TNAG-2027-FCO40-2889-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 62

*

CONFIDENTIAL

HONG KONG: FREEZING OF KUWAITI/IRAQI ASSETS: CHRONOLOGY OF

EVENTS

Thursday 2 August

0850

Friday 3 August

0500

Hong Kong seek advice on controlling Kuwaiti assets following approach from

US Consulate General (HK telno 2414).

We explain that the measures taken by

the Treasury to freeze Kuwaiti assets apply only to the UK mainland and encourage Hong Kong and other dependent

territories to follow suit (FCO telno

1458).

0940

Copy of the UK Statutory Instrument

faxed to Hong Kong.

1031

1056

2130

Hong Kong provide estimate of the extent

of Kuwaiti assets in the territory.

telno 2420).

(HK

Hong Kong explain that they do not wish to recall LegCo to enact local legislation and favour action by HMG. They point out that local financial

institutions are nevertheless

exercising caution in dealing with

Kuwaiti assets. (HK telno 2429).

We recommend that the Hong Kong

Government should nevertheless take

emergency powers before the opportunity

BAYABI/3

CONFIDENTIAL