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O 4 NO 1987
kor
207
FROM: J Thomas
Claims Department
DATE: 30 October 1987
CC:
Mr Grainger, Legal
Advisers
FED
HID
Dr Hoare, Research
Department
Mr Griffiths, Finance
Department
Miss Pestell PS/Mr Eggar
CHINA ORDER-IN-COUNCIE
1. Attached is the latest revise of the draft China
Order-in-Council. It incorporates suggestions made by the Foreign Compensation Commission (FCC) and the Bank of England. It needs, however, further discussion with them and some aspects require clearance by the Treasury, the Lord Chancellor's Department, and the Council on Tribunals as well as
technical adjustment before it can be finalised.
2. At this stage we should like to know the Minister's views on the following points:
a)
Administrative or Judicial Registration of Bonds
The draft Order follows the Russian Order in providing for registration of bond claims by the FCC acting in their administrative capacity. This system was adopted for the first time in the Russian distribution.
The Minister should, however, be aware that the process of administrative registration of claims was criticised by the Joint Committee on Statutory Instruments when it considered the 1980 China Registration Order on the grounds, in summary, that the provisions could lead to a claimant suffering prejudice or being under the impression that he had been excluded, by reason of an administrative decision, rather than judicial determination. The JCSI felt that this was undesirable in view of the fact that some of the decisions to be taken by the FCC were complicated ones for which a judicial determination would be more appropriate.
A copy of their report and of the official FCO response is attached. Because this is a second China Order the JCSI are likely to consult the record of the 1981 proceedings and to scrutinise carefully whether the views they expressed then have been taken
/into