZATIONS
SEC. 303. (a) Notwithstanding any other provision of law, no
article which is grown, produced, manufactured by, marketed, or
otherwise exported by a parastatal organization of South Africa may
be imported into the United States, (1) except for agricultural
products during the 12-month period from the date of enactment;
and (2) except for those strategic minerals for which the President
has certified to the Congress that the quantities essential for the
economy or defense of the United States are unavailable from
reliable and secure suppliers and except for any article to be im-
ported pursuant to a contract entered into before August 15, 1986:
Provided, That no shipments may be received by a national of the
United States under such contract after April 1, 1987.
(b) For purposes of this section, the term "parastatal organiza-
tion" means a corporation or partnership owned or controlled or
subsidized by the Government of South Africa, but does not mean a
corporation or partnership which previously received start-up assist-
ance from the South African Industrial Development Corporation
but which is now privately owned.
SEC. 304. (a) No computers, computer software, or goods or tech-
nology intended to manufacture or service computers may be
exported to or for use by any of the following entities of the
Government of South Africa:
(1) The military.
(2) The police.
(3) The prison system.
(4) The national security agencies.
(5) ARMSCOR and its subsidiaries or the weapons research
activities of the Council for Scientific and Industrial Research.
(6) The administering authorities for controlling the move-
ments of the victims of apartheid.
(7) Any apartheid enforcing agency.
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(8) Any local, regional, or homelands government entity
which performs any function of any entity described in para-
graphs (1) through (7).
(b)(1) Computers, computer software, and goods or technology
intended to service computers may be exported, directly or in-
directly, to or for use by an entity of the Government of South
Africa other than those set forth in subsection (a) only if a system of
end use verification is in effect to ensure that the computers in-
volved will not be used for any function of any entity set forth in
subsection (a).
(2) The Secretary of Commerce may prescribe such rules and
regulations as may be necessary to carry out this section.
PROHIBITION ON LOANS TO THE GOVERNMENT OF SOUTH AFRICA
SEC. 305. (a) No national of the United States may make or
approve any loan or other extension of credit, directly or indirectly,
to the Government of South Africa or to any corporation, partner-
ship or other organization which is owned or controlled by the
Government of South Africa.
(b) The prohibition contained in subsection (a) shall not apply to-
(1) a loan or extension of credit for any education, housing, or
humanitarian benefit which-
(A) is available to all persons on a nondiscriminatory
basis; or
(B) is available in a geographic area accessible to all
population groups without any legal or administrative
restriction; or
(2) a loan or extension of credit for which an agreement is
entered into before the date of enactment of this Act.
PROHIBITION ON AIR TRANSPORTATION WITH SOUTH AFRICA
SEC. 306. (a)(1) The President shall immediately notify the Govern-
ment of South Africa of his intention to suspend the rights of any air
carrier designated by the Government of South Africa under the
Agreement Between the Government of the United States of Amer-
ica and the Government of the Union of South Africa Relating to
Air Services Between Their Respective Territories, signed May 23,
1947, to service the routes provided in the Agreement.
(2) Ten days after the date of enactment of this Act, the President
shall direct the Secretary of Transportation to revoke the right of
any air carrier designated by the Government of South Africa under
the Agreement to provide service pursuant to the Agreement.
(3) Ten days after the date of enactment of this Ace, the President
shall direct the Secretary of Transportation not to permit or other-
wise designate any United States air carrier to provide service
between the United States and South Africa pursuant to the
Agreement.
(bXl) The Secretary of State shall terminate the Agreement Be-
tween the Government of the United States of America and the
Government of the Union of South Africa Relating to Air Services
Between Their Respective Territories, signed May 23, 1947, in
accordance with the provisions of that agreement.
(2) Upon termination of such agreement, the Secretary of
Transportation shall prohibit any aircraft of a foreign air carrier
owned, directly or indirectly, by the Government of South Africa or
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by South African nationals from engaging in air transportation with
respect to the United States.
(3) The Secretary of Transportation shall prohibit the takeoff and
landing in South Africa of any aircraft by an air carrier owned,
directly or indirectly, or controlled by a national of the United
States or by any corporation or other entity organized under the
laws of the United States or of any State.
(c) The Secretary of Transportation may provide for such excep-
tions from the prohibition contained in subsection (a) or (b) as the
Secretary considers necessary to provide for emergencies in which
the safety of an aircraft or its crew or passengers is threatened.
(d) For purposes of this section, the terms "aircraft", "air
transportation", and "foreign air carrier" have the meanings given
those terms in section 101 of the Federal Aviation Act of 1958 (49
U.S.C. 1301).
