The Obama administration secretly arranged a plane delivery of $400 million in cash on the same day Iran released four American prisoners and formally implemented the nuclear deal, US officials confirmed Wednesday.

  • Wall Street Journal story published Wednesday that described the delivery of the cash to Tehran in January
  • $400 million U.S. payment to Iran delivered in cash
  • White House officials: Payment did not constitute ransom

President Barack Obama approved the $400 million transfer, which he had announced in January as part of the Iran nuclear deal.

The money was flown into Iran on wooden pallets stacked with Swiss francs, euros and other currencies as the first installment of a $1.7 billion settlement resolving claims at an international tribunal at The Hague over a failed arms deal under the time of the Shah.

A fifth American man was released by Iran separately.

Details of the cash delivery drew fresh condemnation of the Iran deal from Republicans. They charged that the administration had empowered a major sponsor of terrorism because the nuclear agreement enables Tehran to re-enter the international economy and gives it access long-frozen funds.

In the late 1970s the Iranian government, under the U.S.-backed shah, paid the United States $400 million for military equipment. The equipment was never delivered because in 1979, his government was overthrown, revolutionaries took American hostages at the U.S. Embassy in Tehran, and diplomatic relations between the United States and Iran were severed.

In 1981, the United States and Iran agreed to set up a commission at The Hague that would rule on claims by each country for property and assets held by the other. Iran's claim for return of the equipment payment was among many that had been tied up in litigation before the Iran-U.S. Claims Tribunal, and interest the U.S. owed for holding the money for so long was growing.

Litigation over these claims has continued intermittently for 35 years, with some being settled and others going to the tribunal for judgment. All private U.S. claims before the tribunal have been resolved, with Iran paying more than $2.5 billion to American people and businesses. Some claims remain unresolved.

Obama administration officials insist the payment did not constitute ransom and that there were was no quid pro quo for the payment. They said the agreement on the release of the prisoners dovetailed with the resolution of parallel negotiations over the dispute of the failed arms deal.

"It's against the policy of the United States to pay ransom for hostages," White House spokesman Josh Earnest said Wednesday.

(Compiled from AP/CNN reports)