| Short-term transnational capital transference refers to the transference of capital from one country or region to another country or region due up to one year or transacted at site. At present the short-term transnational capital transference assumes great enhancement: the increasing enlargement of dimensions, the great enhancement of circulation rate, the slowdown of the expansion of speculative or inflation-proof short-term transnational capital transference. The functions of short-term transnational capital transference are esteemed to be both positive and negative.Short-term transnational capital transference usually takes the shape of capital import and capital export. The legal requirements which short-term transnational capital transference is supposed to satisfy are: countries where foreign exchange control is not performed or preformed loosely; perfect legal system to ensure the effective operation of advanced short-term transnational capital transference.Short-term transnational capital transference falls into 4 groups, legal issues concerning which go as follows: 1. Concerning the transference of trade capital, the settlement of export credit agreement and international trade must be taken into legal consideration; 2. Concerning the transference of banking capital, the short-term loan agreement of international commercial bank, the European Currency Loan Agreement, spot foreign exchange transaction, forward foreign exchange transaction, arbitrage of exchange and arbitrage of interest should be included. 3. Concerning inflation-proof capital transference, hedge fund and swap fund. 4. Concerning speculative capital transference, exchange rate variation, interest rate variation, gold value variation, securities price variation and commodity price variation.Generally speaking, short-term transnational capital transference is performed by means of an intermediary梒ommercial paper. Common features of commercial paper, according to concerned laws of the countries all over the world, are: Commercial paper is a kind of negotiable credit instrument, authorized credit instrument, formal credit instrument and abstract credit instrument; Among the 3 main kinds of commercial paper, namely, bill of exchange, promissory note and check, bill of exchange (or draft )is most typical;We can divide laws on commercial paper into 3 genealogies by their contents, it the French Genealogy, the German Genealogy credit. Laws of all countries make the stipulation on the terms of commercial paper circulation which is different from that of creditor's right assignment by the civil Law in that rights by the commercial paper can be assigned without need to inform the creditor and once it is assigned, the assignee who has executed the consideration and become a bona fide holder has right of the paper prior to that of the assignor. The legal process of commercial paper circulation is formed of following acts: issue of a commercial paper, endorsement, presentment, acceptance, payment, nonpayment, and claim. International conventions have been made by the international joint commission, among which the Geneva Convention plays a decisive role in international trades and economic contacts. The UN International Trade LAW Convention Draft, which was passed after discussion at the 15th assembly of the UN International Trade Law Commission in July, 1982.At present it is very necessary to perform national control over the short-term transnational capital transference, to which the following are mainly applied: Foreign Exchange Control, provisions, regulations and policies issue by the government to limit short-term capital transference, adoption of restrictive loan, harmonization of various national policies. To exert national control over the short-term transnational capital transference, also, has both positive and negative effects.After attending the WTO, the short-term transnational capital transference can bring as not only benefits, but risks as well, therefore, national control must be conducted. Despite the achiev...
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