453/1991 Coll.
The COMMUNICATION FROM the
the Federal Ministry of Foreign Affairs
The Federal Ministry of Foreign Affairs declares that on 13 November. September 1990
was in the Prague agreement signed on mutual investment promotion and protection
between the Czech and Slovak Federative Republic of Brazil and the French
Republic.
With the agreement have expressed their approval of the Federal Assembly of the Czech and Slovak
The Federal Republic and the President of the Czech and Slovak Federal
The Republic has ratified it.
Agreement entered into force, pursuant to article 13 on 27 November. September
1991.
The Czech version of the agreement shall be published at the same time.
The AGREEMENT
on mutual promotion of investment
between
The Czech and Slovak Federal Republic and the French Republic
Czech and Slovak Federal Republic and the French Republic,
referred to as the "Contracting Parties"
Desiring to intensify economic cooperation between the two countries and
create favourable conditions for investment in France and Czechoslovakia
French investments in Czechoslovakia;
convinced that the promotion and protection of such investment helps to
transfers of capital and technology between the two countries in the interest of economic
development;
They agreed on the following provisions:
Article 1
For the purposes of this agreement:
1. The term "investment" refers to all assets, such as property and rights
of all kinds, and in particular:
a) movable and immovable property, as well as all rights, in particular
mortgages, preferential rights, guarantees and rights;
(b)) shares and all other forms of participation in companies based on the
the territory of one Contracting Party, as well as all the rights arising therefrom;
c) bonds, debts and rights to any transactions which have
economic value;
d) copyrights, industrial rights (such as patents, trade
marks, designs and models), technological processes, licenses,
trade names and connections;
e) concessions granted under the law or the contract, in particular the concession
concerning the exploration, cultivation, extraction or exploitation of natural
wealth, including that which is located in the coastal zone of the Contracting
of the parties;
it being understood that these assets are, or have been invested in accordance
with the legislation of the Contracting Party on whose territory or in which
the coastal zone is the investment.
The term "investment" indicates also the indirect investment, carried out
investors of one Contracting Party in the territory of or in the coastal zone
the other Contracting Parties through the investor of a third State.
Any change in the forms of investment assets does not change their nature as
investments within the meaning of this agreement, provided that the change is not in the
contrary to the legislation of the Contracting Party on whose territory or in which
the coastal zone is the investment.
2. the term "investor" means:
and) any natural person who is a citizen of one of the Contracting Parties and
that may, in accordance with its legal structure, carry out investments on
territory or in the coastal zone of the other party;
(b)) any legal person incorporated within the territory of one of the Contracting Parties in
accordance with its legal system, and that has its registered office.
3. The term "returns" means all amounts arising from investments during the
a given period, in particular, profits, dividends, interest, fees, commissions.
4. this Agreement shall apply in the territory of each Contracting Party, as well as in
the coastal zone of each party, which is defined as
economic zone and the continental shelf, which extend beyond the
the boundaries of the territorial waters of each party and on which these
the Contracting Parties shall be performed in accordance with international law, the sovereign
law and jurisdiction in the realm of exploration, exploitation and protection of natural
sources.
Article 2
Each Contracting Party allows and supports within their national legal systems and
the provisions of this agreement, the investments made by investors of the other Contracting
Parties on its territory and in its coastal zone.
Article 3
Each Contracting Party undertakes to protect, on their territory and in their
the coastal zone of the investments of the investors of the other Contracting Parties fair
and equal treatment, in accordance with the principles of international law,
excluding any unfair or discriminatory measures that would
could be a hindrance to their management, maintenance, use, or
disposal of investment, and do so in a manner that the exercise of the rights thus recognized
is not constrained or legally or de facto.
The principle of fair and equal treatment applies in particular to
the purchase and transport of raw materials and auxiliary materials, energy and fuel, as well
as to the means of production of any kind and on the sale and transport of products
inside the country and abroad.
