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- 3-
CLEARLY RIGHT THAT THE LAW SHOULD UPHOLD ARBITRATION CLAUSES
RATHER THAN SEE THEM CIRCUMVENTED.
THE MAIN PURPOSE OF THIS BILL THEREFORE IS TO CHANGE
THIS RULE AS TO THE EFFECT OF LIMITED APPEARANCES BY A "VICTIM
PARTY" IN FOREIGN COURTS AND TO POSITIVELY RESTATE AND REINFORCE
THE NEED TO GIVE EFFECT TO ARBITRATION CLAUSES FREELY ENTERED
INTO. THE BILL ACCOMPLISHES THIS BY CLAUSES 3 AND 4.
THE SECOND OBJECTIVE OF THE BILL IS TO PREVENT
JUDGMENT CREDITORS FOLLOWING THE COURSE I MENTIONED EARLIER,
NAMELY, COMMENCING FRESH PROCEEDINGS IN HONG KONG INSTEAD OF
ENFORCING THE FOREIGN JUDGMENT ITSELF. A FOREIGN JUDGMENT
WHICH IS ENFORCEABLE AND ENTITLED TO RECOGNITION IN HONG KONG
WILL THEREFORE OPERATE AS A BAR TO ANY ATTEMPT TO OBTAIN A
SEPARATE HONG KONG JUDGMENT,
THE REMAINDER OF THE BILL IS CONCERNED WITH
TRANSITIONAL AND CONSEQUENTIAL PROVISIONS.
/ MEMBERS