TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 163

(b)

the

the

CONFIDENTIAL

2

definition of

"investment"

(Article 1(e) of

model text and Article 1(5) of the initialled

text) was elaborated to make clear that indirectly

held investments were covered and to include additional examples;

(c)

the

final

clause

of

the

definition

of

(d)

(e)

"investment" which made it clear that the term

"investment" covers investments made both before

and after the entry into force of the IPPA, is now

a separate Article (Article 9). The Italian side

took the view that this was not a question of definition but of application of the Agreement;

for simplicity and consistency, the definition of

"investors" (Article 1 (6) of the initialled text

and Article 1(f) of the model text) refers to

"companies" ag defined in Article 1(2) of the

initialled text; and

the definition of "returns" was elaborated to

include an

additional example, payment for

assistance and technical services (Article 1(7) of

ARTICLE 2

the initialled

text).

text and Article 1(g) of the model

3.

Article 2 is very similar to Article 2 of the Hong Kong model text, except that at the request of the Italian delegation, the guarantee of "full protection and security" for investments and returns

Kong model was deleted.

that this could be more

context of guarantees on

in Article 2(2) of the Hong

The Italian side held the view

appropriately dealt with in the

treatment of investments under

Article 3 of the initialled IPPA (see paragraph 4).

CONFIDENTIAL