PROHIBITIONS ON NUCLEAR TRADE WITH SOUTH AFRICA
SEC. 307. (a) Notwithstanding any other provision of law-
(1) the Nuclear Regulatory Commission shall not issue any
license for the export to South Africa of production or utiliza-
tion facilities, any source or special nuclear material or sen-
sitive nuclear technology, or any component parts, items, or
substances which the Commission has determined, pursuant to
section 109b. of the Atomic Energy Act, to be especially relevant
from the standpoint of export control because of their signifi-
cance for nuclear explosive purposes;
(2) the Secretary of Commerce shall not issue any license for
the export to South Africa of any goods or technology which
have been determined, pursuant to section 309(c) of the Nuclear
Non-Proliferation Act of 1978, to be of significance for nuclear
explosive purposes for use in, or judged by the President to be
likely to be diverted to, a South African production or utiliza-
tion facility;
(3) the Secretary of Energy shall not, under section 57b.(2) of
the Atomic Energy Act, authorize any person to engage, directly
or indirectly, in the production of special nuclear material in
South Africa; and
(4) no goods, technology, source or special nuclear material,
facilities, components, items, or substances referred to in
clauses (1) through (3) shall be approved by the Nuclear Regu-
latory Commission or an executive branch agency for retransfer
to South Africa,
unless the Secretary of State determines and certifies to the Speaker
of the House of Representatives and the chairman of the Committee
on Foreign Relations of the Senate that the Government of South
Africa is a party to the Treaty on the Non-Proliferation of Nuclear
Weapons, done at Washington, London, and Moscow on July 1, 1968,
or otherwise maintains International Atomic Energy Agency safe-
guards on all its peaceful nuclear activities, as defined in the
Nuclear Non-Proliferation Act of 1978.
(b) Nothing in this section shall preclude-
(1) any export, retransfer, or activity generally licensed or
generally authorized by the Nuclear Regulatory Commission
or the Department of Commerce or the Department of Energy; or
(2) assistance for the purpose of developing or applying Inter-
national Atomic Energy Agency or United States bilateral
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safeguards, for International Atomic Energy Agency programs
generally available to its member states, for reducing the use of
highly enriched uranium in research or test reactors, or for
other technical programs for the purpose of reducing prolifera-
tion risks, such as programs to extend the life of reactor fuel
and activities envisaged by section 223 of the Nuclear Waste
Policy Act of 1982 or which are necessary for humanitarian
reasons to protect the public health and safety.
(c) The prohibitions contained in subsection (a) shall not apply
with respect to a particular export, retransfer, or activity, or a group
of exports, retransfers, or activities, if the President determines that
to apply the prohibitions would be seriously prejudicial to the
achievement of United States nonproliferation objectives or would
otherwise jeopardize the common defense and security of the United
States and, if at least 60 days before the initial export, retransfer, or
activity is carried out, the President submits to the Speaker of the
House of Representatives and the chairman of the Committee on
Foreign Relations of the Senate a report setting forth that deter-
mination, together with his reasons therefor.
SEC. 308. (a) A United States depository institution may not
accept, receive, or hold a deposit account from the Government of
South Africa or from any agency or entity owned or controlled by
the Government of South Africa except for such accounts which
may be authorized by the President for diplomatic or consular
purposes. For purposes of the preceding sentence, the term "deposi-
tory institution" has the same meaning as in section 19(bXl) of the
Federal Reserve Act.
(b) The prohibition contained in subsection (a) shall take effect 45
days after the date of enactment of this Act.
PROHIBITION ON IMPORTATION OF URANIUM AND COAL FROM SOUTH
AFRICA
SEC. 309. (a) Notwithstanding any other provision of law, no-
(1) uranium ore,
(2) uranium oxide,
(3) coal, or
(4) textiles,
that is produced or manufactured in South Africa may be imported
into the United States.
(b) This section shall take effect 90 days after the date of enact-
ment of this Act.
SEC. 310. (a) No national of the United States may, directly or
through another person, make any new investment in South Africa.
(b) The prohibition contained in subsection (a) shall take effect 45
days after the date of enactment of this Act.
(c) The prohibition contained in this section shall not apply to a
firm owned by black South Africans.
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SEC. 311. (a) This title and sections 501(c) and 504(b) shall termi-
nate if the Government of South Africa-
(1) releases all persons persecuted for their political beliefs or
detained unduly without trial and Nelson Mandela from prison;
(2) repeals the state of emergency in effect on the date of
enactment of this Act and releases all detainees held under
such state of emergency;
(3) unbans democratic political parties and permits the free
exercise by South Africans of all races of the right to form
political parties, express political opinions, and otherwise
participate in the political process;
(4) repeals the Group Areas Act and the Population Registra-
tion Act and institutes no other measures with the same pur-
poses; and
(5) agrees to enter into good faith negotiations with truly
representative members of the black majority without
preconditions.
(b) The President may suspend or modify any of the measures
required by this title or section 501(c) or section 504(b) thirty days
after he determines, and so reports to the Speaker of the House of
Representatives and the chairman of the Committee on Foreign
Relations of the Senate, that the Government of South Africa has-
(1) taken the action described in paragraph (1) of sub-
section (a),
(2) taken three of the four actions listed in paragraphs (2)
through (5) of subsection (a), and
(3) made substantial progress toward dismantling the system
of apartheid and establishing a nonracial democracy,
unless the Congress enacts within such 30-day period, in accordance
with section 602 of this Act, a joint resolution disapproving the
determination of the President under this subsection.
