[Weekly Compilation of Presidential Documents Volume 29, Number 45 (Monday, November 15, 1993)]
[Pages 2321-2323]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress 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 numer- 

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ous 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 interest 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,

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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.