I 

110TH CONGRESS 

1ST SESSION H. R. 1456 

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 HOUSE OF REPRESENTATIVES 

MARCH 9, 2007 

Mr. PALLONE (for himself, Mr. MCCOTTER, Mrs. MALONEY of New York, Mr. 

BILIRAKIS, Mr. SPACE, Ms. ROS-LEHTINEN, Mr. SARBANES, Mr. BROWN

of South Carolina, Mr. MCGOVERN, Mr. ROGERS of Alabama, Ms. WATSON, Mr. MARIO DIAZ-BALART of Florida, Mr. PAYNE, Mr. LOBIONDO, 

Mr. VAN HOLLEN, Ms. BERKLEY, and Mr. MCNULTY) introduced the following bill; which was referred to the Committee on Foreign Affairs, and 

in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

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’’. 


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1 SEC. 2. INTERNATIONAL CLAIMS SETTLEMENT ACT. 

2 The International Claims Settlement Act of 1949 (22 

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

4 the following new title: 

5 ‘‘TITLE VIII—CLAIMS AGAINST 

6 TURKEY 

7 ‘‘SEC. 801. PURPOSE. 

8 ‘‘The purpose of this title is to provide for the deter9 mination of the validity and amounts of claims against 

10 Turkey that arise out of the continued exclusion of nation11 als of the United States from property they own that is 

12 located in those portions of the territory of Cyprus that 

13 Turkey occupies. This title shall not be construed as au14 thorizing or as any intention to authorize an appropriation 

15 by the United States for the purpose of paying such 

16 claims. 

17 ‘‘SEC. 802. DEFINITIONS. 

18 ‘‘As used in this title— 

19 ‘‘(1) the term ‘claimant’ means any national of 

20 the United States who files a claim under this title. 

21 ‘‘(2) the term ‘Claims Fund’ means the special 

22 fund established in the Treasury of the United 

23 States composed of such sums as may be paid to or 

24 realized by the United States pursuant to the terms 

25 of any agreement settling those claims described in 


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1 section 804 that may be entered into between the 

2 Governments of the United States and Turkey; 

3 ‘‘(3) the term ‘Commission’ means the Foreign 

4 Claims Settlement Commission of the United States; 

5 ‘‘(4) the term ‘Cyprus’ means the Republic of 

6 Cyprus; 

7 ‘‘(5) the term ‘national of the United States’ 

8 means— 

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

10 the United States; and 

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

12 that is organized under the laws of the United 

13 States or of any State, the District of Colum14 bia, or the Commonwealth of Puerto Rico, if 

15 natural persons who are citizens of the United 

16 States own, directly or indirectly, 50 percent or 

17 more of the outstanding capital stock or other 

18 beneficial interest of such corporation or entity; 

19 ‘‘(6) the term ‘property’ means any real prop20 erty, or any right, or interest in real property, in21 cluding any lease owned under the laws of Cyprus 

22 and located in those portions of the territory of Cy23 prus that are occupied by Turkey; 

24 ‘‘(7) the term ‘Turkey’ means— 

25 ‘‘(A) the Republic of Turkey; 


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1 ‘‘(B) any agent of the Government of Tur2 key, or any unincorporated association that 

3 purports to discharge any function of a nation4 state under the auspices of the Government of 

5 Turkey, including, but not limited to, the unin6 corporated association known as the ‘Turkish 

7 Republic of Northern Cyprus’; 

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

9 instrumentality of Turkey, including, but not 

10 limited to, the Turkish Armed Forces; and 

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

12 a political subdivision, agency, or instrumen13 tality of the unincorporated association known 

14 as the ‘Turkish Republic of Northern Cyprus’. 

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

16 SECRETARY OF STATE. 

17 ‘‘The President is urged to authorize the Secretary 

18 of State to commence negotiations with Turkey and to 

19 continue such negotiations until an agreement is reached 

20 with respect to the payment by Turkey of claims certified 

21 under section 807. The Commission shall receive claims, 

22 determine the validity of claims, and make awards under 

23 section 804 as of the effective date of this title without 

24 regard to whether or not the President authorizes the Sec25 retary of State to commence such negotiations and withVerDate Aug 31 2005 23:16 Mar 10, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1456.IH H1456

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1 out regard to whether or not the Secretary of State com2 mences such negotiations if authorized. 

