TNAG-1580-FCO40-2154-Extension-to-Hong-Kong-of-European-Community--European-Free-1987 — Page 71

CODE 18-77

JHLALY]

Mr Layden

M Lick

Thanks

4/1

HKK 371/3

Reference.......

RECEIV

HKK 391/3 571/3

BISTRY

- 8 JUL 1986

REGISTR

Acuon Taken

CPM 18.8.8

EXTENTION TO HONG KONG OF EC/EFTA ENFORCEMENT OF JUDGEMENT CONVENTION

1

I attended Mr Eaton's meeting with representatives of WIAD, ECD (E) Department (LCD).

on this subject today and Lord Chancellor's

2.

The conclusions we ca me

to were much as you

anticipated:

(a)

3.

(b)

(c)

the larger commercial entities (HK, Bermuda, Caymans) would probably see more advantage in extension than disadvantage;

we should go for an option on

option on extension with our EC partners, and if possible (not essential) avoid leaving others a veto on such extension;

meanwhile we should consult DTs on whether they wish us to extend the convention to them. WIAD will extract a draft tel from Mr Eaton and clear with us.

LCD made clear that some DTS might nevertheless consider the local legislation needed would be too complex to be worth the candle, WIAD and I took note, of course, to make this point to the DTS.

4.

LCD also explained that EC/EFTA reservations stemmed from the varying standards of justice in DTs, particularly if independence is a future option. I established that Hong Kong is not in this category, and that if LCD needed briefing on Hong Kong's current legal/judicial system and its maintenance post-1997, we would provide.

5.

Ironically the main EC/EFTA preoccupation seems to be Macau. We agreed that Macau was in a unique position,

territory merely "under Portuguese administration" (the Portuguese formula): if raised our line would be to ask the Portuguese to clarify Macau's status vis à vis

–

the convention (if they can), with the strong hint that they can hardly hope to do so until negotiations on Macau's future are resolved (again no parallel with Hong Kong).

2 July 1986

CE Lěeks

Hong Kong Department

2