TNAG-2027-FCO40-2889-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 120

CONFIDENTIAL UK COMMS ONLY

26431

MDHI.. 282

PROBLEM.

4. FOR THE TIME BEING IT APPEARS THAT FINANCIAL INSTITUTIONS ARE EXERCISING CAUTION IN THEIR DEALING WITH KUWAITI ASSETS IN VIEW OF THE CONFUSED SITUATION IN KUWAIT. THE FREEZE IMPOSED IN NEW YORK AND LONDON IS PREVENTING SETTLEMENT OF FOREIGN CURRENCY TRANSACTIONS. HOWEVER, WE WOULD WISH TO SEE A FREEZE IMPOSED IN HONG KONG IN THE MANNER SUGGESTED AS SOON AS POSSIBLE.

5. GRATEFUL TO KNOW WHETHER THE UK IS PLANNING ACTIONS AGAINST IRAQ IN FIELDS OTHER THAN THOSE COVERED IN THE 1990 EXCHANGE CONTROL STATUTORY INSTRUMENT OF 2 AUGUST E.G. TRADE SANCTIONS.

FORD

YYYY

ΜΑΙΝ

IRAQ/KUWAIT

LIMITED

MED

242

ADDITIONAL

40

IRAQ/KUWAIT

(PASSED TO EMERGENCY UNIT) (PASSED TO PM'S PARTY)

NNNN

DISTRIBUTION

282

EAD

HKD

PAGE

2

CONFIDENTIAL UK COMMS ONLY

Page 120Page 121