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<title>AXWORTHY STEPS UP SANCTIONSAGAINST YUGOSLAVIA AND SERBIA</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">June 10, 1998 No. 155</font></p>
<p align="CENTER"><font face="Univers" size="+2">AXWORTHY STEPS UP SANCTIONS</font></p>
<p align="CENTER"><font face="Univers" size="+2">AGAINST YUGOSLAVIA AND SERBIA</font></p>
<p><font face="Courier">Foreign Affairs Minister Lloyd Axworthy announced today that Canada will
implement further measures against the governments of the Republic of Serbia and
the Federal Republic of Yugoslavia (FRY) following the offensive against Kosovar
Albanians, which destroyed villages and created an outflow of refugees toward
neighbouring Albania.</font></p>
<p><font face="Courier">The measures include a ban on investment in the Republic of Serbia and a freeze
of the assets of the FRY and Serbian governments in Canada. G-8 Foreign Ministers
had agreed to these measures in May, but their implementation had been suspended
in order to let Yugoslav President Slobodan Milosevic prove his good faith when
he engaged in talks with Kosovar leader Ibrahim Rugova.</font></p>
<p><font face="Courier">"It is now obvious that President Milosevic has chosen confrontation rather than
negotiation," said Minister Axworthy. "Attacks against civilians leave the
international community with no other option than to apply further pressure on
the governments of Yugoslavia and Serbia."</font></p>
<p><font face="Courier">The Minister expressed his wish that the North Atlantic Treaty Organization
(NATO) accelerate its consideration of a full range of possible actions to
prevent further deterioration of the situation in the region. Among the actions
contemplated are preventive deployments in Albania and the Former Yugoslav
Republic of Macedonia (FYROM), as well as joint exercises with these two
countries in order to strengthen their security.</font></p>
<p><font face="Courier">Mr. Axworthy added that Canada is encouraging the United Nations Security Council
to hold urgent discussions on the situation in Kosovo and to provide the
necessary basis for international action aimed at preventing further actions
against the civilian population in the region.</font></p>
<p><font face="Courier">On March 9, Canada announced measures including:</font></p>
<p><font face="Courier"> instructing EDC (Export Development Corporation) to suspend consideration of
export credits for the FRY until further notice;</font></p>
<p><font face="Courier"> suspending discussions with Yugoslav Airlines concerning charter landing rights
in Canada and;</font></p>
<p><font face="Courier"> putting on hold discussions of other bilateral agreements until further notice.</font></p>
<p><font face="Courier">On June 12, the Minister will meet with his G-8 counterparts in London to discuss
a co-ordinated response to this matter.</font></p>
<p align="CENTER"><font face="Courier">- 30 -</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Debora Brown</font></p>
<p><font face="Courier">Office of the Minister of Foreign Affairs</font></p>
<p><font face="Courier">(613) 995-1851</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
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