II 

110TH CONGRESS 

1ST SESSION S. 695 

To amend the International Claims Settlement Act of 1949 to allow for 

certain claims of nationals of the United States against Turkey, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 27, 2007 

Ms. SNOWE (for herself and Mr. MENENDEZ) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To amend the International Claims Settlement Act of 1949 

to allow for certain claims of nationals of the United 

States against Turkey, and for other purposes. 

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 ‘‘American-Owned Prop5 erty in Occupied Cyprus Claims Act’’. 

6 SEC. 2. INTERNATIONAL CLAIMS SETTLEMENT ACT. 

7 The International Claims Settlement Act of 1949 (22 

8 U.S.C. 1621 et seq.) is amended by adding at the end 

9 the following new title: 


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1 ‘‘TITLE VIII—CLAIMS AGAINST 

2 TURKEY 

3 ‘‘SEC. 801. PURPOSE. 

4 ‘‘The purpose of this title is to provide for the deter5 mination of the validity and amounts of claims against 

6 Turkey that arise out of the continued exclusion of nation7 als of the United States from property such nationals own 

8 that is located in those portions of the territory of Cyprus 

9 that Turkey occupies. This title may not be construed as 

10 authorizing or as any intention to authorize an appropria11 tion by the United States for the purpose of paying such 

12 claims. 

13 ‘‘SEC. 802. DEFINITIONS. 

14 ‘‘In this title: 

15 ‘‘(1) CLAIMANT.—The term ‘claimant’ means 

16 any national of the United States who files a claim 

17 under this title. 

18 ‘‘(2) CLAIMS FUND.—The term ‘Claims Fund’ 

19 means the claims fund described in section 808(a). 

20 ‘‘(3) COMMISSION.—The term ‘Commission’ 

21 means the Foreign Claims Settlement Commission 

22 of the United States. 

23 ‘‘(4) CYPRUS.—The term ‘Cyprus’ means the 

24 Republic of Cyprus. 


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1 ‘‘(5) NATIONAL OF THE UNITED STATES.—The 

2 term ‘national of the United States’ means— 

3 ‘‘(A) a natural person who is a citizen of 

4 the United States; and 

5 ‘‘(B) a corporation or other legal entity 

6 that is organized under the laws of the United 

7 States or of any State, the District of Colum8 bia, or the Commonwealth of Puerto Rico, if 

9 natural persons who are citizens of the United 

10 States own, directly or indirectly, 50 percent or 

11 more of the outstanding capital stock or other 

12 beneficial interest of such corporation or entity. 

13 ‘‘(6) PROPERTY.—The term ‘property’ means 

14 any real property, or any right or interest in real 

15 property, including any lease to which a national of 

16 the United States holds title under the laws of Cy17 prus, located in those portions of the territory of Cy18 prus that are occupied by Turkey. 

19 ‘‘(7) TURKEY.—The term ‘Turkey’ means— 

20 ‘‘(A) the Republic of Turkey; 

21 ‘‘(B) any agent of the Government of Tur22 key, or any unincorporated association that 

23 purports to discharge any function of a nation24 state under the auspices of the Government of 

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1 tion known as the ‘Turkish Republic of North2 ern Cyprus’; 

3 ‘‘(C) any political subdivision, agency, or 

4 instrumentality of Turkey, including the Turk5 ish Armed Forces; and 

6 ‘‘(D) any organization that purports to be 

7 a political subdivision, agency, or instrumen8 tality of the unincorporated association known 

9 as the ‘Turkish Republic of Northern Cyprus’. 

10 ‘‘SEC. 803. COMMENCEMENT OF NEGOTIATIONS BY THE 

11 SECRETARY OF STATE. 

12 ‘‘(a) IN GENERAL.—The President is urged to au13 thorize the Secretary of State to commence negotiations 

14 with Turkey to reach an agreement with respect to the 

15 payment by Turkey of claims certified under section 806 

16 and to continue such negotiations until such agreement 

17 is reached. 

