[House Document 108-11]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - - - House Document 108-11
SIX MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
YUGOSLAVIA (SERBIA AND MONTENEGRO) AND KOSOVO
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A COMBINED 6-MONTH REPORT ON THE NATIONAL EMERGENCIES DECLARED WITH
RESPECT TO THE FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO)
IN EXECUTIVE ORDER 12808 ON MAY 30, 1992 AND KOSOVO IN EXECUTIVE ORDER
13088 ON JUNE 9, 1998, PURSUANT TO 50 U.S.C. 1641(c) AND 50 U.S.C.
1703(c)
January 7, 2003.--Referred to the Committee on International Relations
and ordered to be printed
The White House,
Washington, December 4, 2002.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: 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, 50 U.S.C.
1703(c), I am providing a combined 6-month report prepared by
my Administration on the national emergencies declared with
respect to the Federal Republic of Yugoslavia (Serbia and
Montenegro) in Executive Order 12808 on May 30, 1992, and
Kosovo in Executive Order 13088 on June 9, 1998.
Sincerely,
George W. Bush.
Periodic Report on the National Emergencies With Respect to the Federal
Republic of Yugoslavia (Serbia and Montenegro)
This report to the Congress addresses developments over the
course of the past 6 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, and was expanded in Executive
Order 12934, issued on October 25, 1994, with respect to the
Bosnian Serbs. The report also covers developments over the
course of the past 6 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. This report is
submitted pursuant to section 204(c) of the International
Emergency Economic Powers Act, 50 U.S.C. 1703(c) (IEEPA), and
section 401(c) of the National Emergencies Act, 50 U.S.C.
1641(c).
With regard to the national emergency declared in 1992, the
Office of Foreign Assets Control (OFAC) has continued during
the past 6 months to oversee the maintenance of FRY (S&M)
accounts and records blocked pursuant to the FRY (S&M) and
Bosnian Serb-controlled Areas of the Republic of Bosnia and
Herzegovina Sanctions Regulations, 31 CFR Part 585 (the
``Bosnia and Herzegovina Regulations''). The Departments of
State and Treasury continue to work closely with the European
Union member states, the successor States emerging from the
dissolution of the former Yugoslavia, and other U.N. member
nations to implement the provisions of United Nations Security
Council Resolutions 1022 and 1074 regarding the status of
assets subject to claims or encumbrances previously blocked
under that authority.
With regard to the national emergency declared in 1998, 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 imposes
against the FRY (S&M). The Order imposes restrictions on
transactions with certain persons described in Section 1(a) of
the Order and also provides for the continued blocking of
property or interests in property blocked pursuant to the FRY
(S&M) Kosovo Sanctions Regulations, 31 CFR Part 586 (the
``Kosovo Regulations'') prior to the Order's effective date
pending resolution of claims and encumbrances. Ongoing
sanctions against Milosevic, his close associates, supporters
and persons openly indicted for war crimes by the International
Criminal Tribunal for the former Yugoslavia (ICTY) are
administered pursuant to the FRY (S&M) Milosevic Regulations,
31 CFR Part 587 (the ``Milosevic Regulations'').
Further information with regard to the national emergencies
declared in 1992 and 1998 is provided below.
1. During this reporting period, there have been no
amendments to the Bosnia and Herzegovina Regulations, the
Kosovo Regulations, or the Milosevic Regulations.
2. During this reporting period, OFAC issued a total of six
specific licenses under the Bosnia and Herzegovina Regulations
and the Kosovo Regulations. These licenses authorized: (1) the
resumption of the use of a company's trademark; (2) the
debiting of blocked accounts of two Yugoslav banking
institutions currently under the control of the state banking
department of the state in which they are located, to pay
storage fees and other maintenance fees associated with the two
financial institutions; (3) the debiting of a blocked account
for the excess interest posted to the account; and (4) the
unblocking, sale and transfer of debt obligations issued under
the Trade and Deposit Facility Agreement, dated September 20,
1988. In addition, during this reporting period, OFAC unblocked
13 funds transfers destined for the Federal Air Traffic
Authority of the FRY (S&M) that had been previously excluded
from a general license issued as part of the Kosovo Regulations
in October 2001 authorizing the return to the remitter of
certain categories of wire transfers. The current Government of
the Federal Republic of Yugoslavia certified that the
transactions were legitimate and requested that the funds be
unblocked.
During this reporting period, OFAC issued no specific
licenses pursuant to the Milosevic Regulations.
3. Since the last report, OFAC has collected four civil
monetary penalties totaling nearly $29,000 for violations of
the Kosovo Regulations by two U.S. financial institutions and
one U.S. company. 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 export of unauthorized services
thereto. An additional case is undergoing penalty action for
violation of the Bosnia and Herzegovina Regulations and an
additional 82 cases are undergoing penalty action for violation
of the Kosovo Regulations.
4. The expenses incurred by the United States Government in
the 6-month period from May 31, through November 30, 2002, that
are directly attributable to the declaration of the national
emergencies made in 1992 and 1998 are estimated at
approximately $250,000, most of which represents wage and
salary costs for United States Government personnel. Personnel
costs were largely centered in the Department of the Treasury
(particularly in OFAC, the Chief Counsel's Office, and the U.S.
Customs Service), the Department of State and Commerce, and the
National Security Council staff.
5. It is in the United States' foreign policy interest to
support Yugoslavia's democratically-elected government as it
works toward building a society based on democratic principles.
Following Secretary of State Powell's May 2002 meeting with FRY
Minister Djindjic, Secretary Powell formally certified to the
Congress that the FRY was cooperating with the ICTY.
Subsequently, Secretary Powell requested that the Department of
the Treasury take steps to begin the process of unblocking all
previously frozen assets--except those linked to Slobodan
Milosevic, his close associates and supporters and persons
under open indictment for war crimes by the ICTY. The
Departments of State and Treasury are working closely on a plan
to unblock frozen assets while avoiding prejudice to the claims
of U.S. persons and successor states of the former Socialist
Federal Republic of Yugoslavia.