TNAG-0770-FCO40-974-Construction-of-underground-railway-system-in-Hong-Kong-1978 — Page 208

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CONFIDENTIAL

INDEX

PA

TO ROUTINE F.C.O TELNO.499 OF 18 APRIL 18. No

MASS TRANSIT RAILWAY CORPORATION.

See

1. THE MASS TRANSIT RAILWAY CORPORATION IS BORROWING LARGE SUNS.

OF MONEY FROM VARIOUS LENDERS IN DIFFERENT COUNTRIES FOR THE

PURPOSE OF BUILDING THE MASS TRANSIT RAILWAY IN HONG KONG.

2. THE REPAYMENT OF SOME OF THESE BORROWINGS ARE GUARANTEED BY

THE HONG KONG GOVERNMENT.

3. SOME OF THE LENDERS REQUIRE BOTH THE CORPORATION AND THE GOVERNMENT TO SUBMIT TO OTHER JURISDICTIONS AND COURTS, IN ADDITION TO THE ENGLISH AND HONG KONG COURTS, AND TO WAIVE ANY SOVEREIGN IMMUNITIES WHICH MAY BE POSSESSED.

4. THE HONG KONG GOVERNMENT IS NOT OPPOSED IN PRINCIPLE TO SUBMISSION TO OTHER JURISDICTIONS IN CERTAIN INSTANCES, BUT THE QUESTION ARISES WHETHER UNDER HONG KONG AND ENGLISH LAW, THE HONG KONG GOVERNMENT IS CONSTITUTIONALLY ABLE TO SUBMIT

THE CROWN TO THE JURISDICTION OF ANOTHER COUNTRY AND TO

WAIVE SUCH IMMUNITY TO WHICH IT MIGHT BE ENTITLED, WITHOUT THE CONSENT OF THE U.K GOVERNMENT. IN FACT, SUCH IMMUNITY SO FAR AS HONG KONG AND ENGLISH JURISDICTIONS ARE CONCERNED,

HAS BEEN PURPORTEDLY WAIVED IN GOVERNMENT GUARANTEES IN

RELATION TO MASS TRANSIT RAILWAY CORPORATION LOAN FACILITIES.

5. IT IS RECOGNISED AND UNDERSTOOD THAT THE ADVICE AND GUIDANCE

HERE BEING SOUGHT IS BASED UPON THE ASSUMPTION THAT THE SUBMISSION

AND WAIVER WOULD BE ACCEPTED BY THE COURTS OF THE OTHER COUNTRIES

INVOLVED. THIS WOULD INVOLVE SEEKING ADVICE FROM EXPERTS IN THE

LAW OF THOSE COUNTRIES.

CONFIDENTIAL

16. THE ASSETS OF