XN000022-1995-11-30 — Page 3

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Investment protection agreement signed with France

The Chief Secretary, Mrs Anson Chan, on her official visit to France began her first full day in Paris today with the signing of an agreement that provides additional reassurances for French investors who are investing in Hong Kong.

The investment promotion and protection agreement (IPPA) was jointly signed by Mrs Chan for Hong Kong and Mr Jean Arthuis, the Minister for Economy and Finance representing the French government.

Mrs Chan said she believed overseas investors welcomed the added assurances provided by the bilateral agreements to which their own governments were parties.

The same protection was also provided to Hong Kong investors in countries which had also signed the bilateral agreements.

"As overseas investment will continue to play an important role in sustaining our economic growth, it is in Hong Kong's interests to have a network of IPPAs with countries which have invested substantially in the territory,

"These investment protection agreements, which have been endorsed by the Chinese side in the Joint Liaison Group, have been tailor-made to take into account the unique investment regime and economic characteristics of Hong Kong and remain in force beyond 1997," Mrs Chan explained.

Mr Arthuis said it was important for French investors to be able to continue to enjoy beyond 1997 the security and protection they have had for a long time in Hong Kong. He was delighted that such an assurance had been made possible by the agreement signed today.

Today, Mrs Chan also met other French ministers and senior officials, including the Minister who is responsible for Foreign Trade, Mr Yves Galland, and President Chirac's Foreign Policy Adviser, Mr Jean-David Levitte. She was also guest at a luncheon hosted by the President of the Senate, Mr Rene Monory, and later had a meeting with the President of the National Assembly, Mr Philippe Seguin, and his duputy, Mrs Nicola Catala.

During these meetings, Mrs Chan outlined the measures being put in place in the run up to the change of sovereignty in 1997 to ensure a smooth transition.