HONG KONG could have a legal vacuum if the Court of Final Appeal is not set up within two years, according to the Chief Justice. Sir Ti Liang Yang said he understood the bill regarding the setting up of the court had been approved by the Executive Council, and would be introduced to the Legislative Council later this year. ''The Government aims to have the court by 1996 if everything goes well. It will take one year to set up the court,'' he said. ''There is very little time left to set up the court by 1996 but it is not impossible. ''If there is no Court of Final Appeal, it will be very unfair and harmful to appellants.'' He was speaking after attending the fifth annual conference of the Presidents of Law Associations in Asia, which Hong Kong hosted this year. Law Society President Roderick Woo Bun said the Attorney-General, Jeremy Mathews, promised to consult the legal profession before the bill went to Legco. While the promise was made last year, Mr Woo said they had yet to receive a copy of the bill. He said there would be a long waiting list of appeal litigants by 1996. He added that judges would not have the chance to gain experience if the court could not be set up in time.