(c) It is the policy of the United States to support the negotiations
with the representatives of all communities as envisioned in this
Act. If the South African Government agrees to enter into negotia-
tions without preconditions, abandons unprovoked violence against
its opponents, commits itself to a free and democratic post-apartheid
South Africa under a code of law; and if nonetheless the African
National Congress, the Pan African Congress, or their affiliates, or
other organizations, refuse to participate; or if the African National
Congress, the Pan African Congress or other organizations-
(1) refuse to abandon unprovoked violence during such nego-
tiations; and
(2) refuse to commit themselves to a free and democratic post-
apartheid South Africa under a code of law,
then the United States will support negotiations which do not
include these organizations.
SEc. 312. (a) United States policy toward violence in South Africa
shall be designed to bring about an immediate end to such violence
and to promote negotiations concluding with a removal of the
system of apartheid and the establishment of a non-racial democ-
racy in South Africa.
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(b) The United States shall work toward this goal by diplomatic
and other measures designed to isolate those who promote terrorist
attacks on unarmed civilians or those who provide assistance to
individuals or groups promoting such activities.
(c) The Congress declares that the abhorrent practice of
"necklacing" and other equally inhumane acts which have been
practices in South Africa by blacks against fellow blacks are an
affront to all throughout the world who value the rights of individ-
uals to live in an atmosphere free from fear of violent reprisals.
SEC. 313. The Secretary of State shall terminate immediately the
following convention and protocol, in accordance with its terms, the
Convention Between the Government of the United States of Amer-
ica and the Government of the Union of South Africa for the
Avoidance of Double Taxation and for Establishing Rules of Recip-
rocal Administrative Assistance With Respect to Taxes on Income,
done at Pretoria on December 13, 1946, and the protocol relating
thereto.
PROHIBITION ON UNITED STATES GOVERNMENT PROCUREMENT FROM
SOUTH AFRICA
SEC. 314. On or after the 'date of enactment of this Act, no
department, agency or any other entity of the United States Govern-
ment may enter into a contract for the procurement of goods or
services from parastatal organizations except for items necessary for
diplomatic and consular purposes.
PROHIBITION ON THE PROMOTION OF UNITED STATES TOURISM IN SOUTH
AFRICA
SEC. 315. None of the funds appropriated or otherwise made
available'by any provision of law may be available to promote
United States tourism in South Africa.
PROHIBITION ON UNITED STATES GOVERNMENT ASSISTANCE TO,
INVESTMENT IN, OR SUBSIDY FOR TRADE WITH, SOUTH AFRICA
SEC. 316. None of the funds appropriated or otherwise made
available by any provision of law may be available for any assist-
ance to investment in, or any subsidy for trade with, South Africa,
including but not limited to funding for trade missions in South
Africa and for participation in exhibitions and trade fairs in South
Africa.
SEC. 317. (a) Except as provided in subsection (b), no item con-
tained on the United States Munition List which is subject to the
jurisdiction of the United States may be exported to South Africa.
(b) Subsection (a) does not apply to any item which is not covered
by the United Nations Security Council Resolution 418 of Novem-
ber 4, 1977, and which the President determines is exported solely
for commercial purposes and not exported for use by the armed
forces, police, or other security forces of South Africa or for other
military use.
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(c) The President shall prepare and submit to Congress every six
months a report describing any license issued pursuant to subsec-
tion (b).
MUNITIONS LIST SALES, NOTIFICATION
SEC. 318. (a) Notwithstanding any other provision of this Act, the
President shall:
(i) notify the Congress of his intent to allow the export to
South Africa any item which is on the United States Munition
List and which is not covered by the United Nations Security
Council Resolution 418 of November 4, 1977, and
(ii) certify that such item shall be used solely for commercial
purposes and not exported for use by the armed forces, police, or
other security forces of South Africa or for other military use.
(b) The Congress shall have 30 calendar days of continuous session
(computed as provided in section 906(b) of title 5, United States
Code) to disapprove by joint resolution of any such sale.
PROHIBITION ON IMPORTATION OF SOUTH AFRICAN AGRICULTURAL
PRODUCTS AND FOOD
SEC. 319. Notwithstanding any other provision of law, no:
(1) agricultural commodity, product, byproduct of derivitive
thereof,
(2) article that is suitable for human consumption, that is a
product of South Africa may be imported into the customs
territory of the United States after the date of enactment of this
Act.
SEC. 320. Notwithstanding any other provision of law, no iron or
steel produced in South Africa may be imported into the United
States.
SEC. 321. (a) No crude oil or refined petroleum product which is
subject to the jurisdiction of the United States or which is exported
by a person subject to the jurisdiction of the United States may be
exported to South Africa.
