[House Document 107-148]
[From the U.S. Government Publishing Office]



                                     

107th Congress, 1st Session - - - - - - - - - - - House Document 107-148


 
   6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY REGARDING IRAN

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
 IRAN THAT WAS DECLARED IN EXECUTIVE ORDER 12170 OF NOVEMBER 14, 1979, 
                     PURSUANT TO 50 U.S.C. 1641(c)




  November 13, 2001.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
To the Congress of the United States:
    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, 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.

                                                    George W. Bush.
    The White House, November 9, 2001.
 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 over the 
past six months 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, 2001.
    1. On July 25, 2001, the Iranian Assets Control 
Regulations, 31 CFR Part 535 (``IACR'') (66 FR 38553), were 
amended to conform certain provisions relating to custodians of 
property in which Iran has an interest to rulings of the Iran-
United States Claims Tribunal (``the Tribunal''). In 
particular, the regulations state that obligations or liens on 
property do not disqualify the property from IACR requirements 
that the property be returned to Iran if the property is 
otherwise subject to the requirements of the IACR. A copy of 
the amendment is attached.
    2. 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 the last report, 
the Tribunal has rendered one award. This brings the total 
number of awards rendered by the Tribunal to 599, the majority 
of which have been in favor of U.S. claimants. As of September 
30, 2001, the value of awards to successful U.S. claimants paid 
from the Security Account held by the NV Settlement Bank was 
$2,515,743,535.71.
    Since the last report, Iran continues to fail 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, 2001, the total amount in the 
Security Account was $93,246,103.11, and the total amount in 
the Interest Account was $49,224,241.14. On December 19, 2000, 
the Tribunal issued its decision in Case No. A/28, holding that 
Iran has been in non-compliance with its replenishment 
obligation since late 1992. The Tribunal declined to issue an 
order directing Iran to replenish the Security Account but 
stated its expectation that Iran would comply with its 
obligation. Because Iran continues to fail to comply, on August 
30, 2001, the United States submitted a Request for an Order 
that Iran Replenish the Security Account. On September 17, 
2001, the Tribunal dismissed this Request.
    The United States 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.
    On January 4, 2001, the United States filed a challenge to 
the continued tenure of Bengt Broms of Finland as a member of 
the Tribunal because of justifiable doubts of the United States 
about Judge Broms' impartiality and independence and his 
unfitness to serve. This challenge was denied by the Appointing 
Authority on May 7, 2001. The decision, however, noted Judge 
Broms' ``most serious error'' and cautioned that ``repetition 
in a future case could do great harm to the usefulness of the 
Tribunal's deliberations.''
    3. The Department of State continues to process payments to 
implement 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. As of September 30, 2001, 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 
$9,539,973.00 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 September 26, 2001 the United States filed a 57-volume 
Response of the United States to Claimant's Brief and Evidence 
in Cases Nos. A/15(II:A), A/26 and B/43. In these consolidated 
cases, Iran claims the United States breached the Algiers 
Accords by failing to arrange for the transfer to Iran of 
allegedly Iranian property in the hands of private individuals 
and entities in the United States or otherwise subject to U.S. 
jurisdiction.
    Subsequent to the previously reported Partial Award in Case 
No. A/11 (April 7, 2000), Iran has requested that the Tribunal 
order the United States to conduct a search of the files of an 
unspecified number of offices of the United States Government 
for any documents or information pertaining to financial 
transactions involving sixty individuals who had been named in 
Iran's litigation in U.S. courts. The United States filed its 
opposition to Iran's request on September 28, 2001.
    4. U.S. nationals continue to pursue claims against Iran at 
the Tribunal. Since the last report, the Tribunal has issued an 
Award on Agreed Terms in Avco Corp. v. Iran Aircraft 
Industries, et al., AWD 599-261-3, confirming a settlement 
agreement signed by the parties on May 31, 2001.
    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.


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