Source · Select Committees · Foreign Affairs Committee
Recommendation 29
29
Acknowledged
Paragraph: 87
There is compelling evidence that the repayment of the IMS debt became a precondition for...
Conclusion
There is compelling evidence that the repayment of the IMS debt became a precondition for the release of UK nationals from Iran. The failure to pay it sooner was highly regrettable and almost certainly adversely affected the length of detentions by limiting diplomatic options for negotiating an earlier release and brought significant suffering.
Government Response Summary
The government says the IMS debt created a unique situation, the debt resolution was complex, domestic and international litigation lengthened the process, and it would not have been appropriate to pay a debt still under consideration by a court.
Paragraph Reference:
87
Government Response
Acknowledged
HM Government
Acknowledged
56. The existence of a debt that the UK owed to Iran, and which the UK was legally obliged to settle created a unique set of circumstances in the bilateral relationship. The nature and resolution of the debt was complex, and it took a long period of time for domestic and international litigation relating to the debt to conclude. It would not have been appropriate for the Government to pay a debt still under consideration by a court. Successive Ministers and officials worked at pace to seek to discharge the debt at the earliest opportunity. However, the technical complexity involved in doing so legally, and in a sanctions-compliant manner, lengthened this process.