TNAG-2330-FCO40-3383-Future-of-Hong-Kong-localisation-of-laws-arbitration-1991 — Page 13

Ms Barrett

Legal Advisers

COVERING CONFIDENTIAL

HKC370/2

HONG KONG: LOCALISATION OF LAWS: ARBITRATION

Reference

1. Hong Kong have come up with another query on this subject (Hong Kong telno 2371, attached). It seems that under UK law the immunity which ICSID enjoys from duties and taxation (as provided for in the Washington Convention) does not extend to car taxes and VAT. This apparently conflicts with the treatment accorded to other international organisations.

2. Hong Kong have asked for an explanation of this difference, and confirmation that it should be reflected in their localised legislation. I have discussed this with Mr Wallis, Protocol Department, who has suggested that I consult you and that you might wish to consult Ms Brookes. should be grateful for your comments by c.o.p 2 August as I should like to reply to Hong Kong early next week.

Amin Sainty.

H

CODE 18-77

ས་iE、「 ད、

CJ Sainty

Hong Kong Department WH305

30 July 1991

270 3287

Cc: Ms Brookes, Legal Advisers

Mr Wallis, Protocol Department

CAMAHS CC

COVERING CONFIDENTIAL

"