How can Iran change?

Upcoming elections aside, U.S. engagement could turn the tide

by Michael Petrou on Thursday, May 14, 2009 1:00pm - 5 Comments

Because of these limitations on who can run for president, and what the president can actually accomplish, many Iranians who want fundamental changes in their country will boycott the elections. Shirin Ebadi, an Iranian lawyer and Nobel Prize winner, says she will not vote. Arash Azizi, a young Iranian journalist who recently immigrated to Canada, also questions the utility of voting for Guardian Council-approved reformists. “The idea that you can gradually change the Islamic Republic into something better might be popular inside Western circles and with Mr. Obama, but it’s not really so in Iran,” he said in an interview with Maclean’s.

“Our real hope for changing Iran, my real hope and the majority of people’s hope, is for overthrowing this government. Because I believe there is no such thing as a reformed Islamic republic.” Still, Azizi thinks presidential elections in Iran can make a difference. If a reformist were elected, “we would get our books published faster. We would get our newspapers—maybe—published faster.” He hopes these small changes would make society more turbulent and lead to protests demanding more radical changes, until eventually the whole theocratic system crumbles.

Saeed Rahnema, the York University professor, is sympathetic but doesn’t think attempting to overthrow the existing regime is realistic or even desirable. Iran’s ruling clerics are too entrenched and too powerful. They have their own militia and multiple power bases in mosques and community organizations that dispense money and patronage. “Anybody who thinks that a velvet revolution, an orange revolution, all these colourful revolutions, are going to work in Iran, they don’t know Iranian politics,” he says. The other alternative is foreign military intervention, which, he says, would drive even those most opposed to the Islamic regime to the side of the government.

Engaging Iran, on the other hand, might weaken hard-liners by taking away the spectre of a Western bogeyman against which all Iranians supposedly need to unite. Rahnema admits engagement confers legitimacy. “But what can you do?” he asks. “I think Obama was right, much to the dismay of all of us, when he called it the ‘Islamic Republic.’ It is the Islamic Republic, whether we like it or not. I mean, I don’t like it, but it is. They created this mess, and we should hope that gradually it will be improved.”

An improved relationship between Iran and the United States would rearrange some of the pieces on the Middle East’s chessboard. McGill’s Payam Akhavan says Iran’s sponsorship of Hamas is based on power politics rather than ideological affinity. Iran sees Israel as a competitor and threat and is using Hamas to destabilize it. “The idea that Iran and Israel are locked into some sort of clash of civilizations between Jews and Muslims is absolute nonsense,” he says, noting that Israel provided assistance to Iran during the Iran-Iraq war. If Iran no longer felt threatened by the United States and Israel, he believes its leaders might agree to cut off Hamas.

Hezbollah, the Lebanese militia and political party, is a different story. Hezbollah is indispensable to Iran’s quest for regional influence and, unlike Hamas, its members are Shia Muslims, as are most Iranians. But Akhavan believes Iran might stop arming Hezbollah and limit itself to political support—which is essentially what Iran proposed in its 2003 “grand bargain” offer. “That tie is not going to break. But it might change,” he says. Iran’s nuclear program is also likely untouchable, at least in the short term. “I don’t think any political leader, unless he’s suicidal, would question Iran’s nuclear program, because it’s been made such a sacred cow.”

A thaw between the United States and Iran—even with an Iranian reformist as president—would be gradual, with incremental changes that might nevertheless add up to a critical shift. Iran’s leadership is pragmatic, Akhavan says, and the two countries share common interests in Afghanistan, Pakistan, and Iraq. There is room for co-operation. The cost for America will be accommodation with the Islamic Republic and an end to a policy of regime change in Iran.

This would no doubt dismay those who would interpret such a concession by the United States as an abandonment of Iranian democrats. But, Akhavan says, regime change at the hands of the United States was never a practical policy. Change is more likely to come because of economic pressures and the discontent of young people in a country where 70 per cent of the population is under 30, and therefore far too young to even remember the Islamic Revolution of 1979. “The real threat to the regime comes from within,” he says. “It doesn’t have to do with the United States. It has to do with demographics, economic conditions, the emergence of civil society. I think the clerics understand they cannot indefinitely rule.”

