U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–011 2001

107th Congress, 1st Session – – – – – – – – – – – – House Document 107–148

6-MONTH PERIODIC REPORT ON THE NATIONAL

EMERGENCY REGARDING IRAN

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO IRAN THAT WAS DECLARED IN EXECUTIVE

ORDER 12170 OF NOVEMBER 14, 1979, PURSUANT TO 50 U.S.C.

1641(c)

NOVEMBER 13, 2001.—Message and accompanying papers referred to the

Committee on International Relations and ordered to be printed

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To the Congress of the United States:

As required by section 401(c) of the National Emergencies Act,

50 U.S.C. 1641(c), and section 204(c) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(c), I transmit herewith

a 6-month periodic report on the national emergency with respect

to Iran that was declared in Executive Order 12170 of November

14, 1979.

GEORGE W. BUSH.

THE WHITE HOUSE, November 9, 2001.

(3)

PRESIDENT’S PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH

RESPECT TO THE 1979 IRANIAN EMERGENCY AND ASSETS BLOCKING

I hereby report to the Congress on developments over the past

six months 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, 50 U.S.C. 1703(c)

(‘‘IEEPA’’). This report covers events through September 30, 2001.

1. On July 25, 2001, the Iranian Assets Control Regulations, 31

CFR Part 535 (‘‘IACR’’) (66 FR 38553), were amended to conform

certain provisions relating to custodians of property in which Iran

has an interest to rulings of the Iran-United States Claims Tribunal (‘‘the Tribunal’’). In particular, the regulations state that obligations or liens on property do not disqualify the property from

IACR requirements that the property be returned to Iran if the

property is otherwise subject to the requirements of the IACR. A

copy of the amendment is attached.

2. 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 the last report, the Tribunal

has rendered one award. This brings the total number of awards

rendered by the Tribunal to 599, the majority of which have been

in favor of U.S. claimants. As of September 30, 2001, the value of

awards to successful U.S. claimants paid from the Security Account

held by the NV Settlement Bank was $2,515,743,535.71.

Since the last report, Iran continues to fail 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 September 30, 2001, the total amount in the Security Account was

$93,246,103.11, and the total amount in the Interest Account was

$49,224,241.14. On December 19, 2000, the Tribunal issued its decision in Case No. A/28, holding that Iran has been in non-compliance with its replenishment obligation since late 1992. The Tribunal declined to issue an order directing Iran to replenish the Security Account but stated its expectation that Iran would comply

with its obligation. Because Iran continues to fail to comply, on August 30, 2001, the United States submitted a Request for an Order

that Iran Replenish the Security Account. On September 17, 2001,

the Tribunal dismissed this Request.

The United States 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.

On January 4, 2001, the United States filed a challenge to the

continued tenure of Bengt Broms of Finland as a member of the

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Tribunal because of justifiable doubts of the United States about

Judge Broms’ impartiality and independence and his unfitness to

serve. This challenge was denied by the Appointing Authority on

May 7, 2001. The decision, however, noted Judge Broms’ ‘‘most serious error’’ and cautioned that ‘‘repetition in a future case could

do great harm to the usefulness of the Tribunal’s deliberations.’’ 3. The Department of State continues to process payments to implement 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. As of September 30, 2001, the Department has authorized

payment to U.S. nationals totaling $17,721,549.19 for 58 claims

against Iranian banks. In addition, since November 1998, the Department has authorized transfer of $9,539,973.00 to the Tribunal

for payment of Iran’s share of the Tribunal’s operating expenses.

The Department has also authorized payments to surviving family

members of 247 Iranian victims of the aerial incident, totaling

$61,350,000.00.

On September 26, 2001 the United States filed a 57-volume Response of the United States to Claimant’s Brief and Evidence in

Cases Nos. A/15(II:A), A/26 and B/43. In these consolidated cases,

Iran claims the United States breached the Algiers Accords by failing to arrange for the transfer to Iran of allegedly Iranian property

in the hands of private individuals and entities in the United

States or otherwise subject to U.S. jurisdiction.

Subsequent to the previously reported Partial Award in Case No.

A/11 (April 7, 2000), Iran has requested that the Tribunal order the

United States to conduct a search of the files of an unspecified

number of offices of the United States Government for any documents or information pertaining to financial transactions involving

sixty individuals who had been named in Iran’s litigation in U.S.

courts. The United States filed its opposition to Iran’s request on

September 28, 2001.

4. U.S. nationals continue to pursue claims against Iran at the

Tribunal. Since the last report, the Tribunal has issued an Award

on Agreed Terms in Avco Corp. v. Iran Aircraft Industries, et al.,

AWD 599–261–3, confirming a settlement agreement signed by the

parties on May 31, 2001.

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.

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