[House Document 105-332]
[From the U.S. Government Publishing Office]




105th Congress, 2d Session - - - - - - - - - - - House Document 105-332


 
          DEVELOPMENTS CONCERNING NATIONAL EMERGENCY WITH IRAN

                               __________

                             COMMUNICATION

                                  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)




    December 17, 1998.--Referred to the Committee on International 
                  Relations and ordered to be printed

                               --------

                    U.S. GOVERNMENT PRINTING OFFICE                    
69-011                     WASHINGTON : 1998


                                           The White House,
                                     Washington, November 16, 1998.
Hon. Newt Gingrich,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I hereby report to the Congress on 
developments since the last Presidential report of May 13, 
1998, 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, 50 U.S.C. 
1703(c) (IEEPA). This report covers events through September 
30, 1998. My last report, dated May 13, 1998, covered events 
through March 31, 1998.
    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 three awards. This brings the total 
number of awards rendered by the Tribunal to 588, the majority 
of which have been in favor of U.S. claimants. As of September 
30, 1998, the value of awards to successful U.S. claimants paid 
from the Security Account held by the NV Settlement Bank was 
$2,501,515,655.22.
    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 September 30, 1998, the total amount in the 
Security Account was $107,563,705.15, and the total amount in 
the Interest Account was $26,226,833.16. 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.
    3. The Department of State continues to present other 
United States Government claims against Iran and to respond to 
claims brought against the United States by Iran, in 
coordination with concerned government agencies.
    On April 20, 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 April filing addressed 
liability for the costs arising out of termination of the FMS 
program.
    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 September 30, 1998, 
the Department has authorized payment to U.S. nationals 
totaling $17,521,261.89 for 55 claims against Iranian banks. 
The Department has also authorized payments to surviving family 
members of 228 Iranian victims of the aerial incident, totaling 
$56,550,000.
    On June 5, 1998, the full Tribunal issued an award in Case 
No. A/27. The Tribunal held that, because of decisions of a 
United States District Court and Court of Appeals declining to 
enforce the Tribunal's July 1988 award to Iran in Avco v. Iran, 
the United States violated its obligation under the Algiers 
Accords to ensure that Tribunal awards be treated as binding.
    On June 17, 1998, the Tribunal issued an order in Case No. 
B/61, in which Iran seeks compensation for the alleged non-
transfer of certain military property. The order dismissed 
certain claims on grounds that they were duplicative of claims 
in other cases.
    In Case No. A/30, a case in which Iran alleges that the 
United States has violated paragraphs 1 and 10 of the General 
Declaration of the Algiers Accords, based on an alleged covert 
action program aimed at Iran and U.S. sanctions, the United 
States and Iran filed submissions in response to Iran's request 
that the Tribunal require the United States to produce 
classified intelligence information.
    4. U.S. nationals continue to pursue claims against Iran at 
the Tribunal. Since my last report, the Tribunal has issued 
awards in two private claims. On July 2, 1998, Chamber Two 
issued an award in Kamran Hakim v. Iran, AWD No. 587-953-2, 
ordering Iran to pay the claimant $691,611 plus interest as 
compensation for measures that deprived the claimant of his 
interest in a company he had established. The Tribunal 
dismissed claims regarding parcels of real property on grounds 
that, in certain instances, the claimant failed to prove 
expropriation or other measures affecting property rights, and 
failed in other instances to prove ownership.
    On July 8, 1998, Chamber One issued an award in Brown & 
Root, Inc. v. Iran, AWD No. 588-432-1, giving effect to a 
settlement agreement between the parties, ordering Iran to pay 
the claimant $16,718,214.
    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.
            Sincerely,
                                                William J. Clinton.

                                
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