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    Thursday May 14th, 2009

    Maclean’s Point of View on Islamic Republic in Iran

    Author: Michael PETROU
    Title: How Can Iran Change?
    Issue: May 18th, 2009
    Pages from 30-32

    Framework:

    In this paper, author Michael PETROU explored domestic, and international affairs of the Islamic Republic of Iran in relation with United States of America.1 Particularly, US Democrat President Barack OBAMA has been inviting the theocratic state in Iran to a peace table.2

    This author claimed that during Iran-Iraq War, Israel supplied to theocratic regime with arsenal. In addition, the US and the state in Iran collaborated very closely, after the 9/11 catastrophe so that the US would be able to attack Taliban in Afghanistan. Plus, the state in Iran assisted the US for military invasion of Iraq.

    This up-coming election in Iran did not represent diversity of Islamic Republic in Iran because all candidates were conservative minded like Mahmoud AHMADI NEZHAD, Mehdi KARROUBI, Mir Hussein MOUSAVI, and Mohsen Reza.3

    Interviewed:

    Mohammad TAVAKOLI is a professor at University of Toronto and stated “Ahmadinejad remains in power. His victory in June election is by no means guaranteed. And should he be defeated, “it comes with a mandate to change the direction of Iranian foreign policy, to change the direction of Iranian domestic policy, and really do what Obama is doing in the United States…it would be a shift parallel to the shift in the United States. A renewed mandate for Ahmadinejad, on the other hand, will reinforce Iran’s hostility toward the United States and Israel, and will prolong the stifling restrictions on personal freedoms and liberties that Ahmadinejad’s government has imposed. Liberal newspapers will remain shut down, and the morality police prowl Tehran’s sidewalks looking for women exposing too much hail will stay there.”4

    Saeed RAHNEMA is a professor at York University and stated that “Non-Islamists, meaning those who do not believe in an Islamic state, they cannot possibly run. They cannot become candidates,” … There are many other reformers. There are secular reformers. But they cannot possibly run. Nobody knows their names.”5 In addition, he stated that “doesn’t think attempting to overthrow the existing regime is realistic or even desirable. Iran’s ruling clerics are too entrenched and too powerful. They have their own militia and multiple power bases in mosques and community organizations that dispense money and patronage. Anybody who thinks that a velvet revolution, an orange revolution, all these colourful revolutions, are going to work in Iran, they don’t know Iranian politics … The other alternative is foreign military intervention, which … would drive even those most opposed to the Islamic regime to the side of the government…Engaging Iran, on the other hand, might weaken hard-liners by taking away the spectre of a Western bogeyman against which all Iranians supposedly need to unite.”6

    Payam AKHAVAN is a professor at McGill University stated that “this would no doubt dismay those who would interpret such a concession by the United States as an abandonment of Iranian democrats… regime change at the hands of the United States was never a practical policy. Change is more likely to come because of economic pressures and the discontent of young people in a country where 70 per cent of the population is under 30, and therefore far too young to even remember the Islamic Revolution of 1979. The real threat to the regime comes from within … it doesn’t have to do with the United States. It has to do with demographics, economic conditions, the emergence of civil society. I think the clerics understand they cannot indefinitely rule.”7

    Arash AZIZI stated that “our real hope for changing Iran, my real hope and the majority of people’s hope, is for overthrowing this government. Because I believe there is no such thing as a reformed Islamic Republic.”8

    Antidote:

    Saeed RAHNEMA made a strong claim that theocratic regime in Iran used its muscle to suppress Iranian at every given opportunity. Thus, Payam AKHAVAN’s theory that 70% of Iran’s population would topple the regime due to economic factors would be premature conclusion.

