Communication from the Ministry of Foreign Affairs No. 95 / 1993 Coll.
Communication from the Ministry of Foreign Affairs on the negotiation of the Agreement between the Government of the Czech and Slovak Federal Republic and the Government of the People's Republic of China on the promotion and mutual protection of investment
Valid
Effective from 01.12.1992
95
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that the Agreement between the Government of the Czech and Slovak Federal Republic and the Government of the People's Republic of China on the promotion and mutual protection of investment was signed in Beijing on 4 December 1991.
The agreement was approved by the Federal Assembly of the Czech and Slovak Federal Republic and was ratified by the Prime Minister of the Czech and Slovak Federal Republic on behalf of the President of the Czech and Slovak Federal Republic.
The Agreement entered into force on 1 December 1992 on the basis of Article 12 (1) thereof.
The Czech version of the Agreement is hereby published at the same time.
AGREEMENT
between the Government of the Czech and Slovak Federal Republic and the Government of the People's Republic of China on the promotion and mutual protection of investments
The Government of the Czech and Slovak Federal Republic and the Government of the People's Republic of China (hereinafter referred to as the "Contracting Parties'),
led by the desire to develop economic cooperation between both States on the basis of mutual respect for sovereignty, equality and mutual benefit, and to promote and create favourable conditions for investment by investors of one State in the territory of another State; and
Recognising that the promotion and mutual protection of investments under this Agreement encourages business initiatives in this field,
agree as follows:
Definitions
For the purposes of this Agreement:
1. The term "investment" shall mean all types of property invested by investors of one Contracting Party in accordance with the laws and regulations of the other Contracting Party in its territory and shall include, in particular, but not exclusively:
(a) movable and immovable property and other property rights;
(b) shares in companies and other forms of participation in such companies;
(c) the right to claim money or the right to any performance of economic value;
(d) intellectual property rights, including copyright, trademarks, patents, industrial disings, technical procedures, know-how, trade secrets, trade names and goodwill;
(e) commercial concessions granted under the law, including concessions for the search for or exploitation of natural resources.
2. The term "investor" shall mean any natural or legal person investing in the territory of the other Contracting Party.
(a) The term "natural person" shall mean any natural person who is a national of any Contracting Party in accordance with its legislation.
(b) The term "legal person" means, in respect of a Contracting Party, any person incorporated or established in accordance with its legislation.
3. The term "income" shall mean amounts earned from the investment and shall include, in particular, whether not exclusively, profits, interest, capital gains, shares, dividends, royalties or other charges.
4. The term "territory 'means a territory over which a Contracting Party has sovereignty and over which it exercises legal authority.
Aid and investment protection
1. Each Contracting Party shall support the investors of the other Contracting Party in investing in its territory and admit such investments in accordance with its own legal order.
2. Each Contracting Party shall provide assistance and create the conditions for obtaining visas and work permits for nationals of the other Contracting Party in its territory in connection with activities related to such investments.
Treatment of investments
1. The treatment and protection provided by one of the Contracting Parties in its territory to the investors of the other Contracting Party in relation to investment, income and business activities related to investment (investment) will not be less favourable than that provided to investors of any third country.
2. Treatment and protection provided by one of the Contracting Parties in its territory to the investors of the other Contracting Party in relation to investment, income and business activities related to investment (investment) will not be less favourable than that provided to its own investors.
3. The treatment and protection referred to in paragraph 1 of this Article shall not include any preferential treatment granted by the other Party to investors of a third State based on a customs union, free trade zone, economic union, double taxation agreement or frontier trade facilitation agreement.
Expropriation
1. Investment by investors of any Contracting Party shall not be nationalised, expropriated or subordinate to measures having the same effect as the nationalisation or expropriation ("expropriation ') in the territory of the other Contracting Party, except in cases of public interest. Expropriation shall be carried out:
(a) in accordance with the legal procedure in force at home;
(b) on a non-discriminatory basis;
(c) against compensation. Such compensation shall be at an amount equal to the actual value of the expropriated investment immediately before the expropriation or immediately before the intended expropriation has become known to the public, including interest at the normal rate of trade until the date of payment, shall be effected without undue delay, shall be effectively feasible and freely transferable in freely convertible currency.
2. The investor concerned shall have the right to review his case promptly and to evaluate his investment by a judicial or other independent body of the Contracting Party in accordance with the principles contained in this Article.
3. Where a Contracting Party restores assets of a company which is registered or established in accordance with the applicable legal order in any part of its territory and in which investors of the other Contracting Party own shares, it shall ensure that the provisions of paragraph 1 of this Article are applied to the extent necessary to guarantee adequate compensation in relation to the investment of such investors of the Contracting Party that are owners of those shares.
