.8
LC
CON
DENTIAL
FM HONG KONG
TO PRIORITY F C 0
TELNO 2812
OF 10051OZ SEPTEMBER 91
35
CONFIDENTIAL
Please
enter
·FET 102/1
FOREIGN CORPORATIONS ACT 1991
1.
...
69 CCT
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101655 LIAN 8341
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The Welsh Mil.. Ise keep an
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YOU MAY BE AWARE THAT THE ABOVE LEGISLATION WAS ENACTED EARLIER THIS YEAR TO VALIDATE CONTRACTS ENTERED INTO WITH PERSONS FROM TERRITORIES NOT RECOGNISED BY HMG. WE UNDERSTAND IT WAS PRINCIPALLY AIMED AT TAIWAN AND TURKISH CYPRUS AND WAS A RESPONSE TO CONCERN EXPRESSED BY THE LEGAL PROFESSION OVER THE STATUS OF INSTITUTIONS FROM THESE TERRITORIES WHEN ENTERING INTO CONTRACTUAL RELATIONSHIPS WITH U.K. COUNTER PARTIES.
2.
SIMILAR CONCERN HAS BEEN EXPRESSED BY MAJOR INTERNATIONAL LAW FIRMS IN HONG KONG OVER THE STATUS OF THE GROWING NUMBER OF TAIWANESE ENTITIES HERE. WE BELIEVE IT IS NOT POSSIBLE WITHOUT AMENDING THE ACT TO EXTEND IT TO HONG KONG BUT WOULD BE GRATEFUL FOR YOUR VIEWS ON THE BEST WAY OF OUR RESOLVING THE PROBLEM. SEEN FROM HERE THERE WOULD BE ADVANTAGE IN CURRENTLY ADDRESSING THE ISSUE IN AS LOW KEY A WAY AS POSSIBLE, I.E. BY EXTENDING THE U.K. LEGISLATION TO HONG KONG AND OTHER DEPENDENT TERRITORIES.
3.
WE WOULD NEED TO CONSIDER AT THE TIME OF LOCALISATION WHETHER TO CONSULT THE CHINESE: OUR VIEW AT THIS STAGE IS THAT THIS MAY NOT BE NECESSARY AS THIS PARTICULAR CASE DOES NOT SEEM TO FALL WITHIN THE THREE PRINCIPLES FOR CONSULTATION. EVEN IF WE DO NEED TO CONSULT, WE SEE THIS AS LIKELY TO BE AN EASIER OPTION THAN HAVING TO ENTER IN CONSULTATIONS WITH THEM AT THIS STAGE ON COMPARABLE LOCAL LEGISLATION.
WILSON
YYYY