TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 82

2

(b) the

definition

of

"investment" (Article 1(e) of

the model text and Article 1(5) of the initialled

text) was elaborated to make clear that indirectly

held investments were covered and to include

additional examples;

(c) the

final

clause of the definition of

"investment", which made it clear that the term

"investment" covers investments made both before

after the entry into force of the IPPA, is now

a separate Article (Article 9). The Italian side

took the view that this was not a question of

definition but of application of the Agreement;

and

(a) for simplicity and consistency, the definition of

"investors" (Article 1(6) of the initialled text

and Article 1(f) of the model text) refers to

"companies" as defined in Article 1 (2) of the

initialled text; and

(e)

the definition of "returns" was elaborated to

include an additional example, payment for

assistance and technical services (Article 1(7) of

the initialled text and Article 1(g) of the model

text).

ARTICLE 2

3.

Article 2 is very similar to Article 2 of the Hong

Kong model text, except that at the request of the Italian

delegation, the guarantee of "full protection and security"

for investments and returns in Article 2(2) of the Hong

Kong model was deleted. The Italian side held the view

appropriately dealt with in the

treatment of investments under

that this could be more

context of guarantees on

Article 3 of the initialled IPPA (see paragraph 4).