    [Public Papers of the Presidents of the United States: William J. Clinton (1995, Book I)]
    [May 18, 1995]
    [Pages 703-705]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on the National Emergency With Respect
    to Iran
    May 18, 1995

    To the Congress of the United States:
        I hereby report to the Congress on developments since the last
    Presidential report on November 18, 1994, 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 April 18, 1995. It discusses only matters
    concerning the national emergency with respect to Iran that was declared
    in Executive Order No. 12170 and matters relating to Executive Order No.
    12613. Matters relating to the March 15, 1995, Executive Order regarding
    a ban on investment in the petroleum sector, and the May 6, 1995,
    Executive Order regarding new trade sanctions, will be covered in
    separate reports. My last report, dated November 18, 1994, covered
    events through October 18, 1994.
        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 (``OFAC'') of the Department
    of the Treasury continues to process applications for import licenses
    under the Iranian Transactions Regulations. However, a substantial
    majority of such applications are determined to be ineligible for
    licensing and, consequently, are denied.
        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. OFAC 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. However, since my
    last report, the Tribunal has not rendered any awards although payments
    were received by claimants in late November for awards rendered during
    the prior reporting pe-

    [[Page 704]]

    riod. Thus, the total number of awards remains at 557. Of this total,
    373 have been awards in favor of American claimants. Two hundred twenty-
    five (225) of these were awards on agreed terms, authorizing and
    approving payment of settlements negotiated by the parties, and 150 were
    decisions adjudicated on the merits. The Tribunal has issued 38
    decisions dismissing claims on the merits and 85 decisions dismissing
    claims for jurisdictional reasons. Of the 59 remaining awards, three
    approved the withdrawal of cases and 56 were in favor of Iranian
    claimants. As of April 18, 1995, the Federal Reserve Bank of New York
    reported that the value of awards to successful American claimants from
    the Security Account held by the NV Settlement Bank stood at
    $2,365,160,410.39.
        Iran has not replenished the Security Account since October 8, 1992,
    and the Account has remained continuously below the balance of $500
    million required by the Algiers Accords since November 5, 1992. As of
    April 10, 1995, the total amount in the Security Account was
    $191,219,759.23, and the total amount in the Interest Account was
    $24,959,218.79.
        The United States continues to pursue Case A/28, filed in September
    1993, to require Iran to meet its obligations under the Algiers Accords
    to replenish the Security Account. Iran has yet to file its Statement of
    Defense in that case.
        4. The Department of State continues to present United States
    Government claims against Iran, in coordination with concerned
    government agencies, and to respond to claims brought against the United
    States by Iran.
        On April 18, 1995, the United States filed the first of two parts of
    its consolidated submission on the merits in Case B/61. Case B/61
    involves a claim by Iran for compensation with respect to primarily
    military equipment that Iran alleges it did not receive. The equipment
    was purchased pursuant to commercial contracts with more than 50 private
    American companies. Iran alleges that it suffered direct losses and
    consequential damages in excess of $2 billion in total because of the
    U.S. Government's refusal to allow the export of the equipment after
    January 19, 1981, in alleged contravention of the Algiers Accords. As
    directed by the Tribunal, the United States' submission addresses Iran's
    claims regarding both liability and compensation and damages.
        5. The Foreign Claims Settlement Commission (``FSCS'') on February
    24, 1995, successfully completed its case-by-case review of the more
    than 3,000 so-called ``small claims'' against Iran arising out of the
    1979 Islamic revolution. These ``small claims'' (of $250,000 or less
    each) were originally filed before the Iran-United States Claims
    Tribunal, but were transferred to the FCSC pursuant to the May 13, 1990
    Settlement Agreement between Iran and the United States.
        The FCSC issued decisions on 3,066 claims for total awards of
    $86,555,795. Of that amount, $41,570,936 represented awards of principal
    and $44,984,859 represented awards of interest. Although originally only
    $50 million were available to pay these awards, the funds earned
    approximately $9 million in interest over time, for a total settlement
    fund of more than $59 million. Thus, all awardees will receive full
    payment on the principal amounts of their awards, with interest awards
    paid on a pro rata basis.
        The FCSC's awards to individuals and corporations covered claims for
    both real and personal property seized by Iran. In addition, many claims
    arose out of commercial transactions, including contracts for the sale
    of goods and contracts for the supply of services such as teaching,
    medical treatment, data processing, and shipping. The FCSC is now
    working with the Department of the Treasury to facilitate final payment
    on all FCSC awards.
        6. 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
    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.

                                                          William J. Clinton

    The White House,

    May 18, 1995.

    [[Page 705]]