TNAG-0930-FCO40-1148-Sanctions-against-Iran-extension-to-Dependent-Territories-1980 — Page 294

THIS FORUM.

CONFIDENTIAL

27310 1

2. THE ADDITIONAL POWERS WHICH THE GOVERNMENT IS SEEKING IN

ORDER TO IMPLEMENT THE VETOED SECURITY COUNCIL RESOLUTION ONLY

SUPPLEMENTS POWERS WHICH IT ALREADY POSSESSES IN RELATION TO THE

UNITED KINGDOM UNDER THE IMPORT, EXPORT AND CUSTOMS POWERS

(DEFENCE) ACT 1939. THESE EXISTING POWERS INCLUDE THE BLOCKING

OF THE PHYSICAL EXPORT OF GOODS. SUCH POWERS UNDER THE 1939 ACT

CAN BE BROUGHT INTO EFFECT BY A SIMPLE ORDER. THE NEW BILL IS

THEREFORE NECESSARY TO COVER OTHER ASPECTS OF THE SECURITY

COUNCIL RESOLUTION, E.G.:

(A) FUTURE SERVICE CONTRACTS IN SUPPORT OF INDUSTRIAL PROJECTS:

(B) THE USE OF BRITISH SHIPS TO TAKE GOODS FROM THIRD COUNTRIES

TO IRAN:

(C) SIGNATURE OF CONTRACTS (AS OPPOSED TO THE PHYSCAL EXPORT OF

GOODS) TO SUPPLY FORBIDDEN GOODS TO IRAN.

3. THE ENABLING BILL DOES NOT EMPOWER HMG TO MAKE ORDERS FOR THE

IMPLEMENTATION OF THE FINANCIAL MEASURES OUTLINED IN THE SECURITY

COUNCIL RESOLUTION. THE DESIRED EFFECT IS ALREADY BEING ACHIEVED

BY WAY OF THE PROVISIONS FOR GUIDANCE INHERENT IN THE UK BANKING

SYSTEM. THE IDEA OF FREEZING IRANIAN ASSETS IN LONDON IS NOT

INCLUDED IN THE ENABLING BILL: THIS STEP WAS NOT COVERED IN THE

SECURITY COUNCIL RESOLUTION.

4. THE IRAN (TEMPORARY POWERS) BILL AND THE 1939 ACT ARE ENAB-

LING MEASURES ONLY. NO ACTUAL ORDERS TO PUT INTO EFFECT ANY OF

THE MEASURES ENVISAGED IN THE SECURITY COUNCIL RESOLUTION WILL BE

MADE UNTIL AFTER 17 MAY WHEN EC FOREIGN MINISTERS WILL DECIDE

WHETHER OR NOT TO GO AHEAD WITH SANCTIONS IN THE LIGHT OF THE

SITUATION THEN EXISTING.

5. YOU MAY DRAW FREELY ON PARAGRAPHS 2-4 ABOVE, WHERE APPROPRIATE,

IF YOU CONSIDER IT NECESSARY TO EXPLAIN TO LOCAL MINISTERS OR

EXCO THE ACTION WHICH HMG IS TAKING. INSTRUCTIONS TO OAGS WILL

ISSUE ONCE THE ACT RECEIVES ROYAL ASSENT, TAKING ACCOUNT OF THE

2

CONFIDENTIAL

/ NEED FOR