RESTRICTED
FM FCO
TO PRIORITY HONG KONG TELNO 1585
OF 281348Z AUGUST 90
RESTRICTED
HKB 020 126
12 SEP 1990
W
132
131042 MDLOAN 4959
26
FOR S GAMMON, MONETARY AFFAIRS BRANCH, HONG KONG
FOLLOWING TELEGRAM NOW REPEATED TO YOU AT REQUEST OF HKD, WAS SENT TO WASHINGTON TELEGRAM NUMBER 1494 ́ ́ OF 25123OZ AUG
BEGINS:
AND TO PRIORITY MIDDLE EAST POSTS, EC POSTS, VIENNA
AND TO PRIORITY BERNE, STOCKHOLM, OSLO, HELSINKI, UKMIS NEW YORK
11
KUWAIT INVESTMENT OFFICE (KIO)
1. ADDRESSEE POSTS MAY FIND USEFUL THE FOLLOWING GUDANCE NOTE FROM HM TREASURY (COMPILED IN CONSULTATION WITH THE BANK OF ENGLAND) ON THE WAY WE ARE TREATING THE KIO:
BEGINS
THE KIO IS THE OPERATING ARM IN LONDON OF THE KUWAIT INVESTMENT
AUTHORITY WHICH IS A PUBLIC CORPORATION WITH AN INDEPENDENT LEGAL EXISTENCE, IS WHOLLY OWNED BY THE STATE OF KUWAIT AND ACTS AS ITS AGENT. THE KIA IS CHAIRED BY THE KUWAITI MINISTER OF FINANCE.
THE FUNCTION OF THE KIO IS TO MANAGE A MAJOR PART OF THE QUOTE FUTURE GENERATIONS' FUND UNQUOTE, WHICH WAS ESTABLISHED IN 1976 BY THE STATE OF KUWAIT, AND OTHER ASSETS ON BEHALF OF THE
STATE OF KUWAIT. ALL ASSETS MANAGED BY THE KIO ARE OUTSIDE THE STATE OF KUWAIT.
THE KIO OPERATES ON A WORLDWIDE BASIS FROM ITS SOLE OFFICE IN LONDON. ALL INVESTMENT AND OTHER DECISIONS RELATING TO THE
OPERATION OF ITS BUSINESS ARE TAKEN BY THE MANAGEMENT OF THE KIO IN LONDON UNDER ONLY VERY GENERAL GUIDELINES GIVEN BY THE KIA.
THE KIO IS REGARDED AS RESIDENT IN KUWAIT, AND IS THUS CAUGHT BY THE TREASURY DIRECTION FREEZING KUWAITI ASSETS. THIS IS STATED IN PARAGRAPH 7 OF THE BANK'S GUIDANCE NOTICE OF 7 AUGUST. THE EFFECT OF THIS IS THAT PERMISSION IS REQUIRED FROM THE TREASURY
1
PAGE
RESTRICTED
11