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After the wreckage of his election defeat—in Iran a day of public rejoicing over the anniversary of the embassy occupation—negotiation continued. A considerable difficulty, it was clear, would be the disentangling of the Iranian assets from legitimate claims already being pressed in U.S. courts. Weeks went by as progress seemed stalled again. DEATH TO CARTER slogans on the embassy walls were painted over. DOWN WITH REAGAN slogans were put in their place. Deputy Secretary of State Warren Christopher conferred repeatedly with Algerian go-betweens on the Iranians' fears and sticking points.
On their second Christmas in captivity, the hostages were manipulated by Iran's propagandists in a display that was both maddening and somewhat comforting for their relatives at home. TV films were transmitted to the U.S. over five days. Initially, only 16 hostages were shown, inspiring fear for the well-being of the others. Then ten more appeared. Finally 43 were counted, many reading messages to their families. Some of the Americans appeared wooden, some tearful, others more relaxed, but, understandably, the strain showed. More reassuringly, an Algerian diplomat claimed he had visited all 52 over the holiday.
A weary Jimmy Carter remained stubbornly determined to wipe out his obligation to the hostages before he left the White House. Finally, he did manage to set the stage for ending the grotesque ritual of vengeance, frustration and mutual incomprehension that had done so much damage to each country.
—By John Skow