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...much protection to extend to the U.S. steel industry and whether to allow banks to open branches in other states. The President also was, as always, preoccupied with the hostage crisis in Iran, giving final approval to a State Department message that was dispatched to Tehran through Algerian intermediaries (see WORLD...

Author: /time Magazine | Title: Time Out in Washington | 1/12/1981 | See Source »

Three harried-looking Algerian diplomats, conspicuous in their distinctive tailored overcoats, landed at Mehrabad Airport in Tehran last Friday in an atmosphere of high anxiety and tight security. Greeted by aides of Prime Minister Mohammed Ali Raja'i, they were led quickly past a group of jostling reporters held back by a cordon of police and Islamic Guards, and ushered by plainclothes security men into Mercedes limousines that whisked them directly to a meeting with top Iranian officials. In a dark brown briefcase, the Algerians carried a seven-page document, a formal U.S. bargaining proposal in the hostage negotiations...

Author: /time Magazine | Title: Hostages: Trying One Last Time | 1/12/1981 | See Source »

With the clock running out on the Carter Administration, U.S. negotiators and the Algerian intermediaries had met at Camp David and in Washington for nearly four days to prepare the reply to Tehran's latest demand for the release of 52 American hostages-the infamous $24 billion "guarantee" that President Carter had angrily and accurately described as "ransom." Nonetheless, Administration officials decided that a final offer just might succeed. The U.S. negotiators placed two hopes on the latest effort: first, that a suitable formula could still be found for satisfying Iran's demands for financial guarantees; second, that...

Author: /time Magazine | Title: Hostages: Trying One Last Time | 1/12/1981 | See Source »

...first time since serious talks began last November, the U.S. in a sense issued a deadline for Tehran's acceptance of its terms. While seeking to avoid any impression of giving an ultimatum, the American negotiators stressed to the Algerian intermediaries that offers made by Carter are good only until Jan. 20. If the mechanisms for a hostage release were not set in motion by Jan. 16 at the latest, the Algerians were told, all bets would be off. Noted a senior U.S. official: "Our best chance is for this to follow the pattern of labor negotiations-after...

Author: /time Magazine | Title: Hostages: Trying One Last Time | 1/12/1981 | See Source »

...main innovation contained in last week's proposal, explained a U.S. negotiator, was to set up "a simple device to deal with the Iranian suspicions that we will not do what we say we will do." The suggestion: an Algerian escrow account, into which the U.S. would deposit $2.5 billion of the Iranian assets now held by the Federal Reserve, along with approximately $4 billion held by U.S. banks abroad. This fund would comprise that portion of U.S.-controlled Iranian assets which are free of all claims and attachments. The Iranians would be able to draw on the account...

Author: /time Magazine | Title: Hostages: Trying One Last Time | 1/12/1981 | See Source »

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