Blocking Property of the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, and the Republic of Montenegro, and Prohibiting New Investment in the Republic of Serbia in Response to the Situation in Kosovo

Executive Order 13088 of June 9, 1998

Blocking Property of the Governments of the
Federal Republic of Yugoslavia (Serbia and Montenegro),
the Republic of Serbia, and the Republic of Montenegro,
and Prohibiting New Investment in the Republic of
Serbia in Response to the Situation in Kosovo

By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the International Emergency Economic
Powers Act (IEEPA) (50 U.S.C. 1701 et seq.), the
National Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3, United States Code,

I, WILLIAM J. CLINTON, President of the United States
of America, find that the actions and policies of the
Governments of the Federal Republic of Yugoslavia
(Serbia and Montenegro) and the Republic of Serbia with
respect to Kosovo, by promoting ethnic conflict and
human suffering, threaten to destabilize countries of
the region and to disrupt progress in Bosnia and
Herzegovina in implementing the Dayton peace agreement,
and therefore constitute an unusual and extraordinary
threat to the national security and foreign policy of
the United States, and hereby declare a national
emergency to deal with that threat.

I hereby order:

    Section 1. (a) Except to the extent provided in
section 2 of this order, section 203(b) of IEEPA (50
U.S.C. 1702(b)), and in regulations, orders,
directives, or licenses that may hereafter be issued
pursuant to this order, all property and interests in
property of the Governments of the Federal Republic of
Yugoslavia (Serbia and Montenegro), the Republic of
Serbia, and the Republic of Montenegro that are in the
United States, that hereafter come within the United
States, or that are or hereafter come within the
possession or control of United States persons,
including their overseas branches, are hereby blocked.
    (b) The blocking of property and property interests
in paragraph (a) of this section includes the
prohibition of financial transactions with, including
trade financing for, the Governments of the Federal
Republic of Yugoslavia (Serbia and Montenegro), the
Republic of Serbia, and the Republic of Montenegro by
United States persons.
    Sec. 2. Nothing in section 1 of this order shall
prohibit financial transactions, including trade
financing, by United States persons within the
territory of the Federal Republic of Yugoslavia (Serbia
and Montenegro) if (a) conducted exclusively through
the domestic banking system within the Federal Republic
of Yugoslavia (Serbia and Montenegro) in local currency
(dinars), or (b) conducted using bank notes or barter.
    Sec. 3. Except as otherwise provided in
regulations, orders, directives, or licenses that may
hereafter be issued pursuant to this order, all new
investment by United States persons in the territory of
the Republic of Serbia, and the approval or other
facilitation by United States persons of other persons'
new investment in the territory of the Republic of
Serbia, are prohibited.

    Sec. 4. Any transaction by a United States person
that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the
prohibitions set forth in this order is prohibited.
    Sec. 5. For the purposes of this order:
    (a) The term “person” means an individual or
entity;
    (b) The term “entity” means a partnership,
association, trust, joint venture, corporation, or
other organization;
    (c) The term “new investment” means (i) the
acquisition of debt or equity interests in, (ii) a
commitment or contribution of funds or other assets to,
or (iii) a loan or other extensionof credit to, a
public or private undertaking, entity, or project,
including the Government of the Republic of Serbia,
other than donations of funds for purely humanitarian
purposes to charitable organizations;
    (d) The term “United States person” means any
United States citizen, permanent resident alien,
juridical person organized under the laws of the United
States (including foreign branches), or any person in
the United States;
    (e) The term “Government of the Federal Republic
of Yugoslavia (Serbia and Montenegro)” means the
government of the Federal Republic of Yugoslavia
(Serbia and Montenegro), its agencies,
instrumentalities, and controlled entities, including
all financial institutions and state-owned and socially
owned entities organized or located in the Federal
Republic of Yugoslavia (Serbia and Montenegro) as of
June 9, 1998, any successors to such entities, and
their respective subsidiaries and branches, wherever
located, and any persons acting or purporting to act
for or on behalf of any of the foregoing;
    (f) The term “Government of the Republic of
Serbia” means the government of the Republic of
Serbia, including any subdivisions thereof or local
governments therein, its agencies, instrumentalities,
and controlled entities, including all financial
institutions and state-owned and socially owned
entities organized or located in the Republic of Serbia
as of June 9, 1998, any successors to such entities,
and their respective subsidiaries and branches,
wherever located, and any persons acting or purporting
to act for or on behalf of any of the foregoing;
    (g) The term “Government of the Republic of
Montenegro” means the government of the Republic of
Montenegro, including any subdivisions thereof or local
governments therein, its agencies, instrumentalities,
and controlled entities, including all financial
institutions and state-owned and socially owned
entities organized or located in the Republic of
Montenegro as of June 9, 1998, any successors to such
entities, and their respective subsidiaries and
branches, wherever located, and any persons acting or
purporting to act for or on behalf of any of the
foregoing.
    Sec. 6. The Secretary of the Treasury, in
consultation with the Secretary of State, is hereby
authorized to take such actions, including the
promulgation of rules and regulations, and to employ
all powers granted to me by the International Emergency
Economic Powers Act, as may be necessary to carry out
the purposes of this order. The Secretary of the
Treasury may redelegate any of these functions to other
officers and agencies of the United States Government,
all agencies of which are hereby directed to take all
appropriate measures within their authority to carry
out the provisions of this order, including suspension
or termination of licenses or other authorizations in
effect as of the effective date of this order.
    Sec. 7. 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 and persons
located in and organized under the laws of the Republic
of Montenegro in the implementation of this order.

    Sec. 8. Nothing contained in this order shall
confer any substantive or procedural right or privilege
on any person or organization, enforceable against the
United States, its agencies or its officers.
    Sec. 9. (a) This order is effective at 12:01 a.m.
eastern daylight time on June 10, 1998.
    (b) This order shall be transmitted to the Congress
and published in the Federal Register.

    (Presidential Sig.)

THE WHITE HOUSE,

     June 9, 1998.