TNAG-1363-FCO40-1809-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 291

-

- 3-

CLEARLY RIGHT THAT THE LAW SHOULD UPHOLD ARBITRATION CLAUSES

RATHER THAN SEE THEM CIRCUMVENTED.

THE MAIN PURPOSE OF THIS BILL THEREFORE IS TO CHANGE

THIS RULE AS TO THE EFFECT OF LIMITED APPEARANCES BY A "VICTIM

PARTY" IN FOREIGN COURTS AND TO POSITIVELY RESTATE AND REINFORCE

THE NEED TO GIVE EFFECT TO ARBITRATION CLAUSES FREELY ENTERED

INTO. THE BILL ACCOMPLISHES THIS BY CLAUSES 3 AND 4.

THE SECOND OBJECTIVE OF THE BILL IS TO PREVENT

JUDGMENT CREDITORS FOLLOWING THE COURSE I MENTIONED EARLIER,

NAMELY, COMMENCING FRESH PROCEEDINGS IN HONG KONG INSTEAD OF

ENFORCING THE FOREIGN JUDGMENT ITSELF. A FOREIGN JUDGMENT

WHICH IS ENFORCEABLE AND ENTITLED TO RECOGNITION IN HONG KONG

WILL THEREFORE OPERATE AS A BAR TO ANY ATTEMPT TO OBTAIN A

SEPARATE HONG KONG JUDGMENT,

THE REMAINDER OF THE BILL IS CONCERNED WITH

TRANSITIONAL AND CONSEQUENTIAL PROVISIONS.

/ MEMBERS