[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- [[Page 1951]] 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.