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China plans to ratify Cape Town Treaty
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China on Thursday began deliberations on the Convention on International Interests in Mobile Equipment and its Protocol on Aircraft Equipment.

The treaty and its protocol, often known as the Cape Town Treaty, were tabled to law makers? by the State Council, China's Cabinet, at a bimonthly session of the Standing Committee of China's National People's Congress.

Adopted in Cape Town, South Africa, in November 2001, the treaty and its protocol conform to China's legal principles and needs, the State Council said in a report to law makers.

"The adoption of the treaty and its protocol will help lower the financial cost of Chinese airline companies in leasing aircraft equipment and diversify its financing channels," the State Council said.

The treaty intends to standardize transactions involving movable property, particularly aircraft and aircraft engines. It creates international standards for registration of ownership, security interests, leases and conditional sales contracts.

As of Aug. 31, 25 countries had approved the convention and 23 had approved its protocol.

The treaty and its protocol were expected to be adopted at the six-day session which lasts until Tuesday.

(Xinhua News Agency October 24, 2008)

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