U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

19–011 2003

108th Congress, 1st Session – – – – – – – – – – – – – House Document 108–11

SIX MONTH PERIODIC REPORT ON THE NATIONAL 

EMERGENCY WITH RESPECT TO YUGOSLAVIA (SERBIA AND MONTENEGRO) AND KOSOVO

COMMUNICATION

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A COMBINED 6-MONTH REPORT ON THE NATIONAL EMERGENCIES 

DECLARED WITH RESPECT TO THE FEDERAL REPUBLIC OF 

YUGOSLAVIA (SERBIA AND MONTENEGRO) IN EXECUTIVE ORDER 

12808 ON MAY 30, 1992 AND KOSOVO IN EXECUTIVE ORDER 

13088 ON JUNE 9, 1998, PURSUANT TO 50 U.S.C. 1641(c) AND 50 

U.S.C. 1703(c)

JANUARY 7, 2003.—Referred to the Committee on International Relations 

and ordered to be printed 


E:\Seals\Congress.#13
(1)

THE WHITE HOUSE, 

Washington, December 4, 2002. 

Hon. J. DENNIS HASTERT, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MR. SPEAKER: As required by section 401(c) of the National 

Emergencies Act, 50 U.S.C. 1641(c), and section 204(c) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(c), I am 

providing a combined 6-month report prepared by my Administration on the national emergencies declared with respect to the Federal Republic of Yugoslavia (Serbia and Montenegro) in Executive 

Order 12808 on May 30, 1992, and Kosovo in Executive Order 

13088 on June 9, 1998. 

Sincerely, 

GEORGE W. BUSH.

(3)

PERIODIC REPORT ON THE NATIONAL EMERGENCIES WITH RESPECT

TO THE FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) 

This report to the Congress addresses developments over the 

course of the past 6 months concerning the national emergency 

with respect to the Federal Republic of Yugoslavia (Serbia and 

Montenegro) (the ‘‘FRY (S&M)’’) that was declared in Executive 

Order 12808 on May 30, 1992, and was expanded in Executive 

Order 12934, issued on October 25, 1994, with respect to the Bosnian Serbs. The report also covers developments over the course of 

the past 6 months concerning the national emergency with respect 

to the FRY (S&M) and Kosovo that was declared in Executive 

Order 13088 on June 9, 1998, as supplemented by Executive Order 

13121, issued on April 30, 1999, and as amended in Executive 

Order 13192 of January 17, 2001. This report is submitted pursuant to section 204(c) of the International Emergency Economic 

Powers Act, 50 U.S.C. 1703(c) (IEEPA), and section 401(c) of the 

National Emergencies Act, 50 U.S.C. 1641(c). 

With regard to the national emergency declared in 1992, the Office of Foreign Assets Control (OFAC) has continued during the 

past 6 months to oversee the maintenance of FRY (S&M) accounts 

and records blocked pursuant to the FRY (S&M) and Bosnian Serbcontrolled Areas of the Republic of Bosnia and Herzegovina Sanctions Regulations, 31 CFR Part 585 (the ‘‘Bosnia and Herzegovina 

Regulations’’). The Departments of State and Treasury continue to 

work closely with the European Union member states, the successor States emerging from the dissolution of the former Yugoslavia, and other U.N. member nations to implement the provisions 

of United Nations Security Council Resolutions 1022 and 1074 regarding the status of assets subject to claims or encumbrances previously blocked under that authority. 