    There was a problem for Iranian, when US President Barack OBAMA to come to a peace table with the normative control model of the theocratic regime in Iran because there should not be any doubt that the US and the regime in Iran would sign a second Algiers Accord, and the theocratic regime in Iran would last for another thirty (30) years while justice would be denied for Iranian for another thirty (30) years.

    Thank you

    Long Live Pure Divine Motherland of Iran

    Peyman
    Pawn

    Appendix:

    This author used former Revolutionary Guard Akbar GANJI as a source of information. Taking into account that Akbar GANJI was a former Revolutionary Guard and it was unclear how many virgin ladies in prison he touched prior to their executions and many more crime against humanity.

    ALGIERS ACCORDS
    January 19, 1981

    DECLARATION OF THE GOVERNMENT OF THE DEMOCRATIC AND POPULAR
    REPUBLIC OF ALGERIA
    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:
    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.
    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
    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 Settlement of U.S. Claims
    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.
    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

    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

    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

    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.
    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

    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.
    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

    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.
    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
    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.
    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.
    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.
    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.
    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

    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.

    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 GOVERNMENT OF THE DEMOCRATIC AND
    POPULAR REPUBLIC OF ALGERIA

    1. At such time as the Algerian Central Bank notifies the Governments of Algeria, Iran,
    and the United States that it has been notified by the Central Bank that the Central Bank has
    received for deposit in dollar, gold bullion, and securities accounts in the name of the Algerian
    Central Bank, as escrow agent, cash and other funds, 1,632,917.779 ounces of gold (valued by
    the parties for this purpose at $0.9397 billion), and securities (at face value) in the aggregate
    amount of $7.955 billion, Iran shall immediately bring about the safe departure of the 52 U.S.
    nationals detained in Iran. Upon the making by the Government of Algeria of the certification
    described in Paragraph 3 of the Declaration, the Algerian Central Bank will issue the instructions
    required by the following paragraph.
    2. Iran having affirmed its intention to pay all its debts and those of its controlled
    institutions, the Algerian Central Bank acting pursuant to Paragraph 1 above will issue the
    following instructions to the Central Bank:
    (A) To transfer $3.667 billion to the Federal Reserve Bank of New York to pay the
    unpaid principal of and interest through December 31, 1980 on
    (1) all loans and credits made by a syndicate of banking institutions, of which a
    U.S. banking institution is a member, to the Government of Iran, its agencies,
    instrumentalities or controlled entities, and
    (2) all loans and credits made by such a syndicate which are guaranteed by the
    Government of Iran or any of its agencies, instrumentalities or controlled entities.
    (B) To retain $1.418 billion in the escrow account for the purpose of paying the unpaid
    principal of the interest owing, if any, on the loans and credits referred to in Paragraph
    (A) after application of the $3.667 billion and on all other indebtedness held by United
    States banking institutions of, or guaranteed by, the Government of Iran, its agencies,
    instrumentalities or controlled entities not previously paid and for the purpose of paying
    disputed amounts of deposits, assets, and interests, if any, owing on Iranian deposits in
    U.S. banking institutions. Bank Markazi and the appropriate United States banking
    institutions shall promptly meet in an effort to agree upon the amounts owing.
    In the event of such agreement, the Bank Markazi and the appropriate banking institution
    shall certify the amount owing to the Central Bank of Algeria which shall instruct the Bank of
    England to credit such amount to the account, as appropriate, of the Bank Markazi or of the
    Federal Reserve Bank of New York in order to permit payment to the appropriate banking
    institution. In the event that within 30 days any U.S. banking institution and the Bank Markazi
    are unable to agree upon the amounts owed, either party may refer such dispute to binding
    arbitration by such international arbitration panel as the parties may agree, or failing such
    agreement within 30 additional days after such reference, by the Iran-United States Claims
    Tribunal. The presiding officer of such panel or tribunal shall certify to the Central Bank of
    Algeria the amount, if any, determined by it to be owed, whereupon the Central Bank of Algeria
    shall instruct the Bank of England to credit such amount to the account of the Bank Markazi or
    of the Federal Reserve Bank of New York in order to permit payment to the appropriate banking
    institution. After all disputes are resolved either by agreement or by arbitration award and
    appropriate payment has been made, the balance of the funds referred to in this Paragraph (B)
    shall be paid to Bank Markazi.
    (C) To transfer immediately to, or upon the order of, the Bank Markazi all assets in the
    escrow account in excess of the amounts referred to in Paragraphs (A) and (B).

