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FS signed investment protection agreement with Austria
The Financial Secretary, Mr Donald Tsang, today (Friday, Vienna time) signed an internationally binding agreement on behalf of Hong Kong for the promotion and protection of investments with the Republic of Austria, the second of such agreement that Hong Kong has signed this week.
The ceremony took place in Vienna and the Austrian government was represented by the State Secretary for Foreign Affairs of Austria, Mrs Benita Ferrero- Waldner.
Speaking at the signing ceremony, Mr Tsang said the agreement would encourage the flow of investment in both directions and strengthen economic ties between Hong Kong and Austria.
"Trade relations between Hong Kong and Austria have been developing rapidly, with total trade growing at an average rate of 10.8 per cent over the five-year period from 1991 to 1995," he said.
"Bilateral trade between the two signing parties stood at $8.4 billion in 1995. Currently, Austria is our 29th largest trading partner."
Mr Tsang also assured Austrian investors that Hong Kong would enjoy a high degree of autonomy after the change of sovereignty on July 1, 1997, under the Sino- British Joint Declaration and the Basic Law of the Hong Kong Special Administrative Region.
"All factors contributing to Hong Kong's past success have been guaranteed to remain in place," he said.
Under the terms of the agreement, the two governments will provide for equal treatment of investors, compensation if investments are expropriated, and free transfer of investments and returns.
The agreement also provides for the settlement of investment disputes in accordance with internationally accepted rules.
Upon ratification by the Austrian legislature, the agreement will be effective for 15 years in the first instance, and will remain in force indefinitely unless terminated by either party.