US embassy cable - 90STATE254152

UNCLAS STATE 254152 
 
E.O. 12356:  N/A 
TAGS:  ETTC, PARM 
SUBJECT:  TF1GEN:  BLOCKING IRAQI ASSETS AND PROTECTION 
OF KUWAITI ASSETS 
 
1.  (C)  ENTIRE TEXT 
 
2.  THE INVASION OF KUWAIT BY IRAQ MAY IN PART BE AN 
ATTEMPT TO SEIZE KUWAITI GOVERNMENT ASSETS.  TO PREVENT 
THAT, ADDRESSEE POSTS ARE REQUESTED TO MAKE THE 
FOLLOWING POINTS IMMEDIATELY WITH THE HIGHEST LEVEL 
POSSIBLE IN THE HOST GOVERNMENT. 
 
3.  THE PRESIDENT HAS DECIDED WITH IMMEDIATE EFFECT TO 
FREEZE ALL KUWAITI GOVERNMENT ASSETS WITHIN THE 
JURISDICTION OF THE UNITED STATES OR WITHIN THE 
POSSESSION OR CONTROL OF UNITED STATES PERSONS IN ORDER 
TO PROTECT THOSE ASSETS.  THIS WOULD INVOLVE ANY 
GOVERNMENT OF KUWAITI ASSETS HELD IN OVERSEAS BRANCHES 
OF U.S. FIRMS. 
 
4.  IN ADDITION, WITH IMMEDIATE EFFECT, THE PRESIDENT 
HAS FROZEN ALL IRAQI GOVERNMENT ASSETS WITHIN THE 
JURISDICTION OF THE UNITED STATES, AND PROHIBITED ALL 
EXPORTS TO AND IMPORTS FROM IRAQ, INCLUDING ALL 
TRANSFERS OF CURRENCY, SECURITIES OR OTHER FINANCIAL 
INSTRUMENTS TO OR FROM BANKING OR FINANCIAL 
INSTITUTIONS, AND HAS TERMINATED ALL EXISTING COMMERCIAL 
CONTRACTS. 
 
5.  IN ORDER TO PROTECT KUWAITI GOVERNMENT ASSETS FROM 
FALLING INTO IRAQI HANDS AND TO BRING PRESSURE ON IRAQ 
TO WITHDRAW, THE UNITED STATES REQUESTS THAT ALL NATIONS 
TAKE SIMILAR ACTIONS IMMEDIATELY. 
 
6.  TREASURY HAS NOTIFIED ITS FINANCIAL ATTACHES IN 
SELECTED CAPITALS OF U.S. ACTIONS AND REQUEST FOR 
COMPLEMENTARY HOST NATION ACTIONS.  IN THOSE COUNTRIES, 
WE ALSO WANT TO DOUBLETRACK IN FOREIGN MINISTRIES. 
 
7.  FOR YOUR INFORMATION, THESE PROHIBITIONS APPLY TO 
PERSONS AND ENTITES WITHIN THE UNITED STATES OR WITHIN 
THE CONTROL OR POSSESSION OF U.S. PERSONS, INCLUDING 
OVERSEAS BRANCHES OF U.S. PERSONS.  IF ASKED, PLEASE 
INFORM COUNTRY THAT AT THIS TIME THIS ORDER DOES NOT/NOT 
EXTEND TO OVERSEAS SUBSIDIARIES OF US PERSONS. 
 
8.  GIVEN THAT EUROPEAN MARKETS ARE NOW OPEN, SO SPEED 
IN MAKING CONTACT WITH HOST GOVERNMENT IS IMPERATIVE. 
THE TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS 
CONTROL WILL MAKE A PUBLIC ANNOUNCEMENT OF THESE 
CONTROLS AT 0800 EST AUGUST 3. 
 
 
KIMMITT