23
RR BRIDGETOWN
RR WELLINGTON
GRS 270
CONFIDENTIAL
FM FCO 171514Z JUNE 80
TO ROUTINE HONG KONG
CONFIDENTIAL
HKK 0220
2 0 JUN 1980
PA
SICER
20
6
TELEGRAM NUMBER 490 OF 18 JUNE
AND TO ROUTINE ASCENSION, BELMOPAN, GRAND CAYMAN, HAMILTON, ST HELENA, VILA, ANTIGUA, BRIDGETOWN, GIBRALTAR, GRAND TURK, MONTSERRAT, PORT STANLEY, TORTOLA, WELLINGTON (FOR PITCAIRN),
ANGUILLA, TRISTAN DA CUNHA
MY TEL NO 380: IRAN: VOLUNTARY FINANCIAL MEASURES
>
See ник
0201
infan
1. TUR REFERRED TO THE IMPLEMENTATION OF FINANCIAL MEASURES BY VOLUNTARY GUIDELINES. IT HAS NOW BEEN DECIDED THAT THESE VOLUNTARY MEASURES SHOULD BE EXTENDED TO THE DEPENDENT TERRITOR- IES. THE SMALL VOLUME OF BANKING BUSINESS WITH IRAN IN WHICH LOCALLY-OWNED BANKS IN YOUR TERRITORIES ARE ENGAGED MEANS SUCH MEASURES ARE LIKELY TO HAVE ONLY LIMITED APPLICATION. BUT INSOFAR
AS THIS POINT ARISES, YOU SHOULD ARRANGE FOR LOCALLY-OWNED BANKS TO BE ADVISED INFORMALLY TO EXERCISE RESTRAINT IN THEIR BANKING RELATIONSHIPS WITH IRAN. SHOULD YOU BE ASKED ABOUT ANY LARGE OR
UNUSUAL TRANSACTION WITH IRAN YOU SHOULD SEEK ADVICE FROM LONDON.
BACKGROUND
2. IN DECEMBER, THE BANK OF ENGLAND ADVISED THE MAJOR CLEARING BANKS NOT TO OFFER NEW OR INCREASED CREDITS TO THE IRANIAN GOVERNMENT OR GOVERNMENTAL AGENCIES (APART FROM SHORT-TERM CREDITS FOR COMMERCIAL TRANSACTIONS), NOR TO OPEN NEW DEMAND OR DEPOSIT ACCOUNTS, NOR TO ACCEPT SUBSTANTIAL INCREASES IN EXISTING NON-
DOLLAR DEPOSITS.
3. IN MAY, THE COVERAGE WAS EXTENDED TO EIGHT MORE BRITISH BANKS. SO THAT THE ARRANGEMENTS NOW COVER VIRTUALLY ALL BRITISH BANKS' BUSINESS WITH IRAN. THE IRAN (TEMPORARY POWERS) ACT SPECIFICALLY
EXEMPTED BANKING AND FINANCIAL SERVICES FROM THE SCOPE OF
OANCTIONS. IT WAS DECIDED TO CONTINUE TO RELY ON THE VOLUNTARY
MEASURES. THE US HAS NOT COMPLAINED ABOUT THEIR OPERATION.
CARRINGTON
DIST:
FILES
FRD
MED
HKGD
WIAD
SPD
SED
COPIES TO:
MR MCINTYRE TSY
MR EDGELY BANK OF ENGLAND
M AND CD
CONFIDENTAL
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