RESTRICTED
XCR(92)11
and discipline. Foreign lawyers and foreign law firms are also dissatisfied because there are no statutory criteria which set out the conditions for establishing and for the regulation of their practices in Hong Kong.
9
In January 1988, a number of prominent American law firms petitioned the Government for a substantial change in the existing regulations so as to permit them to take into partnership or employment Hong Kong solicitors. This would have enabled the firms to practice Hong Kong law. This petition, which had been preceded by steady pressure, mainly from U.S. firms, focussed our attention on the desirability of enhancing Hong Kong's position as a regional centre for legal services. We considered that the ability to take in Hong Kong solicitors would enable firms to offer "one stop" legal advice to their clients - the bulk of whom are international businessmen and companies. At the same time, we considered it desirable to put in place a statutory framework that would regulate the admission of foreign law firms.
10
On 26 July 1988, after considering memorandum XCC(88)107, the Council ADVISED and the Governor ORDERED -
(a) that a statutory scheme under the control of the Chief Justice be devised to regulate foreign lawyers practising in Hong Kong;
(b)
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(c)
(d)
that foreign lawyers who are permitted to practise in Hong Kong should not be prevented from advising on the law of any other jurisdiction;
that, subject to reciprocity and to their being subject to the disciplinary control of the Law Society, foreign law firms be permitted to employ, or admit as partners, Hong Kong solicitors; and
that the admission of foreign lawyers to practise as a solicitor or barrister in Hong Kong should not be based on motion without examination.
11
J
The Law Society accepted (a) and (b) but made strong objections to (c) the employment/partnership proposal. The Administration then prepared a consultative document to explain the proposals and designed to meet the Law Society's concerns. The Council considered the consultative
Executive Council