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"But the value of inward investment to Hong Kong does not lie simply in the additional capital. We have benefited greatly from the new ideas and technology which had accompanied new investment.
"For that reason, we seek to encourage the continued growth of external investment in Hong Kong. That is why, with the authorisation of the British Government and the agreement of the Chinese Government, we have sought to negotiate Investment Promotion and Protection Agreements with our major investment partners extending well beyond 1997."
This is the sixth agreement Hong Kong has signed in this important area of investment promotion and protection. Other agreements have been made with the Netherlands, Australia, Denmark, Sweden and Switzerland.
"Several more agreements are in the pipeline, and should be ready for signature later in the year. We believe that overseas investors will welcome the assurances provided by these agreements, all of which will remain in force well beyond 1997," Mr Chau said.
Such agreements are bilateral agreements binding under international law which aim to encourage and protect, on a reciprocal basis, investments by investors of one contracting party in the other's area. Mr Chau said today's agreement would further strengthen the excellent trade and other relations between Hong Kong and New Zealand.
"The agreements guarantee fair treatment for investors, proper compensation if investments are expropriated and the free transfer of investments and returns.
"They also provide for investment disputes to be settled in accordance with prescribed and equitable procedures," Mr Chau said.
The agreement signed today will enter into force 30 days after signature, and will remain effective for an initial period of 15 years. Thereafter, it will remain in force indefinitely, unless terminated by either party by giving one year's written notice.
End/Thursday, July 6, 1995
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