The New Legal Order in Hong Kong

Edited by Raymond Wacks

# m *. # * f & ^ _ _ HONG KON G UNIVERSIT Y PRES S Hong Kong University Press 14/F Hing Wai Centre 7 Tin Wan Praya Road Aberdeen Hong Kong

© Hong Kong University Press 1999

ISBN 96 2 209 507 0 (Hardback ) ISBN 96 2 209 508 9 (Paperback )

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Printed in Hong Kong by Caritas Printing Training Centre. Contents

Preface i x Contributors x i Table of Cases x v

Introduction 1 Raymond Wacks

PART 1: TH E CHANGIN G LEGAL AND CONSTITUTIONAL OKDEK

1 * Th e Content of the Common Law in Hong Kong 9 Peter Wesley-Smith

2 Th e Development of Constitutionalism in Hong Kong 3 9 Benny Tai Yiu-ting

3 Th e Form and Substance of Legal Interaction Between Hong Kong 9 5 and Mainland China: Towards Hong Kong's New Legal Sovereignty HLFu VI Contents

4 Inter-Jurisdictiona l Co-operation in Criminal Matters: Extradition, 13 3 Mutual Legal Assistance, Prisoner Transfer to and from the HKSAR Janice Brabyn

5 Th e Central-HKSAR Legislative Relationship: A Constitutional 16 3 Assessment Li Yahong

6 Enforcemen t o f Arbitral Awards Between Mainland China and 18 3 Hong Kong: Before and After Reunificatio n Xian Chu Zhang

7 Th e Status of Customary International Law in the Municipal Law 21 1 of the HKSAR Jianming Shen

PART 2: TH E NEW ECONOMIC ORDER

8 Stoc k Market Crises and Insider Dealing in Hong Kong: 23 7 The Need for Regulatory Reform Katherine Lynch

9 Internationalisatio n of Public Financial Law in Hong Kong 28 9 Joseph J Norton & Douglas WArner

10 Publi c Accountability and the Executive: The Role of the 31 5 Government in the Stock Market Anne Carver and John Whitman

11 Compan y Law in Hong Kong: Charting a New Course? 34 1 Anna Tarn

12 Revenu e Law in Hong Kong: The Future 36 9 Richard Cullen

13 Recen t Reforms and Developments of Mainland Chinese and 40 5 Hong Kong Maritime Law Felix WH Chan Contents til

14 Hon g Kong's Law of Contract: The Last Thirty Years 43 5 Judith Sihombing

15 Employmen t and Trade Union Law: Ideology and the Politics 47 7 of Hong Kong Labour Law Wilson W S Chow and Anne Carver

PART 3: SHIFTIN G SOCIAL VALUES

16 Confucia n Lega l Culture and Its Modern Fate 50 5 Albert HYChen

17 Th e Mapping of Narratives in Hong Kong's Post-Colonial Family 53 5 Disputes Anne S Y Cheung

18 Hon g Kong Family Law in the Last Decade of British Rule: 56 3 Towards a New Identity Bart Rwezaura

19 Equa l Opportunities: A New Field of Law for Hong Kong 59 5 Carole J Petersen

20 Internationa l Environmental Law: How Green Is the Future? 62 7 Ro da Mushkat

21 Preservin g the System: The Educational Dimension 64 9 Stephen Nathanson

Index 671 Contributors

Douglas Arner is Si r John Lubbock Research Fellow in International Capita l Markets at the University o f London's Centre for Commercial Law Studies and is an honorary lecturer in the Faculty o f Law of the University o f Hong Kong. He has published several articles in the field o f international financial law , and is a legal consultant to the European Bank for Reconstruction and Development.

Janice Braby n i s a Lecturer i n th e Department o f La w a t the Universit y o f Hong Kong. She has published a number of articles in the fields o f criminal law and evidence and has a special interest in the subject of extradition.

Anne Carve r i s a Senio r Lecture r i n th e Departmen t o f Professiona l Lega l Education at the University o f Hong Kong. Her principal areas of expertise are commercial and company law. Her book Hong Kong Business Law is now in its third edition.

Felix Wai-hon Chan is an Assistant Professor in the Department of Professional Legal Education at the University o f Hong Kong. He was formerly i n practice with a major Hon g Kong fir m o f solicitor s an d specialises i n commercial an d shipping litigation.

Albert Hung-yee Che n is a Reader in Law and Dean of the Faculty of Law of the Universit y o f Hong Kong. He has published widel y in th e field o f public Xll Contributors law. His most recent books include An Introduction to the Legal System of the People's Republic of China, (1998) an d The Rule of Law, Enlightenment and the Spirit of Modern Law (1998). He is co-editor of General Principles of Hong Kong Law (1999) and of the Hong Kong Law Journal.

Anne Shann-yue Cheung is an Assistant Professor i n the Department o f Law at the University of Hong Kong. Her research deploys cultural and sociological perspectives in exploring legal issues and has published in the fields of language rights an d cultural questions. Sh e is currently pursuing a doctorae a t Stanfor d University on the subject of press freedom an d self-censorship.

Wilson Wai-shu n Cho w i s a n Assistan t Professo r i n th e Departmen t o f Professional Lega l Educatio n a t th e Universit y o f Hon g Kong . H e practise d briefly a s a solicitor. His research interests include trade union and labour law and he is editor of Hong Kong Management and Labour: Continuity and Change (1999).

Richard Cullen is Professor an d Head of the Department of Business Law and Taxation at Monash University in Melbourne. In 199 8 he was a Visiting Fellow at City University o f Hong Kong Law School. He has published widely in the areas of tax law, public law and media law.

Fu Hualing is an Assistant Professor in the Department of Law at the University of Hong Kong where his principal teaching and research interests are criminal justice and law and administration. He is co-author o f Media Law in the PRC (1996).

Li Yahong is a Research Fellow in the Department of Law at the University of Hong Kong. She has published a number of articles on various aspects of Hong Kong, Chinese and American law.

Katherine Lync h is a n Associate Professo r i n the Department o f Law a t the University o f Hon g Kon g wher e sh e specialises i n corporat e la w an d disput e resolution. She previously practised in the area of commercial and civil litigation in Canada . Sh e ha s publishe d i n th e fiel d o f propert y law , compan y law , international arbitratio n an d dispute resolution. She is co-author o f Hong Kong Company Law: Cases, Materials and Comments (1997).

Roda Mushkat is a Reader in Law in the Department of Law at the University of Hong Kong where she specialises in public international law and has published widely in the areas of refugee law, international environmental law, and human rights, includin g One Country, Two International Legal Personalities: The Case of Hong Kong (1997). Contributors xm

Stephen Nathanson is an Associate Professor in the Department of Professional Legal Educatio n a t th e Universit y o f Hon g Kong . H e ha s designed ! several professional lega l educatio n programme s i n Canad a an d England , an d i s a Professor a t the College o f Law in London where he assisted in the design of the firs t Ba r Vocationa l Course . H e has publishe d widel y o n th e subjec t o f curriculum reform, includin g What Lawyers Do: A Problem-solving Approach to Legal Practice (1997).

Joseph Norton is Sir John Lubbock Professor o f Banking Law at the University of London' s Centr e fo r Commercia l La w Studies , an d Jame s L Wals h Distinguished Faculty Fellow and Professor o f Law at the SMU School of Law in Texas. He is currently a Vice-Chancellor's Distinguishe d Facult y Professo r at the University o f Hong Kong. He has published more than 30 books and 100 articles in the field o f banking, finance and business law.

Carole Peterse n i s a n Associat e Professo r i n th e Departmen t o f La w a t th e University o f Hon g Kong . Sh e ha s publishe d article s i n th e fiel d o f huma n rights law , women and the law, and anti-discrimination law. She is a member of the editorial committee of the Hong Kong Law Journal.

Bart Rwezaura is a Senior Lecturer in the Department of Law at the University of Hong Kong. He has published widely in the field o f family la w and change, on children's rights and culture, and is a member of the editorial committee of the Hong Kong Law Journal.

Shen Jianming is Visiting Professor o f Law at St. John's University School of Law an d an Assistant Professor o f International Law at Peking University. He was formerl y a Researc h Fello w i n th e Facult y o f La w a t th e Universit y o f Hong Kong. His principal research interests lie in the field of public international law.

Judith Sihombin g i s a Senio r Lecture r i n th e Departmen t o f La w a t th e University o f Hong Kong. She has published widely on land law, conveyancing and commercia l law , includin g Goods: Sales and Securities, now i n it s thir d edition, and is co-author of Hong Kong Conveyancing: Law and Practice (1993).

Benny Yiu-ting Tai is an Assistant Professor i n the Department o f Law at the University of Hong Kong where he specialises in constitutional law.

Anna Yick-man Tar n is a n Assistant Professo r i n the Department o f La w a t the Universit y o f Hon g Kong . Sh e specialise s i n th e fiel d o f compan y law . Prior to joining the University she was a solicitor with a major Hong Kong law firm. Sh e i s co-autho r o f Hong Kong Company Law: Cases, Materials and Comments (1999). XIV Contributors

Raymond Wacks is Professor o f La w an d Legal Theory a t the University o f Hong Kong. He has published widely in the fields o f privacy and legal theory. He is a former Hea d o f the Department o f Law an d Editor o f the Hong Kong Law Journal. His recent books include Privacy and Press Freedom (1995). The fifth editio n of his book Jurisprudence is imminent.

Peter Wesley-Smith was, until recently, Professor o f Constitutional Law at the University o f Hong Kong and Editor in Chief o f the Hong Kong Law Journal. His books include a popular primer on the Hong Kong legal system, a text on the territory's pre-1997 constitutional an d administrative law, and The Sources of Hong Kong Law (1994). He retired early and now lives in Australia.

John Whitman is a Lecturer i n Accounting a t the Schoo l o f Business a t the University o f Hong Kong where his principal research interest is the regulation of stock markets. He is a Fellow of the Hong Kong Society of Accountants.

