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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL REGARDING FURTHER STRENGTHENING THE REORGANIZATION OF ARBITRATION INSTITUTIONS

    In order to reorganize arbitration institutions independent
of administrative agencies in accordance with the Arbitration Law
of the People's Republic of China (hereinafter referred to as the
Arbitration Law), the General Office of the State Council issued
the Circular on Making Good Arrangements for the Reorganziation of
Arbitration Institutions and the Establishment of the China
Arbitration Association (Issue No.99 [1994] by the General Office
of the State Council, hereinafter referred to as the Circular) on
November 13, 1994. Upon the issuance of the Circular the various
localities, departments and organizations concerned have placed
proper emphasis on the reorganization of arbitration institutions
and have conducted much detailed and solid work. At the same time
however, in view of the factual situation, it is still proving to
be a tough task to implement the Arbitration Law and the
requirements of the Circular. According to the provisions of the
Arbitration Law, the existing arbitration institutions
established by the departments of Industry and Commerce, Urban
Construction and Science and Technology, of the State Council,
the people's governments of the provinces, autonomous regions, or
autonomous prefectures or of the people's governments at the county
level will be terminated as of September 1, 1995, and those existing
arbitration institutions subject to an administrative department and
established in municipalities directly under the central government,
cities where the people's government of the province or autonomous
region is located or other districted cities will also be
terminated as of September 1, 1996 at the latest. Therefore,
reorganization of arbitration institutions in accordance with
legal provisions is extremely urgent. In order to further improve
the reorganization of arbitration institutions, assure the
continuity of arbitration work, protect the lawful rights and
interests of the parties and safeguard the economic order, with
approval of leaders of the State Council, the following Circular
on relevant items is hereby issued:

    1. The various people's governments of provinces or
autonomous regions shall place heavy stress on and strengthen
leadership for the reorganization of arbitration institutions
within their areas, and determine a governmental leader to be in
charge of the work. Close attention shall be paid to
investigating local existing arbitration institutions, raising of
a local working program to reorganize the arbitration
institutions before September 1, 1996 (according to the needs and
possibilities of each province or autonomous region, and on the
basis of analysis of the factual situation of the districted cities
where arbitration institutions can be established as described by
the Arbitration Law, make classifications and work out detailed
arrangements to reorganize the arbitration institutions by stages
and in batches) and being responsible for coordination, guidance
and implementation. The various provinces or autonomous regions
shall, on the basis of the provisions of the Arbitration Law and
the unified regulations to be promulgated soon by the State Council,
make an effort to reorganize the arbitration institutions in cities
where the people's governments of the provinces or autonomous regions
are located and other districted cities listed in the plan as the
first group to reorganize arbitration institutions before
September 1, 1995. At the same time, attention shall be paid to the
reorganization of arbitration institutions in other districted cities
by stages and in batches. The Arbitration Law shall be propagated with
great effort and the concerned personnel shall receive training. The
detailed work shall be led by the Bureau(Office) of Legal Affairs
under the people's governments of the provinces, autonomous regions
and concerned cities, and shall have the participation of relevant
departments and organizations, and shall cooperate under the
leadership of the people's governments at the same level.

    2. The seven pilot cities of Beijing, Shanghai, Tianjin,
Guangzhou, Xi'an, Huhhot and Shenzhen determined in Issue
No.99 (1994) by the General Office of the State Council shall, on
the basis of the pilot work of previous periods, further improve
plans to reorganize arbitration institutions, pay close attention
to the implementation of preparatory work such as the organization
of arbitration commissions, appointment of the arbitrators,
establishment of the working bodies of the arbitration commissions
and selection of its personnel, financial resources and working
conditions, and assure the establishment of the arbitration
commissions before September 1, 1995.

    3. The joint work in handling cases between the existing
arbitration institutions and the new arbitration institutions
shall be conducted seriously to assure the fair, speedy and
efficient settlement of economic disputes, and the safeguarding
of the economic order. The existing arbitration institutions
shall, prior to their termination in accordance with legal
provisions, continue accepting arbitration applications and
rendering arbitral awards within 6 months after the termination
of the said arbitration institution in accordance with legal
provisions; the implementation of said arbitral awards will,
with agreement of the Supreme People's Court, be notified
separately by means of the Supreme People's Court.

    The various people's governments of the provinces, autonomous
regions or municipalities directly under the central government
are requested to transmit this Circular up to the people's
governments at the county level.