Your reference: ESB CR 6/5061/93 (II)

Our reference:

UNP 122/329/21

ра HITA 122/

Foreign & Commonwealth

Office

60

19 July 1993

Mr AR Clark

Secretary for Economic Services

Government Secretariat

Lower Albert Road

Hong Kong

fax 002-852-877-0583

Dear Mr Clark

London SWIA 2AH

Telephone: 071-

270-3695

NKA 122/1

L2 AUG 1993

SANCTIONS AGAINST SERBIA AND MONTENEGRO

Thank you for your letter of 9 July, where you ask for further advice wether you are legally entitled to keep a ship impounded or to proceed with forfeiture. Mr Orchard sent your letter to our legal advisers for comment, in his absence I have been asked to pass on their comments.

Nothing said in our telno 559 indicated that we believed that you were entitled to proceed with forfeiture. We have no evidence that would justify forfeiture proceedings, but neither the SCR nor the order justifies release of the vessel. It must remain impounded. Impounding expenses may be recovered from the owner of the impounded ship: if the owner or agent does not pay expenses, there are no doubt provisions in Hong Kong law to allow recovery of expenses against the vessel itself. You also ask if there would be any difficulty with the vessel being sold to a third party purchaser, we see no problems but the purchase price will very likely have to be frozen.

If there are any questions left unanswered please contact Kevin Orchard of this department.

Your

Sincerely

"

J O'Shaughnessy

UND

cc: Ms A Bouch (HKD)

Ms A Lee (Govt. Sec) fax 002-852-521-8702

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