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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (1370966)	8/15/2022 6:23:53 PM
From: Wharf Rat	2 Recommendations Recommended By pocotrader rdkflorida2 Read Replies (1) \| Respond to of 1577931

"you libtards were defending that ransom payment, claiming that it was Iran's money to begin with" And you think it wasn't? WHY DID THE UNITED STATES PAY IRAN? In the 1960s and 1970s, Iran was the largest partner of the U.S. Foreign Military Sales (FMS) Program. As an Obama administration official explained earlier this year, “As part of the FMS Program, a Trust Fund was established with Iranian funds to pay U.S. contractors as work progressed on the various contracts.” In February 1979, days before the culmination of Iran’s revolution, the United States and Iran agreed to a Memorandum of Understanding (MoU) that halted these payments and voided many of the remaining purchases. The MoU also called for Iran’s unexpended FMS funds to be placed in an interest-bearing account. Later that year, after Iran’s seizure of the U.S. Embassy in Tehran and the detention of the American diplomats, the Carter administration froze all Iranian assets in the United States. The standoff was resolved nearly 15 months later, with an agreement that freed the hostages and established the Iran-U.S. Claims Tribunal to resolve the labyrinth of financial and commercial disputes that had emerged. In 1982, Iran filed a claim with the Tribunal pertaining to the FMS Trust Fund, which Lisa Grosh, Assistant Legal Advisor at the Department of State, has described as “a multi-billion dollar breach-of-contract dispute covering 1,126 huge military sales contracts.” Grosh stated that the two sides engaged in some 40 rounds of negotiations “at this level” over several decades. Iran ramped up efforts to adjudicate the claim in 2015, asking the Tribunal to schedule comprehensive hearings on the outstanding FMS claims and requesting a preliminary ruling. The FMS Trust Fund amounted to $600 million until the George H. W. Bush administration returned $200 million to Iran in a partial settlement in 1990. WHO PAID WHO? AND HOW? The settlement announced in January involved two parts: return of the $400 million principal and payment of $1.3 billion in interest. To return the principal, the Treasury, working with the Defense Finance and Accounting Service (DFAS) and the Federal Reserve Bank of New York, made a $400 million wire transfer from DFAS to the Swiss National Bank. The $400 million was then converted into Swiss francs and withdrawn in franc banknotes, which were transferred to Geneva. On January 17, the banknotes were disbursed to an official from the Central Bank of Iran. The interest was paid from the Judgment Fund, which pays “court judgments and Justice Department compromise settlements of actual or imminent lawsuits against the government.” For a payment to be made by the Judgment Fund, Treasury must receive confirmation from the Attorney General that the settlement is in the United States’ best interests. According to Mary McCord, Principal Deputy Assistant Attorney General, National Security Division at the Department of Justice, “[a]ssessment of a settlement payment from the Judgment Fund includes consideration of the exposure that the United States faces from the claim proposed for settlement, … likelihood of an adverse ruling against the United States, the likely size of such an award, the background of the litigation, the tribunal, relevant legal arguments, relevant facts and governing legal doctrines.” Since the Judgment Fund does not allow the processing of individual claims of amounts over ten digits, the agreed upon interest—$1.3 billion—was split into 13 claims of $99,999,999.99 and one claim of the remaining $10,390,236.28. These amounts were transferred from the Judgment Fund to the Dutch National Bank, where they were converted into euros and withdrawn in euro banknotes. The Dutch bank then disbursed the notes to a representative from the Central Bank of Iran. WHY WAS INTEREST PAID? The 1979 MoU stipulated that the unexpended funds would be placed in an interest-bearing account. As it turns out, these funds were not based in such an account—no U.S. administration implemented that requirement. The reasons for this are not clear. Former Undersecretary of Defense for Policy Eric Edelman, who testified on this issue before the Senate, noted that the United States “does not let [FMS accounts] accrue interest.” Still, most if not all other claims before the Iran-U.S. Claims Tribunal have incorporated compensation for accrued interest. This is consistent with the position adopted by the Treasury Department at the outset of the 1979 assets freeze, although in nearly every case the amount of the interest to be paid has been subject to some haggling between Washington and Tehran. Obama administration officials maintain that a Tribunal decision may have resulted in a much larger judgment on the issue of accrued interest. brookings.edu