XN000022-1994-09-22 — Page 12

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THURSDAY, SEPTEMBER 22, 1994

HK AND SWITZERLAND SIGN INVESTMENT AGREEMENT

OF

AN AGREEMENT ON THE PROMOTION AND RECIPROCAL PROTECTION INVESTMENTS BETWEEN HONG KONG AND SWITZERLAND WAS SIGNED TODAY (THURSDAY).

THE

AGREEMENT WAS SIGNED IN HONG KONG BY THE SECRETARY FOR TRADE AND INDUSTRY, MR T TH CHAU, ON BEHALF OF THE HONG KONG GOVERNMENT, AND THE SECRETARY OF STATE FOR FOREIGN ECONOMIC AFFAIRS OF SWITZERLAND, MR FRANZ BLANKART, ON BEHALF OF THE GOVERNMENT OF SWITZERLAND.

THIS IS THE FIFTH AGREEMENT HONG KONG HAS SIGNED IN THIS IMPORTANT AREA OF INVESTMENT PROMOTION AND PROTECTION.

OTHER AGREEMENTS HAVE BEEN CONCLUDED WITH THE NETHERLANDS, AUSTRALIA, DENMARK AND SWEDEN.

THESE BILATERAL AGREEMENTS ARE BINDING UNDER INTERNATIONAL LAW, AND AIM TO ENCOURAGE AND PROTECT, ON A RECIPROCAL BASIS, INVESTMENTS BY INVESTORS OF ONE CONTRACTING PARTY IN THE OTHER'S AREA.

THE AGREEMENT PROVIDES INVESTORS WITH GUARANTEES OF FAIR TREATMENT, THE UNRESTRICTED RIGHT TO TRANSFER INVESTMENTS AND RETURNS AND PROPER COMPENSATION IN THE EVENT OF LOSSES OWING TO EXPROPRIATION. IT ALSO PROVIDES FOR INVESTMENT DISPUTES TO BE SETTLED IN ACCORDANCE WITH LAID-DOWN PROCEDURES.

SPEAKING AT THE SIGNING CEREMONY, MR CHAU SAID FOREIGN INVESTMENT HAD BEEN A KEY INGREDIENT IN HONG KONG'S ECONOMIC SUCCESS. INVESTMENT PROMOTION AND PROTECTION AGREEMENTS WOULD PROVIDE ADDED ASSURANCE TO OVERSEAS INVESTORS.

THE

AGREEMENT BETWEEN HONG KONG AND SWITZERLAND WOULD FURTHER STRENGTHEN THE EXCELLENT ECONOMIC TIES BETWEEN THE TWO PLACES.

MR BLANKART POINTED OUT THE GREAT IMPORTANCE THIS AGREEMENT HAD FOR SWITZERLAND IN ITS AIM TO ESTABLISH STRONG AND FRIENDLY RELATIONS WITH THE WHOLE WORLD, A TENDENCY WHICH IS OBVIOUS IN HONG KONG WHERE SWISS INTEREST AND SWISS INVESTMENTS HAVE INCREASED STEADILY IN THE LAST FEW YEARS.

SWITZERLAND RANKED SIXTH AMONG MAJOR SOURCES OF OVERSEAS INVESTMENT IN HONG KONG'S MANUFACTURING INDUSTRIES IN 1992, ACCOUNTING FOR (AT ORIGINAL COST) SWISS FRANC 213 MILLION (HK$1,133 MILLION), AN 163 PER CENT INCREASE OVER THAT OF 1991.

OR

THE AGREEMENT WILL ENTER INTO FORCE 30 DAYS AFTER SIGNATURE, AND WILL REMAIN EFFECTIVE FOR AN INITIAL PERIOD OF 15 YEARS. THEREAFTER, IT SHALL BE EXTENDED TACITLY FOR PERIODS OF 10 YEARS, UNLESS TERMINATED BY EITHER PARTY GIVING ONE YEAR'S WRITTEN NOTICE.

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