TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 125

Mr Henry Keswick

You have raised the issue of the freezing of Kuwaiti/Iraqi assets in Hong Kong and claimed that as the Hong Kong Government did not take immediate action to

freeze Kuwaiti assets, some of these were disposed of

there, with the result that prices in Hong Kong fell more sharply than in other markets.

This is quite simply not the case. The Hong Kong

Government wasted no time in seeking advice from us regarding the control of Kuwaiti assets and it is a

testimonial to all those involved that within the space

of three working days primary legislation had been introduced under Royal Prerogative which effectively put

Kuwaiti and Iraqi assets in Hong Kong and the dependent

territories under control. Until the Order in Council

was passed during the early evening of 6 August the Hong

Kong Government lacked the necessary powers to implement the freeze on Kuwaiti and Iraqi assets: this was not an

internal emergency and I entirely support the Acting

Governor's decision not to envoke the Emergency

Regulation Ordinance.

MATAAE