TNAG-2027-FCO40-2889-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 86

0604167

LNMDAN 3229

HMLNAN 5380

CONFIDENTIAL

DD 06053OZ FCOLN

FM HOKON TO FCOLN

060345Z AUG

GRS 390

CONFIDENTIAL

UK COMMS ONLY

FM HONG KONG

TO DESKBY 060530Z FCO

TELNO 2439

OF 060345Z AUGUST 90

(580

HKB

020

126

RECEN

14 AUG 1990

AND TO IMMEDIATE GIBRALTAR, GRANT CAYMAN, GRAND TURK, TORTOLA AND TO IMMEDIATE MONTSERRAT

INFO IMMEDIATE HAMILTON,

WASHINGTON

SIC

نهار

YOUR TELNO 1473 : FREEZING OF KUWAIT AND IRAQI ASSETS

1. WE HAVE YET TO RECEIVE THE FAXES REFERRED TO IN YOUR TUR BUT HAVE RECEIVED A COPY OF 5.1.1591 WHICH HAS THE WORDS EXCHANGE CONTROL DELETED AND REPLACED BY QUOTE EMERGENCY POWERS AND UNQUOTE. WE ASSUME THIS IS THE SAME AS THE FINAL VERSION.

2. WE APPRECIATE MINISTERS' WISH FOR CONSISTENT MEASURES THROUGHOUT DEPENDENT TERRITORIES. WE SUPPORT YOUR PROPOSAL TO MAKE APPROPRIATE ORDERS IN COUNCIL UNDER THE ROYAL PREROGATIVE. THIS MEETS OUR CONCERN ABOUT INTRODUCING EXCHANGE CONTROL TYPE LEGISLATION IN HONG KONG, HOWEVER SPECIFIC.

3. ON THE BASIS THAT YOU WILL BE USING TERMS COMPARABLE TO THE CONTROL OF GOLD, SECURITIES, PAYMENTS AND CREDITS (KUWAIT)

DIRECTION 1990, WE HAVE A NUMBER OF SUGGESTIONS TO MAKE IN RELATION TO THE TERMS TO BE USED :

(A) DIRECTION NO 2 SHOULD REFER TO PERMISSION GRANTED BY OR ON BEHALF OF THE FINANCIAL SECRETARY OF HONG KONG,

(B) DEFINITION OF SECURITIES. THIS NORMALLY DOES NOT COVER COMMODITIES AND FUTURES, AND NEGOTIABLE RECEIPT OR OTHER NEGOTIABLE CERTIFICATE OR DOCUMENT EVIDENCING THE DEPOSIT OF A SUM OF MONEY, AND ANY BILL OF EXCHANGE, AS IS THE CASE IN OUR LEGISLATION. IT MAY BE USEFUL TO MAKE SPECIFIC REFERENCE TO THESE.

(C) IT SEEMS NECESSARY TO MAKE CLEAR THAT INSTRUCTIONS GIVEN BY PERSONS ON BEHALF OF KUWAITIS NOT RESIDENT IN KUWAIT SHALL NOT BE CARRIED OUT.

(D) IT SEEMS NECESSARY TO REFER TO PRECIOUS METALS GENERALLY RATHER THAN JUST GOLD.

4. PRESUMABLY,

PENALTIES,

THESE ORDERS WILL BE MAKING PROVISIONS FOR

5. WE UNDERSTAND THAT THE BANK OF ENGLAND IS DRAFTING VARIOUS GENERAL OR SPECIFIC PERMISSIONS WHICH MIGHT BE ISSUED UNDER THE

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