The Agreement

 On December 19, 1979, a deal was struck between the Iranian militants and the U.S. government. At first, the U.S.'s policy was not to negotiate with the terrorists. Payment for the hostages was also ruled out. The plan was to force the Iranians to fold. The American government froze 12 billion in Iranian assets and stopped all oil trade in and out of the country.

    The Iranians first contacted the Germans to try and set up a meeting with the United States. On December 15, the Germans held a secret meeting to try and set up a release agreement for the hostages. Warren Christopher was chosen to lead the team attending this meeting.

    Iran set up four conditions to accept payment for release of the hostages:

     1. The U.S. would not interfere in Iranian affairs.

     2. The frozen assets would be returned to Iran.

     3. All U.S. claims against Iran would be canceled.

     4. The wealth of the Shah returned to Iran.

 The American responses to these points were:

    1. The agreed to not interfere.

    2. We will unfreeze all assets we can, and the American courts will         unfreeze the rest as soon as possible.

     3. Claims against Iran would be canceled.

     4. The US has no power to return the Shah's wealth.

 This plan was then okayed by the president and the team flew to Algiers where the negotiations would take place.

    The team of Americans presented the response to a team of very experienced Algerian lawyers and diplomats who tweaked the answers and then presented them to the Iranians. The Iranians answered the American proposal with the demand of 14 billion of unfrozen assets and 10 billion to make sure the wealth of the Shaw is delivered. This answer was in direct conflict with what the American team proposed.

    Throughout the negotiations, many new and unforeseen problems arose needing a quick response from both the Algerians and the US. The final document was shortened to a very concise three and one half typewritten pages.

    On Monday January 19, 1981 at 7:00 AM the treaty was made official and the hostages would soon become free. All that had to happen now was for enough frozen funds to be transferred to the escrow account in the bank of England, and for the hostages to board the plan.  The hostages were finally released, and soon boarded the plane to freedom.