TNAG-0935-FCO40-1154-Relations-between-Hong-Kong-and-Iran-1980 — Page 60

G.S. 166

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CONFIDENTIAL # #

For discussion

on 20th May 1980

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MEMORANDUM FOR EXECUTIVE COUNCIL

ECONOMIC RELATIONSHIP BETWEEN HONG KONG AND IRAN

Import and Export Ordinance (Chapter 60)

IMPORT AND EXPORT (GENERAL)

(AMENDMENT) REGULATIONS 1980

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Annexed for the consideration of Members are the Import and

Export (General) (Amendment) Regulations 1980.

Background

On 29th April 1980, having considered XCCI(80)12, Members were informed of the recent diplomatic developments in the Iranian crisis and the possibility that Hong Kong might be asked to join action with the United Kingdom (UK) to impose sanctions against Iran.

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In the UK, should a decision be made in conjunction with other member states of the European Community to impose sanctions against Iran in respect of trade, powers to do so already exist under the Import, Export and Customs Powers (Defence) Act 1939. These powers enable the UK to prohibit imports to and exports from Iran and of goods of Iranian origin.

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In addition, the enactment of the Iran (Temporary Powers) Bill on 16th May 1980 will confer further powers for Her Majesty's Government to take action against Iran in areas other than import and export. Such powers can be brought into effect by means of an Order in Council and prohibit, inter alia, the following:

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(a)

future service contracts in support of industrial projects;

(b)

the use of British ships to take goods from third countries to Iran; and

(c)

the signature of contracts to supply goods to Iran.

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