Compensation for damage or loss
1. Where investment by investors of any Contracting Party suffers loss as a result of war, armed conflict, exceptional situation, revolt, insurrection, riot or other similar events within the territory of the other Contracting Party, they shall be treated by that Contracting Party as regards restitution, compensation, compensation or other settlement, no less favourable than that provided by that Contracting Party to investors of any third State.
2. Without prejudice to paragraph 1 of this Article, investors of one Contracting Party who suffer any of the events referred to in this paragraph shall suffer damage or loss in the territory of the other Contracting Party arising from:
(a) seizure of their property by their army or authorities;
(b) the destruction of their ownership by its army or by the authorities which were not caused by combat action or did not require it to be necessary;
a fair and reasonable compensation for damage or loss suffered during seizure or as a result of destruction of property. The resulting payments will be in freely convertible currency and freely transferable without undue delay.
Transfers
1. Any Contracting Party shall guarantee the investors of the other Contracting Party free transfer of income relating to their investments in freely convertible currency without undue delay. Such transfers shall include, in particular, but not exclusively:
(a) capital and additional funds needed to maintain or increase the investment;
(b) revenue;
(c) repayments of loans granted by an investor in the form of shares;
(d) licensing and other rights fees as defined in Article 1 (d) (1);
(e) revenue arising from sales relating to the total or partial liquidation of the investment;
(f) the earnings of natural persons under the laws and regulations of the Contracting Party where the investment was made.
2. The transfers referred to in this Article shall be made at the official rate of the Contracting Party receiving the investment in force on the day of the transfer.
Subsidies
Where a Contracting Party or its institution compensates an investor on the basis of a guarantee provided by an investment by such an investor in the territory of the other Contracting Party, the other Contracting Party shall recognise the transfer of any rights or rights of that investor to the first Contracting Party or its institution and recognise the subrogation of the first Contracting Party or its institution to such a right or claim. The transferred right or claim shall not exceed the original right or claim of that investor.
Disputes between Contracting Parties
1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible, be settled by diplomatic consultation.
2. If the dispute cannot be resolved within six months, it shall be submitted to an ad hoc arbitration panel at the request of either Party.
3. Such a court shall consist of three arbitrators. Within two months of the date on which either Party receives from the other Party a written notice requesting arbitration, each Party shall appoint one arbitrator. Within three months of their appointment, the two arbitrators shall jointly select a third arbitrator who shall be a national of a third State having diplomatic relations with both Parties. The third arbitrator shall be appointed by both Parties as Chairman of the arbitration panel.
4. If the arbitration panel is not appointed within five months of the date of receipt of the written notice requesting the arbitration procedure, any Contracting Party may, if no other agreement is reached, request the President of the International Court of Justice to appoint arbitrators who have not yet been appointed. If the President is a national of any Contracting Party, or if he has any other impediment to the performance of his duties, the necessary appointment shall be requested by another highest-ranking member of the International Court of Justice who is not a national of any Contracting Party.
5. The arbitration panel shall lay down its rules of procedure. The Court of First Instance shall act in accordance with the provisions of this Agreement and the principles of international law recognised by both Parties.
6. The court will decide by a majority vote. Such a decision shall be final and binding on both Parties. Ad hoc arbitration panel shall, at the request of any Contracting Party, explain the reasons for its decision.
7. Each Party shall pay the expenses of its arbitrator and of its representation in the arbitration procedure. The relevant expenses of the President and the Court shall be borne by the Contracting Parties equally.
Disputes between the investor and the party
1. Any dispute between an investor of one Contracting Party and the other Contracting Party concerning an investment in the territory of the other Contracting Party shall, as far as possible, be settled by friendly negotiations between the Parties in a dispute.
2. If the dispute cannot be settled within six months, any party in the dispute shall be entitled to bring the dispute either:
(a) the competent court of the Contracting Party receiving the investment; or
(b) an international ad hoc arbitration panel set up under the arbitration rules of the United Nations International Trade Law Commission (UNCITRAL), as in force at that time, in so far as the dispute concerns the amount of compensation for expropriation and any other dispute agreed between the parties in the dispute. The Parties in the dispute may agree in writing to adapt these rules.
3. Notwithstanding the provisions of paragraph (b) (2) of this Article concerning the submission of a dispute to arbitration, an investor shall have the right to decide on conciliation before the dispute is brought to arbitration.
