Decree-Law n. º 55/98/M

of 23 November

The Decree-Law n. º 29/96/M, of 11 June, regulates the matters of arbitration, however, its considered convenient to complete that framework with a law specifically vocated for international commercial arbitration.

In fact, the tendency in a world subject to ongrowing globalization is that most conflicts arising from commercial international relations be settled through means of arbitration. For such, currently, arbitration is recognized as an important factor for the development of an effective policy to capture external investment and for the development of international commercial transactions.

This Decree-Law, that intends to fulfill those goals, corresponds almost in full to the (United Nations Commission on International Trade Law) UNCITRAL Model Law on international commercial arbitration, approved in 21 June 1985, and adopted by the United Nations through resolution of the General Assembly n.º 40/72, of 11 December, that same year.

This Model Law was elaborated with the purpose of unifying the rules of international commercial arbitration, to be adopted by the different states or territories with or without changes. But, the synchronizing effect of the Model Law means that the changes must be as few as possible; just the strictly necessary for the possible need of conformation to the legal system it will integrate.

For that and considering the legal provisions of the territory relevant to these matters, some changes were made to Article 7 n.º 1 and Article 36 n.º 1 of the Model Law, to synchronize the scope of arbitration and the grounds for refusing recognition of enforcement of arbitral awards to those established in the said Decree-law n.º 29/96/M, of 11 June, and the Code of Civil Proceadure.

In these terms;

After hearing the Consultive Council;

Subsequent to the legal regime established by Law n.º 112/91, of 29 August, and in the terms of article 13 (3) of the Organic Statute of Macau, the Governor declares, to be valid as law in the territory, the following:

Chapter I

General Provisions

Article 1

(Scope of application)

1. This Decree-Law applies to international commercial arbitration, without prejudice to the Basic Law of Macau, to any International Convention applicable in Macau or any agreement regarding judiciary cooperation.

2. In this Decree-law, the term “commercial” should be given a wide interpretation so as to cover matters arising from all relationships of a commercial nature, whether contractual or not. Relationships of a commercial nature include, but are not limited to, the following transactions: any trade transaction for the supply or exchange of goods or services; distribution agreement; commercial representation or agency; factoring; leasing; construction of works; consulting; engineering; licensing; investment; financing; banking; insurance; exploitation agreement or concession; joint venture and other forms of industrial or business co-operation; transportation of goods or passengers by air, sea, rail or road.

3. The provisions of this Decree-Law, except Articles 8, 9, 35 and 36, are applicable only if the place of arbitration is within the Territory of Macau.

4. In this Decree-Law, the arbitration is international when:

a) The parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different States or Territories;

b) One of the following places is situated outside the State or Territory in which the parties have their places of business:

(i) The place of arbitration if determined in, or pursuant to, the arbitration agreement;

(ii) Any place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject-matter of the dispute is most closely connected; or

(c) The parties have expressly agreed that the subject matter of the arbitration agreement relates to more than one State or Territory.

5. For the purposes of paragraph 4 of this Article:

(a) If a party has more than one place of business, the place of business is that which has the closest relationship to the arbitration agreement;


(b) If a party does not have a place of business, reference is to be made to his habitual residence.
6. This Decree-Law shall not affect any other laws of Macau by virtue of which certain disputes may not be submitted to arbitration or may be submitted to arbitration only according to provisions other than those of this Decree-Law.

Article 2

(Definitions and rules of interpretation)

For the purposes of this Decree-law:

a) "Arbitration" means any arbitration whether or not administered by a permanent arbitral institution;

b) "Arbitral tribunal" means a sole arbitrator or a panel of arbitrators;

c) “Court” means a body or organ of the judicial system of a State or Territory;

d) Where a provision of this Decree-law, except article 28, leaves the parties free to determine a certain issue, such freedom includes the right of the parties to authorize a third party, including an institution, to make that determination;

e) Where a provision of this Decree-law refers to the fact that the parties have agreed or that they may agree or in any other way refers to an agreement of the parties, such agreement includes any arbitration rules referred to in that agreement;

f) Where a provision of this Decree-law, other than in articles 25(a) and 32(2)(a), refers to a claim, it also applies to a counter-claim, and where it refers to a defense, it also applies to a defense to such counter-claim.

