TNAG-0929-FCO40-1147-Protection-of-Trading-Interests-Bill-extension-to-Dependent--1980 — Page 107

CONFIDENTIAL

used the 1964 Act to issue a number of directions to protect companies incorporated in its territory from investigations by US Courts. It occurs to me though that there may well be other dependent territories who would also like to utilize the protection under the new Bill. I think Bermuda will be an almost certain candidate. We included the formulation "or in a territory outside the UK for whose international relations HMG is responsible" in Clause 6(1)(b) of the Bill specifically to allow companies incorporated in Bermuda to take advantage of the recovery proposals in Clause 6. The background to this is that to the shipping consortia (both of which include a strong UK element) which are currently facing potentially crippling treble damage suits in the US are Bermudan incorporated companies - Atlantic Container Line Limited and Dart Container Line Limited. The new Bill will apply to all companies, not only shipping companies, and it may well therefore be that some of the other dependent territories who, for whatever reason, attract UK companies for incorporation purposes, may also find protection of the Bill a benefit. I am afraid I do not know very much about companies' choice of territories for incorporation and advice needs to be sought on this point but Gibraltar and the Cayman Islands occur to me as possible candidates.

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In conclusion, although we do not have final form of the Bill, we thought we ought to alert you to minent passage of this legislation so that you, in turn, could contact the appropriate dependent territories with a view to ensuring that if they want the protection of the new legislation, they get it as soon as possible. If you need any further information on the Bill please do not hesitate to contact me.

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Cenna Butterworth

Anna Butterworth

CONFIDENTIAL

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