[Congressional Record Volume 142, Number 69 (Thursday, May 16, 1996)]
[House]
[Pages H5261-H5264]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 CONTINUING NATIONAL EMERGENCY WITH RESPECT TO IRAN--MESSAGE FROM THE 
          PRESIDENT OF THE UNITED STATES (H. DOC. NO. 104-214)

  The SPEAKER pro tempore laid before the House the following message 
from the President of the United States; which was read and, together 
with the accompanying papers, without objection, referred to the 
Committee on International Relations and ordered to be printed:

To the Congress of the United States:
  I hereby report to the Congress on developments since the last 
Presidential report of November 28, 1995, concerning the national 
emergency with respect to Iran that was declared in Executive Order No. 
12170 of November 14, 1979. This report is submitted pursuant to 
section 204 of the International Emergency Economic Powers Act, 50 
U.S.C. 1703(c). This report covers events through March 1, 1996. My 
last report, dated November 28, 1995, covered events through September 
29, 1995.
  1. Effective March 1, 1996, the Department of the Treasury's Office 
of Foreign Assets Control (``FAC'') amended the Iranian Assets Control 
Regulations, 31 CFR Part 535 (``IACR''), to reflect changes in the 
status of litigation brought by Iran against close relatives of the 
former Shah of Iran seeking the return of property alleged to belong to 
Iran (61 Fed. Reg. 8216, March 4, 1996). In 1991, Shams Pahlavi, sister 
of the former Shah of Iran, was identified in section 535.217(b) of the 
IACR as a person whose assets were blocked based on proof of service 
upon her in litigation of the type described in section 535.217(a). 
Pursuant to that provision, all property and assets located in the 
United States within the possession or control of Shams Pahlavi were 
blocked until all pertinent litigation against her was finally 
terminated. Because the litigation has been finally terminated, 
reference to Shams Pahlavi has

[[Page H5262]]

