TNAG-2029-FCO40-2891-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 223

UNCLASSIFIED

FM AMMAN

TO DESKBY 23123OZ FCO

TELNO 457

114

UNCLASSIFIED

113763 MDHIAN 4761

HKE 020 126

RECEIVED IN STOCK

12 SEP 1990

OF 231055Z AUGUST 90

N

SANCTIONS: FREEZING OF KUWAITI ACCOUNTS AND ASSETS.

PROMINENT LOCAL ECONOMIST AND COMMENTATOR FAHED FANEK WRITING

IN AL RAI 23 AUGUST STRONGLY CRITICIZES BRITAIN FOR THE MANNER AND SCOPE OF THE FREEZING OF ACCOUNTS AND ASSETS OF EVERYONE WITH ANY CONNECTION WITH KUWAIT, EVEN THOSE WHO MERELY HAVE AN ADDRESS THERE. HE ACCUSES THE BANK OF ENGLAND OF OVERLOOKING THE FREEZING OF ACCOUNTS WHERE IT SUITS THEM EG TO CARRY OUT TRANSFERS, PAYMENT ON CHEQUES ETC WHERE BRITISH INTERESTS ARE INVOLVED.

HE DESCRIBES THE MEASURE AS A DESIRE TO PROTECT THE BRITISH ECONOMY FROM A RUSH OF WITHDRAWALS AND CALLS ON ALL FULL DEPOSITORS ΤΟ TRANSFER THEIR FUNDS OUT OF BRITAIN.

GUIDANCE SO FAR RECEIVED HAS NOT INCLUDED DETAIL OF HOW PRIVATE ACCOUNTS AND ASSETS ARE BEING FROZEN. GRATEFUL FOR EARLY GUIDANCE SO THAT WE MAY CONSIDER A REJOINDER.

REEVE

YYYY

ΜΑΙΝ

IRAQ/KUWAIT

LIMITED

229

ADDITIONAL

44

IRAQ/KUWAIT

(PASSED TO EMERGENCY UNIT)

NNNN

DISTRIBUTION

273

MED

MAFF

PAGE 1 UNCLASSIFIED