[Federal Register Volume 62, Number 78 (Wednesday, April 23, 1997)]
[Rules and Regulations]
[Pages 19672-19673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10445]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 585 and Chapter V


Federal Republic of Yugoslavia (Serbia & Montenegro) and Bosnian 
Serb-Controlled Areas of the Republic of Bosnia and Herzegovina 
Sanctions Regulations: Resolution of Claims Regarding Blocked Yugoslav 
Vessels and Removal of Names from Appendix C to 31 CFR Chapter V

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendment.

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SUMMARY: The Office of Foreign Assets Control is amending the Federal 
Republic of Yugoslavia (Serbia & Montenegro) and Bosnian Serb-
Controlled Areas of the Republic of Bosnia and Herzegovina Sanctions 
Regulations to authorize all transactions on and after May 19, 1997 
with respect to the following five blocked vessels: the M/V MOSLAVINA, 
M/V ZETA, M/V LOVCEN, M/V DURMITOR and M/V BAR (a.k.a. M/V INVIKEN). 
These vessels are simultaneously being removed from the list of blocked 
vessels contained in appendix C to 31 CFR chapter V. U.S. persons are 
generally licensed to seek and obtain judicial warrants of maritime 
arrest against these vessels. Such warrants may be served during the 
ten days prior to the vessels' unblocking if outstanding claims have 
not been settled with the vessels' owners or agents.

EFFECTIVE DATE: The amendment to 31 CFR part 585 is effective April 18, 
1997; the amendment to appendix C to 31 CFR chapter V is effective May 
19, 1997.

FOR FURTHER INFORMATION CONTACT: John T. Roth, Chief, Policy Planning 
and Program Management Division (tel.: 202/622-2500), or William B. 
Hoffman, Chief Counsel (tel.: 202/622-2410), Office of Foreign Assets 
Control, Department of the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability

    This document is available as an electronic file on The Federal 
Bulletin Board the day of publication in the Federal Register. By 
modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for 
disk or paper copies. This file is available for downloading without 
charge in WordPerfect 5.1, ASCII, and Adobe AcrobatTM 
readable (*.PDF) formats. For Internet access, the address for use with 
the World Wide Web (Home Page), Telnet, or FTP protocol is: 
fedbbs.access.gpo.gov. The document is also accessible for downloading 
in ASCII format without charge from Treasury's Electronic Library 
(``TEL'') in the ``Business, Trade and Labor Mall'' of the FedWorld 
bulletin board. By modem, dial 703/321-3339, and select the appropriate 
self-expanding file in TEL. For Internet access, use one of the 
following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide 
Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov 
(192.239.92.205). Additional information concerning the programs of the 
Office of Foreign Assets Control is available for downloading from the 
Office's Internet Home Page: http://www.ustreas.gov/treasury/services/
fac/fac.html, or in fax form through the Office's 24-hour fax-on-demand 
service: call 202/622-0077 using a fax machine, fax modem, or (within 
the United States) a touch-tone telephone.

Background

    On November 22, 1995, the United Nations Security Council passed 
Resolution 1022 (``Resolution 1022''), immediately and indefinitely 
suspending economic sanctions against the Federal Republic of 
Yugoslavia (Serbia & Montenegro) (the ``FRY (S&M)''). Those sanctions 
were subsequently terminated by United Nations Security Council 
Resolution 1074 of October 1, 1996. This termination, however, did not 
end the requirement of Resolution 1022 that blocked funds and assets 
that are subject to claims and encumbrances, or that are the property 
of persons deemed insolvent, remain blocked until ``released in 
accordance with applicable law.'' This requirement was implemented in 
the United States on December 27, 1995, by Presidential Determination 
No. 96-7. The Office of Foreign Assets Control is amending the Federal 
Republic of Yugoslavia (Serbia & Montenegro) and Bosnian Serb-
Controlled Areas of the Republic of Bosnia and Herzegovina Sanctions 
Regulations, 31 CFR part 585 (the ``Regulations''), by adding new 
Sec. 585.528, authorizing transactions with respect to the following 
vessels currently blocked pursuant to the Regulations, effective May 
19, 1997: the M/V MOSLAVINA, M/V ZETA, M/V LOVCEN, M/V DURMITOR and M/V 
BAR (a.k.a. M/V INVIKEN). Appendix C to 31 CFR chapter V, containing 
the names of vessels blocked pursuant to the various economic sanctions 
programs administered by the Office of Foreign Assets Control (see 61 
FR 32936, June 26, 1996), is also being amended to remove these vessels 
from the list on May 19, 1997.
    During the 30-day period, U.S. persons may negotiate settlements of 
their outstanding claims with respect to the vessels with the vessels' 
owners or agents, and are generally licensed to seek and obtain 
judicial warrants of maritime arrest against the vessels. If claims 
remain unresolved by 10:00 a.m. local time in the location of the 
vessel, May 8, 1997, U.S. persons are generally licensed to effect 
service of such warrants through the U.S. Marshal's Office in the 
district where the vessel is located during the ten-day period prior to 
the vessel's unblocking.
    Because the Regulations involve a foreign affairs function, 
Executive Order 12866 and the provisions of the Administrative 
Procedure Act (5 U.S.C. 553) requiring notice of proposed

