XN000022-1982-02-05 — Page 2

FRIDAY, FEBRUARY 5, 1982

ARBITRATION (AMENDMENT) BILL

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A BILL WHICH SEEKS TO AMEND THE ARBITRATION ORDINANCE TO GIVE EFFECT TO RECOMMENDATIONS OF THE LAW REFORM COMMISSION IN RELATION TO COMMERCIAL ARBITRATION IS PUBLISHED IN THE GOVERNMENT GAZETTE TODAY (FRIDAY),

THE RECOMMENDATIONS ARE DESIGNED BOTH TO CREATE A SUITABLE LEGAL FRAMEWORK FOR THE CONDUCT OF LOCAL ARBITRATIONS, AND ALSO TO MAKE HONG KONG LEGALLY ATTRACTIVE AS A VENUE FOR THE CONDUCT OF INTERNATIONAL ARBITRATIONS AFFECTING INTERESTS IN THE WHOLE

EAST-ASIAN REGION.

THE MAIN EFFECTS OF THE BILL ARE AS FOLLOWS:

* TO RENDER DOMESTIC ARBITRATION AWARDS MORE FINAL,

AND LIMIT GROUNDS FOR APPEALS.

* TO SPEED UP THE PROCESS OF ARBITRATION, AND

REDUCE OPPORTUNITIES FOR DELAY. ONE EXAMPLE IS A NEW POWER TO ORDER CONSOLIDATION OF A SERIES OF ARBITRATION PROCEEDINGS ARISING OUT OF THE SAME SUBJECT MATTER.

* TO PERMIT PARTIES TO INTERNATIONAL CONTRACTS

TO ARBITRATE IN HONG KONG WITHOUT THE AWARD BEING SUBJECT TO REVIEW IN THE COURTS, HERE.

* TO RECOGNISE AND ASSIST THE PROCESS OF

CONCILIATION, WHICH IS A SPECIAL FEATURE OF BUSINESS IN THE EAST AND TO PROVIDE FOR RECOGNITION AND ENFORCEMENT OVERSEAS OF THESE CONCILIATION AWARDS.

* TO PERMIT COSTS OF FOREIGN LAWYERS TO BE

RECOVERED.

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TO PROVIDE FOR A PROCEDURE FOR PAYMENT INTO COURT IN ARBITRATION PROCEEDINGS.

TO PERMIT THE PRIVACY OF PARTIES TO ARBITRATION PROCEEDINGS TO BE PROTECTED BY THE HEARING OF APPEALS IN CAMERA,

* TO ALLOW JUDGES OF THE HIGH COURT AND DISTRICT

COURT AND LAWYERS IN ATTORNEY GENERAL'S CHAMBERS OR ARCHITECTS AND SURVEYORS IN GOVERNMENT DEPARTMENTS TO SIT AS ARBITRATORS IF REQUESTED (WITH THE APPROVAL IN EITHER CASE OF THE CHIEF JUSTICE OR ATTORNEY GENERAL, AS THE CASE MAY BE).

A GOVERNMENT SPOKESMAN SAID IF HONG KONG SUCCEEDS IN ESTABLISHING ITSELF AS AN INTERNATIONAL ARBITRATION CENTRE, THERE SHOULD BE DIRECT BENEFITS TO THE ECONOMY. INDIRECT BENEFITS TO THE ECONOMY WILL ACCRUE FROM THE STRENGTHENING OF OUR TERTIARY SECTOR WITH THE EXPANSION OF SERVICE OF FACILITIES CENTRED ON OUR FINANCIAL AND BANKING INDUSTRY, HE ADDED.