[House Document 107-148]
[From the U.S. Government Publishing Office]
107th Congress, 1st Session - - - - - - - - - - - House Document 107-148
6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY REGARDING IRAN
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
IRAN THAT WAS DECLARED IN EXECUTIVE ORDER 12170 OF NOVEMBER 14, 1979,
PURSUANT TO 50 U.S.C. 1641(c)
November 13, 2001.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
To the Congress of the United States:
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, 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.
George W. Bush.
The White House, November 9, 2001.
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 over the
past six months 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, 2001.
1. On July 25, 2001, the Iranian Assets Control
Regulations, 31 CFR Part 535 (``IACR'') (66 FR 38553), were
amended to conform certain provisions relating to custodians of
property in which Iran has an interest to rulings of the Iran-
United States Claims Tribunal (``the Tribunal''). In
particular, the regulations state that obligations or liens on
property do not disqualify the property from IACR requirements
that the property be returned to Iran if the property is
otherwise subject to the requirements of the IACR. A copy of
the amendment is attached.
2. 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 the last report,
the Tribunal has rendered one award. This brings the total
number of awards rendered by the Tribunal to 599, the majority
of which have been in favor of U.S. claimants. As of September
30, 2001, the value of awards to successful U.S. claimants paid
from the Security Account held by the NV Settlement Bank was
$2,515,743,535.71.
Since the last report, Iran continues to fail 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, 2001, the total amount in the
Security Account was $93,246,103.11, and the total amount in
the Interest Account was $49,224,241.14. On December 19, 2000,
the Tribunal issued its decision in Case No. A/28, holding that
Iran has been in non-compliance with its replenishment
obligation since late 1992. The Tribunal declined to issue an
order directing Iran to replenish the Security Account but
stated its expectation that Iran would comply with its
obligation. Because Iran continues to fail to comply, on August
30, 2001, the United States submitted a Request for an Order
that Iran Replenish the Security Account. On September 17,
2001, the Tribunal dismissed this Request.
The United States 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.
On January 4, 2001, the United States filed a challenge to
the continued tenure of Bengt Broms of Finland as a member of
the Tribunal because of justifiable doubts of the United States
about Judge Broms' impartiality and independence and his
unfitness to serve. This challenge was denied by the Appointing
Authority on May 7, 2001. The decision, however, noted Judge
Broms' ``most serious error'' and cautioned that ``repetition
in a future case could do great harm to the usefulness of the
Tribunal's deliberations.''
3. The Department of State continues to process payments to
implement 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. As of September 30, 2001, 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
$9,539,973.00 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 September 26, 2001 the United States filed a 57-volume
Response of the United States to Claimant's Brief and Evidence
in Cases Nos. A/15(II:A), A/26 and B/43. In these consolidated
cases, Iran claims the United States breached the Algiers
Accords by failing to arrange for the transfer to Iran of
allegedly Iranian property in the hands of private individuals
and entities in the United States or otherwise subject to U.S.
jurisdiction.
Subsequent to the previously reported Partial Award in Case
No. A/11 (April 7, 2000), Iran has requested that the Tribunal
order the United States to conduct a search of the files of an
unspecified number of offices of the United States Government
for any documents or information pertaining to financial
transactions involving sixty individuals who had been named in
Iran's litigation in U.S. courts. The United States filed its
opposition to Iran's request on September 28, 2001.
4. U.S. nationals continue to pursue claims against Iran at
the Tribunal. Since the last report, the Tribunal has issued an
Award on Agreed Terms in Avco Corp. v. Iran Aircraft
Industries, et al., AWD 599-261-3, confirming a settlement
agreement signed by the parties on May 31, 2001.
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.