TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 174

consistent

CONFIDENTIAL

with

Italian

laws

under

which

(b)

(c)

(d)

ARTICLE 6

8.

limitation

regarded as

of the right to enjoy an investment is

form of expropriation;

the first sentence was amended to make clear that

any deprivation should be on a non-discriminatory

(in line with the general treatment

standards laid down in Article 3(1)};

basis

the

third sentence was added to clarify how

compensation should be determined in the event

that the real value of the investment cannot be readily ascertained; and

in

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.

included at the

This Article is very similar to Article 6 of the

The second sentence of Article 6(1)

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

was

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 normal time needed for such a transaction. It was also

made clear that the "exchange rate" referred to in this sub-paragraph is the most favourable rate applicable at the

the

time.

CONFIDENTIAL