    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [June 10, 1998]
    [Pages 933-934]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 933]]

    Message to the Congress on Economic Sanctions Against the Federal
    Republic of Yugoslavia (Serbia and Montenegro) in Response to the
    Situation in Kosovo
    June 10, 1998

    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

    [[Page 934]]

    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
    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.

    Note: This message was released by the Office of the Press Secretary on
    June 11. The Executive order of June 9 is listed in Appendix D at the
    end of this volume.