CONFIDENTIAL
-
5 -
11.
cover the
Article 4(3) is a standard exception and was added to concerns of the French delegation in relation to free trade zones, customs unions, common markets or any other form of regional economic organization. Article 4 (4) is in substance as Article 7 of the Hong Kong model except that the reference to provisions giving national and most favoured nation treatment was not included.
the same
ARTICLE 5: Expropriation
12.
Articles 5 (1) and 5 (2) are substantively the same as Articles 5(2) and 5(2) of the Hong Kong model. However, some changes were made to meet the concerns of the French delegation, as follows :-
investors
(a) the first sentence was amended to make clear that
should not be
subjected to measures having indirectly" an effect equivalent to
"directly
or
deprivation and that any deprivation should be "on a
basis"; also, the reference to
non-discriminatory
compensation was qualified by "appropriate" and it was
made
clear
formulation
appropriate;
that compensation calculated by the provided for in the Article was regarded as
(b)
а
(c)
second
deprivation
obligation;
sentence was added to make clear that
should not be contrary to a particular
the fourth sentence was amended to replace the word
"under" with the phrase "in accordance with"; and
(a)
the
phrase
静
without prejudice to the general
application of paragraph (1) of this Article" was added at the beginning of Article 5(2).