TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 176

CONFIDENTIAL

reference to the United Nations Commission on International

Trade Law because the Italian side felt that this was more

commonly known to investors.

ARTICLE 11

13.

This Article is based on Article 9 of the Hong

Kong model, but with the following minor changes to the detailed procedures laid down for dispute settlement:

(Article 9(2) (a) of the Hong

allowed for each

(a) in Article 11 (2) (a)

Kong model text), the time

Contracting Party to appoint an arbitrator has been extended from thirty days to sixty days. The

Italian delegation felt that the thirty day

timetable might be too tight;

(b)

at the suggestion of the Hong Kong delegation, the reference to "the most senior Vice-President" was

amended to "the Vice-President or the most senior

member" to reflect the fact that there is only one

International Court of

to "President or

Vice-President in

Justice;

the

the

reference

Vice-President" in the last sentence of Article 9

(8) of the Hong Kong model was amended accordingly

to "Member" (Article 11 (9) of the initialled

text);

(c) the second sentence of Article 9(3) of the Hong

Kong model text was deleted. The Italian side

felt that the procedures of the tribunal were sufficiently covered in the first sentence; and

(d)

a new sub-paragraph, Article 11(5), was added to

make it clear that tribunal shall decide on the

basis of respect for the law; and that the

tribunal may propose to the Contracting Parties

that the dispute be settled amicably.

8

CONFIDENTIAL