[House Document 105-273]
[From the U.S. Government Publishing Office]
105th Congress, 2d Session - - - - - - - - - - - House Document 105-273
DEVELOPMENTS CONCERNING NATIONAL EMERGENCY WITH THE FEDERAL REPUBLIC
OF YUGOSLAVIA (SERBIA AND MONTENEGRO)
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT
TO THE FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO), PURSUANT
TO 50 U.S.C. 1641(c)
June 11, 1998.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
To the Congress of the United States:
In response to the ongoing use of excessive military force
in Kosovo by the police and armed forces of the Federal
Republic of Yugoslavia (Serbia and Montenegro) and the Republic
of Serbia, which has exacerbated ethnic conflict and human
suffering and threatens to destabilize other countries in the
region, the United States, acting in concert with the European
Union, has decided to impose certain economic sanctions.
Consistent with decisions taken at the meetings of the Contact
Group of countries, consisting of the United States, the United
Kingdom, Germany, France, Italy, and Russia, in Birmingham,
England, on May 16, 1998, and in Rome on April 29, 1998, the
United States will impose a freeze on the assets of the
Governments of the Federal Republic of Yugoslavia (Serbia and
Montenegro), the Republic of Serbia, and the Republic of
Montenegro, and a ban on new investment in the Republic of
Serbia. It is our intent to exempt the Government of Montenegro
from these sanctions wherever possible.
The Contact Group originally agreed in Rome on April 29 to
impose these sanctions in response to the increasingly
dangerous situation in Kosovo and Belgrade's failure to meet
crucial requirements concerning the adoption of a framework for
dialogue with the Kosovar Albanian leadership and a
stabilization package, as set out in earlier Contact Group
meetings in London on March 9, 1998, and in Bonn on March 25,
1998. The G8 Foreign Ministers reaffirmed the need to impose
sanctions at their meeting in London on May 8-9, 1998. The
Russian Federation did not associate itself with these sanction
measures.
At the May 16 meeting in Birmingham, England, the Contact
Group welcomed the establishment of a dialogue between Belgrade
and the Kosovar Albanian leadership. With the start of this
dialogue, those Contact Group countries that had previously
agreed to implement economic measures against the Federal
Republic of Yugoslavia (Serbia and Montenegro) and the Republic
of Serbia agreed that the proposed measure to stop new
investment in the Republic of Serbia would not be put into
effect and that they would review at their next meeting the
implementation of the freeze on funds. However, the use of
indiscriminate force by the police and armed forces of the
Federal Republic of Yugoslavia (Serbia and Montenegro) and the
Republic of Serbia has undermined the basis for dialogue.
The Contact Group has concluded that the current situation
in Kosovo is untenable and the risk of an escalating conflict
requires immediate action. It has also found that, if
unresolved, the conflict threatens to spill over to other parts
of the region. The United States attaches high priority to
supporting the security interests of the neighboring states and
to ensuring security of borders. It is also of particular
importance that developments in Kosovo should not disrupt
progress in implementing the Dayton peace agreement in Bosnia
and Herzegovina. This threat to the peace of the region
constitutes an unusual and extraordinary threat to the national
security and foreign policy of the United States.
On June 9, 1998, by the authority vested in me as President
by the Constitution and laws of the United States of America,
including the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C.
1601 et seq.), and section 301 of title 3 of the United States
Code, I declared a national emergency to respond to the
unacceptable actions and policies of the Belgrade authorities
and issued an Executive order to implement the measures called
for by the Contact Group. That order freezes the assets of the
Governments of the Federal Republic of Yugoslavia (Serbia and
Montenegro), the Republic of Serbia, and the Republic of
Montenegro that are under U.S. jurisdiction and, in concert
with the other Contact Group countries, restricts access of
those governments to the international financial system. That
order also prohibits new investment by United States persons,
or their facilitation of otherpersons' new investment, in the
Republic of Serbia. It is our intent to exempt the Government of the
Republic of Montenegro, by means of licenses, from the prohibitions
contained in the order wherever possible. That government has been
included in the order to ensure effective implementation of sanctions
against the Federal Republic of Yugoslavia (Serbia and Montenegro), of
which the Republic of Montenegro is a constituent part.
The order carries out these measures by:
--blocking all property, and interests in property, of the
Governments of the Federal Republic of Yugoslavia
(Serbia and Montenegro), the Republic of Serbia, and
the Republic of Montenegro, including the prohibition
of financial transactions with, including trade
financing for, those governments; and
--prohibiting new investment by United States persons, or
their facilitation of other persons' new investment, in
the territory of the Republic of Serbia.
The order provides that the Secretary of the Treasury, in
consultation with the Secretary of State, is authorized to take
such actions, including the promulgation of rules and
regulations, as may be necessary to carry out the purposes of
the order. Thus, in the event of improvements in the actions
and policies of Belgrade with respect to the situation in
Kosovo, the Secretary of the Treasury, in consultation with the
Secretary of State, would have the ability, through the
issuance of general or specific licenses, to authorize any or
all transactions otherwise prohibited by the order. Also, in
implementing the sanctions, we intend to license transactions
necessary to conduct the official business of the United States
Government and the United Nations. We further intend to issue
licenses to allow humanitarian, diplomatic, and journalistic
activities to continue.
The declaration of a national emergency made under
Executive Order 12808, an expanded in Executive Orders 12810
and 12831, remains in effect and is not affected by the June 9,
1998, order
William J. Clinton.
The White House, June 10, 1998.
