TNAG-2303-FCO40-3332-Hong-Kong-International-Rights-and-Obligations-(IRO)-Sub-Gro-1991 — Page 16

IRO/1/89

HAGUE CONVENTION ON THE LAW OF TRUSTS

SPEAKING NOTE: 5 JANUARY 1989

Annex B

Handed over to the Chinese side on 5.1.1989

1.

The Convention on the law applicable to trusts and on their

recognition was adopted by the Hague Conference on Private

International Law in 1984. The UK signed the Convention on

10 January 1986 and now plans to ratify it. It is intended that

Hong Kong should be included in the UK's ratification or have the

Convention extended to it subsequently.

2.

The Convention specifies the law applicable to trusts and

governs their recognition. For 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.

3.

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.

4. It is in Hong Kong's interest for the Convention to be applied

to Hong Kong so that a settlor who wishes to create a trust in

Hong Kong may choose the applicable law to govern the trust and

benefit from its recognition in territories that are parties to

the Convention.

SANTOS EN DE 18,21