THE LEGAL SYSTEM
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with the freedom of expression guaranteed under the Basic Law. Other constitutional challenges included the right of abode in Hong Kong of Mainland-born children of Hong Kong permanent residents, conditions of employment of civil servants, election of village representatives in the New Territories, transfer of sentenced persons, registration of social workers, assessment of government rent and abolition of the Provisional Urban Council and the Provisional Regional Council.
In particular, in January 1999, the Court of Final Appeal delivered its judgments in two sets of landmark cases involving the right of abode issues. The Court of Final Appeal upheld the validity of the Provisional Legislative Council. However, there was public concern that the parts of the judgments in relation to the entitlement to right of abode would result in large numbers of people coming to Hong Kong and exerting a great strain on its resources. After survey, the Government estimated that 1.6 million people in the Mainland would be able to claim right of abode in Hong Kong as a result of the judgments. The Chief Executive eventually decided, after careful analysis, to request the State Council to seek an interpretation of Articles 22(4)_and_24(2)(3) of the Basic Law by the Standing Committee of the National People's Congress. Subsequently the Standing Committee gave an interpretation on June 26, 1999.
The interpretation by the Standing Committee has clarified the true legislative intent of the relevant provisions in the Basic Law, and was instrumental in resolving the potential population crisis. There was concern about possible adverse impact which the interpretation might have upon the rule of law. Nonetheless, the Standing Committee's power of interpretation, by virtue of Article 67(4) of the PRC Constitution and Article 158(1) of the Basic Law, is part of the new constitutional order of Hong Kong enshrined in the Basic Law, and is part and parcel of the rule of law in Hong Kong. The Court of Final Appeal has in another judgment in December 1999 confirmed that the interpretation by the NPCSC is valid and binding and the courts of Hong Kong are under a duty to follow it.
Legal challenges are a normal and expected phenomenon in the early years of the implementation of the Basic Law and demonstrate amply that the rule of law remains intact in Hong Kong. As more challenges based on the Basic Law are determined, uncertainties will be removed and principles of interpretation will emerge. This will bring added strength and vigour to the Basic Law, and reinforce its effectiveness in determining the rights, obligations, powers and privileges guaranteed to the people of Hong Kong.
Arbitration and Alternative Dispute Resolution
Arbitration has been a popular method of dispute resolution in the HKSAR for some time. It is governed by the Arbitration Ordinance, which has two distinct regimes a domestic regime derived from English law and an international regime which includes the UNCITRAL Model Law, the model law adopted by the United Nations Commission on International Trade Law.
Awards made in the HKSAR can be enforced in more than 135 jurisdictions that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The HKSAR's membership has, since July 1, 1997, been by virtue of the fact that the People's Republic of China is a signatory to the New York Convention and has applied it to Hong Kong. Following a consensus reached in June 1999 between Mainland authorities and the HKSAR Government, a system for