Zhang Xianch u i s a n Assistan t Professo r i n th e Departmen t o f La w a t th e University o f Hong Kong where he specialises in Chinese domestic and foreign economic laws. His research interests include company law an d the regulation of financia l markets . H e i s a n edito r o f an d contributo r t o Introduction to Chinese Law (1997). . Table of Cases

Adams v Cape Industries pic [1990] Ch 433, 359-6 0 Affaire d e I'Alabam a (U S v Grea t Britain ) (1872 ) Moore' s Internationa l Arbitration vol 1 pp 495 and 656, 21 4 AG v Blake [1998] 1 All ER 883, 47 5 AG v Humphreys Estates [1983] AC 114, 446 , 467, 468, 469 Alderslade v Hendon Laundry [1945] KB 189, 46 0 Aliakmon, The [1986] 2 Lloyd's Rep 1, 41 6 ANZ v Petrick [1997] 2 VR 627, 45 5 Apex Tec h Investmen t Lt d v Chuang' s Developmen t (China ) Lt d [1996 ] 2 HKC 293, 19 3 Applicability o f th e Obligatio n t o Arbitrat e unde r Sectio n 2 1 o f th e Unite d Nations Headquarters Agreement of 26 June 1947 (Advisory Opinion, 1988) ICJRepppl2and34, 21 4 Aramis, The [1989] 1 Lloyd's Rep 213, 41 7 Associated Japanese Bank v Credit du Nord [1989] 1 WLR 255, 44 5 Atlas Tiles Ltd v Briers (1978) 14 4 CLR 202 and 208, 2 4

Bain v Fothergill (1874) LR 7 HL 158, 1 0 Balfour v Balfour [1919 ] 2 KB 591, 544 , 545 Balmain Ferry v Robertson (1906) CLR 379, 46 0 Baltic Shipping v Dillon (1993) 67 ALJR 228, 44 6 Banque Financierie de la Cite v Pare (Battersea) Ltd [1998] 1 All ER 476, 47 5 XVI Table of Cases

Barclay's Bank pic v O'Brien, 455 , 456, 467 Barclays Bank pic v Boulter [1997] 2 All ER 1002, 45 6 Barclays Bank pic v O'Brien [1993] 4 AH ER 417, 453 , 454 Barclays Bank pic v Thomson [1997] 4 All ER 816, 455 , 456 Baring v Baring [1992] HKLR 526, 57 2 BCCI v Aboody [1990] 1 Q B 923, 45 4 Belilios v Ng Li-shi [1969] HKLR 202, 2 7 Bell v Lever Brothers Ltd [1932] AC 161, 43 5 Bewise Motor s C o Lt d v Ho i Kon g Containe r Service s Lt d [1998 ] 4 HK C 377, 44 5 Birmingham & District Land Co v London & North-Western Rly Co (1880) 40 Ch D 268, 46 5 Blackpool & Fylde Aero Club v Blackpool BC [1990] 3 All ER 25, 441 , 442 Brandt v Liverpool, Brazi l an d River Plat e S N C o [1924 ] 1 KB 575 , 415 , 418 Buvot v Baribuit [1737] Cases T Talbot 281 (per Lord Talbot), 219 , 223

C v C [1990] 2 HKLR 18 3 and 186, 56 3 Central London Property Trust Ltd v High Trees House [1947] KB 130 , 446 , 465, 468, 470 Chan Hing-cheung v R [1974] HKLR 196 , 1 1 Chan v Cheong [1993] HKLR 485, 57 1 Chapelton v Barry UDC [1940] 1 K B 542, 46 0 Chase Manhatta n Ban k N A v Israel-Britis h Ban k [1979 ] 3 Al l E R 1025 , 451 Chekiang First Bank v Fong Siu Kin [1997] 2 HKC 302, 453 , 456 Cheung La i Wa h & Ors v Th e Directo r o f Immigratio n [1998 ] 1 HKC 617, 126 Cheung Pik Wan & Anor v Tong Sau Ping & Ors [1986] HKLR 9, 45 8 Cheung Yun-ho v Wong Kwan-cheung [1995] 2 HKLR 90, 47 3 China Ocea n Shippin g C o v Mitran s Shippin g C o Lt d [1995 ] 3 HK C 123 , 360 China Pride Investment Ltd v Silverpole Ltd [ 1994] 2 HKC 241, 47 3 Chung Ch i Cheun g v Th e Kin g [1939 ] A C 16 0 a t p p 167- 8 (pe r Lor d Atkin), 221,22 8 ClBCplcvPitt[1993]4AllER433, 45 5 Citilite Properties Ltd v Innovative Development Co Ltd [ 1997] 2 HKC 74, 47 0 City Polytechni c o f Hon g Kon g v Blu e Cros s (Asia-Pacific ) Insuranc e Lt d [1994] 3 HKC 423, 44 2 Commonwealth Bank of Australia v Amadio (1983) 57 ALJR 158 , 453 , 458, 466, 474 Credit Lyonnais v Burch [1997] 1 All ER 144 , 45 5 Cremer v General Carriers [1973] 2 Lloyd's Rep 366, 41 7 Curtis v Chemical Cleaning [1951] 1 K B 805, 46 0 Table of Cases XipB:

David Securitie s v Commonwealt h Ban k o f Australi a (1992 ) 6 2 ALJ R 768, 448 , 449, 474 Decro-Wall International S A v Practitioners in Marketing Ltd [1971 ] 2 All ER 216, 44 0 Deemcope Pty Ltd v Cantown Pty Ltd [ 1995] 2 VR 44, 450 , 451 Delfini, The [1990] 1 Lloyd' s Rep 252, 415 , 418 DHN Food Distributors Ltd v London Borough of Tower Hamlets [1976 ] 3 All ER 462; [1976] 1 WLR 852, 35 9 Dillwyn v Llewellyn (1862) 45 ER 1285, 46 5 Dugan v Mirror Newspapers Ltd (1978) 142 CLR 583 and 586, 2 4 Dunbar Bank v Nadeem [1997] 1 All ER 253, 45 5

East v Maurer [1991] 2 All ER 733, 45 2 Equiticorp Finance Ltd v Bank of NZ (1993) 32 NSWLR 50, 450 , 451 Eugenia, The [1964] 2 QB 226, 45 8 Evans (J ) & Sons (Portsmouth ) Ltd v Andrea Merzarion Ltd [1976 ] 2 All ER 930, 46 0 Exchange of Greek and Turkish Population (Advisory Opinion, 1925 ) PCIJ ser Bnol0p20, 21 3

Fercometal SARL v Mediterranean Shipping Co SA [1988] 3 WLR 200, 44 0 Finnish Ships Arbitration (1934) 3 UNRIAA 1484, 21 4 Fireman v Golden Rice Bowl Ltd [1987] 2 HKC 549; [1987] HKLR 981 (Hong Kong High Court), 34 4 Foo Kam-shing v Local Printing Press Ltd [1952] HKLR 19 2 and 206, 2 8 Foran v Wight (1989) 64 ALJR 1 , 466 , 468, 471 Ford & Carter Ltd v Midland Bank Ltd (1979) 12 9 NLJ 543 at 544, 35 8 Foss v Harbottle (1843 ) 2 Hare 461; 67 E R 18 9 (Court o f Chancery) , 341 , 346 Fung San g Tradin g Lt d v Ka i Su n Se a Prod s & Foo d C o [1992 ] 1 HKLR 40, 19 0

Garcia v National Australia Bank Ltd (1998) HCA 48, 45 6 Gillick v West Norfolk & Wisbech Area Health Authority [1986] AC 112, 58 2 Gilman & Company Ltd v Ho So Wah [1989] HKDCLR 29, 45 8 Gladflow Limited v Grandland Development Limited [ 1993] 2 HKC 494, 47 3 Grant v Norway (1851) 1 0 CB 665, 41 9 Greek and Bulgarian Communities (Advisory Opinion, 1930 ) PCIJ ser B no 17 p32, 21 4

Hadley v Baxendale (1854) 9 Exch 341, 438 , 439 Hadley v Baxendale, 45 2 Halsall v Brizell [1957] Ch 169, 442 , 445 xma Table of Cases

HamlettvHamlett[1993]HKLD77, 57 2 Hammond's [1941 ] 3 All ER 318, 2 1 Hazell v Hammersmith and Fulham [ 1992] 2 AC 1 , 2 0 Health Lin k Investmen t Lt d v Pacifi c Haw k Investmen t Lt d [1995 ] 1 HKC 249, 47 2 Hebei Import-Export Corp v Polytek Engineering Co Ltd (No 2) [1998] 1 HKC 192, 200,20 6 Hillas & Co Ltd v Arcos Ltd (1932) 14 7 LT 503, 44 5 HKSAR v David Ma Wai-kwan an d others [1997 ] 2 HKC 315 , 325, 348 and 361, 22 , 38, 68, 77, 125 HKSAR v Ma Wai Kwan, David & others [1997] HKLRD 761 p773, 33 4 Hong Kon g an d Chin a Ga s C o Lt d v Directo r o f Land s [1997 ] HKLR D 1291, 337,33 8 Hong Kon g Fir Shippin g C o Ltd v Kawasaki Kise n Kaish a Ltd [1962 ] 2 QB 26, 43 8 Hughes v Metropolitan Rly Co (1877) 2 App Cas 439, 46 5

Irene's Success, The [1981] 2 Lloyd's Rep 635, 41 6

Jorden v Money (1854) 1 0 ER 868, 46 6 Jurisdiction o f the Courts o f Danzig (Advisor y Opinion , 1928 ) PCIJ se r B no 15 pp26-7, 21 4

Kam Lan Koon [1998] HCAL No 42 of 1997, 33 7 Keung Shiu Tang v DH Shuttlecocks Ltd [ 1994] 1 HK C 286, 47 3 Kilmer v British Columbia Orchard [1913] AC 319, 47 2 Kleinwort Benson Ltd v Lincoln Cit y Counci l [1998 ] 3 WLR 1095 , 15 , 16, 17,20,25,449 Kwan Chui Kwok Ying and Another [1995] 1 HK C 374, 55 2

LvC [1994 ] HKLR92, 57 6 L'Estrange v F Graucob Ltd [1934] 1 K B 394, 43 5 Latec v Hotel Terrigal (1965) 113 CLR 265, 46 8 Learoyd v Whiteley (1887) 1 2 App Cas 727, 54 6 Li Mun Chung v East Asia Steam Laundry [1961 ] HKDCLR 28, 46 0 Lisciandro v Official Truste e in Bankruptcy (1996) 13 9 ALR 689, 45 5 Lord Strathcona Steamship v Dominion Coal [1926] AC 108, 44 6 Lui Kit Chun v Lui Kwok Hui Chow [1976] HKDCLR 51, 554 , 555

Maguire v Makaronis (1997) 44 ALR 729, 45 5 Mathieson v Burton (1970-1) 12 4 CLR 1 an d 12, 3 0 Mattos v Gibson [1843-1860] All ER Rep 803, 44 6 Midland Bank v Shepherd [1988] 3 All ER 17, 45 4 Mortensen v Peters [1906] 8 Fr (J) 93 at p99; 1 4 Scot LR 227; 43 Scot LR 872; Table of Cases xix*

4 BILC 754 (High Court of Judiciary, Scotland, 1906) , 22 1 Morviken, The [1983] 1 Lloyd' s Rep 1 , 41 4 Myrto, The [1977] 2 Lloyd's Rep 243, 42 7

National Carriers Ltd v Panalpina (Northern) Ltd [1981] AC 675, 45 7 Ng Ching Man v Ng Lai Wah and Others [1996 ] 4 HKC 448, 536 , 539, 542, 551,552, 554, 557, 558 Ng Fung Hong Ltd v ABC [1998] 1 HKC 213, 197 , 199, 201, 209 Ng Ka Ling v Director of Immigration [1999] 1 HKC 291, 69 , 78, 81 Norwegian Shipowners ' Clai m (Norwa y v US ) (1922 ) PC A 1 UNRIA A 307, 21 4 NZ Shippin g C o Ltd v Satterthwaite & Co Ltd (Th e Eurymedon) [1975 ] AC 154, 46 3

OTB v Au Sai Chak, Michael [1980] HKC 219, 46 0

Pacific Sout h (Asia ) Holdings Ltd v Million Unit y International Ltd [1997 ] 3 HKC 440, 46 9 Packlito Investment Ltd v Klockner East Asia Ltd [1993] 2 HKLR 39, 19 3 Padilla Chien Mateo v Chan Choi Hing [1997] HKLRD 539, 45 0 Paradine v Jane (1647) Aleyn 26, 45 7 Parker vSE Railway (1877) 2 CPD 416, 46 0 Parker v South Eastern Railway Co (1877) 2 CPD 416, 46 0 Pavey & Matthews v Paul (1987) 60 ALJR 150 , 448 , 474 People v McLeod 1 Hill 377 (NY) (1841), 21 4 Pettit v Pettit [1970] AC 777, 54 9 Photo Production Ltd v Securior Transport Ltd [1980] AC 871, 44 1 Photo Productions Ltd v Securior Transport Ltd [1980] 1 A C 827, 462 , 464 Plimmer v Mayor of Wellington (1884) 9 App Cas 699, 46 6 Polly Peck International pic, re [1996] 2 All ER 433, 35 8 Polorace Investments Ltd v Director of Lands [ 1997] 3 HKC 373, 47 0 Port Jackso n Stevedorin g Pt y Lt d v Salmo n & Spraggo n [1980 ] 3 Al l E R 257, 46 3 Prenn v Simmonds [1971] 1 WL R 1381 , 46 4

