TNAG-0930-FCO40-1148-Sanctions-against-Iran-extension-to-Dependent-Territories-1980 — Page 319

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COVER OTHER ASPECTS OF THE SECURITY COUNCIL RESOLUTION, EG:

(A) FUTURE SERVICE CONTRACTS IN SUPPORT OF INDUSTRIAL

PROJECTS.

4.

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

COUNTRIES TO IRAN.

(C) SIGNATURE OF CONTRACTS (AS OPPOSED TO THE PHYSICAL

EXPORT OF GOODS) TO SUPPLY FORBIDDEN GOODS TO IRAN.

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. (IF ASKED BY THOSE ALREADY OFFICIALLY AWARE OF

THE VOLUNTARY MEASURES WHICH WE ARE ALREADY TAKING, YOU SHOULD

SAY THAT THE GUIDANCE GIVEN TO BRITISH BANKS IN DECEMBER 1979

REMAINS IN FORCE AND IS PROVING EFFECTIVE). THE IDEA OF FREEZING

IRANIAN ASSETS IN LONDON IS NOT INCLUDED IN THE ENABLING BILL

SEMI-COLON THIS STEP WAS NOT COVERED IN THE SECURITY COUNCIL

RESOLUTION.

5. THE IRAN (TEMPORARY POWERS) BILL AND THE 1939 ACT ARE

ENABLING 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.

6. YOU MAY ALSO DRAW, IF ASKED, ON THE FOLLOWING

SUPPLEMENTARIES:

(A) IS THIS THE RIGHT MOMENT FOR SANCTIONS?

BY THE 22 APRIL DECISION OF EC FOREIGN MINISTERS, WE ARE

COMMITTED TO TAKE THE POWERS NECESSARY TO IMPLEMENT

SANCTIONS. BUT THERE WILL NO NO FINAL DECISION BEFORE

17 MAY.

(B) WILL SANCTIONS NOT DRIVE IRAN INTO THE ARMS OF THE

RUSSIANS?

THIS POSSIBILITY IS OF COURSE A SOURCE OF GREAT CONCERN,

AND WE HAVE TRIED TO TAKE IT FULLY INTO ACCOUNT IN OUR RECENT

DECISIONS. BUT THE PATIENCE OF THE UNITED STATES OVER

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