JOURNAL OF THE

1144

T96.12 JULY 18

wages, vessel maintenance, and emergency supplies for FRY (S/M) controlled ships blocked in the United

States; (8) for the removal from the

FRY (S/M), or protection within the

FRY (S/M), of certain property owned

and controlled by U.S. entities; (9) to

assist the United Nations in its relief

operations and the activities of the

U.N. Protection Force; and (10) for payment from funds outside the United

States where a third country has licensed the transaction in accordance

with U.N. sanctions. Pursuant to U.S.

regulations implementing UNSC Resolutions, specific licenses have also been

issued to authorize exportation of food,

medicine, and supplies intended for humanitarian purposes in the FRY (S/M).

During the past 6 months, FAC has

continued to oversee the liquidation of

tangible assets of the 15 U.S. subsidiaries of entities organized in the FRY

(S/M). Subsequent to the issuance of

Executive Order No. 12846, all operating

licenses issued for these U.S.-located

Serbian or Montenegrin subsidiaries or

joint ventures were revoked, and the

net proceeds of the liquidation of their

assets placed in blocked accounts.

In order to reduce the drain on

blocked assets caused by continuing to

rent commercial space, FAC arranged

to have the blocked personalty, files,

and records of the two Serbian banking

institutions in New York moved to secure storage. The personalty is being

liquidated, with the net proceeds

placed in blocked accounts.

Following the sale of the M/V

Kapetan Martinovic in January 1995,

five Yugoslav-owned vessels remain

blocked in the United States. Approval

of the UNSC’s Serbian Sanctions Committee was sought and obtained for the

sale of the M/V Kapetan Martinovic

(and the M/V Bor, which was sold in

June 1994) based on U.S. assurances

that the sale would comply with four

basic conditions, which assure that

both U.S. and U.N. sanctions objectives

with respect to the FRY (S/M) are met:

(1) the sale will be for fair market

value; (2) the sale will result in a complete divestiture of any interest of the

FRY (S/M) (or of commercial interests

located in or controlled from the FRY

(S/M)) in the vessel; (3) the sale would

result in no economic benefit to the

FRY (S/M) (or commercial interests located in or controlled from the FRY (S/

M)); and (4) the net proceeds of the sale

(the gross proceeds less the costs of

sale normally paid by the seller) will

be placed in a blocked account in the

United States. Negotiations for the

sale of the M/V Bar, now blocked in

New Orleans, are underway and are

likely to be concluded prior to my next

report.

Other than the M/V Bar, the four remaining Yugoslav-owned vessels are

beneficially owned by Jugooceanija

Plovidba of Kotor, Montenegro, and

managed by Milena Ship Management

Co. Ltd. in Malta. These vessels have

many unpaid U.S. creditors for services

and supplies furnished during the time

they have been blocked in the United

States; moreover, the owner appears to

have insufficient resources to provide

for the future upkeep and maintenance

needs of these vessels and their crews.

The United States is notifying the

UNSC’s Serbian Sanctions Committee

of the United States’s intention to license some or all of these remaining

four vessels upon the owner’s request.

With the FAC-licensed sales of the M/

V Kapetan Martinovic and the M/V

Bor, those vessels were removed from

the list of blocked FRY entities and

merchant vessels maintained by FAC.

The new owners of several formerly

Yugoslav-owned vessels, which have

been sold in other countries, have petitioned FAC to remove those vessels

from the list. FAC, in coordination

with the Department of State, is currently reviewing the sale terms and

conditions for those vessels to ascertain whether they comply with U.N.

sanctions objectives and UNSC’s Serbian Sanctions Committee practice.

During the past 6 months, U.S. financial institutions have continued to

block funds transfers in which there is

an interest of the Government of the

FRY (S/M) or an entity or undertaking

located in or controlled from the FRY

(S/M), and to stop prohibited transfers

to persons in the FRY (S/M). Such

interdicted transfers have accounted

for $125.6 million since the issuance of

Executive order No. 12808, including

some $9.3 million during the past 6

months.