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

4 ‘‘(a) DETERMINATION OF CLAIMS.—The Commission 

5 shall receive and determine in accordance with applicable 

6 substantive law, including international law, the validity 

7 and amounts of claims by nationals of the United States 

8 against Turkey arising on or after July 20, 1974, for the 

9 fair rental market value of the use and continued occupa10 tion by Turkey of property located in the territory of Cy11 prus that— 

12 ‘‘(1) is owned by such nationals under the laws 

13 of Cyprus, and 

14 ‘‘(2) at the time the exclusion from or occupa15 tion of the property began, was owned, under the 

16 laws of Cyprus, wholly or partially, directly or indi17 rectly, by nationals of the United States, 

18 to the extent restoration or adequate compensation for 

19 such use and occupation has not been made. 

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

21 shall not be required or deemed, either directly or indi22 rectly, to transfer, waive, or otherwise forfeit any right of 

23 ownership in or to the property that the claimant owns 

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


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1 of filing a claim under this title, having the claim deter2 mined, or accepting an award based on the claim. 

3 ‘‘(c) SUBMISSION OF CLAIMS.—A claim under sub4 section (a) may not be considered unless it is submitted 

5 to the Commission within the period specified by the Com6 mission by notice published in the Federal Register within 

7 60 days after the date of the enactment of this title or 

8 of legislation making appropriations to the Commission 

9 for payment of administrative expenses incurred in car10 rying out its functions under this title, whichever date is 

11 later. The period specified by the Commission shall not 

12 be more than a period of 24 consecutive calendar months 

13 beginning on the last day of the month in which the notice 

14 is published. 

15 ‘‘SEC. 805. OWNERSHIP OF CLAIMS. 

16 ‘‘A claim may be favorably considered under section 

17 804— 

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

19 claim is based was owned, wholly or partially, di20 rectly or indirectly, by a national of the United 

21 States under the laws of Cyprus on the date on 

22 which the exclusion from or occupation of the prop23 erty began; and 

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

25 held by one or more nationals of the United States 


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1 continuously from that date until the date the claim 

2 is filed with the Commission. 

3 ‘‘SEC. 806. OFFSETS. 

4 ‘‘In determining the amount of any claim under this 

5 title, the Commission shall deduct all amounts the claim6 ant has received from any source on account of the same 

7 loss or losses for which the claim is filed. 

8 ‘‘SEC. 807. CERTIFICATION; ASSIGNED CLAIMS. 

9 ‘‘(a) CERTIFICATION OF CLAIMS.— 

10 ‘‘(1) TO THE CLAIMANT.—The Commission 

11 shall certify to each claimant who files a claim under 

12 this title— 

13 ‘‘(A) the amount determined by the Com14 mission to be the loss suffered by the claimant 

15 that is covered by this title; and 

16 ‘‘(B) if, on the date on which the certifi17 cation under subparagraph (A) is made, Turkey 

18 is excluding the claimant from the claimant’s 

19 property, a mathematical basis determined by 

20 the Commission for calculating the loss suffered 

21 by the claimant for the continued use and occu22 pation of the property by Turkey after the date 

23 of the award. 

24 ‘‘(2) TO THE SECRETARY OF STATE.—The 

25 Commission shall certify to the Secretary of State— 


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

2 under paragraph (1)(A); 

3 ‘‘(B) any mathematical basis certified 

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

5 claim; and 

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

7 upon and the reasoning employed in making the 

8 Commission’s determination of the amount re9 ferred to in subparagraph (A) and the mathe10 matical basis referred to in subparagraph (B). 

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

12 claim under this title is assigned by purchase before the 

13 Commission determines the amount due on that claim, the 

14 amount so determined shall not exceed the amount of ac15 tual consideration paid by the last such assignee. 

16 ‘‘SEC. 808. CONSOLIDATED AWARDS. 

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

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

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

20 Commission shall issue a consolidated award in favor of 

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

22 indicate the respective interests of such claimants in the 

23 award, and all such claimants shall participate, in propor24 tion to their indicated interests, in any payments that may 


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

2 had been in favor of a single person. 

3 ‘‘SEC. 809. CLAIMS FUND. 

4 ‘‘(a) ESTABLISHMENT.—The Secretary of the Treas5 ury may establish in the Treasury of the United States 

6 the Claims Fund for the payment of unsatisfied claims 

7 of nationals of the United States against Turkey, as au8 thorized by this title. 

9 ‘‘(b) DEDUCTION FOR ADMINISTRATIVE EX10 PENSES.—The Secretary of the Treasury shall deduct 

11 from any amounts covered into the Claims Fund an 

12 amount equal to 5 percent thereof as reimbursement to 

13 the Government of the United States for expenses in14 curred by the Commission and by the Department of the 

15 Treasury in the administration of this title. The amounts 

16 so deducted shall be covered into the Treasury as miscella17 neous receipts. 

