30. Editorial Note
On November 14, 1979, Iranian Acting Foreign Minister Abol Hasan Bani-Sadr told reporters in Tehran that Iran would transfer approximately $12 billion deposited in U.S. banks to branches of banks that would not be able to block the funds. He specifically mentioned Iranian withdrawal of funds from Chase Manhattan Bank in New York, headed by David Rockefeller. (John Kifner, “Iran Defends Move To Withdraw Funds,” New York Times, November 15, 1979, page A1) Rockefeller, a friend of the Shah, had lobbied for the Shah’s acceptance into the United States for medical treatment. Further documentation is scheduled for publication in Foreign Relations, 1977–1980, volume X, Iran: Revolution, January 1977–November 1979.
The same day, in response, President Jimmy Carter issued Executive Order 12170, which states that the situation in Iran “constitutes an unusual and extraordinary threat to the national security, foreign policy and economy of the United States and [I] hereby declare a national emergency to deal with that threat.” Under the terms of this order, the President froze all Iranian Government and central bank assets in the United States. A White House announcement issued at the same time noted that the freeze, which included assets in all U.S. banks and their foreign branches and subsidiaries, was to ensure that claims on Iran by the United States or its citizens would be covered, (Public Papers: Carter, 1979, Book II, pages 2118–2119)
Secretary of the Treasury William Miller told reporters that Iran’s liquid assets amounted to less than $6 billion, the largest component of which was $1.3 billion in Treasury notes held by the Federal Reserve Bank of New York. The freeze did not affect the assets of private individuals, including those of the former Shah. (Edward Walsh and John M. Goshko, “The Freeze: U.S. Blocks Iran Assets, Heads Off Debate at the U.N.,” Washington Post, November 15, 1979, page A1; Bernard Gwertzman, “U.N. Session Averted,” New York Times, November 15, 1979, page A1)