(b) Subsection (a) does not apply to any export pursuant to a
contract entered into before the date of enactment of this Act.
PROHIBITION ON COOPERATION WITH THE ARMED FORCES OF SOUTH
AFRICA
SEC. 322. No agency or entity of the United States may engage in
any form of cooperation, direct or indirect, with the armed forces of
the Government of South Africa, except activities which are reason-
ably designed to facilitate the collection of necessary intelligence.
Each such activity shall be considered a significant anticipated
intelligence activity for purposes of section 501 of the National
Security Act of 1947.
SEC. 323. (a)(1) Notwithstanding any other provision of law, no
sugars, sirups, or molasses that are products of the Republic of
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South Africa may be imported into the United States after the date
of enactment of this Act.
(2) The aggregate quantity of sugars, sirups, and molasses that-
(A) are products of the Philippines, and
(B) may be imported into the United States (determined
without regard to this paragraph) under any limitation imposed
by law on the quantity of all sugars, sirups, and molasses that
may be imported into the United States during any period of
time occurring after the date of enactment of this Act,
shall be increased by the aggregate quantity of sugars, sirups, and
molasses that are products of the Republic of South Africa which
may have been imported into the United States under such limita-
tion during such period if this section did not apply to such period.
(b)(1) Paragraph Cc)(i) of headnote 3 of subpart A of part 10 of
schedule 1 of the Tariff Schedules of the United States is amended-
(A) by striking out "13.5" in the item relating to the Phil-
ippines in the table and inserting in lieu thereof "15.8", and
(B) by striking out the item relating to the Republic of South
Africa in the table.
(2) Paragraph (c) of headnote 3 of subpart A of part 10 of schedule
1 of the Tariff Schedules of the United States is amended by adding
at the end thereof the following new subparagraph:
"(iii) Notwithstanding any authority given to the United States
Trade Representative under paragraphs (e) and (g) of this
headnote-
"(A) the percentage allocation made to the Philippines under
this paragraph may not be reduced, and
"(B) no allocation may be made to the Republic of South
Africa,
in allocating any limitation imposed under any paragraph of this
headnote on the quantity of sugars, sirups, and molasses described
in items 155.20 and 155.30 which may be entered.".
TITLE IV-MULTILATERAL MEASURES TO UNDERMINE
APARTHEID
SEC. 401. (a) It is the policy of the United States to seek inter-
national cooperative agreements with the other industrialized
democracies to bring about the complete dismantling of apartheid.
Sanctions imposed under such agreements should be both direct and
official executive or legislative acts of governments. The net eco-
nomic effect of such cooperative should be measurably greater than
the net economic effect of the measures imposed by this Act.
(b)(1) Negotiations to reach international cooperative arrange-
ments with the other industrialized democracies and other trading
partners of South Africa on measures to bring about the complete
dismantling of apartheid should begin promptly and should be
concluded not later than 180 days from the enactment of this Act.
During this period, the President or, at his direction, the Secretary
of State should convene an international conference of the other
industrialized democracies in order to reach cooperative agreements
to impose sanctions against South Africa to bring about the com-
plete dismantling of apartheid.
(2) The President shall, not less than 180 days after the date of
enactment of this Act, submit to the Congress a report containing-
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(A) a description of United States efforts to negotiate multilat-
eral measures to bring about the complete dismantling of apart-
heid; and
(B) a detailed description of economic and other measures
adopted by the other industrialized countries to bring about the
complete dismantling of apartheid, including an assessment of
the stringency with which such measures are enforced by those
countries.
(c) If the President successfully concludes an international agree-
ment described in subsection (b)(1), he may, after such agreement
enters into force with respect to the United States, adjust, modify, or
otherwise amend the - measures imposed under any provision of
sections 301 through 310 to conform with such agreement.
(d) Each agreement submitted to the Congress under this subsec-
tion shall enter into force with respect to the United States if (and
only if)-
(1) the President, not less than 30 days before the day on
which he enters into such agreement, notifies the House of
Representatives and the Senate of his intention to enter into
such an agreement, and promptly thereafter publishes notice of
such intention in the Federal Register;
(2) after entering into the agreement, the President transmits
to the House of Representatives and to the Senate a document
containing a copy of the final legal text of such agreement,
together with-
(A) a description of any administrative action proposed to
implement such agreement and an explanation as to how
the proposed administrative action would change or affect
existing law, and
(B) a statement of his reasons as to how the agreement
serves the interest of United States foreign policy and as to
why the proposed administrative action is required or
appropriate to carry out the agreement; and
(3) a joint resolution approving such agreement has been
enacted within 30 days of transmittal of such document to the
Congress.
(e) It is the sense of the Congress that the President should
instruct the Permanent Representative of the United States to the
United Nations to propose that the United Nations Security Coun-
cil, pursuant to Article 41 of the United Nations Charter, impose
measures against South Africa of the same type as are imposed by
this Act.
