TNAG-2108-FCO40-3007-Hague-Convention-on-the-Law-Applicable-to-Trusts-1990 — Page 8

Matter

APS/Mr Sainsbury

Balfsbury

19 371/198 3개

11 DEC 1989

From:

Date:

GISTRY

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PNP 11/12

24 NOV 1989

Parker, Legal Advisers

24 November 1989

Th. Parker, Legal Advics

Thankym

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HAGUE CONVENTION ON TRUSTS: TURKS AND CAICOS ISLANDS

1. Your minute of 25 October 1989 recorded that Mr Sainsbury would like to be notified if the TCI legislation to implement the Hague Convention on Trusts was not enacted within the following few weeks. The current position is that the Lord Chancellor's Department are considering the TCI draft Trusts Bill and will pass on their comments to TCI as soon as possible.

2.

The United Kingdom ratified the Hague Convention on 17 November. When the TCI legislation is in place the Convention will be extended to TCI by means of a declaration. I expect that the TCI will wish to enact this legislation speedily and I am not aware of any element of "dragging heels".

24 November 1989

Nigel Parker

ND Parker

Legal Advisers

>

Your reference

Our reference

EI/23/122/13

LORD CHANCELLOR'S DEPARTMENT

26-28 OLD QUEEN STREET

LONDON SWIH 9HP

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HKC031/8

RECEIVED IN REGISTRY

19 JAN 1990

DESK OFFICER INDEX

Telephone 01-210 3534

REGISTRY

January 1990

Action Taken

Dear Mr Cenum,

Сеписи,

HAGUE CONVENTION ON TRUSTS: HONG KONG

Nigel Parker has sent me a copy of Hong Kong's ordinance No. 60 of 1989 which enables it to have the Hague Convention extended to it. He has asked me to write to you (in his absence) to confirm that the legislation is in order, which I am able to do.

I am copying this letter to Nigel Parker to await his

return.

Your sincere

Miche former

M N Farmer

Nick Cannon Esq

Foreign and Commonwealth Office

Hong Kong Department

London

SW1A 2AH

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HKC0318

RECEIVED IN REGISTRY

19 JAN 1990

DESK OFFICER INDEX

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Action Taken

Reference....

Thank you

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Linter (now seperate file)

HAGUE CONVENTION ON THE LAW OF TRUSTS

1.

2.

HM

You asked for a note on this Convention.

2

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end Jan. Pu

The Convention on the law applicable to trusts and on 4/1

For

their recognition was adopted by the Hague Conference on Private International Law in 1984. The UK signed the Convention on 10 January 1986. The Convention specifies the law applicable to trusts and governs their recognition. the purposes of the Convention, the term "trust" refers to the legal relationship created by a person, the settlor, when assets have been placed under the control of the trustee for the benefit of a beneficiary or for a specified purpose. The Convention provides that a trust shall be governed by the law chosen by the settlor or, in the absence of such a choice, by the law with which it is most closely connected: and for trusts created in accordance with the Convention to be recognised.

3. The concept of a trust is already enshrined in the English common law which applies in Hong Kong. At present, settlors face two difficulties when a trust involves more than one jurisdiction. First, trusts are not recognised in some non-common law jurisdictions. Second, there could be uncertainty as to the law which governs the trust. The application of the Convention to Hong Kong is useful in that

it:

(a) ensures that trusts set up in Hong Kong will be

recognised in non-common law jurisdictions when the latter become parties to the Convention; and

(b)

4.

provides a way to determine which law will govern the trust.

We raised the Convention with the Chinese in January. They asked two questions to clarify the position, and in March confirmed that they were content for the Convention to be extended to Hong Kong

5.

Hong Kong passed the Recognition of Trusts Ordinance 1989 in November. It gives effect to the Convention, and includes provision for it to come into operation on a date to be appointed by the Governor.

Hong

The

6. The UK ratified the Convention on 17 November. Kong was not included in the initial ratification. Convention must now be extended to Hong Kong by a declaration under Article 29. Hong Kong have confirmed that they wish the Convention to be extended to Hong Kong. Legal Advisers have drafted a declaration, which I have passed to

see

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