been deleted from section 535.217(b). A copy of the amendment is 
attached to this report.
  2. The Iran-U.S. Claims Tribunal, established at The Hague pursuant 
to the Algiers Accords, continues to make progress in arbitrating the 
claims before it. Since my last report, the Tribunal has rendered one 
award, bringing the total number to 567. The majority of those awards 
have been in favor of U.S. claimants. As of March 1996, the value of 
awards to successful U.S. claimants from the Security Account held by 
the NV Settlement Bank was $2,376,010,041.91.
  In February 1996, Iran deposited funds into the Security Account, 
established by the Algiers Accords to ensure payment of awards to 
successful U.S. claimants for the first time since October 8, 1992. The 
Account was credited $15 million on February 22, 1996. However, the 
Account has remained continuously below the $500 million balance 
required by the Algiers Accords since November 5, 1992. As of March 1, 
1996, the total amount in the Security Account was $195,370,127.71, and 
the total amount in the Interest Account was $37,055,050.92.
  Therefore, the United States continues to pursue Case A/28, filed in 
September 1993, to require Iran to meet its obligations under the 
Algiers Accords to replenish the Security Account. Iran filed its 
Statement of Defense in that case on August 30, 1995. The United States 
filed a Reply on December 4, 1995. Iran is scheduled to file its 
Rejoinder on June 4, 1996.
  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.
  In November 1995, Iran filed its latest Response concerning the 
United States Request to Dismiss Certain Claims from Case B/61. The 
United States had filed its Request to Dismiss in August 1995 as part 
of its consolidated submission on the merits. Iran had previously filed 
its initial response in July 1995, and the United States filed a reply 
in August 1995. Case B/61 involves a claim by Iran for compensation 
with respect to primarily military equipment that Iran alleges it did 
not receive. Iran had sought to purchase or repair the equipment 
pursuant to commercial contracts with more than 50 private American 
companies. Iran alleges that it suffered direct losses and 
consequential damages in excess of $2 billion in total because of the 
United States Government refusal to allow the export of the equipment 
after January 19, 1981, in alleged contravention of the Algiers 
Accords. Iran's November 1995 filing failed to show why the Tribunal 
should not dismiss immediately certain duplicative or otherwise 
improperly pleaded claims from Case B/61.
  In December 1995, the Department of State represented the United 
States in hearings before the Tribunal on two government-to-government 
claims. In the first, Chamber Two heard oral arguments in Case B/36, 
the U.S. claim against Iran for its failure to honor debt obligations 
created by the sale of military surplus property to Iran shortly after 
the Second World War. In the second, also before Chamber Two, the 
Department of State presented the U.S. defense in Case B/58, Iran's 
claim that the United States is liable for damage caused to the Iranian 
State Railways during the Second World War.
  In January 1996, in Case B/1 (Claims 2 & 3), Iran filed its Rebuttal 
Memorial Concerning Responsibility for Termination Costs, along with 20 
volumes of exhibits and affidavits. In this briefing stream, the 
Tribunal is asked to decide whether Iran or the United States is liable 
for the costs arising from the termination of the U.S.-Iran Foreign 
Military Sales program after Iran's default and its subsequent seizure 
of the U.S. embassy in Tehran in 1979. The United States is currently 
preparing a comprehensive response to Iran's brief.
  In February 1996, the Departments of State and Justice represented 
the United States in a hearing before the full Tribunal in a 
government-to-government claim filed by Iran. Case A/27 is an 
interpretive dispute in which Iran claims that the United States is 
liable under the Algiers Accords for Tribunal awards issued in favor of 
Iran against U.S. nationals. The United States maintains that its 
obligation under the Algiers Accords is satisfied by the availability 
of domestic judicial procedures through which Iran can enforce awards 
in its favor.
  Also in February 1996, Iran and the United States settled Iran's 
claims against the United States filed before the International Court 
of Justice concerning the July 3, 1988, downing of Iran Air 655 and 
certain of Iran's claims against the United States filed before the 
Iran-United States Tribunal concerning certain banking matters. The 
cases in question were dismissed from the International Court of 
Justice and the Iran-United States Tribunal on February 22, 1996. The 
settlement, inter alia, fulfills President Reagan's 1988 offer to make 
ex gratia payments to the survivors of the victims of the Iran Air 
shootdown. The survivors of each victim of the Iran Air shootdown will 
be paid $300,000 (for wage-earning victims) or $150,000 (for non-wage-
earning victims). For this purpose, $61 million was deposited with the 
Union Bank of Switzerland in Zurich in an account jointly held by the 
New York Federal Reserve Bank, acting as fiscal agent of the United 
States, and Bank Markazi, the central bank of Iran. Of an additional 
$70 million in the settlement package, $15 million was deposited in the 
Security Account established as part of the Algiers Accords. The 
remaining $55 million was deposited in an account at the New York 
Federal Reserve Bank, from which funds can be drawn only (1) for 
deposits into the Security Account used to pay Tribunal awards to 
American claimants or for the payment of Iran's share of the operating 
expenses of the Tribunal, or (2) to pay debts incurred before the date 
of settlement and owed by Iranian banks to U.S. nationals. Under the 
terms of the settlement, no money will be paid to the Government of 
Iran.
  4. Since my last report, the Tribunal has issued one important award 
in favor of a U.S. national considered a dual U.S.-Iranian national by 
the Tribunal. On November 7, 1995, Chamber Three issued a significant 
decision in Claim No. 213, Dadras Int'l and Per-Am Construction Corp. 
v. The Islamic Republic of Iran, awarding a dual national claimant $3.1 
million plus interest for architectural work performed for an Iranian 
government agency developing a housing complex outside Tehran, Iran.
  The Tribunal held hearings in four large private claims. On October 
23-27, 1995, Chamber One held a hearing in Claim No. 432, Brown & Root, 
Inc. v. The Iranian Navy, involving contract amounts owed in connection 
with the construction of the Iranian Navy Chahbahar and Bandar Projects 
in Iran. On January 18-19, 1996, Chamber One held a second hearing in 
Claim Nos. 842, 843, and 844, Vera Aryeh, et al. v. The Islamic 
Republic of Iran, in which allegations of fraud and forgery were 
considered. Finally, the United States Government filed a Memorial on 
the Application of the Treaty of Amity to Dual United States-Iranian 
Nationals in three private claims before the Tribunal: Claim No. 485, 
Riahi v. The Islamic Republic of Iran, in Chamber One on January 29, 
1996; Claim No. 953, Hakim v. The Islamic Republic of Iran, in Chamber 
Two on February 27, 1996; and Claim No. 266, Aryeh, et al. v. The 
Islamic Republic of Iran, in Chamber Three on February 29, 1996. The 
Memorial argues that a good faith interpretation of the ordinary 
meaning of the 1955 Treaty of Amity leads to the conclusion that it 
protects all persons deemed to be U.S. nationals under U.S. laws when 
they undertake activities in Iran, regardless of whether they also 
possess another nationality.
  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 No. 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.

