RESTRICTED

FM FCO

TO PRIORITY HONG KONG

TELNO 1436

OF 06130OZ AUGUST 91

RESTRICTED

HKC370/2

AUD 1991

12)

160126

MDLOAN 9742

TOP COPY Q DIST?

Rac$718

JLG

INFO ROUTINE PEKING, UKREP JLG HONG KONG

YOUR TELNO 2371: LOCALISATION OF LAWS: ARBITRATION

1. YOU ARE RIGHT TO POINT OUT THIS ANOMALY IN THE UK LEGISLATION RELATING TO THE IMMUNITIES ENJOYED BY ICSID AND OTHER

ORGANISATIONS.

2. WE ARE UNABLE TO OFFER A DEFINITE EXPLANATION OF THIS: IT IS

POSSIBLE THAT THERE WAS AN OVERSIGHT, OR ALTERNATIVELY THAT IT WAS CONSIDERED UNNECESSARY TO AMEND THE ARBITRATION

(INTERNATIONAL INVESTMENT DISPUTES) ACT 1966 DESPITE THE FACT THAT WE ACKNOWLEDGED THAT OUR INTERNATIONAL OBLIGATIONS REQUIRED

US TO PROVIDE RELIEF FOR THE INTERNATIONAL ORGANISATIONS COVERED

IN THE 1976 ORDER. ICSID HAVE NO OFFICE OR STAFF IN THE UK AND NONE OF THEIR FUNCTIONS ARE CARRIED ON HERE. THERE WOULD THEREFORE HAVE BEEN NO PRACTICAL NEED FOR SUCH A NEW PROVISION.

3. IN THIS SITUATION WE SEE NO MERIT IN YOUR FOLLOWING THE UK PRECEDENT. IT WOULD APPEAR THAT THE STRICT IMPLEMENTATION OF THE UK'S OBLIGATIONS UNDER THE 1965 WASHINGTON CONVENTION WOULD REQUIRE YOU TO INCLUDE PROVISION IN YOUR LEGISLATION FOR RELIEF TO ICSID FROM FIRST REGISTRATION TAX ON MOTOR VEHICLES.

CHALKER

YYYY

ΜΑΙΝ

60

.HONG KONG AGREEMENT

(RESTRICTED)

LIMITED

HKD

DISTRIBUTION

64

PUSD

RAD

PS/LORD CAITHNESS

PS/MR LENNOX-BOYD

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