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TIME: Almanac 1990
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1990 Time Magazine Compact Almanac, The (1991)(Time).iso
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1990-09-19
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NATION, Page 65A Game of Winks and Nods
In his Inaugural Address last January, George Bush obliquely
appealed to Iran to work with him for the release of nine American
hostages held by Islamic groups in Lebanon. Since then the U.S. and
Iran have carried on a delicate game of winks and nods, feints and
gestures. The game sometimes requires both sides, for their own
reasons, to pretend that they are not actually playing. And for the
Americans, there is always the suspicion that the Iranian aloofness
is for real.
Nonetheless, a subdued hope of movement surrounded the news
last week that the U.S. had consented to repay $567 million in
frozen Iranian assets. The agreement was reached after two days of
negotiations between State Department legal adviser Abraham Sofaer
and a senior adviser to Iran's President Ali Akbar Hashemi
Rafsanjani. The two met in the Hague, site of the Iran-U.S. Claims
Tribunal that was set up as part of the 1981 deal that freed the
62 American embassy hostages in Tehran. Both sides agreed that Iran
will be paid most of the balance remaining in an account
established to settle claims from U.S. banks that made loans to the
Shah's government before the 1979 Islamic revolution.
Several months ago, Iran informed the tribunal that in its view
most of the claims had been paid out. Tehran wanted the balance,
now about $820 million, that remained of the $1.4 billion the
account originally held. In 1987 the Reagan Administration had
unsuccessfully resisted a similar $500 million claim by Iran
against a different account. This time the Bush Administration
responded by dispatching Sofaer to the Hague. As part of the deal
that was eventually reached, Iran agreed that $243 million from the
account will be transferred to a third fund, covering claims
against Iran by individual American citizens and corporations.
Iran has several times linked any effort on behalf of the
hostages to the release of Iranian assets. It calculates those to
be worth far more than the amount unfrozen last week, including
perhaps what it claims are $12 billion in weapons purchased from
the U.S. but never delivered. So the Iranians' public response to
the deal in the Hague was lukewarm. Perhaps leery of giving
domestic hard-liners grounds to charge that the Islamic republic
is negotiating with the Great Satan, Deputy Foreign Minister
Mahmoud Vaezi described the deal as a decision made by the Hague
tribunal and not by Washington. "It has nothing to do with the U.S.
Administration's goodwill," he insisted.
In fact, the deal had been reviewed in the White House by the
National Security Council and approved by George Bush, who had been
urging the State Department to press ahead in the complicated
claims-settlement process. At his press conference last week the
President admitted to a hope that the agreement would eliminate a
further obstacle to cooperation by the Iranians. "I'd like to get
this underbrush cleaned out now," he said. "I hope they will do
what they can to influence those who hold these hostages."
But with memories of the Iran arms-for-hostages swaps still
fresh, American officials too have been careful to reject
suggestions that the two nations are conducting anything like
hostage negotiations. "You want to do things that are justifiable
on their own merits and defensible in terms of U.S. interests,"
said a State Department official. "And if Iran wants to take it as
a signal, fine."
The next "signal" from the U.S. may be an agreement to pay
compensation to survivors of those killed in the Iran Air passenger
plane shot down in July 1988 by the U.S.S. Vincennes. The U.S. has
already begun paying families of non-Iranian passengers, but
compensation to Iranians, who account for most of the 290 people
aboard, has been held up by a lawsuit the Tehran government is
pursuing against the U.S. in the International Court of Justice.
Iran's Rafsanjani is believed by Washington to be anxious to
dispose of the hostage issue quickly so he can open his war-ravaged
country to the outside world. But powerful hard-liners still want
to block any contact with the West. Former Interior Minister Ali
Akbar Mohtashami, one of the most intransigent of the revolutionary
mullahs, was excluded from Rafsanjani's government earlier this
year. He can still get mobs out into the streets, however, as he
proved by leading large anti-American demonstrations in Tehran
earlier this month to mark the tenth anniversary of the seizure of
the U.S. embassy.
Events like that make the White House think Rafsanjani cannot
yet deliver even if he wants to. "We're continuing behind the
scenes to try to follow certain rabbit trails," the President said
last week. "So far, they've ended up at dead ends." Earlier this
month U.S. intelligence sources reported rumors that the hostages
would be released on the anniversary of the embassy seizure. That
hope also proved false. Now Americans must wait to see if the
agreement in the Hague will amount to a further move in the hostage
game, or just another dead end.