[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 494 Referred in House (RFH)]

  1st Session
                                 S. 494


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2001

Referred to the Committee on Financial Services, and in addition to the 
 Committee on International Relations, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 AN ACT


 
   To provide for a transition to democracy and to promote economic 
                         recovery in Zimbabwe.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Zimbabwe Democracy and Economic 
Recovery Act of 2001''.

SEC. 2. STATEMENT OF POLICY.

    It is the policy of the United States to support the people of 
Zimbabwe in their struggle to effect peaceful, democratic change, 
achieve broad-based and equitable economic growth, and restore the rule 
of law.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) International financial institutions.--The term 
        ``international financial institutions'' means the multilateral 
        development banks and the International Monetary Fund.
            (2) Multilateral development banks.--The term 
        ``multilateral development banks'' means the International Bank 
        for Reconstruction and Development, the International 
        Development Association, the International Finance Corporation, 
        the Inter-American Development Bank, the Asian Development 
        Bank, the Inter-American Investment Corporation, the African 
        Development Bank, the African Development Fund, the European 
        Bank for Reconstruction and Development, and the Multilateral 
        Investment Guaranty Agency.

SEC. 4. SUPPORT FOR DEMOCRATIC TRANSITION AND ECONOMIC RECOVERY.

    (a) Findings.--Congress makes the following findings:
            (1) Through economic mismanagement, undemocratic practices, 
        and the costly deployment of troops to the Democratic Republic 
        of the Congo, the Government of Zimbabwe has rendered itself 
        ineligible to participate in International Bank for 
        Reconstruction and Development and International Monetary Fund 
        programs, which would otherwise be providing substantial 
        resources to assist in the recovery and modernization of 
        Zimbabwe's economy. The people of Zimbabwe have thus been 
        denied the economic and democratic benefits envisioned by the 
        donors to such programs, including the United States.
            (2) In September 1999 the IMF suspended its support under a 
        ``Stand By Arrangement'', approved the previous month, for 
        economic adjustment and reform in Zimbabwe.
            (3) In October 1999, the International Development 
        Association (in this section referred to as the ``IDA'') 
        suspended all structural adjustment loans, credits, and 
        guarantees to the Government of Zimbabwe.
            (4) In May 2000, the IDA suspended all other new lending to 
        the Government of Zimbabwe.
            (5) In September 2000, the IDA suspended disbursement of 
        funds for ongoing projects under previously-approved loans, 
        credits, and guarantees to the Government of Zimbabwe.
    (b) Support for Democratic Transition and Economic Recovery.--Upon 
receipt by the appropriate congressional committees of a certification 
described in subsection (d), the following shall apply:
            (1) Debt relief and other financial assistance.--The 
        Secretary of the Treasury shall--
                    (A) undertake a review of the feasibility of 
                restructuring, rescheduling, or eliminating the 
                sovereign debt of Zimbabwe held by any agency of the 
                United States Government;
                    (B) direct the United States executive director of 
                each multilateral development bank to propose that the 
                bank should undertake a review of the feasibility of 
                restructuring, rescheduling, or eliminating the 
                sovereign debt of Zimbabwe held by that bank; and
                    (C) direct the United States executive director of 
                each international financial institution to which the 
                United States is a member to propose to undertake 
                financial and technical support for Zimbabwe, 
                especially support that is intended to promote 
                Zimbabwe's economic recovery and development, the 
                stabilization of the Zimbabwean dollar, and the 
                viability of Zimbabwe's democratic institutions.
            (2) Establishment of a southern africa finance center.--The 
        President should direct the establishment of a Southern Africa 
        Finance Center located in Zimbabwe that will include regional 
        offices of the Overseas Private Investment Corporation, the 
        Export-Import Bank of the United States, and the Trade and 
        Development Agency for the purpose of facilitating the 
        development of commercial projects in Zimbabwe and the southern 
        Africa region.
    (c) Multilateral Financing Restriction.--Until the President makes 
the certification described in subsection (d), and except as may be 
required to meet basic human needs or for good governance, the 
Secretary of the Treasury shall instruct the United States executive 
director to each international financial institution to oppose and vote 
against--
            (1) any extension by the respective institution of any 
        loan, credit, or guarantee to the Government of Zimbabwe; or
            (2) any cancellation or reduction of indebtedness owed by 
        the Government of Zimbabwe to the United States or any 
        international financial institution.
    (d) Presidential Certification That Certain Conditions Are 
Satisfied.--A certification under this subsection is a certification 
transmitted to the appropriate congressional committees of a 
determination made by the President that the following conditions are 
satisfied:
            (1) Restoration of the rule of law.--The rule of law has 
        been restored in Zimbabwe, including respect for ownership and 
        title to property, freedom of speech and association, and an 
        end to the lawlessness, violence, and intimidation sponsored, 
        condoned, or tolerated by the Government of Zimbabwe, the 
        ruling party, and their supporters or entities.
            (2) Election or pre-election conditions.--Either of the 
        following two conditions is satisfied:
                    (A) Presidential election.--Zimbabwe has held a 
                presidential election that is widely accepted as free 
                and fair by independent international monitors, and the 
                president-elect is free to assume the duties of the 
                office.
                    (B) Pre-election conditions.--In the event the 
                certification is made before the presidential election 
                takes place, the Government of Zimbabwe has 
                sufficiently improved the pre-election environment to a 
                degree consistent with accepted international standards 
                for security and freedom of movement and association.
            (3) Commitment to equitable, legal, and transparent land 
        reform.--The Government of Zimbabwe has demonstrated a 
        commitment to an equitable, legal, and transparent land reform 
        program consistent with agreements reached at the International 
        Donors' Conference on Land Reform and Resettlement in Zimbabwe 
        held in Harare, Zimbabwe, in September 1998.
            (4) Fulfillment of agreement ending war in democratic 
        republic of congo.--The Government of Zimbabwe is making a good 
        faith effort to fulfill the terms of the Lusaka, Zambia, 
        agreement on ending the war in the Democratic Republic of 
        Congo.
            (5) Military and national police subordinate to civilian 
        government.--The Zimbabwean Armed Forces, the National Police 
        of Zimbabwe, and other state security forces are responsible to 
        and serve the elected civilian government.
    (e) Waiver.--The President may waive the provisions of subsection 
(b) or subsection (c), if the President determines that it is in the 
national interest of the United States to do so.

