I 
108TH CONGRESS 
2D SESSION 
H. R. 5071
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 
SEPTEMBER 14, 2004
Mr. PALLONE (for himself, Mr. BILIRAKIS, and Mrs. MALONEY) introduced 
the following bill; which was referred to the Committee on International 
Relations, and in addition to the Committee on the Judiciary, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American-Owned Prop-
erty in Occupied Cyprus Claims Act’’.
SEC. 2. INTERNATIONAL CLAIMS SETTLEMENT ACT. 
The International Claims Settlement Act of 1949 (22 
U.S.C. 1621 et seq.) is amended by adding at the end 
the following new title: 
‘‘TITLE VIII—CLAIMS AGAINST 
TURKEY 
‘‘SEC. 801. PURPOSE. 
‘‘The purpose of this title is to provide for the deter-
mination of the validity and amounts of claims against 
Turkey which arise out of the continued exclusion of na-
tionals of the United States from property they own that 
is located in those portions of the territory of Cyprus 
which Turkey occupies. This title shall not be construed 
as authorizing or as any intention to authorize an appro-
priation by the United States for the purpose of paying 
such claims. 
‘‘SEC. 802. DEFINITIONS. 
‘‘As used in this title—
‘‘(1) the term ‘claimant’ means any national of 
the United States who files a claim under this title. 
‘‘(2) the term ‘Claims Fund’ means the special 
fund established in the Treasury of the United 
States composed of such sums as may be paid to or 
realized by the United States pursuant to the terms 
of any agreement settling those claims described in
section 804 that may be entered into between the 
Governments of the United States and Turkey; 
‘‘(3) the term ‘Commission’ means the Foreign 
Claims Settlement Commission of the United States; 
‘‘(4) the term ‘Cyprus’ means the Republic of 
Cyprus; 
‘‘(5) the term ‘national of the United States’ 
means—
‘‘(A) a natural person who is a citizen of 
the United States; and 
‘‘(B) a corporation or other legal entity 
which is organized under the laws of the United 
States or of any State, the District of Colum-
bia, or the Commonwealth of Puerto Rico, if 
natural persons who are citizens of the United 
States own, directly or indirectly, 50 percent or 
more of the outstanding capital stock or other 
beneficial interest of such corporation or entity; 
‘‘(6) the term ‘property’ means any real prop-
erty, or any right, or interest in real property, in-
cluding any lease owned under the laws of Cyprus 
and located in those portions of the territory of Cy-
prus that are occupied by Turkey; 
‘‘(7) the term ‘Turkey’ means—
‘‘(A) the Republic of Turkey;
‘‘(B) any agent of the Government of Tur-
key, or any unincorporated association that 
purports to discharge any function of a nation-
state under the auspices of the Government of 
Turkey, including, but not limited to, the unin-
corporated association known as the ‘Turkish 
Republic of Northern Cyprus’; and 
‘‘(C) any political subdivision, agency, or 
instrumentality of Turkey, including, but not 
limited to, the Turkish Armed Forces; and 
‘‘(D) any organization that purports to be 
a political subdivision, agency, or instrumen-
tality of the unincorporated association known 
as the ‘Turkish Republic of Northern Cyprus’. 
‘‘SEC. 803. COMMENCEMENT OF NEGOTIATIONS BY THE 
SECRETARY OF STATE. 
‘‘The President is urged to authorize the Secretary 
of State to commence negotiations with Turkey and to 
continue such negotiations until an agreement is reached 
with respect to the payment by Turkey of claims certified 
under section 807. The Commission shall receive claims, 
determine the validity of claims, and make awards under 
section 804 as of the effective date of this title without 
regard to whether or not the President authorizes the Sec-
retary of State to commence such negotiations and with-
out regard to whether or not the Secretary of State com-
mences such negotiations if authorized. 
‘‘SEC. 804. RECEIPT AND DETERMINATION OF CLAIMS. 
‘‘(a) DETERMINATION OF CLAIMS.—The Commission 
shall receive and determine in accordance with applicable 
substantive law, including international law, the validity 
and amounts of claims by nationals of the United States 
against Turkey arising on or after July 20, 1974, for the 
fair rental market value of the use and continued occupa-
tion by Turkey of property located in the territory of Cy-
prus which—
‘‘(1) is owned by such nationals under the laws 
of Cyprus, and 
‘‘(2) at the time the exclusion from or occupa-
tion of the property began, was owned, under the 
laws of Cyprus, wholly or partially, directly or indi-
rectly, by nationals of the United States, 
to the extent restoration or adequate compensation for 
such use and occupation has not been made. 
