TNAG-2332-FCO40-3393-Future-of-Hong-Kong-localisation-of-laws-admiralty-jurisdic-1991 — Page 12

CONFIDENTIAL

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MDLOAN

5. YOU DO NOT IN FACT NEED TO LEGISLATE FOR THIS PURPOSE AT PRESENT. IF SECTION 23B (3) WERE DELETED FROM THE ORDINANCE, THE STRUCTURE OF SECTION 5 WOULD STILL ENABLE THE HONG KONG COURTS TO CONTINUE TO EXERCISE JURISDICTION UNDER SECTION 686 OF THE MERCHANT SHIPPING ACT.

6. IF, HOWEVER, YOU WISH TO RETAIN THE SUBSTANCE OF SUB PARAGRAPH (II) IN ORDER TO HAVE JURISDICTION AFTER 1997 IN RELATION TO AN SARG BELONGER, THEN WE WOULD SUGGEST YOU SUBSTITUTE FOR THE WORDS ''BRITISH NATIONAL THE WORDS ''BRITISH NATIONAL WHO HAS THE RIGHT OF ABODE IN HONG KONG'' INSOFAR AS SECTION 3(A) APPLIES IN RELATIONS TO SUB PARAGRAPH (II).

7. WE SHOULD BE GRATEFUL FOR YOUR VIEWS ON HOW THIS SITUATION

MIGHT BE RECTIFIED.

HURD

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MAIN

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HKD

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ADDITIONAL

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MR FIFOOT, LEGAL ADVISERS

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DISTRIBUTION

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MR MCLAREN

MR BURNS

MS BARRETT, LEGAL ADVISERS