[[Page 19673]]

rulemaking, opportunity for public participation, and delay in 
effective date, are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.

List of Subjects in 31 CFR Part 585

    Administrative practice and procedure, Banks, banking, Blocking of 
assets, Bosnia and Herzegovina, Foreign investments in the United 
States, Foreign trade, Penalties, Reporting and recordkeeping 
requirements, Securities, Specially designated nationals, 
Transportation, Vessels, Yugoslavia.
    For the reasons set forth in the preamble, 31 CFR part 585 and 
appendix C to 31 CFR chapter V are amended as set forth below:

PART 585--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA & MONTENEGRO) AND 
BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND 
HERZEGOVINA SANCTIONS REGULATIONS

    1. The authority citation for part 585 is revised to read as 
follows:
    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 49 U.S.C. 40106; 50 
U.S.C. 1601-1651, 1701-1706; Pub.L. 101-410, 104 Stat 890 (28 U.S.C. 
2461 note); E.O. 12808, 57 FR 23299, 3 CFR, 1992 Comp., p. 305; E.O. 
12810, 57 FR 24347, 3 CFR, 1992 Comp., p. 307; E.O. 12831, 58 FR 
5253, 3 CFR, 1993 Comp., p. 576; E.O. 12846, 58 FR 25771, 3 CFR, 
1993 Comp., p. 599; E.O. 12934, 59 FR 54117, 3 CFR, 1994 Comp., p. 
930.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

    2. Section 585.528 is added to subpart E to read as follows:


Sec. 585.528  Unblocking of certain vessels.

    (a) All transactions with respect to the following vessels are 
authorized as of May 19, 1997: the M/V MOSLAVINA, M/V ZETA, M/V LOVCEN, 
M/V DURMITOR, and M/V BAR (a.k.a. M/V INVIKEN).
    (b) All transactions by U.S. persons to seek and obtain judicial 
warrants of maritime arrest against the blocked vessels referenced in 
paragraph (a) of this section are authorized, but service of a warrant 
of maritime arrest on a blocked vessel referenced in paragraph (a) of 
this section may be effected not before 10:00 a.m. local time in the 
location of the vessel, May 8, 1997.
    (c) Nothing in this section authorizes a debit to an account 
blocked prior to December 27, 1995, unless such debit is independently 
authorized by or pursuant to this part.

APPENDIX C TO CHAPTER V--ALPHABETICAL LISTING OF VESSELS THAT ARE 
THE PROPERTY OF BLOCKED PERSONS, OR SPECIALLY DESIGNATED NATIONALS

    1. Under the same authority previously cited for 31 CFR part 585, 
appendix C to chapter V of 31 CFR is amended by removing the entries 
for the vessels ``M/V MOSLAVINA'', ``M/V ZETA'', ``M/V LOVCEN'', ``M/V 
DURMITOR'', and ``M/V BAR'', effective May 19, 1997.

    Dated: April 4, 1997.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: April 11, 1997.
James E. Johnson,
Assistant Secretary (Enforcement).
[FR Doc. 97-10445 Filed 4-18-97; 10:06 am]
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