    DECLARATION OF THE GOVERNMENT OF THE DEMOCRATIC AND POPULAR
    REPUBLIC OF ALGERIA
    CONCERNING THE SETTLEMENT OF CLAIMS BY THE GOVERNMENT OF THE
    UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE ISLAMIC
    REPUBLIC OF IRAN

    The Government of the Democratic and Popular Republic of Algeria, on the basis of
    formal notice of adherence received from the Government of the Islamic Republic of Iran and
    the Government of the United States of America, now declares that Iran and the United States
    have agreed as follows:
    Article I
    Iran and the United States will promote the settlement of the claims described in Article
    II by the parties directly concerned. Any such claims not settled within six months from the date
    of entry into force of this agreement shall be submitted to binding third-party arbitration in
    accordance with the terms of this agreement. The aforementioned six months’ period may be
    extended once by three months at the request of either party.
    Article II
    1. An International Arbitral Tribunal (the Iran-United States Claims Tribunal) is hereby
    established for the purpose of deciding claims of nationals of the United States against Iran and
    claims of nationals of Iran against the United States, and any counterclaim which arises out of
    the same contract, transaction or occurrence that constitutes the subject matter of that national’s
    claim, if such claims and counterclaims are outstanding on the date of this agreement, whether or
    not filed with any court, and arise out of debts, contracts (including transactions which are the
    subject of letters of credit or bank guarantees), expropriations or other measures affecting
    property rights, excluding claims described in Paragraph 11 of the Declaration of the
    Government of Algeria of January 19, 1981, and claims arising out of the actions of the United
    States in response to the conduct described in such paragraph, and excluding claims arising
    under a binding contract between the parties specifically providing that any disputes thereunder
    shall be within the sole jurisdiction of the competent Iranian courts in response to the Majlis
    position.
    2. The Tribunal shall also have jurisdiction over official claims of the United States and
    Iran against each other arising out of contractual arrangements between them for the purchase
    and sale of goods and services.
    3. The Tribunal shall have jurisdiction, as specified in Paragraphs 16-17 of the
    Declaration of the Government of Algeria of January 19, 1981, over any dispute as to the
    interpretation or performance of any provision of that declaration.
    Article III
    1. The Tribunal shall consist of nine members or such larger multiple of three as Iran and
    the United States may agree are necessary to conduct its business expeditiously. Within ninety
    days after the entry into force of this agreement, each government shall appoint one-third of the
    members. Within thirty days after their appointment, the members so appointed shall by mutual
    agreement select the remaining third of the members and appoint one of the remaining third
    President of the Tribunal. Claims may be decided by the full Tribunal or by a panel of three
    members of the Tribunal as the President shall determine. Each such panel shall be composed by
    the President and shall consist of one member appointed by each of the three methods set forth
    above.
    2. Members of the Tribunal shall be appointed and the Tribunal shall conduct its business
    in accordance with the arbitration rules of the United Nations Commission on International
    Trade Law (UNCITRAL) except to the extent modified by the parties or by the Tribunal to
    ensure that this agreement can be carried out. The UNCITRAL rules for appointing members of
    three-member Tribunals shall apply mutatis mutandis to the appointment of the Tribunal.
    3. Claims of nationals of the United States and Iran that are within the scope of this
    agreement shall be presented to the Tribunal either by claimants themselves, or, in the case of
    claims of less than $250,000, by the Government of such national.
    4. No claim may be filed with the Tribunal more than one year after the entry into force
    of this agreement or six months after the date the President is appointed, whichever is later.
    These deadlines do not apply to the procedures contemplated by Paragraphs 16 and 17 of the
    Declaration of the Government of Algeria of January 19, 1981.
    Article IV
    1. All decisions and awards of the Tribunal shall be final and binding.
    2. The President of the Tribunal shall certify, as prescribed in Paragraph 7 of the
    Declaration of the Government of Algeria of January 19, 1981, when all arbitral awards under
    this agreement have been satisfied.
    3. Any award which the Tribunal may render against either government shall be
    enforceable against such government in the courts of any nation in accordance with its laws.
    Article V
    The Tribunal shall decide all cases on the basis of respect for law, applying such choice of law
    rules and principles of commercial and international law as the Tribunal determines to be
    applicable, taking into account relevant usages of the trade, contract provisions and changed
    circumstances.
    Article VI
    1. The seat of the Tribunal shall be The Hague, The Netherlands, or any other place
    agreed by Iran and the United States.
    2. Each government shall designate an agent at the seat of the Tribunal to represent it to
    the Tribunal and to receive notices or other communications directed to it or to its nationals,
    agencies, instrumentalities, or entities in connection with proceedings before the Tribunal.
    3. The expenses of the Tribunal shall be borne equally by the two governments.
    4. Any question concerning the interpretation or application of this agreement shall be
    decided by the Tribunal upon the request of either Iran or the United States.
    Article VII
    For the purposes of this agreement:
    1. A “national” of Iran or of the United States, as the case may be, means (a) a natural
    person who is a citizen of Iran or the United States; and (b) a corporation or other legal entity
    which is organized under the laws of Iran or the United States or any of its states or territories,
    the District of Columbia or the Commonwealth of Puerto Rico, if, collectively, natural persons
    who are citizens of such country hold, directly or indirectly, an interest in such corporation or
    entity equivalent to fifty per cent or more of its capital stock.
    2. “Claims of nationals” of Iran or the United States, as the case may be, means claims
    owned continuously, from the date on which the claim arose to the date on which this agreement
    enters into force, by nationals of that state, including claims that are owned indirectly by such
    nationals through ownership of capital stock or other proprietary interests in juridical persons,
    provided that the ownership interests of such nationals, collectively, were sufficient at the time
    the claim arose to control the corporation or other entity, and provided, further, that the
    corporation or other entity is not itself entitled to bring a claim under the terms of this
    agreement. Claims referred to the Arbitral Tribunal shall, as of the date of filing of such claims
    with the Tribunal, be considered excluded from the jurisdiction of the courts of Iran, or of the
    United States, or of any other court.
    3. “Iran” means the Government of Iran, any political subdivision of Iran, and any
    agency, instrumentality, or entity controlled by the Government of Iran or any political
    subdivision thereof.
    4. The “United States” means the Government of the United States, any political
    subdivision of the United States, any agency, instrumentality or entity controlled by the
    Government of the United States or any political subdivision thereof.
    Article VIII
    This agreement shall enter into force when the Government of Algeria has received from
    both Iran and the United States a notification of adherence to the agreement.

