[House Document 106-312]
[From the U.S. Government Printing Office]



106th Congress, 2d Session - - - - - - - - - - - House Document 106-312


 
PRESIDENT'S PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO 
            THE 1979 IRANIAN EMERGENCY AND ASSETS BLOCKING

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

A REPORT ON DEVELOPMENTS CONCERNING THE NATIONAL EMERGENCY WITH RESPECT 
  TO IRAN THAT WAS DECLARED BY EXECUTIVE ORDER NO. 12170 OF NOVEMBER 14, 
  1979, PURSUANT TO 50 U.S.C. 1641(c)




    November 14, 2000.--Referred to the Committee on International 
                  Relations and ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-011                     WASHINGTON : 2000

                                           The White House,
                                      Washington, November 9, 2000.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: As required by section 401(c) of the 
National Emergencies Act, 50 U.S.C. 1641(c), and section 204(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.
            Sincerely,
                                                William J. Clinton.
 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 June 21, 2000, 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 September 30, 2000. My last 
report, dated June 21, 2000, covered events through March 31, 
2000.
    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, continue to make progress in arbitrating the claims 
before it. Since the period covered in my last report, the 
Tribunal has rendered one award. This award brings the total 
number of awards rendered by the Tribunal to 597, the majority 
of which have been in favor of U.S. claimants. As of September 
30, 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 September 30, 2000, the total amount in the 
Security Account was $99,718,258.36, and the total amount in 
the Interest Account was $41,225,193.27. 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.
    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 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 September 30, 2000, the 
Department has authorized payment to U.S. nationals totaling 
$17,721,549.19 for 58 claims against Iranian banks. In 
addition, since November 1998, the Department has authorized 
transfer of $6,914,792.00 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 247 
Iranian victims of the aerial incident, totaling 
$61,350,000.00.
    On April 7, 2000, the full Tribunal issued a partial award 
in Case No. A/11, which concerns U.S. assets associated with 
the former Shah. The Tribunal rejected Iran's contention that 
the Algiers Accords imposed upon the United States an 
``obligation of result'' guaranteeing the success of Iran's 
Pahlavi assets litigation in U.S. courts. The Tribunal found 
that the United States was not obligated to provide Iran with a 
forum to adjudicate the merits of the Pahlavi assets claim that 
would be subject to no jurisdictional or procedural defenses. 
The Tribunal also held that the United States was not required 
to freeze the assets of the estate of the former Shah, because 
no such estate ever existed as a legal entity within the United 
States. In addition, the Tribunal held that the United States 
had no obligation to freeze the assets of the Shah's relatives, 
or to order reports on those assets, unless those relatives 
were served as defendants in apparent accordance with the 
applicable law of the forum. Finally, the Tribunal held that 
the United States was obligated to freeze and order reporting 
about the assets of certain relatives of the Shah who had been 
thus served. In a subsequent proceeding, the Tribunal will 
determine whether Iran has established that it suffered a loss 
as a result of the United States' failure to comply with some 
of these requirements.
    4. U.S. nationals continue to pursue claims against Iran at 
the Tribunal. Since my last report, however, the Tribunal has 
not issued awards in any private claims.
    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.