XN000022-1995-05-03 — Page 2

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Government statement on CFA

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The following is a Government statement issued after the LegCo debate on the Court of Final Appeal today (Wednesday):

"The Government's position has been clearly stated by the Chief Secretary and the Attorney General in their speeches. We have not the slightest doubt that establishing the Court of Final Appeal (CFA) before 1997 is in the best interests of the people of Hong Kong, and that the only realistic way to do this is on the basis of the 1991 agreement.

"We are naturally disappointed that Mr McGregor's motion was not endorsed by LegCo.

"However, we are encouraged by the strong support that LegCo members gave to the idea of setting up the CFA as soon as possible, in alignment with the Joint Declaration and Basic Law. This is, of course, exactly what we are proposing to do.

"As the acting Chief Justice has reiterated today, it is important that the CFA should be set up in Hong Kong as soon as possible.

"If the CFA is not set up before 1997, there will be a judicial vacuum for several months before that date (when cases will not have time to be heard by the Privy Council) and for at least a year afterwards (until the Special Administrative Region sets up the CFA).

"The litigants involved (no matter how few they may be) have a right to be heard. It would also be detrimental to the Hong Kong legal system if it is deprived of decisions of the highest judicial authority, vital to the evolution of jurisprudence for Hong Kong.

"Furthermore, public and international confidence in Hong Kong's legal system would also be seriously undermined. Uncertainty is already having a damaging effect. There is clear evidence that contracts are being drawn up which avoid resort to Hong Kong courts in the event of dispute by providing for arbitration overseas - see, for example, the comments by Japanese Consul- General."

End/Wednesday, May 3, 1995