CONFIDENTIAL
Effects on bilateral relations
2.
In
At the same time Mr Vaz has expressed concern that HMG
should be doing more to address the foreign policy
implications of BCCI's closure, and in particular to safeguard our relations with Shaikh Zayed and the UAE. his letter to The Times Mr Vaz suggested that the Prime Minister should give reassurance to the Abu Dhabi authorities that he supports any initiative that will benefit depositors, creditors and staff, and thank Shaikh Zayed for his continued involvement and interest; a Ministerial visit was also suggested.
3.
w
In his earlier letter of 11 August to the Prime Minister Mr Vaz had already flagged his twin concerns financial and political and appealed for more positive action by both the Bank of England and HMG. The Treasury submitted a draft reply indicating that we are continuing to consider the possibility of sending a Minister to Abu Dhabi and would do so if we felt it helpful and appropriate.
4. Following Mr Nixon's submission of 29 August, the Secretary of State concluded that he would see the UAE Foreign Minister at the end of September at UNGA; probably send a message to Shaikh Zayed in October asking him to see Mr Hogg when he visited Abu Dhabi (late October); brief Sir Richard Luce carefully before his visit to Abu Dhabi at Christmas; and plan on visiting the UAE himself on his way to or from India in January. But he accepted that it would
be better not to send a Minister or another senior emissary to Abu Dhabi at this stage.
5. As the BCCI affair will, almost certainly, continue to have repercussions for our relations with the UAE (and possibly other countries) we are trying to arrange for the Bank of England to provide regular briefings to FCO officials on developments.
take place next week.
JA1AIF/2
The first of these briefings may
CONFIDENTIAL
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