LIMITATION ON IMPORTS FROM OTHER COUNTRIES
SEC. 402. The President is authorized to limit the importation into
the United States of any product or service of a foreign country to
the extent to which such foreign country benefits from, or otherwise
takes commercial advantage of, any sanction or prohibition against
any national of the United States imposed by or under this Act.
SEC. 403. (a) Any national of the United States who is required by
this Act to terminate or curtail business activities in South Africa
may bring a civil action for damages against any person, partner-
ship, or corporation that takes commercial advantage or otherwise
benefits from such termination or curtailment.
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(b) The action described in subsection (a) may only be brought,
without respect to the amount in controversy, in the United States
district court for the District of Columbia or the Court of Inter-
national Trade. Damages which may be recovered include lost prof-
its and the cost of bringing the action, including a reasonable
attorney's fee.
(c) The injured party must show by a preponderance of the
evidence that the damages have been the direct result of defendant's
action taken with the deliberate intent to injure the party.
SEC. 501. (a) It shall be the policy of the United States to impose
additional measures against the Government of South Africa if
substantial progress has not been made within twelve months of the
date of enactment of this Act in ending the system of apartheid and
establishing a nonracial democracy.
(b) The President shall prepare and transmit to the Speaker of the
House of Representatives and the chairman of the Committee on
Foreign Relations of the Senate within twelve months of the date of
enactment of this Act, and every twelve months thereafter, a report
on the extent to which significant progress has been made toward
ending the system of apartheid, including-
(1) an assessment of the extent to which the Government of
South Africa has taken the steps set forth in section 101(b) of
this Act;
(2) an analysis of any other actions taken by the Government
of South Africa in ending the system of apartheid and moving
toward a nonracial democracy; and
(3) the progress, or lack of progress, made in reaching a
negotiated settlement to the conflict in South Africa.
(c) If the President determines that significant progress has not
been made by the Government of South Africa in ending the system
of apartheid and establishing a nonracial democracy, the President
shall include in the report required by subsection (b) a recommenda-
tion on which of the following additional measures should be
imposed:
(1) a prohibition on the importation of steel from South
Africa;
(2) a prohibition on military assistance to those countries that
the report required by section 508 identifies as continuing to
circumvent the international embargo on arms and military
technology to South Africa;
(3) a prohibition on the importation of food, agricultural
products, diamonds, and textiles from South Africa;
(4) a prohibition on United States banks accepting, receiving,
or holding deposit accounts from South African nationals; and
(5) a prohibition on the importation into the United States of
strategic minerals from South Africa.
(d) A joint resolution which would enact part or all of the meas-
ures recommended by the President pursuant to subsection (c) shall
be considered in accordance with the provisions of section 602 of this
Act.
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SEC. 502. (a) Notwithstanding any other provision of this Act, the
President may lift any prohibition contained in this Act imposed
against South Africa if the President determines, after six months
from the date of the imposition of such prohibition, and so reports to
Congress, that such prohibition would increase United States
dependence upon any member country or observer country of the
Council for Mutual Economic Assistance (C.M.E.A.) for the importa-
tion of coal or any strategic and critical material by an amount
which exceeds by weight the average amounts of such imports from
such country during the period 1981 through 1985.
(b)(1) Not later than 30 days after the date of enactment of this
Act, the Secretary of Commerce shall prepare and transmit to the
Congress a report setting forth for each country described in subsec-
tion (a)-
(A) the average amount of such imports from such country
during the period of 1981 through 1985; and
(B) the current amount of such imports from such country
entering the United States.
(2) Thirty days after transmittal of the report required by para-
graph (1) and every thirty days thereafter, the President shall
prepare and transmit the information described in paragraph (1)(B).
STUDY OF HEALTH CONDITIONS IN THE "HOMELANDS" AREAS OF SOUTH
AFRICA
SEC. 503. The Secretary of State shall conduct a study to examine
the state of health conditions and to determine the extent of starva-
tion and malnutrition now prevalent in the "homelands" areas of
South Africa and shall, not later than December 1, 1986, 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 setting forth the results of such study.
SEC. 504. (a) Not later than 90 days after the date of enactment of
this Act, the President shall submit to the Speaker of the House of
Representatives and the chairman of the Committee on Foreign
Relations of the Senate a report on the extent to which the United
States is dependent on the importation from South Africa of-
(1) chromium,
(2) cobalt,
(3) manganese,
(4) platinum group metals,
(5) ferroalloys, and
(6) other strategic and critical materials (within the meaning
of the Strategic and Critical Materials Stock Piling Act).
(b) The President shall develop a program which reduces the
dependence, if any, of the United States on the importation from
South Africa of the materials identified in the report submitted
under subsection (a).
STUDY AND REPORT ON THE ECONOMY OF SOUTHERN AFRICA
SEC. 505. (a) The President shall conduct a study on the role of
American assistance in southern Africa to determine what needs to
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be done, and what can be done to expand the trade, private invest-
ment, and transport prospects of southern Africa's landlocked
nations.
