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1 (July 21, 2005)

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                                                                   Order Code  RS21686
                                                                   Updated July 21, 2005



 CRS Report for Congress

               Received through the CRS Web



            Conditions on U.S. Aid to Serbia

                              Steven  Woehrel
                       Specialist in European  Affairs
               Foreign  Affairs, Defense, and  Trade  Division

Summary


     In each of the past five fiscal years (FY2001-FY2005), Congress has conditioned
 U.S. aid to Serbia on a presidential certification that Serbia has met certain conditions,
 including cooperation with the International Criminal Tribunal for the Former
 Yugoslavia (ICTY). The 109th Congress is considering similar certification provisions
 in the FY2006 foreign aid bill. Supporters of aid conditionality say such provisions may
 have spurred Serbia's cooperation with the Tribunal. While the certification process
 continues to enjoy support in Congress, the Administration appears to favor ending it
 soon, as well as shifting responsibility for prosecuting war crimes from the ICTY to
 local courts. This report will be updated as events warrant. For more information on
 Serbia and Montenegro, see CRS Report RL30371, Serbia and Montenegro: Current
 Situation and U.S. Policy.


 Background

     In each of the past five fiscal years (FY2001-FY2005), Congress has conditioned
U.S. aid to Serbia after a certain date of that year on a presidential certification that Serbia
has met three conditions. They are cooperating with the International Criminal Tribunal
for Yugoslavia (ICTY); ending support for separate Bosnian Serb institutions; and
protecting minority rights and the rule of law, including the release of political prisoners.
The provision also has recommended that U.S. support for loans from international
financial institutions to the Federal Republic of Yugoslavia (the now-defunct federation
of Serbia and Montenegro) be conditioned on the certification. The certification does not
apply to aid to Montenegro, now Serbia's partner in a loose union simply called Serbia
and Montenegro, or Kosovo, which is nominally a Serbian province but is administered
by a U.N. mission. The provision also has not applied to humanitarian or democratization
aid to Serbia.' The amounts of aid affected by these conditions may be relatively modest



Another provision in foreign operations appropriations bills in recent years has dealt with U.S.
aid to Serbia (in the FY2004 bill, it is Section 570). It has conditioned U.S. aid to all countries,
entities and municipalities in the region on cooperation with the ICTY. However, this provision
                                                                  (continued...)

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