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<title>AXWORTHY ANNOUNCES MEASURES IN RESPONSE TO THE VIOLENCE IN KOSOVO</title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">March 9, 1998 No. 48</font></p>
<p align="CENTER"><font face="Univers" size="+2">AXWORTHY ANNOUNCES MEASURES </font></p>
<p align="CENTER"><font face="Univers" size="+2">IN RESPONSE TO THE VIOLENCE IN KOSOVO</font></p>
<p><font face="Courier">Foreign Affairs Minister Lloyd Axworthy today announced that due to recent events
in Kosovo, and Yugoslav President Milosevic's unwillingness to pursue a peaceful
path there, Canada had no choice but to pursue a number of measures with the hope
of prompting the Government of the Federal Republic of Yugoslavia (FRY) to take
steps to resolve the Kosovo issue peacefully.</font></p>
<p><font face="Courier">These measures include:</font></p>
<p><font face="Courier"> to instruct EDC (Export Development Corporation of Canada) to suspend
consideration of export credits for the Federal Republic of Yugoslavia until
further notice;</font></p>
<p><font face="Courier"> to suspend discussions concerning charter landing rights in Canada with
Yugoslav Airlines; and</font></p>
<p><font face="Courier"> to put on hold discussions on other bilateral agreements until further notice.</font></p>
<p><font face="Courier">"The continuing repression and violence in Kosovo by Serbian security forces
intensified the Federal Republic of Yugoslavia's international isolation and
damaged its bilateral relations with Canada," said Minister Axworthy.</font></p>
<p><font face="Courier">Canada will continue and enhance a number of measures that are in place with
respect to the Federal Republic of Yugoslavia. Included in these measures are
Canada's rejection of arms exports to Yugoslavia, if they are likely to
exacerbate the conflict in Kosovo or the Balkans region; a closer focus on
democratic development and human rights projects in Kosovo through the Canada
Fund, currently administered by Canada's Embassy in Belgrade; and Canada's
continuing to consider appeals for humanitarian assistance for Kosovo. Canada
will also consult with its allies to determine further multilateral measures and </font></p>
<p><font face="Courier">co-ordinate humanitarian assistance activities with other donors and
international organizations.</font></p>
<p><font face="Courier">"The responsibility for lifting these measures lays squarely with President
Milosevic," said Mr. Axworthy. "Canada will review today's measures and be
willing to assist the FRY in integrating into the international community, if
President Milosevic takes steps to enter into a dialogue with the Kosovar
Albanians over the status of Kosovo."</font></p>
<p><font face="Courier">Mr. Axworthy recalled his meeting with former FRY Foreign Minister Milan
Milutinovic, now President of Serbia, in April 1996, when Mr. Axworthy had warned
that the pace and scope of Canada's bilateral relations would depend upon the
FRY's progress on human rights in general, and on peacefully resolving the Kosovo
issue.</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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