    ESCROW AGREEMENT

    This Escrow Agreement is among the Government of the United States of America, the
    Federal Reserve Bank of New York (the “FED”) acting as fiscal agent of the United States, Bank
    Markazi Iran, as an interested party, and the Banque Centrale d’Algerie acting as Escrow Agent.
    This Agreement is made to implement the relevant provisions of the Declaration of the
    Government of Algeria of January 19, 1981 (the “Declaration”). These provisions concern the
    establishment of escrow arrangements for Iranian property tied to the release of United States
    nationals being held in Iran.
    1. In accordance with the obligations set forth in paragraph 4 of the Declaration, and
    commencing upon the entry into force of this Agreement, the Government of the United States
    will cause the FED to:
    (A) Sell, at a price which is the average for the middle of the market, bid and ask prices
    for the three business days prior to the sale, all U.S. Government securities in its custody
    or control as of the date of sale, which are owned by the Government of Iran, or its
    agencies, instrumentalities or controlled entities; and
    (B) Transfer to the Bank of England as depositary for credit to accounts on its books in
    the name of the Banque Centrale d’Algerie, as Escrow Agent under this Agreement, all
    securities (other than the aforementioned U.S. Government securities), funds (including
    the proceeds from the sale of the aforementioned U.S. Government securities), and gold
    bullion of not less than the same fineness and quality as that originally deposited by the
    Government of Iran, or its agencies, instrumentalities or controlled entities, which are in
    the custody or control of the FED and owned by the Government of Iran, or its agencies,
    instrumentalities or controlled entities as of the date of such transfer.
    When the FED transfers the above Iranian property to the Bank of England, the FED will
    promptly send to the Banque Centrale d’Algerie a document containing all information necessary
    to identify that Iranian property (type, source, character as principal or interest).
    Specific details relating to securities, funds and gold bullion to be transferred by the FED
    under this paragraph 1 are attached as Appendix A.
    2. Pursuant to the obligations set forth in paragraphs 5, 6 and 8 of the Declaration, the
    Governmentof the United States will cause Iranian deposits and securities in foreign branches
    and offices of United States banks, Iranian deposits and securities in domestic branches and
    offices of United States banks, and other Iranian assets (meaning funds or securities) held by
    persons or institutions subject to the jurisdiction of the United States, to be transferred to the
    FED, as fiscal agent of the United States, and then by the FED to the Bank of England for credit
    to the account on its books opened in the name of the Banque Centrale d’Algerie as Escrow
    Agent under this Agreement (the Iranian securities, funds and gold bullion mentioned in
    paragraph 1 above and deposits, securities and funds mentioned in this paragraph 2 are referred
    to collectively as “Iranian property”).
    3. Insofar as Iranian property is received by the Bank of England from the FED in
    accordance with this Agreement, the Iranian property will be held by the Bank of England in the
    name of the Banque Centrale d’Algerie as Escrow Agent as follows:
    — The securities will be held in one or more securities custody accounts at the Bank of
    England in the name of the Banque Centrale d’Algerie as Escrow Agent under this
    Agreement.
    —- The deposits and funds will be held in one or more dollar accounts opened at the
    Bank of England in the name of Banque Centrale d’Algerie as Escrow Agent under this
    Agreement. These deposits and funds will bear interest at rates prevailing in money
    markets outside the United States.
    —- The gold bullion will be held in a gold bullion custody account at the Bank of
    England, in the name of the Banque Centrale d’Algerie as Escrow Agent under this