Executive Order
----------
Blocking Property of the Governments of the Federal Republic of
Yugoslavia (Serbia and Montenegro), the Republic of Serbia, and the
Republic of Montenegro, and Prohibiting New Investment in the Republic
of Serbia in Response to the Situation in Kosovo
By the authority vested in me as President by the
Constitution and the laws of the United States of America,
including the International Emergency Economic Powers Act
(IEEPA) (50 U.S.C. 1701 et seq.), the National Emergencies Act
(50 U.S.C. 1601 et seq.), and section 301 of title 3, United
States Code,
I, William J. Clinton, President of the United States of
America, find that the actions and policies of the Governments
of the Federal Republic of Yugoslavia (Serbia and Montenegro)
and the Republic of Serbia with respect to Kosovo, by promoting
ethnic conflict and human suffering, threaten to destabilize
countries of the region and to disrupt progress in Bosnia and
Herzegovina in implementing the Dayton peace agreement, and
therefore constitute an unusual and extraordinary threat to the
national security and foreign policy of the United States, and
hereby declare a national emergency to deal with that threat.
I hereby order:
Section 1. (a) Except to the extent provided in section 2
of this order, section 203(b) of IEEPA (50 U.S.C. 1702(b)), and
in regulations, orders, directives, or licenses that may
hereafter be issued pursuant to this order, all property and
interests in property of the Governments of the Federal
Republic of Yugoslavia (Serbia and Montenegro), the Republic of
Serbia, and the Republic of Montenegro that are in the United
States, that hereafter come within the United States, or that
are or hereafter come within the possession or control of
United States persons, including their overseas branches, are
hereby blocked,
(b) The blocking of property and property interests in
paragraph (a) of this section includes the prohibition of
financial transactions with, including trade financing for, the
Governments of the Federal Republic of Yugoslavia (Serbia and
Montenegro), the Republic of Serbia, and the Republic of
Montenegro by United States persons.
Sec. 2. Nothing in section 1 of this order shall prohibit
financial transactions, including trade financing, by United
States persons within the territory of the Federal Republic of
Yugoslavia (Serbia and Montenegro) if (a) conducted exclusively
through the domestic banking system within the Federal Republic
of Yugoslavia (Serbia and Montenegro) in local currency
(dinars), or (b) conducted using bank notes or barter.
Sec. 3. Except as otherwise provided in regulations,
orders, directives, or licenses that may hereafter be issued
pursuant to this order, all new investment by United States
persons in the territory of the Republic of Serbia, and the
approval or other facilitation by United States persons of
other persons' new investment in the territory of the Republic
of Serbia, are prohibited.
Sec. 4. Any transaction by a United States person that
evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in this
order is prohibited.
Sec. 5. For the purposes of this order:
(a) The term ``person'' means an individual or entity;
(b) The term ``entity'' means a partnership, association,
trust, joint venture, corporation, or other organization;
(c) The term ``new investment'' means (i) the acquisition
of debt or equity interests in, (ii) a commitment or
contribution of funds or other assets to, or (iii) a loan or
other extension of credit to, a public or private undertaking,
entity, or project, including the Government of the Republic of
Serbia,other than donations of funds for purely humanitarian
purposes to charitable organizations;
(d) The term ``United States person'' means any United
States citizen, permanent resident alien, juridical person
organized under the laws of the United States (including
foreign branches), or any person in the United States;
(e) The term ``Government of the Federal Republic of
Yugoslavia (Serbia and Montenegro)'' means the government of
the Federal Republic of Yugoslavia (Serbia and Montenegro), its
agencies, instrumentalities, and controlled entities, including
all financial institutions and state-owned and socially owned
entities organized or located in the Federal Republic of
Yugoslavia (Serbia and Montenegro) as of June 9, 1998, any
successors to such entities, and their respective subsidiaries
and branches, wherever located, and any persons acting or
purporting to act for or on behalf of any of the foregoing;
(f) The term ``Government of the Republic of Serbia'' means
the government of the Republic of Serbia, including any
subdivisions thereof or local governments therein, its
agencies, instrumentalities, and controlled entities, including
all financial institutions and state-owned and socially owned
entities organized or located in the Republic of Serbia as of
June 9, 1998, any successors to such entities, and their
respective subsidiaries and branches, wherever located, and any
persons acting or purporting to act for or on behalf of any of
the foregoing;
(g) The term ``Government of the Republic of Montenegro''
means the government of the Republic of Montenegro, including
any subdivisions thereof or local governments therein, its
agencies, instrumentalities, and controlled entities, including
all financial institutions and state-owned and socially owned
entities organized or located in the Republic of Montenegro as
of June 9, 1998, any successors to such entities, and their
respective subsidiaries and branches, wherever located, and any
persons acting or purporting to act for or on behalf of any of
the foregoing.
Sec. 6. The Secretary of the Treasury, in consultation with
the Secretary of State, is hereby authorized to take such
actions, including the promulgation of rules and regulations,
and to employ all powers granted to me by the International
Emergency Economic Powers Act, as may be necessary to carry out
the purposes of this order. The Secretary of the Treasury may
redelegate any of these functions to other officers and
agencies of the United States Government, all agencies of which
are hereby directed to take all appropriate measures within
their authority to carry out the provisions of this order,
including suspension or termination of licenses or other
authorizations in effect as of the effective date of this
order.
Sec. 7. The Secretary of the Treasury, in consultation with
the Secretary of State, shall give special consideration to the
circumstances of the Government of the Republic of Montenegro
and persons located in and organized under the laws of the
Republic of Montenegro in the implementation of this order.
Sec. 8. Nothing contained in this order shall confer any
substantive or procedural right or privilege on any person or
organization, enforceable against the United States, its
agencies or its officers.
Sec. 9. (a) This order is effective at 12:01 a.m. eastern
daylight time on June 10, 1998.
(b) This order shall be transmitted to the Congress and
published in the Federal Register.
William J. Clinton.
The White House, June 9, 1998.