‘‘(b) RIGHTS IN PROPERTY RETAINED.—A claimant 
shall not be required or deemed, either directly or indi-
rectly, to transfer, waive, or otherwise forfeit any right of 
ownership in or to the property that the claimant owns 
under the laws of Cyprus as a condition of or as the result
of filing a claim under this title, having the claim deter-
mined, or accepting an award based on the claim. 
‘‘(c) SUBMISSION OF CLAIMS.—Any claim under sub-
section (a) may not be considered unless it is submitted 
to the Commission within the period specified by the Com-
mission by notice published in the Federal Register within 
60 days after the date of the enactment of this title or 
of legislation making appropriations to the Commission 
for payment of administrative expenses incurred in car-
rying out its functions under this title, whichever date is 
later. The period specified by the Commission shall not 
be more than a period of 24 consecutive calendar months 
beginning on the last day of the month in which the notice 
is published. 
‘‘SEC. 805. OWNERSHIP OF CLAIMS. 
‘‘A claim may be favorably considered under section 
804—
‘‘(1) only if the property right on which the 
claim is based was owned, wholly or partially, di-
rectly or indirectly, by a national of the United 
States under the laws of Cyprus on the date on 
which the exclusion from or occupation of the prop-
erty began; and 
‘‘(2) only to the extent that the claim has been 
held by one or more nationals of the United States
continuously from that date until the date the claim 
is filed with the Commission. 
‘‘SEC. 806. OFFSETS. 
‘‘In determining the amount of any claim under this 
title, the Commission shall deduct all amounts the claim-
ant has received from any source on account of the same 
loss or losses for which the claim is filed. 
‘‘SEC. 807. CERTIFICATION; ASSIGNED CLAIMS. 
‘‘(a) CERTIFICATION OF CLAIMS.—
‘‘(1) TO
THE
CLAIMANT.—The Commission 
shall certify to each claimant who files a claim under 
this title—
‘‘(A) the amount determined by the Com-
mission to be the loss suffered by the claimant 
which is covered by this title; and 
‘‘(B) if, on the date on which the certifi-
cation under subparagraph (A) is made, Turkey 
is excluding the claimant from the claimant’s 
property, a mathematical basis determined by 
the Commission for calculating the loss suffered 
by the claimant for the continued use and occu-
pation of the property by Turkey after the date 
of the award. 
‘‘(2) TO
THE
SECRETARY
OF
STATE.—The 
Commission shall certify to the Secretary of State—
‘‘(A) the amount of each claim certified 
under paragraph (1)(A); 
‘‘(B) any mathematical basis certified 
under paragraph (1)(B) in connection with that 
claim; and 
‘‘(C) a statement of the evidence relied 
upon and the reasoning employed in making the 
Commission’s determination of the amount re-
ferred to in subparagraph (A) and the mathe-
matical basis referred to in subparagraph (B). 
‘‘(b) ASSIGNED CLAIMS.—In any case in which a 
claim under this title is assigned by purchase before the 
Commission determines the amount due on that claim, the 
amount so determined shall not exceed the amount of ac-
tual consideration paid by the last such assignee. 
‘‘SEC. 808. CONSOLIDATED AWARDS. 
‘‘With respect to any claim under section 804 which, 
at the time of the award, is vested in persons other than 
the person by whom the original loss was sustained, the 
Commission shall issue a consolidated award in favor of 
all claimants then entitled to the award. The award shall 
indicate the respective interests of such claimants in the 
award, and all such claimants shall participate, in propor-
tion to their indicated interests, in any payments that may
be made under this title in all respects as if the award 
had been in favor of a single person. 
‘‘SEC. 809. CLAIMS FUND. 
‘‘(a) ESTABLISHMENT.—The Secretary of the Treas-
ury may establish in the Treasury of the United States 
the Claims Fund for the payment of unsatisfied claims 
of nationals of the United States against Turkey, as au-
thorized by this title. 
‘‘(b) 
DEDUCTION
FOR
ADMINISTRATIVE
EX-
PENSES.—The Secretary of the Treasury shall deduct 
from any amounts covered into the Claims Fund an 
amount equal to 5 percent thereof as reimbursement to 
the Government of the United States for expenses in-
curred by the Commission and by the Department of the 
Treasury in the administration of this title. The amounts 
so deducted shall be covered into the Treasury as miscella-
neous receipts. 
‘‘SEC. 810. AWARD PAYMENT PROCEDURES. 
‘‘(a) CERTIFICATION OF AWARDS TO SECRETARY OF 
THE TREASURY.—The Commission shall certify to the 
Secretary of the Treasury, in terms of United States cur-
rency, each award made pursuant to section 804. 
‘‘(b) PAYMENT OF AWARDS.—
‘‘(1) PRINCIPAL AMOUNTS.—Upon certification 
of each award made under section 804, the Sec-