R v Director o f Immigratio n e x parte Li Jin-fe i an d other s [1993 ] 3 HKPLR 565 at p575, 22 8 R v Governor HM Prison Brockhill, ex parte Evans [1999] 2 WLR 103, 1 9 R v Keyn (Cockburn CJ in 1876), 223 , 228 R v R [1991] 3 WLR 767 [HL], 56 8 R v Tar n Yu k H a [1996 ] 3 HK C 60 6 (Hig h Court) ; [1997 ] HKLR D 103 1 (Court of Appeal), 35 4 Ramsden v Dyson (1866) LR 1 HL 129, 46 5 Robins v National Trust Co [1927] AC 515 and 519, 1 5 XX Table of Cases

Roseric Ltd v West River Development [1993] 2 HKC 404, 1 0 Royal Bank v Etridge (1998) TLR 1 7 August, 45 5 Royscot Trust v Rogerson [1991] 3 All ER 294, 45 2

SEC v MacDonald 699 F2d 47, 28 2 Shek Mei-ling v The Insider Dealing Tribunal (Civ App No 41 of 31 July 1998, unreported), 28 2 Smith New Court Ltd v Scrimgeour Vickers [ 1996] 3 WLR 1051, 45 2 Spurling v Bradshaw [1956] 2 All ER 121, 46 0 State, The v Bisket Uranguae Pokia [ 1980] PNGLR 97, 2 0 Steedman v Drinkle [1916] AC 275, 472 , 473 Stern v McArthur (1988) 88 ALR 413, 471 , 473 Sun Er-jo v Lo Ching an d Others [1996 ] 1 HKC 1 , 536 , 539, 542, 551, 552, 557,558 Surrey County Council v Breero Homes Ltd [ 1993] 1 WL R 1361, 546 , 547

Tai Hing Cotton Mill, [1986] 1 A C 80 and 108, 1 5 Thakrar v Home Secretary [1974] 1 Q B 684 at p701 (per Lord Denning), 222 , 228 Tito v Wadell (No 2) [1977] 3 All ER 179, 44 6 Torrens Aloha Pty Ltd v Citibank NA (1997) 14 4 ALR 89, 44 9 Treatment of Polish Nationals and Other Persons of Danish Origin or Speech in Danzig Territor y (Advisor y Opinion , 1931 ) (1932 ) PCI J se r A/ B n o 4 4 p24, 21 4 Trendtex Trading Corp v Central Bank o f Nigeria [1977 ] 1 QB 529 (per Lord Denning), 22 2 Triquet and Others v Bath (1764) 3 Burr 147 8 (KB) (per Lord Mansfield), 21 9 Turnbull & Co v Dival [ 1902] AC 429, 45 4

Union Eagl e Ltd v Golde n Achievemen t Lt d [1997 ] 1 HKC 173 , 469 , 470, 473

Vitol SA v Norelf Ltd [ 1996] 1 WL R 105, 43 9

Wachtel v Wachtel [1973] 1 Al l ER 829 CA, 588 . Waiford v Miles [ 1992] 2 WLR 174 , 44 4 Walton's Stores (Interstate) Ltd v Maher (1988) 76 ALR 513, 446 , 467, 468 West Ran d Centra l Gol d Mining C o v The King [1905 ] 2 K B 39 1 (pe r Lord Alverstone), 219,22 0 Westdeutsche Landesban k Girozentral e v Islingto n LB C [1996 ] 2 Al l E R 961, 47 5 White and Carter (Councils) v McGregor [1962] AC 412, 43 9 William Sindall Pic v Cambridgeshire CC (1993) 92 LGR 121, 44 8 Wong Kam-ming [1979] 1 All ER 939, 2 1 Table of Cases XXI

Wong Lai-ying v Chinachem Investment Co Ltd [1980] 1 HKL R 2, 457- 8 Woodar Investment Development Ltd v Wimpey Construction (UK) Ltd [1980] 1 All ER 572, 44 0 Woolfson v Strathclyde Regional Council (1978) 38 P&CR 521; 197 8 SC (HL) 90, 35 9 Wroth v Tyler [1974] Ch 30, 44 0

Yerkey v Jones (1930) 63 CLR 649, 454 , 456 Yeu Shin g Constructio n Lt d v Pionee r Concret e (HK ) Lt d [1987 ] 2 HK C 187, 46 0 Yeung Shu v Alfred Law & Co [1997] 2 HKC 153, 44 3 Yuen Sha Sha v Tse Chi Pan [1999] 1 HKC 731, 61 9

Zhejiang Provin g Garmen t Impor t an d Expor t C o v Siemsse n & C o (Hon g Kong) Trading Ltd [1993] ADRJT 183, 1 94 Introduction

Raymond Wacks

In 1989 , to mark the twentieth anniversar y o f the University o f Hong Kong's Faculty o f Law, a volume of essays was published.1 Th e book was an attempt, if not to prophesy, a t least to contemplate, the likely development o f our legal system i n th e decad e tha t wa s abou t t o unfold . Thos e te n year s hav e no w passed. Th e constitutiona l personalit y o f Hon g Kon g has , o f course , bee n transformed from British colony to Special Administrative Region (SAR) of the People's Republic of China (PRC). And, perhaps less portentously, the Faculty of Law now commemorates its thirtieth birthday with this attempt to reflect o n the consequences o f ou r new status . What are its effect s o n our law an d legal system? Can the improbable doctrine of 'one country, two systems' be made to work? What is the prognosis for the common law in this uncertain environment? Are signs of change already evident in specific branches of the law? These, and many other, questions are the stuff o f the pages that follow. The lega l controvers y currentl y envelopin g Hon g Kon g (concernin g th e right o f abod e and the referral o f the matter for interpretatio n t o the Standing Committee o f th e Nationa l People' s Congress ) wil l hav e fade d b y th e tim e these word s ar e published . Indeed , i t i s no t unlikel y tha t i t wil l hav e bee n

1 Raymon d Wacks (ed), The Future of Law in Hong Kong (Hong Kong: Oxford Universit y Press, 1989) . For a contemporaneous glanc e backward a t the previous decade, see Raymond Wacks (ed) , The Law in Hong Kong: 1969-1989 (Hon g Kong : Oxfor d Universit y Press , 1989). 2 Raymond Wacks

