XN000022-1996-10-09 — Page 24

7.

The committee nevertheless considered that unification of the two arbitration systems would be a complex issue and would require careful consideration. It recommended that, as an interim measure, limited improvements be made to the Ordinance to minimise the differences between the two systems, remove anomalies, and enhance the efficiency of arbitral tribunals. The Administration accepts the need for those improvements. Hong Kong has established itself as a leading centre for arbitration in the region and it is essential that we maintain that position against growing competition from other regional arbitration centres by keeping our law up-to- date and efficient.

Bill.

Let me give a few examples of the proposed improvements contained in the

At present, where the parties to an arbitration agreement cannot agree on an arbitrator, they may have to apply to a High Court judge to appoint an arbitrator. However, an application to the High Court may be expensive and time consuming. The Bill therefore proposes that the power to appoint arbitrators should be conferred on the Hong Kong International Arbitration Centre. This would make arbitration in Hong Kong more cost effective.

Under the existing law, the power of the court or arbitral tribunal to order interim measures, such as an injunction, is unclear. The Bill proposes to clarify this power.

Current provisions which empower the High Court to extend the time limits for a party to commence domestic arbitration proceedings or to dismiss a claim for unreasonable delay are not applicable to international arbitrations. There is no logical reason for the divergence as between the two systems and amendments are proposed to extend those provisions to international arbitrations.

The definition of "arbitration agreement" in the Ordinance, and hence the scope of the Ordinance, need to reflect the practices of a fast-changing commercial world. The Bill provides that an arbitration agreement is to include an agreement to arbitrate that is in writing but is not signed by the parties. This will ensure, for example, that an arbitration agreement in a Bill of Lading can be subject to the Ordinance.

The Bill also empowers the Hong Kong International Arbitration Centre to decide certain issues that previously had to be referred to the courts. These issues include costs, fees, expenses and interest on awards.

In order to ensure fairness and scrutiny by an independent third party, the Bill provides that rules to be promulgated by the Hong Kong International Arbitration Centre require the approval of the Chief Justice.

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