    [Public Papers of the Presidents of the United States: William J. Clinton (1998, Book I)]
    [May 13, 1998]
    [Pages 748-749]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Reporting on the National Emergency With Respect
    to Iran
    May 13, 1998

    To the Congress of the United States:
        I hereby report to the Congress on developments since the last
    Presidential report of November 25, 1997, concerning the national
    emergency with respect to Iran that was declared in Executive Order
    12170 of November 14, 1979. This report is submitted pursuant to section
    204(c) of the International Emergency Economic Powers Act (IEEPA), 50
    U.S.C. 1703(c). This report covers events through March 31, 1998. My
    last report, dated November 25, 1997, covered events through September
    30, 1997.
        1. There have been no amendments to the Iranian Assets Control
    Regulations, 31 CFR Part 535 (the ``IACR''), since my last report.
        2. 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 period
    covered in my last report, the Tribunal has rendered one award. This
    brings the total number of awards rendered by the Tribunal to 585, the
    majority of which have been in favor of U.S. claimants. As of March 31,
    1998, the value of awards to successful U.S. claimants paid from the
    Security Account held by the NV Settlement Bank was $2,480,897,381.53.
        Since my last report, Iran has failed to replenish the Security
    Account established by the Algiers Accords to ensure payment of awards
    to successful U.S. claimants. Thus, since November 5, 1992, the Security
    Account has continuously remained below the $500 million balance
    required by the Algiers Accords. As of March 31, 1998, the total amount
    in the Security Account was $125,888,588.35, and the total amount in the
    Interest Account was $21,716,836.85. Therefore, the United States
    continues to pursue Case No. A/28, filed in September 1993, to require
    Iran to meet its obligation under the Algiers Accords to replenish the
    Security Account.
        The United States also continues to pursue Case No. A/29 to require
    Iran to meet its obligation of timely payment of its equal share of
    advances for Tribunal expenses when directed to do so by the Tribunal.
    Iran filed its Rejoinder in this case on February 9, 1998.

    [[Page 749]]

        3. The Department of State continues to respond to claims brought
    against the United States by Iran, in coordination with concerned
    government agencies.
        On January 16, 1998, the United States filed a major submission in
    Case No. B/1, a case in which Iran seeks repayment for alleged wrongful
    charges to Iran over the life of its Foreign Military Sales (FMS)
    program, including the cost of terminating the program. The January
    filing primarily addressed Iran's allegation that its FMS Trust Fund
    should have earned interest.
        Under the February 22, 1996, settlement agreement related to the
    Iran Air case before the International Court of Justice and Iran's bank-
    related claims against the United States before the Tribunal (see report
    of May 16, 1996), the Department of State has been processing payments.
    As of March 31, 1998, the Department of State has authorized payment to
    U.S. nationals totaling $13,901,776.86 for 49 claims against Iranian
    banks. The Department of State has also authorized payments to surviving
    family members of 220 Iranian victims of the aerial incident, totaling
    $54,300,000.
        During this reporting period, the full Tribunal held a hearing in
    Case No. A/11 from February 16 through 18. Case No. A/11 concerns Iran's
    allegations that the United States violated its obligations under Point
    IV of the Algiers Accords by failing to freeze and gather information
    about property and assets purportedly located in the United States and
    belonging to the estate of the late Shah of Iran or his close relatives.
        4. U.S. nationals continue to pursue claims against Iran at the
    Tribunal. Since my last report, the Tribunal has issued an award in one
    private claim. On March 5, 1998, Chamber One issued an award in George
    E. Davidson v. Iran, AWD No. 585-457-1, ordering Iran to pay the
    claimant $227,556 plus interest for Iran's interference with the
    claimant's property rights in three buildings in Tehran. The Tribunal
    dismissed the claimant's claims with regard to other property for lack
    of proof. The claimant received $20,000 in arbitration costs.
        5. 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 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. 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 13, 1998.