CONFIDENTIAL
Kingdom
ratified
the Fund Convention
Protocol on 2 April 1976 and 31 January 1980
9.
The
United
and the 1976
respectively.
Both
ratifications included Hong
Kong
(reference at Annex C). They were given legal effect in
Hong Kong
through
United
Kingdom
enactments.
After
consultation with the Chinese side in accordance with the
Agreed Consultation Principles on
Localisation
of Law,
these
enactments
have
been
replaced by
the
Merchant
Shipping
(Liability
and
Compensation
for
Oil Pollution)
Ordinance 1990 which came into effect on 15 January 1991.
Benefits
10.
the
Liability
The Fund Convention supplements
Convention which provides clearly for the allocation and
the extent of liabilities in the event of oil spills, thus providing certainty to shipowners and insurers about their maximum potential civil liabilities if they engage in the
oil carrying trade, and reducing the risk of their being
exposed to potentially
civil claims for oil
unlimited
damage compensation
under
pollution damage
certainty
net
common law.
Such
is of great significance to Hong Kong, which is a
importer of over 8 million tons of oil per year and
operates a large shipping register.
CONFIDENTIAL