18 ‘‘(b) REQUIREMENT TO RECEIVE CLAIMS.—The 

19 Commission shall receive claims, determine the validity of 

20 claims, and make awards under section 804 as of the ef21 fective date of the American-Owned Property in Occupied 

22 Cyprus Claims Act without regard to whether or not— 

23 ‘‘(1) the President authorizes the Secretary of 

24 State to commence the negotiations referred to in 

25 subsection (a); and 


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1 ‘‘(2) if the President does authorize the Sec2 retary of State to commence such negotiations, the 

3 Secretary of State commences such negotiations. 

4 ‘‘SEC. 804. RECEIPT AND DETERMINATION OF CLAIMS. 

5 ‘‘(a) DETERMINATION OF CLAIMS.— 

6 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

7 the Commission shall receive and determine in ac8 cordance with applicable substantive law, including 

9 international law, the validity and amounts of claims 

10 by nationals of the United States against Turkey 

11 arising on or after July 20, 1974, for the fair rental 

12 market value of the use and continued occupation by 

13 Turkey of property located in the territory of Cyprus 

14 that— 

15 ‘‘(A) is owned by such nationals under the 

16 laws of Cyprus; and 

17 ‘‘(B) at the time the exclusion from or oc18 cupation of the property began, was owned, 

19 under the laws of Cyprus, wholly or partially, 

20 directly or indirectly, by nationals of the United 

21 States. 

22 ‘‘(2) LIMITATION.—The Commission shall re23 duce the value of the fair rental market value deter24 mined under paragraph (1) to the extent restoration 

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1 tion has been made, including all amounts the claim2 ant has received from any source on account of the 

3 same loss or losses for which the claim is filed. 

4 ‘‘(b) RIGHTS IN PROPERTY RETAINED.—A claimant 

5 shall not be required or deemed, either directly or indi6 rectly, to transfer, waive, or otherwise forfeit any right of 

7 ownership in or to the property that the claimant owns 

8 under the laws of Cyprus as a condition of or as the result 

9 of filing a claim under this title, having the claim deter10 mined, or accepting an award based on the claim. 

11 ‘‘(c) SUBMISSION OF CLAIMS.— 

12 ‘‘(1) REQUIREMENT TO ESTABLISH TIME PE13 RIOD.—Not later than 60 days after the date of the 

14 enactment of an appropriations Act that makes 

15 available funds for payment of administrative ex16 penses incurred by the Commission in carrying out 

17 this title, the Commission shall establish a period 

18 during which claimants may submit claims under 

19 this title. 

20 ‘‘(2) PUBLICATION.—The Commission shall 

21 publish the beginning and ending dates of the period 

22 referred to in paragraph (1) in the Federal Register. 

23 ‘‘(3) LENGTH.—The period referred to in para24 graph (1) may not be longer than 24 months and 

25 shall begin on the last day of the month in which 


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1 the notice of the period is published under para2 graph (2). 

3 ‘‘SEC. 805. OWNERSHIP OF CLAIMS. 

4 ‘‘A claim may be favorably considered under section 

5 804— 

6 ‘‘(1) only if the property right on which the 

7 claim is based was owned, wholly or partially, di8 rectly or indirectly, by a national of the United 

9 States under the laws of Cyprus on the date on 

10 which the exclusion from or occupation of the prop11 erty began; and 

12 ‘‘(2) only to the extent that the claim has been 

13 held by one or more nationals of the United States 

14 continuously from that date until the date the claim 

15 is filed with the Commission. 

16 ‘‘SEC. 806. CERTIFICATION; ASSIGNED CLAIMS. 

17 ‘‘(a) CERTIFICATION OF CLAIMS.— 

18 ‘‘(1) CERTIFICATION TO THE CLAIMANT.—The 

19 Commission shall certify to each claimant who files 

20 a claim under this title— 

21 ‘‘(A) the amount determined by the Com22 mission to be the loss suffered by the claimant 

23 which is covered by this title; and 

24 ‘‘(B) if, on the date on which the certifi25 cation under subparagraph (A) is made, Turkey 


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1 is excluding the claimant from the claimant’s 

2 property, a mathematical basis determined by 

3 the Commission for calculating the loss suffered 

4 by the claimant for the continued use and occu5 pation of the property by Turkey after the date 

6 of the award. 