                                                  William J. Clinton.  
  The White House, May 16, 1996.

[[Page H5263]]



                     IN MEMORY OF ADM. MIKE BOORDA

  (Mr. HOYER asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. HOYER. Mr. Speaker, I rise with a great deal of sadness and I 
know that every Member of the House joins me.
  A little earlier our colleague, Jack Murtha, rose to announce the 
tragic news of the death of Adm. Jeremy Boorda, known to many of us as 
Mike Boorda. Mike Boorda is a historic figure. He is the only Chief of 
Naval Operations to have entered at the very lowest level of the Naval 
ranks and rise to a four-star admiral and Chief of Naval Operations.
  At this time we do not know all the facts surrounding the untimely 
death at approximately noontime today. But what we do know is that the 
Nation has lost one of its finest men, one of its finest soldiers, one 
of its finest sailors, one of its finest leaders.
  Mike Boorda was a sailor's sailor. Mike Boorda was an American's 
American. He was a success story. He was, in sum, an individual for 
whom all of us could have the greatest respect and deepest affection.
  Mr. Speaker, it is with unrestrained sadness and grief that I rise to 
express to all of the men and women of the U.S. Navy and all of the men 
and women of our armed services an empathy of personal loss to each of 
us in this House and to our Nation.
  Mr. Speaker, I yield to my friend, the gentleman from Washington, 
Norman Dicks.
  Mr. DICKS. I appreciate the gentleman yielding.
  Mr. Speaker, I want to compliment him for taking the floor and his 
very sensitive remarks. Mike Boorda and his wife Betty were friends of 
mine. They paid a great honor to my wife and I by coming out to the 
commissioning of the U.S.S. Ranier in Bremerton. I have never met a 
finer sailor or a person of whom I was more proud, someone who had come 
up through the ranks as an enlisted person to become the Chief of Naval 
Operations, the first time that has ever happened.
  He was a tremendous leader, a person who cared deeply about the 
sailors, the people in the Navy and how these long deployments affected 
them and their families.