To ensure compliance with the terms

of the licenses that have been issued

under the program, stringent reporting

requirements are imposed. More than

279 submissions have been reviewed by

FAC since the last report, and more

than 125 compliance cases are currently open.

6. Since the issuance of Executive

Order No. 12810, FAC has worked closely with the U.S. Customs Service to ensure both that prohibited imports and

exports (including those in which the

Government of the FRY (S/M) or Bosnian Serb authorities have an interest)

are identified and interdicted, and that

permitted imports and exports move to

their intended destination without

undue delay. Violations and suspected

violations of the embargo are being investigated and appropriate enforcement actions are being taken. There

are currently 37 cases under active investigation. Since the last report, FAC

has collected nine civil penalties totaling nearly $20,000. Of these, five were

paid by U.S. financial institutions for

violative funds transfers involving the

Government of the FRY (S/M), persons

in the FRY (S/M), or entities located or

organized in or controlled from the

FRY (S/M). Three U.S. companies and

one air carrier have also paid penalties

related to exports or unlicensed payments to the Government of the FRY

(S/M) or persons in the FRY (S/M) or

other violations of the Regulations.

7. The expenses incurred by the Federal Government in the 6-month period

from November 30, 1994, through May

29, 1995, that are directly attributable

to the authorities conferred by the declaration of a national emergency with

respect to the FRY (S/M) and the Bosnian Serb forces and authorities are estimated at about $3.5 million, most of

which represent wage and salary costs

for Federal personnel. Personnel costs

were largely centered in the Department of the Treasury (particularly in

FAC and its Chief Counsel’s Office, and

the U.S. Customs Service), the Department of State, the National Security

Council, the U.S. Coast Guard, and the

Department of Commerce.

8. The actions and policies of the

Government of the FRY (S/M), in its

involvement in and support for groups

attempting to seize and hold territory

in the Republics of Croatia and Bosnia

and Herzegovina by force and violence,

and the actions and policies of the Bosnian Serb forces and the authorities in

the areas of Bosnia and Herzegovina

under their control, continue to pose

an unusual and extraordinary threat to

the national security, foreign policy,

and economy of the United States. The

United States remains committed to a

multilateral resolution of the conflict

through implementation of the United

Nations Security Council resolutions.

I shall continue to exercise the powers at my disposal to apply economic

sanctions against the FRY (S/M) and

the Bosnian Serb forces, civil authorities, and entities, as long as these

measures are appropriate, and will continue to report periodically to the Congress on significant developments pursuant to 50 U.S.C. 1703(c).

WILLIAM J. CLINTON.

THE WHITE HOUSE, July 18, 1995.

By unanimous consent, the message,

together with the accompanying papers, was referred to the Committee on

International Relations and ordered to

be printed (H. Doc. 104–101).

T96.12 INTERIOR APPROPRIATIONS, FY

1996

The SPEAKER pro tempore, Mr.

WATTS of Oklahoma, pursuant to

House Resolution 187, House Resolution 189 and rule XXIII, declared the

House resolved into the Committee of

the Whole House on the state of the

Union for the further consideration of

the bill (H.R. 1977) making appropriations for the Department of the Interior and related agencies for the fiscal

year ending September 30, 1996, and for

other purposes.

The Chairman, Mr. BURTON, resumed the Chair; and after some time

spent therein,

T96.13 RECORDED VOTE

A recorded vote by electronic device

was ordered in the Committee of the

Whole on the following amendment

submitted by Mr. SCHAEFER:

Page 57, line 7, strike ‘‘$287,000,000’’ and all

that follows through ‘‘Reserve’’ on line 21,

and insert the following: $187,000,000, to remain available until expended, which shall

be derived by transfer of unobligated balances from the ‘‘SPR petroleum account’’.