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[House Document 106-260]
[From the U.S. Government Publishing Office]

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

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
79-011                     WASHINGTON : 2000

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.
 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 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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