(b) Not later than 180 days after the date of enactment of this Act,
the President shall prepare and transmit to the chairman of the
Committee on Foreign Affairs of the House of Representatives and
the chairman of the Committee on Foreign Relations of the Senate a
report setting forth the findings of the study conducted under
subsection (a).
REPORT ON RELATIONS BETWEEN OTHER INDUSTRIALIZED DEMOCRACIES
AND SOUTH AFRICA
SEC. 506. (a) Not later than 180 days after the date of enactment of
this Act, the President 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 containing a detailed
assessment of the economic and other relationships of other indus-
trialized democracies with South Africa. Such report shall be
transmitted without regard to whether or not the President success-
fully concluded an international agreement under section 401.
(b) For purposes of this section, the phrase "economic and other
relationships" includes the same types of matters as are described in
sections 201, 202, 204, 205, 206, 207, sections 301 through 307, and
sections 309 and 310 of this Act.
STUDY AND REPORT ON DEPOSIT ACCOUNTS OF SOUTH AFRICAN
NATIONALS IN UNITED STATES BANKS
SEC. 507. (aXl) The Secretary of the Treasury shall conduct a
study on the feasibility of prohibiting each depository institution
from accepting, receiving, or holding a deposit account from any
South African national.
(2) For purposes of paragraph (1), the term "depository institu-
tion" has the same meaning as in section 19(bXl) of the Federal
Reserve Act.
(b) Not later than 180 days after the date of enactment of this Act,
the Secretary of the Treasury shall submit to the Speaker of the
House of Representatives and the chairman of the Committee an
Foreign Relations of the Senate a report detailing the findings of the
study required by subsection (a).
STUDY AND REPORT ON THE VIOLATION OF THE INTERNATIONAL
EMBARGO ON SALE AND EXPORT OF MILITARY ARTICLES TO SOUTH
AFRICA
SEC. 508. (a) The President shall conduct a study on the extent to
which the international embargo on the sale and exports of arms
and military technology to South Africa is being violated.
(b) Not later than 179 days after the date of enactment of this Act,
the President shall submit to the Speaker of the House of Represent-
atives and the chairman of the Committee on Foreign Relations of
the Senate a report setting forth the findings of the study required
by subsection (a), including an identification of those countries
engaged in such sale or export, with a view to terminating United
States military assistance to those countries.
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SEC. 509. (a) Not later than 90 days after the date of enactment of
this Act, the President shall prepare and transmit to the Speaker of
the House of Representatives and the chairman of the Committee on
Foreign Affairs of the House of Representatives and the chairman of
the Committee on Foreign Relations of the Senate an unclassified
version of a report, prepared with the assistance of the Director of
the Central Intelligence Agency, the Director of the Defense Intel-
ligence Agency, the National Security Advisor, and other relevant
United States Government officials in the intelligence community,
which shall set forth the activities of the Communist Party in South
Africa, the extent to which Communists have infiltrated the many
black and nonwhite South African organizations engaged in the
fight against the apartheid system, and the extent to which any
such Communist infiltration or influence sets the policies and goals
of the organizations with which they are involved.
(b) At the same time the unclassified report in subsection (a) is
transmitted as set forth in that subsection, a classified version of the
same report shall be transmitted to the chairmen of the Select
Committee on Intelligence of the Senate and of the Permanent
Select Committee on Intelligence of the House of Representatives.
SEC. 510. (a) No person, including a bank, may import into the
United States any gold coin minted in the Union of Soviet Socialist
Republics or offered for sale by the Government of the Union of
Soviet Socialist Republics.
(b) For purposes of this section, the term "United States" includes
the States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any territory or possession of
the United States.
(c) Any individual who violates this section or any regulations
issued to carry out this section shall be fined not more than five
times the value of the rubles involved.
SEC. 511 (a) Chapter 4 of part II of the Foreign Assistance Act of
1961 is amended by adding at the end thereof the following new
section:
"SEC. 535. ECONOMIC SUPPORT FOR DISADVANTAGED SOUTH AFRI-
CANS.-(a)(1) Up to $40,000,000 of the funds authorized to be appro-
priated to carry out this chapter for the fiscal year 1987 and each
fiscal year thereafter shall be available for assistance for disadvan-
taged South Africans. Assistance under this section shall be pro-
vided for activities that are consistent with the objective of a
majority of South Africans for an end to the apartheid system and
the establishment of a society based on non-racial principles. Such
activities may include scholarships, assistance to promote the
participation of disadvantaged South Africans in trade unions and
private enterprise, alternative education and community develop-
ment programs.
"(2) Up to $3,000,000 of the amounts provided in each fiscal year
pursuant to subsection (a) shall be available for training programs
for South Africa's trade unionists.
