TNAG-2893-FCO40-4166-Hong-Kong-localisation-of-laws-merchant-shipping-and-carria-1993 — Page 5

to liner conferences which do not have their seat in Hong

Kong, if they serve the trade between Hong Kong and

another State which is a Contracting Party to the Code.

8.

The Bill will reproduce existing law by implying in all

contracts governed by the Code certain terms about provisions

inconsistent with the Mandatory Provisions Regulations; will give

the Governor in Council power by regulations to exclude or restrict

the operation of the Code for lack of reciprocity; will provide for

the liability of members of a liner conference to be in proportion

to their responsibility; and will make ancillary provisions as to

legal proceedings and enforcement of recommendations of

conciliators. The Bill will provide for the Governor or any officer

appointed by him to be the appropriate authority in Hong Kong for

purposes of the code. It will also give the Governor in Council

power to make regulations to implement the legislation. The

Conditions for Recognition Regulations will be incorporated in the

legislation, with the modifications mentioned in para. 5 above.

9.

The British side proposes in the Bill to retain the

present arrangement whereby the Secretary of State after

consultation with the Governor may decide that reservations to the

code entered by a Contracting Party are unacceptable. If he does

so, the Governor in Council, with the concurrence of the Secretary

of State, will be able to make regulations excluding the operation

of the Code in respect of that Party.

CONFIDENTIAL