Article 4
Each Party shall provide in its territory and in its coastal zone
investors of the other Contracting Parties, as regards their investment and
the activities associated with these investments, a treatment no less favourable than
grants in accordance with its legal structure, its investors or than
treatment accorded to investors of State rejected the highest benefits
If this is more convenient.
This treatment shall not apply to benefits, that Contracting Party
grants from the third State to investors based on their participation or
membership of a free-trade zone, a Customs Union, common market,
the Organization of mutual economic assistance or any other form of regional
of the organization or on the basis of the agreement on the avoidance of double
taxation or any other international agreements in the tax area.
Investors permission to work on the territory or in the coastal zone of one of the
the contracting parties must have adequate conditions for the exercise of their professional
activity. The Contracting Parties shall in the framework of their national legal systems positively
to assess an application for entry and residence permit, work and movement, which
citizens shall submit to the Contracting Party because of investments in the territory of or in
the coastal zone of the other party.
Article 5
Investments, which are the subject of the special commitment of the Contracting Parties to
investors of the other Contracting Party, shall be governed, regardless of the
the provisions of this agreement, the text of this undertaking, if it contains the provisions of the
more favourable than foreseen by this agreement.
Article 6
1. Investments made by investors of either Contracting Party shall enjoy in the
territories and in the coastal zone of the other party the full protection and
safety.
2. income from the investments and re-investments in the case of income from these reinvestments
enjoy the protection as an investment.
3. the Contracting Parties nevyvlastní or investments of investors from nationalization
the other Contracting Party, or does not make any other measures having for
investors of the other Contracting Party results in the direct or indirect
the loss of the ownership of the investments held in their territory or in
their coastal zone with the exception of measures carried out in the public
interest and on condition that they are not discriminatory or in breach of
with the special obligation within the meaning of article 5.
Measures resulting in the deprivation of property, which could be adopted,
must be accompanied by the payment of prompt and adequate compensation, the
above must match the actual value of the investments concerned the previous
any threat of deprivation of property.
This compensation, its amount and method of payment will be established
no later than the date of deprivation of property. This compensation shall be freely transferable
shall be paid without delay in freely convertible currency. After the expiry of 15 days from the
the date on which the measures have been taken or publicly known until the date of payment,
is to compensate for added interest, calculated according to the market rates.
This rate will be determined according to the "international financial statistics"
published by the International Monetary Fund, if it is not determined
a specific agreement between the investor and the competent authority of the Contracting
party.
Article 7
Investors of one Contracting Party whose investments suffer loss in
as a result of war or other armed conflict,
a State of emergency, riot or any other situations with similar
the consequences that occur on the territory or in the coastal zone of the second
the Contracting Parties will enjoy from her treatment not less favourable than
grants in accordance with its legal structure, to its own investors or
investors from the State rejected the highest benefits.
Article 8
1. each Contracting Party on whose territory or in the coastal zone
investors of the other Contracting Parties have made investments, allows you to
These investors to the free transfer of funds related to
These investments, and in particular:
and profit, dividends), interest and other revenues;
(b) revenue arising from the rights) referred to in paragraph 1 (b). (d)), and (e))
Article 1 of this agreement;
(c) a duly negotiated repayments of loans);
d) proceeds from transfer to or from the total or partial liquidation of investments,
including the value of invested capital;
e) compensation for deprivation of property, or loss referred to in article 6 and 7 of this
The agreement;
2. citizens of the Contracting Parties, who have obtained permission to work on the
territory or in the coastal zone of the other party because of the allowed
investments are also eligible to transfer to the State of their origin
a reasonable portion of their cash income.
3. The transfers referred to in the preceding paragraphs shall be carried out without delay
the official rate of Exchange ruling at the date of the transfer in General.
Article 9
If the legislation of either Contracting Party to predict the possibility of a guarantee for
investments abroad, this guarantee can be granted after
an examination of each individual case of investment undertaken by
investors of that Contracting Party in the territory of or in the coastal zone of the second
the Contracting Parties.
