    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book II)]
    [November 10, 1993]
    [Pages 1950-1951]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on the National Emergency With Respect
    to Iran
    November 10, 1993

    To the Congress of the United States:
        I hereby report to the Congress on developments since the last
    Presidential report on May 14, 1993, 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 1, 1993. The last report, dated May 14, 1993, covered events
    through March 31, 1993.
        1. There have been no amendments to the Iranian Transactions
    Regulations, 31 CFR Part 560, or to the Iranian Assets Control
    Regulations, 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 Iranian Transactions Regulations.
        During the reporting period, the U.S. Customs Service has continued
    to effect numerous seizures of Iranian-origin merchandise, primarily
    carpets, for violation of the import prohibitions of the Iranian
    Transactions Regulations. Office of Foreign Assets Control 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 two awards, both in favor of U.S. claimants.
    Including these decisions, the total number of awards has reached 547,
    of which 369 have been awards in favor of American claimants. Two
    hundred twenty-two of these were awards on agreed terms, authorizing and
    approving payment of settlements negotiated by the parties, and 147 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 September 30, 1993, the value of awards to successful
    American claimants from the Security Account held by the NV Settlement
    Bank stood at $2,351,986,709.40.
        The Security Account has fallen below the required balance of $500
    million almost 50 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 inter-

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    est on the Security Account is deposited. The aggregate amount that has
    been transferred from the Interest Account to the Security Account is
    $874,472,986.47. 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, although the balance fell below $500 million
    on November 5, 1992. As of September 28, 1993, the total amount in the
    Security Account was $213,507,574.15 and the total amount in the
    Interest Account was $5,647,476.98.
        Iran also failed to make scheduled payments for Tribunal expenses on
    April 13 and July 15, 1993. The United States filed a new case
    (designated A/28) before the Tribunal on September 29, 1993, asking that
    the Tribunal order Iran to make its payment for Tribunal expenses and to
    replenish the Security Account.
        4. The Department of State continues to present other United States
    Government claims against Iran, in coordination with concerned
    Government agencies, and to respond to claims brought against the United
    States by Iran. In June and August of this year, the United States filed
    2 briefs and more than 350 volumes of supporting evidence in Case B/1
    (claims 1 and 2), Iran's claim against the United States for damages
    relating to the U.S. Foreign Military Sales Program. On September 29,
    the United States submitted a brief for filing in all three Chambers of
    the Tribunal concerning the Tribunal's jurisdiction over the claims of
    dual nationals who have demonstrated dominant and effective U.S.
    nationality. In addition, the Tribunal issued an order accepting the
    U.S. view that Iran has to support all aspects of its claim in Case A/
    11, in which Iran claims the United States has breached its obligations
    under the Algiers Accords, rather than to ask the Tribunal to first
    decide ``interpretative issues'' separate from the merits of its case.
    In another case, the Tribunal declined Iran's request that it stay a
    case against Iran in U.S. courts for an alleged post-January 1981
    expropriation, where the plaintiffs' case at the Tribunal had been
    dismissed.
        5. As reported in November 1992, 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.
        6. 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 1,568 claims, for total awards of more
    than $28 million. The FCSC expects to complete its adjudication of the
    remaining claims in early 1994.
        7. 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.
    Similarly, the Iranian Transactions Regulations issued pursuant to
    Executive Order No. 12613 continue to advance important objectives in
    combatting 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.

                                                          William J. Clinton

    The White House,
    November 10, 1993.