to withdraw funds arises (FCO telno

1470).

Saturday 4 August

0515

1120

Hong Kong argue that this course of action is not appropriate for various reasons and argue strongly for the extension of UK legislation to Hong Kong and the other dependent territories

(HK telno 2437).

We tell Hong Kong that we are

exploring urgently with the Treasury what further options might be open under

the 1964 Emergency Laws Act (FCO telno

1472)

Sunday 5 August

1754

We tell Hong Kong that we have now

excluded the possibility of action under

that Act and propose to draft a prerogative Order in Council freezing Kuwaiti and Iraqi assets in Hong Kong and the other dependent territories

(FCO telno 1473).

Monday 6 August

0345

1720

Hong Kong support this proposal and make various detailed suggestions about

the draft Order in Council (HK telno

2439).

We inform Hong Kong that prerogative

Order in Council will be laid before the

Privy Council that evening (FCO telno

1476).

BAYABI/4

CONFIDENTIAL

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