7 ‘‘(2) CERTIFICATION TO THE SECRETARY OF

8 STATE.—The Commission shall certify to the Sec9 retary of State— 

10 ‘‘(A) the amount of each claim certified 

11 under paragraph (1)(A); 

12 ‘‘(B) any mathematical basis certified 

13 under paragraph (1)(B) in connection with that 

14 claim; and 

15 ‘‘(C) a statement of the evidence relied 

16 upon and the reasoning employed in making the 

17 Commission’s determination of the amount re18 ferred to in subparagraph (A) and the mathe19 matical basis referred to in subparagraph (B). 

20 ‘‘(b) ASSIGNED CLAIMS.—In any case in which a 

21 claim under this title is assigned by purchase before the 

22 Commission determines the amount due on that claim, the 

23 amount so determined shall not exceed the amount of ac24 tual consideration paid by the last such assignee. 


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1 ‘‘SEC. 807. CONSOLIDATED AWARDS. 

2 ‘‘With respect to any claim under section 804 that, 

3 at the time of the award, is vested in persons other than 

4 the person by whom the original loss was sustained, the 

5 Commission shall issue a consolidated award in favor of 

6 all claimants then entitled to the award. The award shall 

7 indicate the respective interests of such claimants in the 

8 award, and all such claimants shall participate, in propor9 tion to their indicated interests, in any payments that may 

10 be made under this title in all respects as if the award 

11 had been in favor of a single person. 

12 ‘‘SEC. 808. CLAIMS FUND. 

13 ‘‘(a) AUTHORITY.—The Secretary of the Treasury 

14 may establish in the Treasury of the United States a 

15 Claims Fund for the payment of unsatisfied claims of na16 tionals of the United States against Turkey, as authorized 

17 by this title. 

18 ‘‘(b) CONTRIBUTIONS TO CLAIMS FUND.—The 

19 Claims Fund shall consist of such sums as may be paid 

20 to, or realized by, the United States pursuant to the terms 

21 of any agreement settling those claims described in section 

22 804 that may be entered into between the Governments 

23 of the United States and Turkey. 

24 ‘‘(c) DEDUCTION FOR ADMINISTRATIVE EX25 PENSES.—The Secretary of the Treasury shall deduct 

26 from any amounts covered into the Claims Fund an 


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1 amount equal to 5 percent thereof as reimbursement to 

2 the Government of the United States for expenses in3 curred by the Commission and by the Department of the 

4 Treasury in the administration of this title. The amounts 

5 so deducted shall be covered into the Treasury as miscella6 neous receipts. 

7 ‘‘SEC. 809. AWARD PAYMENT PROCEDURES. 

8 ‘‘(a) CERTIFICATION OF AWARDS TO THE SEC9 RETARY OF THE TREASURY.—The Commission shall cer10 tify to the Secretary of the Treasury, in terms of United 

11 States currency, each award made pursuant to section 

12 804. 

13 ‘‘(b) PAYMENT OF AWARDS.— 

14 ‘‘(1) PRINCIPAL AMOUNTS.—Upon certification 

15 of each award made under section 804, the Sec16 retary of the Treasury shall, out of the sums covered 

17 into the Claims Fund, make payments on account of 

18 such awards as follows, and in the following order 

19 of priority: 

20 ‘‘(A) Payment in the amount of $5,000 or 

21 the principal amount of the award (excluding 

22 any calculations made under any mathematical 

23 basis certified under section 806(a)(1)(B)), 

24 whichever is less. 


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1 ‘‘(B) Thereafter, payments from time to 

2 time, in ratable proportions, on account of the 

3 unpaid balance of the principal amounts of all 

4 awards (including any calculations made under 

5 any mathematical basis certified under section 

6 806(a)(1)(B)) according to the proportions that 

7 the unpaid balance of such awards bear to the 

8 total amount in the Claims Fund available for 

9 distribution at the time such payments are 

10 made. 

11 ‘‘(2) SUBSEQUENT PAYMENTS.—After payment 

12 has been made in full of the principal amounts of all 

13 awards pursuant to paragraph (1), pro rata pay14 ments may be made on account of any interest that 

15 may be allowed on such awards. 

16 ‘‘(c) REGULATIONS.—Payments or applications for 

17 payments under subsection (b) shall be made in accord18 ance with any regulations the Secretary of the Treasury 

19 may prescribe. 