Article 3

(Receipt of written communications)

1. Unless otherwise agreed by the parties:

(a) Any written communication is deemed to have been received if it is delivered to the addressee personally or if it is delivered at his place of business, habitual residence or mailing address; if none of these can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last-known place of business, habitual residence or mailing address by registered letter or any other means which provides a record of the attempt to deliver it;

(b) The communication is deemed to have been received on the day it is so delivered.

2. The provisions of paragraph 1 of this Article do not apply to communications in court proceedings.

Article 4

(Waiver of right to object)

A party who knows that any provision of this Decree-Law from which the parties may derogate or any requirement under the arbitration agreement has not been complied with and yet proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, if a time-limit is provided therefor, within such period of time, shall be deemed to have waived his right to object.

Article 5

(Extent of court intervention)

In matters governed by this Decree-Law, no court shall intervene except where so provided in this Decree-Law.

Article 6

(Competence for the exercise of certain functions of arbitration assistance and supervision)

The functions referred to in articles 11(3), 11(4), 13(3), 14, 16(3) and 34(2) shall be performed by the Macau Court considered competent under the norms of judiciary organisation of the Territory.

Chapter II

Arbitration Agreement

Article 7

(Definition and form of arbitration agreement)

1. "Arbitration agreement" is an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.

2. The arbitration agreement shall be in writing. An agreement is in writing if it is contained in a document signed by the parties or in an exchange of letters, telex, telegrams or other means of telecommunication which provide a record of the agreement, or in an exchange of statements of claim and defence in which the existence of an agreement is alleged by one party and not denied by another. The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement provided that the contract is in writing and the reference is such as to make that clause part of the contract.

Article 8

(Substantive claim before court)

1. A court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.

2. Where an action referred to in paragraph (1) of this article has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the court.

Article 9

(Arbitration Agreement and interim measures by court)

It is not incompatible with an arbitration agreement for a party to request, before or during arbitral proceedings, from a court an interim measure of protection and for a court to grant such measure.

Chapter III

Composition of Arbitral Tribunal

Article 10

(Number of arbitrators)

1. The parties are free to determine the number of arbitrators.

2. Failing such determination, the number of arbitrators shall be three.

Article 11

(Appointment of arbitrators)

1. No person shall be precluded by reason of his nationality or residency from acting as an arbitrator, unless otherwise agreed by the parties.

2. The parties are free to agree on a procedure of appointing the arbitrator or arbitrators, subject to the provisions of paragraphs (4) and (5) of this article.

3. Failing such agreement, the following are applicable:

a) In an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall appoint the third arbitrator; if a party fails to appoint the arbitrator within thirty days of receipt of a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of a party, by the competent tribunal.

b) In an arbitration with a sole arbitrator, if the parties are unable to agree on the arbitrator, he shall be appointed, upon request of a party, by the competent court.

4. Where, under an appointment procedure agreed upon by the parties,

a) A party fails to act as required under such procedure, or

b) The parties, or two arbitrators, are unable to reach an agreement expected of them under such procedure, or

c) A third party, including an institution, fails to perform any function entrusted to it under such procedure,

Any party may request the competent court to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment.

5. A decision on a matter entrusted by paragraph (3) and (4) of this article to the competent court shall be subject to no appeal. The tribunal, in appointing an arbitrator, shall have due regard to any qualifications required of the arbitrator by the agreement of the parties and to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and, in the case of a sole or third arbitrator, shall take into account as well the advisability of appointing an arbitrator of a nationality or residency other than those of the parties.

Article 12

(Grounds for challenge)

1. When a person is approached in connection with his possible appointment as an arbitrator, he shall disclose any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall without delay disclose any such circumstances to the parties unless they have already been informed of them by him.

2. An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to his impartiality or independence, or if he does not possess qualifications agreed to by the parties. A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.

Article 13

(Challenge procedure)

1. The parties are free to agree on a procedure for challenging an arbitrator, subject to the provisions of paragraph (3) of this article.

2. Failing such agreement, a party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after becoming aware of any circumstance referred to in article 12(2), send a written statement of the reasons for the challenge to the arbitral tribunal. Unless the challenged arbitrator withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge.