overshadowed b y new calamities that arise as the fledgling SA R learns to fly. The issue nevertheless raises certain fundamental question s about the future o f the rule of law in Hong Kong, and is discussed in some of the chapters in this book. I n the earlie r volume , I asserte d tha t i n th e fac e o f th e vicissitude s o f politics and the fragility o f politicians' commitments , constitutional guarantee s represent th e most palpable, o r a t an y rate the least precarious, expressio n o f hope in the arrangement of power. But, I would now wish to stress the obvious need for a judiciary that strenuously resists political pressure and defends both of the rights enshrined in the Basic Law and the autonomy it vouchsafes t o the SAR. Understandable cynicis m greeted the Basic Law's promise to Hong Kong of a 'hig h degre e o f autonomy' . Ye t th e acrimon y tha t characterise d th e last phase o f British rule has been replaced by an increasingly cordia l relationship with China, facilitated n o doubt by the sympathetic (some might say, quiescent) posture adopted by Chris Patten's successor, Tung Chee Hwa, towards the PRC administration. But doubts remain. The facility wit h which our political system has been disengaged fro m it s colonial yoke is no t reproduced i n th e cas e o f th e legal order . Par t 1 of thi s book considers a number o f pressing problems that lie at the heart of the Basic Law's promis e o f lega l continuity. The unequivocal declaration , i n Articl e 8 , that th e 'law s previousl y i n forc e ... shal l be maintained ' attract s a host o f questions abou t the scope, content, an d consequences o f post-1997 law. Does the Basic Law, for example, freeze the common law as it stood at midnight on 30 June 1997? Peter Wesley-Smith argues in Chapter 1 that such an interpretation would be 'disastrous ' fo r ou r system. It would stultif y th e development o f the law, by emasculating the judicial function. Yet this appears to be the 'excruciating dilemma' facin g ou r judges: i f th e commo n la w i s t o be confine d t o it s pre- handover incarnation it will in time grow out of date. It will become a 'parce l of petrified precepts'. Tracing th e history o f constitutionalism fro m th e dawn o f British colonia l rule to the present, Benny Tai concludes in Chapter 2 that the people of Hong Kong hav e bee n deprive d o f th e opportunit y t o decid e thei r ow n fate . Sinc e political freedom and autonomy are fundamental component s of consitutionalism, the dependent status of the territory has stunted the growth of democracy. But, liberty, h e argues , must b e fough t for , an d thi s struggl e i s likel y t o continu e within the framework o f 'one country, two systems'. One country, two systems, but not necessarily, a s H L Fu demonstrates in Chapter 3, one country, two hostile systems. Nothing in our new constitutional dispensation implies an antagonistic relationship, especially sinc e mutual legal assistance i s vita l t o sustainin g an d promotin g co-operatio n betwee n th e two 'equally autonomous legal regimes'. This is a view echoed in the criminal context by Janice Brabyn in Chapter 4. She analyse s th e numerou s difficultie s besettin g th e pat h t o th e goa l o f international co-operation in respect of mutual legal assistance, extradition and Introduction 3 prisoner transfe r t o an d fro m th e SAR . Sh e nevertheles s conclude s tha t th e autonomy Hon g Kong enjoy s i n this field provide s grounds fo r optimis m that these problems will be resolved. Though it may be subject to the influence o f Chinese law, our system needs space t o breathe . Maximu m autonom y i s imperative . Henc e i n Chapte r 5 Li Yahong suggest s tha t th e current distributio n o f legislativ e authorit y betwee n the Central People's Government and the SAR, contains a number of grey areas that appear to vest excessive control in the centre. She proposes a move toward a federa l structur e tha t woul d facilitat e greate r law-makin g power s fo r Hon g Kong. Xian Ch u Zhan g consider s th e questio n o f th e mutua l recognitio n an d enforcement o f intra-Chin a arbitra l award s in Chapte r 6 . Afte r reviewin g th e features o f the system of arbitration in both Hong Kong and the Mainland and their application , h e stresse s th e nee d fo r urgen t refor m i f a crisi s i s t o b e averted. Establishin g a new mechanis m fo r mutua l enforcemen t present s no t only legal, but als o political challenges . But question s concernin g th e precise model fo r co-operation , th e structur e o f th e arrangemen t t o be made, an d the permissible extent of the application of certain judicial doctrines, cannot justify procrastination. Less clear is the relationship between our law and increasingly significan t customary internationa l law. Shen Jianming, afte r examinin g in Chapter 7 the status of these norms in both United Kingdom and Chinese law, finds a disturbing ambiguity in the law of Hong Kong. He suggests that we have little to 'inherit ' from the pre-1997 common law or the Chinese system, and urges instead that a fresh approac h b e adopte d locally , on e tha t recognise s th e prevalenc e o f international law over conflicting municipal law. Part 2 o f the book examines variou s aspect s o f Hong Kong's bedrock — the economi c system . Th e stoc k marke t i s a central featur e o f th e territory' s financial anatomy , perhaps its heart. The continued integrity o f the Hong Kong Stock Exchange, the world's seventh largest, requires a sophisticated regulatory framework tha t is able to ensure not only its credibility but, as Katherine Lynch demonstrates i n Chapter 8 , its very future. Th e recent economic turbulence in Asia ha s intensifie d th e nee d fo r control s ove r a whol e rang e o f corrosiv e practices, including market manipulation, cronyism and corruption. She examines the pervasive problem of insider dealing in Hong Kong, surveying the law and policy that seek to check this complex, intractable phenomenon, proposing the comprehensive reform o f both. Similarly, it is critical that banking and capital markets be properly regulated if Hon g Kon g i s t o maintai n it s economi c achievements . Josep h Norto n an d Douglas Arner demonstrate in Chapter 9 how domestic and international law in this field have developed dramatically over the past decade, and its consequences for legal education. In Chapter 10 Anne Carver and John Whitman seek to show how government intervention in the stock market in August 199 8 undermined the foundations o f 4 Raymond Wacks the Basic Law. The authorities' argumen t that Hong Kong law did not apply to this activity has damaged the doctrine of legality an d requires a reconstruction of the broad policy objectives o f our constitution so that they might conform to social and economic realities. There is, Anna Tarn argues in Chapter 11, a n urgent need for the reform of Hong Kong' s compan y law . I t i s n o longe r appropriat e t o loo k t o Englis h legislation: it s powerfu l swa y i s no w inappropriate . The recommendations o f the recen t Companie s Ordinanc e Revie w Repor t ough t t o b e adopted . Th e Report exhort s th e legislatur e t o enac t a comprehensiv e streamlinin g o f th e unwieldy, an d sometimes anachronisti c aspect s o f compan y la w an d practice. She acknowledges , however , tha t in Hong Kong's presen t economi c climate , the busines s communit y ma y no t b e wel l dispose d t o expendin g energ y o n embracing a new corporations regime. The Basi c La w provides , t o th e relie f o f taxpayers , tha t Hon g Kong' s present revenu e polic y (lo w an d simple ) shal l continue . Ye t i n Chapte r 1 2 Richard Culle n argue s tha t a plethor a o f force s appea r poise d t o impos e significant changes on this regime. In particular, economic factors, demography and economi c turbulenc e — i n Hon g Kong , o n th e Mainland , an d i n Asi a generally — are likely t o result i n new patterns o f governmen t spendin g and , hence, taxation. He shows how any reform o f the tax system will have political consequences: more fiscal accountability leads inexorably to greater democracy. The maintenanc e o f Hon g Kon g a s a fre e por t i s a n equall y crucia l characteristic o f it s economi c vitality . Rapidl y expandin g internationa l trad e with mainlan d Chin a an d Hon g Kon g ha s generate d importan t change s t o maritime an d admiralt y la w i n bot h jurisdictions . Moreover , a s Feli x Cha n shows i n Chapte r 13 , China's boomin g shippin g industr y i s a catalyst i n this process, drawing th e two legal system s int o close r interaction. H e provides a comprehensive analysi s o f th e principa l feature s o f thi s developmen t which , like many branches of the Hong Kong law, has both shaped and been shaped by the extraordinary pace of economic growth. The law of contract, backbone of commercial practice, has not been immune to this expansion. In Chapter 14 , surveying the last three decades of this branch of the law, Judith Sihombing discerns two words that capture the 'retrea t fro m rationality': unconscionability and uncertainty. The former has extended a helping hand t o plaintiffs , whil e th e latte r i s th e consequenc e o f th e numerou s developments sh e describe s tha t hav e displace d muc h o f orthodo x contrac t theory and practice. Nor has that specialist branch of the law of contract — labour law — failed to respond to the growing pains of Hong Kong's economic and political maturing process. These responses ar e considered by Wilson Chow an d Anne Carver in Chapter 15 . After describin g employmen t an d trade union law an d the majo r changes i n th e legislativ e framewor k an d thei r politica l repercussions , the y wonder whethe r th e architect s o f th e ne w rule s ma y b e creatin g a 'lega l dysfunctionalism between the expectations of the community and the legitimate Introduction 5 permitted en d result'. The y conclud e that the Hong Kon g model o f the social contract for employmen t and trade union law affords a firm foundatio n fo r the future. The shifts i n Hong Kong and mainland China's socia l values are traced in the essays that form Part 3 of this volume. For Albert Chen, who in Chapter 16, chronicles the long evolution of Confucian lega l culture, the Neo-Confucianis m that informs man y contemporary mainland debates contains the seeds of liberal democracy, the rule of law and the recognition o f human rights. The enactment of socia l an d economic reforms, h e believes, is likely t o engende r significan t moves toward greater constitutional transparency and legitimacy. Perhaps th e branc h o f th e la w tha t reflect s mos t exquisitel y th e metamorphosis i n cultur e an d more s i s famil y law : th e normativ e mirro r o f private life. In Chapter 1 7 Anne Cheung considers the extent to which judicial attitudes hav e approache d th e settlin g o f privat e famil y affair s i n th e publi c arena. Based on a study of two cases decided just before Hong Kong's return to China, sh e explore s th e 'narratives ' adopte d b y th e judges. Famil y harmon y and social identity, sh e remarks, were achieved largely because the trials were conducted in Chinese by Chinese judges, and a 'discourse playing out the entire complex materials and sentiments of culture and tradition' was activated. Yet, a s Bar t Rwezaur a claim s i n Chapte r 18 , ther e ar e othe r agent s transforming the family. Despite more than a century of dependence on English law and experience, there has in the last decade been a shift in official polic y in tandem with the end of colonial rule. In particular, the enactment o f the Bill of Rights Ordinanc e i n 1991 , an d th e extensio n t o Hon g Kon g o f tw o majo r treaties: the Convention on the Rights of the Child (in 1994) and the Convention on the Elimination o f All Forms o f Discrimination Agains t Women (i n 1996), have had a profound impact on the law of marriage, parent and child, children's rights, and th e la w o f divorce . H e conclude s tha t Hon g Kon g famil y la w i s likely to be dominated by concerns for gender equality and human rights within the family. The elusiv e ques t fo r equalit y continues , but , a s Carol e Peterso n acknowledges, Hong Kong has pursued it with remarkable vigour . In Chapter 19 she recounts the recent legislative actio n tha t now prohibits discriminatio n on ground s o f gender , pregnancy , marita l status , famil y responsibility , an d disability. I n addition , sexua l harassmen t an d harassmen t o n th e ground s o f disability hav e bee n outlawed . Th e establishmen t o f th e Equa l Opportunitie s Commission to assist in enforcing the legislation is a key institutional feature of this regim e which , whil e i t stand s i n nee d o f enlargemen t (t o includ e th e prohibition o f discriminatio n base d o n race, age , an d sexua l preference) , sh e regards as a significant achievement . A les s satisfactor y pictur e emerge s fro m Rod a Mushkat' s assessmen t i n Chapter 2 0 o f th e government's complianc e wit h anothe r se t o f internationa l norms — thos e tha t see k t o protec t th e environment . Afte r reviewin g thes e standards an d their applicatio n t o Hong Kong , sh e argues that , whil e there is 6 Raymond Wacks the political wil l t o halt th e destructio n o f ou r environment , economi c force s still appear to impede the adoption of a properly co-ordinated policy. The preservatio n o f Hon g Kong' s lega l syste m i s a n indispensabl e requirement o f almos t al l the reforms postulate d i n this book. The inculcation in our future lawyer s an d judges o f the values embodied in the common law is a sin e qu a no n o f thi s process. Moreover, a s Stephe n Nathanso n contend s i n Chapter 21, its achievement depends on the competence of our legal practitioners. Challenging orthodox models of legal education, he maintains that the solution lies in improving the quality of our teaching and curriculum. How secure is ou r new legal order ? The essays in this book, thoug h they cover a large terrain and proceed from a variety of standpoints, do suggest that there are few grounds for pessimism. The common law is a hardy plant, difficul t to uproot. The culture and traditions of our system, whatever its imperfections, seem destined to endure for the next ten years, and well beyond. Index

'act of state', 329-3 0 between mainlan d Chin a an d HK , adversarial systems, 538 , 592 183-210 Adaptation o f Law s (Intepretativ e foreign, differen t definition s of , Provisions) Ordinance, 7 4 191 Adoption Ordinance, 58 0 foreign, handling of, 195- 6 Advisory Committ e o n Lega l Educatio n arbitration and Conduct (ACLEC), 653 , 668 domestic, 19 0 Affiliation Proceeding s Ordinance (APO), 'friendly consultatio n and conciliation', 576 432 Age of Majority Ordinance , 46 4 international, 19 0 Aldisert, Professor Ruggero J, 19 9 international disputes , Chin a a world Allott, Anthony, 13,15,1 6 leader in settling, 43 1 American La w Institut e Principle s o f Arbitration (Amendment ) Ordinance , Corporate Governance, 34 8 189-90, 432 American Maritim e la w Association , Arbitration Law, 185,187,43 1 410 Arbitration Ordinance anti-discrimination laws, 481 , 497, 573, 'foreign arbitral awards' defined under, 574, 618, 624, 625 191 Anton Piller order, 43 0 Arbitration Rules 1994, 431,43 2 Application o f Englis h La w Ordinance , arbitration systems 10, 27, 29, 32, 229 Hong Kong, 189-9 2 arbitral awards mainland China, 184- 9 enforcement, 119-21 , 433 Asia, see under cultural values, financia l recognition and enforcement crises between HK and Taiwan, 20 1 Asian Development Bank, 29 0 6T2 Index

Association fo r Relation s Acros s th e Art 153 , 64 5 Taiwan Straits (ARATS), 11 7 Art 158, 177 , 178 Athens Convention 1974 , 41 1 Art 160, 30 , 86, 486 Australia, 155 , 263, 345, 380, 396, 428, central authorities ' relationshi p wit h 593 SAR, 17 4 Australian Constitution, 168,17 2 Chinese Constitution and, 99-10 0 autonomy, 40 , 67, 71, 79, 335 drafting of , 17 3 threats to, 89 , 402 economic provisions of, 334- 5 Aw, Sally, 75 , 127 independence o f H K revenues, 369 , 370, 374, 387, 402,409 Bank of China, People's, 296 , 310 may hinder solutions to environmental Bank o f Internationa l Settlement s (BIS) , problems, 64 3 305 no reference to customary international Banking (Amendment) Ordinance, 294 law, 21 2 Banking Ordinance, 293 , 294 ordinances contravening, 32 , 33 banking regulation, 290 , 293-6, 302 power to enter into foreign agreements, Bankruptcy Law (US), 36 0 211 Bankruptcy Ordinance, 34 9 power to interpret and amend, 16 4 banks, international, 291 , 292 Basle Capital Accord 1988, 291 , 294 Bartholomew, Geoff, 1 4 Basle Committee on Banking Supervision, Basic La w {see also Committee fo r th e 290, 291, 292, 299, 300, 301, 304 Basic Law), 66 , 67, 167, 316, 410 core principles developed by, 30 2 amendment of, 9 9 Belgium, 42 8 Annex III, 16 7 Bilingual Law s Advisor y Committee , Art 2, 33 5 353 Art 5, 17 2 bilingualism, in courts, 53 6 Art 8, 2 , 10, 23, 24, 138, 199, 437 Bill of Rights, 53,6 3 Art 13 , 17 4 bill of lading, 413 , 414,415-9, 461 Art 14, 17 4 rights of suit given to holders of, 417 , Art 17, 169-70 , 174 418 Art 18, 10 , 96,174,175 Bill o f Lading (an d Analogou s Shippin g Art 19, 231,23 2 Documents) Ordinance 1994, 417-9 , Art 20, 17 5 463 Art 22(4), 82 , 83, 178 Bill of Lading Ordinance, 414,46 2 Art 23, 126 , 170-2, 174, 492, 500 Bill of Rights Ordinance, 5 , 32, 63, 85, Art 24(3), 81,8 2 482,566, 568, 574, 575, 577 Art 27, 48 1 enactment of, 564 , 597 Art 39, 8 5 labour law endangered by, 48 1 Art 48, 17 0 repeal of sections of, 478,48 6 Art 49, 17 0 Bingzhi, Professor Zhao, 10 3 Art 67(18), 17 5 Birks, Peter, 658 , 659 Art 81, 2 2 Blackstone, Sir William, 21 9 Art 82, 15 9 boundaries agreement, 113- 4 Art 89(16), 17 5 Brazil, financial crisis, 290 , 299, 307 Art 95, 101,158,197,20 2 Bretton Woods system, 299 , 307 Art 107, 387 , 388 Buchananm James, 38 7 Art 108, 387 , 388 Buddhism, 53 1 Art 110, 335,33 6 Business Corporation s Ac t (Canada) , Art 112, 335,33 6 348 Index iip

