666-(14)

II SÉRIE-A — NÚMERO 39

Article 2

Promotion and protection of investments

1 — Each Contracting Party shall promote and encourage, as far as possible, within its territory investments made by investors of the other Contracting Party and shall admit such investments into its territory in accordance with its laws and regulations. It shall in any case accord such investments fair and equitable treatment.

2 — Investments made by investors of either Contracting Party shall enjoy full protection and security in the territory of the other Contracting Party.

3 — When a Contracting Party shall have admitted an investment in its territory, it shall grant in accordance with its laws and regulations the necessary permits in connection with such an investment and with the carrying out of licencing agreements and contracts for technical, commercial or administrative assistance. Each Contracting Party shall, whenever needed, endeavour to issue the necessary authorizations concerning the activities of consultants and other qualified personnel with the nationality of third States.

4 — Neither Contracting Party shall in any way impair by unreasonable arbitrary or discriminatory measures the management, use, enjoyment or disposal of investments in its territory of investors of the other Contracting Party.

Article 3

National and most favoured nation treatment

1 — Investments made by investors of one Contracting Party in the territory of the other Contracting Party, as also the returns therefrom, shall be accorded treatment which is fair and equitable and not less favourable than the latter Contracting Party accords to the investments and returns of its own investors or to investors of any third State.

2 — Investors of one Contracting Party shall be accorded by the other Contracting Party, as regards the management, maintenance, use, enjoyment or disposal of their investments, treatment which is fair and equitable and not less favourable that the latter Contracting Party accords its own investors or to investors of any third State.

3 — The provisions of this article shall not be construed so as to oblige one Contracting Party to extend to the investors of the other Contracting Party the benefit of any treatment, preference or privilege which may be extended by the former Contracting Party by virtue of:

a) Any existing or future free trade area, customs union, common market or other similar international agreements including other forms of regional economic cooperation to which either of the Contracting Parties is or may become a Party, and

b) Any international agreement relating wholly or mainly to taxation.

Article 4 Expropriation

1 — Investments made by investors of either Contracting Party in the territory of the other Contracting Party shall not be expropriated, nationalised or subject to any other measure with effects equivalent to expropriation or nationalisation (hereinafter referred to as

expropriation) unless the measures are taken in the public interest, on a non-discriminatory basis and under one process of law and provided that provisions be made for effective adequate and prompt compensation.

2 — Such compensation shall amount to the market value of the 'expropriated investments immediately before the expropriation became publicly known. The amount of compensation shall be settled in a convertible and freely transferable currency and paid without delay, in a maximum period of three months, counted from the day of the submission of the relevant request and shall include the usual commercial interest from the date of expropriation to the date of payment and shall have been made in an appropriate manner.

3 — The investor whose investments are expropriated, shall have the right under the law of expropriating Contracting Party the prompt review by a judicial or other competent authority of that Contracting Party of his or its case and of valuation of his or its investments in accordance with the principles set out in this article.

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Article 5 Compensation for losses

Investors of either Contracting Party whose investments suffer losses in the territory of the other Contracting Party owing to war or armed conflict, a state of national emergency or other events considered as such by international law, shall be accorded treatment no less favourable by the latter Contracting Party than that Contracting Party accords to the investments of its own investors, or to the investments of investors of any third State, whichever is more favourable, as regards restitution, indemnification, compensation or other valuable consideration. Any payment made under this article shall be, without delay, freely transferable in convertible currency.

Article 6 Transfers

1 — Pursuant to its own legislation, each Contracting Party shall guarantee investors of the other Contracting Party the free transfer of sums related to their investments, in particular, though not exclusively.

a) Capital and additional amounts necessary to maintain or increase the investments;

b) The returns defined in paragraph 2, article 1 of this Agreement;

c) Funds in service, repayment and amortisation of loans, recognized by both Contracting Parties to be an investment;

d) The proceeds obtained from the total or partial sale or liquidation of the investment;

e) Any compensation or other payment referred to in articles 4 and 5 of this Agreement;

f) Any preliminary payments that may be maoe in the name of the investor in accordance with article 7 of this Agreement; or

g) The earnings of nationals of one of the Contracting Parties who are allowed to work in connection with an investment in the territory of the other Contracting Party.

2 — The transfers referred to in this article shall be made without restriction or delay at the prevailing exchange rate applicable on the date of the transfer in convertible currency.