SEC. 5. SUPPORT FOR DEMOCRATIC INSTITUTIONS, THE FREE PRESS AND 
              INDEPENDENT MEDIA, AND THE RULE OF LAW.

    (a) In General.--The President is authorized to provide assistance 
under part I and chapter 4 of part II of the Foreign Assistance Act of 
1961 to--
            (1) support an independent and free press and electronic 
        media in Zimbabwe;
            (2) support equitable, legal, and transparent mechanisms of 
        land reform in Zimbabwe, including the payment of costs related 
        to the acquisition of land and the resettlement of individuals, 
        consistent with the International Donors' Conference on Land 
        Reform and Resettlement in Zimbabwe held in Harare, Zimbabwe, 
        in September 1998, or any subsequent agreement relating 
        thereto; and
            (3) for democracy and governance programs in Zimbabwe.
    (b) Funding.--Of the funds authorized to be appropriated to carry 
out part I and chapter 4 of part II of the Foreign Assistance Act of 
1961 for fiscal year 2002--
            (1) $20,000,000 is authorized to be available to provide 
        the assistance described in subsection (a)(2); and
            (2) $6,000,000 is authorized to be available to provide the 
        assistance described in subsection (a)(3).
    (c) Supersedes Other Laws.--The authority in this section 
supersedes any other provision of law.

SEC. 6. SENSE OF CONGRESS ON THE ACTIONS TO BE TAKEN AGAINST 
              INDIVIDUALS RESPONSIBLE FOR VIOLENCE AND THE BREAKDOWN OF 
              THE RULE OF LAW IN ZIMBABWE.

    It is the sense of Congress that the President should begin 
immediate consultation with the governments of European Union member 
states, Canada, and other appropriate foreign countries on ways in 
which to--
            (1) identify and share information regarding individuals 
        responsible for the deliberate breakdown of the rule of law, 
        politically motivated violence, and intimidation in Zimbabwe;
            (2) identify assets of those individuals held outside 
        Zimbabwe;
            (3) implement travel and economic sanctions against those 
        individuals and their associates and families; and
            (4) provide for the eventual removal or amendment of those 
        sanctions.

            Passed the Senate August 1, 2001.

            Attest:

                                                  JERI THOMSON,

                                                             Secretary.