[House Document 106-312]
[From the U.S. Government Publishing Office]
106th Congress, 2d Session - - - - - - - - - - - House Document 106-312
PRESIDENT'S PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
THE 1979 IRANIAN EMERGENCY AND ASSETS BLOCKING
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT
TO IRAN THAT WAS DECLARED BY EXECUTIVE ORDER NO. 12170 OF NOVEMBER 14,
1979, PURSUANT TO 50 U.S.C. 1641(c)
November 14, 2000.--Referred to the Committee on International
Relations and ordered to be printed
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U.S. GOVERNMENT PRINTING OFFICE
89-011 WASHINGTON : 2000
The White House,
Washington, November 9, 2000.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: As required by section 401(c) of the
National Emergencies Act, 50 U.S.C. 1641(c), and section 204(c)
of the International Emergency Economic Powers Act (IEEPA), 50
U.S.C. 1703(c), I transmit herewith a 6-month periodic report
on the national emergency with respect to Iran that was
declared in Executive Order 12170 of November 14, 1979.
Sincerely,
William J. Clinton.
President's Periodic Report on the National Emergency With Respect to
the 1979 Iranian Emergency and Assets Blocking
I hereby report to the Congress on developments since the
last Presidential report of June 21, 2000, 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, 2000. My last
report, dated June 21, 2000, covered events through March 31,
2000.
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, continue to make progress in arbitrating the claims
before it. Since the period covered in my last report, the
Tribunal has rendered one award. This award brings the total
number of awards rendered by the Tribunal to 597, the majority
of which have been in favor of U.S. claimants. As of September
30, 2000, the value of awards to successful U.S. claimants paid
from the Security Account held by the NV Settlement Bank was
$2,509,361,102.01.
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, 2000, the total amount in the
Security Account was $99,718,258.36, and the total amount in
the Interest Account was $41,225,193.27. 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 respond to claims
brought against the United States by Iran, in coordination with
concerned government agencies.
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 17, 1996), the Department of State
has been processing payments. As of September 30, 2000, the
Department has authorized payment to U.S. nationals totaling
$17,721,549.19 for 58 claims against Iranian banks. In
addition, since November 1998, the Department has authorized
transfer of $6,914,792.00 to the Tribunal for payment of Iran's
share of the Tribunal's operating expenses. The Department has
also authorized payments to surviving family members of 247
Iranian victims of the aerial incident, totaling
$61,350,000.00.
On April 7, 2000, the full Tribunal issued a partial award
in Case No. A/11, which concerns U.S. assets associated with
the former Shah. The Tribunal rejected Iran's contention that
the Algiers Accords imposed upon the United States an
``obligation of result'' guaranteeing the success of Iran's
Pahlavi assets litigation in U.S. courts. The Tribunal found
that the United States was not obligated to provide Iran with a
forum to adjudicate the merits of the Pahlavi assets claim that
would be subject to no jurisdictional or procedural defenses.
The Tribunal also held that the United States was not required
to freeze the assets of the estate of the former Shah, because
no such estate ever existed as a legal entity within the United
States. In addition, the Tribunal held that the United States
had no obligation to freeze the assets of the Shah's relatives,
or to order reports on those assets, unless those relatives
were served as defendants in apparent accordance with the
applicable law of the forum. Finally, the Tribunal held that
the United States was obligated to freeze and order reporting
about the assets of certain relatives of the Shah who had been
thus served. In a subsequent proceeding, the Tribunal will
determine whether Iran has established that it suffered a loss
as a result of the United States' failure to comply with some
of these requirements.
4. U.S. nationals continue to pursue claims against Iran at
the Tribunal. Since my last report, however, the Tribunal has
not issued awards in any private claims.
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.