The Government of the Democratic and Popular Republic of Algeria, having been requested
by the Governments of the Islamic Republic of Iran and the United States of America
to serve as an intermediary in seeking a mutually acceptable resolution of the crisis
in their relations arising out of the detention of the 52 United States nationals
in Iran, has consulted extensively with the two governments as to the commitments
which each is willing to make in order to resolve the crisis within the framework
of the four points stated in the resolution of November 2, 1980, of the Islamic Consultative
Assembly of Iran. On the basis of formal adherences received from Iran and the United
States, the Government of Algeria now declares that the following interdependent commitments
have been made by the two governments:
GENERAL PRINCIPLES
The undertakings reflected in this Declaration are based on the following general
principles:
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A. Within the framework of and pursuant to the provisions of the two Declarations of
the Government of the Democratic and Popular Republic of Algeria, the United States
will restore the financial position of Iran, in so far as possible, to that which
existed prior to November 14, 1979. In this context, the United States commits itself
to ensure the mobility and free transfer of all Iranian assets within its jurisdiction,
as set forth in Paragraphs 4-9.
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B. It is the purpose of both parties, within the framework of and pursuant to the provisions
of the two Declarations of the Government of the Democratic and Popular Republic of
Algeria, to terminate all litigation as between the Government of each party and the
nationals of the other, and to bring about the settlement and termination of all such
claims through binding arbitration. Through the procedures provided in the Declaration,
relating to the Claims Settlement Agreement, the United States agrees to terminate
all legal proceedings in United States courts involving claims of United States persons
and institutions against Iran and its state enterprises, to nullify all attachments
and judgments obtained therein, to prohibit all further litigation based on such claims,
and to bring about the termination of such claims through binding arbitration.
Point I: Non-intervention in Iranian Affairs
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1. The United States pledges that it is and from now on will be the policy of the United
States not to intervene, directly or indirectly, politically or militarily, in Iran's
internal affairs.
Points II and III: Return of Iranian Assets and Settlements of U.S. Claims
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2. Iran and the United States (hereinafter "the parties") will immediately select a mutually
agreeable central bank (hereinafter "the Central Bank") to act, under the instructions
of the Government of Algeria and the Central Bank of Algeria (hereinafter "the Algerian
Central Bank") as depositary of the escrow and security funds hereinafter prescribed
and will promptly enter into depositary arrangements with the Central Bank in accordance
with the terms of this declaration. All funds placed in escrow with the Central Bank
pursuant to this declaration shall be held in an account in the name of the Algerian
Central Bank. Certain procedures for implementing the obligations set forth in this
Declaration and in the Declaration of the Democratic and Popular Republic of Algeria
concerning the settlement of claims by the Government of the United States and the
Government of the Islamic Republic of Iran (hereinafter "the Claims Settlement Agreement")
are separately set forth in certain Undertakings of the Government of the United States
of America and the Government of the Islamic Republic of Iran with respect to the
Declaration of the Democratic and Popular Republic of Algeria.
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3. The depositary arrangements shall provide that, in the event that the Government of
Algeria certifies to the Algerian Central Bank that the 52 U.S. nationals have safely
departed from Iran, the Algerian Central Bank will thereupon instruct the Central
Bank to transfer immediately all monies or other assets in escrow with the Central
Bank pursuant to this declaration, provided that at any time prior to the making of
such certification by the Government of Algeria, each of the two parties, Iran and
the United States, shall have the right on seventy-two hours notice to terminate its
commitments under this declaration.
If such notice is given by the United States and the foregoing certification is made
by the Government of Algeria within the seventy-two hour period of notice, the Algerian
Central Bank will thereupon instruct the Central Bank to transfer such monies and
assets. If the seventy-two hour period of notice by the United States expires without
such a certification having been made, or if the notice of termination is delivered
by Iran, the Algerian Central Bank will thereupon instruct the Central Bank to return
all such monies and assets to the United States, and thereafter the commitments reflected
in this declaration shall be of no further force and effect.
ASSETS IN THE FEDERAL RESERVE BANK
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4. Commencing upon completion of the requisite escrow arrangements with the Central Bank,
the United States will bring about the transfer to the Central Bank of all gold bullion
which is owned by Iran and which is in the custody of the Federal Reserve Bank of
New York, together with all other Iranian assets (or the cash equivalent thereof)
in the custody of the Federal Reserve Bank of New York, to be held by the Central
Bank in escrow until such time as their transfer or return is required by Paragraph
3 above.
ASSETS IN FOREIGN BRANCHES OF U.S. BANKS
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5. Commencing upon the completion of the requisite escrow arrangements with the Central
Bank, the United States will bring about the transfer to the Central Bank, to the
account of the Algerian Central Bank, of all Iranian deposits and securities which
on or after November 14, 1979, stood upon the books of overseas banking offices of
U.S. banks, together with interest thereon through December 31, 1980, to be held by
the Central Bank, to the account of the Algerian Central Bank, in escrow until such
time as their transfer or return is required in accordance with Paragraph 3 of this
Declaration.
ASSETS IN U.S. BRANCHES OF U.S. BANKS
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6. Commencing with the adherence by Iran and the United States to this declaration and
the claims settlement agreement attached hereto, and following the conclusion of arrangements
with the Central Bank for the establishment of the interest-bearing security account
specified in that agreement and Paragraph 7 below, which arrangements will be concluded
within 30 days from the date of this Declaration, the United States will act to bring
about the transfer to the Central Bank, within six
months from such date, of all Iranian deposits and securities in U.S. banking institutions
in the United States, together with interest thereon, to be held by the Central Bank
in escrow until such time as their transfer or return is required by Paragraph 3.
