The State Department yesterday released the texts of two U.S. replies on Iranian conditions for the release of the 52 American hostages, along with explanatory comments.
The first U.S. reply was sent to Iran Nov. 12, and in response to Tehran Dec. 4.
The Nov. 12 response, in full:
The government of the United States has received and has carefully reviewed the resolution adopted on Nov. 2, 1980, by the Islamic Consultative Assembly of Iran.
The United States accepts in principle the resolution as the basis for ending the crisis, and hereby proposes the following series of presidential orders and declarations in response to the resolution. Each of the presidential orders and declarations is to be made public and become effective upon safe departure from Iran of the 52 hostages. 1. The United States is prepared to deliver to the government of Algeria a copy of a formal declaration signed by the president of the United States, in which the United States states its policy which is to refrain from interfering, either directly or indirectly, politically or militarily, in the internal affairs of Iran. 2. (A) The United States is prepared to deliver to the government of Algeria a copy of a signed presidential order unblocking all of the capital and assets of Iran or other countries, in order to allow the parties to move expeditiously toward a resumption of normal financial relations as they existed before Nov. 4, 1979. 2. (B) An accompanying presidential order will direct the Federal Reserve Bank of New York to make available to the government of Iran all Iranian capital, assets and properties held by the bank, amounting to approximately $2.5 billion. 2. (C) An additional accompanying presidential order will also remove all U.S. legal restrictions from an additional sum of approximately $3 billion on deposit with the U.S. banks abroad. 2. (D) In order to bring about the cancellation of all judicial orders and attachments relating to the capital and assets of Iran within U.S. jurisdiction, the United States is prepared to deliver to the government of Algeria a copy of a signed presidential declaration committing the United States to join with the government of Iran in a claims settlement procedure which will lead to the cancellation of such orders and attachments as rapidly as possible. 3. (A) The United States is prepared to deliver to the government of Algeria a copy of a signed presidential order revoking all economic and financial sanctions and all legal prohibitions imposed since the seizure of the hostages against exports to, imports from, and transactions with Iran in order to allow trade between the two countries to be resumed on the basis of conditions prior to Nov. 14, 1979. 3. (B) The United States is prepared to deliver to the government of Algeria a copy of a signed presidential declaration committing the United States to withdraw all claims pending against Iran in the International Court of Justice and to refrain from pursuing any other claims for financial damages on account of injuries or harm emanating from the seizure and detention of the U.S. Embassy and the hostages in Tehran. 3. (C) in addition, as indicated in paragraph 2(D) above, the United States is prepared to commit itself to join with the government of Iran in a claims settlement procedure which will lead to the cancellation and annulment of all claims asserted by U.S. nationals, including U.S. companies, and by agencies, instrumentalities and controlled entities of the U.S. government against Iran. 4. (A) The United States is prepared to deliver to the government of Algeria a copy of a signed presidential order prohibiting the transfer out of the United States of any properties owned by or derived from the estate of the former shah. 4. (B) The same order will require the compilation, for delivery to the government of Iran, of all information which is in the possession of the U.S. nationals or in the financial records of the U.S. government and which may serve to identify any properties of the former shah in the United States. m 4. (C) The order will also direct the attorney general of the United States to give notice to all appropriate U.S. courts that it is the position of the United States government (1) that no claim of the government of Iran to the property of the former shah should be considered legally barred either by principles of sovereign immunity or the act of state doctrine, and (2) that all decrees and judgements of the government of Iran relating to such property may be enforced in the courts of the United States in accordance with U.S. law. 5. (A) The United States believes that this response to the decision of the Iranian Majlis [parliment] represents the completion of the penultimate stage in resolving the hostage issue. The final step, which the United States believes should be taken in the next several days, would be to arrange, through the good offices of the government of Algeria, release of all hostages concurrent with the United States taking all the specific steps noted above. 5. (B) To implement this final step, the United States will deposit with the government of Algeria copies of the presidential declarations and orders noted above, to be effective upon the safe departure of all the hostages from Iran. When their safe departure is confirmed by the government of Algeria, the government of the United States wil publicly release the presidential orders and declarations.
Excerpts from the second response, delivered to Tehran Dec. 4, and explanatory comments: I. Resolution No. 2: A guiding principle of the answers under this heading is that the United States shall restore the financial position of Iran insofar as possible to that which existed prior to November 1979. A. The United States will order that Iran's deposits in United States bank offices outside the United States be transferred to Iran. The necessary procedural steps are set forth in comment No. 1. [That comment, in a document released separately by the State Department, said: ". . . it is understood that Iran is willing to honor and bring current all loans made to Iran or its instrumentalities by U.S. banks (and by syndicates including U.S. banks). . . . As each such loan is brought current and affirmed by the government of Iran . . . . the United States will require such U.S. bank to . . . transfer all Iranian deposits in its possession to Iran or any other recepient designated by Iran."] . . . C. The United States specifically commits itself to ensure the mobility and free transfer of the Iranian assets. The necessary procedural steps are set forth in comment No. 2. [That comment: "With respect to U.S. answer to paragraph i (C), it is understood that Iran is willing to pay all of its legitimate debts to U.S. persons and institutions and that it wishes terminate all related litigation. Accordingly, the United States agrees, in the context of the safe return of the hostages, to terminate all legal proceedings in U.S. courts involving claims of U.S. persons and institutions against Iran and its state enterprises, to nullify all attachments and judgements obtained therein, and to prohibit all future litigation by U.S. persons and institutions based on existing claims against Iran, when Iran agrees to submit all existing claims of U.S. persons and institutions (except those to be canceled and nullified pursuant to section IIB of the answers of the United States) to an international claims settlement process for the determination and payment of such claims. The process would include binding third-party arbitration of any claim not settled by mutual agreement. . . . "] II. Rsolution No. 3: A. All claims by American institutions and companies against Iran in United States courts will be canceled and nullified. . . . B. The U.S. is willing to cancel and nullify all claims previously or hereafter made by any U.S. individual or institution against Iran concerning the occupation of the embassy or the taking of the hostages. The commitment is explained in comment No. 3. [That comment: ". . . the United States has previously confirmed that it is prepared to withdraw all claims pending against Iran in the International Court of Justice and to refrain from pursuing any other claims for financial damages on account of injuries emanating from the seizure of the United States embassy and the detention of the hostages in Tehran. The United States undertaking will include the cancellation or nullification of claims previously or hereafter made by United States individuals or institutions concerning the occupation of the embassy and the taking of the hostages.] III. Resolution No. 4: A. The United States will put into force a freeze order requiring any person having custody or possession of any property or assets of the former shah to retain such property and assets. B. All undertakings by the United States with respect to the property and assets of the former shah include the properties and assets of the close relatives of the former shah. C. Transfer of the properties and assets of the former shah and his close relatives can occur pursuant to the procedures described in comment No. 4. [That comment: ". . . under the laws of the United States, the only entity within the United States government which could lawfully transfer the property or assets of the former shah or his relatives to the government of Iran would be a U.S. court acting pursuant to a legal proceeding brought by the government of Iran. In fact, Iran has brought such a proceeding, which is now pending in an American court . . . and that pending case affords Iran an opportunity to prove its right to have the properties and assets in question transferred to Iran. The United States government will facilitate efforts of the government of Iran to obtain and enforce judgement. . . . "]