TNAG-2826-FCO40-4079-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 87

ARTICLE 12

14.

This Article

Hong Kong model text.

ARTICLE 13

- 7

1

is identical to Article 10 of the

15.

indefinite

Article 11 of the Hong Kong model provides for an

period of effectiveness subject to a year's

notice by either side. However, the Italian side felt that

a reasonably lengthy definite period would be more likely

to attract investors' confidence. Article 13 of the

initialled text 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

model, except that

duplicate rather than

section is identical to the Hong Kong

the agreement will be signed in

Both sides held the

in triplicate.

view that two sets would be sufficient.