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"(b) Assistance provided pursuant to the section shall be made
available notwithstanding any other provision of law and shall not
be used to provide support to organizations or groups which are
financed or controlled by the Government of South Africa. Noth-
ing in this subsection may be construed to prohibit programs which
are consistent with subsection (a) and which award scholarships to
students who choose to attend South African-supported
institutions.".
(b) Not later than 90 days after the date of enactment of this Act,
the Secretary of State shall prepare and transmit to the Congress a
report describing the strategy of the President during the five-year
period beginning on such date regarding the assistance of black
Africans pursuant to section 535 of -the Foreign Assistance Act of
1961 and describing the programs and projects to be funded under
such section.
SEC. 512. (a) Not later than 180 days after the date of enactment of
this Act, the Attorney General shall prepare and transmit to the
Congress a report on actual and alleged violations of the Foreign
Agents Registration Act of 1938, and the status of any investigation
pertaining thereto, by representatives of governments or oppositio:.
movements in Subsaharan Africa, including, but not limited to,
members or representatives of the African National Congress.
(b) For purposes of conducting any investigations necessary in
order to provide a full and complete report, the Attorney General
shall have full authority to utilize civil investigative demand proce-
dures, including but not limited to the issuance of civil subpenas.
TITLE VI-ENFORCEMENT AND ADMINISTRATIVE
PROVISIONS
SEC. 601. The President shall issue such rules, regulations, li-
censes, and orders as are necessary to carry out the provisions of
this Act, including taking such steps as may be necessary to con-
tinue in effect the measures imposed by Executive Order 12532 of
September 9, 1985, and Executive Order 12535 of October 1, 1985,
and by any rule, regulation, license, or order issued thereunder (to
the extent such measures are not inconsistent with this Act).
SEC. 602. (aX1) The provisions of this subsection apply to the
consideration in the House of Representatives of a joint resolution
under sections 311(b), 401(d), and 501(d).
(2) A joint resolution shall, upon introduction, be referred to the
Committee on Foreign Affairs of the House of Representatives.
(3)(A) At any time after the joint resolution placed on the appro-
priate calendar has been on that calendar for a period of 5
legislative days, it is in order for any Member of the House (after
consultation with the Speaker as to the most appropriate time for
the consideration of that joint resolution) to move that the House
resolve itself into the Committee of the Whole House on the State of
the Union for the consideration of that joint resolution. The motion
is highly privileged and is in order even though a previous motion to
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the same effect has been disagreed to. All points of order against the
joint resolution under clauses 2 and 6 of Rule XXI of the Rules of the
House are waived. If the motion is agreed to, the resolution shall
remain the unfinished business of the House until disposed, of. A
motion to reconsider the vote by which the motion is disagreed to
shall not be in order.
(B) Debate on the joint resolution shall not exceed ten hours,
which shall be divided equally between a Member favoring and a
Member opposing the joint resolution. A motion to limit debate is in
order at any time in the House or in the Committee of the Whole
and is not debatable.
(C) An amendment to the joint resolution is not in order.
(D) At the conclusion of the debate on the joint resolution, the
Committee of the Whole shall rise and report the joint resolution
back to the House, and the previous question shall be considered as
ordered on the joint resolution to final passage without intervening
motion.
(b)(1) The provisions of this subsection apply to the consideration
in the Senate of a joint resolution under section 311(b), 401(d), or
501(d).
(2) A joint resolution shall, upon introduction, be referred to the
Committee on Foreign Relations of the Senate.
(3) A joint resolution described in this section shall be considered
in the Senate in accordance with procedures contained in para-
graphs (3) through (7) of section 8066(c) of the Department of De-
fense Appropriations Act, 1985 (as contained in Public Law 98-473),
except that-
(A) references in such paragraphs to the Committee on Appro-
priations of the Senate shall be deemed to be references to the
Committee on Foreign Relations of the Senate; and
(B) amendments to the joint resolution are in order.
(c) For purposes of this subsection, the term "joint resolution"
means only-
(A) in the case of section 311(b), a joint resolution which is
introduced in a House of Congress within 3 legislative days after
the Congress receives the report described in section 311(b) and
for which the matter after the resolving clause reads as follows:
"That the Congress, having received on the report of
the President containing the determination required by section
311(b) of the Comprehensive Anti-Apartheid Act of 1986, dis-
approves of such determination.", with the date of the receipt of
the report inserted in the blank;
(B) in the case of section 401(d)(3), a joint resolution which is
introduced in a House of Congress within 3 legislative days after
the Congress receives the document described in section
401(d)(2) and for which the matter after the resolving clause
reads as follows: "That the Congress, having received on
the text of the international agreement described in
section 401(d)(3) of the Comprehensive Anti-Apartheid Act of
1986, approves of such agreement.", with the date of the receipt
of the text of the agreement inserted in the blank; and
(C) in the case of section 501(d), a joint resolution which is
introduced in a House of Congress within 3 legislative days after
the Congress receives the determination of the President pursu-
ant to section 501(c) and for which the matter after the resolv-
ing clause reads as follows: "That the Congress, having received
on a determination of the President under section
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501(c) of the Comprehensive Anti-Apartheid Act of 1986, ap-
proves the President's determination.", with the date of the
receipt of the determination inserted in the blank.
