[Federal Register: November 6, 1998 (Volume 63, Number 215)]
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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 585

 
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 
Montenegrin Vessel Accounts

AGENCY: Office of Foreign Assets Control, Department of the 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 December 7, 1998 
with respect to bank accounts representing the proceeds of the sales of 
the following two blocked vessels: the M/V KAPETAN MARTINOVIC and the 
M/V BOR. U.S. persons are generally licensed to seek, obtain and have 
served on these blocked accounts writs of attachment during the ten-day 
period prior to the accounts' unblocking if their claims are not 
settled with the vessels' owners or agents.

EFFECTIVE DATE: November 6, 1998.
FOR FURTHER INFORMATION: 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:

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[[Page 59884]]

Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The document is also 
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(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.treas.gov/ofac, 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 April 18, 1997, the Office of Foreign Assets Control issued an 
amendment to 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''), providing for the unblocking of the following five 
vessels: the M/V MOSLAVINA, M/V ZETA, M/V LOVCEN, M/V DURMITOR and M/V 
BAR (a.k.a. M/V INVIKEN) after 30 days (62 FR 19672, April 23, 1997). 
Two previously blocked vessels, the M/V KAPETAN MARTINOVIC and the M/V 
BOR, were sold pursuant to specific licenses and the proceeds of the 
sales placed in blocked interest-bearing accounts at U.S. financial 
institutions as substitute property for the blocked vessels.
    The accounts representing the two vessels will also be unblocked 
after 30 days. During this period, U.S. persons may negotiate 
settlements of their outstanding claims with respect to the vessels 
with the vessels' owners or agents. If claims remain unresolved by 
November 27, 1998, U.S. persons are generally licensed to seek and 
obtain judicial writs of attachment against the funds during the ten-
day period prior to the accounts' unblocking.
    Since the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and the Administrative Procedure 
Act (5 U.S.C. 553) requiring notice of proposed 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 is 
amended as set forth below:

    1. The authority citation for part 585 is revised to read as 
follows:
    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 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 to Part 585--Licenses, Authorizations, and Statements of 
Licensing Policy

    2. Section 585.528 is amended by revising the section heading and 
adding paragraph (d) to read as follows:


Sec. 585.528  Unblocking of certain vessels and accounts.

* * * * *

    (d) All transactions with respect to blocked accounts held at 
Whitney National Bank, New Orleans, Louisiana, containing the proceeds 
of the sales of the M/V KAPETAN MARTINOVIC and the M/V BOR are 
authorized as of December 7, 1998. All transactions
by U.S. persons to seek and obtain judicial writs of attachment against 
the blocked accounts as substitute property for these vessels are 
authorized as of 10:00 a.m. Eastern Standard Time, November 27, 1998.

    Dated: October 7, 1998.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: October 15, 1998.
Elisabeth A. Bresee,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 98-29789 Filed 11-3-98; 1:59 pm]
BILLING CODE 4810-25-F