TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 43

CODE 18-77

Mr R Young

CONFIDENTIAL

Head of Emergency Unit

IRAQ/KUWAIT SANCTIONS

Reference..

HKB OZO / 26

94

SFCEIVED A

с

24 AUG 1990

DES

INDEX

DEPENDENT TERRITORIES

1. Notwithstanding our useful meeting last Wednesday 15th to discuss sanctions measures in the dependent territories, I am still not satisfied that we have taken adequate account of the needs of the dependent territories. If sanctions

busting takes place in our dependent territories it is the UK who will be called upon to answer internationally, not the local governments. We must ensure that the measures adopted are working effectively.

2.

Two particular points concern me:

(a) the need to move quickly to close the Bermuda gap over assets freezing legislation (c/f Hamilton Tels Nos 131 and 133). Although Mr Chamberlain assures us that the extension of the Caribbean DTs legislation to Bermuda can be made retrospectively, the present uncertain situation is causing much concern to the Bermuda Government and to the Bank of England. We have also received enquiries from the public on why Bermuda is a special case. We must therefore enact this extension through Order in Council quickly, i.e. this week.

For

(b) although the Emergency Unit undertook to be the link between the dependent territories and the DTI/B of E for licence referrals, this is not working satisfactorily. example, the Caymans still await a response to their application request made on 13 August. Such referrals rightly come low in the Emergency Unit's priorities. I suggest that the geographical departments act as the liaison point, keeping the Emergency Unit informed as necessary.

P A Penfold

WH MZ 37

270 2699

20 August 1990

CC:

Mr A Burns

Miss G Evans, UND

Mr K Chamberlain, Legal Advisers

Miss J Bulloch, International Division, Bank of England Mr M Coolihan, Export Licensing Division, DTI

Mr D Pearey, SED

Mr T Furness, HKD ✔

Mr P Innes, FID

Miss P Walsh, SPD

CONFIDENTIAL