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Weapons of Mass Destruction (WMD)

USIS Washington File

16 November 1998

TEXT: CLINTON REPORTS TO CONGRESS ON IRAN NATIONAL EMERGENCY

(President reports on progress of US-Iran Claims Tribunal) (1300)
Washington -- President Clinton November 16 reported to Congress on
the National Emergency with respect to Iran that was declared in
Executive Order 12170 of November 14, 1979.
In his report, covering events through September 30, 1998, the
President noted that the Iran-United States Claims Tribunal (the
"Tribunal"), established at The Hague pursuant to the Algiers Accords,
continues to make progress in arbitrating the claims before it. He
also made the following points:
-- "Since my last report, Iran has failed to replenish the Security
Account established by the Algiers Accords to ensure payment of awards
to successful US claimants. ... 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."
"-- The Department of State continues to present other United States
Government claims against Iran and to respond to claims brought
against the United States by Iran, in coordination with concerned
government agencies.
"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," President Clinton reported.
Following is the White House text:
(begin text)
THE WHITE HOUSE
Office of the Press Secretary
November 16, 1998
TEXT OF A LETTER FROM THE PRESIDENT TO THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES AND THE PRESIDENT OF THE SENATE
November 16, 1998
Dear Mr. Speaker:  (Dear Mr. President:)
I hereby report to the Congress on developments since the last
Presidential report of May 13, 1998, 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, 1998. My last
report, dated May 13, 1998, covered events through March 31, 1998.
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, continues to
make progress in arbitrating the claims before it. Since the period
covered in my last report, the Tribunal has rendered three awards.
This brings the total number of awards rendered by the Tribunal to
588, the majority of which have been in favor of US claimants. As of
September 30, 1998, the value of awards to successful US claimants
paid from the Security Account held by the NV Settlement Bank was
$2,501,515,655.22.
Since my last report, Iran has failed to replenish the Security
Account established by the Algiers Accords to ensure payment of awards
to successful US 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, 1998, the total
amount in the Security Account was $107,563,705.15, and the total
amount in the Interest Account was $26,226,833.16. 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 present other United States
Government claims against Iran and to respond to claims brought
against the United States by Iran, in coordination with concerned
government agencies.
On April 20, 1998, the United States filed a major submission in Case
No. B/1, a case in which Iran seeks repayment for alleged wrongful
charges to Iran over the life of its Foreign Military Sales (FMS)
program, including the costs of terminating the program. The April
filing addressed liability for the costs arising out of termination of
the FMS program.
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 16, 1996), the Department of State has been processing
payments. As of September 30, 1998, the Department has authorized
payment to US nationals totaling $17,521,261.89 for 55 claims against
Iranian banks. The Department has also authorized payments to
surviving family members of 228 Iranian victims of the aerial
incident, totaling $56,550,000. On June 5, 1998, the full Tribunal
issued an award in Case No. A/27. The Tribunal held that, because of
decisions of a United States District Court and Court of Appeals
declining to enforce the Tribunal's July 1988 award to Iran in Avco v.
Iran, the United States violated its obligation under the Algiers
Accords to ensure that Tribunal awards be treated as binding.
On June 17, 1998, the Tribunal issued an order in Case No. B/61, in
which Iran seeks compensation for the alleged non-transfer of certain
military property. The order dismissed certain claims on grounds that
they were duplicative of claims in other cases.
In Case No. A/30, a case in which Iran alleges that the United States
has violated paragraphs 1 and 10 of the General Declaration of the
Algiers Accords, based on an alleged covert action program aimed at
Iran and US sanctions, the United States and Iran filed submissions in
response to Iran's request that the Tribunal require the United States
to produce classified intelligence information.
4. US nationals continue to pursue claims against Iran at the
Tribunal. Since my last report, the Tribunal has issued awards in two
private claims. On July 2, 1998, Chamber Two issued an award in Kamran
Hakim v. Iran, AWD No. 587-953-2, ordering Iran to pay the claimant
$691,611 plus interest as compensation for measures that deprived the
claimant of his interest in a company he had established. The Tribunal
dismissed claims regarding parcels of real property on grounds that,
in certain instances, the claimant failed to prove expropriation or
other measures affecting property rights, and failed in other
instances to prove ownership.
On July 8, 1998, Chamber One issued an award in Brown & Root, Inc. v.
Iran, AWD No. 588-432-1, giving effect to a settlement agreement
between the parties, ordering Iran to pay the claimant $16,718,214.
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.
Sincerely,
WILLIAM J. CLINTON
(End text)




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