Mr Stone
Miss Marsden
HKB 020 126 нив
RECEIVED A
20 AUG 1995
SK OF
X
Y
Reference..
BUSAHS
Z
86
HONG KONG: FREEZING OF IRAQI/KUWAITI ASSETS
1.
I attended an ad hoc meeting of the Dependent Territories Liaison Group which met yesterday to discuss sanctions against Iraq/Kuwait. Present were members of the Bank of England, DTI, Mr Waterworth (Legal Adviser), as well as members of other involved departments.
2.
The objective of the meeting was to ensure that Department's which have a responsibility for DTS are fully informed of the implications of the Orders in Council, and are clear on the mechanics for affecting sanctions. A further objective was to ensure that similar action was being taken in the DTs regarding the imposition of sanctions as in the United Kingdom.
but
On
3. Mr Waterworth pointed out that there was really no need for Departments to be aware of the fine details of the Orders, should familiarise themselves with the general principles involved. He pointed out that the starting point was Security Council Resolution Number 661 and not the Orders themselves. purely the financial side, in the UK,Treasury action to control Kuwaiti/Iraqi assets had been taken before UN sanctions were imposed, and was incorporated in the Orders in Council to control finances. Resolution 661 related to the trade embargo which was DTI's prime responsibility, in as far as it dealt directly with imports and exports and licensing, the appropriate Order is the Export of Good (Control) Iraq and Kuwait Sanctions 1990.
4.
The meeting which started somewhat promisingly unfortunately stalled on an extended discussion with the Bank of England as to whether the DTS ought to be informed of each specific authority the Bank gave for funds to be transferred to an account which was subject to control. The Bank's view was as each transaction would have been authorised in banking channels at this end there was no need for them to separately inform the DTS that the transaction had received their approval. WIAD and the Legal Adviser took the view that the Bank ought to separately inform the DTS of such decisions.
5.
By the end of the meeting the following had apparently been agreed:
(i) The Bank would keep FCO/DTS informed of any amendments to their general notices.
(ii) on any specific enquiries they would advise on either an approach from post or from FCO Departments.
(iii) Departments can give DTs reasonable assurances that transactions originating in the UK have either been approved by the Bank of England or are issued under a general exemption