TNAG-2029-FCO40-2891-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 222

UNCLASSIFIED

115

116150 MDHOAN 5047

НКЕ 020 126

UNCLASSIFIED

FM FCO

TO IMMEDIATE AMMAN

TELNO 297

OF 231815Z AUGUST 90

12 SEP

W

YOUR TELNO 457 : SANCTIONS: FREEZING OF KUWAITI ACCOUNTS AND ASSETS

1. IT IS FAR FROM CLEAR TO OURSELVES AND THE TREASURY WHAT M. FANEK'S COMPLAINT REALLY IS AND, INDEED, WHETHER IT MERITS A REJOINDER.

2.

AS USEFUL BACKGROUND AND GENERAL GUIDANCE ON THIS WE ARE FAXING A COPY OF THE BANK OF ENGLAND'S GUIDANCE ON THE IMPLEMENTATION OF THE FREEZE.

3. SHOULD YOU DECIDE TO RESPOND TO M. FANEK WE SUGGEST YOU MAKE THE FOLLOWING POINTS:

HURD

(A) THE FREEZE DOES NOT APPLY TO INDIVIDUAL KUWAITI

RESIDENTS (AS WELL AS TO COMPANIES) BUT THE BANK'S

GUIDANCE MAKES IT CLEAR THAT THEY CAN STILL DRAW FUNDS FOR LIVING EXPENSES ETC.

(B) THE INTENTION OF THE FREEZE IS TO PROTECT THE ASSETS OF THEIR LEGITIMATE KUWAITI OWNERS AS WE ARE REQUIRED TO DO BY SCR 662.

YYYY

ΜΑΙΝ

IRAQ/KUWAIT

LIMITED

229

ADDITIONAL 43

IRAQ/KUWAIT

(PASSED TO EMERGENCY UNIT)

DISTRIBUTION

272

PAGE

MED

1

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