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043765 MDHOAN 3886
CONFIDENTIAL
FM FCO
TO DESKBY 09010OZ HONG KONG
TELNO 1493
OF 08141OZ AUGUST 90
HKB 020/26
1001990
INFO IMMEDIATE WASHINGTON, GIBRALTAR, GRAND CAYMAN, GRAND TURK INFO IMMEDIATE HAMILTON, PLYMOUTH, TORTOLA
•
YOUR TELNO 2462: ECONOMIC SANCTIONS AGAINST IRAQ AND KUWAIT
1. AN ORDER IN COUNCIL UNDER THE UNITED NATIONS ACT 1946, WHICH WILL IMPLEMENT A NUMBER OF PROVISIONS OF THE SECURITY COUNCIL RESOLUTION (S.C. RESOLUTION 661) IMPOSING MANDATORY ECONOMIC SANCTIONS AGAINST IRAQ AND KUWAIT IN ALL THE DEPENDENT TERRITORIES, WILL BE LAID BEFORE THE QUEEN AT A MEETING OF THE PRIVY COUNCIL ON BRITANNIA THIS EVENING.
A SEPARATE ORDER IN COUNCIL WILL
MAKE SIMILAR PROVISION FOR THE UK. BOTH ORDERS ARE INTENDED TO TAKE EFFECT ON 9 AUGUST. WE ARE FAXING COPIES OF THE FINAL DRAFT OF THE FIRST ORDER (THE IRAQ AND KUWAIT (UNITED NATIONS SANCTIONS) (DEPENDENT TERRITORIES) ORDER 1990) TO YOU AND OTHER ADDRESSEES. THE EMERGENCY UNIT WILL LET YOU NOW LATER TONIGHT WHETHER THE ORDER IN COUNCIL HAS BEEN APPROVED UNATTENDED AS SOON AS WE HAVE HAD CONFIRMATION FROM THE CLERK TO THE PRIVY COUNCIL.
2. TUR:
THE FOLLOWING ARE THE ANSWERS TO THE COMMENTS IN PARA 2 OF
(A) THERE WILL BE A PROHIBITION ON MAKING OR CARRYING OUT ANY CONTRACT FOR THE EXPORT OF GOODS FROM KUWAIT OR IRAQ. THIS WILL APPLY WHETHER OR NOT THE CONTRACT WAS ENTERED INTO BEFORE THE DATE WHEN THE ORDER COMES INTO EFFECT (IE
9 AUGUST). THERE WILL ALSO BE A PROHIBITION ON DEALING WITH GOODS EXPORTED FROM IRAQ OR KUWAIT AFTER 6 AUGUST. CARRIERS WILL THEREFORE NEED TO OBTAIN PERMISSION FROM THE APPROPRIATE
UK AUTHORITY TO DEAL WITH ANY GOODS WHICH WERE SHIPPED AFTER 6 AUGUST.
(B) WE RECOGNISE THAT PARAGRAPH 5 OF THE RESOLUTION (AND THE ABOVE PROVISIONS) COULD GIVE RISE TO DIFFICULTIES AND COMPLAINTS. BUT IT IS NOT UNKNOWN FOR THE CARRYING OUT OF PRIOR CONTRACTS TO BE MADE UNLAWFUL BY SUBSEQUENT LEGISLATION. THE PARTIES WILL HAVE TO REGULATE THEIR
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