TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 152

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INFO ROUTINE PEKING, UKREP JLG HONG KONG

IPPA: HONG KONG/FRANCE NEGOTIATIONS: 2

SUMMARY

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· 4 FEBRUARY 1993.

1. WE HAVE INITIALLED AN AGREEMENT. THE TEXT IS VERY CLOSE TO THE HONG KONG MODEL.

DETAIL

2. FOLLOWING A FIRST ROUND OF NEGOTIATIONS IN PARIS IN SEPTEMBER 1992 (PARIS TELNO 358 OF 1992), A FRENCH DELEGATION LED BY CIRELLI (CHEF DU BUREAU A LA DIRECTION DU TRESOR) MET A HONG KONG GOVERNMENT DELEGATION LED BY EDWARDS (LO(IL)) FROM 2-4 FEBRUARY IN HONG KONG.

3. WE WERE ABLE TO SECURE AGREEMENT TO OUR TEXT IN ALMOST ALL RESPECTS. THE MAIN DEPARTURES ARE:

(A) AN AMENDED DEFINITION OF COMPANIES'' TO PROVIDE RECIPROCITY

WITH THE DEFINITION OF COMPANIES IN RESPECT OF FRANCE:

(B) THE ADDITION OF A SUBROGATION CLAUSE:

(C) PERIOD OF DURATION OF AGREEMENT IS FOR A TERM CERTAIN OF

TWENTY YEARS, WITH AUTOMATIC TEN YEAR EXTENSIONS UNLESS ONE OF THE CONTRACTING PARTIES BRINGS IT TO AN END ON ONE YEAR'S NOTICE: AND

(D) THE ADDITION OF A GRANDFATHER CLAUSE TO GIVE CONTINUED PROTECTION UNDER THE AGREEMENT FOR TWENTY YEARS TO INVESTMENTS MADE BEFORE TERMINATION.

4. TEXT OF THE INITIALLED AGREEMENT FOLLOWS BY BAG TO HKD, FCO. WE WILL REPORT THE AGREEMENT TO EXCO AND THEREAFTER PASS IT TO THE CHINESE SIDE OF THE JLG UNDER COVER OF A SUITABLE EXPLANATORY PAPER.

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