    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [May 14, 1993]
    [Pages 669-671]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on the National Emergency With Respect
    to Iran
    May 14, 1993

    To the Congress of the United States:
        I hereby report to the Congress on developments since the last
    Presidential report on November 10, 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

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    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 March 31, 1993.
    The last report, dated November 10, 1992, covered events through October
    15, 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 the 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 previously 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 the last
    report, the Tribunal has rendered 12 awards, for a total of 545 awards.
    Of that total, 367 have been awards in favor of American claimants: 222
    of these were awards on agreed terms, authorizing and approving payment
    of settlements negotiated by the parties, and 145 were decisions
    adjudicated on the merits. The Tribunal has issued 36 decisions
    dismissing claims on the merits and 83 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
    March 31, 1993, awards to successful American claimants from the
    Security Account held by the NV Settlement Bank stood at
    $2,340,072,357.77.
        As of March 31, 1993, the Security Account has fallen below the
    required balance of $500 million 36 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 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 October 8,
    1992. The aggregate amount that has been transferred from the Interest
    Account to the Security Account is $874,472,986.47. As of March 31,
    1993, the total amount in the Security Account was $216,244,986.03, and
    the total amount in the Interest Account was $8,638,133.15.
        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,
    nine large claims have been decided. More than 85 percent of the nonbank
    claims have now been disposed of through adjudication, settlement, or
    voluntary withdrawal, leaving 76 such claims on the docket. The larger
    claims, the resolution of which has been slowed by their complexity, are
    finally being resolved, sometimes with sizable awards to the U.S.
    claimants. For example, two claimants were awarded more than $130
    million each by the Tribunal in October 1992.
        5. As anticipated by the May 13, 1990, agreement settling the claims
    of U.S. nationals 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 1,201 claims, for total awards
    of more than $22 million. The FCSC expects to complete its adjudication
    of the remaining claims in early 1994.
        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. In November 1992, the United States
    filed 25 volumes of supporting information in case B/1 (Claims 2 & 3),
    Iran's claim against the United States for damages relating to its
    Foreign Military Sales Program. In February of this year, the United
    States participated in a daylong prehearing conference in several other
    cases involving military equipment. Iran also filed a new interpretative
    dispute alleging that the failure of U.S. courts to enforce an award

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    against a U.S. corporation violated the Algiers Accords.
        7. As reported in November, Jose Maria Ruda, President of the
    Tribunal, tendered his resignation on October 2, 1992. No successor has
    yet been named. Judge Ruda's resignation will take effect as soon as a
    successor becomes available to take up his duties.
        8. The situation reviewed above continues to involve important
    diplomatic, financial, and legal interests of the United States and its
    nationals. Iran's policy behavior presents challenges 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 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
    exercise the powers at my disposal to deal with these problems and will
    report periodically to the Congress on significant developments.

                                                          William J. Clinton

    The White House,
    May 14, 1993.