§ Lord Aveburyasked Her Majesty's Government:
§ What powers they have to compel a foreign registered subsidiary of a United Kingdom company to observe an arms embargo agreed by the United Kingdom.
§ The Minister of State, Department of Trade and Industry (Lord Strathclyde)UK law does not normally apply to the subsidiaries of UK companies which are incorporated in a foreign country.
In relation to measures under the United Nations Act 1946 to implement UN trade sanctions or arms embargoes agreed by the United Nations Security Council, UK law applies to a body constituted or incorporated under the law of any part of the United Kingdom and to any person within the United Kingdom and any person elsewhere who is:
- a British citizen;
- a British Dependent Territories citizen;
- a British Overseas citizen;
- a British subject, or
- a British protected citizen.
There are UN arms embargoes currently in effect against Iraq, Serbia and Montenegro, Libya, Angola (UNITA), Haiti, Liberia, Somalia, Former Yugoslavia and South Africa. There are also UN trade sanctions in effect against certain of these destinations.
In respect of any other arms embargo, the normal provisions of UK law apply.