[House Document 107-77]
[From the U.S. Government Publishing Office]
107th Congress, 1st Session - - - - - - - - - - - - - House Document 107-77
SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
YUGOSLAVIA (SERBIA AND MONTENEGRO) AND KOSOVO
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
THE FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) DECLARED IN
EXECUTIVE ORDER 12808 ON MAY 30, 1992 AND WITH RESPECT TO THE KOSOVO
EMERGENCY DECLARED IN EXECUTIVE ORDER 13088 ON JUNE 9, 1998, PURSUANT
TO 50 U.S.C. 1703(c)
May 25, 2001.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
To the Congress of the United States:
As required by section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c) and section 204(c) of the International
Emergency Economic Powers Act (IEEPA), 50 U.S.C. 1703(c), I
transmit herewith a 6-month periodic report on the national
emergency with respect to the Yugoslavia (Serbia and
Montenegro) emergency declared in Executive Order 12808 on May
30, 1992, and with respect to the Kosovo emergency declared in
Executive Order 13088 on June 9, 1998.
George W. Bush.
The White House, May 24, 2001.
President's Periodic Report on the National Emergencies With Respect to
the Federal Republic of Yugoslavia (Serbia & Montenegro) and Kosovo
I hereby report to the Congress on developments over the
course of the past six months concerning the national emergency
with respect to the Federal Republic of Yugoslavia (Serbia and
Montenegro) (the ``FRY (S&M)'') that was declared in Executive
Order 12808 on May 30, 1992, as supplemented by Executive
Orders 12810, 12831, and 12846, issued on June 5, 1992, January
15, 1993, and April 25, 1993, respectively, and as expanded in
Executive Order 12934, issued on October 25, 1994, with respect
to the Bosnian Serbs. I am also reporting to the Congress on
developments over the course of the past six months concerning
the national emergency with respect to the FRY (S&M) and Kosovo
that was declared in Executive Order 13088 on June 9, 1998, as
supplemented by Executive Order 13121, issued on April 30,
1999, and as amended in Executive Order 13192 of January 17,
2001. The present report is submitted pursuant to 50 U.S.C.
1641(c) and 1703(c), covers the period from November 30, 2000
through May 29, 2001, and discusses Administration actions and
expenses directly related to the exercise of powers and
authorities conferred by these national emergency declarations.
With regard to the national emergency declared in 1992, the
Office of Foreign Assets Control (``OFAC'') has continued
during the past six months to oversee the maintenance of FRY
(S&M) accounts blocked pursuant to 31 CFR Part 585, and records
with respect to: (1) liquidated tangible assets and personalty
of the fifteen blocked U.S. subsidiaries of entities organized
in the FRY (S&M); (2) the blocked personalty, files, and
records of the two Serbian banking institutions in New York
previously placed in secure storage; and (3) remaining blocked
FRY (S&M) tangible property, including real estate. The
Departments of State and the Treasury continue to work closely
with European Union member states and other UN member nations
to implement the provisions of United Nations Security Council
Resolutions 1022 and 1074 regarding the status of assets
subject to claims and encumbrances previously blocked under
that authority.
With regard to the national emergency declared in 1998,
following the peaceful democratic transition begun in the FRY
(S&M), the President issued Executive Order 13192 on January
17, 2001, amending Executive Order 13088 to lift and modify,
with respect to future transactions, most of the economic
sanctions imposed against the FRY (S&M). Executive Order 13192
imposes restrictions on transactions with certain persons
described in Section 1(a) of the Order, namely Slobodan
Milosevic, his close supporters and persons under open
indictment for war crimes by the International Criminal
Tribunal for the former Yugoslavia (``ICTY''). It also provides
for the continued blocking of property or interests in property
blocked prior to the Order's effective date pending resolution
of claims and encumbrances, until unblocked in accordance with
applicable law.
Further information with regard to the national emergencies
declared in 1992 and 1998 is provided below.
1. OFAC is preparing regulations with respect to Executive
Order 13192.
