[House Document 107-236]
[From the U.S. Government Publishing Office]
107th Congress, 2d Session - - - - - - - - - - - House Document 107-236
A REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO IRAN
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A SIX 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) AND 50 U.S.C. 1703(c)
June 26, 2002.--Message and accompanying papers referred to the
Committee on International Relations and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
99-011 WASHINGTON : 2002
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 prepared by my
Administration 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, June 25, 2002.
Periodic Report on the National Emergency With Respect to the 1979
Iranian Emergency and Assets Blocking
This is a report to the Congress on developments over the
past 6 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). This report covers events through March 31, 2002.
1. There have been no amendments to the Iranian Assets
Control Regulations, 31 CFR Part 535 (``the Regulations''),
since the last report.
2. The Tribunal, established at The Hague pursuant to the
Algiers Accords, has nearly completed resolution of all of the
private claims of U.S. nationals against Iran. Its primary
focus is now the arbitration of claims between the two
governments. Since the period covered in the last report, the
Tribunal has not rendered any new awards. Thus, the total
number of awards rendered by the Tribunal remains 599, the
majority of which have been in favor of U.S. claimants. As of
March 31, 2002, 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 March 31, 2002, the total amount in the Security
Account was $93,246,103.11, and the total amount in the
Interest Account was $51,211,742.73. Because Iran continues to
fail to comply, on October 15, 2001, the United States filed a
new Statement of Claim against Iran, thereby initiating Case
No. A/33. In this claim, the United States requests that the
Tribunal issue an award directing Iran to replenish the
Security Account now and in the future. The United States also
asks that the Tribunal award the United States damages in
compensation for the costs incurred by the United States in
pursuing Case No. A/28, the decision which found Iran to be in
breach of this obligation but did not expressly direct Iran to
bring itself into compliance. Iran has yet to file a Statement
of Defense.
The United States continues to pursue Case 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 United States also continues to pursue a
counterclaim against Iran in Case No. B/1, Iran's case against
the United States arising out of Iran's now defunct Foreign
Military Sales (FMS) program. The U.S. Counterclaim is based
upon Iran's breach of its contractual obligations under the FMS
program to protect the secrecy of sensitive items and
information. Contrary to the U.S. position that the Tribunal
ought to hear all issues relating to the Counterclaim together,
on November 27, 2001, the Tribunal issued an order requesting
that the parties submit hearing memorials on two
``preliminary'' questions arising under the Counterclaim. The
first question is whether the Tribunal has jurisdiction over
the Counterclaim in Case B/1. The second question is, if the
Tribunal has jurisdiction over the Counterclaim, whether the
potential recovery of the United States should be limited to an
offset of any amount Iran might recover in the underlying B/1
claims. The Tribunal directed the United States to brief these
two preliminary issues.
4. One U.S. national continues to pursue a claim against
Iran at the Tribunal. The case has been fully briefed and
heard, and the Tribunal's decision is pending.
5. 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. The Department has authorized payments to
surviving family members of 247 Iranian victims of the aerial
incident, totaling $61,950,000.00. As of March 31, 2002, the
Department has also 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 $10,156,999.50 to the Tribunal for payment of
Iran's share of the Tribunal's operating expenses.
6. The situation reviewed above continues to implicate
important diplomatic, financial, and legal interests of the
United States and its nationals and presents an unusual and
extraordinary threat to the national security and foreign
policy of the United States. The 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.