TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 49

CONFIDENTIAL

FM PLYMOUTH

TO

IMMEDIATE FCO

TELNO 135

CONFIDENTIAL

ܙܗ

102563

MDHIAN 4234

HKB 020/26

RECEIVED IN PE

24 AUG 1990

DESK

INDEX

OF 16100OZ AUGUST 90

AND TO IMMEDIATE HONG KONG, GIBRALTAR, GRAND CAYMAN, GRAND TURK AND TO IMMEDIATE TORTOLA, HAMILTON, WASHINGTON

54

YOUR TELNO 1523 TO HONG KONG: IRAQ/KUWAIT SANCTIONS: LIST OF

IRAQI OWNED COMPANIES

1.

THIS PRESENTS A PROBLEM FOR US.

2.

COMPANIES OPERATING INTERNATIONALLY (NOT IN MONTSERRAT) AND REGISTERED HERE NUMBERING IN THE HUNDREDS) ARE REGISTERED UNDER THE INTERNATIONAL BUSINESS COMPANIES ORDINANCE 1985 WHICH REQUIRES NEITHER AN ANNUAL RETURN NOR A NOTIFICATION OF CHANGE OF OWNERSHIP. THEY REMAIN ON THE REGISTER PROVIDED THAT THEY PAY THE ANNUAL FEE. CHARACTERISTICALLY THE ONLY INFORMATION IN THE REGISTRY IS AN OFF THE SHELF MEMORANDUM AND

ARTICLES AND THE NAMES OF ONE OR TWO INITIAL SUBSCRIBERS (INVARIABLY THE LAWYER SETTING UP THE COMPANY AND (SAY) ONE OF HIS EMPLOYEES). IT IS, I UNDERSTAND, NORMAL PRACTICE FOR LAWYERS HERE (AND ELSEWHERE) TO ESTABLISH COMPANIES ON THAT BASIS.

3. SIMILAR NUMBERS OF LOCAL COMPANIES ARE REGISTERED UNDER THE COMPANIES ACT CAP 308 OF THE LAWS. WHILST THIS ORDINANCE PROVIDES FOR A GREATER DEGREE OF CONTROL IN THAT BOTH AN ANNUAL RETURN AND NOTIFICATION OF CHANGE OF OWNERSHIP ARE REQUIRED, IN PRACTICE THESE HAVE NOT BEEN PROVIDED BY THE COMPANIES NOR REQUIRED BY THE REGISTRAR. AGAIN THE INITIAL SUBSCRIBERS ARE INVARIABLY LOCAL LAWYERS AND THE MEMORANDUM AND ARTICLES GIVE

NO CLUE TO THEIR OPERATIONS.

4.

IN PRACTICE THOUGH THE PURPOSES TO WHICH THESE COMPANIES ARE PUT MAY OFTEN BE OBSCURE AND DUBIOUS, IT SEEMS MOST UNLIKELY (ALBEIT NOT IMPOSSIBLE) THAT THERE IS AN IRAQI INTEREST IN ANY

OF THEM.

TAYLOR

YYYY

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