TNAG-2163-FCO40-3094-Localisation-of-laws-in-Hong-Kong-1990 — Page 16

CONFIDENTIAL

HKC370/3

RECE

IND:

1 8 DEC 1990

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 3629

OF 060749Z DECEMBER 90

INFO ROUTINE PEKING, UKREP JLG HONG KONG

LOCALISATION OF LAWS ON ARBITRATION

D

166610 MDLIAN 2757

2

TOP COPY Q DIST?

copied to

Mr

Sajty.

Please pursue. New file?

RM 6112. 1012

Ms Foakes, Legal Adv. for advice

1 A DRAFT BILL HAS BEEN PREPARED TO LOCALISE PROVISION OF THE ARBITRATION (INTERNATIONAL INVESTMENT DISPUTES) ACT 1966 AS EXTENDED TO HONG KONG BY S.I. NO 1967 NO 159.

2. GRATEFUL FOR ELUCIDATION ON TWO POINTS ABOUT THE UK

LEGISLATION:

(A) REASONS FOR EXCLUDING ARTICLES 21 (B) AND 23(2) OF THE 1965 WASHINGTON CONVENTION ON THE SETTLEMENT OF INVESTMENT DISPUTES BETWEEN STATES AND NATIONALS OF OTHER STATES IN SECTION 4(1) OF THE ACT. WE WONDER WHETHER THE RESTRICTIONS COVERING IN ARTICLE 21(B) ARE DEALT WITH SEPARATELY IN OTHER ORDERS IN COUNCIL. WE GUESS THAT THE OMISSION OF ARTICLE 23(2) IS BECAUSE IT IS SIMPLY AN OBLIGATION NOT TO DISCRIMINATE AND ITS OBSERVANCE IS NOT (NOT) DEPENDENT ON LEGISLATION BUT WOULD LIKE TO HAVE YOUR

CONFIRMATION.

(B) REASONS FOR IMPOSING LIMITATIONS, AS SET OUT IN SECTION 4(2) OF THE ACT, ON THE PRIVILEGES AND IMMUNITIES CONFERRED ON THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES. WE NOTICE THAT SUCH LIMITATIONS APPEAR IN MOST UK ORDERS RELATING TO

PRIVILEGES AND IMMUNITIES.

3. YOUR VIEWS ON THE ABOVE WILL HELP US PREPARE THE CONSULTATION PAPER AND DEFENSIVE MATERIAL. WE SHALL IN DUE COURSE SEND YOU THE TEXT OF THE DRAFT CONSULTATION PAPER FOR COMMENT.

FORD

YYYY

1

PAGE CONFIDENTIAL