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2. THE ADDITIONAL POWERS WHICH THE GOVERNMENT IS SEEKING IN
ORDER TO IMPLEMENT THE VETOED SECURITY COUNCIL RESOLUTION ONLY
SUPPLEMENTS POWERS WHICH IT ALREADY POSSESSES IN RELATION TO THE
UNITED KINGDOM UNDER THE IMPORT, EXPORT AND CUSTOMS POWERS
(DEFENCE) ACT 1939. THESE EXISTING POWERS INCLUDE THE BLOCKING
OF THE PHYSICAL EXPORT OF GOODS. SUCH POWERS UNDER THE 1939 ACT
CAN BE BROUGHT INTO EFFECT BY A SIMPLE ORDER. THE NEW BILL IS
THEREFORE NECESSARY TO COVER OTHER ASPECTS OF THE SECURITY
COUNCIL RESOLUTION, E.G.:
(A) FUTURE SERVICE CONTRACTS IN SUPPORT OF INDUSTRIAL PROJECTS:
(B) THE USE OF BRITISH SHIPS TO TAKE GOODS FROM THIRD COUNTRIES
TO IRAN:
(C) SIGNATURE OF CONTRACTS (AS OPPOSED TO THE PHYSCAL EXPORT OF
GOODS) TO SUPPLY FORBIDDEN GOODS TO IRAN.
3. THE ENABLING BILL DOES NOT EMPOWER HMG TO MAKE ORDERS FOR THE
IMPLEMENTATION OF THE FINANCIAL MEASURES OUTLINED IN THE SECURITY
COUNCIL RESOLUTION. THE DESIRED EFFECT IS ALREADY BEING ACHIEVED
BY WAY OF THE PROVISIONS FOR GUIDANCE INHERENT IN THE UK BANKING
SYSTEM. THE IDEA OF FREEZING IRANIAN ASSETS IN LONDON IS NOT
INCLUDED IN THE ENABLING BILL: THIS STEP WAS NOT COVERED IN THE
SECURITY COUNCIL RESOLUTION.
4. THE IRAN (TEMPORARY POWERS) BILL AND THE 1939 ACT ARE ENAB-
LING MEASURES ONLY. NO ACTUAL ORDERS TO PUT INTO EFFECT ANY OF
THE MEASURES ENVISAGED IN THE SECURITY COUNCIL RESOLUTION WILL BE
MADE UNTIL AFTER 17 MAY WHEN EC FOREIGN MINISTERS WILL DECIDE
WHETHER OR NOT TO GO AHEAD WITH SANCTIONS IN THE LIGHT OF THE
SITUATION THEN EXISTING.
5. YOU MAY DRAW FREELY ON PARAGRAPHS 2-4 ABOVE, WHERE APPROPRIATE,
IF YOU CONSIDER IT NECESSARY TO EXPLAIN TO LOCAL MINISTERS OR
EXCO THE ACTION WHICH HMG IS TAKING. INSTRUCTIONS TO OAGS WILL
ISSUE ONCE THE ACT RECEIVES ROYAL ASSENT, TAKING ACCOUNT OF THE
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