CONFIDENTIAL

4

7.

The last sentence of Article 2(2) of the Hong Kong model, which Covers the observation of obligations by each

Contracting Party with regard to investments, was moved to a

separate article (Article 3

see paragraph 8 below).

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ARTICLE 3: Particular obligations

8.

Article 3 (1) is based on Article 2 (2) of the Hong Kong model (see paragraph 7 above). At the request of the French it was elaborated to make clear that the Contracting shall observe any obligations arising from provisions more favourable than those of this Agreement.

delegation,

Parties

ARTICLE 4: Treatment of Investments and Returns

9.

Articles

Articles 4 (1) and 4(2) are substantively the same as 3 (1) and 3(2) of the Hong Kong model. Each paragraph was amended to make it clear that the treatment standard to be adopted would be that which is more favourable to the investor

concerned.

10.

4(2)

A reference

to

state

that

treatment

was added in the first sentence of Article

investors should be accorded

as regards their activities

most-favoured-nation

activities.

relating to their investment in general. A sentence was added in Article 4(2) to provide that personnel authorized to work in connection with an investment would be able to enjoy material facilities relevant to the exercise of their professional The French delegation considered a specific reference here as necessary and explained that it was a standard provision in other French IPPAs, including the PRC/French 1PPA. It is

however, that the provision of such facilities is to be in accordance with existing laws and regulations.

clear,

A

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