XN000022-1988-08-08 — Page 3

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MONDAY, AUGUST 8. 1988

HE SAID THE LAW SOCIETY HAD A SIGNIFICANT ROLE TO PLAY IN THE IMPLEMENTATION OF THE PROPOSALS AND IT WAS HOPED THAT DISCUSSION WOULD BEGIN SOON WITH THE LAW SOCIETY AND REPRESENTATIVES OF THE FOREIGN LAW FIRMS TO WORK OUT THE REGULATORY FRAMEWORK.

THE SPOKESMAN SAID THESE WERE POLICY PROPOSALS REQUIRING LEGISLATIVE CHANGES AND THEY WOULD BE SUBJECT то THE NORHAL LEGISLATIVE PROCESS.

THE PROPOSED CHANGES FOLLOW A REVIEW OF THE CURRENT POLICY.

THE REVIEW WAS CARRIED OUT IN THE LIGHT OF THE REPORT OF A COMMITTEE UNDER THE CHAIRMANSHIP OF THE FORMER CHIEF JUSTICE, WHICH DEALT WITH A NUMBER OF Aspects of THE LEGAL PRACTITIONERS ORDINANCE INCLUDING THE ISSUE OF FOREIGN LAWYERS IN HONG KONG,

THE COMPLETION OF THE REPORT COINCIDED WITH A PETITION IN JANUARY TO THE GOVERNOR FROM A NUMBER OF AMERICAN LAWYERS.

IN CONSIDERING THE ISSUES RAISED IN THE REPORT AND PETITION, THE GOVERNMENT TOOK INTO ACCOUNT THE SUBMISSION MADE BY LAW SOCIETY IN RESPONSE TO THE PETITION.

THE

THE

THE GOVERNMENT'S POLICY PROPOSALS IN RELATION то FOREIGN LAN FIRMS HAVE BEEN OUTLINED IN LETTERS FROM THE ATTORNEY GENERAL TO THE LAW SOCIETY OF HONG KONG AND TO A REPRESENTATIVE OF THE PETITIONERS.

WITH

THE SPOKESMAN EXPLAINED: "IN CONSIDERING THE ISSUES AND IN FORMULATING THE POLICY PROPOSALS THERE WERE TWO PARAMOUNT CONSIDERATIONS: FIRSTLY, HONG KONG'S BEST INTERESTS, TAKING INTO ACCOUNT THE NEED FOR HIGH QUALITY LEGAL SERVICES COMMENSURATE HONG KONG'S POSITION AS A MAJOR INTERNATIONAL CENTRE OF COMMERCE AND FINANCE: AND SECONDLY, THE BASIC PHILOSOPHY OF GOVERNMENT OF PROMOTING FREE COMPETITION IN SERVICES IN THE SAME WAY AS ANY OTHER AREAS OF TRADE.

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ON THE QUESTION OF WHETHER FOREIGN LAW FIRMS SHOULD BE PERMITTED TO EMPLOY OR ADMIT AS PARTNERS HONG KONG SOLICITORS TO PRACTISE HONG KONG LAW, THE PETITIONERS HAD CALLED FOR A CHANGE IN THE CURRENT POLICY WHICH PROHIBITS FOREIGN LAW FIRMS FROM EMPLOYING HONG KONG LAWYERS.

CONSIDERATIONS

"WE HAVE CONCLUDED THAT THE TWO PARAMOUNT

PARAN REFERRED TO EARLIER WEIGHED DECISIVELY IN FAVOUR OF ACCEPTING THEIR SUBMISSION, THE SPOKESMAN SAID.

ARGUMENT THAT

THE GOVERNMENT ALSO CONSIDERED THE PETITIONER'S FOREIGN LAWYERS SHOULD BE PERMITTED, ON A RECIPROCAL BASIS, TO PRACTISE IN HONG KONG ON MOTION WITHOUT EXAMINATION.

/IT CAME