TNAG-1826-FCO40-2594-Hong-Kong-courts-and-legal-system-1988 — Page 157

ва

Foreign and Commonwealth Office D

London SW1A 2AH

нко 37014

6 June 1988

HAGUE CONVENTION ON THE LAW OF TRUSTS

A Convention of the Law Applicable to Trusts and on Their Recognition was signed (subject to ratification) by the United Kingdom on 10 January 1986. A copy of the text of the Convention appears in Cmnd 9494, which is enclosed.

The Convention lays down rules to determine the law by which a trust should be governed. It also specifies the conditions for the recognition of a trust, and the implications of such recognition. Its purpose is to resolve conflicts between countries with a common law system (where the concept of the trust developed) and countries with a civil law system (where the concept is largely unknown). As the leading trust State the United Kingdom will be expected to ratify the Convention at an early stage. Some civil law countries have expressed a willingness to ratify provided that the United Kingdom has already done so. We therefore intend to proceed to ratify as soon as possible.

On ratification, the United Kingdom intends to make the reservation which is permitted by Article 16 paragraph 2 and the declaration permitted by Article 20, paragraph 1.

The Convention will be given effect in the United Kingdom by the Recognition of Trusts Act 1987 (c.14).

A copy of the Act is enclosed. Section 2(2) provides for Orders in Council to direct that the Act shall form part of the law of the dependent territories, Channel Islands and Isle of Man.

The Convention contains no provision enabling states to make declarations after ratification extending the Convention to territories for the international relations of which a state is responsible. Accordingly, we need to include specifically in our instrument of ratification the dependent territories to which the Convention is to apply.

I should therefore be grateful to know whether the dependent territories for which you are responsible would wish to be included in the United Kingdom's ratification, and when any necessary local legislation will be in place. I request that your reply should reach this department not later than 5 September.

/This