CONFIDENTIAL
- 6-
ARTICLE 6 : Compensation for Losses
13.
Article 6 (1) is the same as Article 4(1) of the Hong Kong model, except that it is made clear that the treatment
standard to be adopted would be that which is more favourable to
the investors.
14.
model.
Article 6 (2) is almost identical to Article 4(2) of the
Hong Kong
The order of "forces and authorities" in
sub-paragraphs (a) and (b) (of the Hong Kong model} were
re-arranged to "authorities and forces" and the accord of compensation is qualified by "without delay". The former change was made to reflect that in the case of France, "authorities"
frequently referred to than "forces". The latter
change Was made because the French delegation considered it
state clearly that the compensation should be accorded without delay.
were more
necessary
15.
to
The term "forces" in respect of Hong Kong which appears 1 (c) (i) in the Hong Kong model is defined here in
as Article
sub-paragraph (3) (see paragraph 4(g) above).
ARTICLE 7: Transfer of Investments and Returns
16.
model.
Article 7 (1) 18 based on Article 6(1) of Hong Kong The first sentence was amended to make clear that the investments referred to those defined in Article 1(2) and that the returns referred to those defined in Article 1(4), including profit, interest, capital gains, dividends, royalties and fees. A second sentence was added to meet French concerns that
investors should also have unrestricted rights to transfer repayments of loans, proceeds of liquidation of an investment and compensation for deprivation or loss provided for in this This provision 18 consistent with Hong Kong's existing investment policies
the provisions of the Joint
Agreement.
Declaration.
and
A
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