TNAG-2029-FCO40-2891-Hong-Kong-freezing-of-Kuwaiti-and-Iraqi-assets-1990 — Page 80

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FM UKREP BRUSSELS

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TO IMMEDIATE FCO

OF 12211OZ NOVEMBER 90

INFO PRIORITY UKMIS NEW YORK, WASHINGTON, UKMIS GENEVA

INFO ROUTINE EUROPEAN COMMUNITY POSTS

IRAQ/KUWAIT: INFORMAL MEETING ON SANCTIONS, 12 NOVEMBER 1990

SUMMARY

1. DISCUSSION OF THE COMMISSION'S DRAFT LIST OF LEGITIMATE KUWAITI BODIES, PERFORMANCE BONDS AND SUB-CONTRACTS, ALL OF WHICH WILL BE CONSIDERED AGAIN AT A FURTHER MEETING NEXT WEEK.

DETAIL

LIST OF LEGITIMATE KUWAITI BODIES

2.

THE UK PROPOSED A NUMBER OF ADDITIONS TO THE COMMISSION'S DRAFT LIST OF KUWAITI BODIES CONTROLLED AND RECOGNISED BY THE LEGITIMATE GOVERNMENT OF KUWAIT (ARTICLE 2.2 OF THE AMENDING REGULATION). THE NETHERLANDS, BELGIUM AND FRANCE ALSO HAD SOME QUERIES. NEUMANN (COMMISSION) AGREED TO CONSULT THE LEGITIMATE KUWAITI AUTHORITIES (VIA THE KUWAITI EMBASSY IN BRUSSELS) ABOUT THESE FURTHER SUGGESTIONS. HAVING DONE SO, THEY WOULD CIRCULATE A REVISED LIST TO MEMBER STATES FOR DISCUSSION AT A FURTHER MEETING NEXT WEEK. (COMMENT: DTI HAVE AGREED TO ALERT THE KUWAITI EMBASSY IN LONDON/KIO TO THIS).

3. THE UK, DENMARK AND IRELAND REFERRED TO THE SERIOUS PROBLEMS ARISING FROM THE FACT THAT NON-KUWAITI COMPANIES CONTROLLED BY LEGITIMATE KUWAITI BODIES WERE NOT COVERED BY THE EXEMPTION MECHANISM UNDER ARTICLE 2 OF THE AMENDING REGULATION. NEUMANN WAS SYMPATHETIC TO THESE CONCERNS. IT WAS TRUE THAT ARTICLE 2 ONLY DEALT WITH KUWAITI BODIES. BUT (TAKING UP A UK SUGGESTION) HE THOUGHT IT MIGHT BE POSSIBLE TO INCLUDE IN THE DRAFT LIST OF LEGITIMATE KUWAITI BODIES A FOOTNOTE ABOUT THE TREATMENT OF NON- KUWAITI COMPANIES FALLING UNDER THEIR CONTROL. THE COMMISSION COULD ALSO PREPARE AN INTERPRETATIVE FICHE ON THIS SUBJECT. IT WAS AGREED THAT THIS POINT SHOULD BE FURTHER DISCUSSED AT THE NEXT MEETING.