20 ‘‘SEC. 810. SETTLEMENT PERIOD. 

21 ‘‘The Commission shall complete the settlement of 

22 claims under this title not later than 3 years after the 

23 final date for the filing of claims as provided in section 

24 804(c). 


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1 ‘‘SEC. 811. TRANSFER OF RECORDS. 

2 ‘‘The Secretary of State, the Secretary of the Treas3 ury, and the Secretary of Defense shall transfer or other4 wise make available to the Commission such records and 

5 documents relating to claims described in section 804 as 

6 may be required by the Commission in carrying out its 

7 functions under this title. 

8 ‘‘SEC. 812. FEES FOR SERVICES. 

9 ‘‘(a) LIMITATION ON FEES.— 

10 ‘‘(1) LIMITATION.—No remuneration on ac11 count of services rendered on behalf of any claimant, 

12 in connection with any claim filed with the Commis13 sion under this title, may exceed 10 percent of the 

14 total amount paid pursuant to an award certified 

15 under the provisions of this title on account of such 

16 claim. 

17 ‘‘(2) NOTIFICATION OF AGREEMENTS.—Any 

18 agreement contrary to the limitation set forth in 

19 paragraph (1) shall be unlawful and void. 

20 ‘‘(b) PENALTY FOR VIOLATION.—Whoever, in the 

21 United States or elsewhere, demands or receives, on ac22 count of services rendered to which subsection (a)(1) ap23 plies, any remuneration in excess of the maximum per24 mitted by subsection (a), shall be fined not more than 

25 $5,000, or imprisoned not more than 12 months, or both. 


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1 ‘‘SEC. 813. APPLICATION OF OTHER PROVISIONS. 

2 ‘‘(a) IN GENERAL.— 

3 ‘‘(1) PROVISIONS.—To the extent they are not 

4 inconsistent with the provisions of this title, the fol5 lowing provisions of title I of this Act shall apply to 

6 this title: 

7 ‘‘(A) Subsections (b), (c), (d), (e), and (h) 

8 of section 4 (22 U.S.C. 1623 (b), (c), (d), (e), 

9 and (h)). 

10 ‘‘(B) Subsections (c), (d), (e), and (f) of 

11 section 7 (22 U.S.C. 1626 (c), (d), (e), and (f)). 

12 ‘‘(2) REFERENCE.—Any reference to ‘this title’ 

13 in the provisions described in subparagraph (A) or 

14 (B) of paragraph (1) shall be deemed to be a ref15 erence to such provisions and to this title. 

16 ‘‘(b) APPLICABILITY OF ADMINISTRATIVE PROCE17 DURE.—Except as otherwise provided in this title and in 

18 the provisions of title I referred to in subparagraph (A) 

19 or (B) of subsection (a)(1), the Commission shall comply 

20 with the provisions of subchapter II of chapter 5, and the 

21 provisions of chapter 7, of title 5, United States Code. 

22 ‘‘SEC. 814. AUTHORIZATION OF APPROPRIATIONS. 

23 ‘‘(a) IN GENERAL.—There are authorized to be ap24 propriated for any fiscal year beginning on or after Octo25 ber 1, 2007, such sums as may be necessary to enable 

26 the Commission and the Secretary of the Treasury to pay 


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1 their respective administrative expenses incurred in car2 rying out their functions under this title. 

3 ‘‘(b) AVAILABILITY OF FUNDS.—Amounts appro4 priated pursuant to the authorization of appropriations in 

5 subsection (a) may remain available until expended.’’. 

6 SEC. 3. JURISDICTION OF UNITED STATES DISTRICT 

7 COURTS. 

8 (a) IN GENERAL.—Chapter 85 of title 28, United 

9 States Code, is amended by adding at the end the fol10 lowing new section: 

11 ‘‘§ 1370. Civil actions against private persons by na12 tionals of the United States who own real 

13 property in Cyprus 

14 ‘‘(a) JURISDICTION.— 

15 ‘‘(1) IN GENERAL.—The district courts shall 

16 have original jurisdiction of any covered civil action 

17 brought by a national of the United States— 

18 ‘‘(A) who holds title to any property under 

19 the laws of Cyprus that is located in that por20 tion of the territory of Cyprus that is occupied 

21 by Turkey as the result of the invasion of Cy22 prus by Turkey on July 20, 1974; and 

23 ‘‘(B) who has been excluded from the 

24 property by reason of such occupation. 


