TNAG-2827-FCO40-4080-Investment-Protection-and-Promotion-Agreements-(IPPA)-betwee-1993 — Page 132

CONFIDENTIAL

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5 -

11.

cover the

Article 4(3) is a standard exception and was added to concerns of the French delegation in relation to free trade zones, customs unions, common markets or any other form of regional economic organization. Article 4 (4) is in substance as Article 7 of the Hong Kong model except that the reference to provisions giving national and most favoured nation treatment was not included.

the same

ARTICLE 5: Expropriation

12.

Articles 5 (1) and 5 (2) are substantively the same as Articles 5(2) and 5(2) of the Hong Kong model. However, some changes were made to meet the concerns of the French delegation, as follows :-

investors

(a) the first sentence was amended to make clear that

should not be

subjected to measures having indirectly" an effect equivalent to

"directly

or

deprivation and that any deprivation should be "on a

basis"; also, the reference to

non-discriminatory

compensation was qualified by "appropriate" and it was

made

clear

formulation

appropriate;

that compensation calculated by the provided for in the Article was regarded as

(b)

а

(c)

second

deprivation

obligation;

sentence was added to make clear that

should not be contrary to a particular

the fourth sentence was amended to replace the word

"under" with the phrase "in accordance with"; and

(a)

the

phrase

静

without prejudice to the general

application of paragraph (1) of this Article" was added at the beginning of Article 5(2).