[Weekly Compilation of Presidential Documents Volume 34, Number 24 (Monday, June 15, 1998)]
[Pages 1089-1090]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 13088--Blocking Property of the Governments of the 
Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of 
Serbia, and the Republic of Montenegro, and Prohibiting New Investment 
in the Republic of Serbia in Response to the Situation in Kosovo

June 9, 1998

    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, including the International 
Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1701 et seq.), the 
National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of 
title 3, United States Code,
    I, William J. Clinton, President of the United States of America, 
find that the actions and policies of the Governments of the Federal 
Republic of Yugoslavia (Serbia and Montenegro) and the Republic of 
Serbia with respect to Kosovo, by promoting ethnic conflict and human 
suffering, threaten to destabilize countries of the region and to 
disrupt progress in Bosnia and Herzegovina in implementing the Dayton 
peace agreement, and therefore constitute an unusual and extraordinary 
threat to the national security and foreign policy of the United States, 
and hereby declare a national emergency to deal with that threat.
    I hereby order:
    Section 1. (a) Except to the extent provided in section 2 of this 
order, section 203(b) of IEEPA (50 U.S.C. 1702(b)), and in regulations, 
orders, directives, or licenses that may hereafter be issued pursuant to 
this order, 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 that are in the United States, 
that hereafter come within the United States, or that are or hereinafter 
come within the possession or control of United States persons, 
including their overseas branches, are hereby blocked.
    (b) The blocking of property and property interests in paragraph (a) 
of this section includes the prohibition of financial transactions with, 
including trade financing for, the Governments of the Federal Republic 
of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, and the 
Republic of Montenegro by United States persons.
    Sec. 2. Nothing in section 1 of this order shall prohibit financial 
transactions, including trade financing, by United States persons within 
the territory of the Federal Republic of Yugoslavia (Serbia and 
Montenegro) if (a) conducted exclusively through the domestic banking 
system within the Federal Republic of Yugoslavia (Serbia and Montenegro) 
in local currency (dinars), or (b) conducted using bank notes or barter.
    Sec. 3. Except as otherwise provided in regulations, orders, 
directives, or licenses that may hereafter be issued pursuant to this 
order, all new investment by United States persons in the territory of 
the Republic of Serbia, and the approval or other facilitation by United 
States persons of other persons' new investment in the territory of the 
Republic of Serbia, are prohibited.
    Sec. 4. Any transaction by a United States person that evades or 
avoids, or has the purpose of evading or avoiding, or attempts to 
violate, any of the prohibitions set forth in this order is prohibited.
    Sec. 5. For the purposes of this order:
    (a) The term ``person'' means an individual or entity;
    (b) The term ``entity'' means a partnership, association, trust, 
joint venture, corporation, or other organization;
    (c) The term ``new investment'' means (i) the acquisition of debt or 
equity interests in, (ii) a commitment or contribution of funds or other 
assets to, or (iii) a loan or other extension of credit to, a public or 
private undertaking, entity, or project, including the Government of the 
Republic of Serbia, other than donations of funds for purely 
humanitarian purposes to charitable organizations;
    (d) The term ``United States person'' means any United States 
citizen, permanent resident alien, juridical person organized under the 
laws of the United States (including foreign branches), or any person in 
the United States;

[[Page 1090]]

    (e) The term ``Government of the Federal Republic of Yugoslavia 
(Serbia and Montenegro)'' means the government of the Federal Republic 
of Yugoslavia (Serbia and Montenegro), its agencies, instrumentalities, 
and controlled entities, including all financial institutions and state-
owned and socially owned entities organized or located in the Federal 
Republic of Yugoslavia (Serbia and Montenegro) as of June 9, 1998, any 
successors to such entities, and their respective subsidiaries and 
branches, wherever located, and any persons acting or purporting to act 
for or on behalf of any of the foregoing;
    (f) The term ``Government of the Republic of Serbia'' means the 
government of the Republic of Serbia, including any subdivisions thereof 
or local governments therein, its agencies, instrumentalities, and 
controlled entities, including all financial institutions and state-
owned and socially owned entities organized or located in the Republic 
of Serbia as of June 9, 1998, any successors to such entities, and their 
respective subsidiaries and branches, wherever located, and any persons 
acting or purporting to act for or on behalf of any of the foregoing;
    (g) The term ``Government of the Republic of Montenegro'' means the 
government of the Republic of Montenegro, including any subdivisions 
thereof or local governments therein, its agencies, instrumentalities, 
and controlled entities, including all financial institutions and state-
owned and socially owned entities organized or located in the Republic 
of Montenegro as of June 9, 1998, any successors to such entities, and 
their respective subsidiaries and branches, wherever located, and any 
persons acting or purporting to act for or on behalf of any of the 
foregoing.
    Sec. 6. The Secretary of the Treasury, in consultation with the 
Secretary of State, is hereby authorized to take such actions, including 
the promulgation of rules and regulations, and to employ all powers 
granted to me by the International Emergency Economic Powers Act, as may 
be necessary to carry out the purposes of this order. The Secretary of 
the Treasury may redelegate any of these functions to other officers and 
agencies of the United States Government, all agencies of which are 
hereby directed to take all appropriate measures within their authority 
to carry out the provisions of this order, including suspension or 
termination of licenses or other authorizations in effect as of the 
effective date of this order.
    Sec. 7. The Secretary of the Treasury, in consultation with the 
Secretary of State, shall give special consideration to the 
circumstances of the Government of the Republic of Montenegro and 
persons located in and organized under the laws of the Republic of 
Montenegro in the implementation of this order.
    Sec. 8. Nothing contained in this order shall confer any substantive 
or procedural right or privilege on any person or organization, 
enforceable against the United States, its agencies or its officers.
    Sec. 9. (a) This order is effective at 12:01 a.m. eastern daylight 
time on June 10, 1998.
    (b) This order shall be transmitted to the Congress and published in 
the Federal Register.
                                            William J. Clinton
The White House,
June 9, 1998.

[Filed with the Office of the Federal Register, 8:45 a.m., June 11, 
1998]

Note: This Executive order was released by the Office of the Press 
Secretary on June 10, and it was published in the Federal Register on 
June 12.