TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 84

4

(b)

consistent

limitation

with

Italian laws under, which

of the right to enjoy an investment is

regarded as a form of expropriation;

the first sentence was amended to make clear that

any deprivation should be on a non-discriminatory

basis (in line with the general treatment

standards laid down in Article 3(1));

(c)

(d)

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.

ARTICLE 6

8.

Hong Kong model text.

was 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.

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.