Message to the Congress on Additional Economic Sanctions Against the Federal Republic of Yugoslavia (Serbia and Montenegro)

To the Congress of the United States:

In response to the brutal ethnic cleansing campaign in Kosovo carried out by the military, police, and paramilitary forces of the Federal Republic of Yugoslavia (Serbia and Montenegro), the NATO allies have agreed to buttress NATO's military actions by tightening economic sanctions against the Milosevic regime. Pursuant to section 204(b) of the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1703(b), I hereby report to the Congress that, in order to implement the measures called for by NATO, I have exercised my statutory authority to take additional steps with respect to the continuing human rights and humanitarian crisis in Kosovo and the national emergency described and declared in Executive Order 13088 of June 9, 1998.

Pursuant to this authority, I have issued a new Executive order that:

• expands the assets freeze previously imposed on the assets of the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, and the Republic of Montenegro subject to U.S. jurisdiction, by removing the exemption in Executive Order 13088 for financial transactions by United States persons conducted exclusively through the domestic banking system within the Federal Republic of Yugoslavia (Serbia and Montenegro) or using bank notes or barter;
• prohibits exports or reexports, directly or indirectly, from the United States or by a United States person, wherever located, of goods, software, technology, or services to the Federal Republic of Yugoslavia (Serbia and Montenegro) or the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, or the Republic of Montenegro;
• prohibits imports, directly or indirectly, into the United States of goods, software, technology, or services from the Federal Republic of Yugoslavia (Serbia and Montenegro) or owned or controlled by the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, or the Republic of Montenegro;
• prohibits any transaction or dealing, including approving, financing, or facilitating, by a United States person, wherever located, related to trade with or to the Federal Republic of Yugoslavia (Serbia and Montenegro) or the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, or the Republic of Montenegro.

The trade-related prohibitions apply to any goods (including petroleum and petroleum products), software, technology (including technical data), or services, except to the extent excluded by section 203(b) of IEEPA (50 U.S.C. 1702(b)).

The ban on new investment by United States persons in the territory of Serbia—imposed by Executive Order 13088—continues in effect.

The Executive order provides that 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. As with Executive Order 13088, an exemption from the new sanctions has been granted to Montenegro. In implementing this order, special consideration is also to be given to the humanitarian needs of refugees from Kosovo and other civilians within the Federal Republic of Yugoslavia (Serbia and Montenegro).

In keeping with my Administration's new policy to exempt commercial sales of food and medicine from sanctions regimes, the Executive order directs the Secretary of the Treasury, in consultation with the Secretary of State, to authorize commercial sales of agricultural commodities and products, medicine, and medical equipment for civilian end use in the Federal Republic of Yugoslavia (Serbia and Montenegro). Such sales are to be subject to appropriate safeguards to prevent diversion to military, paramilitary, or political use by the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, or the Republic of Montenegro.

WILLIAM J. CLINTON

The White House, April 30, 1999.