[Weekly Compilation of Presidential Documents Volume 30, Number 20 (Monday, May 23, 1994)]
[Pages 1086-1088]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Congress on Iran

May 14, 1994

To the Congress of the United States:

    I hereby report to the Congress on developments since the last 
Presidential report on November 10, 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 March 31, 1994. My last report, dated November 10, 
1993, covered events through September 30, 1993.

[[Page 1087]]

    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. 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. The 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 my last report, 
the Tribunal has rendered 4 awards, bringing the total number to 551. Of 
this total, 371 have been awards in favor of American claimants. Two 
hundred twenty-three of these were awards on agreed terms, authorizing 
and approving payment of settlements negotiated by the parties, and 148 
were decisions adjudicated on the merits. The Tribunal has issued 37 
decisions dismissing claims on the merits and 84 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, 1994, the Federal Reserve Bank of New York 
reported the value of awards to successful American claimants from the 
Security Account held by the NV Settlement Bank stood at 
$2,344,330,685.87.
    The Security Account has fallen below the required balance of $500 
million almost 50 times. Until October 1992, Iran periodically 
replenished the account, as required by the Algiers Accords. This was 
accomplished, first, by transfers from the separate account held by the 
NV Settlement Bank in which interest on the Security Account is 
deposited. The aggregate amount transferred from the Interest Account to 
the Security Account was $874,472,986.47. Iran then 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 March 31, 1994, the total 
amount in the Security Account was $212,049,484.05 and the total amount 
in the Interest Account was $15,548,176.62.
    The United States continues to pursue Case A/28, filed last year, to 
require Iran to meet its financial obligations under the Algiers 
Accords.
    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 November 1993, the United States filed its 
Consolidated Final Response in A/15 (IV) and A/24, a claim brought by 
Iran for the alleged failure of the United States to terminate all 
litigation against Iran as required by the Algiers Accord. In December, 
the United States also filed its Statement of Defense in A/27, a claim 
brought by Iran for the alleged failure of the United States to enforce 
a Tribunal award in Iran's favor against a U.S. national. Because of 
this alleged failure, Iran requested that the United States Government 
be required to pay Iran for all the outstanding awards against U.S. 
nationals in favor of Iran.
    5. As reported in November 1992, Jose Maria Ruda, President of the 
Tribunal, tendered his resignation on October 2, 1992. On December 4, 
1993, Professor Krysztof Skubiszewski was appointed Chairman of Chamber 
Two of the Tribunal, filling the vacancy left by Judge Ruda's departure. 
On February 16, 1994, Professor Skubiszewski also was appointed the 
President of the Tribunal. Before joining the Tribunal Professor 
Skubiszewski served as Minister of Foreign Affairs in Poland from 1989 
to 1993. He joined the ``Solidarity'' movement there in

[[Page 1088]]

1980, and served on several councils before becoming Minister of Foreign 
Affairs. In addition to his political experience, Professor Skubiszewski 
has had a long and distinguished academic career in the field of 
international law. He is currently on leave from the Institute of Law, 
Polish Academy of Sciences in Warsaw, and has lectured at universities 
throughout Europe. He is also the author of a number of international 
law publications. In announcing the appointment, the Tribunal's 
Appointing Authority, Charles M.J.A. Moons, emphasized Professor 
Skubiszewski's ``extensive experience in the management of state affairs 
and the conduct of international relations,'' in addition to his 
``scholarly renown.''
    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. 
As of March 31, 1994, the FCSC has issued decisions in 2,538 claims, for 
total awards of more than $40 million. The FCSC expects to complete its 
adjudication of the remaining claims this year.
    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,
May 14, 1994.

Note: This message was released by the Office of the Press Secretary on 
May 16.