XN000022-1989-11-22 — Page 4

WEDNESDAY. NOVEMBER 22. 1989

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DECISION WILL MAKE HK ATTRACTIVE AS ARBITRATION CENTRE

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THE ACTING ATTORNEY GENERAL. THE HON FRANK (WEDNESDAY) IT IS GRATIFYING THAT MEMBERS OF THE

STOCK. SAID TODAY LEGISLATIVE COUNCIL HAVE GIVEN THE ARBITRATION (AMENDMENT) (NO. 21 BILL 1989 "A SWIFT SEAL OF APPROVAL".

SPEAKING IN THE COUNCIL'S RESUMED DEBATE ON THE BILL. MR STOCK SAID THE ADOPTION OF THE MODEL LAW WOULD MAKE HONG KONG EMINENTLY ATTRACTIVE AS AN ARBITRATION VENUE.

REFERRING TO THE HON MARIA TAM'S COMMENTS ABOUT THE FUNDING OF THE HONG KONG ARBITRATION CENTRE. MR STOCK SAID THE LAW REFORM COMMISSION HAD INDEED RECOMMENDED THAT PROVISION BE MADE FOR THE PERMANENT FUNDING OF THE ARBITRATION CENTRE. ALTHOUGH THE COMMISSION ACKNOWLEDGED THAT THIS WAS NOT STRICTLY WITHIN ITS TERMS OF REFERENCE.

1984.

HE SAID THAT THE PROVISION OF $1.2 MILLION IN MISS TAM HAD REFERRED. WAS INTENDED TO BE A ONE-OFF GRANT.

TO WHICH

"HOWEVER. IN JUNE THIS YEAR A SUBMISSION WAS PUT TO MEMBERS OF THE FINANCE COMMITTEE BY WHICH FURTHER FUNDING WAS SOUGHT.

"THE PAPER THEN BEFORE MEMBERS POINTED OUT THAT INCOME OF THE CENTRE HAD BEEN LESS THAN ENVISAGED. BUT PREDICTED THAT THE CENTRE SHOULD SUCCEED IN ESTABLISHING ITSELF FIRMLY IF THE FUNDING THEN PROPOSED WAS FORTHCOMING.

"A NUMBER OF FACTORS WERE PUT FORWARD TO JUSTIFY NEW OPTIMISM. AND ONE OF THESE RELATED TO THE GOOD PROSPECTS THAT WOULD FLOW FROM ADOPTION OF THE MODEL LAW. HE SAID.

MR STOCK SAID THE FURTHER FUNDING WAS REQUESTED FROM THE FINANCE COMMITTRE TO ENABLE THE CENTRE ΤΟ OPERATE WITH FINANCIAL CONFIDENCE.

"THE PROPOSAL WAS PUT FORWARD ON THE BASIS THAT TO CONTINUR ΤΟ MAXIMISE THE NECESSARY INDEPENDENCE FROM THE GOVERNMENT. A LUMP SUM GRANT RATHER THAN A RECURRENT GRANT SHOULD BE PROVIDED UNDER CAPITAL ACCOUNT SUBVENTIONS SUB-HEAD.

"MEMBERS OF FINANCE COMMITTEE APPROVED THE PROVISION OF A FURTHER GRANT OF $19.1 MILLION BUT ASKED THAT SOME FORM OF ADMINISTRATION CONTROL OVER THE CAPITAL SUM BE ENSURED. AND THE ADMINISTRATION AGREED TO CONSIDER HOW THIS WOULD BE EFFECTED.

"I GATHER THAT THIS HAS GIVEN RISE TO SOME CONCERN ON THE PART OF THOSE CONNECTED WITH THE CENTRE BECAUSE OF THEIR DESIRE ΤΟ MAINTAIN MAXIMUM INDEPENDENCE. AND THAT THIS IS TO BE THE SUBJECT OF FURTHER DISCUSSION. HE SAID.

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MR STOCK ADDED THAT THE INTEREST ON THE SUM. AS MISS TAM HAD POINTED OUT. WAS ESTIMATED TO BE SUFFICIENT TO PERMIT THE CENTRE то OPERATE UNTIL THE TURN OF THE CENTURY. BY WHICH TIME THE CENTRE COULD REASONABLY BE EXPECTED TO GENERATE SUFFICIENT REVENUE OF ITS OWN TO COVER 75 PER CENT OF ITS EXPENDITURE.

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