Union Calendar No. 221

103D CONGRESS

1ST SESSION H. R. 3221

[Report No. 103–396]

A BILL

To provide for the adjudication of certain claims

against the Government of Iraq.

NOVEMBER 20, 1993

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 221

103D CONGRESS

1ST SESSION H. R. 3221

[Report No. 103–396]

To provide for the adjudication of certain claims against the Government

of Iraq.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 6, 1993

Mr. HAMILTON introduced the following bill; which was referred to the

Committee on Foreign Affairs

NOVEMBER 20, 1993

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on October 6, 1993]

A BILL

To provide for the adjudication of certain claims against

the Government of Iraq.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Iraq Claims Act of

5 1993’’.
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1 SEC. 2. ADJUDICATION OF CLAIMS.

2 (a) CERTAIN CLAIMS WITHIN THE JURISDICTION OF

3 UN COMMISSION.—The United States Commission is au4 thorized to receive and determine the validity and amounts

5 of any claims referred to it by the Secretary of State with

6 respect to which the United States has received lump-sum

7 payments from the United Nations Commission.

8 (b) OTHER CLAIMS AGAINST IRAQ.—The United

9 States Commission is authorized to receive and determine

10 the validity and amounts of any claims by nationals of the

11 United States against the Government of Iraq that are de12 termined by the Secretary of State to be outside the jurisdic13 tion of the United Nations Commission.

14 (c) DECISION RULES.—In deciding claims under sub15 section (a) or (b), the United States Commission shall

16 apply, in the following order—

17 (1) in the case of claims under subsection (a),

18 relevant decisions of the United Nations Security

19 Council and the United Nations Commission;

20 (2) applicable substantive law, including inter21 national law; and

22 (3) applicable principles of justice and equity.

23 (d) PRIORITY CLAIMS.—Before deciding any other

24 claim against the Government of Iraq, the United States

25 Commission shall, to the extent practical, decide all pending

26 non-commercial claims of members of the United States
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1 Armed Forces and other individuals arising out of Iraq’s

2 invasion and occupation of Kuwait or out of the 1987 at3 tack on the USS Stark.

4 (e) APPLICABILITY OF INTERNATIONAL CLAIMS SET5 TLEMENT ACT.—To the extent they are not inconsistent

6 with the provisions of this Act, the provisions of title I

7 (other than section 2(c)) and title VII of the International

8 Claims Settlement Act of 1949 (22 U.S.C. 1621–1627 and

9 1645–1645o) shall apply with respect to claims under this

10 Act and the funds established pursuant to sections 3(a) and

11 3(c).

12 SEC. 3. CLAIMS FUNDS.

13 (a) UN COMMISSION CLAIMS FUNDS.—The Secretary

14 of the Treasury is authorized to establish in the Treasury

15 of the United States one or more funds (hereinafter in this

16 Act referred to as the ‘‘UN Commission Claims Funds’’)

17 for payment of claims under section 2(a). The Secretary

18 of the Treasury shall cover into the UN Commission Claims

19 Funds such amounts as are allocated to such funds pursu20 ant to subsection (b)(1).

21 (b) ALLOCATION OF FUNDS RECEIVED FROM UN COM22 MISSION.—The Secretary of State shall allocate funds re23 ceived by the United States from the United Nations Com24 mission, in the manner the Secretary determines appro25 priate, between—
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1 (1) the UN Commission Claims Funds; and

2 (2) funds established under the authority of the

3 paragraphs under the heading ‘‘TRUST FUNDS’’ in

4 the Act entitled ‘‘An Act making appropriations for

5 the diplomatic and consular service for the fiscal year

6 ending June thirtieth, eighteen hundred and ninety7 seven’’, approved February 26, 1896 (22 U.S.C.

8 2668a).

9 (c) IRAQ CLAIMS FUND.—The Secretary of the Treas10 ury is authorized to establish in the Treasury of the United

11 States a fund (hereinafter in this Act referred to as the

12 ‘‘Iraq Claims Fund’’) for payment of claims under section

13 2(b). The Secretary of the Treasury shall cover into the Iraq

14 Claims Fund such amounts as are allocated to such fund

15 pursuant to subsection (d).