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1 ‘‘(2) RECOVERY.—In a covered civil action, a 

2 national of the United States may recover the fair 

3 rental value of the property that is the subject of 

4 such action during the period of use, or occupation 

5 of, or benefit from, such property. 

6 ‘‘(b) SPECIAL RULES.—In any covered civil action 

7 brought under this section— 

8 ‘‘(1) process shall be deemed served if service is 

9 accomplished in any manner provided under this 

10 title; 

11 ‘‘(2) the district court shall not consider the 

12 doctrine of forum non conveniens and shall refuse to 

13 hear any motion or request by any person or party 

14 that the covered civil action be dismissed on the 

15 grounds of forum non conveniens; 

16 ‘‘(3) in determining whether the person or 

17 party asserting the covered civil action has lawful 

18 title, the district court shall apply only the laws of 

19 Cyprus; 

20 ‘‘(4) in determining the amount of any award 

21 in the covered civil action, the district court shall 

22 consider only evidence of the fair rental market 

23 value of the property for the period of occupation, 

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1 culated in Cyprus if the plaintiff had not been ex2 cluded from the property; and 

3 ‘‘(5) the district court shall deduct the amount 

4 of any award paid to the plaintiff under title VIII 

5 of the International Claims Settlement Act of 1949, 

6 or the amount of any judgment for the plaintiff 

7 under section 5 of the American-Owned Property in 

8 Occupied Cyprus Claims Act, on account of the 

9 same use, occupation, or benefit that is the basis of 

10 the covered civil action under this section. 

11 ‘‘(c) LIMITATION OF ACTION.—Any covered civil ac12 tion against a private person under this section may not 

13 be brought later than 36 months after the last day of the 

14 month in which the private person ceases to use, occupy, 

15 or benefit from the property. This subsection applies in 

16 lieu of section 1658. 

17 ‘‘(d) DEFINITIONS.—As used in this section— 

18 ‘‘(1) the term ‘covered civil action’ means a civil 

19 action against any private person who for any pur20 pose and in any way uses, occupies, or benefits from 

21 property described in subsection (a)(1)(A) at any 

22 time during the period of the exclusion described in 

23 subsection (a)(1)(B); 

24 ‘‘(2) the term ‘Cyprus’ means the Republic of 

25 Cyprus; 


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1 ‘‘(3) the term ‘national of the United States’ 

2 means— 

3 ‘‘(A) a natural person who is a citizen of 

4 the United States; and 

5 ‘‘(B) a corporation or other legal entity 

6 that is organized under the laws of the United 

7 States or of any State, the District of Colum8 bia, or the Commonwealth of Puerto Rico, if 

9 natural persons who are citizens of the United 

10 States own, directly or indirectly, 50 percent or 

11 more of the outstanding capital stock or other 

12 beneficial interest of such corporation or entity; 

13 ‘‘(4) the term ‘private person’ means any nat14 ural person or legal entity other than Turkey; 

15 ‘‘(5) the term ‘property’ means any real prop16 erty or any right or interest in any real property, in17 cluding any lease to which a national of the United 

18 States holds title under the laws of Cyprus; and 

19 ‘‘(6) the term ‘Turkey’ means— 

20 ‘‘(A) the Republic of Turkey; 

21 ‘‘(B) any agent of the Government of Tur22 key, or any unincorporated association that 

23 purports to discharge any function of a nation24 state under the auspices of the Government of 

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1 tion known as the ‘Turkish Republic of North2 ern Cyprus’; 

3 ‘‘(C) any political subdivision, agency, or 

4 instrumentality of the Republic of Turkey, in5 cluding the Turkish Armed Forces; and 

6 ‘‘(D) any organization that purports to be 

7 a political subdivision, agency, or instrumen8 tality of the unincorporated association known 

9 as the ‘Turkish Republic of Northern Cyprus’.’’. 

