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We have confirmed with the Ministry of Foreign Affairs that this means that a contractual clause providing for arbitration in Hong Kong is not invalid as a violation of sovereignty forbidden by the Chinese Constitution.
I understand also that despite its earlier refusal to accept the arbitration award granted to you in Hong Kong Nozesco has since agreed to settle with you out of court, and that the case before the Guangdong Maritime Court was withdrawn on 31 January. I am pleased to hear that you and Nozesco have, despite earlier difficulties, been able to reach an amicable settlement.
The clarification offered by the Chinese Ministry of Foreign Affairs appears to be a satisfactory outcome to the point you raised with the Governor in Brussels last October. The Governor attaches great importance to the promotion of Hong Kong as an international arbitration centre, where inter alia contracts with PRC companies can be enforced both before and after 1997. The Governor is grateful to you for having raised your problem with him.
Yours Sincere. Click hul
(C.E. Leeks
Private
Secretary
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