RESTRICTED
RESTRICTED
FM HONG KONG
TO IMMEDIATE FCO TELNO 778
OF 171115Z MAY 93
HKA 122/2
20 mm, 1993
DESI
Traquanation:
PA UN Fie
062201 MDHIAN 1146
DRAFT PRESS RELEASE: SEQUESTRATION OF IRAQI ASSETS: UK ORDER IN COUNCIL
1. AN UK ORDER IN COUNCIL HAS BEEN EXTENDED TO HONG KONG ON 24 MAY TO GIVE EFFECT TO A DECISION OF THE SECURITY COUNCIL OF THE UN IN RESOLUTION NO 778 OF 1992. THE ORDER REQUIRES THE TRANSFER OF ANY FUNDS IN HONG KONG, TO WHICH SPECIFIED IRAQI PERSONS ARE ENTITLED AND WHICH REPRESENT THE PROCEEDS OF SALE OF IRAQI PETROLEUM OR PETROLEUM PRODUCTS ON OR AFTER 6 AUGUST 1990, TO THE ESCROW ACCOUNT ESTABLISHED BY THE UN UNDER SECURITY COUNCIL RESOLUTIONS NO 706 AND 712 OF 1991, FOLLOWING A PROCEDURE FOR ASCERTAINING ENTITLEMENT TO RELEVANT FUNDS AND TO PETROLEUM OR PETROLEUM PRODUCTS. FUNDS WHICH HAD ALREADY BEEN PAID TO A PERSON ENTITLED TO THEM OR WHICH WERE SUBJECT TO OR REQUIRED TO SATISFY THIRD PARTY RIGHTS AT THE TIME OF THE ADOPTION OF RESOLUTION NO 778 OF 1992 ARE EXEMPT FROM THE TRANSFER REQUIREMENT.
2.
THE ORDER ALSO REQUIRES THE SALE OF ANY PETROLEUM OR PETROLEUM PRODUCTS IN THOSE TERRITORIES TO WHICH SPECIFIED IRAQI PERSONS ARE ENTITLED AND THE TRANSFER OF THE PROCEEDS OF SALE TO THE ESCROW ACCOUNT.
3. IT PROVIDES FOR THE RETRANSFER OF ANY MONIES RECEIVED BY THE SECRETARY GENERAL OF THE UN REPRESENTING MONIES TRANSFERRED TO THE ESCROW ACCOUNT BACK TO THE PERSONS ENTITLED TO THEM.
THE ORDER EMPOWERS THE HONG KONG GOVERNMENT TO OBTAIN INFORMATION AND DOCUMENTS TO SECURE COMPLIANCE WITH IT: LIMITS THE CIRCUMSTANCES IN WHICH INFORMATION AND DOCUMENTS OBTAINED MAY BE DISCLOSED: DISAPPLIES OBLIGATIONS OR RESTRICTIONS WHICH WOULD CONFLICT WITH THE REQUIREMENTS OF THE ORDER: AND EXCLUDES ANY LIABILITY WHICH MIGHT OTHERWISE ARISE IN ACTING PURSUANT TO OR IN COMPLIANCE WITH THE ORDER.
5.
THE GOVERNMENT WILL TAKE ALL NECESSARY MEASURES TO IMPLEMENT FULLY OUR OBLIGATIONS UNDER THE ORDER IN COUNCIL.
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