1516-(30)

II SÉRIE-A — NÚMERO 63

date of payment at a normal commercial rate and shall

be freely transferable in a freely convertible currency.

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.

Article 5

Compensation for losses

Investors of either Contracting Party whose investments suffer losses in the territory 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 ipcrease 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 sale or from the total or partial liquidation of the investment;

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

f) Any preliminary payments that may be made in the name of the investor in accordance with article 7 of this Agreement.

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

Article 7 Subrogation

If either Contracting Party or its designated agency makes any payment to one of its investors as a result of a guarantee in respect of an investment made in the territory of the other Contracting Party, the former Contracting Party shall be subrogated to the rights and shares of this investor, and may exercise them according to the same terms and conditions as the original holder.

Article 8 Disputes between the Contracting Parties

1 — Disputes between the Contracting Parties concerning the interpretation and application of this Agree-

ment should, as far as possible, be settled by negotiations

through diplomatic channels.

2 — If the Contracting Parties fail to reach such settlement within six months after the begining of negotiations, the dispute shall, upon the request of either Contracting Party, be submitted to an arbitral tribunal, in accordance with the provisions of this article.

3 — The arbitral tribunal shall be constituted ad hoc, as follows: each of the Contracting Parties shall appoint one member and these two members shall propose a national of a third State as chairman to be appointed by the two Contracting Parties. The members shall be appointed within two months and the chairman shall be appointed within three months from the date on which either Contracting Party notifies the other it wishes to submit the dispute to an arbitral tribunal.

4 — If the deadlines specified in paragraph 3 of this article are not complied with, either Contracting Party may, in the absence if any other agreement, invite the President of the International Court of Justice to make the necessary appointments. If the President is prevented from doing so, or is a national of either Contracting Party, the Vice-President shall be invited to make the necessary appointments.

If the Vice-President is also a national of either Contracting Party or if he is prevented from making the appointments for any other reason, the appointments shall be made by the member of the Court who is next in seniority and who is not a national of either Contracting Party.

5 — The chairman of the arbitral tribunal shall be a national of a third State with which both Contracting Parties maintain diplomatic relations.

6 — The arbitral tribunal shall rule according to, majority vote. The decisions of the tribunal shall be final and binding on both Contracting Parties. Each Contracting Party shall be responsible for the costs of its own member and of its representatives at the arbitral proceedings. Both Contracting Parties shall assume an equal share of the expenses incurred by the chairman., as well as any other expenses. The tribunal may make a different decision regarding costs. In all other respects, the tribunal court shall define its own rules of procedure.

Article 9

Disputes between a Contracting Party and an investor of (he other Contracting Party

1 — Any dispute which may arise between one Contracting Party and an investor of the other Contracting Party concerning an investment of that investor "vn Vta territory of the former Contracting Party shall be settled amicably through negotiations.

2 — If such dispute cannot be settled within a period of six months from the date of request, for settlement, the investor concerned may submit the dispute to:

a) The competent court of the Contracting Party for decision; or

b) The International Center for the Settlement of Investments Disputes (ICSID) through conciliation or arbitration, established under the Convention on the Settlement of Investments Disputes between States and Nationals of other States, opened for signature in Washington, D. C, on March 18,1965.

3 — Neither Contracting Party shall pursue through diplomatic channels any matter referred to arbitration