TNAG-2330-FCO40-3383-Future-of-Hong-Kong-localisation-of-laws-arbitration-1991 — Page 7

+

ххх

we

RESTRICTED

ZCZC

RESTRICTED

FM FCO

fill: 57:

CC Ms Barrell (timed)

TO PRIORITY HONG KONG

TELNO

OF 05160OZ AUGUST 1991

(with Ms Brookes' minute

Ave

And

Telmo 2371

2371)

you

content with this team ?

Chua Sanity

FINAL

PRIORITY

Mr Sainty

Telmir. p/w

Please see

778

suggested rewarding below Will Banett

5/8

AND TO INFO ROUTINE PEKING, ROUTINE UKREP JLG HONG KONG

YOUR TELNO 2371: LOCALISATION OF LAWS: ARBITRATION

1. You are right to point out this anomaly in the UK legislation

relating to the immunities enjoyed by ICSID and other

organisations.

2. We are unable to offer a definite explanation of this: it is

possible that there was an oversight, or alternatively that it

was considered unnecessary to amend the Arbitration

the fact that

(International Investment Disputes) Act 1966 despite our acknowledged that our International obligatent required us decision to provide relief for the international organisations

covered in the 1976 order. ICSID have no office or staff in the

UK and none of their functions are carried on here. There is would

have been

eno

therefore no practical need for such a new provision.

3. In this situation we see no merit in your following the UK

appear that the strict implementation of precedent. It would/be-ons

with the UK's obligations

would require under the 1965 Washington Convention for you to include

relief

from

provision in your legislation for refund to ICSID of first

registration tax on motor vehicles.

SIMACH

Hong Kong

C Sainty

5/8/91