CONFIDENTIAL
056441
MDLIAN 978
REPLACE THE PROVISIONS OF THE ARBITRATION (INTERNATIONAL INVESTMENT DISPUTES) ACT 1966 WHICH APPLY TO HONG KONG BY AMENDMENTS MADE TO THE ARBITRATION ORDINANCE 9CAP. 341). THE LEGISLATION WILL PROVIDE FOR THE REGISTRATION OF AWARDS RENDERED PURSUANT TO THE WASHINGTON CONVENTION, WHICH WILL THEREBY BECOME ENFORCEABLE IN HONG KONG AS JUDGEMENTS OF THE HONG KONG SUPREME COURT. THE LEGISLATION WILL ALSO CONFER LEGAL STATUS AND APPROPRIATE IMMUNITIES AND PRIVILEGES IN HONG KONG ON
THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES ESTABLISHED BY THE CONVENTION.
RELEVANT PRINCIPLES FOR CONSULTATION
4. SINCE THE LOCAL LEGISLATION WILL BE DESIGNED TO IMPLEMENT AN INTERNATIONAL OBLIGATION WHICH APPLIES TO HONG KONG AND WHICH IS EXPECTED TO CONTINUE TO APPLY TO THE HONG KONG SAR AFTER 1997, IT IS APPROPRIATE TO CONSULT THE CHINESE SIDE. HOWEVER, THE PROPOSED LEGISLATION WILL NOT CONFER ON AN AUTHORITY IN HONG KONG POWERS FORMERLY HELD BY AN AUTHORITY IN THE UNITED KINGDOM, SINCE THE RELEVANT POWERS ARE ALREADY CONFERRED ON THE GOVERNOR OR ON JUDICIAL AUTHORITIES IN HONG KONG BY VIRTUE OF THE 1967 ORDER. NOR WILL THE PROPOSED LEGISLATION HAVE ANY EXTRATERRITORIAL EFFECT EXCEPT THAT RULES OF COURT MAY BE MADE UNDER IT REQUIRING THE TAKING OF EVIDENCE OVERSEAS IN CERTAIN CIRCUMSTANCES. AWARDS UNDER THE LEGISLATION WILL BE ENFORCEABLE AGAINST PARTIES OVERSEAS BUT ONLY IN THE SAME WAY AS JUDGEMENTS OF THE SUPREME COURT ARE NOW ENFORCEABLE AGAINST PARTIES OVERSEAS I.E. IN CONFORMITY WITH ESTABLISHED PRINCIPLES OF PRIVATE INTERNATIONAL LAW.
ENDS
WILSON
YYYY
ΜΑΙΝ
LIMITED
HKD
32
DISTRIBUTION
32
RAD
MR MCLAREN MR BURNS
PROTOCOL D
LEGAL ADVISERS
NNW N
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CONFIDENTIAL