TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 177

ARTICLE 12

CONFIDENTAL

14.

This

Article is identical to Article 10 of the

Hong Kong model text.

ARTICLE 13

15.

Article 11 of the Hong Kong model provides for an

effectiveness subject to a year's

However, the Italian side felt that

definite period would be more likely

Article 13 of the

indefinite period of

notice by either side.

a reasonably lengthy

1.0 attract investors' confidence. 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 to apply for 15 years.

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

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CONFIDENTIAL