http://www.wsj.com/articles/american-tax-dollars-for-the-mullahs-1453335546
American Tax Dollars for the Mullahs

[image: Iranian supreme leader Ayatollah Ali Khamenei at the Tehran
University campus in Iran on February 3, 2012.]

Iranian supreme leader Ayatollah Ali Khamenei at the Tehran University
campus in Iran on February 3, 2012. *Photo: Office of the Supreme
Leader/Associated Press *

Jan. 20, 2016 7:19 p.m. ET

Ali Khamenei congratulated Iran’s diplomats on Tuesday for making the
“front of arrogance and bullying”—that would be the U.S.—retreat. Iran’s
Supreme Leader has good reason to be happy. Having preserved the core of
his nuclear capabilities, his regime is now on the receiving end of a
financial windfall.

Take the financial component of the nuclear accord that took formal effect
on Saturday. In addition to lifting most sanctions and releasing more than
$100 billion in frozen Iranian assets, the Obama Administration over the
weekend agreed to pay the mullahs a separate $1.7 billion to settle an
Iranian claim dating to the 1970s.
Opinion Journal Video

Touro Institute Professor Anne Bayefsky on the Iran prisoner exchange.
Photo credit: Getty Images.

That amount includes a $400 million trust fund used by the Shah to purchase
American arms before the 1979 Islamic Revolution, plus $1.3 billion in
interest. You can argue whether the trust fund properly belongs to the
regime that overthrew the Shah, but at least that $400 million was
originally Iranian money.

The $1.3 billion interest payment will come from U.S. taxpayers, which U.S.
Secretary of State John Kerry
<http://topics.wsj.com/person/K/John-Kerry/7196> claims “was fixed at a
reasonable rate of interest.” Maybe so, but it happens that $1.7 billion is
also the amount at issue in a case brought by American victims of Iranian
terrorism against the Central Bank of Iran. The plaintiffs include victims
and survivors of the 1983 Beirut barracks bombing and the 1996 Khobar
Towers bombing, among other Iranian-directed atrocities.

The victims argue that a statute passed by Congress in 2012 entitles them
to use $1.7 billion held by the Iranians in a New York account to satisfy
judgments they’ve won against Tehran in U.S. courts. All told, such victims
hold $45 billion in civil judgments awarded by American courts over two
decades, but they have no way to collect except to attach Iranian assets in
U.S. banks.

The Iranian regime has challenged the constitutionality of the pertinent
portion of the 2012 law. The Supreme Court heard oral arguments in the case
last week and is expected to rule by June. The Obama Administration argued
in favor of the victims. Yet President Obama and Mr. Kerry didn’t press for
fair settlements for these victims as part of the nuclear deal and now seem
to be pre-emptively reimbursing Tehran for its potential losses from the
claims. The State Department told us Wednesday the settlement isn’t
connected to the claims of terrorism victims.

This week also has delivered another diplomatic triumph to Tehran, with the
quashing of international arrest warrants for 14 alleged Iranian nuclear
proliferators and arms smugglers. These include two figures associated with
Mahan Air, an airline that the U.S. alleges helps arm Bashar Assad’s regime
in Syria and transports members of Iran’s Islamic Revolutionary Guard
Corps.

The Treasury in September warned that it “will continue to expose Mahan’s
front companies, and to remind governments and the private industry in the
24 cities where Mahan continues to fly that they risk exposure to U.S.
sanctions.” Yet as research by the Foundation for Defense of Democracies
has shown, Mahan planes continue to fly routes from Tehran to destinations
in Syria, and the airline acquired nine new aircraft last year. The
quashing of an Interpol red notice for Mahan’s CEO belies Treasury’s
promise.

Mr. Obama has repeatedly assured Congress and American allies in the Middle
East that his nuclear deal wouldn’t foreclose the U.S. from punishing
Iranian terrorism and regional aggression. Mr. Khamenei will conclude
otherwise after the American President’s most recent concessions.






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