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7. As funds are received by the Central Bank pursuant to Paragraph 6 above, the Algerian
Central Bank shall direct the Central Bank to (1) transfer one-half of each such receipt
to Iran and (2) place the other half in a special interest-bearing security account
in the Central Bank, until the balance in the security account has reached the level
of $ 1 billion. After the $ 1 billion balance has been achieved, the Algerian Central
Bank shall direct all funds received pursuant to Paragraph 6 to be transferred to
Iran. All funds in the security account are to be used for the sole purpose of securing
the payment of, and paying, claims against Iran in accordance with the claims settlement
agreement. Whenever the Central Bank shall thereafter notify Iran that the balance
in the security account has fallen below $ 500 million, Iran shall promptly make new
deposits sufficient to maintain a minimum balance of $ 500 million in the account.
The account shall be so maintained until the President of the Arbitral Tribunal established
pursuant to the claims settlement agreement has certified to the Central Bank of Algeria
that all arbitral awards against Iran have been satisfied in accordance with the claims
settlement agreement, at which point any amount remaining in the security account
shall be transferred to Iran.
OTHER ASSETS IN THE U.S. AND ABROAD
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8. Commencing with the adherence of Iran and the United States to this declaration and
the attached claims settlement agreement and the conclusion of arrangements for the
establishment of the security account, which arrangements will be concluded within
30 days from the date of this Declaration, the United States will act to bring about
the transfer to the Central Bank of all Iranian financial assets (meaning funds or
securities) which are located in the United States and abroad, apart from those assets
referred to in Paragraph 5 and 6 above, to be held by the Central Bank in escrow until
their transfer or return is required by Paragraph 3 above.
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9. Commencing with the adherence by Iran and the United States to this declaration and
the attached claims settlement agreement and the making by the Government of Algeria
of the certification described in Paragraph 3 above, the United States will arrange,
subject to the provisions of U.S. law applicable prior to November 14, 1979, for the
transfer to Iran of all Iranian properties which are located in the United States
and abroad and which are not within the scope of the preceding paragraphs.
NULLIFICATION OF SANCTIONS AND CLAIMS
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10. Upon the making by the Government of Algeria of the certification described in Paragraph
3 above, the United States will revoke all trade sanctions which were directed against
Iran in the period November 4, 1979, to date.
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11. Upon the making by the Government of Algeria of the certification described in Paragraph
3 above, the United States will promptly withdraw all claims now pending against Iran
before the International Court of Justice and will thereafter bar and preclude the
prosecution against Iran of any pending or future claim of the United States or a
United States national arising out of events occurring before the date of this declaration
related to (A) the seizure of the 52 United States nationals on November 4, 1979,
(B) their subsequent detention, (C) injury to United States property or property of
the United States nationals within the United States Embassy compound in Tehran after
November 3, 1979, and (D) injury to the United States nationals or their property
as a result of popular movements in the course of the Islamic Revolution in Iran which
were not an act of the Government of Iran. The United States will also bar and preclude
the prosecution against Iran in the courts of the United States of any pending or
future claim asserted by persons other than the United States nationals arising out
of the events specified in the preceding sentence.
Point IV: Return of the Assets of the Family of the Former Shah
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12. Upon the making by the Government of Algeria of the certification described in Paragraph
3 above, the United States will freeze, and prohibit any transfer of, property and
assets in the United States within the control of the estate of the former Shah or
of any close relative of the former Shah served as a defendant in U.S. litigation
brought by Iran to recover such property and assets as belonging to Iran. As to any
such defendant, including the estate of the former Shah, the freeze order will remain
in effect until such litigation is finally terminated. Violation of the freeze order
shall be subject to the civil and criminal penalties prescribed by U.S. law.
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13. Upon the making by the Government of Algeria of the certification described in Paragraph
3 above, the United States will order all persons within U.S. jurisdiction to report
to the U.S. Treasury within 30 days, for transmission to Iran, all information known
to them, as of November 3, 1979, and as of the date of the order, with respect to
the property and assets referred to in Paragraph 12. Violation of the requirement
will be subject to the civil and criminal penalties prescribed by U.S. law.
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14. Upon the making by the Government of Algeria of the certification described in Paragraph
3 above, the United States will make known, to all appropriate U.S. courts, that in
any litigation of the kind described in Paragraph 12 above the claims of Iran should
not be considered legally barred either by sovereign immunity principles or by the
act of state doctrine and that Iranian decrees and judgments relating to such assets
should be enforced by such courts in accordance with United States law.
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15. As to any judgment of a U.S. court which calls for the transfer of any property or
assets to Iran, the United States hereby guarantees the enforcement of the final judgment
to the extent that the property or assets exist within the United States.
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16. If any dispute arises between the parties as to whether the United States has fulfilled
any obligation imposed upon it by Paragraphs 12-15, inclusive, Iran may submit the
dispute to binding arbitration by the tribunal established by, and in accordance with
the provisions of, the claims settlement agreement. If the tribunal determines that
Iran has suffered a loss as a result of a failure by the United States to fulfill
such obligation, it shall make an appropriate award in favor of Iran which may be
enforced by Iran in the courts of any nation in accordance with its laws.
SETTLEMENT OF DISPUTES
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17. If any other dispute arises between the parties as to the interpretation or performance
of any provision of this declaration, either party may submit the dispute to binding
arbitration by the tribunal established by, and in accordance with the provisions
of, the claims settlement agreement. Any decision of the tribunal with respect to
such dispute, including any award of damages to compensate for a loss resulting from
a breach of this declaration or the claims settlement agreement, may be enforced by
the prevailing party in the courts of any nation in accordance with its laws.