3. If a challenge under any procedure agreed upon by the parties or under the procedure of paragraph (2) of this article is not successful, the challenging party may request, within thirty days after having received notice of the decision rejecting the challenge, the competent court to decide on the challenge, which decision shall be subject to no appeal; while such a request is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and make an award.

Article 14

(Failure or impossibility to act)

1. If an arbitrator becomes de jure or de facto unable to perform his functions or for other reasons fails to act without undue delay, his mandate terminates if he withdraws from his office or if the parties agree on the termination. Otherwise, if a controversy remains concerning any of these grounds, any party may request the competent court to decide on the termination of the mandate, which decision shall be subject to no appeal.

2. If, under this article or article 13(2), an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, this does not imply acceptance of the validity of any ground referred to in this article or article 12(2).

Article 15

(Appointment of substitute arbitrator)

Where the mandate of an arbitrator terminates under article 13 or 14 or because of his withdrawal from office for any other reason or because of the revocation of his mandate by agreement of the parties or in any other case of termination of his mandate, a substitute arbitrator shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced.

Chapter IV

Jurisdiction of arbitral tribunal

Article 16

(Competence of arbitral tribunal to rule on its own jurisdiction)

1. The arbitral tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. For that purpose, an arbitration clause, which forms part of a contract, shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause.

2. A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defence. A party is not precluded from raising such a plea by the fact that he has appointed, or participated in the appointment of, an arbitrator. A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. The arbitral tribunal may, in either case, admit a later plea if it considers the delay justified.

3. The arbitral tribunal may rule on a plea referred to in paragraph (2) of this article either as a preliminary question or in an award on the merits. If the arbitral tribunal rules as a preliminary question that it has jurisdiction, any party may request, within thirty days after having received notice of that ruling, the competent court to decide the matter, which decision shall be subject to no appeal; while such a request is pending, the arbitral tribunal may continue the arbitral proceedings and make an award.

Article 17

(Power of arbitral tribunal to order interim measures)

Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order any party to take such interim measure of protection as the arbitral tribunal may consider necessary in respect of the subject-matter of the dispute. The arbitral tribunal may require any party to provide appropriate security in connection with such measure.

Chapter V

Conduct of arbitral proceedings

Article 18

(Equal Treatment of parties)

The parties shall be treated with equality and each party shall be given a full opportunity of presenting his case.

Article 19

(Determination of rules of procedure)

1. Subject to the provisions of this Decree law, the parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting the proceedings.

2. Failing such agreement, the arbitral tribunal may, subject to the provisions of this Decree-Law, conduct the arbitration in such manner, as it considers appropriate. The power conferred upon the arbitral tribunal includes the power to determine the admissibility, relevance, materiality and weight of any evidence.

Article 20

(Place of arbitration)

1. The parties are free to agree on the place of arbitration. Failing such agreement, the place of arbitration shall be determined by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the parties.

2. Notwithstanding the provisions of paragraph (1) of this article, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of goods, other property or documents.

Article 21

(Commencement of arbitral proceedings)

Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.

Article 22

(Language)

1. The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such agreement, the arbitral tribunal shall determine the language or languages to be used in the proceedings. This agreement or determination, unless otherwise specified therein, shall apply to any written statement by a party, any hearing and any award, decision or other communication by the arbitral tribunal.

2. The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into the language or languages agreed upon by the parties or determined by the arbitral tribunal.

Article 23

(Statements of claim and defence)

1. Within the period of time agreed by the parties or determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at issue and the relief or remedy sought, and the respondent shall state his defence in respect of these particulars, unless the parties have otherwise agreed as to the required elements of such statements. The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.

2. Unless otherwise agreed by the parties, either party may amend or supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow such amendment having regard to the delay in making it.

Article 24

(Hearings and written proceedings)

1. Subject to any contrary agreement by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials. However, unless the parties have agreed that no hearings shall be held, the arbitral tribunal shall hold such hearings at an appropriate stage of the proceedings, if so requested by a party.

2. The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of goods, other property or documents.

3. All statements, documents or other information supplied to the arbitral tribunal by one party shall be communicated to the other party. Also any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties.