    Agreement.
    —- It will be understood that the Banque Centrale d’Algerie shall have no liability for
    any reduction in the value of the securities, bullion, and monies held in its name as
    Escrow Agent at the Bank of England under the provisions of this Agreement.
    4. (a) As soon as the Algerian Government certifies in writing to the Banque Central
    d’Algerie that all 52 United States nationals identified in the list given by the United States
    Government to the Algerian Government in November, 1980, now being held in Iran, have
    safely departed from Iran, the Banque Centrale d’Algerie will immediately give the instructions
    to the Bank of England specifically contemplated by the provisions of the Declaration and the
    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 Government of the Democratic
    and Popular Republic of Algeria, which are made part of this Agreement. The contracting parties
    resolve to work in good faith to resolve any difficulty that could arise in the course of
    implementing this Agreement.
    (b) In the event that
    (i) either the Government of Iran or the Government of the United States notifies
    the Government of Algeria in writing that it has given notice to terminate its
    commitments under the Declaration referred to above, and
    (ii) a period of 72 hours elapses after the receipt by the Government of Algeria of
    such notice, during which period the Banque Centrale d’Algerie has not given the
    Bank of England the instruction described in subparagraph (a) above,
    the Banque Centrale d’Algerie will immediately give the instructions to the Bank of England
    specifically contemplated by the provisions of the Declaration, and the 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 Government of the Democratic and Popular Republic of
    Algeria.
    (c) If the certificate by the Government of Algeria referred to in subparagraph (a) has
    been given before the United States Government has effectively terminated its commitment
    under the Declaration, the Iranian property shall be transferred as provided in subparagraph (a)
    of this paragraph 4.
    (d) The funds and deposits held by the Bank of England under this Agreement will earn
    interest at rates prevailing in money markets outside the United States after their transfer to the
    account of the Banque Centrale d’Algerie, as Escrow Agent, with the Bank of England, and such
    interest will be included as part of the Iranian property for the purposes of subparagraphs (a) and
    (b) of this paragraph 4.
    5. On the date of the signing of this Agreement by the four parties hereto, the Banque
    Centrale d’Algerie and the FED will enter into a Technical Arrangement with the Bank of
    England to implement the provisions of this Agreement.
    Pursuant to that Technical Arrangement between the FED, the Bank of England and the
    Banque Centrale d’Algerie, the FED shall reimburse the Bank of England for losses and
    expenses as provided in paragraph 10 thereof. The FED will not charge the Banque Centrale
    d’Algerie for any expenses or disbursements related to the implementation of this Agreement.
    6. This Agreement will become effective as soon as it has been signed by the four parties
    to it and the Banque Centrale d’Algerie and the FED have entered into the Technical
    Arrangement with the Bank of England referred to in paragraph 5 of this Agreement.
    7. Throughout its duration, this Agreement may be amended, canceled, or revoked only
    with the written concurrence of all four of the signatory parties.
    8. Nothing in this Agreement shall be considered as constituting, in whole or in part, a
    waiver of any immunity to which the Banque Centrale d’Algerie is entitled.
    9. A French language version of this Agreement will be prepared as soon as practicable.
    The English and French versions will be equally authentic and of equal value.
    10. This Agreement may be executed in counterparts, each of which constitutes an
    original.
    In Witness whereof, the parties hereto have signed this Agreement on January 20, 1981

