CONFIDENTIAL
CONFIDENTIAL
FM FCO
TO IMMEDIATE WASHINGTON
TELNO 1447
OF 20123OZ AUG 90
AND TO IMMEDIATE UKDEL OECD
HKB 020/26
RECEIVED IN BE
..
DESK
INDEX
24 AUG 1990
INFO IMMEDIATE OECD POSTS, UKREP BRUSSELS
195
101476
MDHOAN 4659
ار
YOUR TELNO 1958: OECD SPECIAL MEETING ON SANCTIONS
WE HAVE RECEIVED THE FOLLOWING INFORMATION FROM THE TREASURY ABOUT THE RECENT MEETING OF THE TECHNICAL EXPERTS IN BASLE (PARA 3 OF TUR).
1.
2.
TECHNICAL EXPERTS, MAINLY FROM THE G10 BUT WITH
PARTICIPATION FROM SPAIN, AUSTRIA AND LUXEMBORG ALSO BECAUSE OF THE IMPORTANCE OF THEIR FINANCIAL RELATIONS WITH KUWAIT AND IRAQ, MET IN BASLE ON 16 AUGUST. THE INITIATIVE CAME FROM A NUMBER OF CENTRAL BANKS, NOTABLY THE BANK OF ENGLAND. THE PURPOSE WAS TO IDENTIFY MARKET DIFFICULTIES ARISING FROM THE IMPLEMENTATION OF SCR 661, AND TO CONSIDER POSSIBLE WAYS FORWARD. THE UK WAS REPRESENTED BY THE BANK OF ENGLAND: OTHER COUNTRIES WERE REPRESENTED BY CENTRAL BANKS AND MINISTRIES OF FINANCE, ACCORDING TO LOCAL PRACTICE.
3.
WE UNDERSTAND THAT THE ATMOSPHERE WAS CONSTRUCTIVE.
ALL DELEGATIONS WERE CLEARLY IN FAVOUR OF OPERTING SANCTIONS EFFECTIVELY AND EVIDENTLY WORKING IN THE SAME DIRECTION. A NUMBER OF DETAILED TECHNICAL ISSUES WERE DISCUSSED, INCLUDING THE FOLLOWING:
-
EXTRA-TERRITORIALITY. IT WAS DECIDED THAT THIS WAS AN AREA LIKELY TO CAUSE PROBLEMS OF CO-ORDINATION IN RELATION TO SOME COUNTRIES (EG US, JAPAN). PROBLEMS SHOULD BE DEALT WITH ON A CASE BY CASE BASIS.
PRE-ZERO TRANSACTIONS. IT WAS AGREED THAT PUTTING OBSTACLES IN THE WAY OF SUCH TRANSACTIONS MIGHT HARM BOTH BANKS
AS INNOCENT PARTIES AS WELL AS LEGITIMATE KUWAITI INTERESTS. STEPS WERE AGREED TO ARRANGE FOR THESE NOT TO BE BLOCKED.
BANKS. THERE WAS SOME SUPPORT FOR THE IDEA THAT
KUWAITI-RELATED BANKS SHOULD BE TREATED IN ALL COUNTRIES IN THE SAME WAY THEY ARE TREATED IN THE COUNTRY IN WHICH
1
PAGE
CONFIDENTIAL