TNAG-2029-FCO40-2891-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 199

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FM FCO

TO PRIORITY HONG KONG

TELNO 1584

OF 28134OZ AUGUST 90

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131

131040

MDLOAN 4958

HKB 020 / 26

+25

FOLLOWING TELEGRAM NOW REPEATED TO YOU AT REQUEST OF HKD,

WAS SENT TO PEKING TELNO 671 OF 242132Z AUGUST 90.

BEGINS,

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TO DESKBY 25010OZ PEKING

TELNO 671

OF 242132Z AUGUST 90

AND TO DESKBY 24213OZ UKMIS NEW YORK

INFO IMMEDIATE BAGHDAD, WASHINGTON

INFO PRIORITY PARIS, MOSCOW, UKDEL NATO

1.

MY TELNO 480 AND PEKING SIGNAL 24063OZ TO MODUK (NOW REPEATED TO UKMIS): IRAQ/KUWAIT: SANCTIONS VIOLATIONS

SUMMARY

1.

INSTRUCTIONS TO APPROACH THE CHINESE ABOUT POTENTIAL

VIOLATIONS SANCTIONS AGAINST IRAQ.

DETAIL

2.

WE UNDERSTAND FROM SENSITIVE SOURCES IN IRAQ THAT THE FOLLOWING CHINESE COMPANIES ARE BEING APPROACHED BY IRAQ FOR

SUPPLY OF INDUSTRIAL EQUIPMENT AND RAW MATERIALS. WE BELIEVE

THIS REQUIREMENT MAY BE LINKED TO IRAQ'S CHEMICAL WEAPONS

CAPABILITY. THE COMPANIES ARE:

THE CHINA NATIONAL MACHINERY IMPORT-EXPORT CORPORATION, BEIJING THE CHINA NATIONAL TECHNICAL IMPORT CORPORATION, BEIJING THE CHINA NORTH INDUSTRIES CORPORATION (NORINCO), BEIJING THE CHINA PETROLEUM CHEMICAL INTERNATIONAL COMPANY, BEIJING. 3. PEKING SHOULD TAKE AN EARLY OPPORTUNITY TO BRING THIS INFORMATION TO THE ATTENTION OF THE CHINESE AUTHORITIES, ADDING THAT WE HOPE THEY WILL TAKE STEPS TO ENSURE THAT THE UN EMBARGO

AGAINST IRAQ IS RIGOROUSLY APPLIED.

4. UKMIS NEW YORK HAS DISCRETION TO TAKE PARALLEL ACTION WITH THE

CHINESE PERMANENT REPRESENTATIVE IF IT WOULD BE HELPFUL IN THE CONTEXT OF THE CURRENT SECURITY COUNCIL NEGOTIATIONS. IT HAS ALSO

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