Wall Street Journal: The U.S. Government Sent Cash to Iran Simultaneously with the Release of Americans

The Wall Street Journal, citing officials in the U.S. and Europe, reports that the Obama administration sent part of the cash from a suspended arms purchase agreement, made after the revolution, to Iran 'in cash' and 'by plane' at the same time as securing a nuclear deal and the release of American citizens. The new report again refers to the payment of $1.7 billion from the U.S. to Tehran regarding the suspended arms purchase agreement following the revolution in Iran. The unexecuted arms purchase agreement prior to the revolution in Iran was valued at $400 million, to which $1.3 billion in delayed interest was added. Iranian news agencies had stated that this payment signified 'Iran's victory' in 'regarding a case in The Hague concerning the non-fulfillment of pre-revolutionary arms obligations by the U.S.' Now, the Wall Street Journal states that an amount of $400 million (but in euros, Swiss francs, and other currencies) was sent to Iran on wooden pallets via an unidentified cargo plane. This money was sourced from the central banks of the Netherlands and Switzerland; apparently, the equivalent amount in dollars was sent to these banks and converted into other currencies. The U.S. is legally unable to conduct dollar transactions with Iran, and it seems that this is where the alleged funds mentioned by the Wall Street Journal were sourced through other banks and currencies. According to the newspaper, this $400 million was the first part of the $1.7 billion that was supposed to be paid and was sent simultaneously with the release of American citizens and the commencement of the nuclear agreement's implementation. A senior U.S. official, in an interview with the Wall Street Journal, denied any connection between the payment and the release and exchange of prisoners with Iran. At the time of the release of American prisoners in Iran, a group of Iranian or Iranian-American prisoners in the U.S. were also released, which apparently stemmed from a prisoner exchange between the two countries. The Tasnim news agency reported on June 12 that the release of four American citizens and their flight clearance at Mehrabad occurred when the Iranian side was assured of loading the plane with money in Switzerland. John Kirby, spokesperson for the U.S. State Department, stated, 'As we have clearly said, negotiations for the agreement regarding the (canceled) contract were completely separate from negotiations for the release of American citizens.' According to Mr. Kirby, 'Not only were the negotiations conducted separately, but two different teams were responsible for them... including regarding the Hague issue (Iran's complaint to The Hague regarding the canceled contract), technical experts who had been involved in negotiations related to that for years were present.' A senior U.S. official told the Wall Street Journal, 'Sometimes the Iranians want cash because it is very difficult for them to access the international financial system... sometimes it takes months for them to find a way to transfer money.' The Obama administration has so far refrained from providing an official explanation regarding the payment and the interest on the canceled contract. Republicans in Congress, who hold the majority, have repeatedly called for an investigation into this matter, its relation to the release of American prisoners, and the manner of this payment.