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Hong Kong and Italy sign investment protection agreement
The Chief Secretary, Mrs Anson Chan, today (Tuesday) signed a bilateral agreement with the Italian Government on the promotion and protection of investments.
The signing took place in Rome with Ambassador Walter Gardini, the Under- Secretary of State at the Ministry of Foreign Affairs and came on the second day of Mrs Chan's official visit to Italy.
The agreement, which is binding under international law, aims to provide additional reassurances to overseas investors in Hong Kong. The protection and benefits derived from these agreements are also enjoyed reciprocally by Hong Kong companies and individuals investing in the relevant overseas countries.
Speaking at the signing ceremony, Mrs Chan said the agreement "symbolises the common desire of our two governments to promote investment between Hong Kong and Italy.
"Hong Kong has become East Asia's premier business hub, offering world class services and opportunities to those doing business in the region.
"But investors like to minimise future risk, so the agreement signed today guarantees them equality of treatment, proper compensation if investments are expropriated, and the free transfer of investments and returns. It also provides for investment disputes to be settled in accordance with internationally accepted rules," Mrs Chan said.
Ambassador Gardini said: "We appreciate very much the propulsive role that Hong Kong has been playing in the development of Southern Asia and we are confident that you will continue to play such a role after 1997.
"In our view, the maintaining of the present characteristics of your system, based on market economy and civil and political liberties, will be essential to safeguard the most precious heritage in terms of economic effectiveness and productivity which Hong Kong has accumulated in the last decades and which has allowed your people to enjoy high living standards."
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