XN000022-1990-03-11 — Page 3

SUNDAY, MARCH 11, 1990

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HK IDEALLY PLACED FOR INTERNATIONAL ARBITRATIONS: AG

CHANGES MADE IN RECENT YEARS TO LOCAL COMMERCIAL ARBITRATION LAW HAVE CONTRIBUTED TO HONG KONG'S POSITION AS A LEADING ARBITRATION CENTRE IN THE REGION, THE ATTORNEY GENERAL, MR JEREMY MATHEWS, TOLD MEMBERS OF THE HONG KONG BRANCH OF THE CHARTERED INSTITUTE OF ARBITRATORS AT A DINNER MEETING THIS (SUNDAY) EVENING.

HE SAID THAT THE MOST RECENT CHANGE WAS THE INCORPORATION INTO DOMESTIC LAW OF THE UNITED NATIONS MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION.

THIS WAS EFFECTED BY THE ARBITRATION (AMENDMENT) (NO. 2) ORDINANCE 1989 PASSED BY THE LEGISLATIVE COUNCIL LATE LAST YEAR.

INTO

MR MATHEWS NOTED THAT THE ORDINANCE WOULD BE BROUGHT OPERATION SOON WHEN CERTAIN MINOR AMENDMENTS ΤΟ RELEVANT SUBSIDIARY LEGISLATION WERE MADE.

UNDER THE ORDINANCE, THE MODEL LAW WOULD APPLY TO INTERNATIONAL ARBITRATIONS, UNLESS THE PARTIES AGREED OTHERWISE.

THE ORDINANCE WAS A RESULT OF RECOMMENDATIONS MADE BY THE HONG KONG LAW REFORM COMMISSION IN 1987.

"THE COMMISSION SAW REAL BENEFITS FOR HONG KONG IN ADOPTING CLEARLY EXPRESSED AND WELL-KNOWN INTERNATIONAL CODE THE MODEL LAW FOR SETTLING INTERNATIONAL COMMERCIAL DISPUTES.

"ADOPTION OF THE MODEL LAW WILL PROVIDE A SOUND AND WELL-UNDERSTOOD FRAMEWORK WITHIN WHICH INTERNATIONAL ARBITRATIONS CAN BE CONDUCTED HERE.

"THIS WILL INEVITABLY ATTRACT MORE INTERNATIONAL TO THE TERRITORY, THE ATTORNEY GENERAL SAID.

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ARBITRATIONS

HE POINTED OUT THAT HONG KONG WAS IDEALLY PLACED TO TAKE ADVANTAGE OF SUCH A DEVELOPMENT BECAUSE OF ITS INTERNATIONAL COMMERCIAL CHARACTER, AND THE PRESENCE HERE OF THE HONG KONG INTERNATIONAL ARBITRATION CENTRE WHICH HAD BEEN OPERATING SINCE 1985.

HE SAID THE CENTRE PROVIDED FACILITIES FOR ARBITRATIONS AND MAINTAINED A PANEL OF HIGHLY QUALIFIED ARBITRATORS, BOTH FROM HONG KONG AND ABROAD.

THE CENTRE WAS ALSO FAMILIAR WITH THE MODEL LAW, THE RULES OF WHICH IT HAD ALREADY BEEN USING FOR INTERNATIONAL ARBITRATIONS FOR SOME TIME.

MR MATHEWS SAID ΤΟ ENSURE THE CONTINUED VIABILITY OF THE CENTRE. THE GOVERNMENT HAD ACTED ON A LAW REFORM COMMISSION RECOMMENDATION BY PROVIDING A GRANT OF $19.1 MILLION TO THE CENTRE.

/HE EMPHASISED