Reparation for War Crimes

A Tokyo court rejected claims by 48 Chinese plaintiffs for compensation arising from chemical weapons left in China by Japanese troops at the end of WWII. The Japanese court found that Japan should have expected the dumped chemical arms could harm Chinese residents, but that "It was difficult for the Japanese government to investigate all the suspected areas since the weapons were abandoned in vast areas of main China."

Jurisdiction

Tax

Hong Kong

Hong Kong signed comprehensive double taxation agreements (CDTAs) with France and Austria. Since March, Hong Kong has signed CDTAs with Brunei, the Netherlands, Indonesia, Hungary and Kuwait, and have also reached agreement on CDTAs with Ireland, Japan, Switzerland and Liechtenstein. Hong Kong is also negotiating to upgrade existing treaties with mainland China, Vietnam, Belgium and Luxembourg to the OECD's new standards.

Territory - Spratly Islands

Law of the Sea - Economic Economic Zone

China announced an annual 10-week fishing ban, instituted since 1999, in the South China Sea to ease pressure on rapidly declining fish stocks. Vietnam lodged a protest, claiming the ban violates its "sovereignty" over the disputed Paracel and Spratly Islands.

State Immunity

Hong Kong

Hong Kong's Court of Appeal allowed leave to appeal to the Court of Final Appeal in the case that raised the question of state immunity. The Court of Appeal had held that the doctrine of restrictive immunity still applied in Hong Kong, saying, ""There is no suggestion in the evidence that the maintenance of the common law of restrictive immunity would prejudice the sovereignty of the PRC."

Law of the Sea - Exclusive Economic Zone

Japanese Foreign Minister Katsuya Okada lodged a protest with the Chinese Ambassador over a Chinese marine survey ship chasing a Japan Coast Guard vessel engaging in seafloor research at a place on the Japanese side of the median line, claimed by Japan to distinguish the exclusive economic zones of the two countries. Okada said China's action "'violates Japan's sovereign rights''. In response, a Chinese FM spokeswoman said the Chinese operation was "totally proper and legitimate", as China does not recognise the median line claimed by Japan.

Jurisdiction

Tax

Hong Kong

Hong Kong shell companies or bank accounts were found to be involved in over half of the tax evasion cases that the US authorities launched against American clients at UBS. While Hong Kong has strict laws against money laundering and terrorist financing, it is both cheap and easy to form a corporation in the city.

Diplomatic Immunity

Chinese deputy consul-general in Houston Yu Boren was injured and arrested by police officers after they followed him into a parking garage at the Chinese Consulate. The Chinese diplomat was driving without a rear licence plate and refused to slow down after the officers attempted to pull him over. The Chinese Government lodged a complaint, saying that the police had violated international treaties by following Mr. Yu onto the consulate’s grounds. The American officers were later suspended.