Article 25

(Default of a party)

Unless otherwise agreed by the parties, if, without showing sufficient cause:

a) The claimant fails to communicate his statement of claim in accordance with article 23(1); the arbitral tribunal shall terminate the proceedings;

b) The respondent fails to communicate his statement of defence in accordance with article 23(1), the arbitral tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegations;

c) Any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the award on the evidence before it.

Article 26

(Expert appointed by arbitral tribunal)

1. Unless otherwise agreed by the parties, the arbitral tribunal may:

a) Appoint one or more experts to report to it on specific issues to be determined by the arbitral tribunal;

b) Require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection.

2. Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it necessary, the expert shall, after delivery of his written or oral report, participate in a hearing where the parties have the opportunity to put questions to him and to present expert witnesses in order to testify on the points at issue.

Article 27

(Court assistance in taking evidence)

The arbitral tribunal or a party with the approval of the arbitral tribunal may request from the competent court assistance in taking evidence. The court may execute the request within its competence and according to its rules on taking evidence.

Chapter VI

Making of award and termination of proceedings

Article 28

(Rules applicable to substance of dispute)

1. The arbitral tribunal shall decide the dispute in accordance with such rules of law as are chosen by the parties as applicable to the substance of the dispute. Any designation of the law or legal system of a given State or Territory shall be construed, unless otherwise expressed, as directly referring to the substantive law of that State or Territory and not to its conflict of laws rules.

2. Failing any designation by the parties, the arbitral tribunal shall apply the law determined by the conflict of laws rules, which it considers applicable.

3. The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur only if the parties have expressly authorized it to do so.

4. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.

Article 29

(Decision making by panel of arbitrators)

In arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made, unless otherwise agreed by the parties, by a majority of all its members. However, questions of procedure may be decided by a presiding arbitrator, if so authorized by the parties or all members of the arbitral tribunal.

Article 30

(Settlement)

1. If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.

2. An award on agreed terms shall be made in accordance with the provisions of article 31 and shall state that it is an award. Such an award has the same status and effect as any other award on the merits of the case.

Article 31

(Form and contents of award)

1. The award shall be made in writing and shall be signed by the arbitrator or arbitrators. In arbitral proceedings with more than one arbitrator, the signatures of the majority of all members of the arbitral tribunal shall suffice, provided that the reason for any omitted signature is stated.

2. The award shall state the reasons upon which it is based, unless the parties have agreed that no reasons are to be given or the award is an award on agreed terms under article 30.

3. The award shall state its date and the place of arbitration as determined in accordance with article 20(1). The award shall be deemed to have been made at that place.

4. After the award is made, a copy signed by the arbitrators in accordance with paragraph (1) of this article shall be delivered to each party.

Article 32

(Termination of proceedings)

1. The arbitral proceedings are terminated by the final award or by an order of the arbitral tribunal in accordance with paragraph (2) of this article.

2. The arbitral tribunal shall issue an order for the termination of the arbitral proceedings when:

a) The claimant withdraws his claim, unless the respondent objects thereto and the arbitral tribunal recognizes a legitimate interest on his part in obtaining a final settlement of the dispute;

b) The parties agree on the termination of the proceedings;

c) The arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible.

3. The mandate of the arbitral tribunal terminates with the termination of the arbitral proceedings, subject to the provisions of articles 33 and 34(4).

Article 33

(Correction and interpretation of award; additional award)

1. Within 30 days of receipt of the award, unless another period of time has been agreed upon by the parties:

a) A party, with notice to the other party, may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors or any errors of similar nature;

b) If so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award.

If the arbitral tribunal considers the request to be justified, it shall make the correction or give the interpretation within 30 days of receipt of the request. The interpretation shall form part of the award.

2. The arbitral tribunal may correct any error of the type referred to in paragraph (1)(a) of this article on its own initiative within thirty days of the date of the award.

3. Unless otherwise agreed by the parties, a party, with notice to the other party, may request, within thirty days of receipt of the award, the arbitral tribunal to make an additional award as to claims presented in the arbitral proceedings but omitted from the award. If the arbitral tribunal considers the request to be justified, it shall make the additional award within 60 days.

