[House Document 107-68]
[From the U.S. Government Publishing Office]
107th Congress, 1st Session - - - - - - - - - - - House Document 107-68
A REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 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)
May 10, 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, May 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 March
31, 2001.
1. 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 the last report, the
Tribunal has rendered one award as well as one decision. This
brings the total number of awards rendered by the Tribunal to
598, the majority of which have been in favor of U.S.
claimants. As of March 31, 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 has continued 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 March 31, 2001, the
total amount in the Security Account was $93,246,103.11, and
the total amount in the Interest Account was $45,691,423.82. On
December 19, 2000, the Tribunal issued its decision in Case 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. The United States continues to pursue Case 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 Judge Bengt Broms as a third-country
arbitrator. The challenge stated that for many years the United
States has harbored serious doubts as to the impartiality and
independence of Mr. Broms and that his Concurring and
Dissenting Opinion in Case A/28 confirmed the justifiability of
those doubts and demonstrated his unfitness to continue as a
member of the Tribunal. In accordance with the Tribunal Rules
of Procedure, the challenge was referred to the Appointing
Authority, Sir Robert Jennings. Iran and Mr. Broms responded to
and opposed the challenge on February 15 and February 22, 2001,
respectively. On March 10, 2001, the United States replied to
those submissions, noting that Mr. Broms' response confirmed
the doubts of the United States as to his impartiality and
provided sound grounds for a second challenge. Iran filed its
rejoinder to the United States response on April 3.
2. 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 March 31, 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
$7,807,990.25 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 March 15, Iran filed its 5-volume Brief and Evidence
Concerning All Remaining Issues in Case A/15(IV) and A/24,
Iran's claim against the United States Government for its
alleged breach of the U.S. obligation in the Algiers Accords to
terminate all litigation against Iran. The Tribunal ordered
Iran to file this submission to provide further legal arguments
and evidence concerning both liability and damages.
3. U.S. nationals continue to pursue claims against Iran at
the Tribunal. Since the last report, the Tribunal has issued
one award in a private claim. On November 28, 2000, Chamber Two
issued the final award in Aram Sabet, et al. v. Iran, AWD. No.
598-815/816/817-2, awarding the claimants a total of
$6,382,433.70 as the value of the claimants' ownership
interests in various entities as a consequence of Iran's
expropriation of those interests.
4. 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.