CONFIDENTIAL
UK COMMS ONLY
FM HONG KONG
CONFIDENTIAL UK COMMS ONLY
FLASH
1036
ADVANCE COPY
58
041741 MDADAN 8208
TO FLASH FCO
TELNO 2462
OF 08094OZ AUGUST 90
INFO IMMEDIATE WASHINGTON, GIBRALTAR, GRAND CAYMAN, GRAND TURK INFO IMMEDIATE HAMILTON, PLYMOUTH, TORTOLA
FOR IRAQ/KUWAIT EMERGENCY UNIT
ECONOMIC SANCTIONS AGAINST IRAQ AND KUWAIT
HKB 020/26 RECEIVED
20 AL
Y
75
1. NOW THAT THE SECURITY COUNCIL HAD PASSED A RESOLUTION IMPOSING ECONOMIC SANCTIONS AGAINST IRAQ AND KUWAIT, WE BELIEVE THAT YOU ARE DRAFTING AN ORDER IN COUNCIL UNDER THE UNITED NATIONS ACT 1945 AS REFERRED TO IN YRTELNO 1472. WE SUPPORT YOUR INTENTION OF EXTENDING THE PROPOSED ORDER TO HONG KONG.
2. WE NOTE THAT THE SANCTIONS ADOPTED IN THE UN RESOLUTION ARE VERY EXTENSIVE AND WE ENVISAGE SOME ENFORCEMENT DIFFICULTY AND HAVE THE FOLLOWING COMMENTS:
(A) SHOULD THE ORDER BE DRAFTED RETROSPECTIVELY TO THE DATE OF THE RESOLUTION? THERE WILL BE PRACTICAL DIFFICULTIES IN THAT GOODS MAY HAVE ALREADY BEEN SHIPPED.
(B) POINT 5 OF THE RESOLUTION STIPULATES THAT THE RESOLUTION WILL OVERRIDE EXISTING CONTRACTS. HOWEVER, TO APPLY THE PROHIBITION ON EXISTING CONTRACT MAY RAISE LEGITIMATE COMPLAINT.
(C) POINT 3(B) OF THE RESOLUTION COVERS TRANSHIPMENT. IF THE PURPOSE IS TO COVER THE REMOVAL OF CARGO FROM ONE SHIP TO ANOTHER IN HIGH SEA, THE ORDER WILL HAVE TO BE DRAFTED HAVING REGARD TO SUCH ACTIVITIES ON BRITISH SHIPS INCLUDING BRITISH SHIPS REGISTERED IN HONG KONG.
(D) POINT 4 DOES NOT SEEM TO PREVENT 'STATES' FROM REMITTING FUNDS TO 'PERSONS OR BODIES WITHIN IRAQ OR KUWAIT AS OPPOSED TO
' COMMERCIAL, INDUSTRIAL OR PUBLIC UTILITY UNDERTAKINGS'. IS THAT INTENDED?
(E) THE FACT THAT FUNDING AND ASSISTANCE IS PROHIBITED TO SPECIFIC
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CONFIDENTIAL UK COMMS ONLY