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.In Confidence

TYPE: Draft/Final 1+

Reference

Your Reference

Copies to: Mr Donald

Mr Stratton

Mr Rushford, Legal Advisers Mrs Denza, Legal Advisers WIAD; SED; SPD; SAMD; MCD; HKGD; FED.

DEPENDENT TERRITORIES

SUBJECT:

SANCTIONS AGAINST IRAN:

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CAVEAT....

requirement how

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Enclosures-flag(s)...........

Problem

1.

Whether to apply sanctions measures being taken against Iran to the Dependent Territories and, if so, what legis- lative steps to take in order to give effect to these,

Recommendation

2.

I recommend that sanctions should not be applied in the Dependent Territories and that the latter should be informed accordingly. He spree.

Background and Argument

3. The question arises as to whether the sanctions which HMG is imposing against Iran should be extended so as to take effect in our Dependent Territories. Consultation with our EC partners reveals that the Dutch do not intend to

extend sanctions to the Netherlands Antilles, and that the

French will only apply sanctions to a limited extent,

i.e. to direct trade.

imvatitihani A

4.

-

Clare is 41

If we were to apply the Export of Goods (Control) (Iran Sanctions) Order 1980 and the Iran (Trading Sanctions)

Order 1980 to the Dependent Territories, we would be asking much more of them than the, French are of their overseas

territories. This could well lead to Dependent Territories asking why they have been singled out to take part in a quarrel for which they have no direct responsibility, and why the territories of the other metropolitan powers in the Community have not been required to act in the same way.

Even more damaging in terms of HMG's relations with the

Dependent Territories would be the impression that the

/latter50 ST pd 0532078 12/78 H+P Ltd Bly

CONFIDENTIAL

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