Treasury Chambers

CONFIDENTIAL

Parliament Street London SW1P 3AG

Telex 262405

DE Lyscom Esq.;

Foreign and Commonwealth Office, Financial Relations Department

(2)

"ND 22/5 mm Cafee)

Telephone Direct Line 01-233 4536

Switchboard 01-233 3000

The Bank's 'point - paragraph

of 2015 2 had already bee

Your reference

Our reference

Date

taken

لسعاده

on board. I have

प the Bank.com Co consider which Dep. Terr. banks, if any

any ile UK

mparable to

cleari 20 May 1980

are

bales,

Shy

Dear Dand,

IRAN SANCTIONS : DEPENDENT TERRITORIES

You told me earlier today that, in accordance with the agreement reached at Naples, sanctions would have to be applied by the UK's dependent territories. You suggested that, as part of this process, we should ask the authorities in the dependent territories to implement voluntary financial measures on the lines of those operated within the UK since last December.

2. As we agreed, I have mentioned this possibility to the Bank of England. The position seems to be that the dependent territories each have their own regulatory banking authorities. However, the Bank are concerned that we should not press ahead with this idea without having first considered more carefully what the implications might be. For example, we have to bear in mind that in the UK only the clearers have been asked to apply the voluntary

measures.

3. I share the Bank's concern that we should take time to give some thought to this question, and I trust that, as no legislation is involved here, we can allow the Bank a few days to consider whether or not they have any objections to what you propose.

4. I am copying this letter to Robin Webster (Bank of England).

Your, ebe

Paul McIntyr

J P MCINTYRE

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