Jiangsu Higher People’s Court,

Your Court’s Request for Instruction on the Recognition and Enforcement of a Foreign Arbitral Award, dated on 9 November 2001, has been received by this court. After discussion of the Judicial Committee of this court, we reply as follows:

The pre-condition of an arbitration agreement is the parties’ mutual consent to have the dispute settled by arbitration. In this case, according to the faxes between Singapore Yideman Asian Co (“Yideman”) and Wuxi Huaxin Cocoa Food Co. Ltd (“Huaxin”), there was no mutual consent by the parties to have their dispute, arising from sale of cocoa, settled by arbitration. The arbitration by the Cocoa Association of London (“CAL”) therefore lacked legal basis as the arbitration agreement was drafted by Yideman alone, without the consent of Huaxin. According to Article 269 of the Civil Procedure Law of People’s Republic of China (“Chinese Civil Procedure Law”) and the relevant provisions of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”), the People’s Court shall refuse the recognition and enforcement of the arbitral award in this case.

Above is the reply to your Court’s Request.