TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 165

(b)

CONFIDENTIAL

4

consistent

limitation

with

Italian

laws

under which

of the right to enjoy an investment is

regarded as a form of expropriation;

the first sentence was amended to make clear that

any deprivation should be on a non-discriminatory basis

line with the general standards laid down in Article 3(1));

(in

treatment

(c)

the third sentence was added to

compensation

clarify

how

should be determined in the event

that the real value of the investment cannot be

readily ascertained; and

(d)

in

ARTICLE 6

8.

the fourth sentence, it was made clear that the

calculation of interest on compensation should start from the date of the deprivation.

Hong Kong model text.

This Article is very similar to Article 6 of the

The second sentence of Article 6(1)

request of the Italian delegation to clear that the provision did not affect investors' tax obligations.

was

included at the

make it

9.

In Article 6(2), which is closely based on Article 6(2) of the Hong Kong model text, a sentence was added indicating that transfer "without undue delay" means within the normal time needed for such a transaction. It was also made clear that the "exchange rate" referred to in this

sub-paragraph

time.

is the most favourable rate applicable at the

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