TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 164

ARTICLE 3

4.

CONFIDENTIAL

- 3

Articles 3 (1)

and 3 (2) are very

similar to

Articles 3(1) and 3(2) of the Hong Kong model text. Each

paragraph was amended to make it clear that the treatment

standard

to be adopted would be that which is more

favourable to the investor concerned. Also, a reference to

protection of

investments was added to Article 3(1) of the

initialled text (see paragraph 3 above).

5.

Article

3 (3) was added at the request of the

Italian delegation to make clear that investors are not

prevented from taking advantage of any law of the other Contracting Party or other obligations between the Contracting Parties which are applicable to them and more

than the provisions of the IPPA. It is clear, in the case of Hong Kong, that the provisions of the IPPA are in line with existing laws and obligations.

favourable

ARTICLE 4

5.

This Article is identical to Article 4 of the Hong

Kong model text.

ARTICLE 5

7.

of the

made to

Article 5

is

Hong Kong

substantively the same as Article 5

model text. However, some changes were

Article 5 (1) of the initialled text to meet the

concerns of the Italian delegation, as follows

(a) in the first sentence, the term "measures" was

further to make clear that investors

be

qualified

shall not

equivalent

subjected to measures having effect

to limiting the enjoyment of the investment. The Italian side considered that this

reference was

essential to make the Agreement

CONFIDENTIAL