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                                                                                              November  29, 2019

The Foreign Claims Settlement Commission of the United States


The Foreign Claims Settlement Commission (FCSC  or
Commission)  offers an avenue to provide compensation to
Americans who  suffered harm due to the acts of foreign
governments. U.S. nationals (citizens, individuals who owe
permanent allegiance to the United States, and U.S.
corporations) that are injured by foreign governments often
do not have a forum to pursue damages in U.S. or foreign
courts. In many cases, recourse may not be available in
foreign judicial systems, and sovereign immunity often bars
suits against foreign governments in U.S. courts. The FCSC
provides a forum for U.S. nationals to pursue claims against
foreign governments in some cases, but its authority is
limited to select programs. Each program involves
defined categories of claims against one or more specific
countries. As of 2017, the FCSC and its predecessor
commissions have exercised jurisdiction over more than
740,000 claims in 47 programs. It has granted nearly $4
billion in awards to U.S. nationals.

1Backgrond and Origins
The FCSC  has its origins in two post-World War II claims
commissions. In 1948, Congress created the War Claims
Commission,  which adjudicated claims by American
prisoners of war and civilian internees that suffered
maltreatment by enemy nations during World War II. Two
years later, Congress created the International Claims
Commission,  which adjudicated claims against foreign
countries that nationalized (i.e., assumed state ownership
and control of) or took U.S. citizens' private property
without compensation. Both commissions were in the
executive branch. Federal law limited the International
Claims Commission's jurisdiction to foreign countries that
provided lump sum payments to the United States as a part
of an international claims settlement agreement.

In Presidential Reorganization Plan No. 1 of 1954,
President Eisenhower combined the functions of the War
Claims Commission  and International Claims Commission
into the newly created FCSC in the executive branch. In
1980, Congress passed legislation transferring the FCSC to
the Department of Justice (DOJ) as a separate and
independent agency within DOJ.

Comp o30S  i&tion
The FCSC's  statutory authority (22 U.S.C. § 1622c) calls
for the Commission to be composed of a full-time
Chairman  and two part-time Commissioners appointed by
the President with the advice and consent of the Senate. The
Chairman  and Commissioners may be removed only for
malfeasance in office or neglect of duty. Currently, the
FCSC  consists of two Commissioners-one appointed by
President Obama and one by President Trump. The FCSC
currently does not have a Chairman.


Legal   A  tNorty
The FCSC's  current authority to administer claims
settlement programs arises from three sources. First, the
FCSC  retained the International Claims Commission's
authority to adjudicate claims for nationalizing or taking
private property against countries that have a claims
settlement agreement with the United States.

Second, Congress has passed legislation that specifically
authorizes certain FCSC programs. Such program-specific
legislation defines the country against whom claims can be
brought and the scope of available claims. For example,
Congress authorized the FCSC to hear claims against the
People's Republic of China (PRC) arising between 1949
and 1966 for either (1) uncompensated taking of private
property or (2) the disability or death of U.S. nationals
resulting from the PRC's actions. Congress has passed
program-specific legislation authorizing certain claims
against Czechoslovakia, East Germany, Iran, the Soviet
Union, and Vietnam, among others.

Third, the FCSC may establish programs based on referrals
of categories of claims from the Secretary of State. Most of
the FCSC's programs opened in the last two decades began
with referrals from the Department of State. For example,
the FCSC opened  three programs involving claims against
Libya based on Department of State referrals. The Libya
programs allowed certain claims for personal and
commercial injuries arising from terrorist incidents prior to
2006. In 2005, the Secretary of State referred a program
involving claims against Cuba for the uncompensated
taking of U.S. nationals' property after 1967. (An earlier
Cuban Claims Program  for pre-1967 takings closed in
1972.) The Department of State referred two programs-
one of which is still ongoing-concerning torture,
extrajudicial killing, aircraft sabotage, hostage-taking, or
material support for such acts by the Iraqi government.

FCSC  programs often are open for a defined period of
years, after which the FCSC no longer accepts claims.

Funding for FCSC Programs
FCSC  programs differ depending on whether there is a
source of funds available to pay claimants. Some programs
begin with a defined source of funds to pay U.S. nationals
that receive awards. The FCSC opens other programs with
the expectation that the United States will adjudicate the
total amount owed in all claims and then pursue payment
from the foreign country responsible for the harm.

Funded   Porm
For funded programs, the United States often derives
funding from its international claims settlement agreements.
Under such agreements, the responsible foreign country


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