John Kerry Defends $400 Million Payment to Iran: America Does Not Pay Ransom

U.S. Secretary of State John Kerry defended the payment of $400 million in cash to Iran on Thursday, August 5, coinciding with the release of four Iranian-American prisoners from Iranian jails, rejecting claims that it was a ransom for their freedom. Speaking at a press conference in Buenos Aires, Argentina, Kerry stated, "The United States does not pay ransom." He, along with other U.S. officials, emphasized that the payment was part of a long-standing legal dispute between Iran and the U.S. that was presented in the International Court of Justice and was negotiated separately from the nuclear agreement. Kerry clarified that the payment was unrelated to the nuclear deal made in July of the previous year with the Islamic Republic of Iran. He also expressed ignorance about a video regarding the cash being sent in wooden pallets, which Republican presidential candidate Donald Trump mentioned at a campaign rally. The Wall Street Journal reported on August 4 that the Obama administration sent $400 million in cash to Tehran via airplane at the same time as the release of the Iranian-Americans from Iranian prisons. This money was delivered in currencies such as euros, Swiss francs, and other currencies. Meanwhile, Republican critics of the Obama administration have strongly condemned this action, labeling it as ransom payment to Iran, "the world's largest state sponsor of terrorism," in exchange for the release of American prisoners. Donald Trump, House Speaker Paul Ryan, House Foreign Affairs Committee Chairman Ed Royce, and influential Republican Senator John McCain have attacked the Obama administration on this issue, demanding explanations regarding the cash transfer to Iran. The Wall Street Journal also reported that the U.S. Department of Justice objected to the sending of a plane filled with cash to Tehran at the same time as the release of American prisoners in Iran, but the U.S. State Department deemed the objection unfounded. President Barack Obama stated in January of this year that, coinciding with the release of four Iranian-American prisoners by Iran, Washington would pay $1.7 billion as principal and late fees for a suspended arms purchase contract between Iran and the U.S. that was halted after the Islamic Revolution. The $400 million mentioned by the Wall Street Journal is the principal of this contract, and the United States must also pay $1.3 billion in late fees. The Wall Street Journal noted that the timing and manner of the $400 million payment raised suspicions within the U.S. Department of Justice. One informed source stated, "Officials (of the Justice Department) knew what was going on, and their concern was that the Iranians would likely perceive this payment as ransom." The newspaper reported that Justice Department officials did not object to the $1.7 billion payment to Iran but were concerned that sending cash in wooden pallets might send a bad signal to Iran and possibly others about how U.S. policy would respond to hostage-taking.