  • Trim

    Democracy and Islam can not go together , I do not even know why they even want to create a semblance of democracy in the first place. Iran defies the west with brave face but loves to create a perception of democracy, I do not know why? US is in the habit of threatening and fearing Iran, sometime to please Israel or just because America is on a mission to reform the world the way it seems fit. If Iran does not stop its nuclear program we will ! the Iran responds by saying . do what you want we are ready !, The threats that are intended to intimidate Iran are always welcome it seems. and the way Iranian Govt responds is impressive , American bullying looks like the bluffing of a timid Super power that can not actually carry out the threats.While Iranians would love to drag them into an all out war .The best time to drag US into a war , but US administration is wiser than that. They must find a better way of pleasing Israel than constantly bullying Iran. there is no shortage of creative Ideas to keep Israel Happy
    just extend the license to kill awarded by US to Israel . what else would they want ! Israel happy , God happy and Iranians God humiliated, happy ending.

  • Labeed

    I have some points that I would like to mention. if we go back to the tragedy of sept. 11. we will find most of the attackers came from Saudi Arabia, non of them is Iranian. but we seldom find any accusation from the American administration to the Saudi Kingdom.
    In the Islamic world, the muslims are divided into many sect. the attackers of Sept. 11 belong to Wahabist sect. which is raised and funded in the Saudi Arabia and by the King of Saudi and his surroundings. The other sect is the Shia which are first Enemy of Wahabist. these two sect consider each other the real enemy and the destroyer of Islam.
    the question here how can Iran which is mostly Shia support Alqaeda and the wahabism and they both see each the first enemy.
    I believe its all coming from the hidden ties between Saudi Arabia and Israel and the bad relationship between Iran and Israel which has a very powerful lobby in the united states.
    As a result, the American people are paying the bill of misleading and fabricated information giving to them by their leaders.

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  • immortalguardofiran

    Total Removal of Islamic Republic of Iran, and Iranian determine their own state and government.

From Macleans