10 (b) CONFORMING AMENDMENT.—The table of sec11 tions for chapter 85 of title 28, United States Code, is 

12 amended by adding at the end the following new item: 

‘‘1370. Civil actions against private persons by nationals of the United States 

who own real property in Cyprus.’’. 

13 SEC. 4. VENUE. 

14 (a) IN GENERAL.—Chapter 87 of title 28, United 

15 States Code, is amended by adding at the end the fol16 lowing new section: 

17 ‘‘§ 1414. Venue of civil actions against private persons 

18 brought by nationals of the United States 

19 who own real property in Cyprus 

20 ‘‘A covered civil action under section 1370 may be 

21 brought only in the United States District Court for the 

22 District of Columbia and the United States District Court 

23 for the Southern District of New York.’’. 


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1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for chapter 87 of title 28, United States Code, is 

3 amended by adding at the end the following new item: 

‘‘1414. Venue of civil actions against private persons brought by nationals of 

the United States who own real property in Cyprus.’’. 

4 SEC. 5. ACTION AGAINST THE GOVERNMENT OF TURKEY. 

5 (a) JURISDICTION OF UNITED STATES COURTS.— 

6 The Government of Turkey shall not be immune from the 

7 jurisdiction of the courts of the United States or of the 

8 States in any case in which— 

9 (1) rights in property of a national of the 

10 United States that is occupied by the Government of 

11 Turkey in violation of international law are in issue; 

12 and 

13 (2) that property or any property exchanged for 

14 such property— 

15 (A) is present in the United States in con16 nection with a commercial activity carried on by 

17 the Government of Turkey in the United 

18 States; or 

19 (B) is owned or operated by an agency or 

20 instrumentality of the Government of Turkey 

21 and that agency or instrumentality— 

22 (i) is engaged in a commercial activity 

23 in the United States; or 


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1 (ii) purchases or otherwise acquires 

2 any good or service for which the approval, 

3 authorization, or consent of the United 

4 States is required by law, by the President, 

5 or by any department, agency, or instru6 mentality of the United States Govern7 ment. 

8 (b) APPLICABILITY OF AND RELATIONSHIP TO FOR9 EIGN SOVEREIGN IMMUNITIES ACT.— 

10 (1) APPLICABILITY.—The provisions of chapter 

11 97 of title 28, United States Code, apply to a civil 

12 action brought under subsection (a) as if the action 

13 were brought under such chapter. 

14 (2) ASSERTION OF INDEPENDENT JURISDIC15 TION.—The jurisdiction conferred by subsection (a) 

16 is in addition to any jurisdiction conferred by chap17 ter 97 of title 28, United States Code. 

18 (c) DEDUCTIONS OF OTHER AWARDS.—In any action 

19 brought under subsection (a), the court shall deduct from 

20 the amount of any judgment the amount of any award 

21 paid to the plaintiff under title VIII of the International 

22 Claims Settlement Act of 1949, or the amount of any 

23 judgment for the plaintiff under section 1370 of title 28, 

24 United States Code, on account of the same subject mat25 ter that is the basis of the action under this section. 


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1 (d) DEFINITIONS.—In this section— 

2 (1) the term ‘‘Government of Turkey’’ includes 

3 all the entities described in subparagraphs (B), (C), 

4 and (D) of section 802(7) of the International 

5 Claims Settlement Act of 1949; 

6 (2) the term ‘‘agency or instrumentality of the 

7 Government of Turkey’’ means any of the entities 

8 described in subparagraphs (B), (C), and (D) of sec9 tion 802(7) of the International Claims Settlement 

10 Act of 1949; 

11 (3) the term ‘‘court of the United States’’ has 

12 the meaning given that term in section 451 of title 

13 28, United States Code; 

14 (4) the terms ‘‘national of the United States’’ 

15 and ‘‘property’’ have the meanings given those terms 

16 in section 802 of the International Claims Settle17 ment Act of 1949; and 

18 (5) the term ‘‘State’’ means each of the several 

19 States, the District of Columbia, and any common20 wealth territory or possession of the United States. 

21 SEC. 6. EFFECTIVE DATE. 

22 This Act and the amendments made by this Act shall 

23 take effect on the date of the enactment of this Act. 

Æ 


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