[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.

                                  
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