CONFIDENTIAL
ние ого /26
071345 MDLIAN 3539($3
20 AUG 995
CONFIDENTIAL
FM UKDEL NATO
TO PRIORITY FCO
TELNO 393
OF 161149Z AUGUST 90
.:X
INFO ROUTINE WASHINGTON, PARIS, BONN, UKREP BRUSSELS, UKMIS NEW YORK INFO ROUTINE MODUK, ACTOR, ANKARA
SIC 19M
MY TELNO 377 NATO CONSULTATIONS ON IRAQ/KUWAIT: ECONOMIC
IMPLICATIONS
SUMMARY
1. ALLIES COMPARE NOTES ON NATIONAL MEASURES TO IMPLEMENT SANCTIONS: USEFUL BRIEFING FROM TURKEY. DISCUSSION OF COUNTRIES LIKELY TO SEEK TO AVOID COMPLIANCE: JORDAN THE MAIN CONCERN. REVIEW OF EFFECTS OF SANCTIONS ON IRAQ: CONSENSUS THAT IT WILL BE SOME WHILE BEFORE THEY
BEGIN TO BITE.
DETAIL
2. THE NATO ECONOMIC COMMITTEE (TUR) MET AGAIN TODAY (16 AUGUST).
MEASURES BY ALLIES TO COMPLY WITH UN SANCTIONS
3. TURKEY SAID HIS AUTHORITIES WERE COMMITTED TO FULL AND TOTAL IMPLEMENTATION OF THE SANCTIONS. TURKEY WOULD SUFFER ECONOMICALLY: 60 PERCENT OF HER OIL IMPORTS CAME THROUGH IRAQ, AND SOME 300 MILLION DOLLARS PAID BY IRAQ FOR USE OF TURKISH PORTS AND FACILITIES, AND TURKISH TRADE WORTH 2.8 BILLION DOLLARS, WAS IN JEOPARDY. IRAQ ALSO OWED TURKEY SOME 750 MILLION DOLLARS. TURKEY HAD STOPPED THE TRANSPORT OF GOODS TO IRAQ (REPRESENTING 15 PERCENT OF TOTAL TURKISH EXPORTS). IN RESPONSE TO A QUESTION AS TO WHETHER TURKEY HAD ALSO STOPPED FOOD DELIVERIES TO IRAQ, HE SAID THAT HE BELIEVED THIS TO BE THE CASE.
4. UK BRIEFED ON MEASURES TAKEN BY HMG, ON THE LEVEL OF BILATERAL TRADE AND ECGD EXPOSURE. US SAID 1989 EXPORTS TO IRAQ TOTALLED 1.2 BILLION DOLLARS (MOSTLY FOOD) WITH IMPORTS AT 2.6 BILLION DOLLARS (MOSTLY OIL). THE ADMINISTRATION WERE INTERPRETING UNSCR 661 VERY NARROWLY: ONLY MEDICAL SUPPLIES TO HOSPITALS AND FOOD FOR GENUINE HUMANITARIAN NEEDS SHOULD CONTINUE TO REACH IRAQ. FOOD SUPPLIES IN GENERAL SHOULD BE HALTED. PORTUGAL REPORTED THAT AN IRAQI SHIP SEEKING REPAIR IN LISBON HAD BEEN TURNED AWAY.
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