(d) As used in this section, the term "legislative day" means a day
on which the House of Representatives or the Senate is in session, as
the case may be.
(e) This section is enacted-
(1) as an exercise of the rulemaking powers of the House of
Representatives and the Senate, and as such it is deemed a part
of the Rules of the House and the Rules of the Senate, respec-
tively, but applicable only with respect to the procedure to be
followed in the House and the Senate in the case of joint
resolutions under this section, and it supersedes other rules
only to the extent that it is inconsistent with such rules; and
(2) with full recognition of the constitutional right of the
House and the Senate to change their rules at any time, in the
same manner, and to the same extent as in the case of any other
rule of the House or Senate, and of the right of the Committee
on Rules of the House of Representatives to report a resolution
for the consideration of any measure.
SEC. 603. (aXl) The President with respect to his authorities under
section 601 shall take the necessary steps to ensure compliance with
the provisions of this Act and any regulations, licenses, and orders
issued to carry out this Act, including establishing mechanisms to
monitor compliance with this Act and such regulations, licenses,
and orders.
(2) In ensuring such compliance, the President may-
(A) require any person to keep a full record of, and to furnish
under oath, in the form of reports or otherwise, complete
information relative to any act or transaction described in this
Act either before, during, or after the completion thereof, or
relative to any interest in foreign property, or relative to any
property in which a foreign country or any national thereof has
or has had any interest, or as may be otherwise necessary to
enforce the provisions of this Act; and
(B) conduct investigations, hold hearings, administer oaths,
examine witnesses, receive evidence, take depositions, and re-
quire by subpena the attendance and testimony of witnesses and
the production of all books, papers, and documents relating to
any matter under investigation.
(b) Except as provided in subsection (d)-
(1) any person that violates the provisions of this Act, or any
regulation, license, or order issued to carry out this Act shall be
subject to a civil penalty of $50,000;
(2) any person, other than an individual, that willfully vio-
lates the provisions of this Act, or any regulation, license, or
order issued to carry out this Act shall be fined not more than
$1,000,000;
(3) any individual who willfully violates the provisions of this
Act or any regulation, license, or order issued to carry out this
Act shall be fined not more than $50,000, or imprisoned not
more than 10 years, or both; and
(4) any individual who violates section 301(a) or any regula-
tions issued to carry out that section shall, instead of the
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penalty set forth in paragraph (2), be fined not more than 5
times the value of the krugerrands or gold coins involved.
(c)(1) Whenever a person commits a violation under subsec-
tion (b)-
(A) any officer, director, or employee of such person, or any
natural person in control of such person who knowingly and
willfully ordered, authorized, acquiesced in, or carried out the
act or practice constituting the violation, and
(B) any agent of such person who knowingly and willfully
carried out such act or practice,
shall be fined not more than $10,000, or imprisoned not more than 5
years, or both.
(2) Paragraph (1) shall not apply in the case of a violation by an
individual of section 301(a) of this Act or of any regulation issued to
carry out that section.
(3) A fine imposed under paragraph (1) on an individual for an act
or practice constituting a violation may not be paid, directly or
indirectly, by the person committing the violation itself.
(d)(1) Any person who violates any regulation issued under section
208(d) or who, in a registration statement or report required by the
Secretary of State, makes any untrue statement of a material fact or
omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, shall be
subject to a civil penalty of not more than $10,000 imposed by the
Secretary of State. The provisions of subsections (d), (e), and (f) of
section 11 of the Export Administration Act of 1979 shall apply with
respect to any such civil penalty.
(2) Any person who commits a willful violation under paragraph
(1) shall upon conviction be fined not more than $1,000,000 or
imprisoned not more than 2 years, or both.
(3) Nothing in this section may be construed to authorize the
imposition of any penalty for failure to implement the Code of
Conduct.
SEC. 604. This Act and the regulations issued to carry out this Act
shall apply to any person who undertakes or causes to be under-
taken any transaction or activity with the intent to evade this Act
or such regulations.
SEC. 605. Nothing in this Act shall be construed as constituting
any recognition by the United States of the homelands referred to in
this Act.
SEC. 606. Notwithstanding section 210 of Public Law 99-349 or any
other provision of law-
(1) no reduction in the amount of funds for which a State or
local government is eligible or entitled under any Federal law
may be made,.and
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(2) no other penalty may be imposed by the Federal
Government,
by reason of the application of any State or local law concerning
apartheid to any contract entered into by a State or local govern-
ment for 90 days after the date of enactment of this Act.
THOMAS S. FOLEY,
Speaker of the House of Representatives pro tempore.
STROM THURMOND,
President of the Senate pro tempore.
I certify that this Act originated in the House of Representatives.
BENJAMIN J. GUTHRIE,
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