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U.S. Department of State Office of the Spokesman Press Statement

Press Statement by James P. Rubin, Spokesman
February 8, 1999

U.S. Condemns Takeover Of ICN

The United States Government strongly condemns the Serbian Government takeover of the ICN Yugoslavia pharmaceutical company. ICN Yugoslavia is majority owned by ICN Pharmaceuticals Incorporated, a United States company.

The United States Government responds whenever the property interests of U.S. businesses or individuals are damaged by a foreign government in violation of international law. We are very concerned that this might be the case in this instance. Our concern is heightened by the political nature of the Serbian Government’s action. It is clear that the takeover of ICN Yugoslavia was an improper attempt to silence Milan Panic, the Serbian American businessman who is the President of ICN Pharmaceuticals, and who has been at the forefront of democratic opposition to the Milosevic regime. This is the latest attack by Belgrade against those working to bring democracy to Serbia, which has also included attacks on Serbian universities, the democratically elected Government of Montenegro, and the opposition media. It is clear that the Milosevic regime is attempting to avoid payment of over 175 million dollars owed to ICN Yugoslavia for medicines provided to the state health care system. The fact that this takeover occurred at the same time that the Kosovo peace talks opened in Rambouillet indicates that Milosevic has not abandoned his tactic of taking new repressive measures when he hopes the world’s attention has been diverted by another crisis of his making.

The United States Government demands that the Serbian Government cease its actions against ICN Yugoslavia. We will continue to press this issue in Belgrade and Washington at the highest levels.

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