TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 30

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COMMENT:

101

HKB 020126

RECEIVED IN A

24 AUG 1990

SI

CONFIDENTIAL

FM SINGAPORE

TO IMMEDIATE FCO LONDON

TELNO 392

OF 210600Z AUGUST 90

AND TO IMMEDIATE ESC LONDON

INFO IMMEDIATE UKMIS NEW YORK. WASHINGTON. KUALA LUMPUR, JAKARTA INFO IMMEDIATE BANGKOK, ACTOR

<

YOUR TELNO 168 TO ABIDJAN:

IRAQ/KUWAIT: IMPLEMENTATION OF SECURITY COUNCIL RESOLUTION 661

SUMMARY

1.

SINGAPORE DETERMINED TO IMPLEMENT SCR 661. MEASURES NOW

IN HAND TO ACHIEVE THIS.

DETAIL

2. AS A SMALL STATE WHICH REGARDS THE IRAQI ANNEXATION OF KUWAIT AS A FLAGRANT BREACH OF INTERNATIONAL LAW, AND A CLEAR THREAT TO WORLD ORDER, THE SINGAPORE GOVERNMENT IS DETERMINED TO MEET ALL ITS OBLIGATIONS UNDER SCR 661. AN OFFICIAL STATEMENT WAS MADE ON 2 AUGUST CONDEMNING THE IRAQI INVASION OF KUWAIT IN STRONG TERMS. A FURTHER STATEMENT ON 10 AUGUST EMPHASISED SINGAPORE'S FIRM SUPPORT FOR SCR'S 660 AND 661. THE FOREIGN MINISTER, WONG KAN SENG, HAS GONE OUT OF HIS WAY TO BACK THESE RESOLUTIONS PUBLICLY ON SEVERAL OCCASIONS. TODAY'S STRAITS TIMES CONTAINS AN EDITORIAL, ALMOST CERTAINLY REFLECTING OFFICIAL VIEWS, ENTITLED, ''IT IS TIME FOR DECISIVE ACTION'', STRESSING THE NEED FOR SADDAM HUSSEIN TO BE

'TAUGHT SUCH A LESSON THAT HE WILL NOT HAVE THE STOMACH FOR ANOTHER (SURPRISE ATTACK)*.

3. THE IMPLEMENTATION OF SCR 661 IS BEING HANDLED BY THE MONETARY AUTHORITY OF SINGAPORE (MAS) WHICH WILL BE ISSUING A FORMAL DIRECTIVE SHORTLY (TEXT BY BAG AS SOON AS THIS IS AVAILABLE). MEANWHILE, THE AUTHORITY HAS TOLD EVERY BANK IN SINGAPORE, DOMESTIC AND FOREIGN, THAT:

(A)

THEIR PRIOR APPROVAL IS NEEDED BEFORE ANY BANK WILL BE PERMITTED TO MAKE PAYMENTS TO KUWAIT, IRAQ OR ''ANY RELATED PARTIES'

(B)

NO KUWAIT, OR IRAQI, ASSETS MAY BE TRANSFERRED TO KUWAIT OR IRAQ, OTHER THAN THOSE BELONGING TO THE LEGITIMATE KUWAIT GOVERNMENT, UNLESS APPROVED BY THE AUTHORITY.

4. THE MAS HAVE ALSO TOLD US IN CONFIDENCE THAT ORGANISATIONS OWNED BY KUWAIT OR BY KUWAIT INTERESTS ARE BEING CLOSELY MONITORED. THREE BANKS ARE BEING PARTICULARLY CLOSELY SCRUTINISED:

(A) GULF BANK (KSC) (ITS ONLY BRANCH OUTSIDE KUWAIT IS IN SINGAPORE).

(B) KUWAIT ASIA BANK (REGISTERED IN BAHRAIN). HERE AGAIN.

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