Canada, 155,342,351,59 3 Chinese Constitution, 172,176 , 225, 513 capital gains tax Art 31, 166,16 9 defacto, 377 , 381, 383 Art 58, 16 7 introduction of, 39 9 Art 62(13), 38 8 capital marke t regulation , 290 , 296-8 , Art 89, 16 7 302-3 Art 100, 16 7 Cappelletti, Mauro, 19 9 Art 116, 16 7 carriage o f goods by sea (see also bill of Chinese customary law, 552 , 5$3 lading), 413 , 429, 461 Chinese customar y marriages , 552-3 , Central Provident Fund, 480- 1 555, 567 Cha, Laura, 32 6 Chinese Extradition Ordinance 1889, 32 , Chan, Johannes, 125 , 130-1 157, 158 Chan, Ruth, 59 2 Chinese language Chen, Albert, 103 , 125, 130,131, 181 use of in courts, 536,537,55 1 Chen, An, 19 3 use of in legislation, 353 , 354 Chen, Cecilia, 10 3 Chinese law, study of, 102- 3 Chen Guyan, 51 1 Chow Yei-ching, 27 5 Chen Zhongbiao, 40 5 CIETAC Arbitration Rules, revised, 186 , Cheng, Bertha, 49 9 193 Cheung Nim-chee, Francis, 280- 1 City University of Hong Kong, 649 , 653 Cheung Tze-keun g ('Bi g Spender') , civil judgments 75-6 Taiwan, recognitio n an d enforcemen t Chief Executive of, 20 2 environmental agenda, 64 2 civil law on government intervention in financial underdevelopment of China's, 522- 3 market, 31 7 Civil Procedure Law, 118,119,187,42 2 and Legislative Council, 91-3 , 170 civil service, 4 4 powers to direct financial institutions , Close Corporatio n Ac t (Sout h Africa) , 332-3 355, 356 proposed extensio n o f power s i n collective bargaining, 494 , 495, 497 financial emergency, 246 , 286 colonial courts, 44 , 49 selection of, 70-1,90,40 1 Colonial Remova l o f Prisoner s Orders , Child Abduction Act 198 5 (UK), 58 3 133 Child Abduction an d Custody Ordinanc e colonisation, 40- 1 (CACO), 583 , 584, 585 Committee fo r th e Basi c La w (CBL) , children, see under family law 169,177, 178 Children Act 1989, 57 8 common law China, see legal history, China Chinese, emerging of, 53 7 China International Economic an d Trade content of, 9-3 8 Arbitration Commissio n (CIETAC) , customary internationa l la w and , 185,186,207,208,431 229-31 China Maritime Arbitratio n Commissio n customary internationa l la w receive d (CMAC), 185,186,208,43 1 into, 21 6 China Securities Regulatory Commissio n cut-off dates , 10,11-5,2 3 (CSRC), 283,31 0 declaratory theory, 11- 5 Chinese Civil Code 1930, 552 , 554 dynamic version, 18-2 3 'Chinese commo n law' , emergenc e of , effect o f legislation on, 27-3 8 537, 545 erosion of spirit of, 53 7 Chinese Communist Party, 46 , 66, 129 in HKSAR, 10- 1 DPI Index

influence on China's legal system, 37 2 private company, 355- 7 judicial change, 11-2 6 reform, scop e for, 351-6 3 meaning of , 2 2 review of , 345-51 , 36 4 non-declaratory theory, 14- 5 North American approach to, 348,34 9 realist theory, 21,2 6 People's Republic of China, 34 9 retroactivity, 19-2 0 concubinage, 56 7 static version, 11 , 15-8 Confederation o f Trad e Union s (CTU) , wavicle theory, 2 6 488, 490 Common Professio n Examinatio n (CPE) , confidential price-sensitiv e information , 651, 660 240, 249, 251 Common Rules of Civil Law, 225 , 226 conflict o f law, 121- 5 Communist Revolution, Chinese, 51 3 Confucian lega l culture, 507 , 519-27 companies amnesties, 52 7 non-profit, 35 1 attitude to law, 521- 2 private, 35 1 civil law , underdevelopmen t of , public, 35 1 522-3 Companies Act 1862 , 34 2 clemency, 52 7 Companies Act 1929, 34 3 'Confucian humanitarianism' , 52 7 Companies Act 1948 , 343 , 346 future of , 530- 3 Companies (Consolidation ) Ac t 1908 , legislative authority, 520- 1 343 privileged groups, 52 6 Companies (Amendment ) Ordinanc e influence of Confucian ethics , 523- 7 1984, 34 3 sources of law, 519-2 0 Companies Ordinance, 342 , 347, 363 Confucianism, 506,511,512,53 5 review of , 343 , 345-7 attitude to law, 517-8 , 521-2 report on, 348-51,36 4 basic concepts, 514- 9 terms of reference, 347-8 , 366-7 doctrine of government, 51 8 s29, 35 1 family-based ethics , 515 , 524, 526 s69(lB), 34 4 filial piety, 518- 9 translation into Chinese, 35 4 five relationships, 515- 6 voluntary winding up, 36 2 hierarchical social order, 52 6 Companies Ordinance 1865 , 34 3 kinship, 52 5 Companies Ordinance 1911 , 34 3 legalisation o f Confucianism', 51 1 Companies Ordinance 1932 , 34 3 neo-Confuciansim, 53 1 Control of Exemption Clauses Ordinance, no concept of rights in, 51 7 436, 464 'ren', 51 4 Companies Registry, 362- 3 Confucius, 51 4 company charges, 350 , 354 constitutionalism, 53 0 company law, aspects of , 39-4 0 in HK, 341-6 7 development of, in Hong Kong, 40-9 3 bilingualism, 352- 5 contract law colonial legacy, 343- 5 availability of a remedy, 44 1 -3 consistency wit h othe r legislation , classical theory of , 43 5 361-2 contracts as 'letters', 43 6 corporate administration, 362- 3 economic duress, 449-5 1 foreign companies, 35 5 equity and contracts, 436 , 465-76 groups of companies, 357-6 1 estoppel, 436 , 446, 465-70 incorporated companies, capacity of formation, 436,441- 6 natural Derson. 351- 2 frustration. 457- 8 Index '8m fundamentalism, 436,459-6 4 Convention for the Protection of the Ozone good faith, 444- 5 Layer 1985 (Vienna Convention), 62 8 legislation affectin g contractua l Convention fo r th e Protectio n o f Worl d operations, 46 4 Cultural an d Nationa l Heritag e 197 2 lock-in/lock-out cases, 443^ 1 (World Heritage Convention), 62 8 misrepresentation, 448,451- 2 Convention for the Regulation of Whaling mistake, 436,447- 9 (International Whalin g Cxmi'ention) , mutuality, 445- 6 628 ^ non est factum, 45 8 Conveyancing an d Propert y Ordinance , objective theory, 43 5 441,446 prior negotiations, 46 4 co-operation i n crimina l matters , inter - promissory statement, 44 3 jurisdictional, 133-6 1 public policy considerations in, 47 6 application o f legislatio n t o foreig n remedies fo r breac h o f contract , jurdisdiction, 142- 3 436-7 disapplication of UK laws, 138-4 0 repudiation, 436,439-4 0 double criminality, 141- 2 repudiatory breach, 437-40 fugitive offenders, surrende r of, 145- restitution, 448,474- 6 8,157-60 terms of contract, 437 , 459-64 legislation, 137- 8 'ticket cases', 436,45 9 Legislative Counci l supervisio n o f uncertainty, 437,47 6 applications, 143- 4 unconscionability and contracts, 466 , maintenance an d development , of 467, 469,470-4, 476 relationships, 13 7 undue influence, 452- 7 mutual legal assistance vitiating factors, 436 , 446-58 between HKSAR and PRC, 157 - Convention on Biological Diversity 199 2 61 (Biodiversity Convention), 628 , 633, legislative provisions, 149-5 6 645 notification o f request s t o Centra l Convention o n th e Civi l Aspect s o f Government, 144— 5 International Chil d Abductio n (th e sources o f power s an d relationships , Hague Convention) , 583 , 584 , 585, 133-6 593 corruption {see also Independen t Convention o n th e Contro l o f Commission Against Corruption), 42 , Transboundary Movemen t o f 526 Hazardous Wastes and Their Disposal action against, 47,111- 3 1989 (Basle Convention), 62 8 Cote, J E, 13,1 7 Convention o n th e Eliminatio n o f Al l cross-border visits, 103- 4 Forms o f Discriminatio n Agains t Court of Final Appeal, 78-86,178-9,20 4 Women (CEDAW) , 5 , 564-6 , 568 , establishment, 6 2 572-4, 596, 604 courts, jursidiction of, restricted, 77-8 6 Convention o n Internationa l Trad e i n credit risk, 29 1 Endangered Species of Wild Fauna and Cretney, S M, 56 9 Flora 197 3 (CITES), 62 8 crime, confiscatio n o f proceed s of , Convention on Limitation o f Liability for 154-6 Maritime Claims 1976 , 411,41 2 Criminal Law, PRC Convention o n the Prevention o f Marine provisions againstinsiderdealing, 28 4 Pollution b y Dumping o f Wastes an d criminal matters , see co-operatio n i n Other Matter s 197 2 (th e Londo n criminal matters, inter-jurisdictional Convention), 62 8 criminal suspects, see rendition wm Index cultural values disability vilification, 61 7 Asian, 505 , 506, 532 discrimination {see also anti-discrimination Chinese, traditional , i n famil y la w laws; sex discrimination), 59 5 cases, 535-6 1 age, 62 2 culture, 50 5 disability, 612- 6 as factor in ideological struggles, 50 6 in employment, 602 , 613-5, 623 Cultural Revolution, 373 , 389, 513 family status, 60 2 customary international law marital status, 60 1 change o f sovereignty , impac t of , private social clubs, 602- 3 228, 230 race, 622- 3 common law and, 229-3 1 sexuality, 62 2 effect o n political sub-divisions, 21 5 dispute resolution on environmental protection, 628-3 1 Chinese attitudes towards, 54 0 incorporation, doctrine of, 219-2 4 District Boards, 51,5 6 at international level, 212- 6 documents lack of local practice, 22 8 notarisation, 106- 8 less-than-general customar y rules , service, 108-9,154 , 205 216 Dong Zhongshu, 511 , 515 at national level, 216- 8 'double play', 31 9 own constitution or municipal laws no double taxation arrangement, 11 4 defence t o failure t o compl y with , Draft Declaration of the Rights and Duties 212, 233 of States, 21 3 restrained by Basic Law, 231 , 232 Draft Maritim e Litigatio n Specia l rights and duties, 21 2 Procedures, 429,43 0 'self executing', 23 3 Drug Trafficking (Recover y of Proceeds) stare decisis , doctrin e of , 222 , 223, Ordinance, 138 , 141, 143, 154-6 224, 229 Dworkin, Ronald, 24- 5 status of , in Chinese law, 225- 7 economic capture theory, 318- 9 in HK law, 227-3 4 economic law, evolving notion of , 307 , in UK law, 218-2 5 308 transformation, doctrine of, 219-2 4 'efficient market' , 327- 8 Electoral Provision s (Miscellaneou s Da Kai, 20 3 Amendments) (No 2) Ordinance, 48 9 Daoism, 53 1 electoral reform, 55- 7 Dato Tan Leong Min, 27 9 electronic trading systems, 259-6 0 Davies, Peter, 27 9 Employee's Right s t o Representation , Davies, Michael, 50 1 Consultation and Collective Bargaining Democratic Party, 395,49 9 Ordinance, 493- 5 democracy an d democratisation {see also Employees Compensatio n Ordinance , representative government) , 400 , 480 401,530,531,532,533 employment, discriminatio n in , 602 , demographics, Hong Kong, 369 , 386 613-5, 623 Deng Xiaoping, 165,18 0 employment law, see labour law derogation of liabilities, 413- 4 Employment (Amendment ) (N o 4) Dicey and Morris, 32 9 Ordinance, 493,49 6 Disability Discriminatio n Ordinance , Employment an d Labou r Relation s 480, 612-5, 621 (Miscellaneous Amendments ) disability harassment, 616- 7 Ordinance, 491,49 5 Index unii

