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Following is the speech by the Secretary for Justice, Ms Elsie Leung in moving the Second Reading of the Arbitration (Amendment) Bill 1999 in the Legislative Council today (Wednesday):

Madam President,

I move that the Arbitration (Amendment) Bill 1999 be read the second time.

The existence of an efficient arrangement for enforcing, in one jurisdiction, arbitral awards made in another jurisdiction helps to ensure fair business dealings and makes it less likely that business people will renege on their contracts. Prior to the reunification, the recognition and enforcement in Hong Kong of arbitral awards made in other jurisdictions, including the Mainland, was governed by the New York Convention. The Convention continues to apply to the Hong Kong Special Administrative Region after the reunification. However, since the Convention is an international agreement, it is no longer applicable to the enforcement of arbitral awards between the Mainland and Hong Kong. A new arrangement needs to be put in place.

The Administration has now reached consensus with the Mainland in this aspect. The new arrangement is made in accordance with the spirit of the New York Convention. In addition, to meet present day's needs, it will allow awards made by over 100 Mainland arbitral authorities with relevant experience to be enforced in Hong Kong.

The Arbitration (Amendment) Bill seeks to implement the above arrangement. It defines clearly the type of Mainland awards that can be enforced in Hong Kong and sets out relevant procedures and grounds for refusal of enforcement. In addition, the Bill adapts the Ordinance to bring it into conformity with the Basic Law and Hong Kong's status as a Special Administrative Region of the People's Republic of China.

Madam President, this Bill is important to make all-embracing the arrangement for enforcement of arbitral awards in Hong Kong. I commend it to this Council for early passage into law.

End/Wednesday, 7 July, 1999

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