U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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79–011 2000

106th Congress, 2d Session – – – – – – – – – – – – House Document 106–260

SIX-MONTH PERIODIC REPORT ON THE

NATIONAL EMERGENCY WITH RESPECT TO 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)

JUNE 22, 2000.—Message and accompanying papers referred to the

Committee on International Relations and ordered to be printed

(1)

To the Congress of the United States:

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

50 U.S.C. 1641(c) of the International Emergency Economic Powers

Act (IEEPA), 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.

WILLIAM J. CLINTON.

THE WHITE HOUSE, June 21, 2000.

(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 since the last

Presidential report of November 16, 1999, 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 March 31, 2000. My last report, dated November 16, 1999,

covered events through September 30, 1999.

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 three

awards. This brings the total number of awards rendered by the

Tribunal to 596, the majority of which have been in favor of U.S.

claimants. As of March 31, 2000, the value of awards to successful

U.S. claimants paid from the Security Account held by the NV Settlement Bank was $2,509,361,102.01.

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,

2000, the total amount in the Security Account was $99,718,258.36,

and the total amount in the Interest Account was $36,929,024.67.

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. A

hearing on this case was conducted before the full Tribunal on November 17–19, 1999, at which the United States presented its

claims and responded to Iranian defenses.

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.

3. The Department of State continues to present other United

States Government claims against Iran and to respond to claims

brought against the United States by Iran, in coordination with

concerned government agencies.

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 17, 1996), the Department of State has

been processing payments. As of March 31, 2000, the Department
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has authorized payment to U.S. nationals totaling $17,661,117.94

for 57 claims against Iranian banks. In addition, since November

1998, the Department has authorized transfer of $5,592,165.00 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 243 Iranian victims of the aerial incident,

totaling $60,900,000.00.

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

Tribunal. Since my last report, the Tribunal has issued awards in

three private claims. On October 7, 1999, Chamber Two issued an

award in Gulf Associates, Inc. v. Iran, AWD No. 594–385–2, determining that the claimant company was a national of the United

States; finding that Iran was responsible for certain debts owed to

the claimant by companies that had subsequently been nationalized; and requiring those companies to pay the claimant

$1,931,180.00, plus interest accrued since May 1979.

On November 16, 1999, Chamber Three issued an award in Bank

Markazi Iran v. Federal Reserve Bank of New York, AWD No. 595–

823–3, dismissing on their merits Bank Markazi’s contract-based

claims for a higher return on its assets.

On February 24, 2000, Chamber One issued a partial award on

agreed terms in Frederica Lincoln Riahi v. Iran, AWD No. 596–

485–1. Giving effect to a partial settlement agreement between the

parties, this award required Iran to deliver to the claimant the contents of a safe deposit box at Bank Mellat, Tehran.

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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