TNAG-2330-FCO40-3383-Future-of-Hong-Kong-localisation-of-laws-arbitration-1991 — Page 21

CONFIDENTIAL

HK2370/2

RECE

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 258

OF 24093OZ JANUARY 91

30 JAN 1991

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INFO PRIORITY PEKING, UKREP JLG HONG KONG

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152075

MDLIAN 3200

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OUR TELNO 80: LOCALISATION OF LAWS : ARBITRATION

1. WE SAID IN OUR TUR THAT WE WOULD REVIEW THE TIMING OF HANDING OVER THE CONSULTATION PAPER IF THE ICSID ISSUE WAS NOT RESOLVED IN THE CONTEXT OF DISCUSSION ON IPPAS ON 16 JANUARY. AS REPORTED IN UKREP JLG TELNO SAVING 1, AGREEMENT WAS NOT REACHED ON REFERRAL OF INVESTMENT DISPUTES TO ICSID.

2. WITHHOLDING THE PAPER WOULD NOT REMOVE THE DIFFICULTY OVER ICSID. NOR, WE BELIEVE, WOULD HANDING OVER THE PAPER AGGRAVATE THE DIFFICULTY. TO MAINTAIN THE MOMENTUM OF CONSULTATION ON LOCALISATION OF LAWS, THEREFORE, WE PROPOSE TO HAND OVER THE PAPER ON 1 FEBRUARY.

3. SO AS NOT TO APPEAR TO IGNORE THE RESERVATIONS OVER REFERRAL TO ICSID EXPRESSED BY THE CHINESE IN THE CONTEXT OF IPPAS, UKREP JLG, WHEN HANDING OVER THE PAPER, WILL TELL THE CHINESE THAT WE ARE AWARE OF THE RECENT DISCUSSION OF THE ISSUE IN ANOTHER CONTEXT.

4. UKREP JLG CONCURS WITH THIS APPROACH.

WILSON

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.HONG KONG AGREEMENT

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CONFIDENTIAL