[House Document 105-252]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-252


 
    DEVELOPMENTS CONCERNING NATIONAL EMERGENCY WITH RESPECT TO IRAN

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT 
TO IRAN THAT WAS DECLARED IN EXECUTIVE ORDER NO. 12170 OF NOVEMBER 14, 
                  1979, PURSUANT TO 50 U.S.C. 1703(c)





    May 13, 1998.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed


To the Congress of the United States:
    I hereby report to the Congress on developments since the 
last Presidential report of November 25, 1997, concerning the 
national emergency with respect to Iran that was declared in 
Executive Order 12170 of November 14, 1979. This report is 
submitted pursuant to section 204(c) of the International 
Emergency Economic Powers Act (IEEPA), 50 U.S.C. 1703(c). This 
report covers events through March 31, 1998. My last report, 
dated November 25, 1997, covered events through September 30, 
1997.
    1. There have been no amendments to the Iranian Assets 
Control Regulations, 31 CFR Part 535 (the ``IACR''), since my 
last report.
    2. The Iran-United States Claims Tribunal (the 
``Tribunal''), established at The Hague pursuant to the Algiers 
Accords, continues to make progress in arbitrating the claims 
before it. Since the period covered in my last report, the 
Tribunal has rendered one award. This brings the total number 
of awards rendered by the Tribunal to 585, the majority of 
which have been in favor of U.S. claimants. As of March 31, 
1998, the value of awards to successful U.S. claimants paid 
from the Security Account held by the NV Settlement Bank was 
$2,480,897,381.53.
    Since my last report, Iran has failed to replenish the 
Security Account established by the Algiers Accords to ensure 
payment of awards to successful U.S. claimants. Thus, since 
November 5, 1992, the Security Account has continuously 
remained below the $500 million balance required by the Algiers 
Accords. As of March 31, 1998, the total amount in the Security 
Account was $125,888,588.35, and the total amount in the 
Interest Account was $21,716,836.85. Therefore, the United 
States continues to pursue Case No. A/28, filed in September 
1993, to require Iran to meet its obligation under the Algiers 
Accords to replenish the Security Account.
    The United States also continues to pursue Case No. A/29 to 
require Iran to meet its obligation of timely payment of its 
equal share of advances for Tribunal expenses when directed to 
do so by the Tribunal. Iran filed its Rejoinder in this case on 
February 9, 1998.
    3. The Department of State continues to respond to claims 
brought against the United States by Iran, in coordination with 
concerned government agencies.
    On January 16, 1998, the United States filed a major 
submission in Case No. B/1, a case in which Iran seeks 
repayment for alleged wrongful charges to Iran over the life of 
its Foreign Military Sales (FMS) program, including the costs 
of terminating the program. The January filing primarily 
addressed Iran's allegation that its FMS Trust Fund should have 
earned interest.
    Under the February 22, 1996, settlement agreement related 
to the Iran Air case before the International Court of Justice 
and Iran's bank-related claims against the United States before 
the Tribunal (see report of May 16, 1996), the Department of 
State has been processing payments. As of March 31, 1998, the 
Department of State has authorized payment to U.S. nationals 
totaling $13,901,776.86 for 49 claims against Iranian banks. 
The Department of State has also authorized payments to serving 
family members of 220 Iranian victims of the aerial incident, 
totaling $54,300,000.
    During this reporting period, the full Tribunal held a 
hearing in Case No. A/11 from February 16 through 18. Case No. 
A/11 concerns Iran's allegations that the United States 
violated its obligations under Point IV of the Algiers Accords 
by failing to freeze and gather information about property and 
assets purportedly located in the United States and belonging 
to the estate of the late Shah of Iran or his close relatives.
    4. U.S. nationals continue to pursue claims against Iran at 
the Tribunal. Since my last report, the Tribunal has issued an 
award in one private claim. On March 5, 1998, Chamber One 
issued an award in George E. Davidson versus Iran, AWD No. 585-
457-1, ordering Iran to pay the claimant $227,556 plus interest 
for Iran's interference with the claimant's property rights in 
three buildings in Teheran. The Tribunal dismissed the 
claimant's claims with regard to other property for lack of 
proof. The claimant received $20,000 in arbitration costs.
    5. The situation reviewed above continues to implicate 
important diplomatic, financial, and legal interests of the 
United States and its nationals and presents an unusual 
challenge to the national security and foreign policy of the 
United States. The Iranian Assets Control Regulations issued 
pursuant to Executive Order 12170 continue to play an important 
role in structuring our relationship with Iran and in enabling 
the United States to implement properly the Algiers Accords. I 
shall continue to exercise the powers at my disposal to deal 
with these problems and will continue to report periodically to 
the Congress on significant developments.

                                                William J. Clinton.
    The White House, May 13, 1998.

                                
