CONFIDENTIAL

XCX(92)58

rights and obligations that guarantee compliance and continuity. In addition, if the bilateral agreements were based on a model agreement, consistency would be assured.

Scope of Agreements

10

Civil judgments can cover a wide range of subjects. In order not to complicate discussion or over-extend resources, we propose at this stage to limit the subject-matter of the proposed bilateral agreements to money judgments and arbitral awards. However, if in the course of negotiations there is a demand to widen the scope to include other subjects (such as matrimonial matters, bankruptcy, or winding-up of companies) these would need to be covered by a further agreement. In that event further proposals would be submitted for Members' consideration.

Draft Model Agreement

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The Draft Model Agreement (at Annex A) is based on accepted international principles and draws heavily on provisions currently applied to Hong Kong. Its objectives are -

(a)

(b)

(c)

to provide for direct enforcement (judgments from counterpart courts being accepted largely without question);

to ensure that applications will be entertained in a predictable, simple and speedy fashion; and

.to enable a person to challenge a judgment which has been obtained against him in an unsatisfactory

manner.

We expect that, if the terms of the Model Agreement are acceptable to Hong Kong's negotiating partners, only minor amendments to local legislation will be necessary to give effect to bilateral agreements.

Consultation with the Chinese

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B

Both the Joint Declaration (JD71) and the Basic Law (Article 96) (at Annex B) recognize that the Government of the Hong Kong Special Administrative Region, with the assistance and authorization of the Central

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Executive Council

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