18 ‘‘SEC. 810. AWARD PAYMENT PROCEDURES. 

19 ‘‘(a) CERTIFICATION OF AWARDS TO SECRETARY OF

20 THE TREASURY.—The Commission shall certify to the 

21 Secretary of the Treasury, in terms of United States cur22 rency, each award made pursuant to section 804. 

23 ‘‘(b) PAYMENT OF AWARDS.— 

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

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1 retary of the Treasury shall, out of the sums covered 

2 into the Claims Fund, make payments on account of 

3 such awards as follows, and in the following order 

4 of priority: 

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

6 the principal amount of the award (excluding 

7 any calculations made under any mathematical 

8 basis certified under section 807(a)(1)(B)), 

9 whichever is less. 

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

11 time, in ratable proportions, on account of the 

12 unpaid balance of the principal amounts of all 

13 awards (including any calculations made under 

14 any mathematical basis certified under section 

15 807(a)(1)(B)) according to the proportions that 

16 the unpaid balance of such awards bear to the 

17 total amount in the Claims Fund available for 

18 distribution at the time such payments are 

19 made. 

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

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

22 awards pursuant to paragraph (1), pro rata pay23 ments may be made on account of any interest that 

24 may be allowed on such awards. 


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

2 payments under subsection (b) shall be made in accord3 ance with such regulations as the Secretary of the Treas4 ury may prescribe. 

5 ‘‘SEC. 811. SETTLEMENT PERIOD. 

6 ‘‘The Commission shall complete its affairs in connec7 tion with the settlement of claims under this title not later 

8 than 3 years after the final date for the filing of claims 

9 as provided in section 804. 

10 ‘‘SEC. 812. TRANSFER OF RECORDS. 

11 ‘‘The Secretary of State, the Secretary of the Treas12 ury, and the Secretary of Defense shall transfer or other13 wise make available to the Commission such records and 

14 documents relating to claims authorized by this title as 

15 may be required by the Commission in carrying out its 

16 functions under this title. 

17 ‘‘SEC. 813. AUTHORIZATION OF APPROPRIATIONS. 

18 ‘‘There are authorized to be appropriated for any fis19 cal year beginning on or after October 1, 2007, such sums 

20 as may be necessary to enable the Commission and the 

21 Department of the Treasury to pay their respective admin22 istrative expenses incurred in carrying out their functions 

23 under this title. Amounts appropriated under this section 

24 may remain available until expended. 


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1 ‘‘SEC. 814. FEES FOR SERVICES. 

2 ‘‘(a) LIMITATION ON FEES.— 

3 ‘‘(1) LIMITATION.—No remuneration on ac4 count of services rendered on behalf of any claimant, 

5 in connection with any claim filed with the Commis6 sion under this title, may exceed 10 percent of the 

7 total amount paid pursuant to any award certified 

8 under the provisions of this title on account of such 

9 claim. 

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

11 agreement contrary to the limitation set forth in 

12 paragraph (1) shall be unlawful and void. 

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

14 United States or elsewhere, demands or receives, on ac15 count of services rendered to which paragraph (1) applies, 

16 any remuneration in excess of the maximum permitted by 

17 subsection (a), shall be fined not more than $5,000, or 

18 imprisoned not more than 12 months, or both. 

19 ‘‘SEC. 815. APPLICATION OF OTHER PROVISIONS. 

20 ‘‘(a) IN GENERAL.—To the extent they are not incon21 sistent with the provisions of this title, the following provi22 sions of title I of this Act shall apply to this title: sub23 sections (b), (c), (d), (e), and (h) of section 4 and sub24 sections (c), (d), (e), and (f) of section 7. Any reference 

25 in such provisions to ‘this title’ shall be deemed to be a 

26 reference to those provisions and to this title. 


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1 ‘‘(b) APPLICABILITY OF ADMINISTRATIVE PROCE2 DURE.—Except as otherwise provided in this title and in 

3 those provisions of title I referred to in subsection (a), the 

4 Commission shall comply with the provisions of subchapter 

5 II of chapter 5, and the provisions of chapter 7, of title 

6 5, United States Code. 

7 ‘‘SEC. 816. SEPARABILITY. 

8 ‘‘If any provision of this title or the application there9 of to any person or circumstance is held invalid, the re10 mainder of this title or the application of such provision 

11 to other persons or circumstances shall not be affected.’’. 