16 (d) ALLOCATION OF PROCEEDS FROM IRAQI ASSET

17 LIQUIDATATION.—

18 (1) IN GENERAL.—The President shall allocate

19 funds resulting from the liquidation of assets pursu20 ant to section 4 in the manner the President deter21 mines appropriate between the Iraq Claims Fund and

22 such other accounts as are appropriate for the pay23 ment of claims of the United States Government, sub24 ject to the limitation in paragraph (2).
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1 (2) LIMITATION.—The amount allocated pursu2 ant to this subsection for payment of claims of the

3 United States Government may not exceed the

4 amount which bears the same relation to the amount

5 allocated to the Iraq Claims Fund pursuant to this

6 subsection as the sum of all certified claims of the

7 United States Government bears to the sum of all

8 claims certified under section 2(b). As used in this

9 paragraph, the term ‘‘certified claims of the United

10 States Government’’ means those claims of the United

11 States Government which are determined by the Sec12 retary of State to be outside the jurisdiction of the

13 United Nations Commission and which are deter14 mined to be valid, and whose amount has been cer15 tified, under such procedures as the President may es16 tablish.

17 SEC. 4. AUTHORITY TO VEST IRAQI ASSETS.

18 The President is authorized to vest and liquidate as

19 much of the assets of the Government of Iraq in the United

20 States that have been blocked pursuant to the International

21 Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)

22 as may be necessary to satisfy claims under section 2(b),

23 as well as claims of the United States Government against

24 Iraq which are determined by the Secretary of State to be

25 outside the jurisdiction of the United Nations Commission.
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1 SEC. 5. REIMBURSEMENT FOR EXPENSES OF PROGRAM AD2 MINISTRATION.

3 (a) DEDUCTION.—In order to reimburse the United

4 States Government for its expenses in administering the

5 Iraq claims program and this Act, the Secretary of the

6 Treasury shall deduct—

7 (1) 1.5 percent of any amount covered into the

8 UN Commission Claims Funds or the Iraq Claims

9 Fund; and

10 (2) 1.5 percent of any amount the Secretary of

11 State receives from the United Nations Commission

12 that is not covered into the UN Commission Claims

13 Funds and that is not in payment of a claim of the

14 United States Government.

15 (b) DEDUCTIONS TREATED AS MISCELLANEOUS RE16 CEIPTS.—Amounts deducted pursuant to subsection (a)

17 shall be deposited in the Treasury of the United States as

18 miscellaneous receipts.

19 SEC. 6. PAYMENTS.

20 (a) IN GENERAL.—The United States Commission

21 shall certify to the Secretary of the Treasury each award

22 made pursuant to section 2. The Secretary of the Treasury

23 shall make payment, out of the appropriate fund established

24 pursuant to section 3(a) or 3(c), in the following order of

25 priority to the extent funds are available in such fund:
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1 (1) Payment of $10,000 or the principal amount

2 of the award, whichever is less.

3 (2) For each claim that has priority under sec4 tion 2(d), payment of a further $90,000 toward the

5 unpaid balance of the principal amount of the award.

6 (3) Payments from time to time in ratable pro7 portions on account of the unpaid balance of the

8 principal amounts of all awards according to the pro9 portions which the unpaid balance of such awards

10 bear to the total amount in the appropriate claims

11 fund that is available for distribution at the time

12 such payments are made.

13 (4) After payment has been made of the prin14 cipal amounts of all such awards, pro rata payments

15 on account of accrued interest on such awards as bear

16 interest.

17 (5) After payment has been made in full of all

18 the awards payable out of a fund established pursu19 ant to section 3(a) or 3(c), any funds remaining in

20 that fund shall be transferred to the other claims fund

21 established pursuant to section 3(a) or 3(c), except

22 that any funds received by the United States from the

23 United Nations Commission shall be so transferred

24 only to the extent not inconsistent with requirements

25 of the United Nations Commission.
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1 (b) UNSATISFIED CLAIMS.—Payment of any award

2 made pursuant to this Act shall not extinguish any

3 unsatisfied claim, or be construed to have divested any

4 claimant, or the United States on his or her behalf, of any

5 rights against the Government of Iraq with respect to any

6 unsatisfied claim.

7 SEC. 7. RECORDS.

8 (a) TRANSFER TO COMMISSION.—The head of any Ex9 ecutive agency may transfer or otherwise make available

10 to the United States Commission such records and docu11 ments relating to claims authorized to be adjudicated by

12 this Act as may be required by the United States Commis13 sion in carrying out its functions under this Act.

