10 DE JANEIRO DE 1997

216-(171)

Article 9

Settlement of disputes between a Contracting Party and an investor of the 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 in the 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 in which territory the investment was made 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 until the proceedings have terminated and a Contracting Party has failed to abide by or to comply, with the award rendered by the competent court of the Contracting Party in which territory the investment was made or by the International Center for the Settlement of Investments Disputes.

4 — The award shall be enforceable on the parties and shall not be subject to any appeal or remedy other than that provided for in the said Convention. The award shall be enforceable in accordance with, the domestic law of the Contracting Party in whose territory the investment in question is situated.

Article 10 Application of other rules

If the provisions of law of either Contracting Party or obligations under international law existing at present or established hereafter between the Contracting Parties in addition to this Agreement contain a regulation, whether general or specific, entitling investments made by investors of the other Contracting Party to a treatment more favourable than is provided for by this Agreement, such provisions shall, to the extend that they are more favourable, prevail over this Agreement.

Article 11

Application of the Agreement

This Agreement shall apply to all investments, made by investors from one of the Contracting Parties in the territory of the other Contracting Party in accordance with the respective legal provisions, prior to as well as after its entry into force, but shall not apply to any dispute concerning investments which has arisen before its entry into force.

Article 12 Consultations

Representatives of the Contracting Parties shall, whenever necessary, hold consultations on any matter

affecting the implementation of this Agreement. These consultations shall be held on the proposal of one of the Contracting Parties at a place and a time to be agreed upon through diplomatic channels.

Article 13

Entry into force and duration

1 — This Agreement shall enter into force thirty days after the latter date on which either Contracting Party notifies the other Contracting Party that its internal constitutional and legal requirements for the entry into force of this Agreement have been fulfilled.

2 — This Agreement shall remain in force for a period of ten years and shall continue in force thereafter unless, twelve months before its expiration or any subsequent five-year period, either Contracting Party notifies the other in writing of its intention to terminate the Agreement.

3 — In respect of investments made prior to the date of termination of this Agreement the provisions of articles 1 to 12 shall remain in force for a further period of ten years from the date of termination of this Agreement.

In witness whereof, the undersigned representatives, duly authorized thereto, have signed the present Agreement.

Done in Lisbon this 10 day of May 1995 in two originals in Portuguese, Croatian and English languages, all texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail.

For the Portuguese Republic:

For the Republic of Croatia:

PROTOCOL

On the occasion of the signing of the Agreement between the Portuguese Republic and the Republic of Croatia on the Promotion and Reciprocal Protection of the Investments, the undersigned duly authorized to this effect, have agreed also on the following provisions, which constitute an integral part of the said Agreement:

1 — With reference to article 2 of this Agreement: The provisions of article 2 of this Agreement should

be applicable when investors of one of the Contracting Parties are already established in the territory of the other Contracting Party and wish to extend their activities or to carry out activities in other sectors.

Such investments shall be considered as new ones and, to that extend, shall be made in accordance with the rules on the admission of investments, according to article 2 of this Agreement.

2 — With reference to article 3 of this Agreement: The Contracting Parties consider that provisions of

article 3 of this Agreement shall be without prejudice