[Congressional Record Volume 144, Number 75 (Thursday, June 11, 1998)]
[Senate]
[Pages S6178-S6179]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPORT CONCERNING THE GOVERNMENTS OF THE FEDERAL REPUBLIC OF YUGOSLAVIA 
(SERBIA AND MONTENEGRO) IN RESPONSE TO THE SITUATION IN KOSOVO--MESSAGE 
                       FROM THE PRESIDENT--PM 139

  The Presiding Officer laid before the Senate 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:
  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 other 
persons' 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

[[Page S6179]]

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, and 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.

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