RESTRICTED
29699
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SOME EXPORTS TO IRAN ARE MADE UNDER VARIOUS COMMERCIAL ARRANGE- MENTS, SUCH AS FRAMEWORK AND JOINT VENTURE ARRANGEMENTS REFLECT- ING LONGSTANDING AND REGULAR BUSINESS COMMITMENTS. THE ORDERS
PROVIDE THAT REFERENCES TO CONTRACTS MADE BEFORE THE DATE ON
WHICH THE ORDERS CAME INTO OPERATION INCLUDE NEW CONTRACTS FOR
SALE OR SUPPLY MADE IN CONTINUATION OF AN ESTABLISHED COURSE OF
BUSINESS DEALING BETWEEN THE SAME PARTIES, RELATING TO GOODS OF
THE SAME OR SIMILAR CLASS, AND WHICH EXISTED IMMEDIATELY BEFORE
THAT DATE.
8. THERE HAVE BEEN ARTICLES IN TODAY'S BRITISH PRESS SUGGESTING
THAT THIS DEFINITION OF EXEMPTED CONTRACTS PROVIDES AN EASY
LOOPHOLE IN THE SANCTIONS BY WHICH UK TRADE MAY ACTUALLY INCREASE
FOLLOWING THE SANCTIONS ORDERS. THIS IS MISLEADING. IMPORTANT
CATEGORIES OF BUSINESS WITH IRAN WILL BE AFFECTED BY THE ORDERS,
INCLUDING BUSINESS BY NEW EXPORTERS OR BY THOSE WITH NO LONG-
ESTABLISHED BUSINESS: EXPORTS TO NEW CUSTOMERS: NEW CLASSES
OF EXPORTS TO OLD CUSTOMERS: NEW PROJECT WORK, WHICH BY ITS
NATURE IS ONE-OFF BUSINESS: AND THE RE-ENTRY OF FIRMS WHICH
WITHDREW FOR THE IRANIAN MARKET DURING THE REVOLUTION.
SERVICE CONTRACTS
9. THE VETOED UN RESOLUTION CALLED FOR THE PROHIBITION OF NEW
SERVICE CONTRACTS IN SUPPORT OF INDUSTRIAL PROJECTS. THESE ARE
NOT INCLUDED IN THE ORDERS SINCE NOT ALL OF THE NINE HAVE MADE
ORDERS ON THIS POINT. WE HAD ORIGINALLY INTENDED TO COVER THESE
CONTRACTS, ARE PREPARED TO DO SO IF EC PARTNERS CAN AGREE TO
COVER THEM SATISFACTORILY, AND HAVE SO INFORMED OTHER EC
GOVERNMENTS.
FINANCIAL MEASURES
10. THESE ARE NOT COVERED IN OUR LEGISLATION, THE DESIRED EFFECT
BEING ACHIEVED THROUGH GUIDANCE (PARA 4 OF MY GUIDANCE TUR).
PURPOSE OF SANCTIONS
11.
IF QUESTIONED ON THE COVERAGE AND GENERAL EFFECTIVENESS OF
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RESTRICTED
/ THE SANCTIONS