[Congressional Record Volume 144, Number 60 (Wednesday, May 13, 1998)]
[Senate]
[Page S4820]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPORT CONCERNING THE NATIONAL EMERGENCY WITH RESPECT TO IRAN--MESSAGE 
                       FROM THE PRESIDENT--PM 126

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Banking, Housing, and 
Urban Affairs.

To the Congress of the United States:
  I hereby report to the Congress on developments since the last 
Presidential report of November 25, 1997, 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 
(IEEPA), 50 U.S.C. 1703(c). This report covers events through March 31, 
1998. My last report, dated November 25, 1997, covered events through 
September 30, 1997.
  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, continues to 
make progress in arbitrating the claims before it. Since the period 
covered in my last report, the Tribunal has rendered one award. This 
brings the total number of awards rendered by the Tribunal to 585, the 
majority of which have been in favor of U.S. claimants. As of March 31, 
1998, the value of awards to successful U.S. claimants paid from the 
Security Account held by the NV Settlement Bank was $2,480,897,381.53.
  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 March 31, 1998, the 
total amount in the Security Account was $125,888,588.35, and the total 
amount in the Interest Account was $21,716,836.85. 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. 
Iran filed its Rejoinder in this case on February 9, 1998.
  3. The Department of State continues to respond to claims brought 
against the United States by Iran, in coordination with concerned 
government agencies.
  On January 16, 1998, the United States filed a major submission in 
Case No. B/1, a case in which Iran seeks repayment for alleged wrongful 
charges to Iran over the life of its Foreign Military Sales (FMS) 
program, including the costs of terminating the program. The January 
filing primarily addressed Iran's allegation that its FMS Trust Fund 
should have earned interest.
  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 16, 1996), the Department of State has been processing 
payments. As of March 31, 1998, the Department of State has authorized 
payment to U.S. nationals totaling $13,901,776.86 for 49 claims against 
Iranian banks. The Department of State has also authorized payments to 
surviving family members of 220 Iranian victims of the aerial incident, 
totaling $54,300,000.
  During this reporting period, the full Tribunal held a hearing in 
Case No. A/11 from February 16 through 18. Case No. A/11 concerns 
Iran's allegations that the United States violated its obligations 
under Point IV of the Algiers Accords by failing to freeze and gather 
information about property and assets purportedly located in the United 
States and belonging to the estate of the late Shah of Iran or his 
close relatives.
  4. U.S. nationals continue to pursue claims against Iran at the 
Tribunal. Since my last report, the Tribunal has issued an award in one 
private claim. On March 5, 1998, Chamber One issued an award in George 
E. Davidson v. Iran, AWD No. 585-457-1, ordering Iran to pay the 
claimant $227,556 plus interest for Iran's interference with the 
claimant's property rights in three buildings in Tehran. The Tribunal 
dismissed the claimant's claims with regard to other property for lack 
of proof. The claimant received $20,000 in arbitration costs.
  5. The situation reviewed above continues to implicate important 
diplomatic, financial, and legal interests of the United States and its 
nationals and presents and 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.
                                                  William J. Clinton.  
  The White House, May 13, 1998.

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