27 DE SETEMBRO DE 1996

1516-(29)

Intending to encourage and create favourable conditions for investments made by investors of one Contracting Party in the territory of the others Contracting Party on the basis of equality and-mutual benefit;

Recognizing that the mutual promotion and protection of investments on the basis of this Agreement will stimulate business initiative;

have agreed as follows:

Article 1

Definitions

For the purpose of this Agreement:

1 — The term «investment» shall mean every kind of asset invested by investors of one Contracting Party in the territory of the other Contracting Party in accordance with the laws and regulations of the latter including, in particular, though not exclusively:

a) Movable and immovable property as well as any other rights in rem, such as mortgages, liens, pledges and similar rights; •

b) Shares, stocks, debentures, or other forms of interest in the equity of companies and/or economic interests from the respective activity;

c) Claims to money or to any performance having an economic value;

d) Intellectual property rights such as copyrights, patents, utility models, industrial designs, trade marks, trade names, trade and business secrets, technical processes, know-how and good will;

e) Concessions conferred by law under a contract or an administrative act of a competent State authority, including concessions for prospecting, research and exploitation of natural resources.

Any alteration of the form in which assets are invested shall not affect their character as investments, provided that such a change does not contradict the laws and regulations of the relevant Contracting Party.

2 — The term «returns» shall mean the amounts yielded-by investments, over a given period, in particular, though not exclusively, shall include profits, dividends, interests, royalties or other forms of income related to the investments including technical assistance fees.

In cases where the returns of investment, as defined above, are reinvested, the income resulting from the reinvestment shall a/so be considered as income related to the first investments.

3 — The term «investor» means:

a) Natural persons having the nationality of either Contracting Party, in accordance with its laws; and

6) Legal persons, including corporations, commercial companies or other companies or associations, which have a main office in the territory of either Contracting Party and are incorporated or constituted in accordance with the law of that Contracting Party.

4 — The term «territory» means the territory of either of the Contracting Parties, as defined by their respective laws, over which the Contracting Party concerned exercises, in accordance with international law, sovereignty, sovereign rights or jurisdiction.

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.

Neither Contracting Party shall in any way impair by unreasonable, arbitrary or discriminatory measures the management, maintenance, 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 whith effects equivalent to expropriation or nationalisation (hereinafter referred to as expropriation) except by virtue of law for a public purpose, on a non-discriminatory basis and against prompt compensation.

2 — Such compensation shall amount to the market value of the investment affected immediately before the actual measure was taken or became public knowledge, whichever is earlier, it shall be paid without delay, shall include interest from the date of expropriation until the