[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
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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.