TNAG-2029-FCO40-2891-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 153

PARA 2 OF MIFT.

CONFIDENTIAL

105111

MDH V 8499

5.

FOR ROME.

WE UNDERSTAND THAT THE ITALIANS MAY BE HESITANT ABOUT MAKING A DEMARCHE ON BEHALF OF THE TWELVE (YOUR TELNO 807). NEVERTHELESS, SUCH ACTION WOULD USEFULLY HELP TO INCREASE PRESSURE ON THE IRAQIS. GRATEFUL THEREFORE IF YOU WOULD PROPOSE THAT THE PRESIDENCY - OR THE TROIKA - MAKE A DEMARCHE TO THE IRAQI GOVERNMENT ON BEHALF OF THE TWELVE, COVERING DECREE NO 377 (PARA 1 OF THE NOTE IN MIFT). IT WOULD ALSO BE HELPFUL IF THE PRESIDENCY/TROIKA COULD MAKE A SECOND DEMARCHE BASED ON PARA 2 OF THE NOTE IN MIFT, AS WE PROPOSE TO DO, RESERVING MEMBER STATES' RIGHTS IN RELATION TO OTHER IRAQI ACTIONS.

6.

OTHER EC POSTS SHOULD INFORM PARTNERS OF OUR INTENDED DEMARCHES, AND ENCOURAGE THEM TO TAKE ACTION BILATERALLY WITH THE IRAQIS ON SIMILER LINES. THE COREU BEING DESPATCHED TO EC CAPITALS (TEXT IN FCO TELNO 549 TO ROME) GIVES A LINE TO TAKE.

7.

OTHER ADDRESSEES SHOULD INFORM HOST GOVERNMENTS OF THESE DEMARCHES AND SUGGEST THEY TAKE SIMILAR BILATERAL ACTION. WE RECOGNISE THAT SOME MAY BE RELUCTANT TO VOICE CRITICISM OF IRAQI ACTIONS, BUT HOPE THEY WILL UNDERSTAND THE IMPORTANCE OF TAKING EVERY OPPORTUNITY TO IMPRESS UPON THE IRAQIS THE CONSEQUENCES OF THEIR ACTIONS. WE MUST NOT LOSE SIGHT OF THE FACT THAT UN SECURITY COUNCIL RESOLUTION 670, DECLARES THE IRAQI DECREE TO BE NULL AND VOID.

8.

FOR YOUR INFORMATION, WE ARE CONSIDERING POSSIBLE ACTION IN THE SECURITY COUNCIL ON REPARATIONS, WHICH ARE REFERRED TO IN THE SECOND TEXT.

9.

SEE MIFT.

HURD

YYYY

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CONFIDENTIAL