UNCLASSIFIED
FM HONG KONG
TO PRIORITY FCO
TELNO 2739
OF 16035OZ JULY 88
UNCLASSIFIED
370/4
PA
061253
MDLIAN 3135
HKD 37014 i
RECEIV
18 JUL 1988
FICEX
PA
Ken
FCO FOR LEGAL
ADVISERS
RE: HAGUE CONVENTION ON THE LAW OF TRUSTS
NIGEL PARKER'S LETTER OF 16 JUNE 1988 TO MR J.F. MATHEWS, THE
ATTORNEY GENERAL REFERS.
2. BEFORE DECIDING UPON INCLUSION IN THE UK'S RATIFICATION OF THE ABOVE WE CONSULTED BRIEFLY WITH PRIVATE LEGAL PRACTITIONERS HERE FOR THEIR VIEWS, BUT PRESSURE OF TIME HAS NOT PERMITTED A FULL AND CONSIDERED STUDY OF THE IMPLICATIONS OF THE CONVENTION AND THE
LEGISLATION.
3. OF THE 4 PRACTITIONERS CONSULTED TWO ARE STRONGLY IN FAVOUR OF RATIFICATION BUT THE OTHER TWO HAVE EXPRESSED STRONG RESERVATIONS.
4. THE MAIN ADVERSE CRITICISMS WERE VOICED BY GERARD HORTON WHO FEELS THAT THE CONVENTION WOULD CHANGE THE TRADITIONAL CONCEPT OF EQUIPTABLE TRUSTS AND WOULD INTRODUCE A LARGE NUMBER OF PROBLEMS. I TRUST THAT I REPORT HIM CORRECTLY AS HAVING SAID THAT, FOR
INSTANCE:-
(A) THE REFERENCE IN ARTICLE 2 TO ''SPECIFIED PURPOSE'' WOULD CAUSE PROBLEMS IN CONNECTION WITH TRUSTS CREATED FOR CHARITABLE PURPOSES:
(B) THE USE OF ''VOLUNTARIL Y' IN ARTICLE 3 WOULD CAUSE UNCERTAINTY IN, SAY, CASES OF TRUSTS ARISING OUT OF SCHEMES OF ARRANGEMENT.
5. GENERALLY, MR HORTON FEELS THAT THE CONVENTION INTRODUCES COMPLETELY DIFFERENT CONCEPTS WHICH WOULD CREATE DOUBTS AND
INEVITABLE LITIGATION,
6. MANY OF THESE CRITICISMS SEEM TO HAVE SOME VALIDITY IF THE CONVENTION IS CONSIDERED IN ISOLATION. HOWEVER, READ IN CONJUNCTION WITH THE RECOGNITION OF TRUSTS ACT 1987 (AND IN PARTICULAR SECTION 1(2) THEREOF) THESE DIFFICULTIES MAY BE LARGELY RESOLVED.
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