Arthur Andersen is setting up a law firm in Hong Kong to be headed by Garrett & Co litigation partner Justin Ede.
The company has not yet decided if the Hong Kong law office will be a branch office of Garretts or a separate firm within Andersen's international legal network.
Ede is currently working in Andersen's Hong Kong offices, but the company wishes him to form the nucleus of a separate law office.
Alberto Terol, the head of Andersen's international legal network, said that Ede headed McKenna & Co's Hong Kong office several years ago.
"Maybe one or two other lawyers will come from Garrett & Co, but not all. We haven't decided yet how many lawyers the office will need. It depends on how the market evolves."
Andersen's is expected to make an announcement in a couple of months. It will have to move fairly quickly. In July 1997 Hong Kong is handed back to China and automatic rights of admission for UK lawyers will be removed.