2. During this reporting period, OFAC issued a total of 108
specific licenses pursuant to either the Federal Republic of
Yugoslavia (Serbia & Montenegro) Kosovo Sanctions Regulations
(the ``Regulations''), 31 CFR Part 586, or the regulations
implementing the 1992 sanctions program. Specific licenses were
issued to: (1) unblock wire transfers involving generally
smallamounts of individuals' purely personal funds; (2) authorize the
settlement of pending legal actions and receipt of payment for legal
services; (3) authorize certain transactions relating to air safety
policy; (4) authorize exports of energy supplies to the UN mission in
Kosovo; and (5) authorize imports pending implementation of the new
Executive order. Five additional OFAC registrations of nongovernmental
agencies providing humanitarian assistance have been made since the
last report. Thus, the total of such registrations since the inception
of the program is 55.
Pursuant to the Regulations, OFAC blocked 132 transactions
totaling more than $26.7 million during this reporting period.
Most of the blockings were of funds transfers originating from,
or destined for, Serbian banks. In addition, 282 funds
transfers totaling more than $12 million were rejected by U.S.
banking institutions as contrary to U.S. sanctions.
Since the last report, OFAC has collected three civil
monetary penalties totaling more than $10,100 for violations of
the sanctions. These violations involved payments either to the
Government of the FRY (S&M), persons in the FRY (S&M), or to
blocked entities owned or controlled by the Government of the
FRY (S&M), as well as the unauthorized export of services to
the FRY (S&M). The violators included one U.S. financial
institution, one company, and one individual. An additional
case is undergoing penalty action for violation of the 1992
sanctions program and an additional 64 cases are undergoing
penalty action for violation of the Regulations.
3. The trial of a resident alien, along with his company,
who were named in a February 16, 2000, 40-count indictment in
the Central District of California, has been rescheduled for
June 2001. The indictment alleged unauthorized sales and
exportation from the United States of aircraft parts to
Jugoslovenski Aerotransport (``JAT'') in the FRY (S&M) and
further alleged conspiracy with U.S. persons to acquire U.S.-
manufactured aircraft parts from certain U.S. companies for
resale and exportation to JAT. The defendant allegedly shipped
the aircraft parts to JAT in third countries with the knowledge
that they would be transshipped to the FRY (S&M) without
authorization by the United States Government. Trial was
originally scheduled for February 2001.
4. The expenses incurred by the Federal Government in the
six-month period from November 29, 2000 through May 30, 2001
that are directly attributable to the declaration of the
national emergencies in Executive Orders 12808 and 13088 are
estimated at approximately $500,000, most of which represents
wage and salary costs for Federal personnel. Personnel costs
were largely centered in the Department of the Treasury
(particularly in OFAC, the Chief Counsel's Office (Office of
Foreign Assets Control), and the U.S. Customs Service), the
Department of State, the National Security Council, and the
Department of Commerce.
5. It is in the United State's foreign policy interest to
support Yugoslavia's newly democratically elected government as
they work toward building a society based on democratic ideals.
We also have a strong interest in avoiding prejudice to the
claims of successor States of the former Socialist Federal
Republic of Yugoslavia with respect to previously blocked funds
and assets. Further, we will ensure that sanctions-lifting
measures do not allow supporters of Milosevic to continue the
systematic theft of resources that have marked the last
thirteen years.
With regard to the national emergency declared in 1992, I
shall continue to exercise the powers at my disposal with
respect to this emergency until the status of all remaining
blocked property is resolved, the Dayton Peace Agreement, is
implemented, and the terms of United Nations Security Council
Resolution 1022 are met. With regard to the national emergency
declared in 1998, I shall continue to exercise the powers at my
disposal with respect to this emergency until the crisis with
respect to the situation in Kosovo, and with respect to
Slobodan Milosevic, his close associates and supporters and
persons under open indictment for war crimes by ICTY, and with
respect to property previously blocked has been resolved, as
long as these measures are appropriate. I will continue to
report periodically to the Congress on significant developments
pursuant to 50 U.S.C. 1703(c).