Memorandum by HM Treasury
2000 (S.I. 2000/1367)
1. The Clerk of the Committee's
letter to HM Treasury's Parliamentary Clerk of 14 June asked for
an explanation of why the FRY (freezing of funds and prohibition
on investment) (Amendment) Regulations could not have been made
and laid earlier so as to avoid infringing the 21 day rule.
2. The Treasury Memorandum to
the Committee of 19 May explained why the 21 day rule was being
3. EC Regulation 723/2000 came
into effect on 8 April 2000. The Regulation also provided for
Annexes to be drawn up listing "white" companies within
the FRY who will be exempt from the funds freeze, and "black"
companies in Kosovo and Montenegro to whom the sanctions will
apply. The Regulation provided for these lists to be effective
from 15 May.
4. This was the first priority.
A great deal of time and effort needed to be devoted to the preparation
of these annexes in order to meet the 15 May deadline required
by EC Regulation 723/2000. Work preparing the compilation of the
annexes meant that we could not turn to the preparation of S.I.
2000/1367 until this work was complete. (In the event the deadline
for completing the annexes was extended to 30 June, but this was
not done until 18 May by EC Regulation 1059/2000).
5. Given the regulations were
not finalised until 18 May, it was more (rather than less) urgent
that they come into force without delay hence the need
to breach the 21 day rule.
20th June 2000