12 SEC. 3. JURISDICTION OF U.S. DISTRICT COURTS. 

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

14 States Code, is amended by adding at the end the fol15 lowing new section: 

16 ‘‘§ 1370. Civil actions against private persons by na17 tionals of the United States who own real 

18 property in Cyprus 

19 ‘‘(a) IN GENERAL.—The district courts shall have 

20 original jurisdiction of any civil action brought by a na21 tional of the United States— 

22 ‘‘(1) who holds title to any property under the 

23 laws of Cyprus that is located in that portion of the 

24 territory of Cyprus that is occupied by Turkey as 


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1 the result of the invasion of Cyprus by Turkey on 

2 July 20, 1974, and 

3 ‘‘(2) who has been excluded from the property 

4 by reason of such occupation, 

5 against any private person who for any purpose and in 

6 any way uses, occupies, or benefits from that property at 

7 any time during the period of such exclusion, for the fair 

8 rental value of the property during the period of such use, 

9 occupation, or benefit. 

10 ‘‘(b) DEFINITIONS.—As used in this section— 

11 ‘‘(1) the term ‘Cyprus’ means the Republic of 

12 Cyprus; 

13 ‘‘(2) the term ‘national of the United States’ 

14 means— 

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

16 the United States; and 

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

18 that is organized under the laws of the United 

19 States or of any State, the District of Colum20 bia, or the Commonwealth of Puerto Rico, if 

21 natural persons who are citizens of the United 

22 States own, directly or indirectly, 50 percent or 

23 more of the outstanding capital stock or other 

24 beneficial interest of such corporation or entity; 


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1 ‘‘(3) the term ‘private person’ means any nat2 ural person or legal entity other than Turkey; 

3 ‘‘(4) the term ‘property’ means any real prop4 erty or any right or interest in any real property, in5 cluding any lease to which a national of the United 

6 States holds title under the laws of Cyprus; and 

7 ‘‘(5) the term ‘Turkey’ means— 

8 ‘‘(A) the Republic of Turkey; 

9 ‘‘(B) any agent of the Government of Tur10 key, or any unincorporated association that 

11 purports to discharge any function of a nation12 state under the auspices of the Government of 

13 Turkey, including, but not limited to, the unin14 corporated association known as the ‘Turkish 

15 Republic of Northern Cyprus’; 

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

17 instrumentality of the Republic of Turkey, in18 cluding but not limited to the Turkish Armed 

19 Forces; and 

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

21 a political subdivision, agency, or instrumen22 tality of the unincorporated association known 

23 as the ‘Turkish Republic of Northern Cyprus’; 

24 ‘‘(c) SPECIAL RULES.—In any civil action brought 

25 under this section— 


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

2 accomplished in any manner provided under this 

3 title; 

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

5 doctrine of forum non conveniens and shall refuse to 

6 hear any motion or request by any person or party 

7 that the civil action be dismissed on the grounds of 

8 forum non conveniens; 

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

10 party asserting the civil action has lawful title, the 

11 district court shall apply only the laws of Cyprus in 

12 making that determination; 

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

14 in the civil action, the district court shall consider 

15 only evidence of the fair rental market value of the 

16 property for the period of occupation, use, or benefit 

17 by the person against whom the action is brought, 

18 as that value would have been calculated in Cyprus 

19 if the plaintiff had not been excluded from the prop20 erty; and 

21 ‘‘(5) the court shall deduct the amount of any 

22 award paid to the plaintiff under title VIII of the 

23 International Claims Settlement Act of 1949, or the 

24 amount of any judgment for the plaintiff under sec25 tion 5 of the American-Owned Property in Occupied 


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1 Cyprus Claims Act on account of the same use, oc2 cupation, or benefit that is the basis of the action 

3 under this section. 

4 ‘‘(d) LIMITATION OF ACTION.—Any civil action 

5 against a private person under this section may not be 

6 brought later than 36 consecutive calendar months after 

7 the last day of the month in which the private person 

8 ceases to use, occupy, or benefit from the property. This 

9 subsection applies in lieu of section 1658 of this title.’’. 

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 for civil actions against private per18 sons brought by nationals of the United 

19 States who own real property in Cyprus 

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

21 only in the United States District Court for the District 

22 of Columbia and the United States District Court for the 

23 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 for civil actions against private persons brought by nationals of 

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

4 SEC. 5. ACTION AGAINST TURKISH GOVERNMENT. 

5 (a) JURISDICTION OF U.S. COURTS.—The Govern6 ment of Turkey shall not be immune from the jurisdiction 

7 of the courts of the United States or of the States in any 

8 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 that 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 that 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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