TNAG-0935-FCO40-1154-Relations-between-Hong-Kong-and-Iran-1980 — Page 54

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P BRUSSELS

#2220

GENEVA

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CONFIDENTIAL

RECEIVED IN REGATT NO. 51

-

· 4 JUN 1980

BESK OFFICER

DESKBY FCO 220904NDEX

DESKBY PEKING 0101200

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REGISTRY

Action Taken?

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J5.6 M. Momir

FM HONG KONG 0208572 JUN 80

TO IMMEDIATE F C O

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TELEGRAM NUMBER 797 OF 2 JUNE AND TO IMMEDIATE PEKING, HONG KONG GOVERNMENT OFFICE LONDON INFO PRIORITY WASHINGTON (FOR CROWSON) BRUSSELS (FOR BURGESS GENEVA (FOR CHAU)

YOUR TELNO 425: SANCTIONS AGAINST IRAN

12"%

WE HAVE NOW RECEIVED THE TEXTS OF THE UK ORDERS IN COUNCIL.

2. WE WILL BE SUBMITTING TO EXCO TOMORROW (TUESDAY) AN ORDER REQUIRING LICENCES FOR ALL GOODS EXPORTED FROM HONG KONG TO IRAN.

WE PROPOSE TO COVER THE EXEMPTIONS IN THE UK EXPORT OF GOODS (CONTROL ORDER) BY A SEPARATE ANNOUNCEMENT TO THE EFFECT THAT LICENCES WILL BE ISSUED AUTOMATICALLY FOR SUCH GOODS (E.G. MEDICAL SUPPLIES AND GOODS SHIPPED UNDER CONTRACTS PRIOR TO 30TH MAY). WE WILL ALSO SAY THAT LICENCES WILL BE ISSUED FOR GOODS BEING TRANSHIPPED THROUGH HONG KONG. IN THE ABSENCE OF CUSTOMS CONTROLS,

THIS SYSTEM WILL ENABLE US TO POLICE THE TRADE.

IN ADDITION, WE PROPOSE TO TELL MONA THAT, BECAUSE OF THE WAY IN WHICH TRANSHIPMENT TRADE FROM CHINA IS NORMALLY CONDUCTED (1.2. WITHOUT THROUGH BILLS OF LADING), WE WILL EXCEPTIONALLY ISSUE LICENCES FOR GOODS FROM CHINA TO IRAN USING HONG KONG AS AN ENTREPOT. WE WILL SPEAK SIMILARLY, AND PRIVATELY, TO THE FEW LOCAL TRADERS INVOLVED, WE WILL TELEGRAPH AGAIN AFTER THE EXCO MEETING SO THAT, IF THIS POLICY IS APPROVED, PEKING CAN SPEAK SIMILARLY

MACLEHOSE

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