ARTICLE 12
CONFIDENTAL
7
14.
This
Article is identical to Article 10 of the
Hong Kong model text.
ARTICLE 13
15.
indefinite
period of
Article 11 of the Hong Kong model provides for an
effectiveness subject to a year's
notice by either side. However, the Italian side felt that
a reasonably lengthy definite period would be more likely LQ attract investors' confidence. Article 13 of the
initialled Lext therefore provides that the agreement will remain in force for 15 years in the first instance, and
will be tacitly extended for periods of ten years, with
each Contracting Party reserving the right to terminate upon notice of at least a year before the date of expiry of each period of validity.
16.
The second sub-paragraph, Article 13(2), provides
that for investments or commitments to invest made before
termination, protection under the agreement would continue
apply for 15 years.
to
The Italian side felt that the addition was essential for promoting long-term investments.
SIGNATURE
17.
The closing
section is identical to the Hong Kong model, except that the agreement will be signed in
duplicate rather than
in triplicate.
view that two sets would be sufficient.
Both sides held the
9
CONFIDENTIAL
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