4. The decisions of the arbitration panel shall be recognised and enforced by the Parties in accordance with the Convention on the Recognition and Enforcement of Foreign Arbitration Findings, New York 1958.
Application of other provisions
Where the treatment granted by one Contracting Party in accordance with its legal system of investments or activities associated with such investments to investors of the other Contracting Party is more favourable than that granted under this Agreement, more favourable treatment shall be applied.
Application of this Agreement
Provisions of this The agreements shall apply to investments made by investors of any Contracting Party in the territory of the other Contracting Party in accordance with its legal order after 1 January 1950.
Entry into force, duration and termination
1. This Agreement shall enter into force on the first day of the month following the date on which both Parties have notified each other in writing that their respective internal constitutional requirements or legal procedures for the entry into force of this Agreement have been fulfilled and remain in force for 10 years.
2. This Agreement shall remain in force until either Contracting Party has notified the other Contracting Party in writing of the termination of this Agreement one year before the expiry of the period laid down in paragraph 1 of this Article.
3. Upon expiry of the initial 10-year period, any Contracting Party may terminate this Agreement at any time by notifying the other Contracting Party in writing at least annually.
4. With regard to investments made before the date of termination of this Agreement, the provisions of this Agreement shall remain in force for a period of 10 years after the date of termination.
In evidence of this, the undersigned, duly authorised to do so, have signed this Agreement.
Done in duplicate in Beijing on 4 December 1991 in the Czech, Chinese and English languages, each text being equally authentic. In the event of any difference in interpretation, the English text is decisive.
For the Government of the Czech and Slovak Federal Republic:
JUDr.
For the Government of the People's Republic of China:
Li Pcheng v. r.
Protocol
When signing the Agreement between the Government of the Czech and Slovak Federal Republic and the Government of the People's Republic of China on the promotion and mutual protection of investments ("the Agreement '), the undersigned agreed on the following provisions which form an integral part of the Agreement.
1. For the purposes of paragraph 2 of Article 3: Agreements for any Contracting Party shall not be considered as "less favourable treatment 'if, in accordance with its applicable legal order, they provide the investors of the other Contracting Party with discriminatory treatment, where necessary for reasons of public policy, national security or priorities in the proper development of the national economy.
2. "frontier trade" referred to in paragraph 3 of Article 3 shall mean trade in defined border areas with preferential treatment authorised by any Contracting Party and its neighbouring countries to facilitate the needs of their population in border areas.
3. The term "any Contracting Party shall guarantee the investors of the other Contracting Party the free transfer of income from their investments in freely convertible currency without undue delay ', as referred to in Article 6 of this Agreement, means, in respect of the People's Republic of China:
(1) Payments of the amounts referred to in paragraph 1 (a) to (f) of Article 6 shall be made from the foreign exchange account of the company in which the investor owns shares in accordance with the applicable foreign exchange control rules in the absence of more favourable provisions in the foreign exchange control rules in the People's Republic of China.
In the absence of sufficient means of transfer in the company's foreign exchange account referred to in this paragraph, the GOC shall provide the necessary foreign exchange for transfer under the following conditions:
(a) the payment of the amounts referred to in paragraph 1 in Parts (a), (d), (e) and (f) of Article 6 of the Agreement;
(b) payment of the amounts referred to in paragraph 1 (c) of Article 6 of the Agreement, provided that they have been guaranteed by the Bank of China;
(c) the amounts referred to in paragraph 1 (b) of Article 6 of this Agreement obtained by the company referred to in this paragraph which has a special authorisation from the competent authority of the People's Republic of China for the sale of its products for an irreplaceable currency.
(2) The GOC will provide access to the official foreign exchange market in a non-discriminatory manner to investors of the other Party or to companies in which they have invested in such a way that they can purchase the necessary foreign exchange exchanges for transfer under this Article.
4. The Contracting Parties shall review this Agreement and the Protocol within three years of the entry into force of this Agreement.
In evidence of this, the undersigned, duly authorised to do so, have signed this Agreement.
Done in duplicate in Beijing on 4 December 1991 in the Czech, Chinese and English languages, each text being equally authentic. In the event of any difference in interpretation, the English text is decisive.
For the Government of the Czech and Slovak Federal Republic:
JUDr.
For the Government of the People's Republic of China:
Li Pcheng v. r.
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 95 / 1993 Coll., on the negotiation of the Agreement between the Government of the Czech and Slovak Federal Republic and the Government of the People's Republic of China on the promotion and mutual protection of investment |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 16.03.1993 |
|---|---|
| Effective from | 01.12.1992 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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