Letter to Congressional Leaders on Sanctions Against the Federal Republic of Yugoslavia (Serbia and Montenegro)

Dear Mr. Speaker: (Dear Mr. President:)

Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. In accordance with this provision, I have sent the enclosed notice to the Federal Register for publication, stating that the emergency declared with respect to the Federal Republic of Yugoslavia (Serbia and Montenegro), as expanded to address the actions and policies of the Bosnian Serb forces and the authorities in the territory that they control within the Republic of Bosnia and Herzegovina, is to continue in effect beyond May 30, 1996.

The circumstances that led to the declaration on May 30, 1992, of a national emergency and to the expansion of that emergency on October 25, 1994, have not been resolved. On November 22, 1995, the United Nations Security Council adopted Resolution 1022, immediately and indefinitely suspending economic sanctions against the Federal Republic of Yugoslavia (Serbia and Montenegro) in view of the General Framework Agreement for Peace in Bosnia and Herzegovina (the "Peace Agreement") initialled by the Presidents of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Bosnia and Herzegovina, and the Republic of Croatia in Dayton, Ohio, on November 21, 1995, and signed by the parties in Paris on December 14, 1995. On December 27, 1995, I issued Presidential Determination No. 96-7, directing the Secretary of the Treasury to suspend the application of sanctions imposed on the Federal Republic of Yugoslavia (Serbia and Montenegro). These sanctions were suspended on January 16, 1996. Sanctions imposed on the Bosnian Serbs were subsequently suspended on May 10, 1996.

These suspended sanctions will not be terminated, however, until the Peace Agreement has been fully implemented through the occurrence of free and fair elections in the Republic of Bosnia and Herzegovina, and provided that the Bosnian Serb forces have continued to respect the zones of separation as provided in the Peace Agreement. Assets blocked pursuant to the sanctions also remain blocked until claims and encumbrances involving those assets can be addressed. Until the peace process is fully implemented, this situation continues to pose a continuing unusual and extraordinary threat to the national security, foreign policy interests, and the economy of the United States. For these reasons, I have determined that it is necessary to maintain in force the broad authorities necessary to reimpose economic pressure on the Government of the Federal Republic of Yugoslavia (Serbia and Montenegro) and the Bosnian Serb forces and the authorities in the territory that they control if either fail significantly to meet their obligations under the Peace Agreement.

Sincerely,

WILLIAM J. CLINTON