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COMPARISON OF DRAFT UK ORDERS

SANCTIONS AGAINST IRAN:

AND ACTION BY OTHER EC STATES

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SUMMARY OF ORDERS

1. The Iran (Trading Sanctions) Order 1980:

(a) prohibits any person from making or performing a contract for the supply of embargoed goods which are in the UK to any person in Iran, subject to certain exceptions, the most important of which concerns a contract made before the date of the Order. A contract, for this purpose, includes reference to a contract made in continuation of a course of business dealing which existed immediately before the date of the Order;

(b) prohibits any person from making or performing a contract for the transport of embargoed goods by land, sea or air from the UK to Iran;

(c) prohibits any person from making or performing a contract for the supply of industrial, scientific or technological services relating to the installation of industrial plant or facilities in Iran, where the installation begins after the date of the Order;

(d) applies these sanctions to the Dependent Territories.

2.

The Export of Goods (Control) (Iran Sanctions) Order 1980 prohibits the export of embargoed goods, subject to certain exceptions, similar to those applying to paragraph 1(a) above.

ACTION BY OTHER EUROPEAN COMMUNITY STATES

3.

All other European Community States have announced the introduction on 22 May of sanctions in accordance with the Naples decision, including the banning of exports under con- tracts made after 4 November 1979. However, on particular aspects of sanctions, their practice appears to differ widely, both between themselves and from the draft UK sanctions Order. We have received the texts of the decrees introduced by France, Germany, Belgium and Denmark, and full particulars of the measures to be introduced by Luxembourg. We have not yet received the texts of the measures introduced by Ireland or the Netherlands. Italy will be proceeding solely on the basis of Ministerial instructions. We are still trying to get further particulars from these states, and concerning certain aspects of the measures of those states whose decrees we have already received. These should be available before the UK Orders are considered by Parliament, but it is necessary to make a judgment now on whether the coverage of the

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