XN000022-1989-11-08 — Page 57

WEDNESDAY, NOVEMBER 8 1989

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BOOST FOR HK AS ARBITRATION CENTRE

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THE ADOPTION OF THE UNITED NATIONS MODEL LAW OF ARBITRATION WILL HELP BOOST HONG KONG'S ATTRACTIONS AS A VENUE FOR INTERNATIONAL ARBITRATIONS, THE LEGISLATIVE COUNCIL WAS TOLD TODAY (WEDNESDAY).

MOVING THE SECOND READING OF THE ARBITRATION (AMENDMENT) (NO.21 BILL 1989, THE ACTING ATTORNEY GENERAL, THE HON FRANK STOCK, SAID THE OBJECT OF THE BILL WAS TO IMPLEMENT RECOMMENDATIONS OF THE LAW REFORM COMMISSION IN ITS 1987 REPORT ON THE ADOPTION OF THE UNCITRAL MODEL LAW OF ARBITRATION.

'SINCE THE ESTABLISHMENT IN SEPTEMBER 1985 OF THE HONG KONG INTERNATIONAL ARBITRATION CENTRE, HONG KONG HAS BEEN DEVELOPING THE POTENTIAL FOR BEING THE LEADING CENTRE FOR INTERNATIONAL COMMERCIAL ARBITRATION IN THE FAR EAST.

"CLEARLY IT IS IMPORTANT THAT THE LAWS OF HONG KONG BE AS WELL DESIGNED AS POSSIBLE TO ASSIST THESE DEVELOPMENTS.

TO

"THE EFFECT OF ADOPTION OF THE MODEL LAW FOR HONG KONG WILL BE MAKE KNOWLEDGE OF HONG KONG INTERNATIONAL ARBITRATION RULES ACCESSIBLE AT ONCE TO THE INTERNATIONAL COMMUNITY, THEREBY MAKING HONG KONG EMINENTLY ATTRACTIVE TO PARTIES AS AN ARBITRATION VENUE, HE SAID.

C

MR STOCK SAID THAT ALTHOUGH HONG KONG'S PRESENT ARBITRATION LAW DID MAKE SPECIAL PROVISION FOR NON-DOMESTIC ARBITRATIONS THEY WERE, WITH SOME EXCEPTIONS, DEALT WITH ALONG SIMILAR LINES ΤΟ DOMESTIC ARBITRATIONS.

THE BILL, HOWEVER, PROVIDED FOR TWO DISTINCT REGIMES.

DOMESTIC ARBITRATIONS WOULD CONTINUE TO BE GOVERNED BY THE EXISTING LAW SUBJECT TO A FEW CHANGES WHILE INTERNATIONAL ARBITRATIONS WOULD BE GOVERNED BY THE MODEL

LAW, THE PROVISIONS OF WHICH (SAVE FOR ONE CHAPTER) WOULD, BY THIS BILL, BE INCORPORATED INTO THE ARBITRATION ORDINANCE.

HOWEVER, PROVISION WAS MADE FOR PARTIES TO ARBITRATIONS TO ENTER AN AGREEMENT, AFTER A DISPUTE THEIR DISPUTE TO BE DEALT WITH UNDER THE MODEL LAW.

DOMESTIC

HAD ARISEN. FOR

PROVISION WAS ALSO MADE FOR PARTIES TO AN INTERNATIONAL AGREEMENT TO PROVIDE THAT ANY DISPUTES WOULD BE DEALT WITH UNDER THE LAW RELATING TO DOMESTIC ARBITRATIONS, MR STOCK SAID.

UNDER THE MODEL LAW, AN ARBITRATION

WAS INTERNATIONAL IN A

NUMBER OF CIRCUMSTANCES.

"IT IS INTERNATIONAL IF THE PARTIES TO THE ARBITRATION AGREEMENT HAVE THEIR PLACES OF BUSINESS IN DIFFERENT STATES, OR HAVE AGREED THAT THE SUBJECT MATTER OF THE AGREEMENT RELATES TO MORE ONE STATE.

THAN

/"EVEN IF