TNAG-2028-FCO40-2890-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 75

CODE 18-77

Reference

was referred to in that telegram.

5. Mr Compton telephoned me this morning. He has again

been in touch with Mr Gannon and it has been decided that

Barings should be given a limited authority to act on a dicretionary basis, pending resolution of the problem of the

letter of authority, and the question of the

"constitutional" relationship between the KIA and the KIO

and whether in a legal sense the latter could act on behalf

of the former in the manner proposed in the KIO letter to

BIAAL OF 10 August 1990. I would welcome legal advice on

this and related points.

6. Mr Compton pointed out that as the question of Barings being able to act for KIO would be of extensive interest

outside of Hong Kong a decision in the matter ought to be

well publicised to other posts.

Mumess.

T Furness

Hong Kong Department

WH311

16 August 1990

CC:

Mr Heigl (MED)

Mr Chamberlain (Legal Adviser)

Mr Penfold (WIAD)

Mr Fifoot, Legal Advisers

BRIABW/2

270 2653

}

with exclosure

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