With regard to the national emergency declared in 1998, the 

President issued Executive Order 13192 on January 17, 2001, 

amending Executive Order 13088 to lift and modify, with respect 

to future transactions, most of the economic sanctions imposes 

against the FRY (S&M). The Order imposes restrictions on transactions with certain persons described in Section 1(a) of the Order 

and also provides for the continued blocking of property or interests 

in property blocked pursuant to the FRY (S&M) Kosovo Sanctions 

Regulations, 31 CFR Part 586 (the ‘‘Kosovo Regulations’’) prior to 

the Order’s effective date pending resolution of claims and encumbrances. Ongoing sanctions against Milosevic, his close associates, 

supporters and persons openly indicted for war crimes by the International Criminal Tribunal for the former Yugoslavia (ICTY) are 

administered pursuant to the FRY (S&M) Milosevic Regulations, 

31 CFR Part 587 (the ‘‘Milosevic Regulations’’). 

4

Further information with regard to the national emergencies declared in 1992 and 1998 is provided below. 

1. During this reporting period, there have been no amendments 

to the Bosnia and Herzegovina Regulations, the Kosovo Regulations, or the Milosevic Regulations. 

2. During this reporting period, OFAC issued a total of six specific licenses under the Bosnia and Herzegovina Regulations and 

the Kosovo Regulations. These licenses authorized: (1) the resumption of the use of a company’s trademark; (2) the debiting of 

blocked accounts of two Yugoslav banking institutions currently 

under the control of the state banking department of the state in 

which they are located, to pay storage fees and other maintenance 

fees associated with the two financial institutions; (3) the debiting 

of a blocked account for the excess interest posted to the account; 

and (4) the unblocking, sale and transfer of debt obligations issued 

under the Trade and Deposit Facility Agreement, dated September 

20, 1988. In addition, during this reporting period, OFAC 

unblocked 13 funds transfers destined for the Federal Air Traffic 

Authority of the FRY (S&M) that had been previously excluded 

from a general license issued as part of the Kosovo Regulations in 

October 2001 authorizing the return to the remitter of certain categories of wire transfers. The current Government of the Federal 

Republic of Yugoslavia certified that the transactions were legitimate and requested that the funds be unblocked. 

During this reporting period, OFAC issued no specific licenses 

pursuant to the Milosevic Regulations. 

3. Since the last report, OFAC has collected four civil monetary penalties totaling nearly $29,000 for violations of the Kosovo Regulations by two U.S. financial institutions and one U.S. company. 

These violations involved payments either to the Government of 

the FRY (S&M), persons in the FRY (S&M), or to blocked entities 

owned or controlled by the Government of the FRY (S&M), as well 

as the export of unauthorized services thereto. An additional case 

is undergoing penalty action for violation of the Bosnia and 

Herzegovina Regulations and an additional 82 cases are undergoing penalty action for violation of the Kosovo Regulations. 

4. The expenses incurred by the United States Government in 

the 6-month period from May 31, through November 30, 2002, that 

are directly attributable to the declaration of the national emergencies made in 1992 and 1998 are estimated at approximately 

$250,000, most of which represents wage and salary costs for 

United States Government personnel. Personnel costs were largely 

centered in the Department of the Treasury (particularly in OFAC, 

the Chief Counsel’s Office, and the U.S. Customs Service), the Department of State and Commerce, and the National Security Council staff. 

5. It is in the United States’ foreign policy interest to support 

Yugoslavia’s democratically-elected government as it works toward 

building a society based on democratic principles. Following Secretary of State Powell’s May 2002 meeting with FRY Minister 

Djindjic, Secretary Powell formally certified to the Congress that 

the FRY was cooperating with the ICTY. Subsequently, Secretary 

Powell requested that the Department of the Treasury take steps 

to begin the process of unblocking all previously frozen assets—exVerDate Dec 13 2002 07:21 Jan 09, 2003 Jkt 019011 PO 00000 Frm 00006 Fmt 6601 Sfmt 6601 E:\HR\OC\HD011.XXX HD011
5

cept those linked to Slobodan Milosevic, his close associates and 

supporters and persons under open indictment for war crimes by 

the ICTY. The Departments of State and Treasury are working 

closely on a plan to unblock frozen assets while avoiding prejudice 

to the claims of U.S. persons and successor states of the former Socialist Federal Republic of Yugoslavia.

Æ