[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.

                                
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