After nearly four years of discussions, the Chinese mainland and Hong Kong Special Administrative Region signed an agreement Friday to make civil and commercial judgments delivered in each others' courts enforceable on both places.

 

The long-awaited pact provides a new and convenient mechanism that a judgment creditor will no longer need to spend a large amount of time and money to bring a legal action again in the place where the property of the debtor is situated.

 

On behalf of the central government and HKSAR government, the Grand Justice Huang Songyou, Vice President of the Supreme People's Court, and Secretary for Justice Wong Yan-lung signed the agreement, entitled "the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Court of the Mainland and of the Hong Kong Special Administrative Region Pursuant to Choice of Court Agreements between Parties Concerned".

 

It is another mutual legal assistance agreement reached between the two places in line with the Basic Law, following the signing of the Arrangement for Mutual Service of Judicial Documents in Civil and Commercial Proceedings and the Arrangement Concerning Mutual Enforcement of Arbitral Awards in 1999.

 

Calling the signing of the arrangement a landmark symbolizing the on-going progress of legal assistance between the Chinese mainland and the HKSAR, Huang said it marks a big step forward towards a closer relationship of legal assistance between the two places.

 

"It is another good example of successful cooperation between the two places following the signing of the 1999 arrangement," Huang said, adding the scope of mutual legal assistance is extending from the service of judicial documents in civil and commercial proceedings and enforcement of arbitral awards to a wider areas at higher level.

 

Huang said the arrangement will have a positive effect on the successful implementation of "One Country, Two Systems" and protect the lawful interests of the parties concerned.

 

Secretary for Justice Wong Yan-lung believed the new mechanism would provide convenience for and enhance the confidence of people who are involved in business dealings in the two places, thus making the business environment of the two places more attractive.

 

"At the same time, the new arrangement can also strengthen Hong Kong's position as a regional center for dispute resolution," Wong said.

 

Since the first meeting on July 25, 2002, a number of proposals have been raised and discussed thoroughly by both sides. Altogether seven consultation meetings have been held and the text has been amended 26 times before the two sides finally settled the text.

 

The agreement is applicable only to money judgments on disputes arising from commercial contracts where the parties involved have made an agreement in writing in which a mainland court or a HKSAR court is expressly designated as the court to have sole jurisdiction for resolving the dispute concerned.

 

Both sides have agreed on a list of 469 mainland courts whose judgments in commercial cases may be enforceable in Hong Kong, including the Supreme People's Court, 32 higher people's courts, 389 intermediate courts and 47 basic-level courts.

 

Relevant legislative procedures must be passed through in Hong Kong before the Arrangement could be implemented, while in the Chinese mainland, the Supreme People's Court will also have to issue new guidelines and interpretations for its implementation.

 

(Xinhua News Agency July 15, 2006)