[Congressional Record Volume 143, Number 73 (Monday, June 2, 1997)]
[Senate]
[Page S5174]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPORT CONCERNING THE CONTINUATION WITH RESPECT TO THE FEDERAL REPUBLIC 
OF YUGOSLAVIA (SERBIA AND MONTENEGRO) AND THE BOS- NIAN SERBS--MESSAGE 
       FROM THE PRESIDENT RECEIVED DURING THE ADJOURNMENT--PM-39

  Under the authority of the order of the Senate of January 7, 1997, 
the Secretary of the Senate, on May 28, 1997, during the adjournment of 
the Senate, received the following message from the President of the 
United States, together with an accompanying report; which was referred 
to the Committee on Banking, Housing, and Urban Affairs.

To the Congress of the United States:

  Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) 
provides for the automatic termination of a national emergency unless, 
prior to the anniversary date of its declaration, the President 
publishes in the Federal Register and transmits to the Congress a 
notice stating that the emergency is to continue in effect beyond the 
anniversary date. In accordance with this provision, I have sent the 
enclosed notice to the Federal Register for publication, stating that 
the emergency declared with respect to the Federal Republic of 
Yugoslavia (Serbia and Montenegro), as expanded to address the actions 
and policies of the Bosnian Serb forces and the authorities in the 
territory that they control within the Republic of Bosnia and 
Herzegovina, is to continue in effect beyond May 30, 1997.
  On December 27, 1995, I issued Presidential Determination No. 96-7, 
directing the Secretary of the Treasury, inter alia, to suspend the 
application of sanctions imposed on the Federal Republic of Yugoslavia 
(Serbia and Montenegro) and to continue to block property previously 
blocked until provision is made to address claims or encumbrances, 
including the claims of the other successor states of the former 
Yugoslavia. This sanctions relief, in conformity with United Nations 
Security Council Resolution 1022 of November 22, 1995 (hereinafter the 
``Resolution''), was an essential factor motivating Serbia and 
Montenegro's acceptance of the General Framework Agreement for Peace in 
Bosnia and Herzegovina initialed by the parties in Dayton on November 
21, 1995, and signed in Paris on December 14, 1995 (hereinafter the 
``Peace Agreement''). The sanctions imposed on the Federal Republic of 
Yugoslavia (Serbia and Montenegro) were accordingly suspended 
prospectively, effective January 16, 1996. Sanctions imposed on the 
Bosnian Serb forces and authorities and on the territory that they 
control within the Republic of Bosnia and Herzegovina were subsequently 
suspended prospectively, effective May 10, 1996, also in conformity 
with the Peace Agreement and the Resolution.
  Sanctions against both the Federal Republic of Yugoslavia (Serbia and 
Montenegro) and the Bosnian Serbs were subsequently terminated by 
United Nations Security Council Resolution 1074 of October 1, 1996. 
This termination, however, did not end the requirement of the 
Resolution that blocked funds and assets that are subject to claims and 
encumbrances remain blocked, until unblocked in accordance with 
applicable law. In the last year, substantial progress has been 
achieved to bring about a settlement of the conflict in the former 
Yugoslavia acceptable to the parties. Elections occurred in the 
Republic of Bosnia and Herzegovina, as provided for in the Peace 
Agreement, and the Bosnian Serb forces have continued to respect the 
zones of separation as provided in the Peace Agreement. The ultimate 
disposition of the various remaining categories of blocked assets are 
now being addressed, beginning with the unblocking of five Yugoslav 
vessels located in various United States ports effective May 19, 1997.
  Until the status of all remaining blocked property is resolved, the 
Peace Agreement implemented, and the terms of the Resolution met, this 
situation continues to pose a continuing unusual and extraordinary 
threat to the national security, foreign policy interests, and the 
economy of the United States. For these reasons, I have determined that 
it is necessary to maintain in force these emergency authorities beyond 
May 30, 1997.
                                                  William J. Clinton.  
  The White House, May 28, 1997.

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