H.Doc.108-73 PERIODIC REPORT ON THE NATIONAL EMERGENCY ...

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108th Congress, 1st Session - - - - - - - - - - - - - House Document 
108-71
 
        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)

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    May 14, 2003.--Message and accompanying papers referred to the 
     Committee on International Relations and ordered to be printed
To the Congress of the United States:
    Consistent with 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, May 14, 2003.
  Periodic Report on the National Emergency With Respect to the 1979 
                 Iranian Emergency and Assets Blocking

    This report to the Congress covers 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. It is submitted pursuant to section 204(c) of the 
International Emergency Economic Powers Act, 50 U.S.C. 1703(c) 
(``IEEPA''), and covers events through March 31, 2003.
    1. There have been no amendments to the Iranian Assets 
Control Regulations, 31 CFR Part 535 (``IACR''), since the last 
report.
    2. Since the last report, the Iran-U.S. Claims Tribunal 
(the ``Tribunal''), established at The Hague pursuant to the 
Algiers Accords, has completed resolution of all of the private 
claims of U.S. nationals against Iran. Its focus is now the 
arbitration of claims between the two governments. On February 
27, 2003, in Case No. 485, Riahi v. Iran (AWD No. 600-485-1), 
the Tribunal rendered an award against the Government of Iran 
in favor of the U.S. claimant, who also holds Iranian 
nationality under the laws of Iran, in the amount of $1,743,151 
(plus interest). Thus, the total number of awards rendered by 
the Tribunal tallies at 600, the majority of which were in 
favor of U.S. claimants. As of March 31, 2003, 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. 
This figure does not include the most recent award for which 
payment has not yet been effected.
    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, 2003, the total amount in the Security Account was 
$93,246,103.11, and the total amount in the Interest Account 
was $53,782,536.99. Because Iran continues to fail to comply, 
the United States is actively pursuing Case No. A/33 to require 
Iran to replenish the Security Account now and in the future. 
We are presently awaiting a scheduling order from the Tribunal 
to set a hearing date in this case.
    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. Since the last report, there have been a number of 
significant filings in the remaining cases pending before the 
Tribunal concerning claims between the United States and Iran. 
On November 19, 2002, Iran filed a 132-volume rebuttal in 
Claims 2 and 3 of Case No. B/1, Iran's case against the United 
States arising out of Iran's now defunct Foreign Military Sales 
(``FMS'') program. The Department of State is currently 
analyzing this submission and will prepare a timely response.
    In addition, on February 27, 2003, Iran filed its Hearing 
Memorial in opposition to a counterclaim raised by the United 
States in Case No. B/1. The U.S. counterclaim is based upon 
Iran's breach of its obligation to secure classified data 
provided to it under the FMS program. The Tribunal is expected 
to schedule a hearing on this matter soon.
    Lastly, on January 15, 2003 the United States filed its 
Reply in Case No. A/30, Iran's case alleging U.S. interference 
in Iranian internal affairs in contravention of the 1981 
Algiers Accords. The United States continues to maintain that 
these claims are beyond the jurisdiction of the Tribunal, 
entirely without merit, and should be dismissed.
    4. 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 March 31, 2003, the Department has authorized 
payments to surviving family members of 247 Iranian victims of 
the aerial incident, totaling $61,950,000.00. The settlement 
agreement also provides for payments to U.S. nationals related 
to claims against Iranian banks. The Department has authorized 
payments to U.S. nationals totaling $17,721,549.19 for 58 such 
claims. In addition, since November 1998, the Department has 
authorized the transfer of $12,542,111.50 to the tribunal for 
payment of Iran's share of the Tribunal's operating expenses.
    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 and 
extraordinary threat to the national security and foreign 
policy of the United States. The IACR 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.

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