[Weekly Compilation of Presidential Documents Volume 29, Number 19 (Monday, May 17, 1993)]
[Pages 866-868]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

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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 
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. 

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