418-(32)

II SÉRIE-A — NÚMERO 27

have agreed as follows:

Article 1 Definitions

For the purposes of this Agreement:

1 — The term «investment» shall comprise every kind of asset invested by an investor of one Contracting Party in the territory of the other Contracting Party in accordance with the laws and regulations of the latter and shall include in particular:

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

b) Shares, stocks and debentures or other forms of participation in the equity of companies, as well as rights relating to them;

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

d) Intellectual property rights, in particular, copyrights, trade marks, patents, industrial designs and models, trade marks rights, trade names, business secrets, technical processes, know-how and goodwill;

e) Concessions pursuant to law or issued in accordance with the decision of the appropriate state authority, including the concessions for prospect, research or exploit of natural resources.

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

2 — The term «investor» shall mean any natural or legal person of either Contracting Party who invests in the territory of the other Contracting Party:

a) The term «natural person» shall mean any natural person having the nationality of either Contracting Party, in accordance with its laws and regulations; and

b) The term «legal person» shall mean with respect to either Contracting Party, any entity incorporated or constituted in accordance with, and recognized as legal person by its laws performing economic activities in the territory of either Contracting Party.

3 — 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 fees.

4 — The term «territory» means the territory of either Contracting Party, according to its laws, over which the Contracting Party concerned exercises its sovereignty, sovereign rights and jurisdiction, in accordance with international law.

Article 2 Promotion and protection of investments

1 — Each Contracting Party shall encourage and create, as far as possible, favourable conditions for investors of the other Contracting Party to make investments in its territory and shall admit such investments, in accordance with its laws and regulations.

2 — Investments of investors of either Contracting Party shall at all times be accorded fair and equitable treatment and shall enjoy, full protection and security in the territory of the other Contracting Party.

Article 3

National and most favoured nation treatment

1 — Each Contracting Party shall in its territory accord to investments and returns of investors of the other Contracting Party treatment which is fair and equitable and not less favourable than that which it accords to the investments and returns of its own investors or to investors of any third State.

2 — Each Contracting Party shall in its territory accord to investors of the other Contracting Party, as regards the management, maintenance, use, enjoyment or disposal or their investments, treatment which is fair and equitable and not less favourable than that which it accords to its own investors or to investors of any third State.

3 — The provisions of paragraphs 1 and 2 of this article shall not be construed so as to oblige one Contracting Party to extend to the investors of the other the benefit of any treatment, preference or privilege which may be extended by the former Contracting Party by virtue of:

a) Any customs union or free trade area or monetary union, existing or prospective, or similar international agreements leading to such unions or institutions or other forms of regional cooperation to which either of the Contracting Party is or may become a Party; and

6) Any international agreement or arrangement relating wholly or mainly to taxation.

Article 4 Expropriation

1 — Investments of investors of either Contracting Party shall not be nationalised, expropriated, or subjected to any other measure having effect equivalent to nationalisation or expropriation (hereinafter referred to as «expropriation») in the territory of the other Contracting Party except for a public purpose. The expropriation shall be carried out under due process of law, on a nondiscriminatory basis and shall be accompanied by provisions for the payment of a prompt, adequate and effective compensation.

2 — Such compensation shall amount to the market value of the investment expropriated immediately before expropriation or impending expropriation became public knowledge, shall include interest at a normal commercial rate from the date of expropriation, shall be made without delay, be effectively realizable and be freeiy transferable in freely convertible currency.

3 — The investor affected shall have the right, to prompt review by a judicial or other independent authority of that Contracting Party, of his or its case and of valuation of his or its investment in accordance wiin the principles set out in this article.

Article 5

Compensation for losses

When investments by investors of either Contracting Party suffer losses owing to war, armed conflict, a state of national emergency, revolt, insurrection, riot or other similar events in the territory of the other Contracting Party, they shall be accorded by the latter ContracYmg Party treatment, as regards restitution, indemnification, compensation or other settlement, not less favourable than that which the latter Contracting Party accords to