CODE 18-77

-

Mr Underwood Claims Department Mr Church - Pensions Department, ODA Mr Paul - FED

Mr Williamson - HKGD

Ms Pares - Research Department

(Separate copies)

AKK 361/1

4

RECEIVED IN REGISTRY NO. 51 2 5 SEP 1980

see

DRAFT FOREIGN COMPENSATION (PEOPLE'S REPUBLIC OF CHINAFIEREGISTRATION) ORDER 1980

Action Take¬

W 725.8

AW 2619

ملة

1. I attach a copy for each of you of a second draft of the above Order (two extra copies go to Mr Underwood so that he can send one each to the Bank of England and the Treasury).

I

2. I have discussed the question of timing with Mr Paul. explained that if we wished to bring the Order into operation on

1 December we should have to move quickly since the documents relating to the Order would have to be with the Privy Council by 7 October. Furthermore, I said that I had discussed this with Sir James Henry, the Chairman of the Foreign Compensation Commission, who had indicated that, whilst if necessary he could go along with an operational date of 1 December, he would prefer 1 January for administrative reasons. Mr Paul's preliminary reaction was that it would be satisfactory for us to choose 1 January, one month either way not being material. For obvious reasons, I should be grateful to receive an early indication if anyone is disposed to disagree with this, and unless I hear to the contrary by close of play on Friday I shall assume everyone is content.

3. I should be grateful for any comments which any of you may have on this second draft. Two changes of substance to be noted are:-

(a) an improved definition of "debt";

(b) the requirement (in the old Article 4(1)) that the property

should have been on the territory on 1 October 1949 and owned by a UK national on that date was thought to be too restrictive, since some businesses continued to function in China for some time after 1949 and might have introduced property into China or purchased it there after 1 October 1949. Instead, a requirement has been added to Article 3, as subparagraph (c), that the applicant or, as the case may be, the person from whom he succeeded to the property was a UK national on 1 October 1949.

24 September 1980

CA Whomersley

Assistant Legal Adviser

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