14 (b) PUBLIC DISCLOSURE.—Section 552 of title 5 of the

15 United States Code (commonly referred to as the ‘‘Freedom

16 of Information Act’’) shall not apply with respect to records

17 that, as determined by the Secretary of State, are required

18 under the rules and decisions of the United Nations Com19 mission to be withheld from public disclosure.

20 SEC. 8. STATUTE OF LIMITATIONS; DISPOSITION OF UN21 USED FUNDS.

22 (a) STATUTE OF LIMITATIONS.—Any demand or claim

23 for payment on account of an award that is certified under

24 the Iraq claims program shall be barred one year after the

25 publication date of the notice required by subsection (b).
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1 (b) PUBLICATION OF NOTICE.—

2 (1) IN GENERAL.—At the end of the 9-year pe3 riod specified in paragraph (2), the Secretary of the

4 Treasury shall publish a notice in the Federal Reg5 ister detailing the statute of limitations provided for

6 in subsection (a) and identifying the claim numbers

7 and awardee names of unpaid certified claims.

8 (2) PUBLICATION DATE.—The notice required by

9 paragraph (1) shall be published 9 years after the lat10 ter of—

11 (A) the last date on which the Secretary of

12 the Treasury covers into any of the UN Commis13 sion Claims Funds, or into any fund described

14 in section 3(b)(2), amounts allocated to that

15 fund pursuant to section 3(b); or

16 (B) the last date on which the Secretary of

17 the Treasury covers into the Iraq Claims Fund

18 amounts allocated to that fund pursuant to sec19 tion 3(d).

20 (c) DISPOSITION OF UNUSED FUNDS.—

21 (1) DISPOSITION.—At the end of the 2-year pe22 riod beginning on the publication date of the notice

23 required by subsection (b), the Secretary of the Treas24 ury shall dispose of all unused funds described in

25 paragraph (2) as follows:
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1 (A) By making additional payments pursu2 ant to the Iraq claims program.

3 (B) By depositing in the Treasury of the

4 United States as miscellaneous receipts any such

5 funds that are not used for such additional pay6 ments.

7 (2) UNUSED FUNDS.—The unused funds referred

8 to in paragraph (1) are—

9 (A) any remaining balance in the UN Com10 mission Claims Funds or in the Iraq Claims

11 Fund, including the amount of any unpaid cer12 tified claim under the Iraq claims program; and

13 (B) any remaining balance in any fund re14 ferred to in section 3(b)(2) to the extent such bal15 ance reflects amounts deposited pursuant to that

16 section.

17 SEC. 9. DEFINITIONS.

18 As used in this Act—

19 (1) the term ‘‘Government of Iraq’’ includes

20 agencies, instrumentalities, and controlled entities

21 (including public sector enterprises) of that govern22 ment;

23 (2) the term ‘‘Executive agency’’ has the mean24 ing given that term by section 105 of title 5, United

25 States Code;
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1 (3) the term ‘‘Iraq claims program’’ means the

2 claims whose adjudication is provided for in this Act

3 and any other claims that are within the jurisdiction

4 of the United Nations Commission;

5 (4) the term ‘‘United Nations Commission’’

6 means the United Nations Compensation Commission

7 established pursuant to United Nations Security

8 Council Resolution 687 (1991); and

9 (5) the term ‘‘United States Commission’’ means

10 the Foreign Claims Settlement Commission of the

11 United States.

12 SEC. 10. ADMISSION TO THE UNITED STATES AS REFUGEES

13 OF INDIVIDUALS WHO SERVED IN THE ARMED

14 FORCES OF IRAQ DURING THE PERSIAN GULF

15 CONFLICT.

16 (a) STATEMENT OF POLICY.—It is the sense of the Con17 gress that individuals who have served in the armed forces

18 of Iraq during the Persian Gulf conflict should not be ad19 mitted to the United States as refugees under the Immigra20 tion and Nationality Act except in exceptional cir21 cumstances until all claims certified under section 2(b) of

22 this Act have been paid in full.

23 (b) PERSIAN GULF CONFLICT DEFINED.—For pur24 poses of this section, the term ‘‘Persian Gulf conflict’’ means
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1 the period beginning on August 2, 1990, and ending on Feb2 ruary 27, 1991.