Originally from World Arbitration Reporter (WAR) - 2nd Edition

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I.  INTRODUCTION

A. Purpose

The Algiers Accords were signed on 19 January 1981. They comprise a framework of agreements that resulted from negotiations between the United States and Iran (also referred to herein as “the Parties”) following the capture and detention of diplomatic, consular and administrative personnel of the U.S. Embassy in Iran on 14 November 1979 and the subsequent freezing by the United States of all Iranian assets subject to U.S. jurisdiction. The Algiers Accords consist of two principal agreements, the General Declaration and the Claims Settlement Declaration, together with five technical agreements. 

The General Declaration comprises two general principles that provide insight into its purpose. The first general principle (“A”) provided that the United States “will restore the financial position of Iran, in so far as possible, to that which existed prior to November 14, 1979” and to ensure the mobility and free transfer of all Iranian assets within the United States’ jurisdiction. The second general principle (“B”) provided that both Iran and the United States would terminate all litigation between “the government of each party and the nationals of the other,” and would settle such claims “through binding arbitration,” which was provided for in the Claims Settlement Declaration.

While the General Declaration mainly dealt with the release of Iranian assets held in U.S. banks which had been frozen after the hostage crisis and the return of the former Shah’s assets, it also included, in Point I, a provision concerned with U.S. non-intervention in Iranian internal affairs. This provision has turned out to be a contentious one and has itself given rise to State-to-State proceedings between the two Parties relating to events that transpired after the conclusion of the Accords.

The Claims Settlement Declaration provided for the establishment of an international arbitral tribunal, the Iran-United States Claims Tribunal (“the Tribunal”), located in The Hague, The Netherlands, to settle the outstanding claims between the nationals of Iran and the United States.