Employment Ordinance, 48 0 family enforcement as critical socio-economic unit, 38 4 arbitral awards, 183-21 0 ethical value of, 51 5 judgments and arbitral awards, 118 — family law, 563-9 4 21 age of majority, 581- 3 English Lega l Practic e Cours e (LPC) , cases, traditiona l Chines e value s in , 662, 664 535-61 U 1 Enlightenment, The, 505 , 530, 531 child abduction, 583- 6 Enright, Michael, 33 3 child care and protection, 578-8 1 Environmental Impac t Assessmen t children, legal equality of, 575- 8 Ordinance, 636,64 0 children's rights, 574— 5 environmental law , see internationa l divorce, 564,586- 9 environmental law divorce law , effec t o f publi c opinio n Equal Opportunitie s Commission , 598 , on, 586- 9 604,611,612,621,622, effect o f CEDAW on, 572- 4 establishment, 596,59 9 equality in marriage, 565- 8 role of, 618-2 1 marriage, 564-7 2 equal opportunities law, 595-62 5 mediation, 564,589-9 3 development of in HK, 596- 9 non-marital children, 576- 8 enforcement, 618-2 1 spouses, economic rights of, 568-7 2 reform, 621- 5 Family Law Act 1975 (Australia), 58 9 estate duty, 380- 1 Family La w Refor m Ac t 196 9 (UK) , Estate Duty Ordinance (EDO), 380 , 381 582 European Convention o n the Transfer o f Family Statu s Discrimination Ordinance , Sentenced Prisoners, 13 9 573, 596, 600-5 European Community, 34 2 exemptions from, 60 6 evidence federalism assistance in taking of, 151- 2 distinguished fro m 'on e country , tw o powers t o provid e o r reques t takin g systems', 16 5 of, 13 4 legislative power s institutionalise d taking of, 109-1 3 under, 179-8 1 Evidence Ordinance, 13 4 Federation of Civil Service Unions, 48 8 evidence preservation orders, 43 0 Federation of Trade Unions (FTU), 488 , Exchange Fun d Investmen t Company , 490 The, 330-1,33 8 Felstiner.WL, 53 8 Executive Council (HKSAR), 37 2 fieri facias, writ of, 42 8 Executive Council (HK), 60 , 73-4 financial crises, 29 0 Chinese residents appointed to, 4 2 Asian, 239 , 241, 305, 306, 307, 321, reform of , 5 9 324, 390 executive led government, 43- 4 HK, 239,241-9 , 293, 390-1 expenditure, government, 38 2 sovereign debt, 29 1 extradition financial law , public, see public financia l agreement betwee n mainlan d Chin a law and Taiwan, 117- 8 financial markes powers and relationships, 13 3 competition in, 29 1 HK government as major shareholder , fa ('law'), 508,509,510,512,52 1 247-9, 325 Factories an d Industria l Undertaking s HK government intervention in, 243 - Ordinance, 48 0 6,315-9 m Index legality of, 334- 8 gross domestic product (GDP), 382 , 393 ideal of 'efficient' market , 327- 8 Group of Seven, 290 , 298, 301 market manipulation, 326- 7 Group of Ten, 290 , 298, 300 new operating environment, 292- 3 Grundnorm, 12 5 regulation and supervsion, 290 , 293- Guangdong, 64 4 304, 321-7 'guoji guanli', 226 , 227 conflict of interest, 32 5 HK government seeking to increase Hague Convention on the Service Abroad control over, 331- 3 of Judicia l an d Extrajudicia l review of HK, 242-3 , 296, 333-4 Documents i n Civi l o r Commercia l turmoil in HK, 239,241-2,293,296 , Matters (th e Hagu e Convention) , 319 108-9 Financial Services Bureau, 24 6 Hague Rules 1924 , 41 1 Finnis, John, 25- 6 Hague-Visby Rules 1968, 411 , 412, 413 fiscal reserves, 385- 6 Hamburg Rules 1978, 41 1 flags flow n b y ship s registere d i n Han dynasty, 51 1 HK, 407 , 409, 426 Hartmann Working Group, 59 1 Fok, Timothy, 12 9 Hay Davidson Report, 262-3 , 321 Foreign Economic Contracts Law, 22 5 Healy, Tim, 31 9 foreign judgments (see also arbitral awards) 'HerstattRisk', 30 5 recognition and enforcement of , Heung Yee Kuk, 60 4 in mainland China, 42 2 Hewitt, Phillipa, 59 2 in Hong Kong, 42 8 Heymann, Philip B, 9 7 Foreign Judgment s (Reciproca l hijacking Enforcement) Ordinance, 42 8 agreement betwee n Mainlan d an d Foreign Marriage Ordinance, 3 2 Taiwan, 116- 7 free port, Hong Kong as, 40 6 'Himalaya' clause, 461 , 463 France, 42 8 Ho, Betty, 10 3 Friedman, Milton, 24 4 Home Ownership Scheme, 57 1 fringe benefits, 378- 9 Hong Kon g Cod e o n Takeover s an d fugitive offenders, see rendition Mergers, 26 6 Fugitive Offenders Ordinance , 138 , 140, Hong Kon g dolla r 'peg' , see linke d 141,143, 145- 8 exchange rate functional constituencies, 51,56,624,62 5 Hong Kon g Future s Exchang e (HKFE) , labour related, 47 9 242, 256, 257, 297 Fung Chi-wood, 58 8 Hong Kong-Guangdon g Environmenta l Fung, Daniel R, 97,128,16 3 Liaison Group, 64 2 Hong Kon g Internationa l Arbitratio n Germany, 428,58 0 Centre (HKIAC), 189 , 431, 593 German Constitution, 168,21 7 Hong Kong Jockey Club, 38 5 Ghai, Yash, 99 , 108, 131,179, 334, 336, Hong Kon g an d Kowloo n Trad e Unio n 338 Council (TUC), 488,49 0 globalisation, 290 , 314, 505 Hong Kong law goods an d service s ta x (GST) , 383 , status o f customar y internationa l la w 396-8 in, 211-3 4 Gower, 34 2 study of, 10 3 Greenland Hong Kon g Monetar y Authorit y as model o f autonomous region under (HKMA), 239 , 242 , 296 , 302 , 310 , unitary system, 18 1 325, 331, 338, 388 Index «E

currency board administered by, 39 1 information established, 29 4 'likely materiall y t o affec t shar e guidelines, 248,29 5 price', 27 2 speculators detected by, 31 9 'not generally known', 271- 2 Hong Kong Police, 12 7 'inside information ' i n China , Hong Kong Securities Clearing Company definition of , 28 3 (HKSCC), 24 2 'insiders', defined, 268^9 / i Hong Kong Shipping Register, 40 7 in China, 28 3 V- Hong Kon g Societ y o f Accountants , legislation 360, 361 development of, 260- 7 Hong Kon g Specia l Administrativ e reform of, 267-7 6 Region (HKSAR) persons connected wit h a corporation, legislative relationshi p wit h Centra l 268-9 [Government], 163-8 1 prevalence in HK, 254-6 0 Hongkong an d Shangha i Bankin g 'profit gained' from, 281- 3 Corporation,' 29 6 protection agains t i n HK , reform s Housing Authority, 57 1 necessary for, 285- 8 housing policy, 375 , 385, 394 regulation of, 240-1,251- 4 Hsu,BFC, 31 9 arguments against, 253^ 1 human rights , 45 , 48, 63^1 , 530, 532 , in China, 283- 5 533, 574 policy reasons for, 251- 3 Asian cultural values, 50 6 'relevant information', defined , 269 - HKSAR government attitude towards, 70 87 'specific information' , defintio n Huntingdon, Samuel, 50 6 of, 270- 1 Hwang Chou-shien, 26 9 transactions exempt from, 274- 6 Insider Dealing Tribunal, 240 , 250, 261, illegitmacy, 575- 7 263, 276-83 in personam approach to s23 Orders, 281- 3 maritime claim , require d b y China' s evaluation of evidence by, 277- 8 legal system, 42 0 inquisitorial nature of, 2 7 8-81 in rem, 42 8 procedures, 28 7 concept no t recognise d b y Chines e standard of proof required by, 27 7 legal system, 420 , 429 information define d i n ruling s by , income tax, 39 9 271-4 Independent Commissio n Agains t insolvency, 349 , 358, 360, 361, 362 Corruption (ICAC), 109-13,25 7 Insolvency Ordinance, proposed, 36 1 India, 53 1 Interpretation an d Genera l Clause s Indonesia, 263,299 , 390 Ordinance, 29 , 37, 328-30, 353 Inland Revenue Department, 37 4 International Associatio n o f Insuranc e Departmental Interpretatio n an d Advisors (IAIS), 301 , 303, 304 Practice Note s (DIPNs) , 376 , International Conventio n fo r th e 379 Prevention o f Pollutio n b y Ships , Inland Revenue Ordinanc e (IRO) , 374 , 1972, 62 8 376-7 International Conventio n o n Salvag e insider dealing, 316 , 322 1989, 41 1 defined, 240,249-5 1 International Convention on the Unification information abou t th e company , of Certai n Rule s Concernin g Shi p 273-4 Collisions 1910, 41 1 6S0 Index

