TNAG-0930-FCO40-1148-Sanctions-against-Iran-extension-to-Dependent-Territories-1980 — Page 138

GR 270

CONFIDENTIAL

MKG 122/324/1

3 JUN 1980

NO. 51

CONFIDENTIAL

PA

INDEX

Mo

713.6

Action Taken

62

200 201

DESKBY PEKING Ø30600Z DESKBY F C 0 0309082

FM HONG KONG 030455Z JUN 80

TO IMMEDIATE F C O

TELEGRAM NUMBER 716 OF 3 JUNE

INFO IMMEDIATE PEKING, HONG KONG GOVERNMENT OFFICE LONDON

00

MY TELNO 707: SANCTIONS AGAINST IRAN

EXCO THIS MORNING APPROVED AN ORDER WHICH HAS THE EFFECT OF REQUIRING LICENCES FOR ALL GOODS EXPORTED TO IRAN FROM HONG KONG. ONLY VESSELS AND AIRCRAFT IN THE COURSE OF NORMAL OPERATIONS ARE EXEMPTED. EXCO ALSO APPROVED THE POLICY OUTLINED IN PARA. 2 OF MY TUR 1.E. LICENCES. WILL BE ISSUED AUTOMATICALLY FOR GOODS EXEMPTED UNDER SIMILAR UK REGULATIONS AND FOR TRANSHIPPED GOODS. 2. THE NEW ORDER WILL BE GAZETTED TOMORROW TOGETHER WITH THE UK IRAN (TRADING SANCTIONS) ORDER 1980 WHICH EXTENDS TO HONG KONG. 3. POLITICAL ADVVISER WILL SPEAK TO NCNA THIS AFTERNOON TO GIVE ADVANCE WARNING OF THE PUBLICATION OF THE TWO ORDERS. HE WILL SAY THAT, BECAUSE OF THE WAY IN WHICH CHINA'S SMALL QUANTITY TRADE WITH IRAN THROUGH HONG KONG IS CONDUCTED (GENERALLY THROUGH LOCAL BUSINESSMEN AND WITHOUT THROUGH BILLS OF LADING), WE INTEND TO TREAT ALL TRADE WHICH IS IN EFFECT ORIGINATING IN CHINA AND SIMPLY TRANSITTING HONG KONG AS THOUGH IT WERE TRANSHIPMENT TRADE AND THUS LICENCE ACCORDINGLY.

4. PROVIDING THEY SEE NO OBJECTION, GRATEFUL IF PEKING COULD SPEAK SIMILARLY AS SOON AS POSSIBLE. WE PLAN TO ISSUE THE GAZETTE AND ATTENDANT PUBLICITY AT NOON (LOCAL TIME) ON WEDNESDAY. SINCE WE DO NOT WISH TO DO SO UNLESS THE CHINESE IN PEKING HAVE BEEN FORWARNED, GRATEFUL IF PEKING COULD CONFIRM THAT THEY WILL BE ABLE TO SPEAK TO THE CHINESE BEFORE THEN.

5. WE DO NOT INTEND TO REFER IN PUBLICITY TO SPECIAL ARRANGEMENTS FOR CHINA. IF PRESSED, HOWEVER, WE WILL SAY THAT TRADE FROM CHINA WHICH IS, IN EFFECT, TRANSHIPMENT, WILL BE TREATED ACCORDINGLY.

MACLEHOSE

FILES

HK v GD

MED

SEE

во

FED

LEGAL ADV

65

NEWS.D

OID

COPIES TO:

HONG KONG GOVT Office

LONDON

|

MR PRISTON CRE4 DOT

MR DONALD

CONFIDENTIAL