[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[November 10, 1992]
[Pages 2158-2160]
[From the U.S. Government Publishing Office www.gpo.gov]



Letter to Congressional Leaders Reporting on the National Emergency With 
Respect to Iran
November 10, 1992

Dear Mr. Speaker:  (Dear Mr. President:)
    I hereby report to the Congress on developments since the last 
Presidential report on May 14, 1992, concerning the national emergency 
with respect to Iran that was declared in Executive Order No. 12170 of 
November 14, 1979, and matters relating to Executive Order No. 12613 of 
October 29, 1987. This report is submitted pursuant to section 204(c) of 
the International Emergency Economic Powers Act, 50 U.S.C. 1703(c), and 
section 505(c) of the International Security and Development Cooperation 
Act of 1985, 22 U.S.C. 2349aa-9(c). This report covers events through 
October 15, 1992. My last report, dated May 14, 1992, covered events 
through March 31, 1992.
    1. There have been no amendments to the Iranian Transactions 
Regulations (``ITRs''), 31 CFR Part 560, or to the Iranian Assets 
Control Regulations (``IACRs''), 31 CFR Part 535, since my last report.
    2. The Office of Foreign Assets Control (``FAC'') of the Department 
of the Treasury continues to process applications for import licenses 
under the ITRs. However, as previ-

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ously reported, recent amendments to the ITRs have resulted in a 
substantial decrease in the number of applications received relating to 
the importation of nonfungible Iranian-origin goods.
    During the reporting period, the Customs Service has continued to 
effect numerous seizures of Iranian-origin merchandise, primarily 
carpets, for violation of the import prohibitions of the ITRs. FAC and 
Customs Service investigations of these violations have resulted in 
forfeiture actions and the imposition of civil monetary penalties. 
Additional forfeiture and civil penalty actions are under review.
    3. 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 my last report, 
the Tribunal has rendered 5 awards for a total of 533 awards. Of that 
total, 359 have been awards in favor of American claimants: 217 of these 
were awards on agreed terms, authorizing and approving payment of 
settlements negotiated by the parties, and 142 were decisions 
adjudicated on the merits. The Tribunal has issued 34 decisions 
dismissing claims on the merits and 81 decisions dismissing claims for 
jurisdictional reasons. Of the 59 remaining awards, 3 approved the 
withdrawal of cases, and 56 were in favor of Iranian claimants. As of 
September 30, 1992, payments on awards to successful American claimants 
from the Security Account held by the NV Settlement Bank stood at 
$2,046,090,574.01.
    As of September 30, 1992, the Security Account has fallen below the 
required balance of $500 million 35 times. Iran has periodically 
replenished the account, as required by the Algiers Accords, by 
transferring funds from the separate account held by the NV Settlement 
Bank in which interest on the Security Account is deposited. Iran has 
also replenished the Security Account with the proceeds from the sale of 
Iranian-origin oil imported into the United States, pursuant to 
transactions licensed on a case-by-case basis by FAC. Iran has not, 
however, replenished the account since the last oil sale deposit on 
December 3, 1991. The aggregate amount that has been transferred from 
the interest account to the Security Account is $859,472,986.47. As of 
September 30, 1992, the total amount in the Security Account was 
$499,528,936.74, and the total amount in the interest account was 
$17,301,717.98.
    4. The Tribunal continues to make progress in the arbitration of 
claims of U.S. nationals for $250,000.00 or more. Since the last report, 
4 large claims have been decided. More than 85 percent of nonbank claims 
have now been disposed of through adjudication, settlement, or voluntary 
withdrawal, leaving 85 such claims on the docket.
    5. As anticipated by the May 13, 1990, agreement settling the claims 
of U.S. nationals against Iran for less than $250,000.00, the Foreign 
Claims Settlement Commission (``FCSC'') has continued its review of 
3,112 claims. The FCSC has issued decisions in 849 claims, for total 
awards of more than $17 million. The FCSC expects to complete its 
adjudication of the remaining claims in late 1993.
    6. In coordination with concerned Government agencies, the 
Department of State continues to present United States Government claims 
against Iran, as well as responses by the United States Government to 
claims brought against it by Iran.
    7. As anticipated by my last report, the Tribunal terminated Case 
No. A/15 (I:G), the case brought by Iran concerning bank syndicate 
claims against Dollar Account No. 1 at the Federal Reserve Bank of New 
York, on June 12, 1992, on the joint request of the two governments.
    8. Jose Maria Ruda, President of the Tribunal, tendered his 
resignation on October 2, 1992. His resignation will take effect on 
March 31, 1993, or on such later date as his successor becomes available 
to take up his duties.
    9. The situation reviewed above continues to involve 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 IACRs 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

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properly the Algiers Accords. Similarly, the ITRs issued pursuant to 
Executive Order No. 12613 continue to advance important objectives in 
combating international terrorism. 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.
    Sincerely,

                                                             George Bush

                    Note: Identical letters were sent to Thomas S. 
                        Foley, Speaker of the House of Representatives, 
                        and Dan Quayle, President of the Senate.