216-(170)

II SÉRIE-A — NUMERO 13

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.

. 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 made 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.

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 as well as the obligations, and may exercise them according to the same terms and conditions as the original holder.

Article 8

Settlement of disputes between the Contracting Parties

1 — Disputes between the Contracting Parties concerning the interpretation and application of this Agreement should, as far as possible, be settled by negotiations through diplomatic channels.

2 — If the Contracting Parties fail to reach such settlement within sue 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 Contracting Party that 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 of 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 tne 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 tribunai 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.