4. The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, interpretation or an additional award under paragraph (1) or (3) of this article.

5. The provisions of article 31 shall apply to a correction or interpretation of the award or to an additional award.

Chapter VII

Recourse against award

Article 34

(Annulment of arbitral award)

1. Recourse to a judicial court against an arbitral award may be made only by an application for setting aside in accordance with paragraphs (2) and (3) of this article.

2. An arbitral award may be set aside by the competent court only if:

a) The party making the application furnishes proof that:

i) a party to the arbitration agreement referred to in article 7 was under some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of Macao; or

(ii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or

(iii) the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the award which contains decisions on matters not submitted to arbitration may be set aside; or

(iv) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Decree-Law from which the parties cannot derogate, or, failing such agreement, was not in accordance with this Decree-Law; or

b) The court finds that:

i) the subject-matter of the dispute is not capable of settlement by arbitration under the laws of Macao; or

ii) the award is in conflict with the public order.

3. An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the award or, if a request had been made under article 33, from the date on which that request had been disposed of by the arbitral tribunal.

4. The court, when asked to set aside an award, may, where appropriate and so requested by a party, suspend the setting aside proceedings for a period of time determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the arbitral tribunal's opinion will eliminate the grounds for setting aside.

Chapter VIII

Recognition and enforcement of awards

Article 35

(Recognition and enforcement)

1. An arbitral award, irrespective of the State or Territory in which it was made, shall be recognized as binding and, upon application in writing to the competent court, shall be enforced subject to the provisions of this article and of article 36

2. The party relying on an award or applying for its enforcement shall supply the duly authenticated original award or a duly certified copy thereof, and the original arbitration agreement referred to in article 7 or a duly certified copy thereof. If the award or agreement is not made in one of the official languages of Macao, the party shall supply a duly certified translation thereof into one of those languages.

Article 36

(Grounds for refusing recognition or enforcement)

1. Recognition or enforcement of an arbitral award, irrespective of the State or Territory in which it was made, may be refused only:

a) At the request of the party against whom it is invoked, if that party furnishes to the competent court where recognition or enforcement is sought proof that:

i) a party to the arbitration agreement referred to in article 7 was under some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the State or Territory where the award was made;

ii) the party against whom the award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or

iii) the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognized and enforced; or

iv) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties or, failing such agreement, was not in accordance with the laws of the State or Territory where the arbitration took place; or

v) the award has not yet become binding on the parties or has been set aside or suspended by a court of the State or Territory in which, or under the law of which, that award was made; or

b) If the court finds that:

i) the subject-matter of the dispute is not capable of settlement by arbitration under the laws of Macao; or

ii) the recognition or enforcement of the award would be contrary to the public order; or

iii) The State or territory in which the award was decided does not recognize or inforce the awards from Macau tribunals.

2. If an application for setting aside or suspension of an award has been made to a court referred to in paragraph (1)(a)(v) of this article, the court where recognition or enforcement is sought may, if it considers it proper, adjourn its decision and may also, on the application of the party claiming recognition or enforcement of the award, order the other party to provide appropriate security.

Chapter IX

Final dispositions

Article 37

(Subsidiary legislation)

1. All that is not expressly foreseen in this Decree-Law shall be subsidiary governed by Decree-Law n. º 29/96/M, of 11 June.

2. If not foreseen by the arbitration agreement or if the parties don’t reach an agreement on the matter, the remuneration of the arbitators and other participants on arbitral proceedings are, in what is applicable, those ruled by order of the Governor referred in article 19 (4) of Decree-law n.º 29/96/M, of 11 June.

3. In case some arbitrators are not Macao residents, the arbitral award may add an extra remuneration to that refered in paragraph 2 of this article, to compensate totally or partially the travel and lodging expenses of foreign arbitrators comig to Macau.

4. The award may also add to the remuneration refered in paragraph 2 of this article, full or partial payment of expenses concerning proof diligences performed outside Macao, when those diligences were considered necessary by the arbitral tribunal.

Article 38

(Application)

This Decree law shall enter into force 60 days after its publication.

Approved in 13 of November of 1998.

For publication.

The Governor, Vasco Rocha Vieira.