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The threat was based on a law introduced after the Libyan embassy siege.

What does the Act allow?
The Act was passed in the wake of a government review of the law around diplomatic premises following the 11-day Libyan Embassy Siege of 1984. In that case, a gun man who killed WPC Yvonne Fletcher was able to evade prosecution, using diplomatic immunity to avoid arrest by staying in the Libyan Embassy before fleeing the country. The Act says that the Government can revoke the diplomatic status of a building, meaning that British law would apply there.

In which case the passing of the law would be the main precedent, not necessarily the threat, with diplomats being aware of the law.