Investments by investors of one Contracting Party in the territory of or in
the coastal zone of the other party may not receive the above
warranty, unless they have been authorised in advance by the latter the Contracting
party.
If one of the parties on the basis of the guarantees provided by
the investment carried out in the territory or in the coastal zone of the other party
payment by one of its investors, for this reason, the
all the rights and actions of the investor, especially those that are listed
in article 10 of this agreement.
Article 10
1. Any dispute concerning the investment between one Contracting Party and
the investor of the other Contracting Party, as far as possible be resolved between
the parties concerned.
2. as soon as the two parties are Contracting Parties to the Convention for the solution
of investment disputes between States and nationals of other States (Washington, 18.
March 1965), then such dispute, if it could not be resolved amicably within 6
months from the time when it was one of the parties to the dispute, will be announced on
the request of one of these parties submitted to the International Centre for
settlement of investment disputes to resolve the arbitration route.
3. until the condition envisaged in paragraph 2 are met and if the
the dispute in question could not be solved within 6 months from the time when he was someday
or the other party to the dispute to establish, will be presented at the request of one
or the other of these parties to arbitration "ad hoc".
The Court of arbitration "ad hoc" will be created for each case
as follows: each party to the dispute shall appoint one arbitrator,
the two arbitrators shall jointly designate a third arbitrator, the citizen of a third State,
who will be the President of the Court. The arbitrators shall be determined within two months,
the President within three months from the date when the investor announced in writing to the interested
the Contracting Party of its intention to apply to the Court of arbitration.
If the time limits referred to above are not complied with, each party in the
the dispute may request the President of the Arbitration Court of the Chamber of Commerce in
Stockholm, Sweden, to make the necessary appointment.
The Court of arbitration "ad hoc" shall lay down its procedural rules in accordance with the
the applicable procedural rules of the United Nations Commission on international trade law.
Article 11
1. disputes between the Contracting Parties concerning the interpretation or implementation of this agreement
It must be, if possible, be settled through diplomatic channels.
2. If the dispute has not been resolved within 6 months from the date it was submitted to the
one of the Contracting Parties, will be presented at the request of one of the Contracting
the parties to an arbitration tribunal.
3. that the Court will be established for each special case as follows: each
Contracting Party shall designate one Member and these two members shall determine together
a citizen of a third State to be appointed by the two parties
Chairman. All members must be appointed within two months of
When one of the parties has notified the other party in
of its intention to submit the dispute to an arbitral tribunal.
4. If the time limits referred to in paragraph 3 are not complied with, one or
the other Contracting Party, unless another agreement has been made, it shall request
the Secretary-General of the UNITED NATIONS to make the necessary appointment. If
the Secretary General is a citizen of one of the Contracting States or if
for any other reason unable to perform this function, make the necessary appointments
senior representative of the Secretary-General, who is not a citizen
one of the parties.
5. the arbitral tribunal shall decide by a majority vote. Its decisions are for
the Contracting Parties shall be final and legally enforceable.
The Court shall lay down its own procedural rules. At the request of one of the Contracting
party carried out the interpretation of the judgment. If the court taking into account the Special
circumstances, decides otherwise, the costs of the arbitration proceedings, as well as expenses
the arbitrators shall be borne by the parties equally.
Article 12
This agreement shall apply to all investments made after 1. January
1950.
Article 13
Each Contracting Party shall notify the other party that it has satisfied
the formalities required by the legal system for its entry into force,
which happens 30 days after receipt of the last notification.
The agreement is concluded for a period of 15 years, will remain in force after the expiry of this
time, if one of the Contracting Parties denounces it through the diplomatic channel with
annual notice.
The investments that were made before the expiry of this agreement,
shall enjoy protection in accordance with their provisions for another 15 years after
its expiry.
Done at Prague on 13. September 1990 in two original copies, each in the
English and French languages, both texts being equally authentic.
For
Czech and Slovak Federal Republic:
Václav Klaus, v.r.
For
The French Republic:
Roland Dumas, v.r.