                             {time}   1700

  He was a tremendous leader. My heart goes out to his family. This is 
a tragedy. We have lost a great leader of the U.S. Navy, someone who 
will be missed.
  I just want to commend my friend, Congressman Hoyer, for taking this 
time. Mike Boorda will be missed, and is someone that has served our 
country well. I appreciate the gentleman for taking this special order.
  Mr. HOYER. I thank the gentleman for his comments, and I will be glad 
to yield to the gentleman from Connecticut.
  Mr. GEJDENSON. Mr. Speaker, I appreciate the gentleman yielding to 
me.
  My district is one that has the naval submarine base in Groton. It is 
something we are all very proud of. The loss that we all feel, the 
previous speakers have expressed it, there was no one who had a better 
sense of the average sailor, to the complex overview of the entire 
structure of the Navy. I have never met anybody who was more broadly 
admired or anyone who did the job that he did. He will be missed by our 
community, those in the Navy, and those outside the Navy who worked 
with him as well. It is a great loss for the Navy family, and for the 
country as a whole.
  Mr. HOYER. I thank the gentleman, and I yield to my friend from 
Georgia.
  Mr. LINDER. Mr. Speaker, I thank the gentleman for yielding.
  I did not know Mike Boorda personally, but I knew of him and followed 
a career that was meteoric. I heard of this this afternoon, standing 
back there talking to Ron Dellums, and he was crushed, as was I. Our 
Nation is going to suffer a great and tragic loss. Our side, as well as 
yours, is going to miss this great man.
  Mr. HOYER. Mr. Speaker, I thank the gentleman for his comments, and 
would echo his words, that there is no partisanship in the grief. Each 
and every one of us in this House, representing every American, will 
grieve for the loss of such a brave and gracious and warm and capable 
human being.
  I am glad to yield to my friend from Indiana.
  Mr. McINTOSH. Mr. Speaker, I too wish to express a sense of deep loss 
and regret. When the news traveled through our office, I did not 
personally know Admiral Boorda, but my father-in-law, Captain Robert 
McManis, served with him in the Navy in his 30 years, and he often told 
me of the admirable traits that Admiral Boorda brought to that job, of 
his true and deep compassion for the sailors in our Navy, of his 
abiding faith in the U.S. Navy, as the defender of freedom in this 
country. And I appreciate your kind words in expressing on behalf of 
all of us here in Congress that deep sense of loss and regret that came 
to us when we heard of this tragedy today.
  Mr. HOYER. Mr. Speaker, I am glad to yield to my friend from Florida, 
Mr. Scarborough.
  Mr. SCARBOROUGH. Mr. Speaker, I thank the gentleman from Maryland.
  As someone that has NAS Pensacola in our district and CSS, and 
somebody that actually was with CNO this past weekend in Pensacola, it 
is a great loss to the entire naval community. He took time out of his 
busy schedule to come down and help us open up with President Bush the 
Naval Air Museum. The genuine affection that the people of Pensacola 
and the entire naval community had for Mike Boorda was just 
overwhelming that night.
  Let me just say something in closing. It was not an easy job that 
Admiral Boorda had. There is a lot of conflict in the Navy, and a lot 
of social problems. It was a difficult time that the Navy was going 
through.
  I just want to go on record as saying I could not think of a man, any 
man or woman in the Navy, that I would rather have guide the Navy 
through those difficult times. He always carried himself with a 
tremendous amount of dignity, and I had a great deal of respect for 
him. We will sorely miss him in Pensacola and throughout the naval 
community.
  Mr. HOYER. I thank the gentleman for his remarks.
  I yield to my friend from New Mexico, Mr. Richardson.
  Mr. RICHARDSON. I thank the gentleman for yielding.
  I, too, knew Admiral Boorda. We had several dealings on a variety of 
national security and foreign policy issues. He was an outstanding man. 
He was always up front. He was candid, he was honest, he was gracious, 
as you described him, and I wish to participate in mourning his great 
loss to the country.
  Mr. HOYER. Mr. Speaker, I yield to the gentleman from Hawaii.
  Mr. ABERCROMBIE. Mr. Speaker, as has been stated, Admiral Boorda 
served this Nation with honor and distinction and carried out his 
duties in that manner, and we are required on this sad day to carry out 
ours.
  Mr. HOYER. I thank the gentleman.
  I will now yield to my friend from Mississippi, General Montgomery, 
who is one of the Members of this House who knows the armed services 
the best, who serves as one of our highest ranking members of the 
Committee on National Security, and in that capacity has dealt very 
closely with and knows very well our late friend, Admiral Boorda.
  Mr. MONTGOMERY. Mr. Speaker, I thank the gentleman for yielding and 
for taking this time.
  Really, I feel like I have just lost a brother. He was close to all 
of us. It is just a terrible shock, this sadness that it happened. 
Admiral Boorda, as has been mentioned here, of course, was an enlisted 
person and went up through the ranks.
  I had the opportunity to go with him to about three different bases, 
and he would not come to your base unless you would give an hour's time 
to be with the enlisted personnel. They would sit there and they would 
give him problems, and I saw him solve the problems, right in that 
base, right on the scene. No question about it, he was probably one of 
the most popular naval officers that we have ever had in the Navy.
  I even, and I am sure the gentleman tried too, after he retired where 
he might move and live, his father died in the naval home down on the 
Mississippi Gulf Coast, and Admiral Boorda every week, flying a 
commercial flight, would come down to see his father when he was sick. 
He liked that

[[Page H5264]]

area, Admiral Boorda did, and he thought about moving down there after 
his retirement.
  I thank the gentleman for taking the time. This is a great tragedy to 
our Nation.
  Mr. HOYER. Mr. Speaker, in ending, let me simply say that from time 
to time we lose individuals who are very special, very unique who have 
made an extraordinary contribution to their country and to their fellow 
citizens. Admiral Jeremy ``Mike'' Boorda was one of those.
  May God bless him, and may God keep and bless his family.

                          ____________________