International Covenan t o f Economic , duty of, 540 , 557 Social and Cultural Rights (ICESCR), in giving a judgment, 53 9 48,482 role i n implementin g internationa l International Covenan t o n Civi l an d environmental norms, 64 8 Political Rights (ICCPR), 48 , 63, 84- task of, 53 6 6, 130, 481-2, 486, 597 judicial assistance agreements international environmental law, 627-4 8 coverage of, 20 5 domestic application to HK, 631- 5 enforcement o f arbitra l award s by , enforcement o f internationa l norms , 203, 204, 205 638, 648 judicial judgments (see also narratives), implementation in HK, 635-4 2 536-7, 542 legal framework, 628-3 1 co-operative schem e t o enforce , principles and rules, 628-3 1 lacking, 20 0 International Labour Organisation (ILO), judicial review, 54 , 83, 337-8 480, 492 essential to maintenance of autonomy, international law , see customar y 79 international law International Maritim e Organisation , Kadoorie family, 25 8 410 Kelsen, 125 , 168 International Monetar y Fun d (IMF) , Khan-Freund, Otto, 478 , 479 290,301,317,318 Koo Chen-fu International Organisatio n o f Securitie s Krugman, Paul, 24 4 Commissions (IOSCO) , 298 , 300-1, Kyoto Protoco l t o th e Framewor k 302-3, 304 Convention o n Climat e Chang e 199 7 'international practice' (Kyoto Protocol), 628 , 633, 645 meaning of in Chinese statutes, 22 6 international standards , see under public Labour Advisory Board, 497-8 , 500 financial law Labour Department, 49 8 Ireland, 59 3 labour law, 477-50 1 Irvine, Lord, 31 6 foundations of , 480- 7 Israel, 42 8 HKSAR restrictions , impac t o n Italy, 428,58 0 development of, 496- 7 the ideology of, 481-2,48 7 Jao, Y C, 33 2 legal architecture , reconstructio n of , Japan, 317,389,396,506,58 0 479 Jiang Zemin, 180 , 283, 402 politics and, 487-9 2 Jin dynasty, 51 1 trade union voice in legislature, impact Joint Declarationof the Government of the on development of, 493- 6 United Kingdom o f Grea t Britain and land tenure, 37 5 Northern Ireland an d the Governmen t Lao Siguang, 53 2 of the People's Republi c o f China on Lau Chin Shek, 499,62 4 the Questio n o f Hon g Kon g (Join t Lau Wai Hing, Emily, 127 , 497,499 Declaration), 386-7 , 406, 437 law, politicisation of , 61 , 74-7 Art III, Annex I, 13 7 Law Reform Commission, 581,587,58 8 Joint Forum on Financial Conglomerates, Sub-Committee on Insolvency, 36 0 301, 304 Law Refor m (Miscellaneou s Provision s judgments, enforcement of , 118-2 1 and Mino r Amendments ) Ordinance , judges 567-8 Chinese image of, 55 1 Lee Cheuk Yan, 49 9 Index «t

;e Chu-ming, Martin, 31 7 Legislative Council (HKSAR), 163,173 , :e Kai Ming, 49 9 400 «Ming-kai, 127- 8 Chief Executive and, 91- 3 ;e Shau-Kee, 25 8 labour-related members, 48 9 ;al codes, China, 507 , 519 limitations on members, 72- 3 Canons of Law ('Fajung'), 50 9 rules of procedure, 496- 7 Qingcode, 519,525,52 6 supervision o f applications'ffo r mutua l Tang code, 512 , 513, 519, 521, 525, assistance and rendition, 143- 4 526, 527 Legilsative Council (HK), 43-4 , 51, 55- written, 509,51 9 7,371 ;al education, 103 , 290, 649-70 Chinese residents appointed to, 4 2 attitude towards LLB, 65 8 labour-related members, 48 9 curriculum design, 663-5 , 669 restructured, 5 8 education-is-research, 658-6 0 struggle wit h Provisiona l Legislativ e global, 313,31 4 Council, 493- 6 implication of finacial law for, 311- 4 Legislative Counci l (Power s an d liberal-legal education, 653- 8 Privileges) Ordinance, 5 3 repercussions o f professiona l legislative powers programme focus, 661- 2 arbiter o n jurisdictional disput e over , skills trainin g an d continuou s 176-9 assessment, 662- 3 division o f Centra l an d HKSAR , legal history, China, 506 , 507-14 172-6 'Confucianisation o f law', 511 , 523 . exten t of HKSAR's, 169-7 2 Confucians, 510,51 2 institutionalised unde r federalis t contemporary assessment of, 527-3 0 system, 179-8 1 legal scholarship, 51 1 source of HKSAR's, 164- 7 Legalist school, 510 , 512 Legitimacy Ordinance, 55 8 legal interaction legitimisation, 557,55 9 between Hon g Kon g an d mainlan d Leninism, 372 , 373, 513, 529 China, 95-13 2 Lesser Developed Countries (LDC) legal sovereignty, 97 , 123 sovereign debt crisis, 29 1 legal system, Hong Kong, 130 , 371 Letters Patent, 5 4 independence of, 9 6 retrospective amendment of, 6 2 bilingual, 353,36 3 Leung, Elsie, 43 3 common law influence on, 37 2 li ('rites and norms o f propriety'), 508 , legal system, Mainland China 509,511,521 cultural influences on , 12 9 Li Ka-shing, 258 , 262 in re m concep t no t recognise d liberalism, 53 3 by, 42 0 Licentiate i n Professiona l Lega l Studie s legality, doctrine of, 315 , 316 (LicPLS), 66 8 legislation, see legislation , UK ; Limitation Ordinance, 54 5 ordinances; title s o f individua l acts , linked exchang e rate , 242 , 319 , 333 , laws and ordinances 391, 392, 393, 394 legislation, UK Liu, Pricilla, 57 9 Acts of Parliament, 33- 8 Loh, Christine , 599 , 601 , 606 , 621 , application of, 27- 8 624 disapplication of, 138-4 0 LokKinWah, 198,20 0 removal of, 29-3 1 London Stock Exchange Rules, 325- 6 legislative autonomy, 163,16 4 Lynch, Katherine, 316,31 9 em Index Macao, 12 4 Misrepresentation Ordinance , 436 , 452, Malaysia, 155,317,396,46 9 464 Mackinnon, Catharine, 60 7 Model Busines s Corporation s Ac t Mandate of Heaven, 508 , 518 (US), 34 8 Manadatory Providen t Fun d Scheme s Model Cod e o f th e Stoc k Exchang e o f Ordinance, 480,48 1 Hong Kong Listing Rules, 26 6 Mao Zedong, 372 , 389 money laundering, 305- 6 thought, 51 3 Morgan, Robert J M, 20 1 Mareva injunctions, 43 0 Morris, Dicey and, 32 9 Maritime Cod e o f th e PRC , 410-4 , multimodal transport, 412 , 429 423 Mushkat, Roda, 32 9 maritime courts, Chinese, 419,43 0 Mutual Assistance Scheme, 109 , 112 maritime injunctions, 43 0 mutual legal assistance, 95 , 97-8, 100-1 maritime law between HKSAR and PRC, 157-6 1 Admiralty jursidication in HK, 427- 8 conflict of law and, 121- 5 arrest o f ship s i n mainlan d China , international law model, 97- 8 419-23 prosecutorial model, 9 7 interaction between HK and mainland source of power to act, 135- 7 China, 40 6 Mutual Lega l Assistanc e Ordinance , reforms in, 405 , 410-19,429-34 138,140, 141, 144,149-56 ship financing in mainland China, 423- 6 narratives inHK, 426- 7 alternative approach to construct, 56 0 status of ships registered in HK, 406 - judicial, 537 , 539^-0, 556 10 mapping of, in family disputes, 541 - market manipulation, 326- 7 61 Marriage an d Childre n (Miscellaneou s National People' s Congres s (NPC ) (see Amendments) Ordinance, 56 6 also Standin g Committe e o f th e Marriage Ordinance, 56 8 National People's Congress), 16 6 Marriage Reform Ordinance, 55 2 legislative competency, 9 9 Marxism, 372 , 513, 529 national reunification, 165,17 9 material, productio n o f assistanc e i n with Taiwan, 18 0 foreign jurisdiction, 15 3 Neoh, Anthony, 298 , 323 Matrimonial Cause s (Amendment ) New Chin a New s Agency , see Xinhu a Ordinance (MCAO), 565 , 588 News Agency Matrimonial Cause s Ordinanc e (MCO) , New Territories, 604 , 605 565, 590 land inheritance, 59 6 Matrimonial Proceeding s (Amendment ) rural elections, 60 3 Bill, 59 1 New York Convention on the Recognition Matrimonial Proceeding s an d Propert y and Enforcemen t o f Foreig n Arbitra l Ordinance (MPPO), 567 , 569, 583 Awards (Ne w Yor k Convention) , Memorandum o f Understandin g o n th e 119, 187 , 188 , 189 , 191 , 196-8, 206, Arrangement fo r Reciproca l 209, 433 Enforcement o f Arbitra l Award s New Zealand, 342 , 345, 380, 428 1999, 43 3 New Zealand Companies Act, 348 , 360 Merchant Shippin g (Registration ) Ng, Margaret, 32 8 Ordinance, 407,42 6 non-profit companies, 35 1 Mexican financial crisis, 290 , 298, 299, North America 301, 305 approach to company law, 348 , 349 Index 6Ba notarization, 106- 8 common examinatio n for , i n HK , Nottle, Robert, 32 3 649, 665-7 Preliminary Workin g Committee , 57 , Official Language s (Amendment ) 490 Ordinance 1987, 35 3 Preparatory Committe e o f th e HKSAR , Oliver, Dawn, 654 , 657 57, 68, 490 Ombudsman, 53,64- 5 prisoner transfers, see rendition f 'one country, two systems', 65-71 , 79, private companies, 35 1 180, 238 private members bills, 479 , 493-6 distinguished from federalism, 164— 5 Privy Council , Judicia l Committe e of , implications fo r mutua l lega l 44 assistance, 121- 5 profits tax, 374 , 375-7, 398 mutual legal assistance under, 100- 1 property tax, 374 , 379-80 as reunification strategy , 165 , 179 Protection o f Wome n an d Juvenil e order for sale, 427- 8 Ordinance (PCJO), 579 , 585 ordinances Protocol o n Substance s tha t Deplet e th e direct repeal, 31- 2 Ozone Layer 1987 (Montreal Protocol), later discovere d t o contraven e Basi c 628 Law, 3 3 Provisional Legislativ e Council , 67-9 , non-adoption, 32- 3 70, 125, 242, 371, 481, 490 overseas investment struggle with last colonial Legislative rule of law promoted by, 12 9 Council, 493- 6 suspension of labour laws, 477 , 491, Palmer, Professor Michael, 10 2 498 Pang Kam-chi, Cammie, 28 0 Provisions Concerning Economic Contract Pang Lun Kee, Clifford, 25 1 Arbitration, 18 4 Park, Andrew, 12 , 13,15 public accountability Pascutto, Ermanno, 34 7 Executive and, 315-3 9 Patten, Christopher, 55 , 65 public financial law electoral reform s by , 56 , 59 , 371, application to HK government, 328 - 489, 490, 624 32 Pegg, Leonard, 58 9 development of, 289-90 , 307-8 People's Bank of China, 296 , 310 in HK, 293-8 , 308-10 People's Liberation Army, 12 4 international principle s an d People's Republic of China (PRC) standards, 298,303- 7 conflict with Taiwan, 38 9 modernisation of, 291- 8 economy, 238,28 3 new operating environment, 292- 3 threats t o fisca l independenc e o f non-traditional systemi c risks , HK, 388-9 0 304-7 PRC Constitution, see Chinese Constitution in PRC , H K interactio n with , 309 - Personal Data (Privacy) Ordinance , 32 , 10 74 standard setting process, 299-30 1 Petersen, Carole, 48 1 public notaries, 107- 8 Philippines, The, 26 3 Public Orde r Ordinanc e (POO) , 478 , police co-operation, cross-border , 104 - 481,484-6 5,110 Police, Hong Kong, 12 7 Qu emoy Agreement, 115-6 , 117 Postgraduate Certificat e i n Lega l Qin dynasty, 51 0 Education (PCLL), 650-1 , 668-9 Qitig dynasty, 507,513,51 9 414 Index

Ramsar Conventio n o n Wetland s o f PRC view of, 372 , 373 International Importance Especially as promotion of, 12 9 Waterfowl Habitat s 197 1 (Ramsa r Rules o f the People's Republi c o f Chin a Convention), 62 8 Governing Registration of Ships, 42 3 'rat trading', 32 2 Rules o f th e Suprem e Cour t Governin g real property the Auctio n o f Vessel s unde r Arres t prices, fluctuation, 393 , 394 for Debt Satisfaction, 42 2 revenues, H K governmen t relianc e Rules o f the Supreme People's Cour t on on, 37 0 the Arrest of Vessels Prior to Litigation reciprocity principle by the Maritime Court (Arrest Rules), in renditio n an d mutua l assistanc e 420, 421, 422, 429 relationships, 13 5 Russia, financial crisis, 290 , 299, 307 Registrar of Trade Unions, 491 , 495-6 registration of ships, 407 , 408 salaries tax, 374 , 377-9 in mainland China, 423^ 1 Sale of Goods Ordinance, 415,46 4 regulatory dialectic theory, 318- 9 Schmitthoff, Professor, 35 7 rendition Scully, Paula, 59 1 criminal suspects, 114— 8 search and seizure fugitive offenders , surrende r of, to and assistance i n foreig n jurisdictions , from HKSAR, 145-9 , 157-60 152-3 relationships, sourc e o f powe r t o securities act, 135- 7 PRC securities market, 23 8 transfer o f prisoners, powers to permit regulation of in HK, 265- 7 and request, 13 3 Securities an d Future s Commissio n Repatriation of Prisoners Act 1984, 13 9 (SFC), 239 , 242, 256, 260, 298, 310, Repatriation o f Prisoner s (Oversea s 321-5,331 Territories) Order 1986, 13 9 authority and powers, 246 , 257, 286 representative government creation, 297,32 1 development of, 49-53 , 371, 401 composite legislatio n propose d resulting trusts, 54 9 by, 266 , 297, 323-4 revenue law proposals on disclosure, 26 5 Asian financia l crisis , impac t on , relationship with SEHK, 25 9 390-5 review o f rol e an d responsibilities , in HK, 369-40 3 348 impact o f chang e o f sovereignt y Securities an d Future s Commissio n on, 386-9 0 Ordinance, 29 7 reform of , 395-40 0 Securities (Clearin g House ) Ordinance , revenue regime, 373-9 3 297 sources of revenue, 374— 5 Securities (Disclosur e o f Interest ) right of abode, 81-2,178 , 577-8 Ordinance, 264-5 , 266 , 297 , 325 , risk management, 29 3 328-30, 338 Roebuck, Derek, 2 1 Securities (Inside r Dealing ) Ordinance , Roman law, 50 7 262-4, 266, 297, 325 Ruggie, John Gerald, 50 1 provisions in need of reform, 267- 7 6 rule of law, 39,41 , 46-7, 315, 371, 530, Securities Law, 283,31 0 533 Securities Ordinanc e 1974 , 261 , 316 , concern about future of , 74-7 , 102 326 dichotomy between public and private Securities Revie w Committee , 242-3 , law a hazard to, 31 6 296, 321, 323 Index wm-

Selection Committe e [Provisiona l Societies Ordinance (SO), 32 , 478, 481, Legislative Council], 49 0 482-4,486 separation of powers, 31 5 South Africa, 345 , 355, 356 Separation an d Maintenanc e Order s South Korea, 263 , 299, 390, 506 Ordinance (SMOO), 546 , 569 Southern and Northern dynasties, 51 2 Ser, Sharon, 59 2 sovereignty service of documents, 108-9,154 , 205 change of, 228 , 230, 374y3fe6-8,488 Sewage Services Ordinance, 63 7 China's, 50 0 V Sex an d Disabilit y Discriminatio n embraced by HK, 12 6 (Miscellaneous Provisions) Ordinance, China's sensitivity to, 12 2 599, 621 exchange fo r administratio n policy , sex discriminatio n (see also sexua l 50 harassment), 574 , 593, 600, 604 IMF and, 31 8 Sex Discriminatio n Ac t (Australia) , Special Drawing Rights, 41 2 609 Spring an d Autum n Period , 509 , 510 , Sex Discrimination Act (UK), 59 8 530 Sex Discrimination Ordinance, 480 , 573, Srivastava, Dhirenda, 2 1 596, 600-5, 608, 609, 619, 621, 622 stamp duty, 381- 2 exemptions from, 605- 7 Stamp Duty Ordinance (SDO), 38 1 sexual harassment, 607-12,62 2 Standing Committe e o f th e Nationa l Shang Yang, 50 9 People's Congress , 32 , 67, 85, 410, Shanghai Shipping Exchange, 40 6 478, 486 Shanghai Stock Exchange, 238 , 310 interpretation o f Basi c La w by , 84 , Shen Deyong, 43 3 89, 177,178 Shenzhen, 12 8 interpreter of constitution, 176- 7 Shenzhen Special Economic Zone, 64 4 legislative competency of, 9 9 Shenzhen Stock Exchange, 238 , 310 powers of, 88-9 , 169 ship mortgages, 41 1 response t o electora l reform s i n HK , registered in China, 424- 6 490 registred in HK, 407 , 426-7 Standing Committe e o n Compan y La w unregistered, 42 7 Reform, 34 6 ships and shipping stare decisis, doctrine of, 222 , 223, 224, arrest of, in mainland China, 419-2 3 229 auction of, afte r arrest, 422- 3 State Administration of Foreign Exchange compulsory pilotage, 40 9 (SAFE), 424,42 5 domestic, in mainland China, 40 8 Stock Exchang e o f Hon g Kon g Limite d requisition of HK, by PRC, 409-1 0 (SEHK), 3 , 237, 239, 242, 254, 297, transport and towage services between 310 PRC ports, 408,40 9 Listing Rules, 286 , 287, 351 shipping industry, China, 405- 6 Model Code, 26 6 short selling, 246,319,32 2 overseas companies listed on, 35 5 Simpson, Brian, 2 2 Takeover Code, 286,28 7 Singapore, 263 , 324, 396,428,499, 506 structure of, 255- 7 Smith, Joseph, 2 2 Straits Exchange Foundation, 11 7 Sino-British Joint Liaison Group, 19 7 Sui dynasty, 51 2 Sino-Foreign Equit y Join t Ventur e Law, Summary Jurisdictio n (Marrie d Women ) 184 Act (UK), 56 6 societies, governmen t control s over , Summary Jurisdictio n (Separatio n an d 482-4 Maintenance) Acts 1895-1949, 56 6 ms Index Supply o f Service s (Implie d Terms ) trade union movement Ordinance, 436,46 4 influence on legislation, 47 9 Supreme People' s Court , 119 , 188-9 , politicisation of, 47 8 204 trade unions sustainable development, 629 , 635, 639 1995 electora l reform , impac t of , Swire family, 25 8 489 Szeto.Wah, 49 9 increased governmen t control over , 487 Taiwan, 263 , 487, 506 membership, 50 0 agreement with Mainland on political restrictions on extradition, 117- 8 funding, 490- 2 hijacking, 116- 7 international affiliations , 490-2 , rendition, 115- 6 500 conflict with PRC, 38 9 resumption o f sovereignty , impac t national reunification with, 180 , 491 of, 48 8 private investment in PRC, 388- 9 rules, regististration of , 495- 6 pro-, TUC membership, 48 8 Trade Unio n (Amendment ) (N o 2) recognition and enforcement of Ordinance, 491,493,495- 6 arbitral award s betwee n H K and , Trade Union Ordinance, 482 , 483 201 transfer of persons civil judgments, 20 2 assistance in criminal matters, 153- 4 judgments an d arbitra l awards , transfer of prisoners, see rendition 119-20 Transfer of Sentenced Persons Ordinance, Straits episode, 40 2 138, 139,140, 141, 143, 149 verification o f notarise d documents , transparency, 33 0 107 Treaty Banning Nuclear Weapon Tests in Tam Yin Chung, 49 8 the Atmosphere , i n Oute r Spac e an d Tang dynasty, 507,512,51 9 Under Water 196 3 (Nuclear Test Ban Tang, Houzhi, 19 5 Treaty), 62 8 taxation (see also capital gains tax; goods triad societies, 48 3 and services tax; income tax; property trials, court, tax; salaries tax; wholesale sales tax) 'naming, blaming and claiming', 53 8 anti-avoidance, 380,40 0 Tsang Yam-kuen, Donald, 327 , 395 double taxation agreement, 11 4 Tu Wei-ming, 53 0 indirect taxes, 396- 8 TungCheeHwa, 2,168,37 2 narrow tax base, 394 , 403 PRC tax regime, 37 0 ultra vires rule, 351- 2 self-assessment, 40 0 UNICITRAL Model Law on International 'self-perpetuating' system , 38 5 Commercial Arbitration, 185,18 9 system, reform of , 395-6,40 3 Unconscionable Contract s Ordinance , 'Ten Abominations', 52 4 436,464 Thailand, 155,26 3 United Nations Convention Against Illicit financial crisis, 299 , 390 Traffic i n Narcoti c Drug s an d 'through train', 49 0 Psychotropic Substance s (Vienn a Tiananmen Square , 4 Jun e 1989 , 402 , Convention), 15 5 597 United Nation s Conventio n o n th e La w Tibet, 49 0 of the Sea 1982 (UNCLOS), 62 8 trade, union federations, 483,49 5 United Nation s Conventio n o n th e trade union law, see labour law Recognition an d Enforcemen t o f Index 687

Foreign Arbitra l Awards , see Ne w Weber, Max, York Convention thesis on Protestantism, 50 5 United Nations Convention on the Rights Wei dynasty, 52 6 of the Child (CRC), 5 , 564, 575, 581, Western Zhou dynasty, 508 , 525 585, 593 Winter, Steven, 535 , 541 United Nations , Director-Genera l witnesses of, 50 1 Mainland, in HK courts, Ulll United Nations Framework Convention of wholesale sales tax (WST), 396- 7 Climate Change 1992 (Climate Change women, discriminatio n against , 565 , Convention), 628 , 633, 645 596, 603 United States, 155 , 580, 593 World Bank, 290 , 301, 389 corporation law as model, 34 2 World Trade Organisation, 38 9 United State Constitution, 17 2 Wu, Anna, 603 , 605, 606, 625 United State s Securitie s Exchang e Equal Opportunitie s Bill , 598 , 599, Commission, 32 1 607 University of Hong Kong, 31 3 Wu Chi-tso, John, 28 1 Faculty of Law, 649 , 653, 655 Urban Council, 44-5 , 52 Xinhua Ne w Agency , 74-5 , 105 , 124 , 127,402 Wacks, Raymond, 16 7 Xu Hong, 20 6 Wang Tao-han, 11 7 Warring States Period, 509 , 510, 530 Yam Yee-kwan, Justice David, 27 9 Washington Convention on the Settlement Yeung San-shing, Albert, 25 0 of Internationa l Dispute s betwee n Yip, Regina, 157- 8 States an d National s o f Othe r States , 187 Zhao Guoqiang, 20 2