TNAG-0935-FCO40-1154-Relations-between-Hong-Kong-and-Iran-1980 — Page 18

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TELEGRAM WUNNER 716 OF 3 JUNE

My DONALD HONG KONG, GOVT OFFICE, LABOT

INFO IMMEDIATE POKING, HONG KONG GOVERNMENT OFFICE LUND ON

MY TOLNO 707: SANCTIONS ACATGT IRAN

EXCO THIS MORNING APPROVED AN ORDER UKICH HAS THE (FFECT OF REQUIRING LICENCES FOR ALL 300DS EXPORTED TO IRAN FROM HONG KONG.. CILY VESSELS AND AIRCRAFT IN THE COURSE OF NORMAL OPERATIONS ARE EXEMPTED. EXCO ALSO APPROVED THE POLICY OUTLINED IN PARA. 2 OF KY TUR 1.S. LICENCES WILL BE 13SLED AUTOMATICALLY FOR GOODS EXEMPTED UNDER SIMILAR LK RECULATIONS AND FOR TRANSHIPPED GOODS.

2. THE NOW ORDER WILL DE GAZETTED TOMORROW TOGETHER WITH THE UK IRAN (TRAD JUG SANCTIONS) ORDER 1980 WHICH EXTENDS TO HONG KONG.

3. POLITICAL ADVVISER WILL SPEAK TO NCHA 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 SUSINESSMEN AND WITHOUT THROUGH DILLS OF LADINC), WE TEND TO TREAT ALL TRADE WHICH IS IN EFFECT ORIGIHATING 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 ISSLE THE GAZETTS AND ATTENDANT PUBLICITY AT MOON (LOCAL TRE) ON WEDNESDAY. SINCE WE DO NOT WISH TO DO SO UNLESS THE CHINESE IN PEKING HAVE DECN FORM ARMED, GRATEFUL IF PEKING COULD CONFIRM THAT THEY WILL DE ABLE TO SPEAK TO THE CHINEOS BEFORE THEM.

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

MACLEHOSE

M.NG