CONFIDENTIAL UK COMMS ONLY
5
030463
MDHOAN 3616
HKB 020126
RECEIVERIN
CONFIDENTIAL
UK COMMS ONLY
FM FCO
TO IMMEDIATE HONG KONG
TELNO 1470
OF 03213OZ AUGUST 90
ず
14 AUG 1990
INFO IMMEDIATE WASHINGTON, GIBRALTAR, GRAND CAYMAN
INFO IMMEDIATE GRAND TURK, HAMILTON, MONTSERRAT, TORTOLA
SIC
YOUR TELNO 2429: FREEZING OF KUWAITI ASSETS IN HONG KONG
1. WE NOTE THAT LEGISLATION WOULD BE REQUIRED TO FREEZE KUWAITI DEPOSITS IN HONG KONG. IF NO OTHER POWERS ARE AVAILABLE TO TAKE THE POWERS ASSUMED IN THE UK UNDER THE CONTROL OF GOLD, SECURITIES, PAYMENTS AND CREDITS (KUWAIT) DIRECTIONS 1990 OUR STRONG PREFERENCE IS THAT LEGISLATION SHOULD BE INTRODUCED BEFORE THE OPPORTUNITY TO WITHDRAW FUNDS ARISES. IN FRAMING LEGISLATION YOU MAY DRAW ON THE EMERGENCY LAWS (RE-ENACTMENTS AND REPEALS) ACT 1964. HAVING TAKEN THE POWERS YOU COULD THEN PROCEED TO GIVE DIRECTIONS MIRRORING THE UK ORDER.
2. EXTRA TERRITORIAL LEGISLATION IS NOT REQUIRED. THE AIM IS TO FREEZE ASSETS WITHIN YOUR JURISDICTION. WE DO NOT ACCEPT THAT PUBLIC DISQUIET AT THE RECALL OF THE LEGISLATURE OR QUESTIONS OF BANKING CONFIDENCE CONSTITUTE VALID GROUNDS FOR FAILURE TO LEGISLATION IN CURRENT CIRCUMSTANCES. YOU MAY ASSUME THAT ASSENT, IF NECESSARY, WILL BE FORTHCOMING.
3. WE HAVE NOT TAKEN THE ADDITIONAL POWERS DETAILED IN PARA 3 OF TELEGRAM UNDER REFERENCE NOR IS THERE ANY PROPOSAL THAT ANY DT SHOULD DO SO. THEREFORE THERE IS NO REQUIREMENT TO PASS LEGISLATION ON THE 1984 IRAN MODEL. ACCORDINGLY LEGISLATION IN THE UK IS NOT PRESENTLY AN OPTION. WE HAVE FAXED TO YOU A COPY OF THE STATUTORY INSTRUMENT OF 2 AUGUST.
4
RE YOUR PARA 4 WE CONSIDERED AND REJECTED THE NOTION OF AN INFORMAL FREEZE. SUCH A MEASURE CAN ONLY BE EFFECTIVE IN THE SHORT TERM. WE ARE OF THE VIEW THAT THE MEASURES TAKEN MUST BE SEEN TO BE BOTH EFFECTIVE AND ENFORCEABLE.
5. ON YOUR PARA 5, WE WILL BE DISCUSSING POSSIBLE FURTHER MEASURES WITH EC PARTNERS IN ROME ON 4 AUGUST. BUT WE SHALL BE
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CONFIDENTIAL UK COMMS ONLY