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7. IN THE TIME AVAILABLE WE ARE UNABLE TO FORM A DEFINITE VIEW AS
TO WHAT SUBSTANTIVE CHANGES (IF ANY) TO OUR TRUST LAW WOULD BE
INVOLVED IF WE REQUESTED INCLUSION IN THE UK'S RATIFICATION OF THE CONVENTION AND EITHER REQUESTED EXTENSION OF THE 1937 ACT TO
HONG KONG OR ENACTED LOCAL LEGISLATION SIMILAR TO THAT
ACT. I WOULD
BE GRATEFUL FOR YOUR URGENT ADVICE ON THE SUBJECT OF SUBSTANTIVE
CHANGES IN THE LAW.
8. WE APPRECIATE THAT THE CONVENTION AND THE ACT WILL BENEFIT COMMON
LAW COUNTRIES VIS A VIS CIVIL LAW COUNTRIES. HOWEVER THIS IN ITSELF
IS NOT A MAJOR FACTOR AS FAR AS HONG KONG IS CONCERNED. ON THE OTHER
HAND IT IS OF BENEFIT TO US TO REMAIN IN STEP WITH THE DEVELOPMENT
OF ENGLISH TRUST LAW UPON WHICH OUR OWN TRUST LAW IS BASED. WE ARE
THEREFORE INCLINED TO SEEK INCLUSION IN THE UK'S RATIFICATION, BUT BEFORE CONFIRMING THIS I AM SUBMITTING A PAPER TO OUR LEGAL AFFAIRS
POLICY GROUP (LAPG) FOR A DECISION ON 25 JULY 1988. IT WOULD BE
VERY HELPFUL IF YOU COULD LET ME HAVE THE ADVICE SOUGHT IN
PARAGRAPH 7 BEFORE THAT DATE, TO ENABLE LAPG TO TAKE ACCOUNT OF
Y OUR VIEWS.
9. ALSO, IN SEEKING INCLUSION IN THE RATIFICATION WE MUST BEAR IN MIND OUR OBLIGATIONS TO CONSULT WITH THE CHINESE SIDE CONCERNING
THE APPLICATION OF INTERNATIONAL AGREEMENTS WHICH WOULD
AP PROPRIATELY EXTEND BEYOND 1997.
WOULD PREFER TO
EXTENSION OF
THE NECESSITY
CONSULTING THE
10. IF WE REQUEST INCLUSION IN THE RATIFICATION WE
ENACT OUR OWN LEGISLATION LOCALLY RATHER THAN SEEK
THE 1987 ACT BY ORDER-IN-COUNCIL. THIS WOULD AVOID
OF LOCALISING THE LEGISLATION SUBSEQUENTLY AND OF
CHINESE SIDE A SECOND TIME ON THE SAME MATTER. WE WILL ADVISE LATER AS TO THE TIMING OF SUCH LEGISLATION, BUT WE WOULD ANTICIPATE
ENACTMENT BY THE END OF THIS YEAR.
11. IN THIS CONNECTION AND RELEVANT TO YOUR DEAD-LINE OF AUGUST 1
(PARAS 5 AND 6 OF YOUR LETTER UNDER REPLY) I WONDER WHETHER (IF
NECESSARY) A SEPARATE DECLARATION CAN BE MADE FOR HONG KONG UNDER ARTICLE 29 ON THE BASIS OF HONG KONG BEING A ''TERRITORIAL UNIT''
WITH A ''DIFFERENT SYSTEM OF LAW''. IF THIS IS POSSIBLE IT WOULD
GREATLY ASSIST US IN CONSIDERING GENERALLY THE IMPLICATIONS OF
RATIFICATION AND IN THE CONSULTATIONS WITH THE CHINESE SIDE.
WILSON
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