TNAG-2224-FCO40-3195-Gulf-War-burden-sharing-Hong-Kong-contribution-1991 — Page 53

CONFIDENTIAL

48.

05T010

MDHOAN 7985

HKB 02013

CONFIDENTIAL

FM FCO

TO IMMEDIATE JEDDA

TELNO 82

OF 15192OZ FEBRUARY 91

m

AND TO PRIORITY BONN, HONG KONG, MUSCAT, ABU DHABI, COPENHAGEN AND TO PRIORITY RIYADH

INFO ROUTINE MODUK, TOKYO, SEOUL

SIC 19M

JEDDA FOR BLACKLEY

HONG KONG FOR GOVERNOR

?

FCO TELNO 72: BURDENSHARING : KUWAITI CONTRIBUTION

1. FOLLOWING ANNOUNCEMENT OF THE POUNDS 660 M KUWAITI CONTRIBUTION WE NEED TO ESTABLISH THE DETAILS OF PAYMENT. GRATEFUL IF YOU COULD TAKE AN EARLY OPPORTUNITY TO DISCOVER: A) WHEN THE KUWAITIS EXPECT TO BE ABLE TO MAKE THE MONEY AVAILABLE.

B)

HOW THEY ENVISAGE THE PAYMENT BEING MADE CEG LUMP SUM OR INSTALMENTS)?

2.

CANY SUCH INFORMATION WOULD OF COURSE ALSO BE WELCOME FROM OTHER ACTION ADDRESSEES WHERE WE HAVE NOT ALREADY BEEN INFORMED.)

3.

FOR YOUR OWN INFORMATION, HM TREASURY HAVE TOLD US THAT FOR ACCOUNTING PURPOSES THERE WOULD BE SOME ADVANTAGES IF THE KUWAITI CONTRIBUTION WAS DELAYED UNTIL THE NEXT FINANCIAL YEAR. THERE IS THEREFORE NO NEED TO PRESS FOR EARLY PAYMENT. BUT IN DOING SO YOU SHOULD BE CAREFUL NOT TO SUGGEST THAT WE ARE INDIFFERENT TO THE KUWAITI FUNDS: ON THE CONTRARY WE WOULD WISH TO KEEP OPEN THE POSSIBILITY OF A FURTHER CONTRIBUTION SHOULD OUR COSTS ESCALATE IN THE NEXT FINANCIAL YEAR.

4. (FOR RIYADH). THE SAME FLEXIBILITY ON THE TIMING OF PAYMENT APPLIES TO THE SAUDI CONTRIBUTION, ALTHOUGH WE WOULD OBVIOUSLY LIKE AN UNEQUIVOCAL PROMISE QUICKLY TO AN AMOUNT WE CAN RELY ON.

5. CALL ACTION ADDRESSEES). ON THE MODALITIES, PAYMENTS IN STERLING ARE EASIEST FOR US TO HANDLE. THESE SHOULD BE PAID TO THE PAYMASTER GENERAL'S CASH ACCOUNT AT THE BANK OF ENGLAND MARKED QUOTE PGO SUSPENSE ACCOUNT UNQUOTE. PAYMENTS IN OTHER MAJOR CURRENCIES (DOLLARS, DEUTSCHEMARKS OR YEN) OR, IN THE CASE OF PAYMENTS FROM COUNTRIES IN THE EXCHANGE RATE MECHANISM, IN THE CURRENCY OF THAT NATION, ARE ALSO ACCEPTABLE. FOR NON-STERLING PAYMENTS, THE CENTRAL BANK OR OTHER AUTHORITY MAKING THE PAYMENT SHOULD LIAISE